| | |
Per
Share |
| |
Total
|
| ||||||
Public offering price
|
| | | $ | 18.000 | | | | | $ | 249,300,000 | | |
Underwriting discount(1)
|
| | | $ | 1.125 | | | | | $ | 15,581,250 | | |
Proceeds, before expenses, to us
|
| | | $ | 16.875 | | | | | $ | 233,718,750 | | |
|
Morgan Stanley
|
| |
J.P. Morgan
|
| |
Jefferies
|
| |
UBS Investment Bank
|
|
| | |
Page
|
| |||
| | | | 1 | | | |
| | | | 21 | | | |
| | | | 61 | | | |
| | | | 62 | | | |
| | | | 63 | | | |
| | | | 65 | | | |
| | | | 67 | | | |
| | | | 95 | | | |
| | | | 111 | | | |
| | | | 118 | | | |
| | | | 131 | | | |
| | | | 134 | | | |
| | | | 137 | | | |
| | | | 145 | | | |
| | | | 147 | | | |
| | | | 150 | | | |
| | | | 161 | | | |
| | | | 161 | | | |
| | | | 161 | | | |
| | | | F-1 | | |
| | |
Fiscal Quarter Ended
|
| |||||||||||||||
| | |
June 26, 2020
|
| |
June 25, 2021
|
| ||||||||||||
| | |
Actual
|
| |
Low
|
| |
High
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Statement of operations data: | | | | | | | | | | | | | | | | | | | |
Net sales
|
| | | $ | 189,119 | | | | | $ | 248,850 | | | | | $ | 253,850 | | |
Income (loss) from operations
|
| | | | 5,281 | | | | | | 5,840 | | | | | | 8,660 | | |
Net loss attributable to noncontrolling interest
|
| | | | (16) | | | | | | (10) | | | | | | (10) | | |
Net loss attributable to Company
|
| | | | (3,213) | | | | | | (3,470) | | | | | | (690) | | |
Other financial data: | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(a)
|
| | | $ | 24,409 | | | | | $ | 26,920 | | | | | $ | 29,690 | | |
Contribution Margin(b)
|
| | | | 42.2% | | | | | | 39.7% | | | | | | 40.0% | | |
| | |
June 25, 2021
|
| |||
| | |
(in thousands)
|
| |||
Balance sheet data: | | | | | | | |
Cash and cash equivalents(c)
|
| | | $ | 35,850 | | |
Total debt
|
| | | $ | 651,468 | | |
| | |
Fiscal Quarter Ended
|
| |||||||||||||||
| | |
June 26, 2020
|
| |
June 25, 2021
|
| ||||||||||||
| | |
Actual
|
| |
Low
|
| |
High
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Adjusted EBITDA: | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (3,229) | | | | | $ | (3,480) | | | | | $ | (700) | | |
Interest expense
|
| | | | 11,742 | | | | | | 9,540 | | | | | | 9,540 | | |
Income tax benefit
|
| | | | (1,015) | | | | | | 80 | | | | | | 120 | | |
Depreciation and amortization
|
| | | | 14,500 | | | | | | 14,200 | | | | | | 14,200 | | |
Other (income) expense
|
| | | | (2,217) | | | | | | (125) | | | | | | (125) | | |
Equity-based compensation
|
| | | | 1,185 | | | | | | 1,180 | | | | | | 1,180 | | |
Fair value adjustment to contingent value rights(a)
|
| | | | (700) | | | | | | 1,530 | | | | | | 1,530 | | |
Acquisition- and integration-related costs(b)
|
| | | | 899 | | | | | | 805 | | | | | | 805 | | |
Initial public offering costs(c)
|
| | | | — | | | | | | 1,210 | | | | | | 1,210 | | |
Deferred revenue purchase accounting adjustment(d)
|
| | | | 280 | | | | | | 140 | | | | | | 140 | | |
Deferred acquisitions payments(e)
|
| | | | 2,933 | | | | | | 1,975 | | | | | | 1,925 | | |
Other(f) | | | | | 31 | | | | | | (135) | | | | | | (135) | | |
Adjusted EBITDA
|
| | | $ | 24,409 | | | | | $ | 26,920 | | | | | $ | 29,690 | | |
| | |
Fiscal Quarter Ended
|
| |||||||||||||||
| | |
June 26, 2020
|
| |
June 25, 2021
|
| ||||||||||||
| | |
Actual
|
| |
Low
|
| |
High
|
| |||||||||
| | |
($ in thousands)
|
| |||||||||||||||
Net sales
|
| | | $ | 189,119 | | | | | $ | 248,850 | | | | | $ | 253,850 | | |
Cost of sales, exclusive of depreciation and amortization(a)
|
| | | | 109,243 | | | | | | 150,060 | | | | | | 152,440 | | |
Net sales less cost of sales, exclusive of depreciation and amortization
|
| | | $ | 79,876 | | | | | $ | 98,790 | | | | | $ | 101,410 | | |
Contribution Margin
|
| | | | 42.2% | | | | | | 39.7% | | | | | | 40.0% | | |
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Statement of operations data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales
|
| | | $ | 220,468 | | | | | $ | 172,611 | | | | | $ | 814,113 | | | | | $ | 590,842 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales, exclusive of depreciation and amortization
|
| | | | 128,876 | | | | | | 100,390 | | | | | | 474,778 | | | | | | 354,821 | | |
Selling, general and administrative expenses
|
| | | | 75,357 | | | | | | 67,386 | | | | | | 267,240 | | | | | | 209,986 | | |
Depreciation and amortization
|
| | | | 13,712 | | | | | | 14,483 | | | | | | 57,972 | | | | | | 39,657 | | |
Total costs and expenses
|
| | | | 217.945 | | | | | | 182,259 | | | | | | 799,990 | | | | | | 604,464 | | |
Income (loss) from operations
|
| | | | 2,523 | | | | | | (9,648) | | | | | | 14,123 | | | | | | (13,622) | | |
Other expenses (income): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 9,535 | | | | | | 12,803 | | | | | | 45,529 | | | | | | 35,244 | | |
Other (income) expense
|
| | | | (213) | | | | | | 883 | | | | | | (1,827) | | | | | | (1,048) | | |
Total other expenses
|
| | | | 9,322 | | | | | | 13,686 | | | | | | 43,702 | | | | | | 34,196 | | |
Loss before income tax benefit
|
| | | | (6,799) | | | | | | (23,334) | | | | | | (29,579) | | | | | | (47,818) | | |
Income tax benefit
|
| | | | (763) | | | | | | (4,316) | | | | | | (4,351) | | | | | | (13,357) | | |
Net loss
|
| | | | (6,036) | | | | | | (19,018) | | | | | | (25,228) | | | | | | (34,461) | | |
Net loss attributable to noncontrolling interest
|
| | | | (22) | | | | | | (24) | | | | | | (344) | | | | | | (97) | | |
Net loss attributable to Company
|
| | | $ | (6,014) | | | | | $ | (18,994) | | | | | $ | (24,884) | | | | | $ | (34,364) | | |
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||||||||
Per share data: | | | | | | | | | | | | | | | | ||||||||||
Net loss per share, basic and diluted
|
| | | $ | (0.10) | | | | | $ | (0.33) | | | | | $ | (0.42) | | | | | $ | (0.59) | | |
Weighted average common shares outstanding, basic
and diluted |
| | | | 59,216,665 | | | | | | 58,140,138 | | | | | | 58,864,723 | | | | | | 58,102,891 | | |
Pro forma net loss per share, basic and diluted
(unaudited)(i) |
| | | $ | (0.05) | | | | | | | | | | | $ | (0.19) | | | | | | | | |
Pro forma weighted average common shares outstanding, basic and diluted (unaudited)(i)
|
| | | | 72,075,253 | | | | | | | | | | | | 71,723,203 | | | | | | | | |
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||
Cash flow data: | | | | | | | | | | | | | | | | ||||||||||
Net cash provided by (used in): | | | | | | | | | | | | | | | | ||||||||||
Operating activities
|
| | | $ | (23,867) | | | | | $ | (13,675) | | | | | $ | 64,227 | | | | | $ | (4,099) | | |
Investing activities
|
| | | $ | (2,479) | | | | | $ | (2,383) | | | | | $ | (9,566) | | | | | $ | (588,602) | | |
Financing activities
|
| | | $ | (2,146) | | | | | $ | 45,087 | | | | | $ | (10,863) | | | | | $ | 617,904 | | |
Non-GAAP metrics: | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(1)
|
| | | $ | 23,342 | | | | | $ | 13,062 | | | | | $ | 94,458 | | | | | $ | 64,946 | | |
Adjusted Net Income(1)
|
| | | $ | 9,034 | | | | | $ | (2,707) | | | | | $ | 28,311 | | | | | $ | 19,694 | | |
Contribution Margin(1)
|
| | | | 41.5% | | | | | | 41.8% | | | | | | 41.7% | | | | | | 39.9% | | |
