falsedesktopCBPX2019-09-30000159248019000033{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "CONTINENTAL BUILDING PRODUCTS INC.\t\t\t\t\t\t\t\t\n(Exact name of registrant as specified in its charter)\t\t\t\t\t\t\t\t\nDelaware\t\t\t\t\t\t\t\t61-1718923\n(State or other jurisdiction of incorporation)\t\t\t\t\t\t\t\t(I.R.S Employer Identification No.)\n12950 Worldgate Drive\t\tSuite 700\t\tHerndon\t\tVA\t20170\n(Address of principal executive offices)\t\t\t\t\t\t\t\t(Zip Code)\n(703)\t\t\t\t\t\t\t\t480-3800\n(Registrant's telephone number including the area code)\t\t\t\t\t\t\t\t\n", "q10k_tbl_1": "Part I - Financial Information\t\t\t4\nItem 1.\tFinancial Statements\t4\n\tConsolidated Statements of Operations\t4\n\tConsolidated Statements of Comprehensive Income\t5\n\tConsolidated Balance Sheets\t6\n\tConsolidated Statements of Cash Flows\t7\n\tConsolidated Statement of Equity\t8\n\tNotes to the Unaudited Consolidated Financial Statements\t10\n\t1. Background and Nature of Operations\t10\n\t2. Significant Accounting Policies\t10\n\t3. Trade Receivables Net\t11\n\t4. Inventories Net\t12\n\t5. Property Plant and Equipment Net\t12\n\t6. Customer Relationships and Other Intangibles Net\t12\n\t7. Investment in Seven Hills\t13\n\t8. Accrued and Other Liabilities\t13\n\t9. Debt\t14\n\t10. Derivative Instruments\t15\n\t11. Leases\t16\n\t12. Treasury Stock\t17\n\t13. Share-Based Compensation\t18\n\t14. Accumulated Other Comprehensive Loss\t18\n\t15. Income Taxes\t18\n\t16. Earnings Per Share\t18\n\t17. Commitments and Contingencies\t19\n\t18. Segment Reporting\t20\n\t19. Fair Value Disclosures\t21\n\t20. Buchanan Plant Outage\t23\n\t21. Subsequent Event\t25\nItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t24\n\tOverview\t24\n\tResults of Operations\t26\n\tLiquidity and Capital Resources\t28\n\tCritical Accounting Policies and Estimates\t29\n\tForward-Looking Statements\t29\nItem 3.\tQuantitative and Qualitative Disclosures About Market Risk\t30\nItem 4.\tControls and Procedures\t30\nPart II - Other Information\t\t\t31\nItem 1.\tLegal Proceedings\t31\nItem 1A.\tRisk Factors\t31\nItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t31\nItem 3.\tDefaults Upon Senior Securities\t31\nItem 4.\tMine Safety Disclosures\t31\nItem 5.\tOther Information\t31\nItem 6.\tExhibits\t32\n\tSignatures\t33\n", "q10k_tbl_2": "\tFor the Three Months Ended\t\t\tFor the Nine Months Ended\n\tSeptember 30 2019\tSeptember 30 2018\tSeptember 30 2019\tSeptember 30 2018\n\t(in thousands except share data and per share amounts)\t\t\t\t\t\t\t\t\t\nNet sales\t127439\t131234\t373677\t387304\nCost of goods sold\t99532\t94306\t286288\t279185\nGross profit\t27907\t36928\t87389\t108119\nSelling and administrative expense\t9626\t9957\t28397\t29826\nLoss on intangible asset impairment\t0\t0\t2911\t0\nGain from insurance recoveries net\t0\t0\t1513\t0\nGain from business interruption insurance\t1623\t0\t4861\t0\nOperating income\t19904\t26971\t62455\t78293\nOther expense net\t(66)\t(29)\t(168)\t(256)\nInterest expense net\t(2220)\t(2549)\t(7107)\t(7963)\nIncome before losses from equity method investment and provision for income taxes\t17618\t24393\t55180\t70074\nLosses from equity method investment\t(191)\t(393)\t(603)\t(1148)\nIncome before provision for income taxes\t17427\t24000\t54577\t68926\nProvision for income taxes\t(3979)\t(5436)\t(12355)\t(14821)\nNet income\t13448\t18564\t42222\t54105\nNet income per share:\t\t\t\t\nBasic\t0.39\t0.51\t1.21\t1.46\nDiluted\t0.39\t0.50\t1.21\t1.46\nWeighted average shares