Print Page      Close Window     

SEC Filings

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

Net Cash Used In Operating Activities

Net cash used in operating activities was $39.1 million for the nine months ended September 30, 2017, compared to net cash provided by operating activities of $30.9 million for the nine months ended September 30, 2016. Changes between the periods are in part due to certain significant tax payments required as a result of the Reorganization as well as the effect of the significant tax benefit recognized in working capital accounts. In addition, general working capital requirements have risen due to acquisitions.

Net Cash Used in Investing Activities

Net cash used in investing activities was $50.9 million for the nine months ended September 30, 2017 due to capital expenditures of $38.7 million and the Royal acquisition for $35.4 million compared to $899.5 million for the nine months ended September 30, 2016 primarily due to the U.S. Pipe, Sherman-Dixie and Bio Clean acquisitions totaling $872.5 million.

Net Cash Provided by Financing Activities

Net cash provided by financing activities was $89.4 million for the nine months ended September 30, 2017 due primarily to proceeds from additional borrowing under the 2016 Senior Term Loan. Net cash provided by financing activities was $860.2 million for the nine months ended September 30, 2016 primarily consisting of additional borrowings incurred in connection with the U.S. Pipe and Sherman-Dixie acquisitions and the proceeds from the sale-leaseback transaction.

Capital Expenditures

Our capital expenditures were $8.7 million and $38.7 million for the three and nine months ended September 30, 2017, respectively, and $10.7 million and $27.0 million for the three and nine months ended September 30, 2016, respectively. Capital expenditures primarily related to equipment, such as plant and mobile equipment, and environmental and permit compliance projects.

Off-Balance Sheet Arrangements

In the ordinary course of our business, we are required to provide surety bonds and standby letters of credit to secure performance commitments, particularly in our Water Pipe & Products segment. As of September 30, 2017, outstanding standby letters of credit amounted to $15.7 million.


Application of Critical Accounting Policies and Estimates  

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Presented within the section titled “Critical Accounting Policies” of our 2016 Form 10-K are the accounting policies that we believe are critical to or require subjective and/or complex judgments that could potentially affect 2017 reported results. There have been no significant changes to those accounting policies or our assessment of which accounting policies we would consider to be critical accounting policies apart from those identified below, which were applied to discrete events addressed in our third quarter condensed consolidated financial statements.


46