Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 30, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PGTI | |
Entity Registrant Name | PGT Innovations, Inc. | |
Entity Central Index Key | 0001354327 | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 58,347,213 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 173,737 | $ 140,253 |
Cost of sales | 112,467 | 95,480 |
Gross profit | 61,270 | 44,773 |
Selling, general and administrative expenses | 44,014 | 28,657 |
Income from operations | 17,256 | 16,116 |
Interest expense, net | 6,714 | 4,043 |
Debt extinguishment costs | 3,079 | |
Income before income taxes | 10,542 | 8,994 |
Income tax expense | 2,285 | 1,654 |
Net income | $ 8,257 | $ 7,340 |
Net income per common share: | ||
Basic | $ 0.14 | $ 0.15 |
Diluted | $ 0.14 | $ 0.14 |
Weighted average shares outstanding: | ||
Basic | 58,134 | 49,858 |
Diluted | 59,220 | 51,998 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 8,257 | $ 7,340 |
Other comprehensive income (loss) before tax: | ||
Change in fair value of derivatives | 595 | (83) |
Reclassification to earnings | 915 | |
Other comprehensive income (loss) before tax | 1,510 | (83) |
Income tax (expense) benefit related to components of other comprehensive income (loss) | (386) | 21 |
Other comprehensive income (loss), net of tax | 1,124 | (62) |
Comprehensive income | $ 9,381 | $ 7,278 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 44,936 | $ 52,650 |
Accounts receivable, net | 76,035 | 80,717 |
Inventories | 47,962 | 44,666 |
Contract assets, net | 9,375 | 6,757 |
Prepaid expenses | 5,495 | 2,863 |
Other current assets | 10,317 | 7,908 |
Total current assets | 194,120 | 195,561 |
Property, plant and equipment, net | 120,238 | 115,707 |
Operating lease right-of-use asset, net | 29,568 | |
Intangible assets, net | 267,803 | 271,818 |
Goodwill | 277,827 | 277,827 |
Other assets, net | 1,192 | 1,240 |
Total assets | 890,748 | 862,153 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 56,963 | 68,557 |
Current portion of long-term debt | 87 | 163 |
Current portion of operating lease liability | 7,016 | |
Total current liabilities | 64,066 | 68,720 |
Long-term debt, less current portion | 367,041 | 366,614 |
Operating lease liability, less current portion | 25,510 | |
Deferred income taxes | 23,144 | 22,758 |
Other liabilities | 15,139 | 18,517 |
Total liabilities | 494,900 | 476,609 |
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; 61,273 and 60,729 shares issued and 58,289 and 58,082 shares outstanding at March 30, 2019 and December 29, 2018, respectively | 613 | 607 |
Additional paid-in-capital | 410,578 | 409,661 |
Accumulated other comprehensive loss | (1,941) | (3,065) |
Accumulated deficit | (643) | (8,900) |
Shareholders' equity | 408,607 | 398,303 |
Less: Treasury stock at cost | (12,759) | (12,759) |
Total shareholders' equity | 395,848 | 385,544 |
Total liabilities and shareholders' equity | $ 890,748 | $ 862,153 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 30, 2019 | Dec. 29, 2018 |
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 | 61,273,000 | 60,729,000 |
Common stock, shares outstanding | 58,289,000 | 58,082,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 8,257 | $ 7,340 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 4,497 | 2,961 |
Amortization | 4,015 | 1,659 |
Amortization of right-of-use asset | 1,597 | |
Provision for allowance for doubtful accounts | 68 | 416 |
Stock-based compensation | 1,198 | 514 |
Amortization and write-offs of deferred financing costs and debt discount | 427 | 615 |
Debt extinguishment costs | 3,079 | |
Gains on transfers and disposals of assets | (28) | (10) |
Change in operating assets and liabilities: | ||
Accounts receivable | (60) | (7,921) |
Inventories | (3,651) | (3,332) |
Contract assets, net, prepaid expenses, other current and other assets | (4,678) | (1,034) |
Change in operating lease liability | 508 | |
Accounts payable, accrued and other liabilities | (11,242) | 4,591 |
Net cash provided by operating activities | 908 | 8,878 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (8,299) | (6,644) |
Proceeds from transfers and disposals of assets | 28 | 10 |
Net cash used in investing activities | (8,271) | (6,634) |
Cash flows from financing activities: | ||
Payments of long-term debt | (76) | (72) |
Payments of financing costs | (1,687) | |
Taxes paid relating to shares withheld on employee equity awards | (505) | (637) |
Proceeds from exercise of stock options | 213 | 173 |
Proceeds from issuance of common stock under employee stock purchase plan (ESPP) | 17 | 5 |
Other | (7) | |
Net cash used in financing activities | (351) | (2,225) |
Net (decrease) increase in cash and cash equivalents | (7,714) | 19 |
Cash and cash equivalents at beginning of period | 52,650 | 34,029 |
Cash and cash equivalents at end of period | 44,936 | 34,048 |
Non-cash activity: | ||
Establish right-of-use asset | 31,165 | |
Establish operating lease liability | (33,594) | |
Property, plant and equipment additions in accounts payable | $ 729 | $ 512 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Previously Reported [Member] | Common Stock [Member] | Common Stock [Member]Previously Reported [Member] | Additional Paid-in Capital [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 Dec. 30, 2017 | $ 175,325 | $ 525 | $ 252,275 | $ (64,716) | $ (12,759) | ||||||
Beginning Balance, Shares at Dec. 30, 2017 | 49,805,338,000 | ||||||||||
Cumulative effect of change in accounting principle, net of tax effect (Accounting Standards Update 2014-09 [Member]) at Dec. 30, 2017 | $ 1,883 | $ 1,883 | |||||||||
Beginning Balance at Dec. 30, 2017 | 177,208 | $ 525 | $ 252,275 | (62,833) | $ (12,759) | ||||||
Beginning Balance, Shares at Dec. 30, 2017 | 49,805,338,000 | ||||||||||
Vesting of restricted stock, Shares | 116,475,000 | ||||||||||
Grants of restricted stock | $ 1 | (1) | |||||||||
Purchases of treasury stock | (637) | (637) | |||||||||
Purchases of treasury stock, Shares | (32,439,000) | ||||||||||
Retirement of treasury stock | $ (1) | (636) | 637 | ||||||||
Stock-based compensation | 514 | 514 | |||||||||
Exercise of stock options | 173 | $ 1 | 172 | ||||||||
Exercise of stock options, Shares | 86,549,000 | ||||||||||
Common stock issued under ESPP | 5 | 5 | |||||||||
Common stock issued under ESPP, Shares | 373,000 | ||||||||||
Net income | 7,340 | 7,340 | |||||||||
Other comprehensive income (loss) | (62) | $ (62) | |||||||||
Ending Balance at Mar. 31, 2018 | 184,541 | $ 526 | 252,329 | (62) | (55,493) | (12,759) | |||||
Ending Balance, Shares at Mar. 31, 2018 | 49,976,296,000 | ||||||||||
Beginning Balance at Dec. 29, 2018 | 385,544 | $ 607 | 409,661 | (3,065) | (8,900) | (12,759) | |||||
Beginning Balance, Shares at Dec. 29, 2018 | 58,081,540,000 | ||||||||||
Vesting of restricted stock, Shares | 133,770,000 | ||||||||||
Grants of restricted stock | $ 5 | (5) | |||||||||
Purchases of treasury stock | (505) | (505) | |||||||||
Purchases of treasury stock, Shares | (34,240,000) | ||||||||||
Retirement of treasury stock | (505) | 505 | |||||||||
Stock-based compensation | 1,198 | 1,198 | |||||||||
Exercise of stock options | $ 213 | $ 1 | 212 | ||||||||
Exercise of stock options, Shares | 106,740 | 106,740,000 | |||||||||
Common stock issued under ESPP | $ 17 | 17 | |||||||||
Common stock issued under ESPP, Shares | 1,061,000 | ||||||||||
Net income | 8,257 | 8,257 | |||||||||
Other comprehensive income (loss) | 1,124 | 1,124 | |||||||||
Ending Balance at Mar. 30, 2019 | $ 395,848 | $ 613 | $ 410,578 | $ (1,941) | $ (643) | $ (12,759) | |||||
