Company Quick10K Filing
Select Interior Concepts
Price13.36 EPS0
Shares25 P/E178
MCap340 P/FCF17
Net Debt147 EBIT21
TEV487 TEV/EBIT23
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-05
10-Q 2020-06-30 Filed 2020-08-06
10-Q 2020-03-31 Filed 2020-05-21
10-K 2019-12-31 Filed 2020-03-12
10-Q 2019-09-30 Filed 2019-11-05
10-Q 2019-06-30 Filed 2019-08-08
10-Q 2019-03-31 Filed 2019-05-10
10-K 2018-12-31 Filed 2019-03-15
10-Q 2018-09-30 Filed 2018-11-13
S-1 2018-07-09 Public Filing
10-Q 2018-06-30 Filed 2018-09-06
8-K 2020-11-05
8-K 2020-11-05 Earnings, Exhibits
8-K 2020-08-06 Earnings, Exhibits
8-K 2020-07-27 Officers, Exhibits
8-K 2020-06-30 Officers
8-K 2020-06-16
8-K 2020-06-09
8-K 2020-05-21
8-K 2020-05-05
8-K 2020-04-08
8-K 2020-03-16
8-K 2020-03-13
8-K 2020-03-12
8-K 2019-12-12
8-K 2019-11-21
8-K 2019-11-05
8-K 2019-08-19
8-K 2019-08-08
8-K 2019-07-12
8-K 2019-05-15
8-K 2019-05-13
8-K 2019-05-10
8-K 2019-03-20
8-K 2019-03-15
8-K 2019-03-01
8-K 2019-02-06
8-K 2018-12-31
8-K 2018-11-13
8-K 2018-11-13
8-K 2018-09-06
8-K 2018-08-31
8-K 2018-08-13

SIC 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements.
Note 1. Organization and Business Description
Note 2. Summary of Significant Accounting Policies
Note 3. Revenue
Note 4. Concentrations, Risks and Uncertainties
Note 5. Acquisitions
Note 6. Inventories
Note 7. Property and Equipment
Note 8. Goodwill and Intangible Assets
Note 9. Lines of Credit
Note 10. Long - Term Debt
Note 11. Commitments and Contingencies
Note 12. Stock Compensation
Note 13. Provision for Income Taxes
Note 14. Related Party Transactions
Note 15. Segment Information
Note 16. Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-10.1 ck1723866-ex101_13.htm
EX-10.2 ck1723866-ex102_14.htm
EX-10.3 ck1723866-ex103_15.htm
EX-31.1 ck1723866-ex311_9.htm
EX-31.2 ck1723866-ex312_8.htm
EX-32.1 ck1723866-ex321_10.htm
EX-32.2 ck1723866-ex322_7.htm

Select Interior Concepts Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
4353482611748702016201720182020
Assets, Equity
160127956230-12016201720182020
Rev, G Profit, Net Income
20112-7-16-252016201720182020
Ops, Inv, Fin

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2020

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: 001-38632

 

SELECT INTERIOR CONCEPTS, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

47-4640296

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

 

400 Galleria Parkway, Suite 1760

Atlanta, Georgia

30339

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (888) 701-4737

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A Common Stock, par value $0.01 per share

 

SIC

 

The Nasdaq Stock Market LLC

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, 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 October 30, 2020, the registrant had 25,453,995 shares of Class A common stock, par value $0.01 per share, outstanding.

 


SELECT INTERIOR CONCEPTS, INC.

FORM 10-Q

For the Quarterly Period Ended September 30, 2020

 

 

Table of Contents

 

 

 

Page No.

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets (Unaudited)

1

 

Condensed Consolidated Statements of Operations (Unaudited)

2

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

3

 

Consolidated Statements of Changes in Equity (Unaudited)

4

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

25

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

35

Item 4.

Controls and Procedures

36

 

 

 

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

37

Item 1A.

Risk Factors

37

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

37

Item 3.

Defaults Upon Senior Securities

37

Item 4.

Mine Safety Disclosures

37

Item 5.

Other Information

37

Item 6.

Exhibits

38

Signatures

39

 

 

 

i


PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Select Interior Concepts, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

 

(in thousands, except share data)

 

September 30, 2020

 

 

December 31, 2019

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash

 

$

4,097

 

 

$

5,002

 

Accounts receivable, net of allowance for doubtful accounts of $701 and $849 at

   September 30, 2020 and December 31, 2019, respectively

 

 

68,144

 

 

 

63,419

 

Inventories

 

 

98,101

 

 

 

104,741

 

Prepaid expenses and other current assets

 

 

17,605

 

 

 

11,083

 

Income taxes receivable

 

 

3,080

 

 

 

2,184

 

Total current assets

 

 

191,027

 

 

 

186,429

 

Property and equipment, net of accumulated depreciation of $28,068 and $21,020 at

   September 30, 2020 and December 31, 2019, respectively

 

