Delaware | 23-1374051 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
3912 Brumbaugh Road P.O. Box 77 New Enterprise, PA | 16664 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer o | |
Non-accelerated filer x | Smaller reporting company o | |
(Do not check if a smaller reporting company) |
Page(s) | |
Condensed Consolidated Balance Sheets at November 30, 2015 and February 28, 2015 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended November 30, 2015 and 2014 | |
Condensed Consolidated Statements of Cash Flows for the nine months ended November 30, 2015 and 2014 | |
(In thousands, except share and per share data) | November 30, 2015 | February 28, 2015 * | ||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 13,867 | $ | 13,293 | ||||
Restricted cash | 25,468 | 17,177 | ||||||
Accounts receivable, less reserves of $3,357 and $4,564 respectively | 117,984 | 49,901 | ||||||
Inventories | 108,484 | 102,206 | ||||||
Deferred income taxes | 2,630 | 2,630 | ||||||
Other current assets | 7,575 | 8,885 | ||||||
Assets held for sale | 6,441 | 8,517 | ||||||
Total current assets | 282,449 | 202,609 | ||||||
Property, plant and equipment, net | 300,930 | 310,274 | ||||||
Goodwill | 81,492 | 87,132 | ||||||
Other intangible assets, net | 17,590 | 18,933 | ||||||
Other noncurrent assets | 29,721 | 31,422 | ||||||
Total assets | $ | 712,182 | $ | 650,370 | ||||
Liabilities and Deficit | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 3,308 | $ | 8,528 | ||||
Accounts payable - trade | 43,762 | 15,652 | ||||||
Accrued liabilities | 63,468 | 64,880 | ||||||
Total current liabilities | 110,538 | 89,060 | ||||||
Long-term debt, less current maturities | 673,596 | 650,267 | ||||||
Deferred income taxes | 30,074 | 28,727 | ||||||
Other noncurrent liabilities | 40,926 | 46,274 | ||||||
Total liabilities | 855,134 | 814,328 | ||||||
Commitments and contingencies (Note 2 and Note 8) | 0 | 0 | ||||||
Common stock, Class A, voting, $1 par value | 1 | 1 | ||||||
Common stock, Class B, nonvoting, $1 par value | 273 | 273 | ||||||
Accumulated deficit | (270,118 | ) | (290,887 | ) | ||||
Additional paid-in capital | 126,962 | 126,962 | ||||||
Accumulated other comprehensive loss | (2,001 | ) | (2,119 | ) | ||||
Total New Enterprise Stone & Lime Co., Inc. deficit | (144,883 | ) | (165,770 | ) | ||||
Noncontrolling interest in consolidated subsidiaries | 1,931 | 1,812 | ||||||
Total deficit | (142,952 | ) | (163,958 | ) | ||||
Total liabilities and deficit | $ | 712,182 | $ | 650,370 |
Three Months Ended November 30, | Nine Months Ended November 30, | ||||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenue | |||||||||||||||||
Construction materials | $ | 97,988 | $ | 99,031 | $ | 283,719 | $ | 299,176 | |||||||||
Heavy/highway construction | 83,169 | 91,457 | 241,649 | 237,179 | |||||||||||||
Traffic safety services and equipment | 20,872 | 19,173 | 63,932 | 61,303 | |||||||||||||
Total revenue | 202,029 | 209,661 | 589,300 | 597,658 | |||||||||||||
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | |||||||||||||||||
Construction materials | 51,248 | 59,303 | 162,851 | 199,228 | |||||||||||||
Heavy/highway construction | 77,914 | 89,305 | 226,137 | 226,293 | |||||||||||||
Traffic safety services and equipment | 15,654 | 14,831 | 48,478 | 46,340 | |||||||||||||
Total cost of revenue | 144,816 | 163,439 | 437,466 | 471,861 | |||||||||||||
Depreciation, depletion and amortization | 10,402 | 12,182 | 30,701 | 34,429 | |||||||||||||
Asset impairment | 10 | 226 | 193 | 5,249 | |||||||||||||
Selling, administrative and general expenses | 12,445 | 14,697 | 38,846 | 44,633 | |||||||||||||
Gain on disposals of property, equipment and software | 37 | (141 | ) | (3,796 | ) | (451 | ) | ||||||||||
Operating income | 34,319 | 19,258 | 85,890 | 41,937 | |||||||||||||
Interest expense, net | (21,231 | ) | (20,812 | ) | (63,447 | ) | (61,518 | ) | |||||||||
Income (loss) before income taxes | 13,088 | (1,554 | ) | 22,443 | (19,581 | ) | |||||||||||
Income tax expense (benefit) | 840 | (56 | ) | 1,263 | (1,398 | ) | |||||||||||
Net income (loss) | 12,248 | (1,498 | ) | 21,180 | (18,183 | ) | |||||||||||
Less: Net income attributable to noncontrolling interest | (139 | ) | (180 | ) | (411 | ) | (532 | ) | |||||||||
Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | 12,109 | (1,678 | ) | 20,769 | (18,715 | ) | |||||||||||
Other comprehensive income (loss) | |||||||||||||||||
Unrealized actuarial gains and amortization of prior service costs, net of income taxes | 40 | 39 | 118 | 116 | |||||||||||||
Comprehensive income (loss) | 12,288 | (1,459 | ) | 21,298 | (18,067 | ) | |||||||||||
Less: Comprehensive income attributable to noncontrolling interest | (139 | ) | (180 | ) | (411 | ) | (532 | ) | |||||||||
Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | $ | 12,149 | $ | (1,639 | ) | $ | 20,887 | $ | (18,599 | ) |
Nine Months Ended November 30, | ||||||||
(In thousands) | 2015 | 2014 | ||||||
Reconciliation of net income (loss) to net cash from operating activities | ||||||||
Net income (loss) | $ | 21,180 | $ | (18,183 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities | ||||||||
Depreciation, depletion and amortization | 30,701 | 34,429 | ||||||
Asset impairment | 193 | 5,249 | ||||||
Gain on disposals of property, equipment and software | (3,796 | ) | (451 | ) | ||||
Non-cash payment-in-kind interest accretion | 15,321 | 16,683 | ||||||
Amortization and write-off of debt issuance costs | 3,122 | 3,246 | ||||||
Deferred income taxes | 1,346 | (834 | ) | |||||
Bad debt | 38 | 830 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (68,121 | ) | (60,102 | ) | ||||
Inventories | (5,183 | ) | (1,936 | ) | ||||
Other assets | 716 | (367 | ) | |||||
Accounts payable | 25,723 | 23,832 | ||||||
Other liabilities | 103 | (3,467 | ) | |||||
Net cash provided by (used in) operating activities | 21,343 | (1,071 | ) | |||||
Cash flows from investing activities | ||||||||
Capital expenditures | (19,329 | ) | (18,761 | ) | ||||
Proceeds from sale of property, equipment and assets held for sale | 15,654 | 2,450 | ||||||
Change in cash value of life insurance | 6 | (35 | ) | |||||
Change in restricted cash | (8,291 | ) | 13,324 | |||||
Net cash used in investing activities | (11,960 | ) | (3,022 | ) | ||||
Cash flows from financing activities | ||||||||
Repayments of short-term borrowings | (5,873 | ) | (9,550 | ) | ||||
Repayments of other debt | (1,365 | ) | (5,025 | ) | ||||
Payments on capital leases | (1,280 | ) | (2,132 | ) | ||||
Debt issuance costs | — | (756 | ) | |||||
Distribution to noncontrolling interest | (291 | ) | — | |||||
Net cash used in financing activities | (8,809 | ) | (17,463 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 574 | (21,556 | ) | |||||
Cash and cash equivalents | ||||||||
Beginning of period | 13,293 | 23,892 | ||||||
End of period | $ | 13,867 | $ | 2,336 |
November 30, | February 28, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Costs and estimated earnings in excess of billings | $ | 25,481 | $ | 7,392 | ||||
Trade | 88,614 | 39,792 | ||||||
Retainages | 7,246 | 7,281 | ||||||
121,341 | 54,465 | |||||||
Allowance for doubtful accounts | (3,357 | ) | (4,564 | ) | ||||
Accounts receivable, net | $ | 117,984 | $ | 49,901 |
November 30, | February 28, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Crushed stone, agricultural lime and sand | $ | 74,086 | $ | 70,112 | ||||
Safety equipment | 16,111 | 14,187 | ||||||
Parts, tires and supplies | 6,980 | 7,753 | ||||||
Raw materials | 9,190 | 7,980 | ||||||
Building materials | 1,203 | 1,066 | ||||||
Other | 914 | 1,108 | ||||||
Total inventories | $ | 108,484 | $ | 102,206 |
November 30, | February 28, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Limestone and sand acreage | $ | 144,963 | $ | 146,293 | ||||
Land, buildings and building improvements | 84,305 | 87,097 | ||||||
Crushing, prestressing and manufacturing plants | 306,414 | 305,923 | ||||||
Contracting equipment vehicles and other | 320,819 | 307,644 | ||||||
Construction in progress | 4,817 | 3,923 | ||||||
Property, plant and equipment | 861,318 | 850,880 | ||||||
Less: Accumulated depreciation and depletion | (560,388 | ) | (540,606 | ) | ||||
Property, plant and equipment, net | $ | 300,930 | $ | 310,274 |
November 30, 2015 | February 28, 2015 | ||||||
Inventory | $ | — | $ | 961 | |||
PP&E, net of impairment | 6,441 | 7,556 | |||||
Total assets held for sale | $ | 6,441 | $ | 8,517 |
(In thousands) | Accrued restructuring | |||
Balance at February 28, 2015 | $ | 1,461 | ||
Additional accruals recorded | — | |||
Payments on or reductions of accrued restructuring charges | 1,322 | |||
Balance at November 30, 2015 | $ | 139 |
November 30, | February 28, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Deferred financing fees (less current portion of $2,181 and $2,905, respectively) | $ | 7,916 | $ | 10,314 | ||||
Capitalized software (net of accumulated amortization of $4,265 and $3,364, respectively) | 6,891 | 7,553 | ||||||
Cash surrender value of life insurance (net of loans of $3,035) | 1,243 | 1,249 | ||||||
Deferred stripping costs | 5,017 | 4,514 | ||||||
Other | 8,654 | 7,792 | ||||||
Total other noncurrent assets | $ | 29,721 | $ | 31,422 |
November 30, | February 28, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Insurance | $ | 28,933 | $ | 24,565 | ||||
Interest | 12,701 | 23,408 | ||||||
Payroll and vacation | 8,319 | 5,805 | ||||||
Withholding taxes | 489 | 858 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 3,214 | 3,082 | ||||||
Contract expenses * | 3,536 | 2,676 | ||||||
Other | 6,276 | 4,486 | ||||||
Total accrued liabilities | $ | 63,468 | $ | 64,880 |
November 30, | February 28, | |||||||
(In thousands) | 2015 | 2015 | ||||||
RCA ($83.1 million and $27.3 million available as of November 30, 2015 and February 28, 2015, respectively) | $ | — | $ | 5,873 | ||||
11% Notes, due 2018 | 250,000 | 250,000 | ||||||
13% Secured Notes, due 2018 | 345,353 | 323,956 | ||||||
Term Loans, interest rate of 8% | 70,000 | 70,000 | ||||||
Other obligations | 11,551 | 8,966 | ||||||
Total debt | 676,904 | 658,795 | ||||||
Less: Current portion | (3,308 | ) | (8,528 | ) | ||||
Total long-term debt | $ | 673,596 | $ | 650,267 |
Time Period | Percentage | ||
On or prior to 5/12/2015 | 103.00 | % | |
Between 5/13/2015 and 2/12/2016 | 102.00 | % | |
2/13/2016 and thereafter | 100.00 | % |
Time Period | Percentage | |
March 15, 2015 to March 14, 2016 | 106.50 | % |
March 15, 2016 to March 14, 2017 | 103.25 | % |
March 15, 2017 and thereafter | 100.00 | % |
Time Period | Percentage | |
September 1, 2014 to August 31, 2015 | 105.50 | % |
September 1, 2015 to August 31, 2016 | 102.75 | % |
September 1, 2016 and thereafter | 100.00 | % |
Three Months Ended November 30, | Nine Months Ended November 30, | |||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Net periodic benefit cost | ||||||||||||||||
Service cost | $ | 78 | $ | 86 | $ | 234 | $ | 258 | ||||||||
Interest cost | 93 | 105 | 279 | 315 | ||||||||||||
Expected return on plan assets | (155 | ) | (150 | ) | (465 | ) | (451 | ) | ||||||||
Amortization of prior service cost | 13 | 14 | 39 | 43 | ||||||||||||
Recognized net actuarial loss | 54 | 51 | 162 | 152 | ||||||||||||
Total pension expense | $ | 83 | $ | 106 | $ | 249 | $ | 317 |
November 30, | February 28, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Reclamation costs | $ | 19,642 | $ | 18,835 | ||||
Executive deferred compensation liability | 5,366 | 5,512 | ||||||
PIK accrued interest | 4,317 | 10,394 | ||||||
Other | 11,601 | 11,533 | ||||||
$ | 40,926 | $ | 46,274 |
Three Months Ended November 30, | Nine Months Ended November 30, | |||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenue | ||||||||||||||||
Construction materials | $ | 145,402 | $ | 147,087 | $ | 415,548 | $ | 424,608 | ||||||||
Heavy/highway construction | 83,169 | 91,457 | 241,649 | 237,179 | ||||||||||||
Traffic safety services and equipment | 25,841 | 22,911 | 77,339 | 73,732 | ||||||||||||
Segment totals | 254,412 | 261,455 | 734,536 | 735,519 | ||||||||||||
Eliminations | (52,383 | ) | (51,794 | ) | (145,236 | ) | (137,861 | ) | ||||||||
Total revenue | $ | 202,029 | $ | 209,661 | $ | 589,300 | $ | 597,658 | ||||||||
Operating income | ||||||||||||||||
Construction materials | $ | 38,792 | $ | 27,596 | $ | 102,888 | $ | 72,986 | ||||||||
Heavy/highway construction | 3,317 | 8 | 10,308 | 4,897 | ||||||||||||
Traffic safety services and equipment | 2,525 | 1,814 | 7,341 | 5,518 | ||||||||||||
Corporate and unallocated | (10,315 | ) | (10,160 | ) | (34,647 | ) | (41,464 | ) | ||||||||
Total operating income | $ | 34,319 | $ | 19,258 | $ | 85,890 | $ | 41,937 | ||||||||
Three Months Ended November 30, | Nine Months Ended November 30, | |||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Depreciation, depletion and amortization | ||||||||||||||||
Construction materials | $ | 7,047 | $ | 8,524 | $ | 20,570 | $ | 23,253 | ||||||||
Heavy/highway construction | 1,771 | 2,040 | 5,348 | 6,378 | ||||||||||||
Traffic safety services and equipment | 1,229 | 1,240 | 3,725 | 3,683 | ||||||||||||
Corporate and unallocated | 355 | 378 | 1,058 | 1,115 | ||||||||||||
Total depreciation, depletion and amortization | $ | 10,402 | $ | 12,182 | $ | 30,701 | $ | 34,429 |
(In thousands) | November 30, 2015 | November 30, 2014 | ||||||
Capital lease and other non-cash obligations incurred | $ | 7,615 | $ | 2,169 | ||||
Cash paid for interest, net of amounts capitalized | 55,698 | 51,113 |
(In thousands) | New Enterprise Stone & Lime Co., Inc. | Guarantor Subsidiaries | Non Guarantors | Eliminations | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 5,523 | $ | 388 | $ | 7,956 | $ | — | $ | 13,867 | ||||||||||
Restricted cash | 9,617 | 61 | 15,790 | — | 25,468 | |||||||||||||||
Accounts receivable, net | 102,388 | 15,590 | 6 | — | 117,984 | |||||||||||||||
Inventories | 92,417 | 16,067 | — | — | 108,484 | |||||||||||||||
Net investment in lease | — | — | 1,678 | (1,678 | ) | — | ||||||||||||||
Deferred income taxes | 1,918 | 712 | — | — | 2,630 | |||||||||||||||
Other current assets | 6,651 | 909 | 15 | — | 7,575 | |||||||||||||||
Assets held for sale | 6,441 | — | — | — | 6,441 | |||||||||||||||
Total current assets | 224,955 | 33,727 | 25,445 | (1,678 | ) | 282,449 | ||||||||||||||
Property, plant and equipment, net | 279,964 | 20,966 | 4,730 | (4,730 | ) | 300,930 | ||||||||||||||
Goodwill | 75,647 | 5,845 | — | — | 81,492 | |||||||||||||||
Other intangible assets, net | 6,860 | 10,730 | — | — | 17,590 | |||||||||||||||
Investment in subsidiaries | 94,445 | — | — | (94,445 | ) | — | ||||||||||||||
Intercompany receivables | (31,033 | ) | 31,067 | — | (34 | ) | — | |||||||||||||
Other noncurrent assets | 26,500 | 873 | 2,348 | — | 29,721 | |||||||||||||||
Total Assets | $ | 677,338 | $ | 103,208 | $ | 32,523 | $ | (100,887 | ) | $ | 712,182 | |||||||||
Liabilities and (Deficit) Equity | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Current maturities of long-term debt | $ | 4,090 | $ | — | $ | 896 | $ | (1,678 | ) | $ | 3,308 | |||||||||
Accounts payable - trade | 38,109 | 5,185 | 468 | — | 43,762 | |||||||||||||||
Accrued liabilities | 43,063 | 1,466 | 18,939 | — | 63,468 | |||||||||||||||
Total current liabilities | 85,262 | 6,651 | 20,303 | (1,678 | ) | 110,538 | ||||||||||||||
Intercompany payables | — | 34 | (34 | ) | — | |||||||||||||||
Long-term debt, less current maturities | 669,406 | — | 4,190 | — | 673,596 | |||||||||||||||
Obligations under capital leases, less current maturities | 4,730 | — | — | (4,730 | ) | — | ||||||||||||||
Deferred income taxes | 24,813 | 5,261 | — | — | 30,074 | |||||||||||||||
Other noncurrent liabilities | 38,010 | 568 | 2,348 | — | 40,926 | |||||||||||||||
Total liabilities | 822,221 | 12,480 | 26,875 | (6,442 | ) | 855,134 | ||||||||||||||
(Deficit) equity | ||||||||||||||||||||
New Enterprise Stone & Lime Co., Inc. (deficit) equity | (144,883 | ) | 90,728 | 3,717 | (94,445 | ) | (144,883 | ) | ||||||||||||
Noncontrolling interest | — | — | 1,931 | — | 1,931 | |||||||||||||||
Total (deficit) equity | (144,883 | ) | 90,728 | 5,648 | (94,445 | ) | (142,952 | ) | ||||||||||||
Total liabilities and (deficit) equity | $ | 677,338 | $ | 103,208 | $ | 32,523 | $ | (100,887 | ) | $ | 712,182 |
(In thousands) | New Enterprise Stone & Lime Co., Inc. | Guarantor Subsidiaries | Non Guarantors | Eliminations | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 8,633 | $ | 60 | $ | 4,600 | $ | — | $ | 13,293 | ||||||||||
Restricted cash | 1,301 | 88 | 15,788 | — | 17,177 | |||||||||||||||
Accounts receivable, net | 39,125 | 10,762 | 14 | — | 49,901 | |||||||||||||||
Inventories | 87,995 | 14,211 | — | — | 102,206 | |||||||||||||||
Net investment in lease | — | — | 1,198 | (1,198 | ) | — | ||||||||||||||
Deferred income taxes | 1,918 | 712 | — | — | 2,630 | |||||||||||||||
Other current assets | 8,038 | 836 | 11 | — | 8,885 | |||||||||||||||
Assets held for sale | 8,517 | — | — | — | 8,517 | |||||||||||||||
Total current assets | 155,527 | 26,669 | 21,611 | (1,198 | ) | 202,609 | ||||||||||||||
Property, plant and equipment, net | 290,137 | 20,137 | 5,810 | (5,810 | ) | 310,274 | ||||||||||||||
Goodwill | 81,287 | 5,845 | — | — | 87,132 | |||||||||||||||
Other intangible assets, net | 7,640 | 11,293 | — | — | 18,933 | |||||||||||||||
Investment in subsidiaries | 85,531 | — | — | (85,531 | ) | — | ||||||||||||||
Intercompany receivables | 3,308 | 29,169 | (34 | ) | (32,443 | ) | — | |||||||||||||
Other noncurrent assets | 28,097 | 977 | 2,348 | — | 31,422 | |||||||||||||||
Total Assets | $ | 651,527 | $ | 94,090 | $ | 29,735 | $ | (124,982 | ) | $ | 650,370 | |||||||||
Liabilities and (Deficit) Equity | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Current maturities of long-term debt | $ | 8,955 | $ | — | $ | 771 | $ | (1,198 | ) | $ | 8,528 | |||||||||
Accounts payable - trade | 8,510 | 6,265 | 331 | 546 | 15,652 | |||||||||||||||
Accrued liabilities | 47,876 | 1,508 | 15,496 | — | 64,880 | |||||||||||||||
Total current liabilities | 65,341 | 7,773 | 16,598 | (652 | ) | 89,060 | ||||||||||||||
Intercompany payables | 34,087 | (1,098 | ) | — | (32,989 | ) | — | |||||||||||||
Long-term debt, less current maturities | 645,228 | — | 5,039 | — | 650,267 | |||||||||||||||
Obligations under capital leases, less current maturities | 5,810 | — | — | (5,810 | ) | — | ||||||||||||||
Deferred income taxes | 23,466 | 5,261 | — | — | 28,727 | |||||||||||||||
Other noncurrent liabilities | 43,365 | 561 | 2,348 | — | 46,274 | |||||||||||||||
Total liabilities | 817,297 | 12,497 | 23,985 | (39,451 | ) | 814,328 | ||||||||||||||
(Deficit) equity | ||||||||||||||||||||
New Enterprise Stone & Lime Co., Inc. (deficit) equity | (165,770 | ) | 81,593 | 3,938 | (85,531 | ) | (165,770 | ) | ||||||||||||
Noncontrolling interest | — | — | 1,812 | — | 1,812 | |||||||||||||||
Total (deficit) equity | (165,770 | ) | 81,593 | 5,750 | (85,531 | ) | (163,958 | ) | ||||||||||||
Total liabilities and (deficit) equity | $ | 651,527 | $ | 94,090 | $ | 29,735 | $ | (124,982 | ) | $ | 650,370 |
(In thousands) | New Enterprise Stone & Lime Co., Inc. | Guarantor Subsidiaries | Non Guarantors | Eliminations | Total | |||||||||||||||
Revenue | $ | 179,387 | $ | 24,393 | $ | 1,818 | $ | (3,569 | ) | $ | 202,029 | |||||||||
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | 128,353 | 18,389 | 1,567 | (3,493 | ) | 144,816 | ||||||||||||||
Depreciation, depletion and amortization | 9,097 | 1,305 | — | — | 10,402 | |||||||||||||||
Asset impairment | 1 | 9 | — | — | 10 | |||||||||||||||
Selling, administrative and general expenses | 10,920 | 1,482 | 43 | — | 12,445 | |||||||||||||||
Gain on disposals of property, equipment and software | 79 | (42 | ) | — | — | 37 | ||||||||||||||
Operating income (loss) | 30,937 | 3,250 | 208 | (76 | ) | 34,319 | ||||||||||||||
Interest (expense) income, net | (21,182 | ) | (80 | ) | (45 | ) | 76 | (21,231 | ) | |||||||||||
Income (loss) before income taxes | 9,755 | 3,170 | 163 | — | 13,088 | |||||||||||||||
Income tax expense | 840 | — | — | — | 840 | |||||||||||||||
Equity in earnings of subsidiaries | 3,194 | — | — | (3,194 | ) | — | ||||||||||||||
Net income (loss) | 12,109 | 3,170 | 163 | (3,194 | ) | 12,248 | ||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | (139 | ) | — | (139 | ) | |||||||||||||
Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | 12,109 | 3,170 | 24 | (3,194 | ) | 12,109 | ||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 40 | — | — | — | 40 | |||||||||||||||
Comprehensive income (loss) | 12,149 | 3,170 | 163 | (3,194 | ) | 12,288 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | (139 | ) | — | (139 | ) | |||||||||||||
Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | $ | 12,149 | $ | 3,170 | $ | 24 | $ | (3,194 | ) | $ | 12,149 |
(In thousands) | New Enterprise Stone & Lime Co., Inc. | Guarantor Subsidiaries | Non Guarantors | Eliminations | Total | |||||||||||||||
Revenue | $ | 192,996 | $ | 18,992 | $ | 1,731 | $ | (4,058 | ) | $ | 209,661 | |||||||||
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | 148,242 | 15,615 | 1,430 | (1,848 | ) | 163,439 | ||||||||||||||
Depreciation, depletion and amortization | 10,899 | 1,283 | 12,182 | |||||||||||||||||
Asset impairment | 75 | 151 | 226 | |||||||||||||||||
Selling, administrative and general expenses | 12,981 | 1,666 | 50 | 14,697 | ||||||||||||||||
Gain loss on disposals of property, equipment and software | (148 | ) | 7 | (141 | ) | |||||||||||||||
Operating income (loss) | 20,947 | 270 | 251 | (2,210 | ) | 19,258 | ||||||||||||||
Interest (expense) income, net | (20,894 | ) | 28 | (54 | ) | 108 | (20,812 | ) | ||||||||||||
Income (loss) before income taxes | 53 | 298 | 197 | (2,102 | ) | (1,554 | ) | |||||||||||||
Income tax expense | (56 | ) | (56 | ) | ||||||||||||||||
Equity in earnings of subsidiaries | (1,787 | ) | 1,787 | — | ||||||||||||||||
Net income (loss) | (1,678 | ) | 298 | 197 | (315 | ) | (1,498 | ) | ||||||||||||
Less: Net income attributable to noncontrolling interest | — | (180 | ) | — | (180 | ) | ||||||||||||||
Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | (1,678 | ) | 298 | 17 | (315 | ) | (1,678 | ) | ||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 39 | — | — | 39 | ||||||||||||||||
Comprehensive income (loss) | (1,639 | ) | 298 | 197 | (315 | ) | (1,459 | ) | ||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | (180 | ) | — | (180 | ) | ||||||||||||||
Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | $ | (1,639 | ) | $ | 298 | $ | 17 | $ | (315 | ) | $ | (1,639 | ) |
(In thousands) | New Enterprise Stone & Lime Co., Inc. | Guarantor Subsidiaries | Non Guarantors | Eliminations | Total | |||||||||||||||
Revenue | $ | 521,078 | $ | 70,168 | $ | 5,238 | $ | (7,184 | ) | $ | 589,300 | |||||||||
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | 387,026 | 52,658 | 4,739 | (6,957 | ) | 437,466 | ||||||||||||||
Depreciation, depletion and amortization | 26,814 | 3,887 | — | — | 30,701 | |||||||||||||||
Asset impairment | 161 | 32 | — | — | 193 | |||||||||||||||
Selling, administrative and general expenses | 34,151 | 4,529 | 166 | — | 38,846 | |||||||||||||||
Gain on disposals of property, equipment and software | (3,704 | ) | (92 | ) | — | — | (3,796 | ) | ||||||||||||
Operating income (loss) | 76,630 | 9,154 | 333 | (227 | ) | 85,890 | ||||||||||||||
Interest (expense) income, net | (63,512 | ) | (19 | ) | (143 | ) | 227 | (63,447 | ) | |||||||||||
Income (loss) before income taxes | 13,118 | 9,135 | 190 | — | 22,443 | |||||||||||||||
Income tax expense | 1,263 | — | — | — | 1,263 | |||||||||||||||
Equity in earnings of subsidiaries | 8,914 | — | — | (8,914 | ) | — | ||||||||||||||
Net income (loss) | 20,769 | 9,135 | 190 | (8,914 | ) | 21,180 | ||||||||||||||
Less: Net income attributable to noncontrolling interest | — | (411 | ) | — | (411 | ) | ||||||||||||||
Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | 20,769 | 9,135 | (221 | ) | (8,914 | ) | 20,769 | |||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 118 | — | — | — | 118 | |||||||||||||||
Comprehensive income (loss) | 20,887 | 9,135 | 190 | (8,914 | ) | 21,298 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | (411 | ) | — | (411 | ) | ||||||||||||||
Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | $ | 20,887 | $ | 9,135 | $ | (221 | ) | $ | (8,914 | ) | $ | 20,887 |
(In thousands) | New Enterprise Stone & Lime Co., Inc. | Guarantor Subsidiaries | Non Guarantors | Eliminations | Total | |||||||||||||||
Revenue | $ | 535,820 | $ | 65,667 | $ | 5,192 | $ | (9,021 | ) | $ | 597,658 | |||||||||
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | 422,482 | 51,589 | 4,386 | (6,596 | ) | 471,861 | ||||||||||||||
Depreciation, depletion and amortization | 30,610 | 3,819 | 34,429 | |||||||||||||||||
Asset impairment | 5,098 | 151 | 5,249 | |||||||||||||||||
Selling, administrative and general expenses | 38,810 | 5,673 | 150 | 44,633 | ||||||||||||||||
Gain loss on disposals of property, equipment and software | (449 | ) | (2 | ) | (451 | ) | ||||||||||||||
Operating income (loss) | 39,269 | 4,437 | 656 | (2,425 | ) | 41,937 | ||||||||||||||
Interest (expense) income, net | (61,707 | ) | 31 | (164 | ) | 322 | (61,518 | ) | ||||||||||||
Income (loss) before income taxes | (22,438 | ) | 4,468 | 492 | (2,103 | ) | (19,581 | ) | ||||||||||||
Income tax benefit | (1,398 | ) | — | — | — | (1,398 | ) | |||||||||||||
Equity in earnings of subsidiaries | 2,325 | — | — | (2,325 | ) | — | ||||||||||||||
Net income (loss) | (18,715 | ) | 4,468 | 492 | (4,428 | ) | (18,183 | ) | ||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | (532 | ) | — | (532 | ) | |||||||||||||
Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | (18,715 | ) | 4,468 | (40 | ) | (4,428 | ) | (18,715 | ) | |||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 116 | — | — | 116 | ||||||||||||||||
Comprehensive income (loss) | (18,599 | ) | 4,468 | 492 | (4,428 | ) | (18,067 | ) | ||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | (532 | ) | — | (532 | ) | |||||||||||||
Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | $ | (18,599 | ) | $ | 4,468 | $ | (40 | ) | $ | (4,428 | ) | $ | (18,599 | ) |
(In thousands) | New Enterprise Stone & Lime Co., Inc. | Guarantor Subsidiaries | Non Guarantors | Eliminations | Total | |||||||||||||||
Cash flows from operating activities | $ | 12,576 | $ | 4,394 | $ | 4,373 | $ | 21,343 | ||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (15,236 | ) | (4,093 | ) | — | — | (19,329 | ) | ||||||||||||
Proceeds from sale of property, equipment and assets held for sale | 15,654 | — | — | — | 15,654 | |||||||||||||||
Change in cash value of life insurance | 6 | — | — | — | 6 | |||||||||||||||
Change in restricted cash | (8,316 | ) | 27 | (2 | ) | — | (8,291 | ) | ||||||||||||
Net cash used in investing activities | (7,892 | ) | (4,066 | ) | (2 | ) | — | (11,960 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Repayments of short term borrowings | (5,873 | ) | — | — | — | (5,873 | ) | |||||||||||||
Repayments of other debt | (641 | ) | — | (724 | ) | — | (1,365 | ) | ||||||||||||
Payments on capital leases | (1,280 | ) | — | — | — | (1,280 | ) | |||||||||||||
Distribution to noncontrolling interest | — | — | (291 | ) | — | (291 | ) | |||||||||||||
Net cash used in financing activities | (7,794 | ) | — | (1,015 | ) | — | (8,809 | ) | ||||||||||||
Net increase in cash and cash equivalents | (3,110 | ) | 328 | 3,356 | — | 574 | ||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||
Beginning of period | 8,633 | 60 | 4,600 | — | 13,293 | |||||||||||||||
End of period | $ | 5,523 | $ | 388 | $ | 7,956 | $ | — | $ | 13,867 |
(In thousands) | New Enterprise Stone & Lime Co., Inc. | Guarantor Subsidiaries | Non Guarantors | Eliminations | Total | |||||||||||||||
Cash flows from operating activities | $ | (8,202 | ) | $ | 5,286 | $ | 3,245 | $ | (1,400 | ) | $ | (1,071 | ) | |||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (12,982 | ) | (5,779 | ) | — | (18,761 | ) | |||||||||||||
Proceeds from sale of property and equipment, and assets held for sale | 2,450 | — | 2,450 | |||||||||||||||||
Change in cash value of life insurance | (35 | ) | — | (35 | ) | |||||||||||||||
Change in restricted cash | 13,512 | 4 | (192 | ) | — | 13,324 | ||||||||||||||
Net cash provided by (used in) investing activities | 2,945 | (5,775 | ) | (192 | ) | — | (3,022 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Repayments of short term borrowings | (9,550 | ) | — | — | — | (9,550 | ) | |||||||||||||
Repayments of other debt | (4,466 | ) | — | (559 | ) | — | (5,025 | ) | ||||||||||||
Payments on capital leases | (2,132 | ) | — | — | — | (2,132 | ) | |||||||||||||
Debt issuance costs | (756 | ) | — | — | — | (756 | ) | |||||||||||||
Dividends (paid) | — | — | (1,400 | ) | 1,400 | — | ||||||||||||||
Distribution to noncontrolling interest | — | |||||||||||||||||||
Net cash (used in) provided by financing activities | (16,904 | ) | — | (1,959 | ) | 1,400 | (17,463 | ) | ||||||||||||
Net increase in cash and cash equivalents | (22,161 | ) | (489 | ) | 1,094 | — | (21,556 | ) | ||||||||||||
Cash and cash equivalents | ||||||||||||||||||||
Beginning of period | 21,344 | — | 2,548 | — | 23,892 | |||||||||||||||
End of period | $ | (817 | ) | $ | (489 | ) | $ | 3,642 | $ | — | $ | 2,336 |
• | Cost of revenue decreased by $34.4 million (7.3%); |
• | Operating income more than doubled; increasing by $44.0 million (105.0%); |
• | Selling, administrative and general expenses decreased by $5.8 million or 13.0%; and |
• | Net cash flows from operating activities increased $22.4 million. |
Three Months Ended November 30, | Nine Months Ended November 30, | |||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenue | $ | 202,029 | $ | 209,661 | $ | 589,300 | $ | 597,658 | ||||||||
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | 144,816 | 163,439 | 437,466 | 471,861 | ||||||||||||
Depreciation, depletion and amortization | 10,402 | 12,182 | 30,701 | 34,429 | ||||||||||||
Asset impairment | 10 | 226 | 193 | 5,249 | ||||||||||||
Selling, administrative and general expenses | 12,445 | 14,697 | 38,846 | 44,633 | ||||||||||||
Gain on disposals of property, equipment and software | 37 | (141 | ) | (3,796 | ) | (451 | ) | |||||||||
Operating income | 34,319 | 19,258 | 85,890 | 41,937 | ||||||||||||
Interest expense, net | (21,231 | ) | (20,812 | ) | (63,447 | ) | (61,518 | ) | ||||||||
Income (loss) before income taxes | 13,088 | (1,554 | ) | 22,443 | (19,581 | ) | ||||||||||
Income tax expense (benefit) | 840 | (56 | ) | 1,263 | (1,398 | ) | ||||||||||
Net income (loss) | $ | 12,248 | $ | (1,498 | ) | $ | 21,180 | $ | (18,183 | ) |
Three Months Ended November 30, | Nine Months Ended November 30, | |||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Segment Revenue | ||||||||||||||||
Construction materials | $ | 145,402 | $ | 147,087 | $ | 415,548 | $ | 424,608 | ||||||||
Heavy/highway construction | 83,169 | 91,457 | 241,649 | 237,179 | ||||||||||||
Traffic safety services and equipment | 25,841 | 22,911 | 77,339 | 73,732 | ||||||||||||
Segment totals | 254,412 | 261,455 | 734,536 | 735,519 | ||||||||||||
Inter-segment eliminations | (52,383 | ) | (51,794 | ) | (145,236 | ) | (137,861 | ) | ||||||||
Total revenue | $ | 202,029 | $ | 209,661 | $ | 589,300 | $ | 597,658 |
Three Months Ended November 30, | Nine Months Ended November 30, | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Segment Revenue: | |||||||||||
Construction materials | 57.2 | % | 56.3 | % | 56.6 | % | 57.8 | % | |||
Heavy/highway construction | 32.7 | % | 35.0 | % | 32.9 | % | 32.2 | % | |||
Traffic safety services and equipment | 10.1 | % | 8.7 | % | 10.5 | % | 10.0 | % | |||
Segment totals | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Three Months Ended November 30, | Nine Months Ended November 30, | |||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Segment Cost of Revenue | ||||||||||||||||
Construction materials | $ | 98,662 | $ | 107,359 | $ | 294,680 | $ | 324,660 | ||||||||
Heavy/highway construction | 77,914 | 89,305 | 226,137 | 226,293 | ||||||||||||
Traffic safety services and equipment | 20,623 | 18,569 | 61,885 | 58,769 | ||||||||||||
Segment totals | 197,199 | 215,233 | 582,702 | 609,722 | ||||||||||||
Eliminations | (52,383 | ) | (51,794 | ) | (145,236 | ) | (137,861 | ) | ||||||||
Total cost of revenue | $ | 144,816 | $ | 163,439 | $ | 437,466 | $ | 471,861 |
Three Months Ended November 30, | Nine Months Ended November 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Segment Cost of Revenue as Percent of Segment Revenue | ||||||||||||
Construction materials | 67.9 | % | 73.0 | % | 70.9 | % | 76.5 | % | ||||
Heavy/highway construction | 93.7 | % | 97.6 | % | 93.6 | % | 95.4 | % | ||||
Traffic safety services and equipment | 79.8 | % | 81.0 | % | 80.0 | % | 79.7 | % |
Three Months Ended November 30, | Nine Months Ended November 30, | |||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Operating Income | ||||||||||||||||
Construction materials | $ | 38,792 | $ | 27,596 | $ | 102,888 | $ | 72,986 | ||||||||
Heavy/highway construction | 3,317 | 8 | 10,308 | 4,897 | ||||||||||||
Traffic safety services and equipment | 2,525 | 1,814 | 7,341 | 5,518 | ||||||||||||
Segment totals | 44,634 | 29,418 | 120,537 | 83,401 | ||||||||||||
Corporate and unallocated | (10,315 | ) | (10,160 | ) | (34,647 | ) | (41,464 | ) | ||||||||
Total operating income | $ | 34,319 | $ | 19,258 | $ | 85,890 | $ | 41,937 |
Nine Months Ended November 30, | ||||||||
(In thousands) | 2015 | 2014 | ||||||
Net cash (used in) provided by: | ||||||||
Operating activities | $ | 21,343 | $ | (1,071 | ) | |||
Investing activities | (11,960 | ) | (3,022 | ) | ||||
Financing activities | (8,809 | ) | (17,463 | ) | ||||
Cash paid for capital expenditures | (19,329 | ) | (18,761 | ) |
• | material weaknesses and significant deficiencies in our internal control over financial reporting; |
• | risks associated with the cyclical nature of our business and dependence on activity within the construction industry; |
• | declines in public sector construction and reductions in governmental funding which could continue to adversely affect our operations and results; |
• | our reliance on private investment in infrastructure and a slower than normal recovery which continue to adversely affect our results; |
• | a decline in the funding of Pennsylvania Department of Transportation, which we refer to as PennDot, the Pennsylvania Turnpike Commission, the New York State Thruway Authority or other state agencies; |
• | difficult and volatile conditions in the credit markets may adversely affect our financial position, results of operations and cash flows; |
• | our substantial debt and the risk of default of our existing and future indebtedness, which may result in an acceleration of our indebtedness thereunder; |
• | impact of our credit rating on our cost of capital and ability to refinance; |
• | the potential for our lender to modify the terms of our asset-based loan facility; |
• | the risk of default of our existing and future indebtedness, which may result in an acceleration of our indebtedness hereunder; |
• | the potential to inaccurately estimate the overall risks, requirements or costs when we bid on or negotiate a contract that is ultimately awarded to us; |
• | the weather and seasonality; |
• | our operation in a highly competitive industry within our local markets; |
• | rising costs of health care; |
• | our dependence upon securing and permitting aggregate reserves in strategically located areas; |
• | risks related to our ability to acquire other businesses in our industry and successfully integrate them with our existing operations; |
• | risks associated with our capital-intensive business; |
• | risks related to our ability to meet schedule or performance requirements of our contracts; |
• | changes to environmental, health and safety laws; |
• | our dependence on our senior management; |
• | our ability to recruit additional management and other personnel and our ability to grow our business effectively or successfully implement our growth plans; |
• | the potential for labor disputes to disrupt operations of our businesses; |
• | special hazards related to our operations that may cause personal injury or property damage; |
• | unexpected self-insurance claims and reserve estimates; |
• | material costs and losses as a result of claims that our products do not meet regulatory requirements or contractual specifications; |
• | our ability to permit additional reserves in select locations; |
• | cancellation of significant contracts or our disqualification from bidding for new contracts; |
• | general business and economic conditions, particularly an economic downturn; |
• | our new regional alignment and restructuring of our accounting and certain administrative functions may not yield the anticipated efficiencies and may result in a loss of key personnel; and |
• | the other factors discussed under Item 1A-Risk Factors in our Annual Report on Form 10-K for our fiscal year ended February 28, 2015. |
• | In the areas of finance, tax, accounting and information technology departments, we did not ensure a sufficient complement of personnel with an appropriate level of knowledge, experience and training commensurate with our structure and accounting and financial reporting requirements, which was identified as a material weakness by management during the fiscal year 2012 year-end financial reporting process. |
• | We did not maintain effective controls over information and communication, specifically around reports and financial data, as we had several issues with our enterprise resource planning ("ERP") system implementation in 2012. Thus, we had issues in providing the identification, capture, and exchange of information in a form and time frame that enabled our employees to carry out their responsibilities. Specifically, due to the system implementation, there were issues associated with the actual information/reports provided, which proved to be a pervasive issue. This deficiency which was identified by management and its independent auditors in fiscal year 2012 resulted from either not having adequate controls designed and in place or not achieving the intended operating effectiveness of controls. |
• | We did not maintain effective controls over the implementation of a new ERP in 2012. Specifically, we did not implement appropriate logical security design and testing, perform sufficient data conversion testing, maintain appropriate system documentation, or provide sufficient end user training during the implementation of the ERP. During the implementation of the ERP, management did not provide appropriate logical security design and testing, perform sufficient data conversion testing, and maintain appropriate system documentation. This material weakness was identified by management and the Company’s independent auditors during the fiscal year 2012 financial reporting process. This material weakness contributed to other control issues described below. |
• | We did not implement appropriate information technology controls related to change management, data integrity, access and segregation of duties. This material weakness, which was previously identified as a significant deficiency in prior |
• | We did not maintain effective controls over accounting for contracts including those in our Traffic Safety and Services operations. Specifically, we did not design and maintain effective controls over the reconciliation of contract billings and accruals to the general ledger, or formally analyze the recognition of contract revenue, profit and loss. For example, as a result of the ERP conversion in 2012, intercompany contracts were incorrectly classified as third party contracts and contract expenses for certain multi-year contracts were under accrued. In addition, during fiscal year 2016, there were select instances where the Delegation of Authority was not properly followed. This material weakness, which was identified by management during the 2012 financial reporting process, resulted in additional procedures performed by management and adjustments during the fiscal years 2015, 2014, 2013 and 2012 year-end financial closing and reporting processes. |
