Delaware | 1-36050 | 26-4687975 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description of Exhibit | |
99.1 | Press release dated October 30, 2013 |
STOCK BUILDING SUPPLY HOLDINGS, INC. | ||
By | /s/ Bryan J. Yeazel | |
Bryan J. Yeazel Executive Vice President, Chief Administrative Officer, General Counsel and Corporate Secretary |
Exhibit No. | Description of Exhibit | |
99.1 | Press release dated October 30, 2013 |
• | Net sales of $328.5 million, up 28.4%, compared to $255.8 million in the prior year period |
• | Adjusted EBITDA of $10.4 million, compared to $4.3 million in the prior year period |
• | Net loss of $5.5 million, including $9.3 million of initial public offering ("IPO") transaction-related costs, compared to net income of $0.04 million in the prior year period |
• | Completed its IPO on August 14, 2013, yielding approximately $46.8 million of proceeds that were used to repay borrowings under the Company's revolver |
• | Cash provided by operating activities of $4.2 million, including the payment of $9.3 million of IPO transaction-related costs, compared to cash used in operating activities of $5.4 million in the prior year period |
• | Improved liquidity to approximately $92.0 million |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(in thousands of dollars, except share and per share amounts) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net sales | $ | 328,468 | $ | 255,833 | $ | 891,847 | $ | 690,264 | ||||||||
Cost of goods sold | 253,087 | 197,317 | 691,166 | 533,263 | ||||||||||||
Gross profit | 75,381 | 58,516 | 200,681 | 157,001 | ||||||||||||
Selling, general and administrative expenses | 66,931 | 55,962 | 188,458 | 163,567 | ||||||||||||
Depreciation expense | 1,456 | 1,803 | 4,716 | 5,902 | ||||||||||||
Amortization expense | 563 | 364 | 1,672 | 1,093 | ||||||||||||
IPO transaction-related costs | 9,322 | — | 10,008 | — | ||||||||||||
Restructuring expense | 31 | 145 | 130 | 166 | ||||||||||||
78,303 | 58,274 | 204,984 | 170,728 | |||||||||||||
Income (loss) from operations | (2,922 | ) | 242 | (4,303 | ) | (13,727 | ) | |||||||||
Other income, net | ||||||||||||||||
Interest expense | (892 | ) | (1,022 | ) | (3,150 | ) | (3,070 | ) | ||||||||
Other income, net | 200 | 137 | 596 | 36 | ||||||||||||
Loss from continuing operations before income taxes | (3,614 | ) | (643 | ) | (6,857 | ) | (16,761 | ) | ||||||||
Income tax benefit (expense) | (1,989 | ) | 394 | (1,076 | ) | 5,950 | ||||||||||
Loss from continuing operations | (5,603 | ) | (249 | ) | (7,933 | ) | (10,811 | ) | ||||||||
Income from discontinued operations, net of tax provision of ($54), ($168), ($237) and ($25), respectively | 90 | 289 | 341 | 48 | ||||||||||||
Net income (loss) | (5,513 | ) | 40 | (7,592 | ) | (10,763 | ) | |||||||||
Redeemable Class B Senior Preferred stock deemed dividend | (363 | ) | (1,144 | ) | (1,836 | ) | (3,366 | ) | ||||||||
Accretion of beneficial conversion feature on Convertible Class C Preferred stock | — | — | — | (5,000 | ) | |||||||||||
Loss attributable to common stockholders | $ | (5,876 | ) | $ | (1,104 | ) | $ | (9,428 | ) | $ | (19,129 | ) | ||||
Weighted average common shares outstanding, basic and diluted | 19,813,209 | 13,361,512 | 15,718,667 | 13,079,851 | ||||||||||||
Basic and diluted income (loss) per share | ||||||||||||||||
Loss from continuing operations | $ | (0.30 | ) | $ | (0.10 | ) | $ | (0.62 | ) | $ | (1.46 | ) | ||||
Income from discontinued operations | — | 0.02 | 0.02 | — | ||||||||||||
