What changed in this filing

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Item 1. Financial Statements

2024-10-30 compared with 2024-07-31 · 80 added, 78 removed, 372 unchanged (30% of the section changed)

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

20 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Net income $ 34,039 $ 39,277 $ 91,183 $ 91,099

Other comprehensive loss:

Other comprehensive income (loss):

Foreign currency translation adjustment 703 ( 1,368 ) ( 679 ) ( 2,051 )

4 unchanged sentences

(in thousands, except per share data)

September 30,

2024 December 31,

1 unchanged sentence

Cash and cash equivalents $ 228,879 $ 99,426

Accounts receivable, net of allowance of $ 5,563 and $ 5,572 , respectively

Trade receivables, net of allowance of $ 5,418 and $ 5,351 , respectively

206,842 172,736

Costs in excess of billings, net 41,603 51,814

Inventories, net 138,171 120,503

34 unchanged sentences

(in thousands)

Six Months Ended

Nine Months Ended

September 30,

Cash Flows from Operating Activities

3 unchanged sentences

Stock compensation expense 8,686 7,257

Exit activity costs (recoveries), non-cash 163 ( 23 )

Provision for deferred income taxes — 179

Exit activity costs, non-cash 163 572

(Benefit of) provision for deferred income taxes ( 615 ) 179

Other, net 4,160 2,945

Changes in operating assets and liabilities net of effects from acquisitions:

Accounts receivable ( 33,828 ) ( 54,979 )

Trade receivables and costs in excess of billings ( 23,995 ) ( 44,331 )

Inventories ( 18,131 ) 30,431

28 unchanged sentences

Shares Amount Shares Amount

Balance at March 31, 2024 34,266 $ 343 $ 335,259 $ 763,457 $ ( 3,078 ) 3,797 $ ( 155,796 ) $ 940,185

Balance at June 30, 2024 34,274 $ 343 $ 338,978 $ 795,655 $ ( 3,496 ) 3,797 $ ( 155,809 ) $ 975,671

Net income — — — 34,039 — — — 34,039

2 unchanged sentences

Net settlement of restricted stock units 24 — — — — 8 ( 506 ) ( 506 )

Awards of common stock 7 — — — — — — —

Excise tax on repurchase of common stock — — — — — — ( 15 ) ( 15 )

Common stock repurchased under stock repurchase program — — — — — 139 ( 8,987 ) ( 8,987 )

Balance at September 30, 2024 34,298 $ 343 $ 341,306 $ 829,694 $ ( 2,793 ) 3,944 $ ( 165,317 ) $ 1,003,233

Balance at June 30, 2023 34,194 $ 342 $ 327,927 $ 679,800 $ ( 4,115 ) 3,770 $ ( 153,644 ) $ 850,310

Balance at March 31, 2023 34,148 $ 341 $ 324,466 $ 649,077 $ ( 3,539 ) 3,389 $ ( 134,958 ) $ 835,387

Net income — — — 39,277 — — — 39,277

2 unchanged sentences

Net settlement of restricted stock units 18 — — — — 6 ( 412 ) ( 412 )

Awards of common stock 8 — — — — — — —

Common stock repurchased under stock repurchase program — — — — — 367 ( 17,812 ) ( 17,812 )

Balance at June 30, 2023 34,194 $ 342 $ 327,927 $ 679,800 $ ( 4,115 ) 3,770 $ ( 153,644 ) $ 850,310

Excise tax on repurchase of common stock — — — — — — ( 159 ) ( 159 )

Balance at September 30, 2023 34,212 $ 342 $ 330,128 $ 719,077 $ ( 5,483 ) 3,776 $ ( 154,215 ) $ 889,849

See accompanying notes to consolidated financial statements.

