Discontinued Operations

9 Months Ended

Sep. 30, 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 three and nine months ended September 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 nine months ended September 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 September 30, 2018			Nine Months Ended September 30, 2018
Net sales	$	82,533		$	237,923
Cost of goods sold	60,125			172,682
Gross profit	22,408			65,241
Operating expenses:
Selling, general and administrative expenses	17,078			49,481
Depreciation and amortization	1,561			4,637
Total operating expenses	18,639			54,118
Income from operations	3,769			11,123
Interest expense	(11		)	(36		)
Other income (expense), net	5			(5		)
Income from discontinued operations before income taxes	3,763			11,082
Income tax expense	991			3,169
Net income from discontinued operations, net of tax	$	2,772		$	7,913

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.