(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | Emerging growth company | ||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company |
March 31, | December 31, | March 31, | |||||||||||||||
2023 | 2022 | 2022 | |||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Accounts receivable, less allowance of $ | |||||||||||||||||
Inventories, net | |||||||||||||||||
Prepaid expenses and other current assets | |||||||||||||||||
Total current assets | |||||||||||||||||
Property and equipment, net | |||||||||||||||||
Goodwill | |||||||||||||||||
Intangibles, net | |||||||||||||||||
Operating lease right-of-use assets, net | |||||||||||||||||
Deferred income taxes, net | |||||||||||||||||
Other assets, net | |||||||||||||||||
Total assets | $ | $ | $ | ||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | $ | $ | ||||||||||||||
Accrued expenses | |||||||||||||||||
Current portion of operating lease liabilities | |||||||||||||||||
Current portion of finance lease liabilities | |||||||||||||||||
Current portion of long-term debt/obligations | |||||||||||||||||
Total current liabilities | |||||||||||||||||
Borrowings under revolving lines of credit, net | |||||||||||||||||
Long-term debt, net | |||||||||||||||||
Deferred income taxes, net | |||||||||||||||||
Operating lease liabilities | |||||||||||||||||
Finance lease liabilities | |||||||||||||||||
Total liabilities | |||||||||||||||||
Commitments and contingencies (Note 13) | |||||||||||||||||
Convertible Preferred Stock (voting); $ | |||||||||||||||||
Stockholders’ equity: | |||||||||||||||||
Common stock (voting); $ | |||||||||||||||||
Undesignated preferred stock; | |||||||||||||||||
Additional paid-in capital | |||||||||||||||||
Retained earnings | |||||||||||||||||
Accumulated other comprehensive income (loss) | ( | ( | ( | ||||||||||||||
Total stockholders’ equity | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net sales | $ | $ | |||||||||
Cost of products sold | |||||||||||
Gross profit | |||||||||||
Operating expense: | |||||||||||
Selling, general and administrative | |||||||||||
Depreciation | |||||||||||
Amortization | |||||||||||
Total operating expense | |||||||||||
Income (loss) from operations | |||||||||||
Interest expense, financing costs and other, net | |||||||||||
Income (loss) before provision for income taxes | |||||||||||
Provision for (benefit from) income taxes | |||||||||||
Net income (loss) | $ | $ | |||||||||
Reconciliation of net income (loss) to net income (loss) attributable to common stockholders: | |||||||||||
Net income (loss) | $ | $ | |||||||||
Dividends on Preferred Stock | ( | ( | |||||||||
Undistributed income allocated to participating securities | ( | ( | |||||||||
Net income (loss) attributable to common stockholders | $ | $ | |||||||||
Weighted-average common stock outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Net income (loss) per share: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income (loss) | $ | $ | |||||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustment | ( | ||||||||||
Unrealized gain (loss) due to change in fair value of derivative financial instruments, net of tax | ( | ||||||||||
Derivative financial instruments reclassified to earnings, net of tax | ( | ||||||||||
Total other comprehensive income (loss) | ( | ||||||||||
Comprehensive income (loss) | $ | $ |
Common Stock | Retained | ||||||||||||||||||||||||||||||||||
Shares | Amount | APIC1 | Earnings | AOCI2 | Total | ||||||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Repurchase and retirement of common stock, net3 | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Issuance of common stock, net of shares withheld for taxes | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends on Preferred Stock | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Repurchase and retirement of common stock, net3 | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Equity forward contract | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Issuance of common stock, net of shares withheld for taxes | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends on Preferred Stock | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balance as of March 31, 2022 | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Operating Activities | |||||||||||
Net income (loss) | $ | $ | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | |||||||||||
Certain interest expense and other financing costs | |||||||||||
Gain on sale of fixed assets and other | ( | ( | |||||||||
Deferred income taxes | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventories | ( | ||||||||||
Prepaid expenses and other current assets | ( | ||||||||||
Accounts payable and accrued expenses | ( | ||||||||||
Other assets and liabilities | |||||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||
Investing Activities | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Acquisition of business, net | ( | ( | |||||||||
Proceeds from sale of assets | |||||||||||
Net cash provided by (used in) investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Borrowings under revolving lines of credit | |||||||||||
Payments under revolving lines of credit | ( | ( | |||||||||
Payments under term loan | ( | ( | |||||||||
Payments under equipment financing facilities and finance leases | ( | ( | |||||||||
Repurchase and retirement of common stock, net | ( | ( | |||||||||
Advance payment for equity forward contract | ( | ||||||||||
Payment of dividends on Preferred Stock | ( | ( | |||||||||
Proceeds from issuance of common stock related to equity awards | |||||||||||
Payment of taxes related to net share settlement of equity awards | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Supplemental Cash Flow Information | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes, net of refunds | $ | $ | |||||||||
Supplemental Disclosure of Non-Cash Activities | |||||||||||
Amounts accrued for repurchases of common stock | $ | $ |
Date Acquired | Company Name | Region | Branches | Goodwill Recognized1 | Intangible Assets Acquired1 | |||||||||||||||||||||||||||
March 31, 2023 | Al's Roofing Supply, Inc. | California | $ | $ | ||||||||||||||||||||||||||||
March 31, 2023 | Prince Building Systems, LLC | Wisconsin | $ | $ | ||||||||||||||||||||||||||||
January 4, 2023 | First Coastal Exteriors, LLC | Alabama and Mississippi | $ | $ | ||||||||||||||||||||||||||||
December 30, 2022 | Whitney Building Products | Massachusetts | $ | $ | ||||||||||||||||||||||||||||
November 1, 2022 | Coastal Construction Products | Florida, Illinois, Alabama, Georgia, Arkansas, Tennessee, North Carolina | $ | $ | ||||||||||||||||||||||||||||
June 1, 2022 | Complete Supply, Inc. | Illinois | $ | $ | ||||||||||||||||||||||||||||
April 29, 2022 | Wichita Falls Builders Wholesale, Inc. | Texas | $ | $ | ||||||||||||||||||||||||||||
January 1, 2022 | Crabtree Siding and Supply | Tennessee | $ | $ |
U.S. | Canada | Total | |||||||||||||||
Three Months Ended March 31, 2023 | |||||||||||||||||
Residential roofing products | $ | $ | $ | ||||||||||||||
Non-residential roofing products | |||||||||||||||||
Complementary building products | |||||||||||||||||
Total net sales | $ | $ | $ | ||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||
Residential roofing products | $ | $ | $ | ||||||||||||||
Non-residential roofing products | |||||||||||||||||
Complementary building products | |||||||||||||||||
Total net sales | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Numerator: | |||||||||||
Net income (loss) | $ | $ | |||||||||
Dividends on Preferred Stock | ( | ( | |||||||||
Undistributed income allocated to participating securities | ( | ( | |||||||||
Net income (loss) attributable to common stockholders – Basic and Diluted | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted-average common shares outstanding – Basic | |||||||||||
Effect of common share equivalents | |||||||||||
Weighted-average common shares outstanding – Diluted | |||||||||||
Net income (loss) per share: | |||||||||||
Net income (loss) per share – Basic | $ | $ | |||||||||
Net income (loss) per share – Diluted | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Stock options | |||||||||||
Restricted stock units | |||||||||||
Preferred Stock | |||||||||||
Equity forward contract |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Risk-free interest rate | % | % | |||||||||
Expected volatility | % | % | |||||||||
Expected life (in years) | |||||||||||
Dividend yield |
Options Outstanding | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value1 | ||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Canceled/Forfeited | ( | ||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | |||||||||||||||||||||
Vested and expected to vest after March 31, 2023 | $ | $ | |||||||||||||||||||||
Exercisable as of March 31, 2023 | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Weighted-average fair value per share of stock options granted | $ | $ | |||||||||
Total grant date fair value of stock options vested | $ | $ | |||||||||
Total intrinsic value of stock options exercised | $ | $ |
RSUs Outstanding | Weighted-Average Grant Date Fair Value | ||||||||||
Balance as of December 31, 2022 | $ | ||||||||||
Granted | $ | ||||||||||
Released | ( | $ | |||||||||
Canceled/Forfeited | ( | $ | |||||||||
Balance as of March 31, 2023 | $ | ||||||||||
Vested and expected to vest after March 31, 20231 | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Weighted-average fair value per share of RSUs granted | $ | $ | |||||||||
Total grant date fair value of RSUs vested | $ | $ | |||||||||
Total intrinsic value of RSUs released | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Total number of shares repurchased | |||||||||||
Amount repurchased1 | $ | $ | |||||||||
Average price per share | $ | $ |
March 31, | December 31, | March 31, | |||||||||||||||
2023 | 2022 | 2022 | |||||||||||||||
Vendor rebates | $ | $ | $ | ||||||||||||||
Other | |||||||||||||||||
Total prepaid expenses and other current assets | $ | $ | $ |
Balance as of December 31, 2022 | $ | ||||
Acquisitions | |||||
Translation and other adjustments | |||||
Balance as of March 31, 2023 | $ |
March 31, | December 31, | March 31, | Weighted-Average Remaining | ||||||||||||||||||||
2023 | 2022 | 2022 | Life1 (Years) | ||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||||
Customer relationships | $ | $ | $ | ||||||||||||||||||||
Trademarks | |||||||||||||||||||||||
Non-compete agreements | n/a | ||||||||||||||||||||||
Total amortizable intangible assets | |||||||||||||||||||||||
Accumulated amortization | ( | ( | ( | ||||||||||||||||||||
Total amortizable intangible assets, net | |||||||||||||||||||||||
Indefinite-lived trademarks | |||||||||||||||||||||||
Total intangibles, net | $ | $ | $ |
Year Ending December 31, | ||||||||
2023 (Apr - Dec) | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total future amortization expense | $ |
March 31, | December 31, | March 31, | |||||||||||||||
2023 | 2022 | 2022 | |||||||||||||||
Inventory | $ | $ | $ | ||||||||||||||
Customer rebates | |||||||||||||||||
Payroll and employee benefit costs | |||||||||||||||||
Selling, general and administrative | |||||||||||||||||
Income taxes | |||||||||||||||||
Interest and other | |||||||||||||||||
Total accrued expenses | $ | $ | $ |
March 31, | December 31, | March 31, | |||||||||||||||
2023 | 2022 | 2022 | |||||||||||||||
Revolving Lines of Credit | |||||||||||||||||
2026 ABL: | |||||||||||||||||
2026 U.S. Revolver1 | $ | $ | $ | ||||||||||||||
2026 Canada Revolver | |||||||||||||||||
Borrowings under revolving lines of credit, net | $ | $ | $ | ||||||||||||||
Long-term Debt, net | |||||||||||||||||
Term Loan: | |||||||||||||||||
2028 Term Loan2 | $ | $ | $ | ||||||||||||||
Current portion | ( | ( | ( | ||||||||||||||
Long-term borrowings under term loan | |||||||||||||||||
Senior Notes: | |||||||||||||||||
2026 Senior Notes3 | |||||||||||||||||
2029 Senior Notes4 | |||||||||||||||||
Long-term borrowings under senior notes | |||||||||||||||||
Long-term debt, net | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Operating lease costs | $ | $ | |||||||||
Finance lease costs: | |||||||||||
Amortization of right-of-use assets | |||||||||||
Interest on lease obligations | |||||||||||
Variable lease costs | |||||||||||
Total lease costs | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash paid for amounts included in measurement of lease obligations: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Operating cash flows from finance leases | $ | $ | |||||||||
Financing cash flows from finance leases | $ | $ | |||||||||
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | $ | |||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | $ |
Year Ending December 31, | Operating Leases | Finance Leases | ||||||||||||
2023 (Apr - Dec) | $ | $ | ||||||||||||
2024 | ||||||||||||||
2025 | ||||||||||||||
2026 | ||||||||||||||
2027 | ||||||||||||||
Thereafter | ||||||||||||||
Total future lease payments | ||||||||||||||
Imputed interest | ( | ( | ||||||||||||
Total lease liabilities | $ | $ |
Foreign Currency Translation | Derivative Financial Instruments | AOCI | |||||||||||||||
Balance as of December 31, 2022 | $ | ( | $ | $ | ( | ||||||||||||
Other comprehensive income before reclassifications | ( | ( | ( | ||||||||||||||
Reclassifications out of other comprehensive loss | ( | ( | |||||||||||||||
Balance as of March 31, 2023 | $ | ( | $ | $ | ( |
March 31, | December 31, | March 31, | |||||||||||||||
2023 | 2022 | 2022 | |||||||||||||||
Long-lived assets: | |||||||||||||||||
U.S. | $ | $ | $ | ||||||||||||||
Canada | |||||||||||||||||
Total long-lived assets | $ | $ | $ |
Net Assets (Liabilities) as of | ||||||||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||||||||
Instrument | Fair Value Hierarchy | 2023 | 2022 | 2022 | ||||||||||||||||||||||
Designated interest rate swaps1 | Level 2 | $ | $ | $ |
Three Months Ended March 31, | ||||||||||||||
Instrument | 2023 | 2022 | ||||||||||||
Designated interest rate swaps | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net sales | $ | 1,732.3 | $ | 1,686.9 | |||||||
Cost of products sold | 1,290.4 | 1,247.4 | |||||||||
Gross profit | 441.9 | 439.5 | |||||||||
Operating expense: | |||||||||||
Selling, general and administrative | 338.3 | 309.3 | |||||||||
Depreciation | 20.7 | 17.5 | |||||||||
Amortization | 22.3 | 21.4 | |||||||||
Total operating expense | 381.3 | 348.2 | |||||||||
Income (loss) from operations | 60.6 | 91.3 | |||||||||
Interest expense, financing costs and other, net | 27.8 | 16.6 | |||||||||
Income (loss) before provision for income taxes | 32.8 | 74.7 | |||||||||
Provision for (benefit from) income taxes | 8.0 | 18.9 | |||||||||
