QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation | (I.R.S. Employer | |||||||
or organization) | Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
ý | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Item 1 - Financial Statements | ||||||||
Page No. | ||||||||
Part II - Other Information | ||||||||
June 30, | December 31, | ||||||||||||||||
2022 | 2021 | 2021 | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Trade accounts receivable, net | |||||||||||||||||
Inventories | |||||||||||||||||
Other current assets | |||||||||||||||||
Total current assets | |||||||||||||||||
Property, plant and equipment, net | |||||||||||||||||
Operating lease right-of-use assets | |||||||||||||||||
Goodwill | |||||||||||||||||
Intangible assets, net | |||||||||||||||||
Other noncurrent assets | |||||||||||||||||
Total assets | $ | $ | $ | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities | |||||||||||||||||
Trade accounts payable | $ | $ | $ | ||||||||||||||
Accrued liabilities and other current liabilities | |||||||||||||||||
Long-term debt, current portion | |||||||||||||||||
Total current liabilities | |||||||||||||||||
Operating lease liabilities | |||||||||||||||||
Long term debt, net of issuance costs | |||||||||||||||||
Deferred income tax and other long-term liabilities | |||||||||||||||||
Total liabilities | |||||||||||||||||
Commitments and contingencies (see Note 14) | |||||||||||||||||
Stockholders’ equity | |||||||||||||||||
Common stock, at par value | |||||||||||||||||
Additional paid-in capital | |||||||||||||||||
Retained earnings | |||||||||||||||||
Treasury stock | ( | ( | |||||||||||||||
Accumulated other comprehensive loss | ( | ( | ( | ||||||||||||||
Total stockholders’ equity | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development and other engineering | |||||||||||||||||||||||
Selling | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Acquisition and integration related costs | |||||||||||||||||||||||
Net gain on disposal of assets | ( | ( | ( | ( | |||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Interest expense, net and other finance costs | ( | ( | ( | ( | |||||||||||||||||||
Other & foreign exchange loss, net | ( | ( | ( | ( | |||||||||||||||||||
Income before taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Translation adjustment | ( | ( | ( | ||||||||||||||||||||
Unamortized pension adjustments | ( | ||||||||||||||||||||||
Cash flow hedge adjustment, net of tax | ( | ||||||||||||||||||||||
Comprehensive net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per common share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Number of shares outstanding | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Cash dividends declared per common share | $ | $ | $ | $ |
Common Stock | Additional Paid-in | Retained | Accumulated Other Comprehensive | Treasury | |||||||||||||||||||
Shares | Par Value | Capital | Earnings | Income (Loss) | Stock | Total | |||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Translation adjustment, net of tax | — | — | — | — | ( | — | ( | ||||||||||||||||
Pension adjustment and other, net of tax | — | — | — | — | — | ||||||||||||||||||
Cash flow hedges, net of tax | — | — | — | — | — | ||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||
Shares issued from release of Restricted Stock Units | — | — | — | ||||||||||||||||||||
Repurchase of common stock | ( | — | — | — | — | ( | ( | ||||||||||||||||
Cash dividends declared on common stock, $0.26 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Translation adjustment and other, net of tax | — | — | — | — | — | ||||||||||||||||||
Pension adjustment and other, net of tax | — | — | — | — | ( | — | ( | ||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||
Cash dividends declared on common stock, $0.25 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Balance, at June 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Additional Paid-in | Retained | Accumulated Other Comprehensive | Treasury | |||||||||||||||||||
Shares | Par Value | Capital | Earnings | Income (Loss) | Stock | Total | |||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||
Translation adjustment, net of tax | — | — | — | — | ( | — | ( | ||||||||||||||||
Pension adjustment and other, net of tax | — | — | — | — | — | ||||||||||||||||||
Cash flow hedges, net of tax | — | — | — | — | — | ||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||
Shares issued from release of Restricted Stock Units | ( | — | — | — | ( | ||||||||||||||||||
Repurchase of common stock | ( | — | — | — | — | ( | ( | ||||||||||||||||
Cash dividends declared on common stock, $0.51 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Common stock issued at $139.07 per share for stock bonus | — | — | — | ||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Translation adjustment, net of tax | — | — | — | — | ( | — | ( | ||||||||||||||||
Pension adjustment and other, net of tax | — | — | — | — | — | ||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||
Shares issued from release of Restricted Stock Units | ( | — | — | — | ( | ||||||||||||||||||
Cash dividends declared on common stock, $0.48 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Common stock issued at $93.45 per share for stock bonus | — | — | — | ||||||||||||||||||||
Balance, at June 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ |
Six Months Ended | |||||||||||
June 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Loss/(gain) on sale of assets and other | ( | ||||||||||
Depreciation and amortization | |||||||||||
Noncash lease expense | |||||||||||
Inventory step-up expense | |||||||||||
Loss/(gain) in equity method investment, before tax | ( | ||||||||||
Deferred income taxes | ( | ||||||||||
Noncash compensation related to stock plans | |||||||||||
Provision of doubtful accounts | ( | ||||||||||
Deferred hedge gain | ( | ||||||||||
Changes in operating assets and liabilities (net of amounts acquired from ETANCO. see Note 3) | |||||||||||
Trade accounts receivable | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Trade accounts payable | |||||||||||
Other current assets | ( | ( | |||||||||
Accrued liabilities and other current liabilities | |||||||||||
Other noncurrent assets and liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | ( | ( | |||||||||
Acquisitions, net of cash (see Note 3) | ( | ( | |||||||||
Equity method investments | ( | ( | |||||||||
Proceeds from sale of property and equipment | |||||||||||
Terminated forward contract | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities | |||||||||||
Termination of cash flow hedge | |||||||||||
Repurchase of common stock | ( | ||||||||||
Proceeds from borrowing under lines of credit and term loan | |||||||||||
Repayments of lines of credit and capital leases | ( | ( | |||||||||
Debt issuance costs | ( | ||||||||||
Dividends paid | ( | ( | |||||||||
Cash paid on behalf of employees for shares withheld | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | |||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Noncash activity during the period | |||||||||||
Noncash capital expenditures | $ | $ | |||||||||
Dividends declared but not paid | |||||||||||
Issuance of Company’s common stock for compensation | $ | $ | |||||||||
Balance at | Balance at | |||||||||||||
(in thousands) | December 31, 2021 | Expense (Deductions), net | Write-Offs1 | June 30, 2022 | ||||||||||
Allowance for Doubtful Accounts | $ | ( | $ |
(in thousands) | Amount | ||||
Cash and cash equivalents | $ | ||||
Trade accounts receivable, net | |||||
Inventory | |||||
Other current assets | |||||
Property and equipment, net | |||||
Operating lease right-of-use assets | |||||
Goodwill | |||||
Intangible assets, net | |||||
Other noncurrent assets | |||||
Total assets | |||||
Trade accounts payable | |||||
Accrued liabilities and other current liabilities | |||||
Operating lease liabilities | |||||
Deferred income tax and other long-term liabilities | |||||
Total purchase price | $ |
(in thousands except useful lives) | Weighted-average useful life (in years) | Amount | ||||||
Customer relationships | $ | |||||||
Trade names | Indefinite | |||||||
Developed technology | ||||||||
$ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Pro forma earnings per common share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income available to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Basic weighted-average shares outstanding | |||||||||||||||||||||||
Dilutive effect of potential common stock equivalents — restricted stock units | |||||||||||||||||||||||
Diluted weighted-average shares outstanding | |||||||||||||||||||||||
Net income per common share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ |
At June 30, | At December 31, | ||||||||||||||||
(in thousands) | 2022 | 2021 | 2021 | ||||||||||||||
Trade accounts receivable | $ | $ | $ | ||||||||||||||
Allowance for doubtful accounts | ( | ( | ( | ||||||||||||||
Allowance for sales discounts and returns | ( | ( | ( | ||||||||||||||
$ | $ | $ |
At June 30, | At December 31, | ||||||||||||||||
(in thousands) | 2022 | 2021 | 2021 | ||||||||||||||
Raw materials | $ | $ | $ | ||||||||||||||
In-process products | |||||||||||||||||
Finished products | |||||||||||||||||
$ | $ | $ |
2022 | 2021 | ||||||||||||||||||||||||||||
(in thousands) | Cost of sales | Interest expense, net | Other & foreign exchange loss, net | Cost of sales | |||||||||||||||||||||||||
Total amounts of income and expense line items presented in the Condensed Consolidated Statement of Earnings in which the effects of fair value or cash flow hedges are recorded | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||
The effects of fair value and cash flow hedging | |||||||||||||||||||||||||||||
Gain or (loss) on cash flow hedging relationships | |||||||||||||||||||||||||||||
Interest contracts: | |||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from OCI to earnings | — | ( | |||||||||||||||||||||||||||
Cross currency swap contract | |||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from OCI to earnings | — | ||||||||||||||||||||||||||||
Forward contract | |||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from OCI to earnings |
Cash Flow Hedging Relationships | Gain (Loss) Recognized in OCI | Location of Gain (Loss) Reclassified from OCI into Earnings | Gain (Loss) Reclassified from OCI into Earnings | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Interest rate contracts | $ | $ | Interest expense | $ | ( | $ | ||||||||||||||
Cross currency contracts | Interest expense | |||||||||||||||||||
FX gain (loss) | ||||||||||||||||||||
Forward contracts | $ | $ | Cost of goods sold | |||||||||||||||||
Total | $ | $ | $ | $ |
Cash Flow Hedging Relationships | Gain (Loss) Recognized in OCI | Location of Gain (Loss) Reclassified from OCI into Earnings | Gain (Loss) Reclassified from OCI into Earnings | |||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||
Interest rate contracts | $ | $ | Interest expense | $ | ( | $ | ||||||||||||||
Cross currency contracts | Interest expense | |||||||||||||||||||
FX gain (loss) | ||||||||||||||||||||
Forward contracts | Cost of goods sold | |||||||||||||||||||
Total | $ | $ | $ | $ |
At June 30, | At December 31, | ||||||||||||||||
(in thousands) | 2022 | 2021 | 2021 | ||||||||||||||
Land | $ | $ | $ | ||||||||||||||
Buildings and site improvements | |||||||||||||||||
Leasehold improvements | |||||||||||||||||
Machinery, equipment, and software | |||||||||||||||||
Less accumulated depreciation and amortization | ( | ( | ( | ||||||||||||||
Capital projects in progress | |||||||||||||||||
Total | $ | $ | $ |
At June 30, | At December 31, | ||||||||||||||||
(in thousands) | 2022 | 2021 | 2021 | ||||||||||||||
North America | $ | $ | $ | ||||||||||||||
Europe | |||||||||||||||||
Asia/Pacific | |||||||||||||||||
Total | $ | $ | $ |
At June 30, 2022 | |||||||||||||||||
Gross | Accumulated | Net | |||||||||||||||
Carrying | Amortization | Carrying | |||||||||||||||
(in thousands) | Amount | & FX change | Amount | ||||||||||||||
North America | $ | $ | ( | $ | |||||||||||||
Europe | ( | ||||||||||||||||
Total | $ | $ | ( | $ |
At June 30, 2021 | |||||||||||||||||
Gross | Net | ||||||||||||||||
(in thousands) | Carrying Amount | Accumulated Amortization | Carrying Amount | ||||||||||||||
North America | $ | $ | ( | $ | |||||||||||||
Europe | ( | ||||||||||||||||
Total | $ | $ | ( | $ |
At December 31, 2021 | |||||||||||||||||
Gross | Net | ||||||||||||||||
(in thousands) | Carrying Amount | Accumulated Amortization | Carrying Amount | ||||||||||||||
North America | $ | $ | ( | $ | |||||||||||||
Europe | ( | ||||||||||||||||
Total | $ | $ | ( | $ |
(in thousands) | |||||
Remaining six months of 2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
