|
Delaware
(State or other jurisdiction of incorporation or organization) |
| |
3670
(Primary Standard Industrial Classification Code Number) |
| |
82-1952221
(I.R.S. Employer Identification Number) |
|
|
William B. Brentani
Daniel N. Webb Simpson Thacher & Bartlett LLP 2475 Hanover Street Palo Alto, California 94304 Tel: (650) 251-5000 Fax: (650) 251-5002 |
| |
Rick Kline
Drew Capurro Latham & Watkins LLP 140 Scott Drive Menlo Park, California 94025 Tel: (650) 328-4600 Fax: (650) 463-2600 |
|
|
Large accelerated filer
☐
|
| |
Accelerated filer
☐
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|
|
Non-accelerated filer
☒
|
| |
Smaller reporting company
☐
|
|
| | | |
Emerging growth company
☒
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Title of Each Class
of Securities to be Registered |
| | |
Proposed Maximum
Aggregate Offering Price(1)(2) |
| | |
Amount of
Registration Fee |
| ||||||
Common stock, $0.01 par value per share
|
| | | | $ | | | | | | $ | | |
| | |
Page
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| | | | F-1 | | |
| | |
Fiscal Year Ended
|
| |||||||||
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
| | |
(in thousands,
except share and per share amounts) |
| |||||||||
Statement of operations data: | | | | | | | | | | | | | |
Net sales
|
| | | $ | 814,113 | | | | | $ | 590,842 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of sales, exclusive of depreciation and amortization
|
| | | | 474,778 | | | | | | 354,821 | | |
Selling, general and administrative expenses
|
| | | | 267,240 | | | | | | 209,986 | | |
Depreciation and amortization
|
| | | | 57,972 | | | | | | 39,657 | | |
Total costs and expenses
|
| | | | 799,990 | | | | | | 604,464 | | |
Income (loss) from operations
|
| | | | 14,123 | | | | | | (13,622) | | |
Other expenses (income): | | | | | | | | | | | | | |
Interest expense
|
| | | | 45,529 | | | | | | 35,244 | | |
Other income
|
| | | | (1,827) | | | | | | (1,048) | | |
Total other expenses
|
| | | | 43,702 | | | | | | 34,196 | | |
Loss before income tax benefit
|
| | | | (29,579) | | | | | | (47,818) | | |
Income tax benefit
|
| | | | (4,351) | | | | | | (13,357) | | |
Net loss
|
| | | | (25,228) | | | | | | (34,461) | | |
Net loss attributable to noncontrolling interest
|
| | | | (344) | | | | | | (97) | | |
Net loss attributable to Company
|
| | | $ | (24,884) | | | | | $ | (34,364) | | |
| | |
Fiscal Year Ended
|
| |||||||||
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
Per share data: | | | | | | | | | | | | | |
Net loss per share, basic and diluted:
|
| | | $ | (63.41) | | | | | $ | (88.72) | | |
Weighted average common shares outstanding, basic and diluted:
|
| | | | 392,431 | | | | | | 387,353 | | |
| | |
Fiscal Year Ended
|
| |||||||||
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Cash flow data: | | | | | | | | | | | | | |
Net cash provided by (used in): | | | | | | | | | | | | | |
Operating activities
|
| | | $ | 64,227 | | | | | $ | (4,099) | | |
Investing activities
|
| | | $ | (9,566) | | | | | $ | (588,602) | | |
Financing activities
|
| | | $ | (10,863) | | | | | $ | 617,904 | | |
Non-GAAP metrics: | | | | | | | | | | | | | |
Adjusted EBITDA(1)
|
| | | $ | 94,458 | | | | | $ | 64,946 | | |
Adjusted Net Income(1)
|
| | | $ | 35,131 | | | | | $ | 25,806 | | |
Contribution Margin(1)
|
| | | | 41.7% | | | | | | 39.9% | | |
Free Cash Flow(1)
|
| | | $ | 53,982 | | | | | $ | (8,595) | | |
| | |
As of December 25, 2020
|
| |||||||||
| | |
Actual
|
| |
As Adjusted(2)
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Balance sheet data: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 77,458 | | | | | $ | | | |
Total assets
|
| | | $ | 1,497,538 | | | | | $ | | | |
Total liabilities
|
| | | $ | 879,799 | | | | | $ | | | |
Total stockholders’ equity
|
| | | $ | 617,739 | | | | | $ | | | |
| | |
Fiscal Year Ended
|
| |||||||||
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Net loss
|
| | | $ | (25,228) | | | | | $ | (34,461) | | |
Interest expense
|
| | | | 45,529 | | | | | | 35,244 | | |
Income tax benefit
|
| | | | (4,351) | | | | | | (13,357) | | |
Depreciation and amortization
|
| | | | 57,972 | | | | | | 39,657 | | |
Other income
|
| | | | (1,827) | | | | | | (1,048) | | |
Equity-based compensation
|
| | | | 4,284 | | | | | | 3,673 | | |
Fair value adjustment to contingent value rights(a)
|
| | | | 800 | | | | | | 314 | | |
Acquisition- and integration-related costs(b)
|
| | | | 5,341 | | | | | | 20,179 | | |
Initial public offering costs(c)
|
| | | | 542 | | | | | | — | | |
Deferred revenue purchase accounting adjustment(d)
|
| | | | 1,012 | | | | | | 831 | | |
Deferred acquisitions payments(e)
|
| | | | 9,649 | | | | | | 13,615 | | |
Other(f) | | | | | 735 | | | | | | 299 | | |
Adjusted EBITDA
|
| | | $ | 94,458 | | | | | $ | 64,946 | | |
| | |
Fiscal Year Ended
|
| |||||||||
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Net loss
|
| | | $ | (25,228) | | | | | $ | (34,461) | | |
Depreciation and amortization
|
| | | | 57,972 | | | | | | 39,657 | | |
Foreign currency gains
|
| | | | (172) | | | | | | (1,101) | | |
(Gain) loss on sale of business
|
| | | | (979) | | | | | | 561 | | |
Equity-based compensation
|
| | | | 4,284 | | | | | | 3,673 | | |
Fair value adjustment to contingent value rights(a)
|
| | | | 800 | | | | | | 314 | | |
Acquisition and integration related costs(b)
|
| | | | 5,341 | | | | | | 20,179 | | |
Initial public offering costs(c)
|
| | | | 542 | | | | | | — | | |
Deferred revenue purchase accounting adjustment(d)
|
| | | | 1,012 | | | | | | 831 | | |
Deferred acquisition payments(e)
|
| | | | 9,649 | | | | | | 13,615 | | |
Other(f) | | | | | 760 | | | | | | 225 | | |
Income tax effect of adjustments(g)
|
| | | | (18,850) | | | | | | (17,687) | | |
Adjusted Net Income
|
| | | $ | 35,131 | | | | | $ | 25,806 | | |
| | |
Fiscal Year Ended
|
| |||||||||
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
| | |
($ in thousands)
|
| |||||||||
Net sales
|
| | | $ | 814,113 | | | | | $ | 590,842 | | |
Cost of sales, exclusive of depreciation and amortization(a)
|
| | | | 474,778 | | | | | | 354,821 | | |
Net sales less cost of sales, exclusive of depreciation and
amortization |
| | | $ | 339,335 | | | | | $ | 236,021 | | |
Contribution Margin
|
| | | | 41.7% | | | | | | 39.9% | | |
| | |
Fiscal Year Ended
|
| |||||||||
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Net cash provided by (used in) operating activities
|
| | | $ | 64,227 | | | | | $ | (4,099) | | |
Purchases of property and equipment
|
| | | | (10,245) | | | | | | (4,496) | | |
Free Cash Flow
|
| | | $ | 53,982 | | | | | $ | (8,595) | | |
| | |
As of December 25, 2020
|
| |||||||||
| | |
Actual
|
| |
As Adjusted
|
| ||||||
| | |
(in thousands, except share and par value data)
|
| |||||||||
Cash and cash equivalents
|
| | | $ | 77,458 | | | | | $ | | | |
Long-term debt, including current portion of long-term debt: | | | | | | | | | | | | | |
Revolving credit facility
|
| | | $ | — | | | | | $ | | | |
Term loans
|
| | | | 672,608 | | | | | | | | |
Unamortized debt issuance costs on term loans
|
| | | | (20,595) | | | | | | | | |
Unamortized debt issuance costs on revolver
|
| | | | (583) | | | | | | | | |
Total debt
|
| | | | 651,430 | | | | | | | | |
Stockholders’ Equity: | | | | | | | | | | | | | |
