Segments

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segments

Segments

ASC 280, Segment Reporting, defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance.

The Company’s operating segments consist of the Mid-Atlantic, Southeast, Texas, Intermountain and Western divisions. The CODM reviews aggregate information to allocate resources and assess performance. Based on the CODM’s review, as well as the similar economic characteristics, nature of products, distribution methods and customers of the divisions, the Company has aggregated its operating segments into one reportable segment, “Geographic divisions.”

In addition to the Company’s reportable segment, the Company’s consolidated results include “Other reconciling items.” Other reconciling items comprises the Company’s corporate activities and other income and expenses not allocated to the operating segments.

The following tables present Net Sales, Adjusted EBITDA and certain other measures for the reportable segment and total Company operations for the three and six months ended June 30, 2020 and 2019. Adjusted EBITDA is used as a performance metric by the CODM in determining how to allocate resources and assess performance.

	Three Months Ended June 30, 2020
(in thousands)	Net Sales		Gross Profit		Depreciation & Amortization		Adjusted EBITDA
Geographic divisions	$	979,896	$	252,822	$	19,776	$	106,466
Other reconciling items	—		—		523		(16,117)
	$	979,896	$	252,822	$	20,299

	Three Months Ended June 30, 2019
(in thousands)	Net Sales		Gross Profit		Depreciation & Amortization		Adjusted EBITDA
Geographic divisions	$	946,375	$	245,777	$	17,000	$	90,017
Other reconciling items	—		—		632		(16,688)
	$	946,375	$	245,777	$	17,632

	Six Months Ended June 30, 2020
(in thousands)	Net Sales		Gross Profit		Depreciation & Amortization		Adjusted EBITDA
Geographic divisions	$	1,900,775	$	489,950	$	39,277	$	186,842
Other reconciling items	—		—		1,017		(35,487)
	$	1,900,775	$	489,950	$	40,294

	Six Months Ended June 30, 2019
(in thousands)	Net Sales		Gross Profit		Depreciation & Amortization		Adjusted EBITDA
Geographic divisions	$	1,771,780	$	461,899	$	33,147	$	163,785
Other reconciling items	—		—		1,277		(36,056)
	$	1,771,780	$	461,899	$	34,424

Reconciliation to consolidated financial statements:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Income before income taxes	$	56,786	$	46,189	$	86,279	$	72,539
Interest expense	6,204		5,574		12,136		11,612
Interest income	(339)		(844)		(922)		(1,785)
Depreciation and amortization	20,299		17,632		40,294		34,424
Merger and integration costs	357		1,382		1,525		4,172
Non-cash stock compensation expense	3,328		3,248		6,498		6,163
Acquisition costs	495		18		2,326		598
Business reorganization costs (a)	3,219		228		3,219		228
Other items (b)	—		(98)		—		(222)
Adjusted EBITDA of other reconciling items	16,117		16,688		35,487		36,056
Adjusted EBITDA of geographic divisions reportable segment	$	106,466	$	90,017	$	186,842	$	163,785

(a) For the three and six months ended June 30, 2020, represents asset impairment charges related to the closure or relocation of the operations of certain of the Company’s facilities (“Impairment Charges”), which were not related to the COVID-19 pandemic, and severance expense related to permanent headcount reductions due to the impact of the COVID-19 pandemic. For the three and six months ended June 30, 2019, represents Impairment Charges and the effect of certain customary post-closing adjustments related to the November 1, 2018 disposition of the Company’s Coleman Floor business.

(b) For the three months ended June 30, 2019, represents income from a recovery made by the Company related to a fire at one of the Company’s facilities during 2015 (the “Recovery Income”). For the six months ended June 30, 2019, represents the Recovery Income and the effect of the settlement of pending litigation for an amount below what was previously accrued.