| Delaware (State or Other Jurisdiction of Incorporation or Organization) | | | 3089 (Primary Standard Industrial Classification Code Number) | | | 83-2797583 (I.R.S. Employer Identification Number) | |
| John C. Kennedy, Esq. Paul, Weiss, Rifkind, Wharton & Garrison LLP 1285 Avenue of the Americas New York, New York 10019-6064 (212) 373-3000 | | | Ian D. Schuman, Esq. Erika Weinberg, Esq. Latham & Watkins LLP 885 Third Avenue New York, New York 10022-4834 (212) 906-1200 | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ | | | Smaller reporting company ☐ | |
| | | | Emerging growth company ☒ | |
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Title of each Class of Securities to be Registered | | | | Proposed Maximum Aggregate Offering Price(1)(2) | | | | Amount of Registration Fee(3) | | | | | Amount to be Registered(1) | | | | Proposed Maximum Offering Price Per Share(1)(2) | | | | Proposed Maximum Aggregate Offering Price(1)(2) | | | | Amount of Registration Fee(3) | | ||||||||||||||||||
Common Stock, par value $0.0001 per share | | | | | $ | 100,000,000.00 | | | | | | $ | 10,910.00 | | | | | | | | 23,000,000 | | | | | | $ | 21.00 | | | | | | $ | 483,000,000 | | | | | | $ | 52,695 | | |
| | | Per Share | | | Total | | ||||||
Public offering price | | | | $ | | | | | $ | | | ||
Underwriting discounts and commissions(1) | | | | $ | | | | | $ | | | ||
Proceeds to us, before expenses | | | | $ | | | | | $ | | | |
| Barclays | | | BofA Securities | | | Morgan Stanley | | | Goldman Sachs & Co. LLC | |
| Nomura | | | William Blair | |
| Baird | | | KeyBanc Capital Markets | | | Truist Securities | |
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| | | Fiscal Quarter Ended | | |||||||||||||||
(in millions) | | | April 3, 2021 (estimated low) | | | April 3, 2021 (estimated high) | | | March 28, 2020 (actual) | | |||||||||
Net sales | | | | $ | 143.0 | | | | | $ | 150.0 | | | | | $ | 51.1 | | |
| | Predecessor | | | | Successor(1) | | | Predecessor | | | | Successor(1) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Year ended December 31, | | Period of January 1, 2018 through December 18, | | | | Period of December 19, 2018 through December 31, | | Year ended December 31, | | | Year ended December 31, | | Period of January 1, 2018 through December 18, | | | | Period of December 19, 2018 through December 31, | | Year ended December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2016 (unaudited) | | 2017 (unaudited) | | 2018 (unaudited) | | | | 2018 (unaudited) | | 2019(2) | | 2020(2) | | | 2016 (unaudited) | | 2017 (unaudited) | | 2018 (unaudited) | | | | 2018 (unaudited) | | 2019(2) | | 2020(2) | | ||||||||||||||||||||||||||||||||||||||||||||||
Net sales | | | $ | 247,496 | | | | $ | 265,247 | | | | $ | 285,838 | | | | | | $ | 1,374 | | | | $ | 317,975 | | | | $ | 403,389 | | | | | $ | 247,496 | | | | $ | 265,247 | | | | $ | 285,838 | | | | | | $ | 1,374 | | | | $ | 317,975 | | | | $ | 403,389 | | | ||||||||||
Cost of sales | | | | 168,021 | | | | | 178,761 | | | | | 190,834 | | | | | | | 2,881 | | | | | 219,819 | | | | | 260,616 | | | | | | 168,021 | | | | | 178,761 | | | | | 190,834 | | | | | | | 2,881 | | | | | 219,819 | | | | | 260,616 | | | ||||||||||
Gross profit | | | | 79,475 | | | | | 86,486 | | | | | 95,004 | | | | | | | (1,507) | | | | | 98,156 | | | | | 142,773 | | | | | | 79,475 | | | | | 86,486 | | | | | 95,004 | | | | | | | (1,507) | | | | | 98,156 | | | | | 142,773 | | | ||||||||||
Selling, general and administrative expense | | | | 47,268 | | | | | 43,931 | | | | | 67,466 | | | | | | | 2,689 | | | | | 57,388 | | | | | 85,527 | | | | | | 47,268 | | | | | 43,931 | | | | | 67,466 | | | | | | | 2,689 | | | | | 57,388 | | | | | 85,527 | | | ||||||||||
Amortization | | | | 8,990 | | | | | 8,288 | | | | | 7,992 | | | | | | | 1,068 | | | | | 15,643 | | | | | 17,347 | | | | | | 8,990 | | | | | 8,288 | | | | | 7,992 | | | | | | | 1,068 | | | | | 15,643 | | | | | 17,347 | | | ||||||||||
Income (loss) from operations | | | | 23,217 | | | | | 34,267 | | | | | 19,546 | | | | | | | (5,264) | | | | | 25,125 | | | | | 39,899 | | | | | | 23,217 | | | | | 34,267 | | | | | 19,546 | | | | | | | (5,264) | | | | | 25,125 | | | | | 39,899 | | | ||||||||||
Other expense (income): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Interest expense | | | | 14,550 | | | | | 14,143 | | | | | 11,116 | | | | | | | 664 | | | | | 22,639 | | | | | 18,251 | | | | | | 14,550 | | | | | 14,143 | | | | | 11,116 | | | | | | | 664 | | | | | 22,639 | | | | | 18,251 | | | ||||||||||
Other expense (income), net | | | | 47 | | | | | (1,596) | | | | | 2,312 | | | | | | | 85 | | | | | (300) | | | | | (1,111) | | | | | | 47 | | | | | (1,596) | | | | | 2,312 | | | | | | | 85 | | | | | (300) | | | | | (1,111) | | | ||||||||||
Total other expense (income), net | | | | 14,597 | | | | | 12,547 | | ��� | | | | 13,428 | | | | | | | 749 | | | | | 22,339 | | | | | 17,140 | | | | | | 14,597 | | | | | 12,547 | | | | | 13,428 | | | | | | | 749 | | | | | 22,339 | | | | | 17,140 | | | |||||||||
Income (loss) before income taxes | | | | 8,620 | | | | | 21,720 | | | | | 6,118 | | | | | | | (6,013) | | | | | 2,786 | | | | | 22,759 | | | | | | 8,620 | | | | | 21,720 | | | | | 6,118 | | | | | | | (6,013) | | | | | 2,786 | | | | | 22,759 | | | ||||||||||
Income tax (benefit) expense | | | | 5,720 | | | | | (13,516) | | | | | 4,229 | | | | | | | (981) | | | | | (4,671) | | | | | 6,776 | | | | | | 5,720 | | | | | (13,516) | | | | | 4,229 | | | | | | | (981) | | | | | (4,671) | | | | | 6,776 | | | ||||||||||
Net income (loss) | | | $ | 2,900 | | | | $ | 35,236 | | | | $ | 1,889 | | | | | | $ | (5,032) | | | | $ | 7,457 | | | | $ | 15,983 | | | | | $ | 2,900 | | | | $ | 35,236 | | | | $ | 1,889 | | | | | | $ | (5,032) | | | | $ | 7,457 | | | | $ | 15,983 | | | ||||||||||
Net income (loss) per share attributable to common stockholders: (3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Basic | | | | | | | | | | | | | | | | | | | | $ | (5,032.00) | | | | $ | 7,457.00 | | | | $ | 15,064.09 | | | |||||||||||||||||||||||||||||||||||||||||||
Diluted | | | | | | | | | | | | | | | | | | | | $ | (5,032.00) | | | | $ | 7,457.00 | | | | $ | 15,064.09 | | | |||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | | | | | | | | | | | | | | | | | | | | $ | (0.05) | | | | $ | 0.07 | | | | $ | 0.14 | | | |||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding: (3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | | | | | | | | | | | | | | | | | | | | | 109,673,709 | | | | | 109,673,709 | | | | | 116,469,884 | | |
| | | Predecessor | | | | Successor(1) | | |||||||||||||||||||||
| | | Year ended December 31, | | | Period of January 1, 2018 through December 18, | | | | Period of December 19, 2018 through December 31, | | | Year ended December 31, | | |||||||||||||||
| | | 2016 (unaudited) | | | 2017 (unaudited) | | | 2018 (unaudited) | | | | 2018 (unaudited) | | | 2019(2) | | | 2020(2) | | |||||||||
Weighted-average common shares outstanding:(3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | | | | | | | | | | | 1,000 | | | | | | 1,000 | | | | | | 1,061 | | |
Diluted | | | | | | | | | | | | | | | 1,000 | | | | | | 1,000 | | | | | | 1,061 | | |
Pro forma net income per share attributable to common stockholders:(4) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pro forma weighted-average common shares outstanding:(4) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Predecessor | | | | Successor(1) | | |||||||||||||||
| | | Year ended December 31, | | | Period of January 1, 2018 through December 18, | | | | Period of December 19, 2018 through December 31, | | | Year ended December 31, | | |||||||||
| | | 2016 (unaudited) | | | 2017 (unaudited) | | | 2018 (unaudited) | | | | 2018 (unaudited) | | | 2019(2) | | | 2020(2) | | |||
Pro forma net loss per share attributable to common stockholders:(4) | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted | | | | | | | | | | | | | | | | | | | | $ | (0.31) | | |
Pro forma weighted- average common shares outstanding:(4) | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted | | | | | | | | | | | | | | | | | | | | | 121,279,040 | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Net cash provided by operating activities | | | | $ | 35,655 | | | | | $ | 63,161 | | |
Net cash used in investing activities | | | | | (27,083) | | | | | | (115,805) | | |
Net cash provided by financing activities | | | | | 16,551 | | | | | | 54,302 | | |
| | Predecessor | | | | Successor(1) | | | Predecessor | | | | Successor(1) | | ||||||||||||||||||||||||||
| | Year ended December 31, | | Period of January 1, 2018 through December 18, | | | | Period of December 19, 2018 through December 31, | | Year ended December 31, | | | Year ended December 31, | | Period of January 1, 2018 through December 18, | | | | Period of December 19, 2018 through December 31, | | Year ended December 31, | | ||||||||||||||||||
| | 2016 | | 2017 | | 2018 | | | | 2018 | | 2019(2) | | 2020(2) | | | 2016 | | 2017 | | 2018 | | | | 2018 | | 2019(2) | | 2020(2) | | ||||||||||
Net income margin(5) | | 1.2% | | 13.3% | | 0.7% | | | | (366.2)% | | 2.3% | | 4.0% | | | 1.2% | | 13.3% | | 0.7% | | | | (366.2)% | | 2.3% | | 4.0% | | ||||||||||
Adjusted EBITDA(6) | | $39,063 | | $47,252 | | $57,324 | | | | $(3,185) | | $61,050 | | $83,836 | | |||||||||||||||||||||||||
Adjusted EBITDA margin(7 ) | | 15.8% | | 17.8% | | 20.1% | | | | (231.8)% | | 19.2% | | 20.8% | | |||||||||||||||||||||||||
Acquisition Adjusted EBITDA(6 ) | | | | | | | | | | | | | | $97,046 | | |||||||||||||||||||||||||
Adjusted EBITDA(6) | | $39,063 | | $47,252 | | $57,324 | | | | $(3,185) | | $61,050 | | $83,836 | | |||||||||||||||||||||||||
Adjusted EBITDA margin (7) | | 15.8% | | 17.8% | | 20.1% | | | | (231.8)% | | 19.2% | | 20.8% | |
| | | As of December 31, 2020 | | |||||||||
| | | Actual | | | As Further Adjusted(8) | | ||||||
Cash | | | | $ | 59,310 | | | | | $ | 99,181 | | |
Working capital(9) | | | | | 73,389 | | | | | | 104,295 | | |
Total assets | | | | | 646,676 | | | | | | 685,506 | | |
Total debt(10) | | | | | 286,434 | | | | | | 242,637 | | |
Total liabilities | | | | | 430,005 | | | | | | 385,168 | | |
Total stockholders’ equity | | | | | 216,671 | | | | | | 300,338 | | |
| | | As of December 31, 2020 | | |||||||||
| | | Actual | | | As Further Adjusted(8) | | ||||||
Cash | | | | $ | 59,310 | | | | | $ | | | |
Working capital(9) | | | | | 73,389 | | | | | | | | |
Total assets | | | | | 646,676 | | | | | | | | |
Total debt(10) | | | | | 286,434 | | | | | | | | |
Total liabilities | | | | | 430,005 | | | | | | | | |
Total stockholders’ equity | | | | | 216,671 | | | | | | | | |
| | | Predecessor | | | | Successor(2) | | ||||||||||||||||||||||||||||||
| | | Year ended December 31, | | | Period of January 1, 2018 through December 18, | | | | Period of December 19, 2018 through December 31, | | | Year ended December 31, | | ||||||||||||||||||||||||
| | | 2016 (unaudited) | | | 2017 (unaudited) | | | 2018 (unaudited) | | | | 2018 (unaudited) | | | 2019(1) | | | 2020(1) | | ||||||||||||||||||
Net income | | | | $ | 2,900 | | | | | $ | 35,236 | | | | | $ | 1,889 | | | | | | $ | (5,032) | | | | | $ | 7,457 | | | | | $ | 15,983 | | |
Depreciation and amortization | | | | | 14,162 | | | | | | 14,587 | | | | | | 14,767 | | | | | | | 1,228 | | | | | | 21,659 | | | | | | 25,365 | | |
Interest expense | | | | | 14,550 | | | | | | 14,143 | | | | | | 11,116 | | | | | | | 664 | | | | | | 22,639 | | | | | | 18,251 | | |
Income tax (benefit) expense | | | | | 5,720 | | | | | | (13,516) | | | | | | 4,229 | | | | | | | (981) | | | | | | (4,671) | | | | | | 6,776 | | |
| | Predecessor | | | | Successor(2) | | | Predecessor | | | | Successor(2) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Year ended December 31, | | Period of January 1, 2018 through December 18, | | | | Period of December 19, 2018 through December 31, | | Year ended December 31, | | | Year ended December 31, | | Period of January 1, 2018 through December 18, | | | | Period of December 19, 2018 through December 31, | | Year ended December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2016 (unaudited) | | 2017 (unaudited) | | 2018 (unaudited) | | | | 2018 (unaudited) | | 2019(1) | | 2020(1) | | | 2016 (unaudited) | | 2017 (unaudited) | | 2018 (unaudited) | | | | 2018 (unaudited) | | 2019(1) | | 2020(1) | | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | | | $ | 2,900 | | | | $ | 35,236 | | | | $ | 1,889 | | | | | | $ | (5,032) | | | | $ | 7,457 | | | | $ | 15,983 | | | |||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | | | | 14,162 | | | | | 14,587 | | | | | 14,767 | | | | | | | 1,228 | | | | | 21,659 | | | | | 25,365 | | | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | | | | 14,550 | | | | | 14,143 | | | | | 11,116 | | | | | | | 664 | | | | | 22,639 | | | | | 18,251 | | | |||||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | | | | 5,720 | | | | | (13,516) | | | | | 4,229 | | | | | | | (981) | | | | | (4,671) | | | | | 6,776 | | | |||||||||||||||||||||||||||||||||||||||||||
Loss (gain) on sale and disposal of property and equipment | | | | 233 | | | | | (204) | | | | | 914 | | | | | | | 34 | | | | | 680 | | | | | 332 | | | | | | 233 | | | | | (204) | | | | | 914 | | | | | | | 34 | | | | | 680 | | | | | 332 | | | ||||||||||
Restructuring charges(a) | | | | 609 | | | | | 176 | | | | | 1,271 | | | | | | | 47 | | | | | 980 | | | | | 1,265 | | | | | | 609 | | | | | 176 | | | | | 1,271 | | | | | | | 47 | | | | | 980 | | | | | 1,265 | | | ||||||||||
Management fees(b) | | | | 500 | | | | | 500 | | | | | 482 | | | | | | | 18 | | | | | 500 | | | | | — | | | | | | 500 | | | | | 500 | | | | | 482 | | | | | | | 18 | | | | | 500 | | | | | — | | | ||||||||||
Stock-based compensation expense | | | | 9 | | | | | 9 | | | | | (18) | | | | | | | — | | | | | 808 | | | | | 1,827 | | | | | | 9 | | | | | 9 | | | | | (18) | | | | | | | — | | | | | 808 | | | | | 1,827 | | | ||||||||||
Other expense (income), net (c) | | | | 47 | | | | | (1,596) | | | | | 2,312 | | | | | | | 85 | | | | | (300) | | | | | (1,111) | | | | | | 47 | | | | | (1,596) | | | | | 2,312 | | | | | | | 85 | | | | | (300) | | | | | (1,111) | | | ||||||||||
Other non-cash items(d) | | | | — | | | | | — | | | | | 1.050 | | | | | | | 39 | | | | | 6,331 | | | | | 1,338 | | | | | | — | | | | | — | | | | | 1.050 | | | | | | | 39 | | | | | 6,331 | | | | | 1,338 | | | ||||||||||
Strategic initiative costs(e) | | | | — | | | | | — | | | | | — | | | | | | | — | | | | | 964 | | | | | 6,264 | | | | | | — | | | | | — | | | | | — | | | | | | | — | | | | | 964 | | | | | 6,264 | | | ||||||||||