Common stock, $0.001 par value par value as adjusted; 500,000 shares authorized, actual, 394,778 shares issued and outstanding, actual, shares authorized, as adjusted, shares issued and outstanding, as adjusted
|
| | | | — | | | | | | | | |
Preferred stock, $0.01 par value; no shares authorized, actual, no shares issued and outstanding, actual, shares authorized, as adjusted, no shares issued and outstanding, as adjusted
|
| | | | — | | | | | | | | |
Additional paid-in capital(1)
|
| | | | 659,685 | | | | | | | | |
Accumulated deficit
|
| | | | (43,018) | | | | | | | | |
Accumulated other comprehensive income
|
| | | | 756 | | | | | | | | |
Company’s stockholders’ equity
|
| | | | 617,423 | | | | | | | | |
Noncontrolling interest
|
| | | | 316 | | | | | | | | |
Total stockholders’ equity
|
| | | | 617,739 | | | | | | | | |
Total capitalization
|
| | | $ | 1,269,169 | | | | | $ | | | |
|
Assumed initial public offering price per share
|
| |
|
| | | $ | | | ||||
|
Net tangible book deficit per share as of December 25, 2020 before giving effect to this
offering and the Equity Conversion |
| | | $ | | | | | | | | | |
|
Increase in net tangible book value per share attributable to new investors purchasing shares in this offering
|
| | | | | | | | | | | | |
|
Net tangible book deficit per share as adjusted to give effect to this offering
|
| | | | | | | | | | | | |
|
Dilution per share to new investors in this offering
|
| |
|
| | | $ | | |
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average
Price Per Share |
| | |||||||||||||||||||||||
| | |
Number
(in thousands) |
| |
Percent
|
| |
Amount
(in thousands) |
| |
Percent
|
| | ||||||||||||||||||||
Existing Stockholders
|
| | | | | | | | | | % | | | | | $ | | | | | | % | | | | | $ | | | | ||||
New Investors
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||
Total
|
| | | | | | | | | | 100.0% | | | | | $ | | | | | | 100.0% | | | | | | | | | | | |
| | |
Fiscal Year Ended
|
| | | |||||||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| | | ||||||||||
| | |
(in thousands)
|
| | | | | | | |||||||||
Calculation of Adjusted EBITDA | | | | | | | | | | | | | | | | ||||
Net loss
|
| | | $ | (25,228) | | | | | $ | (34,461) | | | | | ||||
Interest expense
|
| | | | 45,529 | | | | | | 35,244 | | | | | ||||
Income tax benefit
|
| | | | (4,351) | | | | | | (13,357) | | | | | ||||
Depreciation and amortization
|
| | | | 57,972 | | | | | | 39,657 | | | | | ||||
Other Income
|
| | | | (1,827) | | | | | | (1,048) | | | | | ||||
Equity-based compensation
|
| | | | 4,284 | | | | | | 3,673 | | | | | ||||
Fair value adjustment to contingent value rights(a)
|
| | | | 800 | | | | | | 314 | | | | | ||||
Acquisition- and integration-related costs(b)
|
| | | | 5,341 | | | | | | 20,179 | | | | | ||||
Initial public offering costs(c)
|
| | | | 542 | | | | | | — | | | | | ||||
Deferred revenue purchase accounting adjustment(d)
|
| | | | 1,012 | | | | | | 831 | | | | | ||||
Deferred acquisition payments(e)
|
| | | | 9,649 | | | | | | 13,615 | | | | | ||||
Other(f) | | | | | 735 | | | | | | 299 | | | | | ||||
Adjusted EBITDA
|
| | | $ | 94,458 | | | | | $ | 64,946 | | | | |
| | |
Fiscal Year Ended
|
| |||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Net loss
|
| | | $ | (25,228) | | | | | $ | (34,461) | | |
Depreciation and amortization
|
| | | | 57,972 | | | | | | 39,657 | | |
Foreign currency gains
|
| | | | (172) | | | | | | (1,101) | | |
(Gain) loss on sale of business
|
| | | | (979) | | | | | | 561 | | |
Equity-based compensation
|
| | | | 4,284 | | | | | | 3,673 | | |
Fair value adjustment to contingent value rights(a)
|
| | | | 800 | | | | | | 314 | | |
Acquisition and integration related costs(b)
|
| | | | 5,341 | | | | | | 20,179 | | |
Initial public offering costs(c)
|
| | | | 542 | | | | | | — | | |
Deferred revenue purchase accounting adjustment(d)
|
| | | | 1,012 | | | | | | 831 | | |
Deferred acquisition payments(e)
|
| | | | 9,649 | | | | | | 13,615 | | |
Other(f) | | | | | 760 | | | | | | 225 | | |
Income tax effect of adjustments(g)
|
| | | | (18,850) | | | | | | (17,687) | | |
Adjusted Net Income
|
| | | $ | 35,131 | | | | | $ | 25,806 | | |
| | |
Fiscal Year Ended
|
| |||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| ||||||
| | |
($ in thousands)
|
| |||||||||
Net sales
|
| | | $ | 814,113 | | | | | $ | 590,842 | | |
Cost of sales, exclusive of depreciation and amortization(a)
|
| | | | 474,778 | | | | | | 354,821 | | |
Net sales less cost of sales, exclusive of depreciation and amortization
|
| | | $ | 339,335 | | | | | $ | 236,021 | | |
Contribution Margin
|
| | | | 41.7% | | | | | | 39.9% | | |
| | |
Fiscal Year Ended
|
| |||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Net cash provided by (used in) operating activities
|
| | | $ | 64,227 | | | | | $ | (4,099) | | |
Purchases of property and equipment
|
| | | | (10,245) | | | | | | (4,496) | | |
Free Cash Flow
|
| | | $ | 53,982 | | | | | $ | (8,595) | | |
| | |
Fiscal Year Ended
|
| |||||||||||||||||||||
| | |
December 25, 2020
|
| |
% of
Net sales |
| |
December 27, 2019
|
| |
% of
Net sales |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net Sales
|
| | | $ | 814,113 | | | | | | 100.0% | | | | | $ | 590,842 | | | | | | 100.0% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales, exclusive of depreciation and amortization
|
| | | | 474,778 | | | | | | 58.3% | | | | | | 354,821 | | | | | | 60.1% | | |
Selling, general and administrative expenses
|
| | | | 267,240 | | | | | | 32.8% | | | | | | 209,986 | | | | | | 35.5% | | |
Depreciation and amortization
|
| | | | 57,972 | | | | | | 7.1% | | | | | | 39,657 | | | | | | 6.7% | | |
Total costs and expenses
|
| | | | 799,990 | | | | | | 98.3% | | | | | | 604,464 | | | | | | 102.3% | | |
Income (loss) from operations
|
| | | | 14,123 | | | | | | 1.7% | | | | | | (13,622) | | | | | | (2.3)% | | |
Other expenses (income): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 45,529 | | | | | | 5.6% | | | | | | 35,244 | | | | | | 6.0% | | |
Other income
|
| | | | (1,827) | | | | | | (0.2)% | | | | | | (1,048) | | | | | | (0.2)% | | |
Total other expenses
|
| | | | 43,702 | | | | | | 5.4% | | | | | | 34,196 | | | | | | 5.8% | | |
Loss before income tax benefit
|
| | | | (29,579) | | | | | | (3.6)% | | | | | | (47,818) | | | | | | (8.1)% | | |
Income tax benefit
|
| | | | (4,351) | | | | | | (0.5)% | | | | | | (13,357) | | | | | | (2.3)% | | |
Net loss
|
| | | | (25,228) | | | | | | (3.1)% | | | | | | (34,461) | | | | | | (5.8)% | | |
Net loss attributable to noncontrolling interest
|
| | | | (344) | | | | | | 0.0% | | | | | | (97) | | | | | | 0.0% | | |
Net loss attributable to Company
|
| | | $ | (24,884) | | | | | | (3.1)% | | | | | $ | (34,364) | | | | | | (5.8)% | | |
| | |
Fiscal Year Ended
|
| | | | | | | | | | | | | | | |||||||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| |
$ Change
|
| |
% Change
|
| | | ||||||||||||||||
| | |
(in thousands)
|
| | | | | | | |||||||||||||||||||||
Net Sales
|
| | | $ | 814,113 | | | | | $ | 590,842 | | | | | $ | 223,271 | | | | | | 37.8% | | | | |
| | |
Fiscal Year Ended
|
| | | | | | | | | | | | | | | |||||||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| |
$ Change
|
| |
% Change
|
| | | ||||||||||||||||
| | |
($ in thousands)
|
| | | | | | | |||||||||||||||||||||
Cost of Sales, exclusive of depreciation and amortization