Free Cash Flow(1)
|
| | | $ | (25,917) | | | | | $ | (16,080) | | | | | $ | 53,982 | | | | | $ | (8,595) | | |
| | |
As of March 26, 2021
|
| |
As of
|
| ||||||||||||||||||
| | |
Actual
|
| |
As adjusted(2)
|
| |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Balance sheet data: | | | | | | | | | | | | | | | | ||||||||||
Cash and cash equivalents
|
| | | $ | 48,943 | | | | | $ | 45,897 | | | | | $ | 77,458 | | | | | $ | 33,177 | | |
Total assets
|
| | | $ | 1,477,930 | | | | | $ | 1,477,638 | | | | | $ | 1,497,538 | | | | | $ | 1,506,585 | | |
Total liabilities
|
| | | $ | 865,219 | | | | | $ | 767,066 | | | | | $ | 879,799 | | | | | $ | 869,658 | | |
Total stockholders’ equity
|
| | | $ | 612,711 | | | | | $ | 710,572 | | | | | $ | 617,739 | | | | | $ | 636,927 | | |
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net loss
|
| | | $ | (6,036) | | | | | $ | (19,018) | | | | | $ | (25,228) | | | | | $ | (34,461) | | |
Interest expense
|
| | | | 9,535 | | | | | | 12,803 | | | | | | 45,529 | | | | | | 35,244 | | |
Income tax benefit
|
| | | | (763) | | | | | | (4,316) | | | | | | (4,351) | | | | | | (13,357) | | |
Depreciation and amortization
|
| | | | 13,712 | | | | | | 14,483 | | | | | | 57,972 | | | | | | 39,657 | | |
Other (income) expense
|
| | | | (213) | | | | | | 883 | | | | | | (1,827) | | | | | | (1,048) | | |
Equity-based compensation
|
| | | | 1,060 | | | | | | 1,362 | | | | | | 4,284 | | | | | | 3,673 | | |
Fair value adjustment to contingent value rights(a)
|
| | | | 1,310 | | | | | | (300) | | | | | | 800 | | | | | | 314 | | |
Acquisition- and integration-related costs(b)
|
| | | | 14 | | | | | | 3,478 | | | | | | 5,341 | | | | | | 20,179 | | |
Initial public offering costs(c)
|
| | | | 1,711 | | | | | | — | | | | | | 542 | | | | | | — | | |
Deferred revenue purchase accounting adjustment(d)
|
| | | | 148 | | | | | | 370 | | | | | | 1,012 | | | | | | 831 | | |
Deferred acquisitions payments(e)
|
| | | | 2,152 | | | | | | 3,302 | | | | | | 9,649 | | | | | | 13,615 | | |
Other(f) | | | | | 712 | | | | | | 15 | | | | | | 735 | | | | | | 299 | | |
Adjusted EBITDA
|
| | | $ | 23,342 | | | | | $ | 13,062 | | | | | $ | 94,458 | | | | | $ | 64,946 | | |
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net loss
|
| | | $ | (6,036) | | | | | $ | (19,018) | | | | | $ | (25,228) | | | | | $ | (34,461) | | |
Amortization
|
| | | | 11,888 | | | | | | 11,875 | | | | | | 47,491 | | | | | | 31,488 | | |
Foreign currency (gains) losses
|
| | | | (48) | | | | | | 1,142 | | | | | | (172) | | | | | | (1,101) | | |
(Gain) loss on sale of business
|
| | | | — | | | | | | — | | | | | | (979) | | | | | | 561 | | |
Equity-based compensation
|
| | | | 1,060 | | | | | | 1,362 | | | | | | 4,284 | | | | | | 3,673 | | |
Fair value adjustment to contingent value rights(a)
|
| | | | 1,310 | | | | | | (300) | | | | | | 800 | | | | | | 314 | | |
Acquisition and integration related costs(b)
|
| | | | 14 | | | | | | 3,478 | | | | | | 5,341 | | | | | | 20,179 | | |
Initial public offering costs(c)
|
| | | | 1,711 | | | | | | — | | | | | | 542 | | | | | | — | | |
Deferred revenue purchase accounting adjustment(d)
|
| | | | 148 | | | | | | 370 | | | | | | 1,012 | | | | | | 831 | | |
Deferred acquisition payments(e)
|
| | | | 2,152 | | | | | | 3,302 | | | | | | 9,649 | | | | | | 13,615 | | |
Other(f) | | | | | 690 | | | | | | (62) | | | | | | 760 | | | | | | 225 | | |
Income tax effect of adjustments(g)
|
| | | | (3,855) | | | | | | (4,856) | | | | | | (15,189) | | | | | | (15,630) | | |
Adjusted Net Income
|
| | | $ | 9,034 | | | | | $ | (2,707) | | | | | $ | 28,311 | | | | | $ | 19,694 | | |
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||
Net sales
|
| | | $ | 220,468 | | | | | $ | 172,611 | | | | | $ | 814,113 | | | | | $ | 590,842 | | |
Cost of sales, exclusive of depreciation and amortization(a)
|
| | | | 128,876 | | | | | | 100,390 | | | | | | 474,778 | | | | | | 354,821 | | |
Net sales less cost of sales, exclusive of depreciation and
amortization |
| | | $ | 91,592 | | | | | $ | 72,221 | | | | | $ | 339,335 | | | | | $ | 236,021 | | |
Contribution Margin
|
| | | | 41.5% | | | | | | 41.8% | | | | | | 41.7% | | | | | | 39.9% | | |
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net cash provided by (used in) operating activities
|
| | | $ | (23,867) | | | | | $ | (13,675) | | | | | $ | 64,227 | | | | | $ | (4,099) | | |
Purchases of property and equipment
|
| | | | (2,050) | | | | | | (2,405) | | | | | | (10,245) | | | | | | (4,496) | | |
Free Cash Flow
|
| | | $ | (25,917) | | | | | $ | (16,080) | | | | | $ | 53,982 | | | | | $ | (8,595) | | |
| | |
As of March 26, 2021
|
| |||||||||
| | |
Actual
|
| |
As Adjusted
|
| ||||||
| | |
(in thousands, except share and par value data)
|
| |||||||||
Cash and cash equivalents(1)
|
| | | $ | 48,943 | | | | | $ | 45,897 | | |
Long-term debt, including current portion of long-term debt: | | | | | | | | | | | | | |
Revolving Credit Facility
|
| | | $ | — | | | | | $ | — | | |
Term loans
|
| | | | 670,902 | | | | | | 445,028 | | |
Unamortized debt issuance costs on term loans
|
| | | | (19,162) | | | | | | (11,608) | | |
Unamortized debt issuance costs on Revolving Credit Facility
|
| | | | (491) | | | | | | (491) | | |
Total debt
|
| | | | 651,249 | | | | | | 442,929 | | |
Stockholders’ Equity: | | | | | | | | | | | | | |
Common stock, $0.001 par value, actual, $0.01 par value, as adjusted; 100,000,000 shares authorized, actual, 59,216,665 shares issued and outstanding, actual, 500,000,000 shares authorized, as adjusted, 74,725,605 shares issued and outstanding, as adjusted
|
| | | | 59 | | | | | | 747 | | |
Preferred stock, $0.01 par value; no shares authorized, actual, no shares issued and outstanding, actual, 50,000,000 shares authorized, as adjusted, no shares issued and outstanding, as adjusted
|
| | | | — | | | | | | — | | |
Additional paid-in capital(2)
|
| | | | 660,686 | | | | | | 775,705 | | |
Accumulated deficit(1)
|
| | | | (49,032) | | | | | | (66,878) | | |
Accumulated other comprehensive income
|
| | | | 704 | | | | | | 704 | | |
Company’s stockholders’ equity
|
| | | | 612,417 | | | | | | 710,278 | | |
Noncontrolling interest
|
| | | | 294 | | | | | | 294 | | |
Total stockholders’ equity
|
| | | | 612,711 | | | | | | 710,572 | | |
Total capitalization
|
| | | $ | 1,263,960 | | | | | $ | 1,153,501 | | |
|
Initial public offering price per share
|
| | | | | | | | | $ | 18.00 | | |
|
Net tangible book deficit per share as of March 26, 2021 before giving effect to this offering and the Equity Conversion
|
| | | $ | (9.09) | | | | | | | | |
|
Increase in net tangible book value per share attributable to new investors purchasing shares in this offering
|
| | | | 3.00 | | | | | | | | |
|
Net tangible book deficit per share as adjusted to give effect to this offering
|
| | | | | | | | | | (6.09) | | |
|
Dilution per share to new investors in this offering
|
| | | | | | | | | $ | 24.09 | | |
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average
Price per Share |
| |||||||||||||||||||||
| | |
Number
(in thousands) |
| |
Percent
|
| |
Amount
(in thousands) |
| |
Percent
|
| ||||||||||||||||||
