Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 28, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
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 | 29,800,535 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-36307 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3707650 | |
Entity Address, Address Line One | 495 South High Street | |
Entity Address, Address Line Two | Suite 50 | |
Entity Address, City or Town | Columbus | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43215 | |
City Area Code | 614 | |
Local Phone Number | 221-3399 | |
Title of 12(b) Security | Common stock | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Security Exchange Name | NYSE | |
Entity Shell Company | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 267,471 | $ 177,889 |
Investments | 1,220 | 37,961 |
Accounts receivable (less allowance for credit losses of $9,366 and $6,878 at September 30, 2020 and December 31, 2019, respectively) | 258,940 | 244,519 |
Inventories | 70,218 | 74,606 |
Other current assets | 37,607 | 46,974 |
Total current assets | 635,456 | 581,949 |
Property and equipment, net | 104,900 | 106,410 |
Operating lease right-of-use assets | 50,873 | 45,691 |
Non-current assets | ||
Goodwill | 206,782 | 195,652 |
Intangibles, net | 155,398 | 153,562 |
Other non-current assets | 12,036 | 16,215 |
Total assets | 1,165,445 | 1,099,479 |
Current liabilities | ||
Current maturities of long-term debt | 24,156 | 24,164 |
Current maturities of operating lease obligations | 17,875 | 15,459 |
Current maturities of finance lease obligations | 2,268 | 2,747 |
Accounts payable | 86,898 | 98,871 |
Accrued compensation | 43,310 | 33,636 |
Other current liabilities | 47,734 | 39,272 |
Total current liabilities | 222,241 | 214,149 |
Long-term debt | 544,276 | 545,031 |
Operating lease obligations | 32,431 | 29,785 |
Finance lease obligations | 2,747 | 3,597 |
Deferred income taxes | 3,704 | 9,175 |
Other long-term liabilities | 55,859 | 47,711 |
Total liabilities | 861,258 | 849,448 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity | ||
Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | ||
Common stock; $0.01 par value: 100,000,000 authorized, 33,127,310 and 32,871,504 issued and 29,800,535 and 30,016,340 shares outstanding at September 30, 2020 and December 31, 2019, respectively | 331 | 329 |
Additional paid in capital | 197,486 | 190,230 |
Retained earnings | 241,583 | 173,371 |
Treasury stock; at cost: 3,326,775 and 2,855,164 shares at September 30, 2020 and December 31, 2019, respectively | (123,488) | (106,756) |
Accumulated other comprehensive loss | (11,725) | (7,143) |
Total stockholders' equity | 304,187 | 250,031 |
Total liabilities and stockholders' equity | $ 1,165,445 | $ 1,099,479 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 9,366 | $ 6,878 |
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 | 33,127,310 | 32,871,504 |
Common stock, shares outstanding | 29,800,535 | 30,016,340 |
Treasury Stock | 3,326,775 | 2,855,164 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net revenue | $ 420,486 | $ 396,449 | $ 1,211,756 | $ 1,110,398 |
Cost of sales | 288,839 | 278,362 | 836,710 | 795,616 |
Gross profit | 131,647 | 118,087 | 375,046 | 314,782 |
Operating expenses | ||||
Selling | 20,843 | 19,398 | 60,209 | 54,431 |
Administrative | 58,240 | 55,098 | 177,495 | 156,022 |
Amortization | 6,974 | 6,156 | 20,378 | 18,065 |
Operating income | 45,590 | 37,435 | 116,964 | 86,264 |
Other expense | ||||
Interest expense, net | 7,564 | 8,458 | 22,679 | 19,783 |
Other | 176 | 155 | 305 | 381 |
Income before income taxes | 37,850 | 28,822 | 93,980 | 66,100 |
Income tax provision | 9,773 | 7,610 | 24,578 | 17,135 |
Net income | 28,077 | 21,212 | 69,402 | 48,965 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on cash flow hedge, net of tax (provision) benefit of ($408) and $575 for the three months ended September 30, 2020 and 2019, respectively, and $1,582 and $2,676 for the nine months ended September 30, 2020 and 2019, respectively | 1,176 | (1,726) | (4,582) | (8,021) |
Comprehensive income | $ 29,253 | $ 19,486 | $ 64,820 | $ 40,944 |
Basic net income per share | $ 0.95 | $ 0.71 | $ 2.35 | $ 1.65 |
Diluted net income per share | $ 0.95 | $ 0.71 | $ 2.33 | $ 1.64 |
Weighted average shares outstanding: | ||||
Basic | 29,478,816 | 29,785,548 | 29,549,460 | 29,741,555 |
Diluted | 29,698,028 | 29,877,056 | 29,737,716 | 29,839,873 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Unrealized loss on cash flow hedge, tax benefit | $ 408 | $ 575 | $ 1,582 | $ 2,676 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
BALANCE at Dec. 31, 2018 | $ 182,498 | $ 327 | $ 181,815 | $ 105,212 | $ (431) | |||
BALANCE, Shares at Dec. 31, 2018 | 32,723,972 | |||||||
BALANCE, Treasury Stock, Value at Dec. 31, 2018 | $ (104,425) | |||||||
BALANCE, Treasury Stock, Shares at Dec. 31, 2018 | (2,808,361) | |||||||
Net income | 48,965 | 48,965 | ||||||
Issuance of common stock awards to employees, value | $ 2 | (2) | ||||||
Issuance of common stock awards to employees, shares | 139,862 | |||||||
Surrender of common stock awards, value | (2,331) | $ (2,331) | ||||||
Surrender of common stock awards, shares | (46,394) | |||||||
Share-based compensation expense | 6,144 | 6,144 | ||||||
Share-based compensation issued to directors, value | 259 | 259 | ||||||
Share-based compensation issued to directors, shares | 7,670 | |||||||
Other comprehensive income (loss), net of tax | (8,021) | (8,021) | ||||||
BALANCE at Sep. 30, 2019 | 227,514 | $ 329 | 188,216 | 154,177 | (8,452) | |||
BALANCE, Shares at Sep. 30, 2019 | 32,871,504 | |||||||
BALANCE, Treasury Stock, Value at Sep. 30, 2019 | $ (106,756) | |||||||
BALANCE, Treasury Stock, Shares at Sep. 30, 2019 | (2,854,755) | |||||||
BALANCE at Jun. 30, 2019 | 206,002 | $ 329 | 186,182 | 132,965 | (6,726) | |||
BALANCE, Shares at Jun. 30, 2019 | 32,871,504 | |||||||
BALANCE, Treasury Stock, Value at Jun. 30, 2019 | $ (106,748) | |||||||
BALANCE, Treasury Stock, Shares at Jun. 30, 2019 | (2,854,496) | |||||||
Net income | 21,212 | 21,212 | ||||||
Surrender of common stock awards, value | (8) | $ (8) | ||||||
Surrender of common stock awards, shares | (259) | |||||||
Share-based compensation expense | 1,933 | 1,933 | ||||||
Share-based compensation issued to directors, value | 101 | 101 | ||||||
Other comprehensive income (loss), net of tax | (1,726) | (1,726) | ||||||
BALANCE at Sep. 30, 2019 | 227,514 | $ 329 | 188,216 | 154,177 | (8,452) | |||
BALANCE, Shares at Sep. 30, 2019 | 32,871,504 | |||||||
BALANCE, Treasury Stock, Value at Sep. 30, 2019 | $ (106,756) | |||||||
BALANCE, Treasury Stock, Shares at Sep. 30, 2019 | (2,854,755) | |||||||
BALANCE at Dec. 31, 2019 | $ 250,031 | $ (1,190) | $ 329 | 190,230 | 173,371 | $ (1,190) | (7,143) | |
BALANCE, Shares at Dec. 31, 2019 | 32,871,504 | 32,871,504 | ||||||
BALANCE, Treasury Stock, Value at Dec. 31, 2019 | $ (106,756) | $ (106,756) | ||||||
BALANCE, Treasury Stock, Shares at Dec. 31, 2019 | (2,855,164) | (2,855,164) | ||||||
Net income | $ 69,402 | 69,402 | ||||||
Issuance of common stock awards to employees, value | $ 2 | (2) | ||||||
Issuance of common stock awards to employees, shares | 249,435 | |||||||
Surrender of common stock awards, value | (973) | $ (973) | ||||||
Surrender of common stock awards, shares | (29,069) | |||||||
Share-based compensation expense | 7,029 | 7,029 | ||||||
Share-based compensation issued to directors, value | 229 | 229 | ||||||
Share-based compensation issued to directors, shares | 6,371 | |||||||
Common stock repurchase, value | (15,759) | $ (15,759) | ||||||
Common stock repurchase, shares | (442,542) | |||||||
Other comprehensive income (loss), net of tax | (4,582) | (4,582) | ||||||
BALANCE at Sep. 30, 2020 | $ 304,187 | $ 331 | 197,486 | 241,583 | (11,725) | |||
BALANCE, Shares at Sep. 30, 2020 | 33,127,310 | 33,127,310 | ||||||
BALANCE, Treasury Stock, Value at Sep. 30, 2020 | $ (123,488) | $ (123,488) | ||||||
BALANCE, Treasury Stock, Shares at Sep. 30, 2020 | (3,326,775) | (3,326,775) | ||||||
BALANCE at Jun. 30, 2020 | $ 272,736 | $ 331 | 195,288 | 213,506 | (12,901) | |||
BALANCE, Shares at Jun. 30, 2020 | 33,124,237 | |||||||
BALANCE, Treasury Stock, Value at Jun. 30, 2020 | $ (123,488) | |||||||
BALANCE, Treasury Stock, Shares at Jun. 30, 2020 | (3,325,049) | |||||||
Net income | 28,077 | 28,077 | ||||||
Issuance of common stock awards to employees, shares | 3,073 | |||||||
Surrender of common stock awards, shares | (1,726) | |||||||
Share-based compensation expense | 2,094 | 2,094 | ||||||
Share-based compensation issued to directors, value | 104 | 104 | ||||||
Other comprehensive income (loss), net of tax | 1,176 | 1,176 | ||||||
BALANCE at Sep. 30, 2020 | $ 304,187 | $ 331 | $ 197,486 | $ 241,583 | $ (11,725) | |||
BALANCE, Shares at Sep. 30, 2020 | 33,127,310 | 33,127,310 | ||||||
BALANCE, Treasury Stock, Value at Sep. 30, 2020 | $ (123,488) | $ (123,488) | ||||||
BALANCE, Treasury Stock, Shares at Sep. 30, 2020 | (3,326,775) | (3,326,775) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net income | $ 69,402 | $ 48,965 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization of property and equipment | 30,850 | 28,575 |
Amortization of operating lease right-of-use assets | 13,281 | 11,597 |
Amortization of intangibles | 20,378 | 18,065 |
Amortization of deferred financing costs and debt discount | 1,000 | 845 |
Provision for credit losses | 3,839 | 3,173 |
Write-off of debt issuance costs | 2,774 | |
Gain on sale of property and equipment | (592) | (69) |
Noncash stock compensation | 8,050 | 6,442 |
Deferred income taxes | (3,405) | |
Amortization of terminated interest rate swap | 508 | |
Changes in assets and liabilities, excluding effects of acquisitions | ||
Accounts receivable | (9,624) | (29,144) |
Inventories | 5,983 | (852) |
Other assets | 9,027 | (4,845) |
Accounts payable | (14,746) | 2,535 |
Income taxes receivable/payable | 14,192 | 13,487 |
Other liabilities | (4,259) | 4,969 |
Net cash provided by operating activities | 143,884 | 106,517 |
Cash flows from investing activities | ||
Purchases of investments | (776) | (17,352) |
Maturities of short term investments | 37,473 | 22,560 |
Purchases of property and equipment | (25,515) | (37,267) |
Acquisitions of businesses | (38,825) | (24,740) |
Proceeds from sale of property and equipment | 828 | 563 |
Other | (2,662) | (1,795) |
Net cash used in investing activities | (29,477) | (58,031) |
Cash flows from financing activities | ||
Proceeds from senior notes | 300,000 | |
Payments on term loan | (195,750) | |
Proceeds from vehicle and equipment notes payable | 17,759 | 23,767 |
Debt issuance costs | (157) | (5,191) |
Principal payments on long-term debt | (19,801) | (15,278) |
Principal payments on finance lease obligations | (1,998) | (3,398) |
Acquisition-related obligations | (3,896) | (5,797) |
Repurchase of common stock | (15,759) | |
Surrender of common stock awards by employees | (973) | (2,331) |
Net cash (used in) provided by financing activities | (24,825) | 96,022 |
Net change in cash and cash equivalents | 89,582 | 144,508 |
Cash and cash equivalents at beginning of period | 177,889 | 90,442 |
Cash and cash equivalents at end of period | 267,471 | 234,950 |
Supplemental disclosures of cash flow information Net cash paid during the period for: | ||
Interest | 24,130 | 17,746 |
Income taxes, net of refunds | 13,798 | 3,790 |
Supplemental disclosure of noncash activities | ||
Right-of-use assets obtained in exchange for operating lease obligations | 18,340 | 11,593 |
Termination of operating lease obligations and right-of-use assets | (2,814) | |
Property and equipment obtained in exchange for finance lease obligations | 853 | 2,175 |
Seller obligations in connection with acquisition of businesses | 6,965 | 4,322 |
Unpaid purchases of property and equipment included in accounts payable | $ 1,229 | $ 1,527 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2020 | |
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 180 locations and its corporate office is located in Columbus, Ohio. We have one operating segment and a single reportable segment. Substantially all of our sales are derived from the service-based installation of various products in the residential new construction, repair and remodel and commercial construction end markets 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. The COVID-19 pandemic has caused significant volatility, uncertainty and economic disruption. Many public health organizations and international, federal, state and local governments implemented measures to combat the spread of COVID-19 during portions of the first nine months of 2020 with some of these restrictions still in place as of the date of filing of this Quarterly Report on Form 10-Q. Some of these measures include restrictions on movement such as quarantines, “stay-at-home” orders and social distancing ordinances and restricting or prohibiting outright some or all forms of commercial and business activity. We do not believe the various orders and restrictions or COVID-19 itself significantly impacted our business in the first nine months of 2020. However, the extent to which COVID-19 will impact our future operations, customers, suppliers, employees and financial results is uncertain. The future impact of COVID-19 on our financial results depends on numerous factors including government actions and the resulting impact on construction activity, the effect on our customers’ demand for our services, and the ability of our customers to pay for our services. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
