Discontinued Operations

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

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 year ended December 31, 2019, the Company recorded a loss on the sale of discontinued operations of $1.6 million, net of taxes, related to customary purchase price adjustments.

For the year ended December 31, 2018, the Disposed Business met the criteria to be classified as held for sale and to be presented as discontinued operations. Accordingly, the Company reclassified the results of operations, financial position and cash flows of the Disposed Business to discontinued operations in its accompanying consolidated statements of operations, consolidated balance sheets and consolidated statements of cash flows for all periods presented.

The summarized financial information related to the Disposed Business that has been excluded from continuing operations and reported as discontinued operations in the accompanying consolidated statements of operations for the year ended December 31, 2018, is as follows:

	Year Ended December 31, 2018
Net sales	$	269,751
Cost of goods sold	195,767
Gross profit	73,984
Operating expenses:
Selling, general and administrative expenses	55,383
Depreciation and amortization	4,759
Total operating expenses	60,142
Income from operations	13,842
Interest expense	(38		)
Other expense, net	(6		)
Income from discontinued operations before income taxes	13,798
Income tax expense	3,275
Net income from discontinued operations, net of tax	$	10,523

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.