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SEC Filings

10-Q
FORTERRA, INC. filed this Form 10-Q on 11/09/2017
Entire Document
 

Nine Months Ended September 30, 2017 as Compared to Nine Months Ended September 30, 2016

Total Company

The following table summarizes certain financial information relating to our operating results for the nine months ended September 30, 2017 and September 30, 2016. Also included is information relating to the operating results as a percentage of net sales.

 Statements of Income Data:
For the nine months ended September 30, 2017
 
% of
Net Sales
 
For the nine months ended September 30, 2016
 
% of
Net Sales
 
 
 
 
 
 
 
 
 Net sales
$
1,219,244

 
100.0
%
 
$
1,009,851

 
100.0
%
 Cost of goods sold
1,022,574

 
83.9
%
 
789,756

 
78.2
%
 Gross profit
196,670

 
16.1
%
 
220,095

 
21.8
%
 Selling, general and administrative expenses
(191,964
)
 
15.7
%
 
(153,076
)
 
15.2
%
 Impairment and exit charges
(13,004
)
 
1.1
%
 
(578
)
 
0.1
%
 Earnings from equity method investee
9,449

 
0.8
%
 
9,014

 
0.9
%
 Other operating income
5,251

 
0.4
%
 
5,290

 
0.5
%
 
(190,268
)
 
15.6
%
 
(139,350
)
 
13.8
%
 Income from operations
6,402

 
0.5
%
 
80,745

 
8.0
%
 Other income (expenses)
 
 
 
 
 
 
 
 Interest expense
(46,202
)
 
3.8
%
 
(73,885
)
 
7.3
%
 Other expense, net
(30,866
)
 
2.5
%
 
(1,394
)
 
0.1
%
 Income (loss) from continuing operations before income taxes
(70,666
)
 
5.8
%
 
5,466

 
0.5
%
 Income tax benefit
25,448

 
2.1
%
 
28,586

 
2.8
%
 Income (loss) from continuing operations
(45,218
)
 
3.7
%
 
34,052

 
3.4
%
 Discontinued operations, net of tax

 
%
 
7,069

 
0.7
%
 Net income (loss)
$
(45,218
)
 
3.7
%
 
$
41,121

 
4.1
%

Net Sales

Net sales for the nine months ended September 30, 2017 were $1,219.2 million, an increase of $209.3 million or 20.7% from $1,009.9 million in the nine months ended September 30, 2016. The increase was primarily attributable to net sales of U.S. Pipe, which was acquired in April 2016, of approximately $155.7 million due to a full nine months of net sales in 2017 compared to a partial period in 2016. In addition, net sales increased by approximately $76.2 million due to our other acquisitions, partially offset by a decrease in existing business net sales of $22.6 million partially due to the impact of hurricanes Irma and Harvey.

Cost of Goods Sold

Cost of goods sold were $1,022.6 million for the nine months ended September 30, 2017, an increase of $232.8 million or 29.5% from $789.8 million in the nine months ended September 30, 2016. The increase was primarily attributable to the acquisitions described above which increased cost of goods sold by $196.0 million. Costs of goods sold in our existing businesses increased by $36.8 million primarily due to higher labor, freight, and raw materials.


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