ck1723866-10q_20210630.htm
false 2021 Q2 0001723866 --12-31 P6Y P10Y P5Y P11Y Life of agreement 0001723866 2021-01-01 2021-06-30 xbrli:shares 0001723866 2021-07-31 iso4217:USD 0001723866 2021-06-30 0001723866 2020-12-31 0001723866 us-gaap:CustomerRelationshipsMember 2021-06-30 0001723866 us-gaap:CustomerRelationshipsMember 2020-12-31 0001723866 ck1723866:TradenamesAndNonCompeteAgreementsMember 2021-06-30 0001723866 ck1723866:TradenamesAndNonCompeteAgreementsMember 2020-12-31 0001723866 us-gaap:CommonClassAMember 2021-06-30 0001723866 us-gaap:CommonClassAMember 2020-12-31 iso4217:USD xbrli:shares 0001723866 2021-04-01 2021-06-30 0001723866 2020-04-01 2020-06-30 0001723866 2020-01-01 2020-06-30 0001723866 2019-12-31 0001723866 2020-06-30 0001723866 us-gaap:CommonClassAMember 2019-12-31 0001723866 us-gaap:TreasuryStockMember 2019-12-31 0001723866 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001723866 us-gaap:RetainedEarningsMember 2019-12-31 0001723866 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001723866 2020-01-01 2020-03-31 0001723866 us-gaap:CommonClassAMember 2020-01-01 2020-03-31 0001723866 us-gaap:TreasuryStockMember 2020-01-01 2020-03-31 0001723866 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001723866 us-gaap:CommonClassAMember 2020-03-31 0001723866 us-gaap:TreasuryStockMember 2020-03-31 0001723866 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001723866 us-gaap:RetainedEarningsMember 2020-03-31 0001723866 2020-03-31 0001723866 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001723866 us-gaap:CommonClassAMember 2020-04-01 2020-06-30 0001723866 us-gaap:TreasuryStockMember 2020-04-01 2020-06-30 0001723866 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001723866 us-gaap:CommonClassAMember 2020-06-30 0001723866 us-gaap:TreasuryStockMember 2020-06-30 0001723866 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001723866 us-gaap:RetainedEarningsMember 2020-06-30 0001723866 us-gaap:TreasuryStockMember 2020-12-31 0001723866 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001723866 us-gaap:RetainedEarningsMember 2020-12-31 0001723866 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001723866 2021-01-01 2021-03-31 0001723866 us-gaap:CommonClassAMember 2021-01-01 2021-03-31 0001723866 us-gaap:TreasuryStockMember 2021-01-01 2021-03-31 0001723866 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001723866 us-gaap:CommonClassAMember 2021-03-31 0001723866 us-gaap:TreasuryStockMember 2021-03-31 0001723866 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001723866 us-gaap:RetainedEarningsMember 2021-03-31 0001723866 2021-03-31 0001723866 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001723866 us-gaap:CommonClassAMember 2021-04-01 2021-06-30 0001723866 us-gaap:TreasuryStockMember 2021-04-01 2021-06-30 0001723866 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001723866 us-gaap:TreasuryStockMember 2021-06-30 0001723866 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001723866 us-gaap:RetainedEarningsMember 2021-06-30 0001723866 ck1723866:RestrictedStockAwardsAndRestrictedStockUnitAwardsMember 2021-01-01 2021-06-30 0001723866 us-gaap:RestrictedStockMember 2020-04-01 2020-06-30 0001723866 us-gaap:FairValueInputsLevel3Member 2021-01-01 2021-06-30 0001723866 us-gaap:NoncompeteAgreementsMember 2021-01-01 2021-06-30 0001723866 srt:MinimumMember us-gaap:CustomerRelationshipsMember 2021-01-01 2021-06-30 0001723866 us-gaap:CustomerRelationshipsMember srt:MaximumMember 2021-01-01 2021-06-30 0001723866 srt:MinimumMember us-gaap:TradeNamesMember 2021-01-01 2021-06-30 0001723866 us-gaap:TradeNamesMember srt:MaximumMember 2021-01-01 2021-06-30 0001723866 us-gaap:CustomerRelationshipsMember 2021-01-01 2021-06-30 0001723866 us-gaap:TradeNamesMember 2021-01-01 2021-06-30 0001723866 2020-01-01 2020-12-31 0001723866 ck1723866:ResidentialDesignServicesBusinessMember ck1723866:InteriorLogicGroupHoldingsIVLLCMember 2021-06-30 0001723866 ck1723866:ResidentialDesignServicesBusinessMember ck1723866:InteriorLogicGroupHoldingsIVLLCMember 2021-01-01 2021-06-30 0001723866 ck1723866:ResidentialDesignServicesBusinessMember ck1723866:InteriorLogicGroupHoldingsIVLLCMember 2021-04-01 2021-06-30 0001723866 ck1723866:ResidentialDesignServicesBusinessMember 2020-12-31 0001723866 ck1723866:ResidentialDesignServicesBusinessMember 2021-04-01 2021-06-30 0001723866 ck1723866:ResidentialDesignServicesBusinessMember 2020-04-01 2020-06-30 0001723866 ck1723866:ResidentialDesignServicesBusinessMember 2021-01-01 2021-06-30 0001723866 ck1723866:ResidentialDesignServicesBusinessMember 2020-01-01 2020-06-30 0001723866 ck1723866:ResidentialDesignServicesBusinessMember 2021-06-30 0001723866 ck1723866:QuartzMember 2021-04-01 2021-06-30 0001723866 ck1723866:StoneMember 2021-04-01 2021-06-30 0001723866 ck1723866:TileMember 2021-04-01 2021-06-30 0001723866 us-gaap:ProductAndServiceOtherMember 2021-04-01 2021-06-30 0001723866 ck1723866:QuartzMember 2020-04-01 2020-06-30 0001723866 ck1723866:StoneMember 2020-04-01 2020-06-30 0001723866 ck1723866:TileMember 2020-04-01 2020-06-30 0001723866 us-gaap:ProductAndServiceOtherMember 2020-04-01 2020-06-30 0001723866 ck1723866:QuartzMember 2021-01-01 2021-06-30 0001723866 ck1723866:StoneMember 2021-01-01 2021-06-30 0001723866 ck1723866:TileMember 2021-01-01 2021-06-30 0001723866 us-gaap:ProductAndServiceOtherMember 2021-01-01 2021-06-30 0001723866 ck1723866:QuartzMember 2020-01-01 2020-06-30 0001723866 ck1723866:StoneMember 2020-01-01 2020-06-30 0001723866 ck1723866:TileMember 2020-01-01 2020-06-30 0001723866 us-gaap:ProductAndServiceOtherMember 2020-01-01 2020-06-30 xbrli:pure 0001723866 ck1723866:QuartzMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-04-01 2021-06-30 0001723866 ck1723866:StoneMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-04-01 2021-06-30 0001723866 ck1723866:TileMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-04-01 2021-06-30 0001723866 us-gaap:ProductAndServiceOtherMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-04-01 2021-06-30 0001723866 us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-04-01 2021-06-30 0001723866 ck1723866:QuartzMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-04-01 2020-06-30 0001723866 ck1723866:StoneMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-04-01 2020-06-30 0001723866 ck1723866:TileMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-04-01 2020-06-30 0001723866 us-gaap:ProductAndServiceOtherMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-04-01 2020-06-30 0001723866 us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-04-01 2020-06-30 0001723866 ck1723866:QuartzMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-01-01 2021-06-30 0001723866 ck1723866:StoneMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-01-01 2021-06-30 0001723866 ck1723866:TileMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-01-01 2021-06-30 0001723866 us-gaap:ProductAndServiceOtherMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-01-01 2021-06-30 0001723866 us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-01-01 2021-06-30 0001723866 ck1723866:QuartzMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-01-01 2020-06-30 0001723866 ck1723866:StoneMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-01-01 2020-06-30 0001723866 ck1723866:TileMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-01-01 2020-06-30 0001723866 us-gaap:ProductAndServiceOtherMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-01-01 2020-06-30 0001723866 us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-01-01 2020-06-30 ck1723866:Customer 0001723866 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2021-04-01 2021-06-30 0001723866 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2021-01-01 2021-06-30 0001723866 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2020-04-01 2020-06-30 0001723866 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2020-01-01 2020-06-30 0001723866 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2021-01-01 2021-06-30 0001723866 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2020-01-01 2020-12-31 0001723866 us-gaap:VehiclesMember 2021-06-30 0001723866 us-gaap:VehiclesMember 2020-12-31 0001723866 us-gaap:MachineryAndEquipmentMember 2021-06-30 0001723866 us-gaap:MachineryAndEquipmentMember 2020-12-31 0001723866 us-gaap:LeaseholdImprovementsMember 2021-06-30 0001723866 us-gaap:LeaseholdImprovementsMember 2020-12-31 0001723866 us-gaap:FurnitureAndFixturesMember 2021-06-30 0001723866 us-gaap:FurnitureAndFixturesMember 2020-12-31 0001723866 ck1723866:ComputerEquipmentAndInternalUseSoftwareMember 2021-06-30 0001723866 ck1723866:ComputerEquipmentAndInternalUseSoftwareMember 2020-12-31 0001723866 us-gaap:OtherCapitalizedPropertyPlantAndEquipmentMember 2021-06-30 0001723866 us-gaap:OtherCapitalizedPropertyPlantAndEquipmentMember 2020-12-31 0001723866 us-gaap:CostOfSalesMember 2021-04-01 2021-06-30 0001723866 us-gaap:CostOfSalesMember 2020-04-01 2020-06-30 0001723866 us-gaap:CostOfSalesMember 2021-01-01 2021-06-30 0001723866 us-gaap:CostOfSalesMember 2020-01-01 2020-06-30 0001723866 us-gaap:GeneralAndAdministrativeExpenseMember 2021-04-01 2021-06-30 0001723866 us-gaap:GeneralAndAdministrativeExpenseMember 2020-04-01 2020-06-30 0001723866 us-gaap:GeneralAndAdministrativeExpenseMember 2021-01-01 2021-06-30 0001723866 us-gaap:GeneralAndAdministrativeExpenseMember 2020-01-01 2020-06-30 0001723866 us-gaap:TradeNamesMember 2021-06-30 0001723866 us-gaap:NoncompeteAgreementsMember 2021-06-30 0001723866 us-gaap:TradeNamesMember 2020-12-31 0001723866 us-gaap:NoncompeteAgreementsMember 2020-12-31 0001723866 us-gaap:SegmentContinuingOperationsMember 2021-04-01 2021-06-30 0001723866 us-gaap:SegmentContinuingOperationsMember 2021-01-01 2021-06-30 0001723866 us-gaap:SegmentContinuingOperationsMember 2020-04-01 2020-06-30 0001723866 us-gaap:SegmentContinuingOperationsMember 2020-01-01 2020-06-30 0001723866 us-gaap:SegmentDiscontinuedOperationsMember 2021-04-01 2021-06-30 0001723866 us-gaap:SegmentDiscontinuedOperationsMember 2021-01-01 2021-06-30 0001723866 us-gaap:SegmentDiscontinuedOperationsMember 2020-04-01 2020-06-30 0001723866 us-gaap:SegmentDiscontinuedOperationsMember 2020-01-01 2020-06-30 0001723866 ck1723866:SICCreditFacilityMember 2018-06-28 0001723866 ck1723866:SICCreditFacilityMember 2019-08-19 0001723866 ck1723866:SICCreditFacilityMember 2021-01-01 2021-06-30 0001723866 ck1723866:SICCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember srt:MinimumMember 2018-06-27 2018-06-28 0001723866 ck1723866:SICCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember srt:MaximumMember 2018-06-27 2018-06-28 0001723866 ck1723866:SICCreditFacilityMember us-gaap:FederalFundsEffectiveSwapRateMember 2018-06-27 2018-06-28 0001723866 ck1723866:SICCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-06-27 2018-06-28 0001723866 ck1723866:SICCreditFacilityMember ck1723866:LIBORThirtyDayInterestPeriodMember srt:MinimumMember 2018-06-27 2018-06-28 0001723866 ck1723866:SICCreditFacilityMember ck1723866:LIBORThirtyDayInterestPeriodMember srt:MaximumMember 2018-06-27 2018-06-28 0001723866 ck1723866:SICCreditFacilityMember 2018-06-27 2018-06-28 0001723866 ck1723866:SICCreditFacilityMember 2021-04-01 2021-06-30 0001723866 ck1723866:SICCreditFacilityMember 2021-06-29 2021-06-30 0001723866 ck1723866:SICCreditFacilityMember 2021-06-30 0001723866 ck1723866:SICCreditFacilityMember 2020-12-31 0001723866 ck1723866:SICCreditFacilityMember srt:MaximumMember 2021-01-01 2021-06-30 0001723866 ck1723866:SICCreditFacilityMember srt:MaximumMember 2021-04-01 2021-06-30 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember 2018-12-31 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember 2017-02-28 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember 2018-08-31 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember 2020-01-01 2020-03-31 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember 2020-04-01 2020-06-30 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember 2020-07-01 2020-09-30 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember 2020-10-01 2020-12-31 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember 2021-01-01 2021-03-31 0001723866 ck1723866:TermLoanMember srt:MinimumMember 2021-01-01 2021-03-31 0001723866 ck1723866:TermLoanMember srt:MaximumMember 2021-01-01 2021-03-31 0001723866 ck1723866:TermLoanMember srt:MinimumMember 2020-04-08 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember us-gaap:BaseRateMember ck1723866:LeverageRatioGreaterThanTwoPointFourZeroMember 2021-01-01 2021-06-30 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember us-gaap:LondonInterbankOfferedRateLIBORMember ck1723866:LeverageRatioGreaterThanTwoPointFourZeroMember 2021-01-01 2021-06-30 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember ck1723866:LeverageRatioGreaterThanTwoPointFourZeroMember srt:MinimumMember 2021-01-01 2021-06-30 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember ck1723866:LeverageRatioLessThanTwoPointFourZeroMember srt:MaximumMember 2021-01-01 2021-06-30 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember us-gaap:BaseRateMember ck1723866:LeverageRatioLessThanTwoPointFourZeroMember 2021-01-01 2021-06-30 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember us-gaap:LondonInterbankOfferedRateLIBORMember ck1723866:LeverageRatioLessThanTwoPointFourZeroMember 2021-01-01 2021-06-30 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember us-gaap:PrimeRateMember 2021-06-30 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember 2021-06-30 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember 2020-12-31 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember 2021-04-01 2021-06-30 0001723866 ck1723866:ASGFebruaryTwoThousandSeventeenFinancingAgreementMember 2021-01-01 2021-06-30 0001723866 us-gaap:AssetsHeldUnderCapitalLeasesMember 2021-04-01 2021-06-30 0001723866 us-gaap:AssetsHeldUnderCapitalLeasesMember 2021-06-30 0001723866 us-gaap:AssetsHeldUnderCapitalLeasesMember 2020-12-31 0001723866 us-gaap:AssetsHeldUnderCapitalLeasesMember 2021-01-01 2021-06-30 0001723866 us-gaap:AssetsHeldUnderCapitalLeasesMember 2020-04-01 2020-06-30 0001723866 us-gaap:AssetsHeldUnderCapitalLeasesMember 2020-01-01 2020-06-30 0001723866 ck1723866:ArchitecturalSurfacesGroupSegmentMember 2021-01-01 2021-06-30 ck1723866:Facility 0001723866 ck1723866:ArchitecturalSurfacesGroupSegmentMember 2021-06-30 ck1723866:State 0001723866 country:US ck1723866:PentalGraniteAndMarbleLimitedLiabilityCompanyMember ck1723866:ArchitecturalSurfacesGroupSegmentMember 2021-01-01 2021-06-30 ck1723866:Container 0001723866 ck1723866:ArchitecturalSurfacesGroupSegmentMember 2020-01-01 2020-12-31 0001723866 ck1723866:TwoThousandAndSeventeenEquityIncentivePlanMember 2017-11-22 0001723866 ck1723866:TwoThousandAndSeventeenEquityIncentivePlanMember 2021-06-30 0001723866 ck1723866:TwoThousandAndNineteenLongTermIncentivePlanMember 2019-03-26 0001723866 ck1723866:TwoThousandAndNineteenLongTermIncentivePlanMember 2021-06-30 0001723866 ck1723866:TwoThousandAndSeventeenPlanAndTwoThousandAndNineteenIncentivePlanMember 2021-01-01 2021-06-30 0001723866 us-gaap:RestrictedStockUnitsRSUMember ck1723866:DirectorsExecutivesAndKeyEmployeesMember ck1723866:TwoThousandAndSeventeenEquityIncentivePlanMember 2021-01-01 2021-06-30 0001723866 us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001723866 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-03-31 0001723866 ck1723866:TimeBasedRestrictedStockUnitsMember ck1723866:ChiefExecutiveOfficersMember 2020-01-01 2020-12-31 0001723866 ck1723866:PerformanceBasedRestrictedStockUnitsMember ck1723866:ChiefExecutiveOfficersMember 2020-01-01 2020-12-31 0001723866 ck1723866:TimeBasedRestrictedStockUnitsMember ck1723866:ChiefExecutiveOfficersMember 2021-01-01 2021-06-30 0001723866 ck1723866:PerformanceBasedRestrictedStockUnitsMember ck1723866:ChiefExecutiveOfficersMember 2021-01-01 2021-06-30 ck1723866:Day 0001723866 ck1723866:InducementAwardsMember 2021-06-30 0001723866 ck1723866:InducementAwardsMember 2020-12-31 0001723866 us-gaap:RestrictedStockMember ck1723866:TwoThousandAndSeventeenPlanAndTwoThousandAndNineteenIncentivePlanMember 2020-12-31 0001723866 us-gaap:RestrictedStockMember ck1723866:TwoThousandAndSeventeenPlanAndTwoThousandAndNineteenIncentivePlanMember 2021-01-01 2021-06-30 0001723866 us-gaap:RestrictedStockMember ck1723866:TwoThousandAndSeventeenPlanAndTwoThousandAndNineteenIncentivePlanMember 2021-06-30 0001723866 us-gaap:RestrictedStockUnitsRSUMember 2021-06-30 0001723866 us-gaap:RestrictedStockUnitsRSUMember us-gaap:DisposalGroupNotDiscontinuedOperationsMember 2021-04-01 2021-06-30 0001723866 us-gaap:RestrictedStockUnitsRSUMember us-gaap:DisposalGroupNotDiscontinuedOperationsMember 2021-01-01 2021-06-30 0001723866 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SegmentDiscontinuedOperationsMember 2021-04-01 2021-06-30 0001723866 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SegmentDiscontinuedOperationsMember 2021-01-01 2021-06-30 0001723866 us-gaap:RestrictedStockUnitsRSUMember us-gaap:DisposalGroupNotDiscontinuedOperationsMember 2020-04-01 2020-06-30 0001723866 us-gaap:RestrictedStockUnitsRSUMember us-gaap:DisposalGroupNotDiscontinuedOperationsMember 2020-01-01 2020-06-30 0001723866 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SegmentDiscontinuedOperationsMember 2020-04-01 2020-06-30 0001723866 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SegmentDiscontinuedOperationsMember 2020-01-01 2020-06-30 0001723866 us-gaap:PhantomShareUnitsPSUsMember 2021-06-30 0001723866 us-gaap:PhantomShareUnitsPSUsMember srt:MaximumMember 2020-04-01 2020-06-30 0001723866 us-gaap:PhantomShareUnitsPSUsMember srt:MaximumMember 2020-01-01 2020-06-30 0001723866 us-gaap:PhantomShareUnitsPSUsMember 2020-12-31 0001723866 ck1723866:FiveTwoOneDigiulianBoulevardLimitedLiabilityCompanyMember ck1723866:ArchitecturalSurfacesGroupLimitedLiabilityCompanyMember ck1723866:FacilityRentMember 2021-04-01 2021-06-30 0001723866 ck1723866:FiveTwoOneDigiulianBoulevardLimitedLiabilityCompanyMember ck1723866:ArchitecturalSurfacesGroupLimitedLiabilityCompanyMember ck1723866:FacilityRentMember 2021-01-01 2021-06-30 0001723866 ck1723866:FiveTwoOneDigiulianBoulevardLimitedLiabilityCompanyMember ck1723866:ArchitecturalSurfacesGroupLimitedLiabilityCompanyMember ck1723866:FacilityRentMember 2020-04-01 2020-06-30 0001723866 ck1723866:FiveTwoOneDigiulianBoulevardLimitedLiabilityCompanyMember ck1723866:ArchitecturalSurfacesGroupLimitedLiabilityCompanyMember ck1723866:FacilityRentMember 2020-01-01 2020-06-30 0001723866 ck1723866:FiveTwoOneDigiulianBoulevardLimitedLiabilityCompanyMember ck1723866:ArchitecturalSurfacesGroupLimitedLiabilityCompanyMember ck1723866:FacilityRentMember 2021-06-30 0001723866 ck1723866:FiveTwoOneDigiulianBoulevardLimitedLiabilityCompanyMember ck1723866:ArchitecturalSurfacesGroupLimitedLiabilityCompanyMember ck1723866:FacilityRentMember 2020-12-31 0001723866 us-gaap:SubsequentEventMember ck1723866:SunCapitalPartnersIncMember 2021-08-08 2021-08-08 0001723866 us-gaap:SubsequentEventMember ck1723866:SunCapitalPartnersIncMember 2021-08-08

 

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 June 30, 2021

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 July 31, 2021, the registrant had 25,920,563 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 June 30, 2021

 

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

21

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

29

Item 4.

Controls and Procedures

29

 

 

 

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

31

Item 1A.

Risk Factors

31

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

31

Item 3.

Defaults Upon Senior Securities

32

Item 4.

Mine Safety Disclosures

32

Item 5.

Other Information

32

Item 6.

Exhibits

33

Signatures

34

 

 

 

i


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Select Interior Concepts, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

 

(in thousands, except share data)

 

June 30, 2021

 

 

December 31, 2020

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash

 

$

36,920

 

 

$

1,594

 

Restricted cash

 

 

5,000

 

 

 

 

Accounts receivable, net of allowance for doubtful accounts of $205 and $195 at

   June 30, 2021 and December 31, 2020, respectively

 

 

21,875

 

 

 

18,222

 

Inventories

 

 

90,988

 

 

 

84,165

 

Prepaid expenses and other current assets

 

 

5,133

 

 

 

2,312

 

Income taxes receivable

 

 

2,117

 

 

 

4,617

 

Current assets of discontinued operations

 

 

 

 

 

81,393

 

Total current assets

 

 

162,033

 

 

 

192,303

 

Property and equipment, net of accumulated depreciation of $17,487 and $15,930 at

   June 30, 2021 and December 31, 2020, respectively

 

 

6,071

 

 

 

6,713

 

Deferred tax assets, net

 

 

14,878

 

 

 

14,905

 

Goodwill

 

 

45,564

 

 

 

45,564

 

Customer relationships, net of accumulated amortization of $28,616 and $25,548 at

   June 30, 2021 and December 31, 2020, respectively

 

 

31,564

 

 

 

34,632

 

Other intangible assets, net of accumulated amortization of $3,589 and $3,172 at

   June 30, 2021 and December 31, 2020, respectively

 

 

4,201

 

 

 

4,618

 

Other assets

 

 

1,009

 

 

 

757

 

Non-current assets of discontinued operations

 

 

 

 

 

112,021

 

Total assets

 

$

265,320

 

 

$

411,513

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

32,188

 

 

$

26,337

 

Accrued expenses and other current liabilities

 

 

9,442

 

 

 

10,572

 

Customer deposits

 

 

6,554

 

 

 

5,089

 

Current portion of long-term debt, net of financing fees of $1,279 at

   December 31, 2020

 

 

 

 

 

15,482

 

Current portion of capital lease obligations

 

 

268

 

 

 

239

 

Current liabilities of discontinued operations

 

 

 

 

 

36,825

 

Total current liabilities

 

 

48,452

 

 

 

94,544

 

Line of credit

 

 

 

 

 

9,623

 

Long-term debt, net of current portion and financing fees of $1,486 at

   December 31, 2020

 

 

 

 

 

134,526

 

Long-term capital lease obligations

 

 

1,799

 

 

 

1,602

 

Other long-term liabilities

 

 

1,953

 

 

 

2,102

 

Non-current liabilities of discontinued operations

 

 

 

 

 

14,925

 

Total liabilities

 

$

52,204

 

 

$

257,322

 

Commitments and contingencies (see Note 11)

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

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

   26,184,793 shares issued and 25,920,563 outstanding at June 30, 2021 and

   25,609,758 shares issued and 25,449,025 outstanding at December 31, 2020

 

 

261

 

 

 

256

 

Treasury stock, 264,230 shares at June 30, 2021 and 160,733 shares at

   December 31, 2020, at cost

 

 

(2,285

)

 

 

(1,279

)

Additional paid-in capital

 

 

168,666

 

 

 

165,048

 

Retained earnings (accumulated deficit)

 

 

46,474

 

 

 

(9,834

)

Total stockholders' equity

 

$

213,116

 

 

$

154,191

 

Total liabilities and stockholders' equity

 

$

265,320

 

 

$

411,513

 

 

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 June 30,

 

 

For the Six Months Ended June 30,

 

(in thousands, except share and per share data)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue, net

 

$

67,186

 

 

$

51,994

 

 

$

124,563

 

 

$

107,021

 

Cost of revenue

 

 

47,208

 

 

 

38,800

 

 

 

89,253

 

 

 

80,600

 

Gross profit

 

 

19,978

 

 

 

13,194

 

 

 

35,310

 

 

 

26,421

 

Selling, general and administrative expenses

 

 

14,818

 

 

 

13,238

 

 

 

29,019

 

 

 

26,396

 

Income (loss) from operations

 

 

5,160

 

 

 

(44

)

 

 

6,291

 

 

 

25

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

78

 

 

 

48

 

 

 

119

 

 

 

98

 

Loss on extinguishment of debt

 

 

2,385

 

 

 

 

 

 

2,385

 

 

 

 

Total other expense, net

 

 

2,463

 

 

 

48

 

 

 

2,504

 

 

 

98

 

Income (loss) from continuing operations before provision for (benefit from) income taxes

 

 

2,697

 

 

 

(92

)

 

 

3,787

 

 

 

(73

)

Provision for (benefit from) income taxes

 

 

181

 

 

 

158

 

 

 

451

 

 

 

(80

)

Net income (loss) from continuing operations

 

 

2,516

 

 

 

(250

)

 

 

3,336

 

 

 

7

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations, net of income taxes

 

 

(3,199

)

 

 

(2,929

)

 

 

(5,824

)

 

 

(7,188

)

Gain on disposal of discontinued operations, net of income taxes

 

 

58,796

 

 

 

 

 

 

58,796

 

 

 

 

Net income (loss) from discontinued operations

 

 

55,597

 

 

 

(2,929

)

 

 

52,972

 

 

 

(7,188

)

Net income (loss)

 

$

58,113

 

 

$

(3,179

)

 

$

56,308

 

 

$

(7,181

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.10

 

 

$

(0.01

)

 

$

0.13

 

 

$

0.00

 

Discontinued operations

 

 

2.17

 

 

 

(0.12

)

 

 

2.07

 

 

 

(0.28

)

Net income (loss)

 

$

2.27

 

 

$

(0.13

)

 

$

2.20

 

 

$

(0.28

)

Diluted earnings (loss) per share of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.09

 

 

$

(0.01

)

 

$

0.12

 

 

$

0.00

 

Discontinued operations

 

 

2.05

 

 

 

(0.12

)

 

 

1.96

 

 

 

(0.28

)

Net income (loss)

 

$

2.14

 

 

$

(0.13

)

 

$

2.08

 

 

$

(0.28

)

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic common stock

 

 

25,591,118

 

 

 

25,328,649

 

 

 

25,543,031

 

 

 

25,260,425

 

Diluted common stock

 

 

27,172,043

 

 

 

25,328,649

 

 

 

27,019,433

 

 

 

25,267,083

 

 

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)

 

 

 

 

Six Months Ended June 30,

 

(in thousands)

 

2021

 

 

2020

 

Cash flows provided by operating activities

 

 

 

 

 

 

 

 

Net income (loss)

 

$

56,308

 

 

$

(7,181

)

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

activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

10,919

 

 

 

11,367

 

Gain on sale of RDS business

 

 

(65,385

)

 

 

 

Loss on extinguishment of debt

 

 

2,385

 

 

 

 

Equity-based compensation

 

 

3,618

 

 

 

554

 

Deferred provision for income taxes

 

 

515

 

 

 

328

 

Amortized interest on deferred debt issuance costs

 

 

688

 

 

 

494

 

Provision for doubtful accounts

 

 

31

 

 

 

(343

)

Gain on disposal of property and equipment, net

 

 

(376

)

 

 

(5

)

Other

 

 

(14

)

 

 

(44

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

3,501

 

 

 

5,587

 

Inventories

 

 

(9,648

)

 

 

4,998

 

Prepaid expenses and other current assets

 

 

(7,016

)

 

 

(3,882

)

Other assets

 

 

(131

)

 

 

(322

)

Accounts payable

 

 

6,137

 

 

 

6,443

 

Accrued expenses and other current liabilities

 

 

(2,797

)

 

 

(467

)

Income taxes receivable

 

 

2,500

 

 

 

(2,950

)

Customer deposits

 

 

554

 

 

 

2,047

 

Other long-term liabilities

 

 

(195

)

 

 

936

 

Net cash provided by operating activities

 

 

1,594

 

 

 

17,560

 

Cash flows provided by (used in) investing activities

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(1,546

)

 

 

(2,436

)

Proceeds from disposal of property and equipment

 

 

127

 

 

 

22

 

Proceeds from the sale of the RDS business, net

 

 

204,332

 

 

 

 

Net cash provided by (used in) investing activities

 

 

202,913

 

 

 

(2,414

)

Cash flows used in financing activities

 

 

 

 

 

 

 

 

Proceeds from ERP financing

 

 

 

 

 

376

 

Payments on the line of credit, net

 

 

(9,872

)

 

 

(12,601

)

Deferred issuance costs

 

 

(327

)

 

 

(2,231

)

Purchase of treasury stock

 

 

(1,006

)

 

 

(704

)

Payments on notes payable and capital leases

 

 

(1,582

)

 

 

(1,527

)

Principal payments on long-term debt

 

 

(152,774

)

 

 

(525

)

Net cash used in financing activities

 

 

(165,561

)

 

 

(17,212

)

Net increase (decrease) in cash

 

$

38,946

 

 

$

(2,066

)

Cash and restricted cash, beginning of period

 

 

1,594

 

 

 

1,070

 

Cash and restricted cash - discontinued operations, beginning of period

 

 

1,380

 

 

 

3,932

 

Cash and restricted cash - discontinued operations, end of period

 

 

 

 

 

872

 

Cash and restricted cash, end of period

 

$

41,920

 

 

$

2,064

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

6,044

 

 

$

7,018

 

Cash paid (refunded) for income taxes, net of refunds

 

$

(1,230

)

 

$

211

 

Supplemental disclosures of non-cash investing activities

 

 

 

 

 

 

 

 

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

 

$

563

 

 

$

596

 

 

 

 

 

 

 

 

 

 

 

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, 2019

 

 

25,139,542

 

 

$

251

 

 

$

(391

)

 

$

161,396

 

 

$

19

 

 

$

161,275

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

(669

)

 

 

 

 

 

(669

)

Issuance of Class A common stock awards

 

 

69,377

 

 

 

1

 

 

 

 

 

 

863

 

 

 

 

 

 

864

 

Issuance of Class A common stock due to restricted stock vesting

 

 

213,339

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

2

 

Repurchase of Class A common stock

 

 

 

 

 

 

 

 

(655

)

 

 

 

 

 

 

 

 

(655

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,002

)

 

 

(4,002

)

Balance as of March 31, 2020

 

 

25,422,258

 

 

$

254

 

 

$

(1,046

)

 

$

161,590

 

 

$

(3,983

)

 

$

156,815

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

1,223

 

 

 

 

 

 

1,223

 

Issuance of Class A common stock due to restricted stock vesting

 

 

78,591

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Repurchase of Class A common stock

 

 

 

 

 

 

 

 

(49

)

 

 

 

 

 

 

 

 

(49

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,179

)

 

 

(3,179

)

Balance as of June 30, 2020

 

 

25,500,849

 

 

$

255

 

 

$

(1,095

)

 

$

162,813

 

 

$

(7,162

)

 

$

154,811

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2020

 

 

25,609,758

 

 

$

256

 

 

$

(1,279

)

 

$

165,048

 

 

$

(9,834

)

 

$

154,191

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

1,194

 

 

 

 

 

 

1,194

 

Issuance of Class A common stock due to restricted stock vesting

 

 

121,882

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Repurchase of Class A common stock

 

 

 

 

 

 

 

 

(372

)

 

 

 

 

 

 

 

 

(372

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,805

)

 

 

(1,805

)

Balance as of March 31, 2021

 

 

25,731,640

 

 

$

257

 

 

$

(1,651

)

 

$

166,242

 

 

$

(11,639

)

 

$

153,209

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

2,424