Existing Stockholders
|
| | | | 60,876 | | | | | | 81.5% | | | | | $ | 662,651 | | | | | | 72.7% | | | | | $ | 10.89 | | |
New Investors
|
| | | | 13,850 | | | | | | 18.5 | | | | | | 249,300 | | | | | | 27.3% | | | | | $ | 18.00 | | |
Total
|
| | | | 74,726 | | | | | | 100.0% | | | | | $ | 911,951 | | | | | | 100.0% | | | | | | | | |
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Calculation of Adjusted EBITDA | | | | | | | | | | | | | | | | ||||||||||
Net loss
|
| | | $ | (6,036) | | | | | $ | (19,018) | | | | | $ | (25,228) | | | | | $ | (34,461) | | |
Interest expense
|
| | | | 9,535 | | | | | | 12,803 | | | | | | 45,529 | | | | | | 35,244 | | |
Income tax benefit
|
| | | | (763) | | | | | | (4,316) | | | | | | (4,351) | | | | | | (13,357) | | |
Depreciation and amortization
|
| | | | 13,712 | | | | | | 14,483 | | | | | | 57,972 | | | | | | 39,657 | | |
Other (income) expense
|
| | | | (213) | | | | | | 883 | | | | | | (1,827) | | | | | | (1,048) | | |
Equity-based compensation
|
| | | | 1,060 | | | | | | 1,362 | | | | | | 4,284 | | | | | | 3,673 | | |
Fair value adjustment to contingent value rights(a)
|
| | | | 1,310 | | | | | | (300) | | | | | | 800 | | | | | | 314 | | |
Acquisition- and integration-related costs(b)
|
| | | | 14 | | | | | | 3,478 | | | | | | 5,341 | | | | | | 20,179 | | |
Initial public offering costs(c)
|
| | | | 1,711 | | | | | | — | | | | | | 542 | | | | | | — | | |
Deferred revenue purchase accounting adjustment(d)
|
| | | | 148 | | | | | | 370 | | | | | | 1,012 | | | | | | 831 | | |
Deferred acquisition payments(e)
|
| | | | 2,152 | | | | | | 3,302 | | | | | | 9,649 | | | | | | 13,615 | | |
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Other(f) | | | | | 712 | | | | | | 15 | | | | | | 735 | | | | | | 299 | | |
Adjusted EBITDA
|
| | | $ | 23,342 | | | | | $ | 13,062 | | | | | $ | 94,458 | | | | | $ | 64,946 | | |
|
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net loss
|
| | | $ | (6,036) | | | | | $ | (19,018) | | | | | $ | (25,228) | | | | | $ | (34,461) | | |
Amortization
|
| | | | 11,888 | | | | | | 11,875 | | | | | | 47,491 | | | | | | 31,488 | | |
Foreign currency (gains) loss
|
| | | | (48) | | | | | | 1,142 | | | | | | (172) | | | | | | (1,101) | | |
(Gain) loss on sale of business
|
| | | | — | | | | | | — | | | | | | (979) | | | | | | 561 | | |
Equity-based compensation
|
| | | | 1,060 | | | | | | 1,362 | | | | | | 4,284 | | | | | | 3,673 | | |
Fair value adjustment to contingent value rights(a)
|
| | | | 1,310 | | | | | | (300) | | | | | | 800 | | | | | | 314 | | |
Acquisition and integration related costs(b)
|
| | | | 14 | | | | | | 3,478 | | | | | | 5,341 | | | | | | 20,179 | | |
Initial public offering costs(c)
|
| | | | 1,711 | | | | | | — | | | | | | 542 | | | | | | — | | |
Deferred revenue purchase accounting adjustment(d)
|
| | | | 148 | | | | | | 370 | | | | | | 1,012 | | | | | | 831 | | |
Deferred acquisition payments(e)
|
| | | | 2,152 | | | | | | 3,302 | | | | | | 9,649 | | | | | | 13,615 | | |
Other(f) | | | | | 690 | | | | | | (62) | | | | | | 760 | | | | | | 225 | | |
Income tax effect of adjustments(g)
|
| | | | (3,855) | | | | | | (4,856) | | | | | | (15,189) | | | | | | (15,630) | | |
Adjusted Net Income
|
| | | $ | 9,034 | | | | | $ | (2,707) | | | | | $ | 28,311 | | | | | $ | 19,694 | | |
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||
Net sales
|
| | | $ | 220,468 | | | | | $ | 172,611 | | | | | $ | 814,113 | | | | | $ | 590,842 | | |
Cost of sales, exclusive of depreciation and amortization(a)
|
| | | | 128,876 | | | | | | 100,390 | | | | | | 474,778 | | | | | | 354,821 | | |
Net sales less cost of sales, exclusive of depreciation and
amortization |
| | | $ | 91,592 | | | | | $ | 72,221 | | | | | $ | 339,335 | | | | | $ | 236,021 | | |
Contribution Margin
|
| | | | 41.5% | | | | | | 41.8% | | | | | | 41.7% | | | | | | 39.9% | | |
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| |
December 25,
2020 |
| |
December 27,
2019 |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net cash provided by (used in) operating activities
|
| | | $ | (23,867) | | | | | $ | (13,675) | | | | | $ | 64,227 | | | | | $ | (4,099) | | |
Purchases of property and equipment
|
| | | | (2,050) | | | | | | (2,405) | | | | | | (10,245) | | | | | | (4,496) | | |
Free Cash Flow
|
| | | $ | (25,917) | | | | | $ | (16,080) | | | | | $ | 53,982 | | | | | $ | (8,595) | | |
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
March 26,
2021 |
| |
% of
Net sales |
| |
March 27,
2020 |
| |
% of
Net sales |
| |
December 25,
2020 |
| |
% of
Net sales |
| |
December 27,
2019 |
| |
% of
Net sales |
| ||||||||||||||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Net Sales
|
| | | $ | 220,468 | | | | | | 100.0% | | | | | $ | 172,611 | | | | | | 100.0% | | | | | $ | 814,113 | | | | | | 100.0% | | | | | $ | 590,842 | | | | | | 100.0% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales, exclusive of depreciation and amortization
|
| | | | 128,876 | | | | | | 58.5% | | | | | | 100,390 | | | | | | 58.2% | | | | | | 474,778 | | | | | | 58.3% | | | | | | 354,821 | | | | | | 60.1% | | |
Selling, general and administrative
expenses |
| | | | 75,357 | | | | | | 34.2% | | | | | | 67,386 | | | | | | 39.0% | | | | | | 267,240 | | | | | | 32.8% | | | | | | 209,986 | | | | | | 35.5% | | |
Depreciation and amortization
|
| | | | 13,712 | | | | | | 6.2% | | | | | | 14,483 | | | | | | 8.4% | | | | | | 57,972 | | | | | | 7.1% | | | | | | 39,657 | | | | | | 6.7% | | |
Total costs and expenses
|
| | | | 217.945 | | | | | | 98.9% | | | | | | 182,259 | | | | | | 105.6% | | | | | | 799,990 | | | | | | 98.3% | | | | | | 604,464 | | | | | | 102.3% | | |
Income (loss) from operations
|
| | | | 2,523 | | | | | | 1.1% | | | | | | (9,648) | | | | | | (5.6)% | | | | | | 14,123 | | | | | | 1.7% | | | | | | (13,622) | | | | | | (2.3)% | | |
Other expenses (income): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 9,535 | | | | | | 4.3% | | | | | | 12,803 | | | | | | 7.4% | | | | | | 45,529 | | | | | | 5.6% | | | | | | 35,244 | | | | | | 6.0% | | |
Other (income) expense
|
| | | | (213) | | | | | | (0.1)% | | | | | | 883 | | | | | | 0.5% | | | | | | (1,827) | | | | | | (0.2)% | | | | | | (1,048) | | | | | | (0.2)% | | |
Total other expenses
|
| | | | 9,322 | | | | | | 4.2% | | | | | | 13,686 | | | | | | 7.9% | | | | | | 43,702 | | | | | | 5.4% | | | | | | 34,196 | | | | | | 5.8% | | |
Loss before income tax benefit
|
| | | | (6,799) | | | | | | (3.1)% | | | | | | (23,334) | | | | | | (13.5)% | | | | | | (29,579) | | | | | | (3.6)% | | | | | | (47,818) | | | | | | (8.1)% | | |
Income tax benefit
|
| | | | (763) | | | | | | -0.3% | | | | | | (4,316) | | | | | | (2.5)% | | | | | | (4,351) | | | | | | (0.5)% | | | | | | (13,357) | | | | | | (2.3)% | | |
Net loss
|
| | | | (6,036) | | | | | | (2.7)% | | | | | | (19,018) | | | | | | (11.0)% | | | | | | (25,228) | | | | | | (3.1)% | | | | | | (34,461) | | | | | | (5.8)% | | |
Net loss attributable to noncontrolling interest
|
| | | | (22) | | | | | | 0.0% | | | | | | (24) | | | | | | 0.0% | | | | | | (344) | | | | | | 0.0% | | | | | | (97) | | | | | | 0.0% | | |
