Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Apr. 04, 2015 | 6-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 4-Apr-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PGTI | |
Entity Registrant Name | PGT, Inc. | |
Entity Central Index Key | 1354327 | |
Current Fiscal Year End Date | -1 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 47,747,539 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Income Statement [Abstract] | ||
Net sales | $95,301 | $62,724 |
Cost of sales | 64,254 | 42,953 |
Gross profit | 31,047 | 19,771 |
Selling, general and administrative expenses | 17,664 | 13,377 |
Income from operations | 13,383 | 6,394 |
Interest expense, net | 2,913 | 898 |
Other expense, net | 99 | 177 |
Income before income taxes | 10,371 | 5,319 |
Income tax expense | 3,719 | 1,967 |
Net income | 6,652 | 3,352 |
Net income per common share: | ||
Basic | $0.14 | $0.07 |
Diluted | $0.13 | $0.07 |
Weighted average shares outstanding: | ||
Basic | 47,721 | 47,150 |
Diluted | 50,032 | 49,727 |
Comprehensive income | $6,685 | $3,262 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $48,742 | $42,469 |
Accounts receivable, net | 33,009 | 25,374 |
Inventories | 21,271 | 19,970 |
Prepaid expenses and other current assets | 5,284 | 6,464 |
Deferred income taxes | 5,138 | 5,160 |
Total current assets | 113,444 | 99,437 |
Property, plant and equipment, net | 63,026 | 60,898 |
Trade name and other intangible assets, net | 81,906 | 82,724 |
Goodwill | 66,580 | 66,580 |
Other assets, net | 2,002 | 2,110 |
Total assets | 326,958 | 311,749 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 25,123 | 17,328 |
Current portion of long-term debt | 1,962 | 1,962 |
Total current liabilities | 27,085 | 19,290 |
Long-term debt, less current portion | 191,441 | 191,792 |
Deferred income taxes | 25,956 | 25,956 |
Other liabilities | 840 | 735 |
Total liabilities | 245,322 | 237,773 |
Shareholders' equity: | ||
Preferred stock; par value $.01 per share; 10,000 shares authorized; none outstanding | ||
Common stock; par value $.01 per share; 200,000 shares authorized; 50,083 and 49,985 shares issued and 47,748 and 47,707 shares outstanding at April 4, 2015 and January 3, 2015, respectively | 501 | 498 |
Additional paid-in-capital | 238,167 | 238,229 |
Accumulated other comprehensive loss | -1,638 | -1,671 |
Accumulated deficit | -145,357 | -152,009 |
Shareholders' equity | 91,673 | 85,047 |
Less: Treasury stock at cost | -10,037 | -11,071 |
Total shareholders' equity | 81,636 | 73,976 |
Total liabilities and shareholders' equity | $326,958 | $311,749 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, Shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, Shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 50,083,000 | 49,985,000 |
Common stock, shares outstanding | 47,748,000 | 47,707,000 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Cash flows from operating activities: | ||
Net income | $6,652 | $3,352 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,550 | 986 |
Amortization | 818 | 428 |
Provision for (recovery of) allowance for doubtful accounts | 22 | -87 |
Stock-based compensation | 474 | 245 |
Amortization of deferred financing costs | 215 | 234 |
Derivative financial instruments | 55 | 433 |
Deferred income taxes | 22 | 429 |
Tax benefit on exercised stock options | -470 | -1,538 |
Loss on disposal of assets | 9 | |
Change in operating assets and liabilities: | ||
Accounts receivable | -7,907 | -1,852 |
Inventories | -1,301 | -2,417 |
Prepaid expenses and other current assets | 192 | 486 |
Accounts payable, accrued and other liabilities | 9,902 | 2,804 |
Net cash provided by operating activities | 10,233 | 3,503 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | -3,952 | -3,203 |
Net cash used in investing activities | -3,952 | -3,203 |
Cash flows from financing activities: | ||
Payments of long-term debt | -500 | -1,000 |
Purchases of treasury stock | -4 | -963 |
Proceeds from exercise of stock options | 35 | 698 |
Tax benefit on exercised stock options | 470 | 1,538 |
Other | -9 | |
Net cash (used in) provided by financing activities | -8 | 273 |
Net increase in cash and cash equivalents | 6,273 | 573 |
Cash and cash equivalents at beginning of period | 42,469 | 30,204 |
Cash and cash equivalents at end of period | 48,742 | 30,777 |
Non-cash activity: | ||
Property, plant and equipment additions in accounts payable | $225 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Apr. 04, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE 1. BASIS OF PRESENTATION |
The accompanying unaudited condensed consolidated financial statements include the accounts of PGT, Inc. and its wholly-owned subsidiary, PGT Industries, Inc., and its wholly-owned subsidiary CGI Window and Holdings, Inc. (collectively the “Company”), after elimination of intercompany accounts and transactions. These statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by United States Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim period are not necessarily indicative of the results that may be expected for the remainder of the current year or for any future periods. Each of our Company’s fiscal quarters ended April 4, 2015 and March 29, 2014, consisted of 13 weeks. | |
The Condensed Consolidated Balance Sheet as of January 3, 2015, is derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP. The Condensed Consolidated Balance Sheet as of January 3, 2015, and the unaudited condensed consolidated financial statements as of and for the period ended April 4, 2015, should be read in conjunction with the more detailed audited consolidated financial statements for the year ended January 3, 2015, included in the Company’s most recent Annual Report on Form 10-K. Accounting policies used in the preparation of these unaudited condensed consolidated financial statements are consistent with the accounting policies described in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K. | |
Recently Adopted Accounting Pronouncements | |
In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for reporting discontinued operations. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of, or is classified as held for sale, and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Major strategic shifts include disposals of a significant geographic area or line of business. The new standard allows an entity to have significant continuing involvement and cash flows with the discontinued operation. The standard requires expanded disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. This new guidance is effective for annual reporting periods beginning on or after December 15, 2014, and interim periods within those annual periods, with early adoption permitted only for disposals (or classifications as held for sale) that have not been previously reported. The adoption of this standard did not have a significant impact on our consolidated financial statements. |
Warranty
Warranty | 3 Months Ended | ||||||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||
Warranty | NOTE 2. WARRANTY | ||||||||||||||||||||
Most of our manufactured products are sold with warranties. Warranty periods, which vary by product components, generally range from 1 to 10 years; however, the warranty period for a limited number of specifically identified components in certain applications is a lifetime. The majority of the products sold have warranties on components which range from 1 to 3 years. The reserve for warranties is based on management’s assessment of the cost per service call and the number of service calls expected to be incurred to satisfy warranty obligations on the current net sales. | |||||||||||||||||||||