Net income (loss) | 24.8 | 55.8 | |||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net sales | 100.0 | % | 100.0 | % | |||||||
Cost of products sold | 74.5 | % | 73.9 | % | |||||||
Gross profit | 25.5 | % | 26.1 | % | |||||||
Operating expense: | |||||||||||
Selling, general and administrative | 19.5 | % | 18.4 | % | |||||||
Depreciation | 1.2 | % | 1.0 | % | |||||||
Amortization | 1.3 | % | 1.3 | % | |||||||
Total operating expense | 22.0 | % | 20.7 | % | |||||||
Income (loss) from operations | 3.5 | % | 5.4 | % | |||||||
Interest expense, financing costs and other, net | 1.6 | % | 1.0 | % | |||||||
Income (loss) before provision for income taxes | 1.9 | % | 4.4 | % | |||||||
Provision for (benefit from) income taxes | 0.5 | % | 1.1 | % | |||||||
Net income (loss) | 1.4 | % | 3.3 | % | |||||||
Three Months Ended March 31, | Year-over-Year Change | ||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Net Sales | % | Net Sales | % | $ | % | ||||||||||||||||||||||||||||||
Residential roofing products | $ | 849.8 | 49.0 | % | $ | 846.4 | 50.2 | % | $ | 3.4 | 0.4 | % | |||||||||||||||||||||||
Non-residential roofing products | 449.6 | 26.0 | % | 487.7 | 28.9 | % | (38.1) | (7.8) | % | ||||||||||||||||||||||||||
Complementary building products | 432.9 | 25.0 | % | 352.8 | 20.9 | % | 80.1 | 22.7 | % | ||||||||||||||||||||||||||
Total net sales | $ | 1,732.3 | 100.0 | % | $ | 1,686.9 | 100.0 | % | $ | 45.4 | 2.7 | % |
Three Months Ended March 31, | Change1 | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
Gross profit | $ | 441.9 | $ | 439.5 | $ | 2.4 | 0.5 | % | |||||||||||||||
Gross margin | 25.5 | % | 26.1 | % | N/A | (0.6) | % |
Three Months Ended March 31, | Change1 | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
Selling, general and administrative | $ | 338.3 | $ | 309.3 | $ | 29.0 | 9.4 | % | |||||||||||||||
Depreciation | 20.7 | 17.5 | 3.2 | 18.3 | % | ||||||||||||||||||
Amortization | 22.3 | 21.4 | 0.9 | 4.2 | % | ||||||||||||||||||
Total operating expense | $ | 381.3 | $ | 348.2 | $ | 33.1 | 9.5 | % | |||||||||||||||
% of net sales | 22.0 | % | 20.7 | % | N/A | 1.3 | % |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Numerator: | |||||||||||
Net income (loss) | $ | 24.8 | $ | 55.8 | |||||||
Dividends on Preferred Stock | (6.0) | (6.0) | |||||||||
Undistributed income allocated to participating securities | (2.5) | (6.1) | |||||||||
Net income (loss) attributable to common stockholders – Basic and Diluted | $ | 16.3 | $ | 43.7 | |||||||
Denominator: | |||||||||||
Weighted-average common shares outstanding – Basic | 64.3 | 70.1 | |||||||||
Effect of common share equivalents | 1.3 | 1.2 | |||||||||
Weighted-average common shares outstanding – Diluted | 65.6 | 71.3 | |||||||||
Net income (loss) per share: | |||||||||||
Net income (loss) per share – Basic | $ | 0.25 | $ | 0.62 | |||||||
Net income (loss) per share – Diluted | $ | 0.25 | $ | 0.61 |
Operating Expense | Non-Operating Expense | ||||||||||||||||||||||||||||
SG&A1 | Amortization | Interest Expense | Income Taxes2 | Total | |||||||||||||||||||||||||
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||
Acquisition costs | $ | 1.7 | $ | 22.3 | $ | 1.0 | $ | — | $ | 25.0 | |||||||||||||||||||
Restructuring costs | 0.5 | — | 0.3 | — | 0.8 | ||||||||||||||||||||||||
Total adjusting items | $ | 2.2 | $ | 22.3 | $ | 1.3 | $ | — | $ | 25.8 | |||||||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||
Acquisition costs | $ | 0.5 | $ | 21.4 | $ | 1.0 | $ | — | $ | 22.9 | |||||||||||||||||||
Restructuring costs | 1.7 | — | 0.3 | — | 2.0 | ||||||||||||||||||||||||
COVID-19 impacts | 1.4 | — | — | — | 1.4 | ||||||||||||||||||||||||
Total adjusting items | $ | 3.6 | $ | 21.4 | $ | 1.3 | $ | — | $ | 26.3 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Operating expense | $ | 381.3 | $ | 348.2 | |||||||
Acquisition costs | (24.0) | (21.9) | |||||||||
Restructuring costs | (0.5) | (1.7) | |||||||||
COVID-19 impacts1 | — | (1.4) | |||||||||
Adjusted Operating Expense | $ | 356.8 | $ | 323.2 | |||||||
Net sales | $ | 1,732.3 | $ | 1,686.9 | |||||||
Operating expense as % of net sales | 22.0 | % | 20.7 | % | |||||||
Adjusted Operating Expense as % of net sales | 20.6 | % | 19.2 | % |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income (loss) | $ | 24.8 | $ | 55.8 | |||||||
Adjusting items: | |||||||||||
Acquisition costs | 25.0 | 22.9 | |||||||||
Restructuring costs | 0.8 | 2.0 | |||||||||
COVID-19 impacts1 | — | 1.4 | |||||||||
Total adjusting items | 25.8 | 26.3 | |||||||||
Less: tax impact of adjusting items2 | (6.8) | (6.5) | |||||||||
Total adjustments, net of tax | 19.0 | 19.8 | |||||||||
Adjusted Net Income (Loss) | $ | 43.8 | $ | 75.6 | |||||||
Net sales | $ | 1,732.3 | $ | 1,686.9 | |||||||
Net income (loss) as % of sales | 1.4 | % | 3.3 | % | |||||||
Adjusted Net Income (Loss) as % of sales | 2.5 | % | 4.5 | % |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income (loss) | $ | 24.8 | $ | 55.8 | |||||||
Interest expense, net | 29.0 | 17.2 | |||||||||
Income taxes | 8.0 | 18.9 | |||||||||
Depreciation and amortization | 43.0 | 38.9 | |||||||||
Stock-based compensation | 6.0 | 5.1 | |||||||||
Acquisition costs1 | 1.7 | 0.5 | |||||||||
Restructuring costs1 | 0.5 | 1.7 | |||||||||
COVID-19 impacts2 | — | 1.4 | |||||||||
Adjusted EBITDA | $ | 113.0 | $ | 139.5 | |||||||
Net sales | $ | 1,732.3 | $ | 1,686.9 | |||||||
Net income (loss) as % of net sales | 1.4 | % | 3.3 | % | |||||||
Adjusted EBITDA as % of net sales | 6.5 | % | 8.3 | % |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net cash provided by (used in) operating activities | $ | 101.2 | $ | (162.0) | |||||||
Net cash provided by (used in) investing activities | (44.5) | (22.0) | |||||||||
Net cash provided by (used in) financing activities | (50.2) | 11.0 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (0.4) | |||||||||
Net increase (decrease) in cash and cash equivalents | $ | 6.5 | $ | (173.4) |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Total number of shares repurchased | 0.4 | 1.9 | |||||||||
Amount repurchased1 | $ | 23.1 | $ | 137.9 | |||||||
Average price per share | $ | 58.21 | $ | 59.06 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs1, 2 | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs1 (in millions) | ||||||||||||||||||||||
January 1 - 31, 2023 | — | $ | — | — | $ | 112.1 | ||||||||||||||||||||
February 1 - 28, 2023 | — | — | — | $ | 500.0 | |||||||||||||||||||||
March 1 - 31, 2023 | 399,300 | 58.21 | 399,300 | $ | 476.9 | |||||||||||||||||||||
Total | 399,300 | $ | 58.21 | 399,300 |
Incorporated by Reference | ||||||||||||||||||||||||||
Exhibit Number | Description | Form | Exhibit | Filing Date | ||||||||||||||||||||||
31.1* | ||||||||||||||||||||||||||
31.2* | ||||||||||||||||||||||||||
32.1** | ||||||||||||||||||||||||||
10.1*+ | ||||||||||||||||||||||||||
10.2+ | 8-K | 10.1 | February 17, 2023 | |||||||||||||||||||||||
101* | 101.INS Inline XBRL Instance – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||||||||||||
101.SCH Inline XBRL Taxonomy Extension Schema | ||||||||||||||||||||||||||
101.CAL Inline XBRL Taxonomy Extension Calculation | ||||||||||||||||||||||||||
101.PRE Inline XBRL Taxonomy Extension Presentation | ||||||||||||||||||||||||||
101.LAB Inline XBRL Taxonomy Extension Labels | ||||||||||||||||||||||||||
101.DEF Inline XBRL Taxonomy Extension Definition | ||||||||||||||||||||||||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
BEACON ROOFING SUPPLY, INC. | ||||||||
Date: May 5, 2023 | BY: | /s/ FRANK A. LONEGRO | ||||||
Frank A. Lonegro | ||||||||
Executive Vice President & Chief Financial Officer |
AEBITDA (Weighted at 60% in the Annual Cash Incentive Plan) | |||||||||||
Achievement Level | |||||||||||
Threshold (Corporate: $80M below Target / Division: $30M below Target) | Target | Maximum (Corporate: ≥$100M above Target / Division: ≥ $40M above Target) | |||||||||
Payout as Percentage of AEBITDA Target | 50% | 100% | 200% | ||||||||
Payout as Percentage of Total Incentive | 30% | 60% | 120% | ||||||||
Operating Working Capital (Weighted at 20% in the Annual Cash Incentive Plan) | |||||||||||
Achievement Level | |||||||||||
Threshold (≤60bps above Target) | Target | Maximum (≥60bps below Target) | |||||||||
Payout as Percentage of Operating Working Capital Target | 20% | 100% | 200% | ||||||||
Payout as Percentage of Total Incentive | 4% | 20% | 40% | ||||||||
Individual Goals (Weighted at 20% in the Annual Cash Incentive Plan) | |||||||||||
Achievement Level | |||||||||||
Threshold | Target | Maximum | |||||||||
Payout as Percentage of Individual Goals Target | 0% | 100% | 200% | ||||||||
Payout as Percentage of Total Incentive | 0% | 20% | 40% |
Date: May 5, 2023 | /s/ JULIAN G. FRANCIS | |||||||
Julian G. Francis | ||||||||
President & Chief Executive Officer |
Date: May 5, 2023 | /s/ FRANK A. LONEGRO | |||||||
Frank A. Lonegro | ||||||||
Executive Vice President & Chief Financial Officer |
Date: May 5, 2023 | /s/ JULIAN G. FRANCIS | |||||||
Julian G. Francis | ||||||||
President & Chief Executive Officer | ||||||||
/s/ FRANK A. LONEGRO | ||||||||
Frank A. Lonegro | ||||||||
Executive Vice President & Chief Financial Officer |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2023 |
Mar. 31, 2022 |
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Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 24.8 | $ 55.8 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (0.2) | 1.5 |
Unrealized gain (loss) due to change in fair value of derivative financial instruments, net of tax | (2.8) | 7.8 |
Derivative financial instruments reclassified to earnings, net of tax | (0.2) | 0.0 |
Other comprehensive income (loss) | (3.2) | 9.3 |
Comprehensive income (loss) | $ 21.6 | $ 65.1 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Operating Activities | ||
Net income (loss) | $ 24.8 | $ 55.8 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 43.0 | 38.9 |
Stock-based compensation | 6.0 | 5.1 |
Certain interest expense and other financing costs | 1.1 | 1.3 |
Gain on sale of fixed assets and other | (4.2) | (1.2) |
Deferred income taxes | 1.1 | 1.4 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 8.6 | (153.0) |
Inventories | 40.0 | (299.9) |
Prepaid expenses and other current assets | 68.7 | (19.6) |
Accounts payable and accrued expenses | (88.8) | 202.1 |
Other assets and liabilities | 0.9 | 7.1 |
Net cash provided by (used in) operating activities | 101.2 | (162.0) |
Investing Activities | ||
Purchases of property and equipment | (22.2) | (22.8) |
Acquisition of business, net | (27.4) | (0.4) |
Proceeds from sale of assets | 5.1 | 1.2 |
Net cash provided by (used in) investing activities | (44.5) | (22.0) |
Financing Activities | ||
Borrowings under revolving lines of credit | 442.0 | 296.0 |
Payments under revolving lines of credit | (462.5) | (143.5) |
Payments under term loan | (2.5) | (2.5) |
Payments under equipment financing facilities and finance leases | (4.3) | (2.2) |
Repurchase and retirement of common stock, net | (20.9) | (113.0) |
Advance payment for equity forward contract | 0.0 | (25.0) |
Payment of dividends on Preferred Stock | (6.0) | (6.0) |
Proceeds from issuance of common stock related to equity awards | 4.8 | 7.3 |
Payment of taxes related to net share settlement of equity awards | (0.8) | (0.1) |
Net cash provided by (used in) financing activities | (50.2) | 11.0 |
Effect of exchange rate changes on cash and cash equivalents | 0.0 | (0.4) |
Net increase (decrease) in cash and cash equivalents | 6.5 | (173.4) |
Cash and cash equivalents, beginning of period | 67.7 | 225.8 |
Cash and cash equivalents, end of period | 74.2 | 52.4 |
Supplemental Cash Flow Information | ||
Interest | 20.8 | 8.2 |
Income taxes, net of refunds | 5.9 | 2.4 |
Supplemental Disclosure of Non-Cash Activities | ||
Amounts accrued for repurchases of common stock | $ 2.2 | $ 0.0 |
Company Overview |
3 Months Ended |
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Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Overview | Company Overview Beacon Roofing Supply, Inc. (“Beacon” or the “Company”) was incorporated in the state of Delaware on August 22, 1997 and is the largest publicly traded distributor of roofing materials and complementary building products, such as siding and waterproofing, in North America. The Company operates its business primarily under the trade name “Beacon Building Products” and services customers in all 50 states throughout the U.S. and six provinces in Canada. The Company’s material subsidiaries are Beacon Sales Acquisition, Inc., Beacon Roofing Supply Canada Company, and SCE Waterproofing Holdings, Inc.
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Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The Company prepared the condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the requirements of the Securities and Exchange Commission (“SEC”). As permitted under those rules, certain footnotes or other financial information have been condensed or omitted. Certain prior period amounts have been reclassified to conform to current period presentation. The balance sheet as of March 31, 2022 has been presented for a better understanding of the impact of seasonal fluctuations on the Company’s financial condition. The three-month periods ended March 31, 2023 and 2022 had 64 and 63 business days, respectively. In management’s opinion, the condensed consolidated financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of the Company’s financial position and operating results. The results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the twelve months ending December 31, 2023. These unaudited condensed consolidated financial statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Recent Accounting Pronouncements— Adopted In October 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2021-08, “Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The guidance is intended to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. The guidance requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination in accordance with Topic 606 as if it had originated the contracts, as opposed to at fair value on the acquisition date. The standard became effective for the Company on January 1, 2023 and was applied prospectively to acquisitions occurring after the adoption date. The adoption of this new guidance did not have a material impact on the Company’s financial statements and related disclosures. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The guidance provides optional practical expedients to ease the potential burden in accounting for contract modifications and hedge accounting related to reference rate reform. The provisions apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Specifically, entities can elect to not apply certain modification accounting requirements to contracts affected by reference rate reform if certain criteria are met. Also, entities can elect various optional expedients that would allow it to continue to apply hedge accounting for hedging relationships affected by reference rate reform if certain criteria are met. Adoption of the provisions of ASU 2020-04 are optional and expedients may be elected over time. Further, in December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” extending the sunset date under Topic 848 from December 31, 2022 to December 31, 2024 to align the temporary accounting relief guidance with the expected LIBOR cessation date of June 30, 2023. During the three months ended March 31, 2023, the Company adopted the optional relief guidance provided under ASU 2020-04 after entering into a new interest rate swap agreement with a reference rate indexed to SOFR, thereby creating a temporary mismatch in the referenced interest rate index of our interest rate swap and the hedged variable rate interest payments pursuant to the Company’s Term Loan. See Note 17 for further details of the transaction. The optional expedient did not have a material impact on the Company’s financial statements and related disclosures. The Company may take advantage of other optional relief guidance offered under ASU 2020-04 in the future and will evaluate and disclose the impact of this guidance in the period of election, as well as the nature and reason for doing so. Recent Accounting Pronouncements—Not Yet Adopted There were no recent accounting pronouncements not yet adopted through March 31, 2023 that are applicable to the Company except as discussed in ASU 2020-04 above.