$ |
Intangible | |||||||||||
(in thousands) | Goodwill | Assets | |||||||||
Balance at December 31, 2021 | $ | $ | |||||||||
Acquisition of ETANCO | |||||||||||
Amortization | — | ( | |||||||||
Foreign exchange | ( | ( | |||||||||
Balance at June 30, 2022 | $ | $ |
Condensed Consolidated Balance Sheets Line Item | June 30, | December 31, | ||||||||||||
(in thousands) | 2022 | 2021 | 2021 | |||||||||||
Operating leases | ||||||||||||||
Assets | ||||||||||||||
Operating leases | Operating lease right-of-use assets | $ | $ | $ | ||||||||||
Liabilities | ||||||||||||||
Operating - current | Accrued expenses and other current liabilities | $ | $ | |||||||||||
Operating - noncurrent | Operating lease liabilities | |||||||||||||
Total operating lease liabilities | $ | $ | $ | |||||||||||
Finance leases | ||||||||||||||
Assets | ||||||||||||||
Property and equipment, gross | Property, plant and equipment, net | $ | $ | $ | ||||||||||
Accumulated amortization | Property, plant and equipment, net | ( | ( | ( | ||||||||||
Property and equipment, net | Property, plant and equipment, net | $ | $ | $ | ||||||||||
Liabilities | ||||||||||||||
Other current liabilities | Accrued expenses and other current liabilities | $ | $ | $ | ||||||||||
Total finance lease liabilities | $ | $ | $ |
Condensed Consolidated Statements of Earnings and Comprehensive Income Line Item | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Operating lease cost | General administrative expenses and cost of sales | $ | $ | $ | $ | ||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||
Amortization of right-of-use assets | General administrative expenses | $ | $ | $ | $ | ||||||||||||||||||
Interest on lease liabilities | Interest expense, net | ||||||||||||||||||||||
Total finance lease | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows for operating leases | $ | $ | $ | $ | |||||||||||||
Finance cash flows for finance leases | |||||||||||||||||
Operating right-of-use assets obtained in exchange for lease obligations during the current period | |||||||||||||||||
(in thousands) | Operating Leases | ||||
Remaining six months of 2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total lease payments | |||||
Less: Present value discount | ( | ||||
Total lease liabilities | $ |
Weighted-average remaining lease terms (in years): | 2022 | 2021 | |||||||||
Operating leases | |||||||||||
Weighted-average discount rate: | |||||||||||
Operating leases | % | % | |||||||||
(in thousands) | 5-Year Term Loan | ||||
Remaining six months of 2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Total loan outstanding | $ | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Net Sales | ||||||||||||||
North America | $ | $ | $ | $ | ||||||||||
Europe | ||||||||||||||
Asia/Pacific | ||||||||||||||
Total | $ | $ | $ | $ | ||||||||||
Sales to Other Segments* | ||||||||||||||
North America | $ | $ | $ | $ | ||||||||||
Europe | ||||||||||||||
Asia/Pacific | ||||||||||||||
Total | $ | $ | $ | $ | ||||||||||
Income (Loss) from Operations ** | ||||||||||||||
North America | $ | $ | $ | $ | ||||||||||
Europe | ||||||||||||||
Asia/Pacific | ||||||||||||||
Administrative and all other | ( | ( | ( | ( | ||||||||||
Total | $ | $ | $ | $ |
At | |||||||||||
At June 30, | December 31, | ||||||||||
(in thousands) | 2022 | 2021 | 2021 | ||||||||
Total Assets | |||||||||||
North America | $ | $ | $ | ||||||||
Europe | |||||||||||
Asia/Pacific | |||||||||||
Administrative and all other | ( | ( | |||||||||
Total | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Wood construction products | $ | $ | $ | $ | ||||||||||||||||
Concrete construction products | ||||||||||||||||||||
Other | ||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Three Months Ended | |||||||||||||||||||
Increase (Decrease) in Operating Segment | ||||||||||||||||||||
June 30, | North | Asia/ | Admin & | June 30, | ||||||||||||||||
(in thousands) | 2021 | America | Europe | Pacific | All Other | 2022 | ||||||||||||||
Net sales | $ | 410,281 | $ | 105,853 | $ | 76,800 | $ | 298 | $ | — | $ | 593,232 | ||||||||
Cost of sales | 213,835 | 61,538 | 58,075 | 407 | 44 | 333,899 | ||||||||||||||
Gross profit | 196,446 | 44,315 | 18,725 | (109) | (44) | 259,333 | ||||||||||||||
Research and development and other engineering expense | 14,169 | 2,506 | 225 | 44 | (1) | 16,943 | ||||||||||||||
Selling expense | 33,167 | 5,190 | 6,690 | 26 | 1 | 45,074 | ||||||||||||||
General and administrative expense | 47,410 | 534 | 6,259 | (75) | 4,291 | 58,419 | ||||||||||||||
Total operating expenses | 94,746 | 8,230 | 13,174 | (5) | 4,291 | 120,436 | ||||||||||||||
Acquisition and integration related costs | — | — | 5,864 | — | — | 5,864 | ||||||||||||||
Net loss (gain) on disposal of assets | (28) | (15) | — | — | — | (43) | ||||||||||||||
Income from operations | 101,728 | 36,100 | (313) | (104) | (4,335) | 133,076 | ||||||||||||||
Interest income (expense), net and other | (420) | 7 | (3,524) | 1 | 564 | (3,372) | ||||||||||||||
Other & foreign exchange loss, net | (2,216) | (3,123) | (329) | 713 | 3,065 | (1,890) | ||||||||||||||
Income (loss) before income taxes | 99,092 | 32,984 | (4,166) | 610 | (706) | 127,814 | ||||||||||||||
Provision for income taxes | 26,609 | 9,109 | (2,579) | 228 | 877 | 34,244 | ||||||||||||||
Net income (loss) | $ | 72,483 | $ | 23,875 | $ | (1,587) | $ | 382 | $ | (1,583) | $ | 93,570 |
North | Asia/ | ||||||||||||||||||||||||||||
(in thousands) | America | Europe | Pacific | Total | |||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||
June 30, 2021 | $ | 350,557 | $ | 56,438 | $ | 3,286 | $ | 410,281 | |||||||||||||||||||||
June 30, 2022 | 456,410 | 133,238 | 3,584 | 593,232 | |||||||||||||||||||||||||
Increase | $ | 105,853 | $ | 76,800 | $ | 298 | $ | 182,951 | |||||||||||||||||||||
Percentage increase | 30.2 | % | 136.1 | % | 9.1 | % | 44.6 | % |
North America | Europe | Asia/ Pacific | Total | ||||||||||||||||||||
Percentage of total 2021 net sales | 85 | % | 14 | % | 1 | % | 100 | % | |||||||||||||||
Percentage of total 2022 net sales | 77 | % | 22 | % | 1 | % | 100 | % |
North | Asia/ | Admin & | |||||||||||||||||||||||||||
(in thousands) | America | Europe | Pacific | All Other | Total | ||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||
June 30, 2021 | $174,984 | $20,298 | $1,207 | $(43) | $196,446 | ||||||||||||||||||||||||
June 30, 2022 | 219,299 | 39,023 | 1,098 | (87) | 259,333 | ||||||||||||||||||||||||
Increase (decrease) | $44,315 | $18,725 | $(109) | $(44) | $62,887 | ||||||||||||||||||||||||
Percentage Increase (decrease) | 25.3 | % | 92.3 | % | * | * | 32.0 | % |
North America | Europe | Asia/ Pacific | Admin & All Other | Total | |||||||||||||||||||||||||
2021 gross margin percentage | 49.9 | % | 36.0 | % | 36.7 | % | * | 47.9 | % | ||||||||||||||||||||
2022 gross margin percentage | 48.0 | % | 29.3 | % | 30.6 | % | * | 43.7 | % |
Six Months Ended | Increase (Decrease) in Operating Segment | Six Months Ended | |||||||||||||||||||||||||||||||||
June 30, | North | Asia/ | Admin & | June 30, | |||||||||||||||||||||||||||||||
(in thousands) | 2021 | America | Europe | Pacific | All Other | 2022 | |||||||||||||||||||||||||||||
Net sales | $ | 757,922 | $ | 244,020 | $ | 83,955 | $ | 905 | $ | — | $ | 1,086,802 | |||||||||||||||||||||||
Cost of sales | 399,195 | 124,214 | 63,027 | 810 | 3,442 | 590,688 | |||||||||||||||||||||||||||||
Gross profit | 358,727 | 119,806 | 20,928 | 95 | (3,442) | 496,114 | |||||||||||||||||||||||||||||
Research and development and other engineering expense | 28,758 | 3,895 | 116 | 38 | 2 | 32,809 | |||||||||||||||||||||||||||||
Selling expense | 63,990 | 10,844 | 6,954 | 108 | 14 | 81,910 | |||||||||||||||||||||||||||||
General and administrative expense | 95,975 | 2,867 | 6,101 | (156) | 7,405 | 112,192 | |||||||||||||||||||||||||||||
188,723 | 17,606 | 13,171 | (10) | 7,421 | 226,911 | ||||||||||||||||||||||||||||||
Acquisition and integration related costs | — | — | 12,815 | — | — | 12,815 | |||||||||||||||||||||||||||||
Net gain on disposal of assets | (108) | (3) | (1,084) | 69 | — | (1,126) | |||||||||||||||||||||||||||||
Income (loss) from operations | 170,112 | 102,203 | (3,974) | 36 | (10,863) | 257,514 | |||||||||||||||||||||||||||||
Interest income (expense), net and other | (765) | 25 | (3,553) | (6) | 714 | (3,585) | |||||||||||||||||||||||||||||
Other & foreign exchange loss, net | (3,648) | (7,158) | (1,243) | 874 | 9,068 | (2,107) | |||||||||||||||||||||||||||||
Income (loss) before income taxes | 165,699 | — | 95,070 | — | (8,770) | 904 | — | (1,081) | 251,822 | ||||||||||||||||||||||||||
Provision for income taxes | 42,827 | 23,599 | (4,249) | 375 | 1,125 | 63,677 | |||||||||||||||||||||||||||||
Net income | $ | 122,872 | $ | 71,471 | $ | (4,521) | $ | 529 | $ | (2,206) | $ | 188,145 |
North | Asia/ | ||||||||||||||||||||||
(in thousands) | America | Europe | Pacific | Total | |||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||
June 30, 2021 | $ | 651,120 | $ | 100,734 | $ | 6,068 | $ | 757,922 | |||||||||||||||
June 30, 2022 | 895,140 | 184,689 | 6,973 | 1,086,802 | |||||||||||||||||||
Increase | $ | 244,020 | $ | 83,955 | $ | 905 | $ | 328,880 | |||||||||||||||
Percentage increase | 37.5 | % | 83.3 | % | 14.9 | % | 43.4 | % |
North America | Europe | Asia/ Pacific | Total | ||||||||||||||||||||
Percentage of total 2020 net sales | 86 | % | 13 | % | 1 | % | 100 | % | |||||||||||||||
Percentage of total 2021 net sales | 82 | % | 17 | % | 1 | % | 100 | % |
North | Asia/ | Admin & | |||||||||||||||||||||||||||
(in thousands) | America | Europe | Pacific | All Other | Total | ||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2021 | $ | 317,369 | $ | 35,548 | $ | 2,451 | $ | 3,359 | $ | 358,727 | |||||||||||||||||||
June 30, 2022 | 437,175 | 56,476 | 2,546 | (83) | 496,114 | ||||||||||||||||||||||||
Increase (decrease) | $ | 119,806 | $ | 20,928 | $ | 95 | $ | (3,442) | $ | 137,387 | |||||||||||||||||||
Percentage increase | 37.7 | % | 58.9 | % | * | * | 38.3 | % |
(in thousand) | North America | Europe | Asia/ Pacific | Admin & All Other | Total | ||||||||||||||||||||||||
2021 gross margin percentage | 48.7 | % | 35.3 | % | 40.4 | % | * | 47.3 | % | ||||||||||||||||||||
2022 gross margin percentage | 48.8 | % | 30.6 | % | 36.5 | % | * | 45.6 | % |
At June 30, | At December 31, | At June 30, | ||||||||||||||||||
(in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Cash and cash equivalents | $ | 246,134 | $ | 301,155 | $ | 305,796 | ||||||||||||||
Property, plant and equipment, net | 346,184 | 259,869 | 255,353 | |||||||||||||||||
Goodwill, intangible assets and other | 862,055 | 170,309 | 164,511 | |||||||||||||||||
Working capital less cash and cash equivalents | 597,079 | 453,078 | 363,453 |
Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2022 | 2021 | ||||||||||||
Net cash provided by (used in): | ||||||||||||||
Operating activities | $ | 138,451 | $ | 81,632 | ||||||||||
Investing activities | (833,552) | (26,214) | ||||||||||||
Financing activities | 631,531 | (25,603) |
(a) | (b) | (c) | (d) | |||||||||||||||||||||||
Period | Total Number of Shares Purchased [1][2] | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs [2] | Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs [2] | ||||||||||||||||||||||
April 1 - April 30, 2022 | — | — | $ | 78,719,058 | ||||||||||||||||||||||
May 1 - May 31, 2022 | 10 | 110.38 | — | 78,719,058 | ||||||||||||||||||||||
June 1 - June 30, 2022 | 260,285 | 96.05 | 260,285 | $ | 53,719,063 | |||||||||||||||||||||
Total | 260,295 | |||||||||||||||||||||||||
EXHIBIT INDEX | ||||||||
3.1 | ||||||||
3.2 | ||||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Schema Linkbase Document | |||||||
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Labels Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Simpson Manufacturing Co., Inc. | ||||||||||||||
(Registrant) | ||||||||||||||
DATE: | August 9, 2022 | By /s/Brian J. Magstadt | ||||||||||||
Brian J. Magstadt | ||||||||||||||
Chief Financial Officer | ||||||||||||||
(principal accounting and financial officer) | ||||||||||||||
DATE: | August 9, 2022 | By /s/Karen Colonias | ||||||||||||
Karen Colonias | ||||||||||||||
Chief Executive Officer |
DATE: | August 9, 2022 | By /s/Brian J. Magstadt | ||||||||||||
Brian J. Magstadt | ||||||||||||||
Chief Financial Officer |
DATE: | August 9, 2022 | By /s/Karen Colonias | ||||||||||||
Karen Colonias | ||||||||||||||
Chief Executive Officer | ||||||||||||||
By /s/Brian J. Magstadt | ||||||||||||||
Brian J. Magstadt | ||||||||||||||
Chief Financial Officer | ||||||||||||||
Condensed Consolidated Statements of Earnings and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income Statement [Abstract] | ||||
Net sales | $ 593,232 | $ 410,281 | $ 1,086,802 | $ 757,922 |