Net loss per share | $ | (0.30 | ) | $ | (0.08 | ) | $ | (0.60 | ) | $ | (1.46 | ) |
September 30, 2013 | December 31, 2012 | |||||||
(in thousands of dollars, except share and per share amounts) | (as restated) | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 10,526 | $ | 2,691 | ||||
Restricted assets | 567 | 3,821 | ||||||
Accounts receivable, net | 125,413 | 90,297 | ||||||
Inventories, net | 95,043 | 73,918 | ||||||
Costs in excess of billings on uncompleted contracts | 9,059 | 5,176 | ||||||
Assets held for sale | 2,795 | 6,198 | ||||||
Prepaid expenses and other current assets | 8,902 | 8,682 | ||||||
Deferred income taxes | 5,952 | 3,562 | ||||||
Total current assets | 258,257 | 194,345 | ||||||
Property and equipment, net of accumulated depreciation | 52,880 | 55,076 | ||||||
Intangible assets, net of accumulated amortization | 25,353 | 25,865 | ||||||
Goodwill | 7,186 | 6,511 | ||||||
Restricted assets | 2,233 | 2,202 | ||||||
Other assets | 2,160 | 2,013 | ||||||
Total assets | $ | 348,069 | $ | 286,012 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 87,954 | $ | 74,231 | ||||
Accrued expenses and other liabilities | 34,459 | 25,277 | ||||||
Revolving line of credit | — | 72,218 | ||||||
Income taxes payable | 6,100 | 2,939 | ||||||
Current portion of restructuring reserve | 1,572 | 1,513 | ||||||
Current portion of capital lease obligation | 1,343 | 1,329 | ||||||
Billings in excess of costs on uncompleted contracts | 2,877 | 1,239 | ||||||
Total current liabilities | 134,305 | 178,746 | ||||||
Revolving line of credit | 60,073 | — | ||||||
Long-term portion of capital lease obligation | 6,265 | 5,635 | ||||||
Deferred income taxes | 15,650 | 16,983 | ||||||
Other long-term liabilities | 7,528 | 9,007 | ||||||
Total liabilities | 223,821 | 210,371 | ||||||
Commitments and contingencies | ||||||||
Redeemable Class A Junior Preferred stock, $.01 par value, 10,000 shares authorized and issued, 0 and 5,100 shares outstanding at September 30, 2013 and December 31, 2012, respectively | — | — | ||||||
Redeemable Class B Senior Preferred stock, $.01 par value, 500,000 shares authorized, 75,000 shares issued, 0 and 36,388 shares outstanding at September 30, 2013 and December 31, 2012, respectively | — | 36,477 | ||||||
Convertible Class C Preferred stock, $.01 par value, 5,000 shares authorized and issued, 0 and 5,000 shares outstanding at September 30, 2013 and December 31, 2012, respectively | — | 5,000 | ||||||
Stockholders' equity | ||||||||
Class A common stock, $.01 par value, 22,725,500 shares authorized and issued, 0 and 11,590,005 shares outstanding at September 30, 2013 and December 31, 2012, respectively | — | 116 | ||||||
Class B common stock, $.01 par value, 3,246,500 shares authorized, 2,870,712 shares issued, 0 and 2,870,712 shares outstanding at September 30, 2013 and December 31, 2012, respectively | — | 29 | ||||||
Common stock, $.01 par value, 300,000,000 shares authorized, 26,107,231 and 0 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 261 | — | ||||||
Additional paid-in capital | 144,094 | 46,534 | ||||||
Retained deficit | (20,107 | ) | (12,515 | ) | ||||
Total stockholders' equity | 124,248 | 34,164 | ||||||
Total liabilities and stockholders' equity | $ | 348,069 | $ | 286,012 |
Nine months ended September 30, | ||||||||
(in thousands of dollars) | 2013 | 2012 | ||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (7,592 | ) | $ | (10,763 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities | ||||||||
Depreciation expense | 7,389 | 7,865 | ||||||