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Acquisitions |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions The following table presents the Company’s acquisitions between January 1, 2022 and March 31, 2023. The Company acquired 100% of the interests in each case. The Company has not provided pro forma results of operations for the transactions below, as the transactions individually and in the aggregate for the respective year are not material to the Company. The results of operations for these transactions are included in the Company’s condensed consolidated statements of operations from the date of the acquisition (dollars in millions):
1.For Al’s Roofing Supply, Inc., Prince Building Systems, LLC, First Coastal Exteriors, LLC, Whitney Building Products and Coastal Construction Products, the measurement period is still open and amounts are based on provisional estimates of the fair value of assets acquired and liabilities assumed as of March 31, 2023. Prior to the acquisitions, the acquired companies listed above produced aggregate annual sales of approximately $344 million. The total transaction costs incurred by the Company for these acquisitions were $1.6 million for the three months ended March 31, 2023. Of the $146.9 million of goodwill recognized for these acquisitions, $72.4 million is deductible for tax purposes.
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Net Sales |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | Net Sales The following table presents the Company’s net sales by line of business and geography (in millions):
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Net Income (Loss) Per Share |
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Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common share equivalents or the conversion of Preferred Stock (as defined below). Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock unit awards. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributable to common stockholders by the fully diluted weighted-average number of common shares outstanding during the period. In connection with the acquisition of Allied Building Products Corp. on January 2, 2018, the Company completed the sale of 400,000 shares of Series A Cumulative Convertible Participating Preferred Stock, par value $0.01 per share (the “Preferred Stock”), with an aggregate liquidation preference of $400.0 million, at a purchase price of $1,000 per share, to CD&R Boulder Holdings, L.P. The Preferred Stock is convertible perpetual participating preferred stock of the Company, and conversion of the Preferred Stock into $0.01 par value shares of the Company’s common stock will be at a conversion price of $41.26 per share (or 9,694,619 shares of common stock). The Preferred Stock accumulates dividends at a rate of 6.0% per annum (payable quarterly in cash or in-kind, subject to certain conditions). The Preferred Stock is not mandatorily redeemable; therefore, it is classified as mezzanine equity in the Company’s condensed consolidated balance sheets. Holders of Preferred Stock participate in dividends on an as-converted basis when declared on common shares. As a result, Preferred Stock is classified as a participating security and thereby requires the allocation of income that would have otherwise been available to common stockholders when calculating net income (loss) per share. Diluted net income (loss) per share is calculated by utilizing the most dilutive result of the if-converted and two-class methods. In both methods, net income (loss) attributable to common stockholders and the weighted-average common shares outstanding are adjusted to account for the impact of the assumed issuance of potential common shares that are dilutive, subject to dilution sequencing rules. The following table presents the components and calculations of basic and diluted net income (loss) per share (in millions, except per share amounts; certain amounts may not recalculate due to rounding):
The following table includes the number of shares that may be dilutive common shares in the future. These shares were not included in the computation of diluted net income (loss) per share because the effect was either anti-dilutive or the requisite performance conditions were not met (in millions):
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Stock-based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | Stock-based CompensationOn December 23, 2019, the Board of Directors of the Company (the “Board”) approved the Beacon Roofing Supply, Inc. Second Amended and Restated 2014 Stock Plan (the “2014 Plan”). On February 11, 2020, the stockholders of the Company approved an additional 4,850,000 shares to be reserved for issuance under the 2014 Plan. The 2014 Plan, which was originally approved by the stockholders on February 12, 2014, provides for discretionary awards of stock options, stock awards, restricted stock units, and stock appreciation rights to selected employees and non-employee directors. The 2014 Plan mandates that all shares underlying lapsed, forfeited, expired, terminated, cancelled and withheld awards, including those from the predecessor plan, be returned to the 2014 Plan and made available for issuance. As of March 31, 2023, there were 2,960,266 shares of common stock available for issuance pursuant to the 2014 Plan. The 2014 Plan is the only plan maintained by the Company pursuant to which equity awards are granted. All unvested employee equity awards contain a “double trigger” change in control mechanism to the extent such employee equity award is continued or assumed after a change in control. If an award is not continued or assumed by a public company in an equitable manner, such award shall become vested immediately prior to a change in control (in the case of a restricted stock unit award with performance conditions at the then-calculable payout percentage for any completed annual performance periods and at 100% for any annual performance periods not yet calculable, and in the case of a restricted stock unit award with market conditions at 100% of the award then earned but not then vested). If an award is so continued or assumed, vesting will continue in accordance with the terms of the award, unless there is a qualifying termination within one-year following the change in control, in which event the award shall immediately become vested (in the case of a restricted stock unit award with performance conditions at the then-calculable payout percentage for any completed annual performance periods and at 100% for any annual performance periods yet calculable, and in the case of a restricted stock unit award with market conditions at 100% of the award then earned but not then vested). Stock Options Non-qualified stock options generally expire 10 years after the grant date and, except under certain conditions, the options are subject to continued employment and vest in three annual installments over the three-year period following the grant date. The fair values of the options granted for the periods presented were estimated on the dates of grants using the Black-Scholes option-pricing model with the following weighted-average assumptions:
The following table summarizes all stock option activity for the three months ended March 31, 2023 (in millions, except per share amounts and time periods):
1.Aggregate intrinsic value represents the difference between the closing fair value of the underlying common stock and the exercise price of outstanding, in-the-money options on the date of measurement. During the three months ended March 31, 2023 and 2022, the Company recorded stock-based compensation expense related to stock options of $0.9 million and $0.8 million, respectively. As of March 31, 2023, there was $7.0 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 2.2 years. The following table summarizes additional information on stock options (in millions, except per share amounts):
Restricted Stock Units Time-based restricted stock unit (“RSU”) awards granted to employees are subject to continued employment and generally vest on the third anniversary of the grant date. The Company also grants certain RSU awards to management that additionally may contain market or performance conditions. Market conditions are incorporated into the grant date fair value of the management awards with market conditions using a Monte Carlo valuation model. Compensation expense for management awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. For awards with performance conditions, the actual number of awards that will vest can range from 0% to 200% of the original grant amount, depending upon actual Company performance below or above the established performance metric targets. At each reporting date, the Company estimates performance in relation to the defined targets when determining the projected number of management awards with performance conditions that are expected to vest and calculating the related stock-based compensation expense. Management awards with performance conditions are amortized over the service period if, and to the extent that, it is determined that achievement of the performance condition is probable. If awards with market, performance and/or service conditions are forfeited due to failure to achieve performance conditions or failure to satisfy service conditions, any previously recognized expense for such awards is reversed. RSUs granted to non-employee directors are subject to continued service and vest on the first anniversary of the grant date (except under certain conditions). Generally, the common shares underlying the RSUs are not eligible for distribution until the non-employee director’s service on the Board has terminated, and for non-employee director RSU grants made prior to fiscal year 2014, the share distribution date is six months after the director’s termination of service on the Board. Any non-employee directors who have Beacon equity holdings (defined as common stock and outstanding vested equity awards) with a total fair value that is greater than or equal to five times the annual Board cash retainer may elect to have any future RSU grants settle simultaneously with vesting. The following table summarizes all RSU activity for the three months ended March 31, 2023 (in millions, except grant date fair value amounts):
1.As of March 31, 2023, outstanding awards with performance conditions were expected to vest at greater than 100% of their original grant amount. During the three months ended March 31, 2023 and 2022, the Company recorded stock-based compensation expense related to RSUs of $5.1 million and $4.3 million, respectively. As of March 31, 2023, there was $43.6 million of unrecognized compensation expense related to unvested RSUs (including unrecognized expense for RSUs with performance conditions at their estimated value as of March 31, 2023), which is expected to be recognized over a weighted-average period of 2.4 years. The following table summarizes additional information regarding RSUs (in millions, except per share amounts):
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Share Repurchase Program |
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Share Repurchase Program | Share Repurchase Program On February 24, 2022, the Company announced a new share repurchase program (the “Repurchase Program”), pursuant to which the Company may purchase up to $500.0 million of its common stock. On February 23, 2023, the Company announced that its Board authorized and approved an increase of the Repurchase Program by approximately $387.9 million, permitting future share repurchases of $500.0 million after considering actual share repurchases as of such re-authorization date. Share repurchases under the Repurchase Program may be made from time to time through various means, including open market purchases (including block trades), privately negotiated transactions, accelerated share repurchase transactions or through a series of forward purchase agreements, option contracts or similar agreements and contracts (including Rule 10b5-1 plans) adopted by the Company, in each case in accordance with the rules and regulations of the Securities and Exchange Commission, including, if applicable, Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing, volume, and nature of share repurchases pursuant to the Repurchase Program are at the discretion of management and may be suspended or discontinued at any time. Shares repurchased under the Repurchase Program are retired immediately and are included in the category of authorized but unissued shares. Direct and incremental costs associated with the Repurchase Program are deferred and included as a component of the purchase price. The excess of the purchase price over the par value of the common shares is reflected in retained earnings. The following table sets forth the Company’s share repurchases (in millions, except per share data):