Net loss attributable to Company
|
| | | $ | (6,014) | | | | | | (2.7)% | | | | | $ | (18,994) | | | | | | (11.0)% | | | | | $ | (24,884) | | | | | | (3.1)% | | | | | $ | (34,364) | | | | | | (5.8)% | | |
| | |
Fiscal Quarter Ended
|
| |
$ Change
|
| |
% Change
|
| |||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net Sales
|
| | | $ | 220,468 | | | | | $ | 172,611 | | | | | $ | 47,857 | | | | | | 27.7% | | |
| | |
Fiscal Quarter Ended
|
| |
$ Change
|
| |
% Change
|
| |||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||
Cost of Sales, exclusive of depreciation and amortization
|
| | | $ | 128,876 | | | | | $ | 100,390 | | | | | $ | 28,486 | | | | | | 28.4% | | |
As a percentage of net sales
|
| | | | 58.5% | | | | | | 58.2% | | | | | | | | | | | | | | |
| | |
Fiscal Quarter Ended
|
| |
$ Change
|
| |
% Change
|
| |||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||
Selling, general and administrative expenses
|
| | | $ | 75,357 | | | | | $ | 67,386 | | | | | $ | 7,971 | | | | | | 11.8% | | |
As a percentage of net sales
|
| | | | 34.2% | | | | | | 39.0% | | | | | | | | | | | | | | |
| | |
Fiscal Quarter Ended
|
| |
$ Change
|
| |
% Change
|
| |||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||
Depreciation and amortization
|
| | | $ | 13,712 | | | | | $ | 14,483 | | | | | $ | (771) | | | | | | (5.3)% | | |
As a percentage of net sales
|
| | | | 6.2% | | | | | | 8.4% | | | | | | | | | | | | | | |
| | |
Fiscal Quarter Ended
|
| |
$ Change
|
| |
% Change
|
| |||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||
Interest Expense
|
| | | $ | 9,535 | | | | | $ | 12,803 | | | | | $ | (3,268) | | | | | | (25.5)% | | |
As a percentage of net sales
|
| | | | 4.3% | | | | | | 7.4% | | | | | | | | | | | | | | |
| | |
Fiscal Quarter Ended
|
| |
$ Change
|
| |
% Change
|
| |||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||
Other (income) expense
|
| | | $ | (213) | | | | | $ | 883 | | | | | $ | (1,096) | | | | | | (124.1)% | | |
As a percentage of net sales
|
| | | | (0.1)% | | | | | | 0.5% | | | | | | | | | | | | | | |
| | |
Fiscal Quarter Ended
|
| |
$ Change
|
| |
% Change
|
| |||||||||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||
Income tax benefit
|
| | | $ | (763) | | | | | $ | (4,316) | | | | | $ | 3,553 | | | | | | (82.3)% | | |
As a percentage of net sales
|
| | | | (0.3)% | | | | | | (2.5)% | | | | | | | | | | | | | | |
| | |
Fiscal Year Ended
|
| |
$ Change
|
| |
% Change
|
| |||||||||||||||
| | |
December 25, 2020
|
| |
December 27, 2019
|
| ||||||||||||||||||
| | |
(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)% | | | | | | | | | | | | | | |
| | |
Fiscal Quarter Ended
|
| |||||||||||||||||||||||||||
| | |
March 26,
2021 |
| |
December 25,
2020 |
| |
September 25,
2020 |
| |
June 26,
2020 |
| |
March 27,
2020 |
| |||||||||||||||
| | | | | | | | |
(in thousands)
|
| |
(in thousands)
|
| | | ||||||||||||||||
Consolidated Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales
|
| | | $ | 220,468 | | | | | $ | 226,107 | | | | | $ | 226,276 | | | | | $ | 189,119 | | | | | $ | 172,611 | | |
(Loss) income from operations
|
| | | $ | 2,523 | | | | | $ | 6,675 | | | | | $ | 11,815 | | | | | $ | 5,281 | | | | | $ | (9,648) | | |
Net (loss) income attributable to Company
|
| | | $ | (6,014) | | | | | $ | (4,094) | | | | | $ | 1,417 | | | | | $ | (3,213) | | | | | $ | (18,994) | | |
Per Share Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (loss) income per share, basic and diluted
|
| | | $ | (0.10) | | | | | $ | (0.07) | | | | | $ | (0.02) | | | | | $ | (0.05) | | | | | $ | (0.33) | | |
Non-GAAP metrics: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(1)
|
| | | $ | 23,342 | | | | | $ | 25,606 | | | | | $ | 31.381 | | | | | $ | 24,409 | | | | | $ | 13,062 | | |
Adjusted Net Income(1)
|
| | | $ | 9,034 | | | | | $ | 8,543 | | | | | $ | 14,815 | | | | | $ | 7,660 | | | | | $ | (2,707) | | |
Contribution Margin(1)
|
| | | | 41.5% | | | | | | 41.6% | | | | | | 41.2% | | | | | | 42.2% | | | | | | 41.8% | | |
| | |
Fiscal Quarter Ended
|
| |||||||||||||||||||||||||||
| | |
March 27,
2020 |
| |
June 26,
2020 |
| |
September 25,
2020 |
| |
December 25,
2020 |
| |
March 26,
2021 |
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Net loss
|
| | | $ | (19,018) | | | | | $ | (3,229) | | | | | $ | 1,403 | | | | | $ | (4,384) | | | | | $ | (6,036) | | |
Interest expense
|
| | | | 12,803 | | | | | | 11,742 | | | | | | 11,330 | | | | | | 9,654 | | | | | | 9,535 | | |
Income tax (benefit) expense
|
| | | | (4,316) | | | | | | (1,015) | | | | | | (694) | | | | | | 1,674 | | | | | | (763) | | |
Depreciation and amortization
|
| | | | 14,483 | | | | | | 14,500 | | | | | | 14,368 | | | | | | 14,621 | | | | | | 13,712 | | |
Other (income) expense
|
| | | | 883 | | | | | | (2,217) | | | | | | (224) | | | | | | (269) | | | | | | (213) | | |
Equity-based compensation
|
| | | | 1,362 | | | | | | 1,185 | | | | | | 1,025 | | | | | | 712 | | | | | | 1,060 | | |
Fair value adjustment to contingent value rights(a)
|
| | | | (300) | | | | | | (700) | | | | | | 1,300 | | | | | | 500 | | | | | | 1,310 | | |
Acquisition- and integration-related costs(b)
|
| | | | 3,478 | | | | | | 899 | | | | | | 640 | | | | | | 324 | | | | | | 14 | | |
Initial public offering costs(c)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 542 | | | | | | 1,711 | | |
Deferred revenue purchase accounting adjustment(d)
|
| | | | 370 | | | | | | 280 | | | | | | 193 | | | | | | 169 | | | | | | 148 | | |
Deferred acquisition payments(e)
|
| | | | 3,302 | | | | | | 2,933 | | | | | | 2,038 | | | | | | 1,376 | | | | | | 2,152 | | |
Other(f) | | | | | 15 | | | | | | 31 | | | | | | 2 | | | | | | 687 | | | | | | 712 | | |
Adjusted EBITDA
|
| | | $ | 13,062 | | | | | $ | 24,409 | | | | | $ | 31,381 | | | | | $ | 25,606 | | | | | $ | 23,342 | | |
| | |
Fiscal Quarter Ended
|
| |||||||||||||||||||||||||||
| | |
March 27,
2020 |
| |
June 26,
2020 |
| |
September 25,
2020 |
| |
December 25,
2020 |
| |
March 26,
2021 |
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Net loss
|
| | | $ | (19,018) | | | | | $ | (3,229) | | | | | $ | 1,403 | | | | | $ | (4,384) | | | | | $ | (6,036) | | |
Amortization | | | | | 11,875 | | | | | | 11,872 | | | | | | 11,872 | | | | | | 11,872 | | | | | | 11,888 | | |
Foreign currency (gains) loss
|
| | | | 1,142 | | | | | | (985) | | | | | | (55) | | | | | | (274) | | | | | | (48) | | |
Gain on sale of business
|
| | | | — | | | | | | (979) | | | | | | — | | | | | | — | | | | | | — | | |
Equity-based compensation
|
| | | | 1,362 | | | | | | 1,185 | | | | | | 1,025 | | | | | | 712 | | | | | | 1,060 | | |
Fair value adjustment to contingent value rights(a)
|
| | | | (300) | | | | | | (700) | | | | | | 1,300 | | | | | | 500 | | | | | | 1,310 | | |
Acquisition- and integration-related costs(b)
|
| | | | 3,478 | | | | | | 899 | | | | | | 640 | | | | | | 324 | | | | | | 14 | | |
Initial public offering costs(c)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 542 | | | | | | 1,711 | | |
Deferred revenue purchase accounting adjustment(d)
|
| | | | 370 | | | | | | 280 | | | | | | 193 | | | | | | 169 | | | | | | 148 | | |
