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SEC Filings

10-Q
FORTERRA, INC. filed this Form 10-Q on 11/09/2017
Entire Document
 
FORTERRA, INC.
Notes to Unaudited Condensed Consolidated Financial Statements



For the nine months ended September 30, 2017:
 
Drainage Pipe & Products
Water Pipe & Products
Corporate and Other
Total
Net Sales
$
630,200

$
588,999

$
45

$
1,219,244

Income (loss) from continuing operations before income taxes
63,656

(21,195
)
(113,127
)
(70,666
)
Depreciation and amortization
34,847

52,046

570

87,463

Interest expense
329

30

45,843

46,202

EBITDA
$
98,832

$
30,881

$
(66,714
)
$
62,999

 
 
 
 
 
Capital expenditures
$
19,161

$
10,935

$
1,041

$
31,137

Total assets
$
809,353

$
970,716

$
66,546

$
1,846,615



For the nine months ended September 30, 2016:
 
Drainage Pipe & Products
Water Pipe & Products
Corporate and Other
Total
Net Sales
$
552,035

$
455,286

$
2,530

$
1,009,851

Income (loss) from continuing operations before income taxes
90,205

43,821

(128,560
)
5,466

Depreciation and amortization
29,608

34,853

457

64,918

Interest expense
6,723

1,577

65,585

73,885

EBITDA
$
126,536

$
80,251

$
(62,518
)
$
144,269

 
 
 
 
 
Capital expenditures
$
12,621

$
10,035

$
624

$
23,280

Total assets
$
753,044

$
1,103,245

$
56,875

$
1,913,164


In the nine months ended September 30, 2017 above, the Water Pipe & Products income from continuing operations includes the impact of $3.0 million of goodwill impairment and $7.5 million of long-lived asset impairment charges. In the three and nine months ended September 30, 2017 above, the Water Pipe & Products income from continuing operations includes the loss generated from the U.S. Pressure Pipe Divestiture of $31.6 million.
    
The Company has an investment in an equity method investee included in the Drainage Pipe & Products segment for which earnings from equity method investee were $2.9 million and $9.4 million for the three and nine months ended September 30, 2017, respectively, and $4.1 million and $9.0 million for the three and nine months ended September 30, 2016, respectively, and with the following balances (in thousands):

 
September 30,
 
December 31,
 
2017
 
2016
Investment in equity method investee
$
55,685

 
$
55,236



The Company is also required by ASC 280 to disclose additional information related to geographic location. The Company has operations in the United States, Canada and Mexico. The Company has both revenues and long-lived assets in each country; and those assets and revenues are recorded within geographic location as follows (in thousands):
Property, plant, and equipment, net:
September 30,
 
December 31,
 
2017
 
2016
United States
$
395,019

 
$
422,853

Canada
20,748

 
19,584

Mexico
10,479

 
10,477

 
$
426,246

 
$
452,914



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