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es

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

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 1-14982

 

HUTTIG BUILDING PRODUCTS, INC.

(Exact name of registrant as specified in its charter)

 

 Delaware

 

43-0334550

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

555 Maryville University Drive Suite 400

St. Louis, Missouri

 

63141

(Address of principal executive offices)

 

(Zip code)

(314) 216-2600

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

 Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common, par value $0.01 per share

HBP

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, a 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  

The number of shares of Common Stock outstanding on July 28, 2020 was 26,894,006 shares.

 

 

 

 


 

 

 

 

 

Page No.

PART I. FINANCIAL INFORMATION

  

 

 

 

 

 

 

Item 1.

  

Financial Statements

 

3

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (unaudited)

 

3

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets as of June 30, 2020, December 31, 2019 and June 30, 2019 (unaudited)

 

4

 

 

 

 

 

 

 

Condensed Consolidated Statement of Shareholders’ Equity for the three and six months ended June 30, 2020 and 2019 (unaudited)

 

6

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2020 and 2019 (unaudited)

 

7

 

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements (unaudited)

 

8

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

14

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

20

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

20

 

 

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

20

 

 

 

 

 

Item 1A.

 

Risk Factors

 

20

 

 

 

 

 

Item 6.

 

Exhibits

 

21

 

 

 

 

 

Signatures

 

22

 

 

 

 

 

 

 

 

 

 

 

2


PART I FINANCIAL INFORMATION

 

ITEM 1 — FINANCIAL STATEMENTS

HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in millions, except per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net sales

 

$

192.0

 

 

$

218.5

 

 

$

395.0

 

 

$

415.9

 

Cost of sales

 

 

153.3

 

 

 

174.2

 

 

 

315.4

 

 

 

334.2

 

Gross margin

 

 

38.7

 

 

 

44.3

 

 

 

79.6

 

 

 

81.7

 

Operating expenses

 

 

34.7

 

 

 

41.0

 

 

 

73.7

 

 

 

80.6

 

Goodwill impairment

 

 

 

 

 

 

 

 

9.5

 

 

 

 

Restucturing charges

 

 

1.5

 

 

 

 

 

 

1.5

 

 

 

 

Operating income (loss)

 

 

2.5

 

 

 

3.3

 

 

 

(5.1

)

 

 

1.1

 

Interest expense, net

 

 

0.9

 

 

 

1.8

 

 

 

2.2

 

 

 

3.5

 

Income (loss) from operations before income taxes

 

 

1.6

 

 

 

1.5

 

 

 

(7.3

)

 

 

(2.4

)

Income tax expense

 

 

 

 

 

11.8

 

 

 

 

 

 

11.1

 

Income (loss) from continuing operations

 

 

1.6

 

 

 

(10.3

)

 

 

(7.3

)

 

 

(13.5

)

Loss from discontinued operations, net of taxes

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1.6

 

 

$

(10.3

)

 

$

(7.3

)

 

$

(13.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) from continuing operations per share- basic

 

$

0.06

 

 

$

(0.40

)

 

$

(0.28

)

 

$

(0.53

)

Loss from discontinued operations per share- basic

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) per share - basic

 

$

0.06

 

 

$

(0.40

)

 

$

(0.28

)

 

$

(0.53

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) from continuing operations per share- diluted

 

$

0.06

 

 

$

(0.40

)

 

$

(0.28

)

 

$

(0.53

)

Loss from discontinued operations per share- diluted

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share- diluted

 

$

0.06

 

 

$

(0.40

)

 

$

(0.28

)

 

$

(0.53

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares outstanding

 

 

26.0

 

 

 

25.5

 

 

 

26.0

 

 

 

25.4

 

Diluted shares outstanding

 

 

26.2

 

 

 

25.5

 

 

 

26.0

 

 

 

25.4

 

 

See notes to condensed consolidated financial statements

 

 

3


HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in millions)

 

 

 

June 30,

 

 

December 31,

 

 

June 30,

 

 

 

 

2020

 

 

2019

 

 

2019

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and equivalents

 

$

1.8

 

 

$

2.2

 

 

$

1.1

 

 

Trade accounts receivable, net

 

 

95.5

 

 

 

60.5

 

 

 

96.7

 

 

Inventories, net

 

 

108.5

 

 

 

139.4

 

 

 

141.7

 

 

Other current assets

 

 

9.2

 

 