Deferred acquisition payments(e)
|
| | | | 3,302 | | | | | | 2,933 | | | | | | 2,038 | | | | | | 1,376 | | | | | | 2,152 | | |
Other(f) | | | | | (62) | | | | | | (46) | | | | | | 2 | | | | | | 866 | | | | | | 690 | | |
Income tax effect of adjustments(g)
|
| | | | (4,856) | | | | | | (3,570) | | | | | | (3,603) | | | | | | (3,160) | | | | | | (3,855) | | |
Adjusted Net Income
|
| | | $ | (2,707) | | | | | $ | 7,660 | | | | | $ | 14,815 | | | | | $ | 8,543 | | | | | $ | 9,034 | | |
| | |
Fiscal Quarter Ended
|
| |||||||||||||||||||||||||||
| | |
March 27,
2020 |
| |
June 26,
2020 |
| |
September 25,
2020 |
| |
December 25,
2020 |
| |
March 26,
2021 |
| |||||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||||||||
Net sales
|
| | | $ | 172,611 | | | | | $ | 189,119 | | | | | $ | 226,276 | | | | | $ | 226,107 | | | | | $ | 220,468 | | |
Cost of sales, exclusive of depreciation and amortization(a)
|
| | | | 100,390 | | | | | | 109,243 | | | | | | 133,131 | | | | | | 132,014 | | | | | | 128,876 | | |
Net sales less cost of sales, exclusive of depreciation and amortization
|
| | | $ | 72,221 | | | | | $ | 79,876 | | | | | $ | 93,145 | | | | | $ | 94,093 | | | | | $ | 91,592 | | |
Contribution Margin
|
| | | | 41.8% | | | | | | 42.2% | | | | | | 41.2% | | | | | | 41.6% | | | | | | 41.5% | | |
| | |
As of
|
| |||||||||||||||
| | |
March 26,
2021 |
| |
December 25,
2020 |
| |
December 27,
2019 |
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Cash and cash equivalents
|
| | | $ | 48,943 | | | | | $ | 77,458 | | | | | $ | 33,177 | | |
Accounts receivable, net
|
| | | | 56,313 | | | | | | 49,363 | | | | | | 46,226 | | |
Working capital, excluding deferred revenue
|
| | | | 162,456 | | | | | | 141,476 | | | | | | 134,319 | | |
| | |
Fiscal Quarter Ended
|
| |
Fiscal Year Ended
|
| ||||||||||||||||||
| | |
March 26, 2021
|
| |
March 27, 2020
|
| |
December 25, 2020
|
| |
December 27, 2019
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net cash provided by (used in) operating
activities |
| | | $ | (23,867) | | | | | $ | (13,675) | | | | | $ | 64,227 | | | | | $ | (4,099) | | |
Net cash used in investing activities
|
| | | | (2,479) | | | | | | (2,383) | | | | | | (9,566) | | | | | | (588,602) | | |
Net cash (used in) provided by financing
activities |
| | | | (2,146) | | | | | | 45,087 | | | | | | (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 | | |
Locations
|
| |
Approximate
Square Footage |
| |
Lease
Expiration Dates |
| ||||||
Corporate Offices | | | | | | | | | | | | | |
Charlotte, North Carolina
|
| | | | 69,953 | | | | | | 1/31/2025 | | |
Draper, Utah
|
| | | | 111,211 | | | | | | 1/31/2022 | | |
Distribution Centers | | | | | | | | | | | | | |
Carrollton, Texas
|
| | | | 72,153 | | | | | | 3/31/2025 | | |
Charlotte, North Carolina
|
| | | | 123,000 | | | | | | 7/31/2025 | | |
Hebron, Kentucky
|
| | | | 63,514 | | | | | | 11/30/2025 | | |
Salt Lake City, Utah
|
| | | | 59,669 | | | | | | 3/31/2022 | | |
San Bernardino, California
|
| | | | 184,397 | | | | | | 7/31/2027 | | |
Name
|
| |
Age
|
| |
Position
|
|
John Heyman | | |
60
|
| | Chief Executive Officer, Director | |
Michael Carlet | | |
53
|
| | Chief Financial Officer | |
Jefferson Dungan | | |
51
|
| | Chief Operations Officer | |
Jeffrey Hindman | | |
43
|
| | Chief Revenue Officer | |
G Paul Hess | | |
48
|
| | Chief Product Officer | |
JD Ellis | | |
42
|
| | Chief Legal Officer | |
Erik Ragatz | | |
48
|
| | Chairman of the Board of Directors | |
Jacob Best | | |
37
|
| | Director | |
Annmarie Neal | | |
58
|
| | Director | |
Martin Plaehn | | |
63
|
| | Director | |
Adalio Sanchez | | |
62
|
| | Director | |
Kenneth R. Wagers III | | |
49
|
| | Director | |
Amy Steel Vanden-Eykel | | |
44
|
| | 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) | | | | | | — | | | ||
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) | | | | | | — | | |
| | |
Shares
Received in Exchange for Vested Class B-1 Units |
| |
Restricted
Shares Received in Exchange for Unvested Class B-1 Units |
| |
Shares
Received in Exchange for Vested Class B-2 Units |
| |
Restricted
Shares Received in Exchange for Unvested Class B-2 Units |
| ||||||||||||||||||||||||||||||||||||
| | |
(#)
|
| |
($)
|
| |
(#)
|
| |
($)
|
| |
(#)
|
| |
($)
|
| |
(#)
|
| |
($)
|
| ||||||||||||||||||||||||
John Heyman
|
| | | | 403,164 | | | | | | 7,256,952 | | | | | | 188,475 | | | | | | 3,392,550 | | | | | | — | | | | | | — | | | | | | 415,311 | | | | | | 7,475,598 | | |
Michael Carlet
|
| | | | 124,519 | | | | | | 2,241,342 | | | | | | 59,592 | | | | | | 1,072,656 | | | | | | — | | | | | | — | | | | | | 129,671 | | | | | | 2,334,078 | | |
Jeffrey Hindman
|
| | | | 124,519 | | | | | | 2,241,342 | | | | | | 59,592 | | | | | | 1,072,656 | | | | | | — | | | | | | — | | | | | | 129,671 | | | | | | 2,334,078 | | |
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 | | |
Committee
|
| |
Committee Member
Retainer |
| |
Committee Chair
Retainer |
| ||||||
Audit and Risk Management Committee
|
| | | $ | 10,000 | | | | | $ | 25,000 | | |
Compensation Committee
|
| | | $ | 7,500 | | | | | $ | 15,000 | | |
Nominating and Corporate Governance Committee
|
| | | $ | 7,500 | | | | | $ | 15,000 | | |
Name of Beneficial Owner
|
| |
Shares Beneficially
Owned Prior to the Offering |
| |
Shares to be
Sold in this 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 |
| |
If Underwriters’ Option
to Purchase Additional Shares is Not Exercised |
| |
If Underwriters’ Option
to Purchase Additional Shares is Exercised in Full |
| ||||||||||||||||||||||||||||||||||||||
|
Shares
|
| |
Percentage
|
| |
Shares
|
| |
Percentage
|
| |
Shares
|
| |
Percentage
|
| |
Shares
|
| |
Percentage
|
| |
Shares
|
| |
Percentage
|
| ||||||||||||||||||||||||||||||||
5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
H&F Investors(1)
|
| | | | 55,424,435 | | | | | | 91.0% | | | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | 55,424,435 | | | | | | 74.2% | | | | | | 55,424,435 | | | | | | 72.3% | | |
Directors and Named Executive Officers:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
John Heyman(2)
|
| | | | 1,502,021 | | | | | | 2.5% | | | | | | — | | | | |
|
—
|
| | | | | 46,820 | | | | |
|
*
|
| | | | | 1,502,021 | | | | | | 2.0% | | | | | | 1,455,201 | | | | | | 1.9% | | |
Michael Carlet(3)
|
| | | | 388,043 | | | | |
|
*
|
| | | | | — | | | | |
|
—
|
| | | | | 21,085 | | | | |
|
*
|
| | | | | 388,043 | | | | |
|
*
|
| | | | | 366,958 | | | | |
|
*
|
| |
Jeffrey
Hindman(4) |
| | | | 388,043 | | | | |
|
*
|
| | | | | — | | | | |
|
—
|
| | | | | 21,085 | | | | |
|
*
|
| | | | | 388,043 | | | | |
|
*
|
| | | | | 366,958 | | | | |
|
*
|
| |
Erik Ragatz(5)
|
| | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| |
Jacob Best(5)
|
| | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| |
Annmarie Neal(5)
|
| | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| |
Martin Plaehn(6)
|
| | | | 14,248 | | | | |
|
*
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | 14,248 | | | | |
|
*
|
| | | | | 14,248 | | | | |
|
*
|
| |
Adalio Sanchez
|
| | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| |
Kenneth R.
