STOCK BUILDING SUPPLY HOLDINGS, INC.

CIK:0001574815|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net sales	$ 1,090,343	$ 964,249	$ 2,991,118	$ 2,736,029
Cost of sales	817,261	709,482	2,228,086	2,019,363
Gross profit	273,082	254,767	763,032	716,666
Selling, general and administrative expenses	195,143	190,579	557,010	546,116
Depreciation expense	11,767	10,501	34,990	30,117
Amortization expense	5,016	4,552	15,045	13,237
Asset Impairment Charges	0	115	2,255	644
Total operating expenses	211,926	205,747	609,300	590,114
Income from operations	61,156	49,020	153,732	126,552
Other income (expense)
Interest expense	(5,744)	(5,773)	(17,880)	(17,385)
Other income, net	3,289	3,540	9,128	10,159
Income before income taxes	58,701	46,787	144,980	119,326
Income tax expense	13,806	13,190	34,434	29,680
Net income	$ 44,895	$ 33,597	$ 110,546	$ 89,646
Weighted average common shares outstanding
Basic (in shares)	67,141	66,685	67,001	66,681
Diluted (in shares)	67,967	67,361	67,725	67,240
Net income per common share
Basic (in dollars per share)	$ 0.67	$ 0.50	$ 1.65	$ 1.34
Diluted (in dollars per share)	$ 0.66	$ 0.50	$ 1.63	$ 1.33

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities
Net income	$ 110,546	$ 89,646
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	45,702	39,722
Amortization of intangible assets	15,045	13,237
Amortization of debt issuance costs	952	1,124
Deferred income taxes	7,418	4,857
Non-cash stock compensation expense	11,110	9,177
Gain on sale of property, equipment and real estate	(518)	(1,839)
Other non-cash adjustments	2,395	2,314
Change in assets and liabilities, net of effects of acquisitions
Accounts receivable, net of allowances	(68,365)	(24,068)
Inventories	(81,004)	(494)
Accounts payable	121,405	68,456
Other assets and liabilities	42,508	(3,715)
Net cash provided by operating activities	207,194	198,417
Cash flows from investing activities
Purchases of businesses, net of cash acquired	0	(85,780)
Purchases of property, equipment and real estate	(71,037)	(67,582)
Proceeds from sale of property, equipment and real estate	1,258	4,444
Insurance proceeds	0	107
Net cash used in investing activities	(69,779)	(148,811)
Cash flows from financing activities
Proceeds from revolving credit facility	144,000	110,987
Repayments of proceeds from revolving credit facility	(144,000)	(110,987)
Repurchases of common stock under share repurchase program	(1,416)	(16,446)
Payments on finance lease obligations	(4,613)	(5,094)
Other financing activities, net	(10,661)	(5,530)
Net cash used in financing activities	(16,690)	(27,070)
Net increase in cash and cash equivalents	120,725	22,536
Cash and cash equivalents
Beginning of period	165,496	150,723
End of period	286,221	173,259
Supplemental disclosure of non-cash transactions
Accrued purchases of property and equipment	4,807	4,484
Acquisition-related holdback payments due at future date	3,462	4,527
Assets acquired under finance lease obligations	0	5,789
Right-of-use assets obtained in exchange for operating lease obligations	$ 13,636	$ 34,836

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 286,221	$ 165,496
Accounts Receivable, after Allowance for Credit Loss, Current	393,735	325,741
Inventories	413,031	331,969
Contract assets	36,422	32,125
Income taxes receivable	0	7,504
Prepaid expenses and other current assets	76,239	66,818
Total current assets	1,205,648	929,653
Property and equipment, net of accumulated depreciation	366,444	345,466
Operating lease right-of-use assets	131,868	139,907
Customer relationship intangible assets, net of accumulated amortization	170,200	185,049
Other intangible assets, net of accumulated amortization	385	580
Goodwill	295,390	297,146
Other long-term assets	7,599	8,300
Total assets	2,177,534	1,906,101
Current liabilities
Accounts payable	300,075	189,644
Accrued expenses and other liabilities	116,285	117,825
Contract liabilities	44,980	31,094
Income taxes payable	10,395	0
Interest payable	9,572	4,759
Current portion: Long-term debt and finance lease obligations	3,210	5,577
Current portion: Operating lease liabilities	27,635	26,147
Current portion: Insurance reserves	16,746	16,328
Total current liabilities	528,898	391,374
Insurance reserves	43,287	43,536
Long-term debt	346,659	346,032
Long-term portion of finance lease obligations	4,689	6,959
Long-term portion of operating lease liabilities	113,572	120,832
Deferred income taxes	22,613	15,195
Other long-term liabilities	15,309	661
Total liabilities	1,075,027	924,589
Commitments and contingencies (Note 9)
Stockholders’ equity
Preferred Stock, Value, Issued	0	0
Common Stock, Value, Issued	690	683
Additional paid-in capital	702,045	687,255
Retained earnings	430,736	320,190
Treasury Stock, Value	(30,964)	(26,616)
Total stockholders’ equity	1,102,507	981,512
Total liabilities and stockholders’ equity	$ 2,177,534	$ 1,906,101