 

12.8

 

 

 

13.4

 

 

Total current assets

 

 

215.0

 

 

 

214.9

 

 

 

252.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT:

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

 

5.0

 

 

 

5.0

 

 

 

5.0

 

 

Buildings and improvements

 

 

32.6

 

 

 

32.4

 

 

 

32.5

 

 

Machinery and equipment

 

 

58.8

 

 

 

58.2

 

 

 

56.5

 

 

Gross property, plant and equipment

 

 

96.4

 

 

 

95.6

 

 

 

94.0

 

 

Less accumulated depreciation

 

 

66.6

 

 

 

64.4

 

 

 

62.0

 

 

Property, plant and equipment, net

 

 

29.8

 

 

 

31.2

 

 

 

32.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease right-of-use assets

 

 

38.6

 

 

 

40.9

 

 

 

34.2

 

 

Goodwill

 

 

 

 

 

9.5

 

 

 

9.5

 

 

Deferred income taxes

 

 

 

 

 

 

 

 

 

 

Other

 

 

4.8

 

 

 

5.0

 

 

 

5.5

 

 

Total other assets

 

 

43.4

 

 

 

55.4

 

 

 

49.2

 

 

TOTAL ASSETS

 

$

288.2

 

 

$

301.5

 

 

$

334.1

 

 

See notes to condensed consolidated financial statements

 

 

4


HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in millions, except share data)

 

 

 

June 30,

 

 

December 31,

 

 

June 30,

 

 

 

 

2020

 

 

2019

 

 

2019

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

1.7

 

 

$

1.7

 

 

$

1.7

 

 

Current maturities of operating lease right-of-use liabilities

 

 

9.8

 

 

 

9.7

 

 

 

9.2

 

 

Trade accounts payable

 

 

62.9

 

 

 

56.8

 

 

 

69.6

 

 

Accrued compensation

 

 

5.5

 

 

 

5.5

 

 

 

4.4

 

 

Other accrued liabilities

 

 

15.3

 

 

 

15.8

 

 

 

13.1

 

 

Total current liabilities

 

 

95.2

 

 

 

89.5

 

 

 

98.0

 

 

NON-CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, less current maturities

 

 

125.6

 

 

 

135.1

 

 

 

158.6

 

 

Operating lease right-of-use liabilities, less current maturities

 

 

29.0

 

 

 

31.6

 

 

 

25.5

 

 

Other non-current liabilities

 

 

2.2

 

 

 

2.4

 

 

 

2.5

 

 

Total non-current liabilities

 

 

156.8

 

 

 

169.1

 

 

 

186.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred shares: $.01 par (5,000,000 shares authorized)

 

 

 

 

 

 

 

 

 

 

Common shares: $.01 par (75,000,000 shares authorized: 26,894,006;

   26,441,926; and 26,542,639 shares issued at June 30, 2020,

   December 31, 2019 and June 30, 2019, respectively)

 

 

0.3

 

 

 

0.3

 

 

 

0.3

 

 

Additional paid-in capital

 

 

48.8

 

 

 

48.2

 

 

 

47.0

 

 

Retained earnings (accumulated deficit)

 

 

(12.9

)

 

 

(5.6

)

 

 

2.2

 

 

Total shareholders’ equity

 

 

36.2

 

 

 

42.9

 

 

 

49.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

288.2

 

 

$

301.5

 

 

$

334.1

 

 

 

See notes to condensed consolidated financial statements

 

 


5


HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

(unaudited)

(in millions)

 

 

Common Shares

 

 

Additional

 

 

Retained Earnings

 

 

Total

 

 

 

Outstanding,

 

 

Paid-In

 

 

(Accumulated

 

 

Shareholders’

 

 

 

at Par Value

 

 

Capital

 

 

Deficit)

 

 

Equity

 

Balance at January 1, 2019

 

$

0.3

 

 

$

46.0

 

 

$

15.7

 

 

$

62.0

 

Net loss

 

 

-

 

 

 

-

 

 

 

(3.2

)

 

 

(3.2

)

Payment for taxes related to share

   settlement of equity awards

 

 

-

 

 

 

(0.1

)

 

 

-

 

 

 

(0.1

)

Stock compensation expense

 

 

-

 

 

 

0.5

 

 

 

-

 

 

 

0.5

 

Balance at March 31, 2019

 

$

0.3

 

 

$

46.4

 

 

