QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
(State or other jurisdiction of incorporation | (I.R.S. Employer | |
or organization) | Identification No.) | |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
ý | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
Emerging growth company | ||||||
Item 1 - Financial Statements | ||
Page No. | ||
Part II - Other Information | ||
June 30, | December 31, | ||||||||||
2019 | 2018 | 2018 | |||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||
Trade accounts receivable, net | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Operating lease right-of-use assets | — | — | |||||||||
Goodwill | |||||||||||
Equity investment | |||||||||||
Intangible assets, net | |||||||||||
Other noncurrent assets | |||||||||||
Total assets | $ | $ | $ | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Trade accounts payable | $ | $ | $ | ||||||||
Accrued liabilities and other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Operating lease liabilities | — | — | |||||||||
Deferred income tax and other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (see Note 12) | |||||||||||
Stockholders’ equity | |||||||||||
Common stock, at par value | |||||||||||
Additional paid-in capital | |||||||||||
Retained Earnings | |||||||||||
Treasury stock | ( | ) | ( | ) | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ( | ) | |||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ | $ | ||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||
Cost of sales | |||||||||||||||
Gross profit | |||||||||||||||
Operating expenses: | |||||||||||||||
Research and development and other engineering | |||||||||||||||
Selling | |||||||||||||||
General and administrative | |||||||||||||||
Total operating expenses | |||||||||||||||
Net gain on disposal of assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income from operations | |||||||||||||||
Interest income (expense), net and other | ( | ) | ( | ) | ( | ) | |||||||||
Income before taxes | |||||||||||||||
Provision for income taxes | |||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Other comprehensive income | |||||||||||||||
Translation adjustment | ( | ) | ( | ) | |||||||||||
Unamortized pension adjustments | ( | ) | ( | ) | |||||||||||
Comprehensive net income | $ | $ | $ | $ | |||||||||||
Net income per common share: | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | $ | $ | $ | $ | |||||||||||
Number of shares outstanding | |||||||||||||||
Basic | |||||||||||||||
Diluted | |||||||||||||||
Cash dividends declared per common share | $ | $ | $ | $ | |||||||||||
Additional | Accumulated Other | |||||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | Treasury | ||||||||||||||||
Shares | Par Value | Capital | Earnings | Income (Loss) | Stock | Total | ||||||||||||||
Balance at January 1, 2018 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
Net income | — | — | — | — | — | |||||||||||||||
Translation adjustment, net of tax | — | — | — | — | ( | ) | — | ( | ) | |||||||||||
Options exercised | — | — | — | |||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||
Adoption of ASC 606, net of tax | — | — | — | — | ||||||||||||||||
Shares issued from release of Restricted Stock Units | ( | ) | — | — | — | ( | ) | |||||||||||||
Repurchase of common stock | ( | ) | — | — | — | ( | ) | ( | ) | |||||||||||
Retirement of treasury stock | — | ( | ) | ( | ) | — | ||||||||||||||
Cash dividends declared on common stock, $0.43 per share | — | — | ( | ) | — | — | ( | ) | ||||||||||||
Common stock issued at $57.41 per share for stock bonus | — | — | — | — | ||||||||||||||||
Balance, at June 30, 2018 | ( | ) | ( | ) | ||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||
Translation adjustment, net of tax | — | — | — | — | ( | ) | — | ( | ) | |||||||||||
Pension adjustment, net of tax | — | — | — | — | — | |||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||
Adoption of new accounting standards | — | — | — | ( | ) | — | — | |||||||||||||
Shares issued from release of Restricted Stock Units | ( | ) | — | — | — | ( | ) | |||||||||||||
Repurchase of common stock | ( | ) | — | — | — | ( | ) | ( | ) | |||||||||||
Retirement of common stock | — | ( | ) | — | ( | ) | — | |||||||||||||
Cash dividends declared on common stock, $0.44 per share | — | — | — | ( | ) | — | — | ( | ) | |||||||||||
Balance, at December 31, 2018 | ( | ) | ( | ) | ||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||
Translation adjustment, net of tax | — | — | — | — | ( | ) | — | ( | ) | |||||||||||
Pension adjustment, net of tax | — | — | — | — | — | |||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||
Shares issued from release of Restricted Stock Units | ( | ) | — | — | — | ( | ) | |||||||||||||
Repurchase of common stock | ( | ) | — | — | — | ( | ) | ( | ) | |||||||||||
Retirement of treasury stock | — | ( | ) | — | ( | ) | — | |||||||||||||
Cash dividends declared on common stock, $0.45 per share | — | — | — | ( | ) | — | — | ( | ) | |||||||||||
Common stock issued at $54.31 per share for stock bonus | — | — | — | — | ||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||
Six Months Ended | |||||||
June 30, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Gain on sale of assets and other | ( | ) | ( | ) | |||
Depreciation and amortization | |||||||
Noncash lease expense | — | ||||||
Deferred income taxes and other long-term liabilities | |||||||
Noncash compensation related to stock plans | |||||||
Provision of doubtful accounts | |||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Trade accounts receivable | ( | ) | ( | ) | |||
Inventories | ( | ) | |||||
Trade accounts payable | |||||||
Other current assets | ( | ) | |||||
Accrued liabilities and other current liabilities | ( | ) | |||||
Other noncurrent assets and liabilities | ( | ) | |||||
Net cash provided by operating activities | |||||||
Cash flows from investing activities | |||||||
Capital expenditures | ( | ) | ( | ) | |||
Asset acquisitions, net of cash acquired | ( | ) | |||||
Proceeds from sale of property and equipment | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Cash flows from financing activities | |||||||
Repurchase of common stock | ( | ) | ( | ) | |||
Proceeds from line of credit | |||||||
Repayments of line of credit and capital leases | ( | ) | ( | ) | |||
Issuance of common stock for exercise of options | |||||||
Dividends paid | ( | ) | ( | ) | |||
Cash paid on behalf of employees for shares withheld | ( | ) | ( | ) | |||
Net cash used in financing activities | ( | ) | ( | ) | |||
Effect of exchange rate changes on cash and cash equivalents | ( | ) | ( | ) | |||
Net decrease in cash and cash equivalents | ( | ) | ( | ) | |||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents at end of period | $ | $ | |||||
Noncash activity during the period | |||||||
Noncash capital expenditures | $ | $ | |||||
Dividends declared but not paid | |||||||
Issuance of Company’s common stock for compensation | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands, except per share amounts) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income available to common stockholders | $ | $ | $ | $ | |||||||||||
Basic weighted-average shares outstanding | |||||||||||||||
Dilutive effect of potential common stock equivalents — restricted stock units | |||||||||||||||
Diluted weighted-average shares outstanding | |||||||||||||||
Net income per common share: | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | $ | $ | $ | $ | |||||||||||
At June 30, | At December 31, | ||||||||||
(in thousands) | 2019 | 2018 | 2018 | ||||||||
Trade accounts receivable | $ | $ | $ | ||||||||
Allowance for doubtful accounts | ( | ) | ( | ) | ( | ) | |||||
Allowance for sales discounts and returns | ( | ) | ( | ) | ( | ) | |||||
$ | $ | $ | |||||||||
At June 30, | At December 31, | ||||||||||
(in thousands) | 2019 | 2018 | 2018 | ||||||||
Raw materials | $ | $ | $ | ||||||||
In-process products | |||||||||||
Finished products | |||||||||||
$ | $ | $ | |||||||||
At June 30, | At December 31, | ||||||||||
(in thousands) | 2019 | 2018 | 2018 | ||||||||
Land | $ | $ | $ | ||||||||
Buildings and site improvements | |||||||||||
Leasehold improvements | |||||||||||
Machinery, equipment, and software | |||||||||||
Less accumulated depreciation and amortization | ( | ) | ( | ) | ( | ) | |||||
Capital projects in progress | |||||||||||
$ | $ | $ | |||||||||
At June 30, | At December 31, | ||||||||||
(in thousands) | 2019 | 2018 | 2018 | ||||||||
North America | $ | $ | $ | ||||||||
Europe | |||||||||||
Asia/Pacific | |||||||||||
Total | $ | $ | $ | ||||||||
At June 30, 2019 | |||||||||||
Gross | Net | ||||||||||
Carrying | Accumulated | Carrying | |||||||||
(in thousands) | Amount | Amortization | Amount | ||||||||
North America | $ | $ | ( | ) | $ | ||||||
Europe | ( | ) | |||||||||
Total | $ | $ | ( | ) | $ | ||||||
At June 30, 2018 | |||||||||||
Gross | Net | ||||||||||
(in thousands) | Carrying Amount | Accumulated Amortization | Carrying Amount | ||||||||
North America | $ | $ | ( | ) | $ | ||||||
Europe | ( | ) | |||||||||
Total | $ | $ | ( | ) | $ | ||||||
At December 31, 2018 | |||||||||||
Gross | Net | ||||||||||
(in thousands) | Carrying Amount | Accumulated Amortization | Carrying Amount | ||||||||
North America | $ | $ | ( | ) | $ | ||||||
Europe | ( | ) | |||||||||
Total | $ | $ | ( | ) | $ | ||||||
(in thousands) | |||
Remaining six months of 2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
2024 | |||
Thereafter | |||
$ | |||
Intangible | |||||||
(in thousands) | Goodwill | Assets | |||||
Balance at December 31, 2018 | $ | $ | |||||
Acquisitions | |||||||
Amortization | — | ( | ) | ||||
Foreign exchange | |||||||
Balance at June 30, 2019 | $ | $ | |||||
Condensed Consolidated Balance Sheets Line Item | Six Months Ended June 30, | |||
(in thousands) | 2019 | |||
Operating leases | ||||
Assets | ||||
Operating leases | Operating lease right-of-use assets | $ | ||
Liabilities | ||||
Operating - current | Accrued expenses and other current liabilities | $ | ||
Operating - noncurrent | Operating lease liabilities | |||
Total operating lease liabilities | $ | |||
Finance leases | ||||
Assets | ||||
Property and equipment, gross | Property, plant and equipment, net | $ | ||
Accumulated amortization | Property, plant and equipment, net | ( | ) | |
Property and equipment, net | Property, plant and equipment, net | $ | ||
Liabilities | ||||
Other current liabilities | Accrued expenses and other current liabilities | $ | ||
Other long-term liabilities | Deferred income tax and other long-term liabilities | |||
Total finance lease liabilities | $ | |||
Condensed Consolidated Statements of Operations Line Item | Three Months Ended June 30, | Six Months Ended June 30, | |||||
(in thousands) | 2019 | 2019 | |||||
Operating lease cost | General administrative expenses and cost of sales | $ | $ | ||||
Finance lease cost: | |||||||
Amortization of right-of-use assets | General administrative expenses | $ | |||||
Interest on lease liabilities | Interest expense, net | ||||||
Total finance lease | $ | $ | |||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
(in thousands) | 2019 | 2019 | |||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||
Operating cash flows for operating leases | $ | $ | |||||
Finance cash flows for finance leases | |||||||
Operating right-of-use assets obtained in exchange for lease obligations during the current period | |||||||
(in thousands) | Operating Leases | Finance Leases | |||||
Remaining six months of 2019 | $ | $ | |||||
2020 | |||||||
2021 | |||||||
2022 | |||||||
2023 | |||||||
Thereafter | |||||||