1.Amount paid for the three months ended March 31, 2022 includes $25 million of ASR repurchase price that was evaluated as an unsettled equity forward contract indexed to the Company’s common stock and classified within stockholders’ equity as a reduction to additional paid in capital. The final settlement of the ASR occurred in June 2022 and resulted in the delivery of an additional 406,200 shares of the Company’s common stock. Share repurchases for the three months ended March 31, 2023 were made on the open market through a Rule 10b5-1 repurchase plan. During the three months ended March 31, 2023, the Company incurred de minimis costs directly attributable to the Repurchase Program. Share repurchases for the three months ended March 31, 2022 were made through a combination of open market transactions as well as an ASR. During the three months ended March 31, 2022 the Company incurred costs directly attributable to the Repurchase Program of approximately $0.1 million. As of March 31, 2023, the Company had approximately $476.9 million available for repurchases remaining under the Repurchase Program.
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Prepaid Expenses and Other Current Assets |
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Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets The following table summarizes the significant components of prepaid expenses and other current assets (in millions):
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table sets forth the change in the carrying amount of goodwill during the three months ended March 31, 2023 (in millions):
The changes in the carrying amount of goodwill for the three months ended March 31, 2023 were driven primarily by the Company’s recent acquisitions. See Note 3 for additional information. Intangible Assets The intangible asset lives range from 2 to 20 years. The following table summarizes intangible assets by category (in millions, except time periods):
1.As of March 31, 2023. Amortization expense relating to the above-listed intangible assets for the three months ended March 31, 2023 and 2022 was $22.3 million and $21.4 million, respectively. The following table summarizes the estimated future amortization expense for intangible assets (in millions):
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Accrued Expenses |
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Accrued Expenses | Accrued Expenses The following table summarizes the significant components of accrued expenses (in millions):
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Financing Arrangements |
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Financing Arrangements | Financing Arrangements The following table summarizes all outstanding debt (presented net of unamortized debt issuance costs) and other financing arrangements (in millions):
1.Effective rate on borrowings of 5.75%, 5.45%, and 2.51% as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively. 2.Interest rate of 6.88%, 6.32% and 2.46% as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively. 3.Interest rate of 4.50% for all periods presented. 4.Interest rate of 4.125% for all periods presented. 2021 Debt Refinancing In May 2021, the Company entered into various financing arrangements to refinance certain debt instruments to take advantage of lower market interest rates for the Company’s fixed rate indebtedness and to extend maturities (the “2021 Debt Refinancing”). The transactions included a new $350.0 million issuance of senior notes (the “2029 Senior Notes”). In addition, the Company entered into a second amended and restated credit agreement for its $1.30 billion asset-based revolving line of credit (the “2026 ABL”), and an amended and restated term loan credit agreement for a term loan of $1.00 billion (the “2028 Term Loan”), which together are defined as the “New Senior Secured Credit Facilities.” On May 19, 2021, the Company used the net proceeds from the 2029 Senior Notes offering, together with cash on hand and borrowings under the New Senior Secured Credit Facilities, to redeem all $1.30 billion aggregate principal amount outstanding of the Company’s 4.875% Senior Notes due 2025 at a redemption price of 102.438%, to refinance all outstanding borrowings under the Company’s previous term loan, and to pay all related accrued interest, fees and expenses. The Company capitalized debt issuance costs totaling $29.0 million related to the 2029 Senior Notes, 2026 ABL and 2028 Term Loan, which are being amortized over the terms of the financing arrangements. 2029 Senior Notes On May 10, 2021, the Company and certain subsidiaries of the Company as guarantors completed a private offering of $350.0 million aggregate principal amount of 4.125% senior unsecured notes due 2029 at an issue price of 100.000%. The 2029 Senior Notes mature on May 15, 2029 and bear interest at a rate of 4.125% per annum, payable on May 15 and November 15 of each year, which commenced on November 15, 2021. The 2029 Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company’s active United States subsidiaries. The 2029 Senior Notes and related subsidiary guarantees were offered and sold in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside of the United States pursuant to Regulation S under the Securities Act. The 2029 Senior Notes and related subsidiary guarantees have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws. As of March 31, 2023, the outstanding balance on the 2029 Senior Notes, net of $3.0 million of unamortized debt issuance costs, was $347.0 million. 2026 ABL On May 19, 2021, the Company entered into a $1.30 billion senior secured asset-based revolving credit facility with Wells Fargo Bank, N.A. and a syndicate of other lenders. The 2026 ABL provides for revolving loan commitments in both the United States in an amount up to $1.25 billion (“2026 U.S. Revolver”) and Canada in an amount up to $50.0 million (“2026 Canada Revolver”) (as such amounts may be reallocated pursuant to the terms of the 2026 ABL). The 2026 ABL has a maturity date of May 19, 2026. The 2026 ABL has various borrowing tranches with an interest rate based, at the Company’s option, on a base rate, plus an applicable margin, or a reserve adjusted LIBOR rate, plus an applicable margin. The applicable margin for borrowings is based on the Company’s quarterly average excess availability as determined by reference to a borrowing base and ranges from 0.25% to 0.75% per annum in the case of base rate borrowings and 1.25% to 1.75% per annum in the case of LIBOR borrowings. The 2026 ABL also includes procedures for the succession from LIBOR to SOFR. The unused commitment fees on the 2026 ABL are 0.20% per annum. The 2026 ABL contains a springing financial covenant that requires a minimum 1.00 : 1.00 Fixed Charge Coverage Ratio (consolidated EBITDA less capital expenditures to fixed charges, each as defined in the 2026 ABL credit agreement) as of the end of each fiscal quarter (in each case, calculated on a trailing four fiscal quarter basis). The covenant would become operative if the Company failed to maintain a specified minimum amount of availability to borrow under the 2026 ABL, which was not applicable to the Company as of March 31, 2023. In addition, the New Senior Secured Credit Facilities and the 2029 Senior Notes are subject to negative covenants that, among other things and subject to certain exceptions, limit the Company’s ability and the ability of its restricted subsidiaries to: (i) incur indebtedness (including guarantee obligations); (ii) incur liens; (iii) engage in mergers or other fundamental changes; (iv) dispose of certain property or assets; (v) make certain payments, dividends or other distributions; (vi) make certain acquisitions, investments, loans and advances; (vii) prepay certain indebtedness; (viii) change the nature of their business; (ix) engage in certain transactions with affiliates; (x) engage in sale-leaseback transactions; and (xi) enter into certain other restrictive agreements. The 2026 ABL is secured by a first priority lien over substantially all of the Company’s and each guarantor’s accounts and other receivables, chattel paper, deposit accounts (excluding any such account containing identifiable proceeds of Term Priority Collateral (as defined below)), inventory, and, to the extent related to the foregoing and other ABL Priority Collateral, general intangibles (excluding equity interests in any subsidiary of the Company and all intellectual property), instruments, investment property (but not equity interests in any subsidiary of the Company), commercial tort claims, letters of credit, supporting obligations and letter of credit rights, together with all books, records and documents related to, and all proceeds and products of, the foregoing, subject to certain customary exceptions (the “ABL Priority Collateral”), and a second priority lien over substantially all of the Company’s and each guarantor’s other assets, including all of the equity interests of any subsidiary held by the Company or any guarantor, subject to certain customary exceptions (the “Term Priority Collateral”). Beacon Sales Acquisition, Inc., a Delaware corporation and subsidiary of the Company, is a U.S. Borrower under the 2026 ABL and Beacon Roofing Supply Canada Company, an unlimited liability company organized under the laws of Nova Scotia and subsidiary of the Company, is a Canadian borrower under the 2026 ABL. The 2026 ABL is fully and unconditionally guaranteed, on a joint and several basis, by the Company’s active U.S. subsidiaries. As of March 31, 2023, the outstanding balance on the 2026 ABL, net of $5.2 million of unamortized debt issuance costs, was $234.8 million. The Company also had outstanding standby letters of credit related to the 2026 U.S. Revolver in the amount of $15.7 million as of March 31, 2023. 2028 Term Loan On May 19, 2021, the Company entered into a $1.00 billion senior secured term loan B facility with Citibank, N.A. and a syndicate of other lenders. The 2028 Term Loan requires quarterly principal payments in the amount of $2.5 million, with the remaining outstanding principal to be paid on its May 19, 2028 maturity date. The interest rate is based, at the Company’s option, on a base rate, plus an applicable margin, or a reserve adjusted LIBOR rate, plus an applicable margin. The applicable margin for the 2028 Term Loan ranges, depending on the Company’s consolidated total leverage ratio (consolidated total indebtedness to consolidated EBITDA, each as defined in the 2028 Term Loan credit agreement), from 1.25% to 1.50% per annum in the case of base rate borrowings and 2.25% to 2.50% per annum in the case of LIBOR borrowings. The 2028 Term Loan also includes procedures for the succession from LIBOR to SOFR. The 2028 Term Loan is secured by a shared first-priority lien on the Term Priority Collateral and a shared second-priority lien on the ABL Priority Collateral. Certain excluded assets will not be included in the Term Priority Collateral and the ABL Priority Collateral. The 2028 Term Loan is fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company’s active U.S. subsidiaries. On March 16, 2023, the Company novated and amended its interest rate swap agreement related to the 2028 Term Loan. For additional information, see Note 17. As of March 31, 2023, the outstanding balance on the 2028 Term Loan, net of $12.3 million of unamortized debt issuance costs, was $970.2 million. Other Financing Arrangements 2026 Senior Notes On October 9, 2019, the Company, and certain subsidiaries of the Company as guarantors, completed a private offering of $300.0 million aggregate principal amount of 4.50% Senior Secured Notes due 2026 (the “2026 Senior Notes”) at an issue price of 100.000%. The 2026 Senior Notes mature on November 15, 2026 and bear interest at a rate of 4.50% per annum, payable on May 15 and November 15 of each year, commencing on May 15, 2020. The 2026 Senior Notes and related subsidiary guarantees are secured by a shared first-priority lien on the Term Priority Collateral and a shared second-priority lien on the ABL Priority Collateral. Certain excluded assets will not be included in the Term Priority Collateral and the ABL Priority Collateral. The 2026 Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company’s active U.S. subsidiaries. The 2026 Senior Notes and related subsidiary guarantees were offered and sold in a private transaction exempt from the registration requirements of the Securities Act, to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside of the United States pursuant to Regulation S under the Securities Act. The 2026 Senior Notes and related subsidiary guarantees have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws. On October 28, 2019, the Company used the net proceeds from the offering, together with cash on hand and available borrowings under the Company’s previous asset-based revolving credit facility, to redeem all $300.0 million aggregate principal amount outstanding of the Company’s 6.375% Senior Notes due 2023. The Company capitalized debt issuance costs of $4.7 million related to the 2026 Senior Notes, which are being amortized over the term of the financing arrangements. As of March 31, 2023, the outstanding balance on the 2026 Senior Notes, net of $2.4 million of unamortized debt issuance costs, was $297.6 million.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The following table summarizes components of lease costs recognized in the condensed consolidated statements of operations (in millions):
The following table presents supplemental cash flow information related to the Company’s leases (in millions):
As of March 31, 2023, the Company’s operating leases had a weighted-average remaining lease term of 6.1 years and a weighted-average discount rate of 4.61%, and the Company’s finance leases had a weighted-average remaining lease term of 4.8 years and a weighted-average discount rate of 5.28%. The following table summarizes future lease payments as of March 31, 2023 (in millions):
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Leases | Leases The following table summarizes components of lease costs recognized in the condensed consolidated statements of operations (in millions):
The following table presents supplemental cash flow information related to the Company’s leases (in millions):
As of March 31, 2023, the Company’s operating leases had a weighted-average remaining lease term of 6.1 years and a weighted-average discount rate of 4.61%, and the Company’s finance leases had a weighted-average remaining lease term of 4.8 years and a weighted-average discount rate of 5.28%. The following table summarizes future lease payments as of March 31, 2023 (in millions):