• | We did not maintain effective controls to ensure the completeness and accuracy of recorded revenue. Specifically, we did not design and maintain effective controls over pricing, billing practices and credit memos. For example, during conversion to the new ERP several customers were invoiced incorrect prices which resulted in significant billing adjustments credit memos. This material weakness which was identified during the fiscal 2012 year end audit by management, in conjunction with our independent auditors resulted in additional procedures performed by management and adjustments in both fiscal years 2013 and 2012. |
• | We did not maintain effective controls over the completeness, accuracy and valuation of our deferred tax assets and liabilities. Specifically, we did not design and maintain effective controls with respect to accounting for the difference between the book and tax bases of the company’s property, plant and equipment and capital leases. This material weakness which was identified by management and our independent auditors in fiscal year 2011 resulted in additional procedures performed by management and adjustments identified by management and our independent auditors during the fiscal years 2013, 2012 and 2011 year end and first quarter fiscal year 2014 financial closing and reporting processes. |
• | We did not adequately segregate the duties of personnel within our Accounting Department, including those related to cash management, payroll processing, accounts payable processing, and accounts receivable and general ledger maintenance, due to an insufficient complement of staff. This material weakness which was identified by our independent auditors in prior years but elevated to a material weakness in fiscal year 2012, resulted in additional procedures performed by management and adjustments identified by management and our independent auditors during the fiscal years 2013, 2012 and 2011 year-end financial closing and reporting processes. |
Exhibit Number | Description | ||
10.1 | Amended and Restated Executive Benefit Plan (incorporated by reference from the Company's quarterly report on Form 10-Q/A (file no. 333-176538) filed on October 13, 2015 | ||
10.2* | Amendment No. 1 to Revolving Credit Agreement among the Company and certain of its subsidiaries as borrowers, the lenders party thereto, Wells Fargo Bank, National Association as syndication agent and PNC Bank, National Association as administrative agent. | ||
10.3* | Amendment No. 1 to Term Loan Credit and Guaranty Agreement among the Company, certain of its subsidiaries as guarantors, Cortland Capital Market Services LLC, as administrative agent and certain funds managed by KKR Asset Management LLC, as lenders. | ||
31.1* | Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act, as amended. | ||
31.2* | Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act, as amended. | ||
32.1** | Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350. | ||
32.2** | Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350. | ||
95** | Mine Safety Disclosures | ||
101.INS XBRL*** | Instance document | ||
101.SCH XBRL*** | Taxonomy Extension Schema | ||
101.CAL XBRL*** | Taxonomy Extension Calculation Linkbase | ||
101.DEF XBRL*** | Taxonomy Extension Definition Linkbase | ||
101.LAB XBRL*** | Taxonomy Extension Label Linkbase | ||
101.PRE XBRL*** | Taxonomy Extension Presentation Linkbase | ||
NEW ENTERPRISE STONE & LIME CO., INC. | ||
Date: January 13, 2016 | By: | /s/ Albert L. Stone |
Albert L. Stone | ||
Executive Vice President and Chief Financial Officer |
Exhibit Number | Description | ||
10.1 | Amended and Restated Executive Benefit Plan | ||
10.2* | Amendment No. 1 to Revolving Credit Agreement among the Company and certain of its subsidiaries as borrowers, the lenders party thereto, Wells Fargo Bank, National Association as syndication agent and PNC Bank, National Association as administrative agent. | ||
10.3* | Amendment No. 1 to Term Loan Credit and Guaranty Agreement among the Company, certain of its subsidiaries as guarantors, Cortland Capital Market Services LLC, as administrative agent and certain funds managed by KKR Asset Management LLC, as lenders. | ||
31.1* | Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act, as amended. | ||
31.2* | Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act, as amended. | ||
32.1** | Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350. | ||
32.2** | Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350. | ||
95** | Mine Safety Disclosures | ||
101.INS XBRL*** | Instance document | ||
101.SCH XBRL*** | Taxonomy Extension Schema | ||
101.CAL XBRL*** | Taxonomy Extension Calculation Linkbase | ||
101.DEF XBRL*** | Taxonomy Extension Definition Linkbase | ||
101.LAB XBRL*** | Taxonomy Extension Label Linkbase | ||
101.PRE XBRL*** | Taxonomy Extension Presentation Linkbase | ||
By: /s/ Albert L. Stone |
Name: Albert L. Stone |
Title: Executive Vice President Chief |
Financial Officer & Treasurer |
By: |
Name: Paul I. Detwiler, III |
Title: Vice President, Secretary & |
Treasurer |
By: |
Name: Glenn D. Kreutze |
Title: Vice President |
By: /s/ Albert L. Stone |
Name: Albert L. Stone |
Title: Executive Vice President Chief |
Financial Officer & Treasurer |
By: |
Name: Paul I. Detwiler, III |
Title: Vice President, Secretary & |
Treasurer |
By: |
Name: Jeffrey M. Smith |
Title: Authorized Signatory |
By: |
Name: Jeffrey M. Smith |
Title: Authorized Signatory |
By: |
Name: Jeffrey M. Smith |
Title: Authorized Signatory |
Date: January 13, 2016 | |
/s/ Paul I. Detwiler, III | |
Paul I. Detwiler, III | |
President, Chief Executive Officer and Secretary |
Date: January 13, 2016 | |
/s/ Albert L. Stone | |
Albert L. Stone | |
Executive Vice President and Chief Financial Officer |
Date: January 13, 2016 | |
/s/ Paul I. Detwiler, III | |
Paul I. Detwiler, III | |
President, Chief Executive Officer and Secretary |
Date: January 13, 2016 | |
/s/ Albert L. Stone | |
Albert L. Stone | |
Executive Vice President and Chief Financial Officer |
Name of Operation * | Number of Inspections | Total Number of S&S Citations | Mine Act §104(b) Orders | Mine Act §104(d) Citations and Orders | Mine Act §110(b)2 Violations | Mine Act §107(a) Orders | Total Dollar Value of Proposed MSHA | Total Number of Mining Related Fatalities | Received Written Notice under Mine Act §104(e) (yes/no) | ||||||||
ALFRED STATION | 1 | — | — | — | — | — | 100 | — | No | ||||||||
ASHCOM | 1 | — | — | — | — | — | — | — | No | ||||||||
BURKHOLDER | 1 | 2 | — | — | — | — | 162 | — | No | ||||||||
CENTRAL CITY | 2 | — | — | — | — | — | 400 | — | No | ||||||||
CHAMBERSBURG | 1 | — | — | — | — | — | 308 | — | No | ||||||||
DRY RUN | 1 | — | — | — | — | — | 100 | — | No | ||||||||
EGYPT | 1 | 1 | — | — | — | — | — | — | No | ||||||||
FAIRFIELD | 1 | — | — | — | — | — | 100 | — | No | ||||||||
FRANKLINVILLE | — | 1 | — | — | — | — | 1,572 | — | No | ||||||||
HONEYBROOK | 1 | 2 | — | — | — | — | 338 | — | No | ||||||||
KURTZ | 1 | — | — | — | — | — | — | — | No | ||||||||
KUTZTOWN | — | — | — | — | — | — | 999 | — | No | ||||||||
LEWISBURG | — | — | — | — | — | — | 343 | — | No | ||||||||
LIMEVILLE | — | — | — | — | — | — | 799 | — | No | ||||||||
MARTINS CREEK | 2 | — | — | — | — | — | — | — | No | ||||||||
MT. CYDONIA 1 | 1 | 4 | — | — | — | — | 920 | — | No | ||||||||
NARVON | 1 | — | — | — | — | — | — | — | No | ||||||||
NAZARETH | 1 | 1 | — | — | — | — | — | — | No | ||||||||
ORBISONIA | 1 | 2 | — | — | — | — | 525 | — | No | ||||||||
ROARING SPRING | 1 | 8 | — | — | — | — | 990 | — | No | ||||||||
SHESHEQUIN | 1 | — | — | — | — | — | — | — | No | ||||||||
SHIPPENSBURG | 2 | 1 | — | — | — | — | — | — | No | ||||||||
UNION FURNACE | — | — | — | — | — | — | 100 | — | No | ||||||||
WEAVERLAND | 2 | 4 | — | — | — | — | — | — | No | ||||||||
WEHRLE | — | — | — | — | — | — | 317 | — | No | ||||||||
TOTAL | 23 | 26 | — | — | — | — | 8,073 | — |
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Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Jan. 12, 2016 |
|
Entity Registrant Name | New Enterprise Stone & Lime Co., Inc. | |
Entity Central Index Key | 0001527032 | |
Current Fiscal Year End Date | --02-29 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Nov. 30, 2015 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock, Class A | ||
Entity Common Stock, Shares Outstanding | 500 | |
Common Stock, Class B | ||
Entity Common Stock, Shares Outstanding | 273,285 |
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Feb. 28, 2015 |
---|---|---|
Accounts receivable, reserves | $ 3,357 | $ 4,564 |
Common Stock, Class A | ||
Redeemable Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common Stock, Class B | ||
Redeemable Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Condensed Consolidated Statements of Comprehensive Loss (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Revenue | ||||
Construction materials | $ 97,988 | $ 99,031 | $ 283,719 | $ 299,176 |
Heavy/highway construction | 83,169 | 91,457 | 241,649 | 237,179 |
Traffic safety services and equipment | 20,872 | 19,173 | 63,932 | 61,303 |
Total revenue | 202,029 | 209,661 | 589,300 | 597,658 |
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | ||||
Construction materials | 51,248 | 59,303 | 162,851 | 199,228 |
Heavy/highway construction | 77,914 | 89,305 | 226,137 | 226,293 |
Traffic safety services and equipment | 15,654 | 14,831 | 48,478 | 46,340 |
Total cost of revenue | 144,816 | 163,439 | 437,466 | 471,861 |
Depreciation, depletion and amortization | 10,402 | 12,182 | 30,701 | 34,429 |
Asset impairment | 10 | 226 | 193 | 5,249 |
Selling, administrative and general expenses | 12,445 | 14,697 | 38,846 | 44,633 |
Gain on disposals of property, equipment and software | 37 | (141) | (3,796) | (451) |
Operating income (loss) | 34,319 | 19,258 | 85,890 | 41,937 |
Interest expense, net | (21,231) | (20,812) | (63,447) | (61,518) |
Income (loss) before income taxes | 13,088 | (1,554) | 22,443 | (19,581) |
Income tax expense (benefit) | 840 | (56) | 1,263 | (1,398) |
Net income (loss) | 12,248 | (1,498) | 21,180 | (18,183) |
Less: Comprehensive income attributable to noncontrolling interest | (139) | (180) | (411) | (532) |
Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | 12,109 | (1,678) | 20,769 | (18,715) |
Unrealized actuarial gains and amortization of prior service costs, net of income taxes | 40 | 39 | 118 | 116 |
Comprehensive income (loss) | 12,288 | (1,459) | 21,298 | (18,067) |
Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | $ 12,149 | $ (1,639) | $ 20,887 | $ (18,599) |
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
||||
Reconciliation of net income (loss) to net cash from operating activities | |||||
Net income (loss) | $ 21,180 | $ (18,183) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities | |||||
Depreciation, depletion and amortization | 30,701 | 34,429 | |||
Asset impairment | 193 | 5,249 | |||
Gain on disposals of property, equipment and software | (3,796) | (451) | |||
Non-cash payment-in-kind interest accretion | 15,321 | 16,683 | |||
Amortization and write-off of debt issuance costs | 3,122 | 3,246 | |||
Deferred income taxes | 1,346 | (834) | |||
Bad debt | 38 | 830 | |||
Changes in assets and liabilities: | |||||
Accounts receivable | (68,121) | (60,102) | |||
Inventories | (5,183) | (1,936) | |||
Other assets | 716 | (367) | |||
Accounts payable | 25,723 | 23,832 | |||
Other liabilities | 103 | (3,467) | |||
Net cash provided by (used in) operating activities | 21,343 | (1,071) | |||
Cash flows from investing activities | |||||
Capital expenditures | (19,329) | (18,761) | |||
Proceeds from sale of property, equipment and assets held for sale | 15,654 | 2,450 | |||
Change in cash value of life insurance | 6 | (35) | |||
Change in restricted cash | (8,291) | 13,324 | |||
Net cash used in investing activities | (11,960) | (3,022) | |||
Cash flows from financing activities | |||||
Proceeds from issuance of short-term borrowings | (9,550) | ||||
Repayments of other debt | (1,365) | (5,025) | |||
Payments on capital leases | (1,280) | (2,132) | |||
Debt issuance costs | 0 | (756) | |||
Distribution to noncontrolling interest | (291) | 0 | |||
Net cash used in financing activities | (8,809) | (17,463) | |||
Net increase (decrease) in cash and cash equivalents | 574 | (21,556) | |||
Cash and cash equivalents | |||||
Beginning of period | 13,293 | [1] | 23,892 | ||
End of period | 13,867 | 2,336 | |||
Proceeds from (Repayments of) Debt | $ (5,873) | $ (9,550) | |||
|
Nature of Operations and Summary of Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Company Activities New Enterprise Stone & Lime Co., Inc., a Delaware corporation, is a privately held, vertically integrated construction materials supplier and heavy/highway construction contractor in Pennsylvania and western New York and a national traffic safety services and equipment provider. Founded in 1924, the Company operates in three segments based upon the nature of its products and services: construction materials, heavy/highway construction and traffic safety services and equipment. As used herein, the terms “we,” “us,” “our,” “NESL,” or the “Company” refer to New Enterprise Stone & Lime Co., Inc., and/or one or more of its subsidiaries. Construction materials is comprised of aggregate production, including crushed stone and construction sand and gravel, hot mix asphalt production, and ready mixed concrete production. Heavy/highway construction includes heavy construction, blacktop paving and other site preparation services. The Company's heavy/highway construction operations are primarily supplied with construction materials from our construction materials segment. Traffic safety services and equipment consists primarily of sales, leasing and servicing of general and specialty traffic control and work zone safety equipment and devices to industrial construction end-users. Almost all of our products are produced and consumed outdoors. Normally, our highest sales and earnings are in the second and third fiscal quarters and our lowest are in the first and fourth fiscal quarters. As a result of this seasonality, our significant net working capital items, which are accounts receivable, inventories, accounts payable - trade and accrued liabilities, are typically higher as of interim period ends compared to fiscal year end. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements and notes included in this report have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly owned subsidiary companies, and their wholly owned subsidiary companies, and entities where the Company has a controlling equity interest. All adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in the unaudited Condensed Consolidated Financial Statements. The unaudited Condensed Consolidated Financial Statements do not include all of the information or disclosures required for a complete presentation in accordance with GAAP. The year-end condensed balance sheet data at February 28, 2015 was derived from audited financial statements, but does not include all disclosures required by GAAP. Accordingly, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2015 filed with the Securities and Exchange Commission (“SEC”) on May 18, 2015. The results for interim periods are not necessarily indicative of the results for the full fiscal year ending February 29, 2016 ("fiscal year 2016"). Related Party Transactions The Company has certain related party transactions, including: (i) an arrangement to lease its precast/prestressed structural concrete operations in Roaring Spring, PA to an entity controlled by a member of the Company's Board of Directors and stockholder; (ii) investments in Means to Go, LLC, in which the Company has an ownership interest of 50% or less, and an aircraft lease agreement with Means to Go, LLC; (iii) South Woodbury, L.P. owns an office building in Roaring Spring, PA and an office building that is being used as the Company's corporate headquarters in New Enterprise, PA; and (iv) payments of consulting fees to Larry R. Webber, a director of the Company, per a management consulting agreement. Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries and entities where the Company has a controlling equity interest. All material intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain items previously reported in prior period financial statement captions have been conformed to agree with the current presentation. The expenses associated with certain benefit programs previously disclosed within the Pension and profit sharing caption have been reclassified to the Cost of revenue and to the Selling, administrative and general captions in the Condensed Consolidated Statements of Comprehensive Income (Loss) in the amounts of $1.8 million and $0.2 million, respectively for the three months ended November 30, 2014 and $4.8 million and $0.5 million, respectively, for the nine months ended November 30, 2014. The reclassification had no effect on Operating income, Comprehensive income (loss) within the Condensed Consolidated Statements of Comprehensive Income (Loss), the Condensed Consolidated Statement of Cash Flows, or the Condensed Consolidated Balance Sheets. Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash balances were restricted in certain consolidated subsidiaries for insurance requirements as well as collateral on outstanding letters of credit or rentals. The Company uses a cash pooling arrangement with a single financial institution with specific provisions for the right to offset positive and negative cash balances. In addition, the Company has agreed to provide cash dominion for all accounts associated with this arrangement. Accordingly, the Company classifies net aggregate cash overdraft positions as other obligations within the current maturities of long-term debt, as applicable. Accounts Receivable Trade accounts receivable, less allowance for doubtful accounts, are recorded at the invoiced amount plus service charges related to past due accounts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable, including service charges. The Company determines the allowance based on historical write-off experience, specific identification based on a review of individual past due balances and their composition, and the nature of the customer. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company’s total accounts receivable consists of the following:
Inventories Inventories are stated at the lower of cost or market. Cost is determined using either first-in, first-out (“FIFO”) or weighted average method based on the applicable category of inventories. The Company’s total inventories consist of the following:
Property, Plant and Equipment Property, plant and equipment are carried at cost. Assets under capital leases are stated at the lesser of the present value of minimum lease payments or the fair value of the leased item. Provision for depreciation is generally computed over estimated service lives by the straight-line method. The Company’s property, plant and equipment consist of the following:
For the three months ended November 30, 2015 and 2014, depreciation expense was $9.1 million and $9.9 million, respectively. For the nine months ended November 30, 2015 and 2014, depreciation expense was $27.2 million and $30.1 million, respectively. Assets Held for Sale The Company classifies assets as held for sale when all the following criteria are met: (i) management, having the authority to approve the action, commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition; (iii) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; (iv) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year, with a few exceptions; and (v) the asset is being actively marketed for sale at a price that is reasonable, in relation to its current fair value. During the nine months ended November 30, 2015, the Company finalized its sale of certain properties previously recorded in Assets Held for Sale at February 28, 2015 for $7.1 million and the assumption of $1.1 million in liabilities. The Company recorded a gain of approximately $3.2 million and recorded additional impairment of approximately $0.2 million on these sales in the nine months ended November 30, 2015. Additionally during the nine months ended November 30, 2015, the Company completed the sale of other assets for $9.9 million in cash, $1.0 million of deferred purchase price, and the assumption of $0.3 million of liabilities. Goodwill and Other intangible assets of $6.3 million were allocated on the sale of these business operations. During the nine months ended November 30, 2015, the Company classified an additional $3.0 million in assets as held for sale. No additional impairments were recorded. During the three months ended November 30, 2015, the Company reclassified $6.4 million of assets held for sale to assets held for use. There was no gain or loss recorded on the transfer. The Company's assets held for sale consisted of the following:
Restructuring The Company initiated, during fiscal year 2014, and substantially concluded in fiscal year 2015, a cost savings and operational efficiency plan (the “Plan”). The Plan focused on headcount reductions, operational efficiencies, administrative savings, and a management realignment. The following table presents changes to Accrued restructuring, included in Accrued liabilities on the Condensed Consolidated Financial Statements:
Use of Estimates The preparation of the Condensed Consolidated Financial Statements requires management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the carrying amount of property, plant and equipment; valuation of receivables, inventories, goodwill and other intangible assets; recognition of revenue and loss contract reserves under the percentage-of-completion method; assets and obligations related to employee benefit plans; asset retirement obligations; income tax valuation; and self-insurance reserves. Actual results could differ from those estimates and those differences could be material. Goodwill and Other Intangible Assets Goodwill Goodwill is tested for impairment on an annual basis or more frequently whenever events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The impairment test for goodwill is a two-step process. Under the first step, the fair value of the reporting unit is compared with its carrying value. If the fair value of the reporting unit is less than its carrying value, an indication of impairment exists and the reporting unit must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. If the fair value of the reporting unit exceeds its carrying value under the first step, step two does not need to be performed. Our reporting units were determined based on our organizational structure, considering the level at which discrete financial information for businesses is available and regularly reviewed. The Company has three operating segments, which is the basis for determining its reporting units, organized around its three lines of business: (i) construction materials; (ii) heavy/highway construction; and (iii) traffic safety services and equipment. Construction materials include three reporting units within the operating segment based on geographic location. The operating segment of traffic safety services and equipment consists of one reporting unit within the segment based upon the similar economic characteristics of its operations. Our annual goodwill impairment analysis takes place as of fiscal year end. Management did not note any impairment indicators during the nine months ended November 30, 2015. The estimated fair value of each of the reporting units was in excess of its carrying value, even after conducting various sensitivity analysis on key assumptions, such that no adjustment to the carrying values of goodwill was required as of February 28, 2015, unless events or circumstances indicate that it is more likely than not that the fair value of a reporting unit has been reduced below its carrying value. The inputs used within the fair value measurements were categorized within Level 3 of the fair value hierarchy. During the nine months ended November 30, 2015, the Company allocated $5.6 million of goodwill to the sale of certain assets. Other Intangible Assets Other intangible assets consist of technology, customer relationships and trademarks acquired in previous acquisitions. The technology, customer relationships and trademarks are amortized over a straight-line basis. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. During the nine months ended November 30, 2015, the Company allocated $0.7 million of other intangibles to the sale of certain assets. Other Noncurrent Assets The Company’s Other noncurrent assets consist of the following:
Revenue Recognition The Company recognizes revenue on construction contracts under the percentage-of-completion method of accounting, as measured by the cost incurred to date over estimated total cost. Our construction contracts are primarily fixed-price contracts. The typical contract life cycle for these projects can be up to two to four years in duration. Changes in job performance, job conditions, estimated profitability and final contract settlements may result in revisions to revenues and costs. Revenue from contract change orders is recognized when the contract owner has agreed to the change order with the customer and the related costs are incurred. We do not recognize revenue on a basis of contract claims. Provisions for estimated losses on uncompleted contracts are made for the full amount of estimated loss in the period in which evidence indicates that the estimated total cost of a contract exceeds its estimated total revenue and are recorded as an additional cost (rather than as a reduction of revenue). Contract costs include all direct material, labor, subcontract and other costs and those indirect costs related to contract performance, such as indirect salaries and wages, equipment repairs and depreciation, insurance and payroll taxes. Administrative and general expenses are charged to expense as incurred. Costs and estimated earnings in excess of billings on uncompleted contracts represent the excess of contract revenue recognized to date over billings to date. Billings in excess of costs and estimated earnings on uncompleted contracts represent the excess of billings to date over the amount of revenue recognized to date. As of November 30, 2015 and February 28, 2015, such amounts are included in accounts receivable (Note 1, “Nature of Operations and Summary of Significant Accounting Policies”) and accrued liabilities (Note 3, “Accrued Liabilities”), respectively, in the Condensed Consolidated Balance Sheets. The Company generally recognizes revenue on the sale of construction materials and concrete products, other than custom-built concrete products, when the customer takes title and assumes risk of loss. Typically, this occurs when products are shipped. The Company accounts for custom-built concrete products under the units-of-production method. Under this method, the revenue is recognized as the units are produced under firm contracts. The Company recognizes equipment rental revenue on a straight-line basis over the specific daily, weekly or monthly terms of the agreements. Revenues from the sale of equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer. Other revenue consists of sales of miscellaneous materials, scrap and other products that do not fall into our other primary lines of business. The Company generally recognizes revenue when the customer takes title and assumes risk of loss, the price is fixed or determinable and collection is reasonably assured. Impairment of Definite-Lived Long-Lived Assets Long-lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. The Company considers an asset group as the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. For our construction materials and heavy/highway construction operations, the lowest level of largely independent identifiable cash flows is at the regional level, which collectively serves a local market. Each region shares and allocates its material production, resources, equipment and business activity among the locations within the region in generating cash flows. We have realigned our current regional structure by combining Lancaster, Pennsylvania and Northeastern Pennsylvania into our Eastern Region, Central Pennsylvania, Chambersburg, Shippensburg and Gettysburg Pennsylvania into our Western Region, and Western New York into our North Region. The construction materials regions’ long-lived assets predominantly include limestone and sand acreage and crushing, prestressing equipment and manufacturing plants and the heavy/highway construction region’s long lived assets predominantly include contracting equipment and vehicles. The traffic safety services and equipment business includes two asset groups, distinguished between its retail sales and distribution as one asset group and its manufacturing and assembly as the second asset group. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount exceeds the fair value of the asset group. Recently Issued and Adopted Accounting Standards In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes-ASU 2015-17 is being issued to align the presentation of deferred income tax assets and liabilities with International Financial Reporting Standards (IFRS). IAS 1, Presentation of Financial Statements, requires deferred tax assets and liabilities to be classified as noncurrent in a classified statement of financial position. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In September 2015, the FASB Issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments-ASU 2015-16 was issued to require an acquirer to recognize measurement-period adjustments to provisional amounts in the reporting period in which the adjustments are determined. Previously, measurement-period adjustments were retrospectively applied. As an alternative to restating the prior periods for the measurement-period adjustments, the ASU requires acquirers to present separately on the face of the earnings statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustments to the provisional amounts had been recognized as of the acquisition date. This ASU is to be applied prospectively to adjustments to provisional amounts that occur after December 15, 2015. Early adoption is permitted. While we are still evaluating the impact of ASU 2015-16, we do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In August 2015, the FASB issued ASU 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update). ASU 2015-15 was issued to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements given the lack of guidance on this topic in ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods with those fiscal years. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In August 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendments in this update defers the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is evaluating the impact of this standard on its Consolidated Financial Statements and is unlikely to early adopt this standard. In July 2015, the FASB issued ASU 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient. The amendments in all three parts of this Update are effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. An entity should apply the amendments in Parts I and II retrospectively for all financial statements presented. An entity should apply the amendments on Part III prospectively. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Effective for public business entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. The amendments in this Update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-04, Compensation - Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets. Effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. Early adoption of the amendments in this update are permitted. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2015 and for interim periods within fiscal years beginning after December 15, 2016. Early adoption of the amendments in this update are permitted for financial statements that have not been previously issued. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. Effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standards requires an entity's management to evaluate whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. Public entities are required to apply standards for annual reporting periods ending after December 15, 2016, and interim periods thereafter. Early application is permitted. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. |
Risks and Uncertainties |
9 Months Ended |
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Nov. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | isks and Uncertainties Our business is heavily impacted by several factors which are outside the control of management, including the overall health of the economy, the level of commercial and residential construction, the level of federal, state and local publicly funded construction projects and seasonal variations generally attributable to weather conditions. These factors impact the amount and timing of our revenues and our overall performance. On February 12, 2014, the Company entered into (i) an asset-based revolving credit agreement, among the Company and certain of its subsidiaries party thereto as borrowers, the lenders party thereto, PNC Bank, National Association, as issuer, swing loan lender, administrative agent and collateral agent (the “Revolving Credit Agreement” or “RCA”) and a (ii) term loan credit and guaranty agreement, among the Company as borrower, certain subsidiaries of the Company party thereto as guarantors, the lenders party thereto and Cortland Capital Market Services LLC as administrative agent (the “Term Loans”, and together with RCA, the “Credit Facilities”). The Credit Facilities contain certain financial maintenance and other covenants (Note 4, "Long-Term Debt"). In the past, the Company has failed to meet certain operating performance measures as well as the financial covenant requirements set forth under its previous credit facilities, which resulted in the need to obtain several amendments, and should the Company fail in the future, the Company cannot guarantee that it will be able to obtain such amendments. A failure to obtain such amendments could result in an acceleration of its indebtedness under the Credit Facilities and a cross-default under our other indebtedness, including the $250.0 million 11% senior notes due 2018 (the “Notes”) and the $265 million 13% senior secured notes due 2018 (the "Secured Notes"). If the lenders were to accelerate the due dates of our indebtedness or if current sources of liquidity prove to be insufficient, there can be no assurance that the Company would be able to repay or refinance such indebtedness or to obtain sufficient funding. This could require the Company to restructure or alter its operations and capital structure. We believe we have sufficient financial resources, including cash and cash equivalents, cash from operations and amounts available for borrowing under our RCA, to fund our business and operations, including capital expenditures and debt service obligations, for at least the next twelve months. At November 30, 2015, the Company was in compliance with all of its financial covenants. |
Accrued Liabilities |
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Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following:
* Included within contract expenses is $0.7 million and $1.5 million of provision for loss contracts as of November 30, 2015 and February 28, 2015, respectively. |
Long-Term Debt |
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Long-Term Debt | Long-Term Debt The Company's long-term debt consists of the following:
The RCA bears interest, at the Company’s option, at rates based upon LIBOR, plus a margin of 4.0% (with a LIBOR floor of 1.0%) or the base rate, plus a margin of 3.0%. The unused portion of the revolving credit commitment is subject to a commitment fee at a rate of 0.5%. At November 30, 2015, the weighted average interest rate on the RCA was 6.49%. The Term Loans bear interest, at the Company’s option, at rates based upon the LIBOR plus, a margin of 7.0% (with a LIBOR floor of 1.0%) or the base rate plus a margin of 6.0%. At November 30, 2015 the weighted average interest rate on the Term Loans was 8.0%. Effective August 31, 2015, the Company obtained an amendment to the Credit Facility which allowed (i) certain assets to be added to a schedule of permitted asset sales and dispositions, and (ii) permitted the Company to incur additional capital expenditures equal to the unrestricted net cash proceeds received from the asset sales permitted under the terms of the Credit Agreements, as amended. The Credit Facilities contain a springing maturity date based upon certain events with a final maturity date of February 12, 2019. The Term Loans and the RCA will mature on December 14, 2017 unless the Company refinances its Secured Notes by such date and will mature on June 2, 2018 unless the Company refinances its Notes by June 1, 2018. Availability under the RCA is determined pursuant to a borrowing base formula based on eligible receivables and eligible inventory, subject to an availability block and to such other reserves as the Revolver Agent and the Syndication Agent may impose in accordance with the RCA. The availability block is initially $20.0 million but reduces to $10.0 million if the Company achieves a fixed charge coverage ratio of 1.00 to 1.00 as of the end of any fiscal quarter on a rolling four (4) quarter basis and further reduces to $0.0 million if the Company achieves such fixed charge coverage ratio as of the end of the two immediately subsequent fiscal quarters. However, if at any time following the effectiveness of any of the reductions to the availability block the fixed charge coverage ratio as of the end of any quarter measured on a rolling four (4) quarter basis shall be less than 1.00 to 1.00, the availability block shall be increased back to $20.0 million, subject to further reduction as provided above; provided, that such reductions may occur no more than two (2) times, and if the availability block is increased back to $20.0 million following the second reduction, such increase shall be permanent and shall not be subject to further reduction. The Company achieved a fixed charge coverage ratio (as defined in the Credit Facilities) of greater than 1.00 to 1.00 as of August 31, 2015. During the third quarter ended November 30, 2015, the company achieved a greater than 1.00 to 1.00 fixed charge coverage ratio for a second consecutive quarter; therefore the availability block will be reduced to $0.0 million. The RCA includes a $20.0 million letter of credit sub-facility and a $10.5 million swing loan sub-facility for short-term borrowings. As of November 30, 2015, the Company had $16.7 million of letters of credit outstanding under the sub-facility. We classify borrowings under the RCA as current due to the nature of the agreement. Pursuant to the Term Loans, in the event of a voluntary or mandatory prepayment or acceleration of the Term Loans, the Company shall be required to pay principal and a prepayment premium equal to:
Commencing May 31, 2015, as of the end of each fiscal quarter, the Company will be required to have trailing twelve-month EBITDA in an amount not less than certain amounts specified in the Credit Facilities. As of November 30, 2015 the Company was required to have a minimum trailing twelve-month EBITDA, as defined in the credit agreement, of at least $60.5 million. Commencing with the fiscal quarter ending May 31, 2017, the Company will be required under the Credit Facilities to maintain as of the end of each fiscal quarter a fixed charge coverage ratio of not less than 1.00 to 1.00 measured on a rolling four quarter basis. The Credit Facilities include affirmative and negative covenants that limit the ability of the Company and its subsidiaries to undertake certain actions, including, among other things, limitations on (i) the incurrence of indebtedness and liens, (ii) asset sales, (iii) dividends and other payments with respect to capital stock, (iv) acquisitions, investments and loans, (v) affiliate transactions, (vi) altering the business, (vii) prepaying indebtedness, (viii) making capital expenditures, and (ix) providing negative pledges to third parties. In addition, the Credit Facilities contain conditions to lending, representations and warranties and events of default, including, among other things: (i) payment defaults, (ii) cross-defaults to other material indebtedness, (iii) covenant defaults, (iv) certain events of bankruptcy, (v) the occurrence of a material adverse effect, (vi) material judgments, (vii) change in control, (viii) seizures of material property, (ix) involuntary interruptions of material operations, and (x) certain material events with respect to pension plans. As of November 30, 2015, the Company was in compliance with all of its covenant requirements. 13% Secured Notes due 2018 Interest on the Secured Notes is initially payable at 13.0% per annum, semi-annually in arrears on March 15 and September 15. The Company will make each interest payment to the holders of record of the Secured Notes as of the immediately preceding March 1 and September 1. The Company used the proceeds from this offering to repay certain existing indebtedness and to pay related fees and expenses. The Secured Notes will mature on March 15, 2018. With respect to any interest payment date on or prior to March 15, 2017, the Company may, at its option, elect (an “Interest Form Election”) to pay interest on the Secured Notes (i) entirely in cash or (ii) subject to any Interest Rate Increase (as defined below), initially at the rate of 4% per annum in cash and 9% per annum by increasing the outstanding principal amount of the Secured Notes or by issuing additional paid in kind notes under the indenture on the same terms as the Secured Notes (“PIK Interest Portion” or “PIK Interest”); provided that in the absence of an Interest Form Election, interest on the Secured Notes will be payable as PIK Interest. On March 4, 2015, the Company notified the trustee of its Secured Notes that it had elected to pay interest on the Secured Notes for the 12-month period commencing March 15, 2015 in the form of 7% cash payment and 6% payment in kind, which represents $23.8 million and $20.4 million of interest, respectively, for the same 12-month period. At November 30, 2015, the inception-to-date PIK interest was $84.7 million ($80.4 million was recorded as an increase to the Secured Notes and $4.3 million was recorded as a long-term obligation in other liabilities). With respect to any interest payment payable after March 15, 2017, interest will be payable solely in cash. At any time prior to March 15, 2015, the Company was permitted to redeem, at its option, up to 35% of the Secured Notes with the net cash proceeds from certain public equity offerings at a redemption price equal to 113.0% of the principal amount outstanding, plus accrued and unpaid interest. The Company was also permitted to redeem some or all of the Secured Notes at any time prior to March 15, 2015 at a redemption price equal to 100.0% of the principal amount of the outstanding Secured Notes, plus accrued and unpaid interest, plus a “make-whole” premium. On and after March 15, 2015, the Secured Notes are redeemable, in whole or in part, at the redemption prices specified as follows:
In addition, the Company may be required to make an offer to purchase the Secured Notes upon the sale of certain assets or upon a change of control. The Company will be required to redeem certain portions of the Secured Notes for tax purposes on September 15, 2017 and each accrual period thereafter. The Secured Notes are guaranteed on a full and unconditional, and joint and several basis, by certain of the Company’s existing and future domestic subsidiaries (the “Guarantors” as described in Note 11, “Condensed Issuer, Guarantor and Non-Guarantor Financial Information”). The Secured Notes and related guarantees are senior secured obligations of the Company and the Guarantors that rank equally in right of payment with all existing and future senior debt of the Company and the Guarantors, including the Notes and Credit Facilities, and senior to all existing and future subordinated debt of the Company and Guarantors. The Secured Notes and related guarantees are secured, subject to certain permitted liens and except for certain excluded assets, by first-priority liens on substantially all of the Company’s and Guarantors’ personal property and certain owned and leased real property and second-priority liens on certain real property and substantially all of the Company’s and Guarantors’ accounts receivable, inventory and deposit accounts and related assets and proceeds of the foregoing that secure the RCA on a first-priority basis. The indenture for the Secured Notes contains restrictive covenants that limit the Company’s ability and the ability of its subsidiaries that are restricted under the indenture to, among other things, incur additional debt, pay dividends or make distributions, repurchase capital stock or make other restricted payments, make certain investments, incur liens, merge, amalgamate or consolidate, sell, transfer, lease or otherwise dispose of all or substantially all assets and enter into transactions with affiliates. The indenture governing the Secured Notes required that the Company file a registration statement with the SEC and exchange the Secured Notes for new Secured Notes having terms substantially identical in all material respects to the Secured Notes by March 10, 2013. On June 13, 2013, the Company filed a Registration Statement on Form S-4 and concluded the exchange offer on October 30, 2013. The Company incurred $0.8 million of penalty interest through October 30, 2013. 11% Notes Due 2018 In August 2010, the Company sold $250.0 million aggregate principal amount of the Notes. Interest on the Notes is payable semi-annually in arrears on March 1 and September 1 of each year. The proceeds from the issuance of Notes were used to pay down debt. In connection with the issuance of the Notes, the Company incurred costs of approximately $8.3 million which were deferred and are being amortized on the effective interest method through the 2018 maturity date. On or after September 1, 2014, the Company was permitted to redeem all or a part of the Notes at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest if redeemed during the 12-month period beginning on September 1 of the years indicated below:
If the Company experiences a change of control, as outlined in the indenture governing the Notes, the Company may be required to offer to purchase the Notes at a purchase price equal to 101.0% of the principal amount, plus accrued interest. The Notes are guaranteed on a full and unconditional, and joint and several, basis by certain of the Company’s existing and future domestic subsidiaries (the “Guarantors” as described in Note 11, “Condensed Issuer, Guarantor and Non-Guarantor Financial Information”). The indenture governing the Notes contains affirmative and negative covenants that, among other things, limit the Company’s and its subsidiaries’ ability to incur additional debt, make restricted payments, dividends or other payments from subsidiaries to the Company, create liens, engage in the sale or transfer of assets and engage in transactions with affiliates. The Company is not required to maintain any affirmative financial ratios or covenants under the indenture governing the Notes. The indenture governing the Notes required that the Company file a registration statement with the SEC and exchange the Notes for new Notes having terms substantially identical in all material respects to the Notes. The Company filed a Registration Statement on Form S-4 with the SEC for the Notes on August 29, 2011. The registration statement became effective on September 13, 2011, and the Company concluded the exchange offer on October 12, 2011. Other Obligations The Company has various notes, mortgages, leases and other financing arrangements resulting from the purchase of principally land, machinery and equipment. All loans provide for at least annual payments and are principally secured by the land and equipment acquired. Capital lease arrangements typically provide for monthly payments, some of which include residual value guarantees if the Company were to terminate the arrangement during certain specified periods of time for each underlying asset under lease. The Company incurred $5.2 million of new obligations under various financing arrangements related to equipment, in the nine months ended November 30, 2015. |
Income Taxes |
9 Months Ended |
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Nov. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | ncome Taxes The income tax provisions for all periods consist of federal and state taxes that are based on the estimated effective tax rates applicable for the full years ending February 29, 2016 and February 28, 2015, after giving effect to items specifically related to the interim periods. The effective income tax rates for the three months ended November 30, 2015 and 2014 were 6.4% and 3.6%, respectively, resulting in tax expense of $0.8 million and tax benefit of $0.1 million, respectively. The effective income tax rates for the nine months ended November 30, 2015 and 2014 were 5.6% and 7.1%, respectively, resulting in tax expense of $1.3 million and tax benefit of $1.4 million, respectively. The principal factor affecting the comparability of the effective income tax rates for the respective periods is the Company’s assessment of the realizability of the current year projected income tax loss. The Company recorded a valuation allowance on the portion of the current year federal and state income tax losses that it believes are not more likely than not to be realized. The Company’s determination of its valuation allowance considers the impact of utilization of alternative minimum tax net operating loss and alternative minimum tax credit carryforwards. Cash paid for income taxes was immaterial for the three and nine months ended November 30, 2015 and 2014, primarily as a result of net operating losses. |
Retirement and Benefit Programs |
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Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement and Benefit Programs | Retirement and Benefit Programs Substantially all employees are covered by a defined contribution plan, a defined benefit plan, a collectively bargained multiemployer plan, or a noncontributory profit sharing plan. The expense associated with these programs is included within Cost of revenue and Selling, administrative and general expenses in the amounts of $1.9 million and $0.1 million, respectively, for the three months ended November 30, 2015, and $1.8 million and $0.2 million, respectively for the three months ended November 30, 2014. The expense associated with these programs is included within Cost of revenue and Selling, administrative and general expenses in the amounts of $4.8 million and $0.3 million, respectively, for the nine months ended November 30, 2015, and $4.8 million and $0.5 million, respectively for the nine months ended November 30, 2014. The Company has two defined benefit pension plans covering certain union employees covered by labor union contracts. The benefits are based on years of service. Actuarial gains and losses are generally amortized over the average remaining service life of the Company’s active employees. Net periodic pension expense recognized was as follows:
The Company made contributions to the defined benefit pension plans of approximately $0.2 million during the nine months ended November 30, 2015 and November 30, 2014, and expects to make additional contributions of approximately $0.1 million in the remainder of fiscal year 2016. |
Other Noncurrent Liabilities |
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Other Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Noncurrent Liabilities | Other Noncurrent Liabilities The Company's other noncurrent liabilities consist of:
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Commitments and Contingencies |
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Nov. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company has commitments, lawsuits, claims and contingent liabilities. The ultimate disposition of these matters is not expected to have a material adverse effect on the Company’s consolidated financial position, statement of comprehensive loss or liquidity. The Company maintains a self-insurance program for workers’ compensation (Pennsylvania employees) coverage, which is administered by a third party management company. The Company’s self-insurance retention is limited to $1.0 million per claim with the excess covered by workers’ compensation excess liability insurance. The Company is required to maintain a $2.4 million surety bond with the Commonwealth of Pennsylvania. Self-insurance costs are accrued based upon the aggregate of the liability for reported claims and an estimated liability for claims incurred but not reported. The Company also maintains four self-insurance programs for health coverage with losses limited to $0.3 million per member per year. Additionally, the Company is required to and does provide a letter of credit in the amount of $0.1 million to guarantee payment of the deductible portion of its liability coverage which existed prior to January 1, 2008. The Company maintains a captive insurance company, Rock Solid Insurance Company (“Rock Solid”), for workers’ compensation (non-Pennsylvania employees), general liability, auto, health, and property coverage. Rock Solid is required to maintain a Collateral Trust Agreement with an insurer for the deductible portion of its liability coverage. The total amount of collateral provided under this arrangement is recorded as part of restricted cash in the amount of $15.5 million as of November 30, 2015 and February 28, 2015 in our Condensed Consolidated Balance Sheets. Reserves for retained losses within Rock Solid, which are recorded in accrued liabilities in our Condensed Consolidated Balance Sheets, were approximately $18.9 million and $15.5 million as of November 30, 2015 and February 28, 2015, respectively. Other accrued insurance amounts of $10.0 million and $9.1 million as of November 30, 2015 and February 28, 2015, respectively, relate to exposures for periods prior to the inception of the captive and are covered by pre-existing insurance policies. Included in Other noncurrent assets is approximately $6.7 million as of November 30, 2015 for recoverable amounts from insurance companies for claims in excess of deductibility. Liabilities associated with amounts that are payable by insurance companies of approximately $6.7 million were recorded in other noncurrent liabilities in our Condensed Consolidated Balance Sheets as of November 30, 2015 and February 28, 2015. On December 15, 2014, the Company entered into an arrangement to lease its precast/prestressed structural concrete operations in Roaring Spring, PA for a term of seven years to an entity controlled by a member of the Company's Board of Directors and stockholder, James W. Van Buren, who is the principal of MacInnis Group, LLC. |
Business Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Business Segments The Company reports information about its operating segments using the “management approach,” which is based on the way management organizes and reports the segments within the organization for making operating decisions and assessing performance to the chief operating decision maker. The Company’s three reportable segments are: (i) construction materials; (ii) heavy/highway construction; and (iii) traffic safety services and equipment. Almost all activity of the Company is domestic. Segment information includes both inter-segment and certain intra-segment activities. A description of the services and product offerings within each of the Company’s segments is provided below. The Company reviews earnings of the segments principally at the operating profit level and accounts for inter-segment and certain intra-segment sales at prices that range from negotiated rates to those that approximate fair market value. Segment operating profit consists of revenue less operating costs and expenses. Corporate and unallocated costs include those administrative and financial costs which are not allocated to segment operations and are excluded from segment operating profit. These costs include corporate administrative functions, unallocated corporate functions and other business line administrative functions. The following is a summary of certain financial data for the Company’s operating segments:
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Supplemental Disclosures of Cash Flow Information (Notes) |
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Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information The following table shows the supplemental information related to our cash flows for the nine months ended:
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Condensed Issuer, Guarantor and Non Guarantor Financial Information |
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Condensed Issuer, Guarantor and Non Guarantor Financial Information | Condensed Issuer, Guarantor and Non Guarantor Financial Information The Company’s Secured Notes and Notes are guaranteed by certain subsidiaries. Except for Rock Solid, NESL, II LLC, and Kettle Creek Partners GP, LLC, all existing consolidated subsidiaries of the Company are 100% owned and provide a joint and several, full and unconditional guarantee of the securities. These entities include Gateway Trade Center Inc., EII Transport Inc., Protections Services Inc., Work Area Protection Corp., SCI Products Inc., ASTI Transportation Systems, Inc., and Precision Solar Controls Inc. (“Guarantor Subsidiaries”). There are no significant restrictions on the parent Company’s ability to obtain funds from any of the Guarantor Subsidiaries in the form of a dividend or loan. Additionally, there are no significant restrictions on a Guarantor Subsidiary’s ability to obtain funds from the parent Company or its direct or indirect subsidiaries. Certain other wholly owned subsidiaries and consolidated partially owned partnerships do not guarantee the Secured Notes or the Notes. These entities include Rock Solid, South Woodbury, L.P., NESL, II LLC, Kettle Creek Partners L.P., and Kettle Creek Partners GP, LLC (“Non Guarantors”). The following condensed consolidating balance sheets, Statements of comprehensive income (loss) and Statements of cash flows are provided for the Company, all Guarantor Subsidiaries and Non Guarantors. The information has been presented as if the parent Company accounted for its ownership of the Guarantor Subsidiaries and Non Guarantors using the equity method of accounting. Condensed Consolidating Balance Sheet at November 30, 2015
Condensed Consolidating Balance Sheet at February 28, 2015
Condensed Consolidating Statement of Comprehensive Income (Loss) for the three months ended November 30, 2015
Condensed Consolidating Statement of Comprehensive Income (Loss) for the three months ended November 30, 2014
Condensed Consolidating Statement of Comprehensive Income (Loss) for the nine months ended November 30, 2015
Condensed Consolidating Statement of Comprehensive Income (Loss) for the nine months ended November 30, 2014
Condensed Consolidating Statement of Cash Flows for the nine months ended November 30, 2015
Condensed Consolidating Statement of Cash Flows for the nine months ended November 30, 2014
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Nature of Operations and Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Accounting | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements and notes included in this report have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly owned subsidiary companies, and their wholly owned subsidiary companies, and entities where the Company has a controlling equity interest. All adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in the unaudited Condensed Consolidated Financial Statements. The unaudited Condensed Consolidated Financial Statements do not include all of the information or disclosures required for a complete presentation in accordance with GAAP. The year-end condensed balance sheet data at February 28, 2015 was derived from audited financial statements, but does not include all disclosures required by GAAP. Accordingly, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2015 filed with the Securities and Exchange Commission (“SEC”) on May 18, 2015. The results for interim periods are not necessarily indicative of the results for the full fiscal year ending February 29, 2016 ("fiscal year 2016"). |