During the three months ended April 4, 2015, we recorded warranty expense at a rate of 2.00% of sales. This rate is higher than the 1.75% of sales accrued in the first three months of 2014, due to an increase in warranty claims experience. | |||||||||||||||||||||
The following table summarizes: current period charges, adjustments to previous estimates, if necessary, as well as settlements, which represent actual costs incurred during the period for the three months ended April 4, 2015, and March 29, 2014. The reserve is determined through specific identification and assessing Company history. Expected future obligations are discounted to a current value using a risk-free rate for obligations with similar maturities. | |||||||||||||||||||||
The following provides information with respect to our warranty accrual: | |||||||||||||||||||||
Accrued Warranty | Beginning | Charged | Adjustments | Settlements | End of | ||||||||||||||||
of Period | to Expense | Period | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Quarter ended April 4, 2015 | $ | 3,302 | $ | 1,908 | $ | 189 | $ | (1,791 | ) | $ | 3,608 | ||||||||||
Quarter ended March 29, 2014 | $ | 2,666 | $ | 1,098 | $ | 90 | $ | (1,198 | ) | $ | 2,656 |
Inventories
Inventories | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | NOTE 3. INVENTORIES | ||||||||
Inventories consist principally of raw materials purchased for the manufacture of our products. We have limited finished goods inventory since all products are custom, made-to-order and usually ship upon completion. Finished goods inventory costs include direct materials, direct labor, and overhead. All inventories are stated at the lower of cost (first-in, first-out method) or market value. Inventories consisted of the following: | |||||||||
April 4, | January 3, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Raw materials | $ | 17,768 | $ | 16,674 | |||||
Work in progress | 824 | 791 | |||||||
Finished goods | 2,679 | 2,505 | |||||||
$ | 21,271 | $ | 19,970 | ||||||
Stock_BasedCompensation
Stock Based-Compensation | 3 Months Ended |
Apr. 04, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based-Compensation | NOTE 4. STOCK BASED-COMPENSATION |
Exercises | |
For the three months ended April 4, 2015, there were 17,700 options exercised at a weighted average exercise price of $2.00 per share. | |
Issuance | |
On March 4, 2015, we granted 178,256 restricted stock awards to certain executives and non-executive employees of the Company. The restrictions on these stock awards lapse over time based solely on continued service. However, the quantity of restricted shares granted on half of these shares, or 89,128 shares, is fixed, whereas the quantity granted on the remaining half, or 89,128 shares, is subject to Company-specific performance criteria. The restricted stock awards have a fair value on date of grant of $10.95 per share based on the closing NASDAQ market price of the common stock on the day prior to day the awards were granted. Those restricted shares whose quantity is fixed vest in equal amounts over a three-year period on the first, second and third anniversary dates of the grant. Those restricted shares whose quantity is subject to Company performance criteria vest in equal amounts over a two-year period on the second and third anniversary dates of the grant. | |
The performance criteria, as defined in the share awards, provides for a graded awarding of shares based on the percentage by which the Company meets earnings before interest and taxes, as defined, in our 2015 business plan. The performance percentages, ranging from less than 80% to greater than 120%, provide for the awarding of shares ranging from no shares to 150% of the original amount of shares. | |
We record stock compensation expense over an award’s vesting period based on the award’s fair value at the date of grant. We recorded compensation expense for stock based awards of $0.5 million for the first quarter of 2015 and $0.2 million for the first quarter of 2014. As of April 4, 2015, and March 29, 2014, there was $2.7 million and $2.0 million, respectively, of total unrecognized compensation cost related to non-vested stock option agreements and restricted share awards. These costs are expected to be recognized in earnings on a straight-line basis over the weighted average remaining vesting period of 2.0 years at April 4, 2015, and 2.1 years at March 29, 2014. |
Net_Income_Per_Common_Share
Net Income Per Common Share | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Net Income Per Common Share | NOTE 5. NET INCOME PER COMMON SHARE | ||||||||
Basic EPS is computed by dividing net income available to common shareholders, by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the dilutive effect of potential common shares from securities such as stock options. | |||||||||
Our weighted average shares outstanding for the three months ended April 4, 2015, and March 29, 2014, excludes underlying options and restricted stock awards of 20 thousand and 47 thousand, respectively, because their effects were anti-dilutive. | |||||||||
The table below presents the calculation of EPS and a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS for our Company: | |||||||||
Three Months Ended | |||||||||
April 4, | March 29, | ||||||||
2015 | 2014 | ||||||||
(in thousands, except per | |||||||||
share amounts) | |||||||||
Net income | $ | 6,652 | $ | 3,352 | |||||
Weighted-average common shares - Basic | 47,721 | 47,150 | |||||||
Add: Dilutive effect of stock compensation plans | 2,311 | 2,577 | |||||||
Weighted-average common shares - Diluted | 50,032 | 49,727 | |||||||
Net income per common share: | |||||||||
Basic | $ | 0.14 | $ | 0.07 | |||||
Diluted | $ | 0.13 | $ | 0.07 | |||||
Acquisition
Acquisition | 3 Months Ended | ||||
Apr. 04, 2015 | |||||
Business Combinations [Abstract] | |||||
Acquisition | NOTE 6. ACQUISITION | ||||
On September 22, 2014, we completed the acquisition of CGI which became a wholly-owned subsidiary of PGT, Inc. The purchase price paid in the transaction was $110.4 million, which was preliminarily allocated to the net assets acquired and liabilities assumed as of the acquisition date, in accordance with ASC 805, “Business Combinations”. There have been no adjustments to this preliminary allocation in the three months ended April 4, 2015. For discussion of this acquisition, see Note 4 in the Company’s Annual Report on Form 10-K for the year ended January 3, 2015. | |||||
The following unaudited pro forma financial information assumes the acquisition had occurred at the beginning of the earliest period presented that does not include CGI’s actual results for the entire period. Pro forma results have been prepared by adjusting our historical results to include the results of CGI adjusted for the following: amortization expense related to the intangible assets arising from the acquisition and interest expense to reflect the 2014 Credit Agreement entered into in connection with the acquisition. | |||||
The unaudited pro forma results below do not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of the earliest periods presented, nor does it indicate the results of operations in future periods. The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. | |||||
Quarter Ended | |||||
