Segments (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of net sales, adjusted EBITDA and certain other measures by reportable segment

The following tables present Net Sales, Adjusted EBITDA and certain other measures for the reportable segment and total Company operations for the three and nine months ended September 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 September 30, 2020
(in thousands)	Net Sales		Gross Profit		Depreciation & Amortization		Adjusted EBITDA
Geographic divisions	$	1,090,343	$	273,082	$	19,941	$	114,149
Other reconciling items	—		—		512		(14,961)
	$	1,090,343	$	273,082	$	20,453


	Three Months Ended September 30, 2019
(in thousands)	Net Sales		Gross Profit		Depreciation & Amortization		Adjusted EBITDA
Geographic divisions	$	964,249	$	254,767	$	17,974	$	96,752
Other reconciling items	—		—		561		(22,094)
	$	964,249	$	254,767	$	18,535


	Nine Months Ended September 30, 2020
(in thousands)	Net Sales		Gross Profit		Depreciation & Amortization		Adjusted EBITDA
Geographic divisions	$	2,991,118	$	763,032	$	59,218	$	300,991
Other reconciling items	—		—		1,529		(50,448)
	$	2,991,118	$	763,032	$	60,747


	Nine Months Ended September 30, 2019
(in thousands)	Net Sales		Gross Profit		Depreciation & Amortization		Adjusted EBITDA
Geographic divisions	$	2,736,029	$	716,666	$	51,121	$	260,537
Other reconciling items	—		—		1,838		(58,150)
	$	2,736,029	$	716,666	$	52,959

Reconciliation to consolidated financial statements

Reconciliation to consolidated financial statements:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Income before income taxes	$	58,701	$	46,787	$	144,980	$	119,326
Interest expense	5,744		5,773		17,880		17,385
Interest income	(224)		(1,047)		(1,146)		(2,832)
Depreciation and amortization	20,453		18,535		60,747		52,959
Merger-related costs	8,488		—		9,150		—
Acquisition and integration costs (a)	1,377		1,524		4,566		6,294
Non-cash stock compensation expense	4,612		3,014		11,110		9,177
Business reorganization costs (b)	37		72		3,256		300
Other items (c)	—		—		—		(222)
Adjusted EBITDA of other reconciling items	14,961		22,094		50,448		58,150
Adjusted EBITDA of geographic divisions reportable segment	$	114,149	$	96,752	$	300,991	$	260,537

(a) Represents costs for acquisitions and related integration costs, as well as system integration and other costs related to the integration of BMHC and SBS as a result of the 2015 merger transaction.

(b) For the three and nine months ended September 30, 2020, represents asset impairment and other charges related to the closure or relocation of the operations of certain of the Company’s facilities, 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 nine months ended September 30, 2019, represents asset 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.

(c) For the nine months ended September 30, 2019, represents income from a recovery made by the Company related to a fire at one of the Company’s facilities during 2015 and the effect of the settlement of pending litigation for an amount below what was previously accrued.