outstanding:\t\t\t\t\nBasic\t34688206\t36732746\t34911640\t37012536\nDiluted\t34775451\t36918904\t34996694\t37181387\n", "q10k_tbl_3": "\tFor the Three Months Ended\t\t\tFor the Nine Months Ended\n\tSeptember 30 2019\tSeptember 30 2018\tSeptember 30 2019\tSeptember 30 2018\n\t(in thousands)\t\t\t\t\t\t\t\t\t\nNet income\t13448\t18564\t42222\t54105\nForeign currency translation adjustment\t(179)\t298\t450\t(496)\nDerivative instrument adjustments net of taxes\t(7)\t(8)\t(2047)\t1489\nOther comprehensive (loss)/income\t(186)\t290\t(1597)\t993\nComprehensive income\t13262\t18854\t40625\t55098\n", "q10k_tbl_4": "\tSeptember 30 2019\tDecember 31 2018\n\t(unaudited)\t\n\t(in thousands)\t\t\t\t\t\t\t\nAssets:\t\t\nCash and cash equivalents\t126433\t102633\nTrade receivables net\t43098\t38454\nInventories net\t35486\t32225\nPrepaid and other current assets\t7275\t19805\nTotal current assets\t212292\t193117\nProperty plant and equipment net\t281802\t288368\nCustomer relationships and other intangibles net\t54450\t62680\nGoodwill\t119945\t119945\nEquity method investment\t7216\t7975\nOperating lease - right of use assets\t760\t0\nDebt issuance costs\t160\t296\nTotal Assets\t676625\t672381\nLiabilities and Shareholders' Equity:\t\t\nLiabilities:\t\t\nAccounts payable\t31037\t48060\nAccrued and other liabilities\t13165\t12815\nDebt current portion\t1695\t1669\nOperating lease liabilities current portion\t633\t0\nTotal current liabilities\t46530\t62544\nDeferred taxes and other long-term liabilities\t19173\t20204\nDebt non-current portion\t260617\t261886\nOperating lease liabilities non-current portion\t690\t0\nTotal Liabilities\t327010\t344634\nShareholders' Equity:\t\t\nUndesignated preferred stock par value $0.001 per share; 10000000 shares authorized no shares issued and outstanding\t0\t0\nCommon stock $0.001 par value per share; 190000000 shares authorized; 44539759 and 44472214 shares issued and 34688206 and 35401868 shares outstanding as of September 30 2019 and December 31 2018 respectively\t44\t44\nAdditional paid-in capital\t328781\t327515\nLess: Treasury stock\t(229073)\t(209050)\nAccumulated other comprehensive loss\t(4988)\t(3391)\nAccumulated earnings\t254851\t212629\nTotal Shareholders' Equity\t349615\t327747\nTotal Liabilities and Shareholders' Equity\t676625\t672381\n", "q10k_tbl_5": "\tFor the Nine Months Ended\t\n\tSeptember 30 2019\tSeptember 30 2018\n\t(in thousands)\t\nCash flows from operating activities:\t\t\nNet income\t42222\t54105\nAdjustments to reconcile net income to net cash provided by operating activities:\t\t\nDepreciation and amortization\t32234\t32966\nAmortization of debt issuance costs and debt discount\t930\t931\nGain from insurance recoveries net\t(1513)\t0\nLoss on intangible asset impairment\t2911\t0\nLosses from equity method investment\t603\t1148\nAmortization of deferred gain on terminated swaps\t(873)\t(632)\nShare-based compensation\t1706\t2459\nDeferred taxes\t0\t(457)\nChange in assets and liabilities:\t\t\nTrade receivables\t(4678)\t(914)\nInventories\t(3190)\t(7627)\nPrepaid expenses and other current assets\t12453\t1264\nAccounts payable\t(16451)\t(52)\nAccrued and other current liabilities\t(433)\t1089\nOther long-term liabilities\t(176)\t(226)\nNet cash provided by operating activities\t65745\t84054\nCash flows from investing activities:\t\t\nPayments for property plant and equipment\t(19287)\t(19761)\nPayments for intangible assets\t(1551)\t(1359)\nProceeds from insurance recoveries\t1589\t125\nCapital contributions to equity method investment\t(407)\t(548)\nDistributions from equity method investment\t564\t468\nNet cash used in investing activities\t(19092)\t(21075)\nCash