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, | ||||||||||||||||
2023 | 2022 | 2022 | |||||||||||||||
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 | |||||||||||||||||
Intangible assets, net | |||||||||||||||||
Other noncurrent assets | |||||||||||||||||
Total assets | $ | $ | $ | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities | |||||||||||||||||
Trade accounts payable | $ | $ | $ | ||||||||||||||
Accrued liabilities and other current liabilities | |||||||||||||||||
Long-term debt, current portion | |||||||||||||||||
Total current liabilities | |||||||||||||||||
Operating lease liabilities | |||||||||||||||||
Long-term debt, net of issuance costs | |||||||||||||||||
Deferred income tax and other long-term liabilities | |||||||||||||||||
Total liabilities | |||||||||||||||||
Commitments and contingencies (see Note 13) | |||||||||||||||||
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, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development and other engineering | |||||||||||||||||||||||
Selling | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Acquisition and integration related costs | |||||||||||||||||||||||
Net gain on disposal of assets | ( | ( | ( | ( | |||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Interest expense, net and other finance costs | ( | ( | ( | ( | |||||||||||||||||||
Other & foreign exchange loss, net | ( | ( | ( | ||||||||||||||||||||
Income before taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Translation adjustment | ( | ( | ( | ||||||||||||||||||||
Unamortized pension adjustments | |||||||||||||||||||||||
Cash flow hedge adjustment, net of tax | ( | ( | |||||||||||||||||||||
Comprehensive net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per common share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average number of shares outstanding | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Cash dividends declared per common share | $ | $ | $ | $ |
Common Stock | Additional Paid-in | Retained | Accumulated Other Comprehensive | Treasury | |||||||||||||||||||
Shares | Par Value | Capital | Earnings | Loss | Stock | Total | |||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Translation adjustment, net of tax | — | — | — | — | ( | — | ( | ||||||||||||||||
Pension adjustment and other, net of tax | — | — | — | — | — | ||||||||||||||||||
Cash flow hedges, net of tax | — | — | — | — | ( | — | ( | ||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||
Shares issued from release of Restricted Stock Units | — | — | — | ||||||||||||||||||||
Cash dividends declared on common stock, $0.27 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Translation adjustment and other, net of tax | — | — | — | — | ( | — | ( | ||||||||||||||||
Derivative instrument adjustments, net of tax | — | — | — | — | — | ||||||||||||||||||
Pension adjustment and other, net of tax | — | — | — | — | — | ||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||
Shares issued from release of Restricted Stock Units | — | — | — | ||||||||||||||||||||
Repurchase of common stock | ( | — | — | — | — | ( | ( | ||||||||||||||||
Cash dividends declared on common stock, $0.26 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Additional Paid-in | Retained | Accumulated Other Comprehensive | Treasury | |||||||||||||||||||
Shares | Par Value | Capital | Earnings | Loss | Stock | Total | |||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Translation adjustment, net of tax | — | — | — | — | — | ||||||||||||||||||
Pension adjustment and other, net of tax | — | — | — | — | — | ||||||||||||||||||
Cash flow hedges, net of tax | — | — | — | — | ( | — | ( | ||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||
Shares issued from release of Restricted Stock Units | ( | — | — | — | ( | ||||||||||||||||||
Cash dividends declared on common stock, $0.53 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Translation adjustment, net of tax | — | — | — | — | ( | — | ( | ||||||||||||||||
Pension adjustment and other, net of tax | — | — | — | — | — | ||||||||||||||||||
Cash flow hedges, net of tax | — | — | — | — | — | ||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||
Shares issued from release of Restricted Stock Units | ( | — | — | — | ( | ||||||||||||||||||
Repurchase of common stock | ( | — | — | — | — | ( | ( | ||||||||||||||||
Cash dividends declared on common stock, $0.51 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Common stock issued at $139.07 per share for stock bonus | — | — | — | ||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ |
Six Months Ended | ||||||||
June 30, | ||||||||
2023 | 2022 | |||||||
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 | ||||||||
(Gain) loss in equity method investment, before tax | ( | |||||||
Deferred income taxes | ( | ( | ||||||
Noncash compensation related to stock plans | ||||||||
Provision for doubtful accounts | ||||||||
Deferred hedge gain | ( | ( | ||||||
Changes in operating assets and liabilities | ||||||||
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 | ( | ( | ||||||
Equity method investments | ( | ( | ||||||
Proceeds from sale of property and equipment | ||||||||
Proceeds from sale of business | ||||||||
Terminated forward contract | ||||||||
Net cash used in investing activities | ( | ( | ||||||
Cash flows from financing activities | ||||||||
Termination of cash flow hedge | ||||||||
Repurchase of common stock | ( | |||||||
Proceeds from borrowing under lines of credit and term loan | ||||||||
Repayments of lines of credit and term loan | ( | ( | ||||||
Debt issuance costs | ( | |||||||
Dividends paid | ( | ( | ||||||
Cash paid on behalf of employees for shares withheld | ( | ( | ||||||
Net cash provided by (used in) financing activities | ( | |||||||
Effect of exchange rate changes on cash and cash equivalents | ( | |||||||
Net increase (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 | ||||||||
2023 | 2022 | ||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Cash equivalents (1) | $ | $ | $ | $ | $ | $ | — | ||||||||||||||||
Derivative instruments - assets (2) | — | ||||||||||||||||||||||
Derivative instruments - liabilities (2) | ( | ( | — | ||||||||||||||||||||
Contingent considerations |
Balance at | Balance at | |||||||||||||
(in thousands) | December 31, 2022 | Expense (Deductions), net | Write-Offs1 | June 30, 2023 | ||||||||||
Allowance for Doubtful Accounts | $ | ( | $ |
(in thousands) | Amount | ||||
Cash and cash equivalents | $ | ||||
Trade accounts receivable, net | |||||
Inventory | |||||
Other current assets | |||||
Property and equipment, net | |||||
Operating lease right-of-use assets | |||||
Goodwill | |||||
Intangible assets, net | |||||
Other noncurrent assets | |||||
Total assets | |||||
Trade accounts payable | |||||
Accrued liabilities and other current liabilities | |||||
Operating lease liabilities | |||||
Deferred income tax and other long-term liabilities | |||||
Total purchase price | $ |
(in thousands, except useful lives) | Weighted-average useful life (in years) | Amount | ||||||
Customer relationships | $ | |||||||
Trade names | Indefinite | |||||||
Developed technology | ||||||||
Patents | ||||||||
$ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(in thousands, except per share amounts) | 2022 | 2022 | |||||||||||||||
Net sales | $ | $ | |||||||||||||||
Net income | $ | $ | |||||||||||||||
Pro forma earnings per common share: | |||||||||||||||||
Basic | $ | $ | |||||||||||||||
Diluted | $ | $ | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | |||||||||||||||||
Diluted | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
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 earnings per common share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ |
As of June 30, | As of December 31, | ||||||||||||||||
(in thousands) | 2023 | 2022 | 2022 | ||||||||||||||
Trade accounts receivable | $ | $ | $ | ||||||||||||||
Allowance for doubtful accounts | ( | ( | ( | ||||||||||||||
Allowance for sales discounts and returns | ( | ( | ( | ||||||||||||||
$ | $ | $ |
As of June 30, | As of December 31, | ||||||||||||||||
(in thousands) | 2023 | 2022 | 2022 | ||||||||||||||
Raw materials | $ | $ | $ | ||||||||||||||
In-process products | |||||||||||||||||
Finished products | |||||||||||||||||
$ | $ | $ |
2023 | 2022 | |||||||||||||||||||||||||||||||
(in thousands) | Cost of sales | Interest expense, net | Other & foreign exchange loss, net | Cost of sales | Interest expense, net | Other & foreign exchange loss, net | ||||||||||||||||||||||||||