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Related Party Transactions | Related Party Transactions The Company has certain related party transactions, including: (i) an arrangement to lease its precast/prestressed structural concrete operations in Roaring Spring, PA to an entity controlled by a member of the Company's Board of Directors and stockholder; (ii) investments in Means to Go, LLC, in which the Company has an ownership interest of 50% or less, and an aircraft lease agreement with Means to Go, LLC; (iii) South Woodbury, L.P. owns an office building in Roaring Spring, PA and an office building that is being used as the Company's corporate headquarters in New Enterprise, PA; and (iv) payments of consulting fees to Larry R. Webber, a director of the Company, per a management consulting agreement. |
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Principles of Consolidation | Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries and entities where the Company has a controlling equity interest. All material intercompany balances and transactions have been eliminated in consolidation. |
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Reclassifications | Reclassifications Certain items previously reported in prior period financial statement captions have been conformed to agree with the current presentation. The expenses associated with certain benefit programs previously disclosed within the Pension and profit sharing caption have been reclassified to the Cost of revenue and to the Selling, administrative and general captions in the Condensed Consolidated Statements of Comprehensive Income (Loss) in the amounts of $1.8 million and $0.2 million, respectively for the three months ended November 30, 2014 and $4.8 million and $0.5 million, respectively, for the nine months ended November 30, 2014. The reclassification had no effect on Operating income, Comprehensive income (loss) within the Condensed Consolidated Statements of Comprehensive Income (Loss), the Condensed Consolidated Statement of Cash Flows, or the Condensed Consolidated Balance Sheets. |
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Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash balances were restricted in certain consolidated subsidiaries for insurance requirements as well as collateral on outstanding letters of credit or rentals. The Company uses a cash pooling arrangement with a single financial institution with specific provisions for the right to offset positive and negative cash balances. In addition, the Company has agreed to provide cash dominion for all accounts associated with this arrangement. Accordingly, the Company classifies net aggregate cash overdraft positions as other obligations within the current maturities of long-term debt, as applicable. |
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Accounts Receivable | Accounts Receivable Trade accounts receivable, less allowance for doubtful accounts, are recorded at the invoiced amount plus service charges related to past due accounts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable, including service charges. The Company determines the allowance based on historical write-off experience, specific identification based on a review of individual past due balances and their composition, and the nature of the customer. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
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Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is determined using either first-in, first-out (“FIFO”) or weighted average method based on the applicable category of inventories. |
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Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost. Assets under capital leases are stated at the lesser of the present value of minimum lease payments or the fair value of the leased item. Provision for depreciation is generally computed over estimated service lives by the straight-line method. |
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Assets Held for Sale | Assets Held for Sale The Company classifies assets as held for sale when all the following criteria are met: (i) management, having the authority to approve the action, commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition; (iii) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; (iv) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year, with a few exceptions; and (v) the asset is being actively marketed for sale at a price that is reasonable, in relation to its current fair value. During the nine months ended November 30, 2015, the Company finalized its sale of certain properties previously recorded in Assets Held for Sale at February 28, 2015 for $7.1 million and the assumption of $1.1 million in liabilities. The Company recorded a gain of approximately $3.2 million and recorded additional impairment of approximately $0.2 million on these sales in the nine months ended November 30, 2015. Additionally during the nine months ended November 30, 2015, the Company completed the sale of other assets for $9.9 million in cash, $1.0 million of deferred purchase price, and the assumption of $0.3 million of liabilities. Goodwill and Other intangible assets of $6.3 million were allocated on the sale of these business operations. During the nine months ended November 30, 2015, the Company classified an additional $3.0 million in assets as held for sale. No additional impairments were recorded. During the three months ended November 30, 2015, the Company reclassified $6.4 million of assets held for sale to assets held for use. There was no gain or loss recorded on the transfer. The Company's assets held for sale consisted of the following:
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Restructuring | Restructuring The Company initiated, during fiscal year 2014, and substantially concluded in fiscal year 2015, a cost savings and operational efficiency plan (the “Plan”). The Plan focused on headcount reductions, operational efficiencies, administrative savings, and a management realignment. The following table presents changes to Accrued restructuring, included in Accrued liabilities on the Condensed Consolidated Financial Statements:
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Use of Estimates | Use of Estimates The preparation of the Condensed Consolidated Financial Statements requires management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the carrying amount of property, plant and equipment; valuation of receivables, inventories, goodwill and other intangible assets; recognition of revenue and loss contract reserves under the percentage-of-completion method; assets and obligations related to employee benefit plans; asset retirement obligations; income tax valuation; and self-insurance reserves. Actual results could differ from those estimates and those differences could be material. |
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Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill is tested for impairment on an annual basis or more frequently whenever events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The impairment test for goodwill is a two-step process. Under the first step, the fair value of the reporting unit is compared with its carrying value. If the fair value of the reporting unit is less than its carrying value, an indication of impairment exists and the reporting unit must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. If the fair value of the reporting unit exceeds its carrying value under the first step, step two does not need to be performed. Our reporting units were determined based on our organizational structure, considering the level at which discrete financial information for businesses is available and regularly reviewed. The Company has three operating segments, which is the basis for determining its reporting units, organized around its three lines of business: (i) construction materials; (ii) heavy/highway construction; and (iii) traffic safety services and equipment. Construction materials include three reporting units within the operating segment based on geographic location. The operating segment of traffic safety services and equipment consists of one reporting unit within the segment based upon the similar economic characteristics of its operations. Our annual goodwill impairment analysis takes place as of fiscal year end. Management did not note any impairment indicators during the nine months ended November 30, 2015. The estimated fair value of each of the reporting units was in excess of its carrying value, even after conducting various sensitivity analysis on key assumptions, such that no adjustment to the carrying values of goodwill was required as of February 28, 2015, unless events or circumstances indicate that it is more likely than not that the fair value of a reporting unit has been reduced below its carrying value. The inputs used within the fair value measurements were categorized within Level 3 of the fair value hierarchy. During the nine months ended November 30, 2015, the Company allocated $5.6 million of goodwill to the sale of certain assets. Other Intangible Assets Other intangible assets consist of technology, customer relationships and trademarks acquired in previous acquisitions. The technology, customer relationships and trademarks are amortized over a straight-line basis. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. During the nine months ended November 30, 2015, the Company allocated $0.7 million of other intangibles to the sale of certain assets. |
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Revenue Recognition | Revenue Recognition The Company recognizes revenue on construction contracts under the percentage-of-completion method of accounting, as measured by the cost incurred to date over estimated total cost. Our construction contracts are primarily fixed-price contracts. The typical contract life cycle for these projects can be up to two to four years in duration. Changes in job performance, job conditions, estimated profitability and final contract settlements may result in revisions to revenues and costs. Revenue from contract change orders is recognized when the contract owner has agreed to the change order with the customer and the related costs are incurred. We do not recognize revenue on a basis of contract claims. Provisions for estimated losses on uncompleted contracts are made for the full amount of estimated loss in the period in which evidence indicates that the estimated total cost of a contract exceeds its estimated total revenue and are recorded as an additional cost (rather than as a reduction of revenue). Contract costs include all direct material, labor, subcontract and other costs and those indirect costs related to contract performance, such as indirect salaries and wages, equipment repairs and depreciation, insurance and payroll taxes. Administrative and general expenses are charged to expense as incurred. Costs and estimated earnings in excess of billings on uncompleted contracts represent the excess of contract revenue recognized to date over billings to date. Billings in excess of costs and estimated earnings on uncompleted contracts represent the excess of billings to date over the amount of revenue recognized to date. As of November 30, 2015 and February 28, 2015, such amounts are included in accounts receivable (Note 1, “Nature of Operations and Summary of Significant Accounting Policies”) and accrued liabilities (Note 3, “Accrued Liabilities”), respectively, in the Condensed Consolidated Balance Sheets. The Company generally recognizes revenue on the sale of construction materials and concrete products, other than custom-built concrete products, when the customer takes title and assumes risk of loss. Typically, this occurs when products are shipped. The Company accounts for custom-built concrete products under the units-of-production method. Under this method, the revenue is recognized as the units are produced under firm contracts. The Company recognizes equipment rental revenue on a straight-line basis over the specific daily, weekly or monthly terms of the agreements. Revenues from the sale of equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer. Other revenue consists of sales of miscellaneous materials, scrap and other products that do not fall into our other primary lines of business. The Company generally recognizes revenue when the customer takes title and assumes risk of loss, the price is fixed or determinable and collection is reasonably assured. |
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Impairment of Definite-lived Long-Lived Assets | Impairment of Definite-Lived Long-Lived Assets Long-lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. The Company considers an asset group as the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. For our construction materials and heavy/highway construction operations, the lowest level of largely independent identifiable cash flows is at the regional level, which collectively serves a local market. Each region shares and allocates its material production, resources, equipment and business activity among the locations within the region in generating cash flows. We have realigned our current regional structure by combining Lancaster, Pennsylvania and Northeastern Pennsylvania into our Eastern Region, Central Pennsylvania, Chambersburg, Shippensburg and Gettysburg Pennsylvania into our Western Region, and Western New York into our North Region. The construction materials regions’ long-lived assets predominantly include limestone and sand acreage and crushing, prestressing equipment and manufacturing plants and the heavy/highway construction region’s long lived assets predominantly include contracting equipment and vehicles. The traffic safety services and equipment business includes two asset groups, distinguished between its retail sales and distribution as one asset group and its manufacturing and assembly as the second asset group. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount exceeds the fair value of the asset group. |
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Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes-ASU 2015-17 is being issued to align the presentation of deferred income tax assets and liabilities with International Financial Reporting Standards (IFRS). IAS 1, Presentation of Financial Statements, requires deferred tax assets and liabilities to be classified as noncurrent in a classified statement of financial position. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In September 2015, the FASB Issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments-ASU 2015-16 was issued to require an acquirer to recognize measurement-period adjustments to provisional amounts in the reporting period in which the adjustments are determined. Previously, measurement-period adjustments were retrospectively applied. As an alternative to restating the prior periods for the measurement-period adjustments, the ASU requires acquirers to present separately on the face of the earnings statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustments to the provisional amounts had been recognized as of the acquisition date. This ASU is to be applied prospectively to adjustments to provisional amounts that occur after December 15, 2015. Early adoption is permitted. While we are still evaluating the impact of ASU 2015-16, we do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In August 2015, the FASB issued ASU 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update). ASU 2015-15 was issued to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements given the lack of guidance on this topic in ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods with those fiscal years. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In August 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendments in this update defers the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is evaluating the impact of this standard on its Consolidated Financial Statements and is unlikely to early adopt this standard. In July 2015, the FASB issued ASU 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient. The amendments in all three parts of this Update are effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. An entity should apply the amendments in Parts I and II retrospectively for all financial statements presented. An entity should apply the amendments on Part III prospectively. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Effective for public business entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. The amendments in this Update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-04, Compensation - Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets. Effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. Early adoption of the amendments in this update are permitted. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2015 and for interim periods within fiscal years beginning after December 15, 2016. Early adoption of the amendments in this update are permitted for financial statements that have not been previously issued. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. Effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standards requires an entity's management to evaluate whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. Public entities are required to apply standards for annual reporting periods ending after December 15, 2016, and interim periods thereafter. Early application is permitted. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. |
Nature of Operations and Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | The Company’s total accounts receivable consists of the following:
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Schedule of Inventories | The Company’s total inventories consist of the following:
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Schedule of Property Plant and Equipment Components | The Company’s property, plant and equipment consist of the following:
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Schedule of Assets Held for Sale | The Company's assets held for sale consisted of the following:
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Schedule of Changes to Accrued Restructuring Costs | The following table presents changes to Accrued restructuring, included in Accrued liabilities on the Condensed Consolidated Financial Statements:
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Schedule of Other Noncurrent Assets | The Company’s Other noncurrent assets consist of the following:
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Accrued Liabilities (Tables) |
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Schedule of accrued liabilities | Accrued liabilities consist of the following:
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Long-Term Debt (Tables) |
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Schedule of long-term debt | The Company's long-term debt consists of the following:
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Term loan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule of percentages of principal amount at which Notes may be redeemed | Pursuant to the Term Loans, in the event of a voluntary or mandatory prepayment or acceleration of the Term Loans, the Company shall be required to pay principal and a prepayment premium equal to:
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Secured Notes due 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule of percentages of principal amount at which Notes may be redeemed | On and after March 15, 2015, the Secured Notes are redeemable, in whole or in part, at the redemption prices specified as follows:
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Notes due 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule of percentages of principal amount at which Notes may be redeemed |
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Retirement and Benefit Programs (Tables) |
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Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net periodic pension expense recognized | Net periodic pension expense recognized was as follows:
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Other Noncurrent Liabilities (Tables) |
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Other Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other noncurrent liabilities | The Company's other noncurrent liabilities consist of:
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Business Segments (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of certain financial data for the company's operating segments | The following is a summary of certain financial data for the Company’s operating segments:
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Supplemental Disclosures of Cash Flow Information (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Information Related to Cash Flows | The following table shows the supplemental information related to our cash flows for the nine months ended:
|
Condensed Issuer, Guarantor and Non Guarantor Financial Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating balance sheet | Condensed Consolidating Balance Sheet at November 30, 2015
Condensed Consolidating Balance Sheet at February 28, 2015
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating statements of comprehensive income (loss) | Condensed Consolidating Statement of Comprehensive Income (Loss) for the three months ended November 30, 2015
Condensed Consolidating Statement of Comprehensive Income (Loss) for the nine months ended November 30, 2014
Condensed Consolidating Statement of Comprehensive Income (Loss) for the nine months ended November 30, 2015
Condensed Consolidating Statement of Comprehensive Income (Loss) for the three months ended November 30, 2015
Condensed Consolidating Statement of Comprehensive Income (Loss) for the three months ended November 30, 2014
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Schedule of condensed consolidating statements of cash flows | Condensed Consolidating Statement of Cash Flows for the nine months ended November 30, 2015
Condensed Consolidating Statement of Cash Flows for the nine months ended November 30, 2014
|
Nature of Operations and Summary of Significant Accounting Policies (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Nov. 30, 2015
USD ($)
|
Nov. 30, 2014
USD ($)
|
Nov. 30, 2015
USD ($)
segment
|
Nov. 30, 2014
USD ($)
|
Feb. 28, 2015
USD ($)
|
[1] | |||
Long Lived Assets Held-for-sale [Line Items] | ||||||||
Impaired Intangible Asset, Facts and Circumstances Leading to Impairment | $ 10 | $ 226 | $ 193 | $ 5,249 | ||||
Number of reportable segments | segment | 3 | |||||||
Defined Benefit Plan, Other Costs | 1,900 | 1,800 | $ 4,800 | 4,800 | ||||
Defined Contribution Plan, Administrative Expenses | 100 | 200 | 300 | 500 | ||||
Depreciation | 9,100 | $ 9,900 | 27,200 | $ 30,100 | ||||
Disposal Group, Including Discontinued Operation, Consideration | 3,000 | 3,000 | ||||||
Liabilities | 855,134 | 855,134 | $ 814,328 | |||||
Goodwill | 81,492 | 81,492 | $ 87,132 | |||||
Supplemental Deferred Purchase Price | 1,000 | |||||||
Goodwill allocated to the sale of certain assets | 5,600 | 5,600 | ||||||
Other intangibles allocated to the sale of certain assets | 700 | 700 | ||||||
Sheshequin and Towanda Locations [Member] | ||||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||||
Impaired Intangible Asset, Facts and Circumstances Leading to Impairment | 200 | |||||||
Disposal Group, Including Discontinued Operation, Consideration | 7,100 | 7,100 | ||||||
Liabilities | 1,100 | 1,100 | ||||||
Gain (Loss) on Sale of Project | 3,200 | |||||||
Naginey [Member] | ||||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||||
Liabilities | 300 | 300 | ||||||
Goodwill | 6,300 | 6,300 | ||||||
Gain (Loss) on Sale of Project | 9,900 | |||||||
Gateway [Member] | ||||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 6,400 | $ 6,400 | ||||||
Minimum [Member] | ||||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||||
Construction Contracts, Contract Life | 2 years | |||||||
Maximum [Member] | ||||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||||
Construction Contracts, Contract Life | 4 years | |||||||
|
Nature of Operations and Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Feb. 28, 2015 |
|||
---|---|---|---|---|---|
Accounting Policies [Abstract] | |||||
Costs and estimated earnings in excess of billings | $ 25,481 | $ 7,392 | |||
Trade | 88,614 | 39,792 | |||
Retainages | 7,246 | 7,281 | |||
Accounts receivable, gross | 121,341 | 54,465 | |||
Allowance for doubtful accounts | (3,357) | (4,564) | |||
Accounts receivable, net | $ 117,984 | $ 49,901 | [1] | ||
|
Nature of Operations and Summary of Significant Accounting Policies (Details 3) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Feb. 28, 2015 |
|||
---|---|---|---|---|---|
Inventory [Line Items] | |||||
Inventories | $ 108,484 | $ 102,206 | [1] | ||
Crushed stone, agricultural lime and sand | |||||
Inventory [Line Items] | |||||
Inventories | 74,086 | 70,112 | |||
Safety equipment | |||||
Inventory [Line Items] | |||||
Inventories | 16,111 | 14,187 | |||
Parts, tires and supplies | |||||
Inventory [Line Items] | |||||
Inventories | 6,980 | 7,753 | |||
Raw materials | |||||
Inventory [Line Items] | |||||
Inventories | 9,190 | 7,980 | |||
Building materials | |||||
Inventory [Line Items] | |||||
Inventories | 1,203 | 1,066 | |||
Other | |||||
Inventory [Line Items] | |||||
Inventories | $ 914 | $ 1,108 | |||
|
Nature of Operations and Summary of Significant Accounting Policies (Details 4) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Feb. 28, 2015 |
|||
---|---|---|---|---|---|
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | $ 861,318 | $ 850,880 | |||
Less: Accumulated depreciation and depletion | (560,388) | (540,606) | |||
Property, Plant and Equipment, Net | 300,930 | 310,274 | [1] | ||
Limestone and sand acreage | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 144,963 | 146,293 | |||
Land, buildings and building improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 84,305 | 87,097 | |||
Crushing, prestressing and manufacturing plants | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 306,414 | 305,923 | |||
Contracting equipment vehicles and other | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 320,819 | 307,644 | |||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | $ 4,817 | $ 3,923 | |||
|
Nature of Operations and Summary of Significant Accounting Policies (Details 5) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Feb. 28, 2015 |
|||
---|---|---|---|---|---|
Accounting Policies [Abstract] | |||||
Goodwill | $ 81,492 | $ 87,132 | [1] | ||
Inventory | 0 | 961 | |||
PP&E, net of impairment | 6,441 | 7,556 | |||
Assets held for sale | $ 6,441 | $ 8,517 | [1] | ||
|
Nature of Operations and Summary of Significant Accounting Policies (Details 6) $ in Thousands |
9 Months Ended |
---|---|
Nov. 30, 2015
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Balance at February 28, 2015 | $ 1,461 |
Restructuring charges incurred | 0 |
Payments on or reductions of accrued restructuring charges | 1,322 |
Balance at November 30, 2015 | $ 139 |
Nature of Operations and Summary of Significant Accounting Policies (Details 7) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Feb. 28, 2015 |
|||
---|---|---|---|---|---|
Accounting Policies [Abstract] | |||||
Deferred financing fees (less current portion of $2,648 and $2,905, respectively) | $ 7,916 | $ 10,314 | |||
Capitalized software (net of accumulated amortization of $3,368 and $3,364, respectively) | 6,891 | 7,553 | |||
Cash surrender value of life insurance (net of loans of $3,035 and $3,035, respectively) | 1,243 | 1,249 | |||
Deferred stripping costs | 5,017 | 4,514 | |||
Other | 8,654 | 7,792 | |||
Other noncurrent assets | 29,721 | 31,422 | [1] | ||
Current portion of deferred finance fee | 2,394 | 2,905 | |||
Capitalized software - accumulated amortization | 3,909 | 3,364 | |||
Loans outstanding on cash surrender value of life insurance | $ 3,035 | $ 3,035 | |||
|
Risks and Uncertainties (Details) - USD ($) |
Nov. 30, 2015 |
Aug. 31, 2010 |
---|---|---|
Notes due 2018 | ||
Debt Instrument [Line Items] | ||
Debt | $ 250,000,000.0 | $ 250,000,000.0 |
Stated interest rate (as a percent) | 11.00% | |
Secured Notes due 2018 | ||
Debt Instrument [Line Items] | ||
Debt | $ 265,000,000 | |
Stated interest rate (as a percent) | 13.00% |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Nov. 30, 2015 |
Feb. 28, 2015 |
||||
Payables and Accruals [Abstract] | |||||
Loss on Contracts | $ 700 | $ 1,500 | |||
Accrued Liabilities | |||||
Insurance | 28,933 | 24,565 | |||
Interest | 12,701 | 23,408 | |||
Payroll and vacation | 8,319 | 5,805 | |||
Withholding taxes | 489 | 858 | |||
Billings in excess of costs and estimated earnings on uncompleted contracts | 3,214 | 3,082 | |||
Contract expenses | 3,536 | 2,676 | |||
Other | 6,276 | 4,486 | |||
Total accrued liabilities | $ 63,468 | $ 64,880 | [1] | ||
|
Long-Term Debt (Details) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Feb. 28, 2015 |
|||
---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||
Total debt | $ 676,904 | $ 658,795 | |||
Less: Current portion | (3,308) | (8,528) | [1] | ||
Total long-term debt | 673,596 | 650,267 | [1] | ||
RCA | |||||
Debt Instrument [Line Items] | |||||
ABL facility, borrowing available | $ 25,800 | 27,300 | |||
Stated interest rate (as a percent) | 6.25% | ||||
Total debt | $ 0 | 5,873 | |||
Notes due 2018 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 11.00% | ||||
Total debt | $ 250,000 | 250,000 | |||
Secured Notes due 2018 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 13.00% | ||||
Total debt | $ 345,353 | 323,956 | |||
Term loan | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 8.00% | ||||
Total debt | $ 70,000 | 70,000 | |||
Land, equipment and other obligations | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 11,551 | $ 8,966 | |||
|
Long-Term Debt (Details 2) |
9 Months Ended | |||
---|---|---|---|---|
Feb. 28, 2014
USD ($)
|
Feb. 12, 2014
USD ($)
availability_block_reduction
|
Nov. 30, 2015
USD ($)
|
Nov. 30, 2014
USD ($)
|
|
Debt Instrument [Line Items] | ||||
Non-cash payment-in-kind interest accretion | $ 15,321,000 | $ 16,683,000 | ||
Credit Facilities | ||||
Debt Instrument [Line Items] | ||||
Fixed charge coverage ratio | 1.00 | |||
RCA | ||||
Debt Instrument [Line Items] | ||||
Commitment fee | 0.50% | |||
Weighted average interest rate | 6.49% | |||
Fixed charge coverage ratio | 1.00 | |||
Maximum number off reductions to availability block | availability_block_reduction | 2 | |||
RCA | Letter of credit sub-facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 20,000,000.0 | |||
Letters of credit outstanding | $ 16,700,000 | |||
RCA | Swing line sub-facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 10,500,000.0 | |||
RCA | FCCR Requirement Not Achieved | ||||
Debt Instrument [Line Items] | ||||
Availability block | 20,000,000.0 | |||
RCA | FCCR Requirement Achieved Once in Rolling Four Quarter Period | ||||
Debt Instrument [Line Items] | ||||
Availability block | 10,000,000.0 | |||
RCA | FCCR Requirement Achieved Twice Or More in Rolling Four Quarter Period | ||||
Debt Instrument [Line Items] | ||||
Availability block | $ 0 | |||
RCA | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Margin added to variable interest rate basis (as a percent) | 4.00% | |||
Non-cash payment-in-kind interest accretion | $ 0.010 | |||
RCA | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Margin added to variable interest rate basis (as a percent) | 3.00% | |||
Term loan | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 8.00% | |||
Term loan | Prepayment occurs on or prior to 5/12/2015 | ||||
Debt Instrument [Line Items] | ||||
Prepayment price (as a percentage) | 103.00% | |||
Term loan | Prepayment between 5/13/2015 and 2/12/2016 | ||||
Debt Instrument [Line Items] | ||||
Prepayment price (as a percentage) | 102.00% | |||
Term loan | Prepayment occurs on 2/13/2016 and thereafter | ||||
Debt Instrument [Line Items] | ||||
Prepayment price (as a percentage) | 100.00% | |||
Term loan | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Margin added to variable interest rate basis (as a percent) | 7.00% | |||
Term loan | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Margin added to variable interest rate basis (as a percent) | 6.00% | |||
Floor [Member] | Term loan | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Margin added to variable interest rate basis (as a percent) | 1.00% |
Long-Term Debt (Details 3) - USD ($) $ in Millions |
5 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Mar. 15, 2015 |
Feb. 28, 2014 |
Oct. 30, 2013 |
Nov. 30, 2015 |
Mar. 15, 2015 |
Feb. 28, 2015 |
|
Debt Instrument [Line Items] | ||||||
Fair Value Inputs, Earnings before Interest, Taxes, Depreciation, and Amortization Multiple | 60,500,000 | |||||
Secured Notes due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 13.00% | |||||
Debt Instrument Cash Interest Rate | 4.00% | |||||
Debt Instrument Payment in Kind Interest Rate | 9.00% | |||||
Accrued cash interest | $ 23.8 | |||||
Increase in PIK interest during year | $ 20.4 | |||||
Accrued PIK interest | $ 84.7 | |||||
Debt Instrument Interest form Election Period | 12 months | |||||
Penalty interest incurred | $ 0.8 | |||||
Secured Notes due 2018 | Secured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Accrued PIK interest | 4.3 | |||||
Secured Notes due 2018 | Other Noncurrent Liabilities | ||||||
Debt Instrument [Line Items] | ||||||
Accrued PIK interest | $ 80.4 | |||||
Secured Notes due 2018 | Twelve-month period beginning March 15, 2014 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument Cash Interest Rate | 7.00% | |||||
Debt Instrument Payment in Kind Interest Rate | 6.00% | |||||
Secured Notes due 2018 | Prior to March 15, 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price as a percentage of principal amount, if using proceeds of equity offerings | 113.00% | |||||
Redemption price of debt instrument as a percentage of principal amount | 100.00% | |||||
Secured Notes due 2018 | Prior to March 15, 2015 | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of the principal amount that may be redeemed with proceeds from public equity offerings | 35.00% | |||||
Secured Notes due 2018 | Twelve-month period beginning March 15, 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price of debt instrument as a percentage of principal amount | 106.50% | |||||
Secured Notes due 2018 | Twelve-month period beginning March 15, 2016 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price of debt instrument as a percentage of principal amount | 103.25% | |||||
Secured Notes due 2018 | Twelve-month period beginning March 15, 2017 and thereafter | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price of debt instrument as a percentage of principal amount | 100.00% |
Long-Term Debt (Details 4) - Notes due 2018 - USD ($) |
9 Months Ended | |
---|---|---|
Aug. 31, 2010 |
Nov. 30, 2015 |
|
Debt Instrument [Line Items] | ||
Face amount of debt | $ 250,000,000.0 | $ 250,000,000.0 |
Unamortized debt issuance costs | $ 8,300,000 | |
Redemption price as a percentage of principal amount, as a result of change of control | 101.00% | |
Twelve-month period beginning September 1, 2014 | ||
Debt Instrument [Line Items] | ||
Redemption price of debt instrument as a percentage of principal amount | 105.50% | |
Twelve-month period beginning September 1, 2015 | ||
Debt Instrument [Line Items] | ||
Redemption price of debt instrument as a percentage of principal amount | 102.75% | |
Twelve-month period beginning September 1, 2016 and thereafter | ||
Debt Instrument [Line Items] | ||
Redemption price of debt instrument as a percentage of principal amount | 100.00% |
Long-Term Debt (Details 5) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Debt Disclosure [Abstract] | |||
Capital lease and other non-cash obligations incurred | $ 5,200 | $ 7,615 | $ 2,169 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 6.40% | 3.60% | 5.60% | 7.10% |
Income tax expense (benefit) | $ (840) | $ 56 | $ (1,263) | $ 1,398 |
Retirement and Benefit Programs (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2015
USD ($)
|
Nov. 30, 2014
USD ($)
|
Nov. 30, 2015
USD ($)
plan
|
Nov. 30, 2014
USD ($)
|
|
Compensation and Retirement Disclosure [Abstract] | ||||
Defined Benefit Plan, Other Costs | $ 1,900 | $ 1,800 | $ 4,800 | $ 4,800 |
Defined Benefit Plan, Other Costs | 100 | 200 | $ 300 | 500 |
Number of defined benefit plans | plan | 2 | |||
Net periodic benefit cost | ||||
Service cost | 78 | 86 | $ 234 | 258 |
Interest cost | 93 | 105 | 279 | 315 |
Expected return on plan assets | (155) | (150) | (465) | (451) |
Amortization of prior service cost | 13 | 14 | 39 | 43 |
Recognized net actuarial loss | 54 | 51 | 162 | 152 |
Total pension expense | $ 83 | $ 106 | 249 | $ 317 |
Employer contributions to defined benefit pension plans | 200 | |||
Expected additional contribution in the remainder of fiscal year 2016 | $ 100 |
Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Feb. 28, 2015 |
|||
---|---|---|---|---|---|
Other Noncurrent Liabilities | |||||
Reclamation costs | $ 19,642 | $ 18,835 | |||
Executive deferred compensation liability | 5,366 | 5,512 | |||
PIK accrued interest | 4,317 | 10,394 | |||
Other | 11,601 | 11,533 | |||
Total other noncurrent liabilities | $ 40,926 | $ 46,274 | [1] | ||
|
Commitments and Contingencies (Details) |
9 Months Ended | |
---|---|---|
Nov. 30, 2015
USD ($)
self-insurance_program
|
Feb. 28, 2015
USD ($)
|
|
Commitments and Contingencies Disclosure [Abstract] | ||
Self insurance retention per occurrence | $ 1,000,000.0 | |
Amount of surety bond to be maintained with the Commonwealth of Pennsylvania | $ 2,400,000.0 | |
Number of self-insurance programs maintained for health coverage | self-insurance_program | 4 | |
Maximum losses per employee under self-insurance health coverage programs | $ 300,000.0 | |
Letter of credit provided to guarantee payment of deductible portion of liability coverage which existed prior to January 1, 2008 | 100,000.0 | |
Other Commitments [Line Items] | ||
Self Insurance Reserve | 18,900,000 | $ 15,500,000 |
Insurance Claims | Other Noncurrent Liabilities | ||
Other Commitments [Line Items] | ||
Liability related to insurance settlement receivable | 6,700,000 | |
Rock Solid Insurance Company | ||
Other Commitments [Line Items] | ||
Collateral Amount Recorded as Part of Restricted Cash | 15,500,000 | 15,500,000 |
Exposures for periods prior to captive insurance policy | $ 10,000,000 | $ 9,100,000 |
Business Segments (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2015
USD ($)
|
Nov. 30, 2014
USD ($)
|
Nov. 30, 2015
USD ($)
segment
|
Nov. 30, 2014
USD ($)
|
|
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 3 | |||
Segment Reporting | ||||
Revenue | $ 202,029 | $ 209,661 | $ 589,300 | $ 597,658 |
Operating income (loss) | 34,319 | 19,258 | 85,890 | 41,937 |
Depreciation, depletion and amortization | 10,402 | 12,182 | 30,701 | 34,429 |
Construction materials | ||||
Segment Reporting | ||||
Revenue | 145,402 | 147,087 | 415,548 | 424,608 |
Operating income (loss) | 38,792 | 27,596 | 102,888 | 72,986 |
Depreciation, depletion and amortization | 7,047 | 8,524 | 20,570 | 23,253 |
Heavy/highway construction | ||||
Segment Reporting | ||||
Revenue | 83,169 | 91,457 | 241,649 | 237,179 |
Operating income (loss) | 3,317 | 8 | 10,308 | 4,897 |
Depreciation, depletion and amortization | 1,771 | 2,040 | 5,348 | 6,378 |
Traffic Safety Services and Equipment [Member] | ||||
Segment Reporting | ||||
Revenue | 25,841 | 22,911 | 77,339 | 73,732 |
Operating income (loss) | 2,525 | 1,814 | 7,341 | 5,518 |
Depreciation, depletion and amortization | 1,229 | 1,240 | 3,725 | 3,683 |
Segment totals | ||||
Segment Reporting | ||||
Revenue | 254,412 | 261,455 | 734,536 | 735,519 |
Eliminations | ||||
Segment Reporting | ||||
Revenue | (52,383) | (51,794) | (145,236) | (137,861) |
Corporate and unallocated | ||||
Segment Reporting | ||||
Operating income (loss) | (10,315) | (10,160) | (34,647) | (41,464) |
Depreciation, depletion and amortization | $ 355 | $ 378 | $ 1,058 | $ 1,115 |