|
| | | $ | 474,778 | | | | | $ | 354,821 | | | | | $ | 119,957 | | | | | | 33.8% | | | | | ||||
As a percentage of net sales
|
| | | | 58.3% | | | | | | 60.1% | | | | | | | | | | | | | | | | |
| | |
Fiscal Year Ended
|
| | | | | | | | | | | | | | | |||||||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| |
$ Change
|
| |
% Change
|
| | | ||||||||||||||||
| | |
($ in thousands)
|
| | | | | | | |||||||||||||||||||||
Selling, general and administrative expenses
|
| | | $ | 267,240 | | | | | $ | 209,986 | | | | | $ | 57,254 | | | | | | 27.3% | | | | | ||||
As a percentage of net sales
|
| | | | 32.8% | | | | | | 35.5% | | | | | | | | | | | | | | | | |
| | |
Fiscal Year Ended
|
| | | | | | | | | | | | | | | |||||||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| |
$ Change
|
| |
% Change
|
| | | ||||||||||||||||
| | |
($ in thousands)
|
| | | | | | | |||||||||||||||||||||
Depreciation and amortization
|
| | | $ | 57,972 | | | | | $ | 39,657 | | | | | $ | 18,315 | | | | | | 46.2% | | | | | ||||
As a percentage of net sales
|
| | | | 7.1% | | | | | | 6.7% | | | | | | | | | | | | | | | | |
| | |
Fiscal Year Ended
|
| | | | | | | | | | | | | | | |||||||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| |
$ Change
|
| |
% Change
|
| | | ||||||||||||||||
| | |
($ in thousands)
|
| | | | | | | |||||||||||||||||||||
Interest Expense
|
| | | $ | 45,529 | | | | | $ | 35,244 | | | | | $ | 10,285 | | | | | | 29.2% | | | | | ||||
As a percentage of net sales
|
| | | | 5.6% | | | | | | 6.0% | | | | | | | | | | | | | | | | |
| | |
Fiscal Year Ended
|
| | | | | | | | | | | | | | | |||||||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| |
$ Change
|
| |
% Change
|
| | | ||||||||||||||||
| | |
($ in thousands)
|
| | | | | | | |||||||||||||||||||||
Other Income
|
| | | $ | (1,827) | | | | | $ | (1,048) | | | | | $ | (779) | | | | | | 74.3% | | | | | ||||
As a percentage of net sales
|
| | | | (0.2)% | | | | | | (0.2)% | | | | | | | | | | | | | | | | |
| | |
Fiscal Year Ended
|
| | | | | | | | | | | | | | | |||||||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| |
$ Change
|
| |
% Change
|
| | | ||||||||||||||||
| | |
($ in thousands)
|
| | | | | | | |||||||||||||||||||||
Income tax benefit
|
| | | $ | (4,351) | | | | | $ | (13,357) | | | | | $ | 9,006 | | | | | | 67.4% | | | | | ||||
As a percentage of net sales
|
| | | | (0.5)% | | | | | | (2.3)% | | | | | | | | | | | | | | | | |
| | |
As of
|
| |||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Cash and cash equivalents
|
| | | $ | 77,458 | | | | | $ | 33,177 | | |
Accounts receivable, net
|
| | | | 49,363 | | | | | | 46,226 | | |
Working capital, excluding deferred revenue
|
| | | | 141,476 | | | | | | 134,319 | | |
| | |
Fiscal Year Ended
|
| |||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Net cash provided by (used in) operating activities
|
| | | $ | 64,227 | | | | | $ | (4,099) | | |
Net cash used in investing activities
|
| | | | (9,566) | | | | | | (588,602) | | |
Net cash (used in) provided by financing activities
|
| | | | (10,863) | | | | | | 617,904 | | |
| | |
Payments due by period
|
| |||||||||||||||||||||||||||
| | |
Total
|
| |
<1 years
|
| |
1 – 3 years
|
| |
3 – 5 years
|
| |
More than
5 years |
| |||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
Long-term debt obligations(1)
|
| | | $ | 672,608 | | | | | $ | 21,149 | | | | | $ | 13,648 | | | | | $ | 637,811 | | | | | $ | — | | |
Interest payments(2)
|
| | | | 111,685 | | | | | | 31,555 | | | | | | 61,547 | | | | | | 18,583 | | | | | | — | | |
Operating leases(3)
|
| | | | 41,998 | | | | | | 11,400 | | | | | | 15,042 | | | | | | 10,936 | | | | | | 4,620 | | |
Total | | | | $ | 826,291 | | | | | $ | 64,104 | | | | | $ | 90,237 | | | | | $ | 667,330 | | | | | $ | 4,620 | | |
Office Locations
|
| |
Approximate
Square Footage |
| |
Lease
Expiration Dates |
| ||||||
Charlotte, North Carolina
|
| | | | 69,953 | | | | | | 1/31/2025 | | |
Draper, Utah
|
| | | | 110,000 | | | | | | 1/31/2022 | | |
Name
|
| |
Age
|
| |
Position
|
|
John Heyman | | |
59
|
| | Chief Executive Officer, Director | |
Michael Carlet | | |
54
|
| | Chief Financial Officer | |
Jefferson Dungan | | |
51
|
| | Chief Operations Officer | |
Jeffrey Hindman | | |
42
|
| | Chief Revenue Officer | |
G Paul Hess | | |
47
|
| | Chief Product Officer | |
JD Ellis | | |
41
|
| | Chief Legal Officer | |
Erik Ragatz | | |
48
|
| | Chairman of the Board of Directors | |
Jacob Best | | |
36
|
| | Director | |
Annmarie Neal | | |
57
|
| | Director | |
Martin Plaehn | | |
63
|
| | Director | |
Kenneth R. Wagers III | | |
50
|
| | Director | |
Name and Principal Position
|
| |
Year
|
| |
Salary ($)(1)
|
| |
Bonus ($)(2)
|
| |
Non-Equity
Incentive Plan Compensation ($)(3) |
| |
All Other
Compensation ($)(4) |
| |
Total ($)
|
| ||||||||||||||||||
John Heyman
Chief Executive Officer |
| | | | 2020 | | | | | $ | 648,352 | | | | | $ | 491,833 | | | | | $ | 487,500 | | | | | $ | 37,089 | | | | | $ | 1,664,774 | | |
Michael Carlet
Chief Financial Officer |
| | | | 2020 | | | | | $ | 334,431 | | | | | $ | 236,146 | | | | | $ | 188,438 | | | | | $ | 46,710 | | | | | $ | 805,725 | | |
Jeffrey Hindman
Chief Revenue Officer |
| | | | 2020 | | | | | $ | 334,341 | | | | | $ | 236,146 | | | | | $ | 188,438 | | | | | $ | 16,275 | | | | | $ | 775,200 | | |
| | | | | | | | |
Stock Awards
|
| |||||||||||||||||||||
Name
|
| |
Grant Date
|
| |
Number of Shares or
Units of Stock That Have Not Vested (#) |
| |
Market Value
of Shares or Units of Stock That Have Not Vested ($)(4) |
| |
Equity Incentive
Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
| |
Equity Incentive
Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(5) |
| |||||||||||||||
John Heyman,
Chief Executive Officer |
| | | | 10/23/2017 | | | | | | 5,192,800(1) | | | | | $ | 3,468,790 | | | | | | 9,110,176(2) | | | | | | — | | |
| | | 8/28/2019 | | | | | | 1,008,000(1) | | | | | $ | 537,264 | | | | | | | | | | | | | | | ||
| | | 9/30/2019 | | | | | | | | | | | | | | | | | | 890,000(3) | | | | | | — | | |
| | | | | | | | |
Stock Awards
|
| |||||||||||||||||||||
Name
|
| |
Grant Date
|
| |
Number of Shares or
Units of Stock That Have Not Vested (#) |
| |
Market Value
of Shares or Units of Stock That Have Not Vested ($)(4) |
| |
Equity Incentive
Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
| |
Equity Incentive
Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(5) |
| |||||||||||||||
Michael Carlet,
Chief Financial Officer |
| | | | 10/23/2017 | | | | | | 1,594,281(1) | | | | | $ | 1,064,980 | | | | | | 2,733,053(2) | | | | | | — | | |
| | | 8/28/2019 | | | | | | 400,000(1) | | | | | $ | 213,200 | | | | | | — | | | | | | | | | ||
| | | 9/30/2019 | | | | | | — | | | | | | — | | | | | | 500,000(3) | | | | | | — | | | ||
Jeffrey Hindman,
Chief Revenue Officer |
| | | | 10/23/2017 | | | | | | 1,594,281(1) | | | | | $ | 1,064,980 | | | | | | 2,733,053(2) | | | | | | — | | |
| | | 8/28/2019 | | | | | | 400,000(1) | | | | | $ | 213,200 | | | | | | — | | | | | | | | | ||
| | | 9/30/2019 | | | | | | — | | | | | | — | | | | | | 500,000(3) | | | | | | — | | |
Name
|
| |
Fees Earned
or Paid in Cash ($) |
| |
Stock
Awards ($) |
| |
Total
($) |
| |||||||||
Martin Plaehn
|
| | | | 75,000(1) | | | | | | 100,000(3) | | | | | | 175,000 | | |
Kenneth R.
