| Debt
|
|
|
|
|
|
|
|
(a) | Basis of Presentation |
(b) | Basis of Presentation for Interim Periods |
(c) | Supplemental Cash Flow Disclosure |
Table 2.1: Certain Cash and Non-Cash Transactions | |||||||
For the Three Months Ended | |||||||
March 31, 2017 | March 31, 2016 | ||||||
(in thousands) | |||||||
Cash paid during the period for: | |||||||
Interest paid on term loan | $ | 2,457 | $ | 3,003 | |||
Income taxes paid, net | 216 | 3,554 | |||||
Non-cash activity: | |||||||
Amounts in accounts payable for capital expenditures | 915 | 877 |
(d) | Recent Accounting Pronouncements |
|
Table 3.1: Detail of Receivables, Net | |||||||
March 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Trade receivables, gross | $ | 42,656 | $ | 33,199 | |||
Allowance for cash discounts and doubtful accounts | (927 | ) | (726 | ) | |||
Receivables, net | $ | 41,729 | $ | 32,473 |
|
Table 4: Composition of Inventories | |||||||
March 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Finished products | $ | 6,468 | $ | 7,246 | |||
Raw materials | 12,953 | 10,910 | |||||
Supplies and other | 7,113 | 7,083 | |||||
Inventories, net | $ | 26,534 | $ | 25,239 |
|
Table 5: Property, Plant and Equipment Details | |||||||
March 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Land | $ | 12,925 | $ | 12,925 | |||
Buildings | 112,625 | 112,583 | |||||
Plant machinery | 280,819 | 275,010 | |||||
Mobile equipment | 9,790 | 6,721 | |||||
Construction in progress | 9,410 | 15,016 | |||||
Property, plant and equipment, at cost | 425,569 | 422,255 | |||||
Accumulated depreciation | (122,062 | ) | (114,417 | ) | |||
Property, plant and equipment, net | $ | 303,507 | $ | 307,838 |
|
Table 6.1: Details of Customer Relationships and Other Intangibles, Net | |||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Customer relationships | $ | 116,320 | $ | (50,707 | ) | $ | 65,613 | $ | 116,267 | $ | (48,243 | ) | $ | 68,024 | |||||||||
Purchased and internally developed software | 5,322 | (3,787 | ) | 1,535 | 5,322 | (3,289 | ) | 2,033 | |||||||||||||||
Trademarks | 14,790 | (3,533 | ) | 11,257 | 14,783 | (3,285 | ) | 11,498 | |||||||||||||||
Total | $ | 136,432 | $ | (58,027 | ) | $ | 78,405 | $ | 136,372 | $ | (54,817 | ) | $ | 81,555 |
Table 6.2: Future Amortization Expense of Customer Relationships and Other Intangibles | |||
As of March 31, 2017 | |||
(in thousands) | |||
April 1, 2017 through December 31, 2017 | $ | 8,790 | |
2018 | 9,448 | ||
2019 | 8,399 | ||
2020 | 7,612 | ||
2021 | 7,016 | ||
Thereafter | 37,140 | ||
Total | $ | 78,405 |
|
|
Table 8: Details of Accrued and Other Liabilities | |||||||
March 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Employee-related costs | $ | 3,273 | $ | 9,595 | |||
Income taxes | 5,245 | — | |||||
Other taxes | 2,975 | 2,088 | |||||
Other | 892 | 638 | |||||
Accrued and other liabilities | $ | 12,385 | $ | 12,321 |
|
Table 9.1: Details of Debt | |||||||
March 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
First Lien Credit Agreement (a) | $ | 272,941 | $ | 273,625 | |||
Less: Original issue discount (net of amortization) | (1,877 | ) | (1,946 | ) | |||
Less: Debt issuance costs | (5,134 | ) | (5,317 | ) | |||
Total debt | 265,930 | 266,362 | |||||
Less: Current portion of long-term debt | (1,727 | ) | (1,742 | ) | |||
Long-term debt | $ | 264,203 | $ | 264,620 |
(a) | As of March 31, 2017, the Amended and Restated Credit Agreement, as amended, had a maturity date of August 18, 2023 and an interest rate of LIBOR (with a 0.75% floor) plus 2.50%, compared to as of December 31, 2016, at which time the First Lien Credit Agreement had the same maturity date and an interest rate of LIBOR (with a 0.75% floor) plus 2.75%. |