flows from financing activities:\t\t\nProceeds from exercise of stock options\t118\t145\nTax withholdings on share-based compensation\t(1165)\t(547)\nPrincipal payments for debt\t(2037)\t(2037)\nPayments to repurchase common stock\t(20023)\t(27425)\nNet cash used in financing activities\t(23107)\t(29864)\nEffect of foreign exchange rates on cash and cash equivalents\t254\t(184)\nNet change in cash and cash equivalents\t23800\t32931\nCash beginning of period\t102633\t72521\nCash end of period\t126433\t105452\n", "q10k_tbl_6": "\t\t\t\t\tAccumulated Other Comprehensive Loss\t\t\n\tCommon Stock\t\t\tAdditional Paid-In Capital\tTreasury Stock\t\tAccumulated Earnings\t\t\t\tTotal Equity\t\t\n\tShares\tAmount\t\t\t\t\t\n\t(in thousands except share data)\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nBalance as of December 31 2017\t37532959\t44\t325391\t(143357)\t(2649)\t138597\t318026\nNet income\t0\t0\t0\t0\t0\t13646\t13646\nOther comprehensive income net of tax\t0\t0\t0\t0\t564\t0\t564\nPurchase of treasury shares\t(530600)\t0\t0\t(14550)\t0\t0\t(14550)\nStock option exercise\t781\t0\t11\t0\t0\t0\t11\nStock-based compensation\t85838\t0\t213\t0\t0\t0\t213\nBalance as of March 31 2018\t37088978\t44\t325615\t(157907)\t(2085)\t152243\t317910\nNet income\t0\t0\t0\t0\t0\t21895\t21895\nOther comprehensive income net of tax\t0\t0\t0\t0\t139\t0\t139\nPurchase of treasury shares\t(344908)\t0\t0\t(10012)\t0\t0\t(10012)\nStock option exercise\t2706\t0\t0\t0\t0\t0\t0\nStock-based compensation\t2103\t0\t979\t0\t0\t0\t979\nBalance as of June 30 2018\t36748879\t44\t326594\t(167919)\t(1946)\t174138\t330911\nNet income\t0\t0\t0\t0\t0\t18564\t18564\nOther comprehensive income net of tax\t0\t0\t0\t0\t290\t0\t290\nPurchase of treasury shares\t(76600)\t0\t0\t(2863)\t0\t0\t(2863)\nStock option exercise\t9600\t0\t199\t0\t0\t0\t199\nStock-based compensation\t0\t0\t850\t0\t0\t0\t850\nBalance as of September 30 2018\t36681879\t44\t327643\t(170782)\t(1656)\t192702\t347951\n", "q10k_tbl_7": "\t\t\t\t\tAccumulated Other Comprehensive Loss\t\t\n\tCommon Stock\t\t\tAdditional Paid-In Capital\tTreasury Stock\t\tAccumulated Earnings\t\t\t\tTotal Equity\t\t\n\tShares\tAmount\t\t\t\t\t\n\t(in thousands except share data)\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nBalance as of December 31 2018\t35401868\t44\t327515\t(209050)\t(3391)\t212629\t327747\nNet income\t0\t0\t0\t0\t0\t15926\t15926\nOther comprehensive loss net of tax\t0\t0\t0\t0\t(54)\t0\t(54)\nPurchase of treasury shares\t(191907)\t0\t0\t(5005)\t0\t0\t(5005)\nStock option exercise\t6500\t0\t118\t0\t0\t0\t118\nStock-based compensation\t58571\t0\t35\t0\t0\t0\t35\nBalance as of March 31 2019\t35275032\t44\t327668\t(214055)\t(3445)\t228555\t338767\nNet income\t0\t0\t0\t0\t0\t12848\t12848\nOther comprehensive loss net of tax\t0\t0\t0\t0\t(1357)\t0\t(1357)\nPurchase of treasury shares\t(589300)\t0\t0\t(15018)\t0\t0\t(15018)\nStock-based compensation\t2474\t0\t548\t0\t0\t0\t548\nBalance as of June 30 2019\t34688206\t44\t328216\t(229073)\t(4802)\t241403\t335788\nNet income\t0\t0\t0\t0\t0\t13448\t13448\nOther comprehensive loss net of tax\t0\t0\t0\t0\t(186)\t0\t(186)\nStock-based compensation\t0\t0\t565\t0\t0\t0\t565\nBalance as of September 30 2019\t34688206\t44\t328781\t(229073)\t(4988)\t254851\t349615\n", "q10k_tbl_8": "Table 2.1: Certain Cash Transactions and Other Activity\t\t\n\tFor the Nine Months Ended\t\n\tSeptember 30 2019\tSeptember 30 2018\n\t(in thousands)\t\nCash paid for amounts included in the measurement of lease liabilities:\t\t\nOperating lease cash outflows\t464\t451\nOther