Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Feb. 29, 2016 | Jul. 02, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 2, 2016 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PGTI | ||
Entity Registrant Name | PGT, Inc. | ||
Entity Central Index Key | 1,354,327 | ||
Current Fiscal Year End Date | --01-02 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 48,899,102 | ||
Entity Public Float | $ 676,375,083 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 389,810 | $ 306,388 | $ 239,303 |
Cost of sales | 270,678 | 213,596 | 159,169 |
Gross margin | 119,132 | 92,792 | 80,134 |
Gain on sale of assets held | (2,195) | ||
Selling, general and administrative expenses | 68,190 | 56,377 | 54,594 |
Income from operations | 50,942 | 36,415 | 27,735 |
Interest expense, net | 11,705 | 5,960 | 3,520 |
Debt extinguishment costs | 2,625 | 333 | |
Other expense, net | 388 | 1,750 | 437 |
Income before income taxes | 38,849 | 26,080 | 23,445 |
Income tax expense (benefit) | 15,297 | 9,675 | (3,374) |
Net income | $ 23,552 | $ 16,405 | $ 26,819 |
Net income per common share: | |||
Basic | $ 0.49 | $ 0.35 | $ 0.55 |
Diluted | $ 0.47 | $ 0.33 | $ 0.51 |
Weighted average shares outstanding: | |||
Basic | 48,272 | 47,376 | 48,881 |
Diluted | 50,368 | 49,777 | 52,211 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 23,552 | $ 16,405 | $ 26,819 |
Other comprehensive income (loss) before tax | |||
Change in fair value of derivatives | (212) | (1,391) | |
Reclassification to earnings | 126 | 1,195 | 145 |
Other comprehensive income (loss) before tax | 126 | 983 | (1,246) |
Income tax expense (benefit) related to components of other comprehensive income (loss) | 50 | 431 | (437) |
Reversal of income tax allocation | (1,595) | ||
Other comprehensive income (loss), net of tax | 1,671 | 552 | (809) |
Comprehensive income | $ 25,223 | $ 16,957 | $ 26,010 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 61,493 | $ 42,469 |
Accounts receivable, net | 31,783 | 25,374 |
Inventories | 23,053 | 19,970 |
Prepaid expenses | 2,170 | 1,564 |
Other current assets | 8,490 | 4,900 |
Total current assets | 126,989 | 94,277 |
Property, plant and equipment, net | 71,503 | 60,898 |
Trade names and other intangible assets, net | 79,311 | 82,724 |
Goodwill | 65,635 | 66,580 |
Other assets, net | 2,291 | 2,110 |
Total assets | 345,729 | 306,589 |
Current liabilities: | ||
Accounts payable | 8,180 | 5,404 |
Accrued liabilities | 11,398 | 11,924 |
Current portion of long-term debt | 1,966 | 1,962 |
Total current liabilities | 21,544 | 19,290 |
Long-term debt, less current portion | 190,502 | 191,792 |
Deferred income taxes | 25,894 | 20,796 |
Other liabilities | 828 | 735 |
Total liabilities | $ 238,768 | $ 232,613 |
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; 51,146 and 49,985 shares issued and 48,806 and 47,707 shares outstanding at January 2, 2016, and January 3, 2015, respectively | $ 511 | $ 498 |
Additional paid-in-capital | 244,944 | 238,229 |
Accumulated other comprehensive loss | (1,671) | |
Accumulated deficit | (128,457) | (152,009) |
Shareholders' equity | 116,998 | 85,047 |
Less: Treasury stock at cost | (10,037) | (11,071) |
Total shareholders' equity | 106,961 | 73,976 |
Total liabilities and shareholders' equity | $ 345,729 | $ 306,589 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 02, 2016 | 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 | 51,146,000 | 49,985,000 |
Common stock, shares outstanding | 48,806,000 | 47,707,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 23,552 | $ 16,405 | $ 26,819 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 7,008 | 4,534 | 4,622 |
Amortization | 3,413 | 1,446 | 6,458 |
Provision for (recovery on) allowance for doubtful accounts | (131) | (535) | 29 |
Stock-based compensation | 1,774 | 1,214 | 970 |
Amortization and write-offs of deferred financing costs and debt discount | 1,014 | 3,533 | 1,660 |
Derivative financial instruments | 126 | 669 | (16) |
Deferred income taxes | 5,993 | 3,329 | (3,460) |
Tax benefit on exercised stock options | (3,840) | (6,064) | (396) |
Loss (gain) on disposal of assets | 10 | (2,186) | |
Change in operating assets and liabilities (excluding the effects of the acquisition): | |||
Accounts receivable | (7,263) | (642) | (8,234) |
Inventories | (3,083) | (3,834) | (1,379) |
Prepaid expenses and other current assets | (1,786) | (1,628) | (1,267) |
Accounts payable and accrued liabilities | 5,669 | 3,823 | 2,111 |
Net cash provided by operating activities | 32,456 | 22,250 | 25,731 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (17,391) | (19,301) | (7,550) |
Acquisition of CGI | (110,438) | ||
Proceeds from disposals of assets | 7,478 | ||
Net cash used in investing activities | (17,391) | (129,739) | (72) |
Cash flows from financing activities: | |||
Payments of long-term debt | (2,000) | (79,500) | (38,500) |
Proceeds from issuance of long-term debt | 198,000 | 80,000 | |
Payments of financing costs | (5,466) | (3,583) | |
Purchases of treasury stock | (44) | (1,025) | (56,091) |
Proceeds from exercise of stock options | 2,192 | 1,691 | 3,580 |
Tax benefit on exercised stock options | 3,840 | 6,064 | 396 |
Other | (29) | (10) | |
Net cash provided by (used in) financing activities | 3,959 | 119,754 | (14,198) |
Net increase in cash and cash equivalents | 19,024 | 12,265 | 11,461 |
Cash and cash equivalents at beginning of period | 42,469 | 30,204 | 18,743 |
Cash and cash equivalents at end of period | 61,493 | 42,469 | 30,204 |
Supplemental cash flow information: | |||
Interest paid | 11,502 | 2,216 | 2,662 |
Income tax payments, net of refunds | 6,808 | 1,198 | 135 |
Non-cash activity: | |||
Property, plant and equipment additions in accounts payable | $ 723 | $ 489 | $ 248 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 29, 2012 | $ 74,210 | $ 537 | $ 274,275 | $ (1,414) | $ (195,233) | $ (3,955) |
Beginning Balance, Shares at Dec. 29, 2012 | 52,814,279 | |||||
Purchases of treasury stock | (56,091) | (56,091) | ||||
Purchases of treasury stock, Shares | (7,865,249) | |||||
Retirement of treasury stock | $ (68) | (49,932) | 50,000 | |||
Stock-based compensation | 970 | 970 | ||||
Exercise of stock options | $ 3,580 | $ 20 | 3,560 | |||
Exercise of stock options, Shares | 1,922,167 | 1,922,167 | ||||
Tax benefit on exercised stock options | $ 396 | 396 | ||||
Comprehensive income (loss), net of tax effect | (809) | (809) | ||||
Net income | 26,819 | 26,819 | ||||
Ending Balance at Dec. 28, 2013 | 49,075 | $ 489 | 229,269 | (2,223) | (168,414) | (10,046) |
Ending Balance, Shares at Dec. 28, 2013 | 46,871,197 | |||||
Vesting of restricted stock, Shares | 22,581,000 | |||||
Purchases of treasury stock | (1,025) | (1,025) | ||||
Purchases of treasury stock, Shares | (93,081) | |||||
Stock-based compensation | 1,214 | 1,214 | ||||
Exercise of stock options | $ 1,691 | $ 9 | 1,682 | |||
Exercise of stock options, Shares | 906,573 | 906,573 | ||||
Tax benefit on exercised stock options | $ 6,064 | 6,064 | ||||
Comprehensive income (loss), net of tax effect | 552 | 552 | ||||
Net income | 16,405 | 16,405 | ||||
Ending Balance at Jan. 03, 2015 | $ 73,976 | $ 498 | 238,229 | (1,671) | (152,009) | (11,071) |
Ending Balance, Shares at Jan. 03, 2015 | 49,985,000 | 47,707,270 | ||||
Grants of restricted stock | $ 3 | (3) | ||||
Vesting of restricted stock, Shares | 69,161,000 | |||||
Purchases of treasury stock | $ (44) | (44) | ||||
Purchases of treasury stock, Shares | 0 | (3,746) | ||||
Retirement of treasury stock | (1,078) | 1,078 | ||||
Stock-based compensation | $ 1,774 | 1,774 | ||||
Exercise of stock options | $ 2,192 | $ 10 | 2,182 | |||
Exercise of stock options, Shares | 1,033,750 | 1,033,750 | ||||
Tax benefit on exercised stock options | $ 3,840 | 3,840 | ||||
Comprehensive income (loss), net of tax effect | 1,671 | $ 1,671 | ||||
Net income | 23,552 | 23,552 | ||||
Ending Balance at Jan. 02, 2016 | $ 106,961 | $ 511 | $ 244,944 | $ (128,457) | $ (10,037) | |
Ending Balance, Shares at Jan. 02, 2016 | 51,146,000 | 48,806,435 |
Description of Business
Description of Business | 12 Months Ended |
Jan. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business PGT, Inc. (“PGTI”, “we,” or the “Company”) is a leading manufacturer of impact-resistant aluminum and vinyl-framed windows and doors and offers a broad range of fully customizable window and door products. The majority of our sales, are to customers in the state of Florida; however, we also sell products in over 48 states, the Caribbean, Canada, Australia, and in South and Central America. Products are sold through an authorized dealer and distributor network. On September 22, 2014 (the Closing Date), we completed the acquisition of CGI Windows and Doors Holdings, Inc. (CGI) which became a wholly-owned subsidiary of PGT Industries, Inc., which is wholly-owned by PGTI. CGI was established in 1992 and designs and manufactures quality-impact resistant products that meet or exceed the Miami-Dade County impact standards. (See Note 4). We were incorporated in the state of Delaware on December 16, 2003, as JLL Window Holdings, Inc., with primary operations in North Venice, Florida. On February 15, 2006, our Company was renamed PGT, Inc. We have two manufacturing operations with one in North Venice and one in Miami. Additionally, we have two glass tempering and laminating plants, one insulation glass plant, all located in North Venice. All references to PGTI or our Company apply to the consolidated financial statements of PGT, Inc. unless otherwise noted. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Fiscal period Our fiscal year consists of 52 or 53 weeks ending on the Saturday nearest December 31 of the related year. The year ended January 3, 2015, consisted of 53 weeks. The years ended January 2, 2016, and December 28, 2013, consisted of 52 weeks. Principles of consolidation The consolidated financial statements present the results of the operations, financial position and cash flows of PGTI, and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Segment information We operate as one operating segment, the manufacture and sale of windows and doors. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Revenue recognition We recognize sales when all of the following criteria have been met: a valid customer order with a fixed price has been received; the product has been delivered; and collectability is reasonably assured. All sales recognized are net of allowances for discounts and estimated credits, which are estimated using historical experience. We record provisions against gross revenues for estimated credits in the period when the related revenue is recorded. These estimates are based on factors that include, but are not limited to, analysis of credit memorandum activity. Cost of sales Cost of sales represents costs directly related to the production of our products. Primary costs include raw materials, direct labor, and manufacturing overhead, which consist of salaries, wages, employee benefits, utilities, maintenance, engineering and property taxes. Shipping and handling costs Shipping and handling costs incurred in the purchase of materials used in the manufacturing process are included in cost of sales. Costs relating to shipping and handling of our finished products are included in selling, general and administrative expenses and totaled $15.4 million, $13.0 million and $10.6 million for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. Advertising We expense advertising costs as incurred. Advertising expense included in selling, general and administrative expenses was $0.3 million, $0.7 million and $0.7 million for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, , respectively. Research and development costs We expense research and development costs as incurred. Research and development costs included in cost of sales were $2.0 million, $1.8 million and $1.3 million for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. Cash and cash equivalents Cash and cash equivalents consist of cash on hand or highly liquid investments with an original maturity date of three months or less when purchased. Accounts receivable, net In the ordinary course of business, we extend credit to qualified dealers and distributors, generally on a non-collateralized basis. The Company maintains as allowance for doubtful accounts which is based on management’s assessments of the amount which may become uncollectible in the future and is determined through consideration of our write-off history, specific identification of uncollectible accounts based in part on the customer’s past due balance (based on contractual terms), and consideration of prevailing economic and industry conditions. Uncollectible accounts are written off after repeated attempts to collect from the customer have been unsuccessful. January 2, January 3, (in thousands) Accounts receivable $ 32,106 $ 25,680 Less: Allowance for doubtful accounts (323 ) (306 ) $ 31,783 $ 25,374 Self-insurance reserves We are primarily self-insured for employee health benefits and for years prior to 2010 for workers’ compensation claims. Provisions for losses under these programs are recorded based on the Company’s estimates of the aggregate liabilities for the claims incurred. Accruals for healthcare claims and workers’ compensation are included in accrued liabilities in the accompanying consolidated balance sheets. Warranty expense We have warranty obligations with respect to most of our manufactured products. Warranty periods, which vary by product components, generally range from 1 to 10 years, although the warranty period for a limited number of specifically identified components in certain applications is a lifetime. However, the majority of the products sold have warranties on components which range from 1 to 3 years. The Company has recorded a reserve for estimated warranty and related costs, based on historical experience and periodically adjusts these provisions to reflect actual experience. Expected future obligations are discounted to a current value using a risk-free rate for obligations with similar maturities. During 2015, we recorded warranty expense at an average rate of 2.12% of sales. This rate is higher than the average rate of 1.80% of sales accrued in fiscal year 2014, due to an increase in service claims experienced in 2015. We assess the adequacy of our warranty accrual on a quarterly, and yearly basis, and adjust the previous amounts recorded, if necessary, to reflect the change in estimate of the future costs of claims yet to be serviced. The following provides information with respect to our warranty accrual. Accrued Warranty Beginning Acquired Charged to Adjustments Settlements End of (in thousands) Year ended January 2, 2016 $ 3,302 $ — $ 8,256 $ 332 $ (7,653 ) $ 4,237 Year ended January 3, 2015 $ 2,666 $ 239 $ 5,492 $ 473 $ (5,568 ) $ 3,302 Year ended December 28, 2013 $ 3,858 $ — $ 2,992 $ (419 ) $ (3,765 ) $ 2,666 The accrual for warranty is included in accrued liabilities and other liabilities, depending on estimated settlement date, in the consolidated balance sheets as of January 2, 2016, and January 3, 2015. The portion of warranty expense related to the issuance of product of $4.8 million, $3.1 million and $0.4 million is included in cost of sales on the consolidated statements of operations for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. The portion related to servicing warranty claims including costs of the service department personnel is included in selling, general and administrative expenses on the consolidated statements of operations, and is $3.8 million, $2.9 million and $2.2 million, respectively, for the years ended January 2, 2016, January 3, 2015, and December 28, 2013. Inventories Inventories consist principally of raw materials purchased for the manufacture of our products. We have limited finished goods inventory as all products are custom, made-to-order products. 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 (net realizable value). The reserve for obsolescence is based on management’s assessment of the amount of inventory that may become obsolete in the future and is determined through company history, specific identification and consideration of prevailing economic and industry conditions. Inventories consist of the following: January 2, January 3, (in thousands) Raw materials $ 18,609 $ 16,674 Work in progress 1,246 791 Finished goods 3,198 2,505 $ 23,053 $ 19,970 Property, plant and equipment Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the lease term or their estimated useful life. Depreciable assets are assigned estimated lives as follows: Building and improvements 5 to 40 years Leasehold improvements Lease term or estimated useful life Furniture and equipment 3 to 10 years Vehicles 5 to 10 years Computer software 3 years Maintenance and repair expenditures are charged to expense as incurred. Long-lived assets We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of long-lived assets to future undiscounted net cash flows expected to be generated . Computer software We capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and it is probable that computer software being developed will be completed and placed in service. Capitalized costs include: (i) external direct costs of materials and services consumed in developing or obtaining computer software, (ii) payroll and other related costs for employees who are directly associated with and who devote time to the software project, and (iii) interest costs incurred, when material, while developing internal-use software. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Capitalized software as of January 2, 2016, and January 3, 2015, was $16.3 million and $14.0 million, respectively. Accumulated depreciation of capitalized software was $14.5 million and $13.4 million as of January 2, 2016, and January 3, 2015, respectively. Amortization expense for capitalized software was $1.1 million, $0.5 million, and $0.8 million for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. We review the carrying value of capitalized software and development costs for impairment in accordance with our policy pertaining to the impairment of long-lived assets. Goodwill Goodwill represents the excess of the consideration paid in a business combination over the fair value of the identifiable net assets acquired. We test goodwill for impairment at reporting unit level at least annually or whenever events or circumstances indicate that the carrying value of goodwill may not be recoverable from future cash flows. Our annual test for impairment is done on the first day of our fiscal fourth quarter. We have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If we elect to bypass the qualitative assessment or if we determine, based on qualitative factors, that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, a two-step quantitative test is required. In Step 1, we compare the fair value of our reporting unit with its net carrying value, including goodwill. If the net carrying value of our reporting unit exceeds its fair value, we then perform Step 2 of the impairment test to measure the amount of impairment loss, if any. In Step 2, we allocate our reporting unit’s fair value to all of its assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill (implied fair value of goodwill). If the carrying amount of our reporting unit’s goodwill exceeds the implied fair value of that goodwill, we recognize an impairment loss in an amount equal to that excess up to the carrying value of goodwill. In performing the two-step quantitative assessment, fair value of the reporting unit is based on discounted cash flows, market multiples, and/or appraised values, as appropriate. (See Note 6). Significant judgments and estimates are used in the determination of our reporting unit’s fair value. Discounted cash flow analyses utilize sensitive estimates, including projections of revenues and operating costs considering historical and anticipated future results, general economic and market conditions, discount rates, as well as the impact of planned business or operational strategies. Deterioration in economic or market conditions, as well as increased costs arising from the effects of regulatory or legislative changes may result in declines in our reporting unit’s performance beyond current expectations. Declines in our reporting unit’s performance, increases in equity capital requirements, or increases in the estimated cost of debt or equity, could cause the estimated fair value of our reporting unit or its associated goodwill to decline, which could result in an impairment charge to earnings in a future period related to some portion of the associated goodwill. Tradenames The Company has indefinite-lived intangible assets in the form of tradenames. The impairment evaluation of the carrying amount of our tradenames is conducted annually, or more frequently, if events or changes in circumstances indicate that they might be impaired. We have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If we elect to bypass the qualitative assessment or if we determine, based on qualitative factors, that it is more likely than not that the fair value of our tradenames is less than the carrying amount, an evaluation is performed by comparing their carrying amount to their estimated fair values. If the estimated fair value is less than the carrying amount of the tradename, then an impairment charge is recorded to reduce the carrying value to its estimated fair value. The estimated fair value is determined using the relief from royalty method that is based upon the discounted projected cost savings (value) attributable to ownership of our tradenames, our only indefinite lived intangible assets. In estimating fair value, the method we use requires us to make assumptions, the most material of which are net sales projections attributable to products sold with these trade names, the anticipated royalty rate we would pay if the trade names were not owned (as a percent of net sales), and a weighted average discount rate. These assumptions are subject to change based on changes in the markets in which these products are sold, which impact our projections of future net sales and the assumed royalty rate. Factors affecting the weighted average discount rate include assumed debt to equity ratios, risk-free interest rates and equity returns, each for market participants in our industry. Negative impacts on any of the assumptions could cause the estimated fair value of our tradenames to decline, which could result in an impairment charge to earnings in a future period related to some portion of the associated tradename. Derivative financial instruments We utilize certain derivative instruments, from time to time, including forward contracts and interest rate swaps and caps to manage variability in cash flow associated with commodity market price risk exposure in the aluminum market and interest rates. We do not enter into derivatives for speculative purposes. As of January 2, 2016, we did not have any open forward contracts for the purchase of aluminum. The net liability position of $491 thousand on January 3, 2015 is included in accrued liabilities in the accompanying consolidated balance sheet as it related to open contracts with scheduled prompt dates in 2015. On September 16, 2013, we entered into two interest rate caps and one interest rate swap. At January 2, 2016, we had no interest rate caps or swaps. At January 3, 2015, only one cap remained, the fair value of which was in an asset position of $2 thousand. Additional information with regard to derivative instruments is contained in Note 8. Concentrations of credit risk Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash and cash equivalents and trade accounts receivable. Accounts receivable are due primarily from companies in the construction industry located in Florida and the eastern half of the United States. Credit is extended based on an evaluation of the customer’s financial condition and credit history, and generally collateral is not required. The Company maintains an allowance for potential credit losses on trade receivables. We maintain our cash with several financial institutions. The balance exceeds federally insured limits. At January 2, 2016, and January 3, 2015, such balance exceeded the insured limit by $61.0 million and $41.7 million, respectively. Comprehensive income The Company reports comprehensive income, defined as the total of net income (loss) and all other non-owner changes in equity, and the components thereof, in its consolidated statements of comprehensive income. The components of comprehensive gains and losses on cash flow hedges, to the extent effective. Reclassification adjustments reflecting such gains and losses are recorded as income in the same period as the hedged items affect earnings. Additional information with regard to accounting policies associated with derivative instruments is contained in Note 9. Stock compensation We use a fair-value based approach for measuring stock-based compensation and record compensation expense over an award’s vesting period based on the award’s fair value at the date of grant. Our Company’s awards vest based on service conditions and compensation expense is recognized on a straight-line basis for each separately vesting portion of an award. Stock-based compensation expense is recognized only for those awards that are ultimately expected to vest, and we have applied an estimated forfeiture rate to unvested awards for the purpose of calculating compensation cost. These estimates will be revised in future periods if actual forfeitures differ from the estimates. Changes in forfeiture estimates impact compensation cost in the period in which the change in estimate occurs. We recorded compensation expense for stock based awards of $1.8 million before tax, or $0.04 per diluted share after tax-effect, $1.2 million before tax, or $0.02 per diluted share after tax-effect and $1.0 million before income tax, or $0.01 per diluted share after tax-effect, in the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. Income and Sales Taxes We account for income taxes utilizing the liability method. Deferred income taxes are recorded to reflect consequences on future years of differences between financial reporting and the tax basis of assets and liabilities measured using the enacted statutory tax rates and tax laws applicable to the periods in which differences are expected to affect taxable earnings. We have no liability for unrecognized tax benefits. However, should we accrue for such liabilities, when and if they arise in the future, we will recognize interest and penalties associated with uncertain tax positions as part of our income tax provision. Sales taxes collected from customers have been recorded on a net basis. Net income per common share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of common stock equivalents using the treasury stock method. We follow the “two class” method of accounting for earnings per share due to the fact that our unvested restricted stock awards are participating securities. Our weighted average shares outstanding excludes underlying options of less than 0.1 million and 0.1 million for the years ended January 2, 2016, and January 3, 2015, respectively, because their effects were anti-dilutive. There were no anti-dilutive options outstanding for the year ended December 28, 2013. The table below presents the calculation of basic and diluted earnings per share, including a reconciliation of weighted average common shares: Year Ended (in thousands, except per share amounts) January 2, January 3, December 28, Numerator: Net income $ 23,552 $ 16,405 $ 26,819 Denominator: Weighted-average common shares - Basic 48,272 47,376 48,881 Add: Dilutive effect of stock compensation plans 2,096 2,401 3,330 Weighted-average common shares - Diluted 50,368 49,777 52,211 Net income per common share: Basic $ 0.49 $ 0.35 $ 0.55 Diluted $ 0.47 $ 0.33 $ 0.51 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). ASU 2015-17 requires that all deferred tax assets and liabilities be classified as non-current. ASU 2015-17 also discontinues allocation of valuation allowances between current and noncurrent tax assets. ASU 2015-17 is effective for annual periods beginning after December 15, 2016 and interim periods thereafter. Early adoption is permitted. The Company has elected to retrospectively early adopt ASU 2015-17. The effect of this change did not have a material impact on the Company’s consolidated financial condition. The effects on the Company’s consolidated balance sheet as of January 3, 2015 relating to the reclassification of current deferred tax assets to non-current deferred tax liabilities is as follows (in thousands): Previously As Deferred income taxes (current assets) $ 5,160 $ — Total current assets $ 99,437 $ 94,277 Total assets $ 311,749 $ 306,589 Deferred income taxes (non-current liabilities) $ 25,956 $ 20,796 Total liabilities $ 237,773 $ 232,613 Total liabilities and shareholders’ equity $ 311,749 $ 306,589 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. Accounting Pronouncements Recently Issued In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, “Leases (Topic 842)”. This guidance supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments”. This guidance eliminates the requirement to restate prior period financial statements for measurement period adjustments in a business combination. This guidance requires that the cumulative impact of a measurement-period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. This ASU was effective for the Company on January 3, 2016. We do not believe the adoption of this ASU will have a material impact on our financial statements. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330) – Simplifying the Measurement of Inventory”. This guidance changes the subsequent measurement of inventory, excluding inventory accounted for under LIFO or the retail inventory method, to be at lower of cost and net realizable value. Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. Under this ASU, an entity should measure inventory within its scope at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective in financial statements issued for fiscal years beginning after December 15, 2016, with early application at the beginning of interim or annual periods permitted, and is required to be adopted prospectively. We do not believe the adoption of this ASU will have a material impact on our financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” which will require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. This ASU is effective in financial statements issued for fiscal years beginning after December 15, 2015, with early adoption permitted, and is required to be adopted retrospectively. In August 2015, the FASB issued ASU No. 2015-15, “Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting,” which amends Subtopic 835-30 to add SEC paragraphs pursuant to the SEC Staff Announcement at the June 18, 2015 Emerging Issues Task Force (EITF) meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements, regarding the SECs views of the classification of debt issuance costs relating to line-of-credit arrangements as deferred assets when no borrowings exist under the arrangement. We do not believe the adoptions of either of these ASU’s relating to Subtopic 835-30 will have a material impact on our financial statements. In June 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force). The new standard requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. The update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The amendments in this ASU will be effective for us beginning the first interim period of our 2016 fiscal year and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In April 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which states the core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The provisions of the guidance were to be effective for us beginning in first quarter of 2017. However, in August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date,” which delayed the effective date of ASU 2014-09 by one year. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. |
Acquisition of CGI Windows and
Acquisition of CGI Windows and Doors | 12 Months Ended |
Jan. 02, 2016 | |
Business Combinations [Abstract] | |
Acquisition of CGI Windows and Doors | 4. Acquisition of CGI Windows and Doors On September 22, 2014, we completed the acquisition of CGI. The transaction, valued at $110.4 million, is consistent with our plan to grow strategically while contributing to earnings growth through targeted acquisitions of complementary specialty products. This acquisition was financed with borrowings under the 2014 Credit Agreement. The final allocation of fair value of assets acquired and liabilities assumed are as follows: Final Accounts receivable $ 4,156 Inventories 3,229 Prepaid expenses 303 Property, plant and equipment 1,709 Intangible assets 45,300 Other assets 65 Goodwill 65,635 Deferred income taxes (5,472 ) Accounts payable and accrued liabilities (4,136 ) Other liabilities (351 ) Purchase price $ 110,438 The purchase price paid was allocated to the net assets acquired based on their fair value on September 22, 2014, in accordance with ASC 805 “Business Combinations”. The allocation of the purchase price is considered final based on events and circumstances that existed on the acquisition date. During the measurement period, the Company made adjustments to increase the acquired deferred tax assets by approximately $0.9 million, with a corresponding decrease to goodwill. No other adjustments were made during the measurement period. The fair value of working capital related items, such as accounts receivable, inventories, prepaids, and accounts payable and accrued liabilities, approximated their book values at the date of acquisition. Valuations of the intangible assets (See Note 6) were valued using income and royalty relief approaches based on projections provided by management, which we consider to be Level 3 inputs. Acquisition costs totaling $1.7 million are included in selling, general, and administrative expenses on the consolidated statement of operations for the year ended January 3, 2015, and relate to legal expenses, diligence, and accounting services. Net sales and net income included in the consolidated statement of operations for the year ended January 3, 2015, from CGI for the period from the Closing Date to January 3, 2015, were $13.3 million and $148 thousand, respectively. The remaining consideration, after identified intangible assets and the net assets and liabilities recorded at fair value, was determined to be $65.6 million, of which $9.3 million is expected to be deductible for tax purposes. Goodwill represents the increased value of the combined entity through additional sales channel opportunities as well as operational efficiencies. The following unaudited pro forma financial information assumes the acquisition had occurred at the beginning of the earliest period presented. 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 estimated 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. Year Ended January 3, December 28, Pro Forma Results (unaudited) 2015 2013 (in thousands, except per share amounts) Net sales $ 337,369 $ 272,132 Net income $ 15,209 $ 24,985 Net income per common share: Basic $ 0.32 $ 0.51 Diluted $ 0.31 $ 0.48 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jan. 02, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 5. Property, Plant and Equipment The following table presents the composition of property, plant and equipment as of: January 2, January 3, 2016 2015 (in thousands) Land $ 6,298 $ 6,298 Buildings and improvements 46,229 45,656 Machinery and equipment 63,290 52,838 Vehicles 9,478 8,048 Software 16,278 13,984 Construction in progress 8,317 5,544 149,890 132,368 Less: Accumulated depreciation (78,387 ) (71,470 ) $ 71,503 $ 60,898 In the first quarter of 2013, we sold our Salisbury, North Carolina facility on which we recognized a gain of $2.2 million. |
Goodwill, Trade Names and Other
Goodwill, Trade Names and Other Intangible Assets | 12 Months Ended |
Jan. 02, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Trade Names and Other Intangible Assets | 6. Goodwill, Trade Names and Other Intangible Assets Trade names and other intangible assets are as follows as of: Initial January 2, January 3, Useful Life 2016 2015 (in years) (in thousands) Goodwill $ 65,635 $ 66,580 indefinite 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 (60,130 ) (56,717 ) Subtotal 21,870 25,283 Other intangible assets, net $ 79,311 $ 82,724 Goodwill at January 3, 2015 $ 66,580 Adjustment relating to additional deferred tax assets acquired (945 ) Goodwill at January 2, 2016 $ 65,635 Goodwill We completed a qualitative assessment of goodwill impairment on the first day of our fourth quarter of 2015. This qualitative assessment included an evaluation of relevant events and circumstances that existed at the date of our assessment. Those events and circumstances included conditions specific to the CGI reporting unit, such as the inputs that would be used to calculate reporting unit enterprise value, as well as events and circumstances related to the CGI reporting unit, such as the industry in which CGI operates, its competitive environment, the availability and costs of its raw materials and labor, the financial performance of CGI, and factors related to the markets in which CGI operates. We also considered that no new impairment indicators were identified since the date of our prior qualitative assessment. Based on that assessment, we concluded that it is more likely than not that the fair value of CGI exceeded its carrying value on the first day of our fourth quarter. Indefinite Lived Intangible Assets We completed a qualitative assessment of our indefinite-lived intangible assets (tradenames) on the first day of our fourth quarter of 2015. This qualitative assessment included an evaluation of relevant events and circumstances that existed at the date of our assessment. Those events and circumstances included conditions specific to our tradenames, such as the inputs that would be used to calculate their fair values, as well as events and circumstances related to the tradenames, such as the industry in which we use the tradenames, our competitive environment, the availability and costs of its raw materials and labor, the financial performance of our Company, and factors related to the markets in which our Company operates. We also considered that no new impairment indicators were identified since the date of our prior assessments, which was a quantitative assessment for the PGT tradenames and a qualitative assessment for the CGI tradename. Based on that assessment, we concluded that it is more likely than not that our trade names are not impaired. Amortizable Intangible Assets We test amortizable intangible assets for impairment when indicators of impairment exist. No impairment testing was performed during the years ended January 2, 2016, January 3, 2015, and December 28, 2013, as we determined that there were no impairment indicators at any time during that three-year period. Estimated amortization of our customer relationships, developed technology and non-compete agreement intangible assets is as follows for future fiscal year: (in thousands) 2016 $ 3,379 2017 3,161 2018 3,161 2019 3,161 2020 3,222 Thereafter 5,786 Total $ 21,870 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Jan. 02, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consisted of the following: January 2, January 3, (in thousands) Accrued payroll and benefits $ 4,326 $ 4,607 Accrued warranty 3,484 2,658 Unearned revenue 1,334 1,405 Accrued health claims insurance payable 827 908 Accrued interest 133 874 Aluminum forward contracts — 491 Other 1,294 981 $ 11,398 $ 11,924 Other accrued liabilities are comprised primarily of state sales taxes and customer rebates. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 02, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 8. Long-Term Debt Long-term debt consists of the following: January 2, January 3, (in thousands) Term loan payable with a payment of $0.5 million due quarterly. A lump sum payment of $186.0 million is due on September 22, 2021. Interest is payable quarterly at LIBOR or the prime rateplus an applicable margin. At January 2, 2016, and January 3, 2015, the average rate was 1.00% plus a margin of 4.25% $ 197,500 $ 199,500 Debt discount (1) (5,032 ) (5,746 ) 192,468 193,754 Less current portion of long-term debt (1,966 ) (1,962 ) Total $ 190,502 $ 191,792 (1) Debt discount – represents fees paid to the lender at time the debt was issued, and is accounted for as a reduction in the debt proceeds and is amortized over the life of the debt instrument. 2014 Credit Agreement On September 22, 2014, we entered into 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. The 2014 Credit Agreement establishes new senior secured credit facilities in an aggregate amount of $235.0 million, consisting of a $200.0 million Term B term loan facility maturing in seven years that will amortize on a basis of 1% annually during the seven-year term, and a $35.0 million revolving credit facility maturing in five years that includes a swing line facility and a letter of credit facility. Our obligations under the 2014 Credit Agreement are secured by substantially all of our assets as well as our subsidiaries’ assets. As of January 2, 2016, there were $0.4 million of letters of credit outstanding and $34.6 million available on the revolver. Interest on all loans under the 2014 Credit Agreement is payable either quarterly or at the expiration of any LIBOR interest period applicable thereto. Borrowings under the term loans and the revolving credit facility accrue interest at a rate equal to, at our option, LIBOR (with a floor of 100 basis points in respect of the term loan), or a base rate (with a floor of 200 basis points in respect of the term loan) plus an applicable margin. The applicable margin is 425 basis points in the case of LIBOR and 325 basis points in the case of the base rate. We will pay quarterly fees on the unused portion of the revolving credit facility equal to 50 basis points per annum as well as a quarterly letter of credit fee at 425 basis points per annum on the face amount of any outstanding letters of credit. 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 will be tested quarterly based on the last four fiscal quarters and is set at levels as described in the 2014 Credit Agreement. As of January 2, 2016, 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 immediately due and payable. In connection with entering into the 2014 Credit Agreement, on September 22, 2014, we terminated our prior credit agreement, dated as of May 28, 2013, among PGT Industries, Inc., as the borrower, the Company, as guarantor, the lenders from time to time party thereto and SunTrust Bank, as administrative agent and collateral agent (the “2013 Credit Agreement”). Proceeds from the term loan facility under the 2014 Credit Agreement were used to repay amounts outstanding under the 2013 Credit Agreement and the acquisition of CGI, and certain fees and expenses. The face value of the 2014 Credit Agreement at the time of issuance was $200 million of which $0.5 million was repaid as a scheduled debt repayment in the fourth quarter of 2014. As of January 2, 2016, the face value of debt outstanding under the 2014 Credit Agreement was $197.5 million. There was a 1% discount, or $2.0 million, upon issuance of the debt under the 2014 Credit Agreement which we recorded as debt discount. The Company incurred issuance costs of $5.5 million, of which $3.8 million was paid directly to the lenders and classified as debt discount. The remainder of $1.7 million was reported as deferred financing costs in current assets and other assets. At the time of the refinancing, we had $1.5 million recorded as discount presented net within the current and long-term portions of debt and $1.7 million recorded as deferred financing fees presented in current and other assets relating to the 2013 Credit Agreement. Of these debt issuance costs, $0.2 million of costs recorded as discount and $0.4 million of costs recorded as deferred financing fees were not written-off as one of the lenders in the 2014 Credit Agreement was also a lender in the 2013 Credit Agreement and for which we treated the 2014 refinancing as a modification. The remaining debt issuance costs relating to the 2013 Credit Agreement of $2.6 million were written-off as debt extinguishment costs, on the consolidated statement of operations for the year ended January 3, 2015. At January 2, 2016, we had debt issuance costs of $5.0 million recorded as discount presented net within the current and long-term portions of debt and $1.7 million recorded as deferred financing fees presented in current and other assets relating to the 2014 Credit Agreement. These debt issuance costs are being amortized to interest expense, net, under the effective interest method on the consolidated statements of operations over the term of the 2014 Credit Agreement. The contractual future maturities of long-term debt outstanding as of January 2, 2016, are as follows (excluding unamortized debt discount and deferred financing fees): (in thousands) 2016 $ 2,000 2017 2,000 2018 2,000 2019 2,000 2020 2,000 Thereafter 187,500 Total $ 197,500 See Note 20 for a discussion of events subsequent to January 2, 2016, regarding the level of outstanding indebtedness of the Company. Interest expense, net consisted of the following: Year Ended January 2, January 3, December 28, (in thousands) Long-term debt $ 10,562 $ 4,841 $ 2,295 Debt fees 269 240 235 Amortization of deferred financing costs and debt discount 1,014 945 1,021 Interest income (70 ) (37 ) (25 ) Interest expense 11,775 5,989 3,526 Capitalized interest (70 ) (29 ) (6 ) Interest expense, net $ 11,705 $ 5,960 $ 3,520 Estimated amortization expense of debt issuance costs is as follows for future fiscal years: Classified As (in thousands) Deferred Original Total 2016 $ 319 $ 781 $ 1,100 2017 329 820 1,149 2018 339 858 1,197 2019 313 899 1,212 2020 231 963 1,194 Thereafter 170 711 881 Total $ 1,701 $ 5,032 $ 6,733 |
Derivatives
Derivatives | 12 Months Ended |
Jan. 02, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 9. Derivatives Aluminum Forward 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 initially designated as cash flow hedges since they are believed to be highly effective in offsetting changes in the cash flows attributable to forecasted purchases of aluminum. Guidance under the Financial Instruments We net cash collateral from payments of margin calls on deposit with our commodities broker against the liability position of open contracts for the purchase of aluminum on a first-in, first-out basis. For consolidated statement of cash flows presentation, we present net cash receipts from and payments to the margin account as investing activities. 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 January 3, 2015, the fair value of our aluminum forward contracts was in a net liability position of approximately $491 thousand. We had 23 outstanding forward contracts for the purchase of 7.9 million pounds of aluminum at an average price of $0.90 per pound with maturity dates of between less than one month and 12 months through December 2015. We assessed our risk of non-performance of the Company on these contracts and recorded an immaterial adjustment to fair value as of January 3, 2015. The change in value of these aluminum forward contracts during 2015 is recognized in other expense, net, on the consolidated statement of operations for the year ended January 2, 2016, and totaled $0.4 million. Although it is our intent to have our aluminum hedges qualify as highly effective for reporting purposes, for the year ended January 3, 2015, only 17 of our outstanding contracts during our first quarter ended March 29, 2014, qualified as effective. Since the end of our first quarter of 2014, all 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 consolidated statement of operations for the year ended January 3, 2015, and totaled $0.2 million. Interest Rate Contracts On September 16, 2013, we entered into two interest rate caps and one interest rate swap. The first was a one year interest rate cap agreement with a notional amount of $40.0 million that was designated as a cash flow hedge that protected the variable rate debt from an increase in the floating one month LIBOR rate of greater than 0.50%. This interest rate cap agreement expired during our 2014 third quarter. The second is a two year interest rate cap agreement with a notional amount of $20.0 million that was designated as a cash flow hedge that protects the variable rate debt from an increase in the floating one month LIBOR rate of greater than 0.50%. As a result of the termination of the 2013 Credit Agreement, effective on September 22, 2014, the second cap was de-designated as a cash flow hedge and was and will continue to be marked-to-market. The swap was a forward starting three year six months interest rate swap agreement with a notional amount of $40.0 million that effectively converted a portion of the floating rate debt to a fixed rate of 2.15%. As a result of the termination of the 2013 Credit Agreement, effective on September 22, 2014, the swap was de-designated as a cash flow hedge and, during the fourth quarter of 2014, we terminated this interest rate swap with a payment of $1.4 million. The fair value of our aluminum hedges and interest rate cap are classified in the accompanying consolidated balance sheets as follows (in thousands): January 3, Derivatives in a net asset (liability) position Balance Sheet Location Hedging instruments: Aluminum forward contracts Accrued liabilities $ (491 ) Interest rate cap Other current assets 2 Total hedging instruments $ (489 ) The ending accumulated balance for the aluminum forward contracts included in accumulated other comprehensive losses, net of tax, was $77 thousand as of January 3, 2015. The ending accumulated balance for the aluminum forward contracts and interest rate swaps included in accumulated other comprehensive losses, net of tax, was $0.7 million as of December 28, 2013. The impact of the offsetting derivative instruments are depicted below (in thousands): As of January 3, 2015 Gross Amounts not Offset Gross Net Amounts of Gross Amounts of Cash Recognized Amounts Recognized Financial Collateral Net Assets Offset Assets Instruments Received Amount Interest rate caps $ 2 $ — $ 2 $ — $ — $ 2 Gross Amounts not Offset Gross Net Amounts of Gross Amounts of Cash Recognized Amounts Recognized Financial Collateral Net (Liabilities) Offset (Liabilities) Instruments Pledged Amount Aluminum forward contracts $ (491 ) $ — $ (491 ) $ — $ — $ (491 ) The following represents the gains (losses) on derivative financial instruments for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, and their classifications within the accompanying consolidated financial statements (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in OCI on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Loss Reclassified from Year Ended Year Ended January 2, January 3, December 28, January 2, January 3, December 28, 2016 2015 2013 2016 2015 2013 Aluminum contracts $ 126 $ 346 $ (761 ) Cost of sales $ — $ (7 ) $ (145 ) Interest rate swap $ — $ (558 ) $ (630 ) Interest expense, net $ — $ — $ — Interest rate swap $ — $ — $ — Other expense, net $ — $ (1,188 ) $ — Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) Amount of Gain or (Loss) Recognized in Income on Derivatives Year Ended January 2, January 3, December 28, 2016 2015 2013 Aluminum contracts Other expense, net $ (388 ) $ (221 ) $ (358 ) Interest rate swap Other expense, net $ — $ (314 ) $ — Interest rate cap Other expense, net $ — $ (27 ) $ — |
Fair Value
Fair Value | 12 Months Ended |
Jan. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 10. 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 earnings. 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 we make the election on an instrument-by-instrument basis as they are acquired or incurred. During 2015, 2014, or 2013, we did not make any transfers between Level 1 and Level 2 financial assets. We conduct reviews on a quarterly basis to verify pricing, assess liquidity, and determine if significant inputs have changed that would impact the fair value hierarchy disclosure. Items Measured at Fair Value on a Recurring Basis The following assets and liabilities are measured in the consolidated financial statements 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) January 3, Quoted Significant Significant Description 2015 (Level 1) (Level 2) (Level 3) (in thousands) Aluminum forward contracts $ (491 ) $ — $ (491 ) $ — Interest rate caps 2 — 2 — $ (489 ) $ — $ (489 ) $ — The following is a description of the methods and assumptions used to estimate the fair values of the Company’s 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, the expiration date, the settlement date, and notional quantities, as the one we hold, is used for determining the fair value. Fair Value of Financial Instruments Our financial instruments, not including derivative financial instruments discussed in Note 9, include cash, accounts and notes receivable, and accounts payable, and accrued liabilities whose carrying amounts approximate their fair values due to their short-term nature. Our financial instruments also include long-term debt. The fair value of our long-term debt is based on debt with similar terms and characteristics and was approximately $192.5 million as of January 2, 2016, and $193.8 million as of January 3, 2015, both of which approximate carrying value as of those dates. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes We consider all income sources, including other comprehensive income, in determining the amount of tax benefit (expense) allocated to continuing operations. The components of income tax expense (benefit) are as follows (in thousands): Year Ended January 2, January 3, December 28, 2016 2015 2013 Current: Federal $ 8,861 $ 6,346 $ 86 State 443 — — 9,304 6,346 86 Deferred: Federal 4,893 2,379 (2,265 ) State 1,100 950 (1,195 ) 5,993 3,329 (3,460 ) Income tax expense (benefit) $ 15,297 $ 9,675 $ (3,374 ) The aggregate amount of income taxes included in the consolidated statements of operations and consolidated statements of shareholders’ equity are as follows (in thousands): Year Ended January 2, January 3, December 28, 2016 2015 2013 Consolidated statements of income: Income tax expense (benefit) relating to continuing operations $ 15,297 $ 9,675 $ (3,374 ) Consolidated statements of shareholders’ equity: Reversal of intraperiod tax allocation $ (1,595 ) $ — $ — Income tax expense (benefit) relating to derivative financial instruments $ 50 $ 431 $ (437 ) Income tax benefit relating to share-based compensation $ (3,840 ) $ (6,064 ) $ (396 ) The reversal of intraperiod income tax allocation of $1.6 million in the year ended January 2, 2016 represents income tax expense previously classified within accumulated other comprehensive losses, relating to the intraperiod income taxes on our effective aluminum hedges, which we reversed in the second quarter of 2015 as the result of the culmination of our remaining cash flow hedges. A reconciliation of the statutory federal income tax rate to our effective rate is provided below: Year Ended January 2, January 3, December 28, 2016 2015 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 3.8 % 3.8 % 3.8 % Reversal of intraperiod tax allocation 4.1 % — — Domestic manufacturing deduction (2.2 )% (2.1 )% — Florida jobs credit (2.0 )% — — Non-deductible acquisition costs — 0.6 % — Non-deductible secondary offering related expenses — — 1.8 % Change in valuation allowance on deferred tax assets 0.3 % — (55.1 )% Non-deductible expenses 0.2 % — 0.2 % Other 0.2 % (0.2 )% (0.1 )% 39.4 % 37.1 % (14.4 )% Our income tax benefit was $3.4 million for the year ended December 28, 2013, as we released our valuation allowances on deferred tax assets. We released our valuation allowance as we were no longer in a cumulative loss position and it was more likely than not that our deferred tax assets would be realized. Excluding the effect of this item, our 2013 effective tax rate would have been 40.7%. In connection with the acquisition of CGI, we recorded a net deferred tax liability of $5.5 million during the year ended January 3, 2015, as follows (in thousands): Deferred tax assets (liabilities) relate to: Current Amortizable intangible assets $ (6,249 ) Other indefinitie lived intangible assets (7,366 ) Property, plant and equipment (242 ) Net operating loss carryforwards 7,885 Other assets, net 500 Net deferred tax liability $ (5,472 ) Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company early adopted ASU 2015-17 regarding balance sheet classification of deferred taxes. See note 3 for additional information. Significant components of our net deferred tax liability are as follows: January 2, January 3, (in thousands) Deferred tax assets: State and federal net operating loss carryforwards $ 4,735 $ 6,973 Goodwill — 1,941 Compensation expense 2,735 2,773 Accrued warranty 1,643 1,280 AMT tax credits — 574 Obsolete inventory and UNICAP adjustment 607 473 Derivative financial instruments — 241 Other deferrals and accruals, net 682 66 Allowance for doubtful accounts 152 107 Transaction costs 261 — Total deferred tax assets 10,815 14,428 Deferred tax liabilities: Other indefinite lived intangible assets (22,270 ) (22,270 ) Property, plant and equipment (9,202 ) (7,426 ) Amortizable intangible assets (4,361 ) (5,058 ) Goodwill (619 ) — Deferred financing costs (131 ) (152 ) Prepaid expenses (126 ) (318 ) Total deferred tax liabilities (36,709 ) (35,224 ) Total deferred tax liabilities, net $ (25,894 ) $ (20,796 ) Regarding tax goodwill, the amount of goodwill deductible for tax purposes was $63.8 million at the time of the 2004 PGT acquisition, of which $5.4 million was unamortized as of January 3, 2015. This amount was fully amortized in the year ended January 2, 2016. We also acquired goodwill deductible for tax purposes in the CGI acquisition as the transaction was treated as an acquisition of stock for tax purposes. At the date of the acquisition, the amount of goodwill deductible for tax purposes from the CGI acquisition was $9.3 million. At the time of the acquisition, this goodwill is the same amount for both book and tax purposes and, therefore, no deferred tax asset or liability is recognized. As we amortize this goodwill for tax purposes over its remaining life, which was approximately 7.4 years at the time of the acquisition, we will recognize a deferred tax liability. The unamortized amount of this goodwill was $7.7 million and $8.9 million at January 2, 2016, and January 3, 2015, respectively. Almost entirely composed of the net operating loss carryforwards acquired in the CGI acquisition, we estimate that we have $3.8 million of tax affected federal net operating loss carryforwards and $0.9 million of state operating loss carryforwards, as of January 2, 2016, expiring at various dates through 2027. Use of the net operating loss carryforwards acquired in the CGI acquisition is subject to annual limitations for federal tax purposes. However, we believe they will be fully utilized prior to expiration. As the result of tax deductible compensation expense in excess of stock-based compensation expense recorded for book purposes relating to the exercise of stock options, concurrent with the full utilization of all of PGT’s regular net operating loss carry-forwards during 2013, for the years ended January 2, 2016, January 2, 2015, and December 28, 2013, we recognized $3.8 million, $6.1 million, and $0.4 million, respectively, of excess tax benefits (ETBs) in additional paid-in capital. Our policy with regard to providing for income tax expense when ETBs are utilized is to follow the “with-and-without” approach as described in ASC 740-20 and ASC 718 and include in the measurement the indirect effects of the excess tax deduction. At January 2, 2016, we provided for a valuation allowance against net operating losses of nearly $0.2 million we have to carryforward in North Carolina as we concluded it is not more likely than not that we will realize the full benefit of the net operating losses before expiration. For financial reporting purposes, we classified this valuation allowance as a reduction of state and federal net operating loss carryforwards in the above table. We had no valuation allowance on deferred tax assets at January 3, 2015, as management’s assessment of our ability to realize our deferred tax assets is that it is more likely than not that we will generate sufficient future taxable income to realize all of our deferred tax assets. The tax years 2011 to 2014 remain open for examination by the IRS due to net operating losses utilized in those tax years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Leases We lease production equipment, vehicles, computer equipment, storage units and office equipment under operating leases expiring at various times through 2020. Lease expense was $2.3 million, $1.6 million and $1.3 million for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. Future minimum lease commitments for non-cancelable operating leases are as follows at January 2, 2016 (in thousands): 2016 $ 2,116 2017 1,638 2018 253 2019 87 2020 60 Total $ 4,154 Through the terms of certain of our leases, we have the option to purchase the leased equipment for cash in an amount equal to its then fair market value plus all applicable taxes. Purchase Commitments We are obligated to purchase certain raw materials used in the production of our products from certain suppliers pursuant to stocking programs. If these programs were cancelled by us, as of January 2, 2016, we would be required to pay $3.6 million for various materials. During the years ended January 2, 2016, January 3, 2015, and December 28, 2013, we made purchases under these programs totaling $122.0 million, $108.7 million and $88.3 million, respectively. At January 2, 2016, we had $0.4 million in standby letters of credit related to our worker’s compensation insurance coverage, and commitments to purchase equipment of $0.5 million. Legal Proceedings We are 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 on a combined basis, will not have a materially adverse effect on our operations, financial position or cash flows. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 02, 2016 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 13. Employee Benefit Plans We have a 401(k) plan covering substantially all employees 18 years of age or older who have at least three months of service. Employees may contribute up to 100% of their annual compensation subject to Internal Revenue Code maximum limitations. We currently make matching contributions based on our operating results. During the years ended January 2, 2016, January 3, 2015, and December 28, 2013, there was an average matching contribution of up to 3%, in each year made at various times during the year. Company contributions and earnings thereon vest at the rate of 20% per year of service with us when at least 1,000 hours are worked within the Plan year. We recognized expenses of $0.7 million, $1.1 million and $1.2 million for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. |
Related Parties
Related Parties | 12 Months Ended |
Jan. 02, 2016 | |
Related Party Transactions [Abstract] | |
Related Parties | 14. Related Parties In the ordinary course of business, we sell windows to Builders FirstSource, Inc., a company controlled by affiliates of JLL Partners, Inc. One of our directors, Floyd F. Sherman, is the president, chief executive officer, and a director of Builders FirstSource, Inc., and another, Brett Milgrim, is also a director. Total net sales to Builders FirstSource, Inc. were $7.9 million, $6.7 million and $5.1 million for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. As of January 2, 2016, and January 3, 2015, there was $0.7 million and $0.9 million due from Builders FirstSource, Inc. included in accounts receivable in the accompanying consolidated balance sheets. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jan. 02, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | 15. Shareholders’ Equity On October 28, 2015, the Board of Directors authorized and approved a share repurchase program of up to $20 million. Repurchases will be made in open market or privately negotiated transactions, subject to market conditions, applicable legal requirements, our 2016 Credit Agreement, and other relevant factors. We do not intend to repurchase any shares from directors, officers, or other affiliates. The program does not obligate us to acquire any specific number of shares. The timing, manner, price and amount of repurchases will be determined at the Company’s discretion, and the program may be suspended, terminated or modified at any time for any reason. No share repurchases had been consummated under this buyback program as of January 2, 2016. |
Employee Stock Based Compensati
Employee Stock Based Compensation | 12 Months Ended |
Jan. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Based Compensation | 16. Employee Stock Based Compensation 2014 Plan On March 28, 2014, we adopted the 2014 Omnibus Equity Incentive Plan (the “2014 Plan”) whereby equity-based awards may be granted by the Board to eligible non-employee directors, selected officers and other employees, advisors and consultants of ours. On May 7, 2014, our stockholders approved the 2014 Plan. 2014 Omnibus Equity Incentive Plan • total number of shares of common stock available for grant thereunder, 1,500,000, • sets forth the types of awards eligible under the plan, including issuances of options, share appreciation rights, restricted shares, restricted share units, share bonuses, other share-based awards and cash awards, and • set forth 1,500,000 as the maximum number of shares that may be made subject to awards in any calendar year to any “covered employee” (within the meaning of Section 162(m) of the Internal Revenue Code). There were 1,196,506 shares available for grant under the 2014 Plan at January 2, 2016. 2006 Plan On June 5, 2006, we adopted the 2006 Equity Incentive Plan (the “2006 Plan”) whereby equity-based awards may be granted by the Board to eligible non-employee directors, selected officers and other employees, advisors and consultants of ours. On April 6, 2010, our stockholders approved the PGT, Inc. Amended and Restated 2006 Equity Incentive Plan (the “Amended and Restated 2006 Equity Incentive Plan”). There were 541,863 shares available for grant under the 2006 Plan at December 28, 2013. With the adoption of the 2014 Plan effective on March 28, 2014, no further shares will be granted and, therefore, no shares are available under the 2006 Plan at January 3, 2015. New Issuances During 2015, we issued 241,702 shares of restricted stock awards to certain directors, executives and non-executive employees of the Company, all from the 2014 Plan. The restrictions on these awards lapse at various time periods through 2018 and had a weighted average fair value on the dates of the grants of $11.14 based on the NASDAQ market price of the common stock on the close of business on the day before the awards were granted. The final number of shares awarded under the issuance on March 4, 2015, is subject to adjustment based on the performance of the Company for the 2015 fiscal year and will become final upon filing of the Company’s Annual Report on Form 10-K for the year ended January 2, 2016. The performance criteria, as defined in the share awards, provided 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 percentages, ranging from less than 80% to greater than 120%, provide for the awarding of shares ranging from 0% to 150% and only related to half of the initial March 4, 2015, issuance of 178,256 shares, or 89,128 shares. The remaining 89,128 shares from the March 4, 2014, issuance were not subject to adjustment based on any performance or other criteria. The grant date fair value of the March 4, 2014, award was $10.95. During 2014, we issued 20,000 options to one non-executive employee of the Company. These options vest at various time periods through 2019 and have a weighted average exercise price of $11.81 based on the NASDAQ market price of the underlying common stock on the close of business on the day the options were granted and had a weighted average fair value of $5.37. During 2014, we issued 212,393 shares of restricted stock awards to certain directors, executives and non-executive employees of the Company. The restrictions on these awards lapse at various time periods through 2017 and had a weighted average fair value on the dates of the grants of $10.82 based on the NASDAQ market price of the common stock on the close of business on the day before the awards were granted. Of the 212,393 shares of restricted stock issued, 74,555 shares were issued from the 2014 Plan and 137,838 shares were issued from the 2006 Plan. The final number of shares awarded under the issuance on March 4, 2014, from the 2006 Plan was subject to adjustment based on the performance of the Company for the 2014 fiscal year and became final upon filing of the Company’s Annual Report on Form 10-K for the year ended January 3, 2015, on March 19, 2015. The performance criteria, as defined in the share awards, provides for a graded awarding of shares based on the percentage by which the Company met earnings before interest and taxes, as defined, in our 2014 business plan. The percentages, ranging from less than 80% to greater than 120%, provided for the awarding of shares ranging from 0% to 150% and only related to half of the initial March 4, 2014, issuance of 137,838 shares, or 68,919 shares. The remaining 68,919 shares from the March 4, 2014, issuance were not subject to adjustment based on any performance or other criteria. Based on the performance criteria as established in the award, 57.5%, or 39,626 shares were awarded resulting in a decrease of 29,293 in outstanding restricted shares awards. The grant date fair value of the March 4, 2014, award was $11.81. During 2013, we issued 22,581 shares of restricted stock awards to certain board members and non-executive employees of the Company. The restrictions on these awards lapse at various time periods through 2016 and have a weighted average fair value on date of grant of $6.76 based on the NASDAQ market price of the common stock on the close of business on the day the awards were granted. The compensation cost that was charged against income for stock compensation plans was $1.8 million, $1.2 million and $1.0 million, respectively, for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, and is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. We recognized $3.8 million, $6.1 million, and $0.4 million in excess income tax benefits for share-based compensation in the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. We currently expect to satisfy share-based awards with registered shares available to be issued. The fair value of each stock option grant was estimated on the date of grant using a Black-Scholes option-pricing model with the following weighted average assumptions used for grants under the 2006 Plan in the following years: 2015 and 2013: no options granted. 2014: dividend yield of 0%, expected volatility of 51.59%, risk-free interest rate of 1.54%,and expected life of 5 years The expected life of options granted represents the period of time that options granted are expected to be outstanding and was determined based on historical experience. The expected volatility is based on the Company’s common stock. The risk-free rate for periods within the contractual term of the options is based on U.S. Treasury yield for instruments with a maturity equal to the life of the option in effect at the time of grant. Stock Options A summary of the status of our stock options as of January 2, 2016, and changes during the year then ended, is presented below: Number of Weighted Average Exercise Price Weighted Outstanding at January 3, 2015 4,219,665 $ 2.06 Granted — $ — Exercised (1,033,750 ) $ 2.12 Forfeited/Expired (15,601 ) $ 2.01 Outstanding at January 2, 2016 3,170,314 $ 2.04 4.3 Exercisable at January 2, 2016 3,131,314 $ 1.98 4.3 The following table summarizes information about employee stock options outstanding at January 2, 2016, (dollars in thousands, except per share amounts): Exercise Price Remaining Outstanding Outstanding Exercisable Exercisable $0.92 0.1 Years 91,881 $ 962 91,881 $ 962 $1.60-$2.31 4.2 Years 3,046,433 28,601 3,031,433 28,461 $2.59-$3.25 6.4 Years 12,000 98 4,000 33 $11.81 8.2 Years 20,000 — 4,000 — 3,170,314 $ 29,661 3,131,314 $ 29,456 The weighted average fair value of options granted during January 3, 2015 was $5.37. There were no options granted during the year ended December 28, 2013. The aggregate intrinsic value of options outstanding and of options exercisable as of January 3, 2015, was $32.5 million and $24.3 million, respectively. The aggregate intrinsic value of options outstanding and of options exercisable as of December 28, 2013, was $41.8 million and $24.1 million, respectively. The total grant date fair value of options vested during the years ended January 2, 2016, January 3, 2015, and December 28, 2013, was $1.2 million, $1.3 million and $1.4 million, respectively. For the year ended January 2, 2016, we received $2.2 million in proceeds from the exercise of 1,033,750 options for which we recognized $3.8 million in excess tax benefits through additional paid in capital. The aggregate intrinsic value of stock options exercised during the year ended January 2, 2016, was $10.8 million. For the year ended January 3, 2015, we received $1.7 million in proceeds from the exercise of 906,573 options for which we recognized $6.1 million in excess tax benefits through additional paid in capital. The aggregate intrinsic value of stock options exercised during the year ended January 3, 2015, was $7.9 million. For the year ended December 28, 2013, we received $3.6 million in proceeds from the exercise of 1,922,167 options for which we recognized $0.4 million in excess tax benefits through additional paid in capital. The aggregate intrinsic value of stock options exercised during the year ended December 28, 2013, was $14.1 million. As of January 2, 2016, there was $39 thousand of unrecognized compensation cost related to non-vested stock option compensation arrangements granted which is expected to be recognized in earnings straight-line over a weighted average period of 2.1 years. Restricted Share Awards There were 241,702 restricted share awards granted in the year ended January 2, 2016, which will vest at various time periods through 2018. There were 212,393 restricted share awards granted in the year ended January 3, 2015, which were reduced by 29,293 shares based on performance criteria discussed above and which will vest at various time periods through 2017. There were 22,581 restricted shares awards granted in the year ended December 28, 2013, which vested during 2014. A summary of the status of restricted share awards as of January 2, 2016, and changes during the year then ended, are presented below: Number of Weighted Outstanding at January 3, 2015 183,100 $ 10.66 Granted 241,702 $ 11.14 Vested (69,161 ) $ 9.69 Forfeited/Expired/Performance adjustment (12,763 ) $ 11.22 Outstanding at January 2, 2016 342,878 $ 11.19 As of January 2, 2016, the remaining compensation cost related to non-vested share awards was $1.6 million which is expected to be recognized in earnings straight-line over a weighted average period of 1.5 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jan. 02, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 17. Accumulated Other Comprehensive Loss The following table shows the components of accumulated other comprehensive loss for 2015, 2014 and 2013: Aluminum Forward Interest (in thousands) Contracts Swap Total Balance at December 29, 2012 $ (1,414 ) $ — $ (1,414 ) Other comprehensive loss before reclassification (761 ) (630 ) (1,391 ) Amounts reclassified from other comprehensive loss 145 — 145 Tax effect 193 244 437 Net current-period other comprehensive loss (423 ) (386 ) (809 ) Balance at December 28, 2013 (1,837 ) (386 ) (2,223 ) Other comprehensive income (loss) before reclassification 346 (558 ) (212 ) Amounts reclassified from other comprehensive loss 7 1,188 1,195 Tax effect (187 ) (244 ) (431 ) Net current-period other comprehensive income 166 386 552 Balance at January 3, 2015 (1,671 ) — (1,671 ) Other comprehensive income loss before reclassification 126 — 126 Tax effect (50 ) — (50 ) Reclassification of income tax allocation 1,595 — 1,595 Net current-period other comprehensive income 1,671 — 1,671 Balance at January 2, 2016 $ — $ — $ — Reclassification out of accumulated other comprehensive loss for 2015, 2014, and 2013: Amounts Reclassified From Accumulated Other Comprehensive Loss Affected Line Item in Statement Where Net Income is Presented Year Ended January 2, January 3, December 28, 2016 2015 2013 (in thousands) Aluminum forward contracts $ 126 $ 7 $ 145 Cost of sales Tax effect (50 ) (3 ) (56 ) Tax expense Interest rate swap $ — $ 1,188 $ — Other expense, net Tax effect — (461 ) — Tax expense Income tax allocation 1,595 — — Tax expense |
Sales by Product Group
Sales by Product Group | 12 Months Ended |
Jan. 02, 2016 | |
Segment Reporting [Abstract] | |
Sales by Product Group | 18. Sales by Product Group The FASB has issued guidance under ASC 280, Segment Reporting We operate as a single business that manufactures windows and doors. Our chief operating decision maker evaluates performance by reviewing a few major categories of product sales and then considering costs on a total company basis. Sales by product group are as follows: Year Ended January 2, January 3, December 28, 2016 2015 2013 (in millions) Product category: Impact-resistant window and door products $ 319.2 $ 240.3 $ 183.4 Non-impact window and door products 70.6 66.1 55.9 Total net sales $ 389.8 $ 306.4 $ 239.3 |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Jan. 02, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | 19. Unaudited Quarterly Financial Data The following tables summarize the consolidated quarterly results of operations for 2015 and 2014 (in thousands, except per share amounts): 2015 First Second Third Fourth Net sales $ 95,301 $ 100,833 $ 100,668 $ 93,008 Gross profit 31,047 32,939 29,421 25,725 Net income 6,652 6,780 6,346 3,774 Net income per share – basic $ 0.14 $ 0.14 $ 0.13 $ 0.08 Net income per share – diluted $ 0.13 $ 0.13 $ 0.13 $ 0.07 2014 First Second Third Fourth Net sales $ 62,724 $ 81,622 $ 77,320 $ 84,722 Gross profit 19,771 26,145 23,183 23,693 Net income 3,352 7,801 2,332 2,920 Net income per share – basic $ 0.07 $ 0.17 $ 0.05 $ 0.06 Net income per share – diluted $ 0.07 $ 0.16 $ 0.05 $ 0.06 Earnings per share are computed independently for each of the quarters presented; therefore, the sum of the quarterly earnings per share may not equal the annual earnings per share. Each of our fiscal quarters above consists of 13 weeks except for the fourth quarter of 2014, which consists of 14 weeks, and ended on the last Saturday of the period. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 02, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events On February 16, 2016, we acquired WinDoor, provider of high-performance, impact-resistant windows and doors for five-star resorts, luxury high-rise condominiums, hotels and custom residential homes for approximately $100.3 million. WinDoor is now a wholly-owned subsidiary of PGT, Inc. The Company will allocate the purchase price to the assets acquired and liabilities assumed based on preliminary estimates of their fair values as of the acquisition date. The acquired net assets primarily consisted of accounts receivable, inventories, accounts payable and accrued expenses, property, plant and equipment, goodwill and certain identifiable intangible assets. As part of the events surrounding this acquisition, we completed the refinancing of our 2014 Credit Agreement into a new, larger credit facility with a $270 million term loan and $40 million revolving credit facility (“2016 Credit Agreement”). We used the proceeds under the 2016 Credit Agreement to repay borrowings under the 2014 Credit Agreement, which at the time of the refinancing were $197.5 million, and to pay financing costs related to the refinancing. We used additional proceeds under the 2016 Credit Agreement, along with approximately $43 million of cash on hand, to fund the $100.3 million purchase price for WinDoor. The final purchase price is subject to finalization of the amount of net working capital as of the February 16, 2016 closing date, which we expect to complete in the near future. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). |