13 unchanged sentences

Awards of common stock 7 — — — — — — —

Balance at June 30, 2024 34,274 $ 343 $ 338,978 $ 795,655 $ ( 3,496 ) 3,797 $ ( 155,809 ) $ 975,671

Excise tax on repurchase of common stock — — — — — — ( 15 ) ( 15 )

Common stock repurchased under stock repurchase program — — — — — 139 ( 8,987 ) ( 8,987 )

Balance at September 30, 2024 34,298 $ 343 $ 341,306 $ 829,694 $ ( 2,793 ) 3,944 $ ( 165,317 ) $ 1,003,233

Balance at December 31, 2022 34,060 $ 340 $ 322,873 $ 627,978 $ ( 3,432 ) 3,199 $ ( 125,660 ) $ 822,099

4 unchanged sentences

Awards of common stock 8 — — — — — — —

Excise tax on repurchase of common stock — — — — — — ( 159 ) ( 159 )

Common stock repurchased under stock repurchase program — — — — — 521 ( 25,181 ) ( 25,181 )

Balance at June 30, 2023 34,194 $ 342 $ 327,927 $ 679,800 $ ( 4,115 ) 3,770 $ ( 153,644 ) $ 850,310

Balance at September 30, 2023 34,212 $ 342 $ 330,128 $ 719,077 $ ( 5,483 ) 3,776 $ ( 154,215 ) $ 889,849

See accompanying notes to consolidated financial statements.

11 unchanged sentences

generally accepted accounting principles for complete financial statements.

The Company has presented net costs in excess of billings separately on its consolidated balance sheet as of December 31, 2023 to conform with current year presentation.

Recent Accounting Pronouncements

1 unchanged sentence

There have been no material changes from the recent accounting pronouncements previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

(2) ACCOUNTS RECEIVABLE, NET

Accounts receivable consisted of the following (in thousands):

June 30, 2024 December 31, 2023

Trade accounts receivable $ 226,066 $ 178,087

Costs in excess of billings 38,855 52,035

Total accounts receivable 264,921 230,122

Less allowance for doubtful accounts and contract assets ( 5,563 ) ( 5,572 )

Accounts receivable, net $ 259,358 $ 224,550

Refer to Note 3 "Revenue" concerning the Company's costs in excess of billings.

The following table provides a roll-forward of the allowance for credit losses, for the six month period ended June 30, 2024, that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected (in thousands):

(2) TRADE RECEIVABLES, NET

The following table provides a roll-forward of the allowance for credit losses, for the nine month period ended September 30, 2024, that is deducted from the amortized cost basis of trade receivables to present the net amount expected to be collected (in thousands):

Beginning balance as of January 1, 2024 $ 5,351

1 unchanged sentence

Accounts written off against allowance and other adjustments ( 626 )

Ending balance as of June 30, 2024 $ 5,563

Sales includes revenue from contracts with customers for roof and foundation ventilation products;

centralized mail systems;

rain dispersion products;

trims and flashings and other accessories;

retractable awnings;

gutter guards;

designing, engineering, manufacturing and installation of solar racking systems;

electrical balance of systems;

Ending balance as of September 30, 2024 $ 5,418

Sales includes revenue from contracts with customers for roof and foundation ventilation products, centralized mail systems, rain dispersion products, trims and flashings and other accessories, retractable awnings and gutter guards;

designing, engineering, manufacturing and installation of solar racking systems and electrical balance of systems;

designing, engineering, manufacturing and installation of greenhouses;

structural bearings;

expansion joints;

pavement sealant;

elastomeric concrete;

and bridge cable protection systems.

structural bearings, expansion joints, pavement sealant, elastomeric concrete and bridge cable protection systems.

Refer to Note 13 "Segment Information" for additional information related to revenue recognized by timing of transfer of control by reportable segment.

As of June 30, 2024, the Company's remaining performance obligations are part of contracts that have an original expected duration of one year or less.

Contract assets consist of costs in excess of billings presented within accounts receivable in the Company's consolidated balance sheets.

As of September 30, 2024, the Company's remaining performance obligations are part of contracts that have an original expected duration of one year or less.

For the three and nine months ended September 30, 2024 and 2023, respectively, there were no changes to estimated total costs to be incurred related to any individual contract that materially impacted the Company's consolidated financial statements.

Contract assets consist of net costs in excess of billings, classified as current assets in the Company's consolidated balance sheets.

Contract liabilities consist of billings in excess of cost, classified as current liabilities, and unearned revenue, presented within accrued expenses, in the Company's consolidated balance sheets.

Unearned revenue as of June 30, 2024 and December 31, 2023 was $ 5.8 million and $ 3.9 million, respectively.

The Company recognized revenue of $ 37.3 million and $ 33.7 million during the six months ended June 30, 2024 and 2023, respectively, that was included in the contract liabilities balance of $ 48.7 million and $ 39.6 million at December 31, 2023 and 2022, respectively.

Unearned revenue

as of September 30, 2024 and December 31, 2023 was $ 4.3 million and $ 3.9 million, respectively.

