Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 03, 2015 | Nov. 04, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 3, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PGTI | |
Entity Registrant Name | PGT, Inc. | |
Entity Central Index Key | 1,354,327 | |
Current Fiscal Year End Date | --01-02 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 48,653,104 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 100,668 | $ 77,320 | $ 296,802 | $ 221,666 |
Cost of sales | 71,247 | 54,136 | 203,395 | 152,565 |
Gross profit | 29,421 | 23,184 | 93,407 | 69,101 |
Selling, general and administrative expenses | 16,364 | 14,290 | 50,804 | 40,619 |
Income from operations | 13,057 | 8,894 | 42,603 | 28,482 |
Interest expense, net | 2,934 | 1,020 | 8,787 | 2,809 |
Debt extinguishment costs | 2,829 | 2,829 | ||
Other expense, net | 131 | 1,019 | 357 | 918 |
Income before income taxes | 9,992 | 4,026 | 33,459 | 21,926 |
Income tax expense | 3,646 | 1,695 | 13,681 | 8,442 |
Net income | $ 6,346 | $ 2,331 | $ 19,778 | $ 13,484 |
Net income per common share: | ||||
Basic | $ 0.13 | $ 0.05 | $ 0.41 | $ 0.29 |
Diluted | $ 0.13 | $ 0.05 | $ 0.39 | $ 0.27 |
Weighted average shares outstanding: | ||||
Basic | 48,596 | 47,399 | 48,131 | 47,271 |
Diluted | 50,563 | 49,792 | 50,290 | 49,728 |
Comprehensive income | $ 6,346 | $ 3,081 | $ 21,449 | $ 13,992 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 54,792 | $ 42,469 |
Accounts receivable, net | 38,957 | 25,374 |
Inventories | 22,992 | 19,970 |
Prepaid expenses and other current assets | 6,458 | 6,464 |
Deferred income taxes | 5,110 | 5,160 |
Total current assets | 128,309 | 99,437 |
Property, plant and equipment, net | 69,344 | 60,898 |
Trade name and other intangible assets, net | 80,176 | 82,724 |
Goodwill | 66,580 | 66,580 |
Other assets, net | 2,370 | 2,110 |
Total assets | 346,779 | 311,749 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 24,414 | 17,328 |
Current portion of long-term debt | 1,965 | 1,962 |
Total current liabilities | 26,379 | 19,290 |
Long-term debt, less current portion | 190,813 | 191,792 |
Deferred income taxes | 25,956 | 25,956 |
Other liabilities | 960 | 735 |
Total liabilities | $ 244,108 | $ 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; 50,933 and 49,985 shares issued and 48,633 and 47,707 shares outstanding at October 3, 2015 and January 3, 2015, respectively | $ 509 | $ 498 |
Additional paid-in-capital | 244,430 | 238,229 |
Accumulated other comprehensive loss | 0 | (1,671) |
Accumulated deficit | (132,231) | (152,009) |
Shareholders' equity | 112,708 | 85,047 |
Less: Treasury stock at cost | (10,037) | (11,071) |
Total shareholders' equity | 102,671 | 73,976 |
Total liabilities and shareholders' equity | $ 346,779 | $ 311,749 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 03, 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 | 50,933,000 | 49,985,000 |
Common stock, shares outstanding | 48,633,000 | 47,707,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 19,778 | $ 13,484 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 4,997 | 3,116 |
Amortization | 2,548 | 468 |
Recovery on allowance for doubtful accounts | (257) | (484) |
Stock-based compensation | 1,278 | 888 |
Amortization and write-off of deferred financing costs | 745 | 3,490 |
Derivative financial instruments | 126 | 174 |
Deferred income taxes | 50 | 1,096 |
Excess tax benefits on stock-based compensation | (4,197) | (7,322) |
Loss on disposal of assets | 9 | |
Change in operating assets and liabilities (net of the effect of the acquisition): | ||
Accounts receivable | (13,842) | (5,416) |
Inventories | (3,022) | (3,954) |
Prepaid expenses, other current and other assets | (1,693) | (687) |
Accounts payable, accrued and other liabilities | 14,986 | 12,025 |
Net cash provided by operating activities | 21,506 | 16,878 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (13,629) | (14,486) |
Business acquisition | (110,438) | |
Net cash used in investing activities | (13,629) | (124,924) |
Cash flows from financing activities: | ||
Payments of long-term debt | (1,500) | (79,000) |
Proceeds from issuance of long-term debt | 198,000 | |
Payments of financing costs | (5,291) | |
Purchases of treasury stock | (4) | (1,025) |
Proceeds from exercise of stock options | 1,776 | 1,508 |
Excess tax benefits on stock-based compensation | 4,197 | 7,322 |
Other | (23) | |
Net cash provided by financing activities | 4,446 | 121,514 |
Net increase in cash and cash equivalents | 12,323 | 13,468 |
Cash and cash equivalents at beginning of period | 42,469 | 30,204 |
Cash and cash equivalents at end of period | 54,792 | 43,672 |
Non-cash activity: | ||