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 10-K”), Our interim operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected in future operating quarters. Note 2 to the audited consolidated financial statements in our 2019 Form 10-K Recently Adopted Accounting Pronouncements Standard Effective Date Adoption ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) January 1, 2020 This pronouncement and subsequently-issued amendments change the accounting for credit losses on available-for-sale ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment January 1, 2020 This ASU addresses concerns over the cost and complexity of the two-step one-step ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement January 1, 2020 This pronouncement amends Accounting Standards Codification (“ASC”) ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) Effective upon issuance This pronouncement contains optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The provisions of ASC 848 must be applied at a Topic, Subtopic or Industry Subtopic for all transactions other than derivatives, which may be applied at a hedging relationship level. The relief granted in ASC 848 is applicable only to legacy contracts if the amendments made to the agreements are solely for reference rate reform activities. We elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. 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 Condensed Consolidated Financial Statements, which are described below: Standard Description Effective Date Effect on the financial statements or ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes This pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles of Topic 740 and improves the consistent application of GAAP by clarifying and amending existing guidance. Annual periods beginning after December 15, 2020, including interim periods therein. Early adoption is permitted. We are currently assessing the impact of adoption on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
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. An insignificant portion of our sales, primarily retail sales, is accounted for on a point-in-time For contracts that are not complete at the reporting date, we recognize revenue over time utilizing a cost-to-cost cost-to-cost 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 Payment 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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Residential new construction $ 315,434 75 % $ 297,003 75 % $ 912,095 75 % $ 840,806 76 % Repair and remodel 28,625 7 % 25,029 6 % 75,702 6 % 71,254 6 % Commercial 76,427 18 % 74,417 19 % 223,959 19 % 198,338 18 % Net revenues $ 420,486 100 % $ 396,449 100 % $ 1,211,756 100 % $ 1,110,398 100 % Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Insulation $ 268,292 64 % $ 253,311 64 % $ 779,045 64 % $ 710,005 64 % Waterproofing 33,272 8 % 32,781 8 % 89,855 7 % 84,024 8 % Shower doors, shelving and mirrors 29,282 7 % 27,011 7 % 85,199 7 % 77,828 7 % Garage doors 24,001 6 % 22,336 6 % 68,655 6 % 65,790 6 % Rain gutters 17,295 4 % 13,366 3 % 41,942 4 % 37,561 3 % Window blinds 12,166 3 % 10,615 3 % 34,651 3 % 30,780 3 % Other building products 36,178 8 % 37,029 9 % 112,409 9 % 104,410 9 % Net revenues $ 420,486 100 % $ 396,449 100 % $ 1,211,756 100 % $ 1,110,398 100 % Contract Assets and Liabilities Our contract assets consist of unbilled amounts typically resulting from sales under contracts when the cost-to-cost Contract assets and liabilities related to our uncompleted contracts and customer deposits were as follows (in thousands): September 30, December 31, 2020 2019 Contract assets $ 22,328 $ 22,138 Contract liabilities (11,237 ) (8,888 ) Uncompleted contracts were as follows (in thousands): September 30, December 31, 2020 2019 Costs incurred on uncompleted contracts $ 136,522 $ 110,818 Estimated earnings 75,338 61,185 Total 211,860 172,003 Less: Billings to date 196,640 155,599 Net under billings $ 15,220 $ 16,404 Net under billings were as follows (in thousands): September 30, December 31, 2020 2019 Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) $ 22,328 $ 22,138 Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) (7,108 ) (5,734 ) Net under billings $ 15,220 $ 16,404 The difference between contract assets and contract liabilities as of September 30, 2020 compared to December 31, 2019 is primarily the result of timing differences between our performance of obligations under contracts and customer payments. During the three and nine months ended September 30, 2020, we recognized $0.2 million and $7.7 million of revenue, respectively, that was included in the contract liability balance at December 31, 2019. We did not recognize any impairment losses on our receivables and contract assets during the three and nine months ended September 30, 2020 or 2019. 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 September 30, 2020, the aggregate amount of the transaction price allocated to remaining uncompleted contracts was $71.3 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. |
Credit Losses
Credit Losses | 9 Months Ended |
Sep. 30, 2020 | |
Credit Loss [Abstract] | |
Credit Losses | NOTE 4 - CREDIT LOSSES On January 1, 2020 we adopted ASU 2016-13, ASC ASC ASC Upon adoption of ASC 326, we recorded a cumulative effect adjustment to retained earnings of $1.2 million, net of $0.4 million of income taxes, on the opening consolidated balance sheet as of January 1, 2020. The adoption of the credit loss standard had no impact to cash from or used in operating, financing or investing activities on our consolidated cash flow statements. Our expected loss allowance methodology for accounts receivable is developed using historical losses, current economic conditions and future market forecasts. We also perform ongoing evaluations of our existing and potential customer’s creditworthiness. Our expected loss allowance methodology for held-to-maturity held-to-maturity To date, the COVID-19 Changes in our allowance for credit losses were as follows (in thousands): Balance as of January 1, 2020 $ 6,878 Cumulative effect of change in accounting principle 1,600 Current period provision 3,839 Recoveries collected and other 466 Amounts written off (3,417 ) Balance as of September 30, 2020 $ 9,366 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | NOTE 5 - 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 $170.3 million and $99.2 million as of September 30, 2020 and December 31, 2019, respectively. All other investments are classified as held-to-maturity held-to-maturity |
Goodwill and Intangibles
Goodwill and Intangibles | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | NOTE 6 - GOODWILL AND INTANGIBLES We anticipate that the COVID-19 10-Q COVID-19 Goodwill The change in carrying amount of goodwill was as follows (in thousands): Goodwill Accumulated Goodwill January 1, 2020 $ 265,656 $ (70,004 ) $ 195,652 Business Combinations 11,250 — 11,250 Other (120 ) — (120 ) September 30, 2020 $ 276,786 $ (70,004 ) $ 206,782 Other changes included in the above table include minor adjustments for the purchase price allocation of certain acquisitions still under measurement. For additional information regarding changes to goodwill resulting from acquisitions, see Note 16, Business Combinations. We test goodwill for impairment annually during the fourth quarter of our fiscal year or earlier if there is an impairment indicator. 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 September 30, As of December 31, 2020 2019 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Amortized intangibles: Customer relationships $ 184,562 $ 83,719 $ 100,843 $ 169,334 $ 69,388 $ 99,946 Covenants not-to-compete 18,944 12,761 6,183 16,959 10,617 6,342 Trademarks and tradenames 73,543 26,042 47,501 69,718 22,609 47,109 Backlog 15,256 14,385 871 14,080 13,915 165 $ 292,305 $ 136,907 $ 155,398 $ 270,091 $ 116,529 $ 153,562 The gross carrying amount of intangibles increased approximately $22.2 million during the nine months ended September 30, 2020 primarily due to business combinations. For more information, see Note 16, Business Combinations. Remaining estimated aggregate annual amortization expense is as follows (amounts, in thousands, are for the fiscal year ended): Remainder of 2020 $ 7,069 2021 27,621 2022 26,037 2023 23,126 2024 19,611 Thereafter 51,934 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 7 - LONG-TERM DEBT Long-term debt consisted of the following (in thousands): As of September 30, As of December 31, 2020 2019 Senior Notes due 2028, net of unamortized debt issuance costs of $4,380 and $4,823, respectively $ 295,620 $ 295,177 Term loan, net of unamortized debt issuance costs of $1,426 and $1,662, respectively 198,574 198,338 Vehicle and equipment notes, maturing through September 2025; payable in various monthly installments, including interest rates ranging from 1.9% to 4.8% 70,846 72,714 Various notes payable, maturing through March 2025; payable in various monthly installments, including interest rates ranging from 2.0% to 6.0% 3,392 2,966 568,432 569,195 Less: current maturities (24,156 ) (24,164 ) Long-term debt, less current maturities $ 544,276 $ 545,031 Remaining required repayments of debt principal, gross of unamortized debt issuance costs, as of September 30, 2020 are as follows (in thousands): Remainder of 2020 $ 6,757 2021 22,694 2022 18,962 2023 13,760 2024 7,839 Thereafter 504,226 5.75% Senior Notes due 2028 In September 2019, we issued $300.0 million in aggregate principal amount of 5.75% senior unsecured notes (the “Senior Notes”). The Senior Notes will mature on February 1, 2028 and interest will be payable semi-annually in cash in arrears on February 1 and August 1, commencing on February 1, 2020. The net proceeds from the Senior Notes offering were $295.0 million after debt issuance costs. We used some of the net proceeds to repay a portion of our outstanding obligations (including accrued and unpaid interest) under our term loan credit agreement (as defined below) and to pay fees and expenses related to the entry into a new revolving credit facility described below. The indenture covering the Senior Notes contains restrictive covenants that, among other things, limit the ability of the Company and certain of our subsidiaries (subject to certain exceptions) to: (i) incur additional debt and issue preferred stock; (ii) pay dividends on, redeem or repurchase stock; (iii) prepay subordinated debt; (iv) create liens; (v) make specified types of investments; (vi) apply net proceeds from certain asset sales; (vii) engage in transactions with affiliates; (viii) merge, consolidate or sell substantially all of our assets; and (ix) pay dividends and make other distributions from subsidiaries. Credit Facilities In December 2019, we amended and restated our $400 million, seven April 2025 In September 2019, we entered into a new asset-based lending credit agreement (the “ABL Credit Agreement”). The ABL Credit Agreement provides for an asset-based lending credit facility (the “ABL Revolver”) of up to $200.0 million with a five All of the obligations under the Term Loan and ABL Revolver are guaranteed by all of the Company’s existing restricted subsidiaries and will be guaranteed by the Company’s future restricted subsidiaries. Additionally, all obligations under the Term Loan and ABL Revolver, and the guarantees of those obligations, are secured by substantially all of the assets of the Company and the guarantors, subject to certain exceptions and permitted liens, including a first-priority security interest in such assets that constitute ABL Priority Collateral, as defined in the ABL Credit Agreement, and a second-priority security interest in such assets that constitute Term Loan Priority Collateral, as defined in the Term Loan Agreement. The ABL Revolver bears interest at either the Eurodollar rate or the base rate (which approximated the prime rate), at the Company’s election, plus a margin of (A) 1.25% or 1.50% in the case of Eurodollar rate loans (based on a measure of availability under the ABL Credit Agreement) and (B) 0.25% or 0.50% in the case of base rate loans (based on a measure of availability under the ABL Credit Agreement). The ABL Revolver also provides incremental revolving credit facility commitments of up to $50.0 million. The terms and conditions of any incremental revolving credit facility commitments must be no more favorable than the terms of the ABL Revolver. The ABL Revolver also allows for the issuance of letters of credit of up to $75.0 million in aggregate and borrowing of swingline loans of up to $20.0 million in aggregate. The ABL Credit Agreement contains a financial covenant requiring the satisfaction of a minimum fixed charge coverage ratio of 1.0x in the event that we do not meet a minimum measure of availability under the ABL Revolver. Vehicle and Equipment Notes We are party to a Master Loan and Security Agreement (“Master Loan and Security Agreement”), a Master Equipment Lease Agreement (“Master Equipment Agreement”) and one or more Master Loan Agreements (“Master Loan Agreements” and together with the Master Loan and Security Agreement and Master Equipment Agreement the “Master Loan Equipment Agreements”) with various lenders to provide financing for the purpose of purchasing or leasing vehicles and equipment used in the normal course of business. Each financing arrangement under these agreements constitutes a separate note and obligation. Vehicles and equipment purchased or leased under each financing arrangement serve as collateral for the note applicable to such financing arrangement. Regular payments are due under each note for a period of typically 60 consecutive months after the incurrence of the obligation. The specific terms of each note are based on specific criteria, including the type of vehicle or equipment and the market interest rates at the time. No termination date applies to these agreements. As of September 30, 2020, approximately $67.7 million of the various loan agreements was available for purchases of equipment. Total gross assets relating to our Master Loan and Equipment Agreements were $134.4 million and $130.2 million as of September 30, 2020 and December 31, 2019, respectively. The net book value of assets under these agreements was $66.2 million and $68.2 million as of September 30, 2020 and December 31, 2019, respectively. Depreciation of assets held under these agreements is included within cost of sales on the Condensed Consolidated Statements of Operations and Comprehensive Income. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | NOTE 8 - LEASES We lease various assets in the ordinary course of 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; and certain vehicles and equipment to facilitate our operations, including, but not limited to, trucks, forklifts and office equipment. The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet: (in thousands) Classification As of September 30, As of December 31, Assets Non-Current Operating Operating lease right-of-use $ 50,873 $ 45,691 Finance Property and equipment, net 5,598 7,148 Total lease assets $ 56,471 $ 52,839 Liabilities Current Operating Current maturities of operating lease obligations $ 17,875 $ 15,459 Financing Current maturities of finance lease obligations 2,268 2,747 Non-Current Operating Operating lease obligations 32,431 29,785 Financing Finance lease obligations 2,747 3,597 Total lease liabilities $ 55,321 $ 51,588 Weighted-average remaining lease term: Operating leases 4.2 years Finance leases 2.7 years Weighted-average discount rate: Operating leases 3.91 % Finance leases 5.02 % Lease Costs The table below presents certain information related to the lease costs for finance and operating leases: Three months ended September 30, Nine months ended September 30, (in thousands) Classification 2020 2019 2020 2019 Operating lease cost (1) Administrative $ 5,760 $ 5,225 $ 16,972 $ 15,266 Finance lease cost Amortization of leased assets (2) Cost of sales 856 1,144 2,762 3,955 Interest on finance lease obligations Interest expense, net 64 84 207 268 Total lease costs $ 6,680 $ 6,453 $ 19,941 $ 19,489 (1) Includes variable lease costs of $0.6 million and $0.5 million for the three months ended September 30, 2020 and 2019, respectively, and $1.9 million and $1.5 million for the nine months ended September 30, 2020 and 2019, respectively, and short-term lease costs of $0.2 million for each of the three months ended September 30, 2020 and 2019, respectively, and $0.6 million for each of the nine months ended September 30, 2020 and 2019, respectively. (2) Includes variable lease costs of $0.2 million for each of the three months ended September 30, 2020 and 2019, respectively, and $0.6 million and $0.7 million for the nine months ended September 30, 2020 and 2019, respectively. Other Information The table below presents supplemental cash flow information related to leases (in thousands): Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 4,949 $ 4,488 $ 14,501 $ 13,009 Operating cash flows for finance leases 64 84 207 268 Financing cash flows for finance leases 606 917 1,998 3,398 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 as of September 30, 2020 (in thousands): Finance Leases Operating Leases Related Party Other Total Operating Remainder of 2020 $ 761 $ 302 $ 4,817 $ 5,159 2021 2,203 1,061 17,319 18,340 2022 1,209 986 11,598 12,584 2023 848 534 6,467 7,001 2024 434 548 3,135 3,683 Thereafter 69 1,086 6,924 8,010 Total minimum lease payments 5,524 $ 4,517 $ 50,260 54,777 Less: Amounts representing executory costs (103 ) — Less: Amounts representing interest (406 ) (4,471 ) Present value of future minimum lease payments 5,015 50,306 Less: Current obligation under leases (2,268 ) (17,875 ) Long-term lease obligations $ 2,747 $ 32,431 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 9 - 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 September 30, 2020 and December 31, 2019 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 and nine months ended September 30, 2020 and 2019, 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 September 30, 2020 and December 31, 2019 approximate fair value due to the short-term maturities of these financial instruments. The carrying amounts of certain long-term debt, including the Term Loan and ABL Revolver as of September 30, 2020 and December 31, 2019, approximate fair value due to the variable rate nature of the agreements. The carrying amounts of our operating lease right-of-use 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 September 30, 2020 As of December 31, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Financial assets: Cash equivalents $ 170,307 $ 170,307 $ — $ — $ 99,242 $ 99,242 $ — $ — Derivative financial instruments 1,759 — 1,759 — — — — — Total financial assets $ 172,066 $ 170,307 $ 1,759 $ — $ 99,242 $ 99,242 $ — $ — Financial liabilities: Contingent consideration $ 3,363 $ — $ — $ 3,363 $ 3,854 $ — $ — $ 3,854 Derivative financial instruments 129 — 129 — 9,446 — 9,446 — Total financial liabilities $ 3,492 $ — $ 129 $ 3,363 $ 13,300 $ — $ 9,446 $ 3,854 See Note 5, Investments, for more information on cash equivalents included in the table above. Also see Note 10, Derivatives and Hedging Activities, for more information on derivative financial instruments. The change in fair value of the contingent consideration (a Level 3 input) was as follows (in thousands): Contingent consideration liability - January 1, 2020 $ 3,854 Preliminary purchase price 2,000 Fair value adjustments (360 ) Accretion in value 532 Amounts cancelled (30 ) Amounts paid to sellers (2,633 ) Contingent consideration liability - September 30, 2020 $ 3,363 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 our Senior Notes and investments. To estimate fair values of these items, we utilized third-party quotes which are derived all or in part from model prices, external sources or market prices. Both represent a Level 2 fair value measurement and are as follows (in thousands): As of September 30, 2020 As of December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Investments $ 1,220 $ 1,221 $ 37,961 $ 37,958 Senior Notes (1) 300,000 316,215 300,000 321,114 (1) Excludes the impact of unamortized debt issuance costs. See Note 5, Investments, for more information on investments included in the table above. Also see Note 7, Debt, for more information on our Senior Notes. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | NOTE 10 - 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 nine months ended September 30, 2020, we used interest rate swaps to hedge the variable cash flows associated with existing variable-rate debt. 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. 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 September 30, 2020, we have not posted any collateral related to these agreements. During the three months ended September 30, 2020, we terminated our two existing interest rate swaps and our forward interest rate swap and simultaneously entered into a new forward interest rate swap beginning July 30, 2021. We settled the terminated swaps by making a cash payment of $17.8 million. This payment is classified within cash flows from operating activities within the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020, pursuant to company policy. The unrealized loss included in accumulated other comprehensive loss associated with the terminated swaps of $17.8 million at the time of termination will be amortized to interest expense over the course of the originally scheduled settlement dates of the terminated swaps. During the three and nine months ended September 30, 2020, we amortized $0.6 million of the unrealized loss to interest expense, net. The new forward interest rate swap has a beginning notional of $200.0 million, a fixed rate of 0.51% and a maturity date of April 15, 2030. Upon commencement, this forward swap will serve to hedge substantially all of the variable cash flows on our Term Loan until its maturity and if extended. 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 nine months ended September 30, 2020 or 2019. 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 when the forward interest rate swap begins and as the unrealized loss on our terminated swaps is amortized. Over the next twelve months, we estimate that an additional $3.4 million will be reclassified as an increase to interest expense, net. LIBOR is used as a reference rate for our interest rate swap agreements we use to hedge our interest rate exposure. During the nine months ended September 30, 2020, we adopted ASU 2020-04, |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Equity | NOTE 11 - STOCKHOLDERS’ EQUITY As of September 30, 2020 and December 31, 2019, we had losses of $11.7 million and $7.1 million, respectively, in accumulated other comprehensive loss now-terminated Activities During the nine months ended September 30, 2020, we repurchased approximately 443 thousand shares of our common stock with an aggregate price of approximately $15.8 million, or $35.59 average price per share. We did not repurchase any shares during the nine months ended September 3 COVID-19, temporarily Given the current state of our business and our markets, effective November 9, 2020, our share repurchase program will be reinstated. |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2020 | |
Postemployment Benefits [Abstract] | |
Employee Benefits | NOTE 12 - EMPLOYEE BENEFITS Healthcare We participate in multiple healthcare plans, the largest of which is partially self-funded with an insurance company paying benefits in excess of stop loss limits per individual/family. Our healthcare benefit expense (net of employee contributions) was approximately $5.5 million and $5.6 million for the three months ended September 30, 2020 and 2019, respectively, and $18.2 million and $15.7 million for the nine months ended September 30, 2020 and 2019, respectively, for all plans. An accrual for estimated healthcare claims incurred but not reported (“IBNR”) is included within accrued compensation on the Condensed Consolidated Balance Sheets and was $3.2 million and $2.6 million as of September 30, 2020 and December 31, 2019, respectively. Workers’ Compensation Workers’ compensation expense totaled $4.1 million and $4.0 million for the three months ended September 30, 2020 and 2019, respectively, and $11.4 million and $11.8 million for the nine months ended September 30, 2020 and 2019, respectively. Workers’ compensation known claims and IBNR reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands): September 30, December 31, 2020 2019 Included in other current liabilities $ 6,341 $ 6,777 Included in other long-term liabilities 12,575 10,874 $ 18,916 $ 17,651 We also had an insurance receivable for claims that exceeded the stop loss limit for fully insured policies 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): September 30, December 31, 2020 2019 Included in other non-current $ 1,857 $ 2,098 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 $0.4 million and $0.5 million during the three months ended September 30, 2020 and 2019, respectively, and $1.6 million and $1.5 million during the nine months ended September 30, 2020 and 2019, 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 non-employee non-employee 3 In addition, we granted approximately 0.2 million and 0.1 million shares of our common stock to employees during the nine months ended September 30, 2020 and 2019, respectively. We recorded $1.0 million and $3.0 million of compensation expense associated with non-performance-based 3 During the nine months ended September 30, 2020 and 2019, our employees surrendered approximately 25 thousand and 