Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Feb. 07, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 29, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 | --12-29 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 58,082,543 | ||
Entity Public Float | $ 1,022,942,429 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 189,887 | $ 199,084 | $ 169,269 | $ 140,253 | $ 134,100 | $ 126,876 | $ 137,384 | $ 112,721 | $ 698,493 | $ 511,081 | $ 458,550 |
Cost of sales | 455,025 | 352,097 | 318,452 | ||||||||
Gross profit | 65,750 | 72,998 | 59,947 | 44,773 | 42,944 | 39,748 | 44,553 | 31,739 | 243,468 | 158,984 | 140,098 |
Selling, general and administrative expenses | 150,910 | 98,803 | 83,995 | ||||||||
Gains on sales of assets under APA | (2,551) | ||||||||||
Fair value adjustment to contingent consideration | (3,000) | ||||||||||
Income from operations | 95,109 | 60,181 | 59,103 | ||||||||
Interest expense, net | 26,529 | 20,279 | 20,125 | ||||||||
Debt extinguishment costs | 3,375 | 3,431 | |||||||||
Income before income taxes | 65,205 | 39,902 | 35,547 | ||||||||
Income tax expense | 11,272 | 63 | 11,800 | ||||||||
Net income | $ 10,474 | $ 13,571 | $ 22,548 | $ 7,340 | $ 20,293 | $ 6,292 | $ 10,255 | $ 2,999 | $ 53,933 | $ 39,839 | $ 23,747 |
Net income per common share: | |||||||||||
Basic | $ 0.18 | $ 0.26 | $ 0.45 | $ 0.15 | $ 0.41 | $ 0.13 | $ 0.21 | $ 0.06 | $ 1.03 | $ 0.80 | $ 0.49 |
Diluted | $ 0.18 | $ 0.26 | $ 0.43 | $ 0.14 | $ 0.39 | $ 0.12 | $ 0.20 | $ 0.06 | $ 1 | $ 0.77 | $ 0.47 |
Weighted average shares outstanding: | |||||||||||
Basic | 52,461 | 49,522 | 48,856 | ||||||||
Diluted | 54,106 | 51,728 | 50,579 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||||||||
Net income | $ 10,474 | $ 13,571 | $ 22,548 | $ 7,340 | $ 20,293 | $ 6,292 | $ 10,255 | $ 2,999 | $ 53,933 | $ 39,839 | $ 23,747 |
Other comprehensive loss before tax: | |||||||||||
Change in fair value of derivatives | (4,357) | ||||||||||
Reclassification to earnings | 239 | ||||||||||
Other comprehensive loss before tax | (4,118) | ||||||||||
Income tax benefit related to components of other comprehensive loss | 1,053 | ||||||||||
Other comprehensive loss, net of tax | (3,065) | ||||||||||
Comprehensive income | $ 50,868 | $ 39,839 | $ 23,747 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 52,650 | $ 34,029 |
Accounts receivable, net | 80,717 | 60,308 |
Inventories | 44,666 | 37,816 |
Contract assets, net | 6,757 | |
Prepaid expenses | 2,863 | 2,490 |
Other current assets | 7,908 | 9,873 |
Total current assets | 195,561 | 144,516 |
Property, plant and equipment, net | 115,707 | 84,133 |
Intangible assets, net | 271,818 | 115,043 |
Goodwill | 277,827 | 108,060 |
Other assets, net | 1,240 | 1,367 |
Total assets | 862,153 | 453,119 |
Current liabilities: | ||
Accounts payable | 15,288 | 12,911 |
Accrued liabilities | 53,269 | 28,174 |
Current portion of long-term debt | 163 | 294 |
Total current liabilities | 68,720 | 41,379 |
Long-term debt, less current portion | 366,614 | 212,679 |
Deferred income taxes | 22,758 | 22,772 |
Other liabilities | 18,517 | 964 |
Total liabilities | 476,609 | 277,794 |
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; 60,729 and 52,486 shares issued and 58,082 and 49,805 shares outstanding at December 29, 2018 and December 30, 2017, respectively | 607 | 525 |
Additional paid-in-capital | 409,661 | 252,275 |
Accumulated other comprehensive loss | (3,065) | |
Accumulated deficit | (8,900) | (64,716) |
Shareholders' equity | 398,303 | 188,084 |
Less: Treasury stock at cost | (12,759) | (12,759) |
Total shareholders' equity | 385,544 | 175,325 |
Total liabilities and shareholders' equity | $ 862,153 | $ 453,119 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 29, 2018 | Dec. 30, 2017 |
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 | 60,729,000 | 52,486,000 |
Common stock, shares outstanding | 58,082,000 | 49,805,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 53,933 | $ 39,839 | $ 23,747 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 14,225 | 13,051 | 9,577 |
Amortization | 10,225 | 6,477 | 6,096 |
Provision for allowance for doubtful accounts | 1,984 | 576 | 81 |
Stock-based compensation, including special employee grant | 3,383 | 1,948 | 1,769 |
Amortization and write-offs of deferred financing costs | 7,790 | 4,642 | 6,779 |
Debt extinguishment costs | 3,375 | 3,431 | |
Deferred income taxes | (4,962) | (9,066) | 6,277 |
Excess tax benefits on stock-based compensation | (1,872) | ||
Fair value adjustment to contingent consideration | (3,000) | ||
Gains on sales of assets | (2,703) | (452) | (45) |
Change in operating assets and liabilities (net of the effects of the acquisitions): | |||
Accounts receivable | (17,681) | (17,922) | (7,069) |
Inventories | 88 | (7,305) | (152) |
Prepaid expenses and other current assets | 4,214 | (1,024) | 2,215 |
Accounts payable and accrued liabilities | 26,435 | 18,261 | 1,962 |
Net cash provided by operating activities | 100,306 | 49,025 | 46,365 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (29,769) | (17,818) | (17,694) |
Business acquisitions | (354,584) | (101,338) | |
Proceeds from disposals of assets | 5,957 | 3,089 | 45 |
Net cash used in investing activities | (378,396) | (14,729) | (118,987) |
Cash flows from financing activities: | |||
Proceeds from issuance of senior notes | 315,000 | 261,030 | |
Proceeds from issuance of common stock, net of issuance costs | 152,503 | ||
Payments of long-term debt | (160,294) | (40,132) | (203,525) |
Payments of financing costs | (12,066) | (7,178) | |
Purchases of treasury stock | (687) | (284) | (2,847) |
Proceeds from exercise of stock options | 2,239 | 941 | 981 |
Excess tax benefits on stock-based compensation | 1,872 | ||
Other | (14) | (31) | (30) |
Net cash provided by (used in) financing activities | 296,711 | (39,477) | 50,339 |
Net increase (decrease) in cash and cash equivalents | 18,621 | (5,181) | (22,283) |
Cash and cash equivalents at beginning of year | 34,029 | 39,210 | 61,493 |
Cash and cash equivalents at end of year | 52,650 | 34,029 | 39,210 |
Supplemental cash flow information: | |||
Interest paid | 11,145 | 16,329 | 16,015 |
Income tax payments, net of refunds | 19,546 | 46 | 2,231 |
Non-cash activity: | |||
Financed purchase of software license | 590 | ||
Contingent consideration reversed out of accrued liabilities | 3,000 | ||
Property, plant and equipment additions in accounts payable | 197 | 111 | 251 |
Employees Stock Purchase Plan [Member] | |||
Cash flows from financing activities: | |||
Proceeds from issuance of common stock, net of issuance costs | $ 30 | $ 29 | $ 36 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Equity Offering [Member] | Previously Reported [Member] | Common Stock [Member] | Common Stock [Member]Equity Offering [Member] | Common Stock [Member]Previously Reported [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Equity Offering [Member] | Additional Paid-in Capital [Member]Previously Reported [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Previously Reported [Member] | Treasury Stock [Member] | Treasury Stock [Member]Previously Reported [Member] |
Beginning Balance at Jan. 02, 2016 | $ 106,961 | $ 511 | $ 244,944 | $ (128,457) | $ (10,037) | |||||||||
Beginning Balance, Shares at Jan. 02, 2016 | 48,806,435 | |||||||||||||
Grants of restricted stock | $ 3 | (3) | ||||||||||||
Vesting of restricted stock, Shares | 128,590 | |||||||||||||
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 ESPP | $ 36 | 36 | ||||||||||||
Common stock issued under ESPP, 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 | 49,176,149 | |||||||||||||
Ending Balance at Dec. 31, 2016 | 132,852 | $ 519 | 249,647 | (104,555) | (12,759) | |||||||||
Ending Balance, Shares at Dec. 31, 2016 | 49,176,149 | |||||||||||||
Cumulative effect of change in method, net of tax effect | Accounting Standards Update 2016-09 [Member] | 69 | 178 | (109) | |||||||||||
Cumulative effect of change in accounting for unrecognized excess tax benefits | 264 | 264 | ||||||||||||
Grants of restricted stock | $ 3 | (3) | ||||||||||||
Vesting of restricted stock, Shares | 179,679 | |||||||||||||
Forfeitures of restricted stock | $ (1) | 1 | ||||||||||||
Purchases of treasury stock | $ (284) | (284) | ||||||||||||
Purchases of treasury stock, Shares | (23,826) | (23,826) | ||||||||||||
Retirement of treasury stock | (284) | 284 | ||||||||||||
Stock-based compensation | $ 1,948 | 1,948 | ||||||||||||
Exercise of stock options | $ 941 | $ 4 | 937 | |||||||||||
Exercise of stock options, Shares | 470,622 | 470,622 | ||||||||||||
Common stock issued under ESPP | $ 29 | 29 | ||||||||||||
Common stock issued under ESPP, Shares | 2,714 | |||||||||||||
Tax benefit on exercised stock options | Accounting Standards Update 2016-09 [Member] | 1,800 | |||||||||||||
Net income | 39,839 | 39,839 | ||||||||||||
Ending Balance at Dec. 30, 2017 | 175,325 | $ 175,325 | $ 525 | $ 252,275 | $ (64,716) | $ (12,759) | ||||||||
Ending Balance, Shares at Dec. 30, 2017 | 49,805,338 | |||||||||||||
Ending Balance at Dec. 30, 2017 | 177,208 | $ 525 | 252,275 | (62,833) | (12,759) | |||||||||
Ending Balance, Shares at Dec. 30, 2017 | 49,805,338 | |||||||||||||
Cumulative effect of change in method, net of tax effect | Accounting Standards Update 2014-09 [Member] | 1,883 | 1,883 | ||||||||||||
Grants of restricted stock | $ 2 | (2) | ||||||||||||
Vesting of restricted stock, Shares | 162,841 | |||||||||||||
Forfeitures of restricted stock | $ (1) | 1 | ||||||||||||
Purchases of treasury stock | $ (687) | (687) | ||||||||||||
Purchases of treasury stock, Shares | (35,691) | (35,691) | ||||||||||||
Retirement of treasury stock | (687) | 687 | ||||||||||||
Stock-based compensation | $ 2,796 | 2,796 | ||||||||||||
Exercise of stock options | $ 2,239 | $ 11 | 2,228 | |||||||||||
Exercise of stock options, Shares | 1,119,247 | 1,119,247 | ||||||||||||
Common stock issued under equity offering | $ 152,503 | $ 70 | $ 152,433 | |||||||||||
Common stock issued under equity offering, Shares | 7,000,000 | |||||||||||||
Common stock issued in employee grant | $ 587 | 587 | ||||||||||||
Common stock issued in employee grant, Shares | 28,160 | 28,160 | ||||||||||||
Common stock issued under ESPP | $ 30 | 30 | ||||||||||||
Common stock issued under ESPP, Shares | 1,645 | |||||||||||||
Tax benefit on exercised stock options | Accounting Standards Update 2016-09 [Member] | 5,200 | |||||||||||||
Other comprehensiveloss, net of tax effect | (3,065) | $ (3,065) | ||||||||||||
Net income | 53,933 | 53,933 | ||||||||||||
Ending Balance at Dec. 29, 2018 | $ 385,544 | $ 607 | $ 409,661 | $ (3,065) | $ (8,900) | $ (12,759) | ||||||||
Ending Balance, Shares at Dec. 29, 2018 | 58,081,540 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) $ in Thousands | Dec. 31, 2017USD ($) |
Statement Of Stockholders Equity [Abstract] | |
Cumulative effect of change in method of recognizing revenue, net of tax effect | $ 647 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 29, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business PGT Innovations, Inc. (“PGTI”, “we,” or the “Company”), formerly named 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, and in South and Central America. With the acquisition of Western Window Systems (‘WWS’), we also have sales in the western United States. Products are sold through an authorized dealer and distributor network. See Note 5 for a discussion of recent acquisition activities we have undertaken. 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 and one in Arizona. 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. 29, 2018 | |
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 29, 2018, December 30, 2017, and December 31, 2016, consisted of 52 weeks. Principles of consolidation The consolidated financial statements present the results of the operations, financial position and cash flows of PGTI, and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Segment information We operate as one 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 With the adoption of Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” we recognize revenue pursuant to Topic 606 of the Accounting Standards Codification (ASC). See Note 4, “Revenue Recognition and Contracts with Customers.” 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 $29.9 million, $20.6 million and $18.3 million for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively. Advertising We expense advertising costs as incurred. Advertising expense, which is included in selling, general and administrative expenses, was $3.2 million, $1.3 million and $0.2 million for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively. Research and development costs We expense research and development costs as incurred. Research and development costs included in cost of sales were $1.9 million, $1.4 million and $1.7 million for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively. Cash and cash equivalents Cash and cash equivalents consist of cash on hand or highly liquid investments with an original maturity date of three months or less when purchased. Accounts receivable, net In the ordinary course of business, we extend credit to qualified dealers and distributors, generally on a non-collateralized basis. The Company maintains an allowance for doubtful accounts which is based on management’s assessments of the amount which may become uncollectible in the future and is determined through consideration of our write-off history, specific identification of uncollectible accounts based in part on the customer’s past due balance (based on contractual terms), and consideration of prevailing economic and industry conditions. Uncollectible accounts are written off after repeated attempts to collect from the customer have been unsuccessful. December 29, December 30, 2018 2017 (in thousands) Accounts receivable $ 83,506 $ 61,272 Less: Allowance for doubtful accounts (2,789 ) (964 ) Accounts receivable, net $ 80,717 $ 60,308 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 2018, we recorded warranty expense at an average rate of 1.7% of sales. This rate is lower than the average rate of 2.1% of sales accrued in 2017. We assess the adequacy of our warranty accrual on a quarterly 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 of Period Acquired Charged to Expense Adjustments Settlements End of Period (in thousands) Year ended December 29, 2018 $ 5,386 $ 509 $ 11,835 $ (650 ) $ (10,931 ) $ 6,149 Year ended December 30, 2017 $ 5,569 $ - $ 10,675 $ (212 ) $ (10,646 ) $ 5,386 Year ended December 31, 2016 $ 4,237 $ 274 $ 11,064 $ 754 $ (10,760 ) $ 5,569 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 29, 2018 and December 30, 2017. The portion of warranty expense related to the issuance of product of $4.9 million, $4.8 million and $6.8 million is included in cost of sales in the consolidated statements of operations for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, 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 $6.3 million, $5.7 million and $5.0 million, respectively, for the years ended December 29, 2018, December 30, 2017, and December 31, 2016. Inventories Inventories consist principally of raw materials purchased for the manufacture of our products. We have limited finished goods inventory as all products are custom, made-to-order products December 29, December 30, 2018 2017 (in thousands) Raw materials $ 42,036 $ 30,139 Work in progress 2,278 2,506 Finished goods 352 5,171 Inventories $ 44,666 $ 37,816 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 complete and it is probable that computer software being developed will be completed and placed in service. Capitalized costs include: (i) external direct costs of materials and services consumed in developing or obtaining computer software, (ii) payroll and other related costs for employees who are directly associated with and who devote time to the software project, and (iii) interest costs incurred, when material, while developing internal-use software. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Capitalized software as of December 29, 2018, and December 30, 2017, was $22.2 million and $20.0 million, respectively. Accumulated depreciation of capitalized software was $18.8 million and $16.9 million as of December 29, 2018, and December 30, 2017, respectively. Amortization expense for capitalized software was $1.9 million, $1.5 million, and $0.9 million for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, 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 is calculated as 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. 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 one-step method for impairment at a level of reporting referred to as a reporting unit. This quantitative analysis involves identifying potential impairment by comparing the fair value of each reporting unit with its carrying amount and, if the carrying amount of a reporting unit exceeds its fair value, then a charge for goodwill impairment will be recognized in the amount by which a reporting unit’s carrying value exceeds its fair value. For all periods presented, based on a qualitative assessment, we concluded that a quantitative one-step assessment was not required to be performed. Trade names The Company has indefinite-lived intangible assets in the form of trade names. The impairment evaluation of the carrying amount of our trade names 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 trade names 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 trade name, 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 trade names, our only indefinite lived intangible assets. For all periods presented, based on a qualitative assessment, we concluded that a quantitative two-step assessment was not required to be performed for our PGT trade name. During 2018, consistent with management’s announced plan for CGI’s Estate Collection of products, we began the process of rebranding our Estate Collection as WinDoor-branded products. This rebranding aligns the Estate Collection’s status as a high-end, luxury product line, with WinDoor’s focus on the luxury market. We considered this rebranding of CGI’s Estate Collection of products as WinDoor-branded products as triggering events as it results in a shift in revenues from the CGI trade name, to the WinDoor trade name, requiring both the CGI and WinDoor trade names to undergo a quantitative assessments. No impairment was indicated in either quantitative assessment. Derivative financial instruments We utilize certain derivative instruments, from time to time, including forward contracts to manage variability in cash flow associated with commodity market price risk exposure in the aluminum market. We do not enter into derivatives for speculative purposes. 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 of which exceeds federally insured limits. At December 29, 2018, and December 30, 2017, our cash balance exceeded the insured limit by $50.9 million and $32.3 million, respectively. Comprehensive income The Company reports comprehensive income, defined as the total of net income and other comprehensive income (loss), which is composed of all other non-owner changes in equity, and the components thereof, in its consolidated statements of comprehensive income. The components of other comprehensive income (loss) 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-based 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 ultimately vest. 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 13 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 year. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the year, plus the dilutive effect of common stock equivalents using the treasury stock method. There were no anti-dilutive shares outstanding for the year ended December 29, 2018. Our weighted average shares outstanding excludes underlying securities of 19 thousand, and 20 thousand for the years ended December 30, 2017, and December 31, 2016, 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 29, December 30, December 31, 2018 2017 2016 (in thousands, except per share amounts) Numerator: Net income $ 53,933 $ 39,839 $ 23,747 Denominator: Weighted-average common shares - Basic 52,461 49,522 48,856 Add: Dilutive effect of stock compensation plans 1,645 2,206 1,723 Weighted-average common shares - Diluted 54,106 51,728 50,579 Net income per common share: Basic $ 1.03 $ 0.80 $ 0.49 Diluted $ 1.00 $ 0.77 $ 0.47 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted Adoption of ASU 2014-09, “Revenue from Contracts with Customers” We adopted the new revenue recognition standard on December 31, 2017 (the first day of our 2018 fiscal year) using the modified retrospective adoption methodology, whereby the cumulative impact of all prior periods is recorded in retained earnings or other impacted balance sheet line items upon adoption. Under the modified retrospective adoption method, we elected to retroactively adjust, inclusive of all previous modifications, only those contracts that were considered open at the date of initial application. Refer to Note 4, “Revenue Recognition and Contracts with Customers” for further information. Upon adoption, we recognized a net decrease to the fiscal year 2018 opening balance of accumulated deficit of $1.9 million related to sales of $8.7 million, that would have been recognized over time in our prior year ended December 30, 2017. The details of the adjustment to accumulated deficit upon adoption on December 31, 2017 is as follows (in thousands): Cumulative Effect Description of Effects on Line Item Net sales $ 8,704 Additional contract asset sales Cost of sales (5,642 ) Inventory classified as cost of sales SG&A expenses (532 ) Accruals for selling costs Income tax expense (647 ) Estimated income tax effects Net income $ 1,883 Additional net income The following tables reconcile the balances as presented as of and for the year ended December 29, 2018 to the balances prior to the adjustments made to implement the new revenue recognition standard for the same period, for the accompanying consolidated statement of operations, and the consolidated balance sheet. Adoption of the revenue recognition standard did not impact our cash from operating, investing, or financing activities on our condensed consolidated statements of cash flows. (in thousands, except per share amounts): Year Ended December 29, 2018 As Impact of Previous Presented ASU 2014-09 Standard Net sales $ 698,493 $ 2,553 $ 701,046 Cost of sales 455,025 1,875 456,900 Gross profit 243,468 678 244,146 Selling, general and administrative expenses 150,910 104 151,014 Gains on sales of assets under APA (2,551 ) - (2,551 ) Income from operations 95,109 574 95,683 Interest expense, net 26,529 - 26,529 Debt extinguishment costs 3,375 - 3,375 Income before income taxes 65,205 574 65,779 Income tax expense 11,272 146 11,418 Net income $ 53,933 $ 428 $ 54,361 Basic $ 1.03 $ 1.04 Diluted $ 1.00 $ 1.00 Net income $ 53,933 $ 428 $ 54,361 Other comprehensive loss before tax: Change in fair value of derivatives (4,357 ) - (4,357 ) Reclassification to earnings 239 - 239 Other comprehensive loss before tax (4,118 ) - (4,118 ) Income tax benefit related to components of other comprehensive loss 1,053 - 1,053 Other comprehensive loss, net of tax (3,065 ) - (3,065 ) Comprehensive income $ 50,868 $ 428 $ 51,296 At December 29, 2018 As Impact of Previous Presented ASU 2014-09 Standard Cash and cash equivalents $ 52,650 $ - $ 52,650 Accounts receivable, net 80,717 - 80,717 Inventories 44,666 4,186 48,852 Contract assets, net 6,757 (6,757 ) - Prepaid expenses 2,863 - 2,863 Other current assets 7,908 - 7,908 Total current assets 195,561 (2,571 ) 192,990 Property, plant and equipment, net 115,707 - 115,707 Trade name and other intangible assets, net 271,818 - 271,818 Goodwill 277,827 - 277,827 Other assets, net 1,240 - 1,240 Total assets $ 862,153 $ (2,571 ) $ 859,582 Accounts payable $ 15,288 $ - $ 15,288 Accrued liabilities 53,269 64 53,333 Current portion of long-term debt 163 - 163 Total current liabilities 68,720 64 68,784 Long-term debt, less current portion 366,614 - 366,614 Deferred income taxes 22,758 (647 ) 22,111 Other liabilities 18,517 - 18,517 Total liabilities 476,609 (583 ) 476,026 Total shareholders' equity 385,544 (1,988 ) 383,556 Total liabilities and shareholders' equity $ 862,153 $ (2,571 ) $ 859,582 Amounts in the tables above presented under “Previous Standard” represent balances as-if ASU 2014-09 had not been adopted, which primarily reflects finished goods and certain unused glass components directly attributable to noncancelable sales orders and with no alternative future use, and therefore recognized as revenue over time under the new standard but still classified in inventory under the previous standard, and no net contract assets on the condensed consolidated balance sheet. Intangibles-Goodwill and Other-Internal-Use Software In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40)”. The new guidance reduces complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). For public companies, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Implementation should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company early-adopted this guidance in the fourth quarter of 2018. The adoption of this guidance had no effect on our financial position, results of operations or cash flows. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The amendments under ASU 2017-12 refine and expand hedge accounting requirements for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. ASU 2017-12 was effective for us in the first quarter of 2019, but we elected to early-adopt this guidance effective on December 31, 2017, the first day of our 2018 fiscal year. During the year ended December 29, 2018, we entered into aluminum forwards contracts which we have designated as cash flow hedges and are accounting for as derivative financial instruments to which we are applying the provisions of ASU 2017-12. For additional information, see Note 11. Other Income In February 2017, the FASB issued ASU 2017-05, “Other Income - Gain and Losses from the Derecognition of Nonfinancial Assets.” ASU 2017-05 clarifies the scope of Subtopic 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets and adds guidance for partial sales of nonfinancial assets. Subtopic 610-20, which was issued in May 2014 as a part of ASU 2014-09, provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. We adopted this update effective on December 31, 2017, the first day of our 2018 fiscal year. The adoption of this guidance had no impact on our financial position, results of operations or cash flows. Business Combinations In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805) – Clarifying the Definition of a Business.” ASU 2017-01 affects all companies and other reporting organizations that must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 provides a more robust framework to use in determining when a set of assets and activities is a business. It also provides more consistency in applying the guidance, reduces the costs of application, and makes the definition of a business more operable. We adopted this update effective on December 31, 2017, the first day of our 2018 fiscal year. The adoption of this guidance had no impact on our financial position, results of operations or cash flows. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force).” ASU 2016-15 reduces diversity in practice in how certain transactions are classified in the statement of cash flows. We adopted this update effective on December 31, 2017, the first day of our 2018 fiscal year. Accounting Pronouncements Recently Issued, Not Yet Adopted Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. ASU 2016-02 was subsequently amended by ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842”; ASU 2018-10, “Codification Improvements to Topic 842, Leases”; and ASU 2018-11, “Targeted Improvements”. The new standard requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective for us on December 30, 2018 (the first day of our 2019 fiscal year), with early adoption permitted. We expect to adopt the new standard on its effective date. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date, or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We expect to adopt the new standard on December 30, 2018 and use the effective date as our date of initial application. Consequently, financial information will not be updated, and the disclosures required under the new standard will not be provided for dates and periods prior to December 30, 2018. The new standard provides a number of optional practical expedients in transition. We expect to elect the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and direct costs. We do not expect to elect the use-of-hindsight of the practical expedient pertaining to land easements; the later not being applicable to us. The new standard also provides practical expedients for an entity’s ongoing accounting. We currently expect to elect the short-term lease recognition exemption for all leases that qualify, primarily for certain vehicle and office equipment leases that are month-to-month leases. This means, for those leases we will not recognize right-of-use assets or lease liabilities. We also currently expect to elect the practical expedient to not separate lease and non-lease components for all classes of underlying assets. We expect that this standard will have a material effect on our financial position. While we continue to assess all of the effects of adoption, we currently believe the most significant effects relate to the recognition of new right-of-use assets and lease liabilities on our balance sheet for our real estate operating leases and providing significant new disclosures about our leasing activities. We do not expect a significant change in our leasing activities between now and adoption. On adoption, we currently expect to recognize additional operating liabilities of between $30 million and $37 million, with corresponding right-of-use assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. Fair Value Measurement Disclosures In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”. The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date. The Company is currently evaluating the impact of this guidance on its fair value disclosures. Financial Instruments – Credit Losses In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires entities to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. ASU 2016-13 also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. Subsequently, in November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”. ASU 2018-19 clarifies the codification and corrects unintended application of the guidance. ASU’s 2016-13 and 2018-19 are effective for us for our fiscal year beginning after December 15, 2019. We are currently assessing the impact that adopting these new standards updates will have on our consolidated financial statements. |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 12 Months Ended |
Dec. 29, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition and Contracts with Customers | 4. Revenue Recognition and Contracts with Customers New Revenue Recognition Accounting Policy 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 has an enforceable right to payment at the time an order is received and accepted at the agreed-upon sales prices contained in our agreements with our customers for all manufacturing efforts expended by the Company on behalf of its customers. Due to the customized build-to-order nature of the Company’s products, the Company’s assessment is that substantially all its finished goods and certain unused glass components have no alternative use, and that control of these products and components passes to the customer over time during the manufacturing of the products in an order, or upon our receipt of certain pre-cut glass components from our supplier attributed to specific customer orders. Based on these factors, the Company recognizes revenue over time during the manufacturing process, and for certain unused glass components on hand, at the end of a reporting period. Disaggregation of Revenues from Contracts with Customers The following table provides information about our revenue differentiated based on product category (dollars in millions): Year Ended December 29, 2018 Sales % of sales Product category: Impact-resistant window and door products $ 561.8 80.4 % Non-impact window and door products 136.7 19.6 % Total net sales $ 698.5 100.0 % Contract Balances Contract assets represent sales recognized in excess of billings related to finished goods not yet shipped and certain unused glass components not yet placed into the production process for which revenue is recognized over time as noted above. Contract liabilities as reflected in the table below are customer deposits on orders related to contract assets. The following table provides information about contract asset and liability balances as of and for the year ended December 29, 2018, and as of December 31, 2017, the first day of our 2018 fiscal year and the date of our adoption of ASU 2014-09 (in thousands): Contract Contract Contract Assets, Year ended December 29, 2018: Assets Liabilities Net At December 29, 2018 $ 7,209 $ (452 ) $ 6,757 Less: Acquired with WWS 1,058 (168 ) 890 Less: At December 31, 2017 8,704 (528 ) 8,176 Net increase (decrease) $ (2,553 ) $ 244 $ (2,309 ) Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is defined as the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue as the performance obligation is satisfied. Our contracts with our customers generally represent an approved purchase order, which is typically accounted for as a single performance obligation. In situations when our contract includes distinct goods that are substantially the same and have the same pattern of transfer to the customer over time, they are recognized as a series of distinct goods. We allocate the contract’s transaction price to each distinct product based on the estimated relative standalone selling price of each distinct good. Observable standalone sales are used to determine the standalone selling price. Performance obligations are satisfied over time, generally for our custom products, and as of a point in time for our standard products. Performance obligations are supported by contracts with customers, and we have elected not to disclose our unsatisfied performance obligations as of December 29, 2018 under the short-term contract exemption as we expect such performance obligations will be satisfied within the quarter following December 29, 2018. Policies Regarding Shipping and Handling Costs and Commissions on Contract Assets The Company has made a policy election to continue to recognize shipping and handling costs as a fulfillment activity. Treating shipping and handling as a fulfillment activity requires estimated shipping and handling costs for undelivered products and certain glass components on which we have recognized revenue and created a contract asset, to be accrued to match this cost with the recognized revenue. This policy is unchanged from the Company’s policy for recognizing shipping and handling costs prior to the adoption of the new revenue guidance. The newly adopted revenue guidance provides for a practical expedient which permits expensing of costs to obtain a contract when the expected amortization period is one year or less, which typically results in expensing commissions paid to employees. We continue to expense sales commissions paid to employees as sales are recognized, including sales from the creation of contract assets, as the expected amortization period is less than one year. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions Western Window Systems On August 13, 2018, PGT Innovations, Inc. completed the acquisition (the “WWS Acquisition”). Headquartered in Phoenix, Arizona, Western Window Systems designs and manufactures contemporary door and window systems that unify indoor/outdoor living for the residential, commercial and multi-family markets. As a result of the PA, WWS became a wholly-owned subsidiary of PGT Innovations, Inc. and its accounts and results are reflected in the accompanying consolidated financial statements as of and from August 13, 2018. Preliminary Purchase Price Allocation The fair value of consideration transferred in the WWS Acquisition was $354.6 million. The WWS Acquisition was financed primarily with proceeds of $315.0 million from the issuance of the 2018 Senior Notes due 2026, and with $39.6 million in cash on hand. See Note 10 for a discussion of the 2018 Senior Notes due 2026. The fair value of assets acquired, and liabilities assumed as of the closing date, are as follows: Initial Allocation Adjustments to Allocation Current Allocation Accounts and notes receivable $ 7,555 $ (217 ) $ 7,338 Inventories 12,580 - 12,580 Contract assets, net 890 - 890 Prepaid expenses and other assets 1,190 - 1,190 Property and equipment 16,416 (447 ) 15,969 Intangible assets 167,000 - 167,000 Goodwill 164,379 5,388 169,767 Accounts payable (5,622 ) - (5,622 ) Accrued and other liabilities (9,175 ) - (9,175 ) Deferred income tax liabilities - (5,353 ) (5,353 ) Purchase price $ 355,213 $ (629 ) $ 354,584 Consideration: Cash $ 355,213 $ (629 ) $ 354,584 Total fair value of consideration $ 355,213 $ (629 ) $ 354,584 The fair value of certain working capital related items, including accounts receivable, prepaid expenses, and accounts payable and accrued liabilities, approximated their book values at the date of the WWS Acquisition. The fair value of inventory was estimated by major category, at net realizable value. The substantial majority of inventories at the acquisition date was composed of raw materials. The fair value of property and equipment and remaining useful lives were estimated by management, with the assistance of a third-party valuation firm, using the cost approach. Valuations of the intangible assets (See Note 12) were done using income and royalty relief approaches based on projections provided by management, which we consider to be Level 3 inputs. The WWS Acquisition included its subsidiary, WWS Blocker LLC (Blocker). Blocker was a single-purpose U.S. tax blocker which held a 18.06% ownership percentage of the combined ownership of WWS, and for which that portion of the fair value of assets acquired and liabilities assumed in the WWS Acquisition was not eligible for a step-up in basis. As a result, we recorded a net deferred tax liability of $5.4 million in the WWS Acquisition, primarily relating to the fair value of the acquired identifiable indefinite-lived and amortizable intangible assets. This amount is subject to change pending finalization of the purchase allocation for tax purposes with the Seller. See Note 13 for details of the components of the net deferred tax liability recorded in the WWS Acquisition. Costs totaling $3.8 million relating to the WWS Acquisition are included in selling, general, and administrative expenses on the consolidated statement of operations for the year ended December 29, 2018, and relates to legal expenses, representations and warranties insurance, diligence, accounting and printing services. The remaining consideration, after identified intangible assets and the net assets and liabilities recorded at fair value, has been preliminarily determined to be $169.8 million, of which we estimate $139.6 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 penetration of a new geographic market with enhanced opportunities for cross-selling of our multiple brands in all markets. If our preliminary value of assets and liabilities changes, there will be an equal and offsetting change to the recorded goodwill. The PA has a post-closing working capital calculation whereby we are 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. We finalized our calculation of closing date net working capital, as defined in the PA, which has been agreed to by the Seller. The calculation resulted in a net decrease in purchase price of $0.6 million. Net sales of WWS included in the consolidated statement of operations for year ended December 29, 2018, from WWS from the August 13, 2018 acquisition date was $49.7 million. The earnings of WWS in the consolidated statement of operations for the year ended December 29, 2018 were de minimis after allocation of interest cost to WWS. Preliminary Valuation of Identified Intangible Assets We are in the process of finalizing the valuation of the identifiable intangible assets acquired in the WWS Acquisition. The preliminary values and our estimate of their respective useful lives are as follows: Preliminary Initial Valuation Useful Life Amount (in years) (in thousands) Trade names $ 73,000 indefinite Customer relationships 94,000 10 Other intangible assets, net $ 167,000 Pro Forma Financial Information The following unaudited pro forma financial information assumes the acquisition had occurred at the beginning of the earliest period presented. Pro forma results have been prepared by adjusting our historical results to include the results of WWS adjusted for the following: amortization expense related to the amortizable intangible assets arising from the acquisition, interest expense to reflect the 2018 Senior Notes issued in connection with the acquisition. The following pro forma results of WWS do not include any adjustment for the adoption of the revenue recognition guidance under Topic 606 at the beginning of each period as it was not practicable to determine its effects. 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 29, December 30, Pro Forma Results (unaudited) 2018 2017 (in thousands, except per share amounts) Net sales $ 775,473 $ 611,240 Net income $ 50,407 $ 29,270 Net income per common share: Basic $ 0.96 $ 0.59 Diluted $ 0.93 $ 0.57 WinDoor, Inc. Purchase Price Allocation 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 due 2022, and with $43.5 million of cash on hand. The fair value of assets acquired and liabilities assumed as of the closing date, were as follows (in thousands): Allocation: 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 Contingent consideration 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. Valuations of the intangible assets (See Note 8) 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. 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 being deducted 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 contingency payment to sellers had WinDoor achieved a certain level of sales in the calendar year ended December 31, 2016. 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. Based on revised estimates using actual sales through the end of the 2016 third quarter, we concluded the probability was remote that WinDoor’s actual sales for 2016 would reach the $46.0 million minimum level required for the minimum payment of $2.7 million possible under the earn-out contingency arrangement and, therefore, determined that the entire initial estimated fair value of $3.0 million should be reversed. 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 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. Pro Forma Financial Information 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 due 2022 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, Pro Forma Results (unaudited) 2016 (in thousands, except per share amounts) Net sales $ 461,011 Net income $ 22,402 Net income per common share: Basic $ 0.46 Diluted $ 0.44 |
Sale of Assets
Sale of Assets | 12 Months Ended |