Acquisition and integration related costs (f) | | | | 592 | | | | | 239 | | | | | 19,135 | | | | | | | 707 | | | | | 3,612 | | | | | 5,497 | | | | | | 592 | | | | | 239 | | | | | 19,135 | | | | | | | 707 | | | | | 3,612 | | | | | 5,497 | | | ||||||||||
Other(g) | | | | (259) | | | | | (2,322) | | | | | 177 | | | | | | | 6 | | | | | 391 | | | | | 1,007 | | | | | | (259) | | | | | (2,322) | | | | | 177 | | | | | | | 6 | | | | | 391 | | | | | 1,007 | | | ||||||||||
IPO costs(h) | | | | — | | | | | — | | | | | — | | | | | | | — | | | | | — | | | | | 1,731 | | | | | | — | | | | | — | | | | | — | | | | | | | — | | | | | — | | | | | 1,731 | | | ||||||||||
COVID-19-related expenses (income) (i) | | | | — | | | | | — | | | | | — | | | | | | | — | | | | | — | | | | | (689) | | | | | | — | | | | | — | | | | | — | | | | | | | — | | | | | — | | | | | (689) | | | ||||||||||
Adjusted EBITDA (unaudited) | | | $ | 39,063 | | | | $ | 47,252 | | | | $ | 57,324 | | | | | | $ | (3,185) | | | | $ | 61,050 | | | | $ | 83,836 | | | | | $ | 39,063 | | | | $ | 47,252 | | | | $ | 57,324 | | | | | | $ | (3,185) | | | | $ | 61,050 | | | | $ | 83,836 | | | ||||||||||
Acqusition EBITDA adjustments (j) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 13,210 | | | |||||||||||||||||||||||||||||||||||||||||||
Acquisition Adjusted EBITDA (unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 97,046 | | | |||||||||||||||||||||||||||||||||||||||||||
Net Sales | | | $ | 247,496 | | | | $ | 265,247 | | | | $ | 285,838 | | | | | | $ | 1,374 | | | | $ | 317,975 | | | | $ | 403,389 | | | | | $ | 247,496 | | | | $ | 265,247 | | | | $ | 285,838 | | | | | | $ | 1,374 | | | | $ | 317,975 | | | | $ | 403,389 | | | ||||||||||
Net income margin | | | | 1.2% | | | | | 13.3% | | | | | 0.7% | | | | | | | (366.2)% | | | | | 2.3% | | | | | 4.0% | | | |||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin (unaudited) | | | | 15.8% | | | | | 17.8% | | | | | 20.1% | | | | | | | (231.8)% | | | | | 19.2% | | | | | 20.8% | | | | | | 15.8% | | | | | 17.8% | | | | | 20.1% | | | | | | | (231.8)% | | | | | 19.2% | | | | | 20.8% | | | ||||||||||
| | | | | | | | | | | | | | | |
| | As of December 31, 2020 | | | As of December 31, 2020 | | ||||||||||||||||||||||||||||||||
| | Actual | | As Adjusted | | As Further Adjusted | | | Actual | | As Adjusted | | As Further Adjusted | | ||||||||||||||||||||||||
| | (in thousands, except share and per share data) | | | (in thousands, except share and per share data) | | ||||||||||||||||||||||||||||||||
Cash | | | $ | 59,310 | | | | $ | | | | $ | | | | | $ | 59,310 | | | | $ | 74,180 | | | | $ | 99,181 | | | ||||||||
Long-term debt, including current portion: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Amended Term Loan(1) | | | | 221,496 | | | | | | | | | | | | | | | | 221,496 | | | | | 395,337 | | | | | 242,637 | | | ||||||
Revolving Credit Facility(2) | | | | — | | | | | | | | | | | | | | | | — | | | | | 16,000 | | | | | — | | | ||||||
Parent Note(3) | | | | 64,938 | | | | | | | | | | | | | | | | 64,938 | | | | | — | | | | | — | | | ||||||
Total debt, net of discount and debt issuance costs | | | $ | 286,434 | | | | $ | | | | | $ | | | | | | 286,434 | | | | | 411,337 | | | | | 242,637 | | | |||||||
Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Preferred stock, $0.0001 par value; no shares authorized, issued or outstanding, actual or as adjusted; shares authorized, no shares issued or outstanding, as further adjusted | | | | | | | | | | | | | | | | | ||||||||||||||||||||||
Common stock, $0.0001 par value; 1,000 shares authorized, issued and outstanding, actual; shares authorized, shares issued and outstanding, as adjusted; shares authorized, shares issued and outstanding, as further adjusted | | | | | | | | | | | | | | | | | ||||||||||||||||||||||
Preferred stock, $0.0001 par value; no shares authorized, issued or outstanding, actual or as adjusted; 100,000,000 shares authorized, no shares issued or outstanding, as further adjusted | | | | — | | | | | — | | | | | — | | | ||||||||||||||||||||||
Common stock, $0.0001 par value; 500,000,000 shares authorized, 109,673,709 issued and outstanding, actual and as adjusted; 900,000,000 shares authorized, 120,426,397 shares issued and outstanding, as further adjusted | | | | 11 | | | | | 11 | | | | | 12 | | | ||||||||||||||||||||||
Additional paid-in capital(4) | | | | 200,552 | | | | | | | | | | | | | | | | 200,541 | | | | | 156,270 | | | | | 349,969 | | | ||||||
Retained earnings(4) | | | | 13,765 | | | | | | | | | | | | | ||||||||||||||||||||||
Retained earnings (accumulated deficit)(4) | | | | 13,765 | | | | | (51,997) | | | | | (51,997) | | | ||||||||||||||||||||||
Accumulated other comprehensive income | | | | 2,354 | | | | | | | | | | | | | | | | 2,354 | | | | | 2,354 | | | | | 2,354 | | | ||||||
Total stockholders’ equity | | | | 216,671 | | | | | | | | | | | | | | | | 216,671 | | | | | 106,638 | | | | | 300,338 | | | ||||||
Total capitalization | | | $ | 503,105 | | | | $ | | | | | $ | | | | | | $ | 503,105 | | | | $ | 517,975 | | | | $ | 542,975 | | |
| Assumed initial public offering price per share | | | | | | $ | 20.00 | | | ||||
| Historical net tangible book value (deficit) per share as of December 31, 2020 | | | | $ | (1.73) | | | | | | | | |
| Increase in as adjusted net tangible book value (deficit) per share attributable to the Reorganization, the 2021 Financing Transactions and our draw of $16.0 million on our Revolving Credit Facility subsequent to December 31, 2020 | | | | | (1.00) | | | | | | | | |
| As adjusted net tangible book value per share before this offering | | | | | (2.73) | | | | | | | | |
| Increase in as adjusted net tangible book value per share attributable to new investors purchasing common stock in this offering | | | | | 1.86 | ��� | | | | | | | |
| As further adjusted net tangible book value per share immediately after this offering | | | | | | | | | | | (0.87) | | |
| Dilution per share to new investors purchasing common stock in this offering | | | | | | | | | | $ | 20.87 | | |
| | Shares Purchased | | Total Consideration | | Average Price | | | Shares Purchased | | Total Consideration | | Average Price | | ||||||||||||||||||||||||||||||||||||||||||||||||
| | Number | | Percentage | | Amount | | Percentage | | Per Share | | | Number | | Percentage | | Amount | | Percentage | | Per Share | | ||||||||||||||||||||||||||||||||||||||||
Existing stockholders | | | | 1,000 | | | | | % | | | | $ | 200,552,000 | | | | | % | | | | $ | 200,552.00 | | | | | | 100,426,397 | | | | | 83.4% | | | | $ | 200,552,000 | | | | | 33.4% | | | | $ | 2.00 | | | ||||||||||
New investors | | | | | | | | | | | | | | | | | | | | | | | $ | | | | | | 20,000,000 | | | | | 16.6 | | | | | 400,000,000 | | | | | 66.6 | | | | $ | 20.00 | | | |||||||||||
Total | | | | | | | | | 100.0% | | | | $ | | | | | 100.0% | | | | | | | | | | | 120,426,397 | | | | | 100.0% | | | | $ | 600,552,000 | | | | | 100.0% | | | | | | | |
| | Predecessor | | | | Successor(1) | | | Predecessor | | | | Successor(1) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Year ended December 31, | | Period of January 1, 2018 through December 18, | | | | Period of December 19, 2018 through December 31, | | Year ended December 31, | | | Year ended December 31, | | Period of January 1, 2018 through December 18, | | | | Period of December 19, 2018 through December 31, | | Year ended December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2016 (unaudited) | | 2017 (unaudited) | | 2018 (unaudited) | | | | 2018 (unaudited) | | 2019(2) | | 2020(2) | | | 2016 (unaudited) | | 2017 (unaudited) | | 2018 (unaudited) | | | | 2018 (unaudited) | | 2019(2) | | 2020(2) | | ||||||||||||||||||||||||||||||||||||||||||||||
Net sales | | | $ | 247,496 | | | | $ | 265,247 | | | | $ | 285,838 | | | | | | $ | 1,374 | | | | $ | 317,975 | | | | $ | 403,389 | | | | | $ | 247,496 | | | | $ | 265,247 | | | | $ | 285,838 | | | | | | $ | 1,374 | | | | $ | 317,975 | | | | $ | 403,389 | | | ||||||||||
Cost of sales | | | | 168,021 | | | | | 178,761 | | | | | 190,834 | | | | | | | 2,881 | | | | | 219,819 | | | | | 260,616 | | | | | | 168,021 | | | | | 178,761 | | | | | 190,834 | | | | | | | 2,881 | | | | | 219,819 | | | | | 260,616 | | | ||||||||||
Gross profit | | | | 79,475 | | | | | 86,486 | | | | | 95,004 | | | | | | | (1,507) | | | | | 98,156 | | | | | 142,773 | | | | | | 79,475 | | | | | 86,486 | | | | | 95,004 | | | | | | | (1,507) | | | | | 98,156 | | | | | 142,773 | | | ||||||||||
Selling, general and administrative expense | | | | 47,268 | | | | | 43,931 | | | | | 67,466 | | | | | | | 2,689 | | | | | 57,388 | | | | | 85,527 | | | | | | 47,268 | | | | | 43,931 | | | | | 67,466 | | | | | | | 2,689 | | | | | 57,388 | | | | | 85,527 | | | ||||||||||
Amortization | | | | 8,990 | | | | | 8,288 | | | | | 7,992 | | | | | | | 1,068 | | | | | 15,643 | | | | | 17,347 | | | | | | 8,990 | | | | | 8,288 | | | | | 7,992 | | | | | | | 1,068 | | | | | 15,643 | | | | | 17,347 | | | ||||||||||
Income (loss) from operations | | | | 23,217 | | | | | 34,267 | | | | | 19,546 | | | | | | | (5,264) | | | | | 25,125 | | | | | 39,899 | | | | | | 23,217 | | | | | 34,267 | | | | | 19,546 | | | | | | | (5,264) | | | | | 25,125 | | | | | 39,899 | | | ||||||||||
Other expense (income): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Interest expense | | | | 14,550 | | | | | 14,143 | | | | | 11,116 | | | | | | | 664 | | | | | 22,639 | | | | | 18,251 | | | | | | 14,550 | | | | | 14,143 | | | | | 11,116 | | | | | | | 664 | | | | | 22,639 | | | | | 18,251 | | | ||||||||||
Other expense (income), net | | | | 47 | | | | | (1,596) | | | | | 2,312 | | | | | | | 85 | | | | | (300) | | | | | (1,111) | | | | | | 47 | | | | | (1,596) | | | | | 2,312 | | | | | | | 85 | | | | | (300) | | | | | (1,111) | | | ||||||||||
Total other expense (income), net | | | | 14,597 | | | | | 12,547 | | | | | 13,428 | | | | | | | 749 | | | | | 22,339 | | | | | 17,140 | | | | | | 14,597 | | | | | 12,547 | | | | | 13,428 | | | | | | | 749 | | | | | 22,339 | | | | | 17,140 | | | ||||||||||
Income (loss) before income taxes | | | | 8,620 | | | | | 21,720 | | | | | 6,118 | | | | | | | (6,013) | | | | | 2,786 | | | | | 22,759 | | | | | | 8,620 | | | | | 21,720 | | | | | 6,118 | | | | | | | (6,013) | | | | | 2,786 | | | | | 22,759 | | | ||||||||||
Income tax (benefit) expense | | | | 5,720 | | | | | (13,516) | | | | | 4,229 | | | | | | | (981) | | | | | (4,671) | | | | | 6,776 | | | | | | 5,720 | | | | | (13,516) | | | | | 4,229 | | | | | | | (981) | | | | | (4,671) | | | | | 6,776 | | | ||||||||||
Net income (loss) | | | $ | 2,900 | | | | $ | 35,236 | | | | $ | 1,889 | | | | | | $ | (5,032) | | | | $ | 7,457 | | | | $ | 15,983 | | | | | $ | 2,900 | | | | $ | 35,236 | | | | $ | 1,889 | | | | | | $ | (5,032) | | | | $ | 7,457 | | | | $ | 15,983 | | | ||||||||||
Net income (loss) per share attributable to common stockholders: (3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Basic | | | | | | | | | | | | | | | | | | | | $ | (5,032.00) | | | | $ | 7,457.00 | | | | $ | 15,064.09 | | | |||||||||||||||||||||||||||||||||||||||||||
Diluted | | | | | | | | | | | | | | | | | | | | $ | (5,032.00) | | | | $ | 7,457.00 | | | | $ | 15,064.09 | | | |||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | | | | | | | | | | | | | | | | | | | | $ | (0.05) | | | | $ | 0.07 | | | | $ | 0.14 | | | |||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding: (3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Basic | | | | | | | | | | | | | | | | | | | | | 1,000 | | | | | 1,000 | | | | | 1,061 | | | |||||||||||||||||||||||||||||||||||||||||||
Diluted | | | | | | | | | | | | | | | | | | | | | 1,000 | | | | | 1,000 | | | | | 1,061 | | | |||||||||||||||||||||||||||||||||||||||||||
Pro forma net income per share attributable to common stockholders: (4) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Basic | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | | | | | | | | | | | | | | | | | | | | | 109,673,709 | | | | | 109,673,709 | | | | | 116,469,884 | | | |||||||||||||||||||||||||||||||||||||||||||
Pro forma net loss per share attributable to common stockholders: (4) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.31) | | | |||||||||||||||||||||||||||||||||||||||||||
Pro forma weighted-average common shares outstanding: (4) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 121,279,040 | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Net cash provided by operating activities | | | | $ | 35,655 | | | | | $ | 63,161 | | |
Net cash used in investing activities | | | | | (27,083) | | | | | | (115,805) | | |
Net cash provided by financing activities | | | | | 16,551 | | | | | | 54,302 | | |
| | | As of December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Cash | | | | $ | 56,655 | | | | | $ | 59,310 | | |
Working capital(5) | | | | | 77,496 | | | | | | 73,389 | | |
Total assets | | | | | 525,711 | | | | | | 646,676 | | |
Total debt(6) | | | | | 223,223 | | | | | | 286,434 | | |
Total liabilities | | | | | 331,916 | | | | | | 430,005 | | |
Total stockholders’ equity | | | | | 193,795 | | | | | | 216,671 | | |
| | | Year Ended December 31, | | |||||||||||||||||||||||||||||||||
| | | 2019 | | | % of Net Sales | | | 2020 | | | % of Net Sales | | | Change Amount | | | Change % of Net Sales | | ||||||||||||||||||
| | | (dollars in thousands) | | |||||||||||||||||||||||||||||||||
Net sales | | | | $ | 317,975 | | | | | | 100% | | | | | $ | 403,389 | | | | | | 100% | | | | | $ | 85,414 | | | | | | 0% | | |
Cost of sales | | | | | 219,819 | | | | | | 69.1% | | | | | | 260,616 | | | | | | 64.6% | | | | | | 40,797 | | | | | | (4.5)% | | |
Gross profit | | | | | 98,156 | | | | | | 30.9% | | | | | | 142,773 | | | | | | 35.4% | | | | | | 44,617 | | | | | | 4.5% | | |
Selling, general and administrative expense | | | | | 57,388 | | | | | | 18.0% | | | | | | 85,527 | | | | | | 21.2% | | | | | | 28,139 | | | | | | 3.2% | | |
Amortization | | | | | 15,643 | | | | | | 4.9% | | | | | | 17,347 | | | | | | 4.3% | | | | | | 1,704 | | | | | | (0.6)% | | |
Income from operations | | | | | 25,125 | | | | | | 7.9% | | | | | | 39,899 | | | | | | 9.9% | | | | | | 14,774 | | | | | | 2.0% | | |
Other expense (income): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | | | 22,639 | | | | | | 7.1% | | | | | | 18,251 | | | | | | 4.5% | | | | | | (4,388) | | | | | | (2.6)% | | |
Other expense (income), net | | | | | (300) | | | | | | 0.1% | | | | | | (1,111) | | | | | | 0.3% | | | | | | (811) | | | | | | 0.2% | | |
Total other expense (income), net | | | | | 22,339 | | | | | | 7.0% | | | | | | 17,140 | | | | | | 4.2% | | | | | | (5,199) | | | | | | (2.8)% | | |
Income before income taxes | | | | | 2,786 | | | | | | 0.9% | | | | | | 22,759 | | | | | | 5.6% | | | | | | 19,973 | | | | | | 4.8% | | |