Ending Balance, Shares at Mar. 30, 2019 | 58,288,871,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Cumulative effect of change in method of recognizing revenue, net of tax effect | $ 647 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | NOTE 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements include the accounts of PGT Innovations, Inc. and its direct and indirect wholly-owned subsidiaries, including, PGT Industries, Inc., CGI Window and Door Holdings, Inc. (“CGI”), CGI Commercial, Inc. (“CGIC”), WinDoor, Incorporated, Coyote Acquisition Co. and WWS Acquisition LLC (formerly known as GEF WW Parent LLC) (collectively, the “Company”), after elimination of intercompany accounts and transactions. 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 energy-efficient windows and doors designed to unify indoor/outdoor living spaces and offers a broad range of fully customizable window and door products. Products are sold through an authorized dealer and distributor network. The majority of our sales are to customers in the state of Florida, but we sell products to customers in many states. We also have sales in the Caribbean, Canada, and in South and Central America. With the acquisition of Western Window Systems (‘WWS’), we have an increased level of sales in the western United States. See Note 6 for a discussion of this acquisition. 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. These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all the information and footnotes required by United States Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim period is not necessarily indicative of the results that may be expected for the remainder of the current year or for any future periods. Each of the Company’s fiscal quarters ended March 30, 2019, and March 31, 2018, consisted of 13 weeks. The condensed consolidated balance sheet as of December 29, 2018, is derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP. The condensed consolidated balance sheet as of December 29, 2018, and the unaudited condensed consolidated financial statements as of and for the period ended March 30, 2019, should be read in conjunction with the more detailed audited consolidated financial statements for the year ended December 29, 2018, included in the Company’s most recent Annual Report on Form 10-K. Except for the adoption of the guidance relating to leases discussed below, the accounting policies used in the preparation of these unaudited condensed consolidated financial statements are consistent with the accounting policies described in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K. 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. In the three months ended March 30, 2019, we concluded that we have two reportable segments: the Southeast segment, and the Western segment. The Southeast reporting segment, which is also an operating segment, is composed of our sales in Florida, the core market of our Legacy business, as well as Alabama, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and the Caribbean. The Western reporting segment, also an operating segment, is composed of sales in the rest of the United States, along with Canada and Mexico. While both of our operating segments have products, distribution methods and customers of a similar nature, we determined to not aggregate them due to the differences in their geographic markets. Therefore, our operating segments are our reportable segments. See Note 16 for segment disclosures. Recently Adopted Accounting Pronouncements 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 was effective for us on December 30, 2018 (the first day of our 2019 fiscal year), with early adoption permitted. We adopted the new standard on this date, using the required modified retrospective transition approach, applying the new standard to all leases existing on the effective date. Consequently, financial information was not updated, and the disclosures required under the new standard are and will not be provided for dates and periods prior to December 30, 2018. As of the date of adoption, all of our leases were operating leases, and we have no financing leases as of March 30, 2019. The new standard provided a number of optional practical expedients in transition. We elected the ‘package of practical expedients’, which permitted us not to reassess under the new standard our prior conclusions about lease identification, lease classification and direct costs, and implemented internal controls and additional lease accounting and tracking procedures to enable the preparation of financial information on adoption. We did not elect the use-of-hindsight practical expedient, or the practical expedient pertaining to land easements as it was not applicable to us. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualified, primarily for certain vehicle and office equipment leases that are month-to-month leases. This means, for those leases, we did not recognize right-of-use assets or lease liabilities. We also elected the practical expedient to not separate lease and non-lease components for all classes of underlying assets. This standard had a material effect on our consolidated balance sheet relating to the recognition of an operating lease right-of-use asset and operating lease liability on our balance sheet for our real estate operating leases and to providing new disclosures about our leasing activities. On adoption, we recognized an operating lease right-of-use asset of $31.2 $33.6 6.2% Leases Accounting Policy We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liability, and operating lease liability, less current portion on our consolidated balance sheets. Should we engage in any finance leases in the future, finance leases would be included in property and equipment, other current liabilities, and other liabilities on our consolidated balance sheets. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease right-of-use asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Recently Issued Accounting Pronouncements 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 does not believe that the adoption of this guidance will have a significant impact 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. 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. As of March 30, 2019, and December 29, 2018, the allowance for doubtful accounts was million and million, respectively. |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 3 Months Ended |
Mar. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition and Contracts with Customers | NOTE 2. REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS 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 of 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 the substantial portion of revenue over time during the manufacturing process once customization begins, and for certain unused glass components on hand, at the end of a reporting period. Revenue on work-in-process at the end of a reporting period is recognized in proportion to costs incurred to total estimated cost of the product being manufactured. Revenue recognized at a point in time is immaterial. Disaggregation of Revenue from Contracts with Customers As discussed in note 1, in the first quarter of 2019, we determined that we have two reportable segments: our Southeast business unit and our Western business unit. See note 16 for more information. Net sales of the Western business unit for the three months ended March 31, 2018 are not presented as they were immaterial. The following tables provides information about our net sales by product category and by channel for the three months ended March 30, 2019, by segment, and for the three months ended March 31, 2018 (dollars in millions): Three Months Ended March 30, 2019 Segments Southeast Western Total Product category: Impact-resistant window and door products $ 120.7 $ 0.8 $ 121.5 Non-impact window and door products 19.1 33.1 52.2 Total net sales $ 139.8 $ 33.9 $ 173.7 Channel: New construction $ 56.2 $ 32.1 $ 88.3 Repair and remodel 83.6 1.8 85.4 Total net sales $ 139.8 $ 33.9 $ 173.7 Three Months Ended March 31, 2018 Product category: Impact-resistant window and door products $ 120.5 Non-impact window and door products 19.8 Total net sales $ 140.3 Channel: New construction $ 51.6 Repair and remodel 88.7 Total net sales $ 140.3 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 relate to customer deposits at the end of reporting periods. At March 30, 2019, and December 29, 2018, those contract liabilities totaled $8.6 $8.3 $7.4 $7.8 $1.2 $0.5 Because of the short-term nature of our performance obligations, as discussed below, substantially all of our performance obligations are satisfied within the quarter following the end of a reporting period. As such, substantially all of the contract liabilities at December 29, 2018 were satisfied in the three-month period ended March 30, 2019. Contract assets at December 29, 2018 were transferred to accounts receivable in the three-month period ended March 30, 2019. Contract liabilities at March 30, 2019 represents cash received during the three-month period ended March 30, 2019, excluding amounts recognized as revenue during that period. Contract assets at March 30, 2019 represents revenue recognized during the three-month period ended March 30, 2019, excluding amounts transferred to accounts receivable during that period. 