Total lease payments | |||||||
Less: Present value discount | ( | ) | ( | ) | |||
Total lease liabilities | $ | $ | |||||
Weighted-average remaining lease terms (in years): | ||
Operating leases | ||
Finance leases | ||
Weighted-average discount rate: | ||
Operating leases | % | |
Finance leases | % | |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net Sales | |||||||||||||||
North America | $ | $ | $ | $ | |||||||||||
Europe | |||||||||||||||
Asia/Pacific | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
Sales to Other Segments* | |||||||||||||||
North America | $ | $ | $ | $ | |||||||||||
Europe | |||||||||||||||
Asia/Pacific | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
Income (Loss) from Operations** | |||||||||||||||
North America | $ | $ | $ | $ | |||||||||||
Europe | |||||||||||||||
Asia/Pacific | ( | ) | ( | ) | ( | ) | |||||||||
Administrative and all other | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total | $ | $ | $ | $ | |||||||||||
At | |||||||||||
At June 30, | December 31, | ||||||||||
(in thousands) | 2019 | 2018 | 2018 | ||||||||
Total Assets | |||||||||||
North America | $ | $ | $ | ||||||||
Europe | |||||||||||
Asia/Pacific | |||||||||||
Administrative and all other | ( | ) | ( | ) | ( | ) | |||||
Total | $ | $ | $ | ||||||||
Three Months Ended June 30, | |||||||
(in thousands) | 2019 | 2018 | |||||
Wood construction products | $ | $ | |||||
Concrete construction products | |||||||
Other | |||||||
Total | $ | $ | |||||
• | First, a continued focus on organic growth with a goal to achieve a net sales compounded annual growth rate of approximately 8% (from $860.7 million reported in fiscal 2016) through fiscal 2020. |
• | Second, rationalizing our cost structure to improve company-wide profitability by reducing total operating expenses as a percentage of net sales from 31.8% in fiscal 2016 to a range of 26.0% to 27.0% by fiscal 2020. We expect to achieve this initiative, aside from top-line growth, through cost reduction measures in Europe and our concrete product line, zero-based budgeting for certain expense categories, a SKU reduction program to right-size our product offering and a commitment to remaining headcount neutral (except in the production and sales departments to meet demands from sales growth). Offsetting these reductions will be the Company’s ongoing investment in its software initiatives as well as the expenses associated with our ongoing SAP implementation, which includes increasing headcount when necessary. |
• | Third, improving our working capital management and overall balance sheet discipline primarily through the reduction of inventory levels in connection with the implementation of Lean principles in many of our factories. This included improving our inventory turn rate from two-times a year for fiscal 2016 to four-times by the end of 2020. With these efforts, we believed we could achieve an additional 25% to 30% reduction of our raw materials and finished goods inventory through 2020 without impacting day-to-day production and shipping procedures. |
• | we pro-actively increased our anchor inventory in anticipation of potential tariffs on our mechanical anchor finished goods from China, as well as in anticipation of additional demand related to The Home Depot, Inc. ("Home Depot") rollout; |
• | we bought an additional allotment of steel in order to mitigate the potential impact of availability; and |
• | we have inventory levels to ensure we can meet our customer needs as we continue our SAP roll-out. |
(1 | ) | When referred to above, the Company’s return on invested capital (“ROIC”) for a fiscal period is calculated based on (i) the net income of the last four quarters as presented in the Company’s condensed consolidated statements of operations prepared pursuant to generally accepted accounting principles in the U.S. (“GAAP”), as divided by (ii) the average of the sum of the total stockholders’ equity and the total long-term liabilities at the beginning of and at the end of such period, as presented in the Company’s consolidated balance sheets prepared pursuant to GAAP for that applicable year. For the purposes of comparability in this calculation, total long-term liabilities excludes long-term operating lease liabilities, which were recognized as of June 30, 2019 as a result of the January 1, 2019 adoption of ASU 2016-02. As such, the Company’s ROIC, a ratio or statistical measure, is calculated using exclusively financial measures presented in accordance with GAAP. | |
• | 2019 full-year gross margin is estimated to be in the range of approximately 43.5% to 44.0%. |
• | 2019 full-year operating expenses, as a percentage of net sales, is estimated to be between approximately 27.5% and 28.5%. |
• | 2019 full-year effective tax rate will be between approximately 25% to 27% including both federal and state income tax rates. |
Three Months Ended | Three Months Ended | ||||||||||||||||||||||
Increase (Decrease) in Operating Segment | |||||||||||||||||||||||
June 30, | North | Asia/ | Admin & | June 30, | |||||||||||||||||||
(in thousands) | 2018 | America | Europe | Pacific | All Other | 2019 | |||||||||||||||||
Net sales | $ | 308,007 | $ | (749 | ) | $ | (2,136 | ) | $ | (269 | ) | $ | — | $ | 304,853 | ||||||||
Cost of sales | 167,442 | 5,984 | (798 | ) | (1,080 | ) | (874 | ) | 170,674 | ||||||||||||||
Gross profit | 140,565 | (6,733 | ) | (1,338 | ) | 811 | 874 | 134,179 | |||||||||||||||
Research and development and other engineering expense | 11,249 | (22 | ) | (92 | ) | (92 | ) | 12 | 11,055 | ||||||||||||||
Selling expense | 29,201 | 110 | (614 | ) | (42 | ) | 32 | 28,687 | |||||||||||||||
General and administrative expense | 38,807 | 3,748 | (1,894 | ) | 7 | 677 | 41,345 | ||||||||||||||||
79,257 | 3,836 | (2,600 | ) | (127 | ) | 721 | 81,087 | ||||||||||||||||
Gain on sale of assets | (125 | ) | (678 | ) | 225 | 17 | — | (561 | ) | ||||||||||||||
Income from operations | 61,433 | (9,891 | ) | 1,037 | 921 | 153 | 53,653 | ||||||||||||||||
Interest expense, net and other | (871 | ) | 472 | 687 | (345 | ) | 204 | 147 | |||||||||||||||
Income before income taxes | 60,562 | (9,419 | ) | 1,724 | 576 | 357 | 53,800 | ||||||||||||||||
Provision for income taxes | 16,476 | (2,968 | ) | (570 | ) | 623 | 662 | 14,223 | |||||||||||||||
Net income | $ | 44,086 | $ | (6,451 | ) | $ | 2,294 | $ | (47 | ) | $ | (305 | ) | $ | 39,577 | ||||||||
North | Asia/ | ||||||||||||||
(in thousands) | America | Europe | Pacific | Total | |||||||||||
Three months ended | |||||||||||||||
June 30, 2018 | $ | 259,822 | $ | 45,784 | $ | 2,401 | $ | 308,007 | |||||||
June 30, 2019 | 259,073 | 43,648 | 2,132 | 304,853 | |||||||||||
Decrease | $ | (749 | ) | $ | (2,136 | ) | $ | (269 | ) | $ | (3,154 | ) | |||
Percentage decrease | (0.3 | )% | (4.7 | )% | (11.2 | )% | (1.0 | )% | |||||||
North America | Europe | Asia/ Pacific | Total | ||||||||
Percentage of total 2018 net sales | 84 | % | 15 | % | 1 | % | 100 | % | |||
Percentage of total 2019 net sales | 85 | % | 14 | % | 1 | % | 100 | % | |||
North | Asia/ | Admin & | |||||||||||||||||
(in thousands) | America | Europe | Pacific | All Other | Total | ||||||||||||||
Three months ended | |||||||||||||||||||
June 30, 2018 | $ | 123,639 | $ | 17,480 | $ | 343 | $ | (897 | ) | $ | 140,565 | ||||||||
June 30, 2019 | 116,906 | 16,142 | 1,154 | (23 | ) | 134,179 | |||||||||||||
Increase (decrease) | $ | (6,733 | ) | $ | (1,338 | ) | $ | 811 | $ | 874 | $ | (6,386 | ) | ||||||
Percentage decrease | (5.4 | )% | (7.7 | )% | * | * | (4.5 | )% | |||||||||||
North America | Europe | Asia/ Pacific | Admin & All Other | Total | |||||||||
2018 gross profit percentage | 47.6 | % | 38.2 | % | 14.3 | % | * | 45.6 | % | ||||
2019 gross profit percentage | 45.1 | % | 37.0 | % | 54.1 | % | * | 44.0 | % | ||||
• | Net sales decreased 0.3%, primarily due to decreases in sales volumes, partly offset by increases in average net sales prices. Canada's net sales were negatively affected by foreign currency translation. |
• | Gross profit as a percentage of net sales decreased to 45.1% from 47.6% primarily due to increases in material, factory overhead and tooling costs (on lower production) and labor costs as a percentage of net sales, partly offset by lower shipping expense and factory overhead and tooling costs, all as a percentage of net sales. |
• | Selling expense increased slightly, primarily due to increases of $1.0 million in personnel costs and $0.9 million in professional fees, partly offset by decreases of $1.3 million in cash profit sharing and sales commissions, $0.2 million in advertising and promotional expenses and $0.3 million in donation expense |
• | General and administrative expense increased $3.7 million, primarily due to increases of $4.8 million in consulting and professional fees, $1.0 million in personnel costs, $0.7 million in software licensing, subscription and maintenance fees, partly offset by decreases of $1.1 million in cash profit sharing expense, $1.0 million in depreciation expense $0.4 million in stock-based compensation. Included in general and administrative expense are SAP related costs of $2.5 million. This is an increase of $0.6 million from the prior quarter. |
• | Income from operations decreased $9.9 million, primarily due to decreased gross profit and increased general and administrative expenses. |
• | Net sales decreased 4.7%, primarily due to approximately $2.8 million of negative foreign currency translations resulting from European currencies weakening against the United States dollar. In local currency, Europe net sales increased primarily due to increases in average product prices. |
• | Gross profit as a percentage of net sales decreased to 37.0% from 38.2%, primarily due to increases in factory overhead and tooling costs (on lower production), material and labor costs, all as a percentage of net sales |
• | Selling expense decreased $0.6 million, primarily due to decreases of $0.3 million in advertising and promotional expenses and $0.2 million in cash profit sharing and sales commissions. |
• | General and administrative expense decreased $1.9 million, primarily due decreases of $1.6 million in severance expense, $0.4 million in personnel costs and $0.2 million in cash profit sharing expense, partly by an increase of $0.4 million in consulting fees. Included in general and administrative expense are SAP related costs of $0.9 million, which increased $0.4 million from the prior quarter. |
• | Income from operations increased $1.0 million, primarily due to lower operating expenses. |
• | For information about the Company's Asia/Pacific segment, please refer to the tables above setting forth changes in our operating results for the three months ended June 30, 2019 and 2018, respectively. |
• | General and administrative expense increased $0.6 million, primarily due to increases of $0.9 million in depreciation expense and $0.3 million in personnel cost, partly offset by a decrease of $0.6 million in cash profit sharing expense. |
Six Months Ended | Increase (Decrease) in Operating Segment | Six Months Ended | |||||||||||||||||||||
June 30, | North | Asia/ | Admin & | June 30, | |||||||||||||||||||
(in thousands) | 2018 | America | Europe | Pacific | All Other | 2019 | |||||||||||||||||
Net sales | 552,786 | $ | 14,470 | $ | (2,649 | ) | $ | (510 | ) | $ | — | $ | 564,097 | ||||||||||
Cost of sales | 304,599 | 19,544 | (1,298 | ) | (1,453 | ) | (1,728 | ) | 319,664 | ||||||||||||||
Gross profit | 248,187 | (5,074 | ) | (1,351 | ) | 943 | 1,728 | 244,433 | |||||||||||||||
Research and development and other engineering expense | 22,399 | 1,267 | (113 | ) | (259 | ) | 22 | 23,316 | |||||||||||||||
Selling expense | 56,774 | 1,231 | (1,147 | ) | (116 | ) | 57 | 56,799 | |||||||||||||||
General and administrative expense | 76,206 | 5,206 | (2,570 | ) | (69 | ) | 2,120 | 80,893 | |||||||||||||||
155,379 | 7,704 | (3,830 | ) | (444 | ) | 2,199 | 161,008 | ||||||||||||||||
Gain on sale of assets | (1,309 | ) | 803 | 237 | 18 | — | (251 | ) | |||||||||||||||
Income from operations | 94,117 | (13,581 | ) | 2,242 | 1,369 | (471 | ) | 83,676 | |||||||||||||||
Interest expense, net and other | (873 | ) | 197 | 569 | (979 | ) | 470 | (616 | ) | ||||||||||||||
Income before income taxes | 93,244 | (13,384 | ) | 2,811 | 390 | (1 | ) | 83,060 | |||||||||||||||
Provision for income taxes | 23,729 | (4,160 | ) | (87 | ) | 493 | 846 | 20,821 | |||||||||||||||
Net income | $ | 69,515 | $ | (9,224 | ) | $ | 2,898 | $ | (103 | ) | $ | (847 | ) | $ | 62,239 | ||||||||
North | Asia/ | ||||||||||||||
(in thousands) | America | Europe | Pacific | Total | |||||||||||
Six Months Ended | |||||||||||||||
June 30, 2018 | 466,034 | 82,077 | 4,675 | $ | 552,786 | ||||||||||
June 30, 2019 | 480,504 | 79,428 | 4,165 | 564,097 | |||||||||||
Increase (decrease) | $ | 14,470 | $ | (2,649 | ) | $ | (510 | ) | $ | 11,311 | |||||
Percentage increase (decrease) | 3 | % | (3 | )% | (11 | )% | 2 | % | |||||||
North America | Europe | Asia/ Pacific | Total | ||||||||
Percentage of total 2018 net sales | 84 | % | 15 | % | 1 | % | 100 | % | |||
Percentage of total 2019 net sales | 85 | % | 14 | % | 1 | % | 100 | % | |||
North | Asia/ | Admin & | |||||||||||||||||
(in thousands) | America | Europe | Pacific | All Other | Total | ||||||||||||||
Six Months Ended | |||||||||||||||||||
June 30, 2018 | 220,377 | 29,048 | 530 | (1,768 | ) | $ | 248,187 | ||||||||||||
June 30, 2019 | 215,303 | 27,697 | 1,473 | (40 | ) | 244,433 | |||||||||||||
Increase (decrease) | $ | (5,074 | ) | $ | (1,351 | ) | $ | 943 | $ | 1,728 | $ | (3,754 | ) | ||||||
Percentage increase (decrease) | (2 | )% | (5 | )% | * | * | (2 | )% | |||||||||||
(in thousand) | North America | Europe | Asia/ Pacific | Admin & All Other | Total | ||||||||
2018 gross profit percentage | 47.3 | % | 35.4 | % | 11.3 | % | * | 44.9 | % | ||||
2019 gross profit percentage | 44.8 | % | 34.9 | % | 35.4 | % | * | 43.3 | % | ||||
• | Net sales increased 3.1%, primarily due to increases in average net sales prices. Canada net sales were negatively affected by approximately $1.0 million due to foreign currency translation. In local currency, Canada net sales increased primarily due to increases in average net sales unit prices. |
• | Gross profit margin decreased to 44.8% from 47.3%, primarily due to increased material and shipping costs as a percentage of nets sales, partly offset by decreased factory and overhead costs as a percentage of net sales on increased production. |
• | Research and development and engineering expense increased $1.3 million primarily due to an increase of $1.5 million in personnel costs, partly offset by a decrease of $0.5 million in cash profit sharing expense. |
• | General and administrative expense increased $5.2 million, primarily due to increases of $5.9 million in consulting and professional fees, partly offset by decreases of $0.4 million in cash profit sharing expense. Included in general and administrative expense are costs associated with the SAP implementation of $4.5 million, an increase of $0.2 million over the first six-months of 2018. These expenses were primarily professional fees. |
• | Gain on sale of assets - In 2016, an eminent domain claim was exercised on land owned by the Company with an offer for the taking of the land. The Company challenged the offer, which resulted in the Company receiving an additional $1.0 million in the first quarter of 2018 for the taking of the land. |
• | Income from operations decreased $13.6 million, mostly due to increased operating expenses and decreased gross profits. |
• | Net sales decreased 3.2%, primarily due to approximately $5.8 million of negative foreign currency translations resulting from European currencies weakening against the United States dollar. In local currency, Europe net sales increased primarily due to increases in average product prices. |
• | Gross profit margins decreased to 34.9% from 35.4%, primarily due to increased material costs as a percentage of net sales. |
• | General and administrative expense decreased $2.6 million, primarily due to decreases of $1.7 million in severance costs and $0.8 million in personnel costs. |
• | Income from operations increased $2.2 million, primarily due to lower general and administrative expense. Included in general and administrative expense are costs associated with the SAP implementation of $1.2 million for both the first six-months of 2019 and 2018. These expenses were primarily professional fees. |
• | For information about the Company's Asia/Pacific segment, please refer to the tables above setting forth changes in our operating results for the six months ended June 30, 2019 and 2018, respectively. |
• | General and administrative expense increased $2.1 million, primarily due to increases of $1.8 million in depreciation expense and $0.7 million in personnel cost, partly offset by a decrease of $0.6 million in cash profit sharing expense. |
At June 30, | At December 31, | At June 30, | ||||||||||
(in thousands) | 2019 | 2018 | 2018 | |||||||||
Cash and cash equivalents | $ | 141,731 | $ | 160,180 | $ | 155,035 | ||||||
Property, plant and equipment, net | 252,710 | 254,597 | 269,127 | |||||||||
Goodwill, intangible assets and equity investment | 157,801 | 157,139 | 165,687 | |||||||||
Working capital | 456,709 | 447,949 | 472,174 | |||||||||
Six Months Ended June 30, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Net cash provided by (used in): | ||||||||
Operating activities | $ | 53,581 | $ | 55,364 | ||||
Investing activities | (16,258 | ) | (17,023 | ) | ||||
Financing activities | (55,609 | ) | (49,838 | ) | ||||
• | Our asset acquisitions, net of cash acquired and proceeds from sales of business, in 2017, 2018 and the six months ended June 30, 2019 were $18.5 million, $2.0 million and $3.5 million, respectively. |
• | Our capital spending in 2017, 2018 and the six months ended June 30, 2019 was $58.0 million, $29.3 million and $15.3 million, respectively, which was primarily used for real estate improvements, machinery and equipment purchases and software in development. Based on current information and subject to future events and circumstances, we estimate that our full-year 2019 capital spending will be approximately $30 million to $35 million, including $7 to $10 million on maintenance-type capital expenditures, assuming all such projects will be completed by the end of 2019. Based on current information and subject to future events and circumstances, we estimate that our full-year 2019 depreciation and amortization expense will be approximately $39 million to $41 million, of which approximately $33 million to $35 million is related to depreciation. |
• | On April 26, 2019, the Company’s Board of Directors raised the quarterly cash dividend by 4.5% to $0.23 per share. On July 25, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.23 per share, estimated to be $10.2 million in total. The dividend will be payable on October 24, 2019, to the Company's stockholders of record on October 3, 2019. |
• | During 2019, the Company purchased 505,448 shares of the Company's common stock on the open market at an average price of $59.35 per share, for a total of $30.0 million. In total, as illustrated in the table below, the Company has repurchased over six million shares of the Company's common stock, which represents approximately 12.6% of our shares of common stock outstanding at the beginning of 2015. Including dividends, we have returned cash of $469.8 million, which represents 85.5% of our total cash flow from operations during the same period. Given our confidence in our business and our expectation that the 2020 Plan will drive improved operational performance and higher return on invested capital, we expect to continue to be active as it relates to share repurchase activity. |
(in thousands) | Number of Shares Repurchased | Cash Paid for Share Repurchases | Cash paid for Dividends | Total | ||||||||||
January 1 - June 30, 2019 | 505 | $ | 30,000 | $ | 19,726 | $ | 49,726 | |||||||
January 1 - December 31, 2018 | 1,955 | 110,540 | 39,891 | 150,431 | ||||||||||
January 1 - December 31, 2017 | 1,138 | 70,000 | 36,981 | 106,981 | ||||||||||
January 1 - December 31, 2016 | 1,244 | 53,502 | 32,711 | 86,213 | ||||||||||
January 1 - December 31, 2015 | 1,339 | 47,144 | 29,352 | 76,496 | ||||||||||
Total | 6,181 | $ | 311,186 | $ | 158,661 | $ | 469,847 | |||||||
• | As of June 30, 2019, approximately $70.0 million remained available under the $100.0 million repurchase authorization, which expires December 31, 2019. |
3.1 |
3.2 |
31.1 |
31.2 |
32 |
101 | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 formatted in Extensible Business Reporting Language (XBRL) are filed herewith: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Earnings and Comprehensive Income, (iii) the Condensed Consolidated Statements of Stockholders’ Equity, (iv) the Condensed Consolidated Statements of Cash Flows and (v) the Notes to Condensed Consolidated Financial Statements. |
Simpson Manufacturing Co., Inc. | ||||
(Registrant) | ||||
DATE: | August 6, 2019 | By /s/Brian J. Magstadt | ||
Brian J. Magstadt | ||||
Chief Financial Officer | ||||
(principal accounting and financial officer) | ||||
1. | I have reviewed this quarterly report on Form 10-Q of Simpson Manufacturing Co., Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
DATE: | August 6, 2019 | By /s/Karen Colonias | ||
Karen Colonias | ||||
Chief Executive Officer | ||||
1. | I have reviewed this quarterly report on Form 10-Q of Simpson Manufacturing Co., Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
DATE: | August 6, 2019 | By /s/Brian J. Magstadt | ||
Brian J. Magstadt | ||||
Chief Financial Officer | ||||
DATE: | August 6, 2019 | By /s/Karen Colonias | ||
Karen Colonias | ||||
Chief Executive Officer | ||||
By /s/Brian J. Magstadt | ||||
Brian J. Magstadt | ||||
Chief Financial Officer | ||||
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Income Statement [Abstract] | ||||
| Net sales | $ 304,853 | $ 308,007 | $ 564,097 | $ 552,786 |
| Cost of sales | 170,674 | 167,442 | 319,664 | 304,599 |
| Gross profit | 134,179 | 140,565 | 244,433 | 248,187 |
| Operating expenses: | ||||
| Research and development and other engineering | 11,055 | 11,249 | 23,316 | 22,399 |
| Selling | 28,687 | 29,201 | 56,799 | 56,774 |
| General and administrative | 41,345 | 38,807 | 80,893 | 76,206 |
| Total operating expenses | 81,087 | 79,257 | 161,008 | 155,379 |
| Net gain on disposal of assets | (561) | (125) | (251) | (1,309) |
| Income from operations | 53,653 | 61,433 | 83,676 | 94,117 |
| Interest income (expense), net and other | 147 | (871) | (616) | (873) |
| Income before taxes | 53,800 | 60,562 | 83,060 | 93,244 |
| Provision for income taxes | 14,223 | 16,476 | 20,821 | 23,729 |
| Net income | 39,577 | 44,086 | 62,239 | 69,515 |
| Translation adjustment | (1,363) | 11,442 | (28) | 7,583 |
| Unamortized pension adjustments | (100) | 0 | (100) | 0 |
| Comprehensive net income | $ 40,840 | $ 32,644 | $ 62,167 | $ 61,932 |
| Earnings per common share: | ||||
| Basic | $ 0.89 | $ 0.95 | $ 1.39 | $ 1.50 |
| Diluted | $ 0.88 | $ 0.94 | $ 1.38 | $ 1.48 |
| Number of shares outstanding | ||||
| Basic | 44,671 | 46,323 | 44,772 | 46,468 |