activity:\t\t\nAcquisition of property plant and equipment included in liabilities\t2486\t3432\n", "q10k_tbl_9": "Table 3: Details of Trade Receivables Net\t\t\n\tSeptember 30 2019\tDecember 31 2018\n\t(in thousands)\t\nTrade receivables gross\t44042\t39426\nAllowance for cash discounts and doubtful accounts\t(944)\t(972)\nTrade receivables net\t43098\t38454\n", "q10k_tbl_10": "Table 4: Details of Inventories Net\t\t\n\tSeptember 30 2019\tDecember 31 2018\n\t(in thousands)\t\nFinished products\t6385\t6700\nRaw materials\t21474\t18388\nSupplies and other\t7627\t7137\nInventories net\t35486\t32225\n", "q10k_tbl_11": "Table 5: Details of Property Plant and Equipment Net\t\t\n\tSeptember 30 2019\tDecember 31 2018\n\t(in thousands)\t\nLand\t13186\t13185\nBuildings\t120837\t118076\nPlant machinery\t311257\t292219\nMobile equipment\t16538\t15163\nConstruction in progress\t16070\t23566\nProperty plant and equipment at cost\t477888\t462209\nAccumulated depreciation\t(196086)\t(173841)\nProperty plant and equipment net\t281802\t288368\n", "q10k_tbl_12": "Table 6.1: Details of Customer Relationships and Other Intangibles Net\t\t\t\t\t\t\n\tSeptember 30 2019\t\t\t\t\tDecember 31 2018\n\tGross\tAccumulated Amortization\tNet\tGross\tAccumulated Amortization\tNet\n\t(in thousands)\t\t\t\t\t\nCustomer relationships\t116363\t(71453)\t44910\t116180\t(65738)\t50442\nPurchased software\t9561\t(5984)\t3577\t8225\t(5507)\t2718\nTrademarks\t10032\t(4069)\t5963\t14772\t(5252)\t9520\nTotal\t135956\t(81506)\t54450\t139177\t(76497)\t62680\n", "q10k_tbl_13": "Table 6.2: Details of Future Amortization Expense of Customer Relationships and Other Intangibles\t\n\tAs of September 30 2019\n\t(in thousands)\nOctober 1 2019 through December 31 2019\t2395\n2020\t8432\n2021\t7677\n2022\t7107\n2023\t5789\nThereafter\t23050\nTotal\t54450\n", "q10k_tbl_14": "Table 8: Details of Accrued and Other Liabilities\t\t\n\tSeptember 30 2019\tDecember 31 2018\n\t(in thousands)\t\nEmployee-related costs\t6656\t10768\nProperty taxes\t1731\t82\nIncome tax\t2011\t0\nOther taxes\t461\t351\nOther\t2306\t1614\nAccrued and other liabilities\t13165\t12815\n", "q10k_tbl_15": "Table 9.1: Details of Debt\t\t\n\tSeptember 30 2019\tDecember 31 2018\n\t(in thousands)\t\nAmended and Restated Credit Agreement (1)\t250620\t252658\nIndustrial revenue bonds (2)\t16200\t16200\nLess: Original issue discount (net of amortization)\t(1092)\t(1285)\nLess: Debt issuance costs\t(3416)\t(4018)\nTotal debt\t262312\t263555\nLess: Current portion of long-term debt\t(1695)\t(1669)\nLong-term debt\t260617\t261886\n", "q10k_tbl_16": "Table 9.2: Details of Future Minimum Principal Payments Due\t\n\tAmount Due\n\t(in thousands)\nOctober 1 2019 through December 31 2019\t678\n2020\t5326\n2021\t6196\n2022\t6196\n2023\t245074\nThereafter\t3350\nTotal Payments\t266820\n", "q10k_tbl_17": "Table 10.1: Details of Derivatives Fair Value\t\t\n\tSeptember 30 2019\tDecember 31 2018\n\t(in thousands)\t\nAssets\t\t\nInterest rate swap\t0\t86\nCommodity hedges\t1\t61\nTotal assets\t1\t147\nLiabilities\t\t\nInterest rate swap\t777\t0\nCommodity hedges\t934\t105\nTotal liabilities\t1711\t105\n", "q10k_tbl_18": "Table 10.2: Gains/(losses) on Derivatives\t\t\t\t\t\t\t\t\t\n\tFor the Three Months Ended September 30\t\t\t\t\t\t\tFor the Nine Months Ended September 30\t\n\t2019\t2018\t2019\t2018\t2019\t2018\t2019\t2018\n\tGain/(loss) recognized in AOCI on derivatives (effective portion) net of tax\t\t\tGain/(loss) reclassified from AOCI into income (effective portion) net of tax\t\t\tGain/(loss) recognized in AOCI on derivatives (effective portion) net of