|
Delaware
|
26-4687975
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Two Lakeside Commons
980 Hammond Drive NE, Suite 500
Atlanta, Georgia
|
30328
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
|
x
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
o
|
|
|
Emerging growth company
|
o
|
|
|
PART I - FINANCIAL INFORMATION
|
|
Item 1
|
|
|
|
||
|
||
|
||
|
||
Item 2
|
||
Item 3
|
||
Item 4
|
||
|
PART II - OTHER INFORMATION
|
|
Item 1
|
||
Item 1A
|
||
Item 2
|
||
Item 3
|
||
Item 4
|
||
Item 5
|
||
Item 6
|
||
|
(in thousands, except share and per share amounts)
|
March 31,
2018 |
|
December 31,
2017 |
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
9,002
|
|
|
$
|
11,750
|
|
Accounts receivable, net of allowances
|
353,749
|
|
|
322,892
|
|
||
Inventories, net
|
338,767
|
|
|
309,060
|
|
||
Contract assets
|
36,613
|
|
|
—
|
|
||
Costs in excess of billings on uncompleted contracts
|
—
|
|
|
28,738
|
|
||
Income taxes receivable
|
2,288
|
|
|
3,748
|
|
||
Prepaid expenses and other current assets
|
55,055
|
|
|
57,949
|
|
||
Total current assets
|
795,474
|
|
|
734,137
|
|
||
Property and equipment, net of accumulated depreciation
|
295,897
|
|
|
295,820
|
|
||
Customer relationship intangible assets, net of accumulated amortization
|
169,783
|
|
|
166,306
|
|
||
Other intangible assets, net of accumulated amortization
|
1,222
|
|
|
1,306
|
|
||
Goodwill
|
263,999
|
|
|
261,792
|
|
||
Other long-term assets
|
17,133
|
|
|
13,989
|
|
||
Total assets
|
$
|
1,543,508
|
|
|
$
|
1,473,350
|
|
Liabilities and Stockholders' Equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable
|
$
|
216,558
|
|
|
$
|
174,583
|
|
Accrued expenses and other liabilities
|
83,052
|
|
|
96,262
|
|
||
Contract liabilities
|
29,089
|
|
|
—
|
|
||
Billings in excess of costs on uncompleted contracts
|
—
|
|
|
18,428
|
|
||
Interest payable
|
9,597
|
|
|
4,769
|
|
||
Current portion:
|
|
|
|
||||
Long-term debt and capital lease obligations
|
7,373
|
|
|
7,739
|
|
||
Insurance reserves
|
13,786
|
|
|
13,496
|
|
||
Total current liabilities
|
359,455
|
|
|
315,277
|
|
||
Insurance reserves
|
38,251
|
|
|
38,470
|
|
||
Long-term debt
|
356,971
|
|
|
349,059
|
|
||
Long-term portion of capital lease obligations
|
13,146
|
|
|
14,838
|
|
||
Deferred income taxes
|
5,578
|
|
|
1,768
|
|
||
Other long-term liabilities
|
6,532
|
|
|
7,039
|
|
||
Total liabilities
|
779,933
|
|
|
726,451
|
|
||
Commitments and contingencies (Note 8)
|
|
|
|
||||
Stockholders' equity
|
|
|
|
||||
Preferred stock, $0.01 par value, 50.0 million shares authorized, no shares issued and outstanding at March 31, 2018 and December 31, 2017
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value, 300.0 million shares authorized, 67.5 million and 67.3 million shares issued, and 67.2 million and 67.1 million outstanding at March 31, 2018 and December 31, 2017, respectively
|
675
|
|
|
673
|
|
||
Additional paid-in capital
|
661,818
|
|
|
659,440
|
|
||
Retained earnings
|
105,966
|
|
|
90,607
|
|
||