Total amounts of income and expense line items presented in the Condensed Consolidated Statement of Earnings in which the effects of fair value or cash flow hedges are recorded | $ | ( | $ | ( | ( | ( | ||||||||||||||||||||||||||
The effects of fair value and cash flow hedging | ||||||||||||||||||||||||||||||||
Gain or (loss) on cash flow hedging relationships | ||||||||||||||||||||||||||||||||
Interest contracts: | ||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from OCI to earnings | — | — | — | ( | — | |||||||||||||||||||||||||||
Cross currency swap contract | ||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from OCI to earnings | — | ( | — | ( | ||||||||||||||||||||||||||||
Forward contract | ||||||||||||||||||||||||||||||||
Amount of gain reclassified from OCI to earnings | — | — | — |
Cash Flow Hedging Relationships | Gain (Loss) Recognized in OCI | Location of Gain (Loss) Reclassified from OCI into Earnings | Gain (Loss) Reclassified from OCI into Earnings | |||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Interest rate contracts | $ | $ | Interest expense | $ | $ | ( | ||||||||||||||
Cross currency contracts | ( | Interest expense | ||||||||||||||||||
Forward contracts | ( | FX gain (loss) | ( | |||||||||||||||||
Cost of goods sold | ||||||||||||||||||||
Total | $ | $ | $ | $ |
Cash Flow Hedging Relationships | Gain (Loss) Recognized in OCI | Location of Gain (Loss) Reclassified from OCI into Earnings | Gain (Loss) Reclassified from OCI into Earnings | |||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Interest rate contracts | $ | $ | Interest expense | $ | $ | ( | ||||||||||||||
Cross currency contracts | ( | Interest expense | ||||||||||||||||||
Forward contracts | ( | $ | FX gain (loss) | ( | ||||||||||||||||
Cost of goods sold | ||||||||||||||||||||
Total | $ | ( | $ | $ | $ |
As of June 30, | As of December 31, | ||||||||||||||||
(in thousands) | 2023 | 2022 | 2022 | ||||||||||||||
Land | $ | $ | $ | ||||||||||||||
Buildings and site improvements | |||||||||||||||||
Leasehold improvements | |||||||||||||||||
Machinery, equipment, and software | |||||||||||||||||
Less accumulated depreciation and amortization | ( | ( | ( | ||||||||||||||
Capital projects in progress | |||||||||||||||||
Total | $ | $ | $ |
As of June 30, | As of December 31, | ||||||||||||||||
(in thousands) | 2023 | 2022 | 2022 | ||||||||||||||
North America | $ | $ | $ | ||||||||||||||
Europe | |||||||||||||||||
Asia/Pacific | |||||||||||||||||
Total | $ | $ | $ |
As of June 30, 2023 | |||||||||||||||||
Gross | Net | ||||||||||||||||
Carrying | Accumulated | Carrying | |||||||||||||||
(in thousands) | Amount | Amortization | Amount | ||||||||||||||
North America | $ | $ | ( | $ | |||||||||||||
Europe | ( | ||||||||||||||||
Asia/Pacific | ( | ||||||||||||||||
Total | $ | $ | ( | $ |
As of June 30, 2022 | |||||||||||||||||
Gross | Net | ||||||||||||||||
(in thousands) | Carrying Amount | Accumulated Amortization | Carrying Amount | ||||||||||||||
North America | $ | $ | ( | $ | |||||||||||||
Europe | ( | ||||||||||||||||
Total | $ | $ | ( | $ |
As of December 31, 2022 | |||||||||||||||||
Gross | Net | ||||||||||||||||
(in thousands) | Carrying Amount | Accumulated Amortization | Carrying Amount | ||||||||||||||
North America | $ | $ | ( | $ | |||||||||||||
Europe | ( | ||||||||||||||||
Total | $ | $ | ( | $ |
(in thousands) | |||||
Remaining six months of 2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
$ |
Intangible | |||||||||||
(in thousands) | Goodwill | Assets | |||||||||
Balance at December 31, 2022 | $ | $ | |||||||||
Acquisition | |||||||||||
Disposal | ( | ||||||||||
Reclassifications | |||||||||||
Amortization | — | ( | |||||||||
Foreign exchange | |||||||||||
Balance at June 30, 2023 | $ | $ |
Condensed Consolidated Balance Sheets Line Item | June 30, | December 31, | ||||||||||||
(in thousands) | 2023 | 2022 | 2022 | |||||||||||
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 | $ | $ | $ | ||||||||||
Condensed Consolidated Statements of Earnings and Comprehensive Income Line Item | Three Months Ended June 30, | ||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Operating lease cost | General administrative expenses and cost of sales | $ | $ | ||||||||
Three Months Ended June 30, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows for operating leases | $ | $ | |||||||||
Operating right-of-use assets obtained in exchange for lease obligations during the current period | |||||||||||
(in thousands) | Operating Leases | ||||
Remaining six months of 2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total lease payments | |||||
Less: Present value discount | ( | ||||
Total lease liabilities | $ |
Weighted-average remaining lease terms (in years): | 2023 | 2022 | |||||||||
Operating leases | |||||||||||
Weighted-average discount rate: | |||||||||||
Operating leases | % | % | |||||||||
(in thousands) | 5-Year Term Loan | ||||
Remaining six months of 2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Total loan outstanding | $ | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||
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 | |||||||||||
As of June 30, | December 31, | ||||||||||
(in thousands) | 2023 | 2022 | 2022 | ||||||||
Total Assets | |||||||||||
North America | $ | $ | $ | ||||||||
Europe | |||||||||||
Asia/Pacific | |||||||||||
Administrative and all other | |||||||||||
Total | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Wood construction products | $ | $ | $ | $ | ||||||||||||||||
Concrete construction products | ||||||||||||||||||||
Other | ||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Three Months Ended | |||||||||||||||||||
Increase (Decrease) in Operating Segment | ||||||||||||||||||||
June 30, | North | Asia/ | Admin & | June 30, | ||||||||||||||||
(in thousands) | 2022 | America | Europe | Pacific | All Other | 2023 | ||||||||||||||
Net sales | $ | 593,232 | $ | 9,057 | $ | (5,421) | $ | 712 | $ | — | $ | 597,580 | ||||||||
Cost of sales | 333,899 | (9,889) | (14,217) | (10) | 331 | 310,114 | ||||||||||||||
Gross profit | 259,333 | 18,946 | 8,796 | 722 | (331) | 287,466 | ||||||||||||||
Research and development and other engineering expense | 16,943 | 4,125 | 378 | 81 | 11 | 21,538 | ||||||||||||||
Selling expense | 45,074 | 5,007 | 260 | 95 | 2 | 50,438 | ||||||||||||||
General and administrative expense | 58,419 | 3,719 | 3,894 | 267 | 2,468 | 68,767 | ||||||||||||||
Total operating expenses | 120,436 | 12,851 | 4,532 | 443 | 2,481 | 140,743 | ||||||||||||||
Acquisition and integration related costs | 5,864 | — | (4,005) | — | — | 1,859 | ||||||||||||||
Net loss (gain) on disposal of assets | (43) | 32 | (146) | — | — | (157) | ||||||||||||||
Income from operations | 133,076 | 6,063 | 8,415 | 279 | (2,812) | 145,021 | ||||||||||||||
Interest income (expense), net and other | (3,372) | 1,310 | 756 | (5) | 606 | (705) | ||||||||||||||
Other & foreign exchange gain (loss), net | (1,890) | 2,195 | 636 | 453 | (1,037) | 357 | ||||||||||||||
Income (loss) before income taxes | 127,814 | 9,568 | 9,807 | 727 | (3,243) | 144,673 | ||||||||||||||
Provision for income taxes | 34,244 | (795) | 4,338 | 131 | (456) | 37,462 | ||||||||||||||
Net income (loss) | $ | 93,570 | $ | 10,363 | $ | 5,469 | $ | 596 | $ | (2,787) | $ | 107,211 |
North | Asia/ | ||||||||||||||||||||||||||||
(in thousands) | America | Europe | Pacific | Total | |||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||
June 30, 2022 | $ | 456,410 | $ | 133,238 | $ | 3,584 | $ | 593,232 | |||||||||||||||||||||
June 30, 2023 | 465,467 | 127,817 | 4,296 | 597,580 | |||||||||||||||||||||||||
Increase (decrease) | $ | 9,057 | $ | (5,421) | $ | 712 | $ | 4,348 | |||||||||||||||||||||
Percentage increase (decrease) | 2.0 | % | (4.1) | % | 19.9 | % | 0.7 | % |
North America | Europe | Asia/ Pacific | Total | ||||||||||||||||||||
Percentage of total 2022 net sales | 77 | % | 22 | % | 1 | % | 100 | % | |||||||||||||||
Percentage of total 2023 net sales | 78 | % | 21 | % | 1 | % | 100 | % |
North | Asia/ | Admin & | |||||||||||||||||||||||||||
(in thousands) | America | Europe | Pacific | All Other | Total | ||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||
June 30, 2022 | $219,299 | $39,023 | $1,098 | $(87) | $259,333 | ||||||||||||||||||||||||
June 30, 2023 | 238,245 | 47,819 | 1,820 | (418) | 287,466 | ||||||||||||||||||||||||
Increase (decrease) | $18,946 | $8,796 | $722 | $(331) | $28,133 | ||||||||||||||||||||||||
Percentage Increase | 8.6 | % | 22.5 | % | * | * | 10.8 | % |
North America | Europe | Asia/ Pacific | Admin & All Other | Total | |||||||||||||||||||||||||
2022 gross margin percentage | 48.0 | % | 29.3 | % | 30.6 | % | * | 43.7 | % | ||||||||||||||||||||