The Company recognized revenue of $ 41.7 million and $ 32.2 million during the nine months ended September 30, 2024 and 2023, respectively, that was included in the contract liabilities balance of $ 48.7 million and $ 39.6 million at December 31, 2023 and 2022, respectively.

(4) INVENTORIES, NET

Inventories consisted of the following (in thousands):

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Raw material $ 93,645 $ 77,489

28 unchanged sentences

(6) GOODWILL AND RELATED INTANGIBLE ASSETS

The changes in the carrying amount of goodwill for the six months ended June 30, 2024 are as follows (in thousands):

The changes in the carrying amount of goodwill for the nine months ended September 30, 2024 are as follows (in thousands):

Residential Renewables Agtech Infrastructure Total

2 unchanged sentences

Foreign currency translation — — ( 332 ) — ( 332 )

Balance at June 30, 2024 $ 212,466 $ 184,230 $ 83,216 $ 31,678 $ 511,590

Goodwill is recognized net of accumulated impairment losses of $ 133.2 million as of June 30, 2024 and December 31, 2023, respectively.

Balance at September 30, 2024 $ 212,466 $ 184,230 $ 83,567 $ 31,678 $ 511,941

Goodwill is recognized net of accumulated impairment losses of $ 133.2 million as of September 30, 2024 and December 31, 2023.

The Company is required to regularly assess whether a triggering event has occurred which would require interim impairment testing.

The Company determined that no triggering event had occurred as of June 30, 2024 which would require an interim impairment test to be performed.

The Company determined that no triggering event had occurred as of September 30, 2024 which would require an interim impairment test to be performed.

Acquired Intangible Assets

Acquired intangible assets consisted of the following (in thousands):

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Amount Accumulated

12 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

4 unchanged sentences

(7) LONG-TERM DEBT

The Company had no outstanding debt as of June 30, 2024 and December 31, 2023.

Unamortized debt issuance costs, included in other assets on the consolidated balance sheets, as of June 30, 2024 and December 31, 2023 were $ 1.6 million and $ 1.7 million, respectively.

The Company had no outstanding debt as of September 30, 2024 and December 31, 2023.

Unamortized debt issuance costs, included in other assets on the consolidated balance sheets, as of September 30, 2024 and December 31, 2023 were $ 1.4 million and $ 1.7 million, respectively.

Revolving Credit Facility

2 unchanged sentences

The Credit Agreement contains two financial covenants.

As of June 30, 2024, the Company was in compliance with all financial covenants.

As of September 30, 2024, the Company was in compliance with all financial covenants.

The Credit Agreement terminates on December 8, 2027.

5 unchanged sentences

Capital distributions are subject to certain Total Net Leverage Ratio requirements and capped by an annual aggregate limit under the Credit Agreement.

Standby letters of credit of $ 4.9 million have been issued under the Credit Agreement to third parties on behalf of the Company as of June 30, 2024.

Standby letters of credit of $ 4.9 million have been issued under the Credit Agreement to third parties on behalf of the Company as of September 30, 2024.

These letters of credit reduce the amount otherwise available under the revolving credit facility.

The Company had $ 395.1 million and $ 396.1 million of availability under the revolving credit facility as of June 30, 2024 and December 31, 2023, respectively.

The Company had $ 395.1 million and $ 396.1 million of availability under the revolving credit facility as of September 30, 2024 and December 31, 2023, respectively.

(8) EQUITY-BASED COMPENSATION

5 unchanged sentences

Equity-Based Awards - Settled in Stock

The following table provides the number of stock units granted during the six months ended June 30, along with the weighted-average grant-date fair value of each award:

The following table provides the number of stock units granted during the nine months ended September 30, along with the weighted-average grant-date fair value of each award:

Awards Number of

17 unchanged sentences

The account will be converted to and settled in cash payable to participants upon retirement or a termination of their service to the Company.

Total MSPP liabilities recorded on the consolidated balance sheet as of June 30, 2024 were $ 24.1 million, of which $ 2.6 million was included in current accrued expenses and $ 21.5 million was included in non-current liabilities.

Total MSPP liabilities recorded on the consolidated balance sheet as of September 30, 2024 were $ 24.8 million, of which $ 2.7 million was included in current accrued expenses and $ 22.1 million was included in non-current liabilities.