Property, plant and equipment additions in accounts payable | $ (176) | $ (1,007) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 03, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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. (“CGI”) (collectively the “Company”), after elimination of intercompany accounts and transactions. We acquired CGI effective on September 22, 2014. The purchase price paid in the acquisition was $110.4 million, which was allocated to the net assets acquired and liabilities assumed as of the acquisition date, in accordance with ASC 805, “Business Combinations”. For a more detailed discussion of this acquisition, see Note 4 in the Company’s Annual Report on Form 10-K for the year ended January 3, 2015. These condensed consolidated financial 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 periods 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 October 3, 2015 and September 27, 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 October 3, 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 | 9 Months Ended |
Oct. 03, 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 October 3, 2015, we recorded warranty expense at a rate of approximately 2.00% of sales. This rate is in line with the 2.00% of sales accrued in the third quarter of 2014. 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 and nine months ended October 3, 2015, and September 27, 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 Acquired Charged to Adjustments Settlements End of (in thousands) Three months ended October 3, 2015 $ 4,077 $ — $ 1,992 $ 19 $ (1,812 ) $ 4,276 Three months ended September 27, 2014 $ 2,306 $ 239 $ 1,535 $ 462 $ (1,337 ) $ 3,205 Nine months ended October 3, 2015 $ 3,302 $ — $ 6,168 $ 266 $ (5,460 ) $ 4,276 Nine months ended September 27, 2014 $ 2,666 $ 239 $ 3,861 $ 316 $ (3,877 ) $ 3,205 |
Inventories
Inventories | 9 Months Ended |
Oct. 03, 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: October 3, January 3, (in thousands) Raw materials $ 19,052 $ 16,674 Work in progress 1,136 791 Finished goods 2,804 2,505 $ 22,992 $ 19,970 |
Stock Based-Compensation
Stock Based-Compensation | 9 Months Ended |
Oct. 03, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based-Compensation | NOTE 4. STOCK BASED-COMPENSATION Exercises For the three months ended October 3, 2015, there were 100,410 options exercised at a weighted average exercise price of $1.99 per share. For the nine months ended October 3, 2015, there were 868,750 options exercised at a weighted average exercise price of $2.04 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 $0.3 million for the three months ended October 3, 2015 and $0.3 million for the three months ended September 27, 2014. We recorded compensation expense for stock based awards of $1.3 million for the nine months ended October 3, 2015 and $0.9 million for the nine months ended September 27, 2014. As of October 3, 2015, and September 27, 2014, there was $1.6 million and $1.4 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 1.6 years at October 3, 2015, and 1.5 years at September 27, 2014. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Oct. 03, 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. Weighted average shares outstanding for the three months ended October 3, 2015, and September 27, 2014, excludes underlying options and restricted stock awards of 20 thousand and 92 thousand, respectively, because their effects were anti-dilutive. Weighted average shares outstanding for the nine months ended October 3, 2015, and September 27, 2014, excludes underlying options and restricted stock awards of 20 thousand and 70 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 Nine Months Ended October 3, September 27, October 3, September 27, (in thousands, except per share amounts) Net income $ 6,346 $ 2,331 $ 19,778 $ 13,484 Weighted-average common shares - Basic 48,596 47,399 48,131 47,271 Add: Dilutive effect of stock compensation plans 1,967 2,393 2,159 2,457 Weighted-average common shares - Diluted 50,563 49,792 50,290 49,728 Net income per common share: Basic $ 0.13 $ 0.05 $ 0.41 $ 0.29 Diluted $ 0.13 $ 0.05 $ 0.39 $ 0.27 |
Goodwill, Trade Names, and Othe
Goodwill, Trade Names, and Other Intangible Assets | 9 Months Ended |
Oct. 03, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Trade Names, and Other Intangible Assets | NOTE 6. GOODWILL, TRADE NAMES, AND OTHER INTANGIBLE ASSETS Goodwill, trade names, and other intangible assets, net, are as follows: October 3, January 3, Initial (in years) (in thousands) Goodwill $ 66,580 $ 66,580 indefinite Trade names and other intangible assets: Trade names $ 57,441 $ 57,441 indefinite Customer relationships 79,700 79,700 8-10 Developed technology 1,700 1,700 10 Non-compete agreement 600 600 2 Less: Accumulated amortization (59,265 ) (56,717 ) Subtotal 22,735 25,283 Other intangible assets, net $ 80,176 $ 82,724 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Oct. 03, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 7. 