tax\t\tGain/(loss) reclassified from AOCI into income (effective portion) net of tax\n\t(in thousands)\t\t\t\t\t\t\t\t\nInterest rate swap\t(32)\t145\t190\t169\t(693)\t1413\t657\t379\nCommodity hedges\t(212)\t7\t(427)\t(9)\t(1190)\t251\t(493)\t(204)\nTotal\t(244)\t152\t(237)\t160\t(1883)\t1664\t164\t175\n", "q10k_tbl_19": "Table 11.1: Components of lease expense\t\t\t\t\n\tFor the Three Months Ended\t\t\tFor the Nine Months Ended\n\tSeptember 30 2019\tSeptember 30 2018\tSeptember 30 2019\tSeptember 30 2018\n\t(in thousands)\t\t\t\nOperating lease cost\t118\t98\t319\t296\nShort term lease cost\t519\t468\t1594\t1914\nTotal lease cost\t637\t566\t1913\t2210\n", "q10k_tbl_20": "Table 11.2: Maturities of lease liabilities\t\n\tOperating leases\n\t(in thousands)\nOctober 1 2019 through December 31 2019\t156\n2020\t637\n2021\t600\n2022\t0\n2023\t0\nTotal lease payments\t1393\nLess imputed interest\t(70)\nPresent value of lease liabilities\t1323\n", "q10k_tbl_21": "Table 12: Details of Treasury Stock Activity\t\t\t\t\t\t\n\tSeptember 30 2019\t\t\t\t\tSeptember 30 2018\n\tShares\tAmount (1)\tAverage Share Price (1)\tShares\tAmount (1)\tAverage Share Price (1)\n\t(in thousands except share and share price data)\t\t\t\t\t\nFor the Three Months Ended:\t\t\t\t\t\t\nBeginning Balance\t9851553\t229073\t23.25\t7664325\t167919\t21.91\nRepurchases on open market\t0\t0\t0\t76600\t2863\t37.38\nEnding Balance\t9851553\t229073\t23.25\t7740925\t170782\t22.06\nFor the Nine Months Ended:\t\t\t\t\t\t\nBeginning Balance\t9070346\t209050\t23.05\t6788817\t143357\t21.12\nRepurchases on open market\t781207\t20023\t25.63\t952108\t27425\t28.80\nEnding Balance\t9851553\t229073\t23.25\t7740925\t170782\t22.06\n(1) Includes commissions paid for repurchases on open market.\t\t\t\t\t\t\n", "q10k_tbl_22": "Table 14: Details of Changes in Accumulated Other Comprehensive Loss by Category\t\t\t\n\tForeign currency translation adjustment\tNet unrealized gain on derivatives net of tax\tTotal\n\t(in thousands)\t\t\nBalance as of December 31 2018\t(5027)\t1636\t(3391)\nOther comprehensive income/(loss) before reclassifications\t450\t(1883)\t(1433)\nAmounts reclassified from accumulated other comprehensive loss\t0\t(164)\t(164)\nNet current period other comprehensive income/(loss)\t450\t(2047)\t(1597)\nBalance as of September 30 2019\t(4577)\t(411)\t(4988)\n", "q10k_tbl_23": "Table 16: Details of Basic and Dilutive Earnings Per Share\t\t\t\t\n\tFor the Three Months Ended\t\t\tFor the Nine Months Ended\n\tSeptember 30 2019\tSeptember 30 2018\tSeptember 30 2019\tSeptember 30 2018\n\t(dollars in thousands except for share and per share amounts)\t\t\t\nNet income\t13448\t18564\t42222\t54105\nWeighted average number of shares outstanding - basic\t34688206\t36732746\t34911640\t37012536\nEffect of dilutive securities:\t\t\t\t\nRestricted stock awards\t0\t0\t0\t1170\nRestricted stock units\t37656\t89750\t37308\t72650\nPerformance-based restricted stock units\t33809\t68384\t31679\t67231\nStock options\t15780\t28024\t16067\t27800\nTotal effect of dilutive securities\t87245\t186158\t85054\t168851\nWeighted average number of shares outstanding - diluted\t34775451\t36918904\t34996694\t37181387\nBasic earnings per share\t0.39\t0.51\t1.21\t1.46\nDiluted earnings per share\t0.39\t0.50\t1.21\t1.46\n", "q10k_tbl_24": "Table 17: Details of Purchase Commitments\t\n\tAs of September 30 2019\n\t(in thousands)\nOctober 1 2019 through December 31 2019\t11460\n2020\t44533\n2021\t42358\n2022\t28033\n2023\t12254\nThereafter\t48144\nTotal\t186782\n", "q10k_tbl_25": "Table 18.1: Segment Reporting\t\t\t\t\n\tFor the Three Months Ended\t\t\tFor the Nine Months Ended\n\tSeptember 30 2019\tSeptember 30 2018\tSeptember 30 2019\tSeptember 30 2018\n\t(in thousands)\t\t\t\nNet Sales:\t\t\t\t\nWallboard\t124145\t128101\t363837\t376739\nOther\t3294\t3133\t9840\t10565\nTotal net sales\t127439\t131234\t373677\t387304\nOperating Income:\t\t\t\t\nWallboard\t20635\t27551\t64116\t79702\nOther\t(731)\t(580)\t(1661)\t(1409)\nTotal operating income\t19904\t26971\t62455\t78293\nAdjustments:\t\t\t\t\nInterest expense\t(2220)\t(2549)\t(7107)\t(7963)\nLosses from equity investment\t(191)\t(393)\t(603)\t(1148)\nOther expense net\t(66)\t(29)\t(168)\t(256)\nIncome before provision for income taxes\t17427\t24000\t54577\t68926\nDepreciation and Amortization:\t\t\t\t\nWallboard\t10837\t11299\t31440\t32016\nOther\t306\t281\t794\t950\nTotal depreciation and amortization\t11143\t11580\t32234\t32966\n", "q10k_tbl_26": "Table 18.2: Details of Net Sales By Geographic Region\t\t\t\t\n\tFor the Three Months Ended\t\t\tFor the Nine Months Ended\n\tSeptember 30 2019\tSeptember 30 2018\tSeptember 30 2019\tSeptember 30 2018\n\t(in thousands)\t\t\t\nUnited States\t120900\t125430\t355807\t367917\nCanada\t6539\t5804\t17870\t19387\nNet sales\t127439\t131234\t373677\t387304\n", "q10k_tbl_27": "Table 18.3: Details of Assets By Geographic Region\t\t\t\t\n\tFixed Assets\t\t\tTotal Assets\n\tSeptember 30 2019\tDecember 31 2018\tSeptember 30 2019\tDecember 31 2018\n\t(in thousands)\t\t\t\nUnited States\t278792\t285202\t659829\t655849\nCanada\t3010\t3166\t16796\t16532\nTotal\t281802\t288368\t676625\t672381\n", "q10k_tbl_28": "Table 19.1: Fair Value Hierarchy - 2019\t\t\t\t\n\tAs of September 30 2019\t\t\t\n\tLevel 1\tLevel 2\tLevel 3\tBalance\n\t(in thousands)\t\t\t\nAsset\t\t\t\t\nInterest rate swap\t0\t0\t0\t0\nCommodity derivatives\t0\t1\t0\t1\nTotal assets\t0\t1\t0\t1\nLiabilities\t\t\t\t\nInterest rate swap\t0\t777\t0\t777\nCommodity derivatives\t0\t934\t0\t934\nTotal liabilities\t0\t1711\t0\t1711\n", "q10k_tbl_29": "Table 19.2: Fair Value Hierarchy - 2018\t\t\t\t\n\tDecember 31 2018\t\t\t\n\tLevel 1\tLevel 2\tLevel 3\tBalance\n\t(in thousands)\t\t\t\nAsset\t\t\t\t\nInterest rate swap\t0\t86\t0\t86\nCommodity derivatives\t0\t61\t0\t61\nTotal assets\t0\t147\t0\t147\nLiabilities\t\t\t\t\nInterest rate swap\t0\t0\t0\t0\nCommodity derivatives\t0\t105\t0\t105\nTotal liabilities\t0\t105\t0\t105\n", "q10k_tbl_30": "Table 20.1: Details of Insurance Claims and Cash Payments Related to Buchanan Outage\t\t\t\t\t\t\n\tClaim Details\t\t\t\t\tCash Details\n\tClaim Amount\tInsurance Deductible\tNet recovery recorded in nine months ended September 30 2019\tCash received in the nine months ended September 30 2019\tReceivable Recorded as of September 30 2019\n\t(in thousands)\t\t\t\t\t\nRebuild property plant and equipment damaged (a)\t1839\t250\t1589\t1589\t0\nDirects costs associated with business interruption (b)\t3015\t0\t3015\t3015\t0\nLost operating income associated with lost sales from business interruption (c)\t4861\t0\t4861\t4861\t0\n\t9715\t250\t9465\t9465\t0\n", "q10k_tbl_31": "Table 20.2: Details of Gain from Insurance Recoveries Net\t\n\tFor the Nine Months Ended\n\tSeptember 30 2019\n\t(in thousands)\nCost to rebuild property plant and equipment (capitalized)\t1839\nInsurance deductible\t250\nNet recoveries from insurance policy\t1589\nWrite-off of property plant and equipment\t76\nGain from insurance recoveries net\t1513\n", "q10k_tbl_32": "Table M1: Results of Operations\t\t\t\t\n\tFor the Three Months Ended\t\t\tFor the Nine Months Ended\n\tSeptember 30 2019\tSeptember 30 2018\tSeptember 30 