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 2, 2018. |
Continental Building Products, Inc. | ||
August 2, 2018 | /s/ Timothy A. Power | |
Date | Timothy A. Power | |
Senior Vice President and General Counsel |
• | Earnings per share increased 84.4% to $0.59 |
• | Net income increased 76.6% to $21.9 million |
• | EBITDA1 increased 21.3% to $41.4 million |
• | Net sales increased 15.5% to $139.3 million |
• | Gross margin increased to 29.4% compared to 25.5% |
• | Operating cash flow improved 62.9% to $39.0 million |
• | Deployed $7.4 million in capital investments |
• | Deployed $10.0 million to repurchase 0.3 million shares of common stock |
• | SG&A is expected to be in the range of $39 - $40 million |
• | Cost of goods sold inflation per unit compared to the prior year is expected to be in the range of 3% - 4%, down from the prior guidance of 3% - 5%, partly offset by approximately $5 million of savings from high return capital projects |
• | Total capital expenditures are expected to be in the range of $29 - $33 million as compared to the prior guidance of $30 - $35 million |
◦ | Maintenance capital spending is expected to be in the range of $14 - $15 million as compared to the prior guidance of $15 million |
◦ | High-return capital spending is expected to be in the range of $15 - $18 million as compared to the prior guidance of $15 - $20 million |
• | Depreciation and amortization is expected to be in the range of $43 - $45 million |
• | Effective tax rate is expected to be in the range of 21% - 22% as compared to the prior guidance of 22% - 24% |
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
(in thousands, except share data and per share amounts) | |||||||||||||||
Net sales | $ | 139,268 | $ | 120,630 | $ | 256,070 | $ | 241,245 | |||||||
Costs, expenses and other income: | |||||||||||||||
Cost of goods sold | 98,263 | 89,817 | 184,879 | 179,441 | |||||||||||
Selling and administrative | 10,445 | 9,193 | 19,869 | 18,497 | |||||||||||
Total costs and operating expenses | 108,708 | 99,010 | 204,748 | 197,938 | |||||||||||
Operating income | 30,560 | 21,620 | 51,322 | 43,307 | |||||||||||
Other expense, net | (87 | ) | (135 | ) | (227 | ) | (779 | ) | |||||||
Interest expense, net | (2,694 | ) | (3,062 | ) | (5,414 | ) | (5,978 | ) | |||||||
Income before (losses)/income from equity method investment and provision for income taxes | 27,779 | 18,423 | 45,681 | 36,550 | |||||||||||
(Losses)/income from equity method investment | (391 | ) | 345 | (755 | ) | 175 | |||||||||
Income before provision for income taxes | 27,388 | 18,768 | 44,926 | 36,725 | |||||||||||
Provision for income taxes | (5,493 | ) | (6,370 | ) | (9,385 | ) | (12,100 | ) | |||||||
Net income | $ | 21,895 | $ | 12,398 | $ | 35,541 | $ | 24,625 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.59 | $ | 0.32 | $ | 0.96 | $ | 0.63 | |||||||
Diluted | $ | 0.59 | $ | 0.32 | $ | 0.95 | $ | 0.62 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 36,879,774 | 39,125,571 | 37,154,750 | 39,349,674 | |||||||||||
Diluted | 37,027,997 | 39,210,219 | 37,314,947 | 39,454,928 |
June 30, 2018 | December 31, 2017 | ||||||
(unaudited) | |||||||
(in thousands) | |||||||
Assets: | |||||||
Cash and cash equivalents | $ | 84,365 | $ | 72,521 | |||
Trade receivables, net | 43,314 | 38,769 | |||||
Inventories, net | 27,662 | 24,882 | |||||
Prepaid and other current assets | 8,280 | 11,267 | |||||
Total current assets | 163,621 | 147,439 | |||||
Property, plant and equipment, net | 292,451 | 294,003 | |||||
Customer relationships and other intangibles, net | 66,284 | 70,807 | |||||
Goodwill | 119,945 | 119,945 | |||||
Equity method investment | 8,867 | 9,263 | |||||
Debt issuance costs | 387 | 477 | |||||
Total Assets | $ | 651,555 | $ | 641,934 | |||
Liabilities and Shareholders' Equity: | |||||||
Liabilities: | |||||||
Accounts payable | $ | 30,437 | $ | 30,809 | |||
Accrued and other liabilities | 10,259 | 11,940 | |||||
Notes payable, current portion | 1,685 | 1,702 | |||||
Total current liabilities | 42,381 | 44,451 | |||||
Deferred taxes and other long-term liabilities | 15,456 | 15,847 | |||||
Notes payable, non-current portion | 262,807 | 263,610 | |||||
Total Liabilities | 320,644 | 323,908 | |||||
Shareholders' Equity: | |||||||
Undesignated preferred stock, par value $0.001 per share; 10,000,000 shares authorized, no shares issued and outstanding | — | — | |||||
Common stock, $0.001 par value per share; 190,000,000 shares authorized; 44,413,204 and 44,321,776 shares issued and 36,748,879 and 37,532,959 shares outstanding as of June 30, 2018 and December 31, 2017, respectively | 44 | 44 | |||||
Additional paid-in capital | 326,594 | 325,391 | |||||
Less: Treasury stock | (167,919 | ) | (143,357 | ) | |||
Accumulated other comprehensive loss | (1,946 | ) | (2,649 | ) | |||
Accumulated earnings | 174,138 | 138,597 | |||||
Total Shareholders' Equity | 330,911 | 318,026 | |||||
Total Liabilities and Shareholders' Equity | $ | 651,555 | $ | 641,934 |