Wagers III |
| | | | 50,000(2) | | | | | | 100,000(3) | | | | | | 150,000 | | |
| | |
Shares Beneficially
Owned Prior to the Offering |
| |
Shares Beneficially
Owned After the Offering |
| ||||||||||||||||||
| | | | | | | | |
If Underwriters’ Option
To Purchase Additional Shares Is Not Exercised |
| |
If Underwriters’ Option
To Purchase Additional Shares Is Exercised In Full |
| ||||||||||||
Name Of Beneficial Owner
|
| |
Shares
|
| |
%
|
| |
Shares Offered
Hereby |
| |
Shares
|
| |
%
|
| |
Shares Offered
Hereby |
| |
Shares
|
| |
%
|
|
5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | |
H&F Investors(1)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Directors and Named Executive Officers: | | | | | | | | | | | | | | | | | | | | | | | | | |
John Heyman(2)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Michael Carlet(3)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Jeffrey Hindman(4)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Erik Ragatz(5)(6)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Jacob Best(6)(7)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Annmarie Neal(6)(8)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Martin Plaehn(9)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Kenneth R. Wagers III(10)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
All directors and executive officers as a group (7 persons)(11)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Other Selling Stockholders:(12) | | | | | | | | | | | | | | | | | | | | | | | | | |
Name
|
| |
Number of Shares
|
| |||
Morgan Stanley & Co. LLC
|
| | | | | | |
J.P. Morgan Securities LLC
|
| | | | | | |
Jefferies LLC
|
| | | | | | |
UBS Securities LLC
|
| | | | | | |
BofA Securities, Inc.
|
| | |||||
BMO Capital Markets Corp.
|
| | | | | | |
Raymond James & Associates, Inc.
|
| | | | | | |
Truist Securities, Inc.
|
| | | | | | |
William Blair & Company, L.L.C.
|
| | | | | | |
Total:
|
| | | | | |
| | | | | | | | |
Total
|
| |||||||||
| | |
Per
Share |
| |
No
Exercise |
| |
Full
Exercise |
| |||||||||
Public offering price
|
| | | $ | | | | | $ | | | | | $ | | | | ||
Underwriting discounts and commissions to be paid by us
|
| | | $ | | | | | $ | | | | | $ | | | | ||
Proceeds, before expenses, to us
|
| | | $ | | | | | $ | | | | | $ | | | |||
Proceeds, before expenses, to the selling stockholders
|
| | | $ | | | | | $ | | | | | $ | | | |
| | |
Page
|
| |||
Audited Consolidated Financial Statements | | | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
| | | | F-35 | | |
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 77,458 | | | | | $ | 33,177 | | |
Accounts receivable, net
|
| | | | 49,363 | | | | | | 46,226 | | |
Inventories, net
|
| | | | 157,099 | | | | | | 165,345 | | |
Prepaid expenses and other current assets
|
| | | | 9,650 | | | | | | 9,650 | | |
Total current assets
|
| | | | 293,570 | | | | | | 254,398 | | |
Long-term assets: | | | | | | | | | | | | | |
Property and equipment, net
|
| | | | 20,208 | | | | | | 20,109 | | |
Goodwill
|
| | | | 559,735 | | | | | | 559,735 | | |
Other intangible assets, net
|
| | | | 617,616 | | | | | | 665,124 | | |
Other assets
|
| | | | 6,409 | | | | | | 7,219 | | |
Total assets
|
| | | $ | 1,497,538 | | | | | $ | 1,506,585 | | |
Liabilities and stockholders’ equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Current maturities of long-term debt
|
| | | $ | 21,149 | | | | | $ | 6,824 | | |
Accounts payable
|
| | | | 68,941 | | | | | | 58,323 | | |
Accrued liabilities
|
| | | | 80,658 | | | | | | 69,574 | | |
Total current liabilities
|
| | | | 170,748 | | | | | | 134,721 | | |
Long-term liabilities: | | | | | | | | | | | | | |
Revolving credit facility
|
| | | | — | | | | | | 5,000 | | |
Long-term debt, net of current portion
|
| | | | 630,864 | | | | | | 645,330 | | |
Deferred income tax liabilities, net
|
| | | | 55,518 | | | | | | 60,542 | | |
Other liabilities
|
| | | | 22,669 | | | | | | 24,065 | | |
Total liabilities
|
| | | | 879,799 | | | | | | 869,658 | | |
Commitments and contingencies (Note 14) | | | | | | | | | | | | | |
Stockholders’ equity | | | | | | | | | | | | | |
Common Stock, $0.001 par value, 500,000 shares authorized; and 394,778 and 387,601 shares issued and outstanding at December 25, 2020 and December 27, 2019
|
| | | | — | | | | | | — | | |
Additional paid in capital
|
| | | | 659,685 | | | | | | 655,001 | | |
Accumulated deficit
|
| | | | (43,018) | | | | | | (18,134) | | |
Accumulated other comprehensive income (loss)
|
| | | | 756 | | | | | | (39) | | |
Company’s stockholders’ equity
|
| | | | 617,423 | | | | | | 636,828 | | |
Noncontrolling interest
|
| | | | 316 | | | | | | 99 | | |
Total stockholders’ equity
|
| | | | 617,739 | | | | | | 636,927 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 1,497,538 | | | | | $ | 1,506,585 | | |
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
Net sales
|
| | | $ | 814,113 | | | | | $ | 590,842 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of sales, exclusive of depreciation and amortization
|
| | | | 474,778 | | | | | | 354,821 | | |
Selling, general and administrative expenses
|
| | | | 267,240 | | | | | | 209,986 | | |
Depreciation and amortization
|
| | | | 57,972 | | | | | | 39,657 | | |
Total costs and expenses
|
| | | | 799,990 | | | | | | 604,464 | | |
Income (loss) from operations
|
| | | | 14,123 | | | | | | (13,622) | | |
Other expenses (income): | | | | | | | | | | | | | |
Interest expense
|
| | | | 45,529 | | | | | | 35,244 | | |
Other income
|
| | | | (1,827) | | | | | | (1,048) | | |
Total other expenses
|
| | | | 43,702 | | | | | | 34,196 | | |
Loss before income tax benefit
|
| | | | (29,579) | | | | | | (47,818) | | |
Income tax benefit
|
| | | | (4,351) | | | | | | (13,357) | | |
Net loss
|
| | | | (25,228) | | | | | | (34,461) | | |
Net loss attributable to noncontrolling interest
|
| | | | (344) | | | | | | (97) | | |
Net loss attributable to Company
|
| | | $ | (24,884) | | | | | $ | (34,364) | | |
Net loss per share, basic and diluted
|
| | | $ | (63.41) | | | | | $ | (88.72) | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 392,431 | | | | | | 387,353 | | |
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
Net loss
|
| | | $ | (25,228) | | | | | $ | (34,461) | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | 795 | | | | | | (39) | | |
Comprehensive loss
|
| | | | (24,433) | | | | | | (34,500) | | |
Comprehensive loss attributable to noncontrolling interest
|
| | | | (344) | | | | | | (97) | | |
Comprehensive loss attributable to Company
|
| | | $ | (24,089) | | | | | $ | (34,403) | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Noncontrolling
Interest |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||||||||
