Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 01, 2017 | Aug. 03, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 1, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PGTI | |
Entity Registrant Name | PGT Innovations, Inc. | |
Entity Central Index Key | 1,354,327 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 49,602,128 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 137,384 | $ 119,033 | $ 250,105 | $ 219,239 |
Cost of sales | 92,831 | 81,563 | 173,813 | 151,786 |
Gross profit | 44,553 | 37,470 | 76,292 | 67,453 |
Selling, general and administrative expenses | 24,650 | 20,615 | 47,435 | 40,676 |
Income from operations | 19,903 | 16,855 | 28,857 | 26,777 |
Interest expense, net | 4,568 | 5,282 | 9,478 | 9,440 |
Debt extinguishment costs | 3,431 | |||
Income before income taxes | 15,335 | 11,573 | 19,379 | 13,906 |
Income tax expense | 5,080 | 4,223 | 6,125 | 5,077 |
Net income | $ 10,255 | $ 7,350 | $ 13,254 | $ 8,829 |
Net income per common share: | ||||
Basic | $ 0.21 | $ 0.15 | $ 0.27 | $ 0.18 |
Diluted | $ 0.20 | $ 0.15 | $ 0.26 | $ 0.17 |
Weighted average shares outstanding: | ||||
Basic | 49,473 | 48,710 | 49,368 | 48,702 |
Diluted | 51,664 | 50,473 | 51,607 | 50,465 |
Comprehensive income | $ 10,255 | $ 7,350 | $ 13,254 | $ 8,829 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 50,282 | $ 39,210 |
Accounts receivable, net | 57,308 | 41,646 |
Inventories | 35,055 | 30,511 |
Prepaid expenses | 2,608 | 2,645 |
Other current assets | 6,083 | 8,365 |
Total current assets | 151,336 | 122,377 |
Property, plant and equipment, net | 84,375 | 84,209 |
Trade name and other intangible assets, net | 117,771 | 120,930 |
Goodwill | 108,060 | 108,060 |
Other assets, net | 1,403 | 1,072 |
Total assets | 462,945 | 436,648 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 32,986 | 22,803 |
Current portion of long-term debt | 705 | |
Total current liabilities | 33,691 | 22,803 |
Long-term debt, less current portion | 248,569 | 247,873 |
Deferred income taxes | 31,838 | 31,838 |
Other liabilities | 1,367 | 1,282 |
Total liabilities | 315,465 | 303,796 |
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; 52,291 and 51,887 shares issued and 49,570 and 49,176 shares outstanding at July 1, 2017 and December 31, 2016, respectively | 523 | 519 |
Additional paid-in-capital | 251,017 | 249,647 |
Accumulated deficit | (91,301) | (104,555) |
Shareholders' equity | 160,239 | 145,611 |
Less: Treasury stock at cost | (12,759) | (12,759) |
Total shareholders' equity | 147,480 | 132,852 |
Total liabilities and shareholders' equity | $ 462,945 | $ 436,648 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 01, 2017 | Dec. 31, 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 | 52,291,000 | 51,887,000 |
Common stock, shares outstanding | 49,570,000 | 49,176,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2017 | Jul. 02, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 13,254 | $ 8,829 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 6,107 | 4,540 |
Amortization | 3,159 | 2,878 |
Provision for allowance for doubtful accounts | 106 | 25 |
Stock-based compensation | 1,037 | 1,147 |
Amortization and write-off of deferred financing costs and debt discount | 1,401 | 5,201 |
Excess tax benefits on stock-based compensation | (464) | |
Gain on disposal of assets | (57) | (6) |
Change in operating assets and liabilities (net of the effect of the acquisition): | ||
Accounts receivable | (16,647) | (11,904) |
Inventories | (4,544) | (566) |
Prepaid expenses, other current and other assets | 268 | 2,927 |
Accounts payable, accrued and other liabilities | 12,933 | 10,991 |
Net cash provided by operating activities | 17,017 | 23,598 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (6,324) | (8,176) |
Business acquisition | (100,259) | |
Proceeds from sale of equipment | 57 | 6 |
Net cash used in investing activities | (6,267) | (108,429) |
Cash flows from financing activities: | ||
Payments of long-term debt | (198,850) | |
Proceeds from issuance of long-term debt | 261,030 | |
Payments of financing costs | (7,178) | |
Purchases of treasury stock | (2,722) | |
Taxes paid relating to shares withheld on employee equity awards | (181) | (54) |
Proceeds from exercise of stock options | 502 | 152 |
Proceeds from issuance of common stock under employee stock purchase plan | 17 | 17 |
Excess tax benefits on stock-based compensation | 464 | |
Other | (16) | (15) |
Net cash provided by financing activities | 322 | 52,844 |
Net increase (decrease) in cash and cash equivalents | 11,072 | (31,987) |
Cash and cash equivalents at beginning of period | 39,210 | 61,493 |
Cash and cash equivalents at end of period | 50,282 | 29,506 |
Non-cash activity: | ||
Property, plant and equipment additions in accounts payable | $ 198 | 428 |
Earn-out contingency in accrued liabilities | $ 3,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | NOTE 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements include the accounts of PGT Innovations, Inc. and its wholly-owned subsidiary, PGT Industries, Inc., and its wholly-owned subsidiaries CGI Window and Holdings, Inc. (“CGI”), which includes its wholly-owned subsidiary, CGI Commercial, Inc. (“CGIC”), and WinDoor, Incorporated (collectively the “Company”), after elimination of intercompany accounts and transactions. These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q The condensed consolidated balance sheet as of December 31, 2016, is derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP. The condensed consolidated balance sheet as of December 31, 2016, and the unaudited condensed consolidated financial statements as of and for the periods ended July 1, 2017, should be read in conjunction with the more detailed audited consolidated financial statements for the year ended December 31, 2016, included in the Company’s most recent Annual Report on Form 10-K. Form 10-K. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, 2016-09 • ASU 2016-09 paid-in • ASU 2016-09 tax-withholding • ASU 2016-09 paid-in-capital. 2016-09 • ASU 2016-09 • ASU 2016-09 The effects on the Company’s consolidated balance sheet as of December 31, 2016, relating to the adoption of ASU 2016-09 Previously After Deferred income taxes $ 32,171 $ 31,838 Total liabilities $ 304,129 $ 303,796 Additional paid-in-capital $ 249,469 $ 249,647 Accumulated deficit $ (104,710 ) $ (104,555 ) Shareholders’ equity $ 145,278 $ 145,611 Total shareholders’ equity $ 132,519 $ 132,852 In July 2015, the FASB issued ASU No. 2015-11, 2015-11 2015-11 2015-11 Recently Issued Accounting Pronouncements In addition to the pronouncements issued during 2017, ASU 2016-02, 2014-09, 10-K 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 February 2016, the FASB issued ASU 2016-02, 2016-02 2016-02 Approaching Adoption of ASU 2014-09, In May 2014, the FASB issued ASU 2014-09, 2014-09 2015-14, 2015-14 2016-08, 2016-10, 2016-12, non-cash 2016-20, The Company completed its preliminary assessment of the impact of its upcoming adoption of ASU 2014-09 2014-09, 2014-09, ASU 2014-09 to-date. 2014-09 The Company is a manufacturer of fully-customized windows and doors, and manufactures products based on design specifications, measurements, colors, finishes, framing materials, glass-types, and other options selected by the customer at the point in time an order is received from the customer. The Company’s initial assessment is that its goods have no alternative use, as that term is defined in ASU 2014-09, Based on this initial assessment, the Company believes that it will be required to change its method of recognizing revenue, to one of potentially recognizing revenue as products are manufactured, but no later than completion of the manufacturing process, from its current method of recognizing revenue upon delivery of the product to the customer. The Company is continuing to evaluate its manufacturing processes in order to assess at what point the products have no alternative use and the recognition of revenue should begin. However, because revenue will have been recognized on at least all products for which manufacturing has been completed, the Company believes that upon adoption of ASU 2014-09, 2014-09, ASU 2014-09 The Company expects to continue to evaluate the impact of the adoption of ASU 2014-09 |
Warranty
Warranty | 6 Months Ended |
Jul. 01, 2017 | |
Guarantees and Product Warranties [Abstract] | |
Warranty | NOTE 2. WARRANTY Most of our manufactured products are sold with warranties. Warranty periods, which vary by product components, generally range from 1 to 10 years; however, the warranty period for a limited number of specifically identified components in certain applications is a lifetime. The majority of the products sold have warranties on components which range from 1 to 3 years. The reserve for warranties is based on management’s assessment of the cost per service call and the number of service calls expected to be incurred to satisfy warranty obligations on the current net sales. During the three months ended July 1, 2017, we recorded warranty expense at a rate of approximately 2.22% of sales, which decreased from the rate in the first quarter of 2017 of 2.70%. During the three months ended July 2, 2016, we recorded warranty expense at a rate of approximately 2.44% of sales. The following table summarizes: current period charges, adjustments to previous estimates, if necessary, as well as settlements, which represent actual costs incurred during the period for the three and six months ended July 1, 2017, and July 2, 2016. The reserve is determined through specific identification and assessing Company history. Expected future obligations are discounted to a current value using a risk-free rate for obligations with similar maturities. Accrued Warranty Beginning Acquired Charged Adjustments Settlements End of (in thousands) Three months ended July 1, 2017 $ 5,614 $ — $ 3,045 $ (153 ) $ (2,827 ) $ 5,679 Three months ended July 2, 2016 $ 4,713 $ — $ 2,908 $ 413 $ (2,931 ) $ 5,103 Six months ended July 1, 2017 $ 5,569 $ — $ 6,088 $ (64 ) $ (5,914 ) $ 5,679 Six months ended July 2, 2016 $ 4,237 $ 264 $ 5,236 $ 770 $ (5,404 ) $ 5,103 |
Inventories
Inventories | 6 Months Ended |
Jul. 01, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 3. INVENTORIES Inventories consist principally of raw materials purchased for the manufacture of our products. We have limited finished goods inventory since all products are custom, made-to-order work-in-progress (first-in, first-out July 1, December 31, (in thousands) Raw materials $ 27,687 $ 24,946 Work-in-progress 3,415 2,521 Finished goods 3,953 3,044 $ 35,055 $ 30,511 |
Stock Based-Compensation
Stock Based-Compensation | 6 Months Ended |
Jul. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based-Compensation | NOTE 4. STOCK BASED-COMPENSATION Exercises For the three months ended July 1, 2017, there were 108,910 options exercised at a weighted average exercise price of $2.00 per share. For the six months ended July 1, 2017, there were 250,910 options exercised at a weighted average exercise price of $2.00 per share. Issuance On March 4, 2017, we granted 251,474 restricted stock awards to certain executives and non-executive The performance criteria, as defined in the share awards, provides for a graded awarding of shares based on the percentage by which the Company meets earnings before interest and taxes, as defined, in our 2017 business plan. The performance percentages, ranging from less than 80% to greater than 120%, provide for the awarding of shares ranging from no shares to 150% of the original amount of shares. On May 19, 2017, we granted 34,699 restricted stock awards to the seven non-management Stock