Table 9.2: Future Minimum Principal Payments Due Under the Amended and Restated Credit Agreements | |||
Amount Due | |||
(in thousands) | |||
April 1, 2017 through December 31, 2017 | $ | 2,052 | |
2018 | 2,736 | ||
2019 | 2,736 | ||
2020 | 2,736 | ||
2021 | 2,736 | ||
Thereafter | 259,945 | ||
Total Payments | $ | 272,941 |
|
|
Table 11: Treasury Stock Activity | |||||||||||||||||||||
March 31, 2017 | March 31, 2016 | ||||||||||||||||||||
Shares | Amount (a) | Average Share Price (a) | Shares | Amount (a) | Average Share Price (a) | ||||||||||||||||
(in thousands, except share data) | |||||||||||||||||||||
For the Three Months Ended: | |||||||||||||||||||||
Beginning Balance | 4,499,655 | $ | 88,756 | $ | 19.73 | 2,395,049 | $ | 48,479 | $ | 20.24 | |||||||||||
Repurchases on open market | 217,123 | 5,237 | 24.12 | 151,159 | 2,536 | 16.78 | |||||||||||||||
Repurchase from LSF8 in private transaction | — | — | — | 900,000 | 14,490 | 16.10 | |||||||||||||||
Ending Balance | 4,716,778 | $ | 93,993 | $ | 19.93 | 3,446,208 | $ | 65,505 | $ | 19.01 | |||||||||||
(a) Includes commissions paid for repurchases on open market. |
|
Table 13: Changes in Accumulated Other Comprehensive Loss by Category | |||||||||||
Foreign currency translation adjustment | Net unrealized gain on derivatives, net of tax | Total | |||||||||
(in thousands) | |||||||||||
Balance as of December 31, 2016 | (4,778 | ) | 1,369 | (3,409 | ) | ||||||
Other comprehensive income before reclassifications | 124 | (68 | ) | 56 | |||||||
Amounts reclassified from AOCI | — | 88 | 88 | ||||||||
Net current-period other comprehensive income | 124 | 20 | 144 | ||||||||
Balance as of March 31, 2017 | $ | (4,654 | ) | $ | 1,389 | $ | (3,265 | ) |
|
|
Table 16: Future Minimum Lease Payments Due Under Noncancellable Operating Leases and Purchase Commitments | |||||||
Future Minimum Lease Payments | Purchase Commitments | ||||||
(in thousands) | |||||||
April 1, 2017 through December 31, 2017 | $ | 902 | $ | 25,693 | |||
2018 | 616 | 26,500 | |||||
2019 | 1,494 | 26,593 | |||||
2020 | — | 17,379 | |||||
2021 | — | 5,237 | |||||
Thereafter | — | 64,256 | |||||
Total | $ | 3,012 | $ | 165,658 |
|
Table 17.1: Segment Reporting | |||||||
For the Three Months Ended | |||||||
March 31, 2017 | March 31, 2016 | ||||||
(in thousands) | |||||||
Net Sales: | |||||||
Wallboard | $ | 116,476 | $ | 107,599 | |||
Other | 4,139 | 3,886 | |||||
Total net sales | 120,615 | 111,485 | |||||
Operating income: | |||||||
Wallboard | 21,592 | 22,404 | |||||
Other | 95 | 166 | |||||
Total operating income | 21,687 | 22,570 | |||||
Adjustments: | |||||||
Interest expense | (2,916 | ) | (3,698 | ) | |||
Loss from equity investment | (170 | ) | (195 | ) | |||
Other (expense)/income, net | (644 | ) | 154 | ||||
Income before provision for income taxes | 17,957 | 18,831 | |||||
Depreciation and Amortization: | |||||||
Wallboard | 11,022 | 11,674 | |||||
Other | 264 | 272 | |||||
Total depreciation and amortization | $ | 11,286 | $ | 11,946 |
Table 17.2: Net Sales By Geographic Region | |||||||
For the Three Months Ended | |||||||
March 31, 2017 | March 31, 2016 | ||||||
(in thousands) | |||||||
United States | $ | 110,386 | $ | 103,642 | |||
Canada | 10,229 | 7,843 | |||||
Net sales | $ | 120,615 | $ | 111,485 |
Table 17.3: Assets By Geographic Region | |||||||||||||||
Fixed Assets | Total Assets | ||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | ||||||||||||
(in thousands) | |||||||||||||||
United States | $ | 300,342 | $ | 304,807 | $ | 623,625 | $ | 617,050 | |||||||
Canada | 3,165 | 3,031 | 18,698 | 17,699 | |||||||||||
Total | $ | 303,507 | $ | 307,838 | $ | 642,323 | $ | 634,749 |