45 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 a tax shortfall of $0.3 million for the nine months ended September 30, 2020 and we recognized windfall tax benefits of $0.3 million for the nine months ended September 30, 2019 within the income tax provision in the Condensed Consolidated Statements of Operations and Comprehensive Income. As of September 30, 2020, we had $7.1 million of unrecognized compensation expense related to these nonvested common stock awards issued to non-employee Employees – Performance-Based Stock Awards During the nine months ended September 30, 2020, we issued under our 2014 Omnibus Incentive Plan approximately 0.1 million shares of our common stock to certain officers, which vest in two equal installments on each of April 20, 2021 and April 20, 2022. In addition, during the nine months ended September 30, 2020, we established, and our Board of Directors approved, performance-based targets in connection with common stock awards to be issued to certain officers in 2021 contingent upon achievement of these targets. Share-based compensation expense associated with these performance-based awards and prior performance-based grants was $0.9 million and $2.8 million for the three and nine months ended September 30, 2020, respectively, and $0.8 million and $2.3 million for the three and nine months ended September 3 As of September 30, 2020, we had $5.0 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 1.8 years using the graded-vesting method. See the table below for changes in shares and related weighted average grant date fair value per share. In addition, there are long-term performance-based restricted stock awards to be issued to certain employees annually through 2022 contingent upon achievement of certain performance targets. These awards are accounted for as liability-based awards since they represent a predominantly-fixed monetary amount that will be settled with a variable number of common shares and as such are included in other long-term liabilities on the Consolidated Balance Sheets. During the three and nine months ended September 30, 2020, we recorded $0.5 million and $1.2 million in compensation expense, respectively, associated with these performance-based awards, and we recorded $0.1 million in compensation expense during the nine months ended September 30, 2019. Employees – Performance-Based Restricted Stock Units During 2019, we established, and our board of directors approved, performance-based restricted stock units in connection with common stock awards which were issued to certain employees in 2020 based upon achievement of a performance target. In addition, during the nine months ended September 30, 2020, 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 2021 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 $0.4 million in compensation expense associated with these performance-based units during the three and nine months ended September 30, 2020, respectively, and $0.2 million and $0.5 million for the three and nine months ended September 3 As of September 30, 2020, we had $0.3 million 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 0.5 years. See the table below for changes in shares and related weighted average grant date fair value per share. Share-Based Compensation Summary Amounts and changes for each category of equity-based award were as follows: Common Stock Awards Performance-Based Stock Awards Performance-Based Restricted Stock Awards Weighted Awards Weighted Units Weighted Nonvested awards/units at December 31, 2019 152,882 $ 52.93 160,289 $ 50.49 13,186 $ 51.62 Granted 159,876 40.02 57,450 77.28 13,655 36.51 Vested (90,870 ) 49.69 (54,502 ) 51.43 (13,077 ) 51.50 Forfeited/Cancelled (4,023 ) 46.76 — — (491 ) 42.94 Nonvested awards/units at September 30, 2020 217,865 $ 44.93 163,237 $ 59.57 13,273 $ 36.51 We recorded the following stock compensation expense by income statement category (in thousands): Three months ended Nine months ended 2020 2019 2020 2019 Cost of sales $ 60 $ 97 $ 221 $ 280 Selling 45 48 154 149 Administrative 2,530 1,954 7,675 6,012 $ 2,635 $ 2,099 $ 8,050 $ 6,441 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. The difference between the sum of the expenses described above and the amount in the table is comprised of expenses related to immaterial nonrecurring awards. As of September 30, 2020, approximately 2.0 million of the 3.0 million shares of common stock authorized for issuance were available for issuance under the 2014 Omnibus Incentive Plan. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 13 - 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 and nine months ended September 30, 2020, our effective tax rate was 25.8% and 26.2%, respectively. The rates were unfavorably impacted by separate tax filing entities in a loss position for which a full valuation allowance is required, resulting in no tax benefit for recognized losses. The rate for the nine months ended September 30, 2020 was also impacted by recognition of a shortfall tax from equity vesting. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 14 - 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 8, 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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Sales $ 373 $ 3,736 $ 3,761 $ 9,658 Purchases 331 469 1,457 1,327 Rent 297 256 867 773 We had a related party balance of approximately $0.5 million and $1.7 million included in accounts receivable on our Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, respectively. 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 was a member of our board of directors until his resignation from our board effective March 18, 2020, accounted for $1.3 million of the related party accounts receivable balance as of December 31, 2019. Additionally, M/I Homes, Inc. accounted for a significant portion of the related party sales during the nine months ended September 30, 2020, all of which occurred during the first quarter of the year. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 15 - 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): September 30, December 31, 2020 2019 Included in other current liabilities $ 4,382 $ 3,538 Included in other long-term liabilities 17,914 18,184 $ 22,296 $ 21,722 We also had insurance receivables and indemnification assets included on the Condensed Consolidated Balance Sheets that, in aggregate, offset equal liabilities included within the reserve amounts noted above. The amounts were as follows (in thousands): September 30, December 31, Insurance receivables and indemnification assets for claims under fully insured policies $ 4,060 $ 7,491 Insurance receivables for claims that exceeded the stop loss limit 328 2,321 Total insurance receivables and indemnification assets included in other non-current $ 4,388 $ 9,812 Leases See Note 8, 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 $22.6 million for 2020 and $15.0 million for 2021. For the nine months ended September 30, 2020, we have satisfied $9.1 million of our purchase obligation under this agreement. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 16 - BUSINESS COMBINATIONS As part of our ongoing strategy to expand geographically and increase market share in certain markets, we completed five business combinations during the nine months ended September 30, 2020 and four business combinations and four insignificant tuck-in 3 The largest of these acquisitions were Royals Commercial Services, Inc. (“Royals”) in February 2020, Storm Master Gutters (“Storm Master”) in August 2020, Energy One America, LLC (“Energy One”) in August 2020, 1st State Insulation, LLC (“1st State Insulation”) in March 2019 and Expert Insulation of Brainerd, Inc. (collectively “Expert Insulation”) in June 2019. 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. Where noted, “Other” represents acquisitions that were individually immaterial in that year. Net income/(loss), as noted below, includes amortization, taxes and interest allocations when appropriate. For the three and nine months ended September 30, 2020 (in thousands): Three months ended Nine months ended 2020 Acquisitions Date Acquisition Cash Paid Seller Total Purchase Revenue Net Income Revenue Net Income Royals 2/29/2020 Asset $ 7,590 $ 2,500 $ 10,090 $ 2,843 $ 279 $ 6,650 $ 628 Energy One 8/10/2020 Asset 13,200 1,591 14,791 2,853 (202 ) 2,853 (202 ) Storm Master 8/31/2020 Asset 13,000 1,336 14,336 2,055 85 2,055 85 Other Various Asset 5,035 1,538 6,573 1,879 (252 ) 2,643 (291 ) $ 38,825 $ 6,965 $ 45,790 $ 9,630 $ (90 ) $ 14,201 $ 220 For the three and nine months ended September 3 Three months ended Nine months ended 2019 Acquisitions Date Acquisition Cash Paid Seller Total Purchase Revenue Net Income Revenue Net Income 1st State Insulation 3/18/2019 Asset $ 5,125 $ 1,355 $ 6,480 $ 3,156 $ 174 $ 6,586 $ 374 Expert Insulation 6/24/2019 Asset 16,165 1,993 18,158 3,147 193 3,339 160 Other Various Asset 3,450 974 4,424 7,262 591 7,262 591 $ 24,740 $ 4,322 $ 29,062 $ 13,565 $ 958 $ 17,187 $ 1,125 Acquisition-related costs recorded within administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income amounted to $0.8 million and $2.0 million for the three and nine months ended September 30, 2020 respectively, and $0.3 million and $1.3 million for the three and nine months ended September 3 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 September 30, 2020 As of September 30, 2019 Royals Energy One Storm Master Other Total 1st State Expert Other Total Estimated fair values: Accounts receivable $ 2,848 $ 3,657 $ 2,362 $ 1,370 $ 10,237 $ — $ 1,796 $ 254 $ 2,050 Inventories 305 838 175 278 1,596 291 723 338 1,352 Other current assets 430 12 — 145 587 — — 3 3 Property and equipment 598 2,319 798 350 4,065 989 235 667 1,891 Intangibles 3,930 6,500 8,720 2,996 22,146 3,382 6,740 2,242 12,364 Goodwill 3,015 2,859 3,631 1,745 11,250 1,857 8,545 930 11,332 Other non-current 58 — — 16 74 — 161 13 174 Accounts payable and other current liabilities (1,059 ) (1,375 ) (1,336 ) (196 ) (3,966 ) (39 ) (42 ) (23 ) (104 ) Deferred income tax liabilities (35 ) — — — (35 ) — — — — Other long-term liabilities — (19 ) (14 ) (131 ) (164 ) — — — — Fair value of assets acquired and purchase price 10,090 14,791 14,336 6,573 45,790 6,480 18,158 4,424 29,062 Less seller obligations 2,500 1,591 1,336 1,538 6,965 1,355 1,993 974 4,322 Cash paid $ 7,590 $ 13,200 $ 13,000 $ 5,035 $ 38,825 $ 5,125 $ 16,165 $ 3,450 $ 24,740 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 Further adjustments to the allocation for each acquisition still under its measurement period are expected as third-party or internal valuations are finalized, certain tax aspects of the transaction are completed, contingent consideration is settled 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 may not agree to the total gross increases of these assets as shown in Note 6, Goodwill and Intangibles, during each of the nine months ended September 30, 2020 and 2019 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 the nine months ended September 3 tuck-in Estimates of acquired intangible assets related to the acquisitions are as follows (in thousands): For the nine months ended September 30, 2020 2019 Acquired intangibles assets Estimated Weighted Estimated Weighted Customer relationships $ 14,528 8 $ 8,566 8 Trademarks and trade names 3,796 15 2,615 15 Non-competition 1,946 5 1,183 5 Backlog 1,876 1.5 — — Pro Forma Information The unaudited pro forma information for the combined results of the Company has been prepared as if the 2020 acquisitions had taken place on January 1, 2019 and the 2019 acquisitions had taken place on January 1, 2018. 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, 2019 and 2018, 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 Unaudited pro forma for the nine 2020 2019 2020 2019 Net revenue $ 426,601 $ 421,270 $ 1,241,506 $ 1,189,470 Net income 28,183 22,627 69,656 52,828 Basic net income per share 0.96 0.76 2.36 1.78 Diluted net income per share 0.95 0.76 2.34 1.77 Unaudited pro forma net income reflects additional intangible asset amortization expense of $0.3 million and $1.8 million for the three and nine months ended September 30, 2020, respectively, and $1.4 million and $4.8 million for the three and nine months ended September 3 3 |
Income Per Common Share