Cost of sales | 333,899 | 213,835 | 590,688 | 399,195 |
Gross profit | 259,333 | 196,446 | 496,114 | 358,727 |
Operating expenses: | ||||
Research and development and other engineering | 16,943 | 14,169 | 32,809 | 28,758 |
Selling | 45,074 | 33,167 | 81,910 | 63,990 |
General and administrative | 58,419 | 47,410 | 112,192 | 95,975 |
Total operating expenses | 120,436 | 94,746 | 226,911 | 188,723 |
Acquisition and integration related costs | 5,864 | 0 | 12,815 | 0 |
Net gain on disposal of assets | (43) | (28) | (1,126) | (108) |
Income from operations | 133,076 | 101,728 | 257,514 | 170,112 |
Interest expense, net and other finance costs | (3,372) | (420) | (3,585) | (765) |
Other & foreign exchange loss, net | (1,890) | (2,216) | (2,107) | (3,648) |
Income before taxes | 127,814 | 99,092 | 251,822 | 165,699 |
Provision for income taxes | 34,244 | 26,609 | 63,677 | 42,827 |
Net income | 93,570 | 72,483 | 188,145 | 122,872 |
Other comprehensive income | ||||
Translation adjustment | (27,817) | 7,505 | (27,819) | (1,759) |
Unamortized pension adjustments | 860 | (102) | 689 | 390 |
Cash flow hedge adjustment, net of tax | 18,489 | (7) | 8,542 | 19 |
Comprehensive net income | $ 85,102 | $ 79,879 | $ 169,557 | $ 121,522 |
Net income per common share: | ||||
Basic | $ 2.17 | $ 1.67 | $ 4.36 | $ 2.83 |
Diluted | $ 2.16 | $ 1.66 | $ 4.34 | $ 2.82 |
Number of shares outstanding | ||||
Basic | 43,145 | 43,434 | 43,162 | 43,406 |
Diluted | 43,240 | 43,641 | 43,306 | 43,620 |
Cash dividends declared per common share | $ 0.26 | $ 0.25 | $ 0.51 | $ 0.48 |
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share | $ 0.26 | $ 0.25 | $ 0.51 | $ 0.48 |
Common stock issued per share for stock bonus (in USD per share) | $ 0 | $ 0 | $ 139.07 | $ 93.45 |
Condensed Consolidated Statements of Stockholders' Equity (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
|
Net income | $ 93,570 | $ 72,483 | $ 188,145 | $ 122,872 | ||||
Stockholders' Equity Attributable to Parent | 1,284,638 | 1,086,905 | 1,284,638 | 1,086,905 | $ 1,231,811 | $ 1,183,998 | $ 1,014,509 | $ 980,943 |
Issuance of Company’s common stock for compensation | 960 | 692 | ||||||
Retained Earnings | ||||||||
Net income | 93,570 | 72,483 | 188,145 | 122,872 | ||||
Stockholders' Equity Attributable to Parent | $ 1,072,959 | $ 822,497 | $ 1,072,959 | $ 822,497 | $ 990,611 | $ 906,841 | $ 760,862 | $ 720,441 |
Common Stock | ||||||||
Common Stock, Shares, Issued | 42,906,000 | 43,437,000 | 42,906,000 | 43,437,000 | 43,159,000 | 43,217,000 | 43,430,000 | 43,326,000 |
Stockholders' Equity Attributable to Parent | $ 433 | $ 435 | $ 433 | $ 435 | $ 433 | $ 432 | $ 435 | $ 433 |
Issuance of Company’s common stock for compensation | 0 | 1 | ||||||
Additional Paid-in Capital | ||||||||
Stockholders' Equity Attributable to Parent | 293,720 | 289,261 | 293,720 | 289,261 | 289,773 | 294,330 | 285,896 | 284,007 |
Issuance of Company’s common stock for compensation | 960 | 691 | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Stockholders' Equity Attributable to Parent | (36,193) | (11,778) | (36,193) | (11,778) | (27,725) | (17,605) | (19,174) | (10,428) |
Treasury Stock [Member] | ||||||||
Stockholders' Equity Attributable to Parent | $ (46,281) | $ (13,510) | $ (46,281) | $ (13,510) | $ (21,281) | $ 0 | $ (13,510) | $ (13,510) |
Basis of Presentation |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Simpson Manufacturing Co., Inc. and its subsidiaries (collectively, the “Company”). Investments in 50% or less owned entities are accounted for using either cost or the equity method. All significant intercompany transactions have been eliminated. Use of Estimates The preparation of the condensed financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that these condensed consolidated financial statements include all normal and recurring adjustments necessary for a fair presentation under GAAP. The Company assessed certain accounting matters that require the use of estimates and assumptions in context with the known and projected future impacts of COVID-19. The Company's actual results could differ materially from those estimates. Interim Reporting Period The accompanying unaudited quarterly condensed consolidated financial statements have been prepared in accordance with GAAP pursuant to the rules and regulations for reporting interim financial information and instructions on Form 10-Q. Accordingly, certain information and footnotes required by GAAP have been condensed or omitted. These interim statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the “2021 Form 10-K”). The unaudited quarterly condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial information set forth therein in accordance with GAAP. Certain prior period amounts in the condensed consolidated financial statements and the accompanying notes have been reclassified to conform to the current period’s presentation. The year-end condensed consolidated balance sheet data provided herein were derived from audited financial statements included in the 2021 Form 10-K, but do not include all disclosures required by GAAP. The Company’s quarterly results fluctuate. As a result, the Company believes the results of operations for this interim period presented are not indicative of the results to be expected for any future periods. Revenue Recognition Generally, the Company's revenue contract with a customer exists when (1) the goods are shipped, services are rendered, and the related invoice is generated, (2) the duration of the contract does not extend beyond the promised goods or services already transferred and (3) the transaction price of each distinct promised product or service specified in the invoice is based on its relative stated standalone selling price. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a product to a customer at a point in time. Our shipping terms provide the primary indicator of the transfer of control. The Company's general shipping terms are Incoterm C.P.T. (F.O.B. shipping point), where the title, and risk and rewards of ownership transfer at the point when the products are no longer on the Company's premises. Other Incoterms are allowed as exceptions depending on the product or service being sold and the nature of the sale. The Company recognizes revenue based on the consideration specified in the invoice with a customer, excluding any sales incentives, discounts, and amounts collected on behalf of third parties (i.e., governmental tax authorities). Based on historical experience with the customer, the customer's purchasing pattern, and its significant experience selling products, the Company concluded that a significant reversal in the cumulative amount of revenue recognized would not occur when the uncertainty (if any) is resolved (that is, when the total amount of purchases is known). Refer to Note 2 for additional information. Net Income Per Common Share The Company calculates net income per common share based on the weighted-average number of shares of the Company's common stock outstanding during the period. Potentially dilutive securities are included in the diluted per-share calculations using the treasury stock method for all periods when the effect of their inclusion is dilutive. Accounting for Leases The Company has operating and finance leases for certain facilities, equipment, autos and data centers. As an accounting policy for short-term leases, the Company elected to not recognize a right-of-use asset ("ROU asset") and liability if, at the commencement date, the lease (1) has a term of 12 months or less and (2) does not include renewal and purchase options that the Company is reasonably certain to exercise. Monthly payments on short-term leases are recognized on a straight-line basis over the full lease term. Accounting for Stock-Based Compensation The Company recognizes stock-based compensation expense related to the estimated fair value of restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years. Stock-based expense related to performance share grants are measured based on grant date fair value and expensed on a graded basis over the service period of the awards, which is generally a performance period of three years. The performance conditions are based on the Company's achievement of revenue growth and return on invested capital over the performance period, and are evaluated for the probability of vesting at the end of each reporting period with changes in expected results recognized as an adjustment to expense. The assumptions used to calculate the fair value of restricted stock grants are evaluated and revised, as necessary, to reflect market conditions and the Company’s experience. Fair Value of Financial Instruments Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified under a three-tier fair valuation hierarchy based on the observability of the inputs available in the market: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of trade accounts receivable, accounts payable, accrued liabilities and other current liabilities approximate fair value due to the short-term nature of these instruments. The fair values of the interest rate and foreign currency contracts are classified as Level 2 within the fair value hierarchy. The fair values of the Company’s contingent consideration related to acquisitions and equity investments are classified as Level 3 within the fair value hierarchy, as these amounts are based on unobserved inputs such as management estimates and entity-specific assumptions and are evaluated on an ongoing basis. Derivative Instruments The Company uses derivative instruments as a risk management tool to mitigate the potential impact of certain market risks. Foreign currency and interest rate risk are the primary market risks the Company manages through the use of derivative instruments, which are accounted for as cash flow hedges or net investment hedges under the accounting standards and carried at fair value as other current or noncurrent assets or as other current or other long-term liabilities in the condensed consolidated balance sheets. Assets and liabilities with the legal right of offset are not offset in the condensed consolidated balance sheets. Net deferred gains and losses related to changes in fair value of cash flow hedges are included in accumulated other comprehensive income/loss ("OCI"), a component of stockholders' equity in the condensed consolidated balance sheets, and are reclassified into the line item in the condensed consolidated statement of earnings and comprehensive income in which the hedged items are recorded in the same period the hedged item affects earnings. The effective portion of gains and losses attributable to net investment hedges is recorded net of tax to OCI to offset the change in the carrying value of the net investment being hedged. Recognition in earnings of amounts previously recorded to OCI are limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. Changes in fair value of any derivatives that are determined to be ineffective are immediately reclassified from OCI into earnings. Cash and Cash Equivalents The Company classifies investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. As of June 30, 2022 and 2021, the value of these investments were $42.4 million and $57.1 million, respectively, consisting of United States Treasury securities and money market funds. The value of the investments is based on cost, which approximates fair value based on Level 1 inputs. Current Estimated Credit Loss - Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts receivable for estimated future expected credit losses resulting from customers' failure to make payments on its accounts receivable. The Company determines the estimate of the allowance for doubtful accounts receivable by considering several factors, including (1) specific information on the financial condition and the current creditworthiness of customers, (2) credit rating, (3) payment history and historical experience, (4) aging of the accounts receivable, and (5) reasonable and supportable forecasts about collectability. The Company also reserves 100% of the amounts deemed uncollectible due to a customer's deteriorating financial condition or bankruptcy. Every quarter, the Company evaluates the customer group using the accounts receivable aging report and its best judgment when considering changes in customers' credit ratings, level of delinquency, customers' historical payments and loss experience, current market and economic conditions, and expectations of future market and economic conditions. The changes in the allowance for doubtful accounts receivable for the six months ended June 30, 2022 are outlined in the table below:
1Amount is net of recoveries and the effect of foreign currency fluctuations. Income Taxes Income taxes are calculated using an asset and liability approach. The provision for income taxes includes federal, state and foreign taxes currently payable and deferred taxes, due to temporary differences between the financial statement and tax bases of assets and liabilities. In addition, future tax benefits are recognized to the extent that realization of such benefits is more likely than not. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws in the year of enactment. The Company uses an estimated annual tax rate to measure the tax benefit or tax expense recognized in each interim period. Accounting Standards Not Yet Adopted In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 provides optional guidance to ease the potential burden in accounting for reference rate reform on financial reporting in response to the market transition from the London Interbank Offered Rate (“LIBOR”). The Company's primary credit facility, which was amended and restated on March 30, 2022, is composed of $450.0 million revolving line of credit and a $450.0 million term loan (the "Amended and Restated Credit Facility"), which matures on March 30, 2027. Borrowings under the Amended and Restated Credit Facility bear interest using Secured Overnight Financing Rate ("SOFR") plus an applicable margin in lieu of LIBOR. All other newly issued and effective accounting standards during the second quarter of 2022 were determined to be not relevant or material to the Company.
|
Revenue from Contracts with Customers |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregated Revenue The Company disaggregates net sales into the following major product groups as described in its segment information included in these interim financial statements under Note 15. Wood Construction Products Revenue. Wood construction products represented 87%, respectively, of total net sales for the six months ended June 30, 2022 and 2021. Concrete Construction Products Revenue. Concrete construction products represented 13%, respectively, of total net sales for both the six months ended June 30, 2022 and 2021. Customer Acceptance Criteria. Generally, there are no customer acceptance criteria included in the Company's standard sales agreement with customers. When an arrangement with the customer does not meet the criteria to be accounted for as a revenue contract under the standard, the Company recognizes revenue in the amount of nonrefundable consideration received when the Company has transferred control of the goods or services and has stopped transferring (and has no obligation to transfer) additional goods or services. The Company offers certain customers discounts for paying invoices ahead of the due date, which are generally 30 to 60 days after the issue date. Other Revenue. Service sales, representing after-market repair and maintenance, engineering activities and software license sales and services were less than 0.1% of net sales and recognized as the services are completed or by transferring control over a product to a customer at a point in time. Services may be sold separately or in bundled packages. The typical contract length for a service is generally less than one year. For bundled packages, the Company accounts for individual services separately when they are distinct within the context of the contract. A distinct service is separately identifiable from other items in the bundled package if a customer can benefit from it on its own or with other resources that are readily available to the customer. The consideration (including any discounts) is allocated between separate services in a bundle based on their stand-alone selling prices. The stand-alone selling prices are determined based on the prices at which the Company separately sells the services. Reconciliation of Contract Balances Contract assets are the rights to consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditional on something other than the passage of time. Contract liabilities are recorded for any services billed to customers and not yet recognizable if the contract period has commenced or for the amount collected from customers in advance of the contract period commencing. As of June 30, 2022, the Company had no contract assets or contract liabilities from contracts with customers.
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Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisition On April 1, 2022, the Company completed its acquisition of 100% of the outstanding equity interest of FIXCO Invest S.A.S. (together with its subsidiaries, "ETANCO") for total purchase consideration of $805.4 million, net of cash acquired (the "Acquisition"). The Acquisition was completed pursuant to the securities purchase agreement dated January 26, 2022, as amended (the “SPA”), by and among the Company, Fastco Investment, Fastco Financing, LRLUX and certain other security holders. The purchase price for the Acquisition was paid using cash on hand and borrowings in the amount of $250.0 million under the revolving credit facility and $450.0 million under the term loan facility. See Note 13 for further information on the Amended and Restated Credit Facility. ETANCO is a manufacturer and distributor of fastener and fixing products headquartered in France and its primary product applications directly align with the addressable markets in which the Company operates. The Acquisition will allow the Company to enter into new commercial building markets such as façades, waterproofing, safety and solar, as well as grow its share of direct business sales in Europe. ETANCO’s results of operations were included in the Company's consolidated financial statements from the date of acquisition. For the period subsequent to the acquisition that is included in both the three months and six months ended June 30, 2022, ETANCO had net sales of $80.3 million and a net loss of $2.0 million, which includes costs related to fair-value adjustments for acquired inventory, amortization of acquired intangible assets, and expenses incurred for integration. The allocation of the purchase price is preliminary and subject to change, including any costs and expenses already recognized, as the Company refines its estimates over the measurement period, which is expected to be finalized by the end of the 2022 fiscal year. Purchase price allocation The Acquisition was accounted for using the acquisition method of accounting in accordance with Accounting Standards Codification 805, Business Combinations (“ASC 805”) which requires, among other things, that assets acquired and liabilities assumed in a business combination be recorded at fair value as of the acquisition date with limited exceptions. Preliminary fair value estimates of the net assets acquired are based upon preliminary calculations and valuations as of April 1, 2022. Due to the timing and significance of the Acquisition, the estimates and assumptions regarding certain tangible assets acquired and liabilities assumed, the valuation of intangible assets acquired, income taxes, contingent liabilities, goodwill and useful lives of intangible assets are subject to change as the Company obtains additional information during the measurement period of up to 12 months from the acquisition date. The preliminary allocation of the $824.4 million purchase price to the estimated fair values of the tangible and intangible assets acquired and liabilities assumed is as follows:
Trade accounts receivable, net The gross amount of trade receivables acquired was approximately $67.4 million, of which $63.6 million is estimated to be recoverable based on ETANCO's historical trend for collections. Inventory Acquired inventory primarily consists of raw materials and finished goods consisting of building and construction materials products. The Company adjusted acquired finished goods higher by $10.9 million to estimated fair value based on expected selling prices less a reasonable amount for selling efforts. The fair value adjustment is recognized as a component of cost of sales over the inventory’s expected turnover period, and as a result, $9.2 million of the adjustment was recognized during the three months ended June 30, 2022. The balance of the adjustment will be recognized in the quarter ended September 30, 2022. Property and equipment, net Acquired property and equipment includes land of $22.3 million, buildings and site improvements of $29.4 million, and machinery, equipment, and software of $35.5 million. The estimated fair value of property and equipment was determined primarily using market and/or or cost approach methodologies. The acquired fair value for buildings and site improvements will depreciate on a straight-line basis over the estimated useful lives of the assets for a period of up to thirty years, Machinery, equipment and software will depreciate on an accelerated basis over an estimated useful life of to ten years. Depreciation expense associated with the acquired property and equipment amounted to $1.4 million for three months ended June 30, 2022. Goodwill The excess of purchase price over the net assets acquired is recognized as goodwill and relates to the value that is expected from the acquired assembled workforce as well as the increased scale and synergies resulting from the integration of both businesses. The goodwill recognized from the Acquisition is not deductible for local income tax purposes. Goodwill will be allocated to reporting units within the European reporting segment when the purchase price allocation is finalized during the measurement period. Intangible assets, net The estimated fair value of intangible assets acquired was determined primarily using income approach methodologies. The preliminary values allocated to intangible assets and the useful lives are as follows:
The acquired definite-lived intangible assets will be amortized on a straight-line basis over estimated useful lives, which approximates the pattern in which these assets are utilized. The Company recognized $4.2 million of amortization expense on these assets during the three months ended June 30, 2022. Deferred taxes As a result of the increase in fair value of inventory, property and equipment, and intangible assets, deferred tax liabilities of $104.5 million were recognized, primarily due to intangible assets. Acquisition and integration related costs During the three and six months ended June 30, 2022 and the year ended December 31, 2021, the Company incurred acquisition and integration related expenses of $5.9 million, $12.8 million and $2.3 million, respectively. The fiscal 2022 amounts have been included in Acquisition and integration related costs in the Company’s income from operations, while the 2021 amounts were included in Interest expense, net and other. These acquisition and integration related costs consisted of investment banking, legal, accounting, advisory, and consulting fees. Unaudited pro forma results The following unaudited pro forma combined financial information presents estimated results as if the Company acquired ETANCO on January 1, 2021. The unaudited pro forma financial information as presented below is for informational purposes only and does not purport to actually represent what the Company’s combined results of operations would have been had the Acquisition occurred on January 1, 2021, or what those results will be for any future periods. The following unaudited pro forma consolidated financial information has been prepared using the acquisition method of accounting in accordance with U.S. GAAP:
The unaudited pro forma results above includes the following non-recurring charges to net income: 1) Acquisition and integration related costs of $5.9 million, $6.9 million, and $2.3 million, which were incurred during the three months ended June 30, 2022, March 31, 2022, and December 31, 2021, respectively, were adjusted as if such costs were incurred during the three months ended March 31, 2021. 2) The $9.2 million of amortization related to the fair value adjustment for inventory and recognized during the three months ended June 30, 2022 was adjusted as if incurred during the three months ended March 31, 2021. The unamortized balance is included as an adjustment recognized during the three months ended June 30, 2021. 3) Net income for ETANCO includes adjustments of $0.5 million and $1.8 million to conform ETANCO’s historical financial results prepared under French GAAP to U.S. GAAP for the three and six months ended June 30, 2021, respectively. In addition, $0.4 million in French to U.S. GAAP adjustments were made for the three and six months ended June 30, 2022. The U.S. GAAP adjustments are primarily related to share-based payments expense on awards that were settled prior to the Acquisition, and costs incurred and capitalized by ETANCO on its historical acquisitions.