Treasury stock, at cost, 0.3 million and 0.2 million shares at March 31, 2018 and December 31, 2017, respectively
|
(4,884
|
)
|
|
(3,821
|
)
|
||
Total stockholders' equity
|
763,575
|
|
|
746,899
|
|
||
Total liabilities and stockholders' equity
|
$
|
1,543,508
|
|
|
$
|
1,473,350
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands, except per share amounts)
|
2018
|
|
2017
|
||||
Net sales
|
|
|
|
||||
Building products
|
$
|
645,954
|
|
|
$
|
572,120
|
|
Construction services
|
188,248
|
|
|
185,580
|
|
||
|
834,202
|
|
|
757,700
|
|
||
Cost of sales
|
|
|
|
||||
Building products
|
480,301
|
|
|
426,083
|
|
||
Construction services
|
154,817
|
|
|
153,420
|
|
||
|
635,118
|
|
|
579,503
|
|
||
Gross profit
|
199,084
|
|
|
178,197
|
|
||
|
|
|
|
||||
Selling, general and administrative expenses
|
160,204
|
|
|
148,888
|
|
||
Depreciation expense
|
9,506
|
|
|
10,561
|
|
||
Amortization expense
|
3,657
|
|
|
3,821
|
|
||
Merger and integration costs
|
1,687
|
|
|
4,441
|
|
||
|
175,054
|
|
|
167,711
|
|
||
Income from operations
|
24,030
|
|
|
10,486
|
|
||
Other income (expense)
|
|
|
|
||||
Interest expense
|
(5,982
|
)
|
|
(6,088
|
)
|
||
Other income, net
|
1,950
|
|
|
319
|
|
||
Income before income taxes
|
19,998
|
|
|
4,717
|
|
||
Income tax expense
|
4,639
|
|
|
973
|
|
||
Net income
|
$
|
15,359
|
|
|
$
|
3,744
|
|
|
|
|
|
||||
Weighted average common shares outstanding
|
|
|
|
||||
Basic
|
67,138
|
|
|
66,692
|
|
||
Diluted
|
67,664
|
|
|
67,186
|
|
||
|
|
|
|
||||
Net income per common share
|
|
|
|
||||
Basic
|
$
|
0.23
|
|
|
$
|
0.06
|
|
Diluted
|
$
|
0.23
|
|
|
$
|
0.06
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
15,359
|
|
|
$
|
3,744
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation expense
|
12,024
|
|
|
12,992
|
|
||
Amortization of intangible assets
|
3,657
|
|
|
3,821
|
|
||
Amortization of debt issuance costs
|
421
|
|
|
421
|
|
||
Deferred income taxes
|
3,810
|
|
|
760
|
|
||
Non-cash stock compensation expense
|
1,775
|
|
|
1,231
|
|
||
Loss on sale of property, equipment and real estate
|
38
|
|
|
107
|
|
||
Other non-cash adjustments
|
619
|
|
|
(314
|
)
|
||
Change in assets and liabilities, net of effects of acquisitions
|
|
|
|
||||
Accounts receivable, net of allowances
|
(33,462
|
)
|
|
(29,086
|
)
|
||
Inventories, net
|
(24,042
|
)
|
|
(22,030
|
)
|
||
Accounts payable
|
40,212
|
|
|
30,868
|
|
||
Other assets and liabilities
|
2,801
|
|
|
(6,420
|
)
|
||
Net cash provided by (used in) operating activities
|
23,212
|
|
|
(3,906
|
)
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchases of businesses, net of cash acquired
|
(20,970
|
)
|
|
(6,693
|
)
|
||
Purchases of property, equipment and real estate
|
(10,244
|
)
|
|
(10,662
|
)
|
||
Insurance proceeds
|
1,991
|
|
|
—
|
|
||
Proceeds from sale of property, equipment and real estate
|
127
|
|
|
866
|
|
||
Net cash used in investing activities
|
(29,096
|
)
|
|
(16,489
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Proceeds from revolving line of credit
|
235,345
|
|
|
175,058
|
|
||
Repayments of proceeds from revolving line of credit
|
(227,616
|
)
|
