Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 10, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-36293 | |
Entity Registrant Name | CONTINENTAL BUILDING PRODUCTS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 61-1718923 | |
Entity Address, Address Line One | 12950 Worldgate Drive | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Herndon | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 20170 | |
City Area Code | (703) | |
Local Phone Number | 480-3800 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | CBPX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 34,688,206 | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001592480 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 127,439 | $ 131,234 | $ 373,677 | $ 387,304 |
Cost of goods sold | 99,532 | 94,306 | 286,288 | 279,185 |
Gross profit | 27,907 | 36,928 | 87,389 | 108,119 |
Selling and administrative expense | 9,626 | 9,957 | 28,397 | 29,826 |
Loss on intangible asset impairment | 0 | 0 | 2,911 | 0 |
Gain from insurance recoveries, net | 0 | 0 | 1,513 | 0 |
Gain from business interruption insurance | 1,623 | 0 | 4,861 | 0 |
Operating income | 19,904 | 26,971 | 62,455 | 78,293 |
Other expense, net | (66) | (29) | (168) | (256) |
Interest expense, net | (2,220) | (2,549) | (7,107) | (7,963) |
Income before losses from equity method investment and provision for income taxes | 17,618 | 24,393 | 55,180 | 70,074 |
Losses from equity method investment | (191) | (393) | (603) | (1,148) |
Income before provision for income taxes | 17,427 | 24,000 | 54,577 | 68,926 |
Provision for income taxes | (3,979) | (5,436) | (12,355) | (14,821) |
Net income | $ 13,448 | $ 18,564 | $ 42,222 | $ 54,105 |
Net income per share: | ||||
Basic (usd per share) | $ 0.39 | $ 0.51 | $ 1.21 | $ 1.46 |
Diluted (usd per share) | $ 0.39 | $ 0.50 | $ 1.21 | $ 1.46 |
Weighted average shares outstanding: | ||||
Basic (shares) | 34,688,206 | 36,732,746 | 34,911,640 | 37,012,536 |
Diluted (shares) | 34,775,451 | 36,918,904 | 34,996,694 | 37,181,387 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 13,448 | $ 18,564 | $ 42,222 | $ 54,105 |
Foreign currency translation adjustment | (179) | 298 | 450 | (496) |
Derivative instrument adjustments, net of taxes | (7) | (8) | (2,047) | 1,489 |
Other comprehensive (loss)/income | (186) | 290 | (1,597) | 993 |
Comprehensive income | $ 13,262 | $ 18,854 | $ 40,625 | $ 55,098 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 126,433 | $ 102,633 |
Trade receivables, net | 43,098 | 38,454 |
Inventories, net | 35,486 | 32,225 |
Prepaid and other current assets | 7,275 | 19,805 |
Total current assets | 212,292 | 193,117 |
Property, plant and equipment, net | 281,802 | 288,368 |
Customer relationships and other intangibles, net | 54,450 | 62,680 |
Goodwill | 119,945 | 119,945 |
Equity method investment | 7,216 | 7,975 |
Operating lease - right of use assets | 760 | |
Debt issuance costs | 160 | 296 |
Total Assets | 676,625 | 672,381 |
Liabilities: | ||
Accounts payable | 31,037 | 48,060 |
Accrued and other liabilities | 13,165 | 12,815 |
Debt, current portion | 1,695 | 1,669 |
Operating lease liabilities, current portion | 633 | |
Total current liabilities | 46,530 | 62,544 |
Deferred taxes and other long-term liabilities | 19,173 | 20,204 |
Debt, non-current portion | 260,617 | 261,886 |
Operating lease liabilities, non-current portion | 690 | |
Total Liabilities | 327,010 | 344,634 |
Shareholders' Equity: | ||
Undesignated preferred stock, par value $0.001 per share; 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value per share; 190,000,000 shares authorized; 44,539,759 and 44,472,214 shares issued and 34,688,206 and 35,401,868 shares outstanding as of September 30, 2019 and December 31, 2018, respectively | 44 | 44 |
Additional paid-in capital | 328,781 | 327,515 |
Less: Treasury stock | (229,073) | (209,050) |
Accumulated other comprehensive loss | (4,988) | (3,391) |
Accumulated earnings | 254,851 | 212,629 |
Total Shareholders' Equity | 349,615 | 327,747 |
Total Liabilities and Shareholders' Equity | $ 676,625 | $ 672,381 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Undesignated preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Undesignated preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Undesignated preferred stock, shares issued (in shares) | 0 | 0 |
Undesignated preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 190,000,000 | 190,000,000 |
Common stock, shares issued (in shares) | 44,539,759 | 44,472,214 |
Common stock, shares outstanding (in shares) | 34,688,206 | 35,401,868 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 42,222 | $ 54,105 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 32,234 | 32,966 |
Amortization of debt issuance costs and debt discount | 930 | 931 |
Gain from insurance recoveries, net | (1,513) | 0 |
Loss on intangible asset impairment | 2,911 | 0 |
Losses from equity method investment | 603 | 1,148 |
Amortization of deferred gain on terminated swaps | (873) | (632) |
Share-based compensation | 1,706 | 2,459 |
Deferred taxes | 0 | (457) |
Change in assets and liabilities: | ||
Trade receivables | (4,678) | (914) |
Inventories | (3,190) | (7,627) |
Prepaid expenses and other current assets | 12,453 | 1,264 |
Accounts payable | (16,451) | (52) |
Accrued and other current liabilities | (433) | 1,089 |
Other long-term liabilities | (176) | (226) |
Net cash provided by operating activities | 65,745 | 84,054 |
Cash flows from investing activities: | ||
Payments for property, plant and equipment | (19,287) | (19,761) |
Payments for intangible assets | (1,551) | (1,359) |
Proceeds from insurance recoveries | 1,589 | 125 |
Capital contributions to equity method investment | (407) | (548) |
Distributions from equity method investment | 564 | 468 |
Net cash used in investing activities | (19,092) | (21,075) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 118 | 145 |
Tax withholdings on share-based compensation | (1,165) | (547) |
Principal payments for debt | (2,037) | (2,037) |
Payments to repurchase common stock | (20,023) | (27,425) |
Net cash used in financing activities | (23,107) | (29,864) |
Effect of foreign exchange rates on cash and cash equivalents | 254 | (184) |
Net change in cash and cash equivalents | 23,800 | 32,931 |
Cash, beginning of period | 102,633 | 72,521 |
Cash, end of period | $ 126,433 | $ 105,452 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Earnings |
Beginning Balance at Dec. 31, 2017 | $ 318,026 | $ 44 | $ 325,391 | $ (143,357) | $ (2,649) | $ 138,597 |
Beginning balance (in shares) at Dec. 31, 2017 | 37,532,959,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 13,646 | 13,646 | ||||
Other comprehensive income (loss), net of tax | 564 | 564 | ||||
Purchase of treasury shares | (14,550) | $ 0 | (14,550) | |||
Purchase of treasury shares ( in shares) | (530,600,000) | |||||
Stock option exercise | 11 | $ 0 | 11 | |||
Stock option exercise (in shares) | 781,000 | |||||
Stock-based compensation | 213 | $ 0 | 213 | |||
Stock-based compensation (in shares) | 85,838,000 | |||||
Ending Balance at Mar. 31, 2018 | 317,910 | $ 44 | 325,615 | (157,907) | (2,085) | 152,243 |
Ending balance (in shares) at Mar. 31, 2018 | 37,088,978,000 | |||||
Beginning Balance at Dec. 31, 2017 | 318,026 | $ 44 | 325,391 | (143,357) | (2,649) | 138,597 |
Beginning balance (in shares) at Dec. 31, 2017 | 37,532,959,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 54,105 | |||||
Other comprehensive income (loss), net of tax | 993 | |||||
Ending Balance at Sep. 30, 2018 | 347,951 | $ 44 | 327,643 | (170,782) | (1,656) | 192,702 |
Ending balance (in shares) at Sep. 30, 2018 | 36,681,879,000 | |||||
Beginning Balance at Mar. 31, 2018 | 317,910 | $ 44 | 325,615 | (157,907) | (2,085) | 152,243 |
Beginning balance (in shares) at Mar. 31, 2018 | 37,088,978,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 21,895 | 21,895 | ||||
Other comprehensive income (loss), net of tax | 139 | 139 | ||||
Purchase of treasury shares | (10,012) | $ 0 | (10,012) | |||
Purchase of treasury shares ( in shares) | (344,908,000) | |||||
Stock option exercise | 0 | $ 0 | 0 | |||
Stock option exercise (in shares) | 2,706,000 | |||||
Stock-based compensation | 979 | $ 0 | 979 | |||
Stock-based compensation (in shares) | 2,103,000 | |||||
Ending Balance at Jun. 30, 2018 | 330,911 | $ 44 | 326,594 | (167,919) | (1,946) | 174,138 |
Ending balance (in shares) at Jun. 30, 2018 | 36,748,879,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 18,564 | 18,564 | ||||
Other comprehensive income (loss), net of tax | 290 | 290 | ||||
Purchase of treasury shares | (2,863) | $ 0 | (2,863) | |||
Purchase of treasury shares ( in shares) | (76,600,000) | |||||
Stock option exercise | 199 | $ 0 | 199 | |||
Stock option exercise (in shares) | 9,600,000 | |||||
Stock-based compensation | 850 | $ 0 | 850 | |||
Stock-based compensation (in shares) | 0 | |||||
Ending Balance at Sep. 30, 2018 | 347,951 | $ 44 | 327,643 | (170,782) | (1,656) | 192,702 |
Ending balance (in shares) at Sep. 30, 2018 | 36,681,879,000 | |||||
Beginning Balance at Dec. 31, 2018 | 327,747 | $ 44 | 327,515 | (209,050) | (3,391) | 212,629 |
Beginning balance (in shares) at Dec. 31, 2018 | 35,401,868,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 15,926 | 15,926 | ||||
Other comprehensive income (loss), net of tax | (54) | (54) | ||||
Purchase of treasury shares | (5,005) | $ 0 | (5,005) | |||
Purchase of treasury shares ( in shares) | (191,907,000) | |||||
Stock option exercise | 118 | $ 0 | 118 | |||
Stock option exercise (in shares) | 6,500,000 | |||||
Stock-based compensation | 35 | $ 0 | 35 | |||