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Net Income Per Share |
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Net Income Per Share | Net Income Per Share The following shows a reconciliation of basic net earnings ("EPS") per share to diluted EPS:
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Stockholders' Equity |
6 Months Ended |
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Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Treasury Shares As of June 30, 2022, the Company held 455,030 shares of its common stock as treasury shares. During the six months ended June 30, 2022, the Company repurchased 455,030 shares of the Company's common stock in the open market at an average price of $101.71 per share, for a total of $46.3 million. As of June 30, 2022, approximately $53.7 million remains available for repurchase of shares of the Company's common stock under the previously announced $100.0 million share repurchase authorization (which expires at the end of 2022).
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Stock-Based Compensation |
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Jun. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company allocates stock-based compensation expense amongst cost of sales, research and development and other engineering expense, selling expense, or general and administrative expense based on the job functions performed by the employees to whom the stock-based compensation is awarded. Stock-based compensation capitalized in inventory was immaterial for all periods presented. The Company recognized stock-based compensation expense related to its equity plans for employees of $4.7 million and $3.3 million for the three months ended June 30, 2022 and 2021, respectively, and $9.5 million and $9.8 million for the six months ended June 30, 2022 and 2021, respectively. During the six months ended June 30, 2022, the Company granted 112,963 RSUs and PSUs to the Company's employees, including officers at an estimated weighted average fair value of $119.60 per share based on the closing price (adjusted for the present value of dividends) of the Company's common stock on the grant date. The RSUs and PSUs granted to the Company's employees may be time-based, performance-based or time- and performance-based. Certain of the PSUs are granted to officers and key employees, where the number of performance-based awards to be issued is based on the achievement of certain Company performance criteria established in the award agreement over a cumulative three year period. These awards cliff vest after three years. In addition, these same officers and key employees also receive time-based RSUs, which vest pursuant to a three-year graded vesting schedule. Time-based RSUs that are granted to the Company's employees excluding officers and certain key employees, vest ratably over the four year vesting-term of the award. The Company’s seven non-employee directors are entitled to receive approximately $704 thousand in equity compensation annually. The number of shares ultimately granted are based on the average closing share price for the Company over the 60 day period prior to approval of the award in the second quarter of each year. In May 2022, the Company granted 6,206 shares of the Company's common stock to the non-employee directors, based on the average closing price of $105.50 per share and recognized $655 thousand of expense. As of June 30, 2022, the Company's aggregate unamortized stock compensation expense was approximately $27.6 million which is expected to be recognized in expense over a weighted-average period of 2.4 years.
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Trade Accounts Receivable, Net |
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Trade Accounts Receivable, Net | Trade Accounts Receivable, Net Trade accounts receivable consisted of the following:
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The components of inventories are as follows:
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments The Company enters into derivative instrument agreements, including forward foreign currency exchange contracts, interest rate swaps, and cross currency swaps to manage risk in connection with changes in foreign currency and interest rates. The Company hedges committed exposures and does not engage in speculative transactions. The Company only enters into derivative instrument agreements with counterparties who have highly rated credit. Beginning in March 2022, the Company entered into a forward foreign currency contract expiring in March 2029 to hedge its exposure to adverse foreign currency exchange rate movements for its operations in Europe and elected the spot method for designating this contract as a net investment hedge with the excluded forward point amortized to interest expense. During May 2022, the Company settled the March 2022 forward foreign currency contract for $3.9 million in cash, which included $0.4 million in recognized forward points, terminated the hedge accounting treatment and simultaneously entered into a new forward foreign currency contract expiring in March 2029 with the same notional amount at a new forward rate. The Company also elected the spot method for designating the May 2022 contract as a net investment hedge. The $3.5 million gain recognized on the March 2022 contract excluding recognized forward points is deferred in OCI and will remain in OCI until either the sale or substantially complete liquidation of the hedged subsidiaries. Beginning in March 2022, the Company also converted a Euro-denominated ("EUR"), fixed rate obligation into a U.S. Dollar fixed rate obligation using a receive fixed, pay fixed cross currency swap, which was designated as a cash flow hedge. During May 2022, the Company settled the March 2022 cross currency swap for $22.4 million in cash, which was comprised of $21.3 million gain on the swap excluding accrued interest and $1.1 million of net interest income accrued according to the terms of the swap. The Company terminated the hedge accounting treatment and simultaneously entered into a new cross currency swap expiring in March 2029 with a lower notional amount for the US dollar denominated leg at a new US dollar interest rate. An amount of $28.3 million was reclassified out of OCI into earnings to offset the currency loss on the underlying security being hedged resulting in a net $7.0 million hedge accounting reserve balance within OCI, which is being amortized to interest expense in the Condensed Consolidated Statement of Earnings and Comprehensive Income through the termination of the underlying hedged intercompany debt in March 2029. In addition, the Company has converted its domestic U.S. variable rate debt to fixed rate debt using a receive variable, pay fixed interest rate swap expiring March 2027. The interest rate swap contract is also designated as a cash flow hedge. As of June 30, 2022, the aggregate notional amount of the Company's outstanding interest rate contracts, cross currency swap contracts and forward contract were $694.4 million, $465.9 million and $271.9 million, respectively. As of June 30, 2021, the aggregate notional amount of the Company's outstanding forward contracts used to hedge variability in cash flows on its Chinese Yuan denominated purchases were $5.4 million, all of which expired by December 31, 2021. As of June 30, 2022 there were no outstanding forward contracts on its Chinese Yuan denominated purchases. Changes in fair value of any forward contracts that are determined to be ineffective are immediately reclassified from OCI into earnings. There were no amounts recognized due to ineffectiveness during the six-months ended June 30, 2022. The effects of fair value and cash flow hedge accounting on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the period ended June 30, 2022 was as follows:
The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended June 30 were as follow:
The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the six months ended June 30 were as follow:
For the three and six months ending June 30, 2022, gains on the net investment hedge of $18.1 million and $11.3 million were included in OCI, respectively. For both the three and six months ending June 30, 2022, excluded gains of $1.1 million were reclassified from OCI to interest expense. As of June 30, 2022, the aggregate fair values of the Company’s derivative instruments were comprised of an asset of $24.5 million, of which $10.8 million is included in Other current assets on the condensed consolidated balance sheet, and the balance, or $13.7 million as an Other non-current assets on the condensed consolidated balance sheet, and a liability of $7.9 million, which is included in Other non-current liabilities on the condensed consolidated balance sheet.