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 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 October 3, 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. Upon the occurrence of an event of default, the amounts outstanding under the 2014 Credit Agreement may be accelerated and may become due and payable. The face value of the debt as of October 3, 2015, was $198.0 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 October 3, 2015, are as follows (excluding unamortized debt discount and issuance costs): (in thousands) 2015 $ 500 2016 2,000 2017 2,000 2018 2,000 2019 2,000 Thereafter 189,500 Total $ 198,000 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Oct. 03, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | NOTE 8. ACCUMULATED OTHER COMPREHENSIVE LOSS The following table shows the components of accumulated other comprehensive loss for the three months ended September 27, 2014 and nine months ended October 3, 2015, and September 27, 2014. There was no activity for the three months ended October 3, 2015: Three months ended September 27, 2014 (in thousands) Aluminum Interest Total Balance at June 28, 2014 $ (1,676 ) $ (789 ) $ (2,465 ) Amounts reclassified from accumulated other comprehensive loss 63 1,188 1,251 Tax effect (102 ) (399 ) (501 ) Net current-period other comprehensive income (loss) (39 ) 789 750 Balance at September 27, 2014 $ (1,715 ) $ — $ (1,715 ) Nine months ended October 3, 2015 (in thousands) Aluminum Balance at January 3, 2015 $ (1,671 ) Amounts reclassified from accumulated other comprehensive loss 126 Tax effect (50 ) Reversal of income tax allocation 1,595 Net current-period other comprehensive income 1,671 Balance at October 3, 2015 $ — Nine months ended September 27, 2014 (in thousands) Aluminum Interest Total Balance at December 28, 2013 $ (1,837 ) $ (386 ) $ (2,223 ) Other comprehensive income (loss) before reclassification 345 (557 ) (212 ) Amounts reclassified from accumulated other comprehensive loss (65 ) 1,188 1,123 Tax effect (158 ) (245 ) (403 ) Net current-period other comprehensive income 122 386 508 Balance at September 27, 2014 $ (1,715 ) $ — $ (1,715 ) The following table shows the reclassification out of accumulated other comprehensive loss for the three and nine months ended October 3, 2015, and September 27, 2014 ( in thousands): Amounts Reclassified From Affected Line Item in Three Months Ended October 3, September 27, Debit (Credit) Aluminum forward contracts - effective portion $ — $ 101 Cost of sales Aluminum forward contracts - ineffective portion — (38 ) Other expense, net Interest rate swap - de-designation — 1,188 Other expense, net Tax effect — (501 ) Tax expense Nine Months Ended October 3, September 27, Debit (Credit) Aluminum forward contracts - effective portion $ 126 $ (27 ) Cost of sales Aluminum forward contracts - ineffective portion — (38 ) Other expense, net Interest rate swap - de-designation — 1,188 Other expense, net Tax effect (50 ) (588 ) Tax expense |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9. 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 | 9 Months Ended |
Oct. 03, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. INCOME TAXES Income tax expense was $3.6 million for the three months ended October 3, 2015, compared with $1.7 million for the three months ended September 27, 2014. Our effective tax rate for the three months ended October 3, 2015, was 36.5%, and was 42.1% for the three months ended September 27, 2014. Income tax expense for the nine months ended October 3, 2015, was $13.7 million, compared with $8.4 million for the nine months ended September 27, 2014. Our effective tax rate for the nine months ended October 3, 2015, was 40.9%, and was 38.5% for the nine months ended September 27, 2014. Income tax expense in the nine month period ended October 3, 2015, includes a $1.6 million discrete item of income tax expense representing income tax expense previously classified within accumulated other comprehensive losses, relating to the intraperiod income taxes on our effective aluminum hedges, allocated to other comprehensive income in the year ended January 2, 2010, which we reversed in the second quarter of 2015, as the result of the culmination of our remaining cash flow hedges. Excluding this discrete item of income tax expense, the effective tax rate for the nine month period ended October 3, 2015, would have been 36.1%. The effective tax rates in all periods of both 2015 and 2014, excluding the effect of the discrete income tax item in the nine months ended October 3, 2015, were lower than our combined statutory federal and state tax rate of 38.8% primarily as the result of the estimated impact of the section 199 domestic manufacturing deduction. |
Derivatives
Derivatives | 9 Months Ended |
Oct. 03, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 11. 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. Certain of 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 October 3, 2015, no amounts were borrowed under this line of credit. At October 3, 2015, the fair value of our aluminum forward contracts was in a net liability position of $167 thousand, and had two outstanding forward contracts for the purchase of 0.8 million pounds of aluminum through December 2015, at an average price of $0.93 per pound, which excludes the Midwest premium, with maturity dates of between one month and two 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 October 3, 2015. For the three and nine months ended October 3, 2015, and September 27, 2014, our outstanding contracts did not qualify as effective. In the case of our two outstanding contracts as of October 3, 2015, these contracts were never evaluated for or considered as qualifying for accounting as cash flow hedges. 