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to loss contingencies pursuant to various federal, state and local environmental laws and regulations; however, the Company is not aware of any reasonably possible losses that would have a material impact on its results of operations, financial position, or liquidity. Potential environmental loss contingencies include possible obligations to remove or mitigate the effects on the environment of the placement, storage, disposal or release of certain chemical or other substances by the Company or by other parties. Historically, environmental liabilities have not had a material impact on the Company’s results of operations, financial position or liquidity. The Company is subject to litigation and governmental investigations from time to time in the ordinary course of business; however, the Company does not expect the results, if any, to have a material adverse impact on its results of operations, financial position or liquidity. The Company accrues a liability for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The Company also considers whether an insurance recovery receivable is applicable and appropriate based on the specific legal claim. The actual costs of resolving legal claims and governmental investigations may be substantially higher or lower than the amounts accrued for those activities. In December 2018, a Company vehicle was involved in an accident that resulted in a fatality. The estate of the decedent and two bystanders filed a lawsuit in October 2019 in the Fourth Judicial District Court for Utah County, Provo Division, against the driver and the Company. Trial was held in late August 2022; the jury determined that the truck driver was not liable for the accident. The plaintiffs filed post-trial motions seeking a mistrial and new trial. In April 2023, the trial court ruled on the plaintiffs’ motions, reversing the jury’s verdict and ordering that the second phase of the trial proceed. Because the second phase of the trial has not yet occurred, there is not a probable loss with respect to this matter, and the Company has not accrued any amounts within its financial statements as of March 31, 2023, and any potential loss in regard to this matter is not reasonably estimable. In August 2022 an employee of the Company was involved in a fatal worksite accident. The accident was investigated by California’s Division of Occupational Safety and Health and non-material fines were assessed and have been paid. The Company anticipates that any statutory benefits to be paid as a result of the accident to the decedent’s estate will be through workers’ compensation insurance, subject to the Company’s self-insured retention. There is not a probable or reasonably estimable loss beyond statutory workers’ compensation amounts with respect to this accident.
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Accumulated Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) is composed of certain gains and losses that are excluded from net income under GAAP and instead recorded as a separate element of stockholders’ equity. The following table summarizes the components of, and changes in, AOCI (in millions):
Gains (losses) on derivative instruments are reclassified in the condensed consolidated statements of operations in interest expense, financing costs and other, net in the period in which the hedged transaction affects earnings.
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Geographic Data |
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Geographic Data | Geographic Data The following table summarizes certain geographic information (in millions):
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Fair Value Measurement |
3 Months Ended |
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Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement As of March 31, 2023, the carrying amount of cash and cash equivalents, accounts receivable, prepaid and other current assets, accounts payable and accrued expenses approximated fair value because of the short-term nature of these instruments. The Company measures its cash equivalents at amortized cost, which approximates fair value based upon quoted market prices (Level 1). As of March 31, 2023, based upon recent trading prices (Level 2), the fair value of the Company’s $300.0 million 2026 Senior Notes was $299.3 million, and the fair value of the $350.0 million 2029 Senior Notes was $324.6 million. As of March 31, 2023, the fair value of the Company’s term loan and revolving lines of credit approximated the amount outstanding. The Company estimates the fair value of its term loan and revolving lines of credit by discounting the future cash flows of each instrument using estimated market rates of debt instruments with similar maturities and credit profiles (Level 3).
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Financial Derivatives |
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Financial Derivatives | Financial Derivatives The Company uses interest rate derivative instruments to manage the risk related to fluctuating cash flows from interest rate changes by converting a portion of its variable-rate borrowings into fixed-rate borrowings. On September 11, 2019, the Company entered into two interest rate swap agreements to manage the interest rate risk associated with the variable rate on the Company’s previous term loan. Each swap agreement has a notional amount of $250.0 million. As part of the 2021 Debt Refinancing, Beacon refinanced its previous term loan, resulting in the issuance of the 2028 Term Loan; the two interest rate swaps were designed and executed such that they continue to hedge against a total notional amount of $500.0 million related to the refinanced 2028 Term Loan. One agreement (the “5-year swap”) was scheduled to expire on August 30, 2024 and swaps the thirty-day LIBOR with a fixed-rate of 1.49%. The second agreement (the “3-year swap”) expired on August 30, 2022 and swapped the thirty-day LIBOR with a fixed-rate of 1.50%. At the inception of the swap agreements, the Company determined that both swaps qualified for cash flow hedge accounting under ASC 815. Therefore, changes in the fair value of the swaps, net of taxes, were recognized in other comprehensive income each period, then reclassified into the condensed consolidated statements of operations as a component of interest expense, financing costs and other, net in the period in which the hedged transaction affects earnings. On March 16, 2023, the Company novated its 5-year swap agreement to another counterparty and, in connection with such novation, amended the interest rate swap agreement. The amendment changed the index rate from LIBOR to SOFR, increased the total notional amount of the interest rate swap to $500.0 million, and extended the termination date to March 31, 2027 (the “2027 interest rate swap”). Specifically, the fixed rate of 1.49% indexed to LIBOR was modified to 3.00% indexed to SOFR. The Company used a strategy commonly referred to as “blend and extend” which allows the asset position of the novated 5-year swap agreement of approximately $9.9 million to be effectively blended into the new 2027 interest rate swap agreement. As a result of this transaction, on March 16, 2023 the 5-year swap agreement was de-designated and the unrealized gain of $9.9 million included within accumulated other comprehensive income was frozen and will be ratably reclassified as a reduction to interest expense, financing costs and other, net over the original term of the 5-year swap, or through August 30, 2024 as the hedged transactions affect earnings. Additionally, the 2027 interest rate swap had a fair value of $9.9 million at inception and will be ratably recorded to accumulated other comprehensive income and reclassified to interest expense, financing costs and other, net over the term of the 2027 interest rate swap, or through March 31, 2027 as the hedged transactions affect earnings. At the inception of the 2027 interest rate swap, the Company determined that the swap qualified for cash flow hedge accounting under ASC 815. Therefore, changes in the fair value of the swap, net of taxes, will be recognized in other comprehensive income each period, then reclassified into the condensed consolidated statements of operations as a component of interest expense, financing costs and other, net in the period in which the hedged transaction affects earnings. The 2027 interest rate swap is the only swap agreement outstanding as of March 31, 2023. The effectiveness of the outstanding 2027 interest rate swap will be assessed qualitatively by the Company during the life of the hedge by (i) comparing the current terms of the hedge with the related hedged debt to assure they continue to coincide and (ii) through an evaluation of the ability of the counterparty to the hedge to honor its obligations under the hedge. The Company performed a qualitative analysis as of March 31, 2023 and concluded that the outstanding 2027 interest rate swap continues to meet the requirements under ASC 815 to qualify for cash flow hedge accounting. As of March 31, 2023, the fair value of the 2027 interest rate swap, net of tax, was $6.9 million in favor of the Company. The Company reclassified a gain of $0.2 million out of accumulated other comprehensive income and to interest expense, financing costs and other, net during the three months ended March 31, 2023. Approximately $12.4 million of net gains included in accumulated other comprehensive income (loss) at March 31, 2023 is expected to be reclassified into earnings within the next 12 months as interest payments are made on the Company’s Term Loan and amortization of the frozen AOCI on the 5-year swap and inception date fair value of the 2027 interest rate swap occurs. The Company records any differences paid or received on its interest rate hedges to interest expense, financing costs and other, net within the condensed consolidated statements of operations. The fair value of the interest rate swap is determined through the use of a pricing model, which utilizes verifiable inputs such as market interest rates that are observable at commonly quoted intervals (generally referred to as the “forward curve”) for the full terms of the hedge agreements. These values reflect a Level 2 measurement under the applicable fair value hierarchy. The following table summarizes the combined fair values, net of tax, of the interest rate derivative instrument (in millions):
1.Assets are included in the condensed consolidated balance sheets in prepaid expenses and other current assets, while liabilities are included in accrued expenses. The following table summarizes the amounts of gain (loss) on the change in fair value of the designated interest rate derivative instruments recognized in other comprehensive income (in millions):
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Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company prepared the condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the requirements of the Securities and Exchange Commission (“SEC”). As permitted under those rules, certain footnotes or other financial information have been condensed or omitted. Certain prior period amounts have been reclassified to conform to current period presentation. The balance sheet as of March 31, 2022 has been presented for a better understanding of the impact of seasonal fluctuations on the Company’s financial condition. The three-month periods ended March 31, 2023 and 2022 had 64 and 63 business days, respectively. In management’s opinion, the condensed consolidated financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of the Company’s financial position and operating results. The results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the twelve months ending December 31, 2023. These unaudited condensed consolidated financial statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
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Recent Accounting Pronouncements-Adpoted and Not Yet Adopted | Recent Accounting Pronouncements— Adopted In October 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2021-08, “Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The guidance is intended to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. The guidance requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination in accordance with Topic 606 as if it had originated the contracts, as opposed to at fair value on the acquisition date. The standard became effective for the Company on January 1, 2023 and was applied prospectively to acquisitions occurring after the adoption date. The adoption of this new guidance did not have a material impact on the Company’s financial statements and related disclosures. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The guidance provides optional practical expedients to ease the potential burden in accounting for contract modifications and hedge accounting related to reference rate reform. The provisions apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Specifically, entities can elect to not apply certain modification accounting requirements to contracts affected by reference rate reform if certain criteria are met. Also, entities can elect various optional expedients that would allow it to continue to apply hedge accounting for hedging relationships affected by reference rate reform if certain criteria are met. Adoption of the provisions of ASU 2020-04 are optional and expedients may be elected over time. Further, in December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” extending the sunset date under Topic 848 from December 31, 2022 to December 31, 2024 to align the temporary accounting relief guidance with the expected LIBOR cessation date of June 30, 2023. During the three months ended March 31, 2023, the Company adopted the optional relief guidance provided under ASU 2020-04 after entering into a new interest rate swap agreement with a reference rate indexed to SOFR, thereby creating a temporary mismatch in the referenced interest rate index of our interest rate swap and the hedged variable rate interest payments pursuant to the Company’s Term Loan. See Note 17 for further details of the transaction. The optional expedient did not have a material impact on the Company’s financial statements and related disclosures. The Company may take advantage of other optional relief guidance offered under ASU 2020-04 in the future and will evaluate and disclose the impact of this guidance in the period of election, as well as the nature and reason for doing so. Recent Accounting Pronouncements—Not Yet Adopted There were no recent accounting pronouncements not yet adopted through March 31, 2023 that are applicable to the Company except as discussed in ASU 2020-04 above.
