Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.19.3
Discontinued Operations
9 Months Ended
Sep. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations DISCONTINUED OPERATIONS
In December 2018, we completed the sale of our wood business to TZI. The proceeds from the sale were $90.2 million, net of closing costs, transaction fees and taxes. The transaction was subject to a customary post-closing working capital adjustment process which resulted in us making a $1.9 million payment to TZI in the third quarter of 2019.
The financial results of the wood business have been reclassified as discontinued operations for all periods presented. The Condensed Consolidated Statements of Cash Flows do not separately report the cash flows of the discontinued operation.
The following is a summary of the operating results of the wood business, which are included in discontinued operations.
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2018
 
2018
Net sales
$
100.8

 
$
299.2

Cost of goods sold
85.3

 
254.6

Gross profit
15.5

 
44.6

Selling, general and administrative expenses
8.7

 
27.5

Operating earnings
6.8

 
17.1

Interest expense

 

Other expense, net

 

Earnings before income tax
6.8

 
17.1

Income tax expense
2.2

 
4.9

Net earnings from discontinued operations
$
4.6

 
$
12.2

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2018
 
2018
Depreciation and Amortization
$
2.9

 
$
8.8

Capital Expenditures
(1.7
)
 
(5.4
)

The following is a summary of the results related to the net (loss) gain on disposal of the wood business which is included in discontinued operations:
 
Three Months Ended
September 30, 2019
 
Nine Months Ended
September 30, 2019
 
2019
 
2019
(Loss) gain on disposal of discontinued operations before income tax
$
(2.3
)
 
10.3

Income tax (benefit) expense
(0.6
)
 
2.7

Net (loss) gain on disposal of discontinued operations
$
(1.7
)
 
$
7.6

During the second quarter of 2019, we reached a resolution in our antidumping case resulting in a reversal of a previously recognized liability of $11.4 million, which was reflected in gain on disposal of discontinued operations. See Note 15 for further information.