Stock-based compensation (in shares) | 58,571,000 | |||||
Ending Balance at Mar. 31, 2019 | 338,767 | $ 44 | 327,668 | (214,055) | (3,445) | 228,555 |
Ending balance (in shares) at Mar. 31, 2019 | 35,275,032,000 | |||||
Beginning Balance at Dec. 31, 2018 | 327,747 | $ 44 | 327,515 | (209,050) | (3,391) | 212,629 |
Beginning balance (in shares) at Dec. 31, 2018 | 35,401,868,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 42,222 | |||||
Other comprehensive income (loss), net of tax | (1,597) | |||||
Ending Balance at Sep. 30, 2019 | 349,615 | $ 44 | 328,781 | (229,073) | (4,988) | 254,851 |
Ending balance (in shares) at Sep. 30, 2019 | 34,688,206,000 | |||||
Beginning Balance at Mar. 31, 2019 | 338,767 | $ 44 | 327,668 | (214,055) | (3,445) | 228,555 |
Beginning balance (in shares) at Mar. 31, 2019 | 35,275,032,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 12,848 | 12,848 | ||||
Other comprehensive income (loss), net of tax | (1,357) | (1,357) | ||||
Purchase of treasury shares | (15,018) | $ 0 | (15,018) | |||
Purchase of treasury shares ( in shares) | (589,300,000) | |||||
Stock-based compensation | 548 | $ 0 | 548 | |||
Stock-based compensation (in shares) | 2,474,000 | |||||
Ending Balance at Jun. 30, 2019 | 335,788 | $ 44 | 328,216 | (229,073) | (4,802) | 241,403 |
Ending balance (in shares) at Jun. 30, 2019 | 34,688,206,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 13,448 | 13,448 | ||||
Other comprehensive income (loss), net of tax | (186) | (186) | ||||
Stock-based compensation | 565 | $ 0 | 565 | |||
Stock-based compensation (in shares) | 0 | |||||
Ending Balance at Sep. 30, 2019 | $ 349,615 | $ 44 | $ 328,781 | $ (229,073) | $ (4,988) | $ 254,851 |
Ending balance (in shares) at Sep. 30, 2019 | 34,688,206,000 |
Background and Nature of Operat
Background and Nature of Operations | 9 Months Ended |
Sep. 30, 2019 | |
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. 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. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019. 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, 2018 included in the Company's Annual Report on Form 10-K for the fiscal year then ended (the "2018 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 Transactions and Other Activity For the Nine Months Ended September 30, 2019 September 30, 2018 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating lease cash outflows $ 464 $ 451 Other activity: Acquisition of property, plant and equipment included in liabilities $ 2,486 $ 3,432 (d) Recent Accounting Pronouncements Accounting Standards Recently Adopted The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-02, "Leases," as of January 1, 2019 . The Company elected the transition package of practical expedients permitted within ASU 2016-02, which among other things, allowed the Company to carryforward the historical lease classification. In addition, the Company elected the comparative period practical expedient, which allowed the Company to implement the guidance as of the effective date without having to adjust the comparative financial statements. Instead, under this expedient, companies recognize the cumulative effect adjustment in equity. The Company also made an accounting policy election that leases with an initial term of 12 months or less will not be recorded on the balance sheet and will result in the recognition of those lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The adoption of the standard resulted in recognition of approximately $1.0 million in right of use assets and $1.7 million in lease liabilities for operating leases on the Company's Consolidated Balance Sheet, with no impact to its retained earnings, Consolidated Statement of Operations and Consolidated Statement of Cash Flows. The Company adopted ASU 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities," as of January 1, 2019. This ASU expands an entity's ability to hedge non-financial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The adoption of the standard did not have a material impact on the Company's Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." This ASU requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company early adopted this ASU. The adoption of the standard did not have a material impact on the Company's Consolidated Financial Statements. Accounting Standards Not Yet Adopted 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 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 August 2018, the FASB issued ASU 2018-13, "Fair Value Measurements (Topic 820), Changes to the Disclosure Requirements for Fair Value Measurement." This ASU eliminates certain disclosure requirements for fair value measurements for all entities, requires public entities to disclose certain new information and modifies some disclosure requirements. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. 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. (e) Reclassifications Certain reclassifications of prior year information were made to conform to the 2019 presentation. These reclassifications had no material impact on the Company's Consolidated Financial Statements. |
Trade Receivables, Net
Trade Receivables, Net | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Trade Receivables, Net | TRADE RECEIVABLES, NET Table 3: Details of Trade Receivables, Net September 30, 2019 December 31, 2018 (in thousands) Trade receivables, gross $ 44,042 $ 39,426 Allowance for cash discounts and doubtful accounts (944) (972) Trade receivables, net $ 43,098 $ 38,454 Trade receivables are recorded net of credit memos issued during the normal course of business. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | INVENTORIES, NET Table 4: Details of Inventories, Net September 30, 2019 December 31, 2018 (in thousands) Finished products $ 6,385 $ 6,700 Raw materials 21,474 18,388 Supplies and other 7,627 7,137 Inventories, net $ 35,486 $ 32,225 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET Table 5: Details of Property, Plant and Equipment, Net September 30, 2019 December 31, 2018 (in thousands) Land $ 13,186 $ 13,185 Buildings 120,837 118,076 Plant machinery 311,257 292,219 Mobile equipment 16,538 15,163 Construction in progress 16,070 23,566 Property, plant and equipment, at cost 477,888 462,209 Accumulated depreciation (196,086) (173,841) Property, plant and equipment, net $ 281,802 $ 288,368 Depreciation expense was $9.0 million and $25.5 million for the three and nine months ended September 30, 2019, respectively, compared to $9.1 million and $25.4 million for the three and nine months ended September 30, 2018, respectively. |
Customer Relationships and Othe
Customer Relationships and Other Intangibles, Net | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 December 31, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Customer relationships $ 116,363 $ (71,453) $ 44,910 $ 116,180 $ (65,738) $ 50,442 Purchased software 9,561 (5,984) 3,577 8,225 (5,507) 2,718 Trademarks 10,032 (4,069) 5,963 14,772 (5,252) 9,520 Total $ 135,956 $ (81,506) $ 54,450 $ 139,177 $ (76,497) $ 62,680 Amortization expense was $2.1 million and $6.8 million for the three and nine months ended September 30, 2019, respectively, compared to $2.5 million and $7.5 million for the three and nine months ended September 30, 2018, respectively. Table 6.2: Details of Future Amortization Expense of Customer Relationships and Other Intangibles As of September 30, 2019 (in thousands) October 1, 2019 through December 31, 2019 $ 2,395 2020 8,432 2021 7,677 2022 7,107 2023 5,789 Thereafter 23,050 Total $ 54,450 |
Investment in Seven Hills
Investment in Seven Hills | 9 Months Ended |
Sep. 30, 2019 | |
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, pursuant to a paper supply agreement, 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 is 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 $12.8 million and $38.2 million for the three and nine months ended September 30, 2019, respectively, compared to $12.3 million and $37.4 million for the three and nine months ended September 30, 2018, respectively. As of September 30, 2019, the Company had certain purchase commitments for paper from Seven Hills totaling $29.5 million through 2022. |
Accrued and Other Liabilities