Pro Forma Results (unaudited) | March 29, | ||||
2014 | |||||
(in thousands, except per share amounts) | |||||
Net sales | $ | 71,157 | |||
Net income | $ | 3,502 | |||
Net income per common share: | |||||
Basic | $ | 0.07 | |||
Diluted | $ | 0.07 | |||
Goodwill_Trade_Names_and_Other
Goodwill, Trade Names, and Other Intangible Assets | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Goodwill, Trade Names, and Other Intangible Assets | NOTE 7. GOODWILL, TRADE NAMES, AND OTHER INTANGIBLE ASSETS | ||||||||||||
Goodwill, trade names, and other intangible assets, net, are as follows: | |||||||||||||
April 4, | January 3, | Initial | |||||||||||
2015 | 2015 | Useful Life | |||||||||||
(in years) | |||||||||||||
(in thousands) | |||||||||||||
Goodwill | $ | 66,580 | $ | 66,580 | indefinite | ||||||||
Other intangible assets: | |||||||||||||
Trade names | $ | 57,441 | $ | 57,441 | indefinite | ||||||||
Customer relationships | 79,700 | 79,700 | 10-Aug | ||||||||||
Developed technology | 1,700 | 1,700 | 10 | ||||||||||
Non-compete agreement | 600 | 600 | 2 | ||||||||||
Less: Accumulated amortization | (57,535 | ) | (56,717 | ) | |||||||||
Subtotal | 24,465 | 25,283 | |||||||||||
Other intangible assets, net | $ | 81,906 | $ | 82,724 | |||||||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||
Apr. 04, 2015 | |||||
Debt Disclosure [Abstract] | |||||
Long-Term Debt | NOTE 8. LONG-TERM DEBT | ||||
On September 22, 2014, we entered into a Credit Agreement (the “2014 Credit Agreement”), among us, the lending institutions identified in the 2014 Credit Agreement, and Deutsche Bank AG New York Branch, as Administrative Agent and Collateral Agent. For further discussion of the significant terms of the 2014 Credit Agreement, see Note 8 in the Company’s Annual Report on Form 10-K for the year ended January 3, 2015. As of April 4, 2015, there were $0.5 million of letters of credit outstanding and $34.5 million available under the revolving credit portion of the 2014 Credit Agreement. | |||||
The 2014 Credit Agreement contains a springing financial covenant, if we draw in excess of twenty percent (20%) of the revolving facility, which requires us to maintain a maximum total net leverage ratio (based on the ratio of total debt for borrowed money to trailing EBITDA, each as defined in the 2014 Credit Agreement), and is tested quarterly based on the last four fiscal quarters and is set at levels as described in the 2014 Credit Agreement. As of April 4, 2015, no such test is required as we have not exceeded 20% of our revolving capacity. | |||||
The 2014 Credit Agreement also contains a number of affirmative and restrictive covenants, including limitations on the incurrence of additional debt, liens on property, acquisitions and investments, loans and guarantees, mergers, consolidations, liquidations and dissolutions, asset sales, dividends and other payments in respect of our capital stock, prepayments of certain debt and transactions with affiliates. The 2014 Credit Agreement also contains customary events of default. As of April 4, 2015, we were in compliance with all affirmative and restrictive covenants. | |||||
The face value of the debt as of April 4, 2015, was $199.0 million. Related debt issuance costs and the debt discount are being amortized to interest expense, net on the Condensed Consolidated Statements of Comprehensive Income over the term of the debt. | |||||
The contractual future maturities of long-term debt outstanding as of April 4, 2015, are as follows (excluding unamortized debt discount and issuance costs): | |||||
(in thousands) | |||||
2015 | $ | 1,500 | |||
2016 | 2,000 | ||||
2017 | 2,000 | ||||
2018 | 2,000 | ||||
2019 | 2,000 | ||||
Thereafter | 189,500 | ||||
Total | $ | 199,000 | |||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Accumulated Other Comprehensive Loss | NOTE 9. ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||
The following table shows the components of accumulated other comprehensive loss for the three months ended April 4, 2015, and March 29, 2014: | |||||||||||||
(in thousands) | Aluminum | ||||||||||||
Forward | |||||||||||||
Contracts | |||||||||||||
Balance at January 3, 2015 | $ | (1,671 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 55 | ||||||||||||
Tax effect | (22 | ) | |||||||||||
Net current-period other comprehensive income | 33 | ||||||||||||
Balance at April 4, 2015 | $ | (1,638 | ) | ||||||||||
(in thousands) | Aluminum | Interest | Total | ||||||||||
Forward | Swap | ||||||||||||
Contracts | |||||||||||||
Balance at December 28, 2013 | $ | (1,837 | ) | $ | (386 | ) | $ | (2,223 | ) | ||||
Other comprehensive loss before reclassification | (97 | ) | (154 | ) | (251 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 256 | — | 256 | ||||||||||
Tax effect | (95 | ) | — | (95 | ) | ||||||||
Net current-period other comprehensive income (loss) | 64 | (154 | ) | (90 | ) | ||||||||
Balance at March 29, 2014 | $ | (1,773 | ) | $ | (540 | ) | $ | (2,313 | ) | ||||
The following table shows the reclassification out of accumulated other comprehensive loss for the three months ended April 4, 2015, and March 29, 2014: | |||||||||||||
Amounts Reclassified From | |||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||
Affected Line Item | |||||||||||||
in Statement | |||||||||||||
Where Net Income | |||||||||||||
is Presented | |||||||||||||
Three Months Ended | |||||||||||||
April 4, | March 29, | ||||||||||||
2015 | 2014 | ||||||||||||
Debit (Credit) | |||||||||||||
Aluminum forward contracts - effective portion | $ | 55 | $ | 256 | Cost of sales | ||||||||
Tax effect | (22 | ) | (95 | ) | Tax expense |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 04, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10. COMMITMENTS AND CONTINGENCIES |
Litigation | |
Our Company is a party to various legal proceedings in the ordinary course of business. Although the ultimate disposition of those proceedings cannot be predicted with certainty, management believes the outcome of any claim that is pending or threatened, either individually or in the aggregate, will not have a materially adverse effect on our operations, financial position or cash flows. |
Income_Taxes
Income Taxes | 3 Months Ended |
Apr. 04, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11. INCOME TAXES |
Our income tax expense was $3.7 million for the first quarter of 2015, compared with $2.0 million for the first quarter of 2014. Our effective tax rate for the first quarter of 2015 was 35.9%, and was 37.0% for the first quarter of 2014. The effective tax rates in both periods were lower than our combined statutory federal and state tax rate of 38.8% as the result of the impact of the section 199 domestic manufacturing deduction. |
Derivatives
Derivatives | 3 Months Ended | ||||||||||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Derivatives | NOTE 12. DERIVATIVES | ||||||||||||||||||||||||
Derivative Financial Instruments – Aluminum Contracts | |||||||||||||||||||||||||
We enter into aluminum forward contracts to hedge the fluctuations in the purchase price of aluminum extrusion we use in production. Our contracts are designated as cash flow hedges since they are highly effective in offsetting changes in the cash flows attributable to forecasted purchases of aluminum. For further discussion of our derivative financial instruments relating to aluminum contracts, see Note 9 in the Company’s Annual Report on Form 10-K for the year ended January 3, 2015. | |||||||||||||||||||||||||