Fiscal Period | Fiscal period Our fiscal year consists of 52 or 53 weeks ending on the Saturday nearest December 31 of the related year. The year ended January 3, 2015, consisted of 53 weeks. The years ended January 2, 2016, and December 28, 2013, consisted of 52 weeks. |
Principles of Consolidation | Principles of consolidation The consolidated financial statements present the results of the operations, financial position and cash flows of PGTI, and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Segment Information | Segment information We operate as one operating segment, the manufacture and sale of windows and doors. |
Use of Estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. |
Revenue Recognition | Revenue recognition We recognize sales when all of the following criteria have been met: a valid customer order with a fixed price has been received; the product has been delivered; and collectability is reasonably assured. All sales recognized are net of allowances for discounts and estimated credits, which are estimated using historical experience. We record provisions against gross revenues for estimated credits in the period when the related revenue is recorded. These estimates are based on factors that include, but are not limited to, analysis of credit memorandum activity. |
Cost of Sales | Cost of sales Cost of sales represents costs directly related to the production of our products. Primary costs include raw materials, direct labor, and manufacturing overhead, which consist of salaries, wages, employee benefits, utilities, maintenance, engineering and property taxes. |
Shipping and Handling Costs | Shipping and handling costs Shipping and handling costs incurred in the purchase of materials used in the manufacturing process are included in cost of sales. Costs relating to shipping and handling of our finished products are included in selling, general and administrative expenses and totaled $15.4 million, $13.0 million and $10.6 million for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. |
Advertising | Advertising We expense advertising costs as incurred. Advertising expense included in selling, general and administrative expenses was $0.3 million, $0.7 million and $0.7 million for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. |
Research and Development Costs | Research and development costs We expense research and development costs as incurred. Research and development costs included in cost of sales were $2.0 million, $1.8 million and $1.3 million for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. |
Cash and Cash Equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand or highly liquid investments with an original maturity date of three months or less when purchased. |
Accounts receivable, net | Accounts receivable, net In the ordinary course of business, we extend credit to qualified dealers and distributors, generally on a non-collateralized basis. The Company maintains as allowance for doubtful accounts which is based on management’s assessments of the amount which may become uncollectible in the future and is determined through consideration of our write-off history, specific identification of uncollectible accounts based in part on the customer’s past due balance (based on contractual terms), and consideration of prevailing economic and industry conditions. Uncollectible accounts are written off after repeated attempts to collect from the customer have been unsuccessful. January 2, January 3, (in thousands) Accounts receivable $ 32,106 $ 25,680 Less: Allowance for doubtful accounts (323 ) (306 ) $ 31,783 $ 25,374 |
Self-Insurance Reserves | Self-insurance reserves We are primarily self-insured for employee health benefits and for years prior to 2010 for workers’ compensation claims. Provisions for losses under these programs are recorded based on the Company’s estimates of the aggregate liabilities for the claims incurred. Accruals for healthcare claims and workers’ compensation are included in accrued liabilities in the accompanying consolidated balance sheets. |
Warranty Expense | Warranty expense We have warranty obligations with respect to most of our manufactured products. Warranty periods, which vary by product components, generally range from 1 to 10 years, although the warranty period for a limited number of specifically identified components in certain applications is a lifetime. However, the majority of the products sold have warranties on components which range from 1 to 3 years. The Company has recorded a reserve for estimated warranty and related costs, based on historical experience and periodically adjusts these provisions to reflect actual experience. Expected future obligations are discounted to a current value using a risk-free rate for obligations with similar maturities. During 2015, we recorded warranty expense at an average rate of 2.12% of sales. This rate is higher than the average rate of 1.80% of sales accrued in fiscal year 2014, due to an increase in service claims experienced in 2015. We assess the adequacy of our warranty accrual on a quarterly, and yearly basis, and adjust the previous amounts recorded, if necessary, to reflect the change in estimate of the future costs of claims yet to be serviced. The following provides information with respect to our warranty accrual. Accrued Warranty Beginning Acquired Charged to Adjustments Settlements End of (in thousands) Year ended January 2, 2016 $ 3,302 $ — $ 8,256 $ 332 $ (7,653 ) $ 4,237 Year ended January 3, 2015 $ 2,666 $ 239 $ 5,492 $ 473 $ (5,568 ) $ 3,302 Year ended December 28, 2013 $ 3,858 $ — $ 2,992 $ (419 ) $ (3,765 ) $ 2,666 The accrual for warranty is included in accrued liabilities and other liabilities, depending on estimated settlement date, in the consolidated balance sheets as of January 2, 2016, and January 3, 2015. The portion of warranty expense related to the issuance of product of $4.8 million, $3.1 million and $0.4 million is included in cost of sales on the consolidated statements of operations for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. The portion related to servicing warranty claims including costs of the service department personnel is included in selling, general and administrative expenses on the consolidated statements of operations, and is $3.8 million, $2.9 million and $2.2 million, respectively, for the years ended January 2, 2016, January 3, 2015, and December 28, 2013. |
Inventories | Inventories Inventories consist principally of raw materials purchased for the manufacture of our products. We have limited finished goods inventory as all products are custom, made-to-order products. 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 (net realizable value). The reserve for obsolescence is based on management’s assessment of the amount of inventory that may become obsolete in the future and is determined through company history, specific identification and consideration of prevailing economic and industry conditions. Inventories consist of the following: January 2, January 3, (in thousands) Raw materials $ 18,609 $ 16,674 Work in progress 1,246 791 Finished goods 3,198 2,505 $ 23,053 $ 19,970 |
Property, Plant and Equipment | Property, plant and equipment Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the lease term or their estimated useful life. Depreciable assets are assigned estimated lives as follows: Building and improvements 5 to 40 years Leasehold improvements Lease term or estimated useful life Furniture and equipment 3 to 10 years Vehicles 5 to 10 years Computer software 3 years Maintenance and repair expenditures are charged to expense as incurred. |
Long-Lived Assets | Long-lived assets We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of long-lived assets to future undiscounted net cash flows expected to be generated . |
Computer Software | Computer software We capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and it is probable that computer software being developed will be completed and placed in service. Capitalized costs include: (i) external direct costs of materials and services consumed in developing or obtaining computer software, (ii) payroll and other related costs for employees who are directly associated with and who devote time to the software project, and (iii) interest costs incurred, when material, while developing internal-use software. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Capitalized software as of January 2, 2016, and January 3, 2015, was $16.3 million and $14.0 million, respectively. Accumulated depreciation of capitalized software was $14.5 million and $13.4 million as of January 2, 2016, and January 3, 2015, respectively. Amortization expense for capitalized software was $1.1 million, $0.5 million, and $0.8 million for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. We review the carrying value of capitalized software and development costs for impairment in accordance with our policy pertaining to the impairment of long-lived assets. |
Goodwill | Goodwill Goodwill represents the excess of the consideration paid in a business combination over the fair value of the identifiable net assets acquired. We test goodwill for impairment at reporting unit level at least annually or whenever events or circumstances indicate that the carrying value of goodwill may not be recoverable from future cash flows. Our annual test for impairment is done on the first day of our fiscal fourth quarter. We have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If we elect to bypass the qualitative assessment or if we determine, based on qualitative factors, that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, a two-step quantitative test is required. In Step 1, we compare the fair value of our reporting unit with its net carrying value, including goodwill. If the net carrying value of our reporting unit exceeds its fair value, we then perform Step 2 of the impairment test to measure the amount of impairment loss, if any. In Step 2, we allocate our reporting unit’s fair value to all of its assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill (implied fair value of goodwill). If the carrying amount of our reporting unit’s goodwill exceeds the implied fair value of that goodwill, we recognize an impairment loss in an amount equal to that excess up to the carrying value of goodwill. In performing the two-step quantitative assessment, fair value of the reporting unit is based on discounted cash flows, market multiples, and/or appraised values, as appropriate. (See Note 6). Significant judgments and estimates are used in the determination of our reporting unit’s fair value. Discounted cash flow analyses utilize sensitive estimates, including projections of revenues and operating costs considering historical and anticipated future results, general economic and market conditions, discount rates, as well as the impact of planned business or operational strategies. Deterioration in economic or market conditions, as well as increased costs arising from the effects of regulatory or legislative changes may result in declines in our reporting unit’s performance beyond current expectations. Declines in our reporting unit’s performance, increases in equity capital requirements, or increases in the estimated cost of debt or equity, could cause the estimated fair value of our reporting unit or its associated goodwill to decline, which could result in an impairment charge to earnings in a future period related to some portion of the associated goodwill. |
Tradenames | Tradenames The Company has indefinite-lived intangible assets in the form of tradenames. The impairment evaluation of the carrying amount of our tradenames is conducted annually, or more frequently, if events or changes in circumstances indicate that they might be impaired. We have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If we elect to bypass the qualitative assessment or if we determine, based on qualitative factors, that it is more likely than not that the fair value of our tradenames is less than the carrying amount, an evaluation is performed by comparing their carrying amount to their estimated fair values. If the estimated fair value is less than the carrying amount of the tradename, then an impairment charge is recorded to reduce the carrying value to its estimated fair value. The estimated fair value is determined using the relief from royalty method that is based upon the discounted projected cost savings (value) attributable to ownership of our tradenames, our only indefinite lived intangible assets. In estimating fair value, the method we use requires us to make assumptions, the most material of which are net sales projections attributable to products sold with these trade names, the anticipated royalty rate we would pay if the trade names were not owned (as a percent of net sales), and a weighted average discount rate. These assumptions are subject to change based on changes in the markets in which these products are sold, which impact our projections of future net sales and the assumed royalty rate. Factors affecting the weighted average discount rate include assumed debt to equity ratios, risk-free interest rates and equity returns, each for market participants in our industry. Negative impacts on any of the assumptions could cause the estimated fair value of our tradenames to decline, which could result in an impairment charge to earnings in a future period related to some portion of the associated tradename. |
Derivative Financial Instruments | Derivative financial instruments We utilize certain derivative instruments, from time to time, including forward contracts and interest rate swaps and caps to manage variability in cash flow associated with commodity market price risk exposure in the aluminum market and interest rates. We do not enter into derivatives for speculative purposes. As of January 2, 2016, we did not have any open forward contracts for the purchase of aluminum. The net liability position of $491 thousand on January 3, 2015 is included in accrued liabilities in the accompanying consolidated balance sheet as it related to open contracts with scheduled prompt dates in 2015. On September 16, 2013, we entered into two interest rate caps and one interest rate swap. At January 2, 2016, we had no interest rate caps or swaps. At January 3, 2015, only one cap remained, the fair value of which was in an asset position of $2 thousand. Additional information with regard to derivative instruments is contained in Note 8. |
Concentrations of Credit Risk | Concentrations of credit risk Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash and cash equivalents and trade accounts receivable. Accounts receivable are due primarily from companies in the construction industry located in Florida and the eastern half of the United States. Credit is extended based on an evaluation of the customer’s financial condition and credit history, and generally collateral is not required. The Company maintains an allowance for potential credit losses on trade receivables. We maintain our cash with several financial institutions. The balance exceeds federally insured limits. At January 2, 2016, and January 3, 2015, such balance exceeded the insured limit by $61.0 million and $41.7 million, respectively. |
Comprehensive Income | Comprehensive income The Company reports comprehensive income, defined as the total of net income (loss) and all other non-owner changes in equity, and the components thereof, in its consolidated statements of comprehensive income. The components of comprehensive gains and losses on cash flow hedges, to the extent effective. Reclassification adjustments reflecting such gains and losses are recorded as income in the same period as the hedged items affect earnings. Additional information with regard to accounting policies associated with derivative instruments is contained in Note 9. |
Stock Compensation | Stock compensation We use a fair-value based approach for measuring stock-based compensation and record compensation expense over an award’s vesting period based on the award’s fair value at the date of grant. Our Company’s awards vest based on service conditions and compensation expense is recognized on a straight-line basis for each separately vesting portion of an award. Stock-based compensation expense is recognized only for those awards that are ultimately expected to vest, and we have applied an estimated forfeiture rate to unvested awards for the purpose of calculating compensation cost. These estimates will be revised in future periods if actual forfeitures differ from the estimates. Changes in forfeiture estimates impact compensation cost in the period in which the change in estimate occurs. We recorded compensation expense for stock based awards of $1.8 million before tax, or $0.04 per diluted share after tax-effect, $1.2 million before tax, or $0.02 per diluted share after tax-effect and $1.0 million before income tax, or $0.01 per diluted share after tax-effect, in the years ended January 2, 2016, January 3, 2015, and December 28, 2013, respectively. |
Income and Sales Taxes | Income and Sales Taxes We account for income taxes utilizing the liability method. Deferred income taxes are recorded to reflect consequences on future years of differences between financial reporting and the tax basis of assets and liabilities measured using the enacted statutory tax rates and tax laws applicable to the periods in which differences are expected to affect taxable earnings. We have no liability for unrecognized tax benefits. However, should we accrue for such liabilities, when and if they arise in the future, we will recognize interest and penalties associated with uncertain tax positions as part of our income tax provision. Sales taxes collected from customers have been recorded on a net basis. |
Net Income Per Common Share | Net income per common share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of common stock equivalents using the treasury stock method. We follow the “two class” method of accounting for earnings per share due to the fact that our unvested restricted stock awards are participating securities. Our weighted average shares outstanding excludes underlying options of less than 0.1 million and 0.1 million for the years ended January 2, 2016, and January 3, 2015, respectively, because their effects were anti-dilutive. There were no anti-dilutive options outstanding for the year ended December 28, 2013. The table below presents the calculation of basic and diluted earnings per share, including a reconciliation of weighted average common shares: Year Ended (in thousands, except per share amounts) January 2, January 3, December 28, Numerator: Net income $ 23,552 $ 16,405 $ 26,819 Denominator: Weighted-average common shares - Basic 48,272 47,376 48,881 Add: Dilutive effect of stock compensation plans 2,096 2,401 3,330 Weighted-average common shares - Diluted 50,368 49,777 52,211 Net income per common share: Basic $ 0.49 $ 0.35 $ 0.55 Diluted $ 0.47 $ 0.33 $ 0.51 |