| | |
Number of
Shares |
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance – December 28, 2018
|
| | | | 387,182 | | | | | $ | — | | | | | $ | 395,836 | | | | | $ | 16,230 | | | | | $ | — | | | | | $ | 64 | | | | | $ | 412,130 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (34,364) | | | | | | — | | | | | | (97) | | | | | | (34,461) | | |
Foreign currency translation adjustments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (39) | | | | | | — | | | | | | (39) | | |
Capital contributions
|
| | | | 419 | | | | | | — | | | | | | 255,510 | | | | | | — | | | | | | — | | | | | | 132 | | | | | | 255,642 | | |
Equity-based compensation expense
|
| | | | — | | | | | | — | | | | | | 3,673 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,673 | | |
Repurchase of equity units
|
| | | | — | | | | | | — | | | | | | (18) | | | | | | — | | | | | | — | | | | | | — | | | | | | (18) | | |
Balance – December 27, 2019
|
| | | | 387,601 | | | | | $ | — | | | | | $ | 655,001 | | | | | $ | (18,134) | | | | | $ | (39) | | | | | $ | 99 | | | | | $ | 636,927 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (24,884) | | | | | | — | | | | | | (344) | | | | | | (25,228) | | |
Foreign currency translation adjustments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 795 | | | | | | — | | | | | | 795 | | |
Capital contributions
|
| | | | — | | | | | | — | | | | | | 400 | | | | | | — | | | | | | — | | | | | | 561 | | | | | | 961 | | |
Equity-based compensation expense
|
| | | | — | | | | | | — | | | | | | 4,284 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,284 | | |
Additional share issuance
|
| | | | 7,177 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance – December 25, 2020
|
| | | | 394,778 | | | | | $ | — | | | | | $ | 659,685 | | | | | $ | (43,018) | | | | | $ | 756 | | | | | $ | 316 | | | | | $ | 617,739 | | |
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (25,228) | | | | | $ | (34,461) | | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 57,972 | | | | | | 39,657 | | |
Amortization of debt issuance costs
|
| | | | 6,101 | | | | | | 3,895 | | |
Unrealized loss on interest rate cap
|
| | | | 5 | | | | | | 257 | | |
Deferred income taxes
|
| | | | (5,423) | | | | | | (13,772) | | |
Loss on sale and disposal of property and equipment
|
| | | | 29 | | | | | | — | | |
(Gain) loss on sale of business
|
| | | | (979) | | | | | | 561 | | |
Equity-based compensation
|
| | | | 4,284 | | | | | | 3,673 | | |
Bad debt expense
|
| | | | 1,094 | | | | | | 838 | | |
Fair value adjustment to contingent value rights
|
| | | | 800 | | | | | | 314 | | |
Change in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (4,231) | | | | | | (3,191) | | |
Inventories
|
| | | | 7,862 | | | | | | (9,332) | | |
Prepaid expenses and other assets
|
| | | | 1,932 | | | | | | 1,934 | | |
Accounts payable and accrued liabilities
|
| | | | 20,009 | | | | | | 5,528 | | |
Net cash provided by (used in) operating activities
|
| | | | 64,227 | | | | | | (4,099) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (10,245) | | | | | | (4,496) | | |
Proceeds from sale of business
|
| | | | 600 | | | | | | — | | |
Receipt of payment on notes receivable
|
| | | | 79 | | | | | | 86 | | |
Acquisition of businesses, net of cash acquired
|
| | | | — | | | | | | (584,192) | | |
Net cash used in investing activities
|
| | | | (9,566) | | | | | | (588,602) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from long-term debt
|
| | | | — | | | | | | 390,000 | | |
Payments on long-term debt
|
| | | | (6,824) | | | | | | (2,923) | | |
Payments of debt issuance costs
|
| | | | — | | | | | | (20,198) | | |
Proceeds from revolving credit facility
|
| | | | 52,000 | | | | | | 34,000 | | |
Payments on revolving credit facility
|
| | | | (57,000) | | | | | | (38,000) | | |
Repurchase of equity units
|
| | | | — | | | | | | (18) | | |
Proceeds from capital contributions
|
| | | | 961 | | | | | | 255,043 | | |
Net cash (used in) provided by financing activities
|
| | | | (10,863) | | | | | | 617,904 | | |
Effect of exchange rate changes on cash and cash equivalents
|
| | | | 483 | | | | | | (125) | | |
Net increase in cash and cash equivalents
|
| | | | 44,281 | | | | | | 25,078 | | |
Cash and cash equivalents – Beginning of period
|
| | | | 33,177 | | | | | | 8,099 | | |
Cash and cash equivalents – End of period
|
| | | $ | 77,458 | | | | | $ | 33,177 | | |
Supplementary cash flow information: | | | | | | | | | | | | | |
Cash payments for interest
|
| | | $ | 42,845 | | | | | $ | 21,939 | | |
Cash paid (refunds) for taxes, net
|
| | | $ | 217 | | | | | $ | (1,591) | | |
Noncash investing and financing activities: | | | | | | | | | | | | | |
Capital expenditure in accounts payable
|
| | | $ | 140 | | | | | $ | 349 | | |
Noncash equity contribution
|
| | | $ | 428 | | | | | $ | 599 | | |
|
Allowance for doubtful accounts – December 28, 2018
|
| | | $ | 615 | | |
|
Bad debt expense
|
| | | | 838 | | |
|
Write-offs
|
| | | | (697) | | |
|
Allowance for doubtful accounts acquired
|
| | | | 1,380 | | |
|
Allowance for doubtful accounts – December 27, 2019
|
| | | | 2,136 | | |
|
Bad debt expense
|
| | | | 1,094 | | |
|
Write-offs
|
| | | | (877) | | |
|
Allowance for doubtful accounts – December 25, 2020
|
| | | $ | 2,353 | | |
|
Equipment
|
| |
2 – 10 years
|
|
|
Computers and software
|
| |
3 – 5 years
|
|
|
Furniture and fixtures
|
| |
2 – 7 years
|
|
|
Leasehold Improvements
|
| |
Shorter of 15 years or life of lease
|
|
|
Accrued warranty – December 28, 2018
|
| | | $ | 11,335 | | |
|
Warranty claims
|
| | | | (9,686) | | |
|
Warranty provisions
|
| | | | 15,795 | | |
|
Acquired warranty liability
|
| | | | 2,545 | | |
|
Accrued warranty – December 27, 2019
|
| | | | 19,989 | | |
|
Warranty claims
|
| | | | (12,252) | | |
|
Warranty provisions
|
| | | | 8,786 | | |
|
Accrued warranty – December 25, 2020
|
| | | $ | 16,523 | | |
| | |
MRI
|
| |
CPD
|
| |
C4
|
| |
Total
|
| ||||||||||||
Accounts receivable
|
| | | $ | 902 | | | | | $ | 437 | | | | | $ | 21,725 | | | | | $ | 23,064 | | |
Inventories
|
| | | | 5,908 | | | | | | 6,084 | | | | | | 49,654 | | | | | | 61,646 | | |
Prepaid expenses and other current assets
|
| | | | 84 | | | | | | 64 | | | | | | 8,716 | | | | | | 8,864 | | |
Property and equipment
|
| | | | 219 | | | | | | 174 | | | | | | 8,914 | | | | | | 9,307 | | |
Other intangible assets
|
| | | | 3,397 | | | | | | 8,078 | | | | | | 297,152 | | | | | | 308,627 | | |
Deferred tax assets
|
| | | | 166 | | | | | | 150 | | | | | | 675 | | | | | | 991 | | |
Other assets
|
| | | | — | | | | | | — | | | | | | 1,038 | | | | | | 1,038 | | |
Total identifiable assets acquired
|