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Property, Plant and Equipment, Net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment consisted of the following:
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill consisted of the following:
Goodwill totaled $492.3 million as of June 30, 2022, including $360.3 million attributable to the ETANCO acquisition. Amortizable intangible assets, net, consisted of the following:
Intangible assets consist of definite-lived and indefinite-lived assets. Definite-lived intangible assets include customer relationships, patents, unpatented technology, and non-compete agreements. Amortization expense of definite-lived intangible assets was $5.3 million and $1.7 million for the three months ended June 30, 2022 and 2021, respectively and was $6.4 million and $3.4 million for the six months ended June 30, 2022 and 2021, respectively. The weighted-average amortization period for all amortizable intangibles on a combined basis is 9.5 years. Indefinite-lived intangible assets totaled $88.9 million as of June 30, 2022, including $88.3 million attributable to trade names acquired in the ETANCO acquisition. At June 30, 2022, the estimated future amortization of definite-lived intangible assets was as follows:
The changes in the carrying amount of goodwill and intangible assets for the six months ended June 30, 2022, were as follows:
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company has operating leases for certain facilities, equipment and automobiles. The existing operating leases expire at various dates through 2026, some of which include options to extend the leases for up to 5 years. The Company measured the lease liability at the present value of the lease payments to be made over the lease term. The lease payments are discounted using the Company's incremental borrowing rate. The Company measured the right-of-use ("ROU") assets at the amount at which the lease liability is recognized plus initial direct costs incurred or prepayment amounts. The ROU assets are amortized on a straight-line basis over the lease term. The following table provides a summary of leases included on the condensed consolidated balance sheets as of June 30, 2022 and 2021 and December 31, 2021, condensed consolidated statements of earnings and comprehensive income, and condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021, respectively:
The components of lease expense were as follows:
Other Information Supplemental cash flow information related to leases is as follows:
The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2022:
The following table summarizes the Company's lease terms and discount rates as of June 30, 2022 and 2021:
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Leases | Leases The Company has operating leases for certain facilities, equipment and automobiles. The existing operating leases expire at various dates through 2026, some of which include options to extend the leases for up to 5 years. The Company measured the lease liability at the present value of the lease payments to be made over the lease term. The lease payments are discounted using the Company's incremental borrowing rate. The Company measured the right-of-use ("ROU") assets at the amount at which the lease liability is recognized plus initial direct costs incurred or prepayment amounts. The ROU assets are amortized on a straight-line basis over the lease term. The following table provides a summary of leases included on the condensed consolidated balance sheets as of June 30, 2022 and 2021 and December 31, 2021, condensed consolidated statements of earnings and comprehensive income, and condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021, respectively:
The components of lease expense were as follows:
Other Information Supplemental cash flow information related to leases is as follows:
The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2022:
The following table summarizes the Company's lease terms and discount rates as of June 30, 2022 and 2021:
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Debt |
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt On March 30, 2022, the Company entered into the Amended and Restated Credit Facility, which amends and restates the Company's previous Credit Agreement, dated as of July 27, 2012. The Amended and Restated Credit Facility provides for a 5-year revolving credit facility of $450.0 million revolving line of credit, which includes a letter of credit-sub-facility up to $50.0 million, and a 5-year term loan facility of $450.0 million. The Company borrowed $250.0 million, under the revolving credit facility and $450.0 million under the term loan facility to finance a portion of the purchase price of the Acquisition. In addition, the Company incurred $6.8 million of debt issuance costs, which are classified in long-term debt on the condensed consolidating balance sheet, that have been deferred and will amortize over the 5-year terms of the Amended and Restated Credit Facility. The Company is required to pay an annual revolving credit facility fee of 0.10% to 0.25% per annum on the available commitments under the terms of the Amended and Restated Revolving Credit Facility, regardless of usage, with the applicable fee determined on a quarterly basis based on the Company’s net leverage ratio. The fee is included within Interest expense, net and other in the Company's Condensed Consolidated Statement of Operations. Amounts borrowed under the Amended and Restated Credit Facility will bear interest from time to time at either the Base Rate, Spread Adjusted Daily Simple SOFR, Spread Adjusted Term SOFR, Adjusted Eurocurrency Rate or Daily Simple RFR, in each case, as calculated under and as in effect from time to time under the Amended and Restated Credit Facility, plus the Applicable Margin, as defined in the Amended and Restated Credit Facility. The Applicable Margin is determined based on the Company’s net leverage ratio, and ranges (i) from 0.00% to 0.75% per annum for amounts borrowed under the term loan facility that bear interest at Base Rate, (ii) from 0.75% to 1.75% per annum for amounts borrowed under the term loan facility that bear interest at Adjusted Eurocurrency Rate, Spread Adjusted Daily Simple SOFR or Spread Adjusted Term SOFR, (iii) from 0.00% to 0.50% per annum for amounts borrowed under the revolving credit facility that bear interest at Base Rate, (iv) from 0.68% to 1.53% per annum for amounts borrowed under the revolving credit facility that bear interest at Daily Simple RFR (solely to the extent denominated in pound sterling) and (v) from 0.65% to 1.50% per annum for amounts borrowed under the revolving credit facility that bear interest at Daily Simple RFR (other than loans denominated in pound sterling) or Adjusted Eurocurrency Rate. Loans outstanding under the Amended and Restated Credit Facility may be prepaid at any time without penalty except for customary breakage costs and expenses. Based on current principle payment expectations, the annual interest rate on the outstanding debt will be approximately 2.00% over the life of the debt including the effects of the interest rate swap and other derivatives noted above. As of June 30, 2022, in addition to the Amended and Restated Credit Facility, certain of the Company’s domestic subsidiaries are guarantors for a credit agreement between certain of its foreign subsidiaries and institutional lenders. Together, all of its credit facilities provide the Company with a total of $203.1 million in available revolving credit lines and an irrevocable standby letter of credit in support of various insurance deductibles. The Company has $694.4 million, excluding deferred financing costs, outstanding under the Amended and Restated Credit Facility, which is the estimated the fair value as of June 30, 2022. There were no outstanding balances under the Amended and Restated Credit Facility as of June 30, 2021, and December 31, 2021. The following is a schedule, by years, of maturities for the remaining term loan facility as of June 30, 2022:
The $250.0 million borrowed under the revolving credit facility is due on March 31, 2027. The Company was in compliance with its financial covenants under the Amended and Restated Credit Facility as of June 30, 2022.
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Commitments and Contingencies |
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Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental The Company’s policy with regard to environmental liabilities is to accrue for future environmental assessments and remediation costs when information becomes available that indicates that it is probable that the Company is liable for any related claims and assessments and the amount of the liability is reasonably estimable. The Company does not believe that any such matters will have a material adverse effect on the Company’s financial condition, cash flows or results of operations. Litigation and Potential Claims From time to time, the Company is involved in various legal proceedings and other matters arising in the normal course of business. Corrosion, hydrogen embrittlement, cracking, material hardness, wood pressure-treating chemicals, misinstallations, misuse, design and assembly flaws, manufacturing defects, labeling defects, product formula defects, inaccurate chemical mixes, adulteration, environmental conditions, or other factors can contribute to failure of fasteners, connectors, anchors, adhesives, specialty chemicals, such as fiber reinforced polymers, and tool products. In addition, inaccuracies may occur in product information, descriptions and instructions found in catalogs, packaging, data sheets, and the Company’s website. The resolution of any claim or litigation is subject to inherent uncertainty and could have a material adverse effect on the Company’s financial condition, cash flows or results of operations.
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Segment Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company is organized into three reporting segments defined by the regions where the Company’s products are manufactured, marketed and distributed to the Company’s customers. The three reporting segments are the North America segment (comprised primarily of the Company’s operations in the U.S. and Canada), the Europe segment, which includes ETANCO, and the Asia/Pacific segment (comprised of the Company’s operations in Asia, the South Pacific, and the Middle East). These segments are similar in several ways, including the types of materials used, the production processes, the distribution channels and the product applications. The Administrative & All Other column primarily includes expenses such as self-insured workers compensation claims for employees, stock-based compensation for certain members of management, interest expense, foreign exchange gains or losses and income tax expense, as well as revenues and expenses related to real estate activities. The following tables illustrate certain measurements used by management to assess the performance of its reportable segments as of or the following periods:
* Sales to other segments are eliminated in consolidation. ** Beginning in 2022, the Company changed its presentation of its North America and Administrative and all other segment's statement of operations to display allocated expenses and management fees as a separate item below income from operations. During 2021, allocated expenses and management fees between the two segments were previously included in gross profit, operating expenses and in income from operations and been adjusted herein to conform to 2022 presentation. Consolidated income of operations, income before tax and net income for all periods presented below are not affected by the change of operations.
Cash collected by the Company’s U.S. subsidiaries is routinely transferred into the Company’s cash management accounts and, therefore is in the total assets of “Administrative and all other.” Cash and cash equivalent balances in the “Administrative and all other” segment were $167.4 million, $238.3 million, and $223.5 million, as of June 30, 2022 and 2021, and December 31, 2021, respectively. The Company’s wood construction products include connectors, truss plates, fastening systems, fasteners and pre-fabricated shearwalls and are used for connecting and strengthening wood-based construction primarily in residential and commercial construction. Its concrete construction products include adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools and reinforcing fiber materials and are used for restoration, protection or strengthening concrete, masonry and steel construction in residential, industrial, commercial and infrastructure construction. The table below illustrates the distribution of the Company’s sales by product group as additional information for the following periods:
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declared On July 27, 2022, the Company’s Board of Directors (the "Board") declared a quarterly cash dividend of $0.26 per share, estimated to be $11.2 million in total. The dividend will be payable on October 27, 2022, to the Company's stockholders of record on October 6, 2022.
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Basis of Presentation (Policies) |
3 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 |
Jun. 30, 2022 |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Simpson Manufacturing Co., Inc. and its subsidiaries (collectively, the “Company”). Investments in 50% or less owned entities are accounted for using either cost or the equity method. All significant intercompany transactions have been eliminated.
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Use of Estimates | Use of Estimates The preparation of the condensed financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that these condensed consolidated financial statements include all normal and recurring adjustments necessary for a fair presentation under GAAP. The Company assessed certain accounting matters that require the use of estimates and assumptions in context with the known and projected future impacts of COVID-19. The Company's actual results could differ materially from those estimates.
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Interim Period Reporting | Interim Reporting Period The accompanying unaudited quarterly condensed consolidated financial statements have been prepared in accordance with GAAP pursuant to the rules and regulations for reporting interim financial information and instructions on Form 10-Q. Accordingly, certain information and footnotes required by GAAP have been condensed or omitted. These interim statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the “2021 Form 10-K”). The unaudited quarterly condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial information set forth therein in accordance with GAAP. Certain prior period amounts in the condensed consolidated financial statements and the accompanying notes have been reclassified to conform to the current period’s presentation. The year-end condensed consolidated balance sheet data provided herein were derived from audited financial statements included in the 2021 Form 10-K, but do not include all disclosures required by GAAP. The Company’s quarterly results fluctuate. As a result, the Company believes the results of operations for this interim period presented are not indicative of the results to be expected for any future periods.
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Revenue Recognition | Revenue Recognition |
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Net Income Per Common Share | Net Income Per Common Share The Company calculates net income per common share based on the weighted-average number of shares of the Company's common stock outstanding during the period. Potentially dilutive securities are included in the diluted per-share calculations using the treasury stock method for all periods when the effect of their inclusion is dilutive.
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Accounting for Leases | Accounting for Leases The Company has operating and finance leases for certain facilities, equipment, autos and data centers. As an accounting policy for short-term leases, the Company elected to not recognize a right-of-use asset ("ROU asset") and liability if, at the commencement date, the lease (1) has a term of 12 months or less and (2) does not include renewal and purchase options that the Company is reasonably certain to exercise. Monthly payments on short-term leases are recognized on a straight-line basis over the full lease term.
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Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation The Company recognizes stock-based compensation expense related to the estimated fair value of restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years. Stock-based expense related to performance share grants are measured based on grant date fair value and expensed on a graded basis over the service period of the awards, which is generally a performance period of three years. The performance conditions are based on the Company's achievement of revenue growth and return on invested capital over the performance period, and are evaluated for the probability of vesting at the end of each reporting period with changes in expected results recognized as an adjustment to expense. The assumptions used to calculate the fair value of restricted stock grants are evaluated and revised, as necessary, to reflect market conditions and the Company’s experience.