Amortization of intangible assets | 1,672 | 1,093 | ||||||
Amortization of debt issuance costs | 465 | 685 | ||||||
Change in deferred income taxes | (3,723 | ) | (3,196 | ) | ||||
Noncash stock compensation expense | 573 | 1,069 | ||||||
Impairment of assets held for sale | — | 101 | ||||||
Gain on sale of property, equipment and real estate held for sale | (270 | ) | (567 | ) | ||||
Bad debt expense | 1,316 | 1,435 | ||||||
Change in assets and liabilities | ||||||||
Accounts receivable | (35,401 | ) | (34,319 | ) | ||||
Inventories, net | (20,598 | ) | (30,622 | ) | ||||
Accounts payable | 14,735 | 25,761 | ||||||
Other assets and liabilities | 6,904 | 16,774 | ||||||
Net cash used in operating activities | (34,530 | ) | (24,684 | ) | ||||
Cash flows from investing activities | ||||||||
Change in restricted assets | 3,223 | 3,458 | ||||||
Purchase of business | (2,373 | ) | — | |||||
Proceeds from sale of property, equipment and real estate held for sale | 3,070 | 922 | ||||||
Purchases of property and equipment | (2,574 | ) | (2,382 | ) | ||||
Net cash provided by investing activities | 1,346 | 1,998 | ||||||
Cash flows from financing activities | ||||||||
Proceeds from revolving line of credit | 961,160 | 753,580 | ||||||
Repayments of proceeds from revolving line of credit | (973,305 | ) | (726,120 | ) | ||||
Proceeds from issuance of common stock, net of offering costs | 55,821 | — | ||||||
Other financing activities | (2,657 | ) | (1,277 | ) | ||||
Net cash provided by financing activities | 41,019 | 26,183 | ||||||
Net increase in cash and cash equivalents | 7,835 | 3,497 | ||||||
Cash and cash equivalents | ||||||||
Beginning of period | 2,691 | 4,957 | ||||||
End of period | $ | 10,526 | $ | 8,454 |
Three months ended September 30, 2013 | Three months ended September 30, 2012 | |||||||||||||||
(in thousands of dollars) | Sales | % of Sales | Sales | % of Sales | % Change | |||||||||||
Structural components | $ | 46,335 | 14.1 | % | $ | 28,978 | 11.3 | % | 59.9 | % | ||||||
Millwork & other interior products | 58,215 | 17.7 | % | 47,956 | 18.7 | % | 21.4 | % | ||||||||
Lumber & lumber sheet goods | 114,147 | 34.8 | % | 91,394 | 35.7 | % | 24.9 | % | ||||||||
Windows & other exterior products | 71,463 | 21.8 | % | 54,803 | 21.4 | % | 30.4 | % | ||||||||
Other building products & services | 38,308 | 11.6 | % | 32,702 | 12.9 | % | 17.1 | % | ||||||||
Total sales | $ | 328,468 | 100.0 | % | $ | 255,833 | 100.0 | % | 28.4 | % |
Nine months ended September 30, 2013 | Nine months ended September 30, 2012 | |||||||||||||||
(in thousands of dollars) | Sales | % of Sales | Sales | % of Sales | % Change | |||||||||||
Structural components | $ | 117,367 | 13.2 | % | $ | 77,818 | 11.3 | % | 50.8 | % | ||||||
Millwork & other interior products | 161,213 | 18.1 | % | 130,793 | 18.9 | % | 23.3 | % | ||||||||
Lumber & lumber sheet goods | 329,744 | 37.0 | % | 240,884 | 34.9 | % | 36.9 | % | ||||||||
Windows & other exterior products | 182,062 | 20.4 | % | 150,335 | 21.8 | % | 21.1 | % | ||||||||
Other building products & services | 101,461 | 11.3 | % | 90,434 | 13.1 | % | 12.2 | % | ||||||||
Total sales | $ | 891,847 | 100.0 | % | $ | 690,264 | 100.0 | % | 29.2 | % |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(in thousands of dollars) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss), as reported | $ | (5,513 | ) | $ | 40 | $ | (7,592 | ) | $ | (10,763 | ) | |||||
Interest expense | 892 | 1,022 | 3,150 | 3,070 | ||||||||||||