|
• | Level 1—Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities that a Company has the ability to access; |
• | Level 2—Inputs, other than the quoted market prices included in Level 1, which are observable for the asset or liability, either directly or indirectly; and |
• | Level 3—Unobservable inputs for the asset or liability which is typically based on an entity’s own assumptions when there is little, if any, related market data available. |
|
|
Table 2.1: Certain Cash and Non-Cash Transactions | |||||||
For the Three Months Ended | |||||||
March 31, 2017 | March 31, 2016 | ||||||
(in thousands) | |||||||
Cash paid during the period for: | |||||||
Interest paid on term loan | $ | 2,457 | $ | 3,003 | |||
Income taxes paid, net | 216 | 3,554 | |||||
Non-cash activity: | |||||||
Amounts in accounts payable for capital expenditures | 915 | 877 |
|
Table 3.1: Detail of Receivables, Net | |||||||
March 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Trade receivables, gross | $ | 42,656 | $ | 33,199 | |||
Allowance for cash discounts and doubtful accounts | (927 | ) | (726 | ) | |||
Receivables, net | $ | 41,729 | $ | 32,473 |
|
Table 4: Composition of Inventories | |||||||
March 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Finished products | $ | 6,468 | $ | 7,246 | |||
Raw materials | 12,953 | 10,910 | |||||
Supplies and other | 7,113 | 7,083 | |||||
Inventories, net | $ | 26,534 | $ | 25,239 |
|
Table 5: Property, Plant and Equipment Details | |||||||
March 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Land | $ | 12,925 | $ | 12,925 | |||
Buildings | 112,625 | 112,583 | |||||
Plant machinery | 280,819 | 275,010 | |||||
Mobile equipment | 9,790 | 6,721 | |||||
Construction in progress | 9,410 | 15,016 | |||||
Property, plant and equipment, at cost | 425,569 | 422,255 | |||||
Accumulated depreciation | (122,062 | ) | (114,417 | ) | |||
Property, plant and equipment, net | $ | 303,507 | $ | 307,838 |
|
Table 6.1: Details of Customer Relationships and Other Intangibles, Net | |||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Customer relationships | $ | 116,320 | $ | (50,707 | ) | $ | 65,613 | $ | 116,267 | $ | (48,243 | ) | $ | 68,024 | |||||||||
Purchased and internally developed software | 5,322 | (3,787 | ) | 1,535 | 5,322 | (3,289 | ) | 2,033 | |||||||||||||||
Trademarks | 14,790 | (3,533 | ) | 11,257 | 14,783 | (3,285 | ) | 11,498 | |||||||||||||||
Total | $ | 136,432 | $ | (58,027 | ) | $ | 78,405 | $ | 136,372 | $ | (54,817 | ) | $ | 81,555 |
Table 6.2: Future Amortization Expense of Customer Relationships and Other Intangibles | |||
As of March 31, 2017 | |||
(in thousands) | |||
April 1, 2017 through December 31, 2017 | $ | 8,790 | |
2018 | 9,448 | ||
2019 | 8,399 | ||
2020 | 7,612 | ||
2021 | 7,016 | ||
Thereafter | 37,140 | ||
Total | $ | 78,405 |
|
Table 8: Details of Accrued and Other Liabilities | |||||||
March 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Employee-related costs | $ | 3,273 | $ | 9,595 | |||
Income taxes | 5,245 | — | |||||
Other taxes | 2,975 | 2,088 | |||||
Other | 892 | 638 | |||||
Accrued and other liabilities | $ | 12,385 | $ | 12,321 |
|
Table 9.1: Details of Debt | |||||||
March 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
First Lien Credit Agreement (a) | $ | 272,941 | $ | 273,625 | |||
Less: Original issue discount (net of amortization) | (1,877 | ) | (1,946 | ) | |||
Less: Debt issuance costs | (5,134 | ) | (5,317 | ) | |||
Total debt | 265,930 | 266,362 | |||||
Less: Current portion of long-term debt | (1,727 | ) | (1,742 | ) | |||
Long-term debt | $ | 264,203 | $ | 264,620 |