Compensation Expense We record stock compensation expense over an award’s vesting period based on the award’s fair value at the date of grant. Effective on January 1, 2017, we adopted the provisions of ASU 2016-09, |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jul. 01, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | NOTE 5. NET INCOME PER COMMON SHARE Basic earnings per share (“EPS”) is computed by dividing net income available to common shareholders, by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the dilutive effect of potential common shares from securities such as stock options. Weighted average shares outstanding for the three and six months ended July 1, 2017, and July 2, 2016, excludes underlying options and restricted stock awards of 20 thousand because their effects were anti-dilutive. The table below presents the calculation of EPS and a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS for our Company: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, (in thousands, except per share amounts) Net income $ 10,255 $ 7,350 $ 13,254 $ 8,829 Weighted-average common shares - Basic 49,473 48,710 49,368 48,702 Add: Dilutive effect of stock compensation plans 2,191 1,763 2,239 1,763 Weighted-average common shares - Diluted 51,664 50,473 51,607 50,465 Net income per common share: Basic $ 0.21 $ 0.15 $ 0.27 $ 0.18 Diluted $ 0.20 $ 0.15 $ 0.26 $ 0.17 Effective on January 1, 2017, we adopted ASU 2016-09. 2016-09 2016-09 2016-09 2016-09 |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 01, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 6. ACQUISITIONS WINDOOR On February 16, 2016 (“closing date”), we completed the acquisition of WinDoor, 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, were as follows (in thousands): Final 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 Earn-out contingency 3,000 Total fair value of consideration $ 102,571 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. The fair value of property and equipment and remaining useful lives were estimated by management using its knowledge of machinery and equipment in the window and door manufacturing industry, neither of which significantly differed from the net book values and remaining book lives of WinDoor’s property and equipment at the acquisition date. Valuations of the intangible assets (See Note 7) 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 condensed consolidated statement of comprehensive income for the six months ended July 2, 2016, and relate to legal expenses, representations and warranties insurance, diligence, and accounting services. 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 stock purchase agreement for the acquisition of WinDoor (“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 The SPA had a post-closing working capital calculation whereby we were required to prepare, and deliver to the sellers, a final statement of purchase price, including our calculation of the amount we find net working capital actually to have been as of the closing date. During the third quarter of 2016, the Company and the sellers reached agreement on the calculation of net working capital, which resulted in a payment of $0.7 million to the Company from sellers, resulting in a decrease in the purchase price which we recorded as a reduction in goodwill. 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. Six Months Ended July 2, 2016 (in thousands, except per share amounts) Pro Forma Results Net sales $ 221,700 Net income $ 7,484 Net income per common share: Basic $ 0.15 Diluted $ 0.15 |
Goodwill, Trade Names, and Othe
Goodwill, Trade Names, and Other Intangible Assets | 6 Months Ended |
Jul. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Trade Names, and Other Intangible Assets | NOTE 7. GOODWILL, TRADE NAMES, AND OTHER INTANGIBLE ASSETS Goodwill, trade names, and other intangible assets, net, are as follows: Initial July 1, December 31, Useful Life 2017 2016 (in years) (in thousands) Goodwill $ 108,060 $ 108,060 indefinite Trade names and other intangible assets: Trade names $ 75,841 $ 75,841 indefinite Customer relationships 106,647 106,647 3-10 Developed technology 3,000 3,000 9-10 Non-compete 1,668 1,668 2-5 Less: Accumulated amortization (69,385 ) (66,226 ) Subtotal 41,930 45,089 Other intangible assets, net $ 117,771 $ 120,930 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jul. 01, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 8. LONG-TERM DEBT On February 16, 2016, we entered into a Credit Agreement (“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 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 six years 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. Prior to amending the 2016 Credit Agreement on February 17, 2017, as described below, borrowings under the term loans and the revolving credit facility accrued 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. We will pay quarterly fees on the unused portion of the revolving credit facility equal to 50 basis points per annum as well as a quarterly letter of credit fee at 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 weighted average all-in On February 17, 2017, we entered into an amendment of our 2016 Credit Agreement (“First Amendment”). 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. 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 trailing EBITDA, each as defined in the 2016 Credit Agreement), and will be tested quarterly based on the last four fiscal quarters and is set at levels as described in the 2016 Credit Agreement. As of July 1, 2017, no such test is required as we have not exceeded 20% of our revolving capacity. We believe that our total net leverage ratio during the second quarter of 2017 was in compliance with the 2016 Credit Agreement, and that we are in compliance with all covenants. 