Dec. 29, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Sale of Assets | 6. Sale of Assets On September 22, 2017, we entered into an Asset Purchase Agreement (APA) with Cardinal LG Company (Cardinal) for the sale to Cardinal of certain manufacturing equipment we used in processing glass components for PGT-branded doors for a cash purchase price of $28.0 million. Contemporaneously with entering into the APA, we entered into a seven-year supply agreement (SA) with Cardinal for Cardinal to supply us with glass components for PGT-branded doors. The Company determined to sell these assets and enter the SA to allow us to heighten our focus in our core areas of window and door manufacturing and, at the same time, strengthen our supply chain for high-quality door glass from a supplier with whom we have been doing business for many years. The Company has determined that, although the APA and SA are separate agreements, they were negotiated contemporaneously. Therefore, the Company has concluded that the $28.0 million of proceeds under the APA should be bifurcated between the sale of the door glass manufacturing assets, and as payment received from a supplier for the Company’s agreement to buy glass components for PGT-branded doors from Cardinal under the SA. The bifurcation of the proceeds in excess of the stand-alone selling price of the assets acquired would be allocated to the SA and recognized as a reduction of cost of sales as glass components are purchased by PGTI. Based on the established stand-alone selling price of the assets sold, as determined by an independent appraisal, approximately $7.7 million was allocated to the sale of the assets, with the remaining $20.3 million representing consideration received from Cardinal related to the agreement to buy door glass components for PGT-branded doors from Cardinal. This consideration is being amortized over the seven-year term of the SA. At the time we ceased using these assets in production, at which time they became available for immediate sale, their net book value was $4.7 million, and they were reclassified from property, plant and equipment, to assets held for sale within other current assets. The APA provided for the transfer of the assets from the Company to Cardinal in two phases, with the first date in 2017, and the second date in 2018, on dates which the Company and Cardinal agree to use. Under the APA, the cash purchase price of $28.0 million was to be paid by Cardinal to the Company in three separate payments of $3 million on or about the time of the first transfer of the assets to Cardinal, $10 million on or about January 15, 2018, and $15 million at or about the time of the second transfer of assets to Cardinal. Cardinal paid us $3.0 million in cash on November 1, 2017, $10.0 million in cash on January 16, 2018, and $14.8 million on June 8, 2018, pursuant to the APA. The total proceeds received of $27.8 million was $0.2 million less than the $28.0 million as specified in the APA as we retained certain assets that were initially identified for transfer. On December 15, 2017, machinery and equipment classified as assets held for sale with net book value of $1.5 million, and fair value of $1.9 million was transferred to Cardinal and their equipment rigger, and we recognized a gain for the difference. Substantially all of the remaining machinery and equipment was transferred to Cardinal during the second quarter of 2018, which had a net book value of $3.2 million and fair value of $5.8 million. We recognized gains on disposals for the difference totaling $2.6 million during the year ended December 29, 2018, classified as a separate line item in the accompanying consolidated statement of operations. The SA provides that the Company will purchase, and Cardinal will supply, all the Company’s requirements for certain glass components used in PGT-branded doors through the end of 2024. The terms of the manufacture by Cardinal and purchase by the Company of such glass components as to purchase orders, forecasts of purchases, pricing, invoicing, delivery and payment terms and other terms, are all as described in the SA. Early in the fourth quarter of 2017, we began purchasing and receiving glass components from Cardinal under the SA. At that time, we began amortizing the advance consideration received from Cardinal initially allocated to the SA, recognizing $628 thousand in the year ended December 30, 2017, and $2.8 million and in the year ended December 29, 2018, which is classified as reductions to cost of sales in the accompanying consolidated statements of operations. The remaining unamortized balance of $16.7 million is classified in the accompanying consolidated balance sheet as of December 29, 2018, as $2.8 million within accrued liabilities and $13.9 million within other liabilities. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 29, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 7. Property, Plant and Equipment The following table presents the composition of property, plant and equipment as of: December 29, December 30, 2018 2017 (in thousands) Land $ 6,664 $ 6,298 Buildings and improvements 71,319 53,703 Machinery and equipment 98,917 79,015 Vehicles 13,592 12,914 Software 22,173 19,989 Construction in progress 7,617 7,347 Property, plant and equipment 220,282 179,266 Less: Accumulated depreciation (104,575 ) (95,133 ) Property, plant and equipment, net $ 115,707 $ 84,133 The Company recognized depreciation expense of $14.2 million, $13.1 million, and $9.6 million related to property, plant and equipment during the years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively. As of December 30, 2017, property, plant and equipment with net book value of $4.7 million were transferred to assets held for sale related to the sale of machinery and equipment to Cardinal. See note 6. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 8. Goodwill and Intangible Assets Goodwill and i ntangible assets are as follows as of: Initial December 29, December 30, Useful Life 2018 2017 (in years) (in thousands) Goodwill $ 277,827 $ 108,060 indefinite Other intangible assets: Trade names $ 148,841 $ 75,841 indefinite Customer relationships 200,647 106,647 3-10 Developed technology 3,000 3,000 9-10 Non-compete agreements 1,668 1,668 2-5 Software license 590 590 2 Less: Accumulated amortization (82,928 ) (72,703 ) Subtotal 122,977 39,202 Other intangible assets, net $ 271,818 $ 115,043 Goodwill at December 30, 2017 $ 108,060 Increase in goodwill from allocation of WWS purchase price 169,767 Goodwill at December 29, 2018 $ 277,827 Tradenames at December 30, 2017 $ 75,841 Increase in tradenames from the acquisition of WWS 73,000 Tradenames at December 29, 2018 $ 148,841 Amortizable Intangible Assets We test amortizable intangible assets for impairment when indicators of impairment exist. No impairment was recorded for any period presented. Estimated amortization of our customer relationships, developed technology, non-compete agreement, and software license intangible assets is as follows for future fiscal years: (in thousands) Total 2019 $ 15,830 2020 15,859 2021 15,374 2022 14,515 2023 12,354 Thereafter 49,045 Total $ 122,977 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 29, 2018 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 9. Accrued Liabilities Accrued liabilities consisted of the following as of: December 29, December 30, 2018 2017 Accrued liabilities (in thousands) Accrued payroll and benefits $ 16,498 $ 8,700 Customer deposits 7,810 3,540 Accrued warranty 5,182 4,443 Accrued federal and state income taxes 3,189 6,497 Accrued interest 8,700 1,029 Advance supplier consideration 2,808 517 Accrued health claims insurance payable 954 806 Fair value of derivative financial instruments 3,907 - Other 4,221 2,642 Accrued liabilities $ 53,269 $ 28,174 Other accrued liabilities are comprised primarily of state sales taxes, property taxes and customer rebates. See Note 6 for a discussion of the net advance supplier consideration relating to the SA with Cardinal Glass Industries. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 10. Long-Term Debt Long-term debt consists of the following: December 29, December 30, 2018 2017 (in thousands) 2018 Senior Notes Due 2026 - Senior notes issued on August 10, 2018, due August 10, 2026. Interest payable semi- annually, in arrears, beginning on February 16, 2019, accruing at a rate of 6.75% per annum beginning August 10, 2018. $ 315,000 $ - 2016 Credit Agreement Due 2022 - Term loan payable with initial contractual quarterly payments of $0.675 million. A lump sum payment of $64.0 million due on February 15, 2022. Interest payable quarterly at LIBOR or the Base prime rate plus an applicable margin. At December 29, 2018, the average rate was 2.34% plus a margin of 3.50%. At December 30, 2017, the average rate was 1.46% plus a margin of 4.75%. 63,975 223,975 Other debt 163 458 Long-term debt 379,138 224,433 Fees, costs and original issue discount (1) (12,361 ) (11,460 ) Long-term debt, net 366,777 212,973 Less current portion of long-term debt (163 ) (294 ) Long-term debt, net, less current portion $ 366,614 $ 212,679 (1) 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, and is being amortized over the life of the debt instrument under the effective interest method. 2018 Senior Notes Due 2026 On August 10, 2018, we completed the issuance of $315.0 million aggregate principal amount of 6.75% senior notes (“2018 Senior Notes Due 2026”), issued at 100% of their principal amount. The 2018 Senior Notes due 2026 are jointly and severally and fully and unconditionally guaranteed on a senior unsecured basis by each of the Company’s existing and future restricted subsidiaries, other than any restricted subsidiary of the Company that does not guarantee the existing senior secured credit facilities or any permitted refinancing thereof. The 2018 Senior Notes due 2026 are senior unsecured obligations of the Company and the guarantors, respectively, and rank pari passu in right of payment with all existing and future senior debt and senior to all existing and future subordinated debt of the Company and the guarantors. The 2018 Senior Notes due 2026 were offered under Rule 144A of the Securities Act, and in transactions outside the United States under Regulation S of the Securities Act, and have not been, and will not be, registered under the Securities Act. The 2018 Senior Notes due 2026 mature on August 10, 2026. Interest on the 2018 Senior Notes due 2026 is payable semi-annually, in arrears, beginning on February 16, 2019, with interest accruing at a rate of 6.75% per annum from August 10, 2018. We incurred financing costs relating to bank fees and professional services costs relating to the offering and issuance of the 2018 Senior Notes due 2026 totaling $10.4 million, which is being amortized under the effective interest method. See “Deferred Financing Costs” below. As of December 29, 2018, the face value of debt outstanding under the 2018 Senior Notes due 2026 was $315.0 million, and accrued interest totaled $8.3 million. The indenture for the 2018 Senior Notes due 2026 gives us the ability to optionally redeem some or all of the 2018 Senior Notes due 2026 at the redemption prices and on the terms specified in the indenture governing the 2018 Senior Notes due 2026. The indenture governing the 2018 Senior Notes due 2026 does not require us to make any mandatory redemptions or sinking fund payments. However, upon the occurrence of a change of control, as defined in the indenture, the Company is required to offer to repurchase the notes at 101% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase. The indenture for the 2018 Senior Notes due 2026 includes certain covenants limiting the ability of the Company and any guarantors to, (i) incur additional indebtedness; (ii) pay dividends on or make distributions in respect of capital stock or make certain other restricted payments or investments; (iii) enter into agreements that restrict distributions from restricted subsidiaries; (iv) sell or otherwise dispose of assets; (v) enter into transactions with affiliates; (vi) create or incur liens; merge, consolidate or sell all or substantially all of the Company’s assets; (vii) place restrictions on the ability of subsidiaries to pay dividends or make other payments to the Company; and (viii) designate the Company’s subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of important exceptions and qualifications. 2016 Credit Agreement Due 2022 On February 16, 2016, we entered into the 2016 Credit Agreement due 2022, among us, the lending institutions identified in the 2016 Credit Agreement due 2022, and SunTrust Bank, as Administrative Agent and Collateral Agent. The 2016 Credit Agreement due 2022 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 amortizes on a basis of 1% annually during its six-year term, and a $40.0 million revolving credit facility maturing in February 2021 that includes a swing line facility and a letter of credit facility. Our obligations under the 2016 Credit Agreement due 2022 are subject to exceptions, guaranteed by substantially all of our wholly-owned direct and indirect subsidiaries that are restricted subsidiaries and secured by substantially all of our assets as well as our direct and indirect restricted subsidiaries’ assets. On March 16, 2018, we entered into an amendment of our 2016 Credit Agreement due 2022. The Second Amendment, among other things, decreases the applicable interest rate margins for the Initial Term Loans (as defined in the 2016 Credit Agreement due 2022) from (i) 3.75% to 2.50%, in the case of the Base Rate Loans (as defined in the 2016 Credit Agreement due 2022), and (ii) 4.75% to 3.50%, in the case of the Eurodollar Loans (as defined in the 2016 Credit Agreement due 2022). On February 17, 2017, we entered into the first amendment to our 2016 Credit Agreement due 2022, which also resulted in decreases in the applicable margins, but which did not include any changes in lender positions. In connection with the Second Amendment, certain existing lenders changed their positions in or exited the 2016 Credit Agreement due 2022, which resulted in the write-offs of portions of the deferred financing costs and original issue discount allocated to these lenders. Additionally, at the time of the issuance of the 2018 Senior Notes due 2026, certain existing lenders reduced their positions in the revolving credit portion of the 2016 Credit Agreement due 2022, which resulted in the write-offs of the deferred financing costs allocated to these lenders. As such, write-offs totaling $3.4 million is classified as debt extinguishment costs in the accompanying consolidated statement of operations for the year ended December 29, 2018. Regarding the first amendment as described above, as there were no changes in lender positions, this action did not result in any modifications or extinguishments of debt. Therefore, there was no charge for debt extinguishment costs in the year ended December 30, 2017. Interest on all loans under the 2016 Credit Agreement due 2022 is payable either quarterly or at the expiration of any LIBOR interest period applicable thereto. Prior to amending the 2016 Credit Agreement due 2022 on March 16, 2018, as described above, 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 475 basis points in the case of LIBOR and 375 basis points in the case of the base rate. The weighted average all-in interest rate for borrowings under the term-loan portion of the 2016 Credit Agreement due 2022 was 5.84% as of December 29, 2018, and was 6.21% at December 30, 2017. We also 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. As of December 29, 2018, there were $1.1 million of letters of credit outstanding and $38.9 million available under the revolver. The 2016 Credit Agreement due 2022 contains a springing financial covenant that would apply if we draw in excess of twenty percent (20%) of the revolving facility commitment (excluding $7.5 million of undrawn letters of credit and letters of credit and draws thereunder that are cash collateralized at 105% of the stated amount thereof from such availability test). To the extent in effect, the springing financial covenant would prohibit us from exceeding a maximum first lien net leverage ratio (based on the ratio of total first lien (less unrestricted cash) debt to EBITDA) as of the last day of each applicable fiscal quarter. To the extent the springing financial covenant is in effect, the first lien net leverage ratio cannot exceed 4.25:1.00 as of the last day of the fiscal quarter ending on December 29, 2018 and 4.00:1.00 on the last date of each fiscal quarter ending thereafter. We were not required to test our first lien net leverage ratio for the quarter ending December 29, 2018 because we did not exceed 20% of our revolving capacity. The 2016 Credit Agreement due 2022 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, entry into restrictive agreements, prepayments of certain debt and transactions with affiliates, in each case, subject to exceptions and qualifications. The 2016 Credit Agreement due 2022 also contains customary events of default. Upon the occurrence of an event of default, the amounts outstanding under the 2016 Credit Agreement due 2022 may be accelerated and may become immediately due and payable. On September 18, 2018, contemporaneously with the 2018 Equity Issuance, we prepaid $152.0 million in borrowings outstanding under the term loan portion of the 2016 Credit Agreement due 2022. On December 19, 2018, we voluntarily prepaid an additional $8.0 million in borrowings under the 2016 Credit Agreement due 2022. As of December 29, 2018, the principal amount of debt outstanding under the 2016 Credit Agreement due 2022 was $64.0 million, and accrued interest was $0.4 million. Interest expense, net, in the consolidated statement of operations in the year ended December 29, 2018 includes $5.6 million of accelerated amortization of lenders fees and discount relating to the prepayments of $152.0 million and $8.0 million of borrowings under the term loan portion of the 2016 Credit Agreement due 2022 we made. Deferred Financing Costs All debt-related fees, costs and original issue discount, including those related to the revolving credit portion of the facility, is classified as a reduction of the carrying value of long-term debt. The activity relating to third-party fees and costs, lender fees and discount for the year ended December 29, 2018, are as follows: (in thousands) Total At beginning of year $ 11,460 Less: Amortization expense relating to 2016 Credit Agreement due 2022 (1,861 ) Add: Second amendment of 2016 Credit Agreement refinancing costs 1,687 Less: Debt extinguishment costs relating to second amendment and revolver repositioning (3,375 ) Add: 2018 Senior Notes deferred financing costs 10,379 Less: Amortization expense relating to 2018 Senior Notes due 2026 (372 ) Less: Accelerated amortization relating to prepayment under the 2016 Credit Agreement due 2022 (5,557 ) At end of year $ 12,361 Estimated amortization expense relating to third-party fees and costs, lender fees and discount for the years indicated, as of December 29, 2018, is as follows: (in thousands) Total 2019 $ 1,752 2020 1,913 2021 1,893 2022 1,353 2023 1,359 Thereafter 4,091 Total $ 12,361 As a result of prepayments of the term loan portion of the 2016 Credit Agreement due 2022 totaling $204.0 million since its inception in February 2016, 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, including other debt relating to our software license financing arrangement, as of December 29, 2018, are as follows (at face value): (in thousands) Total 2019 $ 163 2020 - 2021 - 2022 63,975 2023 - Thereafter 315,000 Total $ 379,138 Other Debt In July 2017, we entered into a two-year financing arrangement for the purchase of an enterprise-wide software license relating to office productivity software. This financing arrangement requires 24 monthly payments of $26 thousand each. We estimated the value of this financing arrangement to be $590 thousand, using an imputed annual interest rate of 6.00%, which approximates our borrowing rate under the 2016 Credit Agreement due 2022, a Level 3 input. Interest Expense, Net Interest expense, net consisted of the following: Year Ended December 29, December 30, December 31, 2018 2017 2016 (in thousands) Long-term debt $ 18,946 $ 15,644 $ 17,351 Debt fees 251 290 296 Amortization and write-offs of deferred financing costs and debt discount 7,790 4,642 2,721 Interest income (389 ) (236 ) (105 ) Interest expense 26,598 20,340 20,263 Capitalized interest (69 ) (61 ) (138 ) Interest expense, net $ 26,529 $ 20,279 $ 20,125 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 11. Derivatives Aluminum Forward Contracts We enter into aluminum forward contracts to hedge the fluctuations in the purchase price of aluminum extrusion (the contractually specific component) we use in production. Our contracts are designated as cash flow hedges since they are highly effective in offsetting changes in the cash flows attributable to forecasted purchases of aluminum. We record our hedge contracts at fair value, which takes into consideration our credit risk for contracts in a liability position, and our counter-party’s credit risk for contracts in an asset position, in determining fair value. We assess our counter-party’s risk of non-performance when measuring the fair value of financial instruments in an asset position by evaluating their financial position, including cash on hand, as well as their credit ratings. We assess our risk of non-performance when measuring the fair value of our financial instruments in a liability position by evaluating our credit ratings, our current liquidity including cash on hand and availability under our revolving credit facility as compared to the maturities of the financial liabilities. At December 29, 2018, the fair value of our aluminum forward contracts was in a net liability Gains or losses on our aluminum forward contracts is reported as a component of accumulated other comprehensive loss and is reclassified into earnings in the same line item in the income statement as the hedged item in the same period or periods during which the transaction affects earnings. The amount of losses, net, recognized in the “accumulated other comprehensive loss” line item in the accompanying condensed consolidated balance sheet as of December 29, 2018, that we expect will be reclassified to earnings within the next twelve months, will be approximately $3.9 million. The fair value of our aluminum hedges are classified in the accompanying consolidated balance sheets as follows (in thousands): Derivative Assets Derivative (Liabilities) December 29, 2018 December 29, 2018 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum forward contracts Other current assets $ - Accrued liabilities $ (3,907 ) Aluminum forward contracts Other assets - Other liabilities (211 ) Total derivative instruments Total derivative assets $ - Total derivative liabilities $ (4,118 ) The ending accumulated balance for the aluminum forward contracts included in accumulated other comprehensive losses, net of tax, was $3.1 million as of December 29, 2018. We had no outstanding derivative contracts as of December 30, 2017. The following represents the gains (losses) on derivative financial instruments, and their classifications within the accompanying consolidated financial statements for the year ended December 29, 2018 (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income Year Ended Year Ended December 29, December 29, 2018 2018 Aluminum contracts $ (4,357 ) Cost of sales $ (239 ) |
Fair Value
Fair Value | 12 Months Ended |