| Diluted | 44,972 | 46,677 | 45,089 | 46,842 |
| Cash dividends declared per common share (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.45 | $ 0.43 |
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
6 Months Ended | |
|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Statement of Stockholders' Equity [Abstract] | ||
| Cash dividends declared per common share (in dollars per share) | $ 0.45 | $ 0.43 |
| Common stock issued per share for stock bonus (in USD per share) | $ 54.31 | $ 57.41 |
Basis of Presentation |
6 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Basis of Presentation | Basis of Presentation Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Simpson Manufacturing Co., Inc. and its subsidiaries (collectively, the “Company”). Investments in 50% or less owned entities are accounted for using either cost or the equity method. All significant intercompany transactions have been eliminated. Interim Reporting Period The accompanying unaudited quarterly condensed consolidated financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These interim statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018. The unaudited quarterly condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial information set forth therein, in accordance with GAAP. Certain prior period amounts in the condensed consolidated financial statements and the accompanying notes have been reclassified to conform to the current period’s presentation. The year-end condensed consolidated balance sheet data provided herein were derived from audited financial statements, but do not include all disclosures required by GAAP. The Company’s quarterly results fluctuate. As a result, the Company believes the results of operations for this interim period presented are not indicative of the results to be expected for any future periods. The Company changed its presentation of its consolidated statement of operations to display non-operating activities, including foreign exchange gain (loss), and certain other income or expenses as a separate line item below income from operations. Foreign exchange gain (loss), and other was previously included in general and administrative expenses and in income from operations. The change did not affect income before taxes and net income as previously presented for the three months and six months ended June 30, 2018. Revenue Recognition Generally, the Company's revenue contract with a customer exists when the goods are shipped, services are rendered; and its related invoice is generated. The duration of the contract does not extend beyond the promised goods or services already transferred. The transaction price of each distinct promised product or service specified in the invoice is based on its relative stated standalone selling price. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer at a point in time. The Company’s shipping terms provide the primary indicator of the transfer of control. The Company's general shipping terms are F.O.B. shipping point, where title and risk and rewards of ownership transfer at the point when the products leave the Company's warehouse. The Company recognizes revenue based on the consideration specified in the invoice with a customer, excluding any sales incentives, discounts, and amounts collected on behalf of third parties (i.e., governmental tax authorities). Based on historical experience with the customer, the customer's purchasing pattern and its significant experience selling products, the Company concluded that a significant reversal in the cumulative amount of revenue recognized will not occur when the uncertainty (if any) is resolved (that is, when the total amount of purchases is known). Refer to Note 2 for additional information. Net Income Per Common Share Net income per common share are calculated based on the weighted-average number of the Company's common stock outstanding during the period. Potentially dilutive securities are included in the diluted per-share calculations using the treasury stock method for all periods when the effect is dilutive. Accounting for Leases The Company has operating and finance leases for certain facilities, equipment, autos and data centers. As an accounting policy for short-term leases, the Company elected to not recognize the right-of-use asset and liability, if, at the commencement date, the lease (1) has a term of 12 months or less and (2) does not include renewal and purchase options that the Company is reasonably certain to exercise. Monthly payments on short-term leases are recognized on the straight-line basis over the full lease term. Accounting for Stock-Based Compensation The Company recognizes stock-based expense related to restricted stock unit awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally a vesting term of four years. Stock-based expense related to performance share grants are measured based on the grant date fair value and expensed on a graded basis over the service periods of the awards, which is generally a performance period of three years. The assumptions used to calculate the fair value of options or restricted stock units are evaluated and revised, as necessary, to reflect market conditions and the Company's experience. Fair Value of Financial Instruments Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified under a three-tier fair valuation hierarchy based on the observability of the inputs available in the market: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As of June 30, 2019 and 2018, the Company’s investments included in cash equivalents consisted of only money market funds, which are the Company’s primary financial instruments and carried at cost, approximating fair value, based on Level 1 inputs. The balance of the Company’s primary financial instruments as of June 30, 2019 and 2018 was $0.1 million and $6.9 million, respectively. The carrying amounts of trade accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. The fair value of the Company’s contingent consideration related to acquisitions is classified as Level 3 within the fair value hierarchy as it is based on unobserved inputs such as management estimates and entity-specific assumptions and is evaluated on an ongoing basis. Income Taxes The Company uses an estimated annual tax rate to measure the tax benefit or tax expense recognized in each interim period. Acquisitions Under the business combinations topic ASC 805, the Company accounts for acquisitions as business combinations and ascribes acquisition-date fair values to the acquired assets and assumed liabilities. Provisional fair value measurements are made at the time of the acquisition. Adjustments to those measurements may be made in subsequent periods, up to one year from the acquisition date, as information necessary to complete the analysis is obtained. The fair value of intangible assets are generally based on Level 3 inputs. Recently Adopted Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). The core requirement of ASU 2016-02 is to recognize assets and liabilities that arise from leases, including those leases classified as operating leases. The amendments require a lessee to recognize a liability to make lease payments (the lease liability) and a right-of-use asset ("ROU") representing its right to use the underlying asset for the lease term in the statement of financial position. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. On January 1, 2019, the Company adopted ASU 2016-02 using the optional transition method. The Company elected and applied a few practical transition expedients including, not reassessing whether any expired or existing contracts are or contain leases; not reassessing the lease classification for any expired or existing leases and not reassessing initial direct costs for any existing leases. The Company has operating and finance leases for certain facilities, equipment, autos and data centers. The adoption of ASU 2016-02 resulted in the recognition of ROU assets and lease liabilities of approximately $34.3 million and $35.1 million, respectively on January 1, 2019. The adoption had no material impact on the condensed consolidated statement of operations or cash flows. See Note 10. |
Revenue from Contract with Customer Revenue from Contract with Customer |
6 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Revenue from Contract with Customer [Abstract] | |
| Revenue from Contract with Customer | Revenue from Contracts with Customers Disaggregated revenue The Company disaggregates net sales into the following major product groups as described in the footnote for segment information included in these interim financial statements under Note 13. Wood Construction Products Revenue. Wood construction products represented 84% and 86% of total net sales in the six months ended June 30, 2019 and 2018, respectively. Concrete Construction Products Revenue. Concrete construction products represented 16% and 14% of total net sales in the six months ended June 30, 2019 and 2018, respectively. Customer acceptance criteria. Generally, there are no customer acceptance criteria included in the Company's standard sales agreement with customers. When an arrangement with the customer does not meet the criteria to be accounted for as a revenue contract under the standard, the Company recognizes revenue in the amount of nonrefundable consideration received when the Company has transferred control of the goods or services and has stopped transferring (and has no obligation to transfer) additional goods or services. The Company offers certain customers discounts for paying invoices ahead of the due date, which are generally between 30 to 60 days after the issue date. Other revenue. Service sales, representing after-market repair and maintenance, engineering activities and software license sales and services were less than 1.0% of net sales and recognized as the services are completed or the software products and services are delivered. Services may be sold separately or in bundled packages. The typical contract length for a service is generally less than one year. For bundled packages, the Company accounts for individual services separately when they are distinct. A distinct service is separately identifiable from other items in the bundled package if a customer can benefit from the service on its own or with other resources that are readily available to the customer. The consideration (including any discounts) is allocated between separate services in a bundle based on their stand-alone selling prices. The stand-alone selling prices are determined based on the prices at which the Company separately sells the services. Reconciliation of contract balances Contract assets are the rights to consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditional on something other than the passage of time. Contract liabilities are recorded for any services billed to customers and not yet recognizable if the contract period has commenced or for the amount collected from customers in advance of the contract period commencing. As of June 30, 2019, the Company had no contract assets or contract liabilities from contracts with customers.
|
Net income Per Share (Notes) |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Income Per Share | 3. Net Income Per Share The following table reconciles basic net income per the Company's common stock to diluted net income per share for the three and six months ended June 30, 2019 and 2018, respectively:
|
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Stockholders' Equity Stockholders' Equity |
6 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Equity [Abstract] | |