$

12.5

 

 

$

59.2

 

Net loss

 

 

-

 

 

 

-

 

 

 

(10.3

)

 

 

(10.3

)

Stock compensation expense

 

 

-

 

 

 

0.6

 

 

 

-

 

 

 

0.6

 

Balance at June 30, 2019

 

$

0.3

 

 

$

47.0

 

 

$

2.2

 

 

$

49.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2020

 

$

0.3

 

 

$

48.2

 

 

$

(5.6

)

 

$

42.9

 

Net loss

 

 

-

 

 

 

-

 

 

 

(8.9

)

 

 

(8.9

)

Stock compensation expense

 

 

-

 

 

 

0.3

 

 

 

-

 

 

 

0.3

 

Balance at March 31, 2020

 

$

0.3

 

 

$

48.5

 

 

$

(14.5

)

 

$

34.3

 

Net income

 

 

-

 

 

 

-

 

 

 

1.6

 

 

 

1.6

 

Stock compensation expense

 

 

-

 

 

 

0.3

 

 

 

-

 

 

 

0.3

 

Balance at June 30, 2020

 

$

0.3

 

 

$

48.8

 

 

$

(12.9

)

 

$

36.2

 

 

6


HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in millions)

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1.6

 

 

$

(10.3

)

 

$

(7.3

)

 

$

(13.5

)

Adjustments to reconcile net loss to net cash used in

   operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1.4

 

 

 

1.3

 

 

 

2.7

 

 

 

2.7

 

Non-cash interest expense

 

 

 

 

 

 

 

 

0.1

 

 

 

0.1

 

Stock-based compensation

 

 

0.3

 

 

 

0.6

 

 

 

0.6

 

 

 

1.1

 

Deferred income taxes

 

 

 

 

 

11.8

 

 

 

 

 

 

11.0

 

Goodwill impairment

 

 

 

 

 

 

 

 

9.5

 

 

 

 

Restructuring charges

 

 

1.5

 

 

 

 

 

 

1.5

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade accounts receivable

 

 

1.2

 

 

 

(7.5

)

 

 

(35.0

)

 

 

(27.7

)

Inventories, net

 

 

38.8

 

 

 

7.5

 

 

 

30.9

 

 

 

(7.7

)

Trade accounts payable

 

 

(22.6

)

 

 

(17.0

)

 

 

6.1

 

 

 

18.1

 

Other

 

 

2.5

 

 

 

(0.6

)

 

 

1.2

 

 

 

(3.9

)

Cash provided by (used in) continuing operating activities

 

 

24.7

 

 

 

(14.2

)

 

 

10.3

 

 

 

(19.8

)

Cash used in discontinued operating activities

 

 

 

 

 

(0.1

)

 

 

(0.1

)

 

 

(0.2

)

Total cash provided by (used in) operating activities

 

 

24.7

 

 

 

(14.3

)

 

 

10.2

 

 

 

(20.0

)

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(0.4

)

 

 

(0.4

)

 

 

(0.8

)

 

 

(0.8

)

Total cash used in investing activities

 

 

(0.4

)

 

 

(0.4

)

 

 

(0.8

)

 

 

(0.8

)

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings (repayments) of debt, net

 

 

(22.9

)

 

 

14.9

 

 

 

(9.8

)

 

 

21.2

 

Repurchase of shares to satisfy employee tax withholdings

 

 

 

 

 

 

 

 

 

 

 

(0.1

)

Total cash provided by (used in) financing activities

 

 

(22.9

)

 

 

14.9

 

 

 

(9.8

)

 

 

21.1

 

Net increase (decrease) in cash and equivalents

 

 

1.4

 

 

 

0.2

 

 

 

(0.4

)

 

 

0.3

 

Cash and equivalents, beginning of period

 

 

0.4

 

 

 

0.9

 

 

 

2.2

 

 

 

0.8

 

Cash and equivalents, end of period

 

$

1.8

 

 

$

1.1

 

 

$

1.8

 

 

$

1.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

1.0

 

 

$

1.7

 

 

$

2.2

 

 

$

3.3

 

Income taxes paid

 

 

0.3

 

 

 

0.1

 

 

 

0.4

 

 

 

0.1

 

Non-cash financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets acquired with debt obligations

 

 

0.2

 

 

 

0.1

 

 

 

0.2

 

 

 

0.2

 

 