Income tax (benefit) expense | | | | | (4,671) | | | | | | 1.5% | | | | | | 6,776 | | | | | | 1.7% | | | | | | 11,447 | | | | | | 0.2% | | |
Net income | | | | $ | 7,457 | | | | | | 2.3% | | | | | $ | 15,983 | | | | | | 4.0% | | | | | $ | 8,526 | | | | | | 1.6% | | |
Adjusted EBITDA | | | | $ | 61,050 | | | | | | 19.2% | | | | | $ | 83,836 | | | | | | 20.8% | | | | | $ | 22,786 | | | | | | 1.6% | | |
| | Year Ended December 31, | | | Year Ended December 31, | | ||||||||||||||||||||
| | 2019 | | 2020 | | | 2019 | | 2020 | | ||||||||||||||||
| | (in thousands) | | | (in thousands) | | ||||||||||||||||||||
Net income | | | $ | 7,457 | | | | $ | 15,983 | | | | | $ | 7,457 | | | | $ | 15,983 | | | ||||
Depreciation and amortization | | | | 21,659 | | | | | 25,365 | | | | | | 21,659 | | | | | 25,365 | | | ||||
Interest expense | | | | 22,639 | | | | | 18,251 | | | | | | 22,639 | | | | | 18,251 | | | ||||
Income tax (benefit) expense | | | | (4,671) | | | | | 6,776 | | | | | | (4,671) | | | | | 6,776 | | | ||||
Loss on sale and disposal of property and equipment | | | | 680 | | | | | 332 | | | | | | 680 | | | | | 332 | | | ||||
Restructuring charges(a) | | | | 980 | | | | | 1,265 | | | | | | 980 | | | | | 1,265 | | | ||||
Management fees(b) | | | | 500 | | | | | — | | | | | | 500 | | | | | — | | | ||||
Stock-based compensation expense | | | | 808 | | | | | 1,827 | | | | | | 808 | | | | | 1,827 | | | ||||
Other expense (income), net(c) | | | | (300) | | | | | (1,111) | | | | | | (300) | | | | | (1,111) | | | ||||
Other non-cash items(d) | | | | 6,331 | | | | | 1,338 | | | | | | 6,331 | | | | | 1,338 | | | ||||
Strategic initiative costs(e) | | | | 964 | | | | | 6,264 | | | | | | 964 | | | | | 6,264 | | | ||||
Acquisition and integration related costs(f) | | | | 3,612 | | | | | 5,497 | | | | | | 3,612 | | | | | 5,497 | | | ||||
Other(g) | | | | 391 | | | | | 1,007 | | | | | | 391 | | | | | 1,007 | | | ||||
IPO costs(h) | | | | — | | | | | 1,731 | | | | | | — | | | | | 1,731 | | | ||||
COVID-19-related expenses (income)(i) | | | | — | | | | | (689) | | | | | | — | | | | | (689) | | | ||||
Adjusted EBITDA | | | $ | 61,050 | | | | $ | 83,836 | | | | | $ | 61,050 | | | | $ | 83,836 | | | ||||
Acquisition EBITDA adjustments(j) | | | | | | | | | 13,210 | | | |||||||||||||||
Acquisition Adjusted EBITDA | | | | | | | | $ | 97,046 | | | |||||||||||||||
Net sales | | | $ | 317,975 | | | | $ | 403,389 | | | | | $ | 317,975 | | | | $ | 403,389 | | | ||||
Net income margin | | | | 2.3% | | | | | 4.0% | | | | | | 2.3% | | | | | 4.0% | | | ||||
Adjusted EBITDA margin | | | | 19.2% | | | | | 20.8% | | | | | | 19.2% | | | | | 20.8% | | |
Leverage Ratio | | | Mandatory Prepayment Percentage | | |||
> 3.50:1.00 | | | | | 90% | | |
> 3.00:1.00 and ≤ 3.50:1.00 | | | | | 75% | | |
> 2.50:1.00 and ≤ 3.00:1.00 | | | | | 50% | | |
> 2.00:1.00 and ≤ 2.50:1.00 | | | | | 25% | | |
≤ 2.00:1.00 | | | | | 0% | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Net cash provided by operating activities | | | | $ | 35,655 | | | | | $ | 63,161 | | |
Net cash used in investing activities | | | | | (27,083) | | | | | | (115,805) | | |
Net cash provided by financing activities | | | | | 16,551 | | | | | | 54,302 | | |
Effect of exchange rate changes on cash | | | | | (956) | | | | | | 997 | | |
Net increase in cash | | | | $ | 24,167 | | | | | $ | 2,655 | | |
| | | Payments Due by Period | | |||||||||||||||||||||||||||
| | | Total | | | Less than 1 Year | | | 1 to 3 Years | | | 4 to 5 Years | | | More than 5 Years | | |||||||||||||||
Long-term indebtedness, excluding interest(1)(5) | | | | $ | 293,085 | | | | | $ | 13,042 | | | | | $ | 91,022 | | | | | $ | 189,021 | | | | | $ | — | | |
Interest on long-term indebtedness(2)(5) | | | | | 64,593 | | | | | | 15,940 | | | | | | 29,282 | | | | | | 19,371 | | | | | | — | | |
Operating lease obligations(3) | | | | | 29,329 | | | | | | 6,484 | | | | | | 10,426 | | | | | | 7,325 | | | | | | 5,094 | | |
Total(4) | | | | $ | 387,007 | | | | | $ | 35,466 | | | | | $ | 130,730 | | | | | $ | 215,717 | | | | | $ | 5,094 | | |
Location | | | Purpose | | | Size (Sq. ft.) | | | Ownership (owned or leased) | |
Adelaide, Australia | | | Storage facility | | | 21,097* | | | Leased | |
Melbourne, Australia | | | Storage facility and office | | | 5,942 | | | Leased | |
Picton, Australia | | | Fiberglass facility | | | 41,818 | | | Leased | |
Sydney, Australia | | | Office | | | 6,889 | | | Leased | |
Yalta, Australia | | | Fiberglass facility | | | 28,266 | | | Leased | |
Ajax, Canada | | | Fiberglass steps | | | 25,641 | | | Leased | |
Brantford, Canada | | | Liners, steel panels and covers facility | | | 113,360 | | | Leased | |
Kingston, Canada | | | Fiberglass facility | | | 3,600 | | | Leased | |
Terrebonne, Canada | | | Warehouse/distribution | | | 35,000 | | | Leased | |
Hamilton, New Zealand | | | Fiberglass facility | | | 18,912 | | | Leased | |
Hamilton, New Zealand | | | Mold building facility | | | 12,701 | | | Leased | |
Williams, California | | | Fiberglass facility | | | 67,734 | | | Leased | |
Zephyrhills, Florida | | | Fiberglass facility | | | 42,000 | | | Leased | |
Suwanee, Georgia | | | Liners and covers facility | | | 84,466 | | | Leased | |
Fort Wayne, Indiana | | | Liners, kits and covers facility | | | 161,000 | | | Leased | |
Plainfield, Indiana | | | Automatic safety covers facility | | | 99,288 | | | Leased | |
De Witt, Iowa | | | Fiberglass facility | | | 40,000 | | | Leased | |
Bossier City, Louisiana | | | Liners and covers facility | | | 47,334 | | | Leased | |
Breaux Bridge, Louisiana | | | Fiberglass facility | | | 22,463 | | | Leased | |
Latham, New York | | | Headquarters, polymer panels and thermoformed steps facility | | | 97,000 | | | Owned | |
Queensbury, New York | | | Fiberglass depot | | | 2,400 | | | Leased | |
Scotia, New York | | | Liners and covers facility | | | 122,543 | | | Leased | |
Powells Point, North Carolina | | | Fiberglass depot | | | 964 | | | Leased | |
Rockingham, North Carolina | | | Fiberglass facility | | | 45,330 | | | Owned | |
Youngstown, Ohio | | | Warehouse — finished products | | | 105,000 | | | Leased | |
Youngstown, Ohio | | | Warehouse — raw materials | | | 85,868 | | | Leased | |
Youngstown, Ohio | | | Liners and covers facility | | | 16,992 | | | Leased | |
Fayetteville, Tennessee | | | Fiberglass facility | | | 58,631 | | | Owned | |
Odessa, Texas | | | Fiberglass facility | | | 33,500 | | | Leased | |
Lindon, Utah | | | Automatic safety covers facility | | | 55,789 | | | Leased | |
Jane Lew, West Virginia | | | Fiberglass facility | | | 67,100 | | | Leased | |
Jane Lew, West Virginia | | | Storage facility and office | | | 18,000 | | | Leased | |
Name | | | Age | | | Position | |
Scott M. Rajeski | | | 54 | | | Director and Chief Executive Officer | |
J. Mark Borseth | | | 62 | | | Chief Financial Officer | |
Jeff A. Leake | | | 59 | | | Chief Operating Officer | |
Joel R. Culp | | | 56 | | | Chief Marketing Officer | |
Kaushal B. Dhruv | | | 45 | | | Chief Information Officer | |
Melissa C. Feck | | | 49 | | | Chief Human Resource Officer | |
Jason A. Duva | | | 48 | | | General Counsel and Chief Administrative Officer | |
Joshua D. Cowley | | | 44 | | | Chief Commercial Officer | |
James E. Cline | | | 69 | | | Chairman and Director | |
Robert D. Evans | | | 61 | | | Director | |
Alexander L. Hawkinson | | | 47 | | | Director | |
Mark P. Laven | | | 67 | | | Vice Chairman and Director | |
Suzan Morno-Wade | | | 53 | | | Director | |
William M. Pruellage | | | 47 | | | Director | |
Andrew D. Singer | | | 32 | | | Director | |
Christopher P. O’Brien | | | 45 | | | Director | |
Name and Principal Position | | | Fiscal Year | | | Salary ($) | | | Stock Awards(1) ($) | | | Non-Equity Incentive Plan Compensation(2) | | | All Other Compensation(3) ($) | | | Total ($) | | ||||||||||||||||||
Scott M. Rajeski Chief Executive Officer | | | | | 2020 | | | | | | 400,000 | | | | | | — | | | | | | 800,000 | | | | | | 16,551 | | | | | | 1,216,551 | | |
J. Mark Borseth(4) Chief Financial Officer | | | | | 2020 | | | | | | 297,260 | | | | | | 546,844 | | | | | | 420,000 | | | | | | 60,322 | | | | | | 1,324,426 | | |
Joel R. Culp Chief Marketing Officer | | | | | 2020 | | | | | | 315,000 | | | | | | 226,837 | | | | | | 378,000 | | | | | | 39,046 | | | | | | 958,883 | | |
Name | | | Company 401(k) Match ($) | | | Company Automobile Reimbursement ($) | | | Relocation Reimbursement ($) | | | Total ($) | | ||||||||||||
Scott M. Rajeski | | | | | 1,551 | | | | | | 15,000 | | | | | | — | | | | | | 16,551 | | |
J. Mark Borseth | | | | | 3,322 | | | | | | 7,000 | | | | | | 50,000 | | | | | | 60,322 | | |
Joel R. Culp | | | | | 1,817 | | | | | | 8,400 | | | | | | 28,829 | | | | | | 39,046 | | |
Name | | | Grant Date | | | Number of Shares or Units of Stock That Have Not Vested (#)(1)(4) | | | Market Value of Shares or Units of Stock That Have Not Vested ($)(2) | | | Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)(3) | | | Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(2) | | |||||||||||||||
Scott M. Rajeski | | | | | 12/20/2018 | | | | | | 1,688,091 | | | | | | 1,738,734 | ��� | | | | | 5,626,971 | | | | | | 4,895,464 | | |
J. Mark Borseth | | | | | 5/26/2020 | | | | | | 703,371 | | | | | | 724,472 | | | | | | 1,406,742 | | | | | | 1,223,866 | | |
| | | 5/26/2020 | | | | | | 239,464 | | | | | | 246,648 | | | | | | — | | | | | | — | | | ||
Joel R. Culp | | | | | 2/13/2020 | | | | | | 422,023 | | | | | | 434,683 | | | | | | 1,055,057 | | | | | | 917,899 | | |
Name | | | Grant Date | | | Vesting Schedule | |
Scott M. Rajeski | | | 12/20/2018 | | | Vests 20% per year over 5 years. Approximately 562,697 Class B Units are scheduled to vest on each of December 20, 2021, 2022 and 2023 | |
J. Mark Borseth | | | 5/26/2020 | | | Vests 20% per year over 5 years. Approximately 140,674 Class B Units are scheduled to vest on each of May 26, 2021, 2022, 2023, 2024 and 2025 | |
| 5/26/2020 | | | Vests 100% in May 26, 2021 | | ||
Joel R. Culp | | | 2/13/2020 | | | Vests 20% per year over 5 years beginning on May 11, 2019. Approximately 105,506 Class B Units are scheduled to vest on each of May 11, 2021, 2022, 2023 and 2024 | |
Name | | | Fiscal Year | | | Fees Earned ($) | | | Stock Awards(1) ($) | | | Other Compensation(2) ($) | | | Total ($) | | |||||||||||||||
James E. Cline | | | | | 2020 | | | | | | 100,000 | | | | | | — | | | | | | — | | | | | | 100,000 | | |
Mark P. Laven(3) | | | | | 2020 | | | | | | 200,000 | | | | | | — | | | | | | 148,361 | | | | | | 348,361 | | |
Robert D. Evans | | | | | 2020 | | | | | | 100,000 | | | | | | — | | | | | | — | | | | | | 100,000 | | |
Alexander L. Hawkinson(4) | | | | | 2020 | | | | | | 50,000 | | | | | | 362,236 | | | | | | — | | | | | | 412,236 | | |
Russell Gehrett | | | | | 2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Andrew D. Singer | | | | | 2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Christopher P. O’Brien | | | | | 2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name | | | Grant Date | | | Number of Shares or Units of Stock That Have Not Vested (#) | | ||||||
James E. Cline | | | | | 3/4/2019 | | | | | | 281,349 | | |
Mark P. Laven | | | | | 12/20/2018 | | | | | | 422,023 | | |
Robert D. Evans | | | | | 9/1/2019 | | | | | | 281,349 | | |
Alexander L. Hawkinson | | | | | 10/16/2020 | | | | | | 351,686 | | |
Name | | | Shares of Common Stock | | |||
Pamplona Fund | | | | | 70,573,720 | | |
Wynnchurch Funds | | | | | 20,396,306 | | |
Scott M. Rajeski | | | | | 4,417,409 | | |
J. Mark Borseth | | | | | 1,147,602 | | |
Joel R. Culp | | | | | 837,969 | | |
Jeff A. Leake | | | | | 828,313 | | |
Kaushal B. Dhruv | | | | | 199,771 | | |
Melissa C. Feck | | | | | |||
| | ||||||
James E. Cline | | | | | 505,252 | | |
Robert D. Evans | | | | | 630,383 | | |
Alexander L. Hawkinson | | | | | 482,504 | | |
Mark P. Laven | | | | | 1,511,027 | | |
William M. Pruellage | | | | | — | | |
Andrew D. Singer | | | | | — | | |
Christopher P. O’Brien | | | | | — | | |
Name | | | Number of shares of common stock to be sold to us, assuming the underwriters’ option to purchase additional shares is not exercised | | | Cash Proceeds ($) | | | Number of shares of common stock to be sold to us, assuming the underwriters’ option to purchase additional shares is exercised | | | Cash Proceeds ($) | | ||||||||||||
Pamplona Fund | | | | | 6,849,606 | | | | | | 127.4 million | | | | | | 9,071,746 | | | | | | 168.7 million | | |
Wynnchurch Funds | | | | | 1,979,585 | | | | | | 36.8 million | | | | | | 2,621,799 | | | | | | 48.8 million | | |
| | | Shares of Common Stock Beneficially Owned Before the Offering | | | Shares of Common Stock Beneficially Owned After the Offering Assuming Underwriters’ Option Is Not Exercised | | | Shares of Common Stock Beneficially Owned After the Offering Assuming Underwriters’ Option Is Exercised | | |||||||||||||||||||||||||||
| | | Number | | | Percent | | | Number | | | Percent | | | Number | | | Percent | | ||||||||||||||||||
5% Stockholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Pamplona Funds(1) | | | | | 70,573,720 | | | | | | 64.3% | | | | | | 63,724,114 | | | | | | 52.9% | | | | | | 61,501,974 | | | | | | 51.1% | | |
Wynnchurch Funds(2) | | | | | 20,396,306 | | | | | | 18.6% | | | | | | 18,416,721 | | | | | | 15.3% | | | | | | 17,774,507 | | | | | | 14.8% | | |
Named Executive Officers and Directors | | | | | | | | | | | | | |||||||||||||||||||||||||
Scott M. Rajeski(3) | | | | | 4,417,409 | | | | | | 4.0% | | | | | | 4,417,409 | | | | | | 3.7% | | | | | | 4,417,409 | | | | | | 3.7% | | |
J. Mark Borseth | | | | | 1,147,602 | | | | | | 1.0% | | | | | | 1,147,602 | | | | | | 1.0% | | | | | | 1,147,602 | | | | | | 1.0% | | |
Joel R. Culp | | | | | 837,969 | | | | | | 0.8% | | | | | | 837,969 | | | | | | 0.7% | | | | | | 837,969 | | | | | | 0.7% | | |
James E. Cline | | | | | 505,252 | | | | | | 0.5% | | | | | | 505,252 | | | | | | 0.4% | | | | | | 505,252 | | | | | | 0.4% | | |
Robert D. Evans | | | | | 630,383 | | | | | | 0.6% | | | | | | 630,383 | | | | | | 0.5% | | | | | | 630,383 | | | | | | 0.5% | | |
Alexander L. Hawkinson | | | | | 482,504 | | | | | | 0.4% | | | | | | 482,504 | | | | | | 0.4% | | | | | | 482,504 | | | | | | 0.4% | | |
Mark P. Laven(4) | | | | | 1,511,027 | | | | | | 1.4% | | | | | | 1,511,027 | | | | | | 1.3% | | | | | | 1,511,027 | | | | | | 1.3% | | |
Suzan Morno-Wade | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
William M. Pruellage | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Andrew D. Singer | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Christopher P. O’Brien(2) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All current directors and executive officers as a group (11 persons) | | | | | 9,532,146 | | | | | | 8.7% | | | | | | 9,532,146 | | | | | | 7.9% | | | | | | 9,532,146 | | | | | | 7.9% | | |