Wagers III(7) |
| | | | 7,124 | | | | |
|
*
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | 7,124 | | | | |
|
*
|
| | | | | 7,124 | | | | |
|
*
|
| |
Amy Steel Vanden-Eykel
|
| | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | |
|
—
|
| |
All directors and executive officers as a group (13 persons)(8)
|
| | | | 2,639,085 | | | | | | 4.3% | | | | | | — | | | | | | — | | | | | | 103,979 | | | | |
|
*
|
| | | | | 2,639,085 | | | | | | 3.5% | | | | | | 2,535,106 | | | | | | 3.3% | | |
Other Selling Stockholder:
|
| | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other(9) | | | | | 236,859 | | | | |
|
*
|
| | | | | — | | | | | | — | | | | | | 14,989 | | | | |
|
*
|
| | | | | 236,859 | | | | |
|
*
|
| | | | | 221,870 | | | | |
|
*
|
| |
Name
|
| |
Number of Shares
|
| |||
Morgan Stanley & Co. LLC
|
| | | | 4,207,485 | | |
J.P. Morgan Securities LLC
|
| | | | 3,085,488 | | |
Jefferies LLC
|
| | | | 1,823,243 | | |
UBS Securities LLC
|
| | | | 1,542,744 | | |
BMO Capital Markets Corp.
|
| | | | 731,280 | | |
Raymond James & Associates, Inc.
|
| | | | 731,280 | | |
Truist Securities, Inc.
|
| | | | 731,280 | | |
William Blair & Company, L.L.C.
|
| | | | 731,280 | | |
Drexel Hamilton, LLC
|
| | | | 66,480 | | |
Penserra Securities LLC
|
| | | | 66,480 | | |
R. Seelaus & Co., LLC
|
| | | | 66,480 | | |
Siebert Williams Shank & Co., LLC
|
| | | | 66,480 | | |
Total:
|
| | | | 13,850,000 | | |
| | | | | | | | |
Total
|
| |||||||||
| | |
Per
Share |
| |
No
Exercise |
| |
Full
Exercise |
| |||||||||
Public offering price
|
| | | $ | 18.000 | | | | | $ | 249,300,000 | | | | | $ | 284,823,378 | | |
Underwriting discounts and commissions to be paid by
us |
| | | $ | 1.125 | | | | | $ | 15,581,250 | | | | | $ | 17,801,461 | | |
Proceeds, before expenses, to us
|
| | | $ | 16.875 | | | | | $ | 233,718,750 | | | | | $ | 267,021,917 | | |
Proceeds, before expenses, to the selling stockholders
|
| | | $ | 16.875 | | | | | $ | — | | | | | $ | 1,754,646 | | |
| | |
Page
|
| |||
Audited Consolidated Financial Statements | | | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
| | | | F-34 | | | |
Unaudited Condensed Consolidated Financial Statements | | | | | | | |
| | | | F-38 | | | |
| | | | F-39 | | | |
| | | | F-40 | | | |
| | | | F-41 | | | |
| | | | F-42 | | | |
| | | | F-43 | | |
| | |
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, 100,000,000 shares authorized; and 59,216,665 and 58,140,138 shares issued and outstanding at December 25, 2020 and December 27, 2019
|
| | | | 59 | | | | | | 58 | | |
Additional paid in capital
|
| | | | 659,626 | | | | | | 654,943 | | |
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
|
| | | $ | (0.42) | | | | | $ | (0.59) | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 58,864,723 | | | | | | 58,102,891 | | |
| | |
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
|
| | | | 58,077,370 | | | | | $ | 58 | | | | | $ | 395,778 | | | | | $ | 16,230 | | | | | $ | — | | | | | $ | 64 | | | | | $ | 412,130 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (34,364) | | | | | | — | | | | | | (97) | | | | | | (34,461) | | |
Foreign currency translation adjustments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (39) | | | | | | — | | | | | | (39) | | |
Capital contributions
|
| | | | 62,768 | | | | | | — | | | | | | 255,510 | | | | | | — | | | | | | — | | | | | | 132 | | | | | | 255,642 | | |
Equity-based compensation expense
|
| | | | — | | | | | | — | | | | | | 3,673 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,673 | | |
Repurchase of equity units
|
| | | | — | | | | | | — | | | | | | (18) | | | | | | — | | | | | | — | | | | | | — | | | | | | (18) | | |
Balance – December 27, 2019
|
| | | | 58,140,138 | | | | | $ | 58 | | | | | $ | 654,943 | | | | | $ | (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
|
| | | | 1,076,527 | | | | | | 1 | | | | | | (1) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance – December 25, 2020
|
| | | | 59,216,665 | | | | | $ | 59 | | | | | $ | 659,626 | | | | | $ | (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
|
| | | | 58,864,723 | | | | | | 58,102,891 | | |
Loss per share-basic and diluted
|
| | | $ | (0.42) | | | | | $ | (0.59) | | |
| | |
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
|
| | | $ | — | | | | | $ | — | | |
| | |
March 26,
2021 |
| |
December 25,
2020 |
| ||||||
Assets | | | | ||||||||||
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 48,943 | | | | | $ | 77,458 | | |
Accounts receivable, net
|
| | | | 56,313 | | | | | | 49,363 | | |
Inventories, net
|
| | | | 167,647 | | | | | | 157,099 | | |
Prepaid expenses and other current assets
|
| | | | 12,176 | | | | | | 9,650 | | |
Total current assets
|
| | | | 285,079 | | | | | | 293,570 | | |
Long-term assets: | | | | | | | | | | | | | |
Property and equipment, net
|
| | | | 20,074 | | | | | | 20,208 | | |
Goodwill
|
| | | | 559,735 | | | | | | 559,735 | | |
Other intangible assets, net
|
| | | | 606,157 | | | | | | 617,616 | | |
Other assets
|
| | | | 6,885 | | | | | | 6,409 | | |
Total assets
|
| | | $ | 1,477,930 | | | | | $ | 1,497,538 | | |
Liabilities and stockholders’ equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Current maturities of long-term debt
|
| | | $ | 6,824 | | | | | $ | 21,149 | | |
Accounts payable
|
| | | | 61,930 | | | | | | 68,941 | | |
Accrued liabilities
|
| | | | 73,023 | | | | | | 80,658 | | |
Total current liabilities
|
| | | | 141,777 | | | | | | 170,748 | | |
Long-term liabilities: | | | | | | | | | | | | | |
Long-term debt, net of current portion
|
| | | | 644,916 | | | | | | 630,864 | | |
Deferred income tax liabilities, net
|
| | | | 54,724 | | | | | | 55,518 | | |
Other liabilities
|
| | | | 23,802 | | | | | | 22,669 | | |
Total liabilities
|
| | | | 865,219 | | | | | | 879,799 | | |
Commitments and contingencies (Note 13) | | | | | | | | | | | | | |
Stockholders’ equity | | | | | | | | | | | | | |
Common Stock, $0.001 par value, 100,000,000 shares authorized; and 59,216,665 shares issued and outstanding at March 26, 2021 and December 25, 2020
|
| | | | 59 | | | | | | 59 | | |
Additional paid in capital
|
| | | | 660,686 | | | | | | 659,626 | | |
Accumulated deficit
|
| | | | (49,032) | | | | | | (43,018) | | |
Accumulated other comprehensive income
|
| | | | 704 | | | | | | 756 | | |
Company’s stockholders’ equity
|
| | | | 612,417 | | | | | | 617,423 | | |
Noncontrolling interest
|
| | | | 294 | | | | | | 316 | | |
Total stockholders’ equity
|
| | | | 612,711 | | | | | | 617,739 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 1,477,930 | | | | | $ | 1,497,538 | | |
| | |
Three Months Ended
|