| Stockholders' Equity | 4. Stockholders' Equity Share Repurchases For the six months ended June 30,2019, the Company repurchased 505,448 shares of the Company's common stock in the open market at an average price of $59.35 per share, for a total of $30.0 million. As of June 30, 2019, approximately $70.0 million remains available for repurchase under the previously announced $100.0 million share repurchase authorization (which expires at the end of 2019).
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Stock-Based Compensation Stock-Based Compensation |
6 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
| Stock-Based Compensation | Stock-Based Compensation The Company allocates stock-based compensation expense related to equity plans for employees and non-employee directors among cost of sales, research and development and other engineering expense, selling expense, or general and administrative expense based on the job functions performed by the employees to whom the stock-based compensation is awarded. The Company recognized stock-based compensation expense related to its equity plans for employees of $2.5 million and $2.9 million for the three months ended June 30, 2019 and 2018, respectively, and $6.6 million and $6.0 million for the six months ended June 30, 2019 and 2018, respectively. Stock-based compensation cost capitalized in inventory was not material for all periods presented. During the six months ended June 30, 2019, the Company granted 208,231 restricted stock units ("RSUs") to the Company's employees, including officers, and eight non-employee directors at an estimated weighted average fair value of $57.73 per share based on the closing price (adjusted for the present value of dividends) of the Company's common stock on the grant date. The RSUs granted to the Company's employees may be time-based, performance-based or time- and performance-based. Certain of the performance-based RSUs are granted to officers and key employees, where the number of performance-based awards to be issued is based on the achievement of certain Company performance criteria established in the RSU agreement over a cumulative three year period. These awards cliff vest after three years. In addition, these same officers and key employees also receive time-based RSUs, which vest pursuant to a three-year graded vesting schedule. Time- and performance based RSUs that are granted to the Company's employees excluding officers and certain key employees, vest ratably over the four year life of the award, and require the underlying shares of the Company's common stock to be subject to a performance-based adjustment during the first year of the award. |
Trade Accounts Receivable, Net |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trade Accounts Receivable, Net | Trade Accounts Receivable, Net Trade accounts receivable at the dates indicated consisted of the following:
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Inventories |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventories | Inventories Inventories at the dates indicated consisted of the following:
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Property, Plant and Equipment, Net |
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| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment, net, at the dates indicated consisted of the following:
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill at the dates indicated was as follows:
Intangible assets, net, at the dates indicated were as follows:
Intangible assets consist of definite-lived and indefinite-lived assets. Definite-lived intangible assets include customer relationships, patents, unpatented technology, and non-compete agreements. Amortization expense of definite-lived intangible assets was $1.3 million for each of the three-month periods ended June 30, 2019 and 2018, respectively, and was $2.7 million and $2.6 for the six months ended June 30, 2019 and 2018, respectively. The weighted-average amortization period for all amortizable intangibles on a combined basis is 5.4 years. The only indefinite-lived intangible asset, consisting of a trade name, totaled $0.6 million at June 30, 2019. At June 30, 2019, the estimated future amortization of definite-lived intangible assets was as follows:
The changes in the carrying amount of goodwill and intangible assets for the six months ended June 30, 2019, were as follows:
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Leases Leases |
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| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | 10. Leases On January 1, 2019, the Company adopted ASU 2016-02 using the optional transition method. The Company has operating leases for certain facilities, equipment and autos. The existing operating leases expire at various dates through 2023, some of which include options to extend the leases for up to 5 years. The Company measured the lease liability at the present value of the lease payments to be made over the lease term. The lease payments are discounted using the Company's incremental borrowing rate. The Company measured the right-of-use ("ROU") assets at the amount at which the lease liability is recognized plus initial direct costs incurred or prepayment amounts. The ROU assets are amortized on a straight-line basis over the lease term. The following table provides a summary of leases included on the condensed consolidated balance sheets as of June 30, 2019:
The components of lease expense were as follows:
Other information Supplemental cash flow information related to leases as follows:
The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2019:
The following table summarizes the Company's lease terms and discount rates as of June 30, 2019:
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| Leases | Leases On January 1, 2019, the Company adopted ASU 2016-02 using the optional transition method. The Company has operating leases for certain facilities, equipment and autos. The existing operating leases expire at various dates through 2023, some of which include options to extend the leases for up to 5 years. The Company measured the lease liability at the present value of the lease payments to be made over the lease term. The lease payments are discounted using the Company's incremental borrowing rate. The Company measured the right-of-use ("ROU") assets at the amount at which the lease liability is recognized plus initial direct costs incurred or prepayment amounts. The ROU assets are amortized on a straight-line basis over the lease term. The following table provides a summary of leases included on the condensed consolidated balance sheets as of June 30, 2019:
The components of lease expense were as follows:
Other information Supplemental cash flow information related to leases as follows:
The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2019:
The following table summarizes the Company's lease terms and discount rates as of June 30, 2019:
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Debt Debt |
6 Months Ended |
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Jun. 30, 2019 | |
| Debt Disclosure [Abstract] | |
| Debt | Debt Credit Facilities The Company has revolving lines of credit with various banks in the United States and Europe. Total available credit at June 30, 2019, was $302.8 million including revolving credit lines and an irrevocable standby letter of credit in support of various insurance deductibles. As of June 30, 2019, the Company had an outstanding balance of $1.3 million under these credit lines, and no amounts outstanding as of June 30, 2018, and December 31, 2018, respectively. The Company was in compliance with its financial covenants at June 30, 2019.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2019 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Commitments and Contingencies Litigation From time to time, the Company is involved in various legal proceedings and other matters arising in the normal course of business, including those arising from or related to contractual matters, commercial disputes, intellectual property, personal injury, environmental matters, product performance or warranties, product liability, insurance coverage and personnel, labor and employment disputes. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are often uncertain and difficult to predict, and the Company's view of these matters may change in the future as the litigation and events related thereto unfold. The Company expenses legal fees as incurred. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. An unfavorable outcome to any legal matter, if material, could have an adverse effect on the Company's operations or its financial position, liquidity or results of operations. Insurance coverages are maintained and estimated costs are recorded for such claims and lawsuits, including costs to settle claims and lawsuits, based on experience involving similar matters and specific facts known. The Company believes that its defenses and assertions in pending legal proceedings have merit and does not believe that any of these pending matters, after consideration of applicable reserves and rights to indemnification, will have a material adverse effect on the Company’s consolidated financial position. However, substantial unanticipated verdicts, fines and rulings do sometimes occur. As a result, the Company could from time to time incur judgments, enter into settlements or revise its expectations regarding the outcome of certain matters, and such developments could have a material adverse effect on its results of operations in the period in which the amounts are accrued and/or its cash flows in the period in which the amounts are paid. The Company previously recorded a charge to administrative expense of approximately $2.9 million, net of tax for a certain pending legal proceeding during the period ended December 31, 2018. The Company has recorded an additional charge of approximately $100,000 in the period ended June 30, 2019, resulting in the total charge recorded for such matter being approximately $3.0 million, net of tax. Gentry Homes, Ltd. v. Simpson Strong-Tie Company, Inc., et al., Case No. 17-cv-00566, was filed in federal district court in Hawaii against Simpson Strong-Tie Company, Inc. and Simpson Manufacturing, Inc. on November 20, 2017. The Gentry case is a product of a previous state court class action, Nishimura v. Gentry Homes, Ltd., et al. which is now closed. The Nishimura case concerned alleged corrosion of the Company’s galvanized strap-tie holdowns and mudsill anchor products used in a residential project in Honolulu, Hawaii, Ewa by Gentry. In the Nishimura case, the plaintiff homeowners and the developer, Gentry, arbitrated their dispute and agreed on a settlement in the amount of $90 million, with $54 million going to repair costs and $36 million going to attorney's fees. In the Gentry case, Gentry alleges breach of warranty and negligent misrepresentation related to the Company’s strap-tie holdowns and mudsill anchor products. Gentry is demanding general, special, and consequential damages from the Company in an amount to be proven at trial. Gentry also seeks pre-judgment and post-judgment interest, attorneys’ fees and costs, and other relief. Stephen Kaneshiro, et al. v. Stanford Carr Development, LLC et al./Stanford Carr Development, LLC, et al. v. Simpson Strong-Tie Company, Inc., Civil No. 18-1-1472-09 VLC, is a putative class action lawsuit filed in the Hawaii First Circuit. The Company was added as a third-party defendant on December 28, 2018. The homeowner plaintiffs allege that all homes built by Stanford Carr Development and its subsidiaries (collectively "Stanford Carr") in the State of Hawaii have strap-tie holdowns and mudsill anchors that are suffering premature corrosion. Stanford Carr has asserted indemnity and contribution claims against the Company. Potential Third-Party Claims Charles Vitale, et al. v. D.R. Horton, Inc. and D.R. Horton-Schuler Homes, LLC, Civil No. 15-1-1347-07, a putative class action lawsuit, was filed in the Hawaii First Circuit on July 13, 2015, in which homeowner plaintiffs allege that all homes built by D.R Horton/D.R. Horton-Schuler Homes (collectively "Horton Homes") in the State of Hawaii have strap-tie holdowns that are suffering premature corrosion. The court has denied a motion for statewide class certification. The Company is not currently a party to the Vitale lawsuit. If claims are asserted against the Company in the Vitale case, it will vigorously defend any such claims, whether brought by the plaintiff homeowners, or third party claims by Horton Homes. Based on facts currently known to the Company and subject to future events and circumstances, the Company believes that all or part of any claims that any party might seek to allege against it related to the Vitale case may be covered by its insurance policies.