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. As of July 1, 2017, we were in compliance with all affirmative and restrictive covenants. In connection with entering into the 2016 Credit Agreement, on February 16, 2016, we terminated our prior credit agreement, dated as of September 22, 2014, among PGT Industries, Inc., as the borrower, the Company, as guarantor, the lenders from time to time party thereto and Deutsche Bank, as administrative agent and collateral agent (“2014 Credit Agreement”). Along with cash on hand, proceeds from the term loan facility under the 2016 Credit Agreement were used to repay amounts outstanding under the 2014 Credit Agreement, acquire WinDoor, and pay certain fees and expenses. As of July 1, 2017, the face value of debt outstanding under the 2016 Credit Agreement was $264.0 million, and accrued interest was $0.1 million. On July 7, 2017, we made a voluntary prepayment of $12.0 million of outstanding borrowings under the term-loan portion of the 2016 Credit Agreement. For additional information, see Note 12, Subsequent Event. The activity relating to third-party fees and costs, lender fees and discount for the three months ended July 1, 2017, are as follows. All debt-related fees, costs and original issue discount are classified as a reduction of the carrying value of long-term debt: (in thousands) Total At beginning of year $ 16,102 Amortization expense through February 17, 2017 (359 ) At time of repricing 15,743 Less: Amortization expense after repricing (1,042 ) At end of period $ 14,701 Estimated amortization expense relating to third-party fees and costs, lender fees and discount for the years indicated as of July 1, 2017, is as follows: (in thousands) Total Remainder of 2017* $ 1,974 2018 2,873 2019 3,054 2020 3,312 2021 3,096 2022 392 Total $ 14,701 * Includes $0.6 million of acceleration of amortization of lenders fees and discount relating to the $12 million voluntary prepayment of borrowings under the 2016 Credit Agreement as discussed in Note 12, Subsequent Event. As a result of a voluntary prepayment of $12.0 million we made on July 7, 2017, in the third quarter of 2017, we have no future scheduled repayments until the maturity of the facility on February 21, 2022. The contractual future maturities of long-term debt outstanding, adjusted to reflect the prepayment made on July 7, 2017, as well as the application of the prepayment to all future scheduled repayments, as of July 1, 2017, are as follows (at face value): (in thousands) Remainder of 2017** $ 12,000 2018 — 2019 — 2020 — 2021 — 2022 251,975 Total $ 263,975 ** Represents the $12 million voluntary prepayment of borrowings under the 2016 Credit Agreement as discussed in Note 12, Subsequent Event. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9. COMMITMENTS AND CONTINGENCIES Litigation Our Company is a party to various legal proceedings in the ordinary course of business. Although the ultimate disposition of those proceedings cannot be predicted with certainty, management believes the outcome of any claim that is pending or threatened, either individually or in the aggregate, will not have a materially adverse effect on our operations, financial position or cash flows. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. INCOME TAXES Income tax expense was $5.1 million for the three months ended July 1, 2017, compared with $4.2 million for the three months ended July 2, 2016. Our effective tax rate for the three months ended July 1, 2017, was 33.1%, and was 36.5% for the three months ended July 2, 2016. Income tax expense was $6.1 million for the six months ended July 1, 2017, compared with $5.1 million for the six months ended July 2, 2016. Our effective tax rate for the six months ended July 1, 2017, was 31.6%, and was 36.5% for the six months ended July 2, 2016. Income tax expense in the three and six months ended July 1, 2017, includes excess tax benefits relating to exercises of stock options and lapses of restrictions on stock awards treated as a discrete item of income tax upon our adoption of ASU 2016-09 The effective tax rates in all periods, excluding the effect of the discrete item discussed above in the 2017 periods, were lower than our combined statutory federal and state tax rate of 38.8% primarily as the result of the estimated impact of the section 199 domestic manufacturing deduction, partially offset by the 50% deductibility-disallowance of meals and entertainment expenses. At July 1, 2017, an accrued federal income tax payable of $3.6 million was classified within accrued liabilities in the accompanying condensed consolidated balance sheet. At December 31, 2016, a federal income tax receivable of $2.6 million was classified within other current assets in the accompanying condensed consolidated balance sheet. During the three or six months ended July 1, 2017, we did not make a payment of estimated federal income taxes or receive any refunds of federal income taxes. During the three months ended July 2, 2016, we received a federal income tax refund of $2.4 million. |
Fair Value
Fair Value | 6 Months Ended |