Dec. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 12. Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A three-tier fair value hierarchy is used to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The accounting guidance concerning fair value allows us to elect to measure financial instruments at fair value and report the changes in fair value through earnings. This election can only be made at certain specified dates and is irrevocable once made. We do not have a policy regarding specific assets or liabilities to elect to measure at fair value, but rather we make the election on an instrument-by-instrument basis as they are acquired or incurred. During 2018, 2017, or 2016, 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 include cash, accounts and notes receivable, and accounts payable, accrued liabilities and other debt, whose carrying amounts approximate their fair values due to their short-term nature. Our financial instruments also include borrowings under our 2016 Credit Agreement due 2022, as well as the 2018 Senior Notes due 2026, both classified as long-term debt. The fair value of borrowings under the 2016 Credit Agreement due 2022 is based on debt with similar terms and characteristics and was approximately $63.2 million as of December 29, 2018, compared to a principal outstanding value of $64.0 million, and $227.3 million as of December 30, 2017, compared to a principal outstanding value of $224.0 million. The fair value of the recently issued 2018 Senior Notes due 2026 is also based on debt with similar terms and characteristics and was approximately $311.9 million as of December 29, 2018, compared to a principal outstanding value of $315.0 million. The 2018 Senior Notes due 2026 were not outstanding at the end of our 2017 fiscal year. Fair values were determined based on observed trading prices of our debt between domestic financial institutions, which we consider to be Level 2 inputs. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes Income Tax Expense 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 29, December 30, December 31, 2018 2017 2016 Current: Federal $ 11,818 $ 8,063 $ 4,602 State 4,416 1,066 921 16,234 9,129 5,523 Deferred: Federal (3,407 ) (10,010 ) 5,371 State (1,555 ) 944 906 (4,962 ) (9,066 ) 6,277 Income tax expense $ 11,272 $ 63 $ 11,800 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 29, December 30, December 31, 2018 2017 2016 Consolidated statements of income: Income tax expense relating to continuing operations $ 11,272 $ 63 $ 11,800 Consolidated statements of shareholders' equity: Income tax expense relating to derivative financial instruments $ (1,053 ) $ - $ - Income tax benefit relating to share-based compensation $ - $ - $ (1,872 ) Reconciliation of the Statutory Rate to the Effective Rate A reconciliation of the statutory federal income tax rate to our effective rate is provided below: Year Ended December 29, December 30, December 31, 2018 2017 2016 Statutory federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 4.5 % 3.8 % 3.8 % Change in net deferred tax liability related to U.S. tax reform 0.4 % (31.1 )% - Excess stock-based compensation tax benefits (8.0 )% (4.6 )% - Disaster tax credit for Hurricane Irma (0.7 )% - - Domestic manufacturing deduction - (2.5 )% (1.8 )% Research activities credits (0.7 )% (0.2 )% (2.8 )% Florida jobs creation incentive credits - (0.5 )% (0.6 )% Change in valuation allowance on deferred tax assets - - (0.2 )% Non-deductible expenses 0.9 % 0.5 % 0.2 % Other (0.1 )% (0.2 )% (0.4 %) 17.3 % 0.2 % 33.2 % Acquisition of WWS As described in Notes 1 and 5, on August 13, 2018, we completed the WWS Acquisition, which included its subsidiary, WWS Blocker LLC (Blocker). Blocker was a single-purpose U.S. tax blocker which held a 18.06% ownership percentage of the combined ownership of WWS, and for which that portion of the fair value of assets acquired and liabilities assumed in the WWS Acquisition was not eligible for a step-up in basis. As a result, we recorded a net deferred tax liability in the WWS Acquisition, primarily relating to the fair value of the acquired identifiable indefinite-lived and amortizable intangible assets. This amount is subject to change pending finalization of the purchase allocation for tax purposes with the Seller. The components of the net deferred tax liability recorded in the WWS Acquisition is as follows: Deferred tax (liabilities) relate to: Current Estimate Amortizable intangible assets $ (1,082 ) Other indefinite lived intangible assets (3,372 ) Property, plant and equipment (759 ) Other (140 ) Net deferred tax liability $ (5,353 ) Deferred Income Taxes 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 29, December 30, 2018 2017 (in thousands) Deferred tax assets: Advance supplier consideration $ 4,280 $ 132 Other deferrals and accruals, net 2,100 691 Stock-based compensation expense 1,796 1,663 Accrued warranty 1,442 1,378 State bonus depreciation and net operating loss carryforwards 1,414 965 Derivative financial instruments 1,053 - Acquisition costs 1,022 306 Allowance for doubtful accounts 642 292 Obsolete inventory and UNICAP adjustment 515 412 Total deferred tax assets 14,264 5,839 Deferred tax liabilities: Trade names and other intangible assets, net (20,935 ) (16,749 ) Property, plant and equipment (10,741 ) (8,056 ) Goodwill (5,092 ) (3,099 ) Deferred financing costs - (659 ) Prepaid expenses (254 ) (48 ) Total deferred tax liabilities (37,022 ) (28,611 ) Total deferred tax liabilities, net $ (22,758 ) $ (22,772 ) Tax-Deductible Goodwill 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 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 acquisition of assets and assumption of liabilities pursuant to our election under section 338(h)(10) of the Internal Revenue Code. We are deducting goodwill for tax purposes of $38.9 million from the WinDoor transaction. The unamortized amount of this goodwill was $31.3 million and $33.9 million at December 29, 2018, and December 30, 2017, respectively. We have goodwill deductible for tax purposes in the US Impact 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 $569 thousand from the USI transaction. The unamortized amount of this goodwill was $478 thousand and $515 thousand at December 29, 2018, and December 30, 2017, respectively. We have goodwill deductible for tax purposes in the WWS Acquisition as the transaction. Goodwill relating to the 81.94% portion of the transaction treated as a step-up acquisition of assets and assumption of liabilities totaled $133.6 million. We expect to be able to deduct this goodwill for tax purposes. The unamortized amount of this goodwill was approximately $129.9 million at December 29, 2018. WWS has historical tax goodwill, of which the 18.06% portion of the Blocker treated as an acquisition of stock not eligible for step-up totaled $6.0 million. The unamortized portion of this goodwill was approximately $5.8 million at December 29, 2018. This component can continue to be deducted by the Company for tax purposes. Net Operating Loss Carryforwards and Valuation Allowance We estimate that we have $1.4 million of tax-affected state operating loss carryforwards, as of December 29, 2018, expiring at various dates through 2027. At January 2, 2016, we provided for a valuation allowance against net operating losses of approximately $0.2 million that 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, and in the year ended December 29, 2018 we reversed the remainder, 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 net operating loss carryforwards in the table shown above in 2018. We have no other valuation allowances on deferred tax assets at December 29, 2018, or December 30, 2017, 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. Excess Tax Benefits We adopted ASU 2016-09 effective on January 1, 2017. As a result, excess tax benefits resulting from the exercise of stock options and lapse of restriction on stock awards are now recognized as a discrete item in tax expense, where previously such tax effects had been recognized in additional paid-in-capital. Income tax expense in the years ended December 29, 2018, and December 30, 2017, includes excess tax benefits totaling $5.2 million and $1.8 million, respectively. Prior to the adoption of ASU 2016-09 at the beginning of 2017, concurrent with the full utilization of all of our regular net operating loss carry-forwards during 2013, for the year ended December 31, 2016, we recognized $1.9 million, of excess tax benefits (ETBs) in additional paid-in capital. Our prior policy with regard to providing for income tax expense when ETBs were utilized was to follow the “with-and-without” approach as described in ASC 740-20 and ASC 718 and include in the measurement the indirect effects of the excess tax deduction. Open Tax Years The tax years 2011 to 2017 remain open for examination by the IRS due to the statute of limitations and net operating losses utilized in prior tax years. The Tax Cuts and Jobs Act of 2017 (the Tax Act) On December 22, 2017, the President of the United States signed into law the Tax Act. The Tax Act includes significant changes to the U.S. corporate income tax system, including a Federal corporate rate reduction from 35% to 21%, effective January 1, 2018, limitations on the deductibility of interest expense and executive compensation, the elimination of the Section 199 domestic production activities deduction, and further restricting the deductibility of certain already restricted expenses. The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As a result of the reduction in the U.S. corporate income tax rate from 35% to 21% under the Tax Act, the Company revalued its ending net deferred tax liabilities at December 30, 2017 and recognized a $12.4 million tax benefit in the Company’s consolidated statement of operations for the year ended December 30, 2017. With the finalization and filing of our Federal income tax return for our fiscal year of 2017, we made an adjustment to this revaluation gain in income tax expense in the accompanying consolidated statement of operations for the year ended December 29, 2018, which reduced this gain by approximately $231 thousand. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. 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 2027. Lease expense was $6.4 million, $4.7 million and $4.2 million for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively. Future minimum lease commitments for non-cancelable operating leases are as follows at December 29, 2018 (in thousands): 2019 $ 6,343 2020 6,354 2021 4,748 2022 3,831 2023 3,801 Thereafter 17,885 Total $ 42,962 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 29, 2018, we would be required to pay $12.0 million for various materials. During the years ended December 29, 2018, December 30, 2017, and December 31, 2016, we made purchases under these programs totaling $278.9 million, $175.7 million and $132.8 million, respectively. The Company expects to utilize its purchase commitments in the normal ongoing operations. At December 29, 2018, we had $1.1 million in standby letters of credit related to our workers’ compensation insurance coverage, and commitments to purchase equipment of $1.2 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. 29, 2018 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 15. 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 29, 2018, December 30, 2017, and December 31, 2016, 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 for such employer matching of $2.7 million, $1.8 million and $1.9 million for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 29, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | 16. Related Parties In the ordinary course of business, we sell windows to Builders FirstSource, Inc. Two of our directors, Floyd F. Sherman, and Brett Milgrim, are directors of Builders FirstSource, Inc. Total net sales to Builders FirstSource, Inc. were $17.2 million, $13.8 million and $12.8 million for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively. As of December 29, 2018, and December 30, 2017, there was $2.2 million and $2.2 million due from Builders FirstSource, Inc. included in accounts receivable in the accompanying consolidated balance sheets. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | 17. Shareholders’ Equity Special Employee Grants of Company Common Stock At three times during 2018, we made grants of the Company’s common stock totaling 28,160 shares to employees of the Company who do not participate in the Company’s other incentive compensation programs. The intent of the grants was to foster a sense of ownership in the Company by employees other than those who participate in the Company’s long-term equity incentive program. Each employee that participated in these grants received ten shares of the Company’s common stock, with full rights of ownership, including dispositive rights. These awards had a weighted-average grant-date fair value of $20.84 per share based on the closing New York Stock Exchange market price of the common stock on the business day prior to the day each award was granted. The resulting fair value of these grants totaling $587 thousand was recognized as stock-based compensation expense classified as selling, general and administrative expense in the accompanying consolidated statement of operations and included in stock-based compensation in the accompanying statement of cash flows for the year ended December 29, 2018, as well as recorded as common stock at par value and additional paid-in capital in the accompanying consolidated balance sheet at December 29, 2018. 2018 Equity Issuance On September 18, 2018, we completed an underwritten, public offering of 7,000,000 shares of our common stock, at a public offering price of $23.00 per share. The offering resulted in gross proceeds to the Company of $161.0 million. Net of an underwriting fee of $1.15 per share, net cash proceeds to the Company approximated $153.0 million. We used $152.0 million of these proceeds to prepay borrowings outstanding under the term loan portion of the 2016 Credit Agreement due 2022. The remainder of the proceeds were used for working capital or general corporate purposes, including payment of offering expenses of approximately $447 thousand, classified as a reduction of additional paid-in capital in the accompanying consolidated balance sheet as of December 29, 2018. Repurchases of Company Common Stock During 2018 and 2017, we repurchased 35,691 shares and 23,826 $0.3 During 2016, we repurchased 299,988 $2.8 288,183 $2.7 11,805 $0.1 Program for Repurchases of Company Common Stock On October 28, 2015, the Board of Directors authorized and approved a share repurchase program of up to $20 million. There have been no repurchases under this program during our 2018 and 2017 fiscal years. Future repurchases, if any, will be made in open market or privately negotiated transactions, subject to market conditions, applicable legal requirements, our 2016 Credit Agreement due 2022, 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. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | 18. Stock-Based Compensation 2014 Plan On March 28, 2014, we adopted the 2014 Omnibus Equity Incentive Plan (the “2014 Plan”) whereby equity-based awards may be granted by the Board to eligible non-employee directors, selected officers and other employees, advisors and consultants of ours. On May 7, 2014, our stockholders approved the 2014 Plan. 2014 Omnibus Equity Incentive Plan • total number of shares of common stock available for grant thereunder, 1,500,000, • sets forth the types of awards eligible under the plan, including issuances of options, share appreciation rights, restricted shares, restricted share units, share bonuses, other share-based awards and cash awards, and • set forth 1,500,000 as the maximum number of shares that may be made subject to awards in any calendar year to any “covered employee” (within the meaning of Section 162(m) of the Internal Revenue Code). There were 661,522 shares available for grant under the 2014 Plan at December 29, 2018. 2006 Plan On June 5, 2006, we adopted the 2006 Equity Incentive Plan (the “2006 Plan”) under which equity-based awards could be granted by the Board to eligible non-employee directors, selected officers and other employees, advisors and consultants of ours. On April 6, 2010, our stockholders approved the PGT Innovations, Inc. (formerly PGT, Inc.) Amended and Restated 2006 Equity Incentive Plan (the “Amended and Restated 2006 Equity Incentive Plan”). With the adoption of the 2014 Plan effective on March 28, 2014, no further shares will be granted and, therefore, no shares are available under the Amended and Restated 2006 Equity Incentive Plan. New Issuances During 2018, we issued a total of 181,838 shares of restricted stock awards to certain directors, executives and non-executive employees of the Company, all from the 2014 Plan. The restrictions on these awards lapse at various time periods through 2021 and had a weighted average fair value on the dates of the grants of $18.70 as described below. On March 2, 2018, we issued 139,182 shares of restricted stock to certain executive and non-executive employees of the Company. The final number of shares awarded under the issuance on March 2, 2018, is subject to adjustment based on the performance of the Company for the 2018 fiscal year and will become final after December 29, 2018. The performance criteria, as defined in the share awards, provided for a graded awarding of shares based on the percentage by which the Company meets earnings before interest and taxes, as defined, in our 2018 business plan. 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 2, 2018, issuance of 139,182 shares, or 69,591 shares. The final award is also affected by forfeitures upon the termination of a grantee’s employment with the Company. The remaining 69,591 shares from the March 2, 2018, issuance were not subject to adjustment based on any performance or other criteria. The grant date fair value of the March 2, 2018, award was $18.40 per share. On May 19, 2018, we issued a total of 30,456 shares of restricted stock awards to the eight board members of the Company as the non-cash portion of their annual compensation for participation on the Company’s Board of Directors. The restrictions on these awards lapse in one year, and have a weighted average fair value on date of grant of $20.40 based on the New York Stock Exchange market price of the common stock on the close of business on the day the awards were granted. At three times during 2018, we made grants of the Company’s common stock to employees of the Company who do not participate in the in the Company’s other incentive compensation programs. See Note 17, “Special Employee Grants of Company Common Stock”, which includes a discussion of the related total stock-based compensation expense recognized. We record stock compensation expense over an equity award’s vesting period based on the award’s fair value at the date of grant. In addition to the employee stock grants in 2018 discussed above, we recorded compensation expense for stock-based awards of $3.4 million for the year ended December 29, 2018. We recorded stock-based compensation expense for stock-based awards of $1.9 million and $1.8 million, respectively, for the years ended December 30, 2017, and December 31, 2016 and is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. See Note 13 for a discussion of excess income tax benefits for the three years ended December 29, 2018. Stock Options A summary of the status of our stock options as of December 29, 2018, and changes during the year then ended, is presented below: Number of Shares Weighted Average Exercise Price Weighted Average Life Outstanding at December 30, 2017 2,154,328 $ 2.09 Exercised (1,119,247 ) $ 2.00 Outstanding at December 29, 2018 1,035,081 $ 2.20 1.5 Exercisable at December 29, 2018 1,031,081 $ 2.16 1.5 The following table summarizes information about employee stock options outstanding at December 29, 2018, (dollars in thousands, except share and per share amounts): Exercise Price Remaining Contractual Life Outstanding Outstanding Intrinsic Value Exercisable Exercisable Intrinsic Value $2.00-$2.31 1.4 Years 1,015,081 $ 13,921 1,015,081 $ 13,921 $11.81 5.2 Years 20,000 78 16,000 63 1,035,081 $ 13,999 1,031,081 $ 13,984 The aggregate intrinsic value of options outstanding and of options exercisable as of December 30, 2017, was $31.8 million and $31.7 million, respectively. The aggregate intrinsic value of options outstanding and of options exercisable as of December 31, 2016, was $24.6 million and $24.6 million, respectively. The total grant date fair value of options vested during the years ended December 29, 2018, December 30, 2017, and December 31, 2016, was $21 For the year ended December 29, 2018, we received approximately $2.2 million in proceeds from the exercise of 1,119,247 options for which we recognized $5.2 million in excess tax benefits as a discrete item of income tax expense. The aggregate intrinsic value of stock options exercised during the year ended December 29, 2018, was $20.3 million. For the year ended December 30, 2017, we received approximately $0.9 million in proceeds from the exercise of 470,622 options for which we recognized $1.8 million in excess tax benefits as a discrete item of income tax expense. The aggregate intrinsic value of stock options exercised during the year ended December 31, 2017, was $5.1 million. 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. Restricted Share Awards There were 181,838 restricted share awards granted in the year ended December 29, 2018, which will vest at various time periods through 2021. A summary of the status of restricted share awards as of December 29, 2018, and changes during the year then ended, are presented below: Number of Shares Weighted Average Fair Value Outstanding at December 30, 2017 396,114 $ 10.35 Granted 181,838 $ 18.70 Vested (162,841 ) $ 10.63 Forfeited/Performance adjustment (52,485 ) $ 12.55 Outstanding at December 29, 2018 362,626 $ 14.26 As of December 29, 2018, the remaining compensation cost related to non-vested share awards was $2.7 million which is expected to be recognized in earnings using an accelerated method resulting in higher levels of compensation costs occurring in earlier periods over a weighted average period of 1.5 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 19. Accumulated Other Comprehensive Loss The following table shows the components of accumulated other comprehensive loss for the year ended December 29, 2018. There was no activity within accumulated other comprehensive income or loss during the years ended December 30, 2017, or December 31, 2016: Aluminum Forward (in thousands) Contracts Balance at December 30, 2017 $ - Other comprehensive loss before reclassification (4,357 ) Amounts reclassified from other comprehensive loss 239 Tax effect 1,053 Net current-period other comprehensive loss (3,065 ) Balance at December 29, 2018 $ (3,065 ) |
Sales by Product
Sales by Product | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Sales by Product | 20. Sales by Product We have one reportable segment for all periods presented. Centralized financial and operational oversight, including resource allocation and assessment of performance, is performed by our CEO, whom we have determined to be our chief operating decision maker (“CODM”), with oversight by the Board of Directors. Our CODM evaluates performance by reviewing sales by product category, and costs on a total company basis. Sales by product group are as follows (in millions): Year Ended December 29, December 30, December 31, 2018 2017 2016 (in millions) Product category: Impact-resistant window and door products $ 561.8 $ 433.4 $ 381.6 Non-impact window and door products 136.7 77.7 77.0 Total net sales $ 698.5 $ 511.1 $ 458.6 |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | 21. Unaudited Quarterly Financial Data The following tables summarize the consolidated quarterly results of operations for the years ended December 29, 1018, and December 30, 2017 (in thousands, except per share amounts): Year Ended December 29, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 140,253 $ 169,269 $ 199,084 $ 189,887 Gross profit 44,773 59,947 72,998 65,750 Net income 7,340 22,548 13,571 10,474 Net income per share – basic $ 0.15 $ 0.45 $ 0.26 $ 0.18 Net income per share – diluted $ 0.14 $ 0.43 $ 0.26 $ 0.18 Year Ended December 30, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 112,721 $ 137,384 $ 126,876 $ 134,100 Gross profit 31,739 44,553 39,748 42,944 Net income 2,999 10,255 6,292 20,293 Net income per share – basic $ 0.06 $ 0.21 $ 0.13 $ 0.41 Net income per share – diluted $ 0.06 $ 0.20 $ 0.12 $ 0.39 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. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 29, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | (2) Schedule II – Valuation and Qualifying Accounts Balance at Balance at Beginning Added in Costs and End of Allowance for Doubtful Accounts of Period Acquisition expenses Deductions* Period (in thousands) Year ended December 29, 2018 $ 964 $ - $ 2,270 $ (445 ) $ 2,789 Year ended December 30, 2017 $ 399 $ - $ 673 $ (108 ) $ 964 Year ended December 31, 2016 $ 336 $ 159 $ 67 $ (163 ) $ 399 * Represents uncollectible accounts charged against the allowance for doubtful accounts, net of recoveries. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
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 29, 2018, December 30, 2017, and December 31, 2016, consisted of 52 weeks. |