Underwriters | | | Number of Shares | | | |||||
Barclays Capital Inc. | | | | | | | | | ||
BofA Securities, Inc. | | | | | | | | | ||
Morgan Stanley & Co. LLC | | | | | | | | | ||
Goldman Sachs & Co. LLC | | | | | ||||||
Nomura Securities International, Inc. | | | | | | | | | ||
William Blair & Company, L.L.C. | | | | | | | | | ||
Robert W. Baird & Co. Incorporated | | | | | | | | | | |
KeyBanc Capital Markets Inc. | | | | | | | | | ||
Truist Securities, Inc. | | | | | | | | | ||
Total | | | | | 20,000,000 | | | |
| | | Company | | |||||||||
| | | No Exercise | | | Full Exercise | | ||||||
Per Share | | | | $ | | | | | $ | | | ||
Total | | | | $ | | | | | $ | | | |
| | | | | F-2 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| | | | | F-9 | | |
| | December 31, | | | December 31, | | ||||||||||||||||||||
| | 2019 | | 2020 | | | 2019 | | 2020 | | ||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | ||||
Current assets: | | | | | | | | | | | | | | | | | | | | | | | ||||
Cash | | | $ | 56,655 | | | | $ | 59,310 | | | | | $ | 56,655 | | | | $ | 59,310 | | | ||||
Trade receivables, net | | | | 31,427 | | | | | 32,758 | | | | | | 31,427 | | | | | 32,758 | | | ||||
Inventories, net | | | | 35,611 | | | | | 64,818 | | | | | | 35,611 | | | | | 64,818 | | | ||||
Income tax receivable | | | | — | | | | | 4,377 | | | | | | — | | | | | 4,377 | | | ||||
Prepaid expenses and other current assets | | | | 3,998 | | | | | 6,063 | | | | | | 3,998 | | | | | 6,063 | | | ||||
Total current assets | | | | 127,691 | | | | | 167,326 | | | | | | 127,691 | | | | | 167,326 | | | ||||
Property and equipment, net | | | | 37,845 | | | | | 47,357 | | | | | | 37,845 | | | | | 47,357 | | | ||||
Equity method investment | | | | — | | | | | 25,384 | | | | | | — | | | | | 25,384 | | | ||||
Deferred tax assets | | | | 206 | | | | | 345 | | | | | | 206 | | | | | 345 | | | ||||
Deferred offering costs | | | | — | | | | | 1,041 | | | | | | — | | | | | 1,041 | | | ||||
Goodwill | | | | 101,672 | | | | | 115,750 | | | | | | 101,672 | | | | | 115,750 | | | ||||
Intangible assets, net | | | | 258,297 | | | | | 289,473 | | | | | | 258,297 | | | | | 289,473 | | | ||||
Total assets | | | $ | 525,711 | | | | $ | 646,676 | | | | | $ | 525,711 | | | | $ | 646,676 | | | ||||
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | ||||
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | ||||
Accounts payable | | | $ | 12,093 | | | | $ | 29,789 | | | | | $ | 12,093 | | | | $ | 29,789 | | | ||||
Accounts payable – related party | | | | — | | | | | 500 | | | | | | — | | | | | 500 | | | ||||
Current maturities of long-term debt | | | | 6,891 | | | | | 13,042 | | | | | | 6,891 | | | | | 13,042 | | | ||||
Accrued expenses and other current liabilities | | | | 22,233 | | | | | 50,606 | | | | | | 22,233 | | | | | 50,606 | | | ||||
Contingent consideration liability | | | | 8,978 | | | | | — | | | | | | 8,978 | | | | | — | | | ||||
Total current liabilities | | | | 50,195 | | | | | 93,937 | | | | | | 50,195 | | | | | 93,937 | | | ||||
Long-term debt, net of discount and current portion | | | | 216,332 | | | | | 208,454 | | | | | | 216,332 | | | | | 208,454 | | | ||||
Related party note payable | | | | — | | | | | 64,938 | | | | | | — | | | | | 64,938 | | | ||||
Deferred income tax liabilities, net | | | | 60,008 | | | | | 55,193 | | | | | | 60,008 | | | | | 55,193 | | | ||||
Liability for uncertain tax positions | | | | 5,075 | | | | | 5,540 | | | | | | 5,075 | | | | | 5,540 | | | ||||
Other long-term liabilities | | | | 306 | | | | | 1,943 | | | | | | 306 | | | | | 1,943 | | | ||||
Total liabilities | | | | 331,916 | | | | | 430,005 | | | | | | 331,916 | | | | | 430,005 | | | ||||
Commitments and contingencies | | | | | | | | | | | | | | | | | | | | | | | ||||
Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | ||||
Common stock, $0.0001 par value; 1,000 shares authorized as of December 31, 2019 and 2020; 1,000 shares issued and outstanding as of December 31, 2019 and 2020 | | | | — | | | | | — | | | |||||||||||||||
Common stock, $0.0001 par value; 500,000,000 shares authorized as of December 31, 2019 and 2020; 109,673,709 shares issued and outstanding as of December 31, 2019 and 2020 | | | | 11 | | | | | 11 | | | |||||||||||||||
Additional paid-in capital | | | | 196,484 | | | | | 200,552 | | | | | | 196,473 | | | | | 200,541 | | | ||||
Retained earnings (accumulated deficit) | | | | (2,218) | | | | | 13,765 | | | | | | (2,218) | | | | | 13,765 | | | ||||
Accumulated other comprehensive income (loss) | | | | (471) | | | | | 2,354 | | | | | | (471) | | | | | 2,354 | | | ||||
Total stockholders’ equity | | | | 193,795 | | | | | 216,671 | | | | | | 193,795 | | | | | 216,671 | | | ||||
Total liabilities and stockholders’ equity | | | $ | 525,711 | | | | $ | 646,676 | | | | | $ | 525,711 | | | | $ | 646,676 | | |
| | Year Ended December 31, | | | Year Ended December 31, | | ||||||||||||||||||||
| | 2019 | | 2020 | | | 2019 | | 2020 | | ||||||||||||||||
Net sales | | | $ | 317,975 | | | | $ | 403,389 | | | | | $ | 317,975 | | | | $ | 403,389 | | | ||||
Cost of sales | | | | 219,819 | | | | | 260,616 | | | | | | 219,819 | | | | | 260,616 | | | ||||
Gross profit | | | | 98,156 | | | | | 142,773 | | | | | | 98,156 | | | | | 142,773 | | | ||||
Selling, general and administrative expense | | | | 57,388 | | | | | 85,527 | | | | | | 57,388 | | | | | 85,527 | | | ||||
Amortization | | | | 15,643 | | | | | 17,347 | | | | | | 15,643 | | | | | 17,347 | | | ||||
Income from operations | | | | 25,125 | | | | | 39,899 | | | | | | 25,125 | | | | | 39,899 | | | ||||
Other expense (income): | | | | | | | | | | | | | | | | | | | | | | | ||||
Interest expense | | | | 22,639 | | | | | 18,251 | | | | | | 22,639 | | | | | 18,251 | | | ||||
Other expense (income), net | | | | (300) | | | | | (1,111) | | | | | | (300) | | | | | (1,111) | | | ||||
Total other expense (income), net | | | | 22,339 | | | | | 17,140 | | | | | | 22,339 | | | | | 17,140 | | | ||||
Income before income taxes | | | | 2,786 | | | | | 22,759 | | | | | | 2,786 | | | | | 22,759 | | | ||||
Income tax (benefit) expense | | | | (4,671) | | | | | 6,776 | | | | | | (4,671) | | | | | 6,776 | | | ||||
Net income | | | $ | 7,457 | | | | $ | 15,983 | | | | | $ | 7,457 | | | | $ | 15,983 | | | ||||
Net income per share attributable to common stockholders: | | | | | | | | | | | | | | | | | | | | | | | ||||
Basic | | | $ | 7,457.00 | | | | $ | 15,064.09 | | | | | $ | 0.07 | | | | $ | 0.14 | | | ||||
Diluted | | | $ | 7,457.00 | | | | $ | 15,064.09 | | | | | $ | 0.07 | | | | $ | 0.14 | | | ||||
Weighted-average common shares outstanding – basic and diluted | | | | | | | | | | | | | | | | | | | | | | | ||||
Basic | | | | 1,000 | | | | | 1,061 | | | | | | 109,673,709 | | | | | 116,469,884 | | | ||||
Diluted | | | | 1,000 | | | | | 1,061 | | | | | | 109,673,709 | | | | | 116,469,884 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Net income | | | | $ | 7,457 | | | | | $ | 15,983 | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | | (664) | | | | | | 2,825 | | |
Benefit pension plan adjustments | | | | | (6) | | | | | | — | | |
Total other comprehensive income (loss), net of tax | | | | | (670) | | | | | | 2,825 | | |
Comprehensive income | | | | $ | 6,787 | | | | | $ | 18,808 | | |
| | Common Stock | | | Additional Paid-in Capital | | Retained Earnings (Accumulated Deficit) | | Accumulated Other Comprehensive Income (Loss) | | Total Stockholders’ Equity | | | Common Stock | | | Additional Paid-in Capital | | Retained Earnings (Accumulated Deficit) | | Accumulated Other Comprehensive Income (Loss) | | Total Stockholders’ Equity | | ||||||||||||||||||||||||||||||||||||||||||||||||||
| | Shares | | Amount | | | Shares | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2018 | | | | 1,000 | | | | $ | — | | | | $ | 188,059 | | | | $ | (7,978) | | | | $ | 199 | | | | $ | 180,280 | | | | | | 109,673,709 | | | | $ | 11 | | | | $ | 188,048 | | | | $ | (7,978) | | | | $ | 199 | | | | $ | 180,280 | | | ||||||||||||
Net income | | | | — | | | | | — | | | | | — | | | | | 7,457 | | | | | — | | | | | 7,457 | | | | | | — | | | | | — | | | | | — | | | | | 7,457 | | | | | — | | | | | 7,457 | | | ||||||||||||
Cumulative effect of adoption of new revenue recognition standard (Note 2) | | | | — | | | | | — | | | | | — | | | | | (1,697) | | | | | — | | | | | (1,697) | | | | | | — | | | | | — | | | | | — | | | | | (1,697) | | | | | — | | | | | (1,697) | | | ||||||||||||
Foreign currency translation adjustments | | | | — | | | | | — | | | | | — | | | | | — | | | | | (664) | | | | | (664) | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | (664) | | | | | (664) | | | ||||||||||||
Defined benefit pension plan adjustment | | | | — | | | | | — | | | | | — | | | | | — | | | | | (6) | | | | | (6) | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | (6) | | | | | (6) | | | ||||||||||||
Capital contribution from parent | | | | — | | | | | — | | | | | 7,817 | | | | | — | | | | | — | | | | | 7,817 | | | | | | — | | | | | — | | | | | 7,817 | | | | | — | | | | | — | | | | | 7,817 | | | ||||||||||||
Distributions to parent | | | | — | | | | | — | | | | | (200) | | | | | — | | | | | — | | | | | (200) | | | | | | — | | | | | — | | | | | (200) | | | | | — | | | | | — | | | | | (200) | | | ||||||||||||
Stock-based compensation expense | | | | — | | | | | — | | | | | 808 | | | | | — | | | | | — | | | | | 808 | | | | | | — | | | | | — | | | | | 808 | | | | | — | | | | | — | | | | | 808 | | | ||||||||||||
Balances at December 31, 2019 | | | | 1,000 | | | | | — | | | | | 196,484 | | | | | (2,218) | | | | | (471) | | | | | 193,795 | | | | | | 109,673,709 | | | | | 11 | | | | | 196,473 | | | | | (2,218) | | | | | (471) | | | | | 193,795 | | | ||||||||||||
Net income | | | | — | | | | | — | | | | | — | | | | | 15,983 | | | | | — | | | | | 15,983 | | | | | | — | | | | | — | | | | | — | | | | | 15,983 | | | | | — | | | | | 15,983 | | | ||||||||||||
Foreign currency translation adjustments | | | | — | | | | | — | | | | | — | | | | | — | | | | | 2,825 | | | | | 2,825 | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 2,825 | | | | | 2,825 | | | ||||||||||||
Issuance of common stock | | | | 300 | | | | | — | | | | | 64,938 | | | | | — | | | | | — | | | | | 64,938 | | | | | | 32,902,113 | | | | | 3 | | | | | 64,935 | | | | | — | | | | | — | | | | | 64,938 | | | ||||||||||||
Capital contribution from parent | | | | — | | | | | — | | | | | 615 | | | | | — | | | | | — | | | | | 615 | | | | | | — | | | | | — | | | | | 615 | | | | | — | | | | | — | | | | | 615 | | | ||||||||||||
Distributions to parent | | | | — | | | | | — | | | | | (582) | | | | | — | | | | | — | | | | | (582) | | | | | | — | | | | | — | | | | | (582) | | | | | — | | | | | — | | | | | (582) | | | ||||||||||||
Purchases and retirement of treasury stock | | | | (300) | | | | | — | | | | | (64,938) | | | | | — | | | | | — | | | | | (64,938) | | | | | | (32,902,113) | | | | | (3) | | | | | (64,935) | | | | | — | | | | | — | | | | | (64,938) | | | ||||||||||||
Contingent consideration settlement | | | | — | | | | | — | | | | | 2,208 | | | | | — | | | | | — | | | | | 2,208 | | | | | | — | | | | | — | | | | | 2,208 | | | | | — | | | | | — | | | | | 2,208 | | | ||||||||||||
Stock-based compensation expense | | | | — | | | | | — | | | | | 1,827 | | | | | — | | | | | — | | | | | 1,827 | | | | | | — | | | | | — | | | | | 1,827 | | | | | — | | | | | — | | | | | 1,827 | | | ||||||||||||
Balances at December 31, 2020 | | | | 1,000 | | | | $ | — | | | | $ | 200,552 | | | | $ | 13,765 | | | | $ | 2,354 | | | | $ | 216,671 | | | | | | 109,673,709 | | | | $ | 11 | | | | $ | 200,541 | | | | $ | 13,765 | | | | $ | 2,354 | | | | $ | 216,671 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 7,457 | | | | | $ | 15,983 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 21,659 | | | | | | 25,365 | | |
Amortization of deferred financing costs and debt discount | | | | | 3,151 | | | | | | 2,317 | | |
Bad debt expense | | | | | 253 | | | | | | 358 | | |
Change in fair value of interest rate swap | | | | | — | | | | | | 334 | | |
Deferred income taxes | | | | | (10,226) | | | | | | (4,670) | | |
Stock-based compensation expense | | | | | 808 | | | | | | 1,827 | | |
Loss on sale and disposal of property and equipment | | | | | 680 | | | | | | 332 | | |
Provision on liability for uncertain tax positions | | | | | 5,075 | | | | | | 465 | | |
Change in fair value of contingent consideration for Narellan Group Pty Limited | | | | | 1,441 | | | | | | (204) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Trade receivables | | | | | (7,104) | | | | | | 9,462 | | |
Inventories | | | | | 12,960 | | | | | | (17,023) | | |
Prepaid expenses and other current assets | | | | | 1,460 | | | | | | 1,680 | | |
Income tax receivable | | | | | (503) | | | | | | (4,190) | | |
Accounts payable | | | | | (2,278) | | | | | | 12,647 | | |
Accrued expenses and other current liabilities | | | | | 699 | | | | | | 17,685 | | |
Other long-term liabilities | | | | | 123 | | | | | | 793 | | |
Net cash provided by operating activities | | | | | 35,655 | | | | | | 63,161 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment | | | | | (8,165) | | | | | | (16,264) | | |
Proceeds from the sale of property and equipment | | | | | 1,296 | | | | | | 579 | | |
Acquisitions of businesses, net of cash acquired | | | | | (20,214) | | | | | | (74,736) | | |
Equity method investment in Premier Pools & Spas | | | | | — | | | | | | (25,384) | | |
Net cash used in investing activities | | | | | (27,083) | | | | | | (115,805) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from long-term debt borrowings | | | | | 22,310 | | | | | | 20,000 | | |
Payments on long-term debt borrowings | | | | | (5,809) | | | | | | (24,044) | | |
Proceeds from capital contributions from parent | | | | | 250 | | | | | | 615 | | |
Distributions to parent | | | | | (200) | | | | | | (582) | | |
Proceeds from issuance of common stock | | | | | — | | | | | | 64,938 | | |
Payments of initial public offering costs | | | | | — | | | | | | (1) | | |
Payments of Narellan Group Pty Limited contingent consideration | | | | | — | | | | | | (6,624) | | |
Net cash provided by financing activities | | | | | 16,551 | | | | | | 54,302 | | |
Effect of exchange rate changes on cash | | | | | (956) | | | | | | 997 | | |
Net increase in cash | | | | | 24,167 | | | | | | 2,655 | | |
Cash at beginning of period | | | | | 32,488 | | | | | | 56,655 | | |
Cash at end of period | | | | $ | 56,655 | | | | | $ | 59,310 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for interest | | | | $ | 19,488 | | | | | $ | 15,625 | | |
