Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 01, 2017 | Jul. 01, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PGTI | ||
Entity Registrant Name | PGT Innovations, Inc. | ||
Entity Central Index Key | 1,354,327 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 49,318,149 | ||
Entity Public Float | $ 495,523,663 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 458,550 | $ 389,810 | $ 306,388 |
Cost of sales | 318,452 | 270,678 | 213,596 |
Gross profit | 140,098 | 119,132 | 92,792 |
Selling, general and administrative expenses | 83,995 | 68,190 | 56,377 |
Fair value adjustment to contingent consideration | (3,000) | ||
Income from operations | 59,103 | 50,942 | 36,415 |
Interest expense, net | 20,125 | 11,705 | 5,960 |
Debt extinguishment costs | 3,431 | 2,625 | |
Other expense, net | 388 | 1,750 | |
Income before income taxes | 35,547 | 38,849 | 26,080 |
Income tax expense | 11,800 | 15,297 | 9,675 |
Net income | $ 23,747 | $ 23,552 | $ 16,405 |
Net income per common share: | |||
Basic | $ 0.49 | $ 0.49 | $ 0.35 |
Diluted | $ 0.47 | $ 0.47 | $ 0.33 |
Weighted average shares outstanding: | |||
Basic | 48,856 | 48,272 | 47,376 |
Diluted | 50,579 | 50,368 | 49,777 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 23,747 | $ 23,552 | $ 16,405 |
Other comprehensive income before tax | |||
Change in fair value of derivatives | (212) | ||
Reclassification to earnings | 126 | 1,195 | |
Other comprehensive income before tax | 126 | 983 | |
Income tax expense related to components of other comprehensive income | 50 | 431 | |
Reversal of income tax allocation | (1,595) | ||
Net current-period other comprehensive income | 1,671 | 552 | |
Comprehensive income | $ 23,747 | $ 25,223 | $ 16,957 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 39,210 | $ 61,493 |
Accounts receivable, net | 41,646 | 31,783 |
Inventories | 30,511 | 23,053 |
Prepaid expenses | 2,645 | 2,170 |
Other current assets | 8,365 | 8,473 |
Total current assets | 122,377 | 126,972 |
Property, plant and equipment, net | 84,209 | 71,503 |
Trade names and other intangible assets, net | 120,930 | 79,311 |
Goodwill | 108,060 | 65,635 |
Other assets, net | 1,072 | 607 |
Total assets | 436,648 | 344,028 |
Current liabilities: | ||
Accounts payable | 7,894 | 8,180 |
Accrued liabilities | 14,909 | 11,398 |
Current portion of long-term debt | 1,949 | |
Total current liabilities | 22,803 | 21,527 |
Long-term debt, less current portion | 247,873 | 188,818 |
Deferred income taxes | 32,171 | 25,894 |
Other liabilities | 1,282 | 828 |
Total liabilities | 304,129 | 237,067 |
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; 51,887 and 51,146 shares issued and 49,176 and 48,806 shares outstanding at December 31, 2016 and January 2, 2016, respectively | 519 | 511 |
Additional paid-in-capital | 249,469 | 244,944 |
Accumulated deficit | (104,710) | (128,457) |
Shareholders' equity | 145,278 | 116,998 |
Less: Treasury stock at cost | (12,759) | (10,037) |
Total shareholders' equity | 132,519 | 106,961 |
Total liabilities and shareholders' equity | $ 436,648 | $ 344,028 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Jan. 02, 2016 |
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 | 51,887,000 | 51,146,000 |
Common stock, shares outstanding | 49,176,000 | 48,806,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 23,747 | $ 23,552 | $ 16,405 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 9,577 | 7,008 | 4,534 |
Amortization | 6,096 | 3,413 | 1,446 |
Provision for (recovery on) allowance for doubtful accounts | 81 | (131) | (535) |
Stock-based compensation | 1,769 | 1,774 | 1,214 |
Amortization and write-offs of deferred financing costs and debt discount | 6,779 | 1,014 | 3,533 |
Derivative financial instruments | 126 | 669 | |
Deferred income taxes | 6,277 | 5,993 | 3,329 |
Excess tax benefits on stock-based compensation | (1,872) | (3,840) | (6,064) |
Fair value adjustment to contingent consideration | (3,000) | ||
(Gain) loss on disposal of assets | (45) | 10 | |
Change in operating assets and liabilities (net of the effects of the acquisitions): | |||
Accounts receivable | (7,069) | (7,263) | (642) |
Inventories | (152) | (3,083) | (3,834) |
Prepaid expenses and other current assets | 2,215 | (1,786) | (1,628) |
Accounts payable and accrued liabilities | 1,962 | 5,669 | 3,823 |
Net cash provided by operating activities | 46,365 | 32,456 | 22,250 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (17,694) | (17,391) | (19,301) |
Business acquisitions | (101,338) | (110,438) | |
Proceeds from disposals of assets | 45 | ||
Net cash used in investing activities | (118,987) | (17,391) | (129,739) |
Cash flows from financing activities: | |||
Payments of long-term debt | (203,525) | (2,000) | (79,500) |
Proceeds from issuance of long-term debt | 261,030 | 198,000 | |
Payments of financing costs | (7,178) | (5,466) | |
Purchases of treasury stock | (2,847) | (44) | (1,025) |
Proceeds from exercise of stock options | 981 | 2,192 | 1,691 |
Proceeds from issuance of common stock under employee stock purchase plan | 36 | ||
Excess tax benefits on stock-based compensation | 1,872 | 3,840 | 6,064 |
Other | (30) | (29) | (10) |
Net cash provided by financing activities | 50,339 | 3,959 | 119,754 |
Net (decrease) increase in cash and cash equivalents | (22,283) | 19,024 | 12,265 |
Cash and cash equivalents at beginning of period | 61,493 | 42,469 | 30,204 |
Cash and cash equivalents at end of period | 39,210 | 61,493 | 42,469 |
Supplemental cash flow information: | |||
Interest paid | 16,015 | 11,502 | 2,216 |
Income tax payments, net of refunds | 2,231 | 6,808 | 1,198 |
Non-cash activity: | |||
Contingent consideration reversed out of accrued liabilities | 3,000 | ||
Portion of USI purchase price held-back by PGTI | 85 | ||
Property, plant and equipment additions in accounts payable | $ 251 | $ 723 | $ 489 |
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. 28, 2013 | $ 49,075 | $ 489 | $ 229,269 | $ (2,223) | $ (168,414) | $ (10,046) |
Beginning 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 | 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 | (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 | ||||
Grants of restricted stock | $ 3 | (3) | ||||
Vesting of restricted stock, Shares | 128,590,000 | |||||
Forfeitures of restricted stock | $ (1) | 1 | ||||
Purchases of treasury stock | $ (2,847) | (2,847) | ||||
Purchases of treasury stock, Shares | (299,988) | (299,988) | ||||
Retirement of treasury stock | (125) | 125 | ||||
Stock-based compensation | $ 1,769 | 1,769 | ||||
Exercise of stock options | $ 981 | $ 6 | 975 | |||
Exercise of stock options, Shares | 537,364 | 537,364 | ||||
Common stock issued under Employee Stock Purchase Plan | $ 36 | 36 | ||||
Common stock issued under Employee Stock Purchase Plan, Shares | 3,748 | |||||
Tax benefit on exercised stock options | 1,872 | 1,872 | ||||
Net income | 23,747 | 23,747 | ||||
Ending Balance at Dec. 31, 2016 | $ 132,519 | $ 519 | $ 249,469 | $ (104,710) | $ (12,759) | |
Ending Balance, Shares at Dec. 31, 2016 | 51,887,000 | 49,176,149 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business PGT Innovations, Inc. (“PGTI”, “we,” or the “Company”), formerly PGT, Inc., 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 many other 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). Through PGT Industries, Inc., we purchased all of the issued and outstanding shares of common stock of WinDoor, Incorporated, a Florida corporation, and all of the issued and outstanding membership units of LTE, LLC, a Florida limited liability company (together with WinDoor Incorporated, “WinDoor”) effective on February 16, 2016, pursuant to a stock purchase agreement (“SPA”) by and among PGT Industries, Inc., and the sellers as identified in the SPA. As a result, WinDoor became a wholly-owned subsidiary of PGT Industries, Inc. The fair value of consideration transferred in the acquisition was $102.6 million, including the then estimated fair value of contingent consideration of $3.0 million, which was preliminarily allocated to the net assets acquired and liabilities assumed as of the acquisition date, in accordance with Accounting Standards Codification (“ASC”) 805, “Business Combinations”. For a more detailed discussion of this acquisition, see Note 4 herein. On July 25, 2016, the Company created CGI Commercial, Inc. (CGIC), a Florida corporation. CGIC is a wholly-owned subsidiary of CGI. CGIC was created for the purpose of acquiring the operations and certain assets of, and assuming certain liabilities of US Impact Systems, Inc. (USI), a Florida corporation doing business primarily in the Miami area of Florida. USI, acquired by CGIC on August 31, 2016, is an established fabricator of storefront window and door products. The fair value of the consideration transferred in the acquisition was $1.9 million, which has been preliminarily allocated to the assets acquired and liabilities assumed as of the acquisition date, in accordance with ASC 805, “Business Combinations”. This transaction did not have a significant impact on our financial position nor our operating result for 2016. For a more detailed discussion of this transaction, see Note 4 herein. 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. On December 14, 2016, we announced that we changed our name to PGT Innovations, Inc. and, effective on December 28, 2016, the listing of our common stock was transferred to the New York Stock Exchange (NYSE) from the NASDAQ Global Market (NASDAQ), and began trading on the NYSE under its existing ticker symbol of “PGTI”. We have four manufacturing operations in Florida, with one in North Venice, two in the greater Miami area, and one in Orlando. Additionally, we have two glass tempering and laminating plants and one insulation glass plant, all located in North Venice. All references to PGTI or our Company apply to the consolidated financial statements of PGT Innovations, Inc. unless otherwise noted. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2016, and January 2, 2016, consisted of 52 weeks. The year ended January 3, 2015, consisted of 53 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 $18.3 million, $15.4 million and $13.0 million for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, respectively. Advertising We expense advertising costs as incurred. Advertising expense included in selling, general and administrative expenses was $0.2 million, $0.3 million and $0.7 million for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, respectively. Research and development costs We expense research and development costs as incurred. Research and development costs included in cost of sales were $1.7 million, $2.0 million and $1.8 million for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, 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 write-off December 31, January 2, 2016 2016 (in thousands) Accounts receivable $ 42,045 $ 32,119 Less: Allowance for doubtful accounts (399 ) (336 ) Accounts receivable, net $ 41,646 $ 31,783 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 2016, we recorded warranty expense at an average rate of 2.41% of sales. This rate is higher than the average rate of 2.12% of sales accrued in fiscal year 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 December 31, 2016 $ 4,237 $ 274 $ 11,064 $ 754 $ (10,760 ) $ 5,569 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 The accrual for warranty is included in accrued liabilities and other liabilities, depending on estimated settlement date, in the consolidated balance sheets as of December 31, 2016, and January 2, 2016. The portion of warranty expense related to the issuance of product of $6.8 million, $4.8 million and $3.1 million is included in cost of sales in the consolidated statements of operations for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, respectively. The portion related to servicing warranty claims including costs of the service department personnel is included in selling, general and administrative expenses in the consolidated statements of operations, and is $5.0 million, $3.8 million and $2.9 million, respectively, for the years ended December 31, 2016, January 2, 2016, and January 3, 2015. 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 (first-in, first-out December 31, January 2, 2016 2016 (in thousands) Raw materials $ 24,946 $ 18,609 Work in progress 2,521 1,246 Finished goods 3,044 3,198 Inventories $ 30,511 $ 23,053 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. Depreciable assets are assigned estimated lives as follows: Building and improvements 5 to 40 years Leasehold improvements Shorter of 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 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 December 31, 2016, and January 2, 2016, was $16.6 million and $16.3 million, respectively. Accumulated depreciation of capitalized software was $15.4 million and $14.5 million as of December 31, 2016, and January 2, 2016, respectively. Amortization expense for capitalized software was $0.9 million, $1.1 million, and $0.5 million for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, 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 the 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 date of our fiscal fourth quarter. We consider various qualitative factors, including macroeconomic and industry conditions, financial performance of the company and changes in the stock price of the company to determine whether it is necessary to perform a quantitative test for goodwill impairment. If we believe, as a result of our qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Under the quantitative test, goodwill is tested under a two-step two-step 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. For all periods presented, based on a qualitative assessment, we concluded that a quantitative two-step 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 December 31, 2016, and January 2, 2016, we did not have any open forward contracts for the purchase of aluminum, or any interest rate caps or swaps. Additional information with regard to derivative instruments is contained in Note 9. 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 dealers and distributors of building materials, and other companies in the construction industry, primarily located in Florida. 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 December 31, 2016, and January 2, 2016, such balance exceeded the insured limit by $37.5 million and $61.0 million, respectively. Comprehensive income The Company reports comprehensive income, defined as the total of net income and other comprehensive income, which is composed of all other non-owner The components of other comprehensive income relate to 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. 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. 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. Refer to Note 11 for additional information regarding the Company’s income taxes. 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. Our weighted average shares outstanding excludes underlying securities of 20 thousand, 66 thousand, and 16 thousand for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, respectively, because their effects were anti-dilutive. The table below presents the calculation of basic and diluted earnings per share, including a reconciliation of weighted average common shares: Year Ended December 31, January 2, January 3, 2016 2016 2015 (in thousands, except per share amounts) Numerator: Net income $ 23,747 $ 23,552 $ 16,405 Denominator: Weighted-average common shares—Basic 48,856 48,272 47,376 Add: Dilutive effect of stock compensation plans 1,723 2,096 2,401 Weighted-average common shares—Diluted 50,579 50,368 49,777 Net income per common share: Basic $ 0.49 $ 0.49 $ 0.35 Diluted $ 0.47 $ 0.47 $ 0.33 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In September 2015, the FASB issued ASU No. 2015-16, In April 2015, the FASB issued ASU No. 2015-03, 835-30): 2015-03) No. 2015-15, 835-30): Line-of-Credit 835-30 line-of-credit line-of-credit 2015-03 Previously As Reported Reclassified Other current assets $ 8,490 $ 8,473 Total current assets $ 126,989 $ 126,972 Other assets $ 2,291 $ 607 Total assets $ 345,729 $ 344,028 Current portion of long-term debt $ 1,966 $ 1,949 Total current liabilities $ 21,544 $ 21,527 Long-term debt, less current portion $ 190,502 $ 188,818 Total liabilities $ 238,768 $ 237,067 Total liabilities and shareholders’ equity $ 345,729 $ 344,028 In June 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-12, 2014-12 Accounting Pronouncements Recently Issued In January 2017, the FASB issued ASU 2017-04, 2017-04 In January 2017, the FASB issued ASU 2017-01, 2017-01 2017-01 In August 2016, the FASB issued ASU 2016-15, 2016-15 In June 2016, the FASB issued ASU 2016-13, 2016-13 2016-13 In March 2016, the FASB issued ASU 2016-09, paid-in In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, 2016-02 2016-02 In July 2015, the FASB issued ASU No. 2015-11, In August 2014, the FASB issued ASU No. 2014-15, 205-40): 2014-15 In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09, 2015-14, 2016-08 2016-10 2016-12 non-cash 2016-20 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions WinDoor, Inc. On February 16, 2016 (the “closing date”), we completed the acquisition of WinDoor, Inc., which became a wholly-owned subsidiary of PGT Industries, Inc. The fair value of consideration transferred in the acquisition was $102.6 million, including the then estimated fair value of contingent consideration of $3.0 million, which has been allocated to the net assets acquired and liabilities assumed as of the acquisition date, in accordance with ASC 805, “Business Combinations”. The cash portion of the acquisition was financed with borrowings under the 2016 Credit Agreement and with $43.5 million of cash on hand. The estimated fair value of assets acquired and liabilities assumed as of the closing date, are as follows: Current Estimate Preliminary allocation: Accounts and notes receivable $ 3,882 Inventories 6,778 Prepaid expenses 246 Property and equipment 5,029 Intangible assets 47,100 Goodwill 41,856 Accounts payable and accrued liabilities (2,320 ) Purchase price $ 102,571 Consideration: Cash $ 99,571 Contingent consideration 3,000 Total fair value of consideration $ 102,571 The fair value of working capital related items, such as accounts and notes receivable, inventories, prepaid expenses, and accounts payable and accrued liabilities, approximated their book values at the date of acquisition. The fair value of property and equipment and remaining useful lives were estimated using a cost approach. 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 $0.9 million are included in selling, general, and administrative expenses on the consolidated statement of operations for the year ended December 31, 2016, and relate to legal expenses, representations and warranties insurance, diligence, and accounting services. These costs are being deferred and amortized for tax purposes over the same period as tax deductible goodwill. The remaining consideration, after identified intangible assets and the net assets and liabilities recorded at fair value, was determined to be $41.9 million, of which $38.9 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 going concern value of an established business, and our expectation of future economic benefits from the acquisition. The SPA provided for the potential for an earn-out pre-acquisition The potential undiscounted amount of all future payments that could be required to be paid under the contingent earn-out earn-out earn-out Estimated sales is a significant input that is not observable in the market, which ASC 820 considers to be a Level 3 input. For tax purposes, contingent consideration does not become part of tax goodwill until paid. As such, the amount of goodwill deductible for tax purposes is $3.0 million less than the amount recorded for book purposes. The following unaudited pro forma financial information assumes the acquisition had occurred at the beginning of the earliest period presented that does not include WinDoor’s actual results for the entire period. Pro forma results have been prepared by adjusting our historical results to include the results of WinDoor adjusted for the following: amortization expense related to the intangible assets arising from the acquisition and interest expense to reflect the 2016 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 December 31, January 2, Pro Forma Results (unaudited) 2016 2016 (in thousands, except per share amounts) Net sales $ 461,011 $ 430,626 Net income $ 22,402 $ 17,912 Net income per common share: Basic $ 0.46 $ 0.37 Diluted $ 0.44 $ 0.36 US Impact Systems, Inc. On August 31, 2016, CGIC, a wholly-owned subsidiary of CGI, which is wholly-owned by the Company, entered into an asset purchase agreement (APA) with USI and its stockholders whereby CGIC purchased the operations and certain assets of, and assumed certain liabilities of USI. USI is an established fabricator of storefront window and door products. The fair value of the consideration transferred in the acquisition was $1.9 million, which has been allocated to current and other assets totaling $1.8 million and amortizable intangible assets totaling $0.6 million, and goodwill of $0.6 million, less the assumption of accounts payable and accrued liabilities with estimated fair values totaling $1.2 million, in accordance with ASC 805, “Business Combinations”. This transaction did not have a significant impact on our financial position or operating results for 2016. 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 going concern value of an established business, and our expectation of future economic benefits from the acquisition. The following unaudited pro forma financial information assumes the acquisition had occurred at the beginning of our 2014 fiscal year. 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 our 2014 fiscal year, 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 Pro Forma Results (unaudited) January 3, (in thousands, except per share amounts) Net sales $ 337,369 Net income $ 15,209 Net income per common share: Basic $ 0.32 Diluted $ 0.31 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 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: December 31, January 2, 2016 2016 (in thousands) Land $ 6,298 $ 6,298 Buildings and improvements 51,681 46,229 Machinery and equipment 79,421 63,290 Vehicles 11,415 9,478 Software 16,640 16,278 Construction in progress 6,319 8,317 Property, plant and equipment 171,774 149,890 Less: Accumulated depreciation (87,565 ) (78,387 ) Property, plant and equipment, net $ 84,209 $ 71,503 |
Goodwill, Trade Names and Other
Goodwill, Trade Names and Other Intangible Assets | 12 Months Ended |
Dec. 31, 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 December 31, January 2, Useful Life 2016 2016 (in years) (in thousands) Goodwill $ 108,060 $ 65,635 indefinite Other intangible assets: Trade names $ 75,841 $ 57,441 indefinite Customer relationships 106,647 79,700 3-10 Developed technology 3,000 1,700 9-10 Non-compete 1,668 600 2-5 Less: Accumulated amortization (66,226 ) (60,130 ) Subtotal 45,089 21,870 Other intangible assets, net $ 120,930 $ 79,311 Goodwill at January 2, 2016 $ 65,635 Increase in goodwill from allocation of WinDoor purchase price 41,856 Increase in goodwill from allocation of USI purchase price 569 Goodwill at December 31, 2016 $ 108,060 Tradenames at January 2, 2016 $ 57,441 Increase in tradenames from the acquisition of WinDoor 18,400 Tradenames at December 31, 2016 $ 75,841 Amortizable Intangible Assets We test amortizable intangible assets for impairment when indicators of impairment exist. No impairment testing was performed during the years ended December 31, 2016, January 2, 2016, and January 3, 2015, 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 (in thousands) Total 2017 $ 6,329 2018 6,341 2019 6,282 2020 6,278 2021 5,974 Thereafter 13,885 Total $ 45,089 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consisted of the following as of: December 31, January 2, 2016 2016 (in thousands) Accrued payroll and benefits $ 4,384 $ 4,326 Accrued warranty 4,494 3,484 Customer deposits 2,176 1,334 Accrued health claims insurance payable 668 827 Accrued interest 1,660 133 Other 1,527 1,294 $ 14,909 $ 11,398 Other accrued liabilities are comprised primarily of state sales taxes and customer rebates. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 8. Long-Term Debt Long-term debt consists of the following: December 31, January 2, 2016 2016 (in thousands) Term loan payable with a payment of $0.675 million due quarterly. A lump sum payment of $253.8 million is due on February 15, 2022. Interest is payable quarterly at LIBOR or the prime plus an applicable margin. At December 31, 2016, the average rate is 1.00% plus a margin of 5.75%. (1) $ 263,975 $ — Term loan payable with a payment of $0.5 million due quarterly. A lump sum payment of $186.0 million was due on September 22, 2021. Interest was payable quarterly at LIBOR or the prime plus an applicable margin. At January 2, 2016, the average rate was 1.00% plus a margin of 4.25%. — 197,500 Fees, costs and original issue discount (2) (16,102 ) (6,733 ) 247,873 190,767 Less current portion of long-term debt — (1,949 ) Long-term debt, less current portion $ 247,873 $ 188,818 (1) Effective on February 17, 2017, the Company amended and repriced this term loan. Terms of the repriced facility include a one percentage-point reduction in stated interest rate to LIBOR of 1.00% plus a margin of 4.75%. The amended term loan facility has quarterly payments of principal of $0.675 million, with a lump sum payment of $253.8 million due February 15, 2022, each of which remained unchanged from the prior facility (See Note 20.). (2) Fees, costs and original issue discount – represents third-party fees, lender fees, other debt-related costs, and original issue discount, recorded as a reduction of the carrying value of the debt pursuant to ASU 2015-03, 2016 Credit Agreement See Note 20, “Subsequent Event” for information regarding an amendment to the term loan facility of the 2016 Credit Agreement, which resulted in a one percentage-point reduction in the stated interest rate for borrowings under this facility. All other significant terms, restrictions, and financial and other covenants under the 2016 Credit Agreement remain unchanged. On February 16, 2016, we entered into the 2016 Credit Agreement, among us, the lending institutions identified in the 2016 Credit Agreement, and Deutsche Bank AG New York Branch, as Administrative Agent and Collateral Agent. The 2016 Credit Agreement establishes new senior secured credit facilities in an aggregate amount of $310.0 million, consisting of a $270.0 million Term B term loan facility maturing in February 2022 that will amortize on a basis of 1% annually during the six-year Interest on all loans under the 2016 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 was 575 basis points in the case of LIBOR and 475 basis points in the case of the base rate. However, subsequent to the repricing amendment as discussed in “Subsequent Event”, these rates have been decreased to 475 basis points in the case of LIBOR and 375 basis points in the case of the base rate. We 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 575 basis points per annum plus a 12.5 basis point facing fee per annum on the face amount of any outstanding letters of credit. The face value of the 2016 Credit Agreement at the time of issuance was $270 million of which $2.0 million has been repaid as scheduled debt repayments through December 31, 2016. In addition, we made a voluntary prepayment of $4.0 million on September 30, 2016, using internally generated cash on hand. We elected to apply the prepayment against upcoming required principal repayments in direct order of maturity, as permitted under the 2016 Credit Agreement, resulting in no required repayments of principal until the first quarter of 2018. As of December 31, 2016, the face value of debt outstanding under the 2016 Credit Agreement was $264.0 million, and accrued interest was $1.7 million. The Company incurred third-party fees and costs totaling $1.5 million, and additional lender fees and discount of $14.6 million in the February 2016 refinancing. As a result of the voluntary prepayment of debt discussed above, we accelerated the amortization of lenders fees and discount relating to the term-loan portion of the 2016 Credit Agreement of $0.2 million, which is included in interest expense in the accompanying consolidated statement of operations for the year ended December 31, 2016. With our adoption of ASU 2015-03, (in thousands) Total At beginning of year as of January 2, 2016 $ 6,733 Amortization expense through refinancing (128 ) At time of refinancing 6,605 Add: Fees, costs and OID relating to the 2016 Credit Agreement 16,148 Less: Debt extinguishment costs (3,431 ) Less: Third-party fees and cost classified within SG&A (627 ) Less: Amortization expense after refinancing (2,368 ) Less: Accelerated amortization relating to debt prepayment (225 ) At end of year as of December 31, 2016 $ 16,102 Estimated amortization expense relating to third-party fees and costs, lender fees and discount for the years indicated, and which reflects the effect on the effective interest rate as a result of the repricing discussed in “Subsequent Event” in this section, as of December 31, 2016, is as follows: (in thousands) Total 2017 $ 2,855 2018 3,036 2019 3,195 2020 3,430 2021 3,185 2022 401 Total $ 16,102 As a result of the voluntary prepayment of $4.0 million as discussed above, our next scheduled repayment is not due until the first quarter of 2018. The contractual future maturities of long-term debt outstanding as of December 31, 2016, are as follows (at face value): (in thousands) Total 2017 $ — 2018 2,075 2019 2,700 2020 2,700 2021 2,700 2022 253,800 Total $ 263,975 The 2016 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 EBITDA, each as defined in the 2016 Credit Agreement), and is tested quarterly based on the last four fiscal quarters and is set at levels as described in the 2016 Credit Agreement. As of December 31, 2016, no test is required as we have not exceeded 20% of our revolving capacity. The 2016 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 2016 Credit Agreement also contains customary events of default. Upon the occurrence of an event of default, the amounts outstanding under the 2016 Credit Agreement may be accelerated and may become immediately due and payable. 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 established new senior secured credit facilities in an aggregate amount of $235.0 million, consisting of a $200.0 million Term B term loan facility that was to mature in seven years and amortize on a basis of 1% annually during the seven-year term, and a $35.0 million revolving credit facility that was to mature in five years that included a swing line facility and a letter of credit facility. Our obligations under the 2014 Credit Agreement were secured by substantially all of our assets as well as our subsidiaries’ assets. In connection with entering into the 2016 Credit Agreement, on February 16, 2016, we terminated the 2014 Credit Agreement. Interest expense, net consisted of the following: Year Ended December 31, January 2, January 3, 2016 2016 2015 (in thousands) Long-term debt $ 17,351 $ 10,562 $ 4,841 Debt fees 296 269 240 Amortization of deferred financing costs and debt discount 2,721 1,014 945 Interest income (105 ) (70 ) (37 ) Interest expense 20,263 11,775 5,989 Capitalized interest (138 ) (70 ) (29 ) Interest expense, net $ 20,125 $ 11,705 $ 5,960 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 9. Derivatives Aluminum Forward Contracts From time to time we use aluminum forward contracts to hedge the fluctuations in the purchase price of aluminum extrusions we use in production. These 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. However, in 2014, we designated all of our then existing aluminum hedges as ineffective. The change in value of those aluminum forward contracts was recognized in other expense, net, on the consolidated statement of operations for the year ended January 2, 2016, and January 3, 2015, and totaled $0.4 million and $0.2 million, respectively. Interest Rate Contracts In 2013, relating to our then existing credit facility, we entered into certain interest rate derivative contracts. As a result of the termination of the related credit agreement in 2014, we marked-to-market There were no derivative financial instruments or related activity during the year ended December 31, 2016. The following represents the gains (losses) on derivative financial instruments for the years ended January 2, 2016, and January 3, 2015, 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 (Effective Portion) Location of Gain or from Accumulated OCI into Income (Effective Portion) Amount of Loss Year Ended Year Ended January 2, January 3, January 2, January 3, 2016 2015 2016 2015 Aluminum contracts $ 126 $ 346 Cost of sales $ — $ (7 ) Interest rate swap $ — $ (558 ) Interest expense, net $ — $ — Interest rate swap $ — $ — Other expense, net $ — $ (1,188 ) Location of Gain or in Income on Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) Year Ended January 2, January 3, 2016 2015 Aluminum contracts Other expense, net $ (388 ) $ (221 ) Interest rate swap Other expense, net $ — $ (314 ) Interest rate cap Other expense, net $ — $ (27 ) |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 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 During 2016, 2015, or 2014, we did not make any transfers between Level 1, Level 2 or Level 3 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. Fair Value of Financial Instruments Our financial instruments, not including derivative financial instruments, 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 $264.6 million as of December 31, 2016, compared to a principal outstanding value of $264.0 million, and $192.5 million as of January 2, 2016, compared to a principal outstanding value of $197.5 million. Fair value at January 2, 2016, was estimated based on face value, less term-loan lender fees and discount. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 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 expense allocated to continuing operations. The components of income tax expense are as follows (in thousands): Year Ended December 31, January 2, January 3, 2016 2016 2015 Current: Federal $ 4,602 $ 8,861 $ 6,346 State 921 443 — 5,523 9,304 6,346 Deferred: Federal 5,371 4,893 2,379 State 906 1,100 950 6,277 5,993 3,329 Income tax expense $ 11,800 $ 15,297 $ 9,675 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 December 31, January 2, January 3, 2016 2016 2015 Consolidated statements of income: Income tax expense relating to continuing operations $ 11,800 $ 15,297 $ 9,675 Consolidated statements of shareholders’ equity: Reversal of intraperiod tax allocation $ — $ (1,595 ) $ — Income tax expense relating to derivative financial instruments $ — $ 50 $ 431 Income tax benefit relating to share-based compensation $ (1,872 ) $ (3,840 ) $ (6,064 ) The reversal of intra-period 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 intra-period 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 December 31, January 2, January 3, 2016 2016 2015 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 % — Research activities credits (2.8 )% — — Domestic manufacturing deduction (1.8 )% (2.2 )% (2.1 )% Florida jobs creation incentive credits (0.6 )% (2.0 )% — Non-deductible — — 0.6 % Change in valuation allowance on deferred tax assets (0.2 )% 0.3 % — Non-deductible 0.2 % 0.2 % — Other (0.4 )% 0.2 % (0.2 )% 33.2 % 39.4 % 37.1 % 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. Significant components of our net deferred tax liability are as follows: December 31, January 2, 2016 2016 (in thousands) Deferred tax assets: State and federal net operating loss carryforwards $ 2,000 $ 4,735 Stock-based compensation expense 2,646 2,735 Accrued warranty 2,149 1,643 Obsolete inventory and UNICAP adjustment 503 607 Other deferrals and accruals, net 899 682 Allowance for doubtful accounts 195 152 Acquisition costs 537 261 Total deferred tax assets 8,929 10,815 Deferred tax liabilities: Trade names and other intangible assets, net (26,007 ) (26,631 ) Property, plant and equipment (10,492 ) (9,202 ) Goodwill (3,193 ) (619 ) Deferred financing costs (1,241 ) (131 ) Prepaid expenses (167 ) (126 ) Total deferred tax liabilities (41,100 ) (36,709 ) Total deferred tax liabilities, net $ (32,171 ) $ (25,894 ) Regarding tax goodwill, the amount of goodwill deductible for tax purposes was $63.8 million at the time of the 2004 PGT acquisition, which was fully amortized in the year ended January 2, 2016. We 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 was the same amount for both book and tax purposes and, therefore, no deferred tax asset or liability was 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 $6.5 million and $7.7 million at December 31, 2016, and January 2, 2016, respectively. We have goodwill deductible for tax purposes in the WinDoor acquisition as the transaction was treated as an acquisition of stock treated as a step-up Also, acquisition costs totaling $0.9 million included in selling, general, and administrative expenses on the consolidated statement of operations for the year ended December 31, 2016, and relating to legal expenses, representations and warranties insurance, diligence, and accounting services, are being deferred and amortized for tax purposes over the same period as tax deductible goodwill. See Note 4, “Acquisitions – WinDoor, Inc.”. We have goodwill deductible for tax purposes in the USI acquisition as the transaction was treated as an acquisition of assets and assumption of liabilities for both book and tax purposes. We expect to be able to deduct goodwill for tax purposes of $0.6 million from the USI transaction. See Note 4, “Acquisitions – US Impact Systems, Inc.”. The unamortized amount of this goodwill was $0.6 million at December 31, 2016 We estimate that we have $1.2 million of tax affected federal net operating loss carryforwards, composed entirely of net operating loss carryforwards acquired in the CGI acquisition, and $0.8 million of state operating loss carryforwards, as of December 31, 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 our regular net operating loss carry-forwards during 2013, for the years ended December 31, 2016, January 2, 2016, and January 2, 2015, we recognized $1.9 million, $3.8 million, and $6.1 million, respectively, of excess tax benefits (ETBs) in additional paid-in “with-and-without” ASC 740-20 At January 2, 2016, we provided for a valuation allowance against net operating losses of approximately $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. During the year ended December 31, 2016, we reduced this valuation allowance by approximately $0.1 million to reflect an increase in our estimate of net operating losses we will be able to realize in North Carolina. 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 2016 remain open for examination by the IRS due to the statute of limitations and net operating losses utilized in prior tax years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Leases We lease certain of our manufacturing facilities under operating leases. We also lease production equipment, vehicles, computer equipment, storage units and office equipment under operating leases. Our operating leases expire at various times through 2021. Lease expense was $4.2 million, $2.3 million and $1.6 million for the years ended December, 31, 2016, January 2, 2016, and January 3, 2015, respectively. Future minimum lease commitments for non-cancelable 2017 $ 3,889 2018 2,064 2019 1,669 2020 1,303 2021 143 Total $ 9,068 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 December 31, 2016, we would be required to pay $5.3 million for various materials. During the years ended December 31, 2016, January 2, 2016, and January 3, 2015, we made purchases under these programs totaling $132.8 million, $122.0 million and $108.7 million, respectively. At December 31, 2016, we had $0.3 million in standby letters of credit related to our worker’s compensation insurance coverage, and commitments to purchase equipment of $0.2 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 |
Dec. 31, 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 December 31, 2016, January 2, 2016, and January 3, 2015, there was a 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 $1.9 million, $0.7 million and $1.1 million for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, respectively. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Parties | 14. Related Parties In the ordinary course of business, we sell windows to Builders FirstSource, 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 of Builders FirstSource, Inc. Total net sales to Builders FirstSource, Inc. were $12.8 million, $7.9 million and $6.7 million for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, respectively. As of December 31, 2016, and January 2, 2016, there was $1.7 million and $0.7 million due from Builders FirstSource, Inc. included in accounts receivable in the accompanying consolidated balance sheets. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | 15. Shareholders’ Equity During 2016, we repurchased 299,988 shares of our common stock at a total cost of $2.8 million, including 288,183 shares at a total cost of $2.7 million under the plan approved by the Board of Directors discussed below, and 11,805 shares purchased at a total cost of approximately $0.1 million, and immediately retired, from employees to satisfy tax withholding obligations in connection with the vesting of restricted stock awards. 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. In the future, we may make opportunistic repurchases of our common stock as we see fit. |
Employee Stock Based Compensati
Employee Stock Based Compensation | 12 Months Ended |
Dec. 31, 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 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 976,633 shares available for grant under the 2014 Plan at December 31, 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 New Issuances During 2016, we issued a total of 292,110 shares of restricted stock awards to certain directors, executives and non-executive On March 3, 2016, we issued 251,370 shares of restricted stock to certain executive and non-executive On May 20, 2016, we issued a total of 39,004 shares of restricted stock awards to the seven board members of the Company as the non-cash On February 1, 2016, one member of the board received 1,736 shares of restricted stock representing the prorated non-cash The compensation cost that was charged against income for stock compensation plans was $1.8 million, $1.8 million and $1.2 million, respectively, for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, and is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. We recognized $1.9 million, $3.8 million, and $6.1 million in excess income tax benefits for share-based compensation in the years ended December 31, 2016, January 2, 2016, and January 3, 2015, respectively. We currently expect to satisfy share-based awards with registered shares available to be issued. We have not granted options since 2014. The fair value of stock options granted in 2014 were estimated using a Black-Scholes option-pricing model with the following weighted average assumptions: 2014: dividend yield of 0%, expected volatility of 51.19%, 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 December 31, 2016, and changes during the year then ended, is presented below: Number of Weighted Exercise Weighted Outstanding at January 2, 2016 3,170,314 $ 2.04 Exercised (537,364 ) $ 1.82 Forfeited/Expired (8,000 ) $ 3.25 Outstanding at December 31, 2016 2,624,950 $ 2.08 3.4 Exercisable at December 31, 2016 2,606,950 $ 2.03 3.4 The following table summarizes information about employee stock options outstanding at December 31, 2016, (dollars in thousands, except per share amounts): Exercise Price Remaining Outstanding Outstanding Exercisable Exercisable $1.60-$2.31 3.2 Years 2,604,950 $ 24,610 2,598,950 $ 24,553 $11.81 7.2 Years 20,000 — 8,000 — 2,624,950 $ 24,610 2,606,950 $ 24,553 The weighted average fair value of options granted during the year ended January 3, 2015, was $5.37. The aggregate intrinsic value of options outstanding and of options exercisable as of January 2, 2016, was $29.7 million and $29.5 million, respectively. 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 total grant date fair value of options vested during the years ended December 31, 2016, January 2, 2016, and January 3, 2015, was $32 thousand, $1.2 million and $1.3 million, respectively. For the year ended December 31, 2016, we received approximately $1.0 million in proceeds from the exercise of 537,364 options for which we recognized $1.9 million in excess tax benefits through additional paid in capital. The aggregate intrinsic value of stock options exercised during the year ended December 31, 2016, was $5.1 million. 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. Restricted Share Awards There were 292,110 restricted share awards granted in the year ended December 31, 2016, which will vest at various time periods through 2019. A summary of the status of restricted share awards as of December 31, 2016, and changes during the year then ended, are presented below: Number of Weighted Outstanding at January 2, 2016 342,878 $ 11.19 Granted 292,110 $ 9.38 Vested (128,590 ) $ 11.39 Forfeited/Performance adjustment (80,096 ) $ 10.31 Outstanding at December 31, 2016 426,302 $ 10.05 As of December 31, 2016, the remaining compensation cost related to non-vested |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 17. Accumulated Other Comprehensive Income (Loss) There was no activity within accumulated other comprehensive income during the year ended December 31, 2016. The following table shows the components of accumulated other comprehensive loss for 2015 and 2014: Aluminum Forward Interest (in thousands) Contracts Swap Total 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 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 $ — $ — $ — There was no reclassification activity from accumulated other comprehensive income (loss) in 2016. The follow table shows reclassifications out of accumulated other comprehensive loss for 2015, and 2014: Amounts Reclassified From Accumulated Other Comprehensive Loss Affected Line Item in Statement Year Ended January 2, January 3, 2016 2015 (in thousands) Aluminum forward contracts $ 126 $ 7 Cost of sales Tax effect (50 ) (3 ) 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 |
Dec. 31, 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 operating segment 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 December 31, January 2, January 3, 2016 2016 2015 (in millions) Product category: Impact-resistant window and door products $ 381.6 $ 319.2 $ 240.3 Non-impact 77.0 70.6 66.1 Total net sales $ 458.6 $ 389.8 $ 306.4 |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 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 2016, and 2015 (in thousands, except per share amounts): 2016 First Second Third Fourth Net sales $ 100,206 $ 119,033 $ 129,807 $ 109,504 Gross profit 29,983 37,470 41,086 31,559 Net income 1,479 7,350 10,796 4,122 Net income per share – basic $ 0.03 $ 0.15 $ 0.22 $ 0.08 Net income per share – diluted $ 0.03 $ 0.15 $ 0.21 $ 0.08 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 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. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | 20. Subsequent Event On February 17, 2017, we entered into an amendment to our 2016 Credit Agreement (the “First Amendment”), dated as of February 16, 2016, by and among the Company, the lending institutions identified in the 2016 Credit Agreement, and Deutsche Bank AG New York Branch, as Administrative Agent and Collateral Agent. The First Amendment, among other things, (a) decreases the applicable interest rate margins for the Initial Term Loans (as defined in the Credit Agreement) from (i) 4.75% to 3.75%, in the case of the Base Rate Loans (as defined in the Credit Agreement), and (ii) 5.75% to 4.75%, in the case of the Eurodollar Loans (as defined in the Credit Agreement), and (b) adds a soft call premium equal to 1.0% of the principal repaid or repriced if the Initial Term Loans are voluntarily refinanced or repriced pursuant to certain refinancing transactions within twelve months of the effective date of the First Amendment. As a result of the First Amendment, we expect interest expense to decrease approximately $2.6 million annually, with an approximate $2.3 million decrease in 2017. There were no lenders’ fees or discount relating to the First Amendment. We estimate that our total interest expense will be approximately $18.6 million in 2017, assuming no significant increase in our borrowings, including approximately $2.9 million of amortization of carryover deferred financing costs and original issue discount. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | (2) Schedule II – Valuation and Qualifying Accounts Allowance for Doubtful Accounts Balance at Added in Costs and Deductions (1) Balance at (in thousands) Year ended December 31, 2016 $ 336 $ 159 $ 67 $ (163 ) $ 399 Year ended January 2, 2016 $ 306 $ — $ 43 $ (13 ) $ 336 Year ended January 3, 2015 $ 513 $ 85 $ (216 ) $ (76 ) $ 306 (1) Represents uncollectible accounts charged against the allowance for doubtful accounts, net of recoveries. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2016, and January 2, 2016, consisted of 52 weeks. The year ended January 3, 2015, consisted of 53 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 $18.3 million, $15.4 million and $13.0 million for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, respectively. |
Advertising | Advertising We expense advertising costs as incurred. Advertising expense included in selling, general and administrative expenses was $0.2 million, $0.3 million and $0.7 million for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, 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 $1.7 million, $2.0 million and $1.8 million for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, 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 write-off December 31, January 2, 2016 2016 (in thousands) Accounts receivable $ 42,045 $ 32,119 Less: Allowance for doubtful accounts (399 ) (336 ) Accounts receivable, net $ 41,646 $ 31,783 |
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 2016, we recorded warranty expense at an average rate of 2.41% of sales. This rate is higher than the average rate of 2.12% of sales accrued in fiscal year 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 December 31, 2016 $ 4,237 $ 274 $ 11,064 $ 754 $ (10,760 ) $ 5,569 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 The accrual for warranty is included in accrued liabilities and other liabilities, depending on estimated settlement date, in the consolidated balance sheets as of December 31, 2016, and January 2, 2016. The portion of warranty expense related to the issuance of product of $6.8 million, $4.8 million and $3.1 million is included in cost of sales in the consolidated statements of operations for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, respectively. The portion related to servicing warranty claims including costs of the service department personnel is included in selling, general and administrative expenses in the consolidated statements of operations, and is $5.0 million, $3.8 million and $2.9 million, respectively, for the years ended December 31, 2016, January 2, 2016, and January 3, 2015. |
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 (first-in, first-out December 31, January 2, 2016 2016 (in thousands) Raw materials $ 24,946 $ 18,609 Work in progress 2,521 1,246 Finished goods 3,044 3,198 Inventories $ 30,511 $ 23,053 |
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. Depreciable assets are assigned estimated lives as follows: Building and improvements 5 to 40 years Leasehold improvements Shorter of 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 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 December 31, 2016, and January 2, 2016, was $16.6 million and $16.3 million, respectively. Accumulated depreciation of capitalized software was $15.4 million and $14.5 million as of December 31, 2016, and January 2, 2016, respectively. Amortization expense for capitalized software was $0.9 million, $1.1 million, and $0.5 million for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, 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 the 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 date of our fiscal fourth quarter. We consider various qualitative factors, including macroeconomic and industry conditions, financial performance of the company and changes in the stock price of the company to determine whether it is necessary to perform a quantitative test for goodwill impairment. If we believe, as a result of our qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Under the quantitative test, goodwill is tested under a two-step two-step |
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. For all periods presented, based on a qualitative assessment, we concluded that a quantitative two-step |
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 December 31, 2016, and January 2, 2016, we did not have any open forward contracts for the purchase of aluminum, or any interest rate caps or swaps. Additional information with regard to derivative instruments is contained in Note 9. |
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 dealers and distributors of building materials, and other companies in the construction industry, primarily located in Florida. 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 December 31, 2016, and January 2, 2016, such balance exceeded the insured limit by $37.5 million and $61.0 million, respectively. |
Comprehensive income | Comprehensive income The Company reports comprehensive income, defined as the total of net income and other comprehensive income, which is composed of all other non-owner The components of other comprehensive income relate to 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. |
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. |
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. Refer to Note 11 for additional information regarding the Company’s income taxes. 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. Our weighted average shares outstanding excludes underlying securities of 20 thousand, 66 thousand, and 16 thousand for the years ended December 31, 2016, January 2, 2016, and January 3, 2015, respectively, because their effects were anti-dilutive. The table below presents the calculation of basic and diluted earnings per share, including a reconciliation of weighted average common shares: Year Ended December 31, January 2, January 3, 2016 2016 2015 (in thousands, except per share amounts) Numerator: Net income $ 23,747 $ 23,552 $ 16,405 Denominator: Weighted-average common shares—Basic 48,856 48,272 47,376 Add: Dilutive effect of stock compensation plans 1,723 2,096 2,401 Weighted-average common shares—Diluted 50,579 50,368 49,777 Net income per common share: Basic $ 0.49 $ 0.49 $ 0.35 Diluted $ 0.47 $ 0.47 $ 0.33 |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In September 2015, the FASB issued ASU No. 2015-16, In April 2015, the FASB issued ASU No. 2015-03, 835-30): 2015-03) No. 2015-15, 835-30): Line-of-Credit 835-30 line-of-credit line-of-credit 2015-03 Previously As Reported Reclassified Other current assets $ 8,490 $ 8,473 Total current assets $ 126,989 $ 126,972 Other assets $ 2,291 $ 607 Total assets $ 345,729 $ 344,028 Current portion of long-term debt $ 1,966 $ 1,949 Total current liabilities $ 21,544 $ 21,527 Long-term debt, less current portion $ 190,502 $ 188,818 Total liabilities $ 238,768 $ 237,067 Total liabilities and shareholders’ equity $ 345,729 $ 344,028 In June 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-12, 2014-12 Accounting Pronouncements Recently Issued In January 2017, the FASB issued ASU 2017-04, 2017-04 In January 2017, the FASB issued ASU 2017-01, 2017-01 2017-01 In August 2016, the FASB issued ASU 2016-15, 2016-15 In June 2016, the FASB issued ASU 2016-13, 2016-13 2016-13 In March 2016, the FASB issued ASU 2016-09, paid-in In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, 2016-02 2016-02 In July 2015, the FASB issued ASU No. 2015-11, In August 2014, the FASB issued ASU No. 2014-15, 205-40): 2014-15 In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09, 2015-14, 2016-08 2016-10 2016-12 non-cash 2016-20 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Accounts, Notes Receivable and Allowance for Doubtful Accounts | December 31, January 2, 2016 2016 (in thousands) Accounts receivable $ 42,045 $ 32,119 Less: Allowance for doubtful accounts (399 ) (336 ) Accounts receivable, net $ 41,646 $ 31,783 |
Information Regarding Warranty Accrual | Accrued Warranty Beginning Acquired Charged to Adjustments Settlements End of (in thousands) Year ended December 31, 2016 $ 4,237 $ 274 $ 11,064 $ 754 $ (10,760 ) $ 5,569 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 |
Inventories | Inventories consist of the following: December 31, January 2, 2016 2016 (in thousands) Raw materials $ 24,946 $ 18,609 Work in progress 2,521 1,246 Finished goods 3,044 3,198 Inventories $ 30,511 $ 23,053 |
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. Depreciable assets are assigned estimated lives as follows: Building and improvements 5 to 40 years Leasehold improvements Shorter of 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 December 31, January 2, January 3, 2016 2016 2015 (in thousands, except per share amounts) Numerator: Net income $ 23,747 $ 23,552 $ 16,405 Denominator: Weighted-average common shares—Basic 48,856 48,272 47,376 Add: Dilutive effect of stock compensation plans 1,723 2,096 2,401 Weighted-average common shares—Diluted 50,579 50,368 49,777 Net income per common share: Basic $ 0.49 $ 0.49 $ 0.35 Diluted $ 0.47 $ 0.47 $ 0.33 |
Recent Accounting Pronounceme31
Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Summary of Reclassification of Deferred Financing Costs | 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 2, 2016, relating to the reclassification of deferred financing costs is as follows (in thousands): Previously As Reported Reclassified Other current assets $ 8,490 $ 8,473 Total current assets $ 126,989 $ 126,972 Other assets $ 2,291 $ 607 Total assets $ 345,729 $ 344,028 Current portion of long-term debt $ 1,966 $ 1,949 Total current liabilities $ 21,544 $ 21,527 Long-term debt, less current portion $ 190,502 $ 188,818 Total liabilities $ 238,768 $ 237,067 Total liabilities and shareholders’ equity $ 345,729 $ 344,028 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
WinDoor [Member] | |
Schedule of Fair Value of Assets and Liabilities Assumed | The estimated fair value of assets acquired and liabilities assumed as of the closing date, are as follows: Current Estimate Preliminary allocation: Accounts and notes receivable $ 3,882 Inventories 6,778 Prepaid expenses 246 Property and equipment 5,029 Intangible assets 47,100 Goodwill 41,856 Accounts payable and accrued liabilities (2,320 ) Purchase price $ 102,571 Consideration: Cash $ 99,571 Contingent consideration 3,000 Total fair value of consideration $ 102,571 |
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 December 31, January 2, Pro Forma Results (unaudited) 2016 2016 (in thousands, except per share amounts) Net sales $ 461,011 $ 430,626 Net income $ 22,402 $ 17,912 Net income per common share: Basic $ 0.46 $ 0.37 Diluted $ 0.44 $ 0.36 |
CGI [Member] | |
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 our 2014 fiscal year, 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 Pro Forma Results (unaudited) January 3, (in thousands, except per share amounts) Net sales $ 337,369 Net income $ 15,209 Net income per common share: Basic $ 0.32 Diluted $ 0.31 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, January 2, 2016 2016 (in thousands) Land $ 6,298 $ 6,298 Buildings and improvements 51,681 46,229 Machinery and equipment 79,421 63,290 Vehicles 11,415 9,478 Software 16,640 16,278 Construction in progress 6,319 8,317 Property, plant and equipment 171,774 149,890 Less: Accumulated depreciation (87,565 ) (78,387 ) Property, plant and equipment, net $ 84,209 $ 71,503 |
Goodwill, Trade Names and Oth34
Goodwill, Trade Names and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, January 2, Useful Life 2016 2016 (in years) (in thousands) Goodwill $ 108,060 $ 65,635 indefinite Other intangible assets: Trade names $ 75,841 $ 57,441 indefinite Customer relationships 106,647 79,700 3-10 Developed technology 3,000 1,700 9-10 Non-compete 1,668 600 2-5 Less: Accumulated amortization (66,226 ) (60,130 ) Subtotal 45,089 21,870 Other intangible assets, net $ 120,930 $ 79,311 Goodwill at January 2, 2016 $ 65,635 Increase in goodwill from allocation of WinDoor purchase price 41,856 Increase in goodwill from allocation of USI purchase price 569 Goodwill at December 31, 2016 $ 108,060 Tradenames at January 2, 2016 $ 57,441 Increase in tradenames from the acquisition of WinDoor 18,400 Tradenames at December 31, 2016 $ 75,841 |
Estimated Amortization for Future Fiscal Year | Estimated amortization of our customer relationships, developed technology and non-compete (in thousands) Total 2017 $ 6,329 2018 6,341 2019 6,282 2020 6,278 2021 5,974 Thereafter 13,885 Total $ 45,089 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of: December 31, January 2, 2016 2016 (in thousands) Accrued payroll and benefits $ 4,384 $ 4,326 Accrued warranty 4,494 3,484 Customer deposits 2,176 1,334 Accrued health claims insurance payable 668 827 Accrued interest 1,660 133 Other 1,527 1,294 $ 14,909 $ 11,398 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following: December 31, January 2, 2016 2016 (in thousands) Term loan payable with a payment of $0.675 million due quarterly. A lump sum payment of $253.8 million is due on February 15, 2022. Interest is payable quarterly at LIBOR or the prime plus an applicable margin. At December 31, 2016, the average rate is 1.00% plus a margin of 5.75%. (1) $ 263,975 $ — Term loan payable with a payment of $0.5 million due quarterly. A lump sum payment of $186.0 million was due on September 22, 2021. Interest was payable quarterly at LIBOR or the prime plus an applicable margin. At January 2, 2016, the average rate was 1.00% plus a margin of 4.25%. — 197,500 Fees, costs and original issue discount (2) (16,102 ) (6,733 ) 247,873 190,767 Less current portion of long-term debt — (1,949 ) Long-term debt, less current portion $ 247,873 $ 188,818 (1) Effective on February 17, 2017, the Company amended and repriced this term loan. Terms of the repriced facility include a one percentage-point reduction in stated interest rate to LIBOR of 1.00% plus a margin of 4.75%. The amended term loan facility has quarterly payments of principal of $0.675 million, with a lump sum payment of $253.8 million due February 15, 2022, each of which remained unchanged from the prior facility (See Note 20.). (2) Fees, costs and original issue discount – represents third-party fees, lender fees, other debt-related costs, and original issue discount, recorded as a reduction of the carrying value of the debt pursuant to ASU 2015-03, |
Activity Relating to Third-Party Fees and Costs, Lender Fees and Discount | The activity relating to third-party fees and costs, lender fees and discount for the year ended December 31, 2016, are as follows: (in thousands) Total At beginning of year as of January 2, 2016 $ 6,733 Amortization expense through refinancing (128 ) At time of refinancing 6,605 Add: Fees, costs and OID relating to the 2016 Credit Agreement 16,148 Less: Debt extinguishment costs (3,431 ) Less: Third-party fees and cost classified within SG&A (627 ) Less: Amortization expense after refinancing (2,368 ) Less: Accelerated amortization relating to debt prepayment (225 ) At end of year as of December 31, 2016 $ 16,102 |
Estimated Amortization Expense Relating to Third-Party Fees and Costs, Lender Fees and Discount and Debt Issuance Costs | Estimated amortization expense relating to third-party fees and costs, lender fees and discount for the years indicated, and which reflects the effect on the effective interest rate as a result of the repricing discussed in “Subsequent Event” in this section, as of December 31, 2016, is as follows: (in thousands) Total 2017 $ 2,855 2018 3,036 2019 3,195 2020 3,430 2021 3,185 2022 401 Total $ 16,102 |
Contractual Future Maturities of Long-term Debt | The contractual future maturities of long-term debt outstanding as of December 31, 2016, are as follows (at face value): (in thousands) Total 2017 $ — 2018 2,075 2019 2,700 2020 2,700 2021 2,700 2022 253,800 Total $ 263,975 |
Interest Expense, Net | Interest expense, net consisted of the following: Year Ended December 31, January 2, January 3, 2016 2016 2015 (in thousands) Long-term debt $ 17,351 $ 10,562 $ 4,841 Debt fees 296 269 240 Amortization of deferred financing costs and debt discount 2,721 1,014 945 Interest income (105 ) (70 ) (37 ) Interest expense 20,263 11,775 5,989 Capitalized interest (138 ) (70 ) (29 ) Interest expense, net $ 20,125 $ 11,705 $ 5,960 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gains (Losses) on Derivative Financial Instruments | The following represents the gains (losses) on derivative financial instruments for the years ended January 2, 2016, and January 3, 2015, 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 (Effective Portion) Location of Gain or from Accumulated OCI into Income (Effective Portion) Amount of Loss Year Ended Year Ended January 2, January 3, January 2, January 3, 2016 2015 2016 2015 Aluminum contracts $ 126 $ 346 Cost of sales $ — $ (7 ) Interest rate swap $ — $ (558 ) Interest expense, net $ — $ — Interest rate swap $ — $ — Other expense, net $ — $ (1,188 ) Location of Gain or in Income on Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) Year Ended January 2, January 3, 2016 2015 Aluminum contracts Other expense, net $ (388 ) $ (221 ) Interest rate swap Other expense, net $ — $ (314 ) Interest rate cap Other expense, net $ — $ (27 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense are as follows (in thousands): Year Ended December 31, January 2, January 3, 2016 2016 2015 Current: Federal $ 4,602 $ 8,861 $ 6,346 State 921 443 — 5,523 9,304 6,346 Deferred: Federal 5,371 4,893 2,379 State 906 1,100 950 6,277 5,993 3,329 Income tax expense $ 11,800 $ 15,297 $ 9,675 |
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 December 31, January 2, January 3, 2016 2016 2015 Consolidated statements of income: Income tax expense relating to continuing operations $ 11,800 $ 15,297 $ 9,675 Consolidated statements of shareholders’ equity: Reversal of intraperiod tax allocation $ — $ (1,595 ) $ — Income tax expense relating to derivative financial instruments $ — $ 50 $ 431 Income tax benefit relating to share-based compensation $ (1,872 ) $ (3,840 ) $ (6,064 ) |
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 December 31, January 2, January 3, 2016 2016 2015 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 % — Research activities credits (2.8 )% — — Domestic manufacturing deduction (1.8 )% (2.2 )% (2.1 )% Florida jobs creation incentive credits (0.6 )% (2.0 )% — Non-deductible — — 0.6 % Change in valuation allowance on deferred tax assets (0.2 )% 0.3 % — Non-deductible 0.2 % 0.2 % — Other (0.4 )% 0.2 % (0.2 )% 33.2 % 39.4 % 37.1 % |
Components of Net Deferred Tax Asset and Liability | Significant components of our net deferred tax liability are as follows: December 31, January 2, 2016 2016 (in thousands) Deferred tax assets: State and federal net operating loss carryforwards $ 2,000 $ 4,735 Stock-based compensation expense 2,646 2,735 Accrued warranty 2,149 1,643 Obsolete inventory and UNICAP adjustment 503 607 Other deferrals and accruals, net 899 682 Allowance for doubtful accounts 195 152 Acquisition costs 537 261 Total deferred tax assets 8,929 10,815 Deferred tax liabilities: Trade names and other intangible assets, net (26,007 ) (26,631 ) Property, plant and equipment (10,492 ) (9,202 ) Goodwill (3,193 ) (619 ) Deferred financing costs (1,241 ) (131 ) Prepaid expenses (167 ) (126 ) Total deferred tax liabilities (41,100 ) (36,709 ) Total deferred tax liabilities, net $ (32,171 ) $ (25,894 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Commitments for Non - Cancelable Operating Leases | Future minimum lease commitments for non-cancelable 2017 $ 3,889 2018 2,064 2019 1,669 2020 1,303 2021 143 Total $ 9,068 |
Employee Stock Based Compensa40
Employee Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2016, and changes during the year then ended, is presented below: Number of Weighted Exercise Weighted Outstanding at January 2, 2016 3,170,314 $ 2.04 Exercised (537,364 ) $ 1.82 Forfeited/Expired (8,000 ) $ 3.25 Outstanding at December 31, 2016 2,624,950 $ 2.08 3.4 Exercisable at December 31, 2016 2,606,950 $ 2.03 3.4 |
Summary of Information about Employee Stock Options Outstanding | The following table summarizes information about employee stock options outstanding at December 31, 2016, (dollars in thousands, except per share amounts): Exercise Price Remaining Outstanding Outstanding Exercisable Exercisable $1.60-$2.31 3.2 Years 2,604,950 $ 24,610 2,598,950 $ 24,553 $11.81 7.2 Years 20,000 — 8,000 — 2,624,950 $ 24,610 2,606,950 $ 24,553 |
Summary of the Status of Restricted Share Awards | A summary of the status of restricted share awards as of December 31, 2016, and changes during the year then ended, are presented below: Number of Weighted Outstanding at January 2, 2016 342,878 $ 11.19 Granted 292,110 $ 9.38 Vested (128,590 ) $ 11.39 Forfeited/Performance adjustment (80,096 ) $ 10.31 Outstanding at December 31, 2016 426,302 $ 10.05 |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table shows the components of accumulated other comprehensive loss for 2015 and 2014: Aluminum Forward Interest (in thousands) Contracts Swap Total 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 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 | The follow table shows reclassifications out of accumulated other comprehensive loss for 2015, and 2014: Amounts Reclassified From Accumulated Other Comprehensive Loss Affected Line Item in Statement Year Ended January 2, January 3, 2016 2015 (in thousands) Aluminum forward contracts $ 126 $ 7 Cost of sales Tax effect (50 ) (3 ) 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 |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of Sales by Product Group | Sales by product group are as follows: Year Ended December 31, January 2, January 3, 2016 2016 2015 (in millions) Product category: Impact-resistant window and door products $ 381.6 $ 319.2 $ 240.3 Non-impact 77.0 70.6 66.1 Total net sales $ 458.6 $ 389.8 $ 306.4 |
Unaudited Quarterly Financial43
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Consolidated Quarterly Results of Operations | The following tables summarize the consolidated quarterly results of operations for 2016, and 2015 (in thousands, except per share amounts): 2016 First Second Third Fourth Net sales $ 100,206 $ 119,033 $ 129,807 $ 109,504 Gross profit 29,983 37,470 41,086 31,559 Net income 1,479 7,350 10,796 4,122 Net income per share – basic $ 0.03 $ 0.15 $ 0.22 $ 0.08 Net income per share – diluted $ 0.03 $ 0.15 $ 0.21 $ 0.08 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 |
Description of Business - Addit
Description of Business - Additional Information (Detail) $ in Thousands | Dec. 31, 2016USD ($) | Aug. 31, 2016USD ($) | Jul. 25, 2016USD ($) | Feb. 16, 2016USD ($) | Dec. 31, 2016USD ($)OperationsPlant |
Description Of Business [Line Items] | |||||
Date of Acquisition of CGI | Sep. 22, 2014 | ||||
Estimated fair value of contingent consideration | $ | $ 3,000 | ||||
Number of manufacturing operations | Operations | 4 | ||||
North Venice [Member] | |||||
Description Of Business [Line Items] | |||||
Number of manufacturing operations | Operations | 1 | ||||
Greater Miami [Member] | |||||
Description Of Business [Line Items] | |||||
Number of manufacturing operations | Operations | 2 | ||||
Orlando [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 | Plant | 2 | ||||
Glass Tempering and Laminating Plant [Member] | North Venice [Member] | |||||
Description Of Business [Line Items] | |||||
Number of plants | Plant | 2 | ||||
Insulation Glass Plants [Member] | |||||
Description Of Business [Line Items] | |||||
Number of plants | Plant | 1 | ||||
Insulation Glass Plants [Member] | North Venice [Member] | |||||
Description Of Business [Line Items] | |||||
Number of plants | Plant | 1 | ||||
WinDoor [Member] | |||||
Description Of Business [Line Items] | |||||
Fair value of consideration | $ | $ 102,571 | $ 102,600 | |||
Effective date of acquisition | Feb. 16, 2016 | ||||
Estimated fair value of contingent consideration | $ | $ 3,000 | $ 3,000 | |||
US Impact Systems Inc [Member] | |||||
Description Of Business [Line Items] | |||||
Fair value of consideration | $ | $ 1,900 | $ 1,900 | |||
Effective date of acquisition | Aug. 31, 2016 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Additional Information (Detail) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)shares | Jan. 02, 2016USD ($)shares | Jan. 03, 2015USD ($)Segmentshares | |
Business Description And Accounting Policies [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Shipping and handling costs | $ 18,300,000 | $ 15,400,000 | $ 13,000,000 |
Advertising Expense | 200,000 | 300,000 | 700,000 |
Research and development costs | $ 1,700,000 | $ 2,000,000 | 1,800,000 |
Original maturity date of cash and cash equivalents | Three months or less | ||
Warranty expense, average rate | 2.41% | 2.12% | |
Portion of warranty expense related to issuance of product | $ 6,800,000 | $ 4,800,000 | 3,100,000 |
Servicing warranty claims | 5,000,000 | 3,800,000 | 2,900,000 |
Capitalization of software | 16,600,000 | 16,300,000 | |
Accumulated depreciation of capitalized software | 15,400,000 | 14,500,000 | |
Amortization expense for capitalized software | 900,000 | 1,100,000 | $ 500,000 |
The amount of insured limit exceeds by the balance | 37,500,000 | $ 61,000,000 | |
Material liability for unrecognized tax benefits | $ 0 | ||
Weighted average shares outstanding excluding underlying securities | shares | 20 | 66 | 16 |
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 | Dec. 31, 2016 | Jan. 02, 2016 |
Accounting Policies [Abstract] | ||
Accounts receivable | $ 42,045 | $ 32,119 |
Less: Allowance for doubtful accounts | (399) | (336) |
Accounts receivable, net | $ 41,646 | $ 31,783 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Information Regarding Warranty Accrual (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Guarantees [Abstract] | |||
Accrued Warranty, Beginning of Period | $ 4,237 | $ 3,302 | $ 2,666 |
Accrued Warranty, Acquired | 274 | 239 | |
Accrued Warranty, Charged to Expense | 11,064 | 8,256 | 5,492 |
Accrued Warranty, Adjustments | 754 | 332 | 473 |
Accrued Warranty, Settlements | (10,760) | (7,653) | (5,568) |
Accrued Warranty, End of Period | $ 5,569 | $ 4,237 | $ 3,302 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 24,946 | $ 18,609 |
Work in progress | 2,521 | 1,246 |
Finished goods | 3,044 | 3,198 |
Inventories | $ 30,511 | $ 23,053 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 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 | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Numerator: | |||||||||||
Net income | $ 4,122 | $ 10,796 | $ 7,350 | $ 1,479 | $ 3,774 | $ 6,346 | $ 6,780 | $ 6,652 | $ 23,747 | $ 23,552 | $ 16,405 |
Denominator: | |||||||||||
Weighted-average common shares-Basic | 48,856 | 48,272 | 47,376 | ||||||||
Add: Dilutive effect of stock compensation plans | 1,723 | 2,096 | 2,401 | ||||||||
Weighted-average common shares-Diluted | 50,579 | 50,368 | 49,777 | ||||||||
Net income per common share: | |||||||||||
Basic | $ 0.08 | $ 0.22 | $ 0.15 | $ 0.03 | $ 0.08 | $ 0.13 | $ 0.14 | $ 0.14 | $ 0.49 | $ 0.49 | $ 0.35 |
Diluted | $ 0.08 | $ 0.21 | $ 0.15 | $ 0.03 | $ 0.07 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.47 | $ 0.47 | $ 0.33 |
Recent Accounting Pronounceme51
Recent Accounting Pronouncements - Summary of Reclassification of Deferred Financing Costs (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other current assets | $ 8,365 | $ 8,473 |
Total current assets | 122,377 | 126,972 |
Other assets | 1,072 | 607 |
Total assets | 436,648 | 344,028 |
Current portion of long-term debt | 1,949 | |
Total current liabilities | 22,803 | 21,527 |
Long-term debt, less current portion | 247,873 | 188,818 |
Total liabilities | 304,129 | 237,067 |
Total liabilities and shareholders' equity | $ 436,648 | 344,028 |
Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other current assets | 8,490 | |
Total current assets | 126,989 | |
Other assets | 2,291 | |
Total assets | 345,729 | |
Current portion of long-term debt | 1,966 | |
Total current liabilities | 21,544 | |
Long-term debt, less current portion | 190,502 | |
Total liabilities | 238,768 | |
Total liabilities and shareholders' equity | $ 345,729 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Aug. 31, 2016 | Jul. 25, 2016 | Feb. 16, 2016 | Sep. 22, 2014 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 31, 2004 |
Business Acquisition [Line Items] | |||||||||||||||||
Estimated fair value of contingent consideration | $ 3,000,000 | ||||||||||||||||
Goodwill | $ 108,060,000 | $ 108,060,000 | $ 65,635,000 | $ 108,060,000 | $ 65,635,000 | ||||||||||||
Goodwill deductible for tax purposes | $ 63,800,000 | ||||||||||||||||
Earn-out contingency liability, basis for amount | Pursuant to the SPA, had WinDoor’s 2016 calendar-year sales (including both the pre-acquisition and post-acquisition periods of 2016) reached at least $46.0 million, the Company was required to pay 5.9% of WinDoor’s sales, or approximately $2.7 million, up to a maximum sales amount of $51.0 million, or approximately $3.0 million. If WinDoor’s 2016 calendar-year sales were less than $46.0 million, no payment was required. The potential undiscounted amount of all future payments that could be required to be paid under the contingent earn-out consideration arrangement was between $0 and $3.0 million. We had recorded an earn-out contingency liability of $3.0 million on the closing date, which represented its then estimated fair value using undiscounted cash flows, based on probability adjusted level of revenues with a range whose minimum was $51.0 million. | ||||||||||||||||
Net sales | 109,504,000 | $ 129,807,000 | $ 119,033,000 | $ 100,206,000 | 93,008,000 | $ 100,668,000 | $ 100,833,000 | $ 95,301,000 | $ 458,550,000 | 389,810,000 | $ 306,388,000 | ||||||
Increase in acquired deferred tax assets with a corresponding decrease to goodwill | $ 900,000 | ||||||||||||||||
Net income | 4,122,000 | $ 10,796,000 | $ 7,350,000 | $ 1,479,000 | $ 3,774,000 | $ 6,346,000 | $ 6,780,000 | $ 6,652,000 | 23,747,000 | $ 23,552,000 | 16,405,000 | ||||||
CGI [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition of CGI, transaction value | $ 110,400,000 | ||||||||||||||||
Business combination, acquisition related costs | 1,700,000 | ||||||||||||||||
Goodwill | 65,635,000 | 65,635,000 | 65,635,000 | ||||||||||||||
Goodwill deductible for tax purposes | 9,300,000 | 9,300,000 | 9,300,000 | ||||||||||||||
Net sales | 13,300,000 | ||||||||||||||||
Intangible assets | 45,300,000 | 45,300,000 | 45,300,000 | ||||||||||||||
Accounts payable and accrued liabilities | 4,136,000 | 4,136,000 | 4,136,000 | ||||||||||||||
Net income | $ 148,000 | ||||||||||||||||
WinDoor [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition of CGI, transaction value | 102,571,000 | $ 102,600,000 | |||||||||||||||
Cash payment to acquire business | 99,571,000 | 43,500,000 | |||||||||||||||
Estimated fair value of contingent consideration | 3,000,000 | $ 3,000,000 | |||||||||||||||
Business combination, acquisition related costs | 900,000 | ||||||||||||||||
Goodwill | 41,856,000 | 41,856,000 | 41,856,000 | ||||||||||||||
Goodwill deductible for tax purposes | 38,900,000 | 38,900,000 | 38,900,000 | ||||||||||||||
Earn-out contingency liability | 3,000,000 | 3,000,000 | $ 3,000,000 | ||||||||||||||
percentage of earn out contingency payment on sales revenue goods net | 5.90% | ||||||||||||||||
Fair value of contingent consideration, undiscounted low range of estimates | $ 0 | ||||||||||||||||
Fair value of contingent consideration, undiscounted high range of estimates | 3,000,000 | ||||||||||||||||
Fair value of contingent consideration based on undiscounted probability adjusted minimum revenue estimates | 51,000,000 | 51,000,000 | 51,000,000 | ||||||||||||||
Amount of earn out contingency payment on sales revenue goods net when sales were less than $46 million | 0 | ||||||||||||||||
Adjustment to Goodwill deductible for tax purposes | 3,000,000 | ||||||||||||||||
Intangible assets | 47,100,000 | 47,100,000 | 47,100,000 | ||||||||||||||
Accounts payable and accrued liabilities | 2,320,000 | 2,320,000 | 2,320,000 | ||||||||||||||
WinDoor [Member] | Minimum [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Sales revenue achievement level for recording earn out contingency payment | 46,000,000 | ||||||||||||||||
Amount of earn out contingency payment on sales revenue goods net | 2,700,000 | ||||||||||||||||
WinDoor [Member] | Maximum [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Sales revenue achievement level for recording earn out contingency payment | 51,000,000 | ||||||||||||||||
Amount of earn out contingency payment on sales revenue goods net | 3,000,000 | ||||||||||||||||
Net sales | 46,000,000 | ||||||||||||||||
US Impact Systems Inc [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition of CGI, transaction value | $ 1,900,000 | $ 1,900,000 | |||||||||||||||
Goodwill | 600,000 | ||||||||||||||||
Goodwill deductible for tax purposes | $ 600,000 | $ 600,000 | $ 600,000 | ||||||||||||||
Current and other assets | 1,800,000 | ||||||||||||||||
Intangible assets | 600,000 | ||||||||||||||||
Accounts payable and accrued liabilities | $ 1,200,000 |
Acquisitions - Schedule of Fair
Acquisitions - Schedule of Fair Value of Assets and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Feb. 16, 2016 | Sep. 22, 2014 | Dec. 31, 2016 | Jan. 02, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 108,060 | $ 108,060 | $ 65,635 | ||
Contingent consideration | 3,000 | ||||
WinDoor [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts and notes receivable | 3,882 | 3,882 | |||
Inventories | 6,778 | 6,778 | |||
Prepaid expenses | 246 | 246 | |||
Property and equipment | 5,029 | 5,029 | |||
Intangible assets | 47,100 | 47,100 | |||
Goodwill | 41,856 | 41,856 | |||
Accounts payable and accrued liabilities | (2,320) | (2,320) | |||
Purchase price | 102,571 | 102,571 | |||
Cash | 99,571 | $ 43,500 | |||
Contingent consideration | 3,000 | 3,000 | |||
Total fair value of consideration | 102,571 | $ 102,600 | |||
CGI [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts and notes receivable | 4,156 | 4,156 | |||
Inventories | 3,229 | 3,229 | |||
Prepaid expenses | 303 | 303 | |||
Property and equipment | 1,709 | 1,709 | |||
Intangible assets | 45,300 | 45,300 | |||
Other assets | 65 | 65 | |||
Goodwill | 65,635 | 65,635 | |||
Deferred income taxes | (5,472) | (5,472) | |||
Accounts payable and accrued liabilities | (4,136) | (4,136) | |||
Other liabilities | (351) | (351) | |||
Purchase price | $ 110,438 | $ 110,438 | |||
Total fair value of consideration | $ 110,400 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro forma Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
WinDoor [Member] | |||
Business Acquisition [Line Items] | |||
Net sales | $ 461,011 | $ 430,626 | |
Net income | $ 22,402 | $ 17,912 | |
Net income per common share: | |||
Basic | $ 0.46 | $ 0.37 | |
Diluted | $ 0.44 | $ 0.36 | |
CGI [Member] | |||
Business Acquisition [Line Items] | |||
Net sales | $ 337,369 | ||
Net income | $ 15,209 | ||
Net income per common share: | |||
Basic | $ 0.32 | ||
Diluted | $ 0.31 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 171,774 | $ 149,890 |
Less: Accumulated depreciation | (87,565) | (78,387) |
Property, plant and equipment, net | 84,209 | 71,503 |
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 | 51,681 | 46,229 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 79,421 | 63,290 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 11,415 | 9,478 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 16,640 | 16,278 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 6,319 | $ 8,317 |
Goodwill, Trade Names, and Othe
Goodwill, Trade Names, and Other Intangible Assets - Schedule of Trade Names and Other Intangible Assets Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2016 | Aug. 31, 2016 | Jan. 02, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | $ 65,635 | $ 108,060 | $ 65,635 | |