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 March 30, 2019 under the short-term contract exemption as we expect such performance obligations will be satisfied within the quarter following the end of a reporting period. 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 Company utilizes the 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 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. |
Warranty
Warranty | 3 Months Ended |
Mar. 30, 2019 | |
Guarantees And Product Warranties [Abstract] | |
Warranty | NOTE 3. WARRANTY Most of our manufactured products are sold with warranties. Warranty periods, which vary by product components, generally range from 1 to 10 years; however, the warranty period for a limited number of specifically identified components in certain applications is a lifetime. The majority of the products sold have warranties on components which range from 1 to 3 years. The amount charged to expense for warranties is based on management’s assessment of the cost per service call and the number of service calls expected to be incurred to satisfy warranty obligations on the current net sales. During the three months ended March 30, 2019, we recorded warranty expense at a rate of approximately 1.6% 1.7% The following table summarizes: current period charges, adjustments to previous estimates, if necessary, as well as settlements, which represent actual costs incurred during the period for the three months ended March 30, 2019, and March 31, 2018. The reserve is determined through specific identification and assessing Company history. Expected future obligations are discounted to a current value using a risk-free rate for obligations with similar maturities. Beginning Charged End of Accrued Warranty of Period to Expense Adjustments Settlements Period (in thousands) Three months ended March 30, 2019 $ 6,149 $ 2,820 $ 28 $ (3,016 ) $ 5,981 Three months ended March 31, 2018 $ 5,386 $ 2,366 $ (110 ) $ (2,319 ) $ 5,323 |
Inventories
Inventories | 3 Months Ended |
Mar. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 4. INVENTORIES Inventories consist principally of raw materials purchased for the manufacture of our products. We have limited finished goods inventory since the substantial majority of our products are custom, made-to-order and the revenue on these products, as well as the related cost, has been fully recognized upon completion of the manufacturing process. Finished goods inventory, and work-in-progress costs include direct materials, direct labor, and overhead. All inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. Inventories consisted of the following: March 30, December 29, 2019 2018 (in thousands) Raw materials $ 44,574 $ 42,036 Work-in-progress 3,154 2,278 Finished goods 234 352 $ 47,962 $ 44,666 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | NOTE 5. STOCK BASED-COMPENSATION Exercises For the three months ended March 30, 2019, there were 106,740 options exercised at a weighted average exercise price of $2.00 per share. Issuance On January 7, 2019, Francis Powell Hawes, a then newly-appointed member of our Board of Directors, received a prorated stock award of 1,720 $16.10 On February 14, 2019, we granted 258,628 restricted stock awards to certain executives and non-executive employees of the Company under the 2019 Long-Term Incentive Plan (LTIP). The restrictions on these stock awards lapse over time based solely on continued service. However, the quantity of restricted shares granted on half of these shares, or 129,314 shares, is fixed, whereas the quantity granted on the remaining half, or 129,314 shares, is subject to Company-specific performance criteria. The restricted stock awards have a fair value on date of grant of $17.76 per share based on the closing New York Stock Exchange market price of the common stock on the day prior to the day the awards were granted. Those restricted shares whose quantity is fixed vest in equal amounts over a three-year period on the first, second and third anniversary dates of the grant. Those restricted shares whose quantity is subject to Company performance criteria vest in equal amounts on the second and third anniversary dates of the grant, if they are earned. The performance criteria, as defined in the share awards, provides for a graded awarding of shares based on the percentage by which the Company meets earnings before interest and taxes, as defined, in our 2019 business plan. The performance percentages, ranging from less than 80% to greater than 120%, provide for the awarding of shares ranging from no shares to 150% of the target number of shares. On March 1, 2019, we granted an additional 33,663 Stock Compensation Expense We record stock compensation expense over an equity award’s vesting period based on the award’s fair value at the date of grant. We recorded compensation expense for stock-based awards of $1.2 million for the three months ended March 30, 2019, and $0.5 $6.2 |
Acquisition
Acquisition | 3 Months Ended |
Mar. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 6. ACQUISITION WESTERN WINDOW SYSTEMS Preliminary purchase price allocation On August 13, 2018 (the “closing date”), we completed the acquisition of Western Window Systems (“WWS”), which became a wholly-owned subsidiary of PGT Innovations, Inc. The fair value of consideration transferred in the acquisition was $354.6 million. The acquisition was financed 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 9 for a discussion of the 2018 Senior Notes due 2026. The preliminary estimated 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 taxes — (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 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 then-existing subsidiary, WWS Blocker LLC (Blocker). Blocker was a single-purpose U.S. tax blocker which held a 18.06% $5.4 We incurred acquisition costs totaling $4.4 $0.7 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 $139.6 The purchase agreement relating to the WWS Acquisition (PA) has a post-closing working capital calculation whereby we were required to prepare, and which we delivered to the sellers, a final statement of purchase price, including our calculation of actual net working capital as of the closing date. The calculation resulted in a net decrease in purchase price of $0.6 No net sales or earnings are included in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2018, as the WWS Acquisition was effective on August 13, 2018. Preliminary valuation of identified intangible assets The valuation of the identifiable intangible assets acquired in the WWS acquisition and our estimate of their respective useful lives are as follows: Preliminary Initial Valuation Useful Life Amount (in years) (in thousands) Trade name $ 73,000 indefinite Customer relationships 94,000 10 Other intangible assets, net $ 167,000 |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | NOTE 7. NET INCOME PER COMMON SHARE Basic earnings per share (“EPS”) is computed by dividing net income available to common shareholders, by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the