2023 gross margin percentage | 51.2 | % | 37.4 | % | 42.4 | % | * | 48.1 | % |
Six Months Ended | Increase (Decrease) in Operating Segment | Six Months Ended | |||||||||||||||||||||||||||||||||
June 30, | North | Asia/ | Admin & | June 30, | |||||||||||||||||||||||||||||||
(in thousands) | 2022 | America | Europe | Pacific | All Other | 2023 | |||||||||||||||||||||||||||||
Net sales | $ | 1,086,802 | $ | (23,343) | $ | 67,342 | $ | 1,209 | $ | — | $ | 1,132,010 | |||||||||||||||||||||||
Cost of sales | 590,688 | (29,936) | 29,395 | 1,011 | 511 | 591,669 | |||||||||||||||||||||||||||||
Gross profit | 496,114 | 6,593 | 37,947 | 198 | (511) | 540,341 | |||||||||||||||||||||||||||||
Research and development and other engineering expense | 32,809 | 8,234 | 1,253 | (32) | 20 | 42,284 | |||||||||||||||||||||||||||||
Selling expense | 81,910 | 8,959 | 8,087 | 160 | (10) | 99,106 | |||||||||||||||||||||||||||||
General and administrative expense | 112,192 | 4,632 | 13,961 | 488 | 1,201 | 132,474 | |||||||||||||||||||||||||||||
226,911 | 21,825 | 23,301 | 616 | 1,211 | 273,864 | ||||||||||||||||||||||||||||||
Acquisition and integration related costs | 12,815 | — | (9,514) | — | — | 3,301 | |||||||||||||||||||||||||||||
Net gain on disposal of assets | (1,126) | 7 | 906 | 5 | 1 | (207) | |||||||||||||||||||||||||||||
Income (loss) from operations | 257,514 | (15,239) | 23,254 | (423) | (1,723) | 263,383 | |||||||||||||||||||||||||||||
Interest income (expense), net and other | (3,585) | 1,525 | (1,994) | — | 2,780 | (1,274) | |||||||||||||||||||||||||||||
Other & foreign exchange gain (loss), net | (2,107) | 3,931 | 539 | (111) | (2,294) | (42) | |||||||||||||||||||||||||||||
Income (loss) before income taxes | 251,822 | (9,783) | 21,799 | (534) | (1,237) | 262,067 | |||||||||||||||||||||||||||||
Provision for income taxes | 63,677 | (4,720) | 8,387 | (219) | (222) | 66,903 | |||||||||||||||||||||||||||||
Net income | $ | 188,145 | $ | (5,063) | $ | 13,412 | $ | (315) | $ | (1,015) | $ | 195,164 |
North | Asia/ | ||||||||||||||||||||||
(in thousands) | America | Europe | Pacific | Total | |||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||
June 30, 2022 | $ | 895,140 | $ | 184,689 | $ | 6,973 | $ | 1,086,802 | |||||||||||||||
June 30, 2023 | 871,797 | 252,031 | 8,182 | 1,132,010 | |||||||||||||||||||
Increase (decrease) | $ | (23,343) | $ | 67,342 | $ | 1,209 | $ | 45,208 | |||||||||||||||
Percentage increase (decrease) | (2.6) | % | 36.5 | % | 17.3 | % | 4.2 | % |
North America | Europe | Asia/ Pacific | Total | ||||||||||||||||||||
Percentage of total 2022 net sales | 82 | % | 17 | % | 1 | % | 100 | % | |||||||||||||||
Percentage of total 2023 net sales | 77 | % | 22 | % | 1 | % | 100 | % |
North | Asia/ | Admin & | |||||||||||||||||||||||||||
(in thousands) | America | Europe | Pacific | All Other | Total | ||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2022 | $ | 437,175 | $ | 56,476 | $ | 2,546 | $ | (83) | $ | 496,114 | |||||||||||||||||||
June 30, 2023 | 443,767 | 94,423 | 2,744 | (593) | 540,341 | ||||||||||||||||||||||||
Increase (decrease) | $ | 6,592 | $ | 37,947 | $ | 198 | $ | (510) | $ | 44,227 | |||||||||||||||||||
Percentage increase | 1.5 | % | 67.2 | % | * | * | 8.9 | % |
(in thousand) | North America | Europe | Asia/ Pacific | Admin & All Other | Total | ||||||||||||||||||||||||
2022 gross margin percentage | 48.8 | % | 30.6 | % | 36.5 | % | * | 45.6 | % | ||||||||||||||||||||
2023 gross margin percentage | 50.9 | % | 37.5 | % | 33.5 | % | * | 47.7 | % |
As of June 30, | As of December 31, | As of June 30, | ||||||||||||||||||
(in thousands) | 2023 | 2022 | 2022 | |||||||||||||||||
Cash and cash equivalents | $ | 407,982 | $ | 300,742 | $ | 246,134 | ||||||||||||||
Property, plant and equipment, net | 375,240 | 361,555 | 346,184 | |||||||||||||||||
Equity investment, goodwill and intangible assets | 879,386 | 872,699 | 862,055 | |||||||||||||||||
Working capital excluding cash and cash equivalents | 567,874 | 529,945 | 597,079 |
Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2023 | 2022 | ||||||||||||
Net cash provided by (used in): | ||||||||||||||
Operating activities | $ | 197,240 | $ | 138,451 | ||||||||||
Investing activities | (48,049) | (833,552) | ||||||||||||
Financing activities | (40,996) | 631,531 |
EXHIBIT INDEX | ||||||||
3.1 | ||||||||
3.2 | ||||||||
10.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Schema Linkbase Document | |||||||
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Labels Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Simpson Manufacturing Co., Inc. | ||||||||||||||
(Registrant) | ||||||||||||||
DATE: | August 7, 2023 | By /s/Brian J. Magstadt | ||||||||||||
Brian J. Magstadt | ||||||||||||||
Chief Financial Officer | ||||||||||||||
(principal accounting and financial officer) | ||||||||||||||
DATE: | August 7, 2023 | By /s/Mike Olosky | ||||||||||||
Mike Olosky | ||||||||||||||
Chief Executive Officer |
DATE: | August 7, 2023 | By /s/Brian J. Magstadt | ||||||||||||
Brian J. Magstadt | ||||||||||||||
Chief Financial Officer |
DATE: | August 7, 2023 | By /s/Mike Olosky | ||||||||||||
Mike Olosky | ||||||||||||||
Chief Executive Officer | ||||||||||||||
By /s/Brian J. Magstadt | ||||||||||||||
Brian J. Magstadt | ||||||||||||||
Chief Financial Officer | ||||||||||||||
Condensed Consolidated Statements of Earnings and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Income Statement [Abstract] | ||||
Net sales | $ 597,580 | $ 593,232 | $ 1,132,010 | $ 1,086,802 |
Cost of sales | 310,114 | 333,899 | 591,669 | 590,688 |
Gross profit | 287,466 | 259,333 | 540,341 | 496,114 |
Operating expenses: | ||||
Research and development and other engineering | 21,538 | 16,943 | 42,284 | 32,809 |
Selling | 50,438 | 45,074 | 99,106 | 81,910 |
General and administrative | 68,767 | 58,419 | 132,474 | 112,192 |
Total operating expenses | 140,743 | 120,436 | 273,864 | 226,911 |
Acquisition and integration related costs | 1,859 | 5,864 | 3,301 | 12,815 |
Net gain on disposal of assets | (157) | (43) | (207) | (1,126) |
Income from operations | 145,021 | 133,076 | 263,383 | 257,514 |
Interest expense, net and other finance costs | (705) | (3,372) | (1,274) | (3,585) |
Other & foreign exchange loss, net | 357 | (1,890) | (42) | (2,107) |
Income before taxes | 144,673 | 127,814 | 262,067 | 251,822 |
Provision for income taxes | 37,462 | 34,244 | 66,903 | 63,677 |
Net income | 107,211 | 93,570 | 195,164 | 188,145 |
Other comprehensive income | ||||
Translation adjustment | (48) | (27,817) | 4,509 | (27,819) |
Unamortized pension adjustments | 180 | 860 | 400 | 689 |
Cash flow hedge adjustment, net of tax | (5,259) | 18,489 | (9,963) | 8,542 |
Comprehensive net income | $ 102,084 | $ 85,102 | $ 190,110 | $ 169,557 |
Net income per common share: | ||||
Basic | $ 2.51 | $ 2.17 | $ 4.58 | $ 4.36 |
Diluted | $ 2.50 | $ 2.16 | $ 4.55 | $ 4.34 |
Weighted average number of shares outstanding | ||||
Basic | 42,669 | 43,145 | 42,640 | 43,162 |
Diluted | 42,813 | 43,240 | 42,857 | 43,306 |
Cash dividends declared per common share | $ 0.27 | $ 0.26 | $ 0.53 | $ 0.51 |
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share | $ 0.27 | $ 0.26 | $ 0.53 | $ 0.51 |
Common stock issued per share for stock bonus (in USD per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Basis of Presentation |
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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 the cost or the equity method. All significant intercompany transactions have been eliminated. Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Management believes that these Condensed Consolidated Financial Statements include all normal and recurring adjustments necessary for a fair presentation under GAAP. Interim Reporting Period The accompanying unaudited quarterly Condensed Consolidated Financial Statements have been prepared in accordance with GAAP pursuant to the rules and regulations for reporting interim financial information and instructions on Form 10-Q. Accordingly, certain information and footnotes required by 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, 2022 (the “2022 Form 10-K”). The unaudited quarterly Condensed Consolidated Financial Statements have been prepared on the same basis as the audited 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. The year-end Condensed Consolidated Balance Sheet data provided herein were derived from audited consolidated financial statements included in the 2022 Form 10-K, 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 the interim periods presented are not necessarily indicative of the results to be expected for any future periods. Revenue Recognition Generally, the Company's revenue contract with a customer exists when (1) the goods are shipped, services are rendered, and the related invoice is generated, (2) the duration of the contract does not extend beyond the promised goods or services already transferred and (3) 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 of a product to a customer at a point in time. Our shipping terms provide the primary indicator of the transfer of control. The Company's general shipping terms are Incoterm C.P.T. (F.O.B. shipping point), where the title, and risk and rewards of ownership transfer at the point when the products are no longer on the Company's premises. Other Incoterms are allowed as exceptions depending on the product or service being sold and the nature of the sale. 