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Supplemental Balance Sheet Data and Cash Flow Information
6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Balance Sheet Data and Cash Flow Information

Note 3 Supplemental Balance Sheet Data and Cash Flow Information

Cash and cash equivalents — Cash and cash equivalents include securities with original maturities of three months or less and cash in banks. In June 2021, we invested in a money market fund, which is classified as a cash equivalent because of its short-term, highly liquid nature that is readily convertible to cash. Unrealized gains or losses are included in other operating non-operating expense (income), net and were immaterial in all periods presented. The balance was approximately $35.1 million and $70.0 million at June

30, 2022 and December 31, 2021, respectively. The fair value of money market funds is considered Level 1 in the fair value hierarchy because they are securities traded in active markets. Refer to Note 10, “Fair Value Measurement” for further detail.

In May 2021, we completed a public offering of 4.5 million shares of Class A common stock. Additionally, the underwriters completed the exercise of an allotment option to sell an additional 0.8 million shares (the public offering and the allotment option collectively referred to as the “May 2021 Equity Offering”). Cash proceeds received in the May 2021 Equity Offering, net of underwriting fees, commissions, and transaction expenses, were $103.4 million. We used some of the proceeds to invest in a money market fund to generate short-term cash returns. Additionally, we prepaid $20.9 million of principal on the First Lien Dollar Term Facility in the June 2021 Prepayment (herein defined). Refer to Note 7, “Long-Term Debt” for further detail.

Accounts Receivable, net — The components of accounts receivable, net were as follows:

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Accounts receivable

 

$

43.6

 

 

$

44.7

 

Allowance for doubtful accounts

 

 

(0.8

)

 

 

(1.0

)

Accounts receivable, net

 

$

42.8

 

 

$

43.7

 

 

At June 30, 2022 and December 31, 2021, no customer’s accounts receivable balances exceeded 10.0% of our accounts receivable balance.

Inventories, net — The components of inventories, net were as follows:

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Raw materials

 

$

17.6

 

 

$

19.5

 

Work-in-process

 

 

14.7

 

 

 

1.2

 

Finished goods

 

 

10.8

 

 

 

12.5

 

Total inventories

 

 

43.1

 

 

 

33.2

 

Reserve for obsolescence

 

 

(0.3

)

 

 

(0.3

)

Inventories, net

 

$

42.8

 

 

$

32.9

 

 

Property, Plant and Equipment, net — The following table details our property, plant and equipment, net:

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Land

 

$

4.0

 

 

$

4.1

 

Buildings and improvements

 

 

8.7

 

 

 

9.2

 

Machinery and equipment

 

 

32.4

 

 

 

22.3

 

Computer and office equipment

 

 

10.6

 

 

 

12.7

 

Converting machines

 

 

169.3

 

 

 

164.1

 

Total property, plant, and equipment

 

 

225.0

 

 

 

212.4

 

Accumulated depreciation

 

 

(104.6

)

 

 

(86.1

)

Property, plant, and equipment, net

 

$

120.4

 

 

$

126.3

 

 

Depreciation expense recorded in cost of goods sold and depreciation and amortization in the unaudited condensed consolidated statements of operations and comprehensive income (loss) was as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

Depreciation expense included in

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Cost of goods sold

 

$

9.8

 

 

$

9.4

 

 

$

20.4

 

 

$

18.5

 

Depreciation and amortization expense

 

 

0.8

 

 

 

1.3

 

 

 

1.7

 

 

 

2.7

 

Total depreciation expense

 

$

10.6

 

 

$

10.7

 

 

$

22.1

 

 

$

21.2

 

 

Accrued Liabilities and Other – The components of accrued liabilities and other were as follows:

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Employee compensation

 

$

1.7

 

 

$

1.5

 

Taxes

 

 

12.0

 

 

 

6.9

 

Professional fees

 

 

1.4

 

 

 

4.6

 

Bonus

 

 

0.5

 

 

 

10.1

 

Interest

 

 

1.5

 

 

 

1.7

 

Interest rate swap liability, current portion

 

 

-

 

 

 

3.8

 

Other

 

 

0.9

 

 

 

2.9

 

Accrued liabilities and other

 

$

18.0

 

 

$

31.5

 

Supplemental Cash Flow Information — Supplemental cash flow information is as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Supplemental cash flow information

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

5.2

 

 

$

5.4

 

 

$

10.3

 

 

$

10.9

 

Income taxes paid

 

$

1.1

 

 

$

4.3

 

 

$

1.8

 

 

$

5.0

 

Non-cash investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease liabilities

 

$

0.2

 

 

$

1.7

 

 

$

0.3

 

 

$

10.6

 

Capital expenditures in accounts payable

 

 

 

 

 

$

0.9

 

 

$

0.4