Total MSPP liabilities recorded on the consolidated balance sheet as of December 31, 2023 were $ 20.0 million, of which $ 2.0 million was included in current accrued expenses and $ 18.0 million was included in non-current liabilities.

The value of the restricted stock units within the MSPP liabilities was $ 21.0 million and $ 17.3 million at June 30, 2024 and December 31, 2023, respectively.

The following table provides the number of restricted stock units credited to active participant accounts and the payments made with respect to MSPP liabilities during the six months ended June 30,:

The value of the restricted stock units within the MSPP liabilities was $ 19.3 million and $ 17.3 million at September 30, 2024 and December 31, 2023, respectively.

The following table provides the number of restricted stock units credited to active participant accounts and the payments made with respect to MSPP liabilities during the nine months ended September 30,:

Restricted stock units credited 42,476 46,843

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

5 unchanged sentences

These initiatives have resulted in the identification of low-volume, low margin, internally-produced products which have been or will be outsourced or discontinued, the simplification of processes, the sale and exiting of less profitable businesses or product lines, and a reduction in the Company's manufacturing footprint.

As a result of process simplification initiatives, the Company has incurred exit activity costs related to moving and closing costs and severance, along with asset impairment costs (recoveries) related to the write-down of inventory and other charges associated with discontinued product lines.

Additionally, the Company has incurred the aforementioned costs resulting from the sale and/or closure of facilities including costs recorded during the six months ended June 30, 2023.

Additionally, the Company has incurred the aforementioned costs resulting from the sale and/or closure of facilities including costs recorded during the nine months ended September 30, 2023.

The following tables set forth the exit activity costs and asset impairment charges (recoveries) incurred by segment related to the restructuring activities described above (in thousands):

Three Months Ended

September 30,

Exit Activity Asset Impairment Total Exit Activity Asset Impairment Total

5 unchanged sentences

Total $ 5,106 $ — $ 5,106 $ 4,383 $ 595 $ 4,978

Six Months Ended

Nine Months Ended

September 30,

Exit Activity Asset Impairment Total Exit Activity Asset Impairment Total

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

2 unchanged sentences

Total exit activity and asset impairment charges $ 5,106 $ 4,978 $ 10,050 $ 8,695

The following table reconciles the beginning and ending liability for exit activity costs relating to the Company’s restructuring efforts (in thousands):

The following table reconciles the beginning and ending liability for exit activity costs recorded in current accrued expenses on the consolidated balance sheet relating to the Company’s restructuring efforts (in thousands):

Balance at January 1 $ 6,725 $ 2,417

1 unchanged sentence

Cash payments ( 3,650 ) ( 3,254 )

Balance at June 30 $ 9,613 $ 3,780

Balance at September 30 $ 12,962 $ 7,286

(11) INCOME TAXES

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

1 unchanged sentence

Effective tax rate 25.1 % 27.0 % 25.6 % 26.7 %

The effective tax rate for the three and six months ended June 30, 2024 and 2023, respectively, was greater than the U.S.

The effective tax rate for the three and nine months ended September 30, 2024 and 2023, respectively, was greater than the U.S.

federal statutory rate of 21 % due to state taxes and nondeductible permanent differences partially offset by favorable discrete item s due to an excess tax benefit on stock-based compensation.

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

9 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

12 unchanged sentences

The following table illustrates the total assets of the Company's reportable segments and unallocated corporate assets as of (in thousands):

September 30,

2024 December 31,

Total assets:

Residential $ 531,021 $ 515,739

3 unchanged sentences

Unallocated corporate assets 240,145 117,287

$ 1,376,941 $ 1,256,451

Total assets $ 1,424,590 $ 1,256,451

The following tables illustrate segment revenue disaggregated by timing of transfer of control to the customer for the (in thousands):

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Residential Renewables Agtech Infrastructure Total

2 unchanged sentences

Total net sales $ 212,363 $ 84,064 $ 41,527 $ 23,242 $ 361,196

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Residential Renewables Agtech Infrastructure Total

2 unchanged sentences

Total net sales $ 227,747 $ 106,362 $ 31,666 $ 24,969 $ 390,744

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Residential Renewables Agtech Infrastructure Total

2 unchanged sentences

Total net sales $ 611,790 $ 214,941 $ 110,062 $ 69,914 $ 1,006,707

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Residential Renewables Agtech Infrastructure Total

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements