Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 02, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CBPX | |
Entity Registrant Name | CONTINENTAL BUILDING PRODUCTS, INC. | |
Entity Central Index Key | 1,592,480 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (shares) | 38,420,573 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 120,630 | $ 117,115 | $ 241,245 | $ 228,600 |
Costs, expenses and other income: | ||||
Cost of goods sold | 89,817 | 83,744 | 179,441 | 163,699 |
Selling and administrative | 9,193 | 10,163 | 18,497 | 19,123 |
Total costs and operating expenses | 99,010 | 93,907 | 197,938 | 182,822 |
Operating income | 21,620 | 23,208 | 43,307 | 45,778 |
Other (expense)/income, net | (135) | 6 | (779) | 160 |
Interest expense, net | (3,062) | (3,648) | (5,978) | (7,346) |
Income before income/(losses) from equity method investment and provision for income tax | 18,423 | 19,566 | 36,550 | 38,592 |
Income/(losses) from equity method investment | 345 | (240) | 175 | (435) |
Income before provision for income taxes | 18,768 | 19,326 | 36,725 | 38,157 |
Provision for income taxes | (6,370) | (6,604) | (12,100) | (12,934) |
Net income | $ 12,398 | $ 12,722 | $ 24,625 | $ 25,223 |
Net income per share: | ||||
Basic (usd per share) | $ 0.32 | $ 0.31 | $ 0.63 | $ 0.61 |
Diluted (usd per share) | $ 0.32 | $ 0.31 | $ 0.62 | $ 0.61 |
Weighted average shares outstanding: | ||||
Basic (shares) | 39,125,571 | 40,670,650 | 39,349,674 | 41,097,472 |
Diluted (shares) | 39,210,219 | 40,717,162 | 39,454,928 | 41,128,466 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 12,398 | $ 12,722 | $ 24,625 | $ 25,223 |
Foreign currency translation adjustment | 440 | 16 | 564 | 1,123 |
Net unrealized (losses)/gains on derivatives, net of tax | (598) | 336 | (578) | 161 |
Other comprehensive income | (158) | 352 | (14) | 1,284 |
Comprehensive income | $ 12,240 | $ 13,074 | $ 24,611 | $ 26,507 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and cash equivalents | $ 55,847 | $ 51,536 |
Receivables, net | 37,411 | 32,473 |
Inventories, net | 27,111 | 25,239 |
Prepaid and other current assets | 5,862 | 7,485 |
Total current assets | 126,231 | 116,733 |
Property, plant and equipment, net | 297,931 | 307,838 |
Customer relationships and other intangibles, net | 75,522 | 81,555 |
Goodwill | 119,945 | 119,945 |
Equity method investment | 8,628 | 8,020 |
Debt issuance costs | 568 | 658 |
Total Assets | 628,825 | 634,749 |
Liabilities: | ||
Accounts payable | 26,262 | 27,411 |
Accrued and other liabilities | 10,328 | 12,321 |
Notes payable, current portion | 1,720 | 1,742 |
Total current liabilities | 38,310 | 41,474 |
Deferred taxes and other long-term liabilities | 19,251 | 19,643 |
Notes payable, non-current portion | 263,776 | 264,620 |
Total Liabilities | 321,337 | 325,737 |
Equity: | ||
Undesignated preferred stock, par value $0.001 per share; 10,000,000 shares authorized, no shares issued and outstanding at June 30, 2017 and December 31, 2016 | 0 | 0 |
Common stock, $0.001 par value per share; 190,000,000 shares authorized; 44,304,664 and 44,191,370 shares issued at June 30, 2017 and December 31, 2016, respectively; 38,655,886 and 39,691,715 shares outstanding at June 30, 2017 and December 31, 2016, respectively | 44 | 44 |
Additional paid-in capital | 324,086 | 322,384 |
Less: Treasury stock | (116,592) | (88,756) |
Accumulated other comprehensive loss | (3,423) | (3,409) |
Accumulated earnings | 103,373 | 78,749 |
Total Equity | 307,488 | 309,012 |
Total Liabilities and Equity | $ 628,825 | $ 634,749 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Undesignated preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Undesignated preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Undesignated preferred stock, shares issued | 0 | 0 |
Undesignated preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 190,000,000 | 190,000,000 |
Common stock, shares issued | 44,304,664 | 44,191,370 |
Common stock, shares outstanding | 38,655,886 | 39,691,715 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 24,625 | $ 25,223 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 23,760 | 23,788 |
Bad debt expense | 22 | 28 |
Amortization of debt issuance costs and debt discount | 586 | 1,207 |
Loss on disposal of property, plant and equipment | 18 | 41 |
(Income)/losses from equity method investment | (175) | 435 |
Loss on debt extinguishment | 686 | 0 |
Stock-based compensation | 1,479 | 1,152 |
Deferred taxes | 92 | 268 |
Change in assets and liabilities: | ||
Receivables | (4,964) | (1,973) |
Inventories | (1,811) | 1,053 |
Prepaid expenses and other current assets | 966 | (534) |
Accounts payable | (564) | (620) |
Accrued and other current liabilities | (2,038) | (152) |
Other long term liabilities | (188) | (413) |
Net cash provided by operating activities | 42,494 | 49,503 |
Cash flows from investing activities: | ||
Capital expenditures | (8,070) | (1,765) |
Software purchased or developed | (133) | (356) |
Capital contributions to equity method investment | (647) | (226) |
Distributions from equity method investment | 214 | 356 |
Net cash used in investing activities | (8,636) | (1,991) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 230 | 20 |
Tax withholdings on share-based compensation | (240) | 0 |
Proceeds from debt refinancing | 273,625 | 0 |
Disbursements for debt refinancing | (273,625) | 0 |
Payments of financing costs | (649) | 0 |
Principal payments for debt | (1,368) | (25,000) |
Payments to repurchase common stock | (27,836) | (22,010) |
Net cash used in financing activities | (29,863) | (46,990) |
Effect of foreign exchange rates on cash and cash equivalents | 316 | 475 |
Net change in cash and cash equivalents | 4,311 | 997 |
Cash, beginning of period | 51,536 | 14,729 |
Cash, end of period | $ 55,847 | $ 15,726 |
Background and Nature of Operat
Background and Nature of Operations | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Nature of Operations | BACKGROUND AND NATURE OF OPERATIONS Description of Business Continental Building Products, Inc. (the "Company") is a Delaware corporation. Prior to the acquisition of the gypsum division of Lafarge North America Inc. ("Lafarge N.A.") described below, the Company had no operating activity. The Company manufactures gypsum wallboard related products for commercial and residential buildings and houses. The Company operates a network of three highly efficient wallboard facilities, all located in the eastern United States, and produces joint compound at one plant in the United States and at another plant in Canada. The Acquisition On June 24, 2013 , Lone Star Fund VIII (U.S.), L.P., (along with its affiliates and associates, but excluding the companies that it owns as a result of its investment activity, “Lone Star”), entered into a definitive agreement with Lafarge N.A. to purchase the assets of its North American gypsum division for an aggregate purchase price of approximately $703 million (the "Acquisition") in cash. The closing of the Acquisition occurred on August 30, 2013 . Secondary Public Offerings On March 18, 2016, following a series of secondary offerings, LSF8 Gypsum Holdings, L.P. ("LSF8") sold its remaining 5,106,803 shares of the Company’s common stock at a price per share of $16.10 . Following the March 18, 2016 transaction and the concurrent repurchase by the Company of 900,000 shares of Company’s common stock from LSF8, to the best of the Company's knowledge, neither LSF8 nor any other affiliate of Lone Star held any shares of Company common stock. (See Note 11, Treasury Stock). |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying consolidated financial statements for the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions have been eliminated. (b) Basis of Presentation for Interim Periods Certain information and footnote disclosures normally included for the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted for the interim periods presented. Management believes that the unaudited interim financial statements include all adjustments (which are normal and recurring in nature) necessary to present fairly the financial position of the Company and the results of operations and cash flows for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. Seasonal changes and other conditions can affect the sales volumes of the Company’s products. Therefore, the financial results for any interim period do not necessarily indicate the expected results for the year. The financial statements should be read in conjunction with Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K for the fiscal year then ended (the "2016 10-K"). The Company has continued to follow the accounting policies set forth in those financial statements. (c) Supplemental Cash Flow Disclosure Table 2.1: Certain Cash and Non-Cash Transactions For the Six Months Ended June 30, 2017 June 30, 2016 (in thousands) Cash paid during the period for: Interest paid on term loan $ 4,973 $ 5,876 Income taxes paid, net 10,259 12,160 Non-cash activity: Amounts in accounts payable for capital expenditures 1,899 547 (d) Recent Accounting Pronouncements Accounting Standards Adopted During the Period In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-11, "Inventory: Simplifying the Measurement of Inventory." This guidance applies to inventory valued at first-in, first-out (FIFO) or average cost and requires inventory to be measured at the lower of cost and net realizable value, rather than at the lower of cost or market. ASU 2015-11 is effective on a prospective basis for annual periods, including interim reporting periods within those periods, beginning after December 15, 2016. The Company values its inventory under the average cost method and thus will be required to adopt the standard. The Company adopted the new standard in the first quarter of 2017. The adoption of this standard did not have a material impact on the Company's Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which introduces targeted amendments intended to simplify the accounting for stock compensation. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether the benefit reduces taxes payable in the current period. That is, off-balance sheet accounting for net operating losses stemming from excess tax benefits would no longer be required and instead such net operating losses would be recognized when they arise. Existing net operating losses that are currently tracked off-balance sheet would be recognized, net of a valuation allowance if required, through an adjustment to opening retained earnings in the period of adoption. Entities will no longer need to maintain and track an "APIC pool." The ASU also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. The amendments were effective for annual periods beginning after December 15, 2016. The Company adopted the new standard in the first quarter of 2017, which resulted in a favorable adjustment to income tax provision of $0.2 million . Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-9, "Revenue from Contracts with Customers (Topic 606)," which provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which defers the effective date of ASU No. 2014-9 for all entities by one year to annual reporting periods beginning after December 15, 2017. The ASU requires retroactive application on either a full or modified basis. The Company will adopt the standard on January 1, 2018. The Company has identified a project implementation team and has identified its revenue streams. The Company is in the process of evaluating the various aspects of the standard and how the standard may impact how the Company recognizes revenue. The Company is also evaluating the potential impact that the new guidance will have on its Consolidated Financial Statements. While the Company has not completed its analysis, the Company does not anticipate that the new guidance will have a material impact on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of evaluating the impact of adoption, which is not expected to have a material impact on the Company's Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments." This ASU is intended to introduce a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact that this guidance may have on its Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, " Classification of Certain Cash Receipts and Cash Payments." This ASU intends to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. The provisions of this standard are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating when it will adopt the ASU and the expected impact to its Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." The new standard requires companies to recognize the income tax effects of intercompany sales or transfers of assets, other than inventory, in the income statement as income tax expense (or benefit) in the period the sales or transfer occurs. The standard requires companies to apply a modified retrospective approach with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. The provisions of this standard are effective for fiscal years beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating when it will adopt the ASU and the expected impact to its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017- 04, "Intangibles - Goodwill and Other." This ASU simplifies the goodwill impairment calculation by eliminating the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of today’s goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., Step 1 of today’s goodwill impairment test). The standard will be applied prospectively and is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company is currently evaluating when it will adopt the ASU and the expected impact to its Consolidated Financial Statements. |
Receivables, Net
Receivables, Net | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Receivables, Net | RECEIVABLES, NET Table 3: Details of Receivables, Net June 30, 2017 December 31, 2016 (in thousands) Trade receivables, gross $ 38,169 $ 33,199 Allowance for cash discounts and doubtful accounts (758 ) (726 ) Receivables, net $ 37,411 $ 32,473 Trade receivables are recorded net of credit memos issued during the normal course of business. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES, NET Table 4: Details of Inventories, Net June 30, 2017 December 31, 2016 (in thousands) Finished products $ 7,474 $ 7,246 Raw materials 12,625 10,910 Supplies and other 7,012 7,083 Inventories, net $ 27,111 $ 25,239 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET Table 5: Details of Property, Plant and Equipment, Net June 30, 2017 December 31, 2016 (in thousands) Land $ 13,186 $ 12,925 Buildings 112,971 112,583 Plant machinery 281,516 275,010 Mobile equipment 10,552 6,721 Construction in progress 10,136 15,016 Property, plant and equipment, at cost 428,361 422,255 Accumulated depreciation (130,430 ) (114,417 ) Property, plant and equipment, net $ 297,931 $ 307,838 Depreciation expense was $9.4 million and $17.5 million for the three and six months ended June 30, 2017 , respectively, compared to $8.3 million and $16.7 million for the three and six months ended June 30, 2016 , respectively. |
Customer Relationships and Othe
Customer Relationships and Other Intangibles, Net | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Customer Relationships and Other Intangibles, Net | CUSTOMER RELATIONSHIPS AND OTHER INTANGIBLES, NET Table 6.1: Details of Customer Relationships and Other Intangibles, Net June 30, 2017 December 31, 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Customer relationships $ 116,488 $ (53,226 ) $ 63,262 $ 116,267 $ (48,243 ) $ 68,024 Purchased and internally developed software 5,453 (4,219 ) 1,234 5,322 (3,289 ) 2,033 Trademarks 14,811 (3,785 ) 11,026 14,783 (3,285 ) 11,498 Total $ 136,752 $ (61,230 ) $ 75,522 $ 136,372 $ (54,817 ) $ 81,555 Amortization expense was $3.1 million and $6.3 million for the three and six months ended June 30, 2017 , respectively, compared to $3.5 million and $7.1 million for the three and six months ended June 30, 2016 , respectively. Customer relationship assets are amortized over a 15 year period using an accelerated method that reflects the expected future cash flows from the acquired customer list intangible asset. Trademarks are amortized on a straight-line basis over the estimated useful life of 15 years. Software development costs are amortized over a 3 year life with the expense recorded in selling and administrative expense. Table 6.2: Future Amortization Expense of Customer Relationships and Other Intangibles As of June 30, 2017 (in thousands) July 1, 2017 through December 31, 2017 $ 5,765 2018 9,468 2019 8,398 2020 7,655 2021 7,042 Thereafter 37,194 Total $ 75,522 |
Investment in Seven Hills
Investment in Seven Hills | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Seven Hills | INVESTMENT IN SEVEN HILLS The Company is a party with an unaffiliated third party to a paperboard liner venture named Seven Hills Paperboard, LLC ("Seven Hills") that provides the Company with a continuous supply of high-quality recycled paperboard liner to meet its ongoing production requirements. The Company has evaluated the characteristics of its investment and determined that Seven Hills would be deemed a variable interest entity, but that it does not have the power to direct the principal activities most impacting the economic performance of Seven Hills, and is thus not the primary beneficiary. As such, the Company accounts for this investment in Seven Hills under the equity method of accounting. Paperboard liner purchased from Seven Hills was $14.8 million and $26.8 million for the three and six months ended June 30, 2017 , respectively, compared to $11.1 million and $22.9 million for the three and six months ended June 30, 2016 , respectively. As of June 30, 2017 , the Company had certain purchase commitments for paper totaling $35.6 million through 2020 . |
Accrued and Other Liabilities
Accrued and Other Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued and Other Liabilities | ACCRUED AND OTHER LIABILITIES Table 8: Details of Accrued and Other Liabilities June 30, 2017 December 31, 2016 (in thousands) Employee-related costs $ 4,830 $ 9,595 Income taxes 1,568 — Other taxes 3,013 2,088 Other 917 638 Accrued and other liabilities $ 10,328 $ 12,321 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Table 9.1: Details of Debt June 30, 2017 December 31, 2016 (in thousands) First Lien Credit Agreement (a) $ 272,257 $ 273,625 Less: Original issue discount (net of amortization) (1,810 ) (1,946 ) Less: Debt issuance costs (4,951 ) (5,317 ) Total debt 265,496 266,362 Less: Current portion of long-term debt (1,720 ) (1,742 ) Long-term debt $ 263,776 $ 264,620 (a) As of June 30, 2017, the Amended and Restated Credit Agreement, as amended, had a maturity date of August 18, 2023 and an interest rate of LIBOR (with a 0.75% floor) plus 2.50% , compared to as of December 31, 2016, at which time the First Lien Credit Agreement had the same maturity date and an interest rate of LIBOR (with a 0.75% floor) plus 2.75% . In connection with the Acquisition, the Company purchased certain assets from Lafarge N.A. with cash. In order to finance a portion of the consideration payable to Lafarge N.A., the Company and its subsidiary Continental Building Products Operating Company, LLC ("OpCo") entered into a first lien credit agreement with Credit Suisse AG, as administrative agent, Credit Suisse Securities (USA) LLC and RBC Capital Markets, as joint lead arrangers and joint bookrunners, and Royal Bank of Canada, as syndication agent (as amended on December 2, 2013, the "First Lien Credit Agreement") and a second lien credit agreement with Credit Suisse AG, as administrative agent, Credit Suisse Securities (USA) LLC and RBC Capital Markets, as joint lead arrangers and joint bookrunners, and Royal Bank of Canada, as syndication agent for term loan borrowings of $320 million and $120 million , respectively, and drew $25 million under a $50 million revolving credit facility under the First Lien Credit Agreement. The available amount under the First Lien Credit Agreement term loan was subsequently increased to $415 million . In conjunction with the initial issuance of this debt, the Company incurred $15.3 million of debt issuance costs which were being amortized using the effective interest rate method or the straight-line method which approximates the effective interest rate method, over the estimated life of the related debt. Interest under the First Lien Credit Agreement was floating. The margin applicable to the borrowing was reduced in the third quarter 2014 to 3.00% after the Company achieved a B2 rating with a stable outlook by Moody’s. On August 18, 2016, the Company, OpCo and Continental Building Products Canada Inc. and the lenders party thereto and Credit Suisse, as Administrative Agent, entered into an Amended and Restated Credit Agreement amending and restating the First Lien Credit Agreement (the "Amended and Restated Credit Agreement"). The Amended and Restated Credit Agreement provides for a $275 million senior secured first lien term loan facility and a $75 million senior secured revolving credit facility (the "Revolver"), which mature on August 18, 2023 and August 18, 2021, respectively. Related to this debt refinancing, the Company incurred $4.7 million of discount and debt issuance costs, of which $2.5 million was recorded in Other expense, net on the Consolidated Statements of Operations, and $2.2 million will be amortized over the term of the Amended and Restated Credit Agreement. Upon completion of this debt refinancing, the Company recognized an additional expense of $3.3 million related to losses resulting from debt extinguishment which is also reported in Other expense, net on the Consolidated Statements of Operations. The interest rate under the Amended and Restated Credit Agreement remained floating but was reduced to a spread over LIBOR of 2.75% and floor of 0.75% . On February 21, 2017 , the Company repriced its term loan under the Amended and Restated Credit Agreement lowering its interest rate by a further 25 basis points to LIBOR plus 2.50% thereby reducing its estimated interest expense by approximately $0.8 million per annum. All other terms and conditions under the Amended and Restated Credit Agreement remained the same. In connection with the debt repricing, the Company incurred $0.7 million of debt issuance costs, which was recorded in Other expense, net on the Consolidated Statements of Operations. The First Lien Credit Agreement was, and the Amended and Restated Credit Agreement is, secured by the underlying property and equipment of the Company. During the six months ended June 30, 2017 , the Company made no voluntary prepayment of principal, compared to $25.0 million of voluntary prepayments in the same period of 2016 . As of June 30, 2017 , the annual effective interest rate on the Amended and Restated Credit Agreement, including original issue discount and amortization of debt issuance costs, was 4.1% . There were no amounts outstanding under the Revolver as of June 30, 2017 or December 31, 2016 . During the six months ended June 30, 2017 the Company did not have any draws under the Revolver, compared to $22.0 million which the Company borrowed and repaid in full during the six months ended June 30, 2016 under the applicable revolving credit facility. Interest under the Revolver is floating, based on LIBOR plus 225 basis points. In addition, the Company pays a facility fee of 50 basis points per annum on the total capacity under the Revolver. Availability under the Revolver as of June 30, 2017 , based on draws and outstanding letters of credit and absence of violations of covenants, was $73.4 million . Table 9.2: Future Minimum Principal Payments Due Under the Amended and Restated Credit Agreements Amount Due (in thousands) July 1, 2017 through December 31, 2017 $ 1,368 2018 2,736 2019 2,736 2020 2,736 2021 2,736 Thereafter 259,945 Total Payments $ 272,257 Under the terms of the Amended and Restated Credit Agreement, the Company is required to comply with certain covenants, including among others, the limitation of indebtedness, limitation on liens, and limitations on certain cash distributions. One single financial covenant governs all of the Company’s debt and only applies if the outstanding borrowings of the Revolver plus outstanding letters of credit are greater than $22.5 million as of the end of the quarter. The financial covenant is a total leverage ratio calculation, in which total debt less outstanding cash is divided by adjusted earnings before interest, depreciation and amortization. As the sum of outstanding borrowings under the Revolver and outstanding letters of credit were less than $22.5 million at June 30, 2017 , the total leverage ratio of no greater than 5.0 under the financial covenant was not applicable at June 30, 2017 . |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company uses derivative instruments to manage selected commodity price and interest rate exposures. The Company does not use derivative instruments for speculative trading purposes, and typically does not hedge beyond one year for commodity derivative instruments. Cash flows from derivative instruments are included in net cash provided by operating activities in the consolidated statements of cash flows. Commodity Derivative Instruments As of June 30, 2017 , the Company had 2,420 thousand millions of British Thermal Units ("mmBTUs") in aggregate notional amount outstanding natural gas swap contracts to manage commodity price exposures. All of these contracts mature by July 31, 2018 . The Company elected to designate these derivative instruments as cash flow hedges in accordance with FASB Accounting Standards Codification ("ASC") 815-20, Derivatives – Hedging . For derivative contracts designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is recorded to accumulated other comprehensive income, and is reclassified to earnings when the underlying forecasted transaction affects earnings. The ineffective portion of changes in the fair value of the derivative is recorded in cost of goods sold. The net unrealized loss that remained in accumulated other comprehensive loss as of June 30, 2017 was $0.1 million which is net of a tax amount of $0.1 million . The net unrealized gain that remained in accumulated other comprehensive loss as of December 31, 2016 was $0.2 million which is net of a tax amount of $0.1 million . No ineffectiveness was recorded on these contracts during the three and six months ended June 30, 2017 and 2016 . The Company reassesses the probability of the underlying forecasted transactions occurring on a quarterly basis. For the three and six months ended June 30, 2017 , approximately $0.3 million of loss, net of $0.1 million of tax and $0.3 million of loss, net of $0.2 million of tax, respectively, were recognized in other comprehensive income for the commodity contracts. For both the three and six months ended June 30, 2017 , the amount of gain reclassified from accumulated other comprehensive loss into income was $0.1 million . As of June 30, 2017 , there was $0.1 million recorded in other current assets and $0.2 million was recorded in other current liabilities. For the three and six months ended June 30, 2016 , approximately $0.3 million of gain, net of $0.2 million of tax expense, and $0.2 million of gain, net of $0.1 million of tax expense, respectively, were recognized in other comprehensive income for the commodity contracts. For the three and six months ended June 30, 2016 , the amount of loss reclassified from accumulated other comprehensive loss into income was $0.2 million and $0.4 million , respectively. As of December 31, 2016 , $0.4 million was recorded in other current assets. Interest Rate Derivative Instrument In September 2016, the Company entered into interest rate swap agreements for a combined notional amount of $100.0 million with a term of four years , which hedged the floating LIBOR on a portion of the term loan under the Amended and Restated Credit Agreement to an average fixed rate of 1.323% and LIBOR floor of 0.75% . The Company elected to designate these interest rate swaps as cash flow hedges for accounting purposes. The net unrealized gain that remained in accumulated other comprehensive loss as of June 30, 2017 was $1.0 million which is net of a tax amount of $0.5 million . The net unrealized gain that remained in accumulated other comprehensive loss as of December 31, 2016 was $1.2 million which is net of a tax amount of $0.6 million . For the three and six months ended June 30, 2017 , the amount of loss reclassified from accumulated other comprehensive loss into income was $44,000 and $0.1 million , respectively. For the three and six months ended June 30, 2017 , approximately $0.3 million of loss, net of tax expense of $0.2 million and $0.2 million of loss, net of tax expense of $0.1 million , respectively, were recognized in other comprehensive income for the interest rate swaps. As of June 30, 2017 , there was $1.5 million recorded in other current assets. No ineffectiveness was recorded on these contracts during the three and six months ended June 30, 2017 . Counterparty Risk The Company is exposed to credit losses in the event of nonperformance by the counterparties to the Company’s derivative instruments. As of June 30, 2017 , the Company’s derivatives were in a $1.3 million net asset position. All of the Company’s counterparties have investment grade credit ratings; accordingly, the Company anticipates that the counterparties will be able to fully satisfy their obligations under the contracts. The Company’s agreements outline the conditions upon which it or the counterparties are required to post collateral. As of June 30, 2017 , the Company had no collateral posted with its counterparties related to the derivatives. |
Treasury Stock
Treasury Stock | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Treasury Stock | TREASURY STOCK On November 4, 2015 , the Company announced that the Board of Directors approved a new stock repurchase program authorizing the Company to repurchase up to $50 million of its common stock, at such times and prices as determined by management as market conditions warrant, through December 31, 2016 . Pursuant to this authorization, on March 18, 2016 , the Company repurchased 900,000 shares of its common stock from LSF8 in a private transaction at a price per share of $16.10 , or an aggregate of approximately $14.5 million , pursuant to a stock purchase agreement dated March 14, 2016 . The Company has also repurchased shares of its common stock in the open market under this authorization. On August 3, 2016 , the Company announced the Board of Directors had approved an expansion of its stock repurchase program by $50 million , increasing the aggregate authorization from up to $50 million to up to $100 million . The program was also extended from the end of 2016 to the end of 2017 . On February 21, 2017 , the Board of Directors further expanded the Company's share repurchase program up to a total of $200 million of its common stock and extended the expiration date to December 31, 2018 . All repurchased shares are held in treasury, reducing the number of shares of common stock outstanding and used in the Company’s earnings per share calculation. Table 11: Treasury Stock Activity June 30, 2017 June 30, 2016 Shares Amount (a) Average Share Price (a) Shares Amount (a) Average Share Price (a) (in thousands, except share data) For the Three Months Ended: Beginning Balance 4,716,778 $ 93,993 $ 19.93 3,446,208 $ 65,505 $ 19.01 Repurchases on open market 932,000 22,599 24.25 231,980 4,984 21.48 Ending Balance 5,648,778 $ 116,592 $ 20.64 3,678,188 $ 70,489 $ 19.16 For the Six Months Ended: Beginning Balance 4,499,655 $ 88,756 $ 19.73 2,395,049 $ 48,479 $ 20.24 Repurchases on open market 1,149,123 27,836 24.22 383,139 7,520 19.63 Repurchase from LSF8 in private transaction — — — 900,000 14,490 16.10 Ending Balance 5,648,778 $ 116,592 $ 20.64 3,678,188 $ 70,489 $ 19.16 (a) Includes commissions paid for repurchases on open market. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Stock options, Restricted Stock Awards, Restricted Stock Units and Performance Restricted Stock Units On May 1, 2017 , the Company granted one employee 1,701 Restricted Share Units ("RSUs") that vest ratably over four years from the grant date. The market price on the date of grant was $24.30 . On May 1, 2017 , the Company also granted one employee 1,702 Performance Based RSUs ("PRSUs"). The PRSUs vest on December 31, 2019 , with the exact number of PRSUs vesting subject to the achievement of certain performance conditions through December 31, 2018 . The number of PRSUs earned will vary from 0% to 200% of the number of PRSUs awarded, depending on the Company’s performance relative to a cumulative two year EBITDA target for fiscal years 2017 and 2018. The market price on the date of grant was $24.30 . For the three and six months ended June 30, 2017 , the Company recognized share-based compensation expenses of $0.8 million and $1.5 million , respectively, compared to $0.8 million and $1.2 million for the three and six months ended June 30, 2016 , respectively. The expenses related to share-based compensation awards were recorded in selling and administrative expenses. As of June 30, 2017 , there was $5.8 million of total unrecognized compensation cost related to non-vested stock options, restricted stock awards, RSUs and PRSUs. This cost is expected to be recognized over a weighted-average period of 2.5 years . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS Table 13: Changes in Accumulated Other Comprehensive Loss by Category Foreign currency translation adjustment Net unrealized gain on derivatives, net of tax Total (in thousands) Balance as of December 31, 2016 $ (4,778 ) $ 1,369 $ (3,409 ) Other comprehensive income/(loss) before reclassifications 564 (793 ) (229 ) Amounts reclassified from AOCI — 215 215 Net current period other comprehensive income/(loss) 564 (578 ) (14 ) Balance as of June 30, 2017 $ (4,214 ) $ 791 $ (3,423 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s annual estimated effective tax rate is approximately 33.43% . The Company is subject to audit examinations at federal, state and local levels by tax authorities in those jurisdictions. In addition, the Canadian operations are subject to audit examinations at federal and provincial levels by tax authorities in those jurisdictions. The tax matters challenged by the tax authorities are typically complex; therefore, the ultimate outcome of any challenges would be subject to uncertainty. The Company has not identified any issues that did not meet the recognition threshold or would be impacted by the measurement provisions of the uncertain tax position guidance. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of potentially dilutive securities. Potentially dilutive common stock has no effect on income available to common stockholders. For the three and six months ended June 30, 2017 , approximately, 1,000 and 43,000 share-based compensation awards, respectively, were excluded from the weighted average shares outstanding because their impact would be anti-dilutive in the computation of dilutive earnings per share. Awards excluded for the same periods in 2016 were 165 and 77,000 , respectively. Table 15: Basic and Dilutive Earnings Per Share For the Three Months Ended For the Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 (dollars in thousands, except for per share amounts) Net income $ 12,398 $ 12,722 $ 24,625 $ 25,223 Weighted average number of shares outstanding - basic 39,125,571 40,670,650 39,349,674 41,097,472 Effect of dilutive securities: Restricted stock awards 5,880 7,449 7,971 7,236 Restricted stock units 39,988 25,095 57,169 15,789 Performance restricted stock units 17,837 — 17,180 — Stock options 20,943 13,968 22,934 7,969 Total effect of dilutive securities 84,648 46,512 105,254 30,994 Weighted average number of shares outstanding - diluted 39,210,219 40,717,162 39,454,928 41,128,466 Basic earnings per share $ 0.32 $ 0.31 $ 0.63 $ 0.61 Diluted earnings per share $ 0.32 $ 0.31 $ 0.62 $ 0.61 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments The Company leases certain buildings and equipment. The Company’s facility and equipment leases may provide for escalations of rent or rent abatements and payment of pro rata portions of building operating expenses. Minimum lease payments are recognized on a straight-line basis over the minimum lease term. The total expenses under operating leases for the three and six months ended June 30, 2017 was $0.9 million and $1.7 million , respectively, compared to $1.1 million and $2.1 million for the same periods in 2016 , respectively. The Company also has non-capital purchase commitments that primarily relate to gas, gypsum, paper and other raw materials. The total amounts purchased under such commitments were $21.7 million and $42.8 million for the three and six months ended June 30, 2017 , respectively, compared to $15.5 million and $33.1 million for the three and six months ended June 30, 2016 , respectively. Table 16: Future Minimum Lease Payments Due Under Noncancellable Operating Leases and Purchase Commitments Future Minimum Lease Payments Purchase Commitments (in thousands) July 1, 2017 through December 31, 2017 $ 556 $ 22,857 2018 616 26,979 2019 1,494 26,718 2020 — 17,442 2021 — 5,237 Thereafter — 64,256 Total $ 2,666 $ 163,489 Contingent obligations Under certain circumstances, the Company provides letters of credit related to its natural gas and other supply purchases. As of June 30, 2017 and December 31, 2016 , the Company had outstanding letters of credit of approximately $1.6 million and $2.1 million , respectively. Legal Matters In the ordinary course of business, the Company executes contracts involving indemnifications standard in the industry. These indemnifications might include claims relating to any of the following: environmental and tax matters; intellectual property rights; governmental regulations and employment-related matters; customer, supplier, and other commercial contractual relationships; and financial matters. While the maximum amount to which the Company may be exposed under such agreements cannot be estimated, it is the opinion of management that these guarantees and indemnifications are not expected to have a material adverse effect on the Company’s financial condition, results of operations or liquidity. In the ordinary course of business, the Company is involved in certain legal actions and claims, including proceedings under laws and regulations relating to environmental and other matters. Because such matters are subject to many uncertainties and the outcomes are not predictable with assurance, the total liability for these legal actions and claims cannot be determined with certainty. When the Company determines that it is probable that a liability for environmental matters, legal actions or other contingencies has been incurred and the amount of the loss is reasonably estimable, an estimate of the costs to be incurred is recorded as a liability in the financial statements. As of June 30, 2017 and December 31, 2016 , such liabilities were not expected to have a material adverse effect on the Company’s financial condition, results of operations or liquidity. While management believes its accruals for such liabilities are adequate, the Company may incur costs in excess of the amounts provided. Although the ultimate amount of liability that may result from these matters or actions is not ascertainable, any amounts exceeding the recorded accruals are not expected to have a material adverse effect on the Company’s financial condition, results of operations or liquidity. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING Segment information is presented in accordance with ASC 280, Segment Reporting, which establishes standards for reporting information about operating segments. It also establishes standards for related disclosures about products and geographic areas. The Company’s primary reportable segment is wallboard, which represented approximately 97.2% and 96.9% of the Company's revenues for the three and six months ended June 30, 2017 , respectively, compared to 97.0% and 96.8% of the Company's revenues for the three and six months ended June 30, 2016 , respectively. This segment produces wallboard for the commercial and residential construction sectors. The Company also manufactures finishing products, which complement the Company’s full range of wallboard products. Revenues from the major products sold to external customers include gypsum wallboard and finishing products. The Company’s two geographic areas consist of the United States and Canada for which it reports net sales, fixed assets and total assets. The Company evaluates operating performance based on profit or loss from operations before certain adjustments as shown below. Revenues are attributed to geographic areas based on the location of the assets producing the revenues. The Company did not provide asset information by segment as its Chief Operating Decision Maker does not use such information for purposes of allocating resources and assessing segment performance. Table 17.1: Segment Reporting For the Three Months Ended For the Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 (in thousands) Net Sales: Wallboard $ 117,194 $ 113,593 $ 233,670 $ 221,192 Other 3,436 3,522 7,575 7,408 Total net sales $ 120,630 $ 117,115 $ 241,245 $ 228,600 Operating income: Wallboard $ 21,819 $ 23,216 $ 43,411 $ 45,620 Other (199 ) (8 ) (104 ) 158 Total operating income $ 21,620 $ 23,208 $ 43,307 $ 45,778 Adjustments: Interest expense $ (3,062 ) $ (3,648 ) $ (5,978 ) $ (7,346 ) Income/(losses) from equity investment 345 (240 ) 175 (435 ) Other (expense)/income, net (135 ) 6 (779 ) 160 Income before provision for income taxes $ 18,768 $ 19,326 $ 36,725 $ 38,157 Depreciation and Amortization: Wallboard $ 12,177 $ 11,566 $ 23,199 $ 23,240 Other 297 276 561 548 Total depreciation and amortization $ 12,474 $ 11,842 $ 23,760 $ 23,788 Table 17.2: Net Sales By Geographic Region For the Three Months Ended For the Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 (in thousands) United States $ 113,665 $ 107,694 $ 224,051 $ 211,336 Canada 6,965 9,421 17,194 17,264 Net sales $ 120,630 $ 117,115 $ 241,245 $ 228,600 Table 17.3: Assets By Geographic Region Fixed Assets Total Assets June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 (in thousands) United States $ 294,561 $ 304,807 $ 610,355 $ 617,050 Canada 3,370 3,031 18,470 17,699 Total $ 297,931 $ 307,838 $ 628,825 $ 634,749 |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | FAIR VALUE DISCLOSURES U.S. GAAP provides a framework for measuring fair value, establishes a fair value hierarchy of the valuation techniques used to measure the fair value and requires certain disclosures relating to fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in a market with sufficient activity. The three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value, is as follows: • Level 1—Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities that a Company has the ability to access; • Level 2—Inputs, other than the quoted market prices included in Level 1, which are observable for the asset or liability, either directly or indirectly; and • Level 3—Unobservable inputs for the asset or liability which is typically based on an entity’s own assumptions when there is little, if any, related market data available. The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by the Company. The fair values of receivables, accounts payable, accrued costs and other current liabilities approximate the carrying values as a result of the short-term nature of these instruments. The Company estimates the fair value of its debt by discounting the future cash flows of each instrument using estimated market rates of debt instruments with similar maturities and credit profiles. These inputs are classified as Level 3 within the fair value hierarchy. As of June 30, 2017 and December 31, 2016 , the carrying value reported in the consolidated balance sheet for the Company’s notes payable approximated its fair value. The only assets or liabilities the Company had at June 30, 2017 that are recorded at fair value on a recurring basis are the natural gas hedges and interest rate swaps. The natural gas hedges had a negative fair value of $0.1 million as of June 30, 2017 , net of tax amount of $0.1 million , compared to a positive fair value of 0.2 million , net of tax amount of $0.1 million as of December 31, 2016 . Interest rate swaps had a positive fair value of $1.0 million as of June 30, 2017 , net of tax amount of $0.5 million , compared to a positive fair value of $1.2 million as of December 31, 2016 , net of tax amount of $0.6 million . Both the natural gas hedges and interest rate swaps are classified within Level 2 of the fair value hierarchy as they are valued using third party pricing models which contain inputs that are derived from observable market data. Generally, the Company obtains its Level 2 pricing inputs from its counterparties. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Assets and liabilities that are measured at fair value on a non-recurring basis include intangible assets and goodwill. These items are recognized at fair value when they are considered to be impaired. There were no fair value adjustments for assets and liabilities measured on a non-recurring basis. The Company discloses fair value information about financial instruments for which it is practicable to estimate that value. |
Significant Accounting Polici25
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements for the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions have been eliminated. |
Recent Accounting Pronouncements | Accounting Standards Adopted During the Period In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-11, "Inventory: Simplifying the Measurement of Inventory." This guidance applies to inventory valued at first-in, first-out (FIFO) or average cost and requires inventory to be measured at the lower of cost and net realizable value, rather than at the lower of cost or market. ASU 2015-11 is effective on a prospective basis for annual periods, including interim reporting periods within those periods, beginning after December 15, 2016. The Company values its inventory under the average cost method and thus will be required to adopt the standard. The Company adopted the new standard in the first quarter of 2017. The adoption of this standard did not have a material impact on the Company's Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which introduces targeted amendments intended to simplify the accounting for stock compensation. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether the benefit reduces taxes payable in the current period. That is, off-balance sheet accounting for net operating losses stemming from excess tax benefits would no longer be required and instead such net operating losses would be recognized when they arise. Existing net operating losses that are currently tracked off-balance sheet would be recognized, net of a valuation allowance if required, through an adjustment to opening retained earnings in the period of adoption. Entities will no longer need to maintain and track an "APIC pool." The ASU also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. The amendments were effective for annual periods beginning after December 15, 2016. The Company adopted the new standard in the first quarter of 2017, which resulted in a favorable adjustment to income tax provision of $0.2 million . Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-9, "Revenue from Contracts with Customers (Topic 606)," which provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which defers the effective date of ASU No. 2014-9 for all entities by one year to annual reporting periods beginning after December 15, 2017. The ASU requires retroactive application on either a full or modified basis. The Company will adopt the standard on January 1, 2018. The Company has identified a project implementation team and has identified its revenue streams. The Company is in the process of evaluating the various aspects of the standard and how the standard may impact how the Company recognizes revenue. The Company is also evaluating the potential impact that the new guidance will have on its Consolidated Financial Statements. While the Company has not completed its analysis, the Company does not anticipate that the new guidance will have a material impact on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of evaluating the impact of adoption, which is not expected to have a material impact on the Company's Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments." This ASU is intended to introduce a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact that this guidance may have on its Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, " Classification of Certain Cash Receipts and Cash Payments." This ASU intends to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. The provisions of this standard are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating when it will adopt the ASU and the expected impact to its Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." The new standard requires companies to recognize the income tax effects of intercompany sales or transfers of assets, other than inventory, in the income statement as income tax expense (or benefit) in the period the sales or transfer occurs. The standard requires companies to apply a modified retrospective approach with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. The provisions of this standard are effective for fiscal years beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating when it will adopt the ASU and the expected impact to its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017- 04, "Intangibles - Goodwill and Other." This ASU simplifies the goodwill impairment calculation by eliminating the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of today’s goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., Step 1 of today’s goodwill impairment test). The standard will be applied prospectively and is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company is currently evaluating when it will adopt the ASU and the expected impact to its Consolidated Financial Statements. |
Significant Accounting Polici26
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Disclosure Table 2.1: Certain Cash and Non-Cash Transactions For the Six Months Ended June 30, 2017 June 30, 2016 (in thousands) Cash paid during the period for: Interest paid on term loan $ 4,973 $ 5,876 Income taxes paid, net 10,259 12,160 Non-cash activity: Amounts in accounts payable for capital expenditures 1,899 547 |
Receivables, Net (Tables)
Receivables, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Detail of Receivables, Net | Table 3: Details of Receivables, Net June 30, 2017 December 31, 2016 (in thousands) Trade receivables, gross $ 38,169 $ 33,199 Allowance for cash discounts and doubtful accounts (758 ) (726 ) Receivables, net $ 37,411 $ 32,473 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Composition of Inventories | Table 4: Details of Inventories, Net June 30, 2017 December 31, 2016 (in thousands) Finished products $ 7,474 $ 7,246 Raw materials 12,625 10,910 Supplies and other 7,012 7,083 Inventories, net $ 27,111 $ 25,239 |
Property, Plant and Equipment29
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Details | Table 5: Details of Property, Plant and Equipment, Net June 30, 2017 December 31, 2016 (in thousands) Land $ 13,186 $ 12,925 Buildings 112,971 112,583 Plant machinery 281,516 275,010 Mobile equipment 10,552 6,721 Construction in progress 10,136 15,016 Property, plant and equipment, at cost 428,361 422,255 Accumulated depreciation (130,430 ) (114,417 ) Property, plant and equipment, net $ 297,931 $ 307,838 |
Customer Relationships and Ot30
Customer Relationships and Other Intangibles, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Details of Customer Relationships and Other Intangibles, Net | Table 6.1: Details of Customer Relationships and Other Intangibles, Net June 30, 2017 December 31, 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Customer relationships $ 116,488 $ (53,226 ) $ 63,262 $ 116,267 $ (48,243 ) $ 68,024 Purchased and internally developed software 5,453 (4,219 ) 1,234 5,322 (3,289 ) 2,033 Trademarks 14,811 (3,785 ) 11,026 14,783 (3,285 ) 11,498 Total $ 136,752 $ (61,230 ) $ 75,522 $ 136,372 $ (54,817 ) $ 81,555 |
Future Amortization Expense of Customer Relationships and Other Intangibles | Table 6.2: Future Amortization Expense of Customer Relationships and Other Intangibles As of June 30, 2017 (in thousands) July 1, 2017 through December 31, 2017 $ 5,765 2018 9,468 2019 8,398 2020 7,655 2021 7,042 Thereafter 37,194 Total $ 75,522 |
Accrued and Other Liabilities (
Accrued and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Details of Accrued and Other Liabilities | Table 8: Details of Accrued and Other Liabilities June 30, 2017 December 31, 2016 (in thousands) Employee-related costs $ 4,830 $ 9,595 Income taxes 1,568 — Other taxes 3,013 2,088 Other 917 638 Accrued and other liabilities $ 10,328 $ 12,321 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Details of Debt | Table 9.1: Details of Debt June 30, 2017 December 31, 2016 (in thousands) First Lien Credit Agreement (a) $ 272,257 $ 273,625 Less: Original issue discount (net of amortization) (1,810 ) (1,946 ) Less: Debt issuance costs (4,951 ) (5,317 ) Total debt 265,496 266,362 Less: Current portion of long-term debt (1,720 ) (1,742 ) Long-term debt $ 263,776 $ 264,620 |
Future Minimum Principal Payments Due Under the Credit Agreements | Table 9.2: Future Minimum Principal Payments Due Under the Amended and Restated Credit Agreements Amount Due (in thousands) July 1, 2017 through December 31, 2017 $ 1,368 2018 2,736 2019 2,736 2020 2,736 2021 2,736 Thereafter 259,945 Total Payments $ 272,257 |
Treasury Stock (Tables)
Treasury Stock (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Treasury Stock Activity | All repurchased shares are held in treasury, reducing the number of shares of common stock outstanding and used in the Company’s earnings per share calculation. Table 11: Treasury Stock Activity June 30, 2017 June 30, 2016 Shares Amount (a) Average Share Price (a) Shares Amount (a) Average Share Price (a) (in thousands, except share data) For the Three Months Ended: Beginning Balance 4,716,778 $ 93,993 $ 19.93 3,446,208 $ 65,505 $ 19.01 Repurchases on open market 932,000 22,599 24.25 231,980 4,984 21.48 Ending Balance 5,648,778 $ 116,592 $ 20.64 3,678,188 $ 70,489 $ 19.16 For the Six Months Ended: Beginning Balance 4,499,655 $ 88,756 $ 19.73 2,395,049 $ 48,479 $ 20.24 Repurchases on open market 1,149,123 27,836 24.22 383,139 7,520 19.63 Repurchase from LSF8 in private transaction — — — 900,000 14,490 16.10 Ending Balance 5,648,778 $ 116,592 $ 20.64 3,678,188 $ 70,489 $ 19.16 (a) Includes commissions paid for repurchases on open market. |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss)/Income by Category | Table 13: Changes in Accumulated Other Comprehensive Loss by Category Foreign currency translation adjustment Net unrealized gain on derivatives, net of tax Total (in thousands) Balance as of December 31, 2016 $ (4,778 ) $ 1,369 $ (3,409 ) Other comprehensive income/(loss) before reclassifications 564 (793 ) (229 ) Amounts reclassified from AOCI — 215 215 Net current period other comprehensive income/(loss) 564 (578 ) (14 ) Balance as of June 30, 2017 $ (4,214 ) $ 791 $ (3,423 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Dilutive Earnings Per Share | The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of potentially dilutive securities. Potentially dilutive common stock has no effect on income available to common stockholders. For the three and six months ended June 30, 2017 , approximately, 1,000 and 43,000 share-based compensation awards, respectively, were excluded from the weighted average shares outstanding because their impact would be anti-dilutive in the computation of dilutive earnings per share. Awards excluded for the same periods in 2016 were 165 and 77,000 , respectively. Table 15: Basic and Dilutive Earnings Per Share For the Three Months Ended For the Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 (dollars in thousands, except for per share amounts) Net income $ 12,398 $ 12,722 $ 24,625 $ 25,223 Weighted average number of shares outstanding - basic 39,125,571 40,670,650 39,349,674 41,097,472 Effect of dilutive securities: Restricted stock awards 5,880 7,449 7,971 7,236 Restricted stock units 39,988 25,095 57,169 15,789 Performance restricted stock units 17,837 — 17,180 — Stock options 20,943 13,968 22,934 7,969 Total effect of dilutive securities 84,648 46,512 105,254 30,994 Weighted average number of shares outstanding - diluted 39,210,219 40,717,162 39,454,928 41,128,466 Basic earnings per share $ 0.32 $ 0.31 $ 0.63 $ 0.61 Diluted earnings per share $ 0.32 $ 0.31 $ 0.62 $ 0.61 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases and Purchase Commitments by Year | Table 16: Future Minimum Lease Payments Due Under Noncancellable Operating Leases and Purchase Commitments Future Minimum Lease Payments Purchase Commitments (in thousands) July 1, 2017 through December 31, 2017 $ 556 $ 22,857 2018 616 26,979 2019 1,494 26,718 2020 — 17,442 2021 — 5,237 Thereafter — 64,256 Total $ 2,666 $ 163,489 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Table 17.1: Segment Reporting For the Three Months Ended For the Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 (in thousands) Net Sales: Wallboard $ 117,194 $ 113,593 $ 233,670 $ 221,192 Other 3,436 3,522 7,575 7,408 Total net sales $ 120,630 $ 117,115 $ 241,245 $ 228,600 Operating income: Wallboard $ 21,819 $ 23,216 $ 43,411 $ 45,620 Other (199 ) (8 ) (104 ) 158 Total operating income $ 21,620 $ 23,208 $ 43,307 $ 45,778 Adjustments: Interest expense $ (3,062 ) $ (3,648 ) $ (5,978 ) $ (7,346 ) Income/(losses) from equity investment 345 (240 ) 175 (435 ) Other (expense)/income, net (135 ) 6 (779 ) 160 Income before provision for income taxes $ 18,768 $ 19,326 $ 36,725 $ 38,157 Depreciation and Amortization: Wallboard $ 12,177 $ 11,566 $ 23,199 $ 23,240 Other 297 276 561 548 Total depreciation and amortization $ 12,474 $ 11,842 $ 23,760 $ 23,788 |
Net Sales By Geographic Region | Table 17.2: Net Sales By Geographic Region For the Three Months Ended For the Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 (in thousands) United States $ 113,665 $ 107,694 $ 224,051 $ 211,336 Canada 6,965 9,421 17,194 17,264 Net sales $ 120,630 $ 117,115 $ 241,245 $ 228,600 |
Assets By Geographic Region | Table 17.3: Assets By Geographic Region Fixed Assets Total Assets June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 (in thousands) United States $ 294,561 $ 304,807 $ 610,355 $ 617,050 Canada 3,370 3,031 18,470 17,699 Total $ 297,931 $ 307,838 $ 628,825 $ 634,749 |
Background and Nature of Oper38
Background and Nature of Operations - Description of Business and Acquisition (Detail) $ in Millions | Aug. 30, 2013USD ($) | Jun. 30, 2017facility |
Lone Star Fund VIII (U.S.), L.P. | Lafarge N.A. | ||
Business Acquisition [Line Items] | ||
Total purchase price | $ | $ 703 | |
Wallboard | ||
Business Acquisition [Line Items] | ||
Number of operating facilities (facility) | 3 | |
Joint Compound | ||
Business Acquisition [Line Items] | ||
Number of operating facilities (facility) | 1 |
Background and Nature of Oper39
Background and Nature of Operations - Public Offerings (Detail) - $ / shares | Mar. 18, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Repurchase from LSF8 in private transaction | |||
Subsidiary, Sale of Stock [Line Items] | |||
Shares repurchased (shares) | 900,000 | 0 | 900,000 |
Secondary Public Offerings | LSF8 Gypsum Holdings, L.P. | |||
Subsidiary, Sale of Stock [Line Items] | |||
Shares issued at public offering (shares) | 5,106,803 | ||
Offering price per share (usd per share) | $ 16.10 | ||
Secondary Public Offerings | LSF8 Gypsum Holdings, L.P. | Repurchase from LSF8 in private transaction | |||
Subsidiary, Sale of Stock [Line Items] | |||
Shares repurchased (shares) | 900,000 |
- Certain Cash and Non-Cash Tra
- Certain Cash and Non-Cash Transactions (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting Policies [Abstract] | ||
Interest paid | $ 4,973 | $ 5,876 |
Income taxes paid, net | 10,259 | 12,160 |
Accounts payable for capital expenditures | $ 1,899 | $ 547 |
Significant Accounting Polici41
Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Favorable adjustment to income tax provision | $ 0.2 |