Income Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Income Per Common Share | NOTE 17 - 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 3 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 18 - SUBSEQUENT EVENT On October 13, 2020, we acquired substantially all of the assets of Insulation Contractors/Magellan Insulation, known within its local markets as Icon, for 10-Q. 805-10-50, |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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 10-K”), Our interim operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected in future operating quarters. Note 2 to the audited consolidated financial statements in our 2019 Form 10-K |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Standard Effective Date Adoption ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) January 1, 2020 This pronouncement and subsequently-issued amendments change the accounting for credit losses on available-for-sale ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment January 1, 2020 This ASU addresses concerns over the cost and complexity of the two-step one-step ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement January 1, 2020 This pronouncement amends Accounting Standards Codification (“ASC”) ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) Effective upon issuance This pronouncement contains optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The provisions of ASC 848 must be applied at a Topic, Subtopic or Industry Subtopic for all transactions other than derivatives, which may be applied at a hedging relationship level. The relief granted in ASC 848 is applicable only to legacy contracts if the amendments made to the agreements are solely for reference rate reform activities. We elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
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 Condensed Consolidated Financial Statements, which are described below: Standard Description Effective Date Effect on the financial statements or ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes This pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles of Topic 740 and improves the consistent application of GAAP by clarifying and amending existing guidance. Annual periods beginning after December 15, 2020, including interim periods therein. Early adoption is permitted. We are currently assessing the impact of adoption on our consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Residential new construction $ 315,434 75 % $ 297,003 75 % $ 912,095 75 % $ 840,806 76 % Repair and remodel 28,625 7 % 25,029 6 % 75,702 6 % 71,254 6 % Commercial 76,427 18 % 74,417 19 % 223,959 19 % 198,338 18 % Net revenues $ 420,486 100 % $ 396,449 100 % $ 1,211,756 100 % $ 1,110,398 100 % Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Insulation $ 268,292 64 % $ 253,311 64 % $ 779,045 64 % $ 710,005 64 % Waterproofing 33,272 8 % 32,781 8 % 89,855 7 % 84,024 8 % Shower doors, shelving and mirrors 29,282 7 % 27,011 7 % 85,199 7 % 77,828 7 % Garage doors 24,001 6 % 22,336 6 % 68,655 6 % 65,790 6 % Rain gutters 17,295 4 % 13,366 3 % 41,942 4 % 37,561 3 % Window blinds 12,166 3 % 10,615 3 % 34,651 3 % 30,780 3 % Other building products 36,178 8 % 37,029 9 % 112,409 9 % 104,410 9 % Net revenues $ 420,486 100 % $ 396,449 100 % $ 1,211,756 100 % $ 1,110,398 100 % |
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): September 30, December 31, 2020 2019 Contract assets $ 22,328 $ 22,138 Contract liabilities (11,237 ) (8,888 ) |
Schedule of Cost and Estimated Earnings on Uncompleted Contracts | Uncompleted contracts were as follows (in thousands): September 30, December 31, 2020 2019 Costs incurred on uncompleted contracts $ 136,522 $ 110,818 Estimated earnings 75,338 61,185 Total 211,860 172,003 Less: Billings to date 196,640 155,599 Net under billings $ 15,220 $ 16,404 |
Schedule of Net Under (Over) Billings | Net under billings were as follows (in thousands): September 30, December 31, 2020 2019 Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) $ 22,328 $ 22,138 Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) (7,108 ) (5,734 ) Net under billings $ 15,220 $ 16,404 |
Credit Losses (Tables)
Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Credit Loss [Abstract] | |
Schedule Of Changes In Allowance For Credit Losses | Changes in our allowance for credit losses were as follows (in thousands): Balance as of January 1, 2020 $ 6,878 Cumulative effect of change in accounting principle 1,600 Current period provision 3,839 Recoveries collected and other 466 Amounts written off (3,417 ) Balance as of September 30, 2020 $ 9,366 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Accumulated Goodwill January 1, 2020 $ 265,656 $ (70,004 ) $ 195,652 Business Combinations 11,250 — 11,250 Other (120 ) — (120 ) September 30, 2020 $ 276,786 $ (70,004 ) $ 206,782 |
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 September 30, As of December 31, 2020 2019 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Amortized intangibles: Customer relationships $ 184,562 $ 83,719 $ 100,843 $ 169,334 $ 69,388 $ 99,946 Covenants not-to-compete 18,944 12,761 6,183 16,959 10,617 6,342 Trademarks and tradenames 73,543 26,042 47,501 69,718 22,609 47,109 Backlog 15,256 14,385 871 14,080 13,915 165 $ 292,305 $ 136,907 $ 155,398 $ 270,091 $ 116,529 $ 153,562 |
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 2020 $ 7,069 2021 27,621 2022 26,037 2023 23,126 2024 19,611 Thereafter 51,934 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consisted of the following (in thousands): As of September 30, As of December 31, 2020 2019 Senior Notes due 2028, net of unamortized debt issuance costs of $4,380 and $4,823, respectively $ 295,620 $ 295,177 Term loan, net of unamortized debt issuance costs of $1,426 and $1,662, respectively 198,574 198,338 Vehicle and equipment notes, maturing through September 2025; payable in various monthly installments, including interest rates ranging from 1.9% to 4.8% 70,846 72,714 Various notes payable, maturing through March 2025; payable in various monthly installments, including interest rates ranging from 2.0% to 6.0% 3,392 2,966 568,432 569,195 Less: current maturities (24,156 ) (24,164 ) Long-term debt, less current maturities $ 544,276 $ 545,031 |
Schedule of Maturities of Long-term Debt | Remaining required repayments of debt principal, gross of unamortized debt issuance costs, as of September 30, 2020 are as follows (in thousands): Remainder of 2020 $ 6,757 2021 22,694 2022 18,962 2023 13,760 2024 7,839 Thereafter 504,226 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, As of December 31, Assets Non-Current Operating Operating lease right-of-use $ 50,873 $ 45,691 Finance Property and equipment, net 5,598 7,148 Total lease assets $ 56,471 $ 52,839 Liabilities Current Operating Current maturities of operating lease obligations $ 17,875 $ 15,459 Financing Current maturities of finance lease obligations 2,268 2,747 Non-Current Operating Operating lease obligations 32,431 29,785 Financing Finance lease obligations 2,747 3,597 Total lease liabilities $ 55,321 $ 51,588 Weighted-average remaining lease term: Operating leases 4.2 years Finance leases 2.7 years Weighted-average discount rate: Operating leases 3.91 % Finance leases 5.02 % |
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: Three months ended September 30, Nine months ended September 30, (in thousands) Classification 2020 2019 2020 2019 Operating lease cost (1) Administrative $ 5,760 $ 5,225 $ 16,972 $ 15,266 Finance lease cost Amortization of leased assets (2) Cost of sales 856 1,144 2,762 3,955 Interest on finance lease obligations Interest expense, net 64 84 207 268 Total lease costs $ 6,680 $ 6,453 $ 19,941 $ 19,489 (1) Includes variable lease costs of $0.6 million and $0.5 million for the three months ended September 30, 2020 and 2019, respectively, and $1.9 million and $1.5 million for the nine months ended September 30, 2020 and 2019, respectively, and short-term lease costs of $0.2 million for each of the three months ended September 30, 2020 and 2019, respectively, and $0.6 million for each of the nine months ended September 30, 2020 and 2019, respectively. (2) Includes variable lease costs of $0.2 million for each of the three months ended September 30, 2020 and 2019, respectively, and $0.6 million and $0.7 million for the nine months ended September 30, 2020 and 2019, respectively. |
Schedule of Supplemental Cash flow information Related to Leases | The table below presents supplemental cash flow information related to leases (in thousands): Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 4,949 $ 4,488 $ 14,501 $ 13,009 Operating cash flows for finance leases 64 84 207 268 Financing cash flows for finance leases 606 917 1,998 3,398 |
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 as of September 30, 2020 (in thousands): Finance Leases Operating Leases Related Party Other Total Operating Remainder of 2020 $ 761 $ 302 $ 4,817 $ 5,159 2021 2,203 1,061 17,319 18,340 2022 1,209 986 11,598 12,584 2023 848 534 6,467 7,001 2024 434 548 3,135 3,683 Thereafter 69 1,086 6,924 8,010 Total minimum lease payments 5,524 $ 4,517 $ 50,260 54,777 Less: Amounts representing executory costs (103 ) — Less: Amounts representing interest (406 ) (4,471 ) Present value of future minimum lease payments 5,015 50,306 Less: Current obligation under leases (2,268 ) (17,875 ) Long-term lease obligations $ 2,747 $ 32,431 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 As of December 31, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Financial assets: Cash equivalents $ 170,307 $ 170,307 $ — $ — $ 99,242 $ 99,242 $ — $ — Derivative financial instruments 1,759 — 1,759 — — — — — Total financial assets $ 172,066 $ 170,307 $ 1,759 $ — $ 99,242 $ 99,242 $ — $ — Financial liabilities: Contingent consideration $ 3,363 $ — $ — $ 3,363 $ 3,854 $ — $ — $ 3,854 Derivative financial instruments 129 — 129 — 9,446 — 9,446 — Total financial liabilities $ 3,492 $ — $ 129 $ 3,363 $ 13,300 $ — $ 9,446 $ 3,854 |
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, 2020 $ 3,854 Preliminary purchase price 2,000 Fair value adjustments (360 ) Accretion in value 532 Amounts cancelled (30 ) Amounts paid to sellers (2,633 ) Contingent consideration liability - September 30, 2020 $ 3,363 |
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 our Senior Notes and investments. To estimate fair values of these items, we utilized third-party quotes which are derived all or in part from model prices, external sources or market prices. Both represent a Level 2 fair value measurement and are as follows (in thousands): As of September 30, 2020 As of December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Investments $ 1,220 $ 1,221 $ 37,961 $ 37,958 Senior Notes (1) 300,000 316,215 300,000 321,114 (1) Excludes the impact of unamortized debt issuance costs. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Postemployment Benefits [Abstract] | |
Summary of Workers' Compensation Known Claims and IBNR Reserves | Workers’ compensation expense totaled $4.1 million and $4.0 million for the three months ended September 30, 2020 and 2019, respectively, and $11.4 million and $11.8 million for the nine months ended September 30, 2020 and 2019, respectively. Workers’ compensation known claims and IBNR reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands): September 30, December 31, 2020 2019 Included in other current liabilities $ 6,341 $ 6,777 Included in other long-term liabilities 12,575 10,874 $ 18,916 $ 17,651 |
Schedule of Insurance Receivable for Claims | We also had an insurance receivable for claims that exceeded the stop loss limit for fully insured policies 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): September 30, December 31, 2020 2019 Included in other non-current $ 1,857 $ 2,098 |
Summary of Equity-based Awards for Employees | Amounts and changes for each category of equity-based award were as follows: Common Stock Awards Performance-Based Stock Awards Performance-Based Restricted Stock Awards Weighted Awards Weighted Units Weighted Nonvested awards/units at December 31, 2019 152,882 $ 52.93 160,289 $ 50.49 13,186 $ 51.62 Granted 159,876 40.02 57,450 77.28 13,655 36.51 Vested (90,870 ) 49.69 (54,502 ) 51.43 (13,077 ) 51.50 Forfeited/Cancelled (4,023 ) 46.76 — — (491 ) 42.94 Nonvested awards/units at September 30, 2020 217,865 $ 44.93 163,237 $ 59.57 13,273 $ 36.51 |
Summary of Stock Compensation Expenses | We recorded the following stock compensation expense by income statement category (in thousands): Three months ended Nine months ended 2020 2019 2020 2019 Cost of sales $ 60 $ 97 $ 221 $ 280 Selling 45 48 154 149 Administrative 2,530 1,954 7,675 6,012 $ 2,635 $ 2,099 $ 8,050 $ 6,441 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Sales $ 373 $ 3,736 $ 3,761 $ 9,658 Purchases 331 469 1,457 1,327 Rent 297 256 867 773 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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): September 30, December 31, 2020 2019 Included in other current liabilities $ 4,382 $ 3,538 Included in other long-term liabilities 17,914 18,184 $ 22,296 $ 21,722 |
