Delaware | 1-36293 | 61-1718923 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S Employer Identification No.) |
12950 Worldgate Drive, Suite 700, Herndon, VA | 20170 | |
(Address of principal executive offices) | (Zip Code) |
(703) 480-3800 |
(Registrant's telephone number, including the area code) |
(d) | Exhibits. Press Release issued by Continental Building Products, Inc. dated August 3, 2017. |
Number | Description | |
99.1 | Press Release issued by Continental Building Products, Inc. dated August 3, 2017. |
Continental Building Products, Inc. | ||
August 3, 2017 | /s/ Timothy A. Power | |
Date | Timothy A. Power | |
Senior Vice President and General Counsel |
Number | Description | |
99.1 | Press Release issued by Continental Building Products, Inc. dated August 3, 2017. |
• | Net sales increased 3.0% to $120.6 million |
• | Net income was $12.4 million compared to $12.7 million |
• | Earnings per share increased 3.2% to $0.32 |
• | EBITDA1 was $34.1 million compared to $35.1 million |
• | Deployed $22.6 million to repurchase 932,000 shares of common stock |
• | SG&A is expected to be in the range of $38 - $40 million. |
• | Cost of goods sold inflation is expected to be at 6% to 7%. |
• | Total capital expenditures is expected to be in the range of $24 - $31 million. |
◦ | Maintenance capital spending is expected to be in the range of $12 - $14 million. |
◦ | High-return plant network capital spending is expected to be in the range of $12 - $17 million. |
• | Depreciation and amortization is expected to be in the range of $43 - $45 million. |
• | Effective interest rate on our term loan is expected to be 4.1%, up from our prior guidance of 4%, while the cash interest rate is expected to be 3.6%. |
• | Effective tax rate is expected to be in the range of 33% - 35%. |
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||
(in thousands, except share data and per share amounts) | |||||||||||||||
Net sales | $ | 120,630 | $ | 117,115 | $ | 241,245 | $ | 228,600 | |||||||
Costs, expenses and other income: | |||||||||||||||
Cost of goods sold | 89,817 | 83,744 | 179,441 | 163,699 | |||||||||||
Selling and administrative | 9,193 | 10,163 | 18,497 | 19,123 | |||||||||||
Total costs and operating expenses | 99,010 | 93,907 | 197,938 | 182,822 | |||||||||||
Operating income | 21,620 | 23,208 | 43,307 | 45,778 | |||||||||||
Other (expense)/income, net | (135 | ) | 6 | (779 | ) | 160 | |||||||||
Interest expense, net | (3,062 | ) | (3,648 | ) | (5,978 | ) | (7,346 | ) | |||||||
Income before income/(losses) from equity method investment and provision for income tax | 18,423 | 19,566 | 36,550 | 38,592 | |||||||||||
Income/(losses) from equity method investment | 345 | (240 | ) | 175 | (435 | ) | |||||||||
Income before provision for income taxes | 18,768 | 19,326 | 36,725 | 38,157 | |||||||||||
Provision for income taxes | (6,370 | ) | (6,604 | ) | (12,100 | ) | (12,934 | ) | |||||||
Net income | $ | 12,398 | $ | 12,722 | $ | 24,625 | $ | 25,223 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.32 | $ | 0.31 | $ | 0.63 | $ | 0.61 | |||||||
Diluted | $ | 0.32 | $ | 0.31 | $ | 0.62 | $ | 0.61 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 39,125,571 | 40,670,650 | 39,349,674 | 41,097,472 | |||||||||||
Diluted | 39,210,219 | 40,717,162 | 39,454,928 | 41,128,466 |
June 30, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
(in thousands) | |||||||
Assets: | |||||||
Cash and cash equivalents | $ | 55,847 | $ | 51,536 | |||
Receivables, net | 37,411 | 32,473 | |||||
Inventories, net | 27,111 | 25,239 | |||||
Prepaid and other current assets | 5,862 | 7,485 | |||||
Total current assets | 126,231 | 116,733 | |||||
Property, plant and equipment, net | 297,931 | 307,838 | |||||
Customer relationships and other intangibles, net | 75,522 | 81,555 | |||||
Goodwill | 119,945 | 119,945 | |||||
Equity method investment | 8,628 | 8,020 | |||||
Debt issuance costs | 568 | 658 | |||||
Total Assets | $ | 628,825 | $ | 634,749 | |||
Liabilities and Shareholders' Equity: | |||||||
Liabilities: | |||||||
Accounts payable | $ | 26,262 | $ | 27,411 | |||
Accrued and other liabilities | 10,328 | 12,321 | |||||
Notes payable, current portion | 1,720 | 1,742 | |||||
Total current liabilities | 38,310 | 41,474 | |||||
Deferred taxes and other long-term liabilities | 19,251 | 19,643 | |||||
Notes payable, non-current portion | 263,776 | 264,620 | |||||
Total Liabilities | 321,337 | 325,737 | |||||
Equity: | |||||||
Undesignated preferred stock, par value $0.001 per share; 10,000,000 shares authorized, no shares issued and outstanding at June 30, 2017 and December 31, 2016 | — | — | |||||
Common stock, $0.001 par value per share; 190,000,000 shares authorized; 44,304,664 and 44,191,370 shares issued at June 30, 2017 and December 31, 2016, respectively; 38,655,886 and 39,691,715 shares outstanding at June 30, 2017 and December 31, 2016, respectively | 44 | 44 | |||||
Additional paid-in capital | 324,086 | 322,384 | |||||
Less: Treasury stock | (116,592 | ) | (88,756 | ) | |||