We maintain a $2.0 million line of credit with our commodities broker to cover the liability position of open contracts for the purchase of aluminum in the event that the price of aluminum falls. Should the price of aluminum fall to a level which causes our liability for open aluminum contracts to exceed $2.0 million, we are required to fund daily margin calls to cover the excess. As of April 4, 2015, no amounts were borrowed under this line of credit. | |||||||||||||||||||||||||
At April 4, 2015, the fair value of our aluminum forward contracts was in a net liability position of $431 thousand. We had 12 outstanding forward contracts for the purchase of 4.4 million pounds of aluminum through December 2015, at an average price of $0.91 per pound, which excludes the Midwest premium, with maturity dates of between 1 months and 8 months. We assessed the risk of non-performance of the Company to these contracts and recorded a de minimis adjustment to fair value as of April 4, 2015. | |||||||||||||||||||||||||
Although it is our intent to have our aluminum hedges qualify as highly effective for reporting purposes, for the three months ended April 4, 2015, all 12 outstanding contracts did not qualify as effective. Effectiveness of aluminum forward contracts is determined by comparing the change in the fair value of the forward contract to the change in the expected cash to be paid for the hedged item. The effective portion of the gain or loss on our aluminum forward contracts is reported as a component of accumulated other comprehensive loss and is reclassified into earnings in the same line item in the income statement as the hedged item in the same period or periods during which the transaction affects earnings. When a cash flow hedge becomes ineffective, and if the forecasted hedged transaction is still probable of occurrence, amounts previously recorded in accumulated other comprehensive loss remain in accumulated other comprehensive loss and are recognized in earnings in the period in which the hedged transaction affects earnings. The change in value of the aluminum forward contracts occurring after ineffectiveness is recognized in other expense, net, on the Condensed Consolidated Statements of Comprehensive Income, and totaled $99 thousand and $162 thousand for the three months ended April 4, 2015, and March 29, 2014, respectively. The amount of losses recognized in the “accumulated other comprehensive loss” line item in the accompanying Condensed Consolidated Balance Sheets (unaudited) as of April 4, 2015, that will be reclassified to earnings within the next three months, will be immaterial. | |||||||||||||||||||||||||
Derivative Financial Instruments – Interest Rate Contract | |||||||||||||||||||||||||
We have an interest rate cap agreement we entered into on September 16, 2013. It is a two-year agreement with a notional amount of $20.0 million; and was initially designated as a cash flow hedge to protect the variable rate debt from an increase in the floating, one-month LIBOR rate of greater than 0.50%. Upon entering into the 2014 Credit Agreement, effective on September 22, 2014 it was de-designated as a cash flow hedge and has since been marked-to-market in other expense, net, on the Condensed Consolidated Statements of Comprehensive Income, and were de minimus for the three months ended April 4, 2015, and March 29, 2014, respectively. | |||||||||||||||||||||||||
The fair value of our derivatives are classified in the accompanying Condensed Consolidated Balance Sheets as follows (in thousands): | |||||||||||||||||||||||||
Derivatives in a net asset (liability) position | Balance Sheet Location | April 4, | January 3, | ||||||||||||||||||||||
2015 | 2015 | ||||||||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||||
Aluminum forward contracts | Accrued liabilities | $ | (431 | ) | $ | (491 | ) | ||||||||||||||||||
Interest rate cap | Other current assets | 2 | 2 | ||||||||||||||||||||||
Total hedging instruments | $ | (429 | ) | $ | (489 | ) | |||||||||||||||||||
The impact of the offsetting derivative instruments are depicted below (in thousands): | |||||||||||||||||||||||||
As of April 4, 2015 | |||||||||||||||||||||||||
Gross Amounts not Offset | |||||||||||||||||||||||||
Gross | Gross | Net | Financial | Cash | Net | ||||||||||||||||||||
Amounts of | Amounts | Amounts of | Instruments | Collateral | Amount | ||||||||||||||||||||
Recognized | Offset | Recognized | Received | ||||||||||||||||||||||
Assets | Assets | ||||||||||||||||||||||||
Interest rate cap | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||||
Gross Amounts not Offset | |||||||||||||||||||||||||
Gross | Gross | Net | Financial | Cash | Net | ||||||||||||||||||||
Amounts of | Amounts | Amounts of | Instruments | Collateral | Amount | ||||||||||||||||||||
Recognized | Offset | Recognized | Pledged | ||||||||||||||||||||||
(Liabilities) | (Liabilities) | ||||||||||||||||||||||||
Aluminum forward contracts | $ | (431 | ) | $ | — | $ | (431 | ) | $ | — | $ | — | $ | (431 | ) | ||||||||||
As of January 3, 2015 | |||||||||||||||||||||||||
Gross Amounts not Offset | |||||||||||||||||||||||||
Gross | Gross | Net | Financial | Cash | Net | ||||||||||||||||||||
Amounts of | Amounts | Amounts of | Instruments | Collateral | Amount | ||||||||||||||||||||
Recognized | Offset | Recognized | Received | ||||||||||||||||||||||
Assets | Assets | ||||||||||||||||||||||||
Interest rate cap | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||||
Gross Amounts not Offset | |||||||||||||||||||||||||
Gross | Gross | Net | Financial | Cash | Net | ||||||||||||||||||||
Amounts of | Amounts | Amounts of | Instruments | Collateral | Amount | ||||||||||||||||||||
Recognized | Offset | Recognized | Pledged | ||||||||||||||||||||||
(Liabilities) | (Liabilities) | ||||||||||||||||||||||||
Aluminum forward contracts | $ | (491 | ) | $ | — | $ | (491 | ) | $ | — | $ | — | $ | (491 | ) | ||||||||||
The following represents the gains (losses) on derivative financial instruments for the three months ended April 4, 2015 and March 29, 2014, and their classifications within the accompanying condensed consolidated statements of comprehensive income (in thousands): | |||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | |||||||||||||||||||||||||
Amount of Gain or | Location of Gain | Amount of Gain or | |||||||||||||||||||||||
(Loss) Recognized in | or (Loss) | (Loss) Reclassified | |||||||||||||||||||||||
OCI on Derivatives | Reclassified from | from Accumulated | |||||||||||||||||||||||
(Effective Portion) | Accumulated OCI | OCI into Income | |||||||||||||||||||||||
into Income | (Effective Portion) | ||||||||||||||||||||||||
(Effective Portion) | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
April 4, | March 29, | April 4, | March 29, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Aluminum contracts | $ | — | $ | (97 | ) | Cost of sales | $ | (55 | ) | $ | (256 | ) | |||||||||||||
Interest rate swap | — | (154 | ) | — | — | ||||||||||||||||||||
$ | — | $ | (251 | ) | $ | (55 | ) | $ | (256 | ) | |||||||||||||||
Location of Gain | Amount of Gain or | ||||||||||||||||||||||||
or (Loss) | (Loss) Recognized | ||||||||||||||||||||||||
Recognized in | in Income on | ||||||||||||||||||||||||
Income on | Derivatives | ||||||||||||||||||||||||
Derivatives | (Ineffective | ||||||||||||||||||||||||
(Ineffective Portion) | Portion) | ||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