|
(155,313
|
)
|
||
Payments on capital lease obligations
|
(2,059
|
)
|
|
(2,667
|
)
|
||
Principal payments on other notes
|
(25
|
)
|
|
(2,557
|
)
|
||
Other financing activities, net
|
(2,509
|
)
|
|
1,735
|
|
||
Net cash provided by financing activities
|
3,136
|
|
|
16,256
|
|
||
Net decrease in cash and cash equivalents
|
(2,748
|
)
|
|
(4,139
|
)
|
||
Cash and cash equivalents
|
|
|
|
||||
Beginning of period
|
11,750
|
|
|
8,917
|
|
||
End of period
|
$
|
9,002
|
|
|
$
|
4,778
|
|
|
|
|
|
||||
Supplemental disclosure of non-cash investing and financing transactions
|
|
|
|
||||
Acquisition-related holdback payments due at future date
|
$
|
1,460
|
|
|
$
|
375
|
|
Assets acquired under capital lease obligations
|
—
|
|
|
1,765
|
|
(in thousands)
|
March 31,
2018 |
|
December 31,
2017 |
||||
Trade receivables
|
$
|
361,722
|
|
|
$
|
333,954
|
|
Allowance for doubtful accounts
|
(5,333
|
)
|
|
(4,771
|
)
|
||
Sales returns allowance (a)
|
—
|
|
|
(4,127
|
)
|
||
Other allowances
|
(2,640
|
)
|
|
(2,164
|
)
|
||
|
$
|
353,749
|
|
|
$
|
322,892
|
|
(in thousands)
|
March 31,
2018 |
|
December 31,
2017 |
||||
Senior secured notes, due 2024
|
$
|
350,000
|
|
|
$
|
350,000
|
|
Revolving credit agreement
|
12,191
|
|
|
4,462
|
|
||
Other
|
311
|
|
|
336
|
|
||
|
362,502
|
|
|
354,798
|
|
||
Unamortized debt issuance costs related to senior secured notes
|
(5,430
|
)
|
|
(5,639
|
)
|
||
|
357,072
|
|
|
349,159
|
|
||
Less: Current portion of long-term debt
|
101
|
|
|
100
|
|
||
|
$
|
356,971
|
|
|
$
|
349,059
|
|
(in thousands)
|
December 31, 2017
|
|
Adoption of Topic 606
|
|
January 1, 2018
|
||||||
Accounts receivable, net of allowances
|
$
|
322,892
|
|
|
$
|
(8,884
|
)
|
|
$
|
314,008
|
|
Inventories, net
|
309,060
|
|
|
(3,128
|
)
|
|
305,932
|
|
|||
Contract assets
|
—
|
|
|
38,557
|
|
|
38,557
|
|
|||
Costs in excess of billings on uncompleted contracts
|
28,738
|
|
|
(28,738
|
)
|
|
—
|
|
|||
Prepaid expenses and other current assets
|
57,949
|
|
|
3,128
|
|
|
61,077
|
|
|||
Total assets
|
1,473,350
|
|
|
935
|
|
|
1,474,285
|
|
|||
|
|
|
|
|
|
||||||
Accrued expenses and other liabilities
|
96,262
|
|
|
(6,967
|
)
|
|
89,295
|
|
|||
Contract liabilities
|
—
|
|
|
26,330
|
|
|
26,330
|
|
|||
Billings in excess of costs on uncompleted contracts
|
18,428
|
|
|
(18,428
|
)
|
|
—
|
|
|||
Total liabilities
|
726,451
|
|
|
935
|
|
|
727,386
|
|
|||
|
|
|
|
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
1,473,350
|
|
|
$
|
935
|
|
|
$
|
1,474,285
|
|
(in thousands)
|
Balances without Adoption of Topic 606
|
|
Adjustments
|
|
As Reported
|
||||||
Accounts receivable, net of allowances
|
$
|
361,631
|
|
|
$
|
(7,882
|
)
|
|
$
|
353,749
|
|
Inventories, net
|
342,735
|
|
|
(3,968
|
)
|
|
338,767
|
|
|||
Contract assets
|
—
|
|
|
36,613
|
|
|
36,613
|
|
|||
Costs in excess of billings on uncompleted contracts
|
26,912
|
|
|
(26,912
|
)
|
|
—
|
|
|||
Prepaid expenses and other current assets
|
51,087
|
|
|
3,968
|
|
|
55,055
|
|
|||
Total assets
|
1,541,689
|
|
|
1,819
|
|
|
1,543,508
|
|
|||
|
|
|
|
|
|
||||||