| | | | 10,676 | | | | | | 14,987 | | | | | | 387,874 | | | | | | 413,537 | | |
Accounts payable
|
| | | | 2,694 | | | | | | 4,153 | | | | | | 20,551 | | | | | | 27,398 | | |
Accrued liabilities
|
| | | | 950 | | | | | | 681 | | | | | | 39,256 | | | | | | 40,887 | | |
Other liabilities
|
| | | | — | | | | | | — | | | | | | 6,985 | | | | | | 6,985 | | |
Deferred tax liabilities
|
| | | | — | | | | | | — | | | | | | 41,003 | | | | | | 41,003 | | |
Total liabilities assumed
|
| | | | 3,644 | | | | | | 4,834 | | | | | | 107,795 | | | | | | 116,273 | | |
Total fair value of net assets, excluding goodwill
|
| | | | 7,032 | | | | | | 10,153 | | | | | | 280,079 | | | | | | 297,264 | | |
Goodwill
|
| | | | 2,228 | | | | | | 2,354 | | | | | | 282,945 | | | | | | 287,527 | | |
Total purchase consideration, net of cash
|
| | | $ | 9,260 | | | | | $ | 12,507 | | | | | $ | 563,024 | | | | | $ | 584,791 | | |
| | |
Useful Lives
(Years) |
| |
MRI
|
| |
CPD
|
| |
C4
|
| |
Total
|
| ||||||||||||
Customer Relationships
|
| |
13 – 25
|
| | | $ | 2,575 | | | | | $ | 7,144 | | | | | $ | 155,000 | | | | | $ | 164,719 | | |
Trade name
|
| |
2 – 10
|
| | | | 822 | | | | | | 934 | | | | | | 47,000 | | | | | | 48,756 | | |
Technology – Other Home Automation
|
| |
5
|
| | | | — | | | | | | — | | | | | | 65,152 | | | | | | 65,152 | | |
Technology – Lighting
|
| |
10
|
| | | | — | | | | | | — | | | | | | 24,000 | | | | | | 24,000 | | |
Technology – Speakers
|
| |
15
|
| | | | — | | | | | | — | | | | | | 6,000 | | | | | | 6,000 | | |
Total Intangible Assets
|
| | | | | | $ | 3,397 | | | | | $ | 8,078 | | | | | $ | 297,152 | | | | | $ | 308,627 | | |
Acquired entity
|
| |
Time Period
|
| |
Net Sales
|
| |
Net Income (Loss)
|
| ||||||
MRI
|
| |
March 14, 2019 to December 27, 2019
|
| | | $ | 26,854 | | | | | $ | 825 | | |
CPD
|
| |
July 17, 2019 to December 27, 2019
|
| | | $ | 15,693 | | | | | $ | (300) | | |
Control4
|
| |
August 1, 2019 to December 27, 2019
|
| | | $ | 108,377 | | | | | $ | (8,084) | | |
| | |
2019
|
| |||
Net sales
|
| | | $ | 763,783 | | |
Net loss
|
| | | | (69,377) | | |
|
Deferred revenue – December 28, 2018
|
| | | $ | 9,292 | | |
|
Amounts billed, but not recognized
|
| | | | 16,596 | | |
|
Recognition of revenue
|
| | | | (10,162) | | |
|
Deferred revenue acquired
|
| | | | 8,094 | | |
|
Deferred revenue – December 27, 2019
|
| | | | 23,820 | | |
|
Amounts billed, but not recognized
|
| | | | 28,366 | | |
|
Recognition of revenue
|
| | | | (21,720) | | |
|
Deferred revenue – December 25, 2020
|
| | | $ | 30,466 | | |
| | |
2020
|
| |
2019
|
| ||||||
United States
|
| | | $ | 719,429 | | | | | $ | 528,634 | | |
International
|
| | | | 94,684 | | | | | | 62,208 | | |
Total
|
| | | $ | 814,113 | | | | | $ | 590,842 | | |
| | |
2020
|
| |
2019
|
| ||||||
Products transferred at a point in time
|
| | | $ | 792,393 | | | | | $ | 580,623 | | |
Services transferred over time
|
| | | | 21,720 | | | | | | 10,219 | | |
Total
|
| | | $ | 814,113 | | | | | $ | 590,842 | | |
| | |
2020
|
| |
2019
|
| ||||||
United States
|
| | | $ | 15,550 | | | | | $ | 16,827 | | |
International
|
| | | | 4,658 | | | | | | 3,282 | | |
Total
|
| | | $ | 20,208 | | | | | $ | 20,109 | | |
| | |
2020
|
| |
2019
|
| ||||||
Raw Materials
|
| | | $ | 11,340 | | | | | $ | 8,813 | | |
Work In Process
|
| | | | 591 | | | | | | 2,178 | | |
Finished Goods
|
| | | | 155,618 | | | | | | 160,943 | | |
Reserve For Obsolete and Slow Moving Inventory
|
| | | | (10,450) | | | | | | (6,589) | | |
Total Inventory
|
| | | $ | 157,099 | | | | | $ | 165,345 | | |
|
Inventory Reserve – December 28, 2018
|
| | | $ | 878 | | |
|
Valuation adjustment
|
| | | | 3,740 | | |
|
Write-offs
|
| | | | (1,457) | | |
|
Inventory reserves acquired
|
| | | | 3,428 | | |
|
Inventory Reserve – December 27, 2019
|
| | | | 6,589 | | |
|
Valuation adjustment
|
| | | | 4,579 | | |
|
Write-offs
|
| | | | (718) | | |
|
Inventory Reserve – December 25, 2020
|
| | | $ | 10,450 | | |
| | |
2020
|
| |
2019
|
| ||||||
Equipment
|
| | | $ | 11,422 | | | | | $ | 7,001 | | |
Computers and software
|
| | | | 20,490 | | | | | | 18,416 | | |
Furniture and fixtures
|
| | | | 3,240 | | | | | | 4,784 | | |
Leasehold improvements
|
| | | | 8,673 | | | | | | 5,519 | | |
Construction in progress
|
| | | | 2,035 | | | | | | 1,205 | | |
Total property and equipment
|
| | | | 45,860 | | | | | | 36,925 | | |
Less: Accumulated depreciation
|
| | | | (25,652) | | | | | | (16,816) | | |
Property and equipment, net
|
| | | $ | 20,208 | | | | | $ | 20,109 | | |
2020
|
| |
Estimated
Useful Life |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net Carrying
Amount |
| |||||||||
Customer relationships
|
| |
5 – 25 years
|
| | | $ | 494,333 | | | | | $ | (70,060) | | | | | $ | 424,273 | | |
Technology
|
| |
5 – 15 years
|
| | | | 95,078 | | | | | | (22,406) | | | | | | 72,672 | | |
Trade names – definite
|
| |
2 – 10 years
|
| | | | 54,360 | | | | | | (10,253) | | | | | | 44,107 | | |
Trade names – indefinite
|
| |
indefinite
|
| | | | 76,564 | | | | | | — | | | | | | 76,564 | | |
Total intangible assets
|
| | | | | | $ | 720,335 | | | | | $ | (102,719) | | | | | $ | 617,616 | | |
2019
|
| |
Estimated
Useful Life |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net Carrying
Amount |
| |||||||||
Customer relationships
|
| |
5 – 25 years
|
| | | $ | 494,333 | | | | | $ | (44,930) | | | | | $ | 449,403 | | |
Technology
|
| |
5 – 15 years
|
| | | | 95,078 | | | | | | (6,589) | | | | | | 88,489 | | |
Trade names – definite
|
| |
2 – 10 years
|
| | | | 54,360 | | | | | | (3,692) | | | | | | 50,668 | | |
Trade names – indefinite
|
| |
indefinite
|
| | | | 76,564 | | | | | | — | | | | | | 76,564 | | |
Total intangible assets
|
| | | | | | $ | 720,335 | | | | | $ | (55,211) | | | | | $ | 665,124 | | |
|
2021
|
| | | $ | 47,274 | | |
|
2022
|
| | | | 46,188 | | |
|
2023
|
| | | | 45,049 | | |
|
2024
|
| | | | 38,667 | | |
|
2025
|
| | | | 31,075 | | |
|
Thereafter
|
| | | | 332,799 | | |
|
Total
|
| | | $ | 541,052 | | |
|
2021
|
| | | $ | 21,149 | | |
|
2022
|
| | | | 6,824 | | |
|
2023
|
| | | | 6,824 | | |
|
2024
|
| | | | 637,811 | | |
|
Total future maturities of long-term debt
|
| | | | 672,608 | | |
|
Unamortized debt issuance costs
|
| | | | (20,595) | | |
|
Total indebtedness
|
| | | | 652,013 | | |
|
Less: Current maturities of long-term debt
|
| | | | 21,149 | | |
|
Long-term debt
|
| | | $ | 630,864 | | |
|
2021
|
| | | $ | 6,101 | | |
|
2022
|
| | | | 5,951 | | |
|
2023
|
| | | | 5,735 | | |
|
2024
|
| | | | 3,391 | | |
|
Total
|
| | | $ | 21,178 | | |
| | |
2020
|
| |
2019
|
| ||||||
Interest expense from Revolving Credit Facility
|
| | | $ | 1,632 | | | | | $ | 1,146 | | |