Principles of consolidation | Principles of consolidation The consolidated financial statements present the results of the operations, financial position and cash flows of PGTI, and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Segment information | Segment information We operate as one 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 With the adoption of Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” we recognize revenue pursuant to Topic 606 of the Accounting Standards Codification (ASC). See Note 4, “Revenue Recognition and Contracts with Customers.” New Revenue Recognition Accounting Policy 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 has an enforceable right to payment at the time an order is received and accepted at the agreed-upon sales prices contained in our agreements with our customers for all manufacturing efforts expended by the Company on behalf of its customers. Due to the customized build-to-order nature of the Company’s products, the Company’s assessment is that substantially all its finished goods and certain unused glass components have no alternative use, and that control of these products and components passes to the customer over time during the manufacturing of the products in an order, or upon our receipt of certain pre-cut glass components from our supplier attributed to specific customer orders. Based on these factors, the Company recognizes revenue over time during the manufacturing process, and for certain unused glass components on hand, at the end of a reporting period. |
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 $29.9 million, $20.6 million and $18.3 million for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively. |
Advertising | Advertising We expense advertising costs as incurred. Advertising expense, which is included in selling, general and administrative expenses, was $3.2 million, $1.3 million and $0.2 million for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, 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 $1.9 million, $1.4 million and $1.7 million for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand or highly liquid investments with an original maturity date of three months or less when purchased. |
Accounts receivable, net | Accounts receivable, net In the ordinary course of business, we extend credit to qualified dealers and distributors, generally on a non-collateralized basis. The Company maintains an allowance for doubtful accounts which is based on management’s assessments of the amount which may become uncollectible in the future and is determined through consideration of our write-off history, specific identification of uncollectible accounts based in part on the customer’s past due balance (based on contractual terms), and consideration of prevailing economic and industry conditions. Uncollectible accounts are written off after repeated attempts to collect from the customer have been unsuccessful. December 29, December 30, 2018 2017 (in thousands) Accounts receivable $ 83,506 $ 61,272 Less: Allowance for doubtful accounts (2,789 ) (964 ) Accounts receivable, net $ 80,717 $ 60,308 |
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 2018, we recorded warranty expense at an average rate of 1.7% of sales. This rate is lower than the average rate of 2.1% of sales accrued in 2017. We assess the adequacy of our warranty accrual on a quarterly 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 of Period Acquired Charged to Expense Adjustments Settlements End of Period (in thousands) Year ended December 29, 2018 $ 5,386 $ 509 $ 11,835 $ (650 ) $ (10,931 ) $ 6,149 Year ended December 30, 2017 $ 5,569 $ - $ 10,675 $ (212 ) $ (10,646 ) $ 5,386 Year ended December 31, 2016 $ 4,237 $ 274 $ 11,064 $ 754 $ (10,760 ) $ 5,569 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 29, 2018 and December 30, 2017. The portion of warranty expense related to the issuance of product of $4.9 million, $4.8 million and $6.8 million is included in cost of sales in the consolidated statements of operations for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, 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 $6.3 million, $5.7 million and $5.0 million, respectively, for the years ended December 29, 2018, December 30, 2017, and December 31, 2016. |
Inventories | Inventories Inventories consist principally of raw materials purchased for the manufacture of our products. We have limited finished goods inventory as all products are custom, made-to-order products December 29, December 30, 2018 2017 (in thousands) Raw materials $ 42,036 $ 30,139 Work in progress 2,278 2,506 Finished goods 352 5,171 Inventories $ 44,666 $ 37,816 |
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 complete and it is probable that computer software being developed will be completed and placed in service. Capitalized costs include: (i) external direct costs of materials and services consumed in developing or obtaining computer software, (ii) payroll and other related costs for employees who are directly associated with and who devote time to the software project, and (iii) interest costs incurred, when material, while developing internal-use software. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Capitalized software as of December 29, 2018, and December 30, 2017, was $22.2 million and $20.0 million, respectively. Accumulated depreciation of capitalized software was $18.8 million and $16.9 million as of December 29, 2018, and December 30, 2017, respectively. Amortization expense for capitalized software was $1.9 million, $1.5 million, and $0.9 million for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, 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 is calculated as 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. 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 one-step method for impairment at a level of reporting referred to as a reporting unit. This quantitative analysis involves identifying potential impairment by comparing the fair value of each reporting unit with its carrying amount and, if the carrying amount of a reporting unit exceeds its fair value, then a charge for goodwill impairment will be recognized in the amount by which a reporting unit’s carrying value exceeds its fair value. For all periods presented, based on a qualitative assessment, we concluded that a quantitative one-step assessment was not required to be performed. |
Trade names | Trade names The Company has indefinite-lived intangible assets in the form of trade names. The impairment evaluation of the carrying amount of our trade names 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 trade names 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 trade name, 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 trade names, our only indefinite lived intangible assets. For all periods presented, based on a qualitative assessment, we concluded that a quantitative two-step assessment was not required to be performed for our PGT trade name. During 2018, consistent with management’s announced plan for CGI’s Estate Collection of products, we began the process of rebranding our Estate Collection as WinDoor-branded products. This rebranding aligns the Estate Collection’s status as a high-end, luxury product line, with WinDoor’s focus on the luxury market. We considered this rebranding of CGI’s Estate Collection of products as WinDoor-branded products as triggering events as it results in a shift in revenues from the CGI trade name, to the WinDoor trade name, requiring both the CGI and WinDoor trade names to undergo a quantitative assessments. No impairment was indicated in either quantitative assessment. |
Derivative financial instruments | Derivative financial instruments We utilize certain derivative instruments, from time to time, including forward contracts to manage variability in cash flow associated with commodity market price risk exposure in the aluminum market. We do not enter into derivatives for speculative purposes. |
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 of which exceeds federally insured limits. At December 29, 2018, and December 30, 2017, our cash balance exceeded the insured limit by $50.9 million and $32.3 million, respectively. |
Comprehensive income | Comprehensive income The Company reports comprehensive income, defined as the total of net income and other comprehensive income (loss), which is composed of all other non-owner changes in equity, and the components thereof, in its consolidated statements of comprehensive income. The components of other comprehensive income (loss) 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-based compensation | Stock-based 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 ultimately vest. |
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 13 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 year. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the year, plus the dilutive effect of common stock equivalents using the treasury stock method. There were no anti-dilutive shares outstanding for the year ended December 29, 2018. Our weighted average shares outstanding excludes underlying securities of 19 thousand, and 20 thousand for the years ended December 30, 2017, and December 31, 2016, 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 29, December 30, December 31, 2018 2017 2016 (in thousands, except per share amounts) Numerator: Net income $ 53,933 $ 39,839 $ 23,747 Denominator: Weighted-average common shares - Basic 52,461 49,522 48,856 Add: Dilutive effect of stock compensation plans 1,645 2,206 1,723 Weighted-average common shares - Diluted 54,106 51,728 50,579 Net income per common share: Basic $ 1.03 $ 0.80 $ 0.49 Diluted $ 1.00 $ 0.77 $ 0.47 |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted Adoption of ASU 2014-09, “Revenue from Contracts with Customers” We adopted the new revenue recognition standard on December 31, 2017 (the first day of our 2018 fiscal year) using the modified retrospective adoption methodology, whereby the cumulative impact of all prior periods is recorded in retained earnings or other impacted balance sheet line items upon adoption. Under the modified retrospective adoption method, we elected to retroactively adjust, inclusive of all previous modifications, only those contracts that were considered open at the date of initial application. Refer to Note 4, “Revenue Recognition and Contracts with Customers” for further information. Upon adoption, we recognized a net decrease to the fiscal year 2018 opening balance of accumulated deficit of $1.9 million related to sales of $8.7 million, that would have been recognized over time in our prior year ended December 30, 2017. The details of the adjustment to accumulated deficit upon adoption on December 31, 2017 is as follows (in thousands): Cumulative Effect Description of Effects on Line Item Net sales $ 8,704 Additional contract asset sales Cost of sales (5,642 ) Inventory classified as cost of sales SG&A expenses (532 ) Accruals for selling costs Income tax expense (647 ) Estimated income tax effects Net income $ 1,883 Additional net income The following tables reconcile the balances as presented as of and for the year ended December 29, 2018 to the balances prior to the adjustments made to implement the new revenue recognition standard for the same period, for the accompanying consolidated statement of operations, and the consolidated balance sheet. Adoption of the revenue recognition standard did not impact our cash from operating, investing, or financing activities on our condensed consolidated statements of cash flows. (in thousands, except per share amounts): Year Ended December 29, 2018 As Impact of Previous Presented ASU 2014-09 Standard Net sales $ 698,493 $ 2,553 $ 701,046 Cost of sales 455,025 1,875 456,900 Gross profit 243,468 678 244,146 Selling, general and administrative expenses 150,910 104 151,014 Gains on sales of assets under APA (2,551 ) - (2,551 ) Income from operations 95,109 574 95,683 Interest expense, net 26,529 - 26,529 Debt extinguishment costs 3,375 - 3,375 Income before income taxes 65,205 574 65,779 Income tax expense 11,272 146 11,418 Net income $ 53,933 $ 428 $ 54,361 Basic $ 1.03 $ 1.04 Diluted $ 1.00 $ 1.00 Net income $ 53,933 $ 428 $ 54,361 Other comprehensive loss before tax: Change in fair value of derivatives (4,357 ) - (4,357 ) Reclassification to earnings 239 - 239 Other comprehensive loss before tax (4,118 ) - (4,118 ) Income tax benefit related to components of other comprehensive loss 1,053 - 1,053 Other comprehensive loss, net of tax (3,065 ) - (3,065 ) Comprehensive income $ 50,868 $ 428 $ 51,296 At December 29, 2018 As Impact of Previous Presented ASU 2014-09 Standard Cash and cash equivalents $ 52,650 $ - $ 52,650 Accounts receivable, net 80,717 - 80,717 Inventories 44,666 4,186 48,852 Contract assets, net 6,757 (6,757 ) - Prepaid expenses 2,863 - 2,863 Other current assets 7,908 - 7,908 Total current assets 195,561 (2,571 ) 192,990 Property, plant and equipment, net 115,707 - 115,707 Trade name and other intangible assets, net 271,818 - 271,818 Goodwill 277,827 - 277,827 Other assets, net 1,240 - 1,240 Total assets $ 862,153 $ (2,571 ) $ 859,582 Accounts payable $ 15,288 $ - $ 15,288 Accrued liabilities 53,269 64 53,333 Current portion of long-term debt 163 - 163 Total current liabilities 68,720 64 68,784 Long-term debt, less current portion 366,614 - 366,614 Deferred income taxes 22,758 (647 ) 22,111 Other liabilities 18,517 - 18,517 Total liabilities 476,609 (583 ) 476,026 Total shareholders' equity 385,544 (1,988 ) 383,556 Total liabilities and shareholders' equity $ 862,153 $ (2,571 ) $ 859,582 Amounts in the tables above presented under “Previous Standard” represent balances as-if ASU 2014-09 had not been adopted, which primarily reflects finished goods and certain unused glass components directly attributable to noncancelable sales orders and with no alternative future use, and therefore recognized as revenue over time under the new standard but still classified in inventory under the previous standard, and no net contract assets on the condensed consolidated balance sheet. Intangibles-Goodwill and Other-Internal-Use Software In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40)”. The new guidance reduces complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). For public companies, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Implementation should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company early-adopted this guidance in the fourth quarter of 2018. The adoption of this guidance had no effect on our financial position, results of operations or cash flows. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The amendments under ASU 2017-12 refine and expand hedge accounting requirements for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. ASU 2017-12 was effective for us in the first quarter of 2019, but we elected to early-adopt this guidance effective on December 31, 2017, the first day of our 2018 fiscal year. During the year ended December 29, 2018, we entered into aluminum forwards contracts which we have designated as cash flow hedges and are accounting for as derivative financial instruments to which we are applying the provisions of ASU 2017-12. For additional information, see Note 11. Other Income In February 2017, the FASB issued ASU 2017-05, “Other Income - Gain and Losses from the Derecognition of Nonfinancial Assets.” ASU 2017-05 clarifies the scope of Subtopic 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets and adds guidance for partial sales of nonfinancial assets. Subtopic 610-20, which was issued in May 2014 as a part of ASU 2014-09, provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. We adopted this update effective on December 31, 2017, the first day of our 2018 fiscal year. The adoption of this guidance had no impact on our financial position, results of operations or cash flows. Business Combinations In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805) – Clarifying the Definition of a Business.” ASU 2017-01 affects all companies and other reporting organizations that must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 provides a more robust framework to use in determining when a set of assets and activities is a business. It also provides more consistency in applying the guidance, reduces the costs of application, and makes the definition of a business more operable. We adopted this update effective on December 31, 2017, the first day of our 2018 fiscal year. The adoption of this guidance had no impact on our financial position, results of operations or cash flows. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force).” ASU 2016-15 reduces diversity in practice in how certain transactions are classified in the statement of cash flows. We adopted this update effective on December 31, 2017, the first day of our 2018 fiscal year. Accounting Pronouncements Recently Issued, Not Yet Adopted Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. ASU 2016-02 was subsequently amended by ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842”; ASU 2018-10, “Codification Improvements to Topic 842, Leases”; and ASU 2018-11, “Targeted Improvements”. The new standard requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective for us on December 30, 2018 (the first day of our 2019 fiscal year), with early adoption permitted. We expect to adopt the new standard on its effective date. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date, or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We expect to adopt the new standard on December 30, 2018 and use the effective date as our date of initial application. Consequently, financial information will not be updated, and the disclosures required under the new standard will not be provided for dates and periods prior to December 30, 2018. The new standard provides a number of optional practical expedients in transition. We expect to elect the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and direct costs. We do not expect to elect the use-of-hindsight of the practical expedient pertaining to land easements; the later not being applicable to us. The new standard also provides practical expedients for an entity’s ongoing accounting. We currently expect to elect the short-term lease recognition exemption for all leases that qualify, primarily for certain vehicle and office equipment leases that are month-to-month leases. This means, for those leases we will not recognize right-of-use assets or lease liabilities. We also currently expect to elect the practical expedient to not separate lease and non-lease components for all classes of underlying assets. We expect that this standard will have a material effect on our financial position. While we continue to assess all of the effects of adoption, we currently believe the most significant effects relate to the recognition of new right-of-use assets and lease liabilities on our balance sheet for our real estate operating leases and providing significant new disclosures about our leasing activities. We do not expect a significant change in our leasing activities between now and adoption. On adoption, we currently expect to recognize additional operating liabilities of between $30 million and $37 million, with corresponding right-of-use assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. Fair Value Measurement Disclosures In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”. The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date. The Company is currently evaluating the impact of this guidance on its fair value disclosures. Financial Instruments – Credit Losses In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires entities to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. ASU 2016-13 also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. Subsequently, in November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”. ASU 2018-19 clarifies the codification and corrects unintended application of the guidance. ASU’s 2016-13 and 2018-19 are effective for us for our fiscal year beginning after December 15, 2019. We are currently assessing the impact that adopting these new standards updates will have on our consolidated financial statements. |
Shipping and Handling Cost and Commissions on Contract Assets | Policies Regarding Shipping and Handling Costs and Commissions on Contract Assets The Company has made a policy election to continue to recognize shipping and handling costs as a fulfillment activity. Treating shipping and handling as a fulfillment activity requires estimated shipping and handling costs for undelivered products and certain glass components on which we have recognized revenue and created a contract asset, to be accrued to match this cost with the recognized revenue. This policy is unchanged from the Company’s policy for recognizing shipping and handling costs prior to the adoption of the new revenue guidance. The newly adopted revenue guidance provides for a practical expedient which permits expensing of costs to obtain a contract when the expected amortization period is one year or less, which typically results in expensing commissions paid to employees. We continue to expense sales commissions paid to employees as sales are recognized, including sales from the creation of contract assets, as the expected amortization period is less than one year. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Accounts, Notes Receivable and Allowance for Doubtful Accounts | December 29, December 30, 2018 2017 (in thousands) Accounts receivable $ 83,506 $ 61,272 Less: Allowance for doubtful accounts (2,789 ) (964 ) Accounts receivable, net $ 80,717 $ 60,308 |
Information Regarding Warranty Accrual | The following provides information with respect to our warranty accrual. Accrued Warranty Beginning of Period Acquired Charged to Expense Adjustments Settlements End of Period (in thousands) Year ended December 29, 2018 $ 5,386 $ 509 $ 11,835 $ (650 ) $ (10,931 ) $ 6,149 Year ended December 30, 2017 $ 5,569 $ - $ 10,675 $ (212 ) $ (10,646 ) $ 5,386 Year ended December 31, 2016 $ 4,237 $ 274 $ 11,064 $ 754 $ (10,760 ) $ 5,569 |
Inventories | Inventories consist of the following: December 29, December 30, 2018 2017 (in thousands) Raw materials $ 42,036 $ 30,139 Work in progress 2,278 2,506 Finished goods 352 5,171 Inventories $ 44,666 $ 37,816 |
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 29, December 30, December 31, 2018 2017 2016 (in thousands, except per share amounts) Numerator: Net income $ 53,933 $ 39,839 $ 23,747 Denominator: Weighted-average common shares - Basic 52,461 49,522 48,856 Add: Dilutive effect of stock compensation plans 1,645 2,206 1,723 Weighted-average common shares - Diluted 54,106 51,728 50,579 Net income per common share: Basic $ 1.03 $ 0.80 $ 0.49 Diluted $ 1.00 $ 0.77 $ 0.47 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Revenue Recognition | The details of the adjustment to accumulated deficit upon adoption on December 31, 2017 is as follows (in thousands): Cumulative Effect Description of Effects on Line Item Net sales $ 8,704 Additional contract asset sales Cost of sales (5,642 ) Inventory classified as cost of sales SG&A expenses (532 ) Accruals for selling costs Income tax expense (647 ) Estimated income tax effects Net income $ 1,883 Additional net income The following tables reconcile the balances as presented as of and for the year ended December 29, 2018 to the balances prior to the adjustments made to implement the new revenue recognition standard for the same period, for the accompanying consolidated statement of operations, and the consolidated balance sheet. Adoption of the revenue recognition standard did not impact our cash from operating, investing, or financing activities on our condensed consolidated statements of cash flows. (in thousands, except per share amounts): Year Ended December 29, 2018 As Impact of Previous Presented ASU 2014-09 Standard Net sales $ 698,493 $ 2,553 $ 701,046 Cost of sales 455,025 1,875 456,900 Gross profit 243,468 678 244,146 Selling, general and administrative expenses 150,910 104 151,014 Gains on sales of assets under APA (2,551 ) - (2,551 ) Income from operations 95,109 574 95,683 Interest expense, net 26,529 - 26,529 Debt extinguishment costs 3,375 - 3,375 Income before income taxes 65,205 574 65,779 Income tax expense 11,272 146 11,418 Net income $ 53,933 $ 428 $ 54,361 Basic $ 1.03 $ 1.04 Diluted $ 1.00 $ 1.00 Net income $ 53,933 $ 428 $ 54,361 Other comprehensive loss before tax: Change in fair value of derivatives (4,357 ) - (4,357 ) Reclassification to earnings 239 - 239 Other comprehensive loss before tax (4,118 ) - (4,118 ) Income tax benefit related to components of other comprehensive loss 1,053 - 1,053 Other comprehensive loss, net of tax (3,065 ) - (3,065 ) Comprehensive income $ 50,868 $ 428 $ 51,296 At December 29, 2018 As Impact of Previous Presented ASU 2014-09 Standard Cash and cash equivalents $ 52,650 $ - $ 52,650 Accounts receivable, net 80,717 - 80,717 Inventories 44,666 4,186 48,852 Contract assets, net 6,757 (6,757 ) - Prepaid expenses 2,863 - 2,863 Other current assets 7,908 - 7,908 Total current assets 195,561 (2,571 ) 192,990 Property, plant and equipment, net 115,707 - 115,707 Trade name and other intangible assets, net 271,818 - 271,818 Goodwill 277,827 - 277,827 Other assets, net 1,240 - 1,240 Total assets $ 862,153 $ (2,571 ) $ 859,582 Accounts payable $ 15,288 $ - $ 15,288 Accrued liabilities 53,269 64 53,333 Current portion of long-term debt 163 - 163 Total current liabilities 68,720 64 68,784 Long-term debt, less current portion 366,614 - 366,614 Deferred income taxes 22,758 (647 ) 22,111 Other liabilities 18,517 - 18,517 Total liabilities 476,609 (583 ) 476,026 Total shareholders' equity 385,544 (1,988 ) 383,556 Total liabilities and shareholders' equity $ 862,153 $ (2,571 ) $ 859,582 |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Based on Product Category | The following table provides information about our revenue differentiated based on product category (dollars in millions): Year Ended December 29, 2018 Sales % of sales Product category: Impact-resistant window and door products $ 561.8 80.4 % Non-impact window and door products 136.7 19.6 % Total net sales $ 698.5 100.0 % |
Contract Asset and Liability Balances | The following table provides information about contract asset and liability balances as of and for the year ended December 29, 2018, and as of December 31, 2017, the first day of our 2018 fiscal year and the date of our adoption of ASU 2014-09 (in thousands): Contract Contract Contract Assets, Year ended December 29, 2018: Assets Liabilities Net At December 29, 2018 $ 7,209 $ (452 ) $ 6,757 Less: Acquired with WWS 1,058 (168 ) 890 Less: At December 31, 2017 8,704 (528 ) 8,176 Net increase (decrease) $ (2,553 ) $ 244 $ (2,309 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Western Window Systems [Member] | |
Schedule of Fair Value of Assets and Liabilities Assumed | The fair value of assets acquired, and liabilities assumed as of the closing date, are as follows: Initial Allocation Adjustments to Allocation Current Allocation Accounts and notes receivable $ 7,555 $ (217 ) $ 7,338 Inventories 12,580 - 12,580 Contract assets, net 890 - 890 Prepaid expenses and other assets 1,190 - 1,190 Property and equipment 16,416 (447 ) 15,969 Intangible assets 167,000 - 167,000 Goodwill 164,379 5,388 169,767 Accounts payable (5,622 ) - (5,622 ) Accrued and other liabilities (9,175 ) - (9,175 ) Deferred income tax liabilities - (5,353 ) (5,353 ) Purchase price $ 355,213 $ (629 ) $ 354,584 Consideration: Cash $ 355,213 $ (629 ) $ 354,584 Total fair value of consideration $ 355,213 $ (629 ) $ 354,584 |
Summary of Preliminary Values and Estimated Useful Lives | The preliminary values and our estimate of their respective useful lives are as follows: Preliminary Initial Valuation Useful Life Amount (in years) (in thousands) Trade names $ 73,000 indefinite Customer relationships 94,000 10 Other intangible assets, net $ 167,000 |
Summary of Unaudited Proforma Results | The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Year Ended December 29, December 30, Pro Forma Results (unaudited) 2018 2017 (in thousands, except per share amounts) Net sales $ 775,473 $ 611,240 Net income $ 50,407 $ 29,270 Net income per common share: Basic $ 0.96 $ 0.59 Diluted $ 0.93 $ 0.57 |
WinDoor [Member] | |
Schedule of Fair Value of Assets and Liabilities Assumed | The fair value of assets acquired and liabilities assumed as of the closing date, were as follows (in thousands): Allocation: 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 Contingent consideration 3,000 Total fair value of consideration $ 102,571 |
Summary of Unaudited Proforma Results | The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Year Ended December 31, Pro Forma Results (unaudited) 2016 (in thousands, except per share amounts) Net sales $ 461,011 Net income $ 22,402 Net income per common share: Basic $ 0.46 Diluted $ 0.44 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 29, December 30, 2018 2017 (in thousands) Land $ 6,664 $ 6,298 Buildings and improvements 71,319 53,703 Machinery and equipment 98,917 79,015 Vehicles 13,592 12,914 Software 22,173 19,989 Construction in progress 7,617 7,347 Property, plant and equipment 220,282 179,266 Less: Accumulated depreciation (104,575 ) (95,133 ) Property, plant and equipment, net $ 115,707 $ 84,133 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets Net | Goodwill and i ntangible assets are as follows as of: Initial December 29, December 30, Useful Life 2018 2017 (in years) (in thousands) Goodwill $ 277,827 $ 108,060 indefinite Other intangible assets: Trade names $ 148,841 $ 75,841 indefinite Customer relationships 200,647 106,647 3-10 Developed technology 3,000 3,000 9-10 Non-compete agreements 1,668 1,668 2-5 Software license 590 590 2 Less: Accumulated amortization (82,928 ) (72,703 ) Subtotal 122,977 39,202 Other intangible assets, net $ 271,818 $ 115,043 Goodwill at December 30, 2017 $ 108,060 Increase in goodwill from allocation of WWS purchase price 169,767 Goodwill at December 29, 2018 $ 277,827 Tradenames at December 30, 2017 $ 75,841 Increase in tradenames from the acquisition of WWS 73,000 Tradenames at December 29, 2018 $ 148,841 |
Estimated Amortization for Future Fiscal Year | Estimated amortization of our customer relationships, developed technology, non-compete agreement, and software license intangible assets is as follows for future fiscal years: (in thousands) Total 2019 $ 15,830 2020 15,859 2021 15,374 2022 14,515 2023 12,354 Thereafter 49,045 Total $ 122,977 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of: December 29, December 30, 2018 2017 Accrued liabilities (in thousands) Accrued payroll and benefits $ 16,498 $ 8,700 Customer deposits 7,810 3,540 Accrued warranty 5,182 4,443 Accrued federal and state income taxes 3,189 6,497 Accrued interest 8,700 1,029 Advance supplier consideration 2,808 517 Accrued health claims insurance payable 954 806 Fair value of derivative financial instruments 3,907 - Other 4,221 2,642 Accrued liabilities $ 53,269 $ 28,174 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following: December 29, December 30, 2018 2017 (in thousands) 2018 Senior Notes Due 2026 - Senior notes issued on August 10, 2018, due August 10, 2026. Interest payable semi- annually, in arrears, beginning on February 16, 2019, accruing at a rate of 6.75% per annum beginning August 10, 2018. $ 315,000 $ - 2016 Credit Agreement Due 2022 - Term loan payable with initial contractual quarterly payments of $0.675 million. A lump sum payment of $64.0 million due on February 15, 2022. Interest payable quarterly at LIBOR or the Base prime rate plus an applicable margin. At December 29, 2018, the average rate was 2.34% plus a margin of 3.50%. At December 30, 2017, the average rate was 1.46% plus a margin of 4.75%. 63,975 223,975 Other debt 163 458 Long-term debt 379,138 224,433 Fees, costs and original issue discount (1) (12,361 ) (11,460 ) Long-term debt, net 366,777 212,973 Less current portion of long-term debt (163 ) (294 ) Long-term debt, net, less current portion $ 366,614 $ 212,679 (1) 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, and is being amortized over the life of the debt instrument under the effective interest method. |
Activity Relating to Third-Party Fees and Costs, Lender Fees and Discount | All debt-related fees, costs and original issue discount, including those related to the revolving credit portion of the facility, is classified as a reduction of the carrying value of long-term debt. The activity relating to third-party fees and costs, lender fees and discount for the year ended December 29, 2018, are as follows: (in thousands) Total At beginning of year $ 11,460 Less: Amortization expense relating to 2016 Credit Agreement due 2022 (1,861 ) Add: Second amendment of 2016 Credit Agreement refinancing costs 1,687 Less: Debt extinguishment costs relating to second amendment and revolver repositioning (3,375 ) Add: 2018 Senior Notes deferred financing costs 10,379 Less: Amortization expense relating to 2018 Senior Notes due 2026 (372 ) Less: Accelerated amortization relating to prepayment under the 2016 Credit Agreement due 2022 (5,557 ) At end of year $ 12,361 |
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 December 29, 2018, is as follows: (in thousands) Total 2019 $ 1,752 2020 1,913 2021 1,893 2022 1,353 2023 1,359 Thereafter 4,091 Total $ 12,361 |
Contractual Future Maturities of Long-Term Debt Outstanding, Including Other Debt Relating to Software License Financing Arrangement | As a result of prepayments of the term loan portion of the 2016 Credit Agreement due 2022 totaling $204.0 million since its inception in February 2016, 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, including other debt relating to our software license financing arrangement, as of December 29, 2018, are as follows (at face value): (in thousands) Total 2019 $ 163 2020 - 2021 - 2022 63,975 2023 - Thereafter 315,000 Total $ 379,138 |
Schedule of Interest Expense, Net | Interest expense, net consisted of the following: Year Ended December 29, December 30, December 31, 2018 2017 2016 (in thousands) Long-term debt $ 18,946 $ 15,644 $ 17,351 Debt fees 251 290 296 Amortization and write-offs of deferred financing costs and debt discount 7,790 4,642 2,721 Interest income (389 ) (236 ) (105 ) Interest expense 26,598 20,340 20,263 Capitalized interest (69 ) (61 ) (138 ) Interest expense, net $ 26,529 $ 20,279 $ 20,125 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Hedges | The fair value of our aluminum hedges are classified in the accompanying consolidated balance sheets as follows (in thousands): Derivative Assets Derivative (Liabilities) December 29, 2018 December 29, 2018 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum forward contracts Other current assets $ - Accrued liabilities $ (3,907 ) Aluminum forward contracts Other assets - Other liabilities (211 ) Total derivative instruments Total derivative assets $ - Total derivative liabilities $ (4,118 ) |
Gains (Losses) on Derivative Financial Instruments | The following represents the gains (losses) on derivative financial instruments, and their classifications within the accompanying consolidated financial statements for the year ended December 29, 2018 (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income Year Ended Year Ended December 29, December 29, 2018 2018 Aluminum contracts $ (4,357 ) Cost of sales $ (239 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Components of Income Tax Expense | The components of income tax expense are as follows (in thousands): Year Ended December 29, December 30, December 31, 2018 2017 2016 Current: Federal $ 11,818 $ 8,063 $ 4,602 State 4,416 1,066 921 16,234 9,129 5,523 Deferred: Federal (3,407 ) (10,010 ) 5,371 State (1,555 ) 944 906 (4,962 ) (9,066 ) 6,277 Income tax expense $ 11,272 $ 63 $ 11,800 |
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 29, December 30, December 31, 2018 2017 2016 Consolidated statements of income: Income tax expense relating to continuing operations $ 11,272 $ 63 $ 11,800 Consolidated statements of shareholders' equity: Income tax expense relating to derivative financial instruments $ (1,053 ) $ - $ - Income tax benefit relating to share-based compensation $ - $ - $ (1,872 ) |
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 29, December 30, December 31, 2018 2017 2016 Statutory federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 4.5 % 3.8 % 3.8 % Change in net deferred tax liability related to U.S. tax reform 0.4 % (31.1 )% - Excess stock-based compensation tax benefits (8.0 )% (4.6 )% - Disaster tax credit for Hurricane Irma (0.7 )% - - Domestic manufacturing deduction - (2.5 )% (1.8 )% Research activities credits (0.7 )% (0.2 )% (2.8 )% Florida jobs creation incentive credits - (0.5 )% (0.6 )% Change in valuation allowance on deferred tax assets - - (0.2 )% Non-deductible expenses 0.9 % 0.5 % 0.2 % Other (0.1 )% (0.2 )% (0.4 %) 17.3 % 0.2 % 33.2 % |
Components of Net Deferred Tax Asset and Liability | Significant components of our net deferred tax liability are as follows: December 29, December 30, 2018 2017 (in thousands) Deferred tax assets: Advance supplier consideration $ 4,280 $ 132 Other deferrals and accruals, net 2,100 691 Stock-based compensation expense 1,796 1,663 Accrued warranty 1,442 1,378 State bonus depreciation and net operating loss carryforwards 1,414 965 Derivative financial instruments 1,053 - Acquisition costs 1,022 306 Allowance for doubtful accounts 642 292 Obsolete inventory and UNICAP adjustment 515 412 Total deferred tax assets 14,264 5,839 Deferred tax liabilities: Trade names and other intangible assets, net (20,935 ) (16,749 ) Property, plant and equipment (10,741 ) (8,056 ) Goodwill (5,092 ) (3,099 ) Deferred financing costs - (659 ) Prepaid expenses (254 ) (48 ) Total deferred tax liabilities (37,022 ) (28,611 ) Total deferred tax liabilities, net $ (22,758 ) $ (22,772 ) |
Western Window Systems [Member] | |
Components of Net Deferred Tax Asset and Liability | The components of the net deferred tax liability recorded in the WWS Acquisition is as follows: Deferred tax (liabilities) relate to: Current Estimate Amortizable intangible assets $ (1,082 ) Other indefinite lived intangible assets (3,372 ) Property, plant and equipment (759 ) Other (140 ) Net deferred tax liability $ (5,353 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Commitments for Non - Cancelable Operating Leases | Future minimum lease commitments for non-cancelable operating leases are as follows at December 29, 2018 (in thousands): 2019 $ 6,343 2020 6,354 2021 4,748 2022 3,831 2023 3,801 Thereafter 17,885 Total $ 42,962 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of the Status of Stock Options | A summary of the status of our stock options as of December 29, 2018, and changes during the year then ended, is presented below: Number of Shares Weighted Average Exercise Price Weighted Average Life Outstanding at December 30, 2017 2,154,328 $ 2.09 Exercised (1,119,247 ) $ 2.00 Outstanding at December 29, 2018 1,035,081 $ 2.20 1.5 Exercisable at December 29, 2018 1,031,081 $ 2.16 1.5 |
Summary of Information about Employee Stock Options Outstanding | The following table summarizes information about employee stock options outstanding at December 29, 2018, (dollars in thousands, except share and per share amounts): Exercise Price Remaining Contractual Life Outstanding Outstanding Intrinsic Value Exercisable Exercisable Intrinsic Value $2.00-$2.31 1.4 Years 1,015,081 $ 13,921 1,015,081 $ 13,921 $11.81 5.2 Years 20,000 78 16,000 63 1,035,081 $ 13,999 1,031,081 $ 13,984 |
Summary of the Status of Restricted Share Awards | A summary of the status of restricted share awards as of December 29, 2018, and changes during the year then ended, are presented below: Number of Shares Weighted Average Fair Value Outstanding at December 30, 2017 396,114 $ 10.35 Granted 181,838 $ 18.70 Vested (162,841 ) $ 10.63 Forfeited/Performance adjustment (52,485 ) $ 12.55 Outstanding at December 29, 2018 362,626 $ 14.26 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table shows the components of accumulated other comprehensive loss for the year ended December 29, 2018. Aluminum Forward (in thousands) Contracts Balance at December 30, 2017 $ - Other comprehensive loss before reclassification (4,357 ) Amounts reclassified from other comprehensive loss 239 Tax effect 1,053 Net current-period other comprehensive loss (3,065 ) Balance at December 29, 2018 $ (3,065 ) |
Sales by Product (Tables)
Sales by Product (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Summary of Sales by Product | Sales by product group are as follows (in millions): Year Ended December 29, December 30, December 31, 2018 2017 2016 (in millions) Product category: Impact-resistant window and door products $ 561.8 $ 433.4 $ 381.6 Non-impact window and door products 136.7 77.7 77.0 Total net sales $ 698.5 $ 511.1 $ 458.6 |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Consolidated Quarterly Results of Operations | The following tables summarize the consolidated quarterly results of operations for the years ended December 29, 1018, and December 30, 2017 (in thousands, except per share amounts): Year Ended December 29, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 140,253 $ 169,269 $ 199,084 $ 189,887 Gross profit 44,773 59,947 72,998 65,750 Net income 7,340 22,548 13,571 10,474 Net income per share – basic $ 0.15 $ 0.45 $ 0.26 $ 0.18 Net income per share – diluted $ 0.14 $ 0.43 $ 0.26 $ 0.18 Year Ended December 30, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 112,721 $ 137,384 $ 126,876 $ 134,100 Gross profit 31,739 44,553 39,748 42,944 Net income 2,999 10,255 6,292 20,293 Net income per share – basic $ 0.06 $ 0.21 $ 0.13 $ 0.41 Net income per share – diluted $ 0.06 $ 0.20 $ 0.12 $ 0.39 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 12 Months Ended |
Dec. 29, 2018OperationPlant | |
Description Of Business [Line Items] | |
Number of manufacturing operations | 4 |
North Venice [Member] | |
Description Of Business [Line Items] | |
Number of manufacturing operations | 1 |
Greater Miami [Member] | |
Description Of Business [Line Items] | |
Number of manufacturing operations | 2 |
Orlando [Member] | |
Description Of Business [Line Items] | |
Number of manufacturing operations | 1 |
Arizona [Member] | |
Description Of Business [Line Items] | |
Number of manufacturing 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 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 29, 2018USD ($)Segmentshares | Dec. 30, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | |
Business Description And Accounting Policies [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Cost of sales | $ 455,025,000 | $ 352,097,000 | $ 318,452,000 |
Advertising Expense | 3,200,000 | 1,300,000 | 200,000 |
Research and development costs | $ 1,900,000 | $ 1,400,000 | 1,700,000 |
Original maturity date of cash and cash equivalents | Three months or less | ||
Warranty expense, average rate | 1.70% | 2.10% | |
Portion of warranty expense related to issuance of product | $ 4,900,000 | $ 4,800,000 | 6,800,000 |
Servicing warranty claims | 6,300,000 | 5,700,000 | 5,000,000 |
Capitalization of software | 22,200,000 | 20,000,000 | |
Accumulated depreciation of capitalized software | 18,800,000 | 16,900,000 | |
Amortization expense for capitalized software | 1,900,000 | 1,500,000 | $ 900,000 |
The amount of insured limit exceeds by the balance | 50,900,000 | $ 32,300,000 | |
Material liability for unrecognized tax benefits | $ 0 | ||
Weighted average shares outstanding excluding underlying securities | shares | 0 | 19,000 | 20,000 |
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 | ||
Shipping and Handling [Member] | |||
Business Description And Accounting Policies [Line Items] | |||
Cost of sales | $ 29,900,000 | $ 20,600,000 | $ 18,300,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Accounts, Notes Receivable and Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Accounting Policies [Abstract] | ||
Accounts receivable | $ 83,506 | $ 61,272 |
Less: Allowance for doubtful accounts | (2,789) | (964) |
Accounts receivable, net | $ 80,717 | $ 60,308 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Information Regarding Warranty Accrual (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Guarantees [Abstract] | |||
Accrued Warranty, Beginning of Period | $ 5,386 | $ 5,569 | $ 4,237 |
Accrued Warranty, Acquired | 509 | 274 | |
Accrued Warranty, Charged to Expense | 11,835 | 10,675 | 11,064 |
Accrued Warranty, Adjustments | (650) | (212) | 754 |
Accrued Warranty, Settlements | (10,931) | (10,646) | (10,760) |
Accrued Warranty, End of Period | $ 6,149 | $ 5,386 | $ 5,569 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Inventories (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 42,036 | $ 30,139 |
Work in progress | 2,278 | 2,506 |
Finished goods | 352 | 5,171 |
Inventories | $ 44,666 | $ 37,816 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 29, 2018 | |
Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 3 years |
Minimum [Member] | Building and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 5 years |
Minimum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 3 years |
Minimum [Member] | Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 5 years |
Maximum [Member] | Building and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 40 years |
Maximum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 10 years |
Maximum [Member] | Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 10 years |
Summary of Significant Accoun_9
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. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net income | $ 10,474 | $ 13,571 | $ 22,548 | $ 7,340 | $ 20,293 | $ 6,292 | $ 10,255 | $ 2,999 | $ 53,933 | $ 39,839 | $ 23,747 |
Denominator: | |||||||||||
Weighted-average common shares - Basic | 52,461 | 49,522 | 48,856 | ||||||||
Add: Dilutive effect of stock compensation plans | 1,645 | 2,206 | 1,723 | ||||||||
Weighted-average common shares - Diluted | 54,106 | 51,728 | 50,579 | ||||||||
Net income per common share: | |||||||||||
Basic | $ 0.18 | $ 0.26 | $ 0.45 | $ 0.15 | $ 0.41 | $ 0.13 | $ 0.21 | $ 0.06 | $ 1.03 | $ 0.80 | $ 0.49 |
Diluted | $ 0.18 | $ 0.26 | $ 0.43 | $ 0.14 | $ 0.39 | $ 0.12 | $ 0.20 | $ 0.06 | $ 1 | $ 0.77 | $ 0.47 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 29, 2018 |
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net decrease in accumulated deficit | $ (1,900) | |
Change in related to sales | 1,883 | |
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Net Sales [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Change in related to sales | $ 8,704 | |
Accounting Standards Update 2016-02 [Member] | Minimum [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating liability | $ 30,000 | |
Accounting Standards Update 2016-02 [Member] | Maximum [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating liability | $ 37,000 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements - Adjustment to Accumulated Deficit (Detail) - Accounting Standards Update 2014-09 [Member] - Difference between Revenue Guidance in Effect before and after Topic 606 [Member] $ in Thousands | Dec. 31, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Effect of a change in accounting principle on net income | $ 1,883 |
Net Sales [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Effect of a change in accounting principle on net income | 8,704 |
Inventory Classified as Cost of Sales [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Effect of a change in accounting principle on net income | (5,642) |
Selling, General and Administrative Expenses [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Effect of a change in accounting principle on net income | (532) |
Income Tax Expense [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Effect of a change in accounting principle on net income | $ (647) |
Recent Accounting Pronounceme_5
Recent Accounting Pronouncements - Revenue Recognition (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Jan. 02, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Net sales | $ 189,887 | $ 199,084 | $ 169,269 | $ 140,253 | $ 134,100 | $ 126,876 | $ 137,384 | $ 112,721 | $ 698,493 | $ 511,081 | $ 458,550 | ||
Cost of sales | 455,025 | 352,097 | 318,452 | ||||||||||
Gross profit | 65,750 | 72,998 | 59,947 | 44,773 | 42,944 | 39,748 | 44,553 | 31,739 | 243,468 | 158,984 | 140,098 | ||
Selling, general and administrative expenses | 150,910 | 98,803 | 83,995 | ||||||||||
Gains on sales of assets under APA | (2,551) | ||||||||||||
Income from operations | 95,109 | 60,181 | 59,103 | ||||||||||
Interest expense, net | 26,529 | 20,279 | 20,125 | ||||||||||
Debt extinguishment costs | 3,375 | 3,431 | |||||||||||
Income before income taxes | 65,205 | 39,902 | 35,547 | ||||||||||
Income tax expense | 11,272 | 63 | 11,800 | ||||||||||
Net income | $ 10,474 | $ 13,571 | $ 22,548 | $ 7,340 | $ 20,293 | $ 6,292 | $ 10,255 | $ 2,999 | $ 53,933 | $ 39,839 | $ 23,747 | ||
Basic | $ 0.18 | $ 0.26 | $ 0.45 | $ 0.15 | $ 0.41 | $ 0.13 | $ 0.21 | $ 0.06 | $ 1.03 | $ 0.80 | $ 0.49 | ||
Diluted | $ 0.18 | $ 0.26 | $ 0.43 | $ 0.14 | $ 0.39 | $ 0.12 | $ 0.20 | $ 0.06 | $ 1 | $ 0.77 | $ 0.47 | ||
Other comprehensive loss before tax: | |||||||||||||
Change in fair value of derivatives | $ (4,357) | ||||||||||||
Reclassification to earnings | 239 | ||||||||||||
Other comprehensive loss before tax | (4,118) | ||||||||||||
Income tax benefit related to components of other comprehensive loss | 1,053 | ||||||||||||
Other comprehensiveloss, net of tax effect | (3,065) | ||||||||||||
Comprehensive income | 50,868 | $ 39,839 | $ 23,747 | ||||||||||
Cash and cash equivalents | $ 52,650 | $ 34,029 | 52,650 | 34,029 | $ 39,210 | $ 61,493 | |||||||
Accounts receivable, net | 80,717 | 60,308 | 80,717 | 60,308 | |||||||||
Inventories | 44,666 | 37,816 | 44,666 | 37,816 | |||||||||
Contract assets, net | 6,757 | 6,757 | $ 8,176 | ||||||||||
Prepaid expenses | 2,863 | 2,490 | 2,863 | 2,490 | |||||||||
Other current assets | 7,908 | 9,873 | 7,908 | 9,873 | |||||||||
Total current assets | 195,561 | 144,516 | 195,561 | 144,516 | |||||||||
Property, plant and equipment, net | 115,707 | 84,133 | 115,707 | 84,133 | |||||||||
Trade name and other intangible assets, net | 271,818 | 115,043 | 271,818 | 115,043 | |||||||||
Goodwill | 277,827 | 108,060 | 277,827 | 108,060 | |||||||||
Other assets, net | 1,240 | 1,367 | 1,240 | 1,367 | |||||||||
Total assets | 862,153 | 453,119 | 862,153 | 453,119 | |||||||||
Accounts payable | 15,288 | 12,911 | 15,288 | 12,911 | |||||||||
Accrued liabilities | 53,269 | 28,174 | 53,269 | 28,174 | |||||||||
Current portion of long-term debt | 163 | 294 | 163 | 294 | |||||||||
Total current liabilities | 68,720 | 41,379 | 68,720 | 41,379 | |||||||||
Long-term debt, less current portion | 366,614 | 212,679 | 366,614 | 212,679 | |||||||||
Deferred income taxes | 22,758 | 22,772 | 22,758 | 22,772 | |||||||||
Other liabilities | 18,517 | 964 | 18,517 | 964 | |||||||||
Total liabilities | 476,609 | 277,794 | 476,609 | 277,794 | |||||||||
Total shareholders' equity | 385,544 | 175,325 | 385,544 | 175,325 | $ 106,961 | ||||||||
Total liabilities and shareholders' equity | 862,153 | $ 453,119 | 862,153 | $ 453,119 | |||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Net sales | 2,553 | ||||||||||||
Cost of sales | 1,875 | ||||||||||||
Gross profit | 678 | ||||||||||||
Selling, general and administrative expenses | 104 | ||||||||||||
Income from operations | 574 | ||||||||||||
Income before income taxes | 574 | ||||||||||||
Income tax expense | 146 | ||||||||||||
Net income | 428 | ||||||||||||
Other comprehensive loss before tax: | |||||||||||||
Comprehensive income | 428 | ||||||||||||
Inventories | 4,186 | 4,186 | |||||||||||
Contract assets, net | (6,757) | (6,757) | |||||||||||
Total current assets | (2,571) | (2,571) | |||||||||||
Total assets | (2,571) | (2,571) | |||||||||||
Accrued liabilities | 64 | 64 | |||||||||||
Total current liabilities | 64 | 64 | |||||||||||
Deferred income taxes | 647 | 647 | |||||||||||
Total liabilities | (583) | (583) | |||||||||||
Total shareholders' equity | (1,988) | (1,988) | |||||||||||
Total liabilities and shareholders' equity | (2,571) | (2,571) | |||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Net sales | 701,046 | ||||||||||||
Cost of sales | 456,900 | ||||||||||||
Gross profit | 244,146 | ||||||||||||
Selling, general and administrative expenses | 151,014 | ||||||||||||
Gains on sales of assets under APA | (2,551) | ||||||||||||
Income from operations | 95,683 | ||||||||||||
Interest expense, net | 26,529 | ||||||||||||
Debt extinguishment costs | 3,375 | ||||||||||||
Income before income taxes | 65,779 | ||||||||||||
Income tax expense | 11,418 | ||||||||||||
Net income | $ 54,361 | ||||||||||||
Basic | $ 1.04 | ||||||||||||
Diluted | $ 1 | ||||||||||||
Other comprehensive loss before tax: | |||||||||||||
Change in fair value of derivatives | $ (4,357) | ||||||||||||
Reclassification to earnings | 239 | ||||||||||||
Other comprehensive loss before tax | (4,118) | ||||||||||||
Income tax benefit related to components of other comprehensive loss | 1,053 | ||||||||||||
Other comprehensiveloss, net of tax effect | (3,065) | ||||||||||||
Comprehensive income | 51,296 | ||||||||||||
Cash and cash equivalents | 52,650 | 52,650 | |||||||||||
Accounts receivable, net | 80,717 | 80,717 | |||||||||||
Inventories | 48,852 | 48,852 | |||||||||||
Prepaid expenses | 2,863 | 2,863 | |||||||||||
Other current assets | 7,908 | 7,908 | |||||||||||
Total current assets | 192,990 | 192,990 | |||||||||||
Property, plant and equipment, net | 115,707 | 115,707 | |||||||||||
Trade name and other intangible assets, net | 271,818 | 271,818 | |||||||||||
Goodwill | 277,827 | 277,827 | |||||||||||
Other assets, net | 1,240 | 1,240 | |||||||||||
Total assets | 859,582 | 859,582 | |||||||||||
Accounts payable | 15,288 | 15,288 | |||||||||||
Accrued liabilities | 53,333 | 53,333 | |||||||||||
Current portion of long-term debt | 163 | 163 | |||||||||||
Total current liabilities | 68,784 | 68,784 | |||||||||||
Long-term debt, less current portion | 366,614 | 366,614 | |||||||||||
Deferred income taxes | 22,111 | 22,111 | |||||||||||
Other liabilities | 18,517 | 18,517 | |||||||||||
Total liabilities | 476,026 | 476,026 | |||||||||||
Total shareholders' equity | 383,556 | 383,556 | |||||||||||
Total liabilities and shareholders' equity | $ 859,582 | $ 859,582 |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers - Revenue Based on Product Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Product Information [Line Items] | |||||||||||
Net sales | $ 189,887 | $ 199,084 | $ 169,269 | $ 140,253 | $ 134,100 | $ 126,876 | $ 137,384 | $ 112,721 | $ 698,493 | $ 511,081 | $ 458,550 |
Percentage of net sales | 100.00% | ||||||||||
Impact-Resistant Windows and Door Products [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | $ 561,800 | 433,400 | 381,600 | ||||||||
Percentage of net sales | 80.40% | ||||||||||
Non-Impact Window and Door Products [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | $ 136,700 | $ 77,700 | $ 77,000 | ||||||||
Percentage of net sales | 19.60% |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Contract Asset and Liability Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 31, 2017 | |
Revenue From Contract With Customer [Abstract] | ||
Contract Assets | $ 7,209 | $ 8,704 |
Less: Acquired with WWS | 1,058 | |
Net increase (decrease) | (2,553) | |
Contract Liabilities | (452) | (528) |
Less: Acquired with WWS | (168) | |
Net increase (decrease) | 244 | |
Contract Assets Net | 6,757 | $ 8,176 |
Less: Acquired with WWS | 890 | |
Net increase (decrease) | $ (2,309) |
Revenue Recognition and Contr_5
Revenue Recognition and Contracts with Customers - Additional Information (Detail) | 12 Months Ended |
Dec. 29, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue recognition, practical expedient | true |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Aug. 13, 2018 | Feb. 16, 2016 | Oct. 01, 2016 | Apr. 02, 2016 | Oct. 01, 2016 | Dec. 29, 2018 | Dec. 31, 2016 | Dec. 30, 2017 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 277,827,000 | $ 108,060,000 | ||||||
Estimated fair value of contingent consideration | $ 3,000,000 | |||||||
Western Window Systems [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, effective date of acquisition | Aug. 13, 2018 | |||||||
Fair value of consideration | $ 354,584,000 | |||||||
Cash payment to acquire business | 354,584,000 | |||||||
Net deferred tax liability | 5,353,000 | |||||||
Business combination, acquisition related costs | 3,800,000 | |||||||
Goodwill | 169,767,000 | |||||||
Goodwill deductible for tax purposes | $ 139,600,000 | |||||||
Net sales from acquisition | 49,700,000 | |||||||
Western Window Systems [Member] | Western Window Systems Blocker LLC [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership percentage aquired | 18.06% | |||||||
Western Window Systems [Member] | Cash On Hand [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash payment to acquire business | $ 39,600,000 | |||||||
Western Window Systems [Member] | 2018 Senior Notes due 2026 [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash payment to acquire business | $ 315,000,000 | |||||||
WinDoor [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, effective date of acquisition | Feb. 16, 2016 | |||||||
Fair value of consideration | $ 102,571,000 | |||||||
Cash payment to acquire business | 99,571,000 | |||||||
Business combination, acquisition related costs | 900,000 | |||||||
Goodwill | 41,856,000 | |||||||
Goodwill deductible for tax purposes | 38,900,000 | $ 38,900,000 | ||||||
Estimated fair value of contingent consideration | 3,000,000 | |||||||
Earn-out contingency liability, basis for amount | 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. | |||||||
Fair value of contingent consideration, undiscounted low range of estimates | $ 0 | |||||||
Fair value of contingent consideration, undiscounted high range of estimates | $ 3,000,000 | |||||||
Earn-out contingency liability | $ 3,000,000 | |||||||
Adjustment to Goodwill deductible for tax purposes | $ 3,000,000 | |||||||
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 | $ 51,000,000 | 46,000,000 | ||||||
Amount of earn out contingency payment on sales revenue goods net | $ 2,700,000 |
Acquisitions - Schedule of Fair
Acquisitions - Schedule of Fair Value of Assets and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Aug. 13, 2018 | Feb. 16, 2016 | Dec. 31, 2016 | Dec. 29, 2018 | Dec. 30, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 277,827 | $ 108,060 | |||
Contingent consideration | $ 3,000 | ||||
Western Window Systems [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts and notes receivable | $ 7,338 | ||||
Inventories | 12,580 | ||||
Contract assets, net | 890 | ||||
Prepaid expenses and other assets | 1,190 | ||||
Property and equipment | 15,969 | ||||
Intangible assets | 167,000 | ||||
Goodwill | 169,767 | ||||
Accounts payable | (5,622) | ||||
Accrued and other liabilities | (9,175) | ||||
Deferred income tax liabilities | (5,353) | ||||
Purchase price | 354,584 | ||||
Cash | 354,584 | ||||
Total fair value of consideration | 354,584 | ||||
Western Window Systems [Member] | Previously Reported [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts and notes receivable | 7,555 | ||||
Inventories | 12,580 | ||||
Contract assets, net | 890 | ||||
Prepaid expenses and other assets | 1,190 | ||||
Property and equipment | 16,416 | ||||
Intangible assets | 167,000 | ||||
Goodwill | 164,379 | ||||
Accounts payable | (5,622) | ||||
Accrued and other liabilities | (9,175) | ||||
Purchase price | 355,213 | ||||
Cash | 355,213 | ||||
Total fair value of consideration | 355,213 | ||||
Western Window Systems [Member] | Adjustments to Allocation [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts and notes receivable | (217) | ||||
Property and equipment | (447) | ||||
Goodwill | 5,388 | ||||
Deferred income tax liabilities | (5,353) | ||||
Purchase price | (629) | ||||
Cash | (629) | ||||
Total fair value of consideration | $ (629) | ||||
WinDoor [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts and notes receivable | $ 3,882 | ||||
Inventories | 6,778 | ||||
Prepaid expenses and other assets | 246 | ||||
Property and equipment | 5,029 | ||||
Intangible assets | 47,100 | ||||
Goodwill | 41,856 | ||||
Accounts payable and accrued liabilities | (2,320) | ||||
Purchase price | 102,571 | ||||
Cash | 99,571 | ||||
Contingent consideration | 3,000 | ||||
Total fair value of consideration | $ 102,571 |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Values and Estimated Useful Lives (Detail) - Western Window Systems [Member] $ in Thousands | Aug. 13, 2018USD ($) |
Business Acquisition [Line Items] | |
Preliminary Valuation Amount | $ 167,000 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Initial useful life (in years) | 10 years |
Preliminary Valuation Amount | $ 94,000 |
Trade Names [Member] | |
Business Acquisition [Line Items] | |
Preliminary Valuation Amount | $ 73,000 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Proforma Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Western Window Systems [Member] | |||
Business Acquisition [Line Items] | |||
Net sales | $ 775,473 | $ 611,240 | |
Net income | $ 50,407 | $ 29,270 | |
Net income per common share: | |||
Basic | $ 0.96 | $ 0.59 | |
Diluted | $ 0.93 | $ 0.57 | |
WinDoor [Member] | |||
Business Acquisition [Line Items] | |||
Net sales | $ 461,011 | ||
Net income | $ 22,402 | ||
Net income per common share: | |||
Basic | $ 0.46 | ||
Diluted | $ 0.44 |
Sale of Assets - Additional Inf
Sale of Assets - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 08, 2018 | Mar. 01, 2018 | Jan. 16, 2018 | Jan. 15, 2018 | Nov. 01, 2017 | Sep. 22, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | Dec. 15, 2017 |
Business Acquisition [Line Items] | |||||||||||
Proceeds from sale of manufacturing equipment | $ 5,957 | $ 3,089 | $ 45 | ||||||||
Gain on disposals of assets | 2,703 | 452 | $ 45 | ||||||||
Cardinal [Member] | Asset Purchase Agreement [Member] | Manufacturing Equipment [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds from sale of manufacturing equipment | $ 14,800 | $ 15,000 | $ 10,000 | $ 10,000 | $ 3,000 | $ 28,000 | 27,800 | ||||
Asset supply agreement term | 7 years | ||||||||||
Property, plant and equipment, fair market value | $ 5,800 | $ 1,900 | |||||||||
Deferred income | $ 20,300 | ||||||||||
Payment amortized under supply agreement term | 7 years | ||||||||||
Net book value of assets held for sale | $ 3,200 | $ 1,500 | |||||||||
Amount received less than specified in APA | 200 | ||||||||||
Cardinal [Member] | Asset Purchase Agreement [Member] | Manufacturing Equipment [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gain on disposals of assets | 2,600 | ||||||||||
Cardinal [Member] | Asset Purchase Agreement [Member] | Manufacturing Equipment [Member] | Other Current Assets [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Property, plant and equipment, fair market value | $ 7,700 | ||||||||||
Net book value of assets held for sale | $ 4,700 | 4,700 | |||||||||
Cardinal [Member] | Supply Agreement [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Unamortized balance of deffred gain | 16,700 | ||||||||||
Cardinal [Member] | Supply Agreement [Member] | Inventory Classified as Cost of Sales [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Amortization of deferred gain | 2,800 | $ 628 | |||||||||
Cardinal [Member] | Supply Agreement [Member] | Accrued Liabilities [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Unamortized balance of deffred gain | 2,800 | ||||||||||
Cardinal [Member] | Supply Agreement [Member] | Other Liabilities [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Unamortized balance of deffred gain | $ 13,900 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 220,282 | $ 179,266 |
Less: Accumulated depreciation | (104,575) | (95,133) |
Property, plant and equipment, net | 115,707 | 84,133 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,664 | 6,298 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 71,319 | 53,703 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 98,917 | 79,015 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 13,592 | 12,914 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 22,173 | 19,989 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7,617 | $ 7,347 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | Dec. 15, 2017 | Sep. 22, 2017 | |
Property, Plant and Equipment [Line Items] | ||||||
Depreciation | $ 14,225 | $ 13,051 | $ 9,577 | |||
Cardinal [Member] | Asset Purchase Agreement [Member] | Manufacturing Equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment transferred to assets held for sale | $ 3,200 | $ 1,500 | ||||
Cardinal [Member] | Asset Purchase Agreement [Member] | Manufacturing Equipment [Member] | Other Current Assets [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment transferred to assets held for sale | $ 4,700 | $ 4,700 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Less: Accumulated amortization | $ (82,928) | $ (72,703) |
Subtotal | 122,977 | 39,202 |
Other intangible assets, net | 271,818 | 115,043 |
Goodwill at December 30, 2017 | 108,060 | |
Goodwill at December 29, 2018 | 277,827 | |
Tradenames at December 30, 2017 | 75,841 | |
Tradenames at December 29, 2018 | 148,841 | |
Western Window Systems [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Increase in goodwill from allocation of purchase price | 169,767 | |
Increase in tradenames from the acquisition | 73,000 | |
Trade Names [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | 148,841 | 75,841 |
Customer Relationships [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | $ 200,647 | 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] | ||
Intangible assets | $ 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] | ||
Intangible assets | $ 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 | |
Software License [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | $ 590 | $ 590 |
Initial Useful Life (in years) | 2 years |
Goodwill, Trade Names and Other
Goodwill, Trade Names and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Intangible Liability Disclosure [Abstract] | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Goodwill, Trade Names, and Othe
Goodwill, Trade Names, and Other Intangible Assets - Estimated Amortization for Future Fiscal Year (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 15,830 | |
2,020 | 15,859 | |
2,021 | 15,374 | |
2,022 | 14,515 | |
2,023 | 12,354 | |
Thereafter | 49,045 | |
Subtotal | $ 122,977 | $ 39,202 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Payables And Accruals [Abstract] | ||
Accrued payroll and benefits | $ 16,498 | $ 8,700 |
Customer deposits | 7,810 | 3,540 |
Accrued warranty | 5,182 | 4,443 |
Accrued federal and state income taxes | 3,189 | 6,497 |
Accrued interest | 8,700 | 1,029 |
Advance supplier consideration | 2,808 | 517 |
Accrued health claims insurance payable | 954 | 806 |
Fair value of derivative financial instruments | 3,907 | |
Other | 4,221 | 2,642 |
Accrued liabilities | $ 53,269 | $ 28,174 |
Long Term Debt - Schedule of Lo
Long Term Debt - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Jul. 31, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 379,138 | $ 224,433 | |
Fees, costs and original issue discount | (12,361) | (11,460) | |
Long-term debt, net | 366,777 | 212,973 | |
Less current portion of long-term debt | (163) | (294) | |
Long-term debt, less current portion | 366,614 | 212,679 | |
Term Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 64,000 | ||
Financing Arrangement [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 163 | 458 | $ 590 |
2016 Credit Agreement Due 2022 [Member] | Term Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 63,975 | $ 223,975 | |
2018 Senior Notes due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 315,000 |
Long Term Debt - Schedule of _2
Long Term Debt - Schedule of Long-term Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Aug. 10, 2018 | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | |||
Lump sum payment due | $ 379,138 | $ 224,433 | |
2016 Credit Agreement Due 2022 [Member] | Term Loan Payable with 0.675 [Member] | |||
Debt Instrument [Line Items] | |||
Term note payable in quarterly installments | $ 675 | $ 675 | |
Average rate of interest payable | 2.34% | 1.46% | |
Average rate margin of interest payable | 3.50% | 4.75% | |
2016 Credit Agreement Due 2022 [Member] | Term Loan Payable with 0.675 [Member] | Due on February 15, 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Lump sum payment due | $ 64,000 | $ 64,000 | |
2018 Senior Notes due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Accrued Interest rate | 6.75% | 6.75% | 6.75% |
Lump sum payment due | $ 315,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | Dec. 19, 2018USD ($) | Aug. 10, 2018USD ($) | Mar. 16, 2018 | Feb. 16, 2016USD ($) | Jul. 31, 2017USD ($)Installment | Feb. 29, 2016USD ($) | Dec. 29, 2018USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 18, 2018USD ($) |
Line of Credit Facility [Line Items] | |||||||||||
Face value of Debt Outstanding | $ 379,138,000 | $ 379,138,000 | $ 224,433,000 | ||||||||
Debt extinguishment costs | 3,375,000 | $ 3,431,000 | |||||||||
Letters of credit outstanding | $ 1,100,000 | 1,100,000 | |||||||||
Base Rate [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on LIBOR | 3.75% | ||||||||||
LIBOR [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on LIBOR | 4.75% | ||||||||||
2016 Credit Agreement Due 2022 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Accrued interest | $ 400,000 | ||||||||||
Credit agreement date | Feb. 16, 2016 | ||||||||||
Interest rate terms | The Second Amendment, among other things, decreases the applicable interest rate margins for the Initial Term Loans (as defined in the 2016 Credit Agreement due 2022) from (i) 3.75% to 2.50%, in the case of the Base Rate Loans (as defined in the 2016 Credit Agreement due 2022), and (ii) 4.75% to 3.50%, in the case of the Eurodollar Loans (as defined in the 2016 Credit Agreement due 2022). | ||||||||||
Debt extinguishment costs | $ 3,375,000 | ||||||||||
Maximum net leverage ratio | 425.00% | ||||||||||
Maximum net leverage ratio thereafter | 400.00% | ||||||||||