Less: Accumulated amortization | (66,226) | (60,130) | ||
Subtotal | 45,089 | 21,870 | ||
Other intangible assets, net | 120,930 | 79,311 | ||
Goodwill at January 2, 2016 | 65,635 | |||
Goodwill at December 31, 2016 | 108,060 | |||
Tradenames at January 2, 2016 | 57,441 | |||
Tradenames at December 31, 2016 | $ 75,841 | |||
Customer Relationships [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Customer relationships | 106,647 | 79,700 | ||
Customer Relationships [Member] | Minimum [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Initial Useful Life (in years) | 3 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 | 3,000 | 1,700 | ||
Developed Technology [Member] | Minimum [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Initial Useful Life (in years) | 9 years | |||
Developed Technology [Member] | Maximum [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Initial Useful Life (in years) | 10 years | |||
Noncompete Agreements [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Customer relationships | 1,668 | 600 | ||
Noncompete Agreements [Member] | Minimum [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Initial Useful Life (in years) | 2 years | |||
Noncompete Agreements [Member] | Maximum [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Initial Useful Life (in years) | 5 years | |||
Trade Names [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Trade names | 75,841 | $ 57,441 | ||
WinDoor [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | $ 41,856 | $ 41,856 | ||
Increase in goodwill from allocation of purchase price | 41,856 | |||
Goodwill at December 31, 2016 | 41,856 | |||
Increase in trade names from the acquisition of WinDoor | 18,400 | |||
US Impact Systems Inc [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | $ 600 | |||
Increase in goodwill from allocation of purchase price | $ 569 |
Goodwill, Trade Names and Oth57
Goodwill, Trade Names and Other Intangible Assets - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($)Indicator | Jan. 02, 2016USD ($)Indicator | Jan. 03, 2015USD ($)Indicator | |
Intangible Liability Disclosure [Abstract] | |||
Impairment indicators | Indicator | 0 | 0 | 0 |
Impairment charges | $ | $ 0 | $ 0 | $ 0 |
Goodwill, Trade Names and Oth58
Goodwill, Trade Names and Other Intangible Assets - Estimated Amortization for Future Fiscal Year (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 6,329 | |
2,018 | 6,341 | |
2,019 | 6,282 | |
2,020 | 6,278 | |
2,021 | 5,974 | |
Thereafter | 13,885 | |
Subtotal | $ 45,089 | $ 21,870 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Payables and Accruals [Abstract] | ||
Accrued payroll and benefits | $ 4,384 | $ 4,326 |
Accrued warranty | 4,494 | 3,484 |
Customer deposits | 2,176 | 1,334 |
Accrued health claims insurance payable | 668 | 827 |
Accrued interest | 1,660 | 133 |
Other | 1,527 | 1,294 |
Total | $ 14,909 | $ 11,398 |
Long Term Debt - Schedule of Lo
Long Term Debt - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Debt Instrument [Line Items] | ||
Long term debt | $ 263,975 | $ 197,500 |
Fees, costs and original issue discount | (16,102) | (6,733) |
Long term debt | 247,873 | 190,767 |
Less current portion of long-term debt | (1,949) | |
Long-term debt, less current portion | 247,873 | 188,818 |
Term Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | 264,000 | |
Term Notes Payable [Member] | Term Loan Payable with 0.675 [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 263,975 | |
Term Notes Payable [Member] | Term Loan Payable with 0.5 [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 197,500 |
Long Term Debt - Schedule of 61
Long Term Debt - Schedule of Long-term Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Debt Instrument [Line Items] | ||
Term note payable in quarterly installments | $ 2,000 | |
Lump sum payment due | 263,975 | $ 197,500 |
Term Loan Payable with 0.675 [Member] | ||
Debt Instrument [Line Items] | ||
Term note payable in quarterly installments | $ 675 | $ 675 |
Average rate of interest payable | 1.00% | 1.00% |
Average rate margin of interest payable | 5.75% | 5.75% |
Term Loan Payable with 0.675 [Member] | Due on February 15, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Lump sum payment due | $ 253,800 | $ 253,800 |
Term Loan Payable with 0.5 [Member] | ||
Debt Instrument [Line Items] | ||
Term note payable in quarterly installments | $ 500 | $ 500 |
Average rate of interest payable | 1.00% | 1.00% |
Average rate margin of interest payable | 4.25% | 4.25% |
Term Loan Payable with 0.5 [Member] | Due on September 22, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Lump sum payment due | $ 186,000 | $ 186,000 |
February 17, 2017 Amended and Repriced Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Term note payable in quarterly installments | $ 675 | |
Average rate of interest payable | 1.00% | |
Average rate margin of interest payable | 4.75% | |
Debt instrument maturity date | Feb. 15, 2022 | |
February 17, 2017 Amended and Repriced Term Loan [Member] | Due on February 15, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Lump sum payment due | $ 253,800 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Sep. 30, 2016 | Feb. 16, 2016 | Sep. 22, 2014 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Line of Credit Facility [Line Items] | ||||||
Letters of credit outstanding | $ 300,000 | |||||
Face value of debt | 263,975,000 | $ 197,500,000 | ||||
Scheduled debt repayments | 2,000,000 | |||||
Wrote-off lenders fees and discount relating to term-loan portion | $ 20,263,000 | $ 11,775,000 | $ 5,989,000 | |||
Minimum percentage of revolving credit facility as per financial covenant | 20.00% | |||||
LIBOR [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 5.75% | |||||
LIBOR [Member] | Repricing Amendment [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 4.75% | |||||
Base Rate [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 4.75% | |||||
Base Rate [Member] | Repricing Amendment [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 3.75% | |||||
Credit Agreements [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Face value of debt | $ 270,000,000 | |||||
Term Notes Payable [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Face value of debt | $ 264,000,000 | |||||
Senior Secured Credit Facilities [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount available under credit facility | $ 310,000,000 | $ 235,000,000 | ||||
Term Loan Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount available under credit facility | $ 270,000,000 | $ 200,000,000 | ||||
Credit facility amortization percentage | 1.00% | 1.00% | ||||
Maturity term of credit agreement | 7 years | |||||
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 | $ 40,000,000 | $ 35,000,000 | ||||
Credit facility amortization percentage | 0.50% | |||||
Credit available on revolver | $ 39,700,000 | |||||
Maturity term of credit agreement | 5 years | |||||
Letter Of Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility amortization percentage | 5.75% | |||||
Facing fee per annum | 0.125% | |||||
2016 Credit Agreement [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Accrued interest | $ 1,700,000 | |||||
Voluntary prepayment of debt | $ 4,000,000 | |||||
2016 Credit Agreement [Member] | February 2016 Refinancing [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Third-party fees and costs | 1,500,000 | |||||
Additional lender fees and discount | 14,600,000 | |||||
2016 Credit Agreement [Member] | Lenders Fees and Discount [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Wrote-off lenders fees and discount relating to term-loan portion | $ 200,000 | |||||
2016 Credit Agreement [Member] | Base Rate [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 4.75% |
Long-Term Debt - Activity Relat
Long-Term Debt - Activity Relating to Third-Party Fees and Costs, Lender Fees and Discount (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |
At beginning of year as of January 2, 2016 | $ 6,733 |
Amortization expense through refinancing | (128) |
At time of refinancing | 6,605 |
Less: Debt extinguishment costs | (3,431) |
Less: Amortization expense after refinancing | (2,368) |
Less: Accelerated amortization relating to debt prepayment | (225) |
At end of year as of December 31, 2016 | 16,102 |
Selling, General and Administrative Expenses [Member] | |
Debt Instrument [Line Items] | |
Less: Third-party fees and cost classified within SG&A | (627) |
2016 Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Add: Fees, costs and OID relating to the 2016 Credit Agreement | $ 16,148 |
Long-Term Debt - Estimated Amor
Long-Term Debt - Estimated Amortization Expense Relating to Third-Party Fees and Costs, Lender Fees and Discount (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Debt Disclosure [Abstract] | ||
2,017 | $ 2,855 | |
2,018 | 3,036 | |
2,019 | 3,195 | |
2,020 | 3,430 | |
2,021 | 3,185 | |
2,022 | 401 | |
Total | $ 16,102 | $ 6,605 |
Long-Term Debt - Contractual Fu
Long-Term Debt - Contractual Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Debt Disclosure [Abstract] | ||
2,017 | $ 0 | |
2,018 | 2,075 | |
2,019 | 2,700 | |
2,020 | 2,700 | |
2,021 | 2,700 | |
2,022 | 253,800 | |
Total | $ 263,975 | $ 197,500 |
Long Term Debt - Interest Expen
Long Term Debt - Interest Expense, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Debt Disclosure [Abstract] | |||
Long-term debt | $ 17,351 | $ 10,562 | $ 4,841 |
Debt fees | 296 | 269 | 240 |
Amortization of deferred financing costs and debt discount | 2,721 | 1,014 | 945 |
Interest income | (105) | (70) | (37) |
Interest expense | 20,263 | 11,775 | 5,989 |
Capitalized interest | (138) | (70) | (29) |
Interest expense, net | $ 20,125 | $ 11,705 | $ 5,960 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Derivative [Line Items] | |||
Derivative financial instruments or related activity | $ 0 | ||
Aluminum Contracts [Member] | Nonoperating Income (Expense) [Member] | |||
Derivative [Line Items] | |||
Other expense, net | $ 400,000 | $ 200,000 | |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Termination payment for interest rate derivative | $ 1,400,000 |
Derivatives - Gains (Losses) on
Derivatives - Gains (Losses) on Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
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 |
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | (7) | |
Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) | $ (388) | (221) |
Interest Rate Cap [Member] | Other Expense, net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) | (27) | |
Interest Rate Swap [Member] | Other Expense, net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | (1,188) | |
Interest Rate Swap [Member] | Interest Expense, Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | (558) | |
Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) | $ (314) |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Debt Instrument Fair Value Carrying Value [Abstract] | |||
Fair value of assets, level 1 to level 2 transfers | $ 0 | $ 0 | $ 0 |
Fair value of current long-term debt | 264,600,000 | 192,500,000 | |
Principal outstanding value | $ 263,975,000 | $ 197,500,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 4,602 | $ 8,861 | $ 6,346 |
State | 921 | 443 | |
Total current | 5,523 | 9,304 | 6,346 |
Federal | 5,371 | 4,893 | 2,379 |
State | 906 | 1,100 | 950 |
Total deferred | 6,277 | 5,993 | 3,329 |
Income tax expense | $ 11,800 | $ 15,297 | $ 9,675 |
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 | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Consolidated statements of income: | |||
Income tax expense relating to continuing operations | $ 11,800 | $ 15,297 | $ 9,675 |
Consolidated statements of shareholders' equity: | |||
Reversal of intraperiod tax allocation | (1,595) | ||
Income tax expense relating to derivative financial instruments | 50 | 431 | |
Income tax benefit relating to share-based compensation | $ (1,872) | $ (3,840) | $ (6,064) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 31, 2004 | |
Income Taxes [Line Items] | ||||
Income tax expense from reversal of intra-period income tax allocation | $ 1,600,000 | |||
Goodwill deductible for tax purpose | $ 63,800,000 | |||
Operating loss carryforwards | $ 1,900,000 | 3,800,000 | $ 6,100,000 | |
Operating loss carryforwards, expiration date | 2,027 | |||
Valuation allowance | 0 | |||
North Carolina [Member] | ||||
Income Taxes [Line Items] | ||||
Valuation allowance against net operating losses | 100,000 | |||
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 | 2,016 | |||
CGI [Member] | ||||
Income Taxes [Line Items] | ||||
Goodwill deductible for tax purpose | $ 9,300,000 | |||
Deferred tax asset and liability | 0 | |||
Unamortized goodwill | $ 6,500,000 | $ 7,700,000 | ||
Goodwill remaining amortization period for tax purposes | 7 years 4 months 24 days | |||
Business combination, acquisition related costs | $ 1,700,000 | |||
WinDoor [Member] | ||||
Income Taxes [Line Items] | ||||
Goodwill deductible for tax purpose | $ 38,900,000 | |||
Unamortized goodwill | 36,500,000 | |||
Business combination, acquisition related costs | 900,000 | |||
US Impact Systems Inc [Member] | ||||
Income Taxes [Line Items] | ||||
Goodwill deductible for tax purpose | 600,000 | |||
Unamortized goodwill | 600,000 | |||
Domestic Country [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 1,200,000 | |||
State [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 800,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
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% | ||
Research activities credits | (2.80%) | ||
Domestic manufacturing deduction | (1.80%) | (2.20%) | (2.10%) |
Florida jobs creation incentive credits | (0.60%) | (2.00%) | |
Non-deductible acquisition costs | 0.60% | ||
Change in valuation allowance on deferred tax assets | (0.20%) | 0.30% | |
Non-deductible expenses | 0.20% | 0.20% | |
Other | (0.40%) | 0.20% | (0.20%) |
Total statutory federal income tax rate | 33.20% | 39.40% | 37.10% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Asset and Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Deferred tax assets: | ||
State and federal net operating loss carryforwards | $ 2,000 | $ 4,735 |