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 changes in value of the aluminum forward contracts occurring after ineffectiveness and the contracts that had not been evaluated for or considered as qualifying for accounting as cash flow hedges, are recognized in other expense, net, on the condensed consolidated statements of comprehensive income. The adjustments relating to changes in value of aluminum forward contracts occurring after ineffectiveness were other income of $54 thousand for the three months ended and September 27, 2014, and other expenses of $224 thousand and other income of $182 thousand for the nine months ended October 3, 2015, and September 27, 2014, respectively. The adjustments relating to changes in value of aluminum contracts that had not been evaluated for or considered as qualifying for accounting as cash flow hedges were $131 thousand in the three and nine months ended October 3, 2015. As of October 3, 2015, we have no remaining accumulated other comprehensive income or loss. Derivative Financial Instruments – Interest Rate Contract We had 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 either zero or de minimis for the three and nine months ended October 3, 2015, and September 27, 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 October 3, January 3, Derivative instruments: Aluminum forward contracts Accrued liabilities $ (167 ) $ (491 ) Interest rate cap Other current assets — 2 Total derivative instruments $ (167 ) $ (489 ) The impact of the offsetting derivative instruments are depicted below (in thousands): Gross Amounts not Offset Gross Gross Net Financial Cash Net As of October 3, 2015: Aluminum forward contracts $ (167 ) $ — $ (167 ) $ — $ — $ (167 ) As of January 3, 2015: Aluminum forward contracts $ (491 ) $ — $ (491 ) $ — $ — $ (491 ) Interest rate cap $ 2 $ — $ 2 $ — $ — $ 2 The following represents the gains (losses) on derivative financial instruments for the three and nine months ended October 3, 2015 and September 27, 2014, and their classifications within the accompanying condensed consolidated statements of comprehensive income. There were no amounts recognized in accumulated OCI(L) for either the three or nine months ended October 3, 2015, or the three months ended September 27, 2014. There were no amounts reclassified from accumulated OCI(L), or recognized in income for the three months ended October 3, 2015 (in thousands): Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) Amount of Gain or Amount of Gain or Three Months Ended Three Months Ended Sept. 27, 2014 Sept. 27, 2014 Aluminum contracts Cost of sales $ (101 ) $ — Aluminum contracts Other expense, net 38 16 Interest rate swap Other expense, net (1,188 ) 115 $ (1,251 ) $ 131 Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Effective Portion) Location of Gain or (Loss) Amount of Gain or Amount of Gain or Nine Months Ended Nine Months Ended Nine Months Ended Sept. 27, 2014 Oct. 3, Sept. 27, Oct. 3, Sept. 27, Aluminum contracts $ 345 Cost of sales $ (126 ) $ 27 $ (224 ) $ — Aluminum contracts — Other expense, net — 38 — 144 Interest rate cap — Other expense, net — — (2 ) (27 ) Interest rate swap (557 ) Other expense, net — (1,188 ) — 115 $ (212 ) $ (126 ) $ (1,123 ) $ (226 ) $ 232 |
Fair Value
Fair Value | 9 Months Ended |
Oct. 03, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 12. 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 (in thousands): Fair Value Measurements Assets (Liabilities) Total Quoted (Level 1) Significant (Level 2) Significant (Level 3) As of October 3, 2015: Aluminum forward contracts $ (167 ) $ — $ (167 ) $ — $ (167 ) $ — $ (167 ) $ — As of January 3, 2015: 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 October 3, 2015, and January 3, 2015 (in thousands): October 3, 2015 January 3, 2015 Carrying Estimated Value Carrying Estimated Value Financial assets (liabilities) Cash and cash equivalents $ 54,792 $ 54,792 $ 42,469 $ 42,469 Accounts receivable, net $ 38,957 $ 38,957 $ 25,374 $ 25,374 Accounts payable and accrued liabilities $ (24,414 ) $ (24,414 ) $ (17,328 ) $ (17,328 ) Long-term debt (including current portion) $ (192,778 ) $ (192,778 ) $ (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 Accounts receivable, net Accounts payable and accrued liabilities Debt |
Subsequent Event
Subsequent Event | 9 Months Ended |
Oct. 03, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | NOTE 13. SUBSEQUENT EVENT On October 28, 2015, we announced that our Board of Directors authorized a share buyback program of up to $20 million. Repurchases under the program, the timing, manner, price and amounts of which will be determined by the Company, will be made in open market or privately negotiated transactions, subject to market conditions, applicable legal requirements, our credit facility, and other relevant factors. The program may be suspended, terminated or modified at any time for any reason. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Oct. 03, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted Accounting Pronouncements | 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 (Tables)
Warranty (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Guarantees [Abstract] | |
Information Regarding Warranty Accrual | The following provides information with respect to our warranty accrual: Accrued Warranty Beginning Acquired Charged to Adjustments Settlements End of (in thousands) Three months ended October 3, 2015 $ 4,077 $ — $ 1,992 $ 19 $ (1,812 ) $ 4,276 Three months ended September 27, 2014 $ 2,306 $ 239 $ 1,535 $ 462 $ (1,337 ) $ 3,205 Nine months ended October 3, 2015 $ 3,302 $ — $ 6,168 $ 266 $ (5,460 ) $ 4,276 Nine months ended September 27, 2014 $ 2,666 $ 239 $ 3,861 $ 316 $ (3,877 ) $ 3,205 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: October 3, January 3, (in thousands) Raw materials $ 19,052 $ 16,674 Work in progress 1,136 791 Finished goods 2,804 2,505 $ 22,992 $ 19,970 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Oct. 03, 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 Nine Months Ended October 3, September 27, October 3, September 27, (in thousands, except per share amounts) Net income $ 6,346 $ 2,331 $ 19,778 $ 13,484 Weighted-average common shares - Basic 48,596 47,399 48,131 47,271 Add: Dilutive effect of stock compensation plans 1,967 2,393 2,159 2,457 Weighted-average common shares - Diluted 50,563 49,792 50,290 49,728 Net income per common share: Basic $ 0.13 $ 0.05 $ 0.41 $ 0.29 Diluted $ 0.13 $ 0.05 $ 0.39 $ 0.27 |
Goodwill, Trade Names, and Ot23
Goodwill, Trade Names, and Other Intangible Assets (Tables) | 9 Months Ended |
Oct. 03, 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: October 3, January 3, Initial (in years) (in thousands) Goodwill $ 66,580 $ 66,580 indefinite Trade names and other intangible assets: Trade names $ 57,441 $ 57,441 indefinite Customer relationships 79,700 79,700 8-10 Developed technology 1,700 1,700 10 Non-compete agreement 600 600 2 Less: Accumulated amortization (59,265 ) (56,717 ) Subtotal 22,735 25,283 Other intangible assets, net $ 80,176 $ 82,724 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Debt Disclosure [Abstract] | |
Contractual Future Maturities of Long-term Debt | The contractual future maturities of long-term debt outstanding as of October 3, 2015, are as follows (excluding unamortized debt discount and issuance costs): (in thousands) 2015 $ 500 2016 2,000 2017 2,000 2018 2,000 2019 2,000 Thereafter 189,500 Total $ 198,000 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Oct. 03, 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 September 27, 2014 and nine months ended October 3, 2015, and September 27, 2014. There was no activity for the three months ended October 3, 2015: Three months ended September 27, 2014 (in thousands) Aluminum Interest Total Balance at June 28, 2014 $ (1,676 ) $ (789 ) $ (2,465 ) Amounts reclassified from accumulated other comprehensive loss 63 1,188 1,251 Tax effect (102 ) (399 ) (501 ) Net current-period other comprehensive income (loss) (39 ) 789 750 Balance at September 27, 2014 $ (1,715 ) $ — $ (1,715 ) Nine months ended October 3, 2015 (in thousands) Aluminum Balance at January 3, 2015 $ (1,671 ) Amounts reclassified from accumulated other comprehensive loss 126 Tax effect (50 ) Reversal of income tax allocation 1,595 Net current-period other comprehensive income 1,671 Balance at October 3, 2015 $ — Nine months ended September 27, 2014 (in thousands) Aluminum Interest Total Balance at December 28, 2013 $ (1,837 ) $ (386 ) $ (2,223 ) Other comprehensive income (loss) before reclassification 345 (557 ) (212 ) Amounts reclassified from accumulated other comprehensive loss (65 ) 1,188 1,123 Tax effect (158 ) (245 ) (403 ) Net current-period other comprehensive income 122 386 508 Balance at September 27, 2014 $ (1,715 ) $ — $ (1,715 ) |
Reclassification Out of Accumulated Other Comprehensive Loss | The following table shows the reclassification out of accumulated other comprehensive loss for the three and nine months ended October 3, 2015, and September 27, 2014 ( in thousands): Amounts Reclassified From Affected Line Item in Three Months Ended October 3, September 27, Debit (Credit) Aluminum forward contracts - effective portion $ — $ 101 Cost of sales Aluminum forward contracts - ineffective portion — (38 ) Other expense, net Interest rate swap - de-designation — 1,188 Other expense, net Tax effect — (501 ) Tax expense Nine Months Ended October 3, September 27, Debit (Credit) Aluminum forward contracts - effective portion $ 126 $ (27 ) Cost of sales Aluminum forward contracts - ineffective portion — (38 ) Other expense, net Interest rate swap - de-designation — 1,188 Other expense, net Tax effect (50 ) (588 ) Tax expense |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivatives | 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 October 3, January 3, Derivative instruments: Aluminum forward contracts Accrued liabilities $ (167 ) $ (491 ) Interest rate cap Other current assets — 2 Total derivative instruments $ (167 ) $ (489 ) |
Schedule of Offsetting Derivative Instrument | The impact of the offsetting derivative instruments are depicted below (in thousands): Gross Amounts not Offset Gross Gross Net Financial Cash Net As of October 3, 2015: Aluminum forward contracts $ (167 ) $ — $ (167 ) $ — $ — $ (167 ) As of January 3, 2015: Aluminum forward contracts $ (491 ) $ — $ (491 ) $ — $ — $ (491 ) Interest rate cap $ 2 $ — $ 2 $ — $ — $ 2 |