 

22,444

 

 

 

26,494

 

Deferred tax assets, net

 

 

10,222

 

 

 

10,550

 

Goodwill

 

 

99,789

 

 

 

99,789

 

Customer relationships, net of accumulated amortization of $55,217 and $48,251 at

   September 30, 2020 and December 31, 2019, respectively

 

 

65,023

 

 

 

71,989

 

Other intangible assets, net of accumulated amortization of $10,055 and $7,471 at

   September 30, 2020 and December 31, 2019, respectively

 

 

16,175

 

 

 

18,759

 

Other assets

 

 

5,384

 

 

 

6,265

 

Total assets

 

$

410,064

 

 

$

420,275

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

49,616

 

 

$

42,734

 

Accrued expenses and other current liabilities

 

 

17,967

 

 

 

16,661

 

Customer deposits

 

 

10,407

 

 

 

8,627

 

Current portion of long-term debt, net of financing fees of $1,050 and $511 at

   September 30, 2020 and December 31, 2019, respectively

 

 

246

 

 

 

11,749

 

Current portion of capital lease obligations

 

 

2,586

 

 

 

2,395

 

Total current liabilities

 

 

80,822

 

 

 

82,166

 

Line of credit

 

 

9,670

 

 

 

21,871

 

Long-term debt, net of current portion and financing fees of $2,035 and $1,107 at

   September 30, 2020 and December 31, 2019, respectively

 

 

149,979

 

 

 

141,299

 

Long-term capital lease obligations

 

 

5,452

 

 

 

6,907

 

Other long-term liabilities

 

 

7,760

 

 

 

6,757

 

Total liabilities

 

$

253,683

 

 

$

259,000

 

Commitments and contingencies (see Note 11)

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Class A common stock, par value $0.01 per share; 100,000,000 shares authorized;

   25,554,388 shares issued and 25,407,362 outstanding at September 30, 2020 and

   25,139,542 shares issued and 25,106,402 outstanding at December 31, 2019

 

 

256

 

 

 

251

 

Treasury stock, 147,026 shares at September 30, 2020 and 33,140 shares at

   December 31, 2019, at cost

 

 

(1,182

)

 

 

(391

)

Additional paid-in capital

 

 

163,938

 

 

 

161,396

 

Retained earnings (accumulated deficit)

 

 

(6,631

)

 

 

19

 

Total stockholders' equity

 

$

156,381

 

 

$

161,275

 

Total liabilities and stockholders' equity

 

$

410,064

 

 

$

420,275

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

1


Select Interior Concepts, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

(in thousands, except share data)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues, net

 

$

150,050

 

 

$

159,395

 

 

$

409,869

 

 

$

454,657

 

Cost of revenues

 

 

111,460

 

 

 

117,057

 

 

 

309,886

 

 

 

329,418

 

Gross profit

 

 

38,590

 

 

 

42,338

 

 

 

99,983

 

 

 

125,239

 

Selling, general and administrative expenses

 

 

33,446

 

 

 

36,129

 

 

 

96,850

 

 

 

109,014

 

Income from operations

 

 

5,144

 

 

 

6,209

 

 

 

3,133

 

 

 

16,225

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

3,546

 

 

 

4,342

 

 

 

11,072

 

 

 

13,151

 

Other expense (income), net

 

 

412

 

 

 

(2,008

)

 

 

1,755

 

 

 

(2,728

)

Total other expense, net

 

 

3,958

 

 

 

2,334

 

 

 

12,827

 

 

 

10,423

 

Income (loss) before provision (benefit) for income taxes

 

 

1,186

 

 

 

3,875

 

 

 

(9,694

)

 

 

5,802

 

Provision (benefit) for income taxes

 

 

655

 

 

 

1,417

 

 

 

(3,045

)

 

 

2,055

 

Net income (loss)

 

$

531

 

 

$

2,458

 

 

$

(6,649

)

 

$

3,747

 

Earnings (loss) per share of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic common stock

 

$

0.02

 

 

$

0.10

 

 

$

(0.26

)

 

$

0.15

 

Diluted common stock

 

$

0.02

 

 

$

0.10

 

 

$

(0.26

)

 

$

0.15

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic common stock

 

 

25,383,379

 

 

 

25,051,068

 

 

 

25,301,709

 

 

 

25,366,170

 

Diluted common stock

 

 

25,762,741

 

 

 

25,189,339

 

 

 

25,301,709

 

 

 

25,463,814

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

2


Select Interior Concepts, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

 

 

Nine Months Ended September 30,

 

(in thousands)

 

2020

 

 

2019

 

Cash flows provided by operating activities

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(6,649

)

 

$

3,747

 

Adjustments to reconcile net income (loss) to net cash provided by operating

activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

17,164

 

 

 

18,729

 

Change in fair value of earn-out liabilities

 

 

 