Accumulated other comprehensive loss | (3,423 | ) | (3,409 | ) | |||
Accumulated earnings | 103,373 | 78,749 | |||||
Total Equity | 307,488 | 309,012 | |||||
Total Liabilities and Equity | $ | 628,825 | $ | 634,749 |
For the Six Months Ended | |||||||
June 30, 2017 | June 30, 2016 | ||||||
(in thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 24,625 | $ | 25,223 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 23,760 | 23,788 | |||||
Bad debt expense | 22 | 28 | |||||
Amortization of debt issuance costs and debt discount | 586 | 1,207 | |||||
Loss on disposal of property, plant and equipment | 18 | 41 | |||||
(Income)/losses from equity method investment | (175 | ) | 435 | ||||
Loss on debt extinguishment | 686 | — | |||||
Stock-based compensation | 1,479 | 1,152 | |||||
Deferred taxes | 92 | 268 | |||||
Change in assets and liabilities: | |||||||
Receivables | (4,964 | ) | (1,973 | ) | |||
Inventories | (1,811 | ) | 1,053 | ||||
Prepaid expenses and other current assets | 966 | (534 | ) | ||||
Accounts payable | (564 | ) | (620 | ) | |||
Accrued and other current liabilities | (2,038 | ) | (152 | ) | |||
Other long term liabilities | (188 | ) | (413 | ) | |||
Net cash provided by operating activities | 42,494 | 49,503 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (8,070 | ) | (1,765 | ) | |||
Software purchased or developed | (133 | ) | (356 | ) | |||
Capital contributions to equity method investment | (647 | ) | (226 | ) | |||
Distributions from equity method investment | 214 | 356 | |||||
Net cash used in investing activities | (8,636 | ) | (1,991 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from exercise of stock options | 230 | 20 | |||||
Tax withholdings on share-based compensation | (240 | ) | — | ||||
Proceeds from debt refinancing | 273,625 | — | |||||
Disbursements for debt refinancing | (273,625 | ) | — | ||||
Payments of financing costs | (649 | ) | — | ||||
Principal payments for debt | (1,368 | ) | (25,000 | ) | |||
Payments to repurchase common stock | (27,836 | ) | (22,010 | ) | |||
Net cash used in financing activities | (29,863 | ) | (46,990 | ) | |||
Effect of foreign exchange rates on cash and cash equivalents | 316 | 475 | |||||
Net change in cash and cash equivalents | 4,311 | 997 | |||||
Cash, beginning of period | 51,536 | 14,729 | |||||
Cash, end of period | $ | 55,847 | $ | 15,726 |
Reconciliation of Net Income to EBITDA | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Net income | $ | 12,398 | $ | 12,722 | $ | 24,625 | $ | 25,223 | |||||||
Adjustments: | |||||||||||||||
Other expense/(income), net | 135 | (6 | ) | 779 | (160 | ) | |||||||||
Interest expense, net | 3,062 | 3,648 | 5,978 | 7,346 | |||||||||||
(Income)/losses from equity method investment | (345 | ) | 240 | (175 | ) | 435 | |||||||||
Provision for income taxes | 6,370 | 6,604 | 12,100 | 12,934 | |||||||||||
Depreciation and amortization | 12,474 | 11,842 | 23,760 | 23,788 | |||||||||||
EBITDA—Non-GAAP Measure | $ | 34,094 | $ | 35,050 | $ | 67,067 | $ | 69,566 | |||||||
EBITDA Margin - EBITDA as a percentage of net sales - Non-GAAP Measure | 28.3 | % | 29.9 | % | 27.8 | % | 30.4 | % |
Reconciliation of Net Income and Earnings Per Share (EPS) to Adjusted Net Income and Adjusted EPS | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||
Net income - GAAP Measure | $ | 12,398 | $ | 12,722 | $ | 24,625 | $ | 25,223 | |||||||
Expense of original issue discount and deferred financing fees for debt refinancing, after tax (a) | — | — | 454 | — | |||||||||||
Adjusted net income - non-GAAP measure | $ | 12,398 | $ | 12,722 | $ | 25,079 | $ | 25,223 | |||||||
Earnings per share - GAAP measure | $ | 0.32 | $ | 0.31 | $ | 0.63 | $ | 0.61 | |||||||
Expense of original issue discount and deferred financing fees for debt refinancing, after tax (a) | — | — | 0.01 | — | |||||||||||
Adjusted earnings per share - non-GAAP measure | $ | 0.32 | $ | 0.31 | $ | 0.64 | $ | 0.61 |
(a) | Expense for debt repricing and expense for debt pricing per share is shown net of income tax benefit of $0.2 million. |
Other Financial and Operating Data | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||
(dollars in thousands, except mill net) | |||||||||||||||
Capital expenditures and software purchased or developed | $ | 2,843 | $ | 1,854 | $ | 8,203 | $ | 2,121 | |||||||
Wallboard sales volume (million square feet) | 647 | 643 | 1,297 | 1,260 | |||||||||||
Mill net sales price (a) | $ | 150.32 | $ | 144.86 | $ | 149.11 | $ | 144.74 |
(a) | Mill net sales price represents average selling price per thousand square feet net of freight and delivery costs. |
Interim Volumes and Mill Net Prices | |||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||
June 30, 2016 | September 30, 2016 | December 31, 2016 | March 31, 2017 | June 30, 2017 | |||||||||||||||
Volumes (million square feet) | 643 | 634 | 666 | 650 | 647 | ||||||||||||||
Mill net sales price | $ | 144.86 | $ | 144.34 | $ | 141.61 | $ | 147.92 | $ | 150.32 |
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