| |||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||
Net sales
|
| | | $ | 220,468 | | | | | $ | 172,611 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of sales, exclusive of depreciation and amortization
|
| | | | 128,876 | | | | | | 100,390 | | |
Selling, general and administrative expenses
|
| | | | 75,357 | | | | | | 67,386 | | |
Depreciation and amortization
|
| | | | 13,712 | | | | | | 14,483 | | |
Total costs and expenses
|
| | | | 217,945 | | | | | | 182,259 | | |
Income (loss) from operations
|
| | | | 2,523 | | | | | | (9,648) | | |
Other expenses (income): | | | | | | | | | | | | | |
Interest expense
|
| | | | 9,535 | | | | | | 12,803 | | |
Other (income) expense
|
| | | | (213) | | | | | | 883 | | |
Total other expenses
|
| | | | 9,322 | | | | | | 13,686 | | |
Loss before income tax benefit
|
| | | | (6,799) | | | | | | (23,334) | | |
Income tax benefit
|
| | | | (763) | | | | | | (4,316) | | |
Net loss
|
| | | | (6,036) | | | | | | (19,018) | | |
Net loss attributable to noncontrolling interest
|
| | | | (22) | | | | | | (24) | | |
Net loss attributable to Company
|
| | | | (6,014) | | | | | | (18,994) | | |
Net loss per share, basic and diluted
|
| | | | (0.10) | | | | | | (0.33) | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 59,216,665 | | | | | | 58,140,138 | | |
| | |
Three Months Ended
|
| |||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||
Net loss
|
| | | $ | (6,036) | | | | | $ | (19,018) | | |
Other comprehensive loss, net of tax: | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | (52) | | | | | | (434) | | |
Comprehensive loss
|
| | | | (6,088) | | | | | | (19,452) | | |
Comprehensive loss attributable to noncontrolling interest
|
| | | | (22) | | | | | | (24) | | |
Comprehensive loss attributable to Company
|
| | | $ | (6,066) | | | | | $ | (19,428) | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Noncontrolling
Interest |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||||||||
| | |
Number of
Shares |
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance – December 25,
2020 |
| | | | 59,216,665 | | | | | $ | 59 | | | | | $ | 659,626 | | | | | $ | (43,018) | | | | | $ | 756 | | | | | $ | 316 | | | | | $ | 617,739 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (6,014) | | | | | | — | | | | | | (22) | | | | | | (6,036) | | |
Foreign currency translation adjustments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (52) | | | | | | — | | | | | | (52) | | |
Equity-based compensation expense
|
| | | | — | | | | | | — | | | | | | 1,060 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,060 | | |
Balance – March 26, 2021
|
| | | | 59,216,665 | | | | | $ | 59 | | | | | $ | 660,686 | | | | | $ | (49,032) | | | | | $ | 704 | | | | | $ | 294 | | | | | $ | 612,711 | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Noncontrolling
Interest |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||||||||
| | |
Number of
Shares |
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance – December 27,
2019 |
| | | | 58,140,138 | | | | | $ | 58 | | | | | $ | 654,943 | | | | | $ | (18,134) | | | | | $ | (39) | | | | | $ | 99 | | | | | $ | 636,927 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (18,994) | | | | | | — | | | | | | (24) | | | | | | (19,018) | | |
Foreign currency translation adjustments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (434) | | | | | | — | | | | | | (434) | | |
Equity-based compensation expense
|
| | | | — | | | | | | — | | | | | | 1,362 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,362 | | |
Balance – March 27, 2020
|
| | | | 58,140,138 | | | | | $ | 58 | | | | | $ | 656,305 | | | | | $ | (37,128) | | | | | $ | (473) | | | | | $ | 75 | | | | | $ | 618,837 | | |
| | |
Three Months Ended
|
| |||||||||
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (6,036) | | | | | $ | (19,018) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 13,712 | | | | | | 14,483 | | |
Amortization of debt issuance costs
|
| | | | 1,525 | | | | | | 1,525 | | |
Unrealized loss on interest rate cap
|
| | | | — | | | | | | 3 | | |
Deferred income taxes
|
| | | | (795) | | | | | | (3,778) | | |
Loss on sale and disposal of property and equipment
|
| | | | 259 | | | | | | 20 | | |
Equity-based compensation
|
| | | | 1,060 | | | | | | 1,362 | | |
Bad debt expense
|
| | | | 76 | | | | | | 322 | | |
Fair value adjustment to contingent value rights
|
| | | | 1,310 | | | | | | (300) | | |
Change in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (7,027) | | | | | | (2,413) | | |
Inventories
|
| | | | (10,548) | | | | | | 8,629 | | |
Prepaid expenses and other assets
|
| | | | (2,653) | | | | | | 1,613 | | |
Accounts payable and accrued liabilities
|
| | | | (14,750) | | | | | | (16,123) | | |
Net cash used in operating activities
|
| | | | (23,867) | | | | | | (13,675) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (2,050) | | | | | | (2,405) | | |
Receipt of payment on notes receivable
|
| | | | — | | | | | | 22 | | |
Other
|
| | | | (429) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (2,479) | | | | | | (2,383) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Payments on long-term debt
|
| | | | (1,797) | | | | | | (2,288) | | |
Proceeds from revolving credit facility
|
| | | | — | | | | | | 47,375 | | |
Payment of deferred initial public offering costs
|
| | | | (349) | | | | | | — | | |
Net cash (used in) provided by financing activities
|
| | | | (2,146) | | | | | | 45,087 | | |
Effect of exchange rate changes on cash and cash equivalents
|
| | | | (23) | | | | | | (372) | | |
Net (decrease) increase in cash and cash equivalents
|
| | | | (28,515) | | | | | | 28,657 | | |
Cash and cash equivalents – Beginning of period
|
| | | | 77,458 | | | | | | 33,177 | | |
Cash and cash equivalents – End of period
|
| | | $ | 48,943 | | | | | $ | 61,834 | | |
Supplementary cash flow information: | | | | | | | | | | | | | |
Cash payments for interest
|
| | | $ | 8,106 | | | | | $ | 11,643 | | |
Cash paid (refund) for taxes, net
|
| | | $ | 485 | | | | | $ | (10) | | |
Noncash investing and financing activities: | | | | | | | | | | | | | |
Capital expenditure in accounts payable
|
| | | $ | 67 | | | | | $ | 810 | | |
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||
Deferred revenue – beginning of period
|
| | | $ | 30,466 | | | | | $ | 23,820 | | |
Amounts billed, but not recognized
|
| | | | 6,661 | | | | | | 6,630 | | |
Recognition of revenue
|
| | | | (6,063) | | | | | | (5,603) | | |
Deferred revenue – end of period
|
| | | $ | 31,064 | | | | | $ | 24,847 | | |
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||
United States
|
| | | $ | 194,078 | | | | | $ | 154,468 | | |