Income taxes paid, net | | | | $ | 168 | | | | | $ | 14,815 | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Purchases of property and equipment included in accounts payable and accrued expenses | | | | $ | 312 | | | | | $ | 1,235 | | |
Capitalized internal-use software included in accounts payable – related party . | | | | $ | — | | | | | $ | 500 | | |
Deferred offering costs included in accounts payable and accrued expenses | | | | $ | — | | | | | $ | 1,040 | | |
Related party note entered into for purchase of treasury stock | | | | $ | — | | | | | $ | 64,938 | | |
Fair value of contingent consideration recorded in connection with acquisition of Narellan Group Pty Limited | | | | $ | 8,869 | | | | | $ | — | | |
Fair value of equity issued by Parent to settle contingent consideration in connection with the acquisition of Narellan Group Pty Limited | | | | $ | 7,567 | | | | | $ | 2,208 | | |
Change in defined benefit pension plan liability | | | | $ | 31 | | | | | $ | (149) | | |
Net working capital adjustment receivable | | | | $ | — | | | | | $ | 750 | | |
| | | Estimated Useful Life | |
Building and improvements | | | 25 years | |
Molds and dyes | | | 5 – 10 years | |
Machinery and equipment (including computer equipment and software) | | | 3 – 10 years | |
Furniture and fixtures | | | 5 – 7 years | |
Vehicles | | | 5 years | |
Asset | | | Estimated Useful Life | |
Patented technology | | | 5 – 10 years | |
Trade names and trademarks | | | 9 – 25 years | |
Pool designs | | | 14 years | |
Franchise relationships | | | 4 years | |
Dealer relationships | | | 5 – 15 years | |
Non-competition agreements | | | 5 years | |
(in thousands) | | | May 31, 2019 | | |||
Total consideration | | | | $ | 35,233 | | |
Allocation of purchase price: | | | | | | | |
Cash | | | | | 24 | | |
Trade receivables | | | | | 1,420 | | |
Inventories | | | | | 4,501 | | |
Prepaid expenses and other current assets | | | | | 472 | | |
Property and equipment | | | | | 4,861 | | |
Intangible assets | | | | | 18,332 | | |
Deferred tax asset | | | | | 126 | | |
Total assets acquired | | | | | 29,736 | | |
Accounts payable | | | | | 3,379 | | |
Accrued expenses and other current liabilities | | | | | 442 | | |
Deferred tax liabilities | | | | | 470 | | |
Total liabilities assumed | | | | | 4,291 | | |
Total fair value of net assets acquired, excluding goodwill: | | | | | 25,445 | | |
Goodwill | | | | $ | 9,788 | | |
(in thousands) | | | Amount | | |||
Cash consideration | | | | $ | 20,238 | | |
Fair value of equity consideration | | | | | 7,567 | | |
Fair value of contingent consideration | | | | | 7,428 | | |
Total consideration | | | | $ | 35,233 | | |
Definite-lived intangible assets: | | | Fair Value (in thousands) | | | Amortization Period (in years) | | ||||||
Trade names and trademarks | | | | $ | 9,535 | | | | | | 25 | | |
Pool designs | | | | | 5,728 | | | | | | 14 | | |
Patented technology | | | | | 1,410 | | | | | | 5 | | |
Franchise relationships | | | | | 1,187 | | | | | | 4 | | |
Dealer relationships | | | | | 472 | | | | | | 5 | | |
(in thousands) | | | Year Ended December 31, 2019 | | |||
Net sales | | | | $ | 15,893 | | |
Net loss | | | | $ | (1,047) | | |
(in thousands) | | | October 22, 2020 | | |||
Total consideration | | | | $ | 79,743 | | |
Allocation of purchase price: | | | | | | | |
Cash | | | | | 5,007 | | |
Trade receivables | | | | | 10,639 | | |
Inventories | | | | | 11,854 | | |
Prepaid expenses and other current assets | | | | | 3,949 | | |
Property and equipment | | | | | 1,402 | | |
Intangible assets | | | | | 46,700 | | |
Total assets acquired | | | | | 79,551 | | |
Accounts payable | | | | | 3,536 | | |
Accrued expenses and other current liabilities | | | | | 8,853 | | |
Other long-term liabilities | | | | | 524 | | |
Total liabilities assumed | | | | | 12,913 | | |
Total fair value of net assets acquired, excluding goodwill: | | | | | 66,638 | | |
Goodwill | | | | $ | 13,105 | | |
Definite-lived intangible assets: | | | Fair Value (in thousands) | | | Amortization Period (in years) | | ||||||
Trade names | | | | $ | 9,500 | | | | | | 9 | | |
Dealer relationships | | | | | 37,200 | | | | | | 8 | | |
| | | | $ | 46,700 | | | | | | | | |
(in thousands) | | | Year Ended December 31, 2020 | | |||
Net sales | | | | $ | 7,689 | | |
Net loss | | | | $ | (1,123) | | |
| | | Year Ended December 31, | | |||||||||
(in thousands) | | | 2019 | | | 2020 | | ||||||
Net sales | | | | $ | 382,029 | | | | | $ | 462,802 | | |
Net income | | | | $ | 6,066 | | | | | $ | 26,344 | | |
| | | Fair Value | | |||
Balance as of May 31, 2019 | | | | $ | 7,428 | | |
Change in fair value of Contingent Consideration | | | | | 1,441 | | |
Foreign currency translation adjustment | | | | | 109 | | |
Balance as of December 31, 2019 | | | | | 8,978 | | |
Change in fair value of Contingent Consideration | | | | | (204) | | |
Foreign currency translation adjustment | | | | | 58 | | |
Payment of Contingent Consideration and issuance of Class A units (see Note 3) | | | | | (8,832) | | |
Balance as of September 25, 2020 | | | | $ | — | | |
| | | Year Ended December 31, 2019 | | |||
EBITDA risk adjustment | | | | | 17.30% | | |
Annual EBITDA volatility | | | | | 55.00% | | |
Risk-free rate of return | | | | | 2.10% | | |
| | | December 31, | | |||||||||||||||||||||
| | | 2019 | | | 2020 | | ||||||||||||||||||
| | | Carrying Value | | | Estimated Fair Value | | | Carrying Value | | | Estimated Fair Value | | ||||||||||||
Term loan | | | | $ | 223,223 | | | | | $ | 220,712 | | | | | $ | 221,496 | | | | | $ | 221,081 | | |
| | | Amount | | |||
Balance as of December 31, 2018 | | | | $ | 91,782 | | |
Acquisition | | | | | 9,788 | | |
Foreign currency translation adjustment | | | | | 102 | | |
Balance as of December 31, 2019 | | | | | 101,672 | | |
Acquisition | | | | | 13,105 | | |
Foreign currency translation adjustment | | | | | 973 | | |
Balance as of December 31, 2020 | | | | $ | 115,750 | | |
| | | December 31, 2019 | | |||||||||||||||||||||
| | | Gross Carrying Amount | | | Foreign Currency Translation | | | Accumulated Amortization | | | Net Amount | | ||||||||||||
Trade names and trademarks | | | | $ | 125,600 | | | | | $ | 99 | | | | | $ | 5,032 | | | | | $ | 120,667 | | |
Patented technology | | | | | 16,126 | | | | | | 14 | | | | | | 1,698 | | | | | | 14,442 | | |
Pool designs | | | | | 5,728 | | | | | | 59 | | | | | | 239 | | | | | | 5,548 | | |
Franchise relationships | | | | | 1,187 | | | | | | 12 | | | | | | 173 | | | | | | 1,026 | | |
Dealer relationships | | | | | 123,176 | | | | | | 5 | | | | | | 8,530 | | | | | | 114,651 | | |
Non-competition agreements | | | | | 2,476 | | | | | | — | | | | | | 513 | | | | | | 1,963 | | |
| | | | $ | 274,293 | | | | | $ | 189 | | | | | $ | 16,185 | | | | | $ | 258,297 | | |
| | | December 31, 2020 | | |||||||||||||||||||||
| | | Gross Carrying Amount | | | Foreign Currency Translation | | | Accumulated Amortization | | | Net Amount | | ||||||||||||
Trade names and trademarks | | | | $ | 135,100 | | | | | $ | 1,047 | | | | | $ | 10,258 | | | | | $ | 125,889 | | |
Patented technology | | | | | 16,126 | | | | | | 155 | | | | | | 3,452 | | | | | | 12,829 | | |
Pool designs | | | | | 5,728 | | | | | | 629 | | | | | | 648 | | | | | | 5,709 | | |
Franchise relationships | | | | | 1,187 | | | | | | 130 | | | | | | 470 | | | | | | 847 | | |
Dealer relationships | | | | | 160,376 | | | | | | 52 | | | | | | 17,697 | | | | | | 142,731 | | |
Non-competition agreements | | | | | 2,476 | | | | | | — | | | | | | 1,008 | | | | | | 1,468 | | |
| | | | $ | 320,993 | | | | | $ | 2,013 | | | | | $ | 33,533 | | | | | $ | 289,473 | | |
Year Ended | | | Estimated Future Amortization Expense | | |||
2021 | | | | $ | 21,959 | | |
2022 | | | | | 21,959 | | |
2023 | | | | | 21,768 | | |
2024 | | | | | 20,948 | | |
2025 | | | | | 20,791 | | |
Thereafter | | | | | 182,048 | | |
| | | | $ | 289,473 | | |
| | | December 31, | | | | | |||||||||
| | | 2019 | | | 2020 | | | ||||||||
Raw materials | | | | $ | 19,035 | | | | | $ | 37,010 | | | | ||
Finished goods | | | | | 16,576 | | | | | | 27,808 | | | | ||
| | | | $ | 35,611 | | | | | $ | 64,818 | | | |
| | | December 31, | | | | | |||||||||
| | | 2019 | | | 2020 | | | ||||||||
Land | | | | $ | 1,613 | | | | | $ | 1,613 | | | | ||
Building and improvements | | | | | 5,495 | | | | | | 5,898 | | | | ||
Machinery and equipment | | | | | 17,661 | | | | | | 21,478 | | | | ||
Furniture and fixtures | | | | | 511 | | | | | | 1,406 | | | | ||
Computer equipment and software | | | | | 5,090 | | | | | | 6,633 | | | | ||
Molds and dyes | | | | | 5,602 | | | | | | 9,051 | | | | ||
Leasehold improvements | | | | | 2,611 | | | | | | 3,573 | | | | ||
Vehicles | | | | | 2,338 | | | | | | 3,061 | | | | ||
Construction in progress | | | | | 3,046 | | | | | | 8,525 | | | | ||
| | | | | 43,967 | | | | | | 61,238 | | | | ||
Less: Accumulated depreciation | | | | | (6,122) | | | | | | (13,881) | | | | ||
| | | | $ | 37,845 | | | | | $ | 47,357 | | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Term loan | | | | $ | 232,191 | | | | | $ | 228,147 | | |
Less: Unamortized discount and debt issuance costs | | | | | (8,968) | | | | | | (6,651) | | |
Total debt | | | | | 223,223 | | | | | | 221,496 | | |
Less: Current portion of long-term debt | | | | | (6,891) | | | | | | (13,042) | | |
Total long-term debt | | | | $ | 216,332 | | | | | $ | 208,454 | | |
Leverage Ratio | | | Mandatory Prepayment Percentage | | |||
> 3.50:1.00 | | | | | 90% | | |
> 3.00:1.00 and ≤ 3.50:1.00 | | | | | 75% | | |
> 2.50:1.00 and ≤ 3.00:1.00 | | | | | 50% | | |
> 2.00:1.00 and ≤ 2.50:1.00 | | | | | 25% | | |
≤ 2.00:1.00 | | | | | 0% | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Cash interest expense | | | | $ | 19,488 | | | | | $ | 15,625 | | |
Amortization of debt issuance costs | | | | | 2,968 | | | | | | 2,179 | | |
Amortization of original issue discount | | | | | 183 | | | | | | 138 | | |
Interest rate swap | | | | | — | | | | | | 334 | | |
Gain on extinguishment of debt | | | | | — | | | | | | (25) | | |
Total interest expense | | | | $ | 22,639 | | | | | $ | 18,251 | | |
Year Ended | | | Term Loan Facility | | |||
2021 | | | | $ | 13,042 | | |
2022 | | | | | 13,042 | | |
2023 | | | | | 13,042 | | |
2024 | | | | | 13,042 | | |
2025 | | | | | 175,979 | | |
| | | | $ | 228,147 | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Accrued sales rebates | | | | $ | 6,520 | | | | | $ | 15,511 | | |
Accrued product warranties | | | | | 2,663 | | | | | | 2,705 | | |
Accrued incentives | | | | | 2,448 | | | | | | 11,244 | | |
Accrued vacation | | | | | 2,425 | | | | | | 3,805 | | |
Accrued payroll | | | | | 2,334 | | | | | | 6,098 | | |
Deferred offering costs | | | | | — | | | | | | 1,040 | | |
Accrued third-party services | | | | | 1,556 | | | | | | 2,172 | | |
Other | | | | | 4,287 | | | | | | 8,031 | | |
Total accrued expenses and other current liabilities | | | | $ | 22,233 | | | | | $ | 50,606 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Balance at the beginning of the year | | | | $ | 1,977 | | | | | $ | 2,846 | | |
Accruals for warranties issued | | | | | 3,729 | | | | | | 3,966 | | |
Warranty liabilities assumed in GLI Acquisition | | | | | — | | | | | | 118 | | |
Less: Settlements made (in cash or in kind) | | | | | (2,860) | | | | | | (4,048) | | |
Balance at the end of the year | | | | | 2,846 | | | | | | 2,882 | | |
Less: Current portion of accrued warranty costs | | | | | (2,663) | | | | | | (2,705) | | |
Accrued warranty costs – less current portion | | | | $ | 183 | | | | | $ | 177 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
In-ground Swimming Pools | | | | $ | 175,033 | | | | | $ | 237,410 | | |
Covers | | | | | 70,984 | | | | | | 84,524 | | |
Liners | | | | | 71,958 | | | | | | 81,455 | | |
| | | | $ | 317,975 | | | | | $ | 403,389 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Balance at the beginning of the year | | | | $ | 1,535 | | | | | $ | 1,322 | | |
Bad debt expense | | | | | 253 | | | | | | 358 | | |
Write-offs | | | | | (466) | | | | | | (242) | | |
Balance at the end of the year | | | | $ | 1,322 | | | | | $ | 1,438 | | |
| | | Year Ended December 31, | | ||||||
| | | 2019 | | | 2020 | | |||
Income (loss) before income taxes: | | | | | | | | | | |
Domestic | | | $9,939 | | | | $ | 19,609 | | |
Foreign | | | (7,153) | | | | | 3,150 | | |
Total | | | $2,786 | | | | $ | 22,759 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Current income tax (benefit) expense: | | | | | | | | | | | | | |
Domestic | | | | $ | 5,424 | | | | | $ | 10,342 | | |
Foreign | | | | | 131 | | | | | | 1,104 | | |
Total current tax (benefit) expense | | | | | 5,555 | | | | | | 11,446 | | |
Deferred income tax (benefit) expense: | | | | | | | | | | | | | |
Domestic | | | | | (10,020) | | | | | | (4,532) | | |
Foreign | | | | | (206) | | | | | | (138) | | |
Total deferred tax (benefit) expense | | | | | (10,226) | | | | | | (4,670) | | |
Total income tax (benefit) expense | | | | $ | (4,671) | | | | | $ | 6,776 | | |
| | | Year Ended December 31, 2019 | | | Year Ended December 31, 2020 | | ||||||
Federal statutory tax rate | | | | | 21.0% | | | | | | 21.0% | | |
Foreign taxes less than U.S. statutory rate | | | | | 1.1% | | | | | | 1.2% | | |
State income tax, net of federal benefit | | | | | (67.2)% | | | | | | 1.4% | | |
Uncertain tax positions | | | | | 348.2% | | | | | | 0.8% | | |
Change in valuation allowance | | | | | (5.9)% | | | | | | (1.1)% | | |
GILTI | | | | | 21.1% | | | | | | 1.5% | | |
Meals and entertainment | | | | | 6.8% | | | | | | 0.5% | | |
Foreign expenses not deductible for tax | | | | | 56.1% | | | | | | 1.7% | | |
Transaction costs not deductible for tax | | | | | 13.3% | | | | | | 2.0% | | |
Canadian restructuring | | | | | (562.4)% | | | | | | — | | |
Canadian Branch Income | | | | | 0.0% | | | | | | 1.8% | | |
Other expenses not deductible for tax | | | | | (0.1)% | | | | | | (1.0)% | | |
| | | | | (168.0)% | | | | | | 29.8% | | |
| | | Year Ended December 31 | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Balance at January 1 | | | | $ | (12,300) | | | | | $ | (12,463) | | |
Additions | | | | | (163) | | | | | | (241) | | |
Balance at December 31 | | | | $ | (12,463) | | | | | $ | (12,704) | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforwards | | | | $ | 12,110 | | | | | $ | 12,099 | | |
Inventories, net | | | | | 680 | | | | | | 473 | | |
Warranty reserve | | | | | 649 | | | | | | 789 | | |
Trade receivables | | | | | 477 | | | | | | 360 | | |
Profits interest units | | | | | 389 | | | | | | 760 | | |
Section 163(j) | | | | | 289 | | | | | | — | | |
Deferred taxes in equity | | | | | 257 | | | | | | 257 | | |
Accrued expenses | | | | | 224 | | | | | | 498 | | |
Transaction costs | | | | | 107 | | | | | | 607 | | |