For the Six Months Ended | |||||||
June 30, 2018 | June 30, 2017 | ||||||
(in thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 35,541 | $ | 24,625 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 21,386 | 23,760 | |||||
Amortization of debt issuance costs and debt discount | 629 | 586 | |||||
Losses/(income) from equity method investment | 755 | (175 | ) | ||||
Amortization of deferred gain on terminated swaps | (317 | ) | |||||
Loss on debt extinguishment | — | 686 | |||||
Share-based compensation | 1,611 | 1,479 | |||||
Deferred taxes | — | 92 | |||||
Change in assets and liabilities: | |||||||
Trade receivables | (4,647 | ) | (4,942 | ) | |||
Inventories | (2,896 | ) | (1,811 | ) | |||
Prepaid expenses and other current assets | 4,369 | 984 | |||||
Accounts payable | (2,078 | ) | (564 | ) | |||
Accrued and other current liabilities | (955 | ) | (2,038 | ) | |||
Other long-term liabilities | (622 | ) | (188 | ) | |||
Net cash provided by operating activities | 52,776 | 42,494 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (13,006 | ) | (8,070 | ) | |||
Software purchased or developed | (790 | ) | (133 | ) | |||
Capital contributions to equity method investment | (438 | ) | (647 | ) | |||
Distributions from equity method investment | 78 | 214 | |||||
Net cash used in investing activities | (14,156 | ) | (8,636 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from exercise of stock options | 11 | 230 | |||||
Tax withholdings on share-based compensation | (547 | ) | (240 | ) | |||
Proceeds from debt refinancing | — | 273,625 | |||||
Disbursements for debt refinancing | — | (273,625 | ) | ||||
Payments of financing costs | — | (649 | ) | ||||
Principal payments for debt | (1,358 | ) | (1,368 | ) | |||
Payments to repurchase common stock | (24,562 | ) | (27,836 | ) | |||
Net cash used in financing activities | (26,456 | ) | (29,863 | ) | |||
Effect of foreign exchange rates on cash and cash equivalents | (320 | ) | 316 | ||||
Net change in cash and cash equivalents | 11,844 | 4,311 | |||||
Cash, beginning of period | 72,521 | 51,536 | |||||
Cash, end of period | $ | 84,365 | $ | 55,847 |
Reconciliation of Net Income to EBITDA | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
(unaudited, in thousands) | |||||||||||||||
Net income | $ | 21,895 | $ | 12,398 | $ | 35,541 | $ | 24,625 | |||||||
Adjustments: | |||||||||||||||
Other expense, net | 87 | 135 | 227 | 779 | |||||||||||
Interest expense, net | 2,694 | 3,062 | 5,414 | 5,978 | |||||||||||
Losses/(income) from equity method investment | 391 | (345 | ) | 755 | (175 | ) | |||||||||
Provision for income taxes | 5,493 | 6,370 | 9,385 | 12,100 | |||||||||||
Depreciation and amortization | 10,805 | 12,474 | 21,386 | 23,760 | |||||||||||
EBITDA - Non-GAAP measure | $ | 41,365 | $ | 34,094 | $ | 72,708 | $ | 67,067 | |||||||
EBITDA Margin - EBITDA as a percentage of net sales - Non-GAAP measure | 29.7 | % | 28.3 | % | 28.4 | % | 27.8 | % |
Reconciliation of Net Income and Earnings Per Share to Adjusted Net Income and Adjusted Earnings Per Share | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
(unaudited, in thousands, except share data and per share amounts) | |||||||||||||||
Net income - GAAP measure | $ | 21,895 | $ | 12,398 | $ | 35,541 | $ | 24,625 | |||||||
Debt related expenses, net of tax (1) | — | — | 454 | ||||||||||||
Adjusted net income - Non-GAAP measure | $ | 21,895 | $ | 12,398 | $ | 35,541 | $ | 25,079 | |||||||
Earnings per share - GAAP measure | $ | 0.59 | $ | 0.32 | $ | 0.96 | $ | 0.63 | |||||||
Debt related expenses, net of tax (1) | — | — | — | 0.01 | |||||||||||
Adjusted earnings per share - Non-GAAP measure | $ | 0.59 | $ | 0.32 | $ | 0.96 | $ | 0.64 |
(1) | Expenses related to debt repricing activities are 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, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
(in thousands, except mill net) | |||||||||||||||
Capital expenditures and software purchased or developed | $ | 7,359 | $ | 2,843 | $ | 13,796 | $ | 8,203 | |||||||
Wallboard sales volume (million square feet) | 722 | 647 | 1,337 | 1,297 | |||||||||||
Mill net sales price (1) | $ | 153.88 | $ | 150.32 | $ | 152.83 | $ | 149.11 |
(1) | 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, 2017 | September 30, 2017 | December 31, 2017 | March 31, 2018 | June 30, 2018 | |||||||||||||||
Volumes (million square feet) | 647 | 644 | 725 | 615 | 722 | ||||||||||||||
Mill net sales price (1) | $ | 150.32 | $ | 144.90 | $ | 144.78 | $ | 151.60 | $ | 153.88 |
(1) | Mill net sales price represents average selling price per thousand square feet net of freight and delivery costs. |
&+-XW778 >>W2+4K,R9/&
MJ8&,#S[X0 H4**!NN^:::^3MM]]6M^&"G[OJJJO4;8'>?//-2Y8 8.D#!K&M
MBGD A]F:7[=]+B\M?4!&KGA<9NWZ48Z>.:1OI7CUZ_;_J51(N[[9]+9\MWF\
MI35F7E
7TDAAG3IU9/;LV9(A0P9])#SDE+LQ\HB.$0IXX/%ATTTK?OCA!_5O
M$
X)"]<+''GM,M\@M9\Z
3,Y&VV*!YCE01 7+S-QV!,-Z22%"Q?61T)# 1(4
M38D'^?+EDTF3)JG*E_$&[R.L/