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 would 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 The Company calculates net income per common share based on the weighted-average number of shares 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 of their inclusion 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 a right-of-use ("ROU") 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 a straight-line basis over the full lease term. Accounting for Stock-Based Compensation The Company recognizes stock-based compensation expense related to the estimated fair value of restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of three or four years. Stock-based expense related to performance share grants are measured based on grant date fair value and expensed on a graded basis over the service period of the awards, which is generally a performance period of three years. The performance conditions are based on the Company's achievement of revenue growth and return on invested capital over the performance period, and are evaluated for the probability of vesting at the end of each reporting period with changes in expected results recognized as an adjustment to expense. The assumptions used to calculate the fair value of restricted stock grants 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. The carrying amounts of trade accounts receivable, accounts payable, accrued liabilities and other current liabilities approximate fair value due to the short-term nature of these instruments. The fair values of the Company's interest rate and foreign currency contracts are classified as Level 2 within the fair value hierarchy. The fair values of the Company’s contingent consideration related to acquisitions and equity investments are classified as Level 3 within the fair value hierarchy, as these amounts are based on unobservable inputs developed using management's estimates and entity-specific assumptions, which reflect those that market participants would use, and are evaluated on an ongoing basis. The following tables summarize financial assets and liabilities measured at fair value as of June 30, 2023 and 2022:
1) The carrying amounts of cash equivalents, representing United States Treasury securities and money market funds traded in an active market with relatively short maturities, are reported on the consolidated balance sheet as of June 30, 2023 and 2022 as a component of "Cash and cash equivalents". (2) Derivatives for interest rate, foreign exchange and forward swap contracts are discussed in Note 8. The carrying amounts of the term loan and revolver approximate fair value as of June 30, 2023 based upon its terms and conditions in comparison to debt instruments with similar terms and conditions available on the same date. Derivative Instruments The Company uses derivative instruments as a risk management tool to mitigate the potential impact of certain market risks. Foreign currency and interest rate risk are the primary market risks the Company manages through the use of derivative instruments, which are accounted for as cash flow hedges or net investment hedges under the accounting standards and carried at fair value as other current or noncurrent assets or as other current or other long-term liabilities. Assets and liabilities with the legal right of offset are not offset. Net deferred gains and losses related to changes in fair value of cash flow hedges are included in accumulated other comprehensive income/loss ("OCI"), a component of stockholders' equity, and are reclassified into the line item in the Condensed Consolidated Statement Of Earnings And Comprehensive Income in which the hedged items are recorded in the same period the hedged item affects earnings. The effective portion of gains and losses attributable to net investment hedges is recorded net of tax to OCI to offset the change in the carrying value of the net investment being hedged. Recognition in earnings of amounts previously recorded to OCI are limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. Changes in fair value of any derivatives that are determined to be ineffective are immediately reclassified from OCI into earnings. Cash and Cash Equivalents The Company classifies investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. Current Estimated Credit Loss - Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts receivable for estimated future expected credit losses resulting from customers' failure to make payments on its accounts receivable. The Company determines the estimate of the allowance for doubtful accounts receivable by considering several factors, including (1) specific information on the financial condition and the current creditworthiness of customers, (2) credit rating, (3) payment history and historical experience, (4) aging of the accounts receivable, (5) reasonable and supportable forecasts about collectability, and (6) current market and economic conditions, and expectations of the future market and economic conditions. The Company also reserves 100% of the amounts deemed uncollectible due to a customer's deteriorating financial condition or bankruptcy. Every quarter, the Company evaluates the collectability based on customer group using the accounts receivable aging report and its best judgment when considering changes in customers' credit ratings, level of delinquency, customers' historical payments and loss experience, current market and economic conditions, and expectations of future market and economic conditions. The changes in the allowance for doubtful accounts receivable for the six months ended June 30, 2023 are outlined in the table below:
1Amount is net of recoveries and the effect of foreign currency fluctuations. Income Taxes Income taxes are calculated using an asset and liability approach. The provision for income taxes includes federal, state and foreign taxes currently payable and deferred taxes, due to temporary differences between the financial statement and tax bases of assets and liabilities. In addition, future tax benefits are recognized to the extent that realization of such benefits is more likely than not. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws in the year of enactment. The Company uses an estimated annual tax rate to measure the tax benefit or tax expense recognized in each interim period. Accounting Standards Not Yet Adopted We believe that all recently issued accounting pronouncements from the Financial Accounting Standards Board ("FASB") do not apply to us or will not have a material impact to the Condensed Consolidated Financial Statements.
|
Revenue from Contracts with Customers |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregated Revenue The Company disaggregates net sales into the following major product groups as described in its segment information included in these interim financial statements under Note 14. Wood Construction Products Revenue. Wood construction products represented approximately 86% and 87% of total net sales for the six months ended June 30, 2023 and 2022, respectively. Concrete Construction Products Revenue. Concrete construction products represented approximately 14% and 13% of total net sales for the six months ended June 30, 2023 and 2022 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 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 0.1% of net sales and recognized as the services are completed or by transferring control over a product to a customer at a point in time. 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 within the context of the contract. A distinct service is separately identifiable from other items in the bundled package if a customer can benefit from it 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, 2023, the Company had no contract assets or contract liabilities from contracts with customers.
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Acquisitions |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisition On April 1, 2022, the Company completed its acquisition (the "Acquisition") of 100% of the outstanding equity interest of FIXCO Invest S.A.S. (together with its subsidiaries, "ETANCO") for total purchase consideration of $805.4 million, net of cash acquired. The Acquisition was completed pursuant to the securities purchase agreement dated January 26, 2022, as amended, by and among the Company, Fastco Investment, Fastco Financing, LRLUX and certain other security holders. The purchase price for the Acquisition was paid using cash on hand and borrowings in the amount of $250.0 million under the revolving credit facility and $450.0 million under the term loan facility. ETANCO is a manufacturer and distributor of fastener and fixing products headquartered in France and its primary product applications directly align with the addressable markets in which the Company operates. The Acquisition allows the Company to enter into new commercial building markets such as façades, waterproofing, safety and solar, as well as grow its share of direct business sales in Europe. ETANCO’s results of operations were included in the Company's Condensed Consolidated Financial Statements from April 1, 2022 the acquisition date. ETANCO had net sales of $80.3 million and net loss of $2.0 million, for the three and six months ended June 30, 2022, which includes costs related to the amortization of acquired intangible assets, and expenses incurred for integration. Purchase price allocation The Acquisition was accounted for using the acquisition method of accounting in accordance with Accounting Standards Codification 805, Business Combinations ("ASC 805") which requires, among other things, that assets acquired and liabilities assumed in a business combination be recorded at fair value as of the acquisition date with limited exceptions. The allocation of the $824.4 million purchase price, including cash, to the fair values of the tangible and intangible assets acquired and liabilities assumed is as follows:
Trade accounts receivable, net The gross amount of trade receivables acquired was approximately $67.4 million, of which $63.6 million was estimated to be recoverable based on ETANCO's historical trend for collections. Inventory Acquired inventory primarily consists of raw materials and finished goods consisting of building and construction materials products. The Company adjusted acquired finished goods higher by $10.9 million to estimated fair value based on expected selling prices less a reasonable amount for selling efforts. The fair value adjustment is recognized as a component of cost of sales over the inventory’s expected turnover period, and as a result, $9.2 million of the adjustment was recognized during the three and six months ended June 30, 2022. Property and equipment, net Acquired property and equipment includes land of $22.3 million, buildings and site improvements of $29.4 million, and machinery, equipment, and software of $35.5 million. The estimated fair value of property and equipment was determined primarily using market and/or or cost approach methodologies. The acquired fair value for buildings and site improvements depreciate on a straight-line basis over the estimated useful lives of the assets for a period of up to sixteen years, machinery, equipment and software will depreciate on an accelerated basis over an estimated useful life of to ten years. Depreciation expense associated with the acquired property and equipment amounted to $1.4 million for the three and six months ended June 30, 2022. Goodwill The excess of the purchase price over the net assets acquired was recognized as goodwill and relates to the value that is expected from the acquired assembled workforce as well as the increased scale and synergies resulting from the integration of both businesses. The goodwill recognized from the Acquisition is not deductible for local income tax purposes. Goodwill has been allocated to components within the ETANCO reporting unit. Intangible assets, net The estimated fair value of intangible assets acquired was determined primarily using income approach methodologies. The values allocated to intangible assets and the useful lives were as follows:
The acquired definite-lived intangible assets are being amortized on a straight-line basis over estimated useful lives, which approximates the pattern in which these assets are utilized. The Company recognized $4.2 million, of amortization expense on these assets during the three and six months ended June 30, 2022. Deferred taxes As a result of the increase in fair value of inventory, property and equipment, and intangible assets, deferred tax liabilities of $104.5 million were recognized, primarily due to intangible assets. Acquisition and integration related costs During the three and six months ended June 30, 2022, the Company incurred acquisition and integration related expenses of $5.9 million and $12.8 million, respectively, for investment banking, legal, accounting, advisory, and consulting fees. These costs were included in the Company’s income from operations. Unaudited pro forma results The following unaudited pro forma combined financial information presents estimated results as if the Company acquired ETANCO on January 1, 2021. The unaudited pro forma financial information as presented below is for informational purposes only and does not purport to actually represent what the Company’s combined results of operations would have been had the Acquisition occurred on January 1, 2021, or what those results will be for any future periods. The following unaudited pro forma consolidated financial information has been prepared using the acquisition method of accounting in accordance with U.S. GAAP:
The unaudited pro forma results above includes the following adjustments to net income: 1) Acquisition and integration related costs of $5.9 million which were incurred during the three and six months ended June 30, 2022, were adjusted as if such costs were incurred during the twelve months ended December 31, 2021. 2) The $9.2 million of amortization related to the fair value adjustment for inventory and recognized during the three and six months ended June 30, 2022 was adjusted as if incurred during the three months ended March 31, 2021. 3) Net income for ETANCO includes adjustments of $0.4 million to conform ETANCO’s historical financial results prepared under French GAAP to U.S. GAAP for the three and six months ended June 30, 2022. The U.S. GAAP adjustments are primarily related to share-based payments expense on awards that were settled prior to the Acquisition, and costs incurred and capitalized by ETANCO on its historical acquisitions.
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Net Income Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share | Net Income per Share The following shows a reconciliation of basic net earnings per share ("EPS") to diluted EPS:
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Stock-Based Compensation |
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Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company allocates stock-based compensation expense amongst 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. Stock-based compensation capitalized in inventory was immaterial for all periods presented. The Company recognized stock-based compensation expense related to its equity plans for employees of $6.5 million and $4.7 million for the three months ended June 30, 2023 and 2022, respectively, and $11.2 million and $9.5 million for the six months ended June 30, 2023 and 2022, respectively. During the six months ended June 30, 2023, the Company granted 277,793 restricted stock units (RSUs) and performance stock units (PSUs) to the Company's employees, including officers at an estimated weighted average fair value of $99.66 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 and PSUs granted to the Company's employees may be time-based or time and performance-based. Certain of the PSUs 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 award agreement over a cumulative three year period, after which time these awards cliff vest. In addition, these same officers and key employees also receive time-based RSUs, which vest pursuant to a three-year graded vesting schedule. Time-based RSUs that are granted to the Company's employees excluding officers and certain key employees, vest ratably over the four year vesting-term of the award. The Company’s nine non-employee directors are entitled to receive an aggregate of approximately $1.1 million in equity compensation annually. The number of shares ultimately granted are based on the average closing share price for the Company over the 60 day period prior to approval of the award in the second quarter of each year. In April 2023 and June 2023, the Company granted 9,776 shares of the Company's common stock to the non-employee directors, based on the average closing price of $122.50 per share and recognized $1.2 million of expense. As of June 30, 2023, the Company's aggregate unamortized stock compensation expense was approximately $29.2 million which is expected to be recognized in expense over a weighted-average period of 2.5 years.
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Trade Accounts Receivable, Net |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade Accounts Receivable, Net | Trade Accounts Receivable, net Trade accounts receivable consisted of the following:
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The components of inventories are as follows:
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments The Company enters into derivative instrument agreements, including forward foreign currency exchange contracts, interest rate swaps, and cross currency swaps to manage risk in connection with changes in foreign currency and interest rates. The Company hedges committed exposures and does not engage in speculative transactions. The Company only enters into derivative instrument agreements with counterparties who have highly rated credit. As of June 30, 2023, the aggregate notional amount of the Company's outstanding interest rate contracts, cross currency swap contracts, EUR forward contract and CNY forward contracts were $571.9 million, $442.3 million, $321.7 million and $5.9 million (CNY40.4 million), respectively. Changes in fair value of any forward contracts that are determined to be ineffective are immediately reclassified from OCI into earnings. There were no amounts recognized due to ineffectiveness during the three and six months ended June 30, 2023 and June 30, 2022. The effects of fair value and cash flow hedge accounting on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the six months ended June 30, were as follows:
The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended June 30, 2023 and 2022 were as follows:
The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the six months ended June 30, 2023 and 2022 were as follows:
For the three months ending June 30, 2023 losses on the net investment hedge, and June 30, 2022 gains on net investment hedge of $4.1 million and $18.1 million were included in OCI, respectively. For the three months ending June 30, 2023 and June 30, 2022, excluded gains of $1.3 million and $1.1 million were reclassified from OCI to interest expense, respectively. For the six months ending June 30, 2023 losses on the net investment hedge, and June 30, 2022 gains on net investment hedge of $4.4 million and $11.3 million were included in OCI, respectively. For the six months ending June 30, 2023 and June 30, 2022, excluded gains of $2.5 million and $1.1 million were reclassified from OCI to interest expense, respectively. As of June 30, 2023, the aggregate fair values of the Company’s derivative instruments on the Condensed Consolidated Balance Sheet were comprised of an asset of $37.9 million, of which $19.5 million is included in other current assets, and the balance of $18.4 million as other non-current assets, and of a liability of $18.9 million, of which $0.3 million is included in accrued liabilities and other current liabilities, and the balance of $18.6 million as deferred income tax and other long-term liabilities.
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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 consisted of the following:
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets, net Goodwill consisted of the following:
Intangible assets, net, consisted of the following:
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 of definite-lived intangible assets was $6.0 million and $5.3 million for the three months ended June 30, 2023 and 2022, respectively, and was $11.6 million and $6.4 million for the six months ended June 30, 2023 and 2022, respectively. The weighted-average amortization period for all amortizable intangibles on a combined basis is 8.8 years. Indefinite-lived intangible assets totaled $92.8 million, $88.9 million, and $91.7 million as of June 30, 2023, and 2022 and December 31, 2022, respectively. At June 30, 2023, 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, 2023, were as follows:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company has operating leases for certain facilities, equipment and automobiles. The existing operating leases expire at various dates through 2027, some of which include options to extend the leases for up to five 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 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, 2023 and 2022 and December 31, 2022, Condensed Consolidated Statements of Earnings and Comprehensive Income, and Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022:
The components of lease expense were as follows:
Other Information Supplemental cash flow information related to leases is as follows:
The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2023:
The following table summarizes the Company's lease terms and discount rates as of June 30, 2023 and 2022:
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Leases | Leases The Company has operating leases for certain facilities, equipment and automobiles. The existing operating leases expire at various dates through 2027, some of which include options to extend the leases for up to five 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 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, 2023 and 2022 and December 31, 2022, Condensed Consolidated Statements of Earnings and Comprehensive Income, and Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022:
The components of lease expense were as follows:
Other Information Supplemental cash flow information related to leases is as follows:
The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2023:
The following table summarizes the Company's lease terms and discount rates as of June 30, 2023 and 2022:
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Debt |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt As of June 30, 2023, the Company has $571.9 million, excluding deferred financing costs, outstanding under its Amended and Restated Credit Facility. The Company had outstanding balances of $694.4 million and $583.2 million under the Amended and Restated Credit Facility as of June 30, 2022, and December 31, 2022, respectively. The following is a schedule, by years, of maturities for the remaining term loan facility as of June 30, 2023:
The $150.0 million outstanding under the revolving credit facility is due on March 31, 2027. The Company was in compliance with its financial covenants under the Amended and Restated Credit Facility as of June 30, 2023. Certain of the Company's domestic subsidiaries are guarantors for a credit agreement between certain of its foreign subsidiaries and institutional lenders that is in addition to the Amended and Restated Credit Facility. As of June 30, 2023, all of the Company's credit facilities provide a total of $306.1 million in available borrowing capacity and an irrevocable standby letter of credit in support of various insurance deductibles.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental The Company’s policy with regard to environmental liabilities is to accrue for future environmental assessments and remediation costs when information becomes available that indicates that it is probable that the Company is liable for any related claims and assessments and the amount of the liability is reasonably estimable. The Company does not believe that any such matters will have a material adverse effect on the Company’s financial condition, cash flows or results of operations. Litigation and Potential Claims From time to time, the Company is involved in various legal proceedings and other matters arising in the normal course of business. Corrosion, hydrogen embrittlement, cracking, material hardness, wood pressure-treating chemicals, misinstallations, misuse, design and assembly flaws, manufacturing defects, labeling defects, product formula defects, inaccurate chemical mixes, adulteration, environmental conditions, or other factors can contribute to failure of fasteners, connectors, anchors, adhesives, specialty chemicals, such as fiber reinforced polymers, and tool products. In addition, inaccuracies may occur in product information, descriptions and instructions found in catalogs, packaging, data sheets, and the Company’s website. The resolution of any claim or litigation is subject to inherent uncertainty and could have a material adverse effect on the Company’s financial condition, cash flows or results of operations.
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Segment Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company is organized into three reporting segments defined by the regions where the Company’s products are manufactured, marketed and distributed to its customers. The three reporting segments are the North America segment (comprised primarily of the Company’s operations in the U.S. and Canada), the Europe segment, which includes ETANCO, and the Asia/Pacific segment (comprised of the Company’s operations in Asia and the South Pacific), These segments are similar in several ways, including the types of materials used, the production processes, the distribution channels and the product applications. The Administrative & All Other line item primarily includes expenses such as self-insured workers compensation claims for employees, stock-based compensation for certain members of management, interest expense, foreign exchange gains or losses and income tax expense, as well as revenues and expenses related to real estate activities. The following tables illustrate certain measurements used by management to assess the performance of its reportable segments as of or the following periods:
* Sales to other segments are eliminated in consolidation.
Cash collected by the Company’s U.S. subsidiaries is routinely transferred into the Company’s cash management accounts and, therefore is in the total assets of “Administrative and all other.” Cash and cash equivalent balances in the “Administrative and all other” segment were $326.5 million, $167.4 million, and $222.5 million, as of June 30, 2023 and 2022, and December 31, 2022, respectively. Also included in the total assets of "Administrative and all other" are intercompany borrowings due from the Europe segment. Included in the total assets of each segment are net intercompany borrowings due to and from the other segments. The Company’s wood construction products include connectors, truss plates, fastening systems, fasteners and pre-fabricated shearwalls that are used for connecting and strengthening wood-based construction primarily in residential and commercial construction. Its concrete construction products include adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools and reinforcing fiber materials that are used for restoration, protection or strengthening concrete, masonry and steel construction in residential, industrial, commercial and infrastructure construction. The table below illustrates the distribution of the Company’s sales by product group as additional information for the following periods:
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Subsequent Events |
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Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declared On July 28, 2023, the Company’s Board of Directors (the "Board") declared a quarterly cash dividend of $0.27 per share, estimated to be $11.5 million in total. The dividend will be payable on October 26, 2023, to the Company's stockholders of record on October 5, 2023.
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Basis of Presentation (Policies) |
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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 the cost or the equity method. All significant intercompany transactions have been eliminated.
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Use of Estimates | Use of Estimates |
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Interim Period Reporting | Interim Reporting Period The accompanying unaudited quarterly Condensed Consolidated Financial Statements have been prepared in accordance with GAAP pursuant to the rules and regulations for reporting interim financial information and instructions on Form 10-Q. Accordingly, certain information and footnotes required by 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, 2022 (the “2022 Form 10-K”). The unaudited quarterly Condensed Consolidated Financial Statements have been prepared on the same basis as the audited 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. The year-end Condensed Consolidated Balance Sheet data provided herein were derived from audited consolidated financial statements included in the 2022 Form 10-K, 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 the interim periods presented are not necessarily indicative of the results to be expected for any future periods.
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Revenue Recognition | Revenue Recognition |
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Net Income Per Common Share | Net Income Per Common Share The Company calculates net income per common share based on the weighted-average number of shares 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 of their inclusion 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 a right-of-use ("ROU") 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 a straight-line basis over the full lease term.
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Equity Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. The carrying amounts of trade accounts receivable, accounts payable, accrued liabilities and other current liabilities approximate fair value due to the short-term nature of these instruments. The fair values of the Company's interest rate and foreign currency contracts are classified as Level 2 within the fair value hierarchy. The fair values of the Company’s contingent consideration related to acquisitions and equity investments are classified as Level 3 within the fair value hierarchy, as these amounts are based on unobservable inputs developed using management's estimates and entity-specific assumptions, which reflect those that market participants would use, and are evaluated on an ongoing basis. The following tables summarize financial assets and liabilities measured at fair value as of June 30, 2023 and 2022:
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Derivative Instruments - Foreign Currency Contracts | Derivative Instruments The Company uses derivative instruments as a risk management tool to mitigate the potential impact of certain market risks. Foreign currency and interest rate risk are the primary market risks the Company manages through the use of derivative instruments, which are accounted for as cash flow hedges or net investment hedges under the accounting standards and carried at fair value as other current or noncurrent assets or as other current or other long-term liabilities. Assets and liabilities with the legal right of offset are not offset. Net deferred gains and losses related to changes in fair value of cash flow hedges are included in accumulated other comprehensive income/loss ("OCI"), a component of stockholders' equity, and are reclassified into the line item in the Condensed Consolidated Statement Of Earnings And Comprehensive Income in which the hedged items are recorded in the same period the hedged item affects earnings. The effective portion of gains and losses attributable to net investment hedges is recorded net of tax to OCI to offset the change in the carrying value of the net investment being hedged. Recognition in earnings of amounts previously recorded to OCI are limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. Changes in fair value of any derivatives that are determined to be ineffective are immediately reclassified from OCI into earnings.
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Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company classifies investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Estimated Credit Loss - Allowance for Doubtful Accounts | Current Estimated Credit Loss - Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts receivable for estimated future expected credit losses resulting from customers' failure to make payments on its accounts receivable. The Company determines the estimate of the allowance for doubtful accounts receivable by considering several factors, including (1) specific information on the financial condition and the current creditworthiness of customers, (2) credit rating, (3) payment history and historical experience, (4) aging of the accounts receivable, (5) reasonable and supportable forecasts about collectability, and (6) current market and economic conditions, and expectations of the future market and economic conditions. The Company also reserves 100% of the amounts deemed uncollectible due to a customer's deteriorating financial condition or bankruptcy. Every quarter, the Company evaluates the collectability based on customer group using the accounts receivable aging report and its best judgment when considering changes in customers' credit ratings, level of delinquency, customers' historical payments and loss experience, current market and economic conditions, and expectations of future market and economic conditions. The changes in the allowance for doubtful accounts receivable for the six months ended June 30, 2023 are outlined in the table below:
1Amount is net of recoveries and the effect of foreign currency fluctuations.
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Income Taxes | Income Taxes Income taxes are calculated using an asset and liability approach. The provision for income taxes includes federal, state and foreign taxes currently payable and deferred taxes, due to temporary differences between the financial statement and tax bases of assets and liabilities. In addition, future tax benefits are recognized to the extent that realization of such benefits is more likely than not. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws in the year of enactment. 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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Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted We believe that all recently issued accounting pronouncements from the Financial Accounting Standards Board ("FASB") do not apply to us or will not have a material impact to the Condensed Consolidated Financial Statements.
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Basis of Presentation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following tables summarize financial assets and liabilities measured at fair value as of June 30, 2023 and 2022:
1) The carrying amounts of cash equivalents, representing United States Treasury securities and money market funds traded in an active market with relatively short maturities, are reported on the consolidated balance sheet as of June 30, 2023 and 2022 as a component of "Cash and cash equivalents". (2) Derivatives for interest rate, foreign exchange and forward swap contracts are discussed in Note 8. The carrying amounts of the term loan and revolver approximate fair value as of June 30, 2023 based upon its terms and conditions in comparison to debt instruments with similar terms and conditions available on the same date.
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Accounts Receivable, Allowance for Credit Loss | The changes in the allowance for doubtful accounts receivable for the six months ended June 30, 2023 are outlined in the table below:
1Amount is net of recoveries and the effect of foreign currency fluctuations.
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Acquisitions (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The allocation of the $824.4 million purchase price, including cash, to the fair values of the tangible and intangible assets acquired and liabilities assumed is as follows:
The estimated fair value of intangible assets acquired was determined primarily using income approach methodologies. The values allocated to intangible assets and the useful lives were as follows:
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Business Acquisition, Pro Forma Information | The following unaudited pro forma consolidated financial information has been prepared using the acquisition method of accounting in accordance with U.S. GAAP:
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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 shows a reconciliation of basic net earnings per share ("EPS") to diluted EPS:
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Trade Accounts Receivable, Net (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of trade accounts receivable, net |
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of carrying values of inventories |
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Derivative Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) | The effects of fair value and cash flow hedge accounting on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the six months ended June 30, were as follows:
The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended June 30, 2023 and 2022 were as follows:
The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the six months ended June 30, 2023 and 2022 were as follows:
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Property, Plant and Equipment, Net (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property, plant and equipment |
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Goodwill and Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill, by segment | Goodwill consisted of the following:
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Schedule of net intangible assets, by segment | ntangible assets, net, consisted of the following:
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Schedule of estimated future amortization of intangible assets | At June 30, 2023, 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, 2023, were as follows:
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Information | The following table provides a summary of leases included on the Condensed Consolidated Balance Sheets as of June 30, 2023 and 2022 and December 31, 2022, Condensed Consolidated Statements of Earnings and Comprehensive Income, and Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022:
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Lease, Cost | The components of lease expense were as follows:
Other Information Supplemental cash flow information related to leases is as follows:
The following table summarizes the Company's lease terms and discount rates as of June 30, 2023 and 2022:
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Operating Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2023:
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Finance Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2023:
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | The following is a schedule, by years, of maturities for the remaining term loan facility as of June 30, 2023:
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Segment Information (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 the following periods:
* Sales to other segments are eliminated in consolidation.
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Schedule of net sales distributed by product group | The table below illustrates the distribution of the Company’s sales by product group as additional information for the following periods:
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Basis of Presentation - Accounting for Stock-based Compensation (Details) |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Vesting period | 60 days | 4 years |
Performance period | 3 years |
Basis of Presentation - Accounts Receivable, Allowance for Credit Loss (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percentage of uncollectible accounts receivable | 100.00% |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for doubtful accounts, beginning balance | $ 3,240 |
Expense (Deductions), net | 459 |
Write-Offs | (88) |
Allowance for doubtful accounts, ending balance | $ 3,611 |
Revenue from Contracts with Customers (Details) - ASC 606 |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Wood construction products | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 86.00% | 87.00% | |
Concrete construction products | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 14.00% | 13.00% | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 0.10% |
Acquisitions - Preliminary Allocation of Purchase Price (Details) - ETANCO - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2023 |
|
Acquisitions | ||
Cash and cash equivalents | $ 19,010 | |
Trade accounts receivable, net | 63,607 | |
Inventory | 107,185 | |
Other current assets | 4,491 | |
Property and equipment, net | 89,695 | |
Operating lease right-of-use assets | 5,361 | |
Goodwill | 365,591 | |
Intangible assets, net | 357,327 | |
Other noncurrent assets | 2,881 | |
Total assets | 1,015,148 | |
Trade accounts payable | 46,457 | |
Accrued liabilities and other current liabilities | 22,079 | |
Operating lease liabilities | 5,176 | |
Deferred income tax and other long-term liabilities | 117,031 | |
Total purchase price | 824,405 | |
Inventory Fair Value Adjustment | $ 9,200 | |
ETANCO | ||
Acquisitions | ||
Trade accounts receivable, net | $ 63,600 |
Acquisitions - Intangible Assets, Net (Details) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2023
USD ($)
|
|
Acquisitions | ||
Weighted-average useful life (in years) | 8 years 9 months 18 days | |
ETANCO | ||
Acquisitions | ||
Intangible assets, net | $ 357,327 | $ 357,327 |
Indefinite and Finite Lived Intangible Assets, Total | 357,327 | $ 357,327 |
ETANCO | Customer relationships | ||
Acquisitions | ||
Weighted-average useful life (in years) | 15 years | |
Intangible assets, net | 248,398 | $ 248,398 |
ETANCO | Trade names | ||
Acquisitions | ||
Indefinite-Lived Intangible Assets | 93,811 | $ 93,811 |
ETANCO | Developed technology | ||
Acquisitions | ||
Weighted-average useful life (in years) | 10 years | |
Intangible assets, net | $ 11,256 | $ 11,256 |
ETANCO | Patents | ||
Acquisitions | ||
Weighted-average useful life (in years) | 8 years | |
Intangible assets, net | $ 3,862 | $ 3,862 |
Acquisitions - Pro Forma for Net Income (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2022 |
Jun. 30, 2022 |
Sep. 30, 2022 |
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Amortization, Pro Forma | |||
Acquisitions | |||
Net income | $ 9,200 | ||
ETANCO | |||
Acquisitions | |||
Net sales | $ 593,232 | $ 1,165,986 | |
Net income | $ 104,823 | $ 210,772 | |
Basic (in usd per share) | $ 2.43 | $ 4.88 | |
Diluted (in usd per share) | $ 2.42 | $ 4.87 | |
Basic (in shares) | 43,145 | 43,162 | |
Diluted (in shares) | 43,240 | 43,306 |
Net Income Per Share - Reconciliation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Reconciliation of basic earnings per share ("EPS") to diluted EPS | ||||
Net income available to common stockholders | $ 107,211 | $ 93,570 | $ 195,164 | $ 188,145 |
Basic weighted-average shares outstanding | 42,669 | 43,145 | 42,640 | 43,162 |
Dilutive effect of potential common stock equivalents — restricted stock units | 144 | 95 | 217 | 144 |
Diluted weighted-average shares outstanding | 42,813 | 43,240 | 42,857 | 43,306 |
Net income per common share: | ||||
Basic | $ 2.51 | $ 2.17 | $ 4.58 | $ 4.36 |