Canadian tax credits | | | | | 86 | | | | | | 255 | | |
Other | | | | | 64 | | | | | | 216 | | |
Gross deferred tax assets | | | | | 15,332 | | | | | | 16,314 | | |
Valuation allowance | | | | | (12,463) | | | | | | (12,704) | | |
Total deferred tax asset | | | | | 2,869 | | | | | | 3,610 | | |
Less: Foreign deferred tax benefit | | | | | (206) | | | | | | (345) | | |
Total domestic deferred tax asset | | | | | 2,663 | | | | | | 3,265 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Intangible assets | | | | | (57,221) | | | | | | (53,874) | | |
Property and equipment, net | | | | | (4,677) | | | | | | (4,120) | | |
Prepaid expenses | | | | | (773) | | | | | | (464) | | |
Total deferred tax liabilities | | | | | (62,671) | | | | | | (58,458) | | |
Net deferred tax liabilities | | | | $ | (60,008) | | | | | $ | (55,193) | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Balance at the beginning of the year | | | | $ | — | | | | | $ | 9,681 | | |
Additions for tax positions taken during prior years | | | | | — | | | | | | 181 | | |
Additions for tax positions taken during the current year | | | | | 9,681 | | | | | | — | | |
Balance at the end of the year | | | | $ | 9,681 | | | | | $ | 9,862 | | |
| Year Ended | | | | | | | |
| 2021 | | | | $ | 6,484 | | |
| 2022 | | | | | 5,971 | | |
| 2023 | | | | | 4,455 | | |
| 2024 | | | | | 3,834 | | |
| 2025 | | | | | 3,491 | | |
| Thereafter | | | | | 5,094 | | |
| | | | | $ | 29,329 | | |
| | | Number of PIUs | | | Weighted-Average Grant-Date Fair Value | | ||||||
Balance at January 1, 2019 | | | | | 20,890,124 | | | | | $ | 0.41 | | |
Granted | | | | | 3,692,699 | | | | | $ | 0.38 | | |
Forfeited | | | | | (2,848,653) | | | | | $ | 0.41 | | |
Balance at December 31, 2019 | | | | | 21,734,170 | | | | | | | | |
Granted | | | | | 7,843,107 | | | | | $ | 0.60 | | |
Forfeited | | | | | (2,152,315) | | | | | $ | 0.35 | | |
Balance at December 31, 2020 | | | | | 27,424,962 | | | | | $ | 0.43 | | |
| | | Year Ended December 31, 2019 | | | Year Ended December 31, 2020 | | ||||||
Expected volatility | | | | | 49.00% | | | | | | 55.00% | | |
Risk-free interest rate | | | | | 1.90% | | | | | | 0.20% | | |
Expected term (in years) | | | | | 4.6 | | | | | | 3.2 | | |
Expected dividend yield | | | | | —% | | | | | | —% | | |
| | Year Ended December 31, | | | Year Ended December 31, | | ||||||||||||||||||||
| | 2019 | | 2020 | | | 2019 | | 2020 | | ||||||||||||||||
Numerator: | | | | | | | | | | | | | | | | | | | | | | | ||||
Net income attributable to common stockholders | | | $ | 7,457 | | | | $ | 15,983 | | | | | $ | 7,457 | | | | $ | 15,983 | | | ||||
Denominator: | | | | | | | | | | | | | | | | | | | | | | | ||||
Weighted-average common shares outstanding, basic and diluted | | | | 1,000 | | | | | 1,061 | | | | | | 109,673,709 | | | | | 116,469,884 | | | ||||
Net income per share attributable to common stockholders, basic and diluted | | | $ | 7,457.00 | | | | $ | 15,064.09 | | | | | $ | 0.07 | | | | $ | 0.14 | | |
| | | Estimated Useful Life | |
Building and improvements | | | 25 years | |
Molds and dyes | | | 5 – 10 years | |
Machinery and equipment (including computer equipment and software) | | | 3 – 10 years | |
Furniture and fixtures | | | 5 – 7 years | |
Vehicles | | | 5 years | |
Asset | | | Estimated Useful Life | |
Patented technology | | | 5 – 10 years | |
Trade names and trademarks | | | 9 – 25 years | |
Pool designs | | | 14 years | |
Franchise relationships | | | 4 years | |
Dealer relationships | | | 5 – 15 years | |
Non-competition agreements | | | 5 years | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Net sales | | | | | | | | | | | | | |
United States | | | | $ | 257,786 | | | | | $ | 325,716 | | |
Canada | | | | | 43,157 | | | | | | 50,499 | | |
Australia | | | | | 12,126 | | | | | | 20,181 | | |
New Zealand | | | | | 2,432 | | | | | | 3,984 | | |
Other | | | | | 2,474 | | | | | | 3,009 | | |
Total | | | | $ | 317,975 | | | | | $ | 403,389 | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Long-lived assets | | | | | | | | | | | | | |
United States | | | | $ | 30,433 | | | | | $ | 37,680 | | |
Canada | | | | | 2,279 | | | | | | 3,050 | | |
Australia | | | | | 4,094 | | | | | | 4,979 | | |
New Zealand | | | | | 1,039 | | | | | | 1,648 | | |
Total | | | | $ | 37,845 | | | | | $ | 47,357 | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Investment in subsidiary | | | | $ | 193,795 | | | | | $ | 281,609 | | |
Total assets | | | | $ | 193,795 | | | | | $ | 281,609 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Related party note payable | | | | $ | — | | | | | $ | 64,938 | | |
Total liabilities | | | | | — | | | | | | 64,938 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 1,000 shares authorized at December 31, 2019 and 2020; 1,000 shares issued and outstanding as of December 31, 2019 and 2020 | | | | | — | | | | | | — | | |
Additional paid-in capital | | | | | 196,484 | | | | | | 200,552 | | |
Retained earnings (accumulated deficit) | | | | | (2,218) | | | | | | 13,765 | | |
Accumulated other comprehensive income (loss) | | | | | (471) | | | | | | 2,354 | | |
Total stockholders’ equity | | | | | 193,795 | | | | | | 216,671 | | |
Total liabilities and stockholders’ equity | | | | $ | 193,795 | | | | | $ | 281,609 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Equity in net income of subsidiary | | | | $ | 7,457 | | | | | $ | 15,983 | | |
Net income | | | | $ | 7,457 | | | | | $ | 15,983 | | |
Net income per share | | | | | | | | | | | | | |
Net income per share attributable to common stockholders – basic and diluted | | | | $ | 7,457.00 | | | | | $ | 15,064.09 | | |
Weighted-average common shares outstanding – basic and diluted | | | | | 1,000 | | | | | | 1,061 | | |
(in thousands) | | | May 31, 2019 | | |||
Total consideration | | | | $ | 35,233 | | |
Allocation of purchase price: | | | | | | | |
Cash | | | | | 24 | | |
Trade receivables | | | | | 1,420 | | |
Inventories | | | | | 4,501 | | |
Prepaid expenses and other current assets | | | | | 472 | | |
Property and equipment | | | | | 4,861 | | |
Intangible assets | | | | | 18,332 | | |
Deferred tax asset | | | | | 126 | | |
Total assets acquired | | | | | 29,736 | | |
Accounts payable | | | | | 3,379 | | |
Accrued expenses and other current liabilities | | | | | 442 | | |
Deferred tax liabilities | | | | | 470 | | |
Total liabilities assumed | | | | | 4,291 | | |
Total fair value of net assets acquired, excluding goodwill: | | | | | 25,445 | | |
Goodwill | | | | $ | 9,788 | | |
(in thousands) | | | Amount | | |||
Cash consideration | | | | $ | 20,238 | | |
Fair value of equity consideration | | | | | 7,567 | | |
Fair value of contingent consideration | | | | | 7,428 | | |
Total consideration | | | | $ | 35,233 | | |
Definite-lived intangible assets: | | | Fair Value (in thousands) | | | Amortization Period (in years) | | ||||||
Trade names and trademarks | | | | $ | 9,535 | | | | | | 25 | | |
Pool designs | | | | | 5,728 | | | | | | 14 | | |
Patented technology | | | | | 1,410 | | | | | | 5 | | |
Franchise relationships | | | | | 1,187 | | | | | | 4 | | |
Dealer relationships | | | | | 472 | | | | | | 5 | | |
(in thousands) | | | Year Ended December 31, 2019 | | |||
Net sales | | | | $ | 15,893 | | |
Net loss | | | | $ | (1,047) | | |
(in thousands) | | | October 22, 2020 | | |||
Total consideration | | | | $ | 79,743 | | |
Allocation of purchase price: | | | | | | | |
Cash | | | | | 5,007 | | |
Trade receivables | | | | | 10,639 | | |
Inventories | | | | | 11,854 | | |
Prepaid expenses and other current assets | | | | | 3,949 | | |
Property and equipment | | | | | 1,402 | | |
Intangible assets | | | | | 46,700 | | |
Total assets acquired | | | | | 79,551 | | |
Accounts payable | | | | | 3,536 | | |
Accrued expenses and other current liabilities | | | | | 8,853 | | |
Other long-term liabilities | | | | | 524 | | |
Total liabilities assumed | | | | | 12,913 | | |
Total fair value of net assets acquired, excluding goodwill: | | | | | 66,638 | | |
Goodwill | | | | $ | 13,105 | | |
Definite-lived intangible assets: | | | Fair Value (in thousands) | | | Amortization Period (in years) | | ||||||
Trade names | | | | $ | 9,500 | | | | | | 9 | | |
Dealer relationships | | | | | 37,200 | | | | | | 8 | | |
| | | | $ | 46,700 | | | | | | | | |
(in thousands) | | | Year Ended December 31, 2020 | | |||
Net sales | | | | $ | 7,689 | | |
Net loss | | | | $ | (1,123) | | |
| | | Year Ended December 31, | | |||||||||
(in thousands) | | | 2019 | | | 2020 | | ||||||
Net sales | | | | $ | 382,029 | | | | | $ | 462,802 | | |
Net income | | | | $ | 6,066 | | | | | $ | 26,344 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Net income | | | | $ | 7,457 | | | | | $ | 15,983 | | |
Equity in other comprehensive income (loss) of subsidiary | | | | | (670) | | | | | | 2,825 | | |
Comprehensive income | | | | $ | 6,787 | | | | | $ | 18,808 | | |
| | | Fair Value | | |||
Balance as of May 31, 2019 | | | | $ | 7,428 | | |
Change in fair value of Contingent Consideration | | | | | 1,441 | | |
Foreign currency translation adjustment | | | | | 109 | | |
Balance as of December 31, 2019 | | | | | 8,978 | | |
Change in fair value of Contingent Consideration | | | | | (204) | | |
Foreign currency translation adjustment | | | | | 58 | | |
Payment of Contingent Consideration and issuance of Class A units (see Note 3) | | | | | (8,832) | | |
Balance as of September 25, 2020 | | | | $ | — | | |
| | | Year Ended December 31, 2019 | | |||
EBITDA risk adjustment | | | | | 17.30% | | |
Annual EBITDA volatility | | | | | 55.00% | | |
Risk-free rate of return | | | | | 2.10% | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 7,457 | | | | | $ | 15,983 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Equity in net income of subsidiary | | | | | (7,457) | | | | | | (15,983) | | |
Net cash provided by operating activities | | | | | — | | | | | | — | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Investment in subsidiary | | | | | — | | | | | | (64,938) | | |
Net cash used in investing activities | | | | | — | | | | | | (64,938) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from issuance of common stock | | | | | — | | | | | | 64,938 | | |
Net cash provided by financing activities | | | | | — | | | | | | 64,938 | | |
Net increase in cash | | | | | — | | | | | | — | | |
Cash at beginning of period | | | | | — | | | | | | — | | |
Cash at end of period | | | | $ | — | | | | | $ | — | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for interest | | | | $ | — | | | | | $ | — | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Related party note entered into for purchase of treasury stock | | | | $ | — | | | | | $ | 64,938 | | |
| | | December 31, | | |||||||||||||||||||||
| | | 2019 | | | 2020 | | ||||||||||||||||||
| | | Carrying Value | | | Estimated Fair Value | | | Carrying Value | | | Estimated Fair Value | | ||||||||||||
Term loan | | | | $ | 223,223 | | | | | $ | 220,712 | | | | | $ | 221,496 | | | | | $ | 221,081 | | |
| | | Amount | | |||
Balance as of December 31, 2018 | | | | $ | 91,782 | | |
Acquisition | | | | | 9,788 | | |
Foreign currency translation adjustment | | | | | 102 | | |
Balance as of December 31, 2019 | | | | | 101,672 | | |
Acquisition | | | | | 13,105 | | |
Foreign currency translation adjustment | | | | | 973 | | |
Balance as of December 31, 2020 | | | | $ | 115,750 | | |
| | | December 31, 2019 | | |||||||||||||||||||||
| | | Gross Carrying Amount | | | Foreign Currency Translation | | | Accumulated Amortization | | | Net Amount | | ||||||||||||
Trade names and trademarks | | | | $ | 125,600 | | | | | $ | 99 | | | | | $ | 5,032 | | | | | $ | 120,667 | | |
Patented technology | | | | | 16,126 | | | | | | 14 | | | | | | 1,698 | | | | | | 14,442 | | |
Pool designs | | | | | 5,728 | | | | | | 59 | | | | | | 239 | | | | | | 5,548 | | |
Franchise relationships | | | | | 1,187 | | | | | | 12 | | | | | | 173 | | | | | | 1,026 | | |
Dealer relationships | | | | | 123,176 | | | | | | 5 | | | | | | 8,530 | | | | | | 114,651 | | |
Non-competition agreements | | | | | 2,476 | | | | | | — | | | | | | 513 | | | | | | 1,963 | | |
| | | | $ | 274,293 | | | | | $ | 189 | | | | | $ | 16,185 | | | | | $ | 258,297 | | |
| | | December 31, 2020 | | |||||||||||||||||||||
| | | Gross Carrying Amount | | | Foreign Currency Translation | | | Accumulated Amortization | | | Net Amount | | ||||||||||||
Trade names and trademarks | | | | $ | 135,100 | | | | | $ | 1,047 | | | | | $ | 10,258 | | | | | $ | 125,889 | | |
Patented technology | | | | | 16,126 | | | | | | 155 | | | | | | 3,452 | | | | | | 12,829 | | |
Pool designs | | | | | 5,728 | | | | | | 629 | | | | | | 648 | | | | | | 5,709 | | |
Franchise relationships | | | | | 1,187 | | | | | | 130 | | | | | | 470 | | | | | | 847 | | |
Dealer relationships | | | | | 160,376 | | | | | | 52 | | | | | | 17,697 | | | | | | 142,731 | | |
Non-competition agreements | | | | | 2,476 | | | | | | — | | | | | | 1,008 | | | | | | 1,468 | | |
| | | | $ | 320,993 | | | | | $ | 2,013 | | | | | $ | 33,533 | | | | | $ | 289,473 | | |
Year Ended | | | Estimated Future Amortization Expense | | |||
2021 | | | | $ | 21,959 | | |
2022 | | | | | 21,959 | | |
2023 | | | | | 21,768 | | |
2024 | | | | | 20,948 | | |
2025 | | | | | 20,791 | | |
Thereafter | | | | | 182,048 | | |
| | | | $ | 289,473 | | |
| | | December 31, | | | | | |||||||||
| | | 2019 | | | 2020 | | | ||||||||
Raw materials | | | | $ | 19,035 | | | | | $ | 37,010 | | | | ||
Finished goods | | | | | 16,576 | | | | | | 27,808 | | | | ||
| | | | $ | 35,611 | | | | | $ | 64,818 | | | |
| | | December 31, | | | | | |||||||||
| | | 2019 | | | 2020 | | | ||||||||
Land | | | | $ | 1,613 | | | | | $ | 1,613 | | | | ||
Building and improvements | | | | | 5,495 | | | | | | 5,898 | | | | ||
Machinery and equipment | | | | | 17,661 | | | | | | 21,478 | | | | ||
Furniture and fixtures | | | | | 511 | | | | | | 1,406 | | | | ||
Computer equipment and software | | | | | 5,090 | | | | | | 6,633 | | | | ||
Molds and dyes | | | | | 5,602 | | | | | | 9,051 | | | | ||
Leasehold improvements | | | | | 2,611 | | | | | | 3,573 | | | | ||
Vehicles | | | | | 2,338 | | | | | | 3,061 | | | | ||
Construction in progress | | | | | 3,046 | | | | | | 8,525 | | | | ||
| | | | | 43,967 | | | | | | 61,238 | | | | ||
Less: Accumulated depreciation | | | | | (6,122) | | | | | | (13,881) | | | | ||
| | | | $ | 37,845 | | | | | $ | 47,357 | | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Term loan | | | | $ | 232,191 | | | | | $ | 228,147 | | |
Less: Unamortized discount and debt issuance costs | | | | | (8,968) | | | | | | (6,651) | | |
Total debt | | | | | 223,223 | | | | | | 221,496 | | |
Less: Current portion of long-term debt | | | | | (6,891) | | | | | | (13,042) | | |