2019\tSeptember 30 2018\n\t(dollars in thousands except mill net)\t\t\t\nNet sales\t127439\t131234\t373677\t387304\nCost of goods sold\t99532\t94306\t286288\t279185\nGross profit\t27907\t36928\t87389\t108119\nSelling and administrative expense\t9626\t9957\t28397\t29826\nLoss on intangible asset impairment\t0\t0\t2911\t0\nGain from insurance recoveries net\t0\t0\t1513\t0\nGain from business interruption insurance\t1623\t0\t4861\t0\nOperating income\t19904\t26971\t62455\t78293\nOther expense net\t(66)\t(29)\t(168)\t(256)\nInterest expense net\t(2220)\t(2549)\t(7107)\t(7963)\nIncome before losses from equity method investment and provision for income taxes\t17618\t24393\t55180\t70074\nLosses from equity method investment\t(191)\t(393)\t(603)\t(1148)\nIncome before provision for income taxes\t17427\t24000\t54577\t68926\nProvision for income taxes\t(3979)\t(5436)\t(12355)\t(14821)\nNet income\t13448\t18564\t42222\t54105\nOther operating data:\t\t\t\t\nCapital expenditures and software purchased or developed\t7473\t7324\t20838\t21120\nWallboard sales volume (million square feet)\t705\t674\t2032\t2011\nMill net sales price (a)\t142.41\t155.43\t145.13\t153.70\n", "q10k_tbl_33": "Table M2: Net Change in Cash and Cash Equivalents\t\t\n\tFor the Nine Months Ended\t\n\tSeptember 30 2019\tSeptember 30 2018\n\t(in thousands)\t\nNet cash provided by operating activities\t65745\t84054\nNet cash used in investing activities\t(19092)\t(21075)\nNet cash used in financing activities\t(23107)\t(29864)\nEffect of foreign exchange rates on cash and cash equivalents\t254\t(184)\nNet change in cash and cash equivalents\t23800\t32931\n", "q10k_tbl_34": "Exhibit No.\tDescription of Exhibit\t\n31.1\tCertification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\t*\n31.2\tCertification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\t*\n32.1\tCertification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\t*\n101.INS\tInline 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.\t*\n101.SCH\tInline XBRL Taxonomy Extension Schema Document.\t*\n101.CAL\tInline XBRL Taxonomy Calculation Linkbase Document.\t*\n101.DEF\tInline XBRL Taxonomy Definition Linkbase Document.\t*\n101.LAB\tInline XBRL Taxonomy Label Linkbase Document.\t*\n101.PRE\tInline XBRL Taxonomy Presentation Linkbase Document.\t*\n104\tCover Page Interactive Data File - The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30 2019 is formatted in Inline XBRL (included as Exhibit 101).\t*\n"}{"bs": "q10k_tbl_4", "is": "q10k_tbl_2", "cf": "q10k_tbl_5"}None
As filed with the Securities and Exchange Commission on November 12, 2019
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019
or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________.
Commission File Number: 001-36293
CONTINENTAL BUILDING PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
Delaware
61-1718923
(State or other jurisdiction of incorporation)
(I.R.S Employer Identification No.)
12950 Worldgate Drive
,
Suite 700
,
Herndon
,
VA
20170
(Address of principal executive offices)
(Zip Code)
(703)
480-3800
(Registrant's telephone number, including the area code)
Securities Registered Pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol (s)
Name of Exchange on Which Registered
Common Stock, $0.001 par value per share
CBPX
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒ Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
As of November 10, 2019, the registrant had outstanding 34,688,206 shares of the registrant’s common stock, which amount excludes 9,851,553 shares of common stock held by the registrant as treasury shares.