Gains (Losses) on Derivative Financial Instruments | The following represents the gains (losses) on derivative financial instruments for the three and nine months ended October 3, 2015 and September 27, 2014, and their classifications within the accompanying condensed consolidated statements of comprehensive income. There were no amounts recognized in accumulated OCI(L) for either the three or nine months ended October 3, 2015, or the three months ended September 27, 2014. There were no amounts reclassified from accumulated OCI(L), or recognized in income for the three months ended October 3, 2015 (in thousands): Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) Amount of Gain or Amount of Gain or Three Months Ended Three Months Ended Sept. 27, 2014 Sept. 27, 2014 Aluminum contracts Cost of sales $ (101 ) $ — Aluminum contracts Other expense, net 38 16 Interest rate swap Other expense, net (1,188 ) 115 $ (1,251 ) $ 131 Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Effective Portion) Location of Gain or (Loss) Amount of Gain or Amount of Gain or Nine Months Ended Nine Months Ended Nine Months Ended Sept. 27, 2014 Oct. 3, Sept. 27, Oct. 3, Sept. 27, Aluminum contracts $ 345 Cost of sales $ (126 ) $ 27 $ (224 ) $ — Aluminum contracts — Other expense, net — 38 — 144 Interest rate cap — Other expense, net — — (2 ) (27 ) Interest rate swap (557 ) Other expense, net — (1,188 ) — 115 $ (212 ) $ (126 ) $ (1,123 ) $ (226 ) $ 232 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Oct. 03, 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 (in thousands): Fair Value Measurements Assets (Liabilities) Total Quoted (Level 1) Significant (Level 2) Significant (Level 3) As of October 3, 2015: Aluminum forward contracts $ (167 ) $ — $ (167 ) $ — $ (167 ) $ — $ (167 ) $ — As of January 3, 2015: 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 October 3, 2015, and January 3, 2015 (in thousands): October 3, 2015 January 3, 2015 Carrying Estimated Value Carrying Estimated Value Financial assets (liabilities) Cash and cash equivalents $ 54,792 $ 54,792 $ 42,469 $ 42,469 Accounts receivable, net $ 38,957 $ 38,957 $ 25,374 $ 25,374 Accounts payable and accrued liabilities $ (24,414 ) $ (24,414 ) $ (17,328 ) $ (17,328 ) Long-term debt (including current portion) $ (192,778 ) $ (192,778 ) $ (193,754 ) $ (193,754 ) |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Millions | Sep. 22, 2014USD ($) |
CGI [Member] | |
Business Acquisition [Line Items] | |
Acquisition of CGI, transaction value | $ 110.4 |
Warranty - Additional Informati
Warranty - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | |
Product Warranty Liability [Line Items] | |||
Warranty expense rates | 2.00% | 2.00% | |
Minimum [Member] | |||
Product Warranty Liability [Line Items] | |||
Warranty periods | 1 year | ||
Warranty period of the majority of products sold | 1 year | ||
Maximum [Member] | |||
Product Warranty Liability [Line Items] | |||
Warranty periods | 10 years | ||
Warranty period of the majority of products sold | 3 years |
Warranty - Information Regardin
Warranty - Information Regarding Warranty Accrual (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Guarantees [Abstract] | ||||
Accrued Warranty, Beginning of Period | $ 4,077 | $ 2,306 | $ 3,302 | $ 2,666 |
Accrued Warranty, Acquired | 239 | 239 | ||
Accrued Warranty, Charged to Expense | 1,992 | 1,535 | 6,168 | 3,861 |
Accrued Warranty, Adjustments | 19 | 462 | 266 | 316 |
Accrued Warranty, Settlements | (1,812) | (1,337) | (5,460) | (3,877) |
Accrued Warranty, End of Period | $ 4,276 | $ 3,205 | $ 4,276 | $ 3,205 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 19,052 | $ 16,674 |
Work in progress | 1,136 | 791 |
Finished goods | 2,804 | 2,505 |
Total inventory | $ 22,992 | $ 19,970 |
Stock Based-Compensation - Addi
Stock Based-Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 04, 2015 | Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of stock options exercised | 100,410 | 868,750 | |||
Weighted average exercise price of options exercised | $ 1.99 | $ 2.04 | |||
Compensation expense for stock based awards | $ 300 | $ 300 | $ 1,278 | $ 888 | |
Total unrecognized compensation cost related to non-vested stock option and restricted stock awards | $ 1,600 | $ 1,400 | $ 1,600 | $ 1,400 | |
Weighted average remaining period of stock option | 1 year 7 months 6 days | 1 year 6 months | |||
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 | ||||
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 | ||||
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 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive options excluded from weighted average shares outstanding | 20 | 92 | 20 | 70 |
Net Income Per Common Share - C
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 ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 6,346 | $ 2,331 | $ 19,778 | $ 13,484 |
Weighted-average common shares - Basic | 48,596 | 47,399 | 48,131 | 47,271 |
Add: Dilutive effect of stock compensation plans | 1,967 | 2,393 | 2,159 | 2,457 |
Weighted-average common shares - Diluted | 50,563 | 49,792 | 50,290 | 49,728 |