Stock-based compensation expense | 2,646 | 2,735 |
Accrued warranty | 2,149 | 1,643 |
Obsolete inventory and UNICAP adjustment | 503 | 607 |
Other deferrals and accruals, net | 899 | 682 |
Allowance for doubtful accounts | 195 | 152 |
Acquisition costs | 537 | 261 |
Total deferred tax assets | 8,929 | 10,815 |
Deferred tax liabilities: | ||
Trade names and other intangible assets, net | (26,007) | (26,631) |
Property, plant and equipment | (10,492) | (9,202) |
Goodwill | (3,193) | (619) |
Deferred financing costs | (1,241) | (131) |
Prepaid expenses | (167) | (126) |
Total deferred tax liabilities | (41,100) | (36,709) |
Total deferred tax liabilities, net | $ (32,171) | $ (25,894) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Lease expenses | $ 4.2 | $ 2.3 | $ 1.6 |
Amount required for payment of materials | 5.3 | ||
Purchase of materials | 132.8 | $ 122 | $ 108.7 |
Letters of credit | 0.3 | ||
Commitments to purchase equipment | $ 0.2 |
Commitments and Contingencies76
Commitments and Contingencies - Future Minimum Lease Commitments for Non-Cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 3,889 |
2,018 | 2,064 |
2,019 | 1,669 |
2,020 | 1,303 |
2,021 | 143 |
Total | $ 9,068 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
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 | $ 1.9 | $ 0.7 | $ 1.1 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - Builders FirstSource, Inc [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Related Party Transaction [Line Items] | |||
Total net sales to Builders FirstSource | $ 12.8 | $ 7.9 | $ 6.7 |
Accounts receivable due from Builders FirstSource | $ 1.7 | $ 0.7 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Oct. 28, 2015 | |
Schedule Of Equity [Line Items] | ||||
Share repurchased | 299,988 | |||
Acquisition of treasury stock | $ 2,847,000 | $ 44,000 | $ 1,025,000 | |
Stock Repurchase Program, Authorized Amount | $ 20,000,000 | |||
2015 Share Repurchase Program [Member] | ||||
Schedule Of Equity [Line Items] | ||||
Share repurchased | 288,183 | |||
Acquisition of treasury stock | $ 2,700,000 | |||
Restricted Stock [Member] | ||||
Schedule Of Equity [Line Items] | ||||
Share repurchased | 11,805 | |||
Acquisition of treasury stock | $ 100,000 |
Employee Stock Based Compensa80
Employee Stock Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | May 20, 2016Members$ / sharesshares | Mar. 03, 2016$ / sharesshares | Feb. 01, 2016Members$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Jan. 02, 2016USD ($)$ / sharesshares | Jan. 03, 2015USD ($)$ / sharesshares | Jan. 02, 2015 | Mar. 28, 2016shares | May 07, 2014shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Outstanding Intrinsic Value | $ 24,610 | ||||||||
Exercisable options intrinsic value | 24,553 | ||||||||
Aggregate intrinsic value of stock options exercised | $ 5,100 | $ 10,800 | $ 7,900 | ||||||
Number of shares exercised | shares | 537,364 | 1,033,750 | 906,573 | ||||||
Proceeds from exercise of stock options | $ 981 | $ 2,192 | $ 1,691 | ||||||
One Member of Board of Directors [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Lapsing period of restrictions related to restricted stock issued | May 22, 2016 | ||||||||
Restricted Stock Award [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | shares | 39,004 | 292,110 | |||||||
Weighted average fair value of common stock | $ / shares | $ 10.32 | $ 10.05 | $ 11.19 | ||||||
Number of non-management members of board of directors | Members | 7 | ||||||||
Fair value of common stock | $ / shares | $ 11.39 | ||||||||
Total unrecognized compensation | $ 1,000 | ||||||||
Weighted-average period | 1 year 2 months 12 days | ||||||||
Restricted Stock Award [Member] | Seven Members of Board of Directors [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Lapsing period of restrictions related to restricted stock issued | 1 year | ||||||||
Restricted Stock Award [Member] | One Member of Board of Directors [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | shares | 1,736 | ||||||||
Number of non-management members of board of directors | Members | 1 | ||||||||
Fair value of common stock | $ / shares | $ 9.80 | ||||||||
Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | shares | 251,370 | ||||||||
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% of the target amount and only related to half of the initial March 3, 2016, issuance of 251,370 shares, or 125,685 shares. | ||||||||
Stock Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted-average fair value of options granted | $ / shares | $ 5.37 | ||||||||
Outstanding Intrinsic Value | $ 29,700 | $ 32,500 | |||||||
Exercisable options intrinsic value | 29,500 | 24,300 | |||||||
Total fair value of options vested | $ 32,000 | 1,200 | 1,300 | ||||||
Tax benefit realized | 1,900 | 3,800 | 1,700 | ||||||
Proceeds from exercise of stock options | $ 1,000 | 2,200 | 6,100 | ||||||
2014 Omnibus Equity Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common shares available for grant | shares | 976,633 | 1,500,000 | |||||||
Maximum number of shares | shares | 1,500,000 | ||||||||
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 | shares | 292,110 | ||||||||
Weighted average fair value of common stock | $ / shares | $ 9.38 | ||||||||
2006 Equity Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common shares available for grant | shares | 0 | ||||||||
Compensation cost charged against income for stock compensation plan | $ 1,800 | 1,800 | 1,200 | ||||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 1,900 | $ 3,800 | $ 6,100 | ||||||
Options granted | shares | 0 | 0 | 0 | ||||||
Dividend yield | 0.00% | ||||||||
Expected volatility | 51.19% | ||||||||
Risk-free interest rate | 1.54% | ||||||||
Expected life | 5 years | ||||||||
2015 Omnibus Incentive Plan [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | shares | 125,685 | ||||||||
Weighted average fair value of common stock | $ / shares | $ 9.23 |
Employee Stock Based Compensa81
Employee Stock Based Compensation - Summary of the Status of Stock Options (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of Shares, Outstanding Beginning balance | 3,170,314 | ||
Number of Shares, Exercised | (537,364) | (1,033,750) | (906,573) |
Number of Shares, Forfeited/Expired | (8,000) | ||
Number of Shares, Outstanding Ending balance | 2,624,950 | 3,170,314 | |
Number of Shares, Exercisable Balance | 2,606,950 | ||
Weighted Average Exercise Price | $ 2.08 | $ 2.04 | |
Exercised | 1.82 | ||
Forfeited/Expired | 3.25 | ||
Weighted Average Exercise Price | 2.08 | $ 2.04 | |
Exercisable at December 31, 2016 | $ 2.03 | ||
Weighted Average Remaining Life, Outstanding Balance | 3 years 4 months 24 days | ||
Weighted Average Remaining Life, Exercisable Balance | 3 years 4 months 24 days |
Employee Stock Based Compensa82
Employee Stock Based Compensation - Summary of Information about Employee Stock Options Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 2.08 | $ 2.04 |
Outstanding | 2,624,950 | |
Outstanding Intrinsic Value | $ 24,610 | |
Exercisable | 2,606,950 | |
Exercisable Intrinsic Value | $ 24,553 | |
Range One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining Contractual Life | 3 years 2 months 12 days | |
Outstanding | 2,604,950 | |
Outstanding Intrinsic Value | $ 24,610 | |
Exercisable | 2,598,950 | |
Exercisable Intrinsic Value | $ 24,553 | |
Range One [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 1.6 | |
Range One [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | 2.31 | |
Range Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 11.81 | |
Remaining Contractual Life | 7 years 2 months 12 days | |
Outstanding | 20,000 | |
Exercisable | 8,000 |
Employee Stock Based Compensa83
Employee Stock Based Compensation - Summary of the Status of Restricted Share Awards (Detail) - Restricted Stock Award [Member] - $ / shares | May 20, 2016 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding at January 2, 2016 | 342,878 | |
Granted | 39,004 | 292,110 |
Vested | (128,590) | |
Forfeited/Performance adjustment | (80,096) | |
Outstanding at December 31, 2016 | 426,302 | |
Weighted Average Fair Value, Outstanding Beginning balance | $ 11.19 | |
Weighted Average Fair Value, Granted | 9.38 | |
Weighted Average Fair Value, Vested | 11.39 | |
Weighted Average Fair Value, Forfeited/Performance adjustment | 10.31 | |
Weighted Average Fair Value, Outstanding Ending balance | $ 10.32 | $ 10.05 |
Accumulated Other Comprehensi84
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 73,976 | $ 49,075 |
Other comprehensive income (loss) before reclassification | 126 | (212) |
Amounts reclassified from other comprehensive loss | 1,195 | |
Tax effect | (50) | (431) |
Reclassification of income tax allocation | 1,595 | |
Net current-period other comprehensive income | 1,671 | 552 |
Ending Balance | 106,961 | 73,976 |
Accumulated Other Comprehensive Loss [Member] | ||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (1,671) | (2,223) |
Net current-period other comprehensive income | 1,671 | 552 |
Ending Balance | (1,671) | |
Aluminum Forward Contracts [Member] | ||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassification | 126 | 346 |
Amounts reclassified from other comprehensive loss | 7 | |
Tax effect | (50) | (187) |
Reclassification of income tax allocation | 1,595 | |
Net current-period other comprehensive income | 1,671 | 166 |
Aluminum Forward Contracts [Member] | Accumulated Other Comprehensive Loss [Member] | ||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ (1,671) | (1,837) |
Ending Balance | (1,671) | |
Interest Rate Swap [Member] | ||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassification | (558) | |
Amounts reclassified from other comprehensive loss | 1,188 | |
Tax effect | (244) | |
Net current-period other comprehensive income | 386 | |
Interest Rate Swap [Member] | Accumulated Other Comprehensive Loss [Member] | ||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ (386) |
Accumulated Other Comprehensi85
Accumulated Other Comprehensive Income (Loss) - Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense, net | $ (388) | $ (1,750) | |
Cost of sales | $ 318,452 | 270,678 | 213,596 |
Tax effect | $ 11,800 | 15,297 | 9,675 |
Income tax allocation | 1,600 | ||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Aluminum Forward Contracts [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of sales | 126 | 7 | |
Tax effect | (50) | (3) | |
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Interest Rate Swap [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense, net | 1,188 | ||
Tax effect | $ (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 | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Product category: | |||||||||||
Net sales | $ 109,504 | $ 129,807 | $ 119,033 | $ 100,206 | $ 93,008 | $ 100,668 | $ 100,833 | $ 95,301 | $ 458,550 | $ 389,810 | $ 306,388 |
Impact-Resistant Window and Door Products [Member] | |||||||||||
Product category: | |||||||||||
Net sales | 381,600 | 319,200 | 240,300 | ||||||||
Non-impact Window and Door Products [Member] | |||||||||||
Product category: | |||||||||||
Net sales | $ 77,000 | $ 70,600 | $ 66,100 |
Unaudited Quarterly Financial87
Unaudited Quarterly Financial Data - Summary of Consolidated Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 109,504 | $ 129,807 | $ 119,033 | $ 100,206 | $ 93,008 | $ 100,668 | $ 100,833 | $ 95,301 | $ 458,550 | $ 389,810 | $ 306,388 |
Gross profit | 31,559 | 41,086 | 37,470 | 29,983 | 25,725 | 29,421 | 32,939 | 31,047 | 140,098 | 119,132 | 92,792 |
Net income | $ 4,122 | $ 10,796 | $ 7,350 | $ 1,479 | $ 3,774 | $ 6,346 | $ 6,780 | $ 6,652 | $ 23,747 | $ 23,552 | $ 16,405 |
Net income per share - basic | $ 0.08 | $ 0.22 | $ 0.15 | $ 0.03 | $ 0.08 | $ 0.13 | $ 0.14 | $ 0.14 | $ 0.49 | $ 0.49 | $ 0.35 |
Net income per share - diluted | $ 0.08 | $ 0.21 | $ 0.15 | $ 0.03 | $ 0.07 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.47 | $ 0.47 | $ 0.33 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) | Feb. 17, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Subsequent Event [Line Items] | ||||
Interest expense, net | $ (20,125,000) | $ (11,705,000) | $ (5,960,000) | |
Amortization of deferred financing costs and debt discount | $ 2,721,000 | $ 1,014,000 | $ 945,000 | |
Base Rate [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate | 4.75% | |||
2016 Credit Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate terms | The First Amendment, among other things, (a) decreases the applicable interest rate margins for the Initial Term Loans (as defined in the Credit Agreement) from (i) 4.75% to 3.75%, in the case of the Base Rate Loans (as defined in the Credit Agreement), and (ii) 5.75% to 4.75%, in the case of the Eurodollar Loans (as defined in the Credit Agreement), and (b) adds a soft call premium equal to 1.0% of the principal repaid or repriced if the Initial Term Loans are voluntarily refinanced or repriced pursuant to certain refinancing transactions within twelve months of the effective date of the First Amendment. | |||
Expected decrease in debt interest expense | $ 2,600,000 | |||
2016 Credit Agreement [Member] | Eurodollar [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate | 5.75% | |||
2016 Credit Agreement [Member] | Base Rate [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate | 4.75% | |||
Subsequent Event [Member] | 2016 Credit Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Percentage soft call premium | 1.00% | |||
Expected decrease in debt interest expense | $ 2,300,000 | |||
Lenders' fees or discount | 0 | |||
Interest expense, net | 18,600,000 | |||
Amortization of deferred financing costs and debt discount | $ 2,900,000 | |||
Subsequent Event [Member] | 2016 Credit Agreement [Member] | Eurodollar [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate | 4.75% | |||
Subsequent Event [Member] | 2016 Credit Agreement [Member] | Base Rate [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate | 3.75% |
Schedule II - Valuation and Q89
Schedule II - Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 336 | $ 306 | $ 513 |
Added in Acquisition | 159 | 85 | |
Costs and expenses | 67 | 43 | (216) |
Deductions | (163) | (13) | (76) |
Balance at End of Period | $ 399 | $ 336 | $ 306 |