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Information | Segment Information The Company is organized into three reportable segments, which are defined by the regions where the Company’s products are manufactured, marketed and distributed to the Company’s customers. The three regional segments are the North America segment, comprising primarily the United States and Canada; the Europe segment, comprising continental Europe and the United Kingdom; and the Asia/Pacific segment, comprising the Company’s operations in China, Hong Kong, the South Pacific and the Middle East. The Company's China and Hong Kong operations are manufacturing and administrative support locations, respectively. These three reportable segments are similar in several ways, including the types of materials used in production, production processes, distribution channels and product applications. The Company’s measure of profit or loss for its reportable segments is income (loss) from operations. The following tables illustrate certain measurements used by management to assess the performance of its reportable segments as of or for the following periods:
* Sales to other segments are eliminated in consolidation. ** Beginning in the first quarter of 2019, income from inter-segment sales, previously included in income from operations for segment reporting, is now presented below income from operations. Income from inter-segment sales is eliminated in consolidation but was an expense in the North America and Europe segment and income in the Asia/Pacific segment.
Cash collected by the Company’s United States subsidiaries is routinely transferred into the Company’s cash management accounts and, therefore, has been included in the total assets of “Administrative and all other.” Cash and cash equivalent balances in the “Administrative and all other” segment were $98.4 million, $71.8 million, and $113.6 million, as of June 30, 2019 and 2018, and December 31, 2018, respectively. Total "Administrative and all other" assets are net of inter-segment due to and from accounts eliminated in consolidation. While the Company manages its business by geographic segment, the following table illustrates the distribution of the Company’s net sales by product group as additional information for the following periods:
Wood construction products include connectors, truss plates, fastening systems, fasteners and pre-fabricated shearwalls, and are used for connecting and strengthening wood-based construction primarily in the residential construction market. Concrete construction products include adhesives, chemicals, mechanical anchors, carbide drill bits, powder actuated tools and fiber reinforcing materials, and are used for restoration, protection or strengthening concrete, masonry and steel construction in residential, industrial, commercial and infrastructure construction. The Company’s largest customer, attributable mostly to the North America segment, accounted for 12.4% and 11.5% of net sales for three and six months ending June 30, 2019, respectively, and 12.0% and 10.9% of net sales, accounted for the three and six months ended June 30, 2018.
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Subsequent Events Subsequent Events |
6 Months Ended |
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Jun. 30, 2019 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events |
Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2019 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Simpson Manufacturing Co., Inc. and its subsidiaries (collectively, the “Company”). Investments in 50% or less owned entities are accounted for using either cost or the equity method. All significant intercompany transactions have been eliminated. |
| Interim Period Reporting | Interim Reporting Period The accompanying unaudited quarterly condensed consolidated financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These interim statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018. The unaudited quarterly condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial information set forth therein, in accordance with GAAP. Certain prior period amounts in the condensed consolidated financial statements and the accompanying notes have been reclassified to conform to the current period’s presentation. The year-end condensed consolidated balance sheet data provided herein were derived from audited financial statements, but do not include all disclosures required by GAAP. The Company’s quarterly results fluctuate. As a result, the Company believes the results of operations for this interim period presented are not indicative of the results to be expected for any future periods.
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| Revenue Recognition | Revenue Recognition Generally, the Company's revenue contract with a customer exists when the goods are shipped, services are rendered; and its related invoice is generated. The duration of the contract does not extend beyond the promised goods or services already transferred. The transaction price of each distinct promised product or service specified in the invoice is based on its relative stated standalone selling price. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer at a point in time. The Company’s shipping terms provide the primary indicator of the transfer of control. The Company's general shipping terms are F.O.B. shipping point, where title and risk and rewards of ownership transfer at the point when the products leave the Company's warehouse. The Company recognizes revenue based on the consideration specified in the invoice with a customer, excluding any sales incentives, discounts, and amounts collected on behalf of third parties (i.e., governmental tax authorities). Based on historical experience with the customer, the customer's purchasing pattern and its significant experience selling products, the Company concluded that a significant reversal in the cumulative amount of revenue recognized will not occur when the uncertainty (if any) is resolved (that is, when the total amount of purchases is known). Refer to Note 2 for additional information. |
| Net Income Per Common Share | Net Income Per Common Share Net income per common share are calculated based on the weighted-average number of the Company's common stock outstanding during the period. Potentially dilutive securities are included in the diluted per-share calculations using the treasury stock method for all periods when the effect is dilutive.
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| Accounting for Leases | Accounting for Leases The Company has operating and finance leases for certain facilities, equipment, autos and data centers. As an accounting policy for short-term leases, the Company elected to not recognize the right-of-use asset and liability, if, at the commencement date, the lease (1) has a term of 12 months or less and (2) does not include renewal and purchase options that the Company is reasonably certain to exercise. Monthly payments on short-term leases are recognized on the straight-line basis over the full lease term. |
| Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation |
| Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified under a three-tier fair valuation hierarchy based on the observability of the inputs available in the market: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As of June 30, 2019 and 2018, the Company’s investments included in cash equivalents consisted of only money market funds, which are the Company’s primary financial instruments and carried at cost, approximating fair value, based on Level 1 inputs. The balance of the Company’s primary financial instruments as of June 30, 2019 and 2018 was $0.1 million and $6.9 million, respectively. The carrying amounts of trade accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. The fair value of the Company’s contingent consideration related to acquisitions is classified as Level 3 within the fair value hierarchy as it is based on unobserved inputs such as management estimates and entity-specific assumptions and is evaluated on an ongoing basis. |
| Income Taxes | Income Taxes The Company uses an estimated annual tax rate to measure the tax benefit or tax expense recognized in each interim period.
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| Acquisitions | Acquisitions Under the business combinations topic ASC 805, the Company accounts for acquisitions as business combinations and ascribes acquisition-date fair values to the acquired assets and assumed liabilities. Provisional fair value measurements are made at the time of the acquisition. Adjustments to those measurements may be made in subsequent periods, up to one year from the acquisition date, as information necessary to complete the analysis is obtained. The fair value of intangible assets are generally based on Level 3 inputs. |
| Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). The core requirement of ASU 2016-02 is to recognize assets and liabilities that arise from leases, including those leases classified as operating leases. The amendments require a lessee to recognize a liability to make lease payments (the lease liability) and a right-of-use asset ("ROU") representing its right to use the underlying asset for the lease term in the statement of financial position. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. On January 1, 2019, the Company adopted ASU 2016-02 using the optional transition method. The Company elected and applied a few practical transition expedients including, not reassessing whether any expired or existing contracts are or contain leases; not reassessing the lease classification for any expired or existing leases and not reassessing initial direct costs for any existing leases. The Company has operating and finance leases for certain facilities, equipment, autos and data centers. The adoption of ASU 2016-02 resulted in the recognition of ROU assets and lease liabilities of approximately $34.3 million and $35.1 million, respectively on January 1, 2019. The adoption had no material impact on the condensed consolidated statement of operations or cash flows. See Note 10. All other issued and effective accounting standards during the second quarter of 2019 were determined to be not relevant or material to the Company.