Undesignated preferred stock, par value $0.001 per share; 10,000,000 shares authorized, no shares issued and outstanding
—
—
Common stock, $0.001 par value per share; 190,000,000 shares authorized; 44,539,759 and 44,472,214 shares issued and 34,688,206 and 35,401,868 shares outstanding as of September 30, 2019 and December 31, 2018, respectively
44
44
Additional paid-in capital
328,781
327,515
Less: Treasury stock
(229,073)
(209,050)
Accumulated other comprehensive loss
(4,988)
(3,391)
Accumulated earnings
254,851
212,629
Total Shareholders' Equity
349,615
327,747
Total Liabilities and Shareholders' Equity
$
676,625
$
672,381
See accompanying notes to unaudited consolidated financial statements.
Notes to the Unaudited Consolidated Financial Statements
1. BACKGROUND AND NATURE OF OPERATIONS
Description of Business
Continental Building Products, Inc. (the "Company") is a Delaware corporation. The Company manufactures gypsum wallboard related products for commercial and residential buildings and houses. The Company operates a network of three highly efficient wallboard facilities, all located in the eastern United States, and produces joint compound at one plant in the United States and at another plant in Canada.
2. SIGNIFICANT ACCOUNTING POLICIES
(a)Basis of Presentation
The accompanying consolidated financial statements for the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions have been eliminated.
(b)Basis of Presentation for Interim Periods
Certain information and footnote disclosures normally included for the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted for the interim periods presented. Management believes that the unaudited interim financial statements include all adjustments (which are normal and recurring in nature) necessary to present fairly the financial position of the Company and the results of operations and cash flows for the periods presented.
The results of operations for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. Seasonal changes and other conditions can affect the sales volumes of the Company's products. Therefore, the financial results for any interim period do not necessarily indicate the expected results for the year.
The financial statements should be read in conjunction with Company's audited consolidated financial statements and the notes thereto for the year ended December 31, 2018 included in the Company's Annual Report on Form 10-K for the fiscal year then ended (the "2018 10-K"). The Company has continued to follow the accounting policies set forth in those financial statements.
(c)Supplemental Cash Flow Disclosure
Table 2.1: Certain Cash Transactions and Other Activity
For the Nine Months Ended
September 30, 2019
September 30, 2018
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash outflows
$
464
$
451
Other activity:
Acquisition of property, plant and equipment included in liabilities
$
2,486
$
3,432
(d) Recent Accounting Pronouncements
Accounting Standards Recently Adopted
The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-02, "Leases," as of January 1, 2019. The Company elected the transition package of practical expedients permitted within ASU 2016-02, which among other things, allowed the Company to carryforward the historical lease classification. In addition, the Company elected the comparative period practical expedient, which allowed the Company to implement the guidance as of the effective date without having to adjust the comparative financial statements. Instead, under this expedient, companies recognize the cumulative effect adjustment in equity. The Company also made an accounting policy election that leases with an initial term of 12 months or less will not be recorded on the balance sheet and will result in the recognition of those lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The adoption of the standard resulted in recognition of approximately $1.0 million in right of use assets and $1.7 million in lease liabilities for
operating leases on the Company's Consolidated Balance Sheet, with no impact to its retained earnings, Consolidated Statement of Operations and Consolidated Statement of Cash Flows.
The Company adopted ASU 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities," as of January 1, 2019. This ASU expands an entity's ability to hedge non-financial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The adoption of the standard did not have a material impact on the Company's Consolidated Financial Statements.
In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." This ASU requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company early adopted this ASU. The adoption of the standard did not have a material impact on the Company's Consolidated Financial Statements.
Accounting Standards Not Yet Adopted
In June 2016, the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments." This ASU is intended to introduce a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is in the process of evaluating the impact of adoption, which is not expected to have a material impact on the Company's Consolidated Financial Statements.
In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurements (Topic 820), Changes to the Disclosure Requirements for Fair Value Measurement." This ASU eliminates certain disclosure requirements for fair value measurements for all entities, requires public entities to disclose certain new information and modifies some disclosure requirements. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is in the process of evaluating the impact of adoption, which is not expected to have a material impact on the Company's Consolidated Financial Statements.
(e) Reclassifications
Certain reclassifications of prior year information were made to conform to the 2019 presentation. These reclassifications had no material impact on the Company's Consolidated Financial Statements.
3. TRADE RECEIVABLES, NET
Table 3: Details of Trade Receivables, Net
September 30, 2019
December 31, 2018
(in thousands)
Trade receivables, gross
$
44,042
$
39,426
Allowance for cash discounts and doubtful accounts
(944)
(972)
Trade receivables, net
$
43,098
$
38,454
Trade receivables are recorded net of credit memos issued during the normal course of business.