Accrued and Other Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued and Other Liabilities | ACCRUED AND OTHER LIABILITIES Table 8: Details of Accrued and Other Liabilities September 30, 2019 December 31, 2018 (in thousands) Employee-related costs $ 6,656 $ 10,768 Property taxes 1,731 82 Income tax 2,011 — Other taxes 461 351 Other 2,306 1,614 Accrued and other liabilities $ 13,165 $ 12,815 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Table 9.1: Details of Debt September 30, 2019 December 31, 2018 (in thousands) Amended and Restated Credit Agreement (1) $ 250,620 $ 252,658 Industrial revenue bonds (2) 16,200 16,200 Less: Original issue discount (net of amortization) (1,092) (1,285) Less: Debt issuance costs (3,416) (4,018) Total debt 262,312 263,555 Less: Current portion of long-term debt (1,695) (1,669) Long-term debt $ 260,617 $ 261,886 (1) As of September 30, 2019 and December 31, 2018, 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 2.00%. (2) As of September 30, 2019 and December 31, 2018, Industrial revenue bonds had a maturity date of December 1, 2025 and an interest rate of LIBOR plus 1.50% less an approximate 20 percent reduction in the rate related to the tax-free interest income to the bond holders. On August 18, 2016, the Company, Continental Building Products Operating Company, LLC 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 Company's existing 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 (the "Term Loan") and a $75.0 million senior secured revolving credit facility (the "Revolver"), which mature on August 18, 2023 and August 18, 2021, respectively. The interest rate under the Amended and Restated Credit Agreement was a spread over LIBOR of 2.75% and floor of 0.75%. On February 21, 2017, the Company repriced its Term Loan lowering its interest rate by 25 basis points to LIBOR plus 2.50%. Subsequently, on December 6, 2017, the Company further repriced its Term Loan lowering its interest rate by an additional 25 basis points to LIBOR plus 2.25% and allowing for a further reduction in the interest rate to LIBOR plus 2.00% based on the attainment of a total leverage ratio of 1.1 or better. All other terms and conditions under the Amended and Restated Credit Agreement remained the same. During both the nine months ended September 30, 2019 and 2018, the Company made $2.0 million of scheduled mandatory principal payments. Because the Company attained a total leverage ratio of less than 1.1 to 1 during the fourth quarter of 2018, the interest rate was further reduced pursuant to the terms of the Amended and Restated Credit Agreement to LIBOR plus 2.00% as of December 31, 2018. As of September 30, 2019, the annual effective interest rate, including original issue discount and amortization of debt issuance costs, was 4.5%. In December 2018, the Company completed a financing of industrial revenue bonds due December 1, 2025 with a total commitment of $28.0 million. The bonds were issued by the County of Campbell, Kentucky and Putnam County Development Authority, pursuant to a trust indenture between the issuers and Huntington National Bank, as trustee. Proceeds of the bonds are loaned by the issuers to the Company under a loan agreement, whereby the Company is obligated to make loan payments to the issuers sufficient to pay all debt service and expenses related to the bonds. The Company's obligations under the loan agreement and related note bear interest at a fluctuating rate based on LIBOR plus 1.50% less an approximate 20 percent reduction in the rate related to the tax-free interest income to the bond holders. The loan agreement contains restrictions and covenants on our operations that are consistent with those contained in the Amended and Restated Credit Agreement mentioned below. There were no amounts outstanding under the Revolver as of September 30, 2019 or December 31, 2018. Interest under the Revolver is floating, based on LIBOR plus 2.25%. 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 September 30, 2019, based on draws and outstanding letters of credit and absence of violations of covenants, was $73.7 million. Table 9.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) October 1, 2019 through December 31, 2019 $ 678 2020 5,326 2021 6,196 2022 6,196 2023 245,074 Thereafter 3,350 Total Payments $ 266,820 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, taxes, depreciation and amortization. As the sum of outstanding borrowings under the Revolver and outstanding letters of credit were less than $22.5 million at September 30, 2019, the total leverage ratio of no greater than 5.0 under the financial covenant was not applicable at September 30, 2019. The Company was in compliance with all applicable covenants under the Amended and Restated Credit Agreement and the loan agreement related to the industrial revenue bonds as of September 30, 2019. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Commodity Derivative Instruments As of September 30, 2019, the Company had 3.0 million mmBTUs (millions of British Thermal Units) in aggregate notional amount outstanding natural gas swap contracts to manage commodity price exposures. All of these contracts mature by September 30, 2020. The Company elected to designate these derivative instruments as cash flow hedges in accordance with ASC 815-20, "Derivatives – Hedging" . No ineffectiveness was recorded on these contracts during the three and nine months ended September 30, 2019 and 2018. 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. On March 29, 2018, the Company terminated its interest rate swap agreements that were previously designated as a cash flow hedge and received $3.2 million in cash, the fair value of the swap on the termination date. The unrealized gain at termination remains in accumulated other comprehensive income and will be amortized into interest expense over the life of the original hedged instrument. During the three and nine months ended September 30, 2019, $0.2 million and $0.7 million of the unrealized gain, net of tax related to the terminated swaps was amortized into interest expense, compared to $0.2 million and $0.5 million for the same periods of 2018. Also on March 29, 2018, the Company entered into new interest rate swap agreements for a combined notional amount of $100.0 million, which expire on September 30, 2020 and hedge the floating LIBOR on a portion of the Term Loan to an average fixed rate of 2.46% and LIBOR floor of 0.75%. The Company elected to designate these interest rate swaps as cash flow hedges for accounting purposes. No ineffectiveness was recorded on these contracts during the three and nine months ended September 30, 2019 and 2018. Table 10.1: Details of Derivatives Fair Value September 30, 2019 December 31, 2018 (in thousands) Assets Interest rate swap $ — $ 86 Commodity hedges 1 61 Total assets $ 1 $ 147 Liabilities Interest rate swap $ 777 $ — Commodity hedges 934 105 Total liabilities $ 1,711 $ 105 Table 10.2: Gains/(losses) on Derivatives For the Three Months Ended For the Nine Months Ended 2019 2018 2019 2018 2019 2018 2019 2018 Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax Gain/(loss) reclassified from AOCI into income (effective portion), net of tax Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax Gain/(loss) reclassified from AOCI into income (effective portion), net of tax (in thousands) Interest rate swap $ (32) $ 145 $ 190 $ 169 $ (693) $ 1,413 $ 657 $ 379 Commodity hedges (212) 7 (427) (9) (1,190) 251 (493) (204) Total $ (244) $ 152 $ (237) $ 160 $ (1,883) $ 1,664 $ 164 $ 175 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 September 30, 2019, the Company's derivatives were in a $1.7 million net liability position and recorded in other current liabilities. 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 September 30, 2019, the Company had no collateral posted with its counterparties related to the derivatives. |
Leases Leases
Leases Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES 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. Certain building leases also include options to renew, with renewal terms that can extend the lease term up to 5 years. The exercise of lease renewal options is at the Company's sole discretion. Table 11.1: Components of lease expense For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) Operating lease cost $ 118 $ 98 $ 319 $ 296 Short term lease cost 519 468 1,594 1,914 Total lease cost $ 637 $ 566 $ 1,913 $ 2,210 Table 11.2: Maturities of lease liabilities Operating leases (in thousands) October 1, 2019 through December 31, 2019 $ 156 2020 637 2021 600 2022 — 2023 — Total lease payments $ 1,393 Less imputed interest (70) Present value of lease liabilities $ 1,323 Table 11.3: Details of lease term and discount rate As of September 30, 2019 Weighted-average remaining lease term: Operating leases 3 years Weighted-average discount rate: Operating leases 4.52 % |
Treasury Stock
Treasury Stock | 9 Months Ended |
Sep. 30, 2019 | |
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, the Company has repurchased shares of its common stock in the open market and in private transactions. Since the initial authorization, the Company' Board of Directors has expanded and extended the stock repurchase program. The most recent authorization on February 21, 2018 expanded the program to a total of $300 million and also extended the expiration date to December 31, 2019. As of September 30, 2019, there was approximately $111.0 million of capacity remaining under this repurchase authorization. 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 12: Details of Treasury Stock Activity September 30, 2019 September 30, 2018 Shares Amount (1) Average Share Price (1) Shares Amount (1) Average Share Price (1) (in thousands, except share and share price data) For the Three Months Ended: Beginning Balance 9,851,553 $ 229,073 $ 23.25 7,664,325 $ 167,919 $ 21.91 Repurchases on open market — — — 76,600 2,863 37.38 Ending Balance 9,851,553 $ 229,073 $ 23.25 7,740,925 $ 170,782 $ 22.06 For the Nine Months Ended: Beginning Balance 9,070,346 $ 209,050 $ 23.05 6,788,817 $ 143,357 $ 21.12 Repurchases on open market 781,207 20,023 25.63 952,108 27,425 28.80 Ending Balance 9,851,553 $ 229,073 $ 23.25 7,740,925 $ 170,782 $ 22.06 (1) Includes commissions paid for repurchases on open market. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATIONFor the three and nine months ended September 30, 2019, the Company recognized share-based compensation expenses of $0.6Â million and $1.7Â million, respectively, compared to $0.8 million and $2.5 million for the three and nine months ended September 30, 2018, respectively. The expenses related to share-based compensation awards were recorded in selling and administrative expenses. As of September 30, 2019, there was $4.2Â million of total unrecognized compensation cost related to non-vested stock options, restricted stock awards, restricted stock units and performance-based restricted stock units. This cost is expected to be recognized over a weighted average period of 2.5 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS Table 14: Details of 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, 2018 $ (5,027) $ 1,636 $ (3,391) Other comprehensive income/(loss) before reclassifications 450 (1,883) (1,433) Amounts reclassified from accumulated other comprehensive loss — (164) (164) Net current period other comprehensive income/(loss) 450 (2,047) (1,597) Balance as of September 30, 2019 $ (4,577) $ (411) $ (4,988) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXESThe Company’s estimated annual effective tax rate is 22.4%. The Company is subject to federal income taxes and various state, provincial and local income taxes. The Company is subject to audit examinations at the U.S. 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 | 9 Months Ended |