Receivables, Net - Detail of Re
Receivables, Net - Detail of Receivables, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Trade receivables, gross | $ 38,169 | $ 33,199 |
Allowance for cash discounts and doubtful accounts | (758) | (726) |
Receivables, net | $ 37,411 | $ 32,473 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 7,474 | $ 7,246 |
Raw materials | 12,625 | 10,910 |
Supplies and other | 7,012 | 7,083 |
Inventories, net | $ 27,111 | $ 25,239 |
Property, Plant and Equipment44
Property, Plant and Equipment, Net - Property, Plant and Equipment Details (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 428,361 | $ 422,255 |
Accumulated depreciation | (130,430) | (114,417) |
Property, plant and equipment, net | 297,931 | 307,838 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 13,186 | 12,925 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 112,971 | 112,583 |
Plant machinery | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 281,516 | 275,010 |
Mobile equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 10,552 | 6,721 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 10,136 | $ 15,016 |
Property, Plant and Equipment45
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 9.4 | $ 8.3 | $ 17.5 | $ 16.7 |
Investment in Seven Hills - Add
Investment in Seven Hills - Additional Information (Detail) - Seven Hills - Variable Interest Entity, Not Primary Beneficiary - Equity Method Investee - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Cost of paperboard | $ 14.8 | $ 11.1 | $ 26.8 | $ 22.9 |
Purchase commitments | $ 35.6 |
Customer Relationships and Ot47
Customer Relationships and Other Intangibles, Net - Details of Customer Relationships and Other Intangibles, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 136,752 | $ 136,372 |
Accumulated Amortization | (61,230) | (54,817) |
Net | 75,522 | 81,555 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 116,488 | 116,267 |
Accumulated Amortization | (53,226) | (48,243) |
Net | 63,262 | 68,024 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 5,453 | 5,322 |
Accumulated Amortization | (4,219) | (3,289) |
Net | 1,234 | 2,033 |
Purchased and internally developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 14,811 | 14,783 |
Accumulated Amortization | (3,785) | (3,285) |
Net | $ 11,026 | $ 11,498 |
Customer Relationships and Ot48
Customer Relationships and Other Intangibles, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 3.1 | $ 3.5 | $ 6.3 | $ 7.1 |
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 15 years | |||
Purchased and internally developed software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 15 years | |||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 3 years |
Customer Relationships and Ot49
Customer Relationships and Other Intangibles, Net - Future Amortization Expense of Customer Relationships and Other Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
July 1, 2017 through December 31, 2017 | $ 5,765 | |
2,018 | 9,468 | |
2,019 | 8,398 | |
2,020 | 7,655 | |
2,021 | 7,042 | |
Thereafter | 37,194 | |
Net | $ 75,522 | $ 81,555 |
Accrued and Other Liabilities50
Accrued and Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Employee-related costs | $ 4,830 | $ 9,595 |
Income taxes | 1,568 | 0 |
Other taxes | 3,013 | 2,088 |
Other | 917 | 638 |
Accrued and other liabilities | $ 10,328 | $ 12,321 |
Debt - Details of Debt (Detail)
Debt - Details of Debt (Detail) - USD ($) $ in Thousands | Aug. 18, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
First Lien Credit Agreement (a) | $ 272,257 | |||
Less: Original issue discount (net of amortization) | (1,810) | $ (1,946) | ||
Less: Debt issuance costs | (4,951) | (5,317) | ||
Total debt | 265,496 | 266,362 | ||
Less: Current portion of long-term debt | (1,720) | (1,742) | ||
Long-term debt | 263,776 | 264,620 | ||
Term Loan Facility | First Lien Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
First Lien Credit Agreement (a) | $ 272,257 | $ 273,625 | ||
Term Loan Facility | First Lien Credit Agreement | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Floor rate | 0.75% | 0.75% | 0.75% | |
Debt, variable interest rate (as a percent) | 2.75% | 2.50% | 2.75% |
Debt - Additional Information (
Debt - Additional Information (Detail) | Feb. 21, 2017USD ($) | Aug. 18, 2016USD ($) | Aug. 30, 2013USD ($) | May 31, 2014 | Sep. 30, 2014 | Jun. 30, 2017USD ($)covenant | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 02, 2013USD ($) |
Debt Instrument [Line Items] | |||||||||
Loss on debt extinguishment | $ 686,000 | $ 0 | |||||||
Pre payment of principal for the first lien credit agreement | $ 1,368,000 | 25,000,000 | |||||||
First Lien Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Loss on debt extinguishment | $ 3,300,000 | ||||||||
Number of covenants | covenant | 1 | ||||||||
Debt covenant trigger, line of credit facility amount less letters of credit threshold | $ 22,500,000 | ||||||||
First Lien Credit Agreement | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Leverage ratio (no greater than) | 5 | ||||||||
Amended and Restated Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance cost | $ 700,000 | ||||||||
Decrease in basis spread, percentage | 0.25% | ||||||||
Estimated annual interest expense reduction | $ 800,000 | ||||||||
Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, variable interest rate (as a percent) | 2.50% | ||||||||
Term Loan Facility | First Lien Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt principal amount | 275,000,000 | $ 320,000,000 | $ 415,000,000 | ||||||
Debt issuance cost | 15,300,000 | ||||||||
Discount and debt issuance costs | 4,700,000 | $ 2,200,000 | |||||||
Discount and debt issuance costs recorded in other expense, net | $ 2,500,000 | ||||||||
Pre payment of principal for the first lien credit agreement | $ 25,000,000 | ||||||||
Effective interest rate | 4.10% | ||||||||
Term Loan Facility | First Lien Credit Agreement | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, variable interest rate (as a percent) | 2.75% | 2.50% | 2.75% | ||||||
Floor rate | 0.75% | 0.75% | 0.75% | ||||||
Decrease in basis spread, percentage | 0.50% | ||||||||
Term Loan Facility | First Lien Credit Agreement | Moody's, B2 Rating | |||||||||
Debt Instrument [Line Items] | |||||||||
Effective interest rate | 3.00% | ||||||||
Term Loan Facility | First Lien Credit Agreement | Moody's, B2 Rating | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Decrease in basis spread, percentage | 0.25% | ||||||||
Term Loan Facility | Second Lien Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt principal amount | 120,000,000 | ||||||||
Line of Credit | First Lien Credit Agreement | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from line of credit | 25,000,000 | $ 22,000,000 | $ 10,000,000 | ||||||
Line of credit facility borrowing capacity | $ 75,000,000 | $ 50,000,000 | |||||||
Outstanding amount | $ 0 | $ 0 | |||||||
Repayment amount | $ 22,000,000 | ||||||||
Facility fee, basis points | 0.50% | ||||||||
Remaining outstanding | $ 73,400,000 | ||||||||
Line of Credit | First Lien Credit Agreement | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, variable interest rate (as a percent) | 2.25% |
Debt - Future Minimum Principal
Debt - Future Minimum Principal Payments Due Under the Credit Agreements (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
July 1, 2017 through December 31, 2017 | $ 1,368 |
2,019 | 2,736 |
2,018 | 2,736 |
2,020 | 2,736 |
2,021 | 2,736 |
Thereafter | 259,945 |
Total Payments | $ 272,257 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2016MMBTU | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)MMBTU | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Derivative [Line Items] | ||||||
Net unrealized gain (loss) that remained in accumulated other comprehensive loss | $ 307,488,000 | $ 307,488,000 | $ 309,012,000 | |||
Derivatives, net liability position | 1,300,000 | 1,300,000 | ||||
Collateral posted with counterparties related to derivatives | 0 | 0 | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||||
Derivative [Line Items] | ||||||
Net unrealized gain (loss) that remained in accumulated other comprehensive loss | 791,000 | $ 791,000 | 1,369,000 | |||
Natural Gas Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Aggregate notional amount outstanding (in mmBTUs) | MMBTU | 2,420,000 | |||||
Gain (loss) on derivatives qualifying as cash flow hedges, net of tax | (300,000) | $ 300,000 | $ (300,000) | $ 200,000 | ||
Income tax expense (benefit) recognized in other comprehensive income | (100,000) | 200,000 | (200,000) | 100,000 | ||
Gain (loss) reclassified from accumulated other comprehensive income, before tax | 100,000 | $ 200,000 | 100,000 | $ 400,000 | ||
Natural Gas Swap | Cash Flow Hedging | Designated as Hedging Instrument | Accrued and Other Liabilities | ||||||
Derivative [Line Items] | ||||||
Amount recorded in other current liabilities | (237,000) | (237,000) | ||||
Natural Gas Swap | Cash Flow Hedging | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets [Member] | ||||||
Derivative [Line Items] | ||||||
Amount recorded in other current assets | 100,000 | 100,000 | 400,000 | |||
Natural Gas Swap | Cash Flow Hedging | Designated as Hedging Instrument | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||||
Derivative [Line Items] | ||||||
Net unrealized gain (loss) that remained in accumulated other comprehensive loss | (100,000) | (100,000) | 200,000 | |||
Net unrealized gain (loss) that remained in accumulated other comprehensive loss, tax | (100,000) | (100,000) | 100,000 | |||
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Derivative instrument term (not beyond) | 4 years | |||||
Aggregate notional amount outstanding (in mmBTUs) | MMBTU | 100,000,000 | |||||
Gain (loss) on derivatives qualifying as cash flow hedges, net of tax | (300,000) | (200,000) | ||||
Income tax expense (benefit) recognized in other comprehensive income | 168,000 | 117,000 | ||||
Gain (loss) reclassified from accumulated other comprehensive income, before tax | $ (44,000) | $ (100,000) | ||||
Average fixed rate | 1.323% | 1.323% | ||||