Accounting Pronouncements Recently Issued | Accounting Pronouncements Recently Issued In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, “Leases (Topic 842)”. This guidance supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments”. This guidance eliminates the requirement to restate prior period financial statements for measurement period adjustments in a business combination. This guidance requires that the cumulative impact of a measurement-period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. This ASU was effective for the Company on January 3, 2016. We do not believe the adoption of this ASU will have a material impact on our financial statements. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330) – Simplifying the Measurement of Inventory”. This guidance changes the subsequent measurement of inventory, excluding inventory accounted for under LIFO or the retail inventory method, to be at lower of cost and net realizable value. Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. Under this ASU, an entity should measure inventory within its scope at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective in financial statements issued for fiscal years beginning after December 15, 2016, with early application at the beginning of interim or annual periods permitted, and is required to be adopted prospectively. We do not believe the adoption of this ASU will have a material impact on our financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” which will require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. This ASU is effective in financial statements issued for fiscal years beginning after December 15, 2015, with early adoption permitted, and is required to be adopted retrospectively. In August 2015, the FASB issued ASU No. 2015-15, “Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting,” which amends Subtopic 835-30 to add SEC paragraphs pursuant to the SEC Staff Announcement at the June 18, 2015 Emerging Issues Task Force (EITF) meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements, regarding the SECs views of the classification of debt issuance costs relating to line-of-credit arrangements as deferred assets when no borrowings exist under the arrangement. We do not believe the adoptions of either of these ASU’s relating to Subtopic 835-30 will have a material impact on our financial statements. In June 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force). The new standard requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. The update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The amendments in this ASU will be effective for us beginning the first interim period of our 2016 fiscal year and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In April 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which states the core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The provisions of the guidance were to be effective for us beginning in first quarter of 2017. However, in August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date,” which delayed the effective date of ASU 2014-09 by one year. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Accounts, Notes Receivable and Allowance for Doubtful Accounts | January 2, January 3, (in thousands) Accounts receivable $ 32,106 $ 25,680 Less: Allowance for doubtful accounts (323 ) (306 ) $ 31,783 $ 25,374 |
Information Regarding Warranty Accrual | Accrued Warranty Beginning Acquired Charged to Adjustments Settlements End of (in thousands) Year ended January 2, 2016 $ 3,302 $ — $ 8,256 $ 332 $ (7,653 ) $ 4,237 Year ended January 3, 2015 $ 2,666 $ 239 $ 5,492 $ 473 $ (5,568 ) $ 3,302 Year ended December 28, 2013 $ 3,858 $ — $ 2,992 $ (419 ) $ (3,765 ) $ 2,666 |
Inventories | Inventories consist of the following: January 2, January 3, (in thousands) Raw materials $ 18,609 $ 16,674 Work in progress 1,246 791 Finished goods 3,198 2,505 $ 23,053 $ 19,970 |
Schedule of Property, Plant and Equipment | Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the lease term or their estimated useful life. Depreciable assets are assigned estimated lives as follows: Building and improvements 5 to 40 years Leasehold improvements Lease term or estimated useful life Furniture and equipment 3 to 10 years Vehicles 5 to 10 years Computer software 3 years |
Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in the Calculation of Basic and Diluted EPS | The table below presents the calculation of basic and diluted earnings per share, including a reconciliation of weighted average common shares: Year Ended (in thousands, except per share amounts) January 2, January 3, December 28, Numerator: Net income $ 23,552 $ 16,405 $ 26,819 Denominator: Weighted-average common shares - Basic 48,272 47,376 48,881 Add: Dilutive effect of stock compensation plans 2,096 2,401 3,330 Weighted-average common shares - Diluted 50,368 49,777 52,211 Net income per common share: Basic $ 0.49 $ 0.35 $ 0.55 Diluted $ 0.47 $ 0.33 $ 0.51 |
Recent Accounting Pronounceme30
Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Summary of Reclassification of Current Deferred Tax Assets to Non-current Deferred Tax Liabilities | The effects on the Company’s consolidated balance sheet as of January 3, 2015 relating to the reclassification of current deferred tax assets to non-current deferred tax liabilities is as follows (in thousands): Previously As Deferred income taxes (current assets) $ 5,160 $ — Total current assets $ 99,437 $ 94,277 Total assets $ 311,749 $ 306,589 Deferred income taxes (non-current liabilities) $ 25,956 $ 20,796 Total liabilities $ 237,773 $ 232,613 Total liabilities and shareholders’ equity $ 311,749 $ 306,589 |
Acquisition of CGI Windows an31
Acquisition of CGI Windows and Doors (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Assumed | The final allocation of fair value of assets acquired and liabilities assumed are as follows: Final Accounts receivable $ 4,156 Inventories 3,229 Prepaid expenses 303 Property, plant and equipment 1,709 Intangible assets 45,300 Other assets 65 Goodwill 65,635 Deferred income taxes (5,472 ) Accounts payable and accrued liabilities (4,136 ) Other liabilities (351 ) Purchase price $ 110,438 |
Summary of Unaudited Proforma Results | 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. Year Ended January 3, December 28, Pro Forma Results (unaudited) 2015 2013 (in thousands, except per share amounts) Net sales $ 337,369 $ 272,132 Net income $ 15,209 $ 24,985 Net income per common share: Basic $ 0.32 $ 0.51 Diluted $ 0.31 $ 0.48 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The following table presents the composition of property, plant and equipment as of: January 2, January 3, 2016 2015 (in thousands) Land $ 6,298 $ 6,298 Buildings and improvements 46,229 45,656 Machinery and equipment 63,290 52,838 Vehicles 9,478 8,048 Software 16,278 13,984 Construction in progress 8,317 5,544 149,890 132,368 Less: Accumulated depreciation (78,387 ) (71,470 ) $ 71,503 $ 60,898 |
Goodwill, Trade Names and Oth33
Goodwill, Trade Names and Other Intangible Assets (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill, Trade Names and Other Intangible Assets Net | Trade names and other intangible assets are as follows as of: Initial January 2, January 3, Useful Life 2016 2015 (in years) (in thousands) Goodwill $ 65,635 $ 66,580 indefinite 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 (60,130 ) (56,717 ) Subtotal 21,870 25,283 Other intangible assets, net $ 79,311 $ 82,724 Goodwill at January 3, 2015 $ 66,580 Adjustment relating to additional deferred tax assets acquired (945 ) Goodwill at January 2, 2016 $ 65,635 |
Estimated Amortization for Future Fiscal Year | Estimated amortization of our customer relationships, developed technology and non-compete agreement intangible assets is as follows for future fiscal year: (in thousands) 2016 $ 3,379 2017 3,161 2018 3,161 2019 3,161 2020 3,222 Thereafter 5,786 Total $ 21,870 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: January 2, January 3, (in thousands) Accrued payroll and benefits $ 4,326 $ 4,607 Accrued warranty 3,484 2,658 Unearned revenue 1,334 1,405 Accrued health claims insurance payable 827 908 Accrued interest 133 874 Aluminum forward contracts — 491 Other 1,294 981 $ 11,398 $ 11,924 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following: January 2, January 3, (in thousands) Term loan payable with a payment of $0.5 million due quarterly. A lump sum payment of $186.0 million is due on September 22, 2021. Interest is payable quarterly at LIBOR or the prime rateplus an applicable margin. At January 2, 2016, and January 3, 2015, the average rate was 1.00% plus a margin of 4.25% $ 197,500 $ 199,500 Debt discount (1) (5,032 ) (5,746 ) 192,468 193,754 Less current portion of long-term debt (1,966 ) (1,962 ) Total $ 190,502 $ 191,792 (1) Debt discount – represents fees paid to the lender at time the debt was issued, and is accounted for as a reduction in the debt proceeds and is amortized over the life of the debt instrument. |
Schedule of Debt Issuance Costs | Estimated amortization expense of debt issuance costs is as follows for future fiscal years: Classified As (in thousands) Deferred Original Total 2016 $ 319 $ 781 $ 1,100 2017 329 820 1,149 2018 339 858 1,197 2019 313 899 1,212 2020 231 963 1,194 Thereafter 170 711 881 Total $ 1,701 $ 5,032 $ 6,733 |
Contractual Future Maturities of Long-term Debt | The contractual future maturities of long-term debt outstanding as of January 2, 2016, are as follows (excluding unamortized debt discount and deferred financing fees): (in thousands) 2016 $ 2,000 2017 2,000 2018 2,000 2019 2,000 2020 2,000 Thereafter 187,500 Total $ 197,500 |
Interest Expense, Net | Interest expense, net consisted of the following: Year Ended January 2, January 3, December 28, (in thousands) Long-term debt $ 10,562 $ 4,841 $ 2,295 Debt fees 269 240 235 Amortization of deferred financing costs and debt discount 1,014 945 1,021 Interest income (70 ) (37 ) (25 ) Interest expense 11,775 5,989 3,526 Capitalized interest (70 ) (29 ) (6 ) Interest expense, net $ 11,705 $ 5,960 $ 3,520 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Aluminum Hedges and Interest Rate Cap | The fair value of our aluminum hedges and interest rate cap are classified in the accompanying consolidated balance sheets as follows (in thousands): January 3, Derivatives in a net asset (liability) position Balance Sheet Location Hedging instruments: Aluminum forward contracts Accrued liabilities $ (491 ) Interest rate cap Other current assets 2 Total hedging instruments $ (489 ) |
Schedule of Offsetting Derivative Instrument | The impact of the offsetting derivative instruments are depicted below (in thousands): As of January 3, 2015 Gross Amounts not Offset Gross Net Amounts of Gross Amounts of Cash Recognized Amounts Recognized Financial Collateral Net Assets Offset Assets Instruments Received Amount Interest rate caps $ 2 $ — $ 2 $ — $ — $ 2 Gross Amounts not Offset Gross Net Amounts of Gross Amounts of Cash Recognized Amounts Recognized Financial Collateral Net (Liabilities) Offset (Liabilities) Instruments Pledged Amount Aluminum forward contracts $ (491 ) $ — $ (491 ) $ — $ — $ (491 ) |
Gains (Losses) on Derivative Financial Instruments | The following represents the gains (losses) on derivative financial instruments for the years ended January 2, 2016, January 3, 2015, and December 28, 2013, and their classifications within the accompanying consolidated financial statements (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in OCI on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Loss Reclassified from Year Ended Year Ended January 2, January 3, December 28, January 2, January 3, December 28, 2016 2015 2013 2016 2015 2013 Aluminum contracts $ 126 $ 346 $ (761 ) Cost of sales $ — $ (7 ) $ (145 ) Interest rate swap $ — $ (558 ) $ (630 ) Interest expense, net $ — $ — $ — Interest rate swap $ — $ — $ — Other expense, net $ — $ (1,188 ) $ — Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) Amount of Gain or (Loss) Recognized in Income on Derivatives Year Ended January 2, January 3, December 28, 2016 2015 2013 Aluminum contracts Other expense, net $ (388 ) $ (221 ) $ (358 ) Interest rate swap Other expense, net $ — $ (314 ) $ — Interest rate cap Other expense, net $ — $ (27 ) $ — |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Items Measured at Fair Value on a Recurring Basis | The following assets and liabilities are measured in the consolidated financial statements 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) January 3, Quoted Significant Significant Description 2015 (Level 1) (Level 2) (Level 3) (in thousands) Aluminum forward contracts $ (491 ) $ — $ (491 ) $ — Interest rate caps 2 — 2 — $ (489 ) $ — $ (489 ) $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are as follows (in thousands): Year Ended January 2, January 3, December 28, 2016 2015 2013 Current: Federal $ 8,861 $ 6,346 $ 86 State 443 — — 9,304 6,346 86 Deferred: Federal 4,893 2,379 (2,265 ) State 1,100 950 (1,195 ) 5,993 3,329 (3,460 ) Income tax expense (benefit) $ 15,297 $ 9,675 $ (3,374 ) |
Summary of Income Taxes Included in Consolidated Statements of Income and Consolidated Statements of Equity | The aggregate amount of income taxes included in the consolidated statements of operations and consolidated statements of shareholders’ equity are as follows (in thousands): Year Ended January 2, January 3, December 28, 2016 2015 2013 Consolidated statements of income: Income tax expense (benefit) relating to continuing operations $ 15,297 $ 9,675 $ (3,374 ) Consolidated statements of shareholders’ equity: Reversal of intraperiod tax allocation $ (1,595 ) $ — $ — Income tax expense (benefit) relating to derivative financial instruments $ 50 $ 431 $ (437 ) Income tax benefit relating to share-based compensation $ (3,840 ) $ (6,064 ) $ (396 ) |
Reconciliation of Statutory Federal Income Tax Rate | A reconciliation of the statutory federal income tax rate to our effective rate is provided below: Year Ended January 2, January 3, December 28, 2016 2015 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 3.8 % 3.8 % 3.8 % Reversal of intraperiod tax allocation 4.1 % — — Domestic manufacturing deduction (2.2 )% (2.1 )% — Florida jobs credit (2.0 )% — — Non-deductible acquisition costs — 0.6 % — Non-deductible secondary offering related expenses — — 1.8 % Change in valuation allowance on deferred tax assets 0.3 % — (55.1 )% Non-deductible expenses 0.2 % — 0.2 % Other 0.2 % (0.2 )% (0.1 )% 39.4 % 37.1 % (14.4 )% |
Components of Net Deferred Tax Asset and Liability | Significant components of our net deferred tax liability are as follows: January 2, January 3, (in thousands) Deferred tax assets: State and federal net operating loss carryforwards $ 4,735 $ 6,973 Goodwill — 1,941 Compensation expense 2,735 2,773 Accrued warranty 1,643 1,280 AMT tax credits — 574 Obsolete inventory and UNICAP adjustment 607 473 Derivative financial instruments — 241 Other deferrals and accruals, net 682 66 Allowance for doubtful accounts 152 107 Transaction costs 261 — Total deferred tax assets 10,815 14,428 Deferred tax liabilities: Other indefinite lived intangible assets (22,270 ) (22,270 ) Property, plant and equipment (9,202 ) (7,426 ) Amortizable intangible assets (4,361 ) (5,058 ) Goodwill (619 ) — Deferred financing costs (131 ) (152 ) Prepaid expenses (126 ) (318 ) Total deferred tax liabilities (36,709 ) (35,224 ) Total deferred tax liabilities, net $ (25,894 ) $ (20,796 ) |
CGI [Member] | |
Components of Net Deferred Tax Asset and Liability | In connection with the acquisition of CGI, we recorded a net deferred tax liability of $5.5 million during the year ended January 3, 2015, as follows (in thousands): Deferred tax assets (liabilities) relate to: Current Amortizable intangible assets $ (6,249 ) Other indefinitie lived intangible assets (7,366 ) Property, plant and equipment (242 ) Net operating loss carryforwards 7,885 Other assets, net 500 Net deferred tax liability $ (5,472 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Commitments for Non - Cancelable Operating Leases | Future minimum lease commitments for non-cancelable operating leases are as follows at January 2, 2016 (in thousands): 2016 $ 2,116 2017 1,638 2018 253 2019 87 2020 60 Total $ 4,154 |
Employee Stock Based Compensa40
Employee Stock Based Compensation (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of the Status of Stock Options | A summary of the status of our stock options as of January 2, 2016, and changes during the year then ended, is presented below: Number of Weighted Average Exercise Price Weighted Outstanding at January 3, 2015 4,219,665 $ 2.06 Granted — $ — Exercised (1,033,750 ) $ 2.12 Forfeited/Expired (15,601 ) $ 2.01 Outstanding at January 2, 2016 3,170,314 $ 2.04 4.3 Exercisable at January 2, 2016 3,131,314 $ 1.98 4.3 |
Summary of Information about Employee Stock Options Outstanding | The following table summarizes information about employee stock options outstanding at January 2, 2016, (dollars in thousands, except per share amounts): Exercise Price Remaining Outstanding Outstanding Exercisable Exercisable $0.92 0.1 Years 91,881 $ 962 91,881 $ 962 $1.60-$2.31 4.2 Years 3,046,433 28,601 3,031,433 28,461 $2.59-$3.25 6.4 Years 12,000 98 4,000 33 $11.81 8.2 Years 20,000 — 4,000 — 3,170,314 $ 29,661 3,131,314 $ 29,456 |
Summary of the Status of Restricted Share Awards | A summary of the status of restricted share awards as of January 2, 2016, and changes during the year then ended, are presented below: Number of Weighted Outstanding at January 3, 2015 183,100 $ 10.66 Granted 241,702 $ 11.14 Vested (69,161 ) $ 9.69 Forfeited/Expired/Performance adjustment (12,763 ) $ 11.22 Outstanding at January 2, 2016 342,878 $ 11.19 |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table shows the components of accumulated other comprehensive loss for 2015, 2014 and 2013: Aluminum Forward Interest (in thousands) Contracts Swap Total Balance at December 29, 2012 $ (1,414 ) $ — $ (1,414 ) Other comprehensive loss before reclassification (761 ) (630 ) (1,391 ) Amounts reclassified from other comprehensive loss 145 — 145 Tax effect 193 244 437 Net current-period other comprehensive loss (423 ) (386 ) (809 ) Balance at December 28, 2013 (1,837 ) (386 ) (2,223 ) Other comprehensive income (loss) before reclassification 346 (558 ) (212 ) Amounts reclassified from other comprehensive loss 7 1,188 1,195 Tax effect (187 ) (244 ) (431 ) Net current-period other comprehensive income 166 386 552 Balance at January 3, 2015 (1,671 ) — (1,671 ) Other comprehensive income loss before reclassification 126 — 126 Tax effect (50 ) — (50 ) Reclassification of income tax allocation 1,595 — 1,595 Net current-period other comprehensive income 1,671 — 1,671 Balance at January 2, 2016 $ — $ — $ — |
Reclassification Out of Accumulated Other Comprehensive Loss | Reclassification out of accumulated other comprehensive loss for 2015, 2014, and 2013: Amounts Reclassified From Accumulated Other Comprehensive Loss Affected Line Item in Statement Where Net Income is Presented Year Ended January 2, January 3, December 28, 2016 2015 2013 (in thousands) Aluminum forward contracts $ 126 $ 7 $ 145 Cost of sales Tax effect (50 ) (3 ) (56 ) Tax expense Interest rate swap $ — $ 1,188 $ — Other expense, net Tax effect — (461 ) — Tax expense Income tax allocation 1,595 — — Tax expense |
Sales by Product Group (Tables)
Sales by Product Group (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Segment Reporting [Abstract] | |
Summary of Sales by Product Group | Sales by product group are as follows: Year Ended January 2, January 3, December 28, 2016 2015 2013 (in millions) Product category: Impact-resistant window and door products $ 319.2 $ 240.3 $ 183.4 Non-impact window and door products 70.6 66.1 55.9 Total net sales $ 389.8 $ 306.4 $ 239.3 |
Unaudited Quarterly Financial43