dilutive effect of potential common shares from securities such as stock options. There were 263 The table below presents the calculation of EPS and a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS for our Company: Three Months Ended March 30, March 31, 2019 2018 (in thousands, except per share amounts) Net income $ 8,257 $ 7,340 Weighted-average common shares - Basic 58,134 49,858 Add: Dilutive effect of stock compensation plans 1,086 2,140 Weighted-average common shares - Diluted 59,220 51,998 Net income per common share: Basic $ 0.14 $ 0.15 Diluted $ 0.14 $ 0.14 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and intangible assets are as follows: Initial March 30, December 29, Useful Life 2019 2018 (in years) (in thousands) Goodwill $ 277,827 $ 277,827 indefinite Other intangible assets: Trade names $ 148,841 $ 148,841 indefinite Customer relationships 200,647 200,647 3-10 Developed technology 3,000 3,000 9-10 Non-compete agreement 1,668 1,668 2-5 Software license 590 590 2 Less: Accumulated amortization (86,943 ) (82,928 ) Subtotal 118,962 122,977 Other intangible assets, net $ 267,803 $ 271,818 Estimated amortization of our amortizable intangible assets for future years is as follows: (in thousands) Total Remainder of 2019 $ 11,815 2020 15,859 2021 15,374 2022 14,515 2023 12,354 Thereafter 49,045 Total $ 118,962 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 9. LONG-TERM DEBT March 30, December 29, 2019 2018 (in thousands) 2018 Senior Notes due 2026 $ 315,000 $ 315,000 Term loan payable under the 2016 Credit Agreement 63,975 63,975 Other debt 87 163 Long-term debt 379,062 379,138 Fees, costs and original issue discount (11,934 ) (12,361 ) Long-term debt, net 367,128 366,777 Less current portion of long-term debt (87 ) (163 ) Long-term debt, less current portion $ 367,041 $ 366,614 2018 Senior Notes due 2026 On August 10, 2018, we completed the issuance of $315.0 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 $315.0 $3.6 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”). 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, unlike the Second Amendment, 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 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 6.04% 5.84% 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 March 30, 2019, there were $1.1 $38.9 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 March 30, 2019 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 March 30, 2019 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, 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 “2018 Equity Issuance”). 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. Contemporaneously with the 2018 Equity Issuance, we prepaid 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 million in borrowings under the 2016 Credit Agreement due 2022. As of March 30, 2019, the principal amount of debt outstanding under the 2016 Credit Agreement due 2022 was million, and accrued interest was million. Deferred Financing Costs The activity relating to third-party fees and costs, lender fees and discount for the nine months ended March 30, 2019, are as follows. All debt-related fees, costs and original issue discount are classified as a reduction of the carrying value of long-term debt: (in thousands) Total At beginning of year $ 12,361 Less: Amortization expense relating to 2016 Credit Agreement (181 ) Less: Amortization expense relating to 2018 Senior Notes (246 ) At end of period $ 11,934 Estimated amortization expense relating to third-party fees and costs, lender fees and discount for the years indicated as of March 30, 2019, is as follows: (in thousands) Total Remainder of 2019 $ 1,325 2020 1,913 2021 1,893 2022 1,353 2023 1,359 Thereafter 4,091 Total $ 11,934 As a result of prepayments of the 2016 Credit Agreement due 2022 totaling $204.0 (in thousands) Remainder of 2019 $ 87 2020 — 2021 — 2022 63,975 2023 — Thereafter 315,000 Total $ 379,062 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 approximated our then borrowing rate under the 2016 Credit Agreement due 2022, a Level 3 input. At March 30, 2019, there was $87 thousand outstanding under this financing arrangement. |
Leases
Leases | 3 Months Ended |
Mar. 30, 2019 | |
Leases [Abstract] | |
Leases | NOTE 10. 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 leases have remaining lease terms of 1 year to 9 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year. All of our leases are operating leases. The components of lease expense were as follows (in thousands): Three Months Ended March 30, 2019 Operating lease cost $ 2,126 Other information relating to leases was as follows (in thousands, except percentages): Three Months Ended March 30, 2019 Supplemental cash flows information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (1,576 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ - Weighted average remaining lease term in years Operating leases 4.63 Weighted average discount rate Operating leases 6.2 % Future minimum lease payments under non-cancellable leases were as follows at March 30, 2019, and December 29, 2018 (in thousands): At At March 30, December 29, 2019 2018 Remainder of 2019 $ 4,767 $ 6,343 2020 6,354 6,354 2021 4,748 4,748 2022 3,831 3,831 2023 3,801 3,801 Thereafter 17,885 17,885 Total future minimum lease payments 41,386 $ 42,962 Less: Imputed interest (8,860 ) Operating lease liability - total $ 32,526 Reported as of March 30, 2019 Current portion of operating lease liability $ 7,016 Operating lease liability, less current portion 25,510 Operating lease liability - total $ 32,526 As of March 30, 2019, we had no additional operating or finance leases that have not yet commenced. Our operating leases expire at various times through 2027. Lease expense prior to the adoption of ASU 2016-02 would have been $2.1 $1.3 $6.4 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11. COMMITMENTS AND CONTINGENCIES Litigation Our Company is a party to various legal proceedings in the ordinary course of business. Although the ultimate disposition of those proceedings cannot be predicted with certainty, management believes the outcome of any claim that is pending or threatened, either individually or in the aggregate, will not have a material adverse effect on our operations, financial position or cash flows. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12. INCOME TAXES Our income tax expense was $2.3 million for the first quarter of 2019, compared with $1.7 million for the first quarter of 2018. Our effective tax rate for the three months ended March 30, 2019, was 21.7%, and was 18.4% for the three months ended March 31, 2018. Income tax expense in the three months ended March 30, 2019, and March 31, 2018, includes excess tax benefits relating to exercises of stock options and lapses of restrictions on stock awards, treated as a discrete item of income tax, totaling $422 thousand and $613 thousand, respectively As a result of the Tax Cuts and Jobs Act, enacted effective on December 22, 2017, our Federal corporate income tax rate has been reduced from 35%, to 21%. This reduction in rate has lowered our overall effective tax rate. Additionally, the section 199 domestic manufacturing deduction was repealed. As such, our effective tax rate, excluding the discrete items discussed above, approximates our current combined statutory federal and state rate of 25.6%. During the three months ended March 30, 2019, we did not make any payments of estimated federal or state income taxes, nor did we receive any refunds of federal or state income taxes. The Internal Revenue Service provided tax relief relating to taxpayers in certain designated areas of Florida impacted by Hurricane Irma, which included all counties in Florida in which we operate. As a result, the deadline for remitting our required 2017 third quarter estimated payment for corporate income taxes, as well as the deadline for filing our 2016 fiscal year corporate income tax return, was extended to January 31, 2018. Therefore, in January 2018, we made an estimated Federal income tax payment totaling $9.0 million relating to the 2017 tax year. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 13. 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 the three months ended March 30, 2019, or March 31, 2018, we did not make any transfers between Level 2 and Level 3 financial assets. We conduct reviews on a quarterly basis to verify pricing, assess liquidity, and determine if significant inputs have changed that would impact the fair value hierarchy disclosure. Fair Value of Financial Instruments Our financial instruments include cash, accounts and notes receivable, and accounts payable, 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 $63.8 million as of March 30, 2019, compared to a principal outstanding value of $64.0 million, and fair value of $63.2 million as of December 29, 2018, compared to a principal outstanding value of $64.0 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 $328.4 million as of March 30, 2019, compared to a principal outstanding value of $315.0 million, and the fair value was approximately $311.9 million as of December 29, 2018, compared to a principal outstanding value of $315.0 million. Fair values were determined based on observed trading prices of our debt between domestic financial institutions. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 14. DERIVATIVES Aluminum Contracts We enter into aluminum forward contracts to hedge the fluctuations in the purchase price of aluminum extrusion we use in production. Our contracts are designated as cash flow hedges since they are highly effective in offsetting changes in the cash flows attributable to forecasted purchases of aluminum. Guidance under the Financial Instruments Topic 825 of the Codification requires us to record our hedge contracts at fair value and consider 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 March 30, 2019, the fair value of our aluminum forward contracts was in a net liability 34 28.6 $0.96 one nine We assess the effectiveness of our aluminum forward contracts by comparing the change in the fair value of the forward contract to the change in the expected cash to be paid for the hedged item. The effective portion of the gain or loss on our aluminum forward contracts is reported as a component of accumulated other comprehensive loss and is reclassified into earnings in the same line item in the income statement as the hedged item in the same period or periods during which the transaction affects earnings. The amount of losses, net, recognized in the “accumulated other comprehensive loss” line item in the accompanying condensed consolidated balance sheet as of March 30, 2019, that we expect will be reclassified to earnings within the next twelve months, is approximately $2.6 million. The fair value of our aluminum hedges are classified in the accompanying consolidated balance sheets as follows (in thousands): Derivative Assets Derivative Liabilities March 30, 2019 March 30, 2019 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 $ 9 Accrued liabilities $ (2,616 ) Aluminum forward contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 9 Total derivative liabilities $ (2,616 ) The ending accumulated balance for the aluminum forward contracts included in accumulated other comprehensive losses, net of tax, was $1.9 $3.1 The following represents the gains (losses) on derivative financial instruments, and their classifications within the accompanying condensed consolidated financial statements (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 Three Months Ended Three Months Ended March 30, March 31, March 30, March 31, 2019 2018 2019 2018 Aluminum contracts $ 595 $ (83 ) Cost of sales $ (915 ) $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | NOTE 15. ACCUMULATED OTHER COMPREHENSIVE LOSS The following table shows the components of accumulated other comprehensive loss for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Aluminum Three months ended March 30, 2019 Forward (in thousands) Contracts Balance at December 29, 2018 $ (3,065 ) Other comprehensive income 595 Amounts reclassified from other comprehensive loss 915 Tax effect (386 ) Net current-period other comprehensive income 1,124 Balance at March 30, 2019 $ (1,941 ) Aluminum Three months ended March 31, 2018 Forward (in thousands) Contracts Balance at December 30, 2017 $ — Other comprehensive loss (83 ) Tax effect 21 Net current-period other comprehensive loss (62 ) Balance at March 31, 2018 $ (62 ) |
Segments
Segments | 3 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Segments | NOTE 16. SEGMENTS We have two reportable segments: the Southeast segment, and the Western segment. The Southeast reporting segment, which is also an operating segment, is composed of our sales in Florida, the core market of our Legacy business, as well as Alabama, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and the Caribbean. The Western reporting segment, also an operating segment, is composed of sales in the rest of the United States, along with Canada and Mexico. The operations of the Western reporting segment are composed primarily of the results of WWS and the results of the legacy operations of the Company in the west, which were immaterial in the three months ended March 31, 2018. While both of our operating segments have products, distribution methods and customers of a similar nature, we determined to not aggregate them due to the differences in their geographic markets. Therefore, our operating segments are also our reportable segments. Centralized financial and operational oversight, including resource allocation and assessment of performance on an income (loss) from operations basis, is performed by our CEO, whom we have determined to be our chief operating decision maker (“CODM”), with oversight by the Board of Directors. Total asset information by segment is not included herein as asset information by segment is not presented to or reviewed by the CODM. The following table represents summary financial data attributable to our operating segments for the three months ended March 30, 2019. Prior periods are not presented as the results of the Western segment are composed substantially of the results of WWS, which was acquired on August 13, 2018 (in thousands): Three Months Ended March 30, 2019 Net sales: Southeast segment $ 139,808 Western segment 33,929 Total net sales $ 173,737 Income from operations: Southeast segment $ 14,810 Western segment 2,446 Total income from operations 17,256 Interest expense, net 6,714 Total income before income taxes $ 10,542 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements 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 was effective for us on December 30, 2018 (the first day of our 2019 fiscal year), with early adoption permitted. We adopted the new standard on this date, using the required modified retrospective transition approach, applying the new standard to all leases existing on the effective date. Consequently, financial information was not updated, and the disclosures required under the new standard are and will not be provided for dates and periods prior to December 30, 2018. As of the date of adoption, all of our leases were operating leases, and we have no financing leases as of March 30, 2019. The new standard provided a number of optional practical expedients in transition. We elected the ‘package of practical expedients’, which permitted us not to reassess under the new standard our prior conclusions about lease identification, lease classification and direct costs, and implemented internal controls and additional lease accounting and tracking procedures to enable the preparation of financial information on adoption. We did not elect the use-of-hindsight practical expedient, or the practical expedient pertaining to land easements as it was not applicable to us. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualified, primarily for certain vehicle and office equipment leases that are month-to-month leases. This means, for those leases, we did not recognize right-of-use assets or lease liabilities. We also elected the practical expedient to not separate lease and non-lease components for all classes of underlying assets. This standard had a material effect on our consolidated balance sheet relating to the recognition of an operating lease right-of-use asset and operating lease liability on our balance sheet for our real estate operating leases and to providing new disclosures about our leasing activities. On adoption, we recognized an operating lease right-of-use asset of $31.2 $33.6 6.2% Leases Accounting Policy We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liability, and operating lease liability, less current portion on our consolidated balance sheets. Should we engage in any finance leases in the future, finance leases would be included in property and equipment, other current liabilities, and other liabilities on our consolidated balance sheets. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease right-of-use asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Recently Issued Accounting Pronouncements 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 does not believe that the adoption of this guidance will have a significant impact 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. 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. As of March 30, 2019, and December 29, 2018, the allowance for doubtful accounts was million and million, respectively. |
Revenue Recognition Accounting Policy | 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 of 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 the substantial portion of revenue over time during the manufacturing process once customization begins, and for certain unused glass components on hand, at the end of a reporting period. Revenue on work-in-process at the end of a reporting period is recognized in proportion to costs incurred to total estimated cost of the product being manufactured. Revenue recognized at a point in time is immaterial. |
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 Company utilizes the 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 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. |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Net Sales by Product Category, Channel and by Segment | The following tables provides information about our net sales by product category and by channel for the three months ended March 30, 2019, by segment, and for the three months ended March 31, 2018 (dollars in millions): Three Months Ended March 30, 2019 Segments Southeast Western Total Product category: Impact-resistant window and door products $ 120.7 $ 0.8 $ 121.5 Non-impact window and door products 19.1 33.1 52.2 Total net sales $ 139.8 $ 33.9 $ 173.7 Channel: New construction $ 56.2 $ 32.1 $ 88.3 Repair and remodel 83.6 1.8 85.4 Total net sales $ 139.8 $ 33.9 $ 173.7 Three Months Ended March 31, 2018 Product category: Impact-resistant window and door products $ 120.5 Non-impact window and door products 19.8 Total net sales $ 140.3 Channel: New construction $ 51.6 Repair and remodel 88.7 Total net sales $ 140.3 |
Warranty (Tables)
Warranty (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Guarantees And Product Warranties [Abstract] | |
Summary of Current Period Charges, Adjustments to Previous Estimates, Settlements representing Actual Costs Incurred with regard to Accrued Warranty | The following table summarizes: current period charges, adjustments to previous estimates, if necessary, as well as settlements, which represent actual costs incurred during the period for the three months ended March 30, 2019, and March 31, 2018. The reserve is determined through specific identification and assessing Company history. Expected future obligations are discounted to a current value using a risk-free rate for obligations with similar maturities. Beginning Charged End of Accrued Warranty of Period to Expense Adjustments Settlements Period (in thousands) Three months ended March 30, 2019 $ 6,149 $ 2,820 $ 28 $ (3,016 ) $ 5,981 Three months ended March 31, 2018 $ 5,386 $ 2,366 $ (110 ) $ (2,319 ) $ 5,323 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: March 30, December 29, 2019 2018 (in thousands) Raw materials $ 44,574 $ 42,036 Work-in-progress 3,154 2,278 Finished goods 234 352 $ 47,962 $ 44,666 |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Assumed | The preliminary estimated 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 taxes — (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 |
Schedule for Valuation of Identifiable Intangible Assets Acquired and Estimate of Useful Lives | The valuation of the identifiable intangible assets acquired in the WWS acquisition and our estimate of their respective useful lives are as follows: Preliminary Initial Valuation Useful Life Amount (in years) (in thousands) Trade name $ 73,000 indefinite Customer relationships 94,000 10 Other intangible assets, net $ 167,000 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS | The table below presents the calculation of EPS and a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS for our Company: Three Months Ended March 30, March 31, 2019 2018 (in thousands, except per share amounts) Net income $ 8,257 $ 7,340 Weighted-average common shares - Basic 58,134 49,858 Add: Dilutive effect of stock compensation plans 1,086 2,140 Weighted-average common shares - Diluted 59,220 51,998 Net income per common share: Basic $ 0.14 $ 0.15 Diluted $ 0.14 $ 0.14 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets Net | Goodwill and intangible assets are as follows: Initial March 30, December 29, Useful Life 2019 2018 (in years) (in thousands) Goodwill $ 277,827 $ 277,827 indefinite Other intangible assets: Trade names $ 148,841 $ 148,841 indefinite Customer relationships 200,647 200,647 3-10 Developed technology 3,000 3,000 9-10 Non-compete agreement 1,668 1,668 2-5 Software license 590 590 2 Less: Accumulated amortization (86,943 ) (82,928 ) Subtotal 118,962 122,977 Other intangible assets, net $ 267,803 $ 271,818 |
Estimated Amortization for Future Fiscal Year | Estimated amortization of our amortizable intangible assets for future years is as follows: (in thousands) Total Remainder of 2019 $ 11,815 2020 15,859 2021 15,374 2022 14,515 2023 12,354 Thereafter 49,045 Total $ 118,962 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | March 30, December 29, 2019 2018 (in thousands) 2018 Senior Notes due 2026 $ 315,000 $ 315,000 Term loan payable under the 2016 Credit Agreement 63,975 63,975 Other debt 87 163 Long-term debt 379,062 379,138 Fees, costs and original issue discount (11,934 ) (12,361 ) Long-term debt, net 367,128 366,777 Less current portion of long-term debt (87 ) (163 ) Long-term debt, less current portion $ 367,041 $ 366,614 |
Activity Relating to Third-Party Fees and Costs, Lender Fees and Discount | The activity relating to third-party fees and costs, lender fees and discount for the nine months ended March 30, 2019, are as follows. All debt-related fees, costs and original issue discount are classified as a reduction of the carrying value of long-term debt: (in thousands) Total At beginning of year $ 12,361 Less: Amortization expense relating to 2016 Credit Agreement (181 ) Less: Amortization expense relating to 2018 Senior Notes (246 ) At end of period $ 11,934 |
Estimated Amortization Expense Relating to Third-Party Fees and Costs, Lender Fees and Discount | Estimated amortization expense relating to third-party fees and costs, lender fees and discount for the years indicated as of March 30, 2019, is as follows: (in thousands) Total Remainder of 2019 $ 1,325 2020 1,913 2021 1,893 2022 1,353 2023 1,359 Thereafter 4,091 Total $ 11,934 |
Contractual Future Maturities of Long-Term Debt Outstanding, Including Financing Arrangement Described as Other Debt | As a result of prepayments of the 2016 Credit Agreement due 2022 totaling $204.0 (in thousands) Remainder of 2019 $ 87 2020 — 2021 — 2022 63,975 2023 — Thereafter 315,000 Total $ 379,062 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows (in thousands): Three Months Ended March 30, 2019 Operating lease cost $ 2,126 |