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Net income Per Share (Tables) |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table reconciles basic net income per the Company's common stock to diluted net income per share for the three and six months ended June 30, 2019 and 2018, respectively:
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Trade Accounts Receivable, Net (Tables) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of trade accounts receivable, net | Trade accounts receivable at the dates indicated consisted of the following:
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Inventories (Tables) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of carrying values of inventories | Inventories at the dates indicated consisted of the following:
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Property, Plant and Equipment, Net (Tables) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of property, plant and equipment | Property, plant and equipment, net, at the dates indicated consisted of the following:
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Goodwill and Intangible Assets, Net (Tables) |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of goodwill, by segment | Goodwill at the dates indicated was as follows:
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| Schedule of net intangible assets, by segment | Intangible assets, net, at the dates indicated were as follows:
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| Schedule of estimated future amortization of intangible assets | At June 30, 2019, the estimated future amortization of definite-lived intangible assets was as follows:
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| Changes in the carrying amount of goodwill and intangible assets | The changes in the carrying amount of goodwill and intangible assets for the six months ended June 30, 2019, were as follows:
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Leases (Tables) |
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| Lease, Cost [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet Information | The following table provides a summary of leases included on the condensed consolidated balance sheets as of June 30, 2019:
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| Lease, Cost | The following table summarizes the Company's lease terms and discount rates as of June 30, 2019:
The components of lease expense were as follows:
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| Operating Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2019:
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| Finance Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2019:
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Segment Information (Tables) |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of performance of reportable segments | The following tables illustrate certain measurements used by management to assess the performance of its reportable segments as of or for the following periods:
* Sales to other segments are eliminated in consolidation. ** Beginning in the first quarter of 2019, income from inter-segment sales, previously included in income from operations for segment reporting, is now presented below income from operations. Income from inter-segment sales is eliminated in consolidation but was an expense in the North America and Europe segment and income in the Asia/Pacific segment.
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| Schedule of net sales distributed by product group | While the Company manages its business by geographic segment, the following table illustrates the distribution of the Company’s net sales by product group as additional information for the following periods:
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Basis of Presentation (Details) |
6 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Stock-Based Compensation | |
| Maximum period for payment for adjustments to provisional fair value measurements | 1 year |
| Maximum [Member] | |
| Stock-Based Compensation | |
| Vesting period | 4 years |
Basis of Presentation - Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Jan. 01, 2019 |
|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| Operating lease right-of-use assets | $ 35,111 | $ 34,300 |
| Total lease liabilities | $ 34,811 | $ 35,100 |
Basis of Presentation Fair value of financial instruments (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Jun. 30, 2018 |
|---|---|---|
| Cash and Cash Equivalents [Abstract] | ||
| Money Market Funds, at Carrying Value | $ 0.1 | $ 6.9 |
Revenue from Contract with Customer (Details) - ASC 606 |
6 Months Ended | |
|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Wood construction products | ||
| Disaggregation of Revenue [Line Items] | ||
| Percentage of net sales | 84.00% | 86.00% |
| Concrete construction products | ||
| Disaggregation of Revenue [Line Items] | ||
| Percentage of net sales | 16.00% | 14.00% |
| Other | ||
| Disaggregation of Revenue [Line Items] | ||
| Percentage of net sales | 1.00% | |
Stockholders' Equity Shares Repurchases (Details) - 2018 Stock Repurchase Program [Member] [Member] - USD ($) $ / shares in Units, $ in Millions |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2019 |
Dec. 01, 2018 |
Jun. 30, 2018 |
|
| Equity, Class of Treasury Stock [Line Items] | |||
| Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 30.0 | ||
| Stock Repurchase Program, Authorized Amount | $ 70.0 | $ 100.0 | |
| Treasury Stock, Shares, Acquired | 505,448 | ||
| Treasury Stock Acquired, Average Cost Per Share | $ 59.35 |
Net income Per Share - Reconciliation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
| Reconciliation of basic earnings per share ("EPS") to diluted EPS | |||||
| Net income available to common stockholders | $ 39,577 | $ 44,086 | $ 62,239 | $ 69,515 | $ 57,118 |
| Basic weighted-average shares outstanding | 44,671 | 46,323 | 44,772 | 46,468 | |
| Dilutive effect of potential common stock equivalents — restricted stock units | 301 | 354 | 317 | 374 | |
| Diluted weighted-average shares outstanding | 44,972 | 46,677 | 45,089 | 46,842 | |
| Earnings per common share: | |||||
| Basic | $ 0.89 | $ 0.95 | $ 1.39 | $ 1.50 | |
| Diluted | $ 0.88 | $ 0.94 | $ 1.38 | $ 1.48 | |
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Feb. 15, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Stock-Based Compensation | |||||
| Stock-based compensation expense | $ 2.5 | $ 2.9 | $ 6.6 | $ 6.0 | |
| Unrecognized compensation cost and vesting period | |||||
| Unrecognized compensation costs related to unvested share-based compensation arrangements | $ 15.3 | $ 15.3 | |||
| Weighted-average period for recognition of unrecognized stock-based compensation expense | 2 years 6 months | ||||
| Restricted Stock Units | |||||
| Stock-Based Compensation | |||||
| Awarded (in shares) | 208,231 | ||||
| Weighted average granted date fair value (in dollars per share) | $ 57.73 | ||||
| Vesting period | 3 years | ||||
| Employees | Restricted Stock Units | |||||
| Stock-Based Compensation | |||||
| Vesting period | 4 years | ||||
Trade Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
|---|---|---|---|
| Receivables [Abstract] | |||
| Trade accounts receivable | $ 195,767 | $ 149,886 | $ 215,174 |
| Allowance for doubtful accounts | (1,279) | (1,364) | (1,223) |
| Allowance for sales discounts and returns | (3,206) | (2,470) | (2,772) |
| Trade accounts receivable, net | $ 191,282 | $ 146,052 | $ 211,179 |
Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
|---|---|---|---|
| Inventory Disclosure [Abstract] | |||
| Raw materials | $ 102,901 | $ 98,058 | $ 96,338 |
| In-process products | 25,145 | 24,645 | 27,847 |
| Finished products | 138,096 | 153,385 | 133,995 |
| Total inventories | $ 266,142 | $ 276,088 | $ 258,180 |
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
|---|---|---|---|
| Property, Plant and Equipment | |||
| Property, plant and equipment, gross | $ 572,373 | $ 563,745 | $ 566,849 |
| Less accumulated depreciation and amortization | (334,293) | (318,388) | (313,088) |
| Property, plant and equipment excluding capital projects in progress, net | 238,080 | 245,357 | 253,761 |
| Capital projects in progress | 14,630 | 9,240 | 15,366 |
| Property, plant and equipment, net | 252,710 | 254,597 | 269,127 |
| Land | |||
| Property, Plant and Equipment | |||
| Property, plant and equipment, gross | 29,343 | 30,034 | 32,121 |
| Buildings and site improvements | |||
| Property, Plant and Equipment | |||
| Property, plant and equipment, gross | 198,129 | 198,809 | 209,888 |
| Leasehold improvements | |||
| Property, Plant and Equipment | |||
| Property, plant and equipment, gross | 5,016 | 4,826 | 4,709 |
| Machinery, equipment, and software | |||
| Property, Plant and Equipment | |||
| Property, plant and equipment, gross | $ 339,885 | $ 330,076 | $ 320,131 |
Goodwill and Intangible Assets, Net, Goodwill (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
|---|---|---|---|
| Carrying amount of goodwill by reportable segment | |||
| Goodwill | $ 132,312 | $ 130,250 | $ 136,398 |
| North America | |||
| Carrying amount of goodwill by reportable segment | |||
| Goodwill | 96,546 | 96,435 | 95,621 |
| Europe | |||
| Carrying amount of goodwill by reportable segment | |||
| Goodwill | 34,426 | 32,471 | 39,365 |
| Asia/Pacific | |||
| Carrying amount of goodwill by reportable segment | |||
| Goodwill | $ 1,340 | $ 1,344 | $ 1,412 |
Goodwill and Intangible Assets, Net, Intangible Assets, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
| Finite-Lived Intangible Assets [Line Items] | |||||