Jul. 01, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 11. 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 the three months ended July 1, 2017, or July 2, 2016, we did not make any transfers between Level 2 and 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 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 $267.9 million as of July 1, 2017, compared to a principal outstanding value of $264.0 million, and $264.6 million as of December 31, 2016, compared to a principal outstanding value of $264.0 million. Fair values were determined based on observed trading prices of our debt between domestic financial institutions. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jul. 01, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | NOTE 12. SUBSEQUENT EVENT On July 7, 2017, we elected to make a voluntary prepayment of $12 million of outstanding borrowings under the term-loan portion of the 2016 Credit Agreement. This voluntary prepayment was made with cash on hand generated from operations, and reduced borrowings under the term-loan portion of the 2016 Credit Agreement to $252.0 million as of the date of filing of this Quarterly Report on Form 10-Q. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jul. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, 2016-09 • ASU 2016-09 paid-in • ASU 2016-09 tax-withholding • ASU 2016-09 paid-in-capital. 2016-09 • ASU 2016-09 • ASU 2016-09 The effects on the Company’s consolidated balance sheet as of December 31, 2016, relating to the adoption of ASU 2016-09 Previously After Deferred income taxes $ 32,171 $ 31,838 Total liabilities $ 304,129 $ 303,796 Additional paid-in-capital $ 249,469 $ 249,647 Accumulated deficit $ (104,710 ) $ (104,555 ) Shareholders’ equity $ 145,278 $ 145,611 Total shareholders’ equity $ 132,519 $ 132,852 In July 2015, the FASB issued ASU No. 2015-11, 2015-11 2015-11 2015-11 Recently Issued Accounting Pronouncements In addition to the pronouncements issued during 2017, ASU 2016-02, 2014-09, 10-K 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 February 2016, the FASB issued ASU 2016-02, 2016-02 2016-02 Approaching Adoption of ASU 2014-09, In May 2014, the FASB issued ASU 2014-09, 2014-09 2015-14, 2015-14 2016-08, 2016-10, 2016-12, non-cash 2016-20, The Company completed its preliminary assessment of the impact of its upcoming adoption of ASU 2014-09 2014-09, 2014-09, ASU 2014-09 to-date. 2014-09 The Company is a manufacturer of fully-customized windows and doors, and manufactures products based on design specifications, measurements, colors, finishes, framing materials, glass-types, and other options selected by the customer at the point in time an order is received from the customer. The Company’s initial assessment is that its goods have no alternative use, as that term is defined in ASU 2014-09, Based on this initial assessment, the Company believes that it will be required to change its method of recognizing revenue, to one of potentially recognizing revenue as products are manufactured, but no later than completion of the manufacturing process, from its current method of recognizing revenue upon delivery of the product to the customer. The Company is continuing to evaluate its manufacturing processes in order to assess at what point the products have no alternative use and the recognition of revenue should begin. However, because revenue will have been recognized on at least all products for which manufacturing has been completed, the Company believes that upon adoption of ASU 2014-09, 2014-09, ASU 2014-09 The Company expects to continue to evaluate the impact of the adoption of ASU 2014-09 |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Effects on Consolidated Balance Sheet Relating to Adoption of ASU 2016-09 | The effects on the Company’s consolidated balance sheet as of December 31, 2016, relating to the adoption of ASU 2016-09 Previously After Deferred income taxes $ 32,171 $ 31,838 Total liabilities $ 304,129 $ 303,796 Additional paid-in-capital $ 249,469 $ 249,647 Accumulated deficit $ (104,710 ) $ (104,555 ) Shareholders’ equity $ 145,278 $ 145,611 Total shareholders’ equity $ 132,519 $ 132,852 |
Warranty (Tables)
Warranty (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Guarantees and Product Warranties [Abstract] | |
Summary of Current Period Charges, Adjustments to Previous Estimates, Settlements representing Actual Costs Incurred with regard to Accrued Warranty | The following table summarizes: current period charges, adjustments to previous estimates, if necessary, as well as settlements, which represent actual costs incurred during the period for the three and six months ended July 1, 2017, and July 2, 2016. The reserve is determined through specific identification and assessing Company history. Expected future obligations are discounted to a current value using a risk-free rate for obligations with similar maturities. Accrued Warranty Beginning Acquired Charged Adjustments Settlements End of (in thousands) Three months ended July 1, 2017 $ 5,614 $ — $ 3,045 $ (153 ) $ (2,827 ) $ 5,679 Three months ended July 2, 2016 $ 4,713 $ — $ 2,908 $ 413 $ (2,931 ) $ 5,103 Six months ended July 1, 2017 $ 5,569 $ — $ 6,088 $ (64 ) $ (5,914 ) $ 5,679 Six months ended July 2, 2016 $ 4,237 $ 264 $ 5,236 $ 770 $ (5,404 ) $ 5,103 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: July 1, December 31, (in thousands) Raw materials $ 27,687 $ 24,946 Work-in-progress 3,415 2,521 Finished goods 3,953 3,044 $ 35,055 $ 30,511 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Earnings Per Share [Abstract] | |
Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS | The table below presents the calculation of EPS and a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS for our Company: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, (in thousands, except per share amounts) Net income $ 10,255 $ 7,350 $ 13,254 $ 8,829 Weighted-average common shares - Basic 49,473 48,710 49,368 48,702 Add: Dilutive effect of stock compensation plans 2,191 1,763 2,239 1,763 Weighted-average common shares - Diluted 51,664 50,473 51,607 50,465 Net income per common share: Basic $ 0.21 $ 0.15 $ 0.27 $ 0.18 Diluted $ 0.20 $ 0.15 $ 0.26 $ 0.17 |
Acquisitions (Tables)
Acquisitions (Tables) - WinDoor [Member] | 6 Months Ended |
Jul. 01, 2017 | |
Schedule of Fair Value of Assets and Liabilities Assumed | The estimated fair value of assets acquired and liabilities assumed as of the closing date, were as follows (in thousands): Final 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 Earn-out contingency 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. Six Months Ended July 2, 2016 (in thousands, except per share amounts) Pro Forma Results Net sales $ 221,700 Net income $ 7,484 Net income per common share: Basic $ 0.15 Diluted $ 0.15 |