Total long-term debt | | | | $ | 216,332 | | | | | $ | 208,454 | | |
Leverage Ratio | | | Mandatory Prepayment Percentage | | |||
> 3.50:1.00 | | | | | 90% | | |
> 3.00:1.00 and ≤ 3.50:1.00 | | | | | 75% | | |
> 2.50:1.00 and ≤ 3.00:1.00 | | | | | 50% | | |
> 2.00:1.00 and ≤ 2.50:1.00 | | | | | 25% | | |
≤ 2.00:1.00 | | | | | 0% | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Cash interest expense | | | | $ | 19,488 | | | | | $ | 15,625 | | |
Amortization of debt issuance costs | | | | | 2,968 | | | | | | 2,179 | | |
Amortization of original issue discount | | | | | 183 | | | | | | 138 | | |
Interest rate swap | | | | | — | | | | | | 334 | | |
Gain on extinguishment of debt | | | | | — | | | | | | (25) | | |
Total interest expense | | | | $ | 22,639 | | | | | $ | 18,251 | | |
Year Ended | | | Term Loan Facility | | |||
2021 | | | | $ | 13,042 | | |
2022 | | | | | 13,042 | | |
2023 | | | | | 13,042 | | |
2024 | | | | | 13,042 | | |
2025 | | | | | 175,979 | | |
| | | | $ | 228,147 | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Accrued sales rebates | | | | $ | 6,520 | | | | | $ | 15,511 | | |
Accrued product warranties | | | | | 2,663 | | | | | | 2,705 | | |
Accrued incentives | | | | | 2,448 | | | | | | 11,244 | | |
Accrued vacation | | | | | 2,425 | | | | | | 3,805 | | |
Accrued payroll | | | | | 2,334 | | | | | | 6,098 | | |
Deferred offering costs | | | | | — | | | | | | 1,040 | | |
Accrued third-party services | | | | | 1,556 | | | | | | 2,172 | | |
Other | | | | | 4,287 | | | | | | 8,031 | | |
Total accrued expenses and other current liabilities | | | | $ | 22,233 | | | | | $ | 50,606 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Balance at the beginning of the year | | | | $ | 1,977 | | | | | $ | 2,846 | | |
Accruals for warranties issued | | | | | 3,729 | | | | | | 3,966 | | |
Warranty liabilities assumed in GLI Acquisition | | | | | — | | | | | | 118 | | |
Less: Settlements made (in cash or in kind) | | | | | (2,860) | | | | | | (4,048) | | |
Balance at the end of the year | | | | | 2,846 | | | | | | 2,882 | | |
Less: Current portion of accrued warranty costs | | | | | (2,663) | | | | | | (2,705) | | |
Accrued warranty costs – less current portion | | | | $ | 183 | | | | | $ | 177 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
In-ground Swimming Pools | | | | $ | 175,033 | | | | | $ | 237,410 | | |
Covers | | | | | 70,984 | | | | | | 84,524 | | |
Liners | | | | | 71,958 | | | | | | 81,455 | | |
| | | | $ | 317,975 | | | | | $ | 403,389 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Balance at the beginning of the year | | | | $ | 1,535 | | | | | $ | 1,322 | | |
Bad debt expense | | | | | 253 | | | | | | 358 | | |
Write-offs | | | | | (466) | | | | | | (242) | | |
Balance at the end of the year | | | | $ | 1,322 | | | | | $ | 1,438 | | |
| | | Year Ended December 31, | | ||||||
| | | 2019 | | | 2020 | | |||
Income (loss) before income taxes: | | | | | | | | | | |
Domestic | | | $9,939 | | | | $ | 19,609 | | |
Foreign | | | (7,153) | | | | | 3,150 | | |
Total | | | $2,786 | | | | $ | 22,759 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Current income tax (benefit) expense: | | | | | | | | | | | | | |
Domestic | | | | $ | 5,424 | | | | | $ | 10,342 | | |
Foreign | | | | | 131 | | | | | | 1,104 | | |
Total current tax (benefit) expense | | | | | 5,555 | | | | | | 11,446 | | |
Deferred income tax (benefit) expense: | | | | | | | | | | | | | |
Domestic | | | | | (10,020) | | | | | | (4,532) | | |
Foreign | | | | | (206) | | | | | | (138) | | |
Total deferred tax (benefit) expense | | | | | (10,226) | | | | | | (4,670) | | |
Total income tax (benefit) expense | | | | $ | (4,671) | | | | | $ | 6,776 | | |
| | | Year Ended December 31, 2019 | | | Year Ended December 31, 2020 | | ||||||
Federal statutory tax rate | | | | | 21.0% | | | | | | 21.0% | | |
Foreign taxes less than U.S. statutory rate | | | | | 1.1% | | | | | | 1.2% | | |
State income tax, net of federal benefit | | | | | (67.2)% | | | | | | 1.4% | | |
Uncertain tax positions | | | | | 348.2% | | | | | | 0.8% | | |
Change in valuation allowance | | | | | (5.9)% | | | | | | (1.1)% | | |
GILTI | | | | | 21.1% | | | | | | 1.5% | | |
Meals and entertainment | | | | | 6.8% | | | | | | 0.5% | | |
Foreign expenses not deductible for tax | | | | | 56.1% | | | | | | 1.7% | | |
Transaction costs not deductible for tax | | | | | 13.3% | | | | | | 2.0% | | |
Canadian restructuring | | | | | (562.4)% | | | | | | — | | |
Canadian Branch Income | | | | | 0.0% | | | | | | 1.8% | | |
Other expenses not deductible for tax | | | | | (0.1)% | | | | | | (1.0)% | | |
| | | | | (168.0)% | | | | | | 29.8% | | |
| | | Year Ended December 31 | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Balance at January 1 | | | | $ | (12,300) | | | | | $ | (12,463) | | |
Additions | | | | | (163) | | | | | | (241) | | |
Balance at December 31 | | | | $ | (12,463) | | | | | $ | (12,704) | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforwards | | | | $ | 12,110 | | | | | $ | 12,099 | | |
Inventories, net | | | | | 680 | | | | | | 473 | | |
Warranty reserve | | | | | 649 | | | | | | 789 | | |
Trade receivables | | | | | 477 | | | | | | 360 | | |
Profits interest units | | | | | 389 | | | | | | 760 | | |
Section 163(j) | | | | | 289 | | | | | | — | | |
Deferred taxes in equity | | | | | 257 | | | | | | 257 | | |
Accrued expenses | | | | | 224 | | | | | | 498 | | |
Transaction costs | | | | | 107 | | | | | | 607 | | |
Canadian tax credits | | | | | 86 | | | | | | 255 | | |
Other | | | | | 64 | | | | | | 216 | | |
Gross deferred tax assets | | | | | 15,332 | | | | | | 16,314 | | |
Valuation allowance | | | | | (12,463) | | | | | | (12,704) | | |
Total deferred tax asset | | | | | 2,869 | | | | | | 3,610 | | |
Less: Foreign deferred tax benefit | | | | | (206) | | | | | | (345) | | |
Total domestic deferred tax asset | | | | | 2,663 | | | | | | 3,265 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Intangible assets | | | | | (57,221) | | | | | | (53,874) | | |
Property and equipment, net | | | | | (4,677) | | | | | | (4,120) | | |
Prepaid expenses | | | | | (773) | | | | | | (464) | | |
Total deferred tax liabilities | | | | | (62,671) | | | | | | (58,458) | | |
Net deferred tax liabilities | | | | $ | (60,008) | | | | | $ | (55,193) | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Balance at the beginning of the year | | | | $ | — | | | | | $ | 9,681 | | |
Additions for tax positions taken during prior years | | | | | — | | | | | | 181 | | |
Additions for tax positions taken during the current year | | | | | 9,681 | | | | | | — | | |
Balance at the end of the year | | | | $ | 9,681 | | | | | $ | 9,862 | | |
| Year Ended | | | | | | | |
| 2021 | | | | $ | 6,484 | | |
| 2022 | | | | | 5,971 | | |
| 2023 | | | | | 4,455 | | |
| 2024 | | | | | 3,834 | | |
| 2025 | | | | | 3,491 | | |
| Thereafter | | | | | 5,094 | | |
| | | | | $ | 29,329 | | |
| | | Number of PIUs | | | Weighted-Average Grant-Date Fair Value | | ||||||
Balance at January 1, 2019 | | | | | 20,890,124 | | | | | $ | 0.41 | | |
Granted | | | | | 3,692,699 | | | | | $ | 0.38 | | |
Forfeited | | | | | (2,848,653) | | | | | $ | 0.41 | | |
Balance at December 31, 2019 | | | | | 21,734,170 | | | | | | | | |
Granted | | | | | 7,843,107 | | | | | $ | 0.60 | | |
Forfeited | | | | | (2,152,315) | | | | | $ | 0.35 | | |
Balance at December 31, 2020 | | | | | 27,424,962 | | | | | $ | 0.43 | | |
| | | Year Ended December 31, 2019 | | | Year Ended December 31, 2020 | | ||||||
Expected volatility | | | | | 49.00% | | | | | | 55.00% | | |
Risk-free interest rate | | | | | 1.90% | | | | | | 0.20% | | |
Expected term (in years) | | | | | 4.6 | | | | | | 3.2 | | |
Expected dividend yield | | | | | —% | | | | | | —% | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Numerator: | | | | | | | | | | | | | |
Net income attributable to common stockholders | | | | $ | 7,457 | | | | | $ | 15,983 | | |
Denominator: | | | | | | | | | | | | | |
Weighted-average common shares outstanding, basic and diluted | | | | | 109,673,709 | | | | | | 116,469,884 | | |
Net income per share attributable to common stockholders, basic and diluted | | | | $ | 0.07 | | | | | $ | 0.14 | | |
| | | Estimated Useful Life | |
Building and improvements | | | 25 years | |
Molds and dyes | | | 5 – 10 years | |
Machinery and equipment (including computer equipment and software) | | | 3 – 10 years | |
Furniture and fixtures | | | 5 – 7 years | |
Vehicles | | | 5 years | |
Asset | | | Estimated Useful Life | |
Patented technology | | | 5 – 10 years | |
Trade names and trademarks | | | 9 – 25 years | |
Pool designs | | | 14 years | |
Franchise relationships | | | 4 years | |
Dealer relationships | | | 5 – 15 years | |
Non-competition agreements | | | 5 years | |
(in thousands) | | | May 31, 2019 | | |||
Total consideration | | | | $ | 35,233 | | |
Allocation of purchase price: | | | | | | | |
Cash | | | | | 24 | | |
Trade receivables | | | | | 1,420 | | |
Inventories | | | | | 4,501 | | |
Prepaid expenses and other current assets | | | | | 472 | | |
Property and equipment | | | | | 4,861 | | |
Intangible assets | | | | | 18,332 | | |
Deferred tax asset | | | | | 126 | | |
Total assets acquired | | | | | 29,736 | | |
Accounts payable | | | | | 3,379 | | |
Accrued expenses and other current liabilities | | | | | 442 | | |
Deferred tax liabilities | | | | | 470 | | |
Total liabilities assumed | | | | | 4,291 | | |
Total fair value of net assets acquired, excluding goodwill: | | | | | 25,445 | | |
Goodwill | | | | $ | 9,788 | | |
(in thousands) | | | Amount | | |||
Cash consideration | | | | $ | 20,238 | | |
Fair value of equity consideration | | | | | 7,567 | | |
Fair value of contingent consideration | | | | | 7,428 | | |
Total consideration | | | | $ | 35,233 | | |
Definite-lived intangible assets: | | | Fair Value (in thousands) | | | Amortization Period (in years) | | ||||||
Trade names and trademarks | | | | $ | 9,535 | | | | | | 25 | | |
Pool designs | | | | | 5,728 | | | | | | 14 | | |
Patented technology | | | | | 1,410 | | | | | | 5 | | |
Franchise relationships | | | | | 1,187 | | | | | | 4 | | |
Dealer relationships | | | | | 472 | | | | | | 5 | | |
(in thousands) | | | Year Ended December 31, 2019 | | |||
Net sales | | | | $ | 15,893 | | |
Net loss | | | | $ | (1,047) | | |
(in thousands) | | | October 22, 2020 | | |||
Total consideration | | | | $ | 79,743 | | |
Allocation of purchase price: | | | | | | | |
Cash | | | | | 5,007 | | |
Trade receivables | | | | | 10,639 | | |
Inventories | | | | | 11,854 | | |
Prepaid expenses and other current assets | | | | | 3,949 | | |
Property and equipment | | | | | 1,402 | | |
Intangible assets | | | | | 46,700 | | |
Total assets acquired | | | | | 79,551 | | |
Accounts payable | | | | | 3,536 | | |
Accrued expenses and other current liabilities | | | | | 8,853 | | |
Other long-term liabilities | | | | | 524 | | |
Total liabilities assumed | | | | | 12,913 | | |
Total fair value of net assets acquired, excluding goodwill: | | | | | 66,638 | | |
Goodwill | | | | $ | 13,105 | | |
Definite-lived intangible assets: | | | Fair Value (in thousands) | | | Amortization Period (in years) | | ||||||
Trade names | | | | $ | 9,500 | | | | | | 9 | | |
Dealer relationships | | | | | 37,200 | | | | | | 8 | | |
| | | | $ | 46,700 | | | | | | | | |
(in thousands) | | | Year Ended December 31, 2020 | | |||
Net sales | | | | $ | 7,689 | | |
Net loss | | | | $ | (1,123) | | |
| | | Year Ended December 31, | | |||||||||
(in thousands) | | | 2019 | | | 2020 | | ||||||
Net sales | | | | $ | 382,029 | | | | | $ | 462,802 | | |
Net income | | | | $ | 6,066 | | | | | $ | 26,344 | | |
| | | Fair Value | | |||
Balance as of May 31, 2019 | | | | $ | 7,428 | | |
Change in fair value of Contingent Consideration | | | | | 1,441 | | |
Foreign currency translation adjustment | | | | | 109 | | |
Balance as of December 31, 2019 | | | | | 8,978 | | |
Change in fair value of Contingent Consideration | | | | | (204) | | |
Foreign currency translation adjustment | | | | | 58 | | |
Payment of Contingent Consideration and issuance of Class A units (see Note 3) | | | | | (8,832) | | |
Balance as of September 25, 2020 | | | | $ | — | | |
| | | Year Ended December 31, 2019 | | |||
EBITDA risk adjustment | | | | | 17.30% | | |
Annual EBITDA volatility | | | | | 55.00% | | |
Risk-free rate of return | | | | | 2.10% | | |
| | | December 31, | | |||||||||||||||||||||
| | | 2019 | | | 2020 | | ||||||||||||||||||
| | | Carrying Value | | | Estimated Fair Value | | | Carrying Value | | | Estimated Fair Value | | ||||||||||||
Term loan | | | | $ | 223,223 | | | | | $ | 220,712 | | | | | $ | 221,496 | | | | | $ | 221,081 | | |
| | | Amount | | |||
Balance as of December 31, 2018 | | | | $ | 91,782 | | |
Acquisition | | | | | 9,788 | | |
Foreign currency translation adjustment | | | | | 102 | | |
Balance as of December 31, 2019 | | | | | 101,672 | | |
Acquisition | | | | | 13,105 | | |
Foreign currency translation adjustment | | | | | 973 | | |
Balance as of December 31, 2020 | | | | $ | 115,750 | | |
| | | December 31, 2019 | | |||||||||||||||||||||
| | | Gross Carrying Amount | | | Foreign Currency Translation | | | Accumulated Amortization | | | Net Amount | | ||||||||||||
Trade names and trademarks | | | | $ | 125,600 | | | | | $ | 99 | | | | | $ | 5,032 | | | | | $ | 120,667 | | |
Patented technology | | | | | 16,126 | | | | | | 14 | | | | | | 1,698 | | | | | | 14,442 | | |
Pool designs | | | | | 5,728 | | | | | | 59 | | | | | | 239 | | | | | | 5,548 | | |
Franchise relationships | | | | | 1,187 | | | | | | 12 | | | | | | 173 | | | | | | 1,026 | | |
Dealer relationships | | | | | 123,176 | | | | | | 5 | | | | | | 8,530 | | | | | | 114,651 | | |
Non-competition agreements | | | | | 2,476 | | | | | | — | | | | | | 513 | | | | | | 1,963 | | |
| | | | $ | 274,293 | | | | | $ | 189 | | | | | $ | 16,185 | | | | | $ | 258,297 | | |
| | | December 31, 2020 | | |||||||||||||||||||||
| | | Gross Carrying Amount | | | Foreign Currency Translation | | | Accumulated Amortization | | | Net Amount | | ||||||||||||
Trade names and trademarks | | | | $ | 135,100 | | | | | $ | 1,047 | | | | | $ | 10,258 | | | | | $ | 125,889 | | |
Patented technology | | | | | 16,126 | | | | | | 155 | | | | | | 3,452 | | | | | | 12,829 | | |
Pool designs | | | | | 5,728 | | | | | | 629 | | | | | | 648 | | | | | | 5,709 | | |
Franchise relationships | | | | | 1,187 | | | | | | 130 | | | | | | 470 | | | | | | 847 | | |
Dealer relationships | | | | | 160,376 | | | | | | 52 | | | | | | 17,697 | | | | | | 142,731 | | |
Non-competition agreements | | | | | 2,476 | | | | | | — | | | | | | 1,008 | | | | | | 1,468 | | |
| | | | $ | 320,993 | | | | | $ | 2,013 | | | | | $ | 33,533 | | | | | $ | 289,473 | | |