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Equity Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
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Derivative Instruments - Foreign Currency Contracts | Derivative Instruments The Company uses derivative instruments as a risk management tool to mitigate the potential impact of certain market risks. Foreign currency and interest rate risk are the primary market risks the Company manages through the use of derivative instruments, which are accounted for as cash flow hedges or net investment hedges under the accounting standards and carried at fair value as other current or noncurrent assets or as other current or other long-term liabilities in the condensed consolidated balance sheets. Assets and liabilities with the legal right of offset are not offset in the condensed consolidated balance sheets. Net deferred gains and losses related to changes in fair value of cash flow hedges are included in accumulated other comprehensive income/loss ("OCI"), a component of stockholders' equity in the condensed consolidated balance sheets, and are reclassified into the line item in the condensed consolidated statement of earnings and comprehensive income in which the hedged items are recorded in the same period the hedged item affects earnings. The effective portion of gains and losses attributable to net investment hedges is recorded net of tax to OCI to offset the change in the carrying value of the net investment being hedged. Recognition in earnings of amounts previously recorded to OCI are limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. Changes in fair value of any derivatives that are determined to be ineffective are immediately reclassified from OCI into earnings.
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Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company classifies investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. As of June 30, 2022 and 2021, the value of these investments were $42.4 million and $57.1 million, respectively, consisting of United States Treasury securities and money market funds. The value of the investments is based on cost, which approximates fair value based on Level 1 inputs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Estimated Credit Loss - Allowance for Doubtful Accounts | Current Estimated Credit Loss - Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts receivable for estimated future expected credit losses resulting from customers' failure to make payments on its accounts receivable. The Company determines the estimate of the allowance for doubtful accounts receivable by considering several factors, including (1) specific information on the financial condition and the current creditworthiness of customers, (2) credit rating, (3) payment history and historical experience, (4) aging of the accounts receivable, and (5) reasonable and supportable forecasts about collectability. The Company also reserves 100% of the amounts deemed uncollectible due to a customer's deteriorating financial condition or bankruptcy. Every quarter, the Company evaluates the customer group using the accounts receivable aging report and its best judgment when considering changes in customers' credit ratings, level of delinquency, customers' historical payments and loss experience, current market and economic conditions, and expectations of future market and economic conditions. The changes in the allowance for doubtful accounts receivable for the six months ended June 30, 2022 are outlined in the table below:
1Amount is net of recoveries and the effect of foreign currency fluctuations.
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Income Taxes | Income Taxes Income taxes are calculated using an asset and liability approach. The provision for income taxes includes federal, state and foreign taxes currently payable and deferred taxes, due to temporary differences between the financial statement and tax bases of assets and liabilities. In addition, future tax benefits are recognized to the extent that realization of such benefits is more likely than not. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws in the year of enactment. The Company uses an estimated annual tax rate to measure the tax benefit or tax expense recognized in each interim period.
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Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 provides optional guidance to ease the potential burden in accounting for reference rate reform on financial reporting in response to the market transition from the London Interbank Offered Rate (“LIBOR”). The Company's primary credit facility, which was amended and restated on March 30, 2022, is composed of $450.0 million revolving line of credit and a $450.0 million term loan (the "Amended and Restated Credit Facility"), which matures on March 30, 2027. Borrowings under the Amended and Restated Credit Facility bear interest using Secured Overnight Financing Rate ("SOFR") plus an applicable margin in lieu of LIBOR. All other newly issued and effective accounting standards during the second quarter of 2022 were determined to be not relevant or material to the Company.
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Basis of Presentation (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Allowance for Credit Loss | The changes in the allowance for doubtful accounts receivable for the six months ended June 30, 2022 are outlined in the table below:
1Amount is net of recoveries and the effect of foreign currency fluctuations.
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Acquisitions (Tables) |
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The preliminary allocation of the $824.4 million purchase price to the estimated fair values of the tangible and intangible assets acquired and liabilities assumed is as follows:
The estimated fair value of intangible assets acquired was determined primarily using income approach methodologies. The preliminary values allocated to intangible assets and the useful lives are as follows:
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Business Acquisition, Pro Forma Information | The following unaudited pro forma consolidated financial information has been prepared using the acquisition method of accounting in accordance with U.S. GAAP:
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Net Income Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following shows a reconciliation of basic net earnings ("EPS") per share to diluted EPS:
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Trade Accounts Receivable, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of trade accounts receivable, net |
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of carrying values of inventories |
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Derivative Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) | The effects of fair value and cash flow hedge accounting on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the period ended June 30, 2022 was as follows:
The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended June 30 were as follow:
The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the six months ended June 30 were as follow:
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Property, Plant and Equipment, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property, plant and equipment |
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Goodwill and Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill, by segment | Goodwill consisted of the following:
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Schedule of net intangible assets, by segment | ntangible assets, net, consisted of the following:
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Schedule of estimated future amortization of intangible assets | At June 30, 2022, the estimated future amortization of definite-lived intangible assets was as follows:
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Changes in the carrying amount of goodwill and intangible assets | The changes in the carrying amount of goodwill and intangible assets for the six months ended June 30, 2022, were as follows:
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Information | The following table provides a summary of leases included on the condensed consolidated balance sheets as of June 30, 2022 and 2021 and December 31, 2021, condensed consolidated statements of earnings and comprehensive income, and condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021, respectively:
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Lease, Cost | The components of lease expense were as follows:
Other Information Supplemental cash flow information related to leases is as follows:
The following table summarizes the Company's lease terms and discount rates as of June 30, 2022 and 2021:
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Operating Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2022:
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Finance Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2022:
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | The following is a schedule, by years, of maturities for the remaining term loan facility as of June 30, 2022:
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Segment Information (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of performance of reportable segments | The following tables illustrate certain measurements used by management to assess the performance of its reportable segments as of or the following periods:
* Sales to other segments are eliminated in consolidation. ** Beginning in 2022, the Company changed its presentation of its North America and Administrative and all other segment's statement of operations to display allocated expenses and management fees as a separate item below income from operations. During 2021, allocated expenses and management fees between the two segments were previously included in gross profit, operating expenses and in income from operations and been adjusted herein to conform to 2022 presentation. Consolidated income of operations, income before tax and net income for all periods presented below are not affected by the change of operations.
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Schedule of net sales distributed by product group | The table below illustrates the distribution of the Company’s sales by product group as additional information for the following periods:
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Basis of Presentation - Accounting for Stock-based Compensation (Details) |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2022 |
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Stock-Based Compensation | ||
Vesting period | 60 days | 4 years |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years | |
Maximum | ||
Stock-Based Compensation | ||
Vesting period | 3 years |
Basis of Presentation - Dividend Declaration (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Dividend Declaration [Abstract] | ||||
Cash dividends declared per common share | $ 0.26 | $ 0.25 | $ 0.51 | $ 0.48 |
Basis of Presentation - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Jun. 30, 2021 |
---|---|---|
Cash and Cash Equivalents [Abstract] | ||
Fair value of cash and cash equivalents | $ 42,400 | $ 57,100 |
Basis of Presentation - Accounts Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 2,211 | $ 1,932 |
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 223 | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | $ (56) | |
Percentage of uncollectible accounts receivable | 100.00% |
Basis of Presentation - Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Operating lease right-of-use assets | $ 48,984 | $ 45,438 | $ 43,374 |
Total operating lease liabilities | 49,485 | $ 45,860 | $ 43,864 |
Remaining borrowing capacity | $ 203,100 |
Revenue from Contracts with Customers (Details) - ASC 606 |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Wood construction products | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 87.00% | 87.00% | |
Concrete construction products | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 13.00% | 13.00% | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 0.10% |
Acquisitions - Preliminary Allocation of Purchase Price (Details) - ETANCO $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Acquisitions | |
Cash and cash equivalents | $ 19,010 |
Trade accounts receivable, net | 63,607 |
Inventory | 102,608 |
Other current assets | 4,491 |
Property and equipment, net | 87,156 |
Operating lease right-of-use assets | 6,219 |
Goodwill | 376,908 |
Intangible assets, net | 358,761 |
Other noncurrent assets | 1,428 |
Total assets | 1,020,188 |
Trade accounts payable | 46,467 |
Accrued liabilities and other current liabilities | 21,922 |
Operating lease liabilities | 6,034 |
Deferred income tax and other long-term liabilities | 121,360 |
Total purchase price | 824,405 |
ETANCO | |
Acquisitions | |
Trade accounts receivable, net | $ 63,600 |
Acquisitions - Intangible Assets, Net (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Acquisitions | |
Weighted-average useful life (in years) | 9 years 6 months |
ETANCO | |
Acquisitions | |