Other Information Relating to Leases | Other information relating to leases was as follows (in thousands, except percentages): Three Months Ended March 30, 2019 Supplemental cash flows information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (1,576 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ - Weighted average remaining lease term in years Operating leases 4.63 Weighted average discount rate Operating leases 6.2 % |
Future Minimum Lease Payments under Non-cancellable Leases | Future minimum lease payments under non-cancellable leases were as follows at March 30, 2019, and December 29, 2018 (in thousands): At At March 30, December 29, 2019 2018 Remainder of 2019 $ 4,767 $ 6,343 2020 6,354 6,354 2021 4,748 4,748 2022 3,831 3,831 2023 3,801 3,801 Thereafter 17,885 17,885 Total future minimum lease payments 41,386 $ 42,962 Less: Imputed interest (8,860 ) Operating lease liability - total $ 32,526 Reported as of March 30, 2019 Current portion of operating lease liability $ 7,016 Operating lease liability, less current portion 25,510 Operating lease liability - total $ 32,526 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
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 March 30, 2019 March 30, 2019 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 $ 9 Accrued liabilities $ (2,616 ) Aluminum forward contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 9 Total derivative liabilities $ (2,616 ) |
Gains (Losses) on Derivative Financial Instruments | The following represents the gains (losses) on derivative financial instruments, and their classifications within the accompanying condensed consolidated financial statements (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 Three Months Ended Three Months Ended March 30, March 31, March 30, March 31, 2019 2018 2019 2018 Aluminum contracts $ 595 $ (83 ) Cost of sales $ (915 ) $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table shows the components of accumulated other comprehensive loss for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Aluminum Three months ended March 30, 2019 Forward (in thousands) Contracts Balance at December 29, 2018 $ (3,065 ) Other comprehensive income 595 Amounts reclassified from other comprehensive loss 915 Tax effect (386 ) Net current-period other comprehensive income 1,124 Balance at March 30, 2019 $ (1,941 ) Aluminum Three months ended March 31, 2018 Forward (in thousands) Contracts Balance at December 30, 2017 $ — Other comprehensive loss (83 ) Tax effect 21 Net current-period other comprehensive loss (62 ) Balance at March 31, 2018 $ (62 ) |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Financial Data Attributable to Operating Segments | The following table represents summary financial data attributable to our operating segments for the three months ended March 30, 2019. Prior periods are not presented as the results of the Western segment are composed substantially of the results of WWS, which was acquired on August 13, 2018 (in thousands): Three Months Ended March 30, 2019 Net sales: Southeast segment $ 139,808 Western segment 33,929 Total net sales $ 173,737 Income from operations: Southeast segment $ 14,810 Western segment 2,446 Total income from operations 17,256 Interest expense, net 6,714 Total income before income taxes $ 10,542 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019USD ($)OperationPlantSegment | Dec. 29, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of manufacturing operations | Operation | 4 | |
Number of reportable segments | Segment | 2 | |
Operating lease right-of-use asset, net | $ | $ 29,568 | |
Operating lease liability | $ | 32,526 | |
Allowance for doubtful accounts | $ | 2,900 | $ 2,800 |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use asset, net | $ | 31,200 | |
Operating lease liability | $ | $ 33,600 | |
Accounting Standards Update 2016-02 [Member] | 2018 Senior Notes due 2026 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Weighted-average interest rate | 6.20% | |
North Venice [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of manufacturing operations | Operation | 1 | |
Greater Miami [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of manufacturing operations | Operation | 2 | |
Orlando [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of manufacturing operations | Operation | 1 | |
Arizona [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of manufacturing operations | Operation | 1 | |
Glass Tempering and Laminating Plant [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of plants | Plant | 2 | |
Glass Tempering and Laminating Plant [Member] | North Venice [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of plants | Plant | 2 | |
Insulation Glass Plants [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of plants | Plant | 1 | |
Insulation Glass Plants [Member] | North Venice [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of plants | Plant | 1 |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 30, 2019USD ($)Segment | Dec. 29, 2018USD ($) | |
Disaggregation Of Revenue [Line Items] | ||
Number of reportable segments | Segment | 2 | |
Contract liabilities | $ 8.6 | $ 8.3 |
Revenue recognition, practical expedient | true | |
Accrued Liabilities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Contract liabilities | $ 7.4 | 7.8 |
Contract Assets, Net [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Contract liabilities | $ 1.2 | $ 0.5 |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Net Sales by Product Category, Channel and by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 173,737 | $ 140,253 |
Impact-Resistant Windows and Door Products [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 121,500 | 120,500 |
Non-Impact Window and Door Products [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 52,200 | 19,800 |
New Construction [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 88,300 | 51,600 |
Repair and Remodel [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 85,400 | $ 88,700 |
Southeast Segment [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 139,808 | |
Southeast Segment [Member] | Impact-Resistant Windows and Door Products [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 120,700 | |
Southeast Segment [Member] | Non-Impact Window and Door Products [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 19,100 | |
Southeast Segment [Member] | New Construction [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 56,200 | |
Southeast Segment [Member] | Repair and Remodel [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 83,600 | |
Western Segment [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 33,929 | |
Western Segment [Member] | Impact-Resistant Windows and Door Products [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 800 | |
Western Segment [Member] | Non-Impact Window and Door Products [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 33,100 | |
Western Segment [Member] | New Construction [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 32,100 | |
Western Segment [Member] | Repair and Remodel [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 1,800 |
Warranty - Additional Informati
Warranty - Additional Information (Detail) | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Product Warranty Liability [Line Items] | ||
Warranty expense, average rate of sales | 1.60% | 1.70% |
Minimum [Member] | ||
Product Warranty Liability [Line Items] | ||
Warranty periods | 1 year | |
Warranty period of the majority of products sold | 1 year | |
Maximum [Member] | ||
Product Warranty Liability [Line Items] | ||
Warranty periods | 10 years | |
Warranty period of the majority of products sold | 3 years |
Warranty - Summary of Current P