Schedule of Insurance Receivable for Claims | We also had insurance receivables and indemnification assets included on the Condensed Consolidated Balance Sheets that, in aggregate, offset equal liabilities included within the reserve amounts noted above. The amounts were as follows (in thousands): September 30, December 31, Insurance receivables and indemnification assets for claims under fully insured policies $ 4,060 $ 7,491 Insurance receivables for claims that exceeded the stop loss limit 328 2,321 Total insurance receivables and indemnification assets included in other non-current $ 4,388 $ 9,812 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Combinations | For the three and nine months ended September 30, 2020 (in thousands): Three months ended Nine months ended 2020 Acquisitions Date Acquisition Cash Paid Seller Total Purchase Revenue Net Income Revenue Net Income Royals 2/29/2020 Asset $ 7,590 $ 2,500 $ 10,090 $ 2,843 $ 279 $ 6,650 $ 628 Energy One 8/10/2020 Asset 13,200 1,591 14,791 2,853 (202 ) 2,853 (202 ) Storm Master 8/31/2020 Asset 13,000 1,336 14,336 2,055 85 2,055 85 Other Various Asset 5,035 1,538 6,573 1,879 (252 ) 2,643 (291 ) $ 38,825 $ 6,965 $ 45,790 $ 9,630 $ (90 ) $ 14,201 $ 220 For the three and nine months ended September 3 Three months ended Nine months ended 2019 Acquisitions Date Acquisition Cash Paid Seller Total Purchase Revenue Net Income Revenue Net Income 1st State Insulation 3/18/2019 Asset $ 5,125 $ 1,355 $ 6,480 $ 3,156 $ 174 $ 6,586 $ 374 Expert Insulation 6/24/2019 Asset 16,165 1,993 18,158 3,147 193 3,339 160 Other Various Asset 3,450 974 4,424 7,262 591 7,262 591 $ 24,740 $ 4,322 $ 29,062 $ 13,565 $ 958 $ 17,187 $ 1,125 |
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 September 30, 2020 As of September 30, 2019 Royals Energy One Storm Master Other Total 1st State Expert Other Total Estimated fair values: Accounts receivable $ 2,848 $ 3,657 $ 2,362 $ 1,370 $ 10,237 $ — $ 1,796 $ 254 $ 2,050 Inventories 305 838 175 278 1,596 291 723 338 1,352 Other current assets 430 12 — 145 587 — — 3 3 Property and equipment 598 2,319 798 350 4,065 989 235 667 1,891 Intangibles 3,930 6,500 8,720 2,996 22,146 3,382 6,740 2,242 12,364 Goodwill 3,015 2,859 3,631 1,745 11,250 1,857 8,545 930 11,332 Other non-current 58 — — 16 74 — 161 13 174 Accounts payable and other current liabilities (1,059 ) (1,375 ) (1,336 ) (196 ) (3,966 ) (39 ) (42 ) (23 ) (104 ) Deferred income tax liabilities (35 ) — — — (35 ) — — — — Other long-term liabilities — (19 ) (14 ) (131 ) (164 ) — — — — Fair value of assets acquired and purchase price 10,090 14,791 14,336 6,573 45,790 6,480 18,158 4,424 29,062 Less seller obligations 2,500 1,591 1,336 1,538 6,965 1,355 1,993 974 4,322 Cash paid $ 7,590 $ 13,200 $ 13,000 $ 5,035 $ 38,825 $ 5,125 $ 16,165 $ 3,450 $ 24,740 |
Estimates of Acquired Intangible Assets | Estimates of acquired intangible assets related to the acquisitions are as follows (in thousands): For the nine months ended September 30, 2020 2019 Acquired intangibles assets Estimated Weighted Estimated Weighted Customer relationships $ 14,528 8 $ 8,566 8 Trademarks and trade names 3,796 15 2,615 15 Non-competition 1,946 5 1,183 5 Backlog 1,876 1.5 — — |
Pro Forma Results of Operations | The unaudited pro forma information for the combined results of the Company has been prepared as if the 2020 acquisitions had taken place on January 1, 2019 and the 2019 acquisitions had taken place on January 1, 2018. 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, 2019 and 2018, 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 Unaudited pro forma for the nine 2020 2019 2020 2019 Net revenue $ 426,601 $ 421,270 $ 1,241,506 $ 1,189,470 Net income 28,183 22,627 69,656 52,828 Basic net income per share 0.96 0.76 2.36 1.78 Diluted net income per share 0.95 0.76 2.34 1.77 |
Organization - Additional Infor
Organization - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020LocationSegment | |
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 | 180 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Contract liability revenue recognized | $ 0.2 | $ 7.7 | ||
Impairment losses on Contract Assets | 0 | $ 0 | 0 | $ 0 |
Transaction price allocated to uncompleted contracts | $ 71.3 | $ 71.3 | ||
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 420,486 | $ 396,449 | $ 1,211,756 | $ 1,110,398 |
Revenue [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Net revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Insulation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 268,292 | $ 253,311 | $ 779,045 | $ 710,005 |
Insulation [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Net revenues | 64.00% | 64.00% | 64.00% | 64.00% |
Waterproofing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 33,272 | $ 32,781 | $ 89,855 | $ 84,024 |
Waterproofing [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Net revenues | 8.00% | 8.00% | 7.00% | 8.00% |
Shower Doors, Shelving and Mirrors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 29,282 | $ 27,011 | $ 85,199 | $ 77,828 |
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% | 7.00% | 7.00% |
Garage Doors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 24,001 | $ 22,336 | $ 68,655 | $ 65,790 |
Garage Doors [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Net revenues | 6.00% | 6.00% | 6.00% | 6.00% |
Rain Gutters [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 17,295 | $ 13,366 | $ 41,942 | $ 37,561 |
Rain Gutters [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Net revenues | 4.00% | 3.00% | 4.00% | 3.00% |
Window blinds [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 12,166 | $ 10,615 | $ 34,651 | $ 30,780 |
Window blinds [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Net revenues | 3.00% | 3.00% | 3.00% | 3.00% |
Other Building Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 36,178 | $ 37,029 | $ 112,409 | $ 104,410 |
Other Building Products [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Net revenues | 8.00% | 9.00% | 9.00% | 9.00% |
Residential New Construction [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 315,434 | $ 297,003 | $ 912,095 | $ 840,806 |
Residential New Construction [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Net revenues | 75.00% | 75.00% | 75.00% | 76.00% |
Repair and Remodel [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 28,625 | $ 25,029 | $ 75,702 | $ 71,254 |
Repair and Remodel [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Net revenues | 7.00% | 6.00% | 6.00% | 6.00% |
Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 76,427 | $ 74,417 | $ 223,959 | $ 198,338 |
Commercial [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Net revenues | 18.00% | 19.00% | 19.00% | 18.00% |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Assets and Liabilities Related to Uncompleted Contracts and Customer Deposits (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Contract with Customer, Asset and Liability [Abstract] | ||
Contract assets | $ 22,328 | $ 22,138 |
Contract liabilities | $ (11,237) | $ (8,888) |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Cost and Estimated Earnings on Uncompleted Contracts (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Contractors [Abstract] | ||
Costs incurred on uncompleted contracts | $ 136,522 | $ 110,818 |
Estimated earnings | 75,338 | 61,185 |
Total | 211,860 | 172,003 |
Less: Billings to date | 196,640 | 155,599 |
Net under billings | $ 15,220 | $ 16,404 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Net Under (Over) Billings (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Contractors [Abstract] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) | $ 22,328 | $ 22,138 |
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) | (7,108) | (5,734) |
Net under billings | $ 15,220 | $ 16,404 |
Credit Losses - Additional Info
Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | |||
Cumulative effect of accounting changes, net of tax | $ 241,583 | $ 173,371 | |
Accounting Standards Update 2016-13 [Member] | Revision of Prior Period, Adjustment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Cumulative Effect on Retained Earnings, Tax | $ 400 | ||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Cumulative effect of accounting changes, net of tax | $ 1,200 |
Credit Losses - Schedule Of Cha
Credit Losses - Schedule Of Changes In Allowance For Credit Losses (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Credit Loss [Abstract] | |
Beginning balance | $ 6,878 |
Cumulative effect of change in accounting principle | 1,600 |
Current period provision | 3,839 |
Recoveries collected and other | 466 |
Amounts written off | (3,417) |
Ending balance | $ 9,366 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Cash and cash equivalents | $ 170.3 | $ 99.2 |
Held-to-Maturity Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Investments | $ 1.2 | $ 38 |
Goodwill and Intangibles - Summ
Goodwill and Intangibles - Summary of Change in Carrying Amount of Goodwill (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill (Gross), beginning balance | $ 265,656 |
Business Combinations | 11,250 |
Other | (120) |
Goodwill (Gross), ending balance | 276,786 |
Accumulated Impairment Losses, beginning balance | (70,004) |
Business combinations | 0 |
Other | 0 |
Accumulated Impairment Losses, ending balance | (70,004) |
Goodwill (Net), beginning balance | 195,652 |
Business Combinations | 11,250 |
Other | (120) |
Goodwill (Net), ending balance | $ 206,782 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Increase in gross carrying amount of intangibles | $ 22.2 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Gross Carrying Amount and Accumulated Amortization (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 292,305 | $ 270,091 |
Accumulated Amortization | 136,907 | 116,529 |
Net Book Value | 155,398 | 153,562 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 184,562 | 169,334 |
Accumulated Amortization | 83,719 | 69,388 |
Net Book Value | 100,843 | 99,946 |
Covenants Not-to-Compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 18,944 | 16,959 |
Accumulated Amortization | 12,761 | 10,617 |
Net Book Value | 6,183 | 6,342 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 73,543 | 69,718 |
Accumulated Amortization | 26,042 | 22,609 |
Net Book Value | 47,501 | 47,109 |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,256 | 14,080 |
Accumulated Amortization | 14,385 | 13,915 |
Net Book Value | $ 871 | $ 165 |
Goodwill and Intangibles - Sc_2
Goodwill and Intangibles - Schedule of Estimated Aggregate Annual Amortization (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
Finite Lived Intangible Assets Net Amortization Expense Rolling Maturity [Abstract] | |
Remainder of 2020 | $ 7,069 |
2021 | 27,621 |
2022 | 26,037 |
2023 | 23,126 |
2024 | 19,611 |
Thereafter | $ 51,934 |
Long-term Debt - Schedule of De
Long-term Debt - Schedule of Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Senior Notes due 2028, net of unamortized debt issuance costs of $4,380 and $4,823, respectively | $ 295,620 | $ 295,177 |
Term loan, net of unamortized debt issuance costs of $1,426 and $1,662, respectively | 198,574 | 198,338 |
Vehicle and equipment notes, maturing through September 2025; payable in various monthly installments, including interest rates ranging from 1.9% to 4.8% | 70,846 | 72,714 |
Various notes payable, maturing through March 2025; payable in various monthly installments, including interest rates ranging from 2.0% to 6.0% | 3,392 | 2,966 |
Total long term debt | 568,432 | 569,195 |
Less: current maturities | (24,156) | (24,164) |
Long-term debt, less current maturities | $ 544,276 | $ 545,031 |
Long-term Debt - Schedule of _2
Long-term Debt - Schedule of Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | |||
Notes payable maturity date | 2025-03 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable Interest rate | 2.00% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable Interest rate | 6.00% | ||
Term Loan Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ 1,426 | $ 1,662 | |
Vehicle and Equipment [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable maturity date | 2025-09 | ||
Vehicle and Equipment [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable Interest rate | 1.90% | ||
Vehicle and Equipment [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable Interest rate | 4.80% | ||
5.75% Senior Notes Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ 4,380 | $ 4,823 | |
Notes payable Interest rate | 5.75% |
Long-Term Debt - Schedule Of Ma
Long-Term Debt - Schedule Of Maturities Of Long Term Debt (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
Maturities of Long-term Debt [Abstract] | |
Remainder of 2020 | $ 6,757 |
2021 | 22,694 |
2022 | 18,962 |
2023 | 13,760 |
2024 | 7,839 |
Thereafter | $ 504,226 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) |
Debt Instrument [Line Items] | |||
Term loan facility maturity period | 5 years | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable Interest rate | 2.00% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable Interest rate | 6.00% | ||
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument maturity date | Apr. 30, 2025 | ||
Master Loan Agreements [Member] | |||
Debt Instrument [Line Items] | |||
Payment Period, typical | 60 months | ||
Assets relating to master loan agreements, Gross | $ 130,200,000 | $ 134,400,000 | |
Capital leased assets, net book value | 68,200,000 | $ 66,200,000 | |
Term Loan Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 400,000,000 | ||
Term Loan Agreement [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Term loan facility maturity period | 7 years | ||
ABL Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, covenant requirements | requiring the satisfaction of a minimum fixed charge coverage ratio of 1.0x in the event that we do not meet a minimum measure of availability under the ABL Revolver. | ||
