Supplemental Balance Sheet Data and Cash Flow Information

6 Months Ended

Jun. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Supplemental Balance Sheet Data and Cash Flow Information

Note 3 — Supplemental Balance Sheet Data and Cash Flow Information

Cash and cash equivalents — Cash and cash equivalents include securities with original maturities of three months or less and cash in banks. In June 2021, we invested $70.0 million in a money market fund. A money market fund is classified as a cash equivalent because of its short-term, highly liquid nature that is readily convertible to cash. Unrealized gains or losses are included in other operating expense (income) and were immaterial for the month of June 2021. The balance remained approximately $70.0 million at June 30, 2021. The fair value of money market funds is considered Level 1 in the fair value hierarchy because they are securities traded in active markets. Refer to Note 10, “Fair Value Measurement” for further detail.

In May 2021, we completed a public offering of 4.5 million shares of Class A common stock. Additionally, the underwriters completed the exercise of an allotment option to sell an additional 0.8 million shares (the public offering and the allotment option collectively referred to as the “May 2021 Equity Offering”). Cash proceeds received in the May 2021 Equity Offering, net of underwriting fees, commissions, and transaction expenses, were $103.4 million. We used the proceeds to prepay debt and invest in a money market fund. The balance will be used for general corporate purposes. Refer to Note 7, “Long-Term Debt” for further detail.

Accounts Receivable, net — The components of accounts receivable, net was follows:

	June 30, 2021			December 31, 2020
Accounts receivable	$	41.4		$	39.6
Allowance for doubtful accounts		(0.6	)		(0.5	)
Accounts receivable, net	$	40.8		$	39.1

At June 30, 2021 and December 31, 2020, certain customers’ accounts receivable balances exceeded 10% of accounts receivable. At June 30, 2021, one customer accounted for approximately 10.0% of our accounts receivable balance. At December 31, 2020, one customer accounted for approximately 12.9% of our accounts receivable balance.

Inventories, net — The components of inventories, net were as follows:

	June 30, 2021			December 31, 2020
Raw materials	$	14.1		$	9.8
Work-in-process		1.2			0.5
Finished goods		11.3			6.8
Total inventories		26.6			17.1
Reserve for obsolescence		(1.0	)		(1.0	)
Inventories, net	$	25.6		$	16.1

Property, Plant and Equipment, net — The following table details our property, plant and equipment, net:

	June 30, 2021			December 31, 2020
Land	$	4.2		$	4.2
Buildings and improvements		8.7			8.7
Machinery and equipment		18.0			15.3
Computer and office equipment		10.4			10.7
Converting machines		151.3			134.7
Total property, plant, and equipment		192.6			173.6
Accumulated depreciation		(67.8	)		(49.2	)
Property, plant, and equipment, net	$	124.8		$	124.4

Depreciation expense recorded in cost of goods sold and depreciation and amortization in the unaudited condensed consolidated statements of operations and comprehensive income (loss) was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Depreciation expense included in	2021		2020		2021		2020
Cost of goods sold	$	9.4	$	7.4	$	18.5	$	14.4
Depreciation and amortization expense		1.3		0.5		2.7		1.0
Total depreciation expense	$	10.7	$	7.9	$	21.2	$	15.4

Accrued Liabilities and Other – The components of accrued liabilities and other was as follows:

	June 30, 2021		December 31, 2020
Employee compensation	$	2.3	$	2.6
Taxes		6.6		3.5
Professional fees		3.3		1.2
Bonus		4.6		6.0
Interest		1.8		1.9
Exit Payment		-		8.2
Interest rate swap liability, current portion		4.6		4.6
Other		3.6		2.7
Accrued liabilities and other	$	26.8	$	30.7

Under our credit agreement, our lower leverage ratio at December 31, 2020 required us to pay our lenders an $8.2 million exit payment (the “Exit Payment”), which was paid in the first quarter of 2021.

Supplemental Cash Flow Information — Supplemental cash flow information is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Supplemental cash flow information
Interest paid	$	5.4	$	5.3	$	10.9	$	11.5
Taxes paid		4.3		0.9		5.0		1.5
Non-cash investing activities
Right-of-use assets obtained in exchange for lease liabilities	$	1.7	$	-	$	10.6	$	-
Equipment purchased under capital leases (ASC 840)		-		0.1		-		0.3
Capital expenditures in accounts payable	$	0.1	$	0.8	$	0.4	$	2.6