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Acquisitions (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The results of operations for these transactions are included in the Company’s condensed consolidated statements of operations from the date of the acquisition (dollars in millions):
1.For Al’s Roofing Supply, Inc., Prince Building Systems, LLC, First Coastal Exteriors, LLC, Whitney Building Products and Coastal Construction Products, the measurement period is still open and amounts are based on provisional estimates of the fair value of assets acquired and liabilities assumed as of March 31, 2023.
|
Net Sales (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Net Sales by Product Line and Geography | The following table presents the Company’s net sales by line of business and geography (in millions):
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Net Income (Loss) Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components and Calculation of Basic and Diluted Net Income (Loss) Per Share | The following table presents the components and calculations of basic and diluted net income (loss) per share (in millions, except per share amounts; certain amounts may not recalculate due to rounding):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table includes the number of shares that may be dilutive common shares in the future. These shares were not included in the computation of diluted net income (loss) per share because the effect was either anti-dilutive or the requisite performance conditions were not met (in millions):
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Stock-based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Options, Black-Scholes Option-Pricing Model, Weighted-Average Assumptions | The fair values of the options granted for the periods presented were estimated on the dates of grants using the Black-Scholes option-pricing model with the following weighted-average assumptions:
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Stock Options Outstanding and Activity During the Period | The following table summarizes all stock option activity for the three months ended March 31, 2023 (in millions, except per share amounts and time periods):
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Stock Option Grants, Vesting, and Exercises | The following table summarizes additional information on stock options (in millions, except per share amounts):
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Restricted Shares and Units Outstanding and Activity During the Period | The following table summarizes all RSU activity for the three months ended March 31, 2023 (in millions, except grant date fair value amounts):
1.As of March 31, 2023, outstanding awards with performance conditions were expected to vest at greater than 100% of their original grant amount.
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Schedule Of Restricted Stock Units Additional Information | The following table summarizes additional information regarding RSUs (in millions, except per share amounts):
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Share Repurchase Program (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class of Treasury Stock | The following table sets forth the Company’s share repurchases (in millions, except per share data):
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Prepaid Expenses and Other Current Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Assets | The following table summarizes the significant components of prepaid expenses and other current assets (in millions):
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Goodwill and Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in goodwill | The following table sets forth the change in the carrying amount of goodwill during the three months ended March 31, 2023 (in millions):
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Summary of Intangible Assets | The following table summarizes intangible assets by category (in millions, except time periods):
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Summary of Estimated Future Amortization | The following table summarizes the estimated future amortization expense for intangible assets (in millions):
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Accrued Expenses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | The following table summarizes the significant components of accrued expenses (in millions):
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Financing Arrangements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Outstanding Debt Presented Net of Unamortized Debt Issuance Costs and Other Financing Arrangements | The following table summarizes all outstanding debt (presented net of unamortized debt issuance costs) and other financing arrangements (in millions):
1.Effective rate on borrowings of 5.75%, 5.45%, and 2.51% as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively. 2.Interest rate of 6.88%, 6.32% and 2.46% as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively. 3.Interest rate of 4.50% for all periods presented. 4.Interest rate of 4.125% for all periods presented.
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Leases (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Operating Lease Costs Recognized in Condensed Consolidated Statements of Operations Amounts Include Both Continuing and Discontinued Operations | The following table summarizes components of lease costs recognized in the condensed consolidated statements of operations (in millions):
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Summary of Supplemental Cash Flow Information Related to Leases | The following table presents supplemental cash flow information related to the Company’s leases (in millions):
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Lessee, Operating Lease, Liability, Maturity | The following table summarizes future lease payments as of March 31, 2023 (in millions):
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Finance Lease, Liability, Fiscal Year Maturity | The following table summarizes future lease payments as of March 31, 2023 (in millions):
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the components of, and changes in, AOCI (in millions):
|
Geographic Data (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Geographic Information | The following table summarizes certain geographic information (in millions):
|
Financial Derivatives (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Combined Fair Values, Net of Tax of Interest Rate Derivative Instruments | The following table summarizes the combined fair values, net of tax, of the interest rate derivative instrument (in millions):
1.Assets are included in the condensed consolidated balance sheets in prepaid expenses and other current assets, while liabilities are included in accrued expenses.
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Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the amounts of gain (loss) on the change in fair value of the designated interest rate derivative instruments recognized in other comprehensive income (in millions):
|
Company Overview - Additional Information (Detail) |
Mar. 31, 2023
State
|
---|---|
U.S. | |
Company Overview [Line Items] | |
Number of states in which entity operates | 50 |
Canada | |
Company Overview [Line Items] | |
Number of provinces in which entity operates | 6 |
Acquisitions - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Dec. 30, 2022 |
Nov. 01, 2022 |
Jun. 01, 2022 |
Apr. 29, 2022 |
Mar. 31, 2022 |
Jan. 01, 2022 |
Dec. 31, 2021 |
|
Business Acquisition [Line Items] | |||||||||
Prior to acquisition annual sales | $ 344.0 | ||||||||
Business combination, acquisition related costs | $ 1.6 | ||||||||
Goodwill recognized | $ 1,921.1 | $ 1,916.3 | $ 1,776.7 | ||||||
Al's Roofing Supply, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, percentage of equity interests acquired | 100.00% | ||||||||
Goodwill recognized | $ 3.0 | ||||||||
Prince Building Systems, LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, percentage of equity interests acquired | 100.00% | ||||||||
Goodwill recognized | 1.0 | ||||||||
First Coastal Exteriors, LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, percentage of equity interests acquired | 100.00% | ||||||||
Goodwill recognized | 0.8 | ||||||||
Whitney Building Products | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, percentage of equity interests acquired | 100.00% | ||||||||
Goodwill recognized | $ 1.7 | ||||||||
Coastal Construction Products | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, percentage of equity interests acquired | 100.00% | ||||||||
Goodwill recognized | $ 131.3 | ||||||||
Complete Supply, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, percentage of equity interests acquired | 100.00% | ||||||||
Goodwill recognized | $ 8.6 | ||||||||
Wichita Falls Builders Wholesale, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, percentage of equity interests acquired | 100.00% | ||||||||
Goodwill recognized | $ 0.4 | ||||||||
Crabtree Siding and Supply | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, percentage of equity interests acquired | 100.00% | ||||||||
Goodwill recognized | $ 0.1 | ||||||||
Series of Individually Immaterial Business Acquisitions | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill recognized | $ 146.9 | ||||||||
Business acquisition, goodwill, tax deductible amount | $ 72.4 |
Acquisitions - Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Details) $ in Millions |
Mar. 31, 2023
USD ($)
branch
|
Jan. 04, 2023
branch
|
Dec. 31, 2022
USD ($)
|
Dec. 30, 2022
USD ($)
branch
|
Nov. 01, 2022
USD ($)
branch
|
Jun. 01, 2022
USD ($)
branch
|
Apr. 29, 2022
USD ($)
branch
|
Mar. 31, 2022
USD ($)
|
Jan. 01, 2022
USD ($)
branch
|
---|---|---|---|---|---|---|---|---|---|
Business Acquisition [Line Items] | |||||||||
Goodwill recognized | $ 1,921.1 | $ 1,916.3 | $ 1,776.7 | ||||||
Al's Roofing Supply, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Branches | branch | 4 | ||||||||
Goodwill recognized | $ 3.0 | ||||||||
Intangible Assets Acquired | 7.1 | ||||||||
Prince Building Systems, LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
Branches | branch | 1 | ||||||||
Goodwill recognized | 1.0 | ||||||||
Intangible Assets Acquired | 2.7 | ||||||||
First Coastal Exteriors, LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
Branches | branch | 2 | ||||||||
Goodwill recognized | 0.8 | ||||||||
Intangible Assets Acquired | $ 1.9 | ||||||||
Whitney Building Products | |||||||||
Business Acquisition [Line Items] | |||||||||
Branches | branch | 1 | ||||||||
Goodwill recognized | $ 1.7 | ||||||||
Intangible Assets Acquired | $ 2.8 | ||||||||
Coastal Construction Products | |||||||||
Business Acquisition [Line Items] | |||||||||
Branches | branch | 18 | ||||||||
Goodwill recognized | $ 131.3 | ||||||||
Intangible Assets Acquired | $ 102.8 | ||||||||
Complete Supply, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Branches | branch | 1 | ||||||||
Goodwill recognized | $ 8.6 | ||||||||
Intangible Assets Acquired | $ 4.6 | ||||||||
Wichita Falls Builders Wholesale, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Branches | branch | 1 | ||||||||
Goodwill recognized | $ 0.4 | ||||||||
Intangible Assets Acquired | $ 0.5 | ||||||||
Crabtree Siding and Supply | |||||||||
Business Acquisition [Line Items] | |||||||||
Branches | branch | 1 | ||||||||
Goodwill recognized | $ 0.1 | ||||||||
Intangible Assets Acquired | $ 0.1 |
Net Sales - Summary of Net Sales by Product Line and Geography (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 1,732.3 | $ 1,686.9 |
Residential roofing products | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 849.8 | 846.4 |
Non-residential roofing products | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 449.6 | 487.7 |
Complementary building products | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 432.9 | 352.8 |
U.S. | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 1,701.0 | 1,644.1 |
U.S. | Residential roofing products | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 843.6 | 835.8 |