Year Ended | | | Estimated Future Amortization Expense | | |||
2021 | | | | $ | 21,959 | | |
2022 | | | | | 21,959 | | |
2023 | | | | | 21,768 | | |
2024 | | | | | 20,948 | | |
2025 | | | | | 20,791 | | |
Thereafter | | | | | 182,048 | | |
| | | | $ | 289,473 | | |
| | | December 31, | | | | | |||||||||
| | | 2019 | | | 2020 | | | ||||||||
Raw materials | | | | $ | 19,035 | | | | | $ | 37,010 | | | | ||
Finished goods | | | | | 16,576 | | | | | | 27,808 | | | | ||
| | | | $ | 35,611 | | | | | $ | 64,818 | | | |
| | | December 31, | | | | | |||||||||
| | | 2019 | | | 2020 | | | ||||||||
Land | | | | $ | 1,613 | | | | | $ | 1,613 | | | | ||
Building and improvements | | | | | 5,495 | | | | | | 5,898 | | | | ||
Machinery and equipment | | | | | 17,661 | | | | | | 21,478 | | | | ||
Furniture and fixtures | | | | | 511 | | | | | | 1,406 | | | | ||
Computer equipment and software | | | | | 5,090 | | | | | | 6,633 | | | | ||
Molds and dyes | | | | | 5,602 | | | | | | 9,051 | | | | ||
Leasehold improvements | | | | | 2,611 | | | | | | 3,573 | | | | ||
Vehicles | | | | | 2,338 | | | | | | 3,061 | | | | ||
Construction in progress | | | | | 3,046 | | | | | | 8,525 | | | | ||
| | | | | 43,967 | | | | | | 61,238 | | | | ||
Less: Accumulated depreciation | | | | | (6,122) | | | | | | (13,881) | | | | ||
| | | | $ | 37,845 | | | | | $ | 47,357 | | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Term loan | | | | $ | 232,191 | | | | | $ | 228,147 | | |
Less: Unamortized discount and debt issuance costs | | | | | (8,968) | | | | | | (6,651) | | |
Total debt | | | | | 223,223 | | | | | | 221,496 | | |
Less: Current portion of long-term debt | | | | | (6,891) | | | | | | (13,042) | | |
Total long-term debt | | | | $ | 216,332 | | | | | $ | 208,454 | | |
Leverage Ratio | | | Mandatory Prepayment Percentage | | |||
> 3.50:1.00 | | | | | 90% | | |
> 3.00:1.00 and ≤ 3.50:1.00 | | | | | 75% | | |
> 2.50:1.00 and ≤ 3.00:1.00 | | | | | 50% | | |
> 2.00:1.00 and ≤ 2.50:1.00 | | | | | 25% | | |
≤ 2.00:1.00 | | | | | 0% | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Cash interest expense | | | | $ | 19,488 | | | | | $ | 15,625 | | |
Amortization of debt issuance costs | | | | | 2,968 | | | | | | 2,179 | | |
Amortization of original issue discount | | | | | 183 | | | | | | 138 | | |
Interest rate swap | | | | | — | | | | | | 334 | | |
Gain on extinguishment of debt | | | | | — | | | | | | (25) | | |
Total interest expense | | | | $ | 22,639 | | | | | $ | 18,251 | | |
Year Ended | | | Term Loan Facility | | |||
2021 | | | | $ | 13,042 | | |
2022 | | | | | 13,042 | | |
2023 | | | | | 13,042 | | |
2024 | | | | | 13,042 | | |
2025 | | | | | 175,979 | | |
| | | | $ | 228,147 | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Accrued sales rebates | | | | $ | 6,520 | | | | | $ | 15,511 | | |
Accrued product warranties | | | | | 2,663 | | | | | | 2,705 | | |
Accrued incentives | | | | | 2,448 | | | | | | 11,244 | | |
Accrued vacation | | | | | 2,425 | | | | | | 3,805 | | |
Accrued payroll | | | | | 2,334 | | | | | | 6,098 | | |
Deferred offering costs | | | | | — | | | | | | 1,040 | | |
Accrued third-party services | | | | | 1,556 | | | | | | 2,172 | | |
Other | | | | | 4,287 | | | | | | 8,031 | | |
Total accrued expenses and other current liabilities | | | | $ | 22,233 | | | | | $ | 50,606 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Balance at the beginning of the year | | | | $ | 1,977 | | | | | $ | 2,846 | | |
Accruals for warranties issued | | | | | 3,729 | | | | | | 3,966 | | |
Warranty liabilities assumed in GLI Acquisition | | | | | — | | | | | | 118 | | |
Less: Settlements made (in cash or in kind) | | | | | (2,860) | | | | | | (4,048) | | |
Balance at the end of the year | | | | | 2,846 | | | | | | 2,882 | | |
Less: Current portion of accrued warranty costs | | | | | (2,663) | | | | | | (2,705) | | |
Accrued warranty costs – less current portion | | | | $ | 183 | | | | | $ | 177 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
In-ground Swimming Pools | | | | $ | 175,033 | | | | | $ | 237,410 | | |
Covers | | | | | 70,984 | | | | | | 84,524 | | |
Liners | | | | | 71,958 | | | | | | 81,455 | | |
| | | | $ | 317,975 | | | | | $ | 403,389 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Balance at the beginning of the year | | | | $ | 1,535 | | | | | $ | 1,322 | | |
Bad debt expense | | | | | 253 | | | | | | 358 | | |
Write-offs | | | | | (466) | | | | | | (242) | | |
Balance at the end of the year | | | | $ | 1,322 | | | | | $ | 1,438 | | |
| | | Year Ended December 31, | | ||||||
| | | 2019 | | | 2020 | | |||
Income (loss) before income taxes: | | | | | | | | | | |
Domestic | | | $9,939 | | | | $ | 19,609 | | |
Foreign | | | (7,153) | | | | | 3,150 | | |
Total | | | $2,786 | | | | $ | 22,759 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Current income tax (benefit) expense: | | | | | | | | | | | | | |
Domestic | | | | $ | 5,424 | | | | | $ | 10,342 | | |
Foreign | | | | | 131 | | | | | | 1,104 | | |
Total current tax (benefit) expense | | | | | 5,555 | | | | | | 11,446 | | |
Deferred income tax (benefit) expense: | | | | | | | | | | | | | |
Domestic | | | | | (10,020) | | | | | | (4,532) | | |
Foreign | | | | | (206) | | | | | | (138) | | |
Total deferred tax (benefit) expense | | | | | (10,226) | | | | | | (4,670) | | |
Total income tax (benefit) expense | | | | $ | (4,671) | | | | | $ | 6,776 | | |
| | | Year Ended December 31, 2019 | | | Year Ended December 31, 2020 | | ||||||
Federal statutory tax rate | | | | | 21.0% | | | | | | 21.0% | | |
Foreign taxes less than U.S. statutory rate | | | | | 1.1% | | | | | | 1.2% | | |
State income tax, net of federal benefit | | | | | (67.2)% | | | | | | 1.4% | | |
Uncertain tax positions | | | | | 348.2% | | | | | | 0.8% | | |
Change in valuation allowance | | | | | (5.9)% | | | | | | (1.1)% | | |
GILTI | | | | | 21.1% | | | | | | 1.5% | | |
Meals and entertainment | | | | | 6.8% | | | | | | 0.5% | | |
Foreign expenses not deductible for tax | | | | | 56.1% | | | | | | 1.7% | | |
Transaction costs not deductible for tax | | | | | 13.3% | | | | | | 2.0% | | |
Canadian restructuring | | | | | (562.4)% | | | | | | — | | |
Canadian Branch Income | | | | | 0.0% | | | | | | 1.8% | | |
Other expenses not deductible for tax | | | | | (0.1)% | | | | | | (1.0)% | | |
| | | | | (168.0)% | | | | | | 29.8% | | |
| | | Year Ended December 31 | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Balance at January 1 | | | | $ | (12,300) | | | | | $ | (12,463) | | |
Additions | | | | | (163) | | | | | | (241) | | |
Balance at December 31 | | | | $ | (12,463) | | | | | $ | (12,704) | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforwards | | | | $ | 12,110 | | | | | $ | 12,099 | | |
Inventories, net | | | | | 680 | | | | | | 473 | | |
Warranty reserve | | | | | 649 | | | | | | 789 | | |
Trade receivables | | | | | 477 | | | | | | 360 | | |
Profits interest units | | | | | 389 | | | | | | 760 | | |
Section 163(j) | | | | | 289 | | | | | | — | | |
Deferred taxes in equity | | | | | 257 | | | | | | 257 | | |
Accrued expenses | | | | | 224 | | | | | | 498 | | |
Transaction costs | | | | | 107 | | | | | | 607 | | |
Canadian tax credits | | | | | 86 | | | | | | 255 | | |
Other | | | | | 64 | | | | | | 216 | | |
Gross deferred tax assets | | | | | 15,332 | | | | | | 16,314 | | |
Valuation allowance | | | | | (12,463) | | | | | | (12,704) | | |
Total deferred tax asset | | | | | 2,869 | | | | | | 3,610 | | |
Less: Foreign deferred tax benefit | | | | | (206) | | | | | | (345) | | |
Total domestic deferred tax asset | | | | | 2,663 | | | | | | 3,265 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Intangible assets | | | | | (57,221) | | | | | | (53,874) | | |
Property and equipment, net | | | | | (4,677) | | | | | | (4,120) | | |
Prepaid expenses | | | | | (773) | | | | | | (464) | | |
Total deferred tax liabilities | | | | | (62,671) | | | | | | (58,458) | | |
Net deferred tax liabilities | | | | $ | (60,008) | | | | | $ | (55,193) | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Balance at the beginning of the year | | | | $ | — | | | | | $ | 9,681 | | |
Additions for tax positions taken during prior years | | | | | — | | | | | | 181 | | |
Additions for tax positions taken during the current year | | | | | 9,681 | | | | | | — | | |
Balance at the end of the year | | | | $ | 9,681 | | | | | $ | 9,862 | | |
| Year Ended | | | | | | | |
| 2021 | | | | $ | 6,484 | | |
| 2022 | | | | | 5,971 | | |
| 2023 | | | | | 4,455 | | |
| 2024 | | | | | 3,834 | | |
| 2025 | | | | | 3,491 | | |
| Thereafter | | | | | 5,094 | | |
| | | | | $ | 29,329 | | |
| | | Number of PIUs | | | Weighted-Average Grant-Date Fair Value | | ||||||
Balance at January 1, 2019 | | | | | 20,890,124 | | | | | $ | 0.41 | | |
Granted | | | | | 3,692,699 | | | | | $ | 0.38 | | |
Forfeited | | | | | (2,848,653) | | | | | $ | 0.41 | | |
Balance at December 31, 2019 | | | | | 21,734,170 | | | | | | | | |
Granted | | | | | 7,843,107 | | | | | $ | 0.60 | | |
Forfeited | | | | | (2,152,315) | | | | | $ | 0.35 | | |
Balance at December 31, 2020 | | | | | 27,424,962 | | | | | $ | 0.43 | | |
| | | Year Ended December 31, 2019 | | | Year Ended December 31, 2020 | | ||||||
Expected volatility | | | | | 49.00% | | | | | | 55.00% | | |
Risk-free interest rate | | | | | 1.90% | | | | | | 0.20% | | |
Expected term (in years) | | | | | 4.6 | | | | | | 3.2 | | |
Expected dividend yield | | | | | —% | | | | | | —% | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Numerator: | | | | | | | | | | | | | |
Net income attributable to common stockholders | | | | $ | 7,457 | | | | | $ | 15,983 | | |
Denominator: | | | | | | | | | | | | | |
Weighted-average common shares outstanding, basic and diluted | | | | | 109,673,709 | | | | | | 116,469,884 | | |
Net income per share attributable to common stockholders, basic and diluted | | | | $ | 0.07 | | | | | $ | 0.14 | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Net sales | | | | | | | | | | | | | |
United States | | | | $ | 257,786 | | | | | $ | 325,716 | | |
Canada | | | | | 43,157 | | | | | | 50,499 | | |
Australia | | | | | 12,126 | | | | | | 20,181 | | |
New Zealand | | | | | 2,432 | | | | | | 3,984 | | |
Other | | | | | 2,474 | | | | | | 3,009 | | |
Total | | | | $ | 317,975 | | | | | $ | 403,389 | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Long-lived assets | | | | | | | | | | | | | |
United States | | | | $ | 30,433 | | | | | $ | 37,680 | | |
Canada | | | | | 2,279 | | | | | | 3,050 | | |
Australia | | | | | 4,094 | | | | | | 4,979 | | |
New Zealand | | | | | 1,039 | | | | | | 1,648 | | |
Total | | | | $ | 37,845 | | | | | $ | 47,357 | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Investment in subsidiary | | | | $ | 193,795 | | | | | $ | 281,609 | | |
Total assets | | | | $ | 193,795 | | | | | $ | 281,609 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Related party note payable | | | | $ | — | | | | | $ | 64,938 | | |
Total liabilities | | | | | — | | | | | | 64,938 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 500,000,000 shares authorized at December 31, 2019 and 2020; 109,673,709 shares issued and outstanding as of December 31, 2019 and 2020 | | | | | 11 | | | | | | 11 | | |
Additional paid-in capital | | | | | 196,473 | | | | | | 200,541 | | |
Retained earnings (accumulated deficit) | | | | | (2,218) | | | | | | 13,765 | | |
Accumulated other comprehensive income (loss) | | | | | (471) | | | | | | 2,354 | | |
Total stockholders’ equity | | | | | 193,795 | | | | | | 216,671 | | |
Total liabilities and stockholders’ equity | | | | $ | 193,795 | | | | | $ | 281,609 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Equity in net income of subsidiary | | | | $ | 7,457 | | | | | $ | 15,983 | | |
Net income | | | | $ | 7,457 | | | | | $ | 15,983 | | |
Net income per share | | | | | | | | | | | | | |
Net income per share attributable to common stockholders – basic and diluted | | | | $ | 0.07 | | | | | $ | 0.14 | | |
Weighted-average common shares outstanding – basic and diluted | | | | | 109,673,709 | | | | | | 116,469,884 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Net income | | | | $ | 7,457 | | | | | $ | 15,983 | | |
Equity in other comprehensive income (loss) of subsidiary | | | | | (670) | | | | | | 2,825 | | |
Comprehensive income | | | | $ | 6,787 | | | | | $ | 18,808 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 7,457 | | | | | $ | 15,983 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Equity in net income of subsidiary | | | | | (7,457) | | | | | | (15,983) | | |
Net cash provided by operating activities | | | | | — | | | | | | — | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Investment in subsidiary | | | | | — | | | | | | (64,938) | | |
Net cash used in investing activities | | | | | — | | | | | | (64,938) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from issuance of common stock | | | | | — | | | | | | 64,938 | | |
Net cash provided by financing activities | | | | | — | | | | | | 64,938 | | |
Net increase in cash | | | | | — | | | | | | — | | |
Cash at beginning of period | | | | | — | | | | | | — | | |
Cash at end of period | | | | $ | — | | | | | $ | — | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for interest | | | | $ | — | | | | | $ | — | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Related party note entered into for purchase of treasury stock | | | | $ | — | | | | | $ | 64,938 | | |
| SEC registration fee | | | | $ | 52,695 | | |
| Stock exchange listing fee | | | | | 295,000 | | |
| FINRA filing fee | | | | | 35,000 | | |
| Printing expenses | | | | | 250,000 | | |
| Legal fees and expenses | | | | | 3,200,000 | | |
| Accounting fees and expenses | | | | | 2,180,000 | | |
| Blue Sky fees and expenses | | | | | 15,000 | | |
| Transfer agent and registrar fees | | | | | 5,000 | | |
| Miscellaneous | | | | | 267,305 | | |
| Total | | | | $ | 6,300,000 | | |
Exhibit Number | | | Exhibit Description | |
| | | ||
| | | ||
23.1 | | | | |
23.2 | | | | |
| | | ||
| | |
| Signature | | | Title | | | Date | |
| /s/ Scott M. Rajeski Scott M. Rajeski | | | Chief Executive Officer and President; Director (Principal Executive Officer) | | | | |
| /s/ James Mark Borseth James Mark Borseth | | | Chief Financial Officer (Principal Financial Officer) | | | | |
| /s/ Suraj Kunchala Suraj Kunchala | | | Vice President and Controller (Principal Accounting Officer) | | | | |
| William M. Pruellage | | | Director | | | | |
| Andrew D. Singer | | | Director | | | | |
| Christopher P. O’Brien | | | Director | | |
| ||||||||
| Mark P. Laven | | | Director | | | | |
| James E. Cline | | | Director | | | | |
| Robert D. Evans | | | Director | | | | |
| Alexander L. Hawkinson | | | Director | | | | |
| Suzan Morno-Wade | | | Director | | | |