April 4, | March 29, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Aluminum contracts | Other expense, net | $ | (99 | ) | $ | (162 | ) | ||||||||||||||||||
$ | (99 | ) | $ | (162 | ) | ||||||||||||||||||||
Fair_Value
Fair Value | 3 Months Ended | ||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value | NOTE 13. FAIR VALUE | ||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A three-tier fair value hierarchy is used to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: | |||||||||||||||||
Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||||||||||
Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. | |||||||||||||||||
Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. | |||||||||||||||||
The accounting guidance concerning fair value allows us to elect to measure financial instruments at fair value and report the changes in fair value through the Condensed Consolidated Statements of Comprehensive Income. This election can only be made at certain specified dates and is irrevocable once made. We do not have a policy regarding specific assets or liabilities to elect to measure at fair value, but rather make the election on an instrument-by-instrument basis as they are acquired or incurred. | |||||||||||||||||
Items Measured at Fair Value on a Recurring Basis | |||||||||||||||||
The following assets and liabilities are measured in the Condensed Consolidated Balance Sheets at fair value on a recurring basis and are categorized in the table below based upon the lowest level of significant input to the valuation: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Assets (Liabilities) | |||||||||||||||||
Description | April 4, | Quoted | Significant | Significant | |||||||||||||
2015 | Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Aluminum forward contracts | $ | (431 | ) | $ | — | $ | (431 | ) | $ | — | |||||||
Interest rate cap | 2 | — | 2 | — | |||||||||||||
$ | (429 | ) | $ | — | $ | (429 | ) | $ | — | ||||||||
Description | January 3, | Quoted | Significant | Significant | |||||||||||||
2015 | Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Aluminum forward contracts | $ | (491 | ) | $ | — | $ | (491 | ) | $ | — | |||||||
Interest rate cap | 2 | — | 2 | — | |||||||||||||
$ | (489 | ) | $ | — | $ | (489 | ) | $ | — | ||||||||
The following is a description of the methods and assumptions used to estimate the fair values of our assets and liabilities measured at fair value on a recurring basis, as well as the basis for classifying these assets and liabilities as Level 2. | |||||||||||||||||
Aluminum forward contracts identical to those held by us trade on the London Metal Exchange (“LME”). The LME provides a transparent forum and is the world’s largest center for the trading of futures contracts for non-ferrous metals. The prices are used by the metals industry worldwide as the basis for contracts for the movement of physical material throughout the production cycle. Based on this high degree of volume and liquidity in the LME, we believe the valuation price at any measurement date for contracts with identical terms as to prompt date, trade date and trade price as those we hold at any time represents a contract’s exit price to be used for purposes of determining fair value. | |||||||||||||||||
Interest rate cap and swap contracts identical to that held by us are sold by financial institutions. The valuation price at any measurement date for a contract with identical terms, exercise price, expiration date, settlement date, and notional quantities, as the one we hold, is used for determining the fair value. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The following table presents the carrying values and estimated fair values of financial assets and liabilities that are required to be recorded or disclosed at fair value at April 4, 2015, and January 3, 2015, respectively: | |||||||||||||||||
April 4, 2015 | January 3, 2015 | ||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||
Amount | Fair | Amount | Fair | ||||||||||||||
Value | Value | ||||||||||||||||
Financial assets (liabilities) | |||||||||||||||||
Cash and cash equivalents | $ | 48,742 | $ | 48,742 | $ | 42,469 | $ | 42,469 | |||||||||
Accounts receivable, net | $ | 33,009 | $ | 33,009 | $ | 25,374 | $ | 25,374 | |||||||||
Accounts payable and accrued liabilities | $ | (25,123 | ) | $ | (25,123 | ) | $ | (17,328 | ) | $ | (17,328 | ) | |||||
Long-term debt (including current portion) | $ | (193,403 | ) | $ | (193,403 | ) | $ | (193,754 | ) | $ | (193,754 | ) | |||||
The following provides a description of the methods and significant assumptions used in estimating the fair value of our financial instruments that are not measured at fair value on a recurring basis. | |||||||||||||||||
Cash and cash equivalents — The estimated fair value of these financial instruments approximates their carrying amounts due to their highly liquid or short-term nature. | |||||||||||||||||
Accounts receivable, net — The estimated fair value of these financial instruments approximates their carrying amounts due to their short-term nature. | |||||||||||||||||
Accounts payable and accrued liabilities — The estimated fair value of these financial instruments approximate their carrying amounts due to their short-term nature. | |||||||||||||||||
Debt — The estimated fair value of this debt is based on Level 2 inputs of debt with similar terms and characteristics. |
Warranty_Tables
Warranty (Tables) | 3 Months Ended | ||||||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||
Information Regarding Warranty Accrual | The following provides information with respect to our warranty accrual: | ||||||||||||||||||||
Accrued Warranty | Beginning | Charged | Adjustments | Settlements | End of | ||||||||||||||||
of Period | to Expense | Period | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Quarter ended April 4, 2015 | $ | 3,302 | $ | 1,908 | $ | 189 | $ | (1,791 | ) | $ | 3,608 | ||||||||||
Quarter ended March 29, 2014 | $ | 2,666 | $ | 1,098 | $ | 90 | $ | (1,198 | ) | $ | 2,656 |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories consisted of the following: | ||||||||
April 4, | January 3, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Raw materials | $ | 17,768 | $ | 16,674 | |||||
Work in progress | 824 | 791 | |||||||
Finished goods | 2,679 | 2,505 | |||||||
$ | 21,271 | $ | 19,970 | ||||||
Net_Income_Per_Common_Share_Ta
Net Income Per Common Share (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS | The table below presents the calculation of EPS and a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS for our Company: | ||||||||
Three Months Ended | |||||||||
April 4, | March 29, | ||||||||
2015 | 2014 | ||||||||
(in thousands, except per | |||||||||
share amounts) | |||||||||
Net income | $ | 6,652 | $ | 3,352 | |||||
Weighted-average common shares - Basic | 47,721 | 47,150 | |||||||
Add: Dilutive effect of stock compensation plans | 2,311 | 2,577 | |||||||
Weighted-average common shares - Diluted | 50,032 | 49,727 | |||||||
Net income per common share: | |||||||||
Basic | $ | 0.14 | $ | 0.07 | |||||
Diluted | $ | 0.13 | $ | 0.07 | |||||
Acquisition_Tables
Acquisition (Tables) | 3 Months Ended | ||||
Apr. 04, 2015 | |||||
Business Combinations [Abstract] | |||||
Summary of Unaudited Proforma Results | The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. | ||||
Quarter Ended | |||||
Pro Forma Results (unaudited) | March 29, | ||||
2014 | |||||
(in thousands, except per share amounts) | |||||
Net sales | $ | 71,157 | |||