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Consolidated Quarterly Results of Operations | The following tables summarize the consolidated quarterly results of operations for 2015 and 2014 (in thousands, except per share amounts): 2015 First Second Third Fourth Net sales $ 95,301 $ 100,833 $ 100,668 $ 93,008 Gross profit 31,047 32,939 29,421 25,725 Net income 6,652 6,780 6,346 3,774 Net income per share – basic $ 0.14 $ 0.14 $ 0.13 $ 0.08 Net income per share – diluted $ 0.13 $ 0.13 $ 0.13 $ 0.07 2014 First Second Third Fourth Net sales $ 62,724 $ 81,622 $ 77,320 $ 84,722 Gross profit 19,771 26,145 23,183 23,693 Net income 3,352 7,801 2,332 2,920 Net income per share – basic $ 0.07 $ 0.17 $ 0.05 $ 0.06 Net income per share – diluted $ 0.07 $ 0.16 $ 0.05 $ 0.06 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 12 Months Ended |
Jan. 02, 2016StatesOperationsPlant | |
Description Of Business [Line Items] | |
Number of states selling our products | States | 48 |
Date of Acquisition of CGI | Sep. 22, 2014 |
Number of manufacturing operations | Operations | 2 |
North Venice [Member] | |
Description Of Business [Line Items] | |
Number of manufacturing operations | Operations | 1 |
Miami [Member] | |
Description Of Business [Line Items] | |
Number of manufacturing operations | Operations | 1 |
Glass Tempering and Laminating Plant [Member] | |
Description Of Business [Line Items] | |
Number of plants | 2 |
Glass Tempering and Laminating Plant [Member] | North Venice [Member] | |
Description Of Business [Line Items] | |
Number of plants | 2 |
Insulation Glass Plants [Member] | |
Description Of Business [Line Items] | |
Number of plants | 1 |
Insulation Glass Plants [Member] | North Venice [Member] | |
Description Of Business [Line Items] | |
Number of plants | 1 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, shares in Millions | 12 Months Ended | |||
Jan. 02, 2016USD ($)Agreement$ / sharesshares | Jan. 03, 2015USD ($)Segment$ / sharesshares | Dec. 28, 2013USD ($)$ / shares | Sep. 16, 2013Agreement | |
Business Description And Accounting Policies [Line Items] | ||||
Number of operating segments | Segment | 1 | |||
Shipping and handling costs | $ 15,400,000 | $ 13,000,000 | $ 10,600,000 | |
Advertising Expense | 300,000 | 700,000 | 700,000 | |
Research and development costs | $ 2,000,000 | $ 1,800,000 | 1,300,000 | |
Original maturity date of cash and cash equivalents | Three months or less | |||
Warranty expense, average rate | 2.12% | 1.80% | ||
Portion of warranty expense related to issuance of product | $ 4,800,000 | $ 3,100,000 | 400,000 | |
Servicing warranty claims | 3,800,000 | 2,900,000 | 2,200,000 | |
Capitalization of software | 16,300,000 | 14,000,000 | ||
Accumulated depreciation of capitalized software | 14,500,000 | 13,400,000 | ||
Amortization expense for capitalized software | 1,100,000 | 500,000 | 800,000 | |
Net liability position included in accrued liabilities and other liabilities | 491,000 | |||
The amount of insured limit exceeds by the balance | 61,000,000 | 41,700,000 | ||
Compensation expense for stock based awards before tax | $ 1,800,000 | $ 1,200,000 | $ 1,000,000 | |
Compensation expense for stock based awards per diluted share after-tax effect | $ / shares | $ 0.04 | $ 0.02 | $ 0.01 | |
Material liability for unrecognized tax benefits | $ 0 | |||
Weighted average shares outstanding excluding underlying options | shares | 0.1 | 0.1 | ||
Interest Rate Caps [Member] | ||||
Business Description And Accounting Policies [Line Items] | ||||
Number of interest rate agreements | Agreement | 1 | 2 | ||
Asset position of the fair value of interest rate cap | $ 2,000 | |||
Interest Rate Swap [Member] | ||||
Business Description And Accounting Policies [Line Items] | ||||
Number of interest rate agreements | Agreement | 1 | |||
Minimum [Member] | ||||
Business Description And Accounting Policies [Line Items] | ||||
Warranty periods | 1 year | |||
Warranty period of the majority of products sold | 1 year | |||
Maximum [Member] | ||||
Business Description And Accounting Policies [Line Items] | ||||
Warranty periods | 10 years | |||
Warranty period of the majority of products sold | 3 years |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Schedule of Accounts, Notes Receivable and Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Accounting Policies [Abstract] | ||
Accounts receivable | $ 32,106 | $ 25,680 |
Less: Allowance for doubtful accounts | (323) | (306) |
Accounts receivable, net total | $ 31,783 | $ 25,374 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Information Regarding Warranty Accrual (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Guarantees [Abstract] | |||
Accrued Warranty, Beginning of Period | $ 3,302 | $ 2,666 | $ 3,858 |
Accrued Warranty, Acquired | 0 | 239 | 0 |
Accrued Warranty, Charged to Expense | 8,256 | 5,492 | 2,992 |
Accrued Warranty, Adjustments | 332 | 473 | (419) |
Accrued Warranty, Settlements | (7,653) | (5,568) | (3,765) |
Accrued Warranty, End of Period | $ 4,237 | $ 3,302 | $ 2,666 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Inventories (Detail) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 18,609 | $ 16,674 |
Work in progress | 1,246 | 791 |
Finished goods | 3,198 | 2,505 |
Total inventory | $ 23,053 | $ 19,970 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment (Detail) | 12 Months Ended |
Jan. 02, 2016 | |
Building and Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 5 years |
Building and Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 40 years |
Furniture and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 3 years |
Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 10 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 5 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 10 years |
Software Development [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 3 years |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - 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 | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Numerator: | |||||||||||
Net income | $ 3,774 | $ 6,346 | $ 6,780 | $ 6,652 | $ 2,920 | $ 2,332 | $ 7,801 | $ 3,352 | $ 23,552 | $ 16,405 | $ 26,819 |
Denominator: | |||||||||||
Weighted-average common shares - Basic | 48,272 | 47,376 | 48,881 | ||||||||
Add: Dilutive effect of stock compensation plans | 2,096 | 2,401 | 3,330 | ||||||||
Weighted-average common shares - Diluted | 50,368 | 49,777 | 52,211 | ||||||||
Net income per common share: | |||||||||||
Basic | $ 0.08 | $ 0.13 | $ 0.14 | $ 0.14 | $ 0.06 | $ 0.05 | $ 0.17 | $ 0.07 | $ 0.49 | $ 0.35 | $ 0.55 |
Diluted | $ 0.07 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.06 | $ 0.05 | $ 0.16 | $ 0.07 | $ 0.47 | $ 0.33 | $ 0.51 |
Recent Accounting Pronounceme51
Recent Accounting Pronouncements - Summary of Reclassification of Current Deferred Tax Assets to Non-current Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Total current assets | $ 126,989 | $ 94,277 |
Total assets | 345,729 | 306,589 |
Deferred income taxes (non-current liabilities) | 25,894 | 20,796 |
Total liabilities | 238,768 | 232,613 |
Total liabilities and shareholders' equity | $ 345,729 | 306,589 |
Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income taxes (current assets) | 5,160 | |
Total current assets | 99,437 | |
Total assets | 311,749 | |
Deferred income taxes (non-current liabilities) | 25,956 | |
Total liabilities | 237,773 | |
Total liabilities and shareholders' equity | $ 311,749 |
Acquisition of CGI Windows an52
Acquisition of CGI Windows and Doors - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 22, 2014 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Jan. 02, 2015 | Dec. 31, 2004 |
Business Acquisition [Line Items] | ||||||||||||||
Increase in acquired deferred tax assets with a corresponding decrease to goodwill | $ 900 | |||||||||||||
Net sales | $ 93,008 | $ 100,668 | $ 100,833 | $ 95,301 | $ 84,722 | $ 77,320 | $ 81,622 | $ 62,724 | $ 389,810 | $ 306,388 | $ 239,303 | |||
Net income | 3,774 | $ 6,346 | $ 6,780 | $ 6,652 | 2,920 | $ 2,332 | $ 7,801 | $ 3,352 | 23,552 | 16,405 | $ 26,819 | |||
Goodwill | 65,635 | 66,580 | 65,635 | 66,580 | $ 66,580 | |||||||||
Goodwill deductible for tax purpose | $ 63,800 | |||||||||||||
CGI [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquisition of CGI, transaction value | $ 110,400 | |||||||||||||
Business combination, acquisition related costs | 1,700 | |||||||||||||
Net sales | 13,300 | |||||||||||||
Net income | 148 | |||||||||||||
Goodwill | 65,635 | 65,635 | ||||||||||||
Goodwill deductible for tax purpose | $ 9,300 | $ 9,300 | $ 9,300 | $ 9,300 |
Acquisition of CGI Windows an53
Acquisition of CGI Windows and Doors - Schedule of Fair Value of Assets and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 | Jan. 02, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 65,635 | $ 66,580 | $ 66,580 |
CGI [Member] | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 4,156 | ||
Inventories | 3,229 | ||
Prepaid expenses | 303 | ||
Property, plant and equipment | 1,709 | ||
Intangible assets | 45,300 | ||
Other assets | 65 | ||
Goodwill | 65,635 | ||
Deferred income taxes | (5,472) | ||
Accounts payable and accrued liabilities | (4,136) | ||
Other liabilities | (351) | ||
Purchase price | $ 110,438 |
Acquisition of CGI Windows an54
Acquisition of CGI Windows and Doors - Summary of Unaudited Proforma Results (Detail) - CGI [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 03, 2015 | Dec. 28, 2013 | |
Business Acquisition [Line Items] | ||
Net sales | $ 337,369 | $ 272,132 |
Net income | $ 15,209 | $ 24,985 |
Net income per common share: | ||
Basic | $ 0.32 | $ 0.51 |
Diluted | $ 0.31 | $ 0.48 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 149,890 | $ 132,368 |
Less: Accumulated depreciation | (78,387) | (71,470) |
Property, plant and equipment, net | 71,503 | 60,898 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 6,298 | 6,298 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 46,229 | 45,656 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 63,290 | 52,838 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 9,478 | 8,048 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 16,278 | 13,984 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 8,317 | $ 5,544 |
Property, Plant and Equipment56
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 30, 2013 | Dec. 28, 2013 | |
Property, Plant and Equipment [Abstract] | ||
Gain on sale of assets | $ 2,200 | $ 2,195 |
Goodwill, Trade Names, and Othe
Goodwill, Trade Names, and Other Intangible Assets - Schedule of Goodwill, Trade Names and Other Intangible Assets Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Jan. 02, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | $ 66,580 | $ 65,635 | $ 66,580 | $ 66,580 |
Less: Accumulated amortization | (60,130) | (56,717) | ||
Subtotal | 21,870 | 25,283 | ||
Other intangible assets, net | 79,311 | 82,724 | ||
Goodwill at January 3, 2015 | 66,580 | |||
Adjustment relating to additional deferred tax assets acquired | (945) | |||
Goodwill at January 2, 2016 | $ 65,635 | |||
Customer Relationships [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Customer relationships | 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] | ||||
Customer relationships | 1,700 | 1,700 | ||
Initial Useful Life (in years) | 10 years | |||
Noncompete Agreements [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Customer relationships | 600 | 600 | ||
Initial Useful Life (in years) | 2 years | |||
Trade Names [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Trade names | $ 57,441 | $ 57,441 |
Goodwill, Trade Names and Oth58
Goodwill, Trade Names and Other Intangible Assets - Additional Information (Detail) | 12 Months Ended | ||
Jan. 02, 2016USD ($)Indicator | Jan. 03, 2015USD ($)Indicator | Dec. 28, 2013USD ($)Indicator | |
Intangible Liability Disclosure [Abstract] | |||
Impairment indicators | Indicator | 0 | 0 | 0 |
Impairment charges | $ | $ 0 | $ 0 | $ 0 |
Goodwill, Trade Names and Oth59
Goodwill, Trade Names and Other Intangible Assets - Estimated Amortization for Future Fiscal Year (Detail) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 3,379 | |
2,017 | 3,161 | |
2,018 | 3,161 | |
2,019 | 3,161 | |
2,020 | 3,222 | |
Thereafter | 5,786 | |
Subtotal | $ 21,870 | $ 25,283 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Payables and Accruals [Abstract] | ||
Accrued payroll and benefits | $ 4,326 | $ 4,607 |
Accrued warranty | 3,484 | 2,658 |
Unearned revenue | 1,334 | 1,405 |
Accrued health claims insurance payable | 827 | 908 |
Accrued interest | 133 | 874 |
Aluminum forward contracts | 491 | |
Other | 1,294 | 981 |
Total | $ 11,398 | $ 11,924 |
Long Term Debt - Schedule of Lo
Long Term Debt - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Debt Instrument [Line Items] | ||
Long term debt | $ 197,500 | |
Debt discount | (5,032) | $ (5,746) |
Long term debt | 192,468 | 193,754 |
Long term debt | 192,468 | 193,754 |
Less current portion of long-term debt | (1,966) | (1,962) |
Total | 190,502 | 191,792 |
Term Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 197,500 | $ 199,500 |
Long Term Debt - Schedule of 62
Long Term Debt - Schedule of Long-term Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Debt Instrument [Line Items] | ||
Term note payable in quarterly installments | $ 500 | $ 500 |
Lump sum payment due | $ 197,500 | |
Average rate of interest payable | 1.00% | 1.00% |
Average rate margin of interest payable | 4.25% | 4.25% |
Due on September 22, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Lump sum payment due | $ 186,000 | $ 186,000 |
Long Term Debt - Additional Inf
Long Term Debt - Additional Information (Detail) - USD ($) | Sep. 22, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 |
Line of Credit Facility [Line Items] | ||||
Letters of credit outstanding | $ 400,000 | |||
Basis spread on LIBOR | 4.25% | 4.25% | ||
Revolving Credit Facility Percentage Margin Over Base Rate | 20.00% | |||
Face value of debt | $ 197,500,000 | |||
Term note payable in quarterly installments | $ 500,000 | $ 500,000 | ||
Percentage of discount for issuance of the debt under the Credit Agreement | 1.00% | |||
Total issuance of debt under the Credit Agreement | $ 2,000,000 | |||
Debt issuance costs | 5,500,000 | |||
Amount of current and long-term portions of debt discount | 3,800,000 | |||
Debt issuance costs in current assets and other assets | 1,700,000 | |||
Debt issuance costs recorded as a discount | 5,000,000 | |||
Deferred financing fees | 6,733,000 | |||
Debt extinguishment costs | 2,625,000 | $ 333,000 | ||
Debt issuance costs recorded as deferred financing fees | 1,700,000 | |||
Credit Agreements [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Face value of debt | 200,000,000 | |||
Term Notes Payable [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Face value of debt | $ 197,500,000 | 199,500,000 | ||
LIBOR [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on LIBOR | 4.25% | |||
Base Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on LIBOR | 3.25% | |||
Senior Secured Credit Facilities [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount available under credit facility | $ 235,000,000 | |||
Term Loan Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount available under credit facility | $ 200,000,000 | |||
Maturity term of credit agreement | 7 years | |||
Credit facility amortization percentage | 1.00% | |||
Term Loan Facility [Member] | LIBOR [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on LIBOR | 1.00% | |||
Term Loan Facility [Member] | Base Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on LIBOR | 2.00% | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount available under credit facility | $ 35,000,000 | |||
Maturity term of credit agreement | 5 years | |||
Credit facility amortization percentage | 0.50% | |||
Credit available on revolver | $ 34,600,000 | |||
Letter Of Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility amortization percentage | 4.25% | |||
September 22, 2014 Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit agreement date | Sep. 22, 2014 | |||
Credit agreement termination date | May 28, 2013 | |||
Debt issuance costs recorded as a discount | 200,000 | |||
Deferred financing fees | 400,000 | |||
May 28, 2013 Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt issuance costs recorded as a discount | 1,500,000 | |||
Deferred financing fees | 1,700,000 | |||
Debt extinguishment costs | $ 2,600,000 |
Long Term Debt - Contractual Fu
Long Term Debt - Contractual Future Maturities of Long-Term Debt (Detail) $ in Thousands | Jan. 02, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 2,000 |
2,017 | 2,000 |
2,018 | 2,000 |
2,019 | 2,000 |
2,020 | 2,000 |
Thereafter | 187,500 |
Total | $ 197,500 |
Long Term Debt - Schedule of De
Long Term Debt - Schedule of Debt Issuance Costs (Detail) $ in Thousands | Jan. 02, 2016USD ($) |
Debt Issuance Costs [Line Items] | |
2,016 | $ 1,100 |
2,017 | 1,149 |
2,018 | 1,197 |
2,019 | 1,212 |
2,020 | 1,194 |
Thereafter | 881 |
Total | 6,733 |
Deferred Financing Costs [Member] | |
Debt Issuance Costs [Line Items] | |
2,016 | 319 |
2,017 | 329 |
2,018 | 339 |
2,019 | 313 |
2,020 | 231 |
Thereafter | 170 |
Total | 1,701 |
Original Issue Discount [Member] | |
Debt Issuance Costs [Line Items] | |
2,016 | 781 |
2,017 | 820 |
2,018 | 858 |
2,019 | 899 |
2,020 | 963 |
Thereafter | 711 |
Total | $ 5,032 |
Long Term Debt - Interest Expen
Long Term Debt - Interest Expense, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Debt Disclosure [Abstract] | |||
Long-term debt | $ 10,562 | $ 4,841 | $ 2,295 |
Debt fees | 269 | 240 | 235 |
Amortization of deferred financing costs and debt discount | 1,014 | 3,533 | 1,660 |
Interest income | (70) | (37) | (25) |
Interest expense | 11,775 | 5,989 | 3,526 |
Capitalized interest | (70) | (29) | (6) |
Interest expense, net | $ 11,705 | $ 5,960 | $ 3,520 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) lb in Millions | Sep. 16, 2013USD ($)Agreement | Jan. 02, 2016USD ($)Agreement | Jan. 03, 2015USD ($)Contractlb$ / lb | Mar. 29, 2014Contract | Dec. 28, 2013USD ($) |
Derivative [Line Items] | |||||
Accumulated other comprehensive income, net of tax | $ 77,000 | ||||
Aluminum Contracts [Member] | Other Expense, Net [Member] | |||||
Derivative [Line Items] | |||||
Other expense, net | $ 400,000 | 200,000 | |||
Interest Rate Caps [Member] | |||||
Derivative [Line Items] | |||||
Number of interest rate agreements | Agreement | 2 | 1 | |||
Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Number of interest rate agreements | Agreement | 1 | ||||
Term of interest rate cap agreement | 42 months | ||||
Notional amount of interest rate cap agreement | $ 40,000,000 | ||||
Portion of the variable rate debt from an increase in the floating rate | 2.15% | ||||
Termination payment for interest rate derivative | $ 1,400,000 | ||||
Accumulated other comprehensive income, net of tax | $ 700,000 | ||||
Interest Rate Cap Two [Member] | |||||
Derivative [Line Items] | |||||
Term of interest rate cap agreement | 2 years | ||||
Notional amount of interest rate cap agreement | $ 20,000,000 | ||||
Derivative instrument LIBOR rate exemption, interest rate cap agreement | 0.50% | ||||
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 | ||||
Derivative financial instruments, fair value of net liability | $ 491,000 | ||||
Number of outstanding forward contracts, liability | Contract | 23 | 17 | |||
Purchase of aluminum commodity contracts | lb | 7.9 | ||||
Aluminum commodity contracts, average price per pound | $ / lb | 0.90 | ||||
Aluminum commodity contracts, lower maturity date | 1 month | ||||
Aluminum commodity contracts, upper maturity date | 12 months |
Derivatives - Fair Value of Alu
Derivatives - Fair Value of Aluminum Hedges and Interest Rate Cap (Detail) $ in Thousands | Jan. 03, 2015USD ($) |
Derivatives, Fair Value [Line Items] | |
Total hedging instruments | $ (489) |
Aluminum Forward Contracts [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivatives in a net liability position | (491) |
Total hedging instruments | (491) |