Intangible assets, net | $ 358,761 |
Indefinite and Finite Lived Intangible Assets, Total | $ 358,761 |
ETANCO | Customer relationships | |
Acquisitions | |
Weighted-average useful life (in years) | 16 years |
Intangible assets, net | $ 220,810 |
ETANCO | Trade names | |
Acquisitions | |
Indefinite-Lived Intangible Assets | $ 93,811 |
ETANCO | Developed technology | |
Acquisitions | |
Weighted-average useful life (in years) | 12 years 6 months |
Intangible assets, net | $ 44,140 |
Acquisitions - Pro Forma for Net Income (Details) - ETANCO - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Acquisitions | ||||
Net sales | $ 593,232 | $ 498,805 | $ 1,165,986 | $ 923,579 |
Net income | $ 104,823 | $ 79,535 | $ 210,772 | $ 114,884 |
Basic (in usd per share) | $ 2.43 | $ 1.83 | $ 4.88 | $ 2.65 |
Diluted (in usd per share) | $ 2.42 | $ 1.82 | $ 4.87 | $ 2.63 |
Basic (in shares) | 43,145 | 43,434 | 43,162 | 43,406 |
Diluted (in shares) | 43,240 | 43,641 | 43,306 | 43,620 |
Net Income Per Share - Reconciliation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Reconciliation of basic earnings per share ("EPS") to diluted EPS | ||||
Net income available to common stockholders | $ 93,570 | $ 72,483 | $ 188,145 | $ 122,872 |
Basic weighted-average shares outstanding | 43,145 | 43,434 | 43,162 | 43,406 |
Dilutive effect of potential common stock equivalents — restricted stock units | 95 | 207 | 144 | 214 |
Diluted weighted-average shares outstanding | 43,240 | 43,641 | 43,306 | 43,620 |
Net income per common share: | ||||
Basic | $ 2.17 | $ 1.67 | $ 4.36 | $ 2.83 |
Diluted | $ 2.16 | $ 1.66 | $ 4.34 | $ 2.82 |
Stockholders' Equity - Shares Repurchases (Details) $ / shares in Units, $ in Millions |
3 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
$ / shares
shares
| |
Equity, Class of Treasury Stock [Line Items] | |
Stock Repurchased During Period, Shares | shares | 455,030 |
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 101.71 |
Treasury Stock, Value, Acquired, Par Value Method | $ 46.3 |
Treasury stock (in shares) | shares | 455,030 |
2020 Stock Repurchase Program | |
Equity, Class of Treasury Stock [Line Items] | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 53.7 |
Stock Repurchase Program, Authorized Amount | $ 100.0 |
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Stock-Based Compensation | ||||
Stock-based compensation expense | $ 4,700 | $ 3,300 | $ 9,500 | $ 9,800 |
Vesting period | 60 days | 4 years | ||
Unrecognized compensation costs related to unvested share-based compensation arrangements | $ 27,600 | $ 27,600 | ||
Weighted-average period for recognition of unrecognized stock-based compensation expense | 2 years 4 months 24 days | |||
Compensation expense | $ 655 | |||
Restricted Stock Units | ||||
Stock-Based Compensation | ||||
Awarded (in shares) | 112,963 | |||
Weighted average granted date fair value (in dollars per share) | $ 119.60 | |||
Vesting period | 3 years | |||
Phantom Share Units (PSUs) | ||||
Stock-Based Compensation | ||||
Vesting period | 3 years | |||
Employees | Restricted Stock Units | ||||
Stock-Based Compensation | ||||
Vesting period | 4 years |
Trade Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
---|---|---|---|
Receivables [Abstract] | |||
Trade accounts receivable | $ 382,016 | $ 237,312 | $ 255,077 |
Allowance for doubtful accounts | (2,211) | (1,932) | (1,446) |
Allowance for sales discounts and returns | (4,675) | (4,359) | (3,700) |
Trade accounts receivable, net | $ 375,130 | $ 231,021 | $ 249,931 |
Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
---|---|---|---|
Inventory Disclosure [Abstract] | |||
Raw materials | $ 193,254 | $ 191,174 | $ 101,163 |
In-process products | 47,141 | 30,309 | 24,117 |
Finished products | 299,449 | 222,273 | 184,974 |
Total inventories | $ 539,844 | $ 443,756 | $ 310,254 |
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
---|---|---|---|
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 728,913 | $ 635,642 | $ 629,767 |
Less accumulated depreciation and amortization | (415,029) | (402,246) | (393,653) |
Property, plant and equipment excluding capital projects in progress, net | 313,884 | 233,396 | 236,114 |
Capital projects in progress | 32,300 | 26,473 | 19,239 |
Property, plant and equipment, net | 346,184 | 259,869 | 255,353 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 55,279 | 28,175 | 28,373 |
Buildings and site improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 223,920 | 202,393 | 202,573 |
Leasehold improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 6,062 | 5,995 | 5,961 |
Machinery, equipment, and software | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 443,652 | $ 399,079 | $ 392,860 |
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
---|---|---|---|
Carrying amount of goodwill by reportable segment | |||
Goodwill | $ 492,338 | $ 134,022 | $ 134,121 |
ETANCO | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | 360,300 | ||
North America | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | 96,264 | 96,307 | 96,393 |
Europe | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | 394,761 | 36,331 | 36,296 |
Asia/Pacific | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | $ 1,313 | $ 1,384 | $ 1,432 |
Goodwill and Intangible Assets - Intangible Assets, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 5,300 | $ 1,700 | $ 6,440 | $ 3,400 | |
Weighted-average useful life (in years) | 9 years 6 months | ||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 410,883 | 67,502 | $ 410,883 | 67,502 | $ 73,014 |
Accumulated amortization | (53,185) | (43,753) | (53,185) | (43,753) | (46,745) |
Net carrying amount | 357,698 | 23,749 | 357,698 | 23,749 | 26,269 |
North America | |||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 46,642 | 41,003 | 46,642 | 41,003 | 46,643 |
Accumulated amortization | (28,063) | (24,715) | (28,063) | (24,715) | (26,346) |
Net carrying amount | 18,579 | 16,288 | 18,579 | 16,288 | 20,297 |
Europe | |||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 364,241 | 26,499 | 364,241 | 26,499 | 26,371 |
Accumulated amortization | (25,122) | (19,038) | (25,122) | (19,038) | (20,399) |
Net carrying amount | $ 339,119 | $ 7,461 | $ 339,119 | $ 7,461 | $ 5,972 |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Indefinite-lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 5,300 | $ 1,700 | $ 6,440 | $ 3,400 |
ETANCO | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | 4,200 | |||
Trade names | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets | 88,900 | 88,900 | ||
Trade names | ETANCO | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets | $ 88,300 | $ 88,300 |
Goodwill and Intangible Assets - Estimated Future Amortization (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining six months of 2022 | $ 10,674 |
2023000 | 20,290 |
2024000 | 19,384 |
2025000 | 19,078 |
2026000 | 18,416 |
2027000 | 18,286 |
Thereafter | 162,307 |
Total | $ 268,435 |
Weighted-average useful life (in years) | 9 years 6 months |
Goodwill and Intangible Assets - Carrying Amount of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Goodwill | ||||
Balance at the beginning of the period | $ 134,022 | |||
Foreign exchange | (18,592) | |||
Balance at the end of the period | $ 492,338 | $ 134,121 | 492,338 | $ 134,121 |
Goodwill, Acquired During Period | 376,908 | |||
Intangible Assets | ||||
Balance at the beginning of the period | 26,269 | |||
Amortization | (5,300) | (1,700) | (6,440) | (3,400) |
Foreign exchange | (20,892) | |||
Balance at the end of the period | $ 357,698 | $ 23,749 | $ 357,698 | $ 23,749 |
Leases - Narrative (Details) |
Jun. 30, 2022 |
---|---|
Leases [Abstract] | |
Option to extend term | 5 years |
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
---|---|---|---|
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 48,984 | $ 45,438 | $ 43,374 |
Operating - current | 9,831 | 8,769 | 9,777 |
Operating - noncurrent | 39,654 | 37,091 | 34,087 |
Total operating lease liabilities | 49,485 | 45,860 | 43,864 |
Property and equipment, gross | 3,569 | 3,569 | 3,569 |
Accumulated amortization | (3,556) | (3,416) | (3,264) |
Property and equipment, net | 13 | 153 | 305 |
Other current liabilities | 0 | 0 | 48 |
Total finance lease liabilities | $ 0 | $ 0 | $ 48 |
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 3,364 | $ 3,055 | $ 6,346 | $ 6,017 |
Amortization of right-of-use assets | 0 | 107 | 0 | 214 |
Interest on lease liabilities | 0 | 1 | 0 | 2 |
Total finance lease | $ 0 | $ 108 | $ 0 | $ 216 |
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Lease, Cost [Abstract] | ||||
Operating cash flows for operating leases | $ 3,296 | $ 2,994 | $ 6,234 | $ 5,905 |
Finance cash flows for finance leases | 0 | 146 | 0 | 292 |
Operating right-of-use assets obtained in exchange for lease obligations during the current period | $ 2,936 | $ 3,307 | $ 5,132 | $ 4,093 |
Leases - Maturity (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
---|---|---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
Total finance lease liabilities | $ 0 | $ 0 | $ 48 |
Operating Leases | |||
Remaining six months of 2022 | 6,380 | ||
2023 | 11,105 | ||
2024 | 9,258 | ||
2025 | 7,448 | ||
2026 | 6,035 | ||
Thereafter | 17,963 | ||
Total lease payments | 58,189 | ||
Less: Present value discount | (8,704) | ||
Total operating lease liabilities | $ 49,485 | $ 45,860 | $ 43,864 |
Leases - Lease Terms and Discount Rates (Details) |
Jun. 30, 2022 |
Jun. 30, 2021 |
---|---|---|
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 4 months 24 days | 6 years 10 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.80% | 5.30% |
Debt - Schedule of Maturity (Details) $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Line of Credit Facility [Line Items] | |
Remaining six months of 2022 | $ 11,250 |
2023 | 22,500 |
2024 | 22,500 |
2025 | 22,500 |
2026 | 22,500 |
2027 | 343,125 |
Total loan outstanding | $ 444,375 |
Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Segment Information | |||||
Net sales | $ 593,232 | $ 410,281 | $ 1,086,802 | $ 757,922 | |
Income (Loss) from Operations ** | 133,076 | 101,728 | 257,514 | 170,112 | |
Total Assets | 2,485,468 | 1,373,974 | 2,485,468 | 1,373,974 | $ 1,484,125 |
Cash and cash equivalent | 246,134 | 305,796 | 246,134 | 305,796 | 301,155 |
Intersegment elimination | |||||
Segment Information | |||||
Net sales | 10,652 | 7,237 | 22,036 | 18,070 | |
Administrative and all other | |||||
Segment Information | |||||
Income (Loss) from Operations ** | (9,875) | (5,538) | (20,403) | (12,895) | |
Total Assets | 535,690 | (52,700) | 535,690 | (52,700) | (103,326) |
Cash and cash equivalent | 167,400 | 238,300 | 167,400 | 238,300 | 223,500 |
North America | |||||
Segment Information | |||||
Net sales | 456,410 | 350,557 | 895,140 | 651,120 | |
Income (Loss) from Operations ** | 137,291 | 101,190 | 273,064 | 174,215 | |
Total Assets | 1,225,176 | 1,189,835 | 1,225,176 | 1,189,835 | 1,352,988 |
North America | Intersegment elimination | |||||
Segment Information | |||||
Net sales | 1,441 | 221 | 2,575 | 917 | |
Europe | |||||
Segment Information | |||||
Net sales | 133,238 | 56,438 | 184,689 | 100,734 | |
Income (Loss) from Operations ** | 5,560 | 5,873 | 4,189 | 8,164 | |
Total Assets | 689,621 | 205,065 | 689,621 | 205,065 | 202,631 |
Europe | Intersegment elimination | |||||
Segment Information | |||||
Net sales | 1,271 | 1,551 | 2,955 | 3,160 | |
Asia/Pacific | |||||
Segment Information | |||||
Net sales | 3,584 | 3,286 | 6,973 | 6,068 | |
Income (Loss) from Operations ** | 100 | 203 | 664 | 628 | |
Total Assets | 34,981 | 31,774 | 34,981 | 31,774 | $ 31,832 |
Asia/Pacific | Intersegment elimination | |||||
Segment Information | |||||
Net sales | $ 7,940 | $ 5,465 | $ 16,506 | $ 13,993 |
Segment Information (Details 2) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Net sales and long-lived assets by geographical area | ||||
Net sales | $ 593,232 | $ 410,281 | $ 1,086,802 | $ 757,922 |
Wood construction products | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 514,832 | 355,787 | 950,191 | 657,365 |
Concrete construction products | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 78,209 | 54,305 | 136,185 | 99,828 |
Other | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 191 | 189 | 426 | 729 |
North America | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | $ 456,410 | $ 350,557 | $ 895,140 | $ 651,120 |
Segment Information (Narrative) (Details) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022
USD ($)
segment
|
Dec. 31, 2021
USD ($)
|
Jun. 30, 2021
USD ($)
|
|
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ | $ 246,134 | $ 301,155 | $ 305,796 |
Number of reportable segments | segment | 3 | ||
Number of Operating Segments | segment | 2 | ||
Administrative and all other | |||
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ | $ 167,400 | $ 223,500 | $ 238,300 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 27, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Subsequent Event [Line Items] | |||||
Cash dividends declared per common share | $ 0.26 | $ 0.25 | $ 0.51 | $ 0.48 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash dividends declared per common share | $ 0.26 | ||||
Dividends | $ 11.2 |
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