Fixed charge coverage ratio | 1 | ||
ABL Credit Agreement [Member] | Eurodollar Rate Loan One [Member] | |||
Debt Instrument [Line Items] | |||
Margin interest rate percentage | 1.25% | ||
ABL Credit Agreement [Member] | Eurodollar Rate Loan Two [Member] | |||
Debt Instrument [Line Items] | |||
Margin interest rate percentage | 1.50% | ||
ABL Credit Agreement [Member] | Base Rate Loan One [Member] | |||
Debt Instrument [Line Items] | |||
Margin interest rate percentage | 0.25% | ||
ABL Credit Agreement [Member] | Base Rate Loan Two [Member] | |||
Debt Instrument [Line Items] | |||
Margin interest rate percentage | 0.50% | ||
ABL Credit Agreement [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | $ 200,000,000 | ||
Borrowings outstanding | $ 67,700,000 | ||
ABL Credit Agreement [Member] | Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | 75,000,000 | ||
ABL Credit Agreement [Member] | Incremental Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | 50,000,000 | ||
ABL Credit Agreement [Member] | Swing Line Loans [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | 20,000,000 | ||
ABL Third Amendment [Member] | Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Remaining borrowing availability | $ 161,300,000 | ||
5.75% Senior Notes Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 300,000,000 | ||
Debt instrument maturity date | Feb. 1, 2028 | ||
Notes payable Interest rate | 5.75% | ||
Debt instrument, interest rate terms | interest will be payable semi-annually in cash in arrears on February 1 and August 1, commencing on February 1, 2020. | ||
Debt instrument, Frequency of periodic payment of interest | semi-annually | ||
Proceeds from senior note issuance | $ 295,000,000 | ||
Term Loan Amendment Agreement [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Margin interest rate percentage | 1.25% | ||
Deferred financing costs and debt issuance costs, net | $ 198,600,000 | ||
Term Loan Amendment Agreement [Member] | Term Loan [Member] | London Inter Bank Offered Rate LIBRO member | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Margin interest rate percentage | 2.25% | ||
Term Loan Amendment Agreement [Member] | Term Loan [Member] | London Inter Bank Offered Rate LIBRO member | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Margin interest rate percentage | 2.50% |
Leases - Schedule Of Supplement
Leases - Schedule Of Supplemental Balance Sheet In formation Related To Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Non-Current | ||
Operating | $ 50,873 | $ 45,691 |
Finance | 5,598 | 7,148 |
Total lease assets | 56,471 | 52,839 |
Current | ||
Less: Current obligation under leases | 17,875 | 15,459 |
Financing | 2,268 | 2,747 |
Non-Current | ||
Long-term lease obligations | 32,431 | 29,785 |
Financing | 2,747 | 3,597 |
Total lease liabilities | $ 55,321 | $ 51,588 |
Weighted-average remaining lease term | ||
Operating leases | 4 years 2 months 12 days | |
Finance leases | 2 years 8 months 12 days | |
Weighted-average discount rate | ||
Operating leases | 3.91% | |
Finance leases | 5.02% |
Leases - Lease Cost Finance And
Leases - Lease Cost Finance And Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Operating Lease, Cost | [1] | $ 5,760 | $ 5,225 | $ 16,972 | $ 15,266 |
Finance lease cost | |||||
Amortization of leased assets | [2] | 856 | 1,144 | 2,762 | 3,955 |
Interest on finance lease obligations | 64 | 84 | 207 | 268 | |
Total lease costs | $ 6,680 | $ 6,453 | $ 19,941 | $ 19,489 | |
[1] | Includes variable lease costs of $0.6 million and $0.5 million for the three months ended September 30, 2020 and 2019, respectively, and $1.9 million and $1.5 million for the nine months ended September 30, 2020 and 2019, respectively, and short-term lease costs of $0.2 million for each of the three months ended September 30, 2020 and 2019, respectively, and $0.6 million for each of the nine months ended September 30, 2020 and 2019, respectively. | ||||
[2] | Includes variable lease costs of $0.2 million for each of the three months ended September 30, 2020 and 2019, respectively, and $0.6 million and $0.7 million for the nine months ended September 30, 2020 and 2019, respectively. |
Leases - Lease Cost Finance A_2
Leases - Lease Cost Finance And Operating Leases (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
General and Administrative Expense [Member] | ||||
Variable Lease, Cost | $ 0.6 | $ 0.5 | $ 1.9 | $ 1.5 |
Short-term Lease, Cost | 0.2 | 0.2 | 0.6 | 0.6 |
Cost of Sales [Member] | ||||
Variable Lease, Cost | $ 0.2 | $ 0.2 | $ 0.6 | $ 0.7 |
Leases - Schedule Of Suppleme_2
Leases - Schedule Of Supplemental Cash Flow Information Related To Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows for operating leases | $ 4,949 | $ 4,488 | $ 14,501 | $ 13,009 |
Operating cash flows for finance leases | 64 | 84 | 207 | 268 |
Financing cash flows for finance leases | $ 606 | $ 917 | $ 1,998 | $ 3,398 |
Leases - Finance Lease Obligati
Leases - Finance Lease Obligations And Operating Lease Obligations (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Remainder of 2020 | $ 5,159 | |
2021 | 18,340 | |
2022 | 12,584 | |
2023 | 7,001 | |
2024 | 3,683 | |
Thereafter | 8,010 | |
Total minimum lease payments | 54,777 | |
Less: Amounts representing interest | (4,471) | |
Present value of future minimum lease payments | 50,306 | |
Less: Current obligation under leases | (17,875) | $ (15,459) |
Long-term lease obligations | 32,431 | 29,785 |
Remainder of 2020 | 761 | |
2021 | 2,203 | |
2022 | 1,209 | |
2023 | 848 | |
2024 | 434 | |
Thereafter | 69 | |
Total minimum lease payments | 5,524 | |
Less: Amounts representing executory costs | (103) | |
Less: Amounts representing interest | (406) | |
Present value of future minimum lease payments | 5,015 | |
Less: Current obligation under leases | (2,268) | (2,747) |
Long-term lease obligations | 2,747 | $ 3,597 |
Other Party Operating Leases [Member] | ||
Remainder of 2020 | 4,817 | |
2021 | 17,319 | |
2022 | 11,598 | |
2023 | 6,467 | |
2024 | 3,135 | |
Thereafter | 6,924 | |
Total minimum lease payments | 50,260 | |
Related Party Operating Leases [Member] | ||
Remainder of 2020 | 302 | |
2021 | 1,061 | |
2022 | 986 | |
2023 | 534 | |
2024 | 548 | |
Thereafter | 1,086 | |
Total minimum lease payments | $ 4,517 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Values of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Cash equivalents | $ 170,307 | $ 99,242 |
Derivative financial instruments | 1,759 | |
Total financial assets | 172,066 | 99,242 |
Financial liabilities: | ||
Contingent consideration | 3,363 | 3,854 |
Derivative financial instruments | 129 | 9,446 |
Total financial liabilities | 3,492 | 13,300 |
Level 1 [Member] | ||
Financial assets: | ||
Cash equivalents | 170,307 | 99,242 |
Total financial assets | 170,307 | 99,242 |
Level 2 [Member] | ||
Financial assets: | ||
Derivative financial instruments | 1,759 | |
Total financial assets | 1,759 | |
Financial liabilities: | ||
Derivative financial instruments | 129 | 9,446 |
Total financial liabilities | 129 | 9,446 |
Level 3 [Member] | ||
Financial liabilities: | ||
Contingent consideration | 3,363 | 3,854 |
Total financial liabilities | $ 3,363 | $ 3,854 |
Fair value measurements - Summa
Fair value measurements - Summary of Change in Fair Value of Contingent Consideration (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, (Sales), Issuances, (Settlements) [Abstract] | |
Beginning Balance | $ 3,854 |
Preliminary purchase price | 2,000 |
Fair value adjustments | (360) |
Accretion in value | 532 |
Amounts cancelled | (30) |
Amounts paid to sellers | (2,633) |
Ending Balance | $ 3,363 |
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 | Sep. 30, 2020 | Dec. 31, 2019 | |
Carrying Value [Member] | |||
Financial assets: | |||
Investments | $ 1,220 | $ 37,961 | |
Carrying Value [Member] | 5.75% Senior Notes Due 2028 [Member] | |||
Financial assets: | |||
Senior Notes | [1] | 300,000 | 300,000 |
Level 2 [Member] | |||
Financial assets: | |||
Investments | 1,221 | 37,958 | |
Level 2 [Member] | 5.75% Senior Notes Due 2028 [Member] | |||
Financial assets: | |||
Senior Notes | [1] | $ 316,215 | $ 321,114 |
[1] | Excludes the impact of unamortized debt issuance costs. |
Derivative and Hedging Activiti
Derivative and Hedging Activities - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020USD ($)Swap | Sep. 30, 2020USD ($)Swap | Sep. 30, 2019USD ($) | |
Term Loan [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Number of swaps | Swap | 2 | 2 | |
Designated as Hedging Instrument [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified | $ 0 | $ 0 | |
Interest Expense [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amortization of unrealized loss | $ 600,000 | 600,000 | |
Interest Rate Swap [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Unrealized loss included in accumulated other comprehensive loss associated with the terminated swaps | 12,900,000 | ||
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 | 3,400,000 | ||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount maturity date | Apr. 15, 2030 | ||
Aggregate cash payments on swap termination | $ 17,800,000 | ||
Unrealized loss included in accumulated other comprehensive loss associated with the terminated swaps | 17,800,000 | ||
Notional amount of derivative instruments | $ 200,000,000 | $ 200,000,000 | |
Interest rate of Derivative instruments | 0.51% | 0.51% |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Statement Of Shareholders Equity [Line Items] | ||
Effective portion of unrealized (loss) gain on derivative instruments | $ (11,725) | $ (7,143) |
Share repurchase, amount | 15,759 | |
Interest Rate Swap [Member] | ||
Statement Of Shareholders Equity [Line Items] | ||
Accumulated Gross Unrealized Gain (Loss) | (12,900) | |
Forward Interest Rate Swap [Member] | ||
Statement Of Shareholders Equity [Line Items] | ||
Accumulated Gross Unrealized Gain (Loss) | $ 1,200 | |
2018 Stock Repurchase Plan [Member] | ||
Statement Of Shareholders Equity [Line Items] | ||
Common Stock Repurchase, Shares | 443 | |
Share repurchase, amount | $ 15,800 | |
Stock repurchase program, remaining authorized repurchase amount | $ 44,900 | |
Share repurchase, price per share | $ 35.59 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($)shares | Sep. 30, 2020USD ($)Installmentsshares | Sep. 30, 2019USD ($)shares | Dec. 31, 2019USD ($) | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Healthcare benefit expense, net of employee contributions | $ 5,500 | $ 5,600 | $ 18,200 | $ 15,700 | |
Accrued compensation | 43,310 | 43,310 | $ 33,636 | ||
Administration expense related to employee contribution plan | 400 | 500 | 1,600 | 1,500 | |
Share-based compensation expense | 2,635 | 2,099 | 8,050 | 6,441 | |
Unrecognized compensation expense | 7,100 | $ 7,100 | |||
Compensation cost not yet recognized, period for recognition | 2 years | ||||
Cost of Sales [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Workers' compensation expense | 4,100 | 4,000 | $ 11,400 | 11,800 | |
Share-based compensation expense | 60 | 97 | 221 | 280 | |
Performance Based Restricted Stock Units [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Share-based compensation expense | 100 | $ 200 | 400 | 500 | |
Unrecognized compensation expense | 300 | $ 300 | |||
Compensation cost not yet recognized, period for recognition | 6 months | ||||
Performance Based Awards [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Number of shares granted | shares | 57,450 | ||||
Long Term Performance Based Restricted Stock Awards [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Share-based compensation expense | $ 500 | $ 1,200 | $ 100 | ||
2014 Omnibus Incentive Plan [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Number of shares granted | shares | 100,000 | ||||
Number of shares surrendered to satisfy tax withholding obligations | shares | 25,000 | 45,000 | |||
Common stock shares available for issuance | shares | 2,000,000 | 2,000,000 | |||
Common stock shares authorized | shares | 3,000,000 | 3,000,000 | |||
Employee sharebased compensation tax shortfall | $ 300 | ||||
Employee sharebased compensation windfall tax windfall | $ 300 | ||||
2014 Omnibus Incentive Plan [Member] | Share-based Payment Arrangement, Nonemployee [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Number of shares granted | shares | 6,000 | 6,000 | 8,000 | 8,000 | |
Share-based compensation expense | $ 100 | $ 100 | $ 200 | $ 300 | |
2014 Omnibus Incentive Plan [Member] | Share-based Payment Arrangement, Employee [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Number of shares granted | shares | 200,000 | 100,000 | |||
2014 Omnibus Incentive Plan [Member] | Non-Performance-Based Awards [Member] | Share-based Payment Arrangement, Employee [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Share-based compensation expense | 1,000 | 1,000 | $ 3,000 | $ 3,300 | |
2014 Omnibus Incentive Plan [Member] | Officer [Member] | Non-Performance-Based Awards [Member] | Common Stock [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Share-based compensation expense | $ 800 | $ 2,300 | |||