 

 

(2,549

)

Equity-based compensation

 

 

1,679

 

 

 

4,496

 

Deferred expense from income taxes

 

 

328

 

 

 

 

Amortized interest on deferred debt issuance costs

 

 

838

 

 

 

458

 

Decrease in allowance for doubtful accounts

 

 

(166

)

 

 

(165

)

Gain (loss) on disposal of property and equipment, net

 

 

175

 

 

 

(139

)

Other

 

 

(213

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(4,559

)

 

 

(583

)

Inventories

 

 

6,585

 

 

 

(4,358

)

Prepaid expenses and other current assets

 

 

(7,200

)

 

 

(2,632

)

Other assets

 

 

(327

)

 

 

(109

)

Accounts payable

 

 

7,014

 

 

 

5,337

 

Accrued expenses and other current liabilities

 

 

2,172

 

 

 

(613

)

Income taxes receivable

 

 

(896

)

 

 

(2,634

)

Customer deposit

 

 

1,779

 

 

 

(793

)

Other long-term liabilities

 

 

2,209

 

 

 

2,114

 

Net cash provided by operating activities

 

 

19,933

 

 

 

20,306

 

Cash flows used in investing activities

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(2,757

)

 

 

(7,273

)

Proceeds from disposal of property and equipment

 

 

55

 

 

 

16

 

Acquisition of Intown Design, Inc.

 

 

 

 

 

(11,537

)

Escrow release payment related to acquisition of Greencraft Holdings, LLC

 

 

 

 

 

(3,000

)

Acquisition of Elegant Home Design, LLC (Indemnity payment in 2019)

 

 

 

 

 

(1,000

)

Net cash used in investing activities

 

 

(2,702

)

 

 

(22,794

)

Cash flows provided by (used in) financing activities

 

 

 

 

 

 

 

 

Payment of Greencraft Holdings, LLC earn-out liability

 

 

 

 

 

(5,794

)

Proceeds from ERP financing

 

 

376

 

 

 

2,118

 

Payments on line of credit, net

 

 

(12,275

)

 

 

(2,822

)

Proceeds from term loan

 

 

 

 

 

11,500

 

Term loan deferred issuance costs

 

 

(2,230

)

 

 

 

Purchase of treasury stock

 

 

(791

)

 

 

(235

)

Payments on notes payable and capital leases

 

 

(2,428

)

 

 

(1,407

)

Principal payments on long-term debt

 

 

(788

)

 

 

(1,589

)

Net cash provided by (used in) financing activities

 

 

(18,136

)

 

 

1,771

 

Net decrease in cash

 

$

(905

)

 

$

(717

)

Cash (and restricted cash in 2019), beginning of period

 

 

5,002

 

 

 

9,362

 

Cash, end of period

 

$

4,097

 

 

$

8,645

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

10,165

 

 

$

12,507

 

Cash paid (refunded) for income taxes, net

 

$

(1,272

)

 

$

4,819

 

Supplemental disclosures of non-cash investing activities

 

 

 

 

 

 

 

 

Acquisition of equipment and vehicles with long-term debt and capital leases

 

$

596

 

 

$

6,444

 

Earn-out estimate for Intown Design, Inc.

 

$

 

 

$

2,010

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

3


 

Select Interior Concepts, Inc. and Subsidiaries

Consolidated Statements of Changes in Equity (Unaudited)

 

(in thousands, except share data)

 

Class A

Common

Stock Shares

 

 

Class A

Common

Stock

 

 

Treasury

Stock,

at Cost

 

 

Total

Additional

Paid-in

Capital

 

 

Total

Retained Earnings

(Accumulated Deficit)

 

 

Total

 

Balance as of December 31, 2018

 

 

25,682,669

 

 

 

257

 

 

 

 

 

 

156,601

 

 

 

(8,164

)

 

 

148,694

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

558

 

 

 

 

 

 

558

 

Issuance of Class A common stock due to restricted stock vesting

 

 

138,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

127

 

 

 

127

 

Balance as of March 31, 2019

 

 

25,821,224

 

 

$

257

 

 

$

 

 

$

157,159

 

 

$

(8,037

)

 

$

149,379

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

1,423

 

 

 

 

 

 

1,423

 

Issuance of Class A common stock due to restricted stock vesting

 

 

21,065

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Repurchase of Class A common stock

 

 

 

 

 

 

 

 

(8

)

 

 

 

 

 

 

 

 

(8

)

Retirement of Class A common stock

 

 

(800,000

)

 

 

(8

)

 

 

8

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,162

 

 

 

1,162

 

Balance as of June 30, 2019

 

 

25,042,289

 

 

$

250

 

 

$

 

 

$

158,582

 

 

$

(6,875

)

 

$

151,957

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

1,471

 

 

 

 

 

 

1,471

 

Issuance of Class A common stock due to restricted stock vesting

 

 

45,718