Net income | $ | 3,502 | |||
Net income per common share: | |||||
Basic | $ | 0.07 | |||
Diluted | $ | 0.07 | |||
Goodwill_Trade_Names_and_Other1
Goodwill, Trade Names, and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Schedule of Goodwill, Trade Names and Other Intangible Assets Net | Goodwill, trade names, and other intangible assets, net, are as follows: | ||||||||||||
April 4, | January 3, | Initial | |||||||||||
2015 | 2015 | Useful Life | |||||||||||
(in years) | |||||||||||||
(in thousands) | |||||||||||||
Goodwill | $ | 66,580 | $ | 66,580 | indefinite | ||||||||
Other intangible assets: | |||||||||||||
Trade names | $ | 57,441 | $ | 57,441 | indefinite | ||||||||
Customer relationships | 79,700 | 79,700 | 10-Aug | ||||||||||
Developed technology | 1,700 | 1,700 | 10 | ||||||||||
Non-compete agreement | 600 | 600 | 2 | ||||||||||
Less: Accumulated amortization | (57,535 | ) | (56,717 | ) | |||||||||
Subtotal | 24,465 | 25,283 | |||||||||||
Other intangible assets, net | $ | 81,906 | $ | 82,724 |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||
Apr. 04, 2015 | |||||
Debt Disclosure [Abstract] | |||||
Contractual Future Maturities of Long-term Debt | The contractual future maturities of long-term debt outstanding as of April 4, 2015, are as follows (excluding unamortized debt discount and issuance costs): | ||||
(in thousands) | |||||
2015 | $ | 1,500 | |||
2016 | 2,000 | ||||
2017 | 2,000 | ||||
2018 | 2,000 | ||||
2019 | 2,000 | ||||
Thereafter | 189,500 | ||||
Total | $ | 199,000 | |||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Components of Accumulated Other Comprehensive Loss | The following table shows the components of accumulated other comprehensive loss for the three months ended April 4, 2015, and March 29, 2014: | ||||||||||||
(in thousands) | Aluminum | ||||||||||||
Forward | |||||||||||||
Contracts | |||||||||||||
Balance at January 3, 2015 | $ | (1,671 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 55 | ||||||||||||
Tax effect | (22 | ) | |||||||||||
Net current-period other comprehensive income | 33 | ||||||||||||
Balance at April 4, 2015 | $ | (1,638 | ) | ||||||||||
(in thousands) | Aluminum | Interest | Total | ||||||||||
Forward | Swap | ||||||||||||
Contracts | |||||||||||||
Balance at December 28, 2013 | $ | (1,837 | ) | $ | (386 | ) | $ | (2,223 | ) | ||||
Other comprehensive loss before reclassification | (97 | ) | (154 | ) | (251 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 256 | — | 256 | ||||||||||
Tax effect | (95 | ) | — | (95 | ) | ||||||||
Net current-period other comprehensive income (loss) | 64 | (154 | ) | (90 | ) | ||||||||
Balance at March 29, 2014 | $ | (1,773 | ) | $ | (540 | ) | $ | (2,313 | ) | ||||
Reclassification Out of Accumulated Other Comprehensive Loss | The following table shows the reclassification out of accumulated other comprehensive loss for the three months ended April 4, 2015, and March 29, 2014: | ||||||||||||
Amounts Reclassified From | |||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||
Affected Line Item | |||||||||||||
in Statement | |||||||||||||
Where Net Income | |||||||||||||
is Presented | |||||||||||||
Three Months Ended | |||||||||||||
April 4, | March 29, | ||||||||||||
2015 | 2014 | ||||||||||||
Debit (Credit) | |||||||||||||
Aluminum forward contracts - effective portion | $ | 55 | $ | 256 | Cost of sales | ||||||||
Tax effect | (22 | ) | (95 | ) | Tax expense |
Derivatives_Tables
Derivatives (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Fair Value of Hedges and Interest Rate Cap | The fair value of our derivatives are classified in the accompanying Condensed Consolidated Balance Sheets as follows (in thousands): | ||||||||||||||||||||||||
April 4, | January 3, | ||||||||||||||||||||||||
2015 | 2015 | ||||||||||||||||||||||||
Derivatives in a net asset (liability) position | Balance Sheet Location | ||||||||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||||
Aluminum forward contracts | Accrued liabilities | $ | (431 | ) | $ | (491 | ) | ||||||||||||||||||
Interest rate cap | Other current assets | 2 | 2 | ||||||||||||||||||||||
Total hedging instruments | $ | (429 | ) | $ | (489 | ) | |||||||||||||||||||
Schedule of Offsetting Derivative Instrument | The impact of the offsetting derivative instruments are depicted below (in thousands): | ||||||||||||||||||||||||
As of April 4, 2015 | |||||||||||||||||||||||||
Gross Amounts not Offset | |||||||||||||||||||||||||
Gross | Gross | Net | Financial | Cash | Net | ||||||||||||||||||||
Amounts of | Amounts | Amounts of | Instruments | Collateral | Amount | ||||||||||||||||||||
Recognized | Offset | Recognized | Received | ||||||||||||||||||||||
Assets | Assets | ||||||||||||||||||||||||
Interest rate cap | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||||
Gross Amounts not Offset | |||||||||||||||||||||||||
Gross | Gross | Net | Financial | Cash | Net | ||||||||||||||||||||
Amounts of | Amounts | Amounts of | Instruments | Collateral | Amount | ||||||||||||||||||||
Recognized | Offset | Recognized | Pledged | ||||||||||||||||||||||
(Liabilities) | (Liabilities) | ||||||||||||||||||||||||
Aluminum forward contracts | $ | (431 | ) | $ | — | $ | (431 | ) | $ | — | $ | — | $ | (431 | ) | ||||||||||
As of January 3, 2015 | |||||||||||||||||||||||||
Gross Amounts not Offset | |||||||||||||||||||||||||
Gross | Gross | Net | Financial | Cash | Net | ||||||||||||||||||||
Amounts of | Amounts | Amounts of | Instruments | Collateral | Amount | ||||||||||||||||||||
Recognized | Offset | Recognized | Received | ||||||||||||||||||||||
Assets | Assets | ||||||||||||||||||||||||
Interest rate cap | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||||
Gross Amounts not Offset | |||||||||||||||||||||||||
Gross | Gross | Net | Financial | Cash | Net | ||||||||||||||||||||
Amounts of | Amounts | Amounts of | Instruments | Collateral | Amount | ||||||||||||||||||||
Recognized | Offset | Recognized | Pledged | ||||||||||||||||||||||
(Liabilities) | (Liabilities) | ||||||||||||||||||||||||
Aluminum forward contracts | $ | (491 | ) | $ | — | $ | (491 | ) | $ | — | $ | — | $ | (491 | ) | ||||||||||
Gains (Losses) on Derivative Financial Instruments | The following represents the gains (losses) on derivative financial instruments for the three months ended April 4, 2015 and March 29, 2014, and their classifications within the accompanying condensed consolidated statements of comprehensive income (in thousands): | ||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | |||||||||||||||||||||||||
Amount of Gain or | Location of Gain | Amount of Gain or | |||||||||||||||||||||||
(Loss) Recognized in | or (Loss) | (Loss) Reclassified | |||||||||||||||||||||||
OCI on Derivatives | Reclassified from | from Accumulated | |||||||||||||||||||||||
(Effective Portion) | Accumulated OCI | OCI into Income | |||||||||||||||||||||||
into Income | (Effective Portion) | ||||||||||||||||||||||||
(Effective Portion) | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
April 4, | March 29, | April 4, | March 29, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Aluminum contracts | $ | — | $ | (97 | ) | Cost of sales | $ | (55 | ) | $ | (256 | ) | |||||||||||||
Interest rate swap | — | (154 | ) | — | — | ||||||||||||||||||||
$ | — | $ | (251 | ) | $ | (55 | ) | $ | (256 | ) | |||||||||||||||
Location of Gain | Amount of Gain or | ||||||||||||||||||||||||
or (Loss) | (Loss) Recognized | ||||||||||||||||||||||||
Recognized in | in Income on | ||||||||||||||||||||||||