Goodwill, Trade Names, and Ot24
Goodwill, Trade Names, and Other Intangible Assets (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill, Trade Names and Other Intangible Assets Net | Goodwill, trade names, and other intangible assets, net, are as follows: Initial July 1, December 31, Useful Life 2017 2016 (in years) (in thousands) Goodwill $ 108,060 $ 108,060 indefinite Trade names and other intangible assets: Trade names $ 75,841 $ 75,841 indefinite Customer relationships 106,647 106,647 3-10 Developed technology 3,000 3,000 9-10 Non-compete 1,668 1,668 2-5 Less: Accumulated amortization (69,385 ) (66,226 ) Subtotal 41,930 45,089 Other intangible assets, net $ 117,771 $ 120,930 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Debt Disclosure [Abstract] | |
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 three months ended July 1, 2017, are as follows. All debt-related fees, costs and original issue discount are classified as a reduction of the carrying value of long-term debt: (in thousands) Total At beginning of year $ 16,102 Amortization expense through February 17, 2017 (359 ) At time of repricing 15,743 Less: Amortization expense after repricing (1,042 ) At end of period $ 14,701 |
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 as of July 1, 2017, is as follows: (in thousands) Total Remainder of 2017* $ 1,974 2018 2,873 2019 3,054 2020 3,312 2021 3,096 2022 392 Total $ 14,701 * Includes $0.6 million of acceleration of amortization of lenders fees and discount relating to the $12 million voluntary prepayment of borrowings under the 2016 Credit Agreement as discussed in Note 12, Subsequent Event. |
Contractual Future Maturities of Long-term Debt | The contractual future maturities of long-term debt outstanding, adjusted to reflect the prepayment made on July 7, 2017, as well as the application of the prepayment to all future scheduled repayments, as of July 1, 2017, are as follows (at face value): (in thousands) Remainder of 2017** $ 12,000 2018 — 2019 — 2020 — 2021 — 2022 251,975 Total $ 263,975 ** Represents the $12 million voluntary prepayment of borrowings under the 2016 Credit Agreement as discussed in Note 12, Subsequent Event. |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - ASU 2016-09 [Member] $ in Millions | Dec. 31, 2016USD ($) |
Accumulated Deficit [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of ASU 2016-09 stock compensation | $ (0.1) |
Excess tax benefits that had not yet been recognized | 0.3 |
Additional Paid-in Capital [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of ASU 2016-09 stock compensation | $ 0.2 |
Basis of Presentation - Summary
Basis of Presentation - Summary of Effects on Consolidated Balance Sheet Relating to Adoption of ASU 2016-09 (Detail) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income taxes | $ 31,838 | $ 31,838 |
Total liabilities | 315,465 | 303,796 |
Additional paid-in-capital | 251,017 | 249,647 |
Accumulated deficit | (91,301) | (104,555) |
Shareholders' equity | 160,239 | 145,611 |
Total shareholders' equity | $ 147,480 | 132,852 |
Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income taxes | 32,171 | |
Total liabilities | 304,129 | |
Additional paid-in-capital | 249,469 | |
Accumulated deficit | (104,710) | |
Shareholders' equity | 145,278 | |
Total shareholders' equity | $ 132,519 |
Warranty - Additional Informati
Warranty - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Apr. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | |
Product Warranty Liability [Line Items] | ||||
Warranty expense, average rate | 2.22% | 2.70% | 2.44% | |
Minimum [Member] | ||||
Product Warranty Liability [Line Items] | ||||
Warranty periods | 1 year | |||
Warranty period of the majority of products sold | 1 year | |||
Maximum [Member] | ||||
Product Warranty Liability [Line Items] | ||||
Warranty periods | 10 years | |||
Warranty period of the majority of products sold | 3 years |
Warranty - Summary of Current P
Warranty - Summary of Current Period Charges, Adjustments to Previous Estimates, Settlements representing Actual Costs Incurred with regard to Accrued Warranty (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Guarantees and Product Warranties [Abstract] | ||||
Accrued Warranty, Beginning of Period | $ 5,614 | $ 4,713 | $ 5,569 | $ 4,237 |
Accrued Warranty, Acquired | 264 | |||
Accrued Warranty, Charged to Expense | 3,045 | 2,908 | 6,088 | 5,236 |
Accrued Warranty, Adjustments | (153) | 413 | (64) | 770 |
Accrued Warranty, Settlements | (2,827) | (2,931) | (5,914) | (5,404) |
Accrued Warranty, End of Period | $ 5,679 | $ 5,103 | $ 5,679 | $ 5,103 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 27,687 | $ 24,946 |
Work in progress | 3,415 | 2,521 |
Finished goods | 3,953 | 3,044 |
Inventories | $ 35,055 | $ 30,511 |
Stock Based-Compensation - Addi
Stock Based-Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | May 19, 2017Members$ / sharesshares | Mar. 04, 2017$ / sharesshares | Jul. 01, 2017USD ($)$ / sharesshares | Jul. 02, 2016USD ($) | Jul. 01, 2017USD ($)$ / sharesshares | Jul. 02, 2016USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options exercised | 108,910 | 250,910 | ||||
Weighted average exercise price of options exercised | $ / shares | $ 2 | $ 2 | ||||
Compensation expense for stock based awards | $ | $ 600 | $ 600 | $ 1,037 | $ 1,147 | ||
Total unrecognized compensation cost related primarily to restricted share awards | $ | $ 3,000 | $ 2,700 | $ 3,000 | $ 2,700 | ||
Weighted average remaining period of stock option | 1 year 8 months 12 days | |||||
Restricted Stock Award [Member] | Executives And Non-executive Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock awards | 34,699 | 251,474 | ||||