Net income per common share: | ||||
Basic | $ 0.13 | $ 0.05 | $ 0.41 | $ 0.29 |
Diluted | $ 0.13 | $ 0.05 | $ 0.39 | $ 0.27 |
Goodwill, Trade Names, and Ot35
Goodwill, Trade Names, and Other Intangible Assets - Schedule of Goodwill, Trade Names and Other Intangible Assets Net (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2015 | Jan. 03, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 66,580 | $ 66,580 |
Less: Accumulated amortization | (59,265) | (56,717) |
Subtotal | 22,735 | 25,283 |
Other intangible assets, net | 80,176 | 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 Inf
Long Term Debt - Additional Information (Detail) $ in Millions | Oct. 03, 2015USD ($) |
Line of Credit Facility [Line Items] | |
Letters of credit outstanding | $ 0.5 |
Revolving Credit Facility Percentage Margin Over Base Rate | 20.00% |
Face value of debt | $ 198 |
Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Credit available on revolver | $ 34.5 |
Long Term Debt - Contractual Fu
Long Term Debt - Contractual Future Maturities of Long-Term Debt (Detail) $ in Thousands | Oct. 03, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,015 | $ 500 |
2,016 | 2,000 |
2,017 | 2,000 |
2,018 | 2,000 |
2,019 | 2,000 |
Thereafter | 189,500 |
Total | $ 198,000 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ (2,465) | $ (1,671) | $ (2,223) |
Other comprehensive income (loss) before reclassification | (212) | ||
Amounts reclassified from accumulated other comprehensive loss | 1,251 | 1,123 | |
Tax effect | (501) | (403) | |
Net current-period other comprehensive income (loss) | 750 | 508 | |
Ending Balance | (1,715) | 0 | (1,715) |
Aluminum Forward Contracts [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1,676) | (1,671) | (1,837) |
Other comprehensive income (loss) before reclassification | 345 | ||
Amounts reclassified from accumulated other comprehensive loss | 63 | 126 | (65) |
Tax effect | (102) | (50) | (158) |
Reversal of income tax allocation | 1,595 | ||
Net current-period other comprehensive income (loss) | (39) | $ 1,671 | 122 |
Ending Balance | (1,715) | (1,715) | |
Interest Rate Swap [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (789) | (386) | |
Other comprehensive income (loss) before reclassification | (557) | ||
Amounts reclassified from accumulated other comprehensive loss | 1,188 | 1,188 | |
Tax effect | (399) | (245) | |
Net current-period other comprehensive income (loss) | $ 789 | $ 386 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Loss - Reclassification Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | $ 71,247 | $ 54,136 | $ 203,395 | $ 152,565 |
Other expense, net | (131) | (1,019) | (357) | (918) |
Tax expense | $ 3,646 | 1,695 | 13,681 | 8,442 |
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 | 101 | 126 | (27) | |
Other expense, net | (38) | (38) | ||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Interest Rate Swap [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other expense, net | 1,188 | 1,188 | ||
Tax expense | $ (501) | $ (50) | $ (588) |
Income Taxes - Additional infor
Income Taxes - Additional information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 3,646 | $ 1,695 | $ 13,681 | $ 8,442 |
Effective tax rates | 36.50% | 42.10% | 40.90% | 38.50% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 38.80% | 38.80% | ||
Income tax expense, discrete item | $ 1,600 | |||
Effective tax rate, excluding discrete item | 36.10% |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) lb in Millions | Sep. 16, 2013USD ($) | Oct. 03, 2015USD ($)Contractlb$ / lb | Sep. 27, 2014USD ($) | Oct. 03, 2015USD ($)Contractlb$ / lb | Sep. 27, 2014USD ($) | Jan. 03, 2015USD ($) | Jun. 28, 2014USD ($) | Dec. 28, 2013USD ($) |
Derivative [Line Items] | ||||||||
Accumulated other comprehensive income or loss | $ 0 | $ (1,715,000) | $ 0 | $ (1,715,000) | $ (1,671,000) | $ (2,465,000) | $ (2,223,000) | |
Recognized in accumulated OCI(L) | 0 | 0 | 0 | (212,000) | ||||
Reclassified from accumulated OCI(L), or recognized in income | 0 | (1,251,000) | (126,000) | (1,123,000) | ||||
Other Expense, Net [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | 131,000 | (226,000) | 232,000 | |||||
Aluminum Contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | 131,000 | 131,000 | ||||||
Aluminum Contracts [Member] | Other Expense, Net [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | 16,000 | $ (224,000) | 144,000 | |||||
Reclassified from accumulated OCI(L), or recognized in income | 38,000 | 38,000 | ||||||
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 | |||||||
Description of Location of Gain (Loss) on Interest Rate Derivative on Income Statement | 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 either zero or de minimis for the three and nine months ended October 3, 2015, and September 27, 2014, respectively. | |||||||
Interest Rate Caps [Member] | Other Expense, Net [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | $ (2,000) | (27,000) | ||||||
Aluminum Forward Contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Line of credit to cover the liability position of open contracts | 2,000,000 | 2,000,000 | ||||||