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 | 900 | $ 2,800 | |||
Number of equal installments for common stock | Installments | 2 | ||||
Unrecognized compensation expense | 5,000 | $ 5,000 | |||
Compensation cost not yet recognized, period for recognition | 1 year 9 months 18 days | ||||
Medical IBNR Included in Accrued Compensation [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Accrued compensation | $ 3,200 | $ 3,200 | $ 2,600 |
Employee Benefits - Summary of
Employee Benefits - Summary of Workers' Compensation Known Claims and IBNR Reserves (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Employee-related Liabilities [Abstract] | ||
Included in other current liabilities | $ 6,341 | $ 6,777 |
Included in other long-term liabilities | 12,575 | 10,874 |
Workers' Compensation Liability | $ 18,916 | $ 17,651 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Insurance Receivable for Claims (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Workers' Compensation [Member] | ||
Malpractice Insurance [Line Items] | ||
Included in other non-current assets | $ 1,857 | $ 2,098 |
Employee Benefits - Summary o_2
Employee Benefits - Summary of Equity-Based Awards for Employees (Detail) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Common Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested common stock awards, Beginning balance | shares | 152,882 |
Granted | shares | 159,876 |
Vested | shares | (90,870) |
Forfeited/Cancelled | shares | (4,023) |
Nonvested common stock awards, Ending balance | shares | 217,865 |
Nonvested performance-based stock awards, Beginning balance | $ / shares | $ 52.93 |
Granted | $ / shares | 40.02 |
Vested | $ / shares | 49.69 |
Forfeited/Cancelled | $ / shares | 46.76 |
Nonvested performance-based stock awards, Ending balance | $ / shares | $ 44.93 |
Performance Based Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested performance-based stock awards/units, Beginning balance | shares | 160,289 |
Granted | shares | 57,450 |
Vested | shares | (54,502) |
Forfeited/Cancelled | shares | 0 |
Nonvested performance-based stock awards/units, Ending balance | shares | 163,237 |
Nonvested performance-based stock awards/units, Beginning balance | $ / shares | $ 50.49 |
Granted | $ / shares | 77.28 |
Vested | $ / shares | 51.43 |
Forfeited/Cancelled | $ / shares | 0 |
Nonvested performance-based stock awards/units, Ending balance | $ / shares | $ 59.57 |
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 | 13,186 |
Granted | shares | 13,655 |
Vested | shares | (13,077) |
Forfeited/Cancelled | shares | (491) |
Nonvested performance-based stock awards/units, Ending balance | shares | 13,273 |
Nonvested performance-based stock awards/units, Beginning balance | $ / shares | $ 51.62 |
Granted | $ / shares | 36.51 |
Vested | $ / shares | 51.50 |
Forfeited/Cancelled | $ / shares | 42.94 |
Nonvested performance-based stock awards/units, Ending balance | $ / shares | $ 36.51 |
Employee Benefits - Summary o_3
Employee Benefits - Summary of Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 2,635 | $ 2,099 | $ 8,050 | $ 6,441 |
Cost of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | 60 | 97 | 221 | 280 |
Selling [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | 45 | 48 | 154 | 149 |
Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 2,530 | $ 1,954 | $ 7,675 | $ 6,012 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Income Taxes [Line Items] | ||
Effective tax rate | 25.80% | 26.20% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Detail) - Affiliated Entity [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Related Party Transaction [Line Items] | ||||
Sales | $ 373 | $ 3,736 | $ 3,761 | $ 9,658 |
Purchases | 331 | 469 | 1,457 | 1,327 |
Rent | $ 297 | $ 256 | $ 867 | $ 773 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Affiliated Entity [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable, related parties | $ 0.5 | $ 1.7 |
M/I Homes Inc [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable, related parties | $ 1.3 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Accrued General Insurance Reserves (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Included in other current liabilities | $ 4,382 | $ 3,538 |
Included in other long-term liabilities | 17,914 | 18,184 |
Total | $ 22,296 | $ 21,722 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Insurance Receivable for Claims (Detail) - General Liability [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Line Items] | ||
Insurance receivables and indemnification assets for claims under fully insured policies | $ 4,060 | $ 7,491 |
Insurance receivables for claims that exceeded the stop loss limit | 328 | 2,321 |
Total insurance receivables and indemnification assets included in other non-current assets | $ 4,388 | $ 9,812 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | |
Purchase obligation, 2020 | $ 22.6 |
Purchase obligation, 2021 | 15 |
Purchase Obligations Satisfied | $ 9.1 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Business | Sep. 30, 2019USD ($)Business | |
Business Acquisition [Line Items] | ||||
Number of businesses acquired | Business | 5 | 4 | ||
Percentage of voting equity interests acquired | 100.00% | 100.00% | ||
Goodwill acquired expected to be tax deductible | $ 11,300 | $ 11,300 | ||
Amortization of intangibles | 6,974 | $ 6,156 | 20,378 | $ 18,065 |
Income tax expense (benefit) | 9,773 | 7,610 | 24,578 | 17,135 |
Administrative [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs | 800 | 300 | 2,000 | 1,300 |
Combined Business Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization of intangibles | 300 | 1,400 | 1,800 | 4,800 |
Income tax expense (benefit) | $ 38 | $ 500 | $ 100 | $ 1,300 |
Business Combinations - Summary
Business Combinations - Summary of Business Acquisitions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | ||||
Cash paid | $ 38,825 | $ 24,740 | ||
Seller Obligations | 6,965 | 4,322 | ||
Total Purchase Price | 45,790 | 29,062 | ||
Revenue | $ 420,486 | $ 396,449 | 1,211,756 | 1,110,398 |
Net Income | 28,077 | 21,212 | $ 69,402 | $ 48,965 |
Royals [Member] | ||||
Business Acquisition [Line Items] | ||||
Date | Feb. 29, 2020 | |||
Acquisition Type | Asset | |||
Cash paid | $ 7,590 | |||
Seller Obligations | 2,500 | |||
Total Purchase Price | 10,090 | |||
Revenue | 2,843 | 6,650 | ||
Net Income | 279 | $ 628 | ||
First State Insulation [Member] | ||||
Business Acquisition [Line Items] | ||||
Date | Mar. 18, 2019 | |||
Acquisition Type | Asset | |||
Cash paid | $ 5,125 | |||
Seller Obligations | 1,355 | |||
Total Purchase Price | 6,480 | |||
Revenue | 3,156 | 6,586 | ||
Net Income | 174 | $ 374 | ||
Other Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition Type | Asset | Asset | ||
Cash paid | $ 5,035 | $ 3,450 | ||
Seller Obligations | 1,538 | 974 | ||
Total Purchase Price | 6,573 | 4,424 | ||
Revenue | 1,879 | 7,262 | 2,643 | 7,262 |
Net Income | (252) | 591 | (291) | $ 591 |
Expert Insulation [Member] | ||||
Business Acquisition [Line Items] | ||||
Date | Jun. 24, 2019 | |||
Acquisition Type | Asset | |||
Cash paid | $ 16,165 | |||
Seller Obligations | 1,993 | |||
Total Purchase Price | 18,158 | |||
Revenue | 3,147 | 3,339 | ||
Net Income | 193 | 160 | ||
2020 Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenue | 9,630 | 14,201 | ||
Net Income | (90) | $ 220 | ||
2019 Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenue | 13,565 | 17,187 | ||
Net Income | $ 958 | $ 1,125 | ||
Energy One [Member] | ||||
Business Acquisition [Line Items] | ||||
Date | Aug. 10, 2020 | |||
Acquisition Type | Asset | |||
Cash paid | $ 13,200 | |||
Seller Obligations | 1,591 | |||
Total Purchase Price | 14,791 | |||
Revenue | 2,853 | 2,853 | ||
Net Income | (202) | $ (202) | ||
Storm Master [Member] | ||||
Business Acquisition [Line Items] | ||||
Date | Aug. 31, 2020 | |||
Acquisition Type | Asset | |||
Cash paid | $ 13,000 | |||
Seller Obligations | 1,336 | |||
Total Purchase Price | 14,336 | |||
Revenue | 2,055 | 2,055 | ||
Net Income | $ 85 | $ 85 |
Business Combinations - Summa_2
Business Combinations - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | ||
Accounts receivable | $ 10,237 | $ 2,050 |
Inventories | 1,596 | 1,352 |
Other current assets | 587 | 3 |
Property and equipment | 4,065 | 1,891 |
Intangibles | 22,146 | 12,364 |
Goodwill | 11,250 | 11,332 |
Other non-current assets | 74 | 174 |
Accounts payable and other current liabilities | (3,966) | (104) |
Deferred income tax liabilities | (35) | |
Other long-term liabilities | (164) | |
Fair value of assets acquired and purchase price | 45,790 | 29,062 |
Less seller obligations | 6,965 | 4,322 |
Cash paid | 38,825 | 24,740 |
Royals [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 2,848 | |
Inventories | 305 | |
Other current assets | 430 | |
Property and equipment | 598 | |
Intangibles | 3,930 | |
Goodwill | 3,015 | |
Other non-current assets | 58 | |
Accounts payable and other current liabilities | (1,059) | |
Deferred income tax liabilities | (35) | |
Fair value of assets acquired and purchase price | 10,090 | |
Less seller obligations | 2,500 | |
Cash paid | 7,590 | |
First State Insulation [Member] | ||
Business Acquisition [Line Items] | ||
Inventories | 291 | |
Property and equipment | 989 | |
Intangibles | 3,382 | |
Goodwill | 1,857 | |
Accounts payable and other current liabilities | (39) | |
Fair value of assets acquired and purchase price | 6,480 | |
Less seller obligations | 1,355 | |
Cash paid | 5,125 | |
Other Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 1,370 | 254 |
Inventories | 278 | 338 |
Other current assets | 145 | 3 |
Property and equipment | 350 | 667 |
Intangibles | 2,996 | 2,242 |
Goodwill | 1,745 | 930 |
Other non-current assets | 16 | 13 |
Accounts payable and other current liabilities | (196) | (23) |
Other long-term liabilities | (131) | |
Fair value of assets acquired and purchase price | 6,573 | 4,424 |
Less seller obligations | 1,538 | 974 |
Cash paid | 5,035 | 3,450 |
Expert Insulation [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 1,796 | |
Inventories | 723 | |
Property and equipment | 235 | |
Intangibles | 6,740 | |
Goodwill | 8,545 | |
Other non-current assets | 161 | |
Accounts payable and other current liabilities | (42) | |
Fair value of assets acquired and purchase price | 18,158 | |
Less seller obligations | 1,993 | |
Cash paid | $ 16,165 | |
Energy One [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 3,657 | |
Inventories | 838 | |
Other current assets | 12 | |
Property and equipment | 2,319 | |
Intangibles | 6,500 | |
Goodwill | 2,859 | |
Accounts payable and other current liabilities | (1,375) | |
Other long-term liabilities | (19) | |
Fair value of assets acquired and purchase price | 14,791 | |
Less seller obligations | 1,591 | |
Cash paid | 13,200 | |
Storm Master [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 2,362 | |
Inventories | 175 | |
Property and equipment | 798 | |
Intangibles | 8,720 | |
Goodwill | 3,631 | |
Accounts payable and other current liabilities | (1,336) | |
Other long-term liabilities | (14) | |
Fair value of assets acquired and purchase price | 14,336 | |
Less seller obligations | 1,336 | |
Cash paid | $ 13,000 |
Business Combinations - Estimat
Business Combinations - Estimates of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 14,528 | $ 8,566 |
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 | $ 3,796 | $ 2,615 |
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 | $ 1,946 | $ 1,183 |
Weighted Average Estimated Useful Life (yrs) | 5 years | 5 years |
Backlog [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 1,876 | |
Weighted Average Estimated Useful Life (yrs) | 1 year 6 months |
Business Combinations - Pro For
Business Combinations - Pro Forma Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||
Net revenue | $ 426,601 | $ 421,270 | $ 1,241,506 | $ 1,189,470 |
Net income | $ 28,183 | $ 22,627 | $ 69,656 | $ 52,828 |
Basic net income per share | $ 0.96 | $ 0.76 | $ 2.36 | $ 1.78 |
Diluted net income per share | $ 0.95 | $ 0.76 | $ 2.34 | $ 1.77 |
Income Per Common Share - Addit
Income Per Common Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Dilutive effect of outstanding restricted stock awards after application of the Treasury Stock Method | 219,000 | 92,000 | 188,000 | 98,000 |
Common stock shares excluded from calculation of diluted net income per common share | 500 |
Subsequent events - Additional
Subsequent events - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 26, 2020 | Oct. 13, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Subsequent Event [Line Items] | ||||
Business combination total consideration transferred | $ 45,790 | $ 29,062 | ||
Subsequent Event [Member] | Insulation Contractors [Member] | ||||
Subsequent Event [Line Items] | ||||
Business combination total consideration transferred | $ 18,100 | |||
Subsequent Event [Member] | Norkote Inc [Member] | ||||
Subsequent Event [Line Items] | ||||
Business combination total consideration transferred | $ 9,000 |