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Supplemental Cash Flow Elements [Abstract] | |||
Capital lease and other non-cash obligations incurred | $ 5,200 | $ 7,615 | $ 2,169 |
Cash paid for interest, net of amounts capitalized | $ 55,698 | $ 51,113 |
Condensed Issuer, Guarantor and Non Guarantor Financial Information (Details) |
Nov. 30, 2015 |
---|---|
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |
Ownership interest in subsidiaries (as a percent) | 100.00% |
Condensed Issuer, Guarantor and Non Guarantor Financial Information (Details 2) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Feb. 28, 2015 |
Nov. 30, 2014 |
Feb. 28, 2014 |
|||
---|---|---|---|---|---|---|---|
Current assets | |||||||
Cash and cash equivalents | $ 13,867 | $ 13,293 | [1] | $ 2,336 | $ 23,892 | ||
Restricted cash | 25,468 | 17,177 | [1] | ||||
Accounts receivable, net | 117,984 | 49,901 | [1] | ||||
Inventories | 108,484 | 102,206 | [1] | ||||
Net investment in lease | 0 | 0 | |||||
Deferred income taxes | 2,630 | 2,630 | [1] | ||||
Other current assets | 7,575 | 8,885 | [1] | ||||
Assets held for sale | 6,441 | 8,517 | [1] | ||||
Total current assets | 282,449 | 202,609 | [1] | ||||
Property, plant and equipment, net | 300,930 | 310,274 | [1] | ||||
Goodwill | 81,492 | 87,132 | [1] | ||||
Other intangible assets, net | 17,590 | 18,933 | [1] | ||||
Investment in subsidiaries | 0 | 0 | |||||
Intercompany receivables | 0 | 0 | |||||
Other noncurrent assets | 29,721 | 31,422 | [1] | ||||
Total assets | 712,182 | 650,370 | [1] | ||||
Current liabilities | |||||||
Current maturities of long-term debt | 3,308 | 8,528 | [1] | ||||
Accounts payable - trade | 43,762 | 15,652 | [1] | ||||
Accrued liabilities | 63,468 | 64,880 | [1] | ||||
Total current liabilities | 110,538 | 89,060 | [1] | ||||
Intercompany payables | 0 | 0 | |||||
Long-term debt, less current maturities | 673,596 | 650,267 | [1] | ||||
Obligations under capital leases, less current maturities | 0 | 0 | |||||
Deferred income taxes | 30,074 | 28,727 | [1] | ||||
Other noncurrent liabilities | 40,926 | 46,274 | [1] | ||||
Total liabilities | 855,134 | 814,328 | [1] | ||||
(Deficit) equity | |||||||
New Enterprise Stone & Lime Co., Inc. (deficit) equity | (144,883) | (165,770) | [1] | ||||
Noncontrolling interest | 1,931 | 1,812 | [1] | ||||
Total deficit | (142,952) | (163,958) | [1] | ||||
Total liabilities and deficit | 712,182 | 650,370 | [1] | ||||
New Enterprise Stone & Lime Co., Inc. | |||||||
Current assets | |||||||
Cash and cash equivalents | 5,523 | 8,633 | (817) | 21,344 | |||
Restricted cash | 9,617 | 1,301 | |||||
Accounts receivable, net | 102,388 | 39,125 | |||||
Inventories | 92,417 | 87,995 | |||||
Net investment in lease | 0 | 0 | |||||
Deferred income taxes | 1,918 | 1,918 | |||||
Other current assets | 6,651 | 8,038 | |||||
Assets held for sale | 6,441 | 8,517 | |||||
Total current assets | 224,955 | 155,527 | |||||
Property, plant and equipment, net | 279,964 | 290,137 | |||||
Goodwill | 75,647 | 81,287 | |||||
Other intangible assets, net | 6,860 | 7,640 | |||||
Investment in subsidiaries | 94,445 | 85,531 | |||||
Intercompany receivables | (31,033) | 3,308 | |||||
Other noncurrent assets | 26,500 | 28,097 | |||||
Total assets | 677,338 | 651,527 | |||||
Current liabilities | |||||||
Current maturities of long-term debt | 4,090 | 8,955 | |||||
Accounts payable - trade | 38,109 | 8,510 | |||||
Accrued liabilities | 43,063 | 47,876 | |||||
Total current liabilities | 85,262 | 65,341 | |||||
Intercompany payables | 0 | 34,087 | |||||
Long-term debt, less current maturities | 669,406 | 645,228 | |||||
Obligations under capital leases, less current maturities | 4,730 | 5,810 | |||||
Deferred income taxes | 24,813 | 23,466 | |||||
Other noncurrent liabilities | 38,010 | 43,365 | |||||
Total liabilities | 822,221 | 817,297 | |||||
(Deficit) equity | |||||||
New Enterprise Stone & Lime Co., Inc. (deficit) equity | (144,883) | (165,770) | |||||
Noncontrolling interest | 0 | 0 | |||||
Total deficit | (144,883) | (165,770) | |||||
Total liabilities and deficit | 677,338 | 651,527 | |||||
Guarantor Subsidiaries | |||||||
Current assets | |||||||
Cash and cash equivalents | 388 | 60 | (489) | 0 | |||
Restricted cash | 61 | 88 | |||||
Accounts receivable, net | 15,590 | 10,762 | |||||
Inventories | 16,067 | 14,211 | |||||
Net investment in lease | 0 | 0 | |||||
Deferred income taxes | 712 | 712 | |||||
Other current assets | 909 | 836 | |||||
Assets held for sale | 0 | 0 | |||||
Total current assets | 33,727 | 26,669 | |||||
Property, plant and equipment, net | 20,966 | 20,137 | |||||
Goodwill | 5,845 | 5,845 | |||||
Other intangible assets, net | 10,730 | 11,293 | |||||
Investment in subsidiaries | 0 | 0 | |||||
Intercompany receivables | 31,067 | 29,169 | |||||
Other noncurrent assets | 873 | 977 | |||||
Total assets | 103,208 | 94,090 | |||||
Current liabilities | |||||||
Current maturities of long-term debt | 0 | 0 | |||||
Accounts payable - trade | 5,185 | 6,265 | |||||
Accrued liabilities | 1,466 | 1,508 | |||||
Total current liabilities | $ 6,651 | 7,773 | |||||
Intercompany payables | (1,098) | ||||||
Long-term debt, less current maturities | $ 0 | 0 | |||||
Obligations under capital leases, less current maturities | 0 | 0 | |||||
Deferred income taxes | 5,261 | 5,261 | |||||
Other noncurrent liabilities | 568 | 561 | |||||
Total liabilities | 12,480 | 12,497 | |||||
(Deficit) equity | |||||||
New Enterprise Stone & Lime Co., Inc. (deficit) equity | 90,728 | 81,593 | |||||
Noncontrolling interest | 0 | 0 | |||||
Total deficit | 90,728 | 81,593 | |||||
Total liabilities and deficit | 103,208 | 94,090 | |||||
Non Guarantors | |||||||
Current assets | |||||||
Cash and cash equivalents | 7,956 | 4,600 | 3,642 | 2,548 | |||
Restricted cash | 15,790 | 15,788 | |||||
Accounts receivable, net | 6 | 14 | |||||
Inventories | 0 | 0 | |||||
Net investment in lease | 1,678 | 1,198 | |||||
Deferred income taxes | 0 | 0 | |||||
Other current assets | 15 | 11 | |||||
Assets held for sale | 0 | 0 | |||||
Total current assets | 25,445 | 21,611 | |||||
Property, plant and equipment, net | 4,730 | 5,810 | |||||
Goodwill | 0 | 0 | |||||
Other intangible assets, net | 0 | 0 | |||||
Investment in subsidiaries | 0 | 0 | |||||
Intercompany receivables | 0 | (34) | |||||
Other noncurrent assets | 2,348 | 2,348 | |||||
Total assets | 32,523 | 29,735 | |||||
Current liabilities | |||||||
Current maturities of long-term debt | 896 | 771 | |||||
Accounts payable - trade | 468 | 331 | |||||
Accrued liabilities | 18,939 | 15,496 | |||||
Total current liabilities | 20,303 | 16,598 | |||||
Intercompany payables | 34 | 0 | |||||
Long-term debt, less current maturities | 4,190 | 5,039 | |||||
Obligations under capital leases, less current maturities | 0 | 0 | |||||
Deferred income taxes | 0 | 0 | |||||
Other noncurrent liabilities | 2,348 | 2,348 | |||||
Total liabilities | 26,875 | 23,985 | |||||
(Deficit) equity | |||||||
New Enterprise Stone & Lime Co., Inc. (deficit) equity | 3,717 | 3,938 | |||||
Noncontrolling interest | 1,931 | 1,812 | |||||
Total deficit | 5,648 | 5,750 | |||||
Total liabilities and deficit | 32,523 | 29,735 | |||||
Eliminations | |||||||
Current assets | |||||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |||
Restricted cash | 0 | 0 | |||||
Accounts receivable, net | 0 | 0 | |||||
Inventories | 0 | 0 | |||||
Net investment in lease | (1,678) | (1,198) | |||||
Deferred income taxes | 0 | 0 | |||||
Other current assets | 0 | 0 | |||||
Assets held for sale | 0 | 0 | |||||
Total current assets | (1,678) | (1,198) | |||||
Property, plant and equipment, net | (4,730) | (5,810) | |||||
Goodwill | 0 | 0 | |||||
Other intangible assets, net | 0 | 0 | |||||
Investment in subsidiaries | (94,445) | (85,531) | |||||
Intercompany receivables | (34) | (32,443) | |||||
Other noncurrent assets | 0 | 0 | |||||
Total assets | (100,887) | (124,982) | |||||
Current liabilities | |||||||
Current maturities of long-term debt | (1,678) | (1,198) | |||||
Accounts payable - trade | 0 | 546 | |||||
Accrued liabilities | 0 | 0 | |||||
Total current liabilities | (1,678) | (652) | |||||
Intercompany payables | (34) | (32,989) | |||||
Long-term debt, less current maturities | 0 | 0 | |||||
Obligations under capital leases, less current maturities | (4,730) | (5,810) | |||||
Deferred income taxes | 0 | 0 | |||||
Other noncurrent liabilities | 0 | 0 | |||||
Total liabilities | (6,442) | (39,451) | |||||
(Deficit) equity | |||||||
New Enterprise Stone & Lime Co., Inc. (deficit) equity | (94,445) | (85,531) | |||||
Noncontrolling interest | 0 | 0 | |||||
Total deficit | (94,445) | (85,531) | |||||
Total liabilities and deficit | $ (100,887) | $ (124,982) | |||||
|
Condensed Issuer, Guarantor and Non Guarantor Financial Information (Details 3) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Condensed Issuer, Guarantor and Non Guarantor Financial Information | ||||
Revenue | $ 202,029 | $ 209,661 | $ 589,300 | $ 597,658 |
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | 144,816 | 163,439 | 437,466 | 471,861 |
Depreciation, depletion and amortization | 10,402 | 12,182 | 30,701 | 34,429 |
Asset impairment | 10 | 226 | 193 | 5,249 |
Selling, administrative and general expenses | 12,445 | 14,697 | 38,846 | 44,633 |
Gain on disposals of property, equipment and software | 37 | (141) | (3,796) | (451) |
Operating income (loss) | 34,319 | 19,258 | 85,890 | 41,937 |
Interest expense, net | (21,231) | (20,812) | (63,447) | (61,518) |
Income (loss) before income taxes | 13,088 | (1,554) | 22,443 | (19,581) |
Income tax expense (benefit) | 840 | (56) | 1,263 | (1,398) |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | 12,248 | (1,498) | 21,180 | (18,183) |
Less: Comprehensive income attributable to noncontrolling interest | (139) | (180) | (411) | (532) |
Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | 12,109 | (1,678) | 20,769 | (18,715) |
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 40 | 39 | 118 | 116 |
Comprehensive income (loss) | 12,288 | (1,459) | 21,298 | (18,067) |
Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | 12,149 | (1,639) | 20,887 | (18,599) |
New Enterprise Stone & Lime Co., Inc. | ||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | ||||
Revenue | 179,387 | 192,996 | 521,078 | 535,820 |
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | 128,353 | 148,242 | 387,026 | 422,482 |
Depreciation, depletion and amortization | 9,097 | 10,899 | 26,814 | 30,610 |
Asset impairment | 1 | 75 | 161 | 5,098 |
Selling, administrative and general expenses | 10,920 | 12,981 | 34,151 | 38,810 |
Gain on disposals of property, equipment and software | 79 | (148) | (3,704) | (449) |
Operating income (loss) | 30,937 | 20,947 | 76,630 | 39,269 |
Interest expense, net | (21,182) | (20,894) | (63,512) | (61,707) |
Income (loss) before income taxes | 9,755 | 53 | 13,118 | (22,438) |
Income tax expense (benefit) | 840 | (56) | 1,263 | (1,398) |
Equity in earnings of subsidiaries | 3,194 | (1,787) | 8,914 | 2,325 |
Net income (loss) | 12,109 | $ (1,678) | $ 20,769 | (18,715) |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | ||
Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | 12,109 | $ (1,678) | $ 20,769 | (18,715) |
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 40 | 39 | 118 | 116 |
Comprehensive income (loss) | 12,149 | (1,639) | 20,887 | (18,599) |
Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | 12,149 | (1,639) | 20,887 | (18,599) |
Guarantor Subsidiaries | ||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | ||||
Revenue | 24,393 | 18,992 | 70,168 | 65,667 |
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | 18,389 | 15,615 | 52,658 | 51,589 |
Depreciation, depletion and amortization | 1,305 | 1,283 | 3,887 | 3,819 |
Asset impairment | 9 | 151 | 32 | 151 |
Selling, administrative and general expenses | 1,482 | 1,666 | 4,529 | 5,673 |
Gain on disposals of property, equipment and software | (42) | 7 | (92) | (2) |
Operating income (loss) | 3,250 | 270 | 9,154 | 4,437 |
Interest expense, net | (80) | 28 | (19) | 31 |
Income (loss) before income taxes | 3,170 | $ 298 | 9,135 | 4,468 |
Income tax expense (benefit) | 0 | 0 | 0 | |
Equity in earnings of subsidiaries | 0 | 0 | 0 | |
Net income (loss) | 3,170 | $ 298 | 9,135 | 4,468 |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | 3,170 | 298 | 9,135 | 4,468 |
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 3,170 | 298 | 9,135 | 4,468 |
Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | 3,170 | 298 | 9,135 | 4,468 |
Non Guarantors | ||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | ||||
Revenue | 1,818 | 1,731 | 5,238 | 5,192 |
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | 1,567 | $ 1,430 | 4,739 | $ 4,386 |
Depreciation, depletion and amortization | 0 | 0 | ||
Asset impairment | 0 | 0 | ||
Selling, administrative and general expenses | 43 | $ 50 | 166 | $ 150 |
Gain on disposals of property, equipment and software | 0 | 0 | ||
Operating income (loss) | 208 | $ 251 | 333 | $ 656 |
Interest expense, net | (45) | (54) | (143) | (164) |
Income (loss) before income taxes | 163 | $ 197 | 190 | 492 |
Income tax expense (benefit) | 0 | 0 | 0 | |
Equity in earnings of subsidiaries | 0 | 0 | 0 | |
Net income (loss) | 163 | $ 197 | 190 | 492 |
Less: Comprehensive income attributable to noncontrolling interest | (139) | (180) | (411) | (532) |
Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | 24 | $ 17 | (221) | $ (40) |
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 0 | 0 | ||
Comprehensive income (loss) | 163 | $ 197 | 190 | $ 492 |
Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | 24 | 17 | (221) | (40) |
Eliminations | ||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | ||||
Revenue | (3,569) | (4,058) | (7,184) | (9,021) |
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | (3,493) | $ (1,848) | (6,957) | $ (6,596) |
Depreciation, depletion and amortization | 0 | 0 | ||
Asset impairment | 0 | 0 | ||
Selling, administrative and general expenses | 0 | 0 | ||
Gain on disposals of property, equipment and software | 0 | 0 | ||
Operating income (loss) | (76) | $ (2,210) | (227) | $ (2,425) |
Interest expense, net | 76 | 108 | 227 | 322 |
Income (loss) before income taxes | 0 | $ (2,102) | 0 | (2,103) |
Income tax expense (benefit) | 0 | 0 | 0 | |
Equity in earnings of subsidiaries | (3,194) | $ 1,787 | (8,914) | (2,325) |
Net income (loss) | (3,194) | (315) | (8,914) | (4,428) |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | (3,194) | (315) | (8,914) | (4,428) |
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | (3,194) | (315) | (8,914) | (4,428) |
Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | $ (3,194) | $ (315) | $ (8,914) | $ (4,428) |
Condensed Issuer, Guarantor and Non Guarantor Financial Information (Details 4) - USD ($) $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |||||
Cash flows from operating activities | $ 21,343 | $ (1,071) | |||
Cash flows from investing activities | |||||
Capital expenditures | (19,329) | (18,761) | |||
Proceeds from sale of property, equipment and assets held for sale | 15,654 | 2,450 | |||
Change in cash value of life insurance | 6 | (35) | |||
Change in restricted cash | (8,291) | 13,324 | |||
Net cash used in investing activities | (11,960) | (3,022) | |||
Proceeds from (Repayments of) Debt | (5,873) | (9,550) | |||
Cash flows from financing activities | |||||
Proceeds from issuance of short-term borrowings | (9,550) | ||||
Repayments of other debt | (1,365) | (5,025) | |||
Payments on capital leases | (1,280) | (2,132) | |||
Debt issuance costs | 0 | (756) | |||
Payments of Ordinary Dividends | 0 | ||||
Distribution to noncontrolling interest | (291) | 0 | |||
Net cash used in financing activities | (8,809) | (17,463) | |||
Net increase (decrease) in cash and cash equivalents | 574 | (21,556) | |||
Cash and cash equivalents | |||||
Beginning of period | 13,293 | [1] | 23,892 | ||
End of period | 13,867 | 2,336 | |||
New Enterprise Stone & Lime Co., Inc. | |||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |||||
Cash flows from operating activities | 12,576 | (8,202) | |||
Cash flows from investing activities | |||||
Capital expenditures | (15,236) | (12,982) | |||
Proceeds from sale of property, equipment and assets held for sale | 15,654 | 2,450 | |||
Change in cash value of life insurance | 6 | (35) | |||
Change in restricted cash | (8,316) | 13,512 | |||
Net cash used in investing activities | (7,892) | 2,945 | |||
Proceeds from (Repayments of) Debt | 5,873 | ||||
Cash flows from financing activities | |||||
Proceeds from issuance of short-term borrowings | (9,550) | ||||
Repayments of other debt | (641) | (4,466) | |||
Payments on capital leases | (1,280) | (2,132) | |||
Debt issuance costs | (756) | ||||
Payments of Ordinary Dividends | $ 0 | ||||
Distribution to noncontrolling interest | 0 | ||||
Net cash used in financing activities | (7,794) | $ (16,904) | |||
Net increase (decrease) in cash and cash equivalents | (3,110) | (22,161) | |||
Cash and cash equivalents | |||||
Beginning of period | 8,633 | 21,344 | |||
End of period | 5,523 | (817) | |||
Guarantor Subsidiaries | |||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |||||
Cash flows from operating activities | 4,394 | 5,286 | |||
Cash flows from investing activities | |||||
Capital expenditures | (4,093) | $ (5,779) | |||
Proceeds from sale of property, equipment and assets held for sale | 0 | ||||
Change in cash value of life insurance | 0 | ||||
Change in restricted cash | 27 | $ 4 | |||
Net cash used in investing activities | (4,066) | (5,775) | |||
Proceeds from (Repayments of) Debt | 0 | ||||
Cash flows from financing activities | |||||
Proceeds from issuance of short-term borrowings | 0 | ||||
Repayments of other debt | 0 | 0 | |||
Payments on capital leases | 0 | 0 | |||
Debt issuance costs | 0 | ||||
Payments of Ordinary Dividends | $ 0 | ||||
Distribution to noncontrolling interest | 0 | ||||
Net cash used in financing activities | 0 | $ 0 | |||
Net increase (decrease) in cash and cash equivalents | 328 | (489) | |||
Cash and cash equivalents | |||||
Beginning of period | 60 | 0 | |||
End of period | 388 | (489) | |||
Non Guarantors | |||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |||||
Cash flows from operating activities | 4,373 | $ 3,245 | |||
Cash flows from investing activities | |||||
Capital expenditures | 0 | ||||
Proceeds from sale of property, equipment and assets held for sale | 0 | ||||
Change in cash value of life insurance | 0 | ||||
Change in restricted cash | (2) | $ (192) | |||
Net cash used in investing activities | (2) | (192) | |||
Proceeds from (Repayments of) Debt | 0 | ||||
Cash flows from financing activities | |||||
Proceeds from issuance of short-term borrowings | 0 | ||||
Repayments of other debt | (724) | (559) | |||
Payments on capital leases | 0 | 0 | |||
Debt issuance costs | 0 | ||||
Payments of Ordinary Dividends | $ 1,400 | ||||
Distribution to noncontrolling interest | (291) | ||||
Net cash used in financing activities | (1,015) | $ (1,959) | |||
Net increase (decrease) in cash and cash equivalents | 3,356 | 1,094 | |||
Cash and cash equivalents | |||||
Beginning of period | 4,600 | 2,548 | |||
End of period | $ 7,956 | 3,642 | |||
Eliminations | |||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |||||
Cash flows from operating activities | (1,400) | ||||
Cash flows from investing activities | |||||
Capital expenditures | $ 0 | 0 | |||
Proceeds from sale of property, equipment and assets held for sale | 0 | 0 | |||
Change in cash value of life insurance | 0 | 0 | |||
Change in restricted cash | 0 | 0 | |||
Net cash used in investing activities | 0 | 0 | |||
Proceeds from (Repayments of) Debt | 0 | ||||
Cash flows from financing activities | |||||
Proceeds from issuance of short-term borrowings | 0 | ||||
Repayments of other debt | 0 | 0 | |||
Payments on capital leases | 0 | 0 | |||
Debt issuance costs | 0 | ||||
Payments of Ordinary Dividends | $ (1,400) | ||||
Distribution to noncontrolling interest | 0 | ||||
Net cash used in financing activities | 0 | $ 1,400 | |||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |||
Cash and cash equivalents | |||||
Beginning of period | 0 | 0 | |||
End of period | $ 0 | $ 0 | |||
|
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