Sep. 30, 2019 | |
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. There were no anti-dilutive awards during the three months ended September 30, 2019 and 2018. For the nine months ended September 30, 2019 and 2018, awards that had an anti-dilutive impact on the Company's dilutive earnings per share computation excluded from the weighted average shares outstanding were 28,000 and 21,000, respectively. Table 16: Details of Basic and Dilutive Earnings Per Share For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (dollars in thousands, except for share and per share amounts) Net income $ 13,448 $ 18,564 $ 42,222 $ 54,105 Weighted average number of shares outstanding - basic 34,688,206 36,732,746 34,911,640 37,012,536 Effect of dilutive securities: Restricted stock awards — — — 1,170 Restricted stock units 37,656 89,750 37,308 72,650 Performance-based restricted stock units 33,809 68,384 31,679 67,231 Stock options 15,780 28,024 16,067 27,800 Total effect of dilutive securities 87,245 186,158 85,054 168,851 Weighted average number of shares outstanding - diluted 34,775,451 36,918,904 34,996,694 37,181,387 Basic earnings per share $ 0.39 $ 0.51 $ 1.21 $ 1.46 Diluted earnings per share $ 0.39 $ 0.50 $ 1.21 $ 1.46 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments The Company has non-capital purchase commitments that primarily relate to gas, gypsum, paper and other raw materials. The total amounts purchased under such commitments were $20.8 million and $62.2 million for the three and nine months ended September 30, 2019, respectively, compared to $22.7 million and $69.5 million for the three and nine months ended September 30, 2018, respectively. Table 17: Details of Purchase Commitments As of September 30, 2019 (in thousands) October 1, 2019 through December 31, 2019 $ 11,460 2020 44,533 2021 42,358 2022 28,033 2023 12,254 Thereafter 48,144 Total $ 186,782 Contingent obligations Under certain circumstances, the Company provides letters of credit related to its natural gas and other supply purchases. As of September 30, 2019 and December 31, 2018, the Company had outstanding letters of credit of approximately $1.3 million and $1.4 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. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2019 | |
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 97.4% of the Company's revenues for both the three and nine months ended September 30, 2019, compared to 97.6% and 97.3% of the Company's revenues for the three and nine months ended September 30, 2018, 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 customer generating the revenue. 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 18.1: Segment Reporting For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) Net Sales: Wallboard $ 124,145 $ 128,101 $ 363,837 $ 376,739 Other 3,294 3,133 9,840 10,565 Total net sales $ 127,439 $ 131,234 $ 373,677 $ 387,304 Operating Income: Wallboard $ 20,635 $ 27,551 $ 64,116 $ 79,702 Other (731) (580) (1,661) (1,409) Total operating income $ 19,904 $ 26,971 $ 62,455 $ 78,293 Adjustments: Interest expense $ (2,220) $ (2,549) $ (7,107) $ (7,963) Losses from equity investment (191) (393) (603) (1,148) Other expense, net (66) (29) (168) (256) Income before provision for income taxes $ 17,427 $ 24,000 $ 54,577 $ 68,926 Depreciation and Amortization: Wallboard $ 10,837 $ 11,299 $ 31,440 $ 32,016 Other 306 281 794 950 Total depreciation and amortization $ 11,143 $ 11,580 $ 32,234 $ 32,966 Table 18.2: Details of Net Sales By Geographic Region For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) United States $ 120,900 $ 125,430 $ 355,807 $ 367,917 Canada 6,539 5,804 17,870 19,387 Net sales $ 127,439 $ 131,234 $ 373,677 $ 387,304 Table 18.3: Details of Assets By Geographic Region Fixed Assets Total Assets September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 (in thousands) United States $ 278,792 $ 285,202 $ 659,829 $ 655,849 Canada 3,010 3,166 16,796 16,532 Total $ 281,802 $ 288,368 $ 676,625 $ 672,381 |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | FAIR VALUE DISCLOSURES 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 September 30, 2019 and December 31, 2018, 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 September 30, 2019 that are recorded at fair value on a recurring basis are the natural gas hedges and interest rate swaps. 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. Table 19.1: Fair Value Hierarchy - 2019 As of September 30, 2019 Level 1 Level 2 Level 3 Balance (in thousands) Asset Interest rate swap $ — $ — $ — $ — Commodity derivatives — 1 — 1 Total assets $ — $ 1 $ — $ 1 Liabilities Interest rate swap $ — $ 777 $ — $ 777 Commodity derivatives — 934 — 934 Total liabilities $ — $ 1,711 $ — $ 1,711 Table 19.2: Fair Value Hierarchy - 2018 December 31, 2018 Level 1 Level 2 Level 3 Balance (in thousands) Asset Interest rate swap $ — $ 86 $ — $ 86 Commodity derivatives — 61 — 61 Total assets $ — $ 147 $ — $ 147 Liabilities Interest rate swap $ — $ — $ — $ — Commodity derivatives — 105 — 105 Total liabilities $ — $ 105 $ — $ 105 |
Buchanan Plant Outage Buchanan
Buchanan Plant Outage Buchanan Plant Outage | 9 Months Ended |
Sep. 30, 2019 | |
Loss Contingencies [Line Items] | |
Buchanan Plant Outage | COMMITMENTS AND CONTINGENCIES Commitments The Company has non-capital purchase commitments that primarily relate to gas, gypsum, paper and other raw materials. The total amounts purchased under such commitments were $20.8 million and $62.2 million for the three and nine months ended September 30, 2019, respectively, compared to $22.7 million and $69.5 million for the three and nine months ended September 30, 2018, respectively. Table 17: Details of Purchase Commitments As of September 30, 2019 (in thousands) October 1, 2019 through December 31, 2019 $ 11,460 2020 44,533 2021 42,358 2022 28,033 2023 12,254 Thereafter 48,144 Total $ 186,782 Contingent obligations Under certain circumstances, the Company provides letters of credit related to its natural gas and other supply purchases. As of September 30, 2019 and December 31, 2018, the Company had outstanding letters of credit of approximately $1.3 million and $1.4 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. |
Buchanan Plant Outage | |
Loss Contingencies [Line Items] | |
Buchanan Plant Outage | BUCHANAN PLANT OUTAGE On January 24, 2019, Company's Buchanan, New York plant experienced a significant equipment malfunction, resulting in an outage at the plant. The plant was off-line while repairs were made through March 15, 2019. While the Buchanan plant was down, the Company increased production at its plants in Silver Grove, Kentucky and Palatka, Florida to offset a portion of the lost production from the Buchanan plant. The Company has standard insurance coverage that is intended to cover circumstances such as these, including business interruption insurance. The Company's insurance coverage is designed to cover the direct costs of rebuilding the damaged equipment, costs incurred to re-direct products from the Company's other plants, and the lost contribution margin of the sales that otherwise would have been made if the plant was operating normally. During the nine months ended September 30, 2019, the Company recorded a $4.9 million gain from business interruption insurance. As of September 30, 2019, the Company has fully settled all claims related to the outage and has received all anticipated insurance payments associated with the outage. Table 20.1: Details of Insurance Claims and Cash Payments Related to Buchanan Outage Claim Details Cash Details Claim Amount Insurance Deductible Net recovery recorded in nine months ended September 30, 2019 Cash received in the nine months ended September 30, 2019 Receivable Recorded as of September 30, 2019 (in thousands) Rebuild property, plant and equipment damaged (a) $ 1,839 $ 250 $ 1,589 $ 1,589 $ — Directs costs associated with business interruption (b) 3,015 — 3,015 3,015 — Lost operating income associated with lost sales from business interruption (c) 4,861 — 4,861 4,861 — $ 9,715 $ 250 $ 9,465 $ 9,465 $ — (a) The rebuild of property, plant and equipment damaged and related net recovery resulted in a net gain of $1.5 million. (b) Direct costs associated with the business interruption include various expenses such as additional freight to ship to customers at greater distances from other plants, additional freight costs to reroute incoming raw materials and other various costs that were incurred as a result of the Buchanan outage and have been covered by the Company's insurance policy. The net recovery of direct costs associated with business interruption were netted against actual costs incurred resulting in a net impact of zero to the income statement. (c) This represents the insurance proceeds for the lost operating income the Company received related to the Buchanan outage. Table 20.2: Details of Gain from Insurance Recoveries, Net For the Nine Months Ended September 30, 2019 (in thousands) Cost to rebuild property, plant and equipment (capitalized) $ 1,839 Insurance deductible 250 Net recoveries from insurance policy 1,589 Write-off of property, plant and equipment 76 Gain from insurance recoveries, net $ 1,513 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENTOn November 12, 2019, the Company announced that it has entered into a definitive merger agreement with CertainTeed Gypsum and Ceilings USA, Inc., Cupertino Merger Sub, Inc. ("Merger Sub") and Compagnie de Saint-Gobain S.A. pursuant to which the Company will be merged with and into Merger Sub and each issued and outstanding share of the Company's common stock will be converted into the right to receive $37 in cash per share. Consummation of the transaction is subject to certain closing conditions, including approval by antitrust authorities and approval by the holders of a majority of the Company's issued and outstanding shares of common stock. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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. (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, 2019. 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, 2018 included in the Company's Annual Report on Form 10-K for the fiscal year then ended (the "2018 10-K"). The Company has continued to follow the accounting policies set forth in those financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Recently Adopted The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-02, "Leases," as of January 1, 2019 . The Company elected the transition package of practical expedients permitted within ASU 2016-02, which among other things, allowed the Company to carryforward the historical lease classification. In addition, the Company elected the comparative period practical expedient, which allowed the Company to implement the guidance as of the effective date without having to adjust the comparative financial statements. Instead, under this expedient, companies recognize the cumulative effect adjustment in equity. The Company also made an accounting policy election that leases with an initial term of 12 months or less will not be recorded on the balance sheet and will result in the recognition of those lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The adoption of the standard resulted in recognition of approximately $1.0 million in right of use assets and $1.7 million in lease liabilities for operating leases on the Company's Consolidated Balance Sheet, with no impact to its retained earnings, Consolidated Statement of Operations and Consolidated Statement of Cash Flows. The Company adopted ASU 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities," as of January 1, 2019. This ASU expands an entity's ability to hedge non-financial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The adoption of the standard did not have a material impact on the Company's Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." This ASU requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company early adopted this ASU. The adoption of the standard did not have a material impact on the Company's Consolidated Financial Statements. Accounting Standards Not Yet Adopted 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 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 August 2018, the FASB issued ASU 2018-13, "Fair Value Measurements (Topic 820), Changes to the Disclosure Requirements for Fair Value Measurement." This ASU eliminates certain disclosure requirements for fair value measurements for all entities, requires public entities to disclose certain new information and modifies some disclosure requirements. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. 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. |
Reclassifications | ReclassificationsCertain reclassifications of prior year information were made to conform to the 2019 presentation. These reclassifications had no material impact on the Company's Consolidated Financial Statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Disclosure Table 2.1: Certain Cash Transactions and Other Activity For the Nine Months Ended September 30, 2019 September 30, 2018 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating lease cash outflows $ 464 $ 451 Other activity: Acquisition of property, plant and equipment included in liabilities $ 2,486 $ 3,432 |
Trade Receivables, Net (Tables)
Trade Receivables, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Detail of Receivables, Net | Table 3: Details of Trade Receivables, Net September 30, 2019 December 31, 2018 (in thousands) Trade receivables, gross $ 44,042 $ 39,426 Allowance for cash discounts and doubtful accounts (944) (972) Trade receivables, net $ 43,098 $ 38,454 Trade receivables are recorded net of credit memos issued during the normal course of business. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Composition of Inventories | Table 4: Details of Inventories, Net September 30, 2019 December 31, 2018 (in thousands) Finished products $ 6,385 $ 6,700 Raw materials 21,474 18,388 Supplies and other 7,627 7,137 Inventories, net $ 35,486 $ 32,225 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Details | Table 5: Details of Property, Plant and Equipment, Net September 30, 2019 December 31, 2018 (in thousands) Land $ 13,186 $ 13,185 Buildings 120,837 118,076 Plant machinery 311,257 292,219 Mobile equipment 16,538 15,163 Construction in progress 16,070 23,566 Property, plant and equipment, at cost 477,888 462,209 Accumulated depreciation (196,086) (173,841) Property, plant and equipment, net $ 281,802 $ 288,368 |
Customer Relationships and Ot_2
Customer Relationships and Other Intangibles, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 December 31, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Customer relationships $ 116,363 $ (71,453) $ 44,910 $ 116,180 $ (65,738) $ 50,442 Purchased software 9,561 (5,984) 3,577 8,225 (5,507) 2,718 Trademarks 10,032 (4,069) 5,963 14,772 (5,252) 9,520 Total $ 135,956 $ (81,506) $ 54,450 $ 139,177 $ (76,497) $ 62,680 |
Future Amortization Expense of Customer Relationships and Other Intangibles | Table 6.2: Details of Future Amortization Expense of Customer Relationships and Other Intangibles As of September 30, 2019 (in thousands) October 1, 2019 through December 31, 2019 $ 2,395 2020 8,432 2021 7,677 2022 7,107 2023 5,789 Thereafter 23,050 Total $ 54,450 |
Accrued and Other Liabilities (
Accrued and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Details of Accrued and Other Liabilities | Table 8: Details of Accrued and Other Liabilities September 30, 2019 December 31, 2018 (in thousands) Employee-related costs $ 6,656 $ 10,768 Property taxes 1,731 82 Income tax 2,011 — Other taxes 461 351 Other 2,306 1,614 Accrued and other liabilities $ 13,165 $ 12,815 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Details of Debt | Table 9.1: Details of Debt September 30, 2019 December 31, 2018 (in thousands) Amended and Restated Credit Agreement (1) $ 250,620 $ 252,658 Industrial revenue bonds (2) 16,200 16,200 Less: Original issue discount (net of amortization) (1,092) (1,285) Less: Debt issuance costs (3,416) (4,018) Total debt 262,312 263,555 Less: Current portion of long-term debt (1,695) (1,669) Long-term debt $ 260,617 $ 261,886 (1) As of September 30, 2019 and December 31, 2018, 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 2.00%. (2) As of September 30, 2019 and December 31, 2018, Industrial revenue bonds had a maturity date of December 1, 2025 and an interest rate of LIBOR plus 1.50% less an approximate 20 percent reduction in the rate related to the tax-free interest income to the bond holders. |
Future Minimum Principal Payments Due Under the Credit Agreements | Table 9.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) October 1, 2019 through December 31, 2019 $ 678 2020 5,326 2021 6,196 2022 6,196 2023 245,074 Thereafter 3,350 Total Payments $ 266,820 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Table 10.1: Details of Derivatives Fair Value September 30, 2019 December 31, 2018 (in thousands) Assets Interest rate swap $ — $ 86 Commodity hedges 1 61 Total assets $ 1 $ 147 Liabilities Interest rate swap $ 777 $ — Commodity hedges 934 105 Total liabilities $ 1,711 $ 105 |
Derivative Instruments, Gain (Loss) | Table 10.2: Gains/(losses) on Derivatives For the Three Months Ended For the Nine Months Ended 2019 2018 2019 2018 2019 2018 2019 2018 Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax Gain/(loss) reclassified from AOCI into income (effective portion), net of tax Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax Gain/(loss) reclassified from AOCI into income (effective portion), net of tax (in thousands) Interest rate swap $ (32) $ 145 $ 190 $ 169 $ (693) $ 1,413 $ 657 $ 379 Commodity hedges (212) 7 (427) (9) (1,190) 251 (493) (204) Total $ (244) $ 152 $ (237) $ 160 $ (1,883) $ 1,664 $ 164 $ 175 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | Table 11.1: Components of lease expense For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) Operating lease cost $ 118 $ 98 $ 319 $ 296 Short term lease cost 519 468 1,594 1,914 Total lease cost $ 637 $ 566 $ 1,913 $ 2,210 |
Maturities of Lease Liabilities | Table 11.2: Maturities of lease liabilities Operating leases (in thousands) October 1, 2019 through December 31, 2019 $ 156 2020 637 2021 600 2022 — 2023 — Total lease payments $ 1,393 Less imputed interest (70) Present value of lease liabilities $ 1,323 |
Details of Lease Term and Discount Rate | Table 11.3: Details of lease term and discount rate As of September 30, 2019 Weighted-average remaining lease term: Operating leases 3 years Weighted-average discount rate: Operating leases 4.52 % |
Treasury Stock (Tables)
Treasury Stock (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 12: Details of Treasury Stock Activity September 30, 2019 September 30, 2018 Shares Amount (1) Average Share Price (1) Shares Amount (1) Average Share Price (1) (in thousands, except share and share price data) For the Three Months Ended: Beginning Balance 9,851,553 $ 229,073 $ 23.25 7,664,325 $ 167,919 $ 21.91 Repurchases on open market — — — 76,600 2,863 37.38 Ending Balance 9,851,553 $ 229,073 $ 23.25 7,740,925 $ 170,782 $ 22.06 For the Nine Months Ended: Beginning Balance 9,070,346 $ 209,050 $ 23.05 6,788,817 $ 143,357 $ 21.12 Repurchases on open market 781,207 20,023 25.63 952,108 27,425 28.80 Ending Balance 9,851,553 $ 229,073 $ 23.25 7,740,925 $ 170,782 $ 22.06 (1) Includes commissions paid for repurchases on open market. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss)/Income by Category | Table 14: Details of 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, 2018 $ (5,027) $ 1,636 $ (3,391) Other comprehensive income/(loss) before reclassifications 450 (1,883) (1,433) Amounts reclassified from accumulated other comprehensive loss — (164) (164) Net current period other comprehensive income/(loss) 450 (2,047) (1,597) Balance as of September 30, 2019 $ (4,577) $ (411) $ (4,988) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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. There were no anti-dilutive awards during the three months ended September 30, 2019 and 2018. For the nine months ended September 30, 2019 and 2018, awards that had an anti-dilutive impact on the Company's dilutive earnings per share computation excluded from the weighted average shares outstanding were 28,000 and 21,000, respectively. Table 16: Details of Basic and Dilutive Earnings Per Share For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (dollars in thousands, except for share and per share amounts) Net income $ 13,448 $ 18,564 $ 42,222 $ 54,105 Weighted average number of shares outstanding - basic 34,688,206 36,732,746 34,911,640 37,012,536 Effect of dilutive securities: Restricted stock awards — — — 1,170 Restricted stock units 37,656 89,750 37,308 72,650 Performance-based restricted stock units 33,809 68,384 31,679 67,231 Stock options 15,780 28,024 16,067 27,800 Total effect of dilutive securities 87,245 186,158 85,054 168,851 Weighted average number of shares outstanding - diluted 34,775,451 36,918,904 34,996,694 37,181,387 Basic earnings per share $ 0.39 $ 0.51 $ 1.21 $ 1.46 Diluted earnings per share $ 0.39 $ 0.50 $ 1.21 $ 1.46 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Purchase Commitments by Year | Table 17: Details of Purchase Commitments As of September 30, 2019 (in thousands) October 1, 2019 through December 31, 2019 $ 11,460 2020 44,533 2021 42,358 2022 28,033 2023 12,254 Thereafter 48,144 Total $ 186,782 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Table 18.1: Segment Reporting For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) Net Sales: Wallboard $ 124,145 $ 128,101 $ 363,837 $ 376,739 Other 3,294 3,133 9,840 10,565 Total net sales $ 127,439 $ 131,234 $ 373,677 $ 387,304 Operating Income: Wallboard $ 20,635 $ 27,551 $ 64,116 $ 79,702 Other (731) (580) (1,661) (1,409) Total operating income $ 19,904 $ 26,971 $ 62,455 $ 78,293 Adjustments: Interest expense $ (2,220) $ (2,549) $ (7,107) $ (7,963) Losses from equity investment (191) (393) (603) (1,148) Other expense, net (66) (29) (168) (256) Income before provision for income taxes $ 17,427 $ 24,000 $ 54,577 $ 68,926 Depreciation and Amortization: Wallboard $ 10,837 $ 11,299 $ 31,440 $ 32,016 Other 306 281 794 950 Total depreciation and amortization $ 11,143 $ 11,580 $ 32,234 $ 32,966 |
Net Sales By Geographic Region | Table 18.2: Details of Net Sales By Geographic Region For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) United States $ 120,900 $ 125,430 $ 355,807 $ 367,917 Canada 6,539 5,804 17,870 19,387 Net sales $ 127,439 $ 131,234 $ 373,677 $ 387,304 |
Assets By Geographic Region | Table 18.3: Details of Assets By Geographic Region Fixed Assets Total Assets September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 (in thousands) United States $ 278,792 $ 285,202 $ 659,829 $ 655,849 Canada 3,010 3,166 16,796 16,532 Total $ 281,802 $ 288,368 $ 676,625 $ 672,381 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Table 19.1: Fair Value Hierarchy - 2019 As of September 30, 2019 Level 1 Level 2 Level 3 Balance (in thousands) Asset Interest rate swap $ — $ — $ — $ — Commodity derivatives — 1 — 1 Total assets $ — $ 1 $ — $ 1 Liabilities Interest rate swap $ — $ 777 $ — $ 777 Commodity derivatives — 934 — 934 Total liabilities $ — $ 1,711 $ — $ 1,711 Table 19.2: Fair Value Hierarchy - 2018 December 31, 2018 Level 1 Level 2 Level 3 Balance (in thousands) Asset Interest rate swap $ — $ 86 $ — $ 86 Commodity derivatives — 61 — 61 Total assets $ — $ 147 $ — $ 147 Liabilities Interest rate swap $ — $ — $ — $ — Commodity derivatives — 105 — 105 Total liabilities $ — $ 105 $ — $ 105 |
Buchanan Plant Outage (Tables)
Buchanan Plant Outage (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Buchanan Plant Outage | Table 20.1: Details of Insurance Claims and Cash Payments Related to Buchanan Outage Claim Details Cash Details Claim Amount Insurance Deductible Net recovery recorded in nine months ended September 30, 2019 Cash received in the nine months ended September 30, 2019 Receivable Recorded as of September 30, 2019 (in thousands) Rebuild property, plant and equipment damaged (a) $ 1,839 $ 250 $ 1,589 $ 1,589 $ — Directs costs associated with business interruption (b) 3,015 — 3,015 3,015 — Lost operating income associated with lost sales from business interruption (c) 4,861 — 4,861 4,861 — $ 9,715 $ 250 $ 9,465 $ 9,465 $ — (a) The rebuild of property, plant and equipment damaged and related net recovery resulted in a net gain of $1.5 million. (b) Direct costs associated with the business interruption include various expenses such as additional freight to ship to customers at greater distances from other plants, additional freight costs to reroute incoming raw materials and other various costs that were incurred as a result of the Buchanan outage and have been covered by the Company's insurance policy. The net recovery of direct costs associated with business interruption were netted against actual costs incurred resulting in a net impact of zero to the income statement. (c) This represents the insurance proceeds for the lost operating income the Company received related to the Buchanan outage. Table 20.2: Details of Gain from Insurance Recoveries, Net For the Nine Months Ended September 30, 2019 (in thousands) Cost to rebuild property, plant and equipment (capitalized) $ 1,839 Insurance deductible 250 Net recoveries from insurance policy 1,589 Write-off of property, plant and equipment 76 Gain from insurance recoveries, net $ 1,513 |
Background and Nature of Oper_2
Background and Nature of Operations - Description of Business and Acquisition (Detail) | Sep. 30, 2019facility |
Wallboard | |
Business Acquisition [Line Items] | |
Number of operating facilities (facility) | 3 |
Joint Compound | |
Business Acquisition [Line Items] | |
Number of operating facilities (facility) | 1 |
Significant Accounting Polici_4
Significant Accounting Policies - Certain Cash and Non-Cash Transactions (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||
Operating lease cash outflows | $ 464 | $ 451 |
Acquisition of property, plant and equipment included in liabilities | $ 2,486 | $ 3,432 |
Significant Accounting Polici_5
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Property, Plant and Equipment [Line Items] | ||
Operating lease - right of use assets | $ 760 | |
Present value of lease liabilities | $ 1,323 | |
Accounting Standards Update 2016-02 | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease - right of use assets | $ 1,000 | |
Present value of lease liabilities | $ 1,700 |
Trade Receivables, Net - Detail
Trade Receivables, Net - Detail of Receivables, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Trade receivables, gross | $ 44,042 | $ 39,426 |
Allowance for cash discounts and doubtful accounts | (944) | (972) |
Trade receivables, net | $ 43,098 | $ 38,454 |
Inventories, Net (Detail)
Inventories, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | |||
Finished products | $ 6,385 | $ 6,700 | |
Raw materials | 21,474 | 18,388 | |
Supplies and other | 7,627 | 7,137 | |
Inventories, net | $ 35,486 | $ 32,225 | $ 32,225 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment Details (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 477,888 | $ 462,209 |
Accumulated depreciation | (196,086) | (173,841) |
Property, plant and equipment, net | 281,802 | 288,368 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 13,186 | 13,185 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 120,837 | 118,076 |
Plant machinery | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 311,257 | 292,219 |
Mobile equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 16,538 | 15,163 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 16,070 | $ 23,566 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 9 | $ 9.1 | $ 25.5 | $ 25.4 |
Customer Relationships and Ot_3
Customer Relationships and Other Intangibles, Net - Details of Customer Relationships and Other Intangibles, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 135,956 | $ 139,177 |
Accumulated Amortization | (81,506) | (76,497) |
Net | 54,450 | 62,680 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 116,363 | 116,180 |
Accumulated Amortization | (71,453) | (65,738) |
Net | 44,910 | 50,442 |
Purchased software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 9,561 | 8,225 |
Accumulated Amortization | (5,984) | (5,507) |
Net | 3,577 | 2,718 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 10,032 | 14,772 |
Accumulated Amortization | (4,069) | (5,252) |
Net | $ 5,963 | $ 9,520 |
Customer Relationships and Ot_4
Customer Relationships and Other Intangibles, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 2.1 | $ 2.5 | $ 6.8 | $ 7.5 |
Customer Relationships and Ot_5
Customer Relationships and Other Intangibles, Net - Future Amortization Expense of Customer Relationships and Other Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
October 1, 2019 through December 31, 2019 | $ 2,395 | |
2020 | 8,432 | |
2021 | 7,677 | |
2022 | 7,107 | |
2023 | 5,789 | |
Thereafter | 23,050 | |
Net | $ 54,450 | $ 62,680 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Cost of paperboard | $ 12.8 | $ 12.3 | $ 38.2 | $ 37.4 |
Purchase commitments | $ 29.5 |
Accrued and Other Liabilities_2
Accrued and Other Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Employee-related costs | $ 6,656 | $ 10,768 |
Property taxes | 1,731 | 82 |
Income tax | 2,011 | 0 |
Other taxes | 461 | 351 |
Other | 2,306 | 1,614 |
Accrued and other liabilities | $ 13,165 | $ 12,815 |
Debt - Details of Debt (Detail)
Debt - Details of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 06, 2017 | Feb. 21, 2017 | Aug. 18, 2016 | Sep. 30, 2019 | Mar. 31, 2019 |
Debt Instrument [Line Items] | ||||||
Total debt, gross | $ 266,820 | |||||
Less: Original issue discount (net of amortization) | (1,092) | $ (1,285) | ||||
Less: Debt issuance costs | (3,416) | (4,018) | ||||
Total debt | 262,312 | 263,555 | ||||
Less: Current portion of long-term debt | (1,695) | (1,669) | ||||
Long-term debt | $ 261,886 | 260,617 | 261,886 | |||
Term Loan Facility | Amended and Restated Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Total debt, gross | $ 250,620 | 252,658 | ||||
Term Loan Facility | Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Floor rate | 0.75% | 0.75% | ||||
Debt, variable interest rate | 2.00% | 2.25% | 2.50% | 2.75% | 2.00% | |
Industrial Revenue Bonds | Line of Credit | Industrial revenue bonds | ||||||
Debt Instrument [Line Items] | ||||||
Total debt, gross | $ 16,200 | $ 16,200 | ||||
Industrial Revenue Bonds | Line of Credit | Industrial revenue bonds | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt, variable interest rate | 1.50% | |||||
Reduction in rate related to the tax-free interest income | 20.00% |
Debt - Additional Information (
Debt - Additional Information (Detail) | Dec. 31, 2018USD ($) | Dec. 06, 2017 | Feb. 21, 2017 | Aug. 18, 2016USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($)covenant | Sep. 30, 2018USD ($) |
Amended and Restated Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Number of covenants | covenant | 1 | ||||||
Debt covenant trigger, line of credit facility amount less letters of credit threshold | $ 22,500,000 | ||||||
Amended and Restated Credit Agreement | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Leverage ratio (no greater than) | 5 | ||||||
Term Loan Facility | Amended and Restated Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Debt principal amount | $ 275,000,000 | ||||||
Decrease in basis spread, percentage | 0.25% | ||||||
Leverage ratio (no greater than) | 1.1 | 1.1 | |||||
Schedule principal payments | $ 2,000,000 | $ 2,000,000 | |||||
Effective interest rate | 4.50% | ||||||
Term Loan Facility | Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt, variable interest rate | 2.00% | 2.25% | 2.50% | 2.75% | 2.00% | ||
Floor rate | 0.75% | 0.75% | |||||
Debt, variable interest rate if leverage ratio met | 2.00% | ||||||
Line of Credit | Amended and Restated Credit Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility borrowing capacity | $ 75,000,000 | ||||||
Debt, variable interest rate | 2.25% | ||||||
Outstanding amount | $ 0 | $ 0 | $ 0 | ||||
Facility fee, basis points | 0.50% | ||||||
Remaining outstanding | $ 73,700,000 | ||||||
Line of Credit | Industrial revenue bonds | Industrial Revenue Bonds | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility borrowing capacity | $ 28,000,000 | $ 28,000,000 | |||||
Line of Credit | Industrial revenue bonds | Industrial Revenue Bonds | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt, variable interest rate | 1.50% | ||||||
Reduction in rate related to the tax-free interest income | 20.00% |
Debt - Future Minimum Principal
Debt - Future Minimum Principal Payments Due Under the Credit Agreements (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
October 1, 2019 through December 31, 2019 | $ 678 |
2020 | 5,326 |
2021 | 6,196 |
2022 | 6,196 |
2023 | 245,074 |
Thereafter | 3,350 |
Total Payments | $ 266,820 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) MMBTU in Millions | Mar. 29, 2018USD ($) | Sep. 30, 2016 | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)MMBTU | Sep. 30, 2018USD ($) | Dec. 31, 2016USD ($) |
Derivative [Line Items] | |||||||
Derivative net liability position | $ 1,700,000 | $ 1,700,000 | |||||
Collateral posted with counterparties related to derivatives | 0 | $ 0 | |||||
Natural Gas Swap | Cash Flow Hedging | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Aggregate notional amount outstanding (in mmBTUs) | MMBTU | 3 | ||||||
Interest rate swap | Cash Flow Hedging | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Notational amount | $ 100,000,000 | $ 100,000,000 | |||||
Derivative instrument term (not beyond) | 4 years | ||||||
Average fixed rate | 2.46% | 1.323% | |||||
Proceeds from derivative hedges | $ 3,200,000 | ||||||
Unrealized gain amortized into interest expense | $ 200,000 | $ 200,000 | $ 700,000 | $ 500,000 | |||
Interest rate swap | Cash Flow Hedging | Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | |||||||
Derivative [Line Items] | |||||||
Floor rate | 0.75% | 0.75% |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative asset | $ 1 | $ 147 |
Derivative liability | 1,711 | 105 |
Interest rate swap | ||
Derivative [Line Items] | ||
Derivative asset | 0 | 86 |
Derivative liability | 777 | 0 |
Commodity derivatives | ||
Derivative [Line Items] | ||
Derivative asset | 1 | 61 |
Derivative liability | $ 934 | $ 105 |
Derivative Instruments - Gains
Derivative Instruments - Gains (losses) on derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax | $ (244) | $ 152 | $ (1,883) | $ 1,664 |
Gain/(loss) reclassified from AOCI into income (effective portion), net of tax | (237) | 160 | 164 | 175 |
Interest rate swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax | (32) | 145 | (693) | 1,413 |
Gain/(loss) reclassified from AOCI into income (effective portion), net of tax | 190 | 169 | 657 | 379 |
Commodity derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax | (212) | 7 | (1,190) | 251 |
Gain/(loss) reclassified from AOCI into income (effective portion), net of tax | $ (427) | $ (9) | $ (493) | $ (204) |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Renewal term (up to) | 5 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | ||||
Operating lease cost | $ 118 | $ 98 | $ 319 | $ 296 |
Short term lease cost | 519 | 468 | 1,594 | 1,914 |
Total lease cost | $ 637 | $ 566 | $ 1,913 | $ 2,210 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
October 1, 2019 through December 31, 2019 | $ 156 |
2020 | 637 |
2021 | 600 |
2022 | 0 |
2023 | 0 |
Total lease payments | 1,393 |
Less imputed interest | (70) |
Present value of lease liabilities | $ 1,323 |
Leases - Details of Lease Term
Leases - Details of Lease Term and Discount Rate (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term, operating leases | 3 years |
Weighted-average discount rate, operating leases | 4.52% |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) | Sep. 30, 2019 | Feb. 21, 2018 | Nov. 04, 2015 |
Equity [Abstract] | |||
Stock repurchase program authorized amount (up to) | $ 300,000,000 | $ 50,000,000 | |
Stock repurchase program, remaining authorized amount | $ 111,000,000 |
Treasury Stock - Treasury Stock
Treasury Stock - Treasury Stock Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Treasury Stock [Roll Forward] | ||||||||||||
Beginning balance (shares) | 9,851,553 | 9,070,346 | 7,664,325 | 6,788,817 | 9,070,346 | 6,788,817 | 9,070,346 | 6,788,817 | 6,788,817 | |||
Ending balance (shares) | 9,851,553 | 9,851,553 | 7,740,925 | 7,664,325 | 9,851,553 | 7,664,325 | 9,851,553 | 7,740,925 | 9,070,346 | 6,788,817 | ||
Beginning balance | $ 229,073 | $ 209,050 | $ 167,919 | $ 143,357 | $ 209,050 | $ 143,357 | $ 209,050 | $ 143,357 | $ 143,357 | |||
Shares repurchased | $ 15,018 | $ 5,005 | 2,863 | $ 10,012 | $ 14,550 | |||||||
Ending balance | $ 229,073 | $ 229,073 | $ 170,782 | $ 167,919 | $ 229,073 | $ 167,919 | $ 229,073 | $ 170,782 | $ 209,050 | $ 143,357 | ||
Average share price (usd per share) | $ 23.25 | $ 21.91 | $ 23.25 | $ 22.06 | $ 23.05 | $ 21.12 | ||||||
Repurchases on open market | ||||||||||||
Treasury Stock [Roll Forward] | ||||||||||||
Shares repurchased (shares) | 0 | 76,600 | 781,207 | 952,108 | ||||||||
Shares repurchased | $ 0 | $ 2,863 | $ 20,023 | $ 27,425 | ||||||||
Average share price (usd per share) | $ 0 | $ 37.38 | $ 25.63 | $ 28.80 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||||
Compensation expense | $ 0.6 | $ 0.8 | $ 1.7 | $ 2.5 |
Unrecognized compensation expense | $ 4.2 | $ 4.2 | ||
Unrecognized compensation expense, weighted average remaining period | 2 years 6 months |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 327,747 |
Other comprehensive income/(loss) before reclassifications | (1,433) |
Amounts reclassified from accumulated other comprehensive loss | (164) |
Net current period other comprehensive income/(loss) | (1,597) |
Ending Balance | 349,615 |
Foreign currency translation adjustment | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (5,027) |
Other comprehensive income/(loss) before reclassifications | 450 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net current period other comprehensive income/(loss) | 450 |
Ending Balance | (4,577) |
Net unrealized gain on derivatives, net of tax | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 1,636 |
Other comprehensive income/(loss) before reclassifications | (1,883) |
Amounts reclassified from accumulated other comprehensive loss | (164) |
Net current period other comprehensive income/(loss) | (2,047) |
Ending Balance | (411) |
Accumulated Other Comprehensive Loss | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (3,391) |
Ending Balance | $ (4,988) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Scenario, Forecast | |
Income Tax Contingency [Line Items] | |
Effective tax rate | 22.40% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||
Anti-dilutive securities (in shares) | 28,000 | 21,000 | ||||||
Net income | $ 13,448 | $ 12,848 | $ 15,926 | $ 18,564 | $ 21,895 | $ 13,646 | $ 42,222 | $ 54,105 |
Weighted average number of shares outstanding- basic (shares) | 34,688,206 | 36,732,746 | 34,911,640 | 37,012,536 | ||||
Effect of dilutive securities: | ||||||||
Total effect of dilutive securities (shares) | 87,245 | 186,158 | 85,054 | 168,851 | ||||
Weighted average number of shares outstanding - diluted (shares) | 34,775,451 | 36,918,904 | 34,996,694 | 37,181,387 | ||||
Basic earnings per share (usd per share) | $ 0.39 | $ 0.51 | $ 1.21 | $ 1.46 | ||||
Diluted earnings per share (usd per share) | $ 0.39 | $ 0.50 | $ 1.21 | $ 1.46 | ||||
Restricted stock awards | ||||||||
Effect of dilutive securities: | ||||||||
Effect of dilutive securities (shares) | 0 | 0 | 0 | 1,170 | ||||
Restricted stock units | ||||||||
Effect of dilutive securities: | ||||||||
Effect of dilutive securities (shares) | 37,656 | 89,750 | 37,308 | 72,650 | ||||
Performance-based restricted stock units | ||||||||
Effect of dilutive securities: | ||||||||
Effect of dilutive securities (shares) | 33,809 | 68,384 | 31,679 | 67,231 | ||||
Stock options | ||||||||
Effect of dilutive securities: | ||||||||
Effect of dilutive securities (shares) | 15,780 | 28,024 | 16,067 | 27,800 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Letter of Credit | |||||
Long-term Purchase Commitment [Line Items] | |||||
Outstanding amount of letters of credit | $ 1.3 | $ 1.3 | $ 1.4 | ||
Gas, Gypsum, Paper, and Other Raw Materials | |||||
Long-term Purchase Commitment [Line Items] | |||||
Non-capital purchase commitments | $ 20.8 | $ 22.7 | $ 62.2 | $ 69.5 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases and Purchase Commitments by Year (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
As of September 30, 2019 | |
October 1, 2019 through December 31, 2019 | $ 11,460 |
2020 | 44,533 |
2021 | 42,358 |
2022 | 28,033 |
2023 | 12,254 |
Thereafter | 48,144 |
Total | $ 186,782 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - geographic_area | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Number of geographical areas (geographic area) | 2 | 2 | ||
Wallboard | Sales Revenue, Net | Product Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of revenues | 97.40% | 97.60% | 97.40% | 97.30% |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Sales: | ||||
Net Sales | $ 127,439 | $ 131,234 | $ 373,677 | $ 387,304 |
Operating Income: | ||||
Operating income | 19,904 | 26,971 | 62,455 | 78,293 |
Adjustments: | ||||
Interest expense | (2,220) | (2,549) | (7,107) | (7,963) |
Losses from equity investment | (191) | (393) | (603) | (1,148) |
Other expense, net | (66) | (29) | (168) | (256) |
Income before provision for income taxes | 17,427 | 24,000 | 54,577 | 68,926 |
Depreciation and Amortization | ||||
Total depreciation and amortization | 11,143 | 11,580 | 32,234 | 32,966 |
Operating Segments | Wallboard | ||||
Net Sales: | ||||
Net Sales | 124,145 | 128,101 | 363,837 | 376,739 |
Operating Income: | ||||
Operating income | 20,635 | 27,551 | 64,116 | 79,702 |
Depreciation and Amortization | ||||
Total depreciation and amortization | 10,837 | 11,299 | 31,440 | 32,016 |
Operating Segments | Other | ||||
Net Sales: | ||||
Net Sales | 3,294 | 3,133 | 9,840 | 10,565 |
Operating Income: | ||||
Operating income | (731) | (580) | (1,661) | (1,409) |
Depreciation and Amortization | ||||
Total depreciation and amortization | 306 | 281 | 794 | 950 |
Adjustments | ||||
Adjustments: | ||||
Interest expense | (2,220) | (2,549) | (7,107) | (7,963) |
Losses from equity investment | (191) | (393) | (603) | (1,148) |
Other expense, net | $ (66) | $ (29) | $ (168) | $ (256) |
Segment Reporting - Net Sales b
Segment Reporting - Net Sales by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 127,439 | $ 131,234 | $ 373,677 | $ 387,304 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 120,900 | 125,430 | 355,807 | 367,917 |
Canada | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 6,539 | $ 5,804 | $ 17,870 | $ 19,387 |
Segment Reporting - Assets by G
Segment Reporting - Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Fixed Assets | $ 281,802 | $ 288,368 |
Total Assets | 676,625 | 672,381 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Fixed Assets | 278,792 | 285,202 |
Total Assets | 659,829 | 655,849 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Fixed Assets | 3,010 | 3,166 |
Total Assets | $ 16,796 | $ 16,532 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 1 | $ 147 |
Derivative liability | 1,711 | 105 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1 | 147 |
Derivative liability | 1,711 | 105 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1 | 147 |
Derivative liability | 1,711 | 105 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 86 |
Derivative liability | 777 | 0 |
Interest rate swap | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 86 |
Derivative liability | 777 | 0 |
Interest rate swap | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Interest rate swap | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 86 |
Derivative liability | 777 | 0 |
Interest rate swap | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Commodity derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1 | 61 |
Derivative liability | 934 | 105 |
Commodity derivatives | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1 | 61 |
Derivative liability | 934 | 105 |
Commodity derivatives | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Commodity derivatives | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1 | 61 |
Derivative liability | 934 | 105 |
Commodity derivatives | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | $ 0 | $ 0 |
Buchanan Plant Outage - Details
Buchanan Plant Outage - Details of Insurance Claims and Cash Payments Related to Buchanan Outage (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Loss Contingencies [Line Items] | ||||
Gain from insurance recoveries, net | $ 0 | $ 0 | $ 1,513 | $ 0 |
Rebuild of property, plant and equipment damaged | ||||
Loss Contingencies [Line Items] | ||||
Gain from insurance recoveries, net | 1,513 | |||
Claim Amount | 1,839 | |||
Insurance Deductible | 250 | |||
Net recovery recorded in nine months ended September 30, 2019 | 1,589 | |||
Cash received in the nine months ended September 30, 2019 | 1,589 | |||
Receivable Recorded as of September 30, 2019 | 0 | 0 | ||
Directs costs associated with business interruption | ||||
Loss Contingencies [Line Items] | ||||
Claim Amount | 3,015 | |||
Insurance Deductible | 0 | |||
Net recovery recorded in nine months ended September 30, 2019 | 3,015 | |||
Cash received in the nine months ended September 30, 2019 | 3,015 | |||
Receivable Recorded as of September 30, 2019 | 0 | 0 | ||
Lost operating income associated with lost sales from business interruption | ||||
Loss Contingencies [Line Items] | ||||
Gain from insurance recoveries, net | 4,861 | |||
Claim Amount | 4,861 | |||
Insurance Deductible | 0 | |||
Net recovery recorded in nine months ended September 30, 2019 | 4,861 | |||
Receivable Recorded as of September 30, 2019 | 0 | 0 | ||
Total | ||||
Loss Contingencies [Line Items] | ||||
Claim Amount | 9,715 | |||
Insurance Deductible | 250 | |||
Net recovery recorded in nine months ended September 30, 2019 | 9,465 | |||
Cash received in the nine months ended September 30, 2019 | 9,465 | |||
Receivable Recorded as of September 30, 2019 | $ 0 | $ 0 |
Buchanan Plant Outage - Detai_2
Buchanan Plant Outage - Details of Gain from Insurance Recoveries, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Loss Contingencies [Line Items] | ||||
Gain from insurance recoveries, net | $ 0 | $ 0 | $ 1,513 | $ 0 |
Rebuild of property, plant and equipment damaged | ||||
Loss Contingencies [Line Items] | ||||
Cost to rebuild property, plant and equipment (capitalized) | 1,839 | |||
Insurance deductible | 250 | |||
Net recoveries from insurance policy | 1,589 | |||
Write-off of property, plant and equipment | 76 | |||
Gain from insurance recoveries, net | $ 1,513 |
Subsequent Events (Details)
Subsequent Events (Details) | Nov. 12, 2019$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Consideration to common shareholders for merger (in USD per share) | $ 37 |