Income tax expense (benefit) | 1,989 | (394 | ) | 1,076 | (5,950 | ) | ||||||||||
Depreciation and amortization | 3,032 | 2,778 | 9,058 | 8,839 | ||||||||||||
EBITDA | $ | 400 | $ | 3,446 | $ | 5,692 | $ | (4,804 | ) | |||||||
Discontinued operations, net of taxes | (90 | ) | (289 | ) | (341 | ) | (48 | ) | ||||||||
IPO transaction-related costs | 9,322 | — | 10,008 | — | ||||||||||||
Restructuring expense | 31 | 145 | 130 | 166 | ||||||||||||
Management fees (a) | 239 | 330 | 1,205 | 1,097 | ||||||||||||
Non-cash compensation expense | 309 | 389 | 573 | 1,069 | ||||||||||||
Acquisition costs (b) | — | — | 257 | 46 | ||||||||||||
Severance and other expenses related to store closures and business optimization (c) | 229 | 231 | 721 | 1,035 | ||||||||||||
Reduction of tax indemnification asset (d) | — | — | — | 347 | ||||||||||||
Adjusted EBITDA | $ | 10,440 | $ | 4,252 | $ | 18,245 | $ | (1,092 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(in thousands of dollars) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss), as reported | $ | (5,513 | ) | $ | 40 | $ | (7,592 | ) | $ | (10,763 | ) | |||||
Discontinued operations, net of taxes | (90 | ) | (289 | ) | (341 | ) | (48 | ) | ||||||||
IPO transaction-related costs | 9,322 | — | 10,008 | — | ||||||||||||
Restructuring expense | 31 | 145 | 130 | 166 | ||||||||||||
Management fees (a) | 239 | 330 | 1,205 | 1,097 | ||||||||||||
Non-cash compensation expense | 309 | 389 | 573 | 1,069 | ||||||||||||
Acquisition costs (b) | — | — | 257 | 46 | ||||||||||||
Severance and other expenses related to store closures and business optimization (c) | 229 | 231 | 721 | 1,035 | ||||||||||||
Reduction of tax indemnification asset (d) | — | — | — | 347 | ||||||||||||
Tax effect of adjustments to continuing operations (e) | (297 | ) | (412 | ) | (1,218 | ) | (1,323 | ) | ||||||||
Adjusted income (loss) from continuing operations | $ | 4,230 | $ | 434 | $ | 3,743 | $ | (8,374 | ) |
(a) | Represents the expense for management services provided by Gores and its affiliates. |
(b) | Represents $0.2 million and $0.1 million related to the acquisitions of (i) Chesapeake Structural Systems, Inc., Creative Wood Products, LLC and Chestruc, LLC and (ii) Total Building Services Group, LLC, respectively, for the nine months ended September 30, 2013. |
(c) | Represents (i) $0.0 million, $0.0 million, $0.2 million and $0.3 million of severance expense for the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2013 and 2012, respectively, and (ii) $0.2 million, $0.2 million, $0.5 million and $0.7 million related to closed locations, consisting of post-closure expenses for the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2013 and 2012, respectively. |
(d) | Includes $0.3 million of expense related to the reduction of a tax indemnification asset, with a corresponding increase in income tax benefit, for the nine months ended September 30, 2012. This indemnification asset corresponds to the long-term liability related to uncertain tax positions for which Wolseley plc had indemnified the Company, which was reduced upon the expiration of the statute of limitations for certain tax periods. |
(e) | The tax effect of adjustments to continuing operations, excluding approximately $9.2 million of non-deductible IPO transaction-related costs, was based on the respective transactions' income tax rate, which was 33.2%, 37.7%, 33.3% and 35.2% for the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2013 and 2012, respectively. |
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