Continental Building Products, Inc. (Form: 8-K, Received: 11/12/2019 16:23:49)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 12, 2019

Continental Building Products, Inc.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction

of incorporation)

1-36293

(Commission File Number)

61-1718923

(I.R.S. Employer

Identification Number)

12950 Worldgate Drive, Suite 700 Herndon, VA	20170
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (703) 480-3800

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☒	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol (s)	Name of Exchange on Which Registered
Common Stock, $0.001 par value per share	CBPX	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Item 2.02.

Results of Operation and Financial Condition.

On November 12, 2019, Continental Building Products, Inc. (the “Company”) issued a press release (the “Press Release”) to announce its financial results for the third quarter ended September 30, 2019. A copy of the press release is attached as Exhibit 99.1. The information included or incorporated by reference in Item 2.02 of this current report, including Exhibit 99.1, is being furnished to the Securities and Exchange Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 8.01.

Other Events.

The Press Release also announced that the Company entered into a definitive agreement providing for the acquisition of the Company by CertainTeed Gypsum and Ceilings USA, Inc., a Delaware corporation, subject to the terms and conditions contained therein.

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are filed herewith:

Exhibit No.		Description
99.1		Press Release, dated November 12, 2019.

104		Cover Page Interactive Data File – The cover page from the Company’s Current Report on Form 8-K filed on November 12, 2019 is formatted in Inline XBRL (included as Exhibit 101).

Forward-Looking Statements

This communication contains forward-looking statements, including statements related to proposed transaction and other statements regarding the Company’s current expectations, prospects and opportunities. These forward-looking statements are covered by the “Safe Harbor for Forward-Looking Statements” provided by the Private Securities Litigation Reform Act of 1995. The Company has tried to identify these forward looking statements by using words such as “expect,” “anticipate,” “estimate,” “plan,” “will,” “would,” “should,” “could,” “forecast,” “believe,” “guidance,” “projection,” “target” or similar expressions, but these words are not the exclusive means for identifying such statements. The Company cautions that a number of risks, uncertainties and other factors could cause the Company’s actual results to differ materially from those expressed in, or implied by, the forward-looking statements, including, without limitation that the conditions to closing the transaction will be satisfied; the impact of the transaction on the Company’s business, its financial and operating results and its employees, suppliers and customers; factors affecting the feasibility and timing of any transaction or other action, including, without limitation, the ability to obtain required regulatory approvals; and risks related to realization of the expected benefits of the transaction or other action to the Company and its stockholders. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.

Additional Information and Where to Find It

This communication relates to the proposed merger transaction involving the Company. In connection with the proposed merger, the Company will file relevant materials with the SEC, including the Company’s proxy statement on Schedule 14A (the “Proxy Statement”). This communication is not a substitute for the Proxy Statement or any other document that the Company may file with the SEC or send to its stockholders in connection with the proposed merger. BEFORE MAKING ANY VOTING DECISION, STOCKHOLDERS OF THE COMPANY ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain the documents (when available) free of charge at the SEC’s website, http://www.sec.gov, and the Company’s website, https://continental-bp.com/en/home/. In addition, the documents (when available) may be obtained free of charge by directing a request to Investor Relations by email at investorrelations@continental-bp.com or by calling (703) 480-3980.

Participants in Solicitation

The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the holders of the Company’s common stock in respect of the proposed transaction. Information about the directors and executive officers of the Company is set forth in the definitive proxy statement for the Company’s 2019 annual meeting of stockholders, which was filed with the SEC on March 18, 2019, and in other documents filed by the Company with the SEC. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement and other relevant materials to be filed with the SEC in respect of the proposed transaction when they become available.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Continental Building Products, Inc.


November 12, 2019	By:	/s/ Timothy A. Power
Date	Name:_	Timothy A. Power
	Title:	Senior Vice President and General Counsel

Continental Building Products Reports Third Quarter 2019 Results and Announces

Agreement to be Acquired by Saint-Gobain for $37.00 Per Share in Cash

- Transaction Valued at $1.4 Billion and Represents Premium of Approximately 34.4% -

Herndon, Virginia, November 12, 2019. Continental Building Products, Inc. (NYSE: CBPX) (the “Company”), a leading manufacturer of gypsum wallboard and complementary finishing products, announced today results for the third quarter ended September 30, 2019. The Company also announced that it has entered into a definitive agreement pursuant to which it will be acquired by Compagnie de Saint-Gobain S.A. (“Saint-Gobain”) (PAR: SGO) for $37.00 per share in cash.