Accrued expenses and other liabilities
|
89,700
|
|
|
(6,648
|
)
|
|
83,052
|
|
|||
Contract liabilities
|
—
|
|
|
29,089
|
|
|
29,089
|
|
|||
Billings in excess of costs on uncompleted contracts
|
20,622
|
|
|
(20,622
|
)
|
|
—
|
|
|||
Total liabilities
|
778,114
|
|
|
1,819
|
|
|
779,933
|
|
|||
|
|
|
|
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
1,541,689
|
|
|
$
|
1,819
|
|
|
$
|
1,543,508
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2018
|
|
2017
|
||||
Structural components
|
$
|
135,829
|
|
|
$
|
109,891
|
|
Lumber & lumber sheet goods
|
288,086
|
|
|
244,436
|
|
||
Millwork, doors & windows
|
229,518
|
|
|
210,751
|
|
||
Other building products & services
|
180,769
|
|
|
192,622
|
|
||
Total net sales
|
$
|
834,202
|
|
|
$
|
757,700
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2018
|
|
2017
|
||||
Single-family homebuilders
|
$
|
637,308
|
|
|
$
|
559,589
|
|
Remodeling contractors
|
95,451
|
|
|
82,075
|
|
||
Multi-family, commercial & other contractors
|
101,443
|
|
|
116,036
|
|
||
Total net sales
|
$
|
834,202
|
|
|
$
|
757,700
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2018
|
|
2017
|
||||
Restricted stock units (a)
|
$
|
1,658
|
|
|
$
|
1,004
|
|
Restricted stock
|
91
|
|
|
136
|
|
||
Stock options
|
26
|
|
|
91
|
|
||
Stock based compensation
|
$
|
1,775
|
|
|
$
|
1,231
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||||
(in thousands)
|
Net Sales
|
|
Gross Profit
|
|
Depreciation & Amortization
|
|
Adjusted EBITDA
|
||||||||
Geographic divisions
|
$
|
834,202
|
|
|
$
|
199,084
|
|
|
$
|
15,211
|
|
|
$
|
63,674
|
|
Other reconciling items
|
—
|
|
|
—
|
|
|
470
|
|
|
(16,494
|
)
|
||||
|
$
|
834,202
|
|
|
$
|
199,084
|
|
|
$
|
15,681
|
|
|
|
|
Three Months Ended March 31, 2017
|
||||||||||||||
(in thousands)
|
Net Sales
|
|
Gross Profit
|
|
Depreciation & Amortization
|
|
Adjusted EBITDA
|
||||||||
Geographic divisions
|
$
|
757,700
|
|
|
$
|
178,197
|
|
|
$
|
16,227
|
|
|
$
|
47,403
|
|
Other reconciling items
|
—
|
|
|
—
|
|
|
586
|
|
|
(13,840
|
)
|
||||
|
$
|
757,700
|
|
|
$
|
178,197
|
|
|
$
|
16,813
|
|
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2018
|
|
2017
|
||||
Income before income taxes
|
$
|
19,998
|
|
|
$
|
4,717
|
|
Interest expense
|
5,982
|
|
|
6,088
|
|
||
Depreciation and amortization
|
15,681
|
|
|
16,813
|
|
||
Merger and integration costs
|
1,687
|
|
|
4,441
|
|
||
Non-cash stock compensation expense
|
1,775
|
|
|
1,231
|
|
||
Acquisition costs
|
234
|
|
|
273
|
|
||
Other items (a)
|
1,823
|
|
|
—
|
|
||
Adjusted EBITDA of other reconciling items
|
16,494
|
|
|
13,840
|
|
||
Adjusted EBITDA of geographic divisions reportable segment
|
$
|
63,674
|
|
|
$
|
47,403
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands, except per share amounts)
|
2018
|
|
2017
|
||||
Income attributable to common stockholders
|
$
|
15,359
|
|
|
$
|
3,744
|
|
|
|
|
|
||||
Weighted average common shares outstanding, basic
|
67,138
|
|
|
66,692
|
|
||
Effect of dilutive securities:
|
|
|
|
||||
Restricted stock units
|
299
|
|
|
178
|
|
||
Stock options
|
172
|
|
|
233
|
|
||
Restricted stock
|
55
|
|
|
83
|
|
||
Weighted average common shares outstanding, diluted
|
67,664
|
|
|
67,186
|
|
||
|
|
|
|
||||
Basic income per common share
|
$
|
0.23
|
|
|
$
|
0.06
|
|
Diluted income per common share
|
$
|
0.23
|
|
|
$
|
0.06
|
|
|
Three Months Ended March 31,
|
||||
(in thousands)
|
2018
|
|
2017
|
||
Restricted stock units
|
21
|
|
|
21
|
|
Stock options
|
—
|
|
|
303
|
|
•
|
the state of the homebuilding industry and repair and remodeling activity, the economy and the credit markets;
|
•
|
the impact of potential changes in our customer or product sales mix;
|
•
|
our concentration of business in the Texas, California and Georgia markets;
|
•
|
the potential loss of significant customers or a reduction in the quantity of products they purchase;
|
•
|
seasonality and cyclicality of the building products supply and services industry;
|
•
|
competitive industry pressures and competitive pricing pressure from our customers and competitors;
|
•
|
fluctuation of commodity prices and prices of our products;
|
•
|
our exposure to product liability, warranty, casualty, construction defect, contract, tort, employment and other claims and legal proceedings;
|
•
|
our ability to maintain profitability;
|
•
|
our ability to retain our key employees and to attract and retain new qualified employees, while controlling our labor costs;
|
•
|
product shortages, loss of key suppliers or failure to develop relationships with qualified suppliers, and our dependence on third-party suppliers and manufacturers;
|
•
|
the implementation of our supply chain and technology initiatives;
|
•
|
the impact of long-term non-cancelable leases at our facilities;
|
•
|
our ability to effectively manage inventory and working capital;
|
•
|
the credit risk from our customers;
|
•
|
the impact of pricing pressure from our customers;
|
•
|
our ability to identify or respond effectively to consumer needs, expectations, market conditions or trends;
|
•
|
our ability to successfully implement our growth strategy;
|
•
|
the impact of federal, state, local and other laws and regulations;
|
•
|
the impact of changes in legislation and government policy;
|
•
|
the impact of unexpected changes in our tax provisions and adoption of new tax legislation;
|
•
|
our ability to utilize our net operating loss carryforwards;
|
•
|
natural or man-made disruptions to our distribution and manufacturing facilities;
|
•
|
our exposure to environmental liabilities and subjection to environmental laws and regulation;
|
•
|
the impact of health and safety laws and regulations;
|
•
|
the impact of disruptions to our information technology systems;
|
•
|
cybersecurity risks;
|
•
|
our exposure to losses if our insurance coverage is insufficient;
|
•
|
our ability to operate on multiple Enterprise Resource Planning ("ERP") information systems and convert multiple systems to a single system;
|
•
|
the impact of our indebtedness; and
|
•
|
the various financial covenants in our secured credit agreement and senior secured notes indenture.
|
|
Three Months Ended March 31,
|
|||||
|
2018 versus 2017
|
|
2018 average price
|
|||
Framing lumber prices
|
26.4
|
%
|
|
$
|
484
|
|
Structural panel prices
|
30.0
|
%
|
|
$
|
503
|
|
|
Three Months Ended March 31,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
||||||||||
Net sales
|
$
|
834,202
|
|
|
100.0
|
%
|
|
$
|
757,700
|
|
|
100.0
|
%
|
Cost of sales
|
635,118
|
|
|
76.1
|
%
|
|
579,503
|
|
|
76.5
|
%
|
||
Gross profit
|
199,084
|
|
|
23.9
|
%
|
|
178,197
|
|
|
23.5
|
%
|
||
Operating expenses:
|
|
|
|
|
|
|
|
||||||
Selling, general and administrative expenses
|
160,204
|
|
|
19.2
|
%
|
|
148,888
|
|
|
19.6
|
%
|
||
Depreciation expense
|
9,506
|
|
|
1.1
|
%
|
|
10,561
|
|
|
1.4
|
%
|
||
Amortization expense
|
3,657
|
|
|
0.4
|
%
|
|
3,821
|
|
|
0.5
|
%
|
||
Merger and integration costs
|
1,687
|
|
|
0.2
|
%
|
|
4,441
|
|
|
0.6
|
%
|
||
Income from operations
|
24,030
|
|
|
2.9
|
%
|
|
10,486
|
|
|
1.4
|
%
|
||
Other income (expense)
|
|
|
|
|
|
|
|
||||||
Interest expense
|
(5,982
|
)
|
|
(0.7
|
)%
|
|
(6,088
|
)
|
|
(0.8
|
)%
|
||
Other income, net
|
1,950
|
|
|
0.2
|
%
|
|
319
|
|
|
0.0
|
%
|
||
Income before income taxes
|
19,998
|
|
|
2.4
|
%
|
|
4,717
|
|
|
0.6
|
%
|
||
Income tax expense
|
4,639
|
|
|
0.6
|
%
|
|
973
|
|
|
0.1
|
%
|
||
Net income
|
$
|
15,359
|
|
|
1.8
|
%
|
|
$
|
3,744
|
|
|
0.5
|
%
|
|
Three Months Ended
March 31, 2018 |
|
Three Months Ended
March 31, 2017 |
|
|
|||||||||||
(in thousands)
|
Net Sales
|
|
% of Sales
|
|
Net Sales
|
|
% of Sales
|
|
% Change
|
|||||||
Structural components
|
$
|
135,829
|
|
|
16.3
|
%
|
|
$
|
109,891
|
|
|
14.5
|
%
|
|
23.6
|
%
|
Lumber & lumber sheet goods
|
288,086
|
|
|
34.5
|
%
|
|
244,436
|
|
|
32.3
|
%
|
|
17.9
|
%
|
||
Millwork, doors & windows
|
229,518
|
|
|
27.5
|
%
|
|
210,751
|
|
|
27.8
|
%
|
|
8.9
|
%
|
||
Other building products & services
|
180,769
|
|
|
21.7
|
%
|
|
192,622
|
|
|
25.4
|
%
|
|
(6.2
|
)%
|
||
Total net sales
|
$
|
834,202
|
|
|
100.0
|
%
|
|
$
|
757,700
|
|
|
100.0
|
%
|
|
10.1
|
%
|
•
|
selling, general and administrative expenses were
$160.2 million
,
up
$11.3 million
, or
7.6%
, from
$148.9 million
for the
three months ended March 31, 2017
. Approximately
$4.5 million
of this increase related to selling, general and administrative expenses of Shone Lumber, TexPly and Code Plus and approximately $3.5 million related to higher employee compensation, benefits and other employee-related costs. The Company incurred $1.8 million related to severance and executive search costs in connection with the departure of the Company’s former chief executive officer and the search for his permanent replacement. The remaining increase related primarily to a $0.8 million increase in diesel fuel costs.
|
•
|
depreciation expense was
$9.5 million
compared to
$10.6 million
for the
three months ended March 31, 2017
. This
decrease
resulted from certain fixed assets that became fully depreciated in 2017, partially offset by the depreciation of replacements and additions of delivery fleet, material handling equipment and operating equipment.
|
•
|
amortization expense was
$3.7 million
compared to
$3.8 million
for the
three months ended March 31, 2017
. This
decrease
resulted from certain intangible assets that became fully amortized in 2017, partially offset by the amortization of intangible assets acquired in the Shone Lumber, TexPly and Code Plus acquisitions.
|
•
|
the Company incurred
$1.7 million
of Merger and integration costs related to the ongoing integration of Building Materials Holding Corporation and Stock Building Supply Holdings, Inc., consisting primarily of system integration costs, compared to
$4.4 million
for the
three months ended March 31, 2017
.
|
(in thousands)
|
March 31,
2018 |
|
December 31,
2017 |
||||
Cash and cash equivalents
|
$
|
9,002
|
|
|
$
|
11,750
|
|
Accounts receivable, net of allowances (a)
|
353,749
|
|
|
322,892
|
|
||
Inventories, net (a)
|
338,767
|
|
|
309,060
|
|
||
Other current assets (a)
|
93,956
|
|
|
90,435
|
|
||
Accounts payable, accrued expenses and other current liabilities (a)
|
(352,082
|
)
|
|
(307,538
|
)
|
||
Current portion of long-term debt and capital lease obligations
|
(7,373
|
)
|
|
(7,739
|
)
|
||
Total net current assets
|
$
|
436,019
|
|
|
$
|
418,860
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2018
|
|
2017
|
||||
Net income
|
$
|
15,359
|
|
|
$
|
3,744
|
|
Non-cash expenses
|
18,534
|
|
|
18,258
|
|
||
Change in deferred income taxes
|
3,810
|
|
|
760
|
|
||
Change in working capital and other assets and liabilities
|
(14,491
|
)
|
|
(26,668
|
)
|
||
Net cash provided by (used in) operating activities
|
$
|
23,212
|
|
|
$
|
(3,906
|
)
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2018
|
|
2017
|
||||
Purchases of businesses, net of cash acquired
|
$
|
(20,970
|
)
|
|
$
|
(6,693
|
)
|
Purchases of property, equipment and real estate
|
(10,244
|
)
|
|
(10,662
|
)
|
||
Insurance proceeds
|
1,991
|
|
|
—
|
|
||
Proceeds from sale of property, equipment and real estate
|
127
|
|
|
866
|
|
||
Net cash used in investing activities
|
$
|
(29,096
|
)
|
|
$
|
(16,489
|
)
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2018
|
|
2017
|
||||
Net borrowings on Revolver
|
$
|
7,729
|
|
|
$
|
19,745
|
|
Payments on capital lease obligations and other notes
|
(2,084
|
)
|
|
(5,224
|
)
|
||
Other financing activities, net
|
(2,509
|
)
|
|
1,735
|
|
||
Net cash provided by financing activities
|
$
|
3,136
|
|
|
$
|
16,256
|
|
Exhibit No.
|
|
Description
|
10.1
#
|
|
|
10.2
#
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
|
101.INS*
|
|
XBRL Instance Document
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
BMC STOCK HOLDINGS, INC.
|
|
Date: May 8, 2018
|
By:
|
/s/ James F. Major, Jr.
|
|
|
Executive Vice President, Chief Financial Officer and Treasurer
|
|
|
(Principal financial and accounting officer and duly authorized officer)
|
To Executive:
|
at the home address of Executive maintained in the human resource records of the Company.
|
4.
|
General Release
.
|
6.
|
General Release.
|
i.
|
Executive has the right to consult with an attorney before signing this Agreement, and is hereby advised to do so;
|
ii.
|
Executive shall have a period of forty-five (45) days from the Termination Date (or from the date of receipt of this Agreement if received after the Termination Date) in which to consider the terms of the Agreement (the "
Review Period
"). Executive may at his option execute this Agreement at any time during the Review Period. If the Executive does not return the signed Agreement to the Company prior to the expiration of the 45 day period, then the offer of severance benefits set forth in this Agreement shall lapse and shall be withdrawn by the Company;
|
iii.
|
Executive may revoke this Agreement at any time during the first seven (7) days following Executive's execution of this Agreement, and this Agreement and release shall not be effective or enforceable until the seven-day period has expired. Notice of a revocation by the Executive must be made to the designated representative of the Company (as described below) within the seven (7) day period after Executive signs this Agreement. If Executive revokes this Agreement, it shall not be effective or enforceable. Accordingly, the "Termination Date" of this Agreement shall be on the eighth (8th) day after Executive signs the Agreement and returns it to the Company, and provided that Executive does not revoke the Agreement during the seven (7) day revocation period;
|
1.
|
I have reviewed this quarterly report on Form 10-Q of BMC Stock Holdings, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of BMC Stock Holdings, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|