Discontinued Operations

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

On November 1, 2018, the Company completed the sale of its mechanical insulation business (the "Disposed Business") to SPI LLC, an unrelated third party controlled by Dunes Point Capital, for total cash consideration of approximately $122.5 million and recorded a gain on the sale of $13.7 million, net of taxes. For the three and six months ended June 30, 2019, the Company recorded a loss on the sale of discontinued operations of $0 and $1.4 million, respectively, related to customary purchase price adjustments.

The Company reclassified the results of operations and cash flows of the Disposed Business to discontinued operations in its accompanying condensed consolidated statements of operations and condensed consolidated statements of cash flows for the three and six months ended June 30, 2018.

The summarized financial information related to the Disposed Business that has been excluded from continuing operations and reported as discontinued operations in the accompanying condensed consolidated statements of operations is as follows (in thousands):



	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
Net sales	$	82,754		$	155,390
Cost of goods sold	59,924			112,557
Gross profit	22,830			42,833
Operating expenses:
Selling, general and administrative expenses	15,632			32,402
Depreciation and amortization	1,590			3,079
Total operating expenses	17,222			35,481
Income from operations	5,608			7,352
Interest expense	(12		)	(25		)
Other expense, net	(4		)	(11		)
Income from discontinued operations before income taxes	5,592			7,316
Income tax expense	1,665			2,178
Net income from discontinued operations, net of tax	$	3,927		$	5,138

The operating results reflected above do not fully represent the Disposed Business' historical operating results, as the results reported within net income from discontinued operations only include expenses that are directly attributable to the Disposed Business.