Highlights of Third Quarter 2019 as Compared to Third Quarter 2018

•

Wallboard sales volumes increased 4.6% to 705 million square feet

•

Net sales decreased 2.9% to $127.4 million

•

Generated cash flows from operations of $24.2 million

•

Deployed $7.5 million in capital investments, primarily for high-return initiatives

•

Fully settled previously-disclosed Buchanan insurance claim and recovered all estimated operating income lost due to the business interruption

“During the quarter we generated significant cash flows from operations and demonstrated the strength of our low cost, highly efficient operations,” stated Jay Bachmann, President and Chief Executive Officer. “Sales volumes improved in the quarter and we continue to be encouraged by strengthening demand in the new home construction market. We remain laser focused on our Bison Way efforts and continue to invest in high-return capital projects to ensure that we are well positioned to provide exceptional value to customers for years to come. I would like to thank all of our associates for their hard work and contributions to our achievements and success.”

Details of Saint-Gobain Acquisition

The Company has signed a definitive merger agreement to be acquired by Saint-Gobain, a worldwide manufacturer and distributor of high performance materials and solutions in the building, transportation, infrastructure and industry markets, in a transaction representing an enterprise value of approximately $1.4 billion. The purchase price represents a premium of approximately 34.4% over Continental Building Product’s volume weighted average share price during the 60 days ended November 11, 2019.

Edward Bosowski, Chairman of Continental Building Products and Mr. Bachmann, stated, “Building on our successful accomplishments since 2013, we are pleased to reach this agreement with Saint-Gobain and to provide liquidity, certainty and compelling value to our stockholders. We believe our combined business will be better positioned to enhance our product offerings, customer relationships and operating platform. With our mutual focus on dedicated service to customers and operational excellence, we believe this transaction provides an opportunity to benefit all of our stakeholders.”

Under the terms of the agreement, the Company will be merged with and into a newly-formed subsidiary of Saint-Gobain and each issued and outstanding share of the Company’s common stock will be converted into the right to receive $37.00 per share in cash.

The transaction has been unanimously approved by the Company’s Board of Directors. The transaction is subject to customary closing conditions, including approval by Continental stockholders and required antitrust approvals.

Citi is serving as exclusive financial advisor and Gibson, Dunn & Crutcher LLP is serving as legal counsel to Continental Building Products.

Third Quarter 2019 Results vs. Third Quarter 2018

Net sales of $127.4 million decreased 2.9%, compared to $131.2 million in the prior year quarter. Wallboard sales volumes increased 4.6% to 705 million square feet (MMSF), compared to 674 MMSF in the prior year quarter, primarily attributable to stronger demand. Average mill net price decreased by 8.4% compared to the prior year quarter, and was down 0.9% sequentially compared to the second quarter 2019.

Operating income was down 26.3% to $19.9 million, compared to $27.0 million in the prior year quarter, mainly due to lower pricing. SG&A expense was $9.6 million compared to $10.0 million in the prior year quarter, or 7.6% of net sales for both periods.

Net interest expense decreased 12.0% to $2.2 million, compared to $2.5 million in the prior year quarter, primarily a result of higher investment income, along with the benefits of a lower spread obtained on the term debt in the fourth quarter 2018.

Net income decreased $5.1 million or 27.6% to $13.4 million, or $0.39 per share, compared to $18.6 million, or $0.51 per share, in the prior year quarter. The $5.1 million decrease in net income was primarily a result of the decrease in net sales.

Balance Sheet and Cash Flow

As of September 30, 2019, the Company had a cash balance of $126.4 million and total outstanding borrowings of $266.8 million. During the third quarter 2019, the Company generated cash flows from operations of $24.2 million and deployed $7.5 million in capital investments.

Buchanan Plant Update

As previously announced, in January 2019 the Company’s Buchanan, New York plant experienced a significant equipment malfunction, resulting in a temporary outage at the plant. The Company has standard insurance coverage that is intended to cover circumstances such as these, including business interruption insurance. During the nine months ended September 30, 2019, the Company recorded $4.9 million of insurance claim proceeds to compensate for estimated operating income associated with the lost sales from business interruption that otherwise would have been made if the plant had been operating normally. As of September 30, 2019, the Company has fully settled the claim and has received all anticipated insurance payments associated with the outage.

Details of Insurance Claims and Cash Payments Related to Buchanan Outage

Rebuild property, plant and equipment damaged (a)

Directs costs associated with business interruption (b)

Lost operating income associated with lost sales from business interruption (c)

(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 amounts reported are for the nine months ending September 30, 2019. 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 and EBITDA¹ the Company received related to the Buchanan outage.