Diluted | $ 2.50 | $ 2.16 | $ 4.55 | $ 4.34 |
Trade Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|
Receivables [Abstract] | |||
Trade accounts receivable | $ 397,212 | $ 276,229 | $ 382,016 |
Allowance for doubtful accounts | (3,611) | (3,240) | (2,211) |
Allowance for sales discounts and returns | (5,684) | (3,865) | (4,675) |
Trade accounts receivable, net | $ 387,917 | $ 269,124 | $ 375,130 |
Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|
Inventory Disclosure [Abstract] | |||
Raw materials | $ 164,019 | $ 187,149 | $ 193,254 |
In-process products | 53,883 | 55,171 | 47,141 |
Finished products | 305,659 | 314,481 | 299,449 |
Total inventories | $ 523,561 | $ 556,801 | $ 539,844 |
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 780,252 | $ 762,422 | $ 728,913 |
Less accumulated depreciation and amortization | (451,134) | (432,392) | (415,029) |
Property, plant and equipment excluding capital projects in progress, net | 329,118 | 330,030 | 313,884 |
Capital projects in progress | 46,122 | 31,525 | 32,300 |
Property, plant and equipment, net | 375,240 | 361,555 | 346,184 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 51,558 | 50,025 | 55,279 |
Buildings and site improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 235,209 | 233,123 | 223,920 |
Leasehold improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 7,131 | 6,367 | 6,062 |
Machinery, equipment, and software | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 486,354 | $ 472,907 | $ 443,652 |
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|
Carrying amount of goodwill by reportable segment | |||
Goodwill | $ 495,065 | $ 495,672 | $ 492,338 |
North America | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | 103,630 | 103,572 | 96,264 |
Europe | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | 390,172 | 390,799 | 394,761 |
Asia/Pacific | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | $ 1,263 | $ 1,301 | $ 1,313 |
Goodwill and Intangible Assets - Intangible Assets, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 6,000 | $ 5,300 | $ 11,638 | $ 6,400 | |
Weighted-average useful life (in years) | 8 years 9 months 18 days | ||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 445,359 | 410,883 | $ 445,359 | 410,883 | $ 427,036 |
Accumulated amortization | (75,710) | (53,185) | (75,710) | (53,185) | (64,119) |
Net carrying amount | 369,649 | 357,698 | 369,649 | 357,698 | 362,917 |
North America | |||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 63,269 | 46,642 | 63,269 | 46,642 | 53,498 |
Accumulated amortization | (31,765) | (28,063) | (31,765) | (28,063) | (29,782) |
Net carrying amount | 31,504 | 18,579 | 31,504 | 18,579 | 23,716 |
Europe | |||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 377,866 | 364,241 | 377,866 | 364,241 | 373,538 |
Accumulated amortization | (43,748) | (25,122) | (43,748) | (25,122) | (34,337) |
Net carrying amount | 334,118 | $ 339,119 | 334,118 | $ 339,119 | $ 339,201 |
Asia/Pacific | |||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 4,224 | 4,224 | |||
Accumulated amortization | (197) | (197) | |||
Net carrying amount | $ 4,027 | $ 4,027 |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortization of intangibles | $ 6,000 | $ 5,300 | $ 11,638 | $ 6,400 | |
ETANCO | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortization of intangibles | 4,200 | ||||
Trade names | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets | $ 92,800 | $ 88,900 | $ 92,800 | $ 88,900 | $ 91,700 |
Goodwill and Intangible Assets - Estimated Future Amortization (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining six months of 2023 | $ 11,225 |
2024000 | 22,294 |
2025000 | 22,069 |
2026000 | 21,492 |
2027000 | 21,298 |
2028000 | 21,077 |
Thereafter | 157,380 |
Total | $ 276,835 |
Weighted-average useful life (in years) | 8 years 9 months 18 days |
Goodwill and Intangible Assets - Carrying Amount of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Goodwill | ||||
Balance at the beginning of the period | $ 495,672 | |||
Foreign exchange | 5,071 | |||
Balance at the end of the period | $ 495,065 | $ 492,338 | 495,065 | $ 492,338 |
Goodwill, Acquired During Period | 0 | |||
Disposal Group, Including Discontinued Operation, Goodwill | (5,678) | 0 | (5,678) | 0 |
Reclassifications | 0 | |||
Intangible Assets | ||||
Balance at the beginning of the period | 362,917 | |||
Acquisition | 13,996 | |||
Reclassifications | 46 | |||
Amortization | (6,000) | (5,300) | (11,638) | (6,400) |
Foreign exchange | 4,328 | |||
Balance at the end of the period | $ 369,649 | $ 357,698 | $ 369,649 | $ 357,698 |
Leases - Narrative (Details) |
Jun. 30, 2023 |
---|---|
Leases [Abstract] | |
Option to extend term | 5 years |
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 63,358 | $ 57,652 | $ 48,984 |
Operating - current | 12,809 | 11,544 | 9,831 |
Operating - noncurrent | 51,560 | 46,882 | 39,654 |
Total operating lease liabilities | 64,369 | 58,426 | 49,485 |
Property and equipment, gross | 0 | 3,569 | 3,569 |
Accumulated amortization | 0 | (3,569) | (3,556) |
Property and equipment, net | $ 0 | $ 0 | $ 13 |
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Leases [Abstract] | ||
Operating lease cost | $ 4,192 | $ 3,364 |
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Lease, Cost [Abstract] | ||
Operating cash flows for operating leases | $ 3,932 | $ 3,296 |
Operating right-of-use assets obtained in exchange for lease obligations during the current period | $ 8,423 | $ 2,936 |
Leases - Maturity (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|
Operating Leases | |||
Remaining six months of 2023 | $ 7,986 | ||
2024 | 14,612 | ||
2025 | 12,843 | ||
2026 | 10,231 | ||
2027 | 8,198 | ||
Thereafter | 20,107 | ||
Total lease payments | 73,977 | ||
Less: Present value discount | (9,608) | ||
Total operating lease liabilities | $ 64,369 | $ 58,426 | $ 49,485 |
Leases - Lease Terms and Discount Rates (Details) |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 5 years 10 months 24 days | 6 years 4 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.70% | 4.80% |
Debt (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Debt | |||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 571.9 | $ 694.4 | $ 583.2 |
Revolving Credit Facility | |||
Debt | |||
Proceeds from Lines of Credit | 306.1 | ||
Revolving Credit Facility | Fair Value, Inputs, Level 2 | |||
Debt | |||
Revolving loan | $ 150.0 |
Debt - Schedule of Maturity (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Remaining six months of 2023 | $ 11,250 |
2024 | 22,500 |
2025 | 22,500 |
2026 | 22,500 |
2027 | 343,125 |
Total loan outstanding | $ 421,875 |
Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Segment Information | |||||
Net sales | $ 597,580 | $ 593,232 | $ 1,132,010 | $ 1,086,802 | |
Income (Loss) from Operations | 145,021 | 133,076 | 263,383 | 257,514 | |
Total Assets | 2,719,349 | 2,485,468 | 2,719,349 | 2,485,468 | $ 2,503,971 |
Cash and cash equivalent | 407,982 | 246,134 | 407,982 | 246,134 | 300,742 |
Intersegment elimination | |||||
Segment Information | |||||
Net sales | 10,939 | 10,652 | 19,622 | 22,036 | |
Administrative and all other | |||||
Segment Information | |||||
Income (Loss) from Operations | (12,762) | (9,875) | (22,125) | (20,403) | |
Total Assets | 410,730 | 535,690 | 410,730 | 535,690 | 399,770 |
Cash and cash equivalent | 326,500 | 167,400 | 326,500 | 167,400 | 222,500 |
North America | |||||
Segment Information | |||||
Net sales | 465,467 | 456,410 | 871,797 | 895,140 | |
Income (Loss) from Operations | 143,430 | 137,291 | 257,823 | 273,064 | |
Total Assets | 1,570,275 | 1,225,176 | 1,570,275 | 1,225,176 | 1,393,968 |
North America | Intersegment elimination | |||||
Segment Information | |||||
Net sales | 1,524 | 1,441 | 2,692 | 2,575 | |
Europe | |||||
Segment Information | |||||
Net sales | 127,817 | 133,238 | 252,031 | 184,689 | |
Income (Loss) from Operations | 13,974 | 5,560 | 27,444 | 4,189 | |
Total Assets | 702,740 | 689,621 | 702,740 | 689,621 | 675,634 |
Europe | Intersegment elimination | |||||
Segment Information | |||||
Net sales | 1,459 | 1,271 | 3,072 | 2,955 | |
Asia/Pacific | |||||
Segment Information | |||||
Net sales | 4,296 | 3,584 | 8,182 | 6,973 | |
Income (Loss) from Operations | 379 | 100 | 241 | 664 | |
Total Assets | 35,604 | 34,981 | 35,604 | 34,981 | $ 34,599 |
Asia/Pacific | Intersegment elimination | |||||
Segment Information | |||||
Net sales | $ 7,956 | $ 7,940 | $ 13,858 | $ 16,506 |
Segment Information (Details 2) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Net sales and long-lived assets by geographical area | ||||
Net sales | $ 597,580 | $ 593,232 | $ 1,132,010 | $ 1,086,802 |
Wood construction products | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 515,378 | 514,832 | 970,137 | 950,191 |
Concrete construction products | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 81,319 | 78,209 | 157,990 | 136,185 |
Other | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 883 | 191 | 3,883 | 426 |
North America | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | $ 465,467 | $ 456,410 | $ 871,797 | $ 895,140 |
Segment Information (Narrative) (Details) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2023
USD ($)
segment
|
Dec. 31, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
|
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ 407,982 | $ 300,742 | $ 246,134 |
Number of reportable segments | segment | 3 | ||
Administrative and all other | |||
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ 326,500 | $ 222,500 | $ 167,400 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 27, 2023 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Subsequent Event [Line Items] | |||||
Cash dividends declared per common share | $ 0.27 | $ 0.26 | $ 0.53 | $ 0.51 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash dividends declared per common share | $ 0.27 | ||||
Dividends | $ 11.5 |
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