Fair value of common stock | $ / shares | $ 11.60 | $ 10.20 | ||||
Number of non-management members of board of directors | Members | 7 | |||||
Company Performance Criteria [Member] | Executives And Non-executive Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock awards | 125,737 | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance criteria defined in share awards | The performance percentages, ranging from less than 80% to greater than 120%, provide for the awarding of shares ranging from no shares to 150% of the original amount of shares. | |||||
Fixed Criteria [Member] | Executives And Non-executive Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock awards | 125,737 | |||||
Options vesting period | 3 years |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Options and Restricted Stock Awards [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Anti-dilutive securities | 20 | 20 | 20 | 20 |
ASU 2016-09 [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Anti-dilutive securities | 710 | 839 | 720 | 827 |
Excess tax benefits on exercise of stock options | $ 407 | $ 795 |
Net Income Per Common Share - C
Net Income Per Common Share - Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 10,255 | $ 7,350 | $ 13,254 | $ 8,829 |
Weighted-average common shares - Basic | 49,473 | 48,710 | 49,368 | 48,702 |
Add: Dilutive effect of stock compensation plans | 2,191 | 1,763 | 2,239 | 1,763 |
Weighted-average common shares - Diluted | 51,664 | 50,473 | 51,607 | 50,465 |
Net income per common share: | ||||
Basic | $ 0.21 | $ 0.15 | $ 0.27 | $ 0.18 |
Diluted | $ 0.20 | $ 0.15 | $ 0.26 | $ 0.17 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Feb. 16, 2016 | Jul. 01, 2017 | Oct. 01, 2016 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||||
Estimated fair value of contingent consideration | $ 3,000,000 | ||||||
Goodwill | $ 108,060,000 | $ 108,060,000 | $ 108,060,000 | ||||
Earn-out contingency liability, basis for amount | Pursuant to the SPA, if 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 a maximum of 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 | 137,384,000 | $ 119,033,000 | $ 250,105,000 | 219,239,000 | |||
WinDoor [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of consideration | $ 102,571,000 | ||||||
Cash payment to acquire business | 99,571,000 | ||||||
Estimated fair value of contingent consideration | 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 | |||||
Earn-out contingency liability | 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 | |||||
Adjustment to Goodwill deductible for tax purposes | 3,000,000 | ||||||
Amount of earn out contingency payment on sales revenue goods net when sales were less than $46 million | 0 | ||||||
Net sales | $ 46,000,000 | ||||||
Decrease in the purchase price | $ 700,000 | ||||||
WinDoor [Member] | Cash On Hand [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash payment to acquire business | $ 43,500,000 | ||||||
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 |
Acquisitions - Schedule of Fair
Acquisitions - Schedule of Fair Value of Assets and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Feb. 16, 2016 | Jul. 02, 2016 | Jul. 01, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 108,060 | $ 108,060 | ||
Earn-out contingency | $ 3,000 | |||
WinDoor [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts and notes receivable | $ 3,882 | |||
Inventories | 6,778 | |||
Prepaid expenses | 246 | |||
Property and equipment | 5,029 | |||
Intangible assets | 47,100 | |||
Goodwill | 41,856 | $ 41,856 | ||
Accounts payable and accrued liabilities | (2,320) | |||
Purchase price | 102,571 | |||
Cash | 99,571 | |||
Earn-out contingency | 3,000 | |||
Total fair value of consideration | $ 102,571 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro forma Results (Detail) - WinDoor [Member] $ / shares in Units, $ in Thousands | 6 Months Ended |
Jul. 02, 2016USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Net sales | $ | $ 221,700 |
Net income | $ | $ 7,484 |
Net income per common share: | |
Basic | $ / shares | $ 0.15 |
Diluted | $ / shares | $ 0.15 |
Goodwill, Trade Names, and Ot37
Goodwill, Trade Names, and Other Intangible Assets - Schedule of Trade Names and Other Intangible Assets Net (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2017 | Dec. 31, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 108,060 | $ 108,060 |
Less: Accumulated amortization | (69,385) | (66,226) |
Subtotal | 41,930 | 45,089 |
Other intangible assets, net | 117,771 | 120,930 |
Customer Relationships [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Customer relationships | $ 106,647 | 106,647 |
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 | 3,000 |
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 | 1,668 |
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 | $ 75,841 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Jul. 07, 2017 | Feb. 17, 2017 | Feb. 16, 2016 | Feb. 17, 2017 | Jul. 01, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||||||
Letters of credit outstanding | $ 200,000 | |||||
Minimum percentage of revolving credit facility as per financial covenant | 20.00% | |||||
Long term debt | $ 263,975,000 | $ 264,000,000 | ||||
Base Rate [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 4.75% | |||||
LIBOR [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 5.75% | |||||
Term Notes Payable [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Long term debt | $ 264,000,000 | |||||
Senior Secured Credit Facilities [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount available under credit facility | $ 310,000,000 | |||||
Term Loan Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount available under credit facility | $ 270,000,000 | |||||
Maturity term of credit agreement | 6 years | |||||