Investor Conference Call

In light of the pending acquisition by Saint-Gobain, Continental Building Products does not plan to host an earnings call nor update its previously-communicated forward-looking outlook.

Saint-Gobain will host an analyst/investor conference call on November 13, 2019 at 8:00 a.m. Paris time (2:00 a.m. Eastern time) to review the proposed transaction. A presentation regarding the transaction will be available on Saint-Gobain’s website at http://www.saint-gobain.com/en/finance/events-and-financial-results. To participate in the call, please dial 1 646 722 4916 (code 32935652#) (international). A replay of the conference call will be available by dialing 1 646 722 4969 (code 418887531#), beginning at 10:30 a.m. Paris time (4:30 a.m. Eastern time).

About Continental Building Products

Continental Building Products is a leading North American manufacturer of gypsum wallboard and complementary finishing products. The Company is headquartered in Herndon, Virginia with operations serving the residential, commercial and repair and remodel construction markets primarily in the eastern United States and eastern Canada. For additional information, visit www.continental-bp.com.

Saint-Gobain designs, manufactures and distributes materials and solutions which are key ingredients in the wellbeing of each of us and the future of all. They can be found everywhere in our living places and our daily life: in buildings, transportation, infrastructure and in many industrial applications. They provide comfort, performance and safety while addressing the challenges of sustainable construction, resource efficiency and climate change. With 2018 sales of $41.8 billion, Saint-Gobain operates in 68 countries and has more than 180,000 employees. For more information about Saint-Gobain, visit www.saint-gobain.com and the twitter account @saintgobain.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on historical information available at the time the statements are made and are based on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.

Additional Information and Where to Find It

Participants in Solicitation

¹ See the financial schedules at the end of this press release for a reconciliation of EBITDA, adjusted EBITDA, adjusted net income and adjusted earnings per share, which are non-GAAP financial measures, to relevant GAAP financial measures, and a discussion of why they are useful to investors.

Tel.: (703) 480-3980

Investorrelations@continental-bp.com

For media inquiries:

Jonathan Gasthalter/Nathaniel Garnick

Continental Building Products, Inc.

Consolidated Statements of Operations

For the Three Months Ended

For the Nine Months Ended

(in thousands, except share data and per share amounts)

Selling and administrative expense

Loss on intangible asset impairment

Gain from insurance recoveries, net

Gain from business interruption insurance

Interest expense, net

Income before losses from equity method investment and provision for income taxes

Losses from equity method investment

Income before provision for income taxes

Provision for income taxes

Net income per share:

Weighted average shares outstanding:

Continental Building Products, Inc.

Consolidated Balance Sheets

Cash and cash equivalents

Trade receivables, net

Prepaid and other current assets

Total current assets

Property, plant and equipment, net

Customer relationships and other intangibles, net

Equity method investment

Operating lease - right of use assets

Liabilities and Shareholders’ Equity:

Accrued and other liabilities

Debt, current portion

Operating lease liabilities, current portion

Total current liabilities

Deferred taxes and other long-term liabilities

Debt, non-current portion

Operating lease liabilities, non-current portion

Shareholders’ Equity:

Undesignated preferred stock, par value $0.001 per share; 10,000,000 shares authorized, no shares issued and outstanding

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

Additional paid-in capital

Less: Treasury stock

Accumulated other comprehensive loss

Accumulated earnings

Total Shareholders’ Equity

Total Liabilities and Shareholders’ Equity

Continental Building Products, Inc.

Consolidated Statements of Cash Flows

For the Nine Months Ended

Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Amortization of debt issuance costs and debt discount

Gain from insurance recoveries, net

Loss on intangible asset impairment

Losses from equity method investment

Amortization of deferred gain on terminated swaps

Share-based compensation

Change in assets and liabilities:

Prepaid expenses and other current assets

Accrued and other current liabilities

Other long-term liabilities

Net cash provided by operating activities

Cash flows from investing activities:

Payments for property, plant and equipment

Payments for intangible assets

Proceeds from insurance recoveries

Capital contributions to equity method investment

Distributions from equity method investment

Net cash used in investing activities

Cash flows from financing activities:

Proceeds from exercise of stock options

Tax withholdings on share-based compensation

Principal payments for debt

Payments to repurchase common stock

Net cash used in financing activities

Effect of foreign exchange rates on cash and cash equivalents

Net change in cash and cash equivalents

Cash, beginning of period

Reconciliation of Non-GAAP Measures

EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted earnings per share have been presented in this press release as supplemental measures of financial performance that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). This release presents EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted earnings per share as supplemental performance measures because management believes that they facilitate a comparative assessment of the Company’s operating performance relative to its performance based on results under GAAP while isolating the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company’s operations and underlying operational performance. Furthermore, the Company’s Board of Directors’ compensation committee uses EBITDA to evaluate management’s compensation. Management also believes that EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted earnings per share are useful to investors because they allow investors to view the business through the eyes of management and the Board of Directors, facilitating comparison of results across historical periods.

EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted earnings per share may not be comparable to similarly titled measures of other companies because other companies may not calculate EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted earnings per share in the same manner. EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted earnings per share are not measurements of the Company’s financial performance under GAAP and should not be considered in isolation or as alternatives to net income or earnings per share determined in accordance with GAAP or any other financial statement data presented as indicators of financial performance or liquidity, each as calculated and presented in accordance with GAAP.

Reconciliation of Net Income to EBITDA and Adjusted EBITDA - Non-GAAP Measures

For the Three Months Ended

For the Nine Months Ended

(unaudited, in thousands)

Interest expense, net

Losses from equity method investment

Provision for income taxes

Depreciation and amortization

EBITDA - Non-GAAP measure

Gain from insurance recoveries, net

Adjusted EBITDA—Non-GAAP Measure

Adjusted EBITDA Margin - Adjusted EBITDA as a percentage of net sales - Non-GAAP measure

Reconciliation of Net Income and Earnings Per Share to Adjusted Net Income and Adjusted Earnings Per Share

For the Three Months Ended

For the Nine Months Ended

(unaudited, in thousands, except share data and per share amounts)

Net income - GAAP measure

Gain from insurance recoveries, net of tax (a)

Non-cash impairment loss, net of tax (b)

Adjusted net income - Non-GAAP measure

Earnings per share - GAAP measure

Gain from insurance recoveries, net of tax (a)

Non-cash impairment loss, net of tax (b)

Adjusted earnings per share - Non-GAAP measure

(a)	Gain from insurance recoveries is shown net of tax expense of $0.3 million for the nine months ended September 30, 2019.

(b)	Loss from non-cash impairment is shown net of tax benefit of $0.7 million for the nine months ended September 30, 2019.

Other Financial and Operating Data

For the Three Months Ended

For the Nine Months Ended

(in thousands, except mill net)

Capital expenditures and software purchased or developed

Wallboard sales volume (million square feet)

Mill net sales price (a)

(a)	Mill net sales price represents average selling price per thousand square feet net of freight and delivery costs.

Interim Volumes and Mill Net Prices

For the Three Months Ended

Volumes (million square feet)

Mill net sales price (a)

(a)	Mill net sales price represents average selling price per thousand square feet net of freight and delivery costs.

	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	$	—

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
	(in thousands, except share data and per share amounts)
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		—			—			2,911			—
Gain from insurance recoveries, net		—			—			1,513			—
Gain from business interruption insurance		1,623			—			4,861			—
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	$	0.39		$	0.51		$	1.21		$	1.46
Diluted	$	0.39		$	0.50		$	1.21		$	1.46
Weighted average shares outstanding:
Basic		34,688,206			36,732,746			34,911,640			37,012,536
Diluted		34,775,451			36,918,904			34,996,694			37,181,387

	September 30, 2019			December 31, 2018
	(unaudited)
	(in thousands)
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 and Shareholders’ Equity:
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		—			—
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

	For the Nine Months Ended
	September 30, 2019			September 30, 2018
	(in thousands)
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	)		—
Loss on intangible asset impairment		2,911			—
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		—			(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

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
	(unaudited, in thousands)
Net income	$	13,448		$	18,564		$	42,222		$	54,105
Adjustments:
Other expense, net		66			29			168			256
Interest expense, net		2,220			2,549			7,107			7,963
Losses from equity method investment		191			393			603			1,148
Provision for income taxes		3,979			5,436			12,355			14,821
Depreciation and amortization		11,143			11,580			32,234			32,966
EBITDA - Non-GAAP measure	$	31,047		$	38,551		$	94,689		$	111,259
Gain from insurance recoveries, net		—			—			(1,513	)		—
Non-cash impairment		—			—			2,911			—
Adjusted EBITDA—Non-GAAP Measure	$	31,047		$	38,551		$	96,087		$	111,259
Adjusted EBITDA Margin - Adjusted EBITDA as a percentage of net sales - Non-GAAP measure		24.4	%		29.4	%		25.7	%		28.7	%