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | ||||||
Derivative [Line Items] | ||||||
Floor rate | 0.75% | 0.75% | ||||
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets [Member] | ||||||
Derivative [Line Items] | ||||||
Amount recorded in other current assets | $ 1,500,000 | $ 1,500,000 | ||||
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||||
Derivative [Line Items] | ||||||
Net unrealized gain (loss) that remained in accumulated other comprehensive loss | (1,000,000) | (1,000,000) | (1,200,000) | |||
Net unrealized gain (loss) that remained in accumulated other comprehensive loss, tax | $ 500,000 | $ 500,000 | $ (600,000) | |||
Maximum | ||||||
Derivative [Line Items] | ||||||
Derivative instrument term (not beyond) | 1 year |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) | Mar. 18, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 21, 2017 | Aug. 03, 2016 | Nov. 04, 2015 |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchase program authorized amount (up to) | $ 200,000,000 | $ 100,000,000 | $ 50,000,000 | |||||||
Number of common stock shares repurchased, value per share (usd per share) | $ 19.93 | $ 19.01 | $ 20.64 | $ 19.16 | $ 19.73 | $ 20.24 | ||||
Stock repurchase program, increase in authorized amount | $ 50,000,000 | |||||||||
Repurchase from LSF8 in private transaction | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Number of common stock shares repurchased (shares) | 900,000 | 0 | 900,000 | |||||||
Number of common stock shares repurchased, value per share (usd per share) | $ 16.10 | $ 0 | $ 16.10 | |||||||
Aggregate value of common stock shares repurchased | $ 14,500,000 | $ 0 | $ 14,490,000 |
Treasury Stock - Treasury Stock
Treasury Stock - Treasury Stock Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 18, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Treasury Stock [Roll Forward] | |||||||||
Beginning balance (shares) | 4,716,778 | 4,499,655 | 3,446,208 | 2,395,049 | 4,499,655 | 2,395,049 | 2,395,049 | ||
Beginning balance | $ 93,993 | $ 88,756 | $ 65,505 | $ 48,479 | $ 88,756 | $ 48,479 | $ 48,479 | ||
Ending balance (shares) | 5,648,778 | 4,716,778 | 3,678,188 | 3,446,208 | 5,648,778 | 3,678,188 | 4,499,655 | 2,395,049 | |
Ending balance | $ 116,592 | $ 93,993 | $ 70,489 | $ 65,505 | $ 116,592 | $ 70,489 | $ 88,756 | $ 48,479 | |
Average share price (usd per share) | $ 19.93 | $ 19.01 | $ 20.64 | $ 19.16 | $ 19.73 | $ 20.24 | |||
Repurchases on open market | |||||||||
Treasury Stock [Roll Forward] | |||||||||
Shares repurchased (shares) | 932,000 | 231,980 | 1,149,123 | 383,139 | |||||
Shares repurchased | $ 22,599 | $ 4,984 | $ 27,836 | $ 7,520 | |||||
Average share price (usd per share) | $ 24.25 | $ 21.48 | $ 24.22 | $ 19.63 | |||||
Repurchase from LSF8 in private transaction | |||||||||
Treasury Stock [Roll Forward] | |||||||||
Shares repurchased (shares) | 900,000 | 0 | 900,000 | ||||||
Shares repurchased | $ 14,500 | $ 0 | $ 14,490 | ||||||
Average share price (usd per share) | $ 16.10 | $ 0 | $ 16.10 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Mar. 21, 2017 | Feb. 22, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 0.8 | $ 0.8 | $ 1.5 | $ 1.2 | ||
Unrecognized compensation expense related to non-vested restricted stock | $ 5.8 | $ 5.8 | ||||
Restricted stock awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unearned compensation expense, weighted average remaining period | 2 years 6 months | |||||
Performance restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted shares | 1,702 | |||||
Weighted average grant date fair value (in dollars per share) | $ 24.30 | |||||
Performance restricted stock units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of PRSUs earned | 0.00% | |||||
Performance restricted stock units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of PRSUs earned | 200.00% | |||||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value (in dollars per share) | $ 24.30 | |||||
Restricted stock units | Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted shares | 1,701 | |||||
Vesting period | 4 years |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Loss (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 309,012 |
Ending Balance | 307,488 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (4,778) |
Other comprehensive income/(loss) before reclassifications | 564 |
Amounts reclassified from AOCI | 0 |
Net current period other comprehensive income/(loss) | 564 |
Ending Balance | (4,214) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 1,369 |
Other comprehensive income/(loss) before reclassifications | (793) |
Amounts reclassified from AOCI | 215 |
Net current period other comprehensive income/(loss) | (578) |
Ending Balance | 791 |
Accumulated Other Comprehensive Income (Loss) [Member] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (3,409) |
Other comprehensive income/(loss) before reclassifications | (229) |
Amounts reclassified from AOCI | 215 |
Net current period other comprehensive income/(loss) | (14) |
Ending Balance | $ (3,423) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Effective rate (as a percent) | 33.40% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,000 | 165 | 43,000 | 77,000 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 12,398 | $ 12,722 | $ 24,625 | $ 25,223 |
Weighted average number of shares outstanding- basic (shares) | 39,125,571 | 40,670,650 | 39,349,674 | 41,097,472 |
Effect of dilutive securities: | ||||
Total effect of dilutive securities (shares) | 84,648 | 46,512 | 105,254 | 30,994 |
Weighted average number of shares outstanding - diluted (shares) | 39,210,219 | 40,717,162 | 39,454,928 | 41,128,466 |
Basic earnings per share (usd per share) | $ 0.32 | $ 0.31 | $ 0.63 | $ 0.61 |
Diluted earnings per share (usd per share) | $ 0.32 | $ 0.31 | $ 0.62 | $ 0.61 |
Restricted stock awards | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (shares) | 5,880 | 7,449 | 7,971 | 7,236 |
Restricted stock units | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (shares) | 39,988 | 25,095 | 57,169 | 15,789 |
Performance restricted stock units | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (shares) | 17,837 | 0 | 17,180 | 0 |
Stock options | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (shares) | 20,943 | 13,968 | 22,934 | 7,969 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Rent expense | $ 0.9 | $ 1.1 | $ 1.7 | $ 2.1 | |
Letter of Credit | |||||
Long-term Purchase Commitment [Line Items] | |||||
Outstanding amount of letters of credit | 1.6 | 1.6 | $ 2.1 | ||
Gas, Gypsum, Paper, and Other Raw Materials | |||||
Long-term Purchase Commitment [Line Items] | |||||
Non capital purchased under commitments | $ 21.7 | $ 15.5 | $ 42.8 | $ 33.1 |
Commitments and Contingencies62
Commitments and Contingencies - Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases and Purchase Commitments by Year (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Future Minimum Lease Payments | |
July 1, 2017 through December 31, 2017 | $ 556 |
2,018 | 616 |
2,019 | 1,494 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 0 |
Total | 2,666 |
Purchase Commitments | |
July 1, 2017 through December 31, 2017 | 22,857 |
2,018 | 26,979 |
2,019 | 26,718 |
2,020 | 17,442 |
2,021 | 5,237 |
Thereafter | 64,256 |
Total | $ 163,489 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - geographic_area | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Number of geographical areas (geographic area) | 2 | 2 | ||
Wallboard | Sales Revenue, Net [Member] | Product Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of revenues | 97.20% | 97.00% | 96.90% | 96.80% |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net Sales: | ||||
Net Sales | $ 120,630 | $ 117,115 | $ 241,245 | $ 228,600 |
Operating income: | ||||
Operating income | 21,620 | 23,208 | 43,307 | 45,778 |
Adjustments: | ||||
Interest expense | (3,062) | (3,648) | (5,978) | (7,346) |
Income/(losses) from equity investment | 345 | (240) | 175 | (435) |
Other (expense)/income, net | (135) | 6 | (779) | 160 |
Income before provision for income taxes | 18,768 | 19,326 | 36,725 | 38,157 |
Depreciation and Amortization | ||||
Total depreciation and amortization | 12,474 | 11,842 | 23,760 | 23,788 |
Operating Segments | Wallboard | ||||
Net Sales: | ||||
Net Sales | 117,194 | 113,593 | 233,670 | 221,192 |
Operating income: | ||||
Operating income | 21,819 | 23,216 | 43,411 | 45,620 |
Depreciation and Amortization | ||||
Total depreciation and amortization | 12,177 | 11,566 | 23,199 | 23,240 |
Operating Segments | Other | ||||
Net Sales: | ||||
Net Sales | 3,436 | 3,522 | 7,575 | 7,408 |
Operating income: | ||||
Operating income | (199) | (8) | (104) | 158 |
Depreciation and Amortization | ||||
Total depreciation and amortization | 297 | 276 | 561 | 548 |
Adjustments | ||||
Adjustments: | ||||
Interest expense | (3,062) | (3,648) | (5,978) | (7,346) |
Income/(losses) from equity investment | 345 | (240) | 175 | (435) |
Other (expense)/income, net | $ (135) | $ 6 | $ (779) | $ 160 |
Segment Reporting - Net Sales b
Segment Reporting - Net Sales by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 120,630 | $ 117,115 | $ 241,245 | $ 228,600 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 113,665 | 107,694 | 224,051 | 211,336 |
Canada | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 6,965 | $ 9,421 | $ 17,194 | $ 17,264 |
Segment Reporting - Assets by G
Segment Reporting - Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Fixed Assets | $ 297,931 | $ 307,838 |
Total Assets | 628,825 | 634,749 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Fixed Assets | 294,561 | 304,807 |
Total Assets | 610,355 | 617,050 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Fixed Assets | 3,370 | 3,031 |
Total Assets | $ 18,470 | $ 17,699 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - Recurring - Level 2 - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Natural Gas Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ 100 | $ (200) |
Tax on derivative instruments | 100 | 119 |
Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1,000 | 1,200 |
Tax on derivative instruments | $ 500 | $ 600 |