See notes to condensed consolidated financial statements

 

 

7


HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

1. BASIS OF PRESENTATION

The unaudited interim condensed consolidated financial statements of Huttig Building Products, Inc. and its subsidiary (the “Company” or “Huttig”) were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and reflect all adjustments (including normal recurring accruals) which, in the opinion of management, are considered necessary for the fair presentation of the results for the periods presented. Financial statement preparation further requires management to make estimates and assumptions. Management bases these estimates and assumptions on historical results and known trends as well as management forecasts. Actual results could differ from these estimates and assumptions and these differences may be material. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

The condensed consolidated results of operations and resulting cash flows for the interim periods presented are not necessarily indicative of the results that might be expected for the full year, or any other interim period, which may differ materially due to, among other things, the factors described in Part I, Item 2 of this Quarterly Report on Form 10-Q and those set forth under Part I, Item 1A – “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as supplemented by Form 8-K filed on April 27, 2020 and Part II, Item 1A – “Risk Factors” of the Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. Due to the seasonal nature of Huttig’s business, operating profitability is usually lower in the Company’s first and fourth quarters than in the second and third quarters

2. NEW ACCOUNTING STANDARDS

Adoption of New Accounting Standards

On January 1, 2020, the Company adopted ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be assessed for impairment under the current expected credit loss model rather than an incurred loss model. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount.  The primary financial asset of the Company within the scope of ASU 2016-13 is trade receivables.  The adoption of ASU 2016-13 did not materially impact the Company's consolidated financial statements.

Recent accounting pronouncements pending adoption and not discussed above are either not applicable or will not have, or are not expected to have, a material impact on our consolidated financial condition, results of operations, or cash flows.

3. REVENUE

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods.  The Company reports sales revenue, including direct sales, on a net basis, which includes gross revenue adjustments for estimated returns, cash payment discounts based on the satisfaction of outstanding receivables, and volume purchase rebates.  The Company’s customer payment terms vary by customer, location, and the products purchased but are typical for the Company’s industry.

Regarding direct sales, the Company is the principal of these arrangements and is responsible for fulfilling the promise to provide specific goods to its customers, including product specifications, pricing and modifications prior to delivery.  Direct sales as a percentage of net sales were 18.2% and 17.3% in the three month periods ended June 30, 2020 and 2019, respectively, and 20.0% and 20.9% in the six month periods ended June 30, 2020 and 2019, respectively.

The following table disaggregates revenue by product classification (in millions):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Millwork products

 

$

81.7

 

 

$

99.5

 

 

$

177.9

 

 

$

194.8

 

Building products

 

$

97.5

 

 

 

101.1

 

 

$

190.0

 

 

 

189.3

 

Wood products

 

$

12.8

 

 

 

17.9

 

 

$

27.1

 

 

 

31.8

 

Net sales

 

$

192.0

 

 

$

218.5

 

 

$

395.0

 

 

$

415.9

 

 

4.  LEASES

The Company has operating and financing leases for corporate offices, distribution centers, vehicles, and certain equipment. These leases have remaining lease terms of less than 1 year to 12 years and many of the leases have renewal options.  Because the Company is not reasonably certain to exercise the renewal options, the options are not considered in determining the lease term, and associated potential

8


option payments are excluded from lease payments and right-of-use calculations.  Leases with an initial term of 12 months or less are likewise excluded from right-of-use calculations.

In addition to fixed payments, many of the Company’s lease contracts contain variable payments. Vehicle lease variable payments typically include mileage, and real estate leases include variable charges for taxes and common area maintenance.  Variable lease payments and payments for leases with an initial term of 12 months or less are recognized in the period incurred.

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

(in millions):

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating Lease Cost

$

3.1

 

 

$

3.0

 

 

$

6.3

 

 

$

6.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance Lease Cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of right-of-use assets

 

0.3

 

 

 

0.4

 

 

 

0.6

 

 

 

0.9

 

Interest on lease liabilities

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

Total finance lease cost

$

0.4

 

 

$

0.5

 

 

$

0.7

 

 

$

1.0

 

The following lease assets and liabilities are included on the condensed consolidated balance sheet (in millions):

 

June 30,

 

 

December 31,

 

 

June 30,

 

 

2020

 

 

2019

 

 

2019

 

Operating Leases:

 

 

 

 

 

 

 

 

 

 

 

Operating lease right-of-use assets

$

38.6