U.S. | Non-residential roofing products | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 425.8 | 457.4 |
U.S. | Complementary building products | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 431.6 | 350.9 |
Canada | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 31.3 | 42.8 |
Canada | Residential roofing products | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 6.2 | 10.6 |
Canada | Non-residential roofing products | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 23.8 | 30.3 |
Canada | Complementary building products | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 1.3 | $ 1.9 |
Net Income (Loss) Per Share - Additional Information (Details) - USD ($) |
Jan. 02, 2018 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|---|
Sales Of Shares A Cumulative Convertible Participating Preferred Stock [Line Items] | ||||
Preferred stock, issuance (in shares) | 0 | 0 | 0 | |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Allied Acquisition | Investment Agreement | Series A Cumulative Convertible Participating Preferred Stock | ||||
Sales Of Shares A Cumulative Convertible Participating Preferred Stock [Line Items] | ||||
Preferred stock, issuance (in shares) | 400,000 | |||
Preferred stock, par value (in USD per share) | $ 0.01 | |||
Preferred stock, liquidation preference value | $ 400,000,000 | |||
Preferred stock, liquidation purchase price per share (in USD per share) | $ 1,000 | |||
Preferred stock conversion price per share (in USD per share) | $ 41.26 | |||
Common stock to be issued upon conversion of convertible preferred stock (in shares) | 9,694,619 | |||
Preferred stock dividend rate | 6.00% |
Net Income (Loss) Per Share - Components and Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Numerator: | ||
Net income (loss) | $ 24.8 | $ 55.8 |
Dividends on Preferred Stock | (6.0) | (6.0) |
Undistributed income allocated to participating securities | (2.5) | (6.1) |
Net income (loss) from continuing operations attributable to common stockholders - Basic | 16.3 | 43.7 |
Net income (loss) from continuing operations attributable to common stockholders - Diluted | $ 16.3 | $ 43.7 |
Denominator: | ||
Weighted-average common shares outstanding - Basic (in shares) | 64.3 | 70.1 |
Effect of common share equivalents (in shares) | 1.3 | 1.2 |
Weighted-average common shares outstanding - Diluted (in shares) | 65.6 | 71.3 |
Net income (loss) per share: | ||
Basic net income (loss) per share ( usd per share) | $ 0.25 | $ 0.62 |
Diluted net income (loss) per share ( usd per share) | $ 0.25 | $ 0.61 |
Net Income (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted net income (loss) per share ( in shares) | 9.7 | 9.7 |
Stock options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted net income (loss) per share ( in shares) | 0.2 | 0.1 |
Restricted stock units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted net income (loss) per share ( in shares) | 0.1 | 0.0 |
Equity forward contract | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted net income (loss) per share ( in shares) | 0.0 | 0.4 |
Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Feb. 11, 2020 |
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation number of additional shares authorized (in shares) | 4,850,000 | |||
Stock-based compensation number of shares authorized (in shares) | 2,960,266 | |||
Unrecognized compensation cost related to unvested stock | $ 7.0 | |||
Weighted average remaining contractual term | 6 years 2 months 12 days | 6 years | ||
Restricted Stock Unit Award with Performance Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares that will vest | 100.00% | |||
Restricted Stock Unit Award with Market Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares that will vest | 100.00% | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-qualified options granted expiration period | 10 years | |||
Vesting period | 3 years | |||
Allocated stock-based compensation expense | $ 0.9 | $ 0.8 | ||
Weighted average remaining contractual term | 2 years 2 months 12 days | |||
Phantom Share Units (PSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares that will vest | 0.00% | |||
Phantom Share Units (PSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares that will vest | 200.00% | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated stock-based compensation expense | $ 5.1 | $ 4.3 | ||
Unrecognized compensation cost related to unvested stock | $ 43.6 | |||
Weighted average period to recognize performance conditions | 2 years 4 months 24 days |
Stock-based Compensation - Fair Values of Options, Black-Scholes Option-Pricing Model, Weighted-Average Assumptions (Detail) |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Share-Based Payment Arrangement [Abstract] | ||
Risk-free interest rate | 4.26% | 1.92% |
Expected volatility | 49.92% | 48.89% |
Expected life (in years) | 5 years 1 month 13 days | 5 years 1 month 20 days |
Dividend yield | 0.00% | 0.00% |
Stock-based compensation - Stock Options Outstanding and Activity During the Period (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Options Outstanding | ||
Beginning Balance (in shares) | 1.3 | |
Granted (in shares) | 0.1 | |
Exercised (in shares) | (0.1) | |
Canceled/Forfeited (in shares) | (0.0) | |
Ending Balance (in shares) | 1.3 | 1.3 |
Vested and expected to vest (in shares) | 1.3 | |
Exercisable (in shares) | 1.0 | |
Weighted-Average Exercise Price | ||
Beginning Balance (in usd per share) | $ 38.73 | |
Granted (in usd per share) | 65.00 | |
Exercised (in usd per share) | 36.94 | |
Canceled/Forfeited (in usd per share) | 52.55 | |
Ending Balance (in usd per share) | 41.03 | $ 38.73 |
Vested and expected to vest (in usd per share) | 40.67 | |
Exercisable (in usd per share) | $ 36.72 | |
Weighted-Average Remaining Contractual Term (Years) | ||
Balance | 6 years 2 months 12 days | 6 years |
Vested and expected to vest | 6 years 2 months 12 days | |
Exercisable | 5 years 3 months 18 days | |
Aggregate Intrinsic Value | ||
Balance | $ 24.6 | $ 20.7 |
Vested and expected to vest | 24.6 | |
Exercisable | $ 22.1 |
Stock-based Compensation - Stock Option Grants, Vesting, and Exercises (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Share-Based Payment Arrangement [Abstract] | ||
Weighted-average fair value per share of stock options granted (in usd per share) | $ 31.86 | $ 26.49 |
Total grant date fair value of stock options vested | $ 1.8 | $ 0.1 |
Total intrinsic value of stock options exercised | $ 3.3 | $ 4.2 |
Stock-based Compensation - Restricted Shares and Units Outstanding and Activity During the Period (Detail) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Weighted-Average Grant Date Fair Value | ||
Granted (in USD per share) | $ 65.00 | $ 50.99 |
Restricted stock units | ||
RSUs Outstanding | ||
Beginning Balance (in shares) | 1,200,000 | |
Granted (in shares) | 400,000 | |
Released (in shares) | (100,000) | |
Canceled/Forfeited (in shares) | (0.0) | |
Ending Balance (in shares) | 1,500,000 | |
Vested and expected to vest (in shares) | 1,600,000 | |
Weighted-Average Grant Date Fair Value | ||
Beginning Balance (in USD per share) | $ 45.60 | |
Granted (in USD per share) | 65.00 | |
Released (in USD per share) | 54.68 | |
Canceled/Forfeited (in USD per share) | 54.67 | |
Ending Balance (in USD per share) | 49.77 | |
Vested and expected to vest (in USD per share) | $ 48.56 | |
Performance Conditions | Minimum | ||
Weighted-Average Grant Date Fair Value | ||
Percentage of shares expected to be vested | 100.00% |
Stock-based Compensation - Schedule Of Restricted Stock Units Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Share-Based Payment Arrangement [Abstract] | ||
Weighted-average fair value per share of RSUs granted (in USD per share) | $ 65.00 | $ 50.99 |
Total grant date fair value of RSUs vested | $ 3.5 | $ 1.6 |
Total intrinsic value of RSUs released | $ 3.7 | $ 0.8 |
Share Repurchase Program - Additional Information (Detail) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2023 |
Feb. 24, 2022 |
|
Equity, Class of Treasury Stock [Line Items] | |||
Accelerated share repurchase program, cost | $ 100,000 | ||
Remaining repurchase amount | $ 476,900,000 | ||
Repurchase Program | Common Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Repurchase of common stock | $ 500,000,000 | ||
Increased authorized amount | 387,900,000 | ||
Repurchase Program | Maximum | Common Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Repurchase of common stock | $ 500,000,000 |
Share Repurchase Program - Class of Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Jun. 30, 2022 |
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Equity, Class of Treasury Stock [Line Items] | |||
Total number of shares repurchased (in shares) | 400,000 | 1,900,000 | |
Average price per share (in usd per share) | $ 58.21 | ||
Accelerated share repurchase price | $ 25.0 | ||
Stock issued during period (in shares) | 406,200 | ||
Common Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Amount repurchased | $ 23.1 | $ 137.9 | |
Average price per share (in usd per share) | $ 59.06 |
Prepaid Expenses and Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Other Income and Expenses [Abstract] | |||
Vendor rebates | $ 273.8 | $ 335.9 | $ 338.0 |
Other | 71.9 | 81.9 | 50.4 |
Prepaid expenses and other current assets | $ 345.7 | $ 417.8 | $ 388.4 |
Goodwill and Intangible Assets - Summary of Changes in goodwill (Detail) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,916.3 |
Acquisitions | 4.8 |
Translation and other adjustments | 0.0 |
Ending balance | $ 1,921.1 |
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Goodwill [Line Items] | ||
Amortization of intangible assets | $ 22.3 | $ 21.4 |
Minimum | ||
Goodwill [Line Items] | ||
Useful life | 2 years | |
Maximum | ||
Goodwill [Line Items] | ||
Useful life | 20 years |
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
|
Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets: | $ 1,214.4 | $ 1,202.6 | $ 1,093.6 |
Accumulated amortization | (787.0) | (764.7) | (703.8) |
Total future amortization expense | 427.4 | 437.9 | 389.8 |
Indefinite-lived trademarks | 9.8 | 9.8 | 9.8 |
Total intangibles, net | $ 437.2 | 447.7 | 399.6 |
Weighted Average | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Life (Years) | 15 years 7 months 6 days | ||
Customer relationships | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets: | $ 1,209.9 | 1,198.1 | 1,092.4 |
Customer relationships | Weighted Average | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Life (Years) | 15 years 9 months 18 days | ||
Trademarks | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets: | $ 4.5 | 4.5 | 1.0 |
Trademarks | Weighted Average | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Life (Years) | 1 year 6 months | ||
Non-compete agreements | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets: | $ 0.0 | $ 0.0 | $ 0.2 |
Goodwill and Intangible Assets - Summary of Estimated Future Amortization (Detail) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2023 (Apr - Dec) | $ 61.1 | ||
2024 | 69.3 | ||
2025 | 56.8 | ||
2026 | 48.2 | ||
2027 | 39.2 | ||
Thereafter | 152.8 | ||
Total future amortization expense | $ 427.4 | $ 437.9 | $ 389.8 |
Accrued Expenses - Significant Components of Accrued Expenses (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Payables and Accruals [Abstract] | |||
Inventory | $ 108.8 | $ 106.9 | $ 198.0 |
Customer rebates | 35.8 | 112.8 | 31.0 |
Payroll and employee benefit costs | 47.6 | 118.6 | 65.3 |
Selling, general and administrative | 101.7 | 96.0 | 72.8 |
Income taxes | 1.3 | 7.8 | 31.9 |
Interest and other | 11.2 | 5.9 | 11.8 |
Accrued expenses | $ 306.4 | $ 448.0 | $ 410.8 |
Financing Arrangements - Schedule of Outstanding Debt Presented Net of Unamortized Debt Issuance Costs and Other Financing Arrangements (Detail) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
May 31, 2021 |
May 10, 2021 |
Oct. 28, 2019 |
Oct. 09, 2019 |
---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||||
Borrowings under revolving lines of credit/term loans, net | $ 234.8 | $ 254.9 | $ 145.6 | ||||