| Amortization of Intangible Assets | $ 1,300 | $ 1,300 | $ 2,657 | $ 2,600 | |
| Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 4 months 24 days | ||||
| Changes in gross carrying amount of finite-lived intangible assets | |||||
| Gross carrying amount | 54,423 | 54,599 | $ 54,423 | 54,599 | $ 53,178 |
| Accumulated amortization | (31,432) | (27,838) | (31,432) | (27,838) | (28,776) |
| Net carrying amount | 22,991 | 26,761 | 22,991 | 26,761 | 24,402 |
| North America | |||||
| Changes in gross carrying amount of finite-lived intangible assets | |||||
| Gross carrying amount | 30,824 | 30,715 | 30,824 | 30,715 | 30,825 |
| Accumulated amortization | (17,586) | (15,232) | (17,586) | (15,232) | (16,002) |
| Net carrying amount | 13,238 | 15,483 | 13,238 | 15,483 | 14,823 |
| Europe | |||||
| Changes in gross carrying amount of finite-lived intangible assets | |||||
| Gross carrying amount | 23,599 | 23,884 | 23,599 | 23,884 | 22,353 |
| Accumulated amortization | (13,846) | (12,606) | (13,846) | (12,606) | (12,774) |
| Net carrying amount | $ 9,753 | $ 11,278 | $ 9,753 | $ 11,278 | $ 9,579 |
Goodwill and Intangible Assets, Net, Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Indefinite-lived Intangible Assets [Line Items] | ||||
| Amortization of intangibles | $ 1,300 | $ 1,300 | $ 2,657 | $ 2,600 |
| Trade Names | ||||
| Indefinite-lived Intangible Assets [Line Items] | ||||
| Indefinite-lived intangible assets | $ 600 | $ 600 | ||
Goodwill and Intangible Assets, Net, Estimated Future Amortization (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
|
|---|---|
| Goodwill and Intangible Assets Disclosure [Abstract] | |
| Remaining six months of 2019 | $ 2,725 |
| 2019 | 5,421 |
| 2020 | 4,942 |
| 2021 | 3,052 |
| 2022 | 2,248 |
| 2023 | 1,285 |
| Thereafter | 2,702 |
| Total | $ 22,375 |
Goodwill and Intangible Assets, Net, Carrying Amount of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Goodwill | ||||
| Balance at the beginning of the period | $ 130,250 | |||
| Amortization | 1,815 | |||
| Foreign exchange | 247 | |||
| Balance at the end of the period | $ 132,312 | $ 136,398 | 132,312 | $ 136,398 |
| Intangible Assets | ||||
| Balance at the beginning of the period | 24,402 | |||
| Finite-lived Intangible Assets Acquired | 1,213 | |||
| Amortization | (1,300) | (1,300) | (2,657) | (2,600) |
| Foreign exchange | 33 | |||
| Balance at the end of the period | $ 22,991 | $ 26,761 | $ 22,991 | $ 26,761 |
Leases - Narrative (Details) |
Jun. 30, 2019 |
|---|---|
| Leases [Abstract] | |
| Option to extend term | 5 years |
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Jan. 01, 2019 |
|---|---|---|
| Leases [Abstract] | ||
| Operating lease right-of-use assets | $ 35,111 | $ 34,300 |
| Operating - current | 6,647 | |
| Operating - noncurrent | 28,164 | |
| Total operating lease liabilities | 34,811 | $ 35,100 |
| Property and equipment, gross | 3,569 | |
| Accumulated amortization | (2,417) | |
| Property and equipment, net | 1,152 | |
| Other current liabilities | 1,107 | |
| Other long-term liabilities | 1,047 | |
| Total finance lease liabilities | $ 2,154 |
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
| Leases [Abstract] | ||
| Operating lease cost | $ 2,272 | $ 4,426 |
| Amortization of right-of-use assets | 218 | 436 |
| Interest on lease liabilities | 18 | 38 |
| Total finance lease | $ 236 | $ 474 |
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
| Lease, Cost [Abstract] | ||
| Operating cash flows for operating leases | $ 2,214 | $ 4,305 |
| Finance cash flows for finance leases | 290 | 580 |
| Operating right-of-use assets obtained in exchange for lease obligations during the current period | $ 1,718 | $ 2,211 |
Leases - Maturity (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Jan. 01, 2019 |
|---|---|---|
| Operating Lease Liabilities, Payments Due [Abstract] | ||
| Remaining six months of 2019 | $ 4,517 | |
| 2020 | 8,560 | |
| 2021 | 6,985 | |
| 2022 | 4,857 | |
| 2023 | 3,433 | |
| Thereafter | 13,640 | |
| Total lease payments | 41,992 | |
| Less: Present value discount | (7,181) | |
| Total lease liabilities | 34,811 | $ 35,100 |
| Finance Leases | ||
| Remaining six months of 2019 | 580 | |
| 2020 | 1,160 | |
| 2021 | 479 | |
| 2022 | 0 | |
| 2023 | 0 | |
| Thereafter | 0 | |
| Total lease payments | 2,219 | |
| Less: Present value discount | (65) | |
| Total finance lease liabilities | $ 2,154 |
Leases - Lease Terms and Discount Rates (Details) |
Jun. 30, 2019 |
|---|---|
| Leases [Abstract] | |
| Operating Lease, Weighted Average Remaining Lease Term | 6 years 11 months 1 day |
| Finance Lease, Weighted Average Remaining Lease Term | 1 year 11 months 4 days |
| Operating Lease, Weighted Average Discount Rate, Percent | 5.37% |
| Finance Lease, Weighted Average Discount Rate, Percent | 3.22% |
Debt (Details) - USD ($) |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
|---|---|---|---|
| Line of Credit | |||
| Debt | |||
| Credit facility, total available credit | $ 302,800,000 | ||
| Primary Revolving Credit Facility | |||
| Debt | |||
| Line of credit and notes payable | $ 1,300,000 | $ 0 | $ 0 |
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
|---|---|---|---|
Nov. 20, 2017 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|
| Loss Contingencies [Line Items] | |||
| Litigation expense | $ 3,000 | $ 2,900 | |
| Additional expense | $ 100 | ||
| Nishimura v. Gentry Homes, Ltd | |||
| Loss Contingencies [Line Items] | |||
| Settlement amount | $ 90,000 | ||
| Repair costs | 54,000 | ||
| Attorney fees | $ 36,000 |
Segment Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
segment
|
Jun. 30, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
| Segment Reporting [Abstract] | ||||||
| Number of reportable segments | segment | 3 | |||||
| Segment Information | ||||||
| Net sales | $ 304,853 | $ 308,007 | $ 564,097 | $ 552,786 | ||
| Income (Loss) from Operations | 53,653 | 61,433 | 83,676 | 94,117 | ||
| Total Assets | 1,069,918 | 1,085,887 | 1,069,918 | 1,085,887 | $ 1,021,663 | |
| Cash and cash equivalent | 141,731 | 155,035 | 141,731 | 155,035 | 160,180 | $ 168,514 |
| Intersegment elimination | ||||||
| Segment Information | ||||||
| Net sales | 8,373 | 7,626 | 15,568 | 15,127 | ||
| Administrative and all other | ||||||
| Segment Information | ||||||
| Income (Loss) from Operations | (1,420) | (1,573) | (3,235) | (2,763) | ||
| Total Assets | (325,644) | (194,107) | (325,644) | (194,107) | (280,430) | |
| Cash and cash equivalent | 98,400 | 71,800 | 98,400 | 71,800 | 113,600 | |
| North America | ||||||
| Segment Information | ||||||
| Net sales | 259,073 | 259,822 | 480,504 | 466,034 | ||
| Income (Loss) from Operations | 50,100 | 59,991 | 82,864 | 96,444 | ||
| Total Assets | 1,194,318 | 1,042,765 | 1,194,318 | 1,042,765 | 1,119,012 | |
| North America | Intersegment elimination | ||||||
| Segment Information | ||||||
| Net sales | 466 | 578 | 807 | 1,206 | ||
| Europe | ||||||
| Segment Information | ||||||
| Net sales | 43,648 | 45,784 | 79,428 | 82,077 | ||
| Income (Loss) from Operations | 4,725 | 3,688 | 4,341 | 2,099 | ||
| Total Assets | 173,791 | 208,609 | 173,791 | 208,609 | 157,437 | |
| Europe | Intersegment elimination | ||||||
| Segment Information | ||||||
| Net sales | 631 | 251 | 1,089 | 600 | ||
| Asia/Pacific | ||||||
| Segment Information | ||||||
| Net sales | 2,132 | 2,401 | 4,165 | 4,675 | ||
| Income (Loss) from Operations | 248 | (673) | (294) | (1,663) | ||
| Total Assets | 27,453 | 28,620 | 27,453 | 28,620 | $ 25,644 | |
| Asia/Pacific | Intersegment elimination | ||||||
| Segment Information | ||||||
| Net sales | $ 7,276 | $ 6,797 | $ 13,672 | $ 13,321 | ||
Segment Information (Details 2) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Net sales and long-lived assets by geographical area | ||||
| Net sales | $ 304,853 | $ 308,007 | $ 564,097 | $ 552,786 |
| Wood construction products | ||||
| Net sales and long-lived assets by geographical area | ||||
| Net sales | 258,416 | 260,103 | ||
| Concrete construction products | ||||
| Net sales and long-lived assets by geographical area | ||||
| Net sales | 46,360 | 47,859 | ||
| Other | ||||
| Net sales and long-lived assets by geographical area | ||||
| Net sales | 77 | 45 | ||
| North America | ||||
| Net sales and long-lived assets by geographical area | ||||
| Net sales | $ 259,073 | $ 259,822 | $ 480,504 | $ 466,034 |
Segment Information (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
| Concentration Risk [Line Items] | ||||||
| Cash and cash equivalents | $ 141,731 | $ 155,035 | $ 141,731 | $ 155,035 | $ 160,180 | $ 168,514 |
| Administrative and all other | ||||||
| Concentration Risk [Line Items] | ||||||
| Cash and cash equivalents | $ 98,400 | $ 71,800 | $ 98,400 | $ 71,800 | $ 113,600 | |
| North America | Geographic | Net Sales | ||||||
| Concentration Risk [Line Items] | ||||||
| Percentage of net sales | 12.40% | 12.00% | 11.50% | 10.90% | ||
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|---|
Jul. 25, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
| Subsequent Event [Line Items] | ||||||
| Cash dividends declared per common share (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.45 | $ 0.43 | $ 0.44 | |
| Subsequent Event | ||||||
| Subsequent Event [Line Items] | ||||||
| Cash dividends declared per common share (in dollars per share) | $ 0.23 | |||||
| Dividends | $ 10.2 | |||||
| Label | Element | Value |
|---|---|---|
| New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ 791,000 |
| Retained Earnings [Member] | ||
| New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ 791,000 |