Income on | Derivatives | ||||||||||||||||||||||||
Derivatives | (Ineffective | ||||||||||||||||||||||||
(Ineffective Portion) | Portion) | ||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
April 4, | March 29, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Aluminum contracts | Other expense, net | $ | (99 | ) | $ | (162 | ) | ||||||||||||||||||
$ | (99 | ) | $ | (162 | ) | ||||||||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | ||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Items Measured at Fair Value on a Recurring Basis | The following assets and liabilities are measured in the Condensed Consolidated Balance Sheets at fair value on a recurring basis and are categorized in the table below based upon the lowest level of significant input to the valuation: | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Assets (Liabilities) | |||||||||||||||||
Description | April 4, | Quoted | Significant | Significant | |||||||||||||
2015 | Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Aluminum forward contracts | $ | (431 | ) | $ | — | $ | (431 | ) | $ | — | |||||||
Interest rate cap | 2 | — | 2 | — | |||||||||||||
$ | (429 | ) | $ | — | $ | (429 | ) | $ | — | ||||||||
Description | January 3, | Quoted | Significant | Significant | |||||||||||||
2015 | Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Aluminum forward contracts | $ | (491 | ) | $ | — | $ | (491 | ) | $ | — | |||||||
Interest rate cap | 2 | — | 2 | — | |||||||||||||
$ | (489 | ) | $ | — | $ | (489 | ) | $ | — | ||||||||
Fair Value of Financial Instruments | The following table presents the carrying values and estimated fair values of financial assets and liabilities that are required to be recorded or disclosed at fair value at April 4, 2015, and January 3, 2015, respectively: | ||||||||||||||||
4-Apr-15 | 3-Jan-15 | ||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||
Amount | Fair | Amount | Fair | ||||||||||||||
Value | Value | ||||||||||||||||
Financial assets (liabilities) | |||||||||||||||||
Cash and cash equivalents | $ | 48,742 | $ | 48,742 | $ | 42,469 | $ | 42,469 | |||||||||
Accounts receivable, net | $ | 33,009 | $ | 33,009 | $ | 25,374 | $ | 25,374 | |||||||||
Accounts payable and accrued liabilities | $ | (25,123 | ) | $ | (25,123 | ) | $ | (17,328 | ) | $ | (17,328 | ) | |||||
Long-term debt (including current portion) | $ | (193,403 | ) | $ | (193,403 | ) | $ | (193,754 | ) | $ | (193,754 | ) | |||||
Warranty_Additional_Informatio
Warranty - Additional Information (Detail) | 3 Months Ended | |
Apr. 04, 2015 | Mar. 29, 2014 | |
Standard Product Warranty [Line Items] | ||
Warranty expense rates | 2.00% | 1.75% |
Minimum [Member] | ||
Standard Product Warranty [Line Items] | ||
Warranty periods | 1 year | |
Warranty period of the majority of products sold | 1 year | |
Maximum [Member] | ||
Standard Product Warranty [Line Items] | ||
Warranty periods | 10 years | |
Warranty period of the majority of products sold | 3 years |
Warranty_Information_Regarding
Warranty - Information Regarding Warranty Accrual (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Guarantees [Abstract] | ||
Accrued Warranty, Beginning of Period | $3,302 | $2,666 |
Accrued Warranty, Charged to Expense | 1,908 | 1,098 |
Accrued Warranty, Adjustments | 189 | 90 |
Accrued Warranty, Settlements | -1,791 | -1,198 |
Accrued Warranty, End of Period | $3,608 | $2,656 |
Inventories_Inventories_Detail
Inventories - Inventories (Detail) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $17,768 | $16,674 |
Work in progress | 824 | 791 |
Finished goods | 2,679 | 2,505 |
Total inventory | $21,271 | $19,970 |
Stock_BasedCompensation_Additi
Stock Based-Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |
Apr. 04, 2015 | Mar. 29, 2014 | Mar. 04, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options exercised | 17,700 | ||
Weighted average exercise price of options exercised | $2 | ||
Compensation expense for stock based awards | $474,000 | $245,000 | |
Total unrecognized compensation cost related to non-vested stock option and restricted stock awards | $2,700,000 | $2,000,000 | |
Weighted average remaining vesting period | 2 years | 2 years 1 month 6 days | |
Restricted Stock Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance criteria defined in share awards | The performance percentages, ranging from less than 80% to greater than 120%, provide for the awarding of shares ranging from no shares to 150% of the original amount of shares. | ||
Restricted Stock Award [Member] | Executives And Non-executive Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards | 178,256 | ||
Fair value of common stock | $10.95 | ||
Fixed Criteria [Member] | Executives And Non-executive Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards | 89,128 | ||
Options vesting period | 3 years | ||
Company Performance Criteria [Member] | Executives And Non-executive Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards | 89,128 | ||
Options vesting period | 2 years |
Net_Income_Per_Common_Share_Ad
Net Income Per Common Share - Additional Information (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Earnings Per Share [Abstract] | ||
Anti-dilutive options excluded from weighted average shares outstanding | 20 | 47 |
Net_Income_Per_Common_Share_Ca
Net Income Per Common Share - Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Earnings Per Share [Abstract] | ||
Net income | $6,652 | $3,352 |
Weighted-average common shares - Basic | 47,721 | 47,150 |
Add: Dilutive effect of stock compensation plans | 2,311 | 2,577 |
Weighted-average common shares - Diluted | 50,032 | 49,727 |
Net income per common share: | ||
Basic | $0.14 | $0.07 |
Diluted | $0.13 | $0.07 |
Acquisition_Additional_Informa
Acquisition - Additional Information (Detail) (CGI [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Sep. 22, 2014 |
CGI [Member] | |
Business Acquisition [Line Items] | |
Acquisition of CGI, transaction value | $110.40 |
Acquisition_Summary_of_Unaudit
Acquisition - Summary of Unaudited Proforma Results (Detail) (CGI [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 |
CGI [Member] | |
Business Acquisition [Line Items] | |
Net sales | $71,157 |
Net income | $3,502 |
Net income per common share: | |
Basic | $0.07 |
Diluted | $0.07 |
Goodwill_Trade_Names_and_Other2
Goodwill, Trade Names, and Other Intangible Assets - Schedule of Goodwill, Trade Names and Other Intangible Assets Net (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Jan. 03, 2015 |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $66,580 | $66,580 |
Less: Accumulated amortization | -57,535 | -56,717 |
Subtotal | 24,465 | 25,283 |
Other intangible assets, net | 81,906 | 82,724 |
Customer Relationships [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | 79,700 | 79,700 |
Customer Relationships [Member] | Minimum [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Initial Useful Life (in years) | 8 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Initial Useful Life (in years) | 10 years | |
Developed Technology [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | 1,700 | 1,700 |
Initial Useful Life (in years) | 10 years | |
Noncompete Agreements [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | 600 | 600 |
Initial Useful Life (in years) | 2 years | |
Trade Names [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trade names | $57,441 | $57,441 |
Long_Term_Debt_Additional_Info
Long Term Debt - Additional Information (Detail) (USD $) | Apr. 04, 2015 |