Long-term borrowings under senior notes | 644.6 | 644.2 | 643.3 | ||||
Long-term debt, net | $ 1,604.8 | $ 1,606.4 | $ 1,611.2 | ||||
2028 Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate at period end | 6.88% | 6.32% | 2.46% | ||||
2026 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 297.6 | $ 297.4 | $ 296.9 | ||||
Debt interest rate at period end | 4.50% | 6.375% | 4.50% | ||||
2029 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 347.0 | 346.8 | 346.4 | ||||
Debt interest rate at period end | 4.125% | 4.125% | |||||
Revolving Lines of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings under revolving lines of credit/term loans, net | $ 234.8 | 254.9 | 145.6 | ||||
Revolving Lines of Credit | 2026 Revolver | U.S. | |||||||
Debt Instrument [Line Items] | |||||||
Total borrowings under revolving lines of credit/term loans | $ 234.8 | $ 254.9 | $ 145.6 | ||||
Line of credit facility, interest rate at period end | 5.75% | 5.45% | 2.51% | ||||
Revolving Lines of Credit | 2026 Revolver | Canada | |||||||
Debt Instrument [Line Items] | |||||||
Total borrowings under revolving lines of credit/term loans | $ 0.0 | $ 0.0 | $ 0.0 | ||||
Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Current portion | (10.0) | (10.0) | (10.0) | ||||
Borrowings under revolving lines of credit/term loans, net | 960.2 | 962.2 | 967.9 | ||||
Term Loan | 2028 Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Total borrowings under revolving lines of credit/term loans | $ 970.2 | $ 972.2 | $ 977.9 | $ 1,000.0 |
Financing Arrangements - 2021 Debt Refinancing - Additional Information (Detail) - USD ($) |
May 19, 2021 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
May 31, 2021 |
May 10, 2021 |
---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||
Capitalized debt issuance costs | $ 29,000,000 | |||||
Senior Notes, Matures May 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, aggregate principal amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | |||
Payment under senior notes | $ 1,300,000,000 | |||||
Debt interest rate at period end | 4.125% | 4.125% | ||||
Debt redemption price percentage of principal amount | 102.438% | |||||
2026 ABL Facility | Revolving Lines of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,300,000,000 | 1,300,000,000 | ||||
2028 Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate at period end | 6.88% | 6.32% | 2.46% | |||
2028 Term Loan | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Long-term line of credit | $ 970,200,000 | $ 972,200,000 | $ 977,900,000 | $ 1,000,000,000 | ||
2025 Senior Note | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate at period end | 4.875% |
Financing Arrangements - 2029 Senior Notes - Additional Information (Detail) - Senior Notes, Matures May 2029 - USD ($) |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
May 31, 2021 |
May 10, 2021 |
---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||
Debt instrument, aggregate principal amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | ||
Debt instrument interest rate | 4.125% | 4.125% | |||
Debt instrument, issue price percentage | 100.00% | ||||
Debt issuance costs | $ 3,000,000 | ||||
Senior notes payable | $ 347,000,000 | $ 346,800,000 | $ 346,400,000 |
Financing Arrangements - 2026 ABL - Additional Information (Detail) - USD ($) |
3 Months Ended | ||||
---|---|---|---|---|---|
May 19, 2021 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
May 31, 2021 |
|
Debt Instrument [Line Items] | |||||
Borrowings under revolving lines of credit/term loans, net | $ 234,800,000 | $ 254,900,000 | $ 145,600,000 | ||
Revolving Lines of Credit | |||||
Debt Instrument [Line Items] | |||||
Borrowings under revolving lines of credit/term loans, net | $ 234,800,000 | $ 254,900,000 | $ 145,600,000 | ||
Revolving Lines of Credit | 2026 ABL Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,300,000,000 | $ 1,300,000,000 | |||
Line of credit facility, unused fees | 0.20% | ||||
Fixed charge coverage ratio | 1.00% | ||||
Debt issuance costs | $ 5,200,000 | ||||
Standby letters of credit outstanding | $ 15,700,000 | ||||
Revolving Lines of Credit | U.S. | 2026 ABL Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 1,250,000,000 | ||||
Revolving Lines of Credit | Canada | 2026 ABL Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||||
Base Rate | Revolving Lines of Credit | Minimum | 2026 ABL Facility | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings | 0.25% | ||||
Base Rate | Revolving Lines of Credit | Maximum | 2026 ABL Facility | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings | 0.75% | ||||
LIBOR | Revolving Lines of Credit | Minimum | 2026 ABL Facility | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings | 1.25% | ||||
LIBOR | Revolving Lines of Credit | Maximum | 2026 ABL Facility | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings | 1.75% |
Financing Arrangements - 2028 Term Loan - Additional Information (Details) - Term Loan - USD ($) $ in Millions |
May 19, 2021 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
May 31, 2021 |
---|---|---|---|---|---|
Term Loan, Matures 2028 | |||||
Debt Instrument [Line Items] | |||||
Long-term line of credit | $ 1,000.0 | ||||
Debt instrument, periodic payment | $ 2.5 | ||||
Term Loan, Matures 2028 | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings | 1.25% | ||||
Term Loan, Matures 2028 | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings | 1.50% | ||||
Term Loan, Matures 2028 | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings | 2.25% | ||||
Term Loan, Matures 2028 | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings | 2.50% | ||||
2028 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Long-term line of credit | $ 970.2 | $ 972.2 | $ 977.9 | $ 1,000.0 | |
Debt issuance costs | $ 12.3 |
Financing Arrangements - 2026 Senior Notes - Additional Information (Detail) - Senior Notes, Matures November 2026 - USD ($) |
Oct. 28, 2019 |
Oct. 09, 2019 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||
Debt instrument, aggregate principal amount | $ 300,000,000 | $ 300,000,000 | |||
Debt instrument interest rate | 6.375% | 4.50% | 4.50% | ||
Debt instrument, issue price percentage | 100.00% | ||||
Payment under senior notes | $ 300,000,000 | ||||
Payment of debt issuance costs | $ 4,700,000 | ||||
Debt issuance costs | $ 2,400,000 | ||||
Senior notes payable | $ 297,600,000 | $ 297,400,000 | $ 296,900,000 |
Leases - Components of Operating Lease Costs Recognized in Condensed Consolidated Statements of Operations Amounts Include Both Continuing and Discontinued Operations (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Leases [Abstract] | ||
Operating lease costs | $ 30.0 | $ 27.5 |
Amortization of right-of-use assets | 4.6 | 2.7 |
Interest on lease obligations | 1.1 | 0.4 |
Variable lease costs | 2.9 | 2.2 |
Total lease costs | $ 38.6 | $ 32.8 |
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 28.6 | $ 25.8 |
Operating cash flows from finance leases | 1.1 | 0.4 |
Financing cash flows from finance leases | 4.3 | 2.3 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 11.8 | 20.1 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 6.8 | $ 11.6 |
Leases - Additional Information (Detail) |
Mar. 31, 2023 |
---|---|
Leases [Abstract] | |
Operating lease, weighted-average remaining lease term | 6 years 1 month 6 days |
Operating lease, weighted-average discount rate | 4.61% |
Financing lease, weighted-average remaining lease term | 4 years 9 months 18 days |
Financing lease, weighted-average discount rate | 5.28% |
Leases - Finance Lease and Lessee, Operating Lease, Liability, Fiscal Year Maturity (Detail) $ in Millions |
Mar. 31, 2023
USD ($)
|
---|---|
Operating Leases | |
2023 (Apr - Dec) | $ 86.9 |
2024 | 105.3 |
2025 | 86.3 |
2026 | 73.2 |
2027 | 57.2 |
Thereafter | 133.1 |
Total future lease payments | 542.0 |
Imputed interest | (71.6) |
Total lease liabilities | 470.4 |
Finance Leases | |
2023 (Apr - Dec) | 16.7 |
2024 | 22.1 |
2025 | 21.9 |
2026 | 20.3 |
2027 | 15.3 |
Thereafter | 6.5 |
Total future lease payments | 102.8 |
Imputed interest | (12.1) |
Total lease liabilities | $ 90.7 |
Accumulated Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Detail) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2023
USD ($)
| ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 1,904.1 | |||
Other comprehensive income before reclassifications | (3.0) | |||
Reclassifications out of other comprehensive loss | (0.2) | |||
Ending Balance | 1,906.6 | |||
AOCI | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (12.5) | [1] | ||
Ending Balance | (15.7) | [1] | ||
Foreign Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (22.2) | |||
Other comprehensive income before reclassifications | (0.2) | |||
Reclassifications out of other comprehensive loss | 0.0 | |||
Ending Balance | (22.4) | |||
Derivative Financial Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 9.7 | |||
Other comprehensive income before reclassifications | (2.8) | |||
Reclassifications out of other comprehensive loss | (0.2) | |||
Ending Balance | $ 6.7 | |||
|
Geographic Data - Schedule Of Geographic Information (Detail) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 786.3 | $ 782.4 | $ 672.8 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 774.7 | 770.6 | 662.9 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 11.6 | $ 11.8 | $ 9.9 |
Fair Value Measurement - Additional Information (Detail) - USD ($) |
Mar. 31, 2023 |
May 31, 2021 |
May 10, 2021 |
Oct. 09, 2019 |
---|---|---|---|---|
2026 Senior Notes | ||||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||||
Debt instrument, aggregate principal amount | $ 300,000,000 | $ 300,000,000 | ||
2029 Senior Notes | ||||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||||
Debt instrument, aggregate principal amount | 350,000,000 | $ 350,000,000 | $ 350,000,000 | |
Fair Value | Fair Value, Inputs Level 2 | 2026 Senior Notes | ||||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||||
Senior notes | 299,300,000 | |||
Fair Value | Fair Value, Inputs Level 2 | 2029 Senior Notes | ||||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||||
Senior notes | $ 324,600,000 |
Financial Derivatives - Additional Information (Detail) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 16, 2023
USD ($)
|
Sep. 11, 2019
USD ($)
Agreement
|
Mar. 31, 2023
USD ($)
|
Mar. 31, 2022
USD ($)
|
|
Derivative [Line Items] | ||||
Number of interest rate swap agreements | Agreement | 2 | |||
Reclassified gain | $ 0.2 | $ 0.0 | ||
Interest rate cash flow hedge gain | $ 12.4 | |||
5-Year Swap | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 500.0 | $ 250.0 | ||
Term of derivative agreement | 5 years | 5 years | 5 years | |
Derivative, fixed interest rate | 1.49% | |||
Unrealized gain on derivatives | $ 9.9 | |||
Fair value of unrealized gain on derivatives | $ 9.9 | |||
Designed interest rate swaps | $ 6.9 | |||
5-Year Swap | London Interbank Offered Rate (LIBOR) Swap Rate | ||||
Derivative [Line Items] | ||||
Derivative, fixed interest rate | 1.49% | |||
5-Year Swap | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Derivative [Line Items] | ||||
Derivative, fixed interest rate | 3.00% | |||
3-Year Swap | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 250.0 | |||
Term of derivative agreement | 3 years | |||
Derivative, fixed interest rate | 1.50% | |||
2028 Term Loan | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 500.0 |
Financial Derivatives - Summary of Combined Fair Values, Net of Tax of Interest Rate Derivative Instruments (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Designated as Hedging Instrument | Interest Rate Swaps | Fair Value, Inputs Level 2 | |||
Derivative [Line Items] | |||
Designed interest rate swaps | $ 6.9 | $ 9.7 | $ 3.7 |
Financial Derivatives - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Derivative [Line Items] | ||
Designated interest rate swaps | $ (2.8) | $ 7.8 |
Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Designated interest rate swaps | $ (2.8) | $ 7.8 |
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