International
|
| | | | 26,390 | | | | | | 18,143 | | |
Total
|
| | | $ | 220,468 | | | | | $ | 172,611 | | |
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||
Products transferred at a point in time
|
| | | $ | 214,405 | | | | | $ | 167,008 | | |
Services transferred over time
|
| | | | 6,063 | | | | | | 5,603 | | |
Total
|
| | | $ | 220,468 | | | | | $ | 172,611 | | |
| | |
March 26,
2021 |
| |
December 25,
2020 |
| ||||||
Accounts receivable
|
| | | $ | 58,692 | | | | | $ | 51,716 | | |
Allowance for doubtful accounts
|
| | | | (2,379) | | | | | | (2,353) | | |
Accounts receivable, net
|
| | | $ | 56,313 | | | | | $ | 49,363 | | |
| | |
March 26,
2021 |
| |
December 25,
2020 |
| ||||||
Raw Materials
|
| | | $ | 5,193 | | | | | $ | 11,340 | | |
Work In Process
|
| | | | 566 | | | | | | 591 | | |
Finished Goods
|
| | | | 173,043 | | | | | | 155,618 | | |
Reserve For Obsolete and Slow Moving Inventory
|
| | | | (11,155) | | | | | | (10,450) | | |
Total Inventories, net
|
| | | $ | 167,647 | | | | | $ | 157,099 | | |
| | |
Estimated
Useful Life |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| |||||||||
Customer relationships
|
| | 5 – 25 years | | | | $ | 494,762 | | | | | $ | (76,354) | | | | | $ | 418,408 | | |
Technology
|
| | 5 – 15 years | | | | | 95,078 | | | | | | (26,359) | | | | | | 68,719 | | |
Trade names – definite
|
| | 2 – 10 years | | | | | 54,360 | | | | | | (11,894) | | | | | | 42,466 | | |
Trade names – indefinite
|
| | indefinite | | | | | 76,564 | | | | | | — | | | | | | 76,564 | | |
Total intangible assets
|
| | | | | | $ | 720,764 | | | | | $ | (114,607) | | | | | $ | 606,157 | | |
| | |
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 | | |
|
Remainder of 2021
|
| | | $ | 35,504 | | |
|
2022
|
| | | | 46,331 | | |
|
2023
|
| | | | 45,193 | | |
|
2024
|
| | | | 38,691 | | |
|
2025
|
| | | | 31,075 | | |
|
2026 and thereafter
|
| | | | 332,799 | | |
|
Total
|
| | | $ | 529,593 | | |
Instrument
|
| |
Maturity Date
|
| |
Amount
|
| |
Interest Rate
|
| |
Effective rate
(as of March 26, 2021) |
| |||||||||
Credit Agreement (as amended) | | | | | | | | | | | | | | | | | | | | | | |
Initial Term Loan
|
| | | | 8/4/2024 | | | | | | 292,355 | | | |
LIBOR plus 4.00%
|
| | | | 4.25% | | |
Incremental Term Loan
|
| | | | 8/4/2024 | | | | | | 390,000 | | | |
LIBOR plus 4.75%
|
| | | | 5.00% | | |
Revolving Credit Facility
|
| | | | 8/4/2022 | | | | | | 60,000 | | | |
LIBOR plus 4.00%
|
| | | | 4.25% | | |
Credit Agreement (at origination) | | | | | | | | | | | | | | | | | | | | | | |
Initial Term Loan
|
| | | | 8/4/2024 | | | | | | 265,000 | | | |
LIBOR plus 5.25%
|
| | | | | | |
Revolving Credit Facility
|
| | | | 8/4/2022 | | | | | | 50,000 | | | |
LIBOR plus 5.25%
|
| | | | | | |
|
Remainder of 2021
|
| | | $ | 6,824 | | |
|
2022
|
| | | | 6,824 | | |
|
2023
|
| | | | 6,824 | | |
|
2024
|
| | | | 650,430 | | |
|
Total future maturities of long-term debt
|
| | | | 670,902 | | |
|
Unamortized debt issuance costs
|
| | | | (19,162) | | |
|
Total indebtedness
|
| | | $ | 651,740 | | |
|
Less: Current maturities of long-term debt
|
| | | | 6,824 | | |
|
Long-term debt
|
| | | $ | 644,916 | | |
|
Remainder of 2021
|
| | | $ | 4,576 | | |
|
2022
|
| | | | 5,951 | | |
|
2023
|
| | | | 5,735 | | |
|
2024
|
| | | | 3,391 | | |
|
Total
|
| | | $ | 19,653 | | |
| | |
As of March 26, 2021
|
| |
As of December 25, 2020
|
| ||||||||||||||||||
|
Carrying
Amount |
| |
Fair
Value |
| |
Carrying
Amount |
| |
Fair
Value |
| ||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes receivable, net
|
| | | | 5,211 | | | | | | 5,291 | | | | | $ | 5,115 | | | | | $ | 5,494 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Initial Term Loan
|
| | | | 285,777 | | | | | | 269,345 | | | | | | 286,508 | | | | | | 267,169 | | |
Incremental Term Loan
|
| | | $ | 385,125 | | | | | $ | 381,755 | | | | | $ | 386,100 | | | | | $ | 384,652 | | |
| | |
Fair value at
March 26, 2021 |
| |
Valuation
Technique |
| |
Unobservable
Input |
| |
Volatility
|
| ||||||||||||
Contingent Value Rights
|
| | | $ | 5,310 | | | | | | OPM | | | | | | Volatility | | | | | | 57.3% | | |
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||
CVR fair value – beginning of period
|
| | | $ | 4,000 | | | | | $ | 3,200 | | |
Fair value adjustments
|
| | | | 1,310 | | | | | | (300) | | |
CVR fair value – end of period
|
| | | $ | 5,310 | | | | | $ | 2,900 | | |
| | |
March 26,
2021 |
| |
December 25,
2020 |
| ||||||
Payroll, vacation, and bonus accruals
|
| | | $ | 17,593 | | | | | $ | 29,700 | | |
Deferred revenue
|
| | | | 19,154 | | | | | | 18,654 | | |
Warranty reserve
|
| | | | 14,002 | | | | | | 11,767 | | |
Interest payable
|
| | | | 7,480 | | | | | | 7,576 | | |
Sales return allowance
|
| | | | 4,071 | | | | | | 3,741 | | |
Customer rebate program
|
| | | | 1,966 | | | | | | 2,140 | | |
IBNR
|
| | | | 1,500 | | | | | | 1,215 | | |
Taxes
|
| | | | 1,363 | | | | | | 752 | | |
Other accrued liabilities
|
| | | | 5,894 | | | | | | 5,113 | | |
Total accrued liabilities
|
| | | $ | 73,023 | | | | | $ | 80,658 | | |
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||
Accrued warranty – beginning of period
|
| | | $ | 16,523 | | | | | $ | 19,989 | | |
Warranty claims
|
| | | | (4,002) | | | | | | (2,954) | | |
Warranty provisions
|
| | | | 5,707 | | | | | | 2,629 | | |
Accrued warranty – end of period
|
| | | $ | 18,228 | | | | | $ | 19,664 | | |
| | |
March 26, 2021
|
|
Expected holding period
|
| |
4 years
|
|
Risk-free rate of return
|
| |
—%
|
|
Expected dividend yield
|
| |
—%
|
|
Expected volatility
|
| |
57.3%
|
|
Discount for lack of marketability
|
| |
10%
|
|
| | |
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 25, 2020
|
| | | | 70,739 | | | | | $ | 0.34 | | | | | | 19,822 | | | | | $ | 0.06 | | |
Units granted
|
| | | | 1,200 | | | | | | 0.51 | | | | | | — | | | | | | — | | |
Units forfeited
|
| | | | 3,010 | | | | | | 0.39 | | | | | | — | | | | | | — | | |
Outstanding units-March 26, 2021
|
| | | | 68,929 | | | | | $ | 0.34 | | | | | | 19,822 | | | | | $ | 0.06 | | |
Vested units-March 26, 2021
|
| | | | 31,550 | | | | | $ | 0.31 | | | | | | — | | | | | | — | | |
Nonvested units-March 26, 2021
|
| | | | 37,379 | | | | | $ | 0.37 | | | | | | 19,822 | | | | | $ | 0.06 | | |
| | |
March 26,
2021 |
| |
March 27,
2020 |
| ||||||
Net loss attributable to Company
|
| | | $ | (6,014) | | | | | $ | (18,994) | | |
Weighted-average shares outstanding-basic and diluted
|
| | | | 59,216,665 | | | | | | 58,140,138 | | |
Loss per share-basic and diluted
|
| | | $ | (0.10) | | | | | $ | (0.33) | | |
|
Morgan Stanley
|
| |
J.P. Morgan
|
| |
Jefferies
|
| |
UBS Investment Bank
|
|