Current first lien net leverage ratio description | We were not required to test our first lien net leverage ratio for the quarter ending December 29, 2018 because we did not exceed 20% of our revolving capacity | ||||||||||
Accelerated amortization relating to prepayment under the 2016 Credit Agreement | $ (5,557,000) | ||||||||||
Prepayment of term loan | $ 204,000,000 | ||||||||||
Credit agreement inception year month | 2016-02 | ||||||||||
Credit facility maturity date | Feb. 21, 2022 | ||||||||||
2016 Credit Agreement Due 2022 [Member] | 2018 Equity Issuance [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Outstanding Borrowing | $ 8,000,000 | $ 152,000,000 | |||||||||
Repayment of credit facility | $ 8,000,000 | ||||||||||
2016 Credit Agreement Due 2022 [Member] | Letter of Credit [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Excluded unused borrowing capacity from financial covenant leverage | $ 7,500,000 | $ 7,500,000 | |||||||||
Cash collateralized percentage for borrowings excluded from financial covenant leverage | 105.00% | ||||||||||
2016 Credit Agreement Due 2022 [Member] | Base Rate [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on LIBOR | 2.50% | 3.75% | |||||||||
2016 Credit Agreement Due 2022 [Member] | Eurodollar [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on LIBOR | 3.50% | 4.75% | |||||||||
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 | 5.84% | 5.84% | 6.21% | ||||||||
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 | ||||||||||
Credit facility amortization percentage | 0.50% | ||||||||||
Credit available on revolver | $ 38,900,000 | $ 38,900,000 | |||||||||
Letter Of Credit Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility amortization percentage | 5.75% | ||||||||||
Facing fee per annum | 0.125% | ||||||||||
2018 Senior Notes due 2026 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Long-term debt | $ 315,000,000 | ||||||||||
Percentage of Principal Amount Redeemed | 100.00% | ||||||||||
Accrued Interest rate | 6.75% | 6.75% | 6.75% | ||||||||
Face value of Debt Outstanding | $ 315,000,000 | $ 315,000,000 | |||||||||
Accrued interest | $ 8,300,000 | ||||||||||
Financing Costs | $ 10,400,000 | ||||||||||
Repurchase notes percentage of aggregate principal amount | 101.00% | 101.00% | |||||||||
Term Notes Payable [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Face value of Debt Outstanding | $ 64,000,000 | $ 64,000,000 | |||||||||
Term Notes Payable [Member] | 2016 Credit Agreement Due 2022 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Face value of Debt Outstanding | 63,975,000 | 63,975,000 | $ 223,975,000 | ||||||||
Financing Arrangement [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Face value of Debt Outstanding | $ 590,000 | $ 163,000 | $ 163,000 | $ 458,000 | |||||||
Debt Instrument, Number of installments | Installment | 24 | ||||||||||
Debt Instrument, Installment Amount | $ 26,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% |
Long-Term Debt - Activity Relat
Long-Term Debt - Activity Relating to Third-Party Fees and Costs, Lender Fees and Discount (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Add: 2018 Senior Notes deferred financing costs | $ 12,066 | $ 7,178 |
Less: Debt extinguishment costs | (3,375) | $ (3,431) |
At end of year | 12,361 | |
2016 Credit Agreement Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
At beginning of year | 11,460 | |
Less: Amortization expense | (1,861) | |
Add: 2018 Senior Notes deferred financing costs | 1,687 | |
Less: Debt extinguishment costs | (3,375) | |
Less: Accelerated amortization relating to prepayment under the 2016 Credit Agreement | (5,557) | |
2018 Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Less: Amortization expense | (372) | |
Add: 2018 Senior Notes deferred financing costs | $ 10,379 |
Long-Term Debt - Activity Rel_2
Long-Term Debt - Activity Relating to Third-Party Fees and Costs, Lender Fees and Discount (Parenthetical) (Detail) | 12 Months Ended |
Dec. 29, 2018 | |
2016 Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Debt instrument maturity year | 2,022 |
2018 Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument maturity year | 2,026 |
Long-Term Debt - Estimated Amor
Long-Term Debt - Estimated Amortization Expense Relating to Third-Party Fees and Costs, Lender Fees and Discount (Detail) $ in Thousands | Dec. 29, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 1,752 |
2,020 | 1,913 |
2,021 | 1,893 |
2,022 | 1,353 |
2,023 | 1,359 |
Thereafter | 4,091 |
Total | $ 12,361 |
Long-Term Debt - Contractual Fu
Long-Term Debt - Contractual Future Maturities of Long-Term Debt Outstanding, Including Other Debt Relating to Software License Financing Arrangement (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 163 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 63,975 | |
2,023 | 0 | |
Thereafter | 315,000 | |
Total | $ 379,138 | $ 224,433 |
Long Term Debt - Interest Expen
Long Term Debt - Interest Expense, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||
Long-term debt | $ 18,946 | $ 15,644 | $ 17,351 |
Debt fees | 251 | 290 | 296 |
Amortization and write-offs of deferred financing costs and debt discount | 7,790 | 4,642 | 2,721 |
Interest income | (389) | (236) | (105) |
Interest expense | 26,598 | 20,340 | 20,263 |
Capitalized interest | (69) | (61) | (138) |
Interest expense, net | $ 26,529 | $ 20,279 | $ 20,125 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) $ in Thousands, lb in Millions | 12 Months Ended |
Dec. 29, 2018USD ($)ForwardContractlb$ / lb | |
Derivative [Line Items] | |
Derivative liabilities, net | $ 4,118 |
Fair Value of Derivative | 3,900 |
Aluminum Contracts [Member] | |
Derivative [Line Items] | |
Derivative liabilities, net | $ 4,100 |
Number of outstanding forward contracts | ForwardContract | 38 |
Derivative, amount of hedged item | lb | 36.6 |
Derivative average price | $ / lb | 0.96 |
Maturity period of contract, minimum | 1 month |
Maturity period of contract, maximum | 15 months |
Accumulated other comprehensive income, net of tax | $ 3,100 |
Derivatives - Summary of Fair V
Derivatives - Summary of Fair Value of Hedges (Detail) $ in Thousands | Dec. 29, 2018USD ($) |
Derivative Instruments And Hedging Activities [Line Items] | |
Total derivative instruments (Liabilities) | $ (4,118) |
Aluminum Forward Contracts [Member] | Accrued Liabilities [Member] | |
Derivative Instruments And Hedging Activities [Line Items] | |
Total derivative instruments (Liabilities) | (3,907) |
Aluminum Forward Contracts [Member] | Other Liabilities [Member] | |
Derivative Instruments And Hedging Activities [Line Items] | |
Total derivative instruments (Liabilities) | $ (211) |
Derivatives - Gains (Losses) on
Derivatives - Gains (Losses) on Derivative Financial Instruments (Detail) $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives | $ (4,357) |
Aluminum Contracts [Member] | Inventory Classified as Cost of Sales [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives | (4,357) |
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income | $ (239) |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value of assets, level 1 to level 2 transfers | $ 0 | $ 0 | $ 0 |
Principal outstanding value | 379,138,000 | 224,433,000 | |
2016 Credit Agreement [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value of current long-term debt | 63,200,000 | 227,300,000 | |
Principal outstanding value | 64,000,000 | 224,000,000 | |
2018 Senior Notes [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value of current long-term debt | 311,900,000 | ||
Principal outstanding value | $ 315,000,000 | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 11,818 | $ 8,063 | $ 4,602 |
State | 4,416 | 1,066 | 921 |
Total current | 16,234 | 9,129 | 5,523 |
Federal | (3,407) | (10,010) | 5,371 |
State | (1,555) | 944 | 906 |
Total deferred | (4,962) | (9,066) | 6,277 |
Income tax expense | $ 11,272 | $ 63 | $ 11,800 |
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. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Consolidated statements of income: | |||
Income tax expense relating to continuing operations | $ 11,272 | $ 63 | $ 11,800 |
Consolidated statements of shareholders' equity: | |||
Income tax expense relating to derivative financial instruments | $ (1,053) | ||
Income tax benefit relating to share-based compensation | $ (1,872) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit | 4.50% | 3.80% | 3.80% |
Change in net deferred tax liability related to U.S. tax reform | 0.40% | (31.10%) | |
Excess stock-based compensation tax benefits | (8.00%) | (4.60%) | |
Disaster tax credit for hurricane Irma | (0.70%) | ||
Domestic manufacturing deduction | (2.50%) | (1.80%) | |
Research activities credits | (0.70%) | (0.20%) | (2.80%) |
Florida jobs creation incentive credits | (0.50%) | (0.60%) | |
Change in valuation allowance on deferred tax assets | (0.20%) | ||
Non-deductible expenses | 0.90% | 0.50% | 0.20% |
Other | (0.10%) | (0.20%) | (0.40%) |
Total statutory federal income tax rate | 17.30% | 0.20% | 33.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Aug. 13, 2018 | Feb. 16, 2016 | Jan. 02, 2016 | |
Income Taxes [Line Items] | ||||||
Operating loss carryforwards | $ 1,900,000 | |||||
Operating loss carryforwards, expiration date | 2,027 | |||||
Valuation allowance | $ 0 | $ 0 | ||||
Excess tax benefit | $ 1,872,000 | |||||
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% | |||
Tax benefit due to tax rate change | $ 12,400,000 | |||||
Adjustment of income tax expense | $ 231,000 | |||||
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 | 2,017 | |||||
ASU 2016-09 [Member] | ||||||
Income Taxes [Line Items] | ||||||
Excess tax benefit | $ 5,200,000 | 1,800,000 | ||||
North Carolina [Member] | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance against net operating losses | $ 200,000 | |||||
Net operating losses carryforward | $ 100,000 | |||||
State [Member] | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards | 1,400,000 | |||||
Western Window Systems [Member] | ||||||
Income Taxes [Line Items] | ||||||
Goodwill deductible for tax purpose | $ 139,600,000 | |||||
Unamortized goodwill | $ 129,900,000 | |||||
Step-up acquisition of goodwill percentage | 81.94% | |||||
Acquisition of assets and assumption of liabilities | $ 133,600,000 | |||||
Western Window Systems [Member] | Western Window Systems Blocker LLC [Member] | ||||||
Income Taxes [Line Items] | ||||||
Ownership percentage aquired | 18.06% | |||||
Unamortized goodwill | $ 5,800,000 | |||||
Step-up acquisition of goodwill percentage | 18.06% | |||||
Acquisition of assets and assumption of liabilities | $ 6,000,000 | |||||
CGI [Member] | ||||||
Income Taxes [Line Items] | ||||||
Goodwill deductible for tax purpose | 9,300,000 | |||||
Deferred tax asset and liability | $ 0 | |||||
Goodwill remaining amortization period for tax purposes | 7 years 4 months 24 days | |||||
Unamortized goodwill | $ 4,000,000 | 5,200,000 | ||||
WinDoor [Member] | ||||||
Income Taxes [Line Items] | ||||||
Goodwill deductible for tax purpose | 38,900,000 | $ 38,900,000 | ||||
Unamortized goodwill | 31,300,000 | 33,900,000 | ||||
US Impact Systems Inc. [Member] | ||||||
Income Taxes [Line Items] | ||||||
Goodwill deductible for tax purpose | 569,000 | |||||
Unamortized goodwill | $ 478,000 | $ 515,000 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Asset and Liability (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Aug. 13, 2018 | Dec. 30, 2017 |
Deferred tax assets: | |||
Advance supplier consideration | $ 4,280 | $ 132 | |
Other deferrals and accruals, net | 2,100 | 691 | |
Stock-based compensation expense | 1,796 | 1,663 | |
Accrued warranty | 1,442 | 1,378 | |
State bonus depreciation and net operating loss carryforwards | 1,414 | 965 | |
Derivative financial instruments | 1,053 | ||
Acquisition costs | 1,022 | 306 | |
Allowance for doubtful accounts | 642 | 292 | |
Obsolete inventory and UNICAP adjustment | 515 | 412 | |
Total deferred tax assets | 14,264 | 5,839 | |
Deferred tax liabilities: | |||
Trade names and other intangible assets, net | (20,935) | (16,749) | |
Property, plant and equipment | (10,741) | (8,056) | |
Goodwill | (5,092) | (3,099) | |
Deferred financing costs | (659) | ||
Prepaid expenses | (254) | (48) | |
Total deferred tax liabilities | (37,022) | (28,611) | |
Net deferred tax liability | $ (22,758) | $ (22,772) | |
Western Window Systems [Member] | |||
Deferred tax liabilities: | |||
Trade names and other intangible assets, net | $ (1,082) | ||
Other indefinite lived intangible assets | (3,372) | ||
Property, plant and equipment | (759) | ||
Other | (140) | ||
Net deferred tax liability | $ (5,353) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Lease expenses | $ 6.4 | $ 4.7 | $ 4.2 |
Amount required for payment of materials | 12 | ||
Purchase of materials | 278.9 | $ 175.7 | $ 132.8 |
Letters of credit | 1.1 | ||
Commitments to purchase equipment | $ 1.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Commitments for Non-Cancelable Operating Leases (Detail) $ in Thousands | Dec. 29, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,019 | $ 6,343 |
2,020 | 6,354 |
2,021 | 4,748 |
2,022 | 3,831 |
2,023 | 3,801 |
Thereafter | 17,885 |
Total | $ 42,962 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
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 | $ 2.7 | $ 1.8 | $ 1.9 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - Builders FirstSource, Inc [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Total net sales to Builders FirstSource | $ 17.2 | $ 13.8 | $ 12.8 |
Accounts receivable due from Builders FirstSource | $ 2.2 | $ 2.2 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | Sep. 18, 2018$ / sharesshares | Dec. 29, 2018USD ($)Time$ / sharesshares | Dec. 30, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Oct. 28, 2015USD ($) |
Schedule Of Equity [Line Items] | |||||
Number of times common stock grants issued, under special employee grants | Time | 3 | ||||
Shares issued to employees, under special employee grants | shares | 28,160 | ||||
Number of shares received by each employee under special employee grants | shares | 10 | ||||
Weighted average grant date fair value per share, issued under special employee grants | $ / shares | $ 20.84 | ||||
Common stock , gross proceeds | $ 161,000,000 | ||||
Common stock underwriting fee , per share | $ / shares | $ 1.15 | ||||
Proceeds from issuance of common stock | $ 153,000,000 | ||||
Proceeds to prepay outstanding borrowings | 152,000,000 | ||||
Payment of offering expenses | $ 447,000 | ||||
Shares repurchased | shares | 35,691 | 23,826 | 299,988 | ||
Acquisition of treasury stock | $ 687,000 | $ 284,000 | $ 2,847,000 | ||
Shares retired | shares | 11,805 | ||||
Stock repurchase program, authorized amount | $ 20,000,000 | ||||
2015 Share Repurchase Program [Member] | |||||
Schedule Of Equity [Line Items] | |||||
Shares repurchased | shares | 288,183 | ||||
Acquisition of treasury stock | $ 2,700,000 | ||||
Program for Repurchases of Company Common Stock [Member] | |||||
Schedule Of Equity [Line Items] | |||||
Shares repurchased | shares | 0 | 0 | |||
Restricted Stock [Member] | |||||
Schedule Of Equity [Line Items] | |||||
Shares repurchased | shares | 11,805 | ||||
Acquisition of treasury stock | $ 100,000 | ||||
Underwritten Public Offering [Member] | |||||
Schedule Of Equity [Line Items] | |||||
Common stock , issued | shares | 7,000,000 | ||||
Common stock, price per share | $ / shares | $ 23 | ||||
Selling, General and Administrative Expenses [Member] | |||||
Schedule Of Equity [Line Items] | |||||
Allocated stock-based compensation expense | $ 587,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | May 19, 2018Member$ / sharesshares | Mar. 02, 2018$ / sharesshares | Dec. 29, 2018USD ($)$ / sharesshares | Dec. 30, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | May 07, 2014shares | Mar. 28, 2014shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense for stock based awards | $ 3,383 | $ 1,948 | $ 1,769 | ||||
Outstanding Intrinsic Value | 13,999 | ||||||
Exercisable options intrinsic value | 13,984 | ||||||
Aggregate intrinsic value of stock options exercised | $ 20,300 | $ 5,100 | $ 5,100 | ||||
Number of shares exercised | shares | 1,119,247 | 470,622 | 537,364 | ||||
Proceeds from exercise of stock options | $ 2,239 | $ 941 | $ 981 | ||||
Restricted Stock Award [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock awards | shares | 30,456 | 181,838 | |||||
Weighted average fair value of common stock | $ / shares | $ 20.40 | $ 14.26 | $ 10.35 | ||||
Number of non-management members of board of directors | Member | 8 | ||||||
Total unrecognized compensation | $ 2,700 | ||||||
Weighted-average period | 1 year 6 months | ||||||
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 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
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 2, 2018, issuance of 139,182 shares, or 69,591 shares. | ||||||
Restricted Stock [Member] | Executives and Non-Executive Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock awards | shares | 139,182 | ||||||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Outstanding Intrinsic Value | $ 31,800 | 24,600 | |||||
Exercisable options intrinsic value | 31,700 | 24,600 | |||||
Total fair value of options vested | $ 21 | 29 | 32 | ||||
Proceeds from exercise of stock options | 2,200 | 900 | 1,000 | ||||
Tax benefit realized | $ 5,200 | $ 1,800 | $ 1,900 | ||||
2014 Omnibus Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares available for grant | shares | 661,522 | 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 | 181,838 | ||||||
Weighted average fair value of common stock | $ / shares | $ 18.70 | ||||||
2006 Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares available for grant | shares | 0 | ||||||
2015 Omnibus Incentive Plan [Member] | Restricted Stock [Member] | Executives and Non-Executive Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock awards | shares | 69,591 | ||||||
Weighted average fair value of common stock | $ / shares | $ 18.40 | ||||||
2015 Omnibus Incentive Plan [Member] | Restricted Stock [Member] | Executives and Non-Executive Employees [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance percentage | 80.00% | ||||||
Percentage of shares issuable based on target performance | 0.00% | ||||||
2015 Omnibus Incentive Plan [Member] | Restricted Stock [Member] | Executives and Non-Executive Employees [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance percentage | 120.00% | ||||||
Percentage of shares issuable based on target performance | 150.00% |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of the Status of Stock Options (Detail) - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Shares, Outstanding Beginning balance | 2,154,328 | ||
Number of Shares, Exercised | (1,119,247) | (470,622) | (537,364) |
Number of Shares, Outstanding Ending balance | 1,035,081 | 2,154,328 | |
Number of Shares, Exercisable Balance | 1,031,081 | ||
Weighted Average Exercise Price | $ 2.09 | ||
Exercised | 2 | ||
Weighted Average Exercise Price | 2.20 | $ 2.09 | |
Exercisable at December 29, 2018 | $ 2.16 | ||
Weighted Average Remaining Life, Outstanding Balance | 1 year 6 months | ||
Weighted Average Remaining Life, Exercisable Balance | 1 year 6 months |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Information about Employee Stock Options Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 2.20 | $ 2.09 |
Outstanding | 1,035,081 | |
Outstanding Intrinsic Value | $ 13,999 | |
Exercisable | 1,031,081 | |
Exercisable Intrinsic Value | $ 13,984 | |
Range One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining Contractual Life | 1 year 4 months 24 days | |
Outstanding | 1,015,081 | |
Outstanding Intrinsic Value | $ 13,921 | |
Exercisable | 1,015,081 | |
Exercisable Intrinsic Value | $ 13,921 | |
Range One [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 2 | |
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 | 5 years 2 months 12 days | |
Outstanding | 20,000 | |
Outstanding Intrinsic Value | $ 78 | |
Exercisable | 16,000 | |
Exercisable Intrinsic Value | $ 63 |
Stock Based Compensation - Su_3
Stock Based Compensation - Summary of the Status of Restricted Share Awards (Detail) - Restricted Stock Award [Member] - $ / shares | May 19, 2018 | Dec. 29, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding at December 30, 2017 | 396,114 | |
Granted | 30,456 | 181,838 |
Vested | (162,841) | |
Forfeited/Performance adjustment | (52,485) | |
Outstanding at December 29, 2018 | 362,626 | |
Weighted Average Fair Value, Outstanding Beginning balance | $ 10.35 | |
Weighted Average Fair Value, Granted | 18.70 | |
Weighted Average Fair Value, Vested | 10.63 | |
Weighted Average Fair Value, Forfeited/Performance adjustment | 12.55 | |
Weighted Average Fair Value, Outstanding Ending balance | $ 20.40 | $ 14.26 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | $ 175,325 |
Tax effect | 1,053 |
Net current-period other comprehensive loss | (3,065) |
Ending Balance | 385,544 |
Accumulated Other Comprehensive Loss [Member] | |
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Net current-period other comprehensive loss | (3,065) |
Ending Balance | (3,065) |
Aluminum Forward Contracts [Member] | |
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Other comprehensive loss before reclassification | (4,357) |
Amounts reclassified from other comprehensive loss | 239 |
Tax effect | 1,053 |
Net current-period other comprehensive loss | (3,065) |
Aluminum Forward Contracts [Member] | Accumulated Other Comprehensive Loss [Member] | |
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Ending Balance | $ (3,065) |
Sales by Product - Additional I
Sales by Product - Additional Information (Detail) | 12 Months Ended |
Dec. 29, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Sales by Product - Summary of S
Sales by Product - Summary of Sales by Product (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | $ 189,887 | $ 199,084 | $ 169,269 | $ 140,253 | $ 134,100 | $ 126,876 | $ 137,384 | $ 112,721 | $ 698,493 | $ 511,081 | $ 458,550 |
Impact-Resistant Windows and Door Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 561,800 | 433,400 | 381,600 | ||||||||
Non-Impact Window and Door Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | $ 136,700 | $ 77,700 | $ 77,000 |
Unaudited Quarterly Financial_3
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. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 189,887 | $ 199,084 | $ 169,269 | $ 140,253 | $ 134,100 | $ 126,876 | $ 137,384 | $ 112,721 | $ 698,493 | $ 511,081 | $ 458,550 |
Gross profit | 65,750 | 72,998 | 59,947 | 44,773 | 42,944 | 39,748 | 44,553 | 31,739 | 243,468 | 158,984 | 140,098 |
Net income | $ 10,474 | $ 13,571 | $ 22,548 | $ 7,340 | $ 20,293 | $ 6,292 | $ 10,255 | $ 2,999 | $ 53,933 | $ 39,839 | $ 23,747 |
Net income per share – basic | $ 0.18 | $ 0.26 | $ 0.45 | $ 0.15 | $ 0.41 | $ 0.13 | $ 0.21 | $ 0.06 | $ 1.03 | $ 0.80 | $ 0.49 |
Net income per share – diluted | $ 0.18 | $ 0.26 | $ 0.43 | $ 0.14 | $ 0.39 | $ 0.12 | $ 0.20 | $ 0.06 | $ 1 | $ 0.77 | $ 0.47 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 964 | $ 399 | $ 336 |
Added in Acquisition | 159 | ||
Costs and expenses | 2,270 | 673 | 67 |
Deductions | (445) | (108) | (163) |
Balance at End of Period | $ 2,789 | $ 964 | $ 399 |