Price of aluminum, maximum exposure | 2,000,000 | |||||||
Amounts borrowed under line of credit | 0 | 0 | ||||||
Derivative financial instruments, fair value of net liability | $ 167,000 | $ 167,000 | 491,000 | |||||
Number of outstanding forward contracts, liability | Contract | 2 | 2 | ||||||
Purchase of aluminum commodity contracts | lb | 0.8 | 0.8 | ||||||
Aluminum commodity contracts, average price per pound | $ / lb | 0.93 | 0.93 | ||||||
Aluminum commodity contracts, lower maturity date | 1 month | |||||||
Aluminum commodity contracts, upper maturity date | 2 months | |||||||
Accumulated other comprehensive income or loss | $ (1,715,000) | $ (1,715,000) | $ (1,671,000) | $ (1,676,000) | $ (1,837,000) |
Derivatives - Fair Value of Der
Derivatives - Fair Value of Derivatives (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 |
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments | $ (167) | $ (489) |
Aluminum Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives in a net liability position | (167) | (491) |
Total derivative instruments | (167) | (491) |
Aluminum Forward Contracts [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives in a net liability position | $ (167) | (491) |
Interest Rate Caps [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives in a net asset position | $ 2 |
Derivatives - Schedule of Offse
Derivatives - Schedule of Offsetting Derivative Instrument (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 |
Derivative [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ (167) | $ (489) |
Interest Rate Caps [Member] | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 2 | |
Gross Amounts offset in Balance Sheet - Assets | 0 | |
Net amounts of Assets Presented in Balance Sheet | 2 | |
Financial Instruments - Assets | 0 | |
Cash Collateral Received - Assets | 0 | |
Net Amount | 2 | |
Aluminum Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Liabilities | (167) | (491) |
Gross Amounts offset in Balance Sheet - Liabilities | 0 | 0 |
Net amounts of Liabilities Presented in Balance Sheet | (167) | (491) |
Financial Instruments - Liabilities | 0 | 0 |
Cash Collateral Pledged - Liabilities | 0 | 0 |
Net Amount | $ (167) | $ (491) |
Derivatives - Gains (Losses) on
Derivatives - Gains (Losses) on Derivative Financial Instruments (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Accumulated OCI(L) on Derivatives (Effective Portion) | $ 0 | $ 0 | $ 0 | $ (212,000) |
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income (Effective Portion) | 0 | (1,251,000) | (126,000) | (1,123,000) |
Other Expense, Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | 131,000 | (226,000) | 232,000 | |
Aluminum Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | $ 131,000 | 131,000 | ||
Aluminum Contracts [Member] | Other Expense, Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income (Effective Portion) | 38,000 | 38,000 | ||
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | 16,000 | (224,000) | 144,000 | |
Aluminum Contracts [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Accumulated OCI(L) on Derivatives (Effective Portion) | 345,000 | |||
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income (Effective Portion) | (101,000) | (126,000) | 27,000 | |
Interest Rate Caps [Member] | Other Expense, Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | $ (2,000) | (27,000) | ||
Interest Rate Swap [Member] | Other Expense, Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Accumulated OCI(L) on Derivatives (Effective Portion) | (557,000) | |||
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income (Effective Portion) | (1,188,000) | (1,188,000) | ||
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | $ 115,000 | $ 115,000 |
Fair Value - Items Measured at
Fair Value - Items Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, net liability and assets | $ (167) | $ (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 | (167) | (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 | |
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 | (167) | (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 | $ (167) | (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 |
Fair Value - Fair Value of Fina
Fair Value - Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Dec. 28, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 54,792 | $ 42,469 | $ 43,672 | $ 30,204 |
Accounts receivable, net | 38,957 | 25,374 | ||
Accounts payable and accrued liabilities | (24,414) | (17,328) | ||
Estimated Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 54,792 | 42,469 | ||
Accounts receivable, net | 38,957 | 25,374 | ||
Accounts payable and accrued liabilities | (24,414) | (17,328) | ||
Long-term debt (including current portion) | (192,778) | (193,754) | ||
Carrying Amount [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 54,792 | 42,469 | ||
Accounts receivable, net | 38,957 | 25,374 | ||
Accounts payable and accrued liabilities | (24,414) | (17,328) | ||
Long-term debt (including current portion) | $ (192,778) | $ (193,754) |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) | Oct. 28, 2015USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 20,000,000 |