Interest expense from Initial Term Note
|
| | | | 14,841 | | | | | | 18,889 | | |
Interest expense from Incremental Term Note
|
| | | | 22,935 | | | | | | 11,086 | | |
Interest expense from Rate Cap
|
| | | | 20 | | | | | | 228 | | |
Amortization of debt issuance costs
|
| | | | 6,101 | | | | | | 3,895 | | |
Total Interest expense
|
| | | $ | 45,529 | | | | | $ | 35,244 | | |
| | |
December 25, 2020
|
| |
December 27, 2019
|
| ||||||||||||||||||
| | |
Carrying
Amount |
| |
Fair Value
|
| |
Carrying
Amount |
| |
Fair Value
|
| ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes receivable, net
|
| | | $ | 5,115 | | | | | $ | 5,494 | | | | | $ | 4,740 | | | | | $ | 4,905 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Initial Term Loan
|
| | | | 286,508 | | | | | | 267,169 | | | | | | 289,431 | | | | | | 249,635 | | |
Incremental Term Loan
|
| | | | 386,100 | | | | | | 384,652 | | | | | | 390,000 | | | | | | 380,250 | | |
| | |
Fair value at
December 25, 2020 |
| |
Valuation
Technique |
| |
Unobservable
Input |
| |
Volatility
|
| ||||||||||||
Contingent Value Rights
|
| | | $ | 4,000 | | | | | | OPM | | | | | | Volatility | | | | | | 51% | | |
|
CVR fair value – December 28, 2018
|
| | | $ | 2,886 | | |
|
Fair value adjustments
|
| | | | 314 | | |
|
CVR fair value – December 27, 2019
|
| | | | 3,200 | | |
|
Fair value adjustments
|
| | | | 800 | | |
|
CVR fair value – December 25, 2020
|
| | | $ | 4,000 | | |
| | |
2020
|
| |
2019
|
| ||||||
Payroll, vacation, and bonus accruals
|
| | | $ | 29,700 | | | | | $ | 18,641 | | |
Deferred revenue
|
| | | | 18,654 | | | | | | 14,642 | | |
Warranty reserve
|
| | | | 11,767 | | | | | | 11,686 | | |
Interest payable
|
| | | | 7,576 | | | | | | 10,992 | | |
Customer rebate program
|
| | | | 2,140 | | | | | | 1,767 | | |
IBNR
|
| | | | 1,215 | | | | | | 425 | | |
Rent accrual
|
| | | | 965 | | | | | | 1,120 | | |
Outbound shipping
|
| | | | 648 | | | | | | 421 | | |
Deferred purchase payment
|
| | | | 500 | | | | | | 3,346 | | |
Other accrued liabilities
|
| | | | 7,493 | | | | | | 6,534 | | |
Total accrued liabilities
|
| | | $ | 80,658 | | | | | $ | 69,574 | | |
| | |
2020
|
| |
2019
|
|
Expected holding period
|
| |
4 years
|
| |
5 years
|
|
Risk-free rate of return
|
| |
0.20 – 0.30%
|
| |
1.76%
|
|
Expected dividend yield
|
| |
—%
|
| |
—%
|
|
Expected volatility
|
| |
47 – 51%
|
| |
30%
|
|
Discount for lack of marketability
|
| |
20 – 25%
|
| |
20%
|
|
| | |
B-1 Incentive Units
|
| |
B-2 Incentive Units
|
| ||||||||||||||||||
| | |
Number of
Units (in 000’s) |
| |
Weighted-
Average Grant-Date Fair Value |
| |
Number of
Units (in 000’s) |
| |
Weighted-
Average Grant-Date Fair Value |
| ||||||||||||
Outstanding units-December 28, 2018
|
| | | | 43,088 | | | | | $ | 0.29 | | | | | | 22,542 | | | | | $ | 0.04 | | |
Units granted in 2019
|
| | | | 32,652 | | | | | | 0.40 | | | | | | 2,290 | | | | | | 0.21 | | |
Units forfeited in 2019
|
| | | | (4,542) | | | | | | 0.28 | | | | | | (4,327) | | | | | | 0.03 | | |
Units repurchased in 2019
|
| | | | (46) | | | | | | 0.27 | | | | | | — | | | | | | — | | |
Outstanding units-December 27, 2019
|
| | | | 71,152 | | | | | | 0.34 | | | | | | 20,505 | | | | | | 0.05 | | |
Units granted in 2020
|
| | | | 7,509 | | | | | | 0.42 | | | | | | — | | | | | | — | | |
Units forfeited in 2020
|
| | | | (7,922) | | | | | | 0.37 | | | | | | (683) | | | | | | 0.03 | | |
Units repurchased in 2020
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Outstanding units-December 25,2020
|
| | | | 70,739 | | | | | $ | 0.34 | | | | | | 19,822 | | | | | $ | 0.06 | | |
Vested units-December 25,2020
|
| | | | 28,718 | | | | | $ | 0.31 | | | | | | — | | | | | $ | — | | |
Nonvested units-December 25,2020
|
| | | | 42,021 | | | | | $ | 0.37 | | | | | | 19,822 | | | | | $ | 0.06 | | |
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
Domestic
|
| | | $ | (26,998) | | | | | $ | (43,760) | | |
Foreign
|
| | | | (2,237) | | | | | | (3,961) | | |
Total
|
| | | $ | (29,235) | | | | | $ | (47,721) | | |
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
Current | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | 96 | | | | | | 202 | | |
Foreign
|
| | | | 976 | | | | | | 213 | | |
Total
|
| | | | 1,072 | | | | | | 415 | | |
Deferred | | | | | | | | | | | | | |
Federal
|
| | | | (8,778) | | | | | | (12,852) | | |
State
|
| | | | 3,756 | | | | | | (822) | | |
Foreign
|
| | | | (401) | | | | | | (98) | | |
Total
|
| | | | (5,423) | | | | | | (13,772) | | |
Income tax benefit
|
| | | $ | (4,351) | | | | | $ | (13,357) | | |
| | |
2020
|
| |
2019
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss
|
| | | $ | 24,766 | | | | | $ | 22,017 | | |
Interest carryforward
|
| | | | 6,549 | | | | | | 8,294 | | |
Accrued liabilities and reserves
|
| | | | 11,380 | | | | | | 11,038 | | |
Uniform capitalization
|
| | | | 1,231 | | | | | | 2,761 | | |
Capital loss carryforward
|
| | | | 8,719 | | | | | | — | | |
R&D Credits
|
| | | | 17,072 | | | | | | 12,823 | | |
Deferred revenue
|
| | | | 3,022 | | | | | | 2,389 | | |
Depreciable property
|
| | | | 1,917 | | | | | | 820 | | |
Other
|
| | | | 522 | | | | | | 694 | | |
Total deferred tax assets
|
| | | | 75,178 | | | | | | 60,836 | | |
Valuation allowance
|
| | | | (15,658) | | | | | | (3,251) | | |
Total deferred tax assets, net of valuation allowance
|
| | | | 59,520 | | | | | | 57,585 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Amortization of intangible assets
|
| | | | (103,381) | | | | | | (109,470) | | |
Amortization of goodwill
|
| | | | (10,035) | | | | | | (6,799) | | |
Transaction costs
|
| | | | (449) | | | | | | (1,086) | | |
Total deferred tax liabilities
|
| | | | (113,865) | | | | | | (117,355) | | |
Net deferred tax liabilities
|
| | | $ | (54,345) | | | | | $ | (59,770) | | |
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
Domestic deferred tax liabilities
|
| | | $ | (55,518) | | | | | $ | (60,542) | | |
Foreign deferred tax assets
|
| | | | 1,173 | | | | | | 772 | | |
Net deferred tax liabilities
|
| | | $ | (54,345) | | | | | $ | (59,770) | | |
| | |
Amount
|
| |
Expiration
Years |
| |||
Net operating losses, federal
|
| | | $ | 68,274 | | | |
2027 – 2038
|
|
Net operating losses, federal
|
| | | | 18,726 | | | |
Indefinite
|
|
Net operating losses, state
|
| | | | 78,197 | | | |
2021 – 2039
|
|
Net operating losses, state
|
| | | | 2,282 | | | |
Indefinite
|
|
Tax credit carryforwards, federal
|
| | | | 22,251 | | | |
2023 – 2040
|
|
Tax credit carryforwards, state
|
| | | | 2,366 | | | |
2021 – 2030
|
|
Net operating losses, foreign
|
| | | | 18,569 | | | |
2022 – 2029
|
|
Capital loss carryforwards, federal
|
| | | | 35,039 | | | |
2025
|
|