Line of Credit Facility [Line Items] | |
Letters of credit outstanding | $500,000 |
Revolving Credit Facility Percentage Margin Over Base Rate | 20.00% |
Face value of debt | 199,000,000 |
Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Credit available on revolver | $34,500,000 |
Long_Term_Debt_Contractual_Fut
Long Term Debt - Contractual Future Maturities of Long-Term Debt (Detail) (USD $) | Apr. 04, 2015 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2015 | $1,500 |
2016 | 2,000 |
2017 | 2,000 |
2018 | 2,000 |
2019 | 2,000 |
Thereafter | 189,500 |
Total | $199,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Apr. 04, 2015 | Jan. 03, 2015 |
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | ($2,223) | ($1,671) | |
Other comprehensive loss before reclassification | -251 | ||
Amounts reclassified from accumulated other comprehensive loss | 256 | ||
Tax effect | -95 | ||
Net current-period other comprehensive income (loss) | -90 | ||
Ending Balance | -2,313 | -1,638 | -1,671 |
Aluminum Forward Contracts [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | -1,837 | -1,671 | |
Other comprehensive loss before reclassification | -97 | ||
Amounts reclassified from accumulated other comprehensive loss | 256 | 55 | |
Tax effect | -95 | -22 | |
Net current-period other comprehensive income (loss) | 64 | 33 | |
Ending Balance | -1,773 | -1,638 | |
Interest Rate Swap [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | -386 | ||
Other comprehensive loss before reclassification | -154 | ||
Net current-period other comprehensive income (loss) | -154 | ||
Ending Balance | ($540) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss - Reclassification Out of Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | $64,254 | $42,953 |
Tax expense | 3,719 | 1,967 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax expense | -22 | -95 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Aluminum Forward Contracts [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | $55 | $256 |
Income_Taxes_Additional_inform
Income Taxes - Additional information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $3,719 | $1,967 |
Effective tax rates | 35.90% | 37.00% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 38.80% | 38.80% |
Derivatives_Additional_Informa
Derivatives - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||
Apr. 04, 2015 | Mar. 29, 2014 | Sep. 16, 2013 | Jan. 03, 2015 | |
Other Expense, net [Member] | ||||
Derivative [Line Items] | ||||
Other expense, net | $99,000 | $162,000 | ||
Aluminum Contracts [Member] | Other Expense, net [Member] | ||||
Derivative [Line Items] | ||||
Other expense, net | 99,000 | 162,000 | ||
Interest Rate Caps [Member] | ||||
Derivative [Line Items] | ||||
Term of interest rate cap agreement | 2 years | |||
Derivative instrument LIBOR rate exemption, interest rate cap agreement | 0.50% | |||
Notional amount of interest rate swap agreement | 20,000,000 | |||
Aluminum Forward Contracts [Member] | ||||
Derivative [Line Items] | ||||
Line of credit to cover the liability position of open contracts | 2,000,000 | |||
Price of aluminum, maximum exposure | 2,000,000 | |||
Amounts borrowed under line of credit | 0 | |||
Derivative financial instruments, fair value of net liability | $431,000 | $491,000 | ||
Number of outstanding forward contracts, liability | 12 | |||
Purchase of aluminum commodity contracts | 4,400,000 | |||
Aluminum commodity contracts, average price per pound | 0.91 | |||
Aluminum commodity contracts, lower maturity date | 1 month | |||
Aluminum commodity contracts, upper maturity date | 8 months |
Derivatives_Fair_Value_of_Hedg
Derivatives - Fair Value of Hedges and Interest Rate Cap (Detail) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Total hedging instruments | ($429) | ($489) |
Aluminum Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives in a net liability position | -431 | -491 |
Aluminum Forward Contracts [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives in a net liability position | -431 | -491 |
Interest Rate Caps [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives in a net asset position | $2 | $2 |
Derivatives_Schedule_of_Offset
Derivatives - Schedule of Offsetting Derivative Instrument (Detail) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Financial Instruments - Assets | $429 | $489 |
Interest Rate Caps [Member] | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 2 | 2 |
Gross Amounts offset in Balance Sheet - Assets | 0 | 0 |
Net amounts of Assets Presented in Balance Sheet | 2 | 2 |
Financial Instruments - Assets | 0 | 0 |
Cash Collateral Received - Assets | 0 | 0 |
Net Amount | 2 | 2 |
Aluminum Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Liabilities | -431 | -491 |
Gross Amounts offset in Balance Sheet - Liabilities | 0 | 0 |
Net amounts of Liabilities Presented in Balance Sheet | -431 | -491 |
Financial Instruments - Liabilities | 0 | 0 |
Cash Collateral Pledged - Liabilities | 0 | 0 |
Net Amount | ($431) | ($491) |
Derivatives_Gains_Losses_on_De
Derivatives - Gains (Losses) on Derivative Financial Instruments (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Loss) Recognized in OCI on Derivatives (Effective Portion) | ($251) | |
Other Expense, net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -55 | -256 |
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | -99 | -162 |
Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -55 | -256 |
Aluminum Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Loss) Recognized in OCI on Derivatives (Effective Portion) | -97 | |
Aluminum Contracts [Member] | Other Expense, net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | -99 | -162 |
Interest Rate Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Loss) Recognized in OCI on Derivatives (Effective Portion) | ($154) |
Fair_Value_Items_Measured_at_F
Fair Value - Items Measured at Fair Value on Recurring Basis (Detail) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, net liability and assets | ($429) | ($489) |
Aluminum Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, net liability and assets | -431 | -491 |
Interest Rate Caps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, net liability and assets | 2 | 2 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, net liability and assets | -429 | -489 |
Significant Other Observable Inputs (Level 2) [Member] | Aluminum Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, net liability and assets | -431 | -491 |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Caps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, net liability and assets | $2 | $2 |
Fair_Value_Fair_Value_of_Finan
Fair Value - Fair Value of Financial Instruments (Detail) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $48,742 | $42,469 | $30,777 | $30,204 |
Accounts receivable, net | 33,009 | 25,374 | ||
Accounts payable and accrued liabilities | -25,123 | -17,328 | ||
Estimated Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 48,742 | 42,469 | ||
Accounts receivable, net | 33,009 | 25,374 | ||
Accounts payable and accrued liabilities | -25,123 | -17,328 | ||
Long-term debt (including current portion) | -193,403 | -193,754 | ||
Carrying Amount [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 48,742 | 42,469 | ||
Accounts receivable, net | 33,009 | 25,374 | ||
Accounts payable and accrued liabilities | -25,123 | -17,328 | ||
Long-term debt (including current portion) | ($193,403) | ($193,754) |