Aluminum Forward Contracts [Member] | Accrued Liabilities [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivatives in a net liability position | (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) $ in Thousands | Jan. 03, 2015USD ($) |
Derivative [Line Items] | |
Gross Amounts of Recognized Liabilities | $ (489) |
Aluminum Forward Contracts [Member] | |
Derivative [Line Items] | |
Gross Amounts of Recognized Liabilities | (491) |
Gross Amounts offset in Balance Sheet - Liabilities | 0 |
Net amounts of Liabilities Presented in Balance Sheet | (491) |
Financial Instruments - Liabilities | 0 |
Cash Collateral Pledged - Liabilities | 0 |
Net Amount | (491) |
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 |
Derivatives - Gains (Losses) on
Derivatives - Gains (Losses) on Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Aluminum Contracts [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 126 | $ 346 | $ (761) |
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | (7) | (145) |
Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) | (388) | (221) | (358) |
Interest Rate Caps [Member] | Interest Expense, Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | (558) | (630) | |
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | 0 | 0 |
Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) | (314) | ||
Interest Rate Caps [Member] | Other Expense, net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | $ 0 | (1,188) | $ 0 |
Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) | $ (27) |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 |
Debt Instrument Fair Value Carrying Value [Abstract] | |||
Fair value of assets, level 1 to level 2 transfers | $ 0 | $ 0 | $ 0 |
Fair value of assets, level 2 to level 1 transfers | 0 | 0 | $ 0 |
Fair value of current long-term debt | $ 192,500,000 | $ 193,800,000 |
Fair Value - Items Measured at
Fair Value - Items Measured at Fair Value on Recurring Basis (Detail) $ in Thousands | Jan. 03, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative financial instruments, net liability and assets | $ (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 | (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 | (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 | (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 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 8,861 | $ 6,346 | $ 86 |
State | 443 | ||
Total current | 9,304 | 6,346 | 86 |
Federal | 4,893 | 2,379 | (2,265) |
State | 1,100 | 950 | (1,195) |
Total deferred | 5,993 | 3,329 | (3,460) |
Income tax expense (benefit) | $ 15,297 | $ 9,675 | $ (3,374) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Taxes Included in Consolidated Statement of Income and Consolidated Statement of Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Consolidated statements of income: | |||
Income tax expense (benefit) relating to continuing operations | $ 15,297 | $ 9,675 | $ (3,374) |
Consolidated statements of shareholders' equity: | |||
Reversal of intraperiod tax allocation | (1,595) | ||
Income tax expense (benefit) relating to derivative financial instruments | 50 | 431 | (437) |
Income tax benefit relating to share-based compensation | $ (3,840) | $ (6,064) | $ (396) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 31, 2004 | |
Income Taxes [Line Items] | ||||
Income tax expense from reversal of intraperiod income tax allocation | $ 1,600,000 | |||
Income tax expense (benefit) | 15,297,000 | $ 9,675,000 | $ (3,374,000) | |
Effective tax rates | 40.70% | |||
Deferred tax liability | 25,894,000 | 20,796,000 | ||
Goodwill deductible for tax purpose | $ 63,800,000 | |||
Unamortized goodwill | 619,000 | 5,400,000 | ||
Operating loss carryforwards | $ 3,800,000 | 6,100,000 | $ 400,000 | |
Operating loss carryforwards, expiration date | 2,027 | |||
Valuation allowance | 0 | |||
North Carolina [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating losses carryforward | $ 200,000 | |||
Internal Revenue Service (IRS) [Member] | Earliest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Open tax years for examination | 2,011 | |||
Internal Revenue Service (IRS) [Member] | Latest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Open tax years for examination | 2,014 | |||
CGI [Member] | ||||
Income Taxes [Line Items] | ||||
Deferred tax liability | 5,472,000 | |||
Goodwill deductible for tax purpose | $ 9,300,000 | 9,300,000 | ||
Deferred tax asset and liability | 0 | |||
Unamortized goodwill | 7,700,000 | $ 8,900,000 | ||
Goodwill remaining amortization period for tax purposes | 7 years 4 months 24 days | |||
Domestic Country [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 3,800,000 | |||
State [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 900,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit | 3.80% | 3.80% | 3.80% |
Reversal of intraperiod tax allocation | 4.10% | ||
Domestic manufacturing deduction | (2.20%) | (2.10%) | |
Florida jobs credit | (2.00%) | ||
Non-deductible acquisition costs | 0.60% | ||
Non-deductible secondary offering related expenses | 1.80% | ||
Change in valuation allowance on deferred tax assets | 0.30% | (55.10%) | |
Non-deductible expenses | 0.20% | 0.20% | |
Other | 0.20% | (0.20%) | (0.10%) |
Total statutory federal income tax rate | 39.40% | 37.10% | (14.40%) |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Liability (Detail) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Deferred Tax Liabilities [Line Items] | ||
Other indefinite lived intangible assets | $ (22,270) | $ (22,270) |
Property, plant and equipment | (9,202) | (7,426) |
Net operating loss carryforwards | 4,735 | 6,973 |
Net deferred tax liability | $ (25,894) | (20,796) |
CGI [Member] | ||
Deferred Tax Liabilities [Line Items] | ||
Amortizable intangible assets | (6,249) | |
Other indefinite lived intangible assets | (7,366) | |
Property, plant and equipment | (242) | |
Net operating loss carryforwards | 7,885 | |
Other assets, net | 500 | |
Net deferred tax liability | $ (5,472) |
Income Taxes - Components of 78
Income Taxes - Components of Net Deferred Tax Asset and Liability (Detail) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Deferred tax assets: | ||
State and federal net operating loss carryforwards | $ 4,735 | $ 6,973 |
Goodwill | 1,941 | |
Compensation expense | 2,735 | 2,773 |
Accrued warranty | 1,643 | 1,280 |
AMT tax credits | 574 | |
Obsolete inventory and UNICAP adjustment | 607 | 473 |
Derivative financial instruments | 241 | |
Other deferrals and accruals, net | 682 | 66 |
Allowance for doubtful accounts | 152 | 107 |
Transaction costs | 261 | |
Total deferred tax assets | 10,815 | 14,428 |
Deferred tax liabilities: | ||
Other indefinite lived intangible assets | (22,270) | (22,270) |
Property, plant and equipment | (9,202) | (7,426) |
Amortizable intangible assets | (4,361) | (5,058) |
Goodwill | (619) | (5,400) |
Deferred financing costs | (131) | (152) |
Prepaid expenses | (126) | (318) |
Total deferred tax liabilities | (36,709) | (35,224) |
Net deferred tax liability | $ (25,894) | $ (20,796) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Lease expenses | $ 2.3 | $ 1.6 | $ 1.3 |
Amount required for payment of materials | 3.6 | ||
Purchase of materials | 122 | $ 108.7 | $ 88.3 |
Letters of credit | 0.4 | ||
Commitments to purchase equipment | $ 0.5 |
Commitments and Contingencies80
Commitments and Contingencies - Future Minimum Lease Commitments for Non-Cancelable Operating Leases (Detail) $ in Thousands | Jan. 02, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 2,116 |
2,017 | 1,638 |
2,018 | 253 |
2,019 | 87 |
2,020 | 60 |
Total | $ 4,154 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Age of employees | 401(k) plan covering substantially all employees 18 years of age or older who have at least three months of service | ||
Service period required | 3 months | ||
Employee's contribution | 100.00% | ||
Matching contribution | 3.00% | 3.00% | 3.00% |
Vesting rate | 20.00% | ||
Requisite hours of work | At least 1,000 hours | ||
Recognized employee benefit | $ 0.7 | $ 1.1 | $ 1.2 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - Builders FirstSource, Inc [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Related Party Transaction [Line Items] | |||
Total net sales to Builders FirstSource | $ 7.9 | $ 6.7 | $ 5.1 |
Accounts receivable due from Builders FirstSource | $ 0.7 | $ 0.9 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jan. 02, 2016 | Oct. 28, 2015 | |
Equity [Abstract] | ||
Stock Repurchase Program, Authorized Amount | $ 20,000,000 | |
Share repurchased | 0 |
Employee Stock Based Compensa84
Employee Stock Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 03, 2015 | Jan. 02, 2016 | Jan. 03, 2015 | Jan. 02, 2015 | Dec. 28, 2013 | May. 07, 2014 | Mar. 04, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of Shares, Granted | 0 | 20,000 | |||||
Weighted Average Exercise Price, Granted | $ 0 | $ 11.81 | |||||
Options Vesting Year | 2,019 | ||||||
Weighted average fair value of common stock | $ 5.37 | ||||||
Decrease in number of restricted shares | 15,601 | ||||||
Outstanding Intrinsic Value | $ 29,661 | ||||||
Exercisable options intrinsic value | 29,456 | ||||||
Aggregate intrinsic value of stock options exercised | $ 10,800 | $ 7,900 | $ 14,100 | ||||
Number of shares exercised | 1,033,750 | 906,573 | 1,922,167 | ||||
Proceeds from exercise of stock options | $ 2,192 | $ 1,691 | $ 3,580 | ||||
Weighted-average period | 2 years 1 month 6 days | ||||||
Restricted Stock Award [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock awards | 241,702 | ||||||
Performance criteria defined in share awards | The percentages, ranging from less than 80% to greater than 120%, provide for the awarding of shares ranging from 0% to 150% and only related to half of the initial March 4, 2015, issuance of 178,256 shares, or 89,128 shares. | ||||||
Weighted average fair value of common stock | 10.66 | $ 11.19 | $ 10.66 | $ 11.81 | |||
Percentage of share-based compensation awards based on performance criteria | 57.50% | ||||||
Restricted stock awards | 39,626 | ||||||
Decrease in number of restricted shares | 29,293 | ||||||
Weighted-average period | 1 year 6 months | ||||||
Total unrecognized compensation | $ 1,600 | ||||||
Restricted Stock Award [Member] | Executives And Non-executive Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock awards | 212,393 | ||||||
Weighted average fair value of common stock | $ 10.82 | $ 10.82 | |||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock awards | 212,393 | 22,581 | |||||
Weighted average fair value of common stock | $ 6.76 | ||||||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted-average fair value of options granted | $ 5.37 | ||||||
Outstanding Intrinsic Value | $ 32,500 | $ 32,500 | $ 41,800 | ||||
Exercisable options intrinsic value | $ 24,300 | 24,300 | 24,100 | ||||
Total fair value of options vested | 1,200 | 1,300 | 1,400 | ||||
Tax benefit realized | 3,800 | 6,100 | 400 | ||||
Proceeds from exercise of stock options | 2,200 | $ 1,700 | $ 3,600 | ||||
Total unrecognized compensation | $ 39 | ||||||
2014 Omnibus Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares available for grant | 1,196,506 | 1,500,000 | |||||
Maximum number of shares | 1,500,000 | ||||||
2014 Omnibus Equity Incentive Plan [Member] | Restricted Stock Award [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock awards | 68,919 | ||||||
2014 Omnibus Equity Incentive Plan [Member] | Restricted Stock Award [Member] | Executives And Non-executive Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock awards | 241,702 | 74,555 | |||||
Weighted average fair value of common stock | $ 11.14 | ||||||
2006 Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares available for grant | 0 | 0 | 541,863 | ||||
Number of Shares, Granted | 0 | 0 | |||||
Compensation cost charged against income for stock compensation plan | $ 1,800 | $ 1,200 | $ 1,000 | ||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 3,800 | $ 6,100 | $ 400 | ||||
Dividend yield | 0.00% | ||||||
Expected volatility | 51.59% | ||||||
Risk-free interest rate | 1.54% | ||||||
Expected life | 5 years | ||||||
2006 Equity Incentive Plan [Member] | Restricted Stock Award [Member] | Executives And Non-executive Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock awards | 137,838 | ||||||
2015 Omnibus Incentive Plan [Member] | Restricted Stock Award [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock awards | 89,128 | ||||||
Weighted average fair value of common stock | $ 10.95 |
Employee Stock Based Compensa85
Employee Stock Based Compensation - Summary of the Status of Stock Options (Detail) - $ / shares | Jan. 03, 2015 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Number of Shares, Outstanding Beginning balance | 4,219,665 | |||
Number of Shares, Granted | 0 | 20,000 | ||
Number of Shares, Exercised | (1,033,750) | (906,573) | (1,922,167) | |
Number of Shares, Forfeited/Expired | (15,601) | |||
Number of Shares, Outstanding Ending balance | 3,170,314 | |||
Number of Shares, Exercisable Balance | 3,131,314 | |||
Outstanding at January 3, 2015 | $ 2.06 | $ 2.04 | $ 2.06 | |
Granted | 0 | 11.81 | ||
Exercised | 2.12 | |||
Forfeited/Expired | 2.01 | |||
Outstanding at January 2, 2016 | $ 2.06 | 2.04 | $ 2.06 | |
Exercisable at January 2, 2016 | $ 1.98 | |||
Weighted Average Remaining Life, Outstanding Balance | 4 years 3 months 18 days | |||
Weighted Average Remaining Life, Exercisable Balance | 4 years 3 months 18 days |
Employee Stock Based Compensa86
Employee Stock Based Compensation - Summary of Information about Employee Stock Options Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 2.04 | $ 2.06 |
Outstanding | 3,170,314 | |
Outstanding Intrinsic Value | $ 29,661 | |
Exercisable | 3,131,314 | |
Exercisable Intrinsic Value | $ 29,456 | |
Range One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.92 | |
Remaining Contractual Life | 1 month 6 days | |
Outstanding | 91,881 | |
Outstanding Intrinsic Value | $ 962 | |
Exercisable | 91,881 | |
Exercisable Intrinsic Value | $ 962 | |
Range Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining Contractual Life | 4 years 2 months 12 days | |
Outstanding | 3,046,433 | |
Outstanding Intrinsic Value | $ 28,601 | |
Exercisable | 3,031,433 | |
Exercisable Intrinsic Value | $ 28,461 | |
Range Two [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 1.60 | |
Range Two [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 2.31 | |
Range Three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining Contractual Life | 6 years 4 months 24 days | |
Outstanding | 12,000 | |
Outstanding Intrinsic Value | $ 98 | |
Exercisable | 4,000 | |
Exercisable Intrinsic Value | $ 33 | |
Range Three [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 2.59 | |
Range Three [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | 3.25 | |
Range Four [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 11.81 | |
Remaining Contractual Life | 8 years 2 months 12 days | |
Outstanding | 20,000 | |
Exercisable | 4,000 |
Employee Stock Based Compensa87
Employee Stock Based Compensation - Summary of the Status of Restricted Share Awards (Detail) - Restricted Stock Award [Member] | 12 Months Ended |
Jan. 02, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at January 3, 2015 | shares | 183,100 |
Granted | shares | 241,702 |
Vested | shares | (69,161) |
Forfeited/Expired/Performance adjustment | shares | (12,763) |
Outstanding at January 2, 2016 | shares | 342,878 |
Weighted Average Fair Value, Outstanding Beginning balance | $ / shares | $ 10.66 |
Weighted Average Fair Value, Granted | $ / shares | 11.14 |
Weighted Average Fair Value, Vested | $ / shares | 9.69 |
Weighted Average Fair Value, Forfeited/Expired/Performance adjustment | $ / shares | 11.22 |
Weighted Average Fair Value, Outstanding Ending balance | $ / shares | $ 11.19 |
Accumulated Other Comprehensi88
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 73,976 | $ 49,075 | $ 74,210 |
Tax effect | (50) | (431) | 437 |
Reclassification of income tax allocation | 1,595 | ||
Other comprehensive income (loss), net of tax | 1,671 | 552 | (809) |
Ending Balance | 106,961 | 73,976 | 49,075 |
Aluminum Forward Contracts [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1,671) | (1,837) | (1,414) |
Other comprehensive loss before reclassification | 126 | 346 | (761) |
Amounts reclassified from other comprehensive loss | 7 | 145 | |
Tax effect | (50) | (187) | 193 |
Reclassification of income tax allocation | 1,595 | ||
Other comprehensive income (loss), net of tax | 1,671 | 166 | (423) |
Ending Balance | (1,671) | (1,837) | |
Interest Rate Swap [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (386) | ||
Other comprehensive loss before reclassification | (558) | (630) | |
Amounts reclassified from other comprehensive loss | 1,188 | ||
Tax effect | (244) | 244 | |
Other comprehensive income (loss), net of tax | 386 | (386) | |
Ending Balance | (386) | ||
Accumulated Other Comprehensive Loss [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1,671) | (2,223) | (1,414) |
Other comprehensive loss before reclassification | 126 | (212) | (1,391) |
Amounts reclassified from other comprehensive loss | 1,195 | 145 | |
Tax effect | (50) | (431) | 437 |
Reclassification of income tax allocation | 1,595 | ||
Other comprehensive income (loss), net of tax | $ 1,671 | 552 | (809) |
Ending Balance | $ (1,671) | $ (2,223) |
Accumulated Other Comprehensi89
Accumulated Other Comprehensive Loss - Reclassification Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense, net | $ (388) | $ (1,750) | $ (437) |
Cost of sales | 270,678 | 213,596 | 159,169 |
Tax expense | 15,297 | 9,675 | (3,374) |
Income tax allocation | 1,600 | ||
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 | 126 | 7 | 145 |
Tax expense | (50) | (3) | $ (56) |
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 | ||
Tax expense | $ (461) | ||
Income tax allocation | $ 1,595 |
Sales by Product Group - Summar
Sales by Product Group - Summary of Sales by Product Group (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Product category: | |||||||||||
Net sales | $ 93,008 | $ 100,668 | $ 100,833 | $ 95,301 | $ 84,722 | $ 77,320 | $ 81,622 | $ 62,724 | $ 389,810 | $ 306,388 | $ 239,303 |
Impact-Resistant Window and Door Products [Member] | |||||||||||
Product category: | |||||||||||
Net sales | 319,200 | 240,300 | 183,400 | ||||||||
Non-impact Window and Door Products [Member] | |||||||||||
Product category: | |||||||||||
Net sales | $ 70,600 | $ 66,100 | $ 55,900 |
Unaudited Quarterly Financial91
Unaudited Quarterly Financial Data - Summary of Consolidated Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 93,008 | $ 100,668 | $ 100,833 | $ 95,301 | $ 84,722 | $ 77,320 | $ 81,622 | $ 62,724 | $ 389,810 | $ 306,388 | $ 239,303 |
Gross profit | 25,725 | 29,421 | 32,939 | 31,047 | 23,693 | 23,183 | 26,145 | 19,771 | 119,132 | 92,792 | 80,134 |
Net income | $ 3,774 | $ 6,346 | $ 6,780 | $ 6,652 | $ 2,920 | $ 2,332 | $ 7,801 | $ 3,352 | $ 23,552 | $ 16,405 | $ 26,819 |
Net income per share - basic | $ 0.08 | $ 0.13 | $ 0.14 | $ 0.14 | $ 0.06 | $ 0.05 | $ 0.17 | $ 0.07 | $ 0.49 | $ 0.35 | $ 0.55 |
Net income per share - diluted | $ 0.07 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.06 | $ 0.05 | $ 0.16 | $ 0.07 | $ 0.47 | $ 0.33 | $ 0.51 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) $ in Millions | Feb. 16, 2016 | Jan. 02, 2016 |
Revolving Credit Facility [Member] | ||
Subsequent Events [Line Items] | ||
Current borrowing capacity | $ 34.6 | |
Subsequent Event [Member] | ||
Subsequent Events [Line Items] | ||
Repayment of borrowings | $ 197.5 | |
Subsequent Event [Member] | WinDoor [Member] | ||
Subsequent Events [Line Items] | ||
Cash payment to acquire business | 43 | |
Purchase price | 100.3 | |
Subsequent Event [Member] | Term Loan Facility [Member] | ||
Subsequent Events [Line Items] | ||
Current borrowing capacity | 270 | |
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||
Subsequent Events [Line Items] | ||
Current borrowing capacity | $ 40 |