Capital loss carryforwards, state
|
| | | | 22,640 | | | |
2025
|
|
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
Fiscal Year Ended | | | | | | | | | | | | | |
Balances, beginning
|
| | | $ | 8,281 | | | | | $ | 1,047 | | |
Additions for tax position of the current year
|
| | | | 538 | | | | | | 7,234 | | |
Reduction for tax positions of prior years for: | | | | | | | | | | | | | |
Changes in judgement
|
| | | | (670) | | | | | | — | | |
Lapses of applicable statutes of limitations
|
| | | | (55) | | | | | | — | | |
Balances, ending
|
| | | $ | 8,094 | | | | | $ | 8,281 | | |
| | |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||
Fiscal Year Ended | | | | | | | | | | | | | |
Federal income tax rate
|
| | | | 21.00% | | | | | | 21.00% | | |
State income taxes
|
| | | | 1.57 | | | | | | 1.60 | | |
Foreign income taxes
|
| | | | 1.03 | | | | | | 0.23 | | |
Deferred rate change
|
| | | | (6.00) | | | | | | (0.25) | | |
Foreign tax rate differences
|
| | | | (1.31) | | | | | | (0.03) | | |
Autonomic sale (Tax)
|
| | | | 29.82 | | | | | | 0.00 | | |
Incentive stock compensation
|
| | | | (3.08) | | | | | | (1.64) | | |
Research and development tax credits
|
| | | | 14.37 | | | | | | 26.21 | | |
Valuation allowance
|
| | | | (41.61) | | | | | | (2.03) | | |
Changes in uncertain tax positions
|
| | | | 0.64 | | | | | | (15.80) | | |
Other items, net
|
| | | | (1.55) | | | | | | (0.94) | | |
Effective income tax rate
|
| | | | 14.88% | | | | | | 28.35% | | |
|
2021
|
| | | $ | 11,400 | | |
|
2022
|
| | | | 8,147 | | |
|
2023
|
| | | | 6,895 | | |
|
2024
|
| | | | 6,175 | | |
|
2025
|
| | | | 4,761 | | |
|
Thereafter
|
| | | | 4,620 | | |
|
Total future minimum lease payments
|
| | | $ | 41,998 | | |
| | |
2020
|
| |
2019
|
| ||||||
Net Loss attributable to Company
|
| | | $ | (24,884) | | | | | $ | (34,364) | | |
Weighted-average shares outstanding-basic and diluted
|
| | | | 392,431 | | | | | | 387,353 | | |
Loss per share-basic and diluted
|
| | | | (63.41) | | | | | | (88.72) | | |
| | |
2020
|
| |
2019
|
| ||||||
Net loss from unconsolidated entities
|
| | | $ | (24,884) | | | | | $ | (34,364) | | |
Other comprehensive loss from unconsolidated entities
|
| | | | 795 | | | | | | (39) | | |
Total comprehensive loss
|
| | | $ | (24,089) | | | | | $ | (34,403) | | |
| | |
2020
|
| |
2019
|
| ||||||
Assets | | | | | | | | | | | | | |
Investments in unconsolidated subsidiary
|
| | | $ | 617,423 | | | | | $ | 636,828 | | |
Total assets
|
| | | $ | 617,423 | | | | | $ | 636,828 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Company’s stockholders’ equity
|
| | | $ | 617,423 | | | | | $ | 636,828 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 617,423 | | | | | $ | 636,828 | | |
| | |
2020
|
| |
2019
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (24,884) | | | | | $ | (34,364) | | |
Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | | | |
Loss from unconsolidated entities
|
| | | | 24,884 | | | | | | 34,364 | | |
Net cash used in operating activities
|
| | | | — | | | | | | — | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Investment in unconsolidated entities
|
| | | | — | | | | | | (254,911) | | |
Net cash provided by investing activities
|
| | | | — | | | | | | (254,911) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Capital contributions
|
| | | | — | | | | | | 254,911 | | |
Net cash used in financing activities
|
| | | | — | | | | | | 254,911 | | |
Net change in cash and cash equivalents
|
| | | | — | | | | | | — | | |
Cash at beginning of period
|
| | | | — | | | | | | — | | |
Cash at end of period
|
| | | $ | — | | | | | $ | — | | |
|
Morgan Stanley
|
| |
J.P. Morgan
|
| |
Jefferies
|
| |
UBS Investment Bank
|
|
| | |
Amount To Be Paid
|
| |||
SEC Registration Fee
|
| | | $ | * | | |
FINRA Filing Fee
|
| | | | * | | |
Initial [Nasdaq][NYSE] Listing Fee
|
| | | | * | | |
Legal Fees and Expenses
|
| | | | * | | |
Accounting Fees and Expenses
|
| | | | * | | |
Printing Fees and Expenses
|
| | | | * | | |
Blue Sky Fees and Expenses
|
| | | | * | | |
Transfer Agent and Registrar Fees
|
| | | | * | | |
Miscellaneous Expenses
|
| | | | * | | |
Total
|
| | | $ | * | | |
Exhibit
Number |
| |
Description
|
| |||
| | 1.1† | | | | Form of Underwriting Agreement | |
| | 2.1† | | | | Agreement and Plan of Merger, dated as of June 19, 2017, by and among Crackle Purchaser Corp., Crackle Merger Sub I Corp., Crackle Merger Sub II Corp., General Atlantic (Amplify) Holder LLC, Amplify Holdings LLC, GA Escrow, LLC and JWF Rollover, LLC | |
| | 3.1† | | | | Form of Amended and Restated Certificate of Incorporation of Snap One Holdings Corp. | |
| | 3.2† | | | | Form of Amended and Restated Bylaws of Snap One Holdings Corp. | |
| | 4.1† | | | | Form of Stock Certificate for Common Stock | |
| | 5.1† | | | | Opinion of Simpson Thacher & Bartlett LLP | |
| | 10.1† | | | | Form of Stockholders Agreement among Snap One Holdings Corp. and the other parties named therein | |
| | 10.2† | | | | Credit Agreement, dated as of August 4, 2017 (as amended and supplemented by that certain Amendment Agreement, dated as of November 1, 2017, that certain Incremental Agreement No. 1, dated as of February 5, 2018, that certain Incremental Agreement No. 2, dated as of October 31, 2018, and that certain Incremental Agreement No. 3, dated as of August 1, 2019) by and among Wirepath LLC, as borrower, Crackle Purchaser LLC, as holdings, the lenders and letter of credit issuers from time to time party thereto, UBS AG, Stamford Branch, as the administrative agent, collateral agent and swingline lender, and the other parties thereto; | |
| | 10.3†* | | | |
Form of Indemnification Agreement between Snap One Holdings Corp. and directors and officers
of Snap One Holdings Corp. |
|
| | 10.4†* | | | | Form of 2021 Incentive Plan | |
| | 10.5†* | | | | Form of 2021 Employee Stock Purchase Plan | |
| | 10.6†* | | | |
Form of Tax Receivable Agreement, between Snap One Holdings Corp. and the TRA Participants
named therein. |
|
| | 21.1† | | | | Subsidiaries of the Registrant | |
| | 23.1† | | | | Consent of Deloitte & Touche LLP | |
| | 23.2† | | | | Consent of Simpson Thacher & Bartlett LLP (included in Exhibit 5.1) | |
| | 24.1† | | | | Power of Attorney (included in the signature pages to the Registration Statement) | |
|
Signature
|
| |
Title
|
|
|
John Heyman
|
| |
Chief Executive Officer and Director
(Principal Executive Officer) |
|
|
Michael Carlet
|
| |
Chief Financial Officer
(Principal Financial and Accounting Officer) |
|
|
Erik Ragatz
|
| |
Chairman
|
|
|
Jacob Best
|
| |
Director
|
|
|
Annmarie Neal
|
| |
Director
|
|
|
Martin Plaehn
|
| |
Director
|
|
|
Kenneth R. Wagers III
|
| |
Director
|
|