Table 9.2: Future Minimum Principal Payments Due Under the Amended and Restated Credit Agreements | |||
Amount Due | |||
(in thousands) | |||
April 1, 2017 through December 31, 2017 | $ | 2,052 | |
2018 | 2,736 | ||
2019 | 2,736 | ||
2020 | 2,736 | ||
2021 | 2,736 | ||
Thereafter | 259,945 | ||
Total Payments | $ | 272,941 |
|
Table 11: Treasury Stock Activity | |||||||||||||||||||||
March 31, 2017 | March 31, 2016 | ||||||||||||||||||||
Shares | Amount (a) | Average Share Price (a) | Shares | Amount (a) | Average Share Price (a) | ||||||||||||||||
(in thousands, except share data) | |||||||||||||||||||||
For the Three Months Ended: | |||||||||||||||||||||
Beginning Balance | 4,499,655 | $ | 88,756 | $ | 19.73 | 2,395,049 | $ | 48,479 | $ | 20.24 | |||||||||||
Repurchases on open market | 217,123 | 5,237 | 24.12 | 151,159 | 2,536 | 16.78 | |||||||||||||||
Repurchase from LSF8 in private transaction | — | — | — | 900,000 | 14,490 | 16.10 | |||||||||||||||
Ending Balance | 4,716,778 | $ | 93,993 | $ | 19.93 | 3,446,208 | $ | 65,505 | $ | 19.01 | |||||||||||
(a) Includes commissions paid for repurchases on open market. |
|
Table 13: Changes in Accumulated Other Comprehensive Loss by Category | |||||||||||
Foreign currency translation adjustment | Net unrealized gain on derivatives, net of tax | Total | |||||||||
(in thousands) | |||||||||||
Balance as of December 31, 2016 | (4,778 | ) | 1,369 | (3,409 | ) | ||||||
Other comprehensive income before reclassifications | 124 | (68 | ) | 56 | |||||||
Amounts reclassified from AOCI | — | 88 | 88 | ||||||||
Net current-period other comprehensive income | 124 | 20 | 144 | ||||||||
Balance as of March 31, 2017 | $ | (4,654 | ) | $ | 1,389 | $ | (3,265 | ) |
|
Table 16: Future Minimum Lease Payments Due Under Noncancellable Operating Leases and Purchase Commitments | |||||||
Future Minimum Lease Payments | Purchase Commitments | ||||||
(in thousands) | |||||||
April 1, 2017 through December 31, 2017 | $ | 902 | $ | 25,693 | |||
2018 | 616 | 26,500 | |||||
2019 | 1,494 | 26,593 | |||||
2020 | — | 17,379 | |||||
2021 | — | 5,237 | |||||
Thereafter | — | 64,256 | |||||
Total | $ | 3,012 | $ | 165,658 |
|
Table 17.1: Segment Reporting | |||||||
For the Three Months Ended | |||||||
March 31, 2017 | March 31, 2016 | ||||||
(in thousands) | |||||||
Net Sales: | |||||||
Wallboard | $ | 116,476 | $ | 107,599 | |||
Other | 4,139 | 3,886 | |||||
Total net sales | 120,615 | 111,485 | |||||
Operating income: | |||||||
Wallboard | 21,592 | 22,404 | |||||
Other | 95 | 166 | |||||
Total operating income | 21,687 | 22,570 | |||||
Adjustments: | |||||||
Interest expense | (2,916 | ) | (3,698 | ) | |||
Loss from equity investment | (170 | ) | (195 | ) | |||
Other (expense)/income, net | (644 | ) | 154 | ||||
Income before provision for income taxes | 17,957 | 18,831 | |||||
Depreciation and Amortization: | |||||||
Wallboard | 11,022 | 11,674 | |||||
Other | 264 | 272 | |||||
Total depreciation and amortization | $ | 11,286 | $ | 11,946 |
Table 17.2: Net Sales By Geographic Region | |||||||
For the Three Months Ended | |||||||
March 31, 2017 | March 31, 2016 | ||||||
(in thousands) | |||||||
United States | $ | 110,386 | $ | 103,642 | |||
Canada | 10,229 | 7,843 | |||||
Net sales | $ | 120,615 | $ | 111,485 |
Table 17.3: Assets By Geographic Region | |||||||||||||||
Fixed Assets | Total Assets | ||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | ||||||||||||
(in thousands) | |||||||||||||||
United States | $ | 300,342 | $ | 304,807 | $ | 623,625 | $ | 617,050 | |||||||
Canada | 3,165 | 3,031 | 18,698 | 17,699 | |||||||||||
Total | $ | 303,507 | $ | 307,838 | $ | 642,323 | $ | 634,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|