Credit facility amortization percentage | 1.00% | |||||
weighted average interest rate | 6.01% | 5.75% | ||||
Term Loan Facility [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Long term debt | $ 252,000,000 | |||||
Term Loan Facility [Member] | Base Rate [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 2.00% | |||||
Term Loan Facility [Member] | LIBOR [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 1.00% | |||||
Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount available under credit facility | $ 40,000,000 | |||||
Maturity term of credit agreement | 5 years | |||||
Credit facility amortization percentage | 0.50% | |||||
Credit available on revolver | $ 39,800,000 | |||||
2016 Credit Agreement [Member] | ||||||
Line of Credit Facility [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. | |||||
Percentage soft call premium | 1.00% | |||||
Credit agreement date | Feb. 16, 2016 | |||||
Accrued interest | $ 100,000 | |||||
Credit agreement Maturity date | Feb. 21, 2022 | |||||
2016 Credit Agreement [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Voluntary prepayment of debt | $ 12,000,000 | |||||
2016 Credit Agreement [Member] | Base Rate [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 3.75% | 4.75% | ||||
2016 Credit Agreement [Member] | Eurodollar [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 4.75% | 5.75% | ||||
2014 Credit Agreement [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit agreement date | Sep. 22, 2014 | |||||
Letter Of Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility amortization percentage | 5.75% | |||||
Facing fee per annum | 0.125% |
Long-Term Debt - Activity Relat
Long-Term Debt - Activity Relating to Third-Party Fees and Costs, Lender Fees and Discount (Detail) $ in Thousands | 6 Months Ended |
Jul. 01, 2017USD ($) | |
Debt Disclosure [Abstract] | |
At beginning of year | $ 16,102 |
Amortization expense through February 17, 2017 | (359) |
At time of repricing | 15,743 |
Less: Amortization expense after repricing | (1,042) |
At end of period | $ 14,701 |
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 | Jul. 01, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Remainder of 2017 | $ 1,974 | |
2,018 | 2,873 | |
2,019 | 3,054 | |
2,020 | 3,312 | |
2,021 | 3,096 | |
2,022 | 392 | |
Total | $ 14,701 | $ 15,743 |
Long-Term Debt - Estimated Am41
Long-Term Debt - Estimated Amortization Expense Relating to Third-Party Fees and Costs, Lender Fees and Discount (Parenthetical) (Detail) - 2016 Credit Agreement [Member] - Subsequent Event [Member] $ in Millions | Jul. 07, 2017USD ($) |
Schedule Of Long Term Debt Maturities [Line Items] | |
Voluntary prepayment of debt | $ 12 |
Interest Expense, Net [Member] | |
Schedule Of Long Term Debt Maturities [Line Items] | |
Acceleration of amortization of lenders fees and debt discount | 0.6 |
Voluntary prepayment of debt | $ 12 |
Long-Term Debt - Contractual Fu
Long-Term Debt - Contractual Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Remainder of 2017 | $ 12,000 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 251,975 | |
Total | $ 263,975 | $ 264,000 |
Long-Term Debt - Contractual 43
Long-Term Debt - Contractual Future Maturities of Long-Term Debt (Parenthetical) (Detail) - 2016 Credit Agreement [Member] - Subsequent Event [Member] $ in Millions | Jul. 07, 2017USD ($) |
Schedule Of Long Term Debt Maturities [Line Items] | |
Voluntary prepayment of debt | $ 12 |
Interest Expense, Net [Member] | |
Schedule Of Long Term Debt Maturities [Line Items] | |
Voluntary prepayment of debt | $ 12 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||||
Income tax expense | $ 5,080,000 | $ 4,223,000 | $ 6,125,000 | $ 5,077,000 | |
Effective tax rates | 33.10% | 36.50% | 31.60% | 36.50% | |
Income tax expense, discrete item | $ 407,000 | $ 795,000 | |||
Effective tax rates, excluding discrete item of income tax expense | 35.80% | 35.70% | |||
Effective income tax rate reconciliation, change in enacted tax rate, percent | 38.80% | ||||
Effective income tax rate reconciliation, nondeductible expense, meals and entertainment, percent | 50.00% | ||||
Payment of estimated federal income taxes | $ 0 | $ 0 | |||
Refund of federal income taxes | 0 | 0 | |||
Federal income taxes refund | $ 2,400,000 | ||||
Other Current Assets [Member] | |||||
Income Taxes [Line Items] | |||||
Federal income taxes receivable | $ 2,600,000 | ||||
Other Current Liabilities [Member] | |||||
Income Taxes [Line Items] | |||||
Federal income taxes payable | $ 3,600,000 | $ 3,600,000 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Dec. 31, 2016 | |
Debt Instrument Fair Value Carrying Value [Abstract] | |||
Fair value of assets, level 2 to level 3 transfers | $ 0 | $ 0 | |
Fair value of current long-term debt | 267,900,000 | $ 264,600,000 | |
Principal outstanding value | $ 263,975,000 | $ 264,000,000 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) | Jul. 07, 2017 | Jul. 01, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||
Amount of borrowing | $ 263,975,000 | $ 264,000,000 | |
2016 Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Credit agreement Maturity date | Feb. 21, 2022 | ||
Subsequent Event [Member] | Term Loan Facility [Member] | |||
Subsequent Event [Line Items] | |||
Amount of borrowing | $ 252,000,000 | ||
Subsequent Event [Member] | 2016 Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Voluntary prepayment of debt | 12,000,000 | ||
Subsequent Event [Member] | 2016 Credit Agreement [Member] | Interest Expense, Net [Member] | |||
Subsequent Event [Line Items] | |||
Voluntary prepayment of debt | 12,000,000 | ||
Acceleration of amortization of lenders fees and debt discount | 600,000 | ||
Subsequent Event [Member] | 2016 Credit Agreement [Member] | Minimum [Member] | |||
Subsequent Event [Line Items] | |||
Future cash debt service reduce | $ 3,000,000 |