Warranty - Summary of Current Period Charges, Adjustments to Previous Estimates, Settlements representing Actual Costs Incurred with regard to Accrued Warranty (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Guarantees And Product Warranties [Abstract] | ||
Accrued Warranty, Beginning of Period | $ 6,149 | $ 5,386 |
Accrued Warranty, Charged to Expense | 2,820 | 2,366 |
Accrued Warranty, Adjustments | 28 | (110) |
Accrued Warranty, Settlements | (3,016) | (2,319) |
Accrued Warranty, End of Period | $ 5,981 | $ 5,323 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 44,574 | $ 42,036 |
Work-in-progress | 3,154 | 2,278 |
Finished goods | 234 | 352 |
Inventories | $ 47,962 | $ 44,666 |
Stock Based-Compensation - Addi
Stock Based-Compensation - Additional Information (Detail) - USD ($) | Mar. 01, 2019 | Feb. 14, 2019 | Jan. 07, 2019 | Mar. 30, 2019 | Mar. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of stock options exercised | 106,740 | ||||
Weighted average exercise price of options exercised | $ 2 | ||||
Compensation expense for stock based awards | $ 1,198,000 | $ 514,000 | |||
Executives and Non-Executive Employees [Member] | Fixed Criteria [Member] | 2019 Long-Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock awards | 129,314 | ||||
Options vesting period | 3 years | ||||
Restricted Stock Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation | $ 6,200,000 | ||||
Weighted-average period | 1 year 9 months 18 days | ||||
Restricted Stock Award [Member] | Francis Powell Hawes [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock awards | 1,720 | ||||
Fair value of common stock | $ 16.10 | ||||
Total grant-date fair value, amount | $ 27,690 | ||||
Options vesting period | 1 year | ||||
Restricted Stock Award [Member] | Executives and Non-Executive Employees [Member] | 2019 Long-Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock awards | 258,628 | ||||
Fair value of common stock | $ 17.76 | ||||
Restricted Stock Award [Member] | Executives and Non-Executive Employees [Member] | 2018 LTIP [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock awards | 33,663 | ||||
Target performance percentage achieved | 120.00% | ||||
Percentage of shares issued based on target performance | 150.00% | ||||
Company Performance Criteria [Member] | Executives and Non-Executive Employees [Member] | 2019 Long-Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock awards | 129,314 | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance criteria defined in share awards | The performance percentages, ranging from less than 80% to greater than 120%, provide for the awarding of shares ranging from no shares to 150% of the target number of shares. | ||||
Restricted Stock [Member] | Executives and Non-Executive Employees [Member] | 2019 Long-Term Incentive Plan [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% | ||||
Restricted Stock [Member] | Executives and Non-Executive Employees [Member] | 2019 Long-Term Incentive Plan [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% |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) | Aug. 13, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | Dec. 29, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 277,827,000 | $ 277,827,000 | ||
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 | 4,400,000 | $ 700,000 | $ 0 | |
Goodwill | 169,767,000 | |||
Goodwill deductible for tax purposes | 139,600,000 | |||
Net decrease in the purchase price | $ 600,000 | |||
Net sales from acquisition | $ 0 | |||
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 |
Acquisition - Schedule of Fair
Acquisition - Schedule of Fair Value of Assets and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Aug. 13, 2018 | Mar. 30, 2019 | Dec. 29, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 277,827 | $ 277,827 | |
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 taxes | (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 taxes | (5,353) | ||
Purchase price | (629) | ||
Cash | (629) | ||
Total fair value of consideration | $ (629) |
Acquisition - Schedule for Valu
Acquisition - Schedule for Valuation of Identifiable Intangible Assets Acquired and Estimate of 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] | |
Preliminary Valuation Amount | $ 94,000 |
Initial useful life (in years) | 10 years |
Trade Name [Member] | |
Business Acquisition [Line Items] | |
Preliminary Valuation Amount | $ 73,000 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from the calculation of weighted average shares outstanding | 263,000 | 0 |
Net Income Per Common Share - C
Net Income Per Common Share - Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 8,257 | $ 7,340 |
Weighted-average common shares - Basic | 58,134 | 49,858 |
Add: Dilutive effect of stock compensation plans | 1,086 | 2,140 |
Weighted-average common shares - Diluted | 59,220 | 51,998 |
Net income per common share: | ||
Basic | $ 0.14 | $ 0.15 |
Diluted | $ 0.14 | $ 0.14 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill and Intangible Assets Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Dec. 29, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 277,827 | $ 277,827 |
Less: Accumulated amortization | (86,943) | (82,928) |
Subtotal | 118,962 | 122,977 |
Other intangible assets, net | 267,803 | 271,818 |
Trade Names [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | 148,841 | 148,841 |
Customer Relationships [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | $ 200,647 | 200,647 |
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 and Other Intangible_4
Goodwill and Other Intangible Assets - Estimated Amortization for Future Fiscal Year (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2019 | $ 11,815 | |
2020 | 15,859 | |
2021 | 15,374 | |
2022 | 14,515 | |
2023 | 12,354 | |
Thereafter | 49,045 | |
Subtotal | $ 118,962 | $ 122,977 |
Long Term Debt - Schedule of Lo
Long Term Debt - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 | Jul. 31, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 379,062 | $ 379,138 | |
Fees, costs and original issue discount | (11,934) | (12,361) | |
Long-term debt, net | 367,128 | 366,777 | |
Less current portion of long-term debt | (87) | (163) | |
Long-term debt, less current portion | 367,041 | 366,614 | |
Term Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 64,000 | ||
Financing Arrangement [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 87 | 163 | $ 590 |
2016 Credit Agreement [Member] | Term Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 63,975 | 63,975 | |
2018 Senior Notes due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 315,000 | $ 315,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | Dec. 19, 2018USD ($) | Sep. 18, 2018USD ($)$ / sharesshares | Aug. 10, 2018USD ($) | Mar. 16, 2018 | Feb. 16, 2016USD ($) | Jul. 31, 2017USD ($)Installment | Feb. 29, 2016USD ($) | Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 29, 2018USD ($) |
Line of Credit Facility [Line Items] | ||||||||||
Face value of Debt Outstanding | $ 379,062,000 | $ 379,138,000 | ||||||||
Debt extinguishment costs | $ 3,079,000 | |||||||||
Letters of credit outstanding | 1,100,000 | |||||||||
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 | |||||||||
Underwritten Public Offering [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Common stock , issued | shares | 7,000,000 | |||||||||
Common stock, price per share | $ / shares | $ 23 | |||||||||
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 | $ 200,000 | |||||||||
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 | $ 3,400,000 | |||||||||
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 March 30, 2019 because we did not exceed 20% of our revolving capacity | |||||||||
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 | $ 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 | |||||||||
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 | 6.04% | 5.84% | ||||||||
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 | |||||||||
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 | |||||||||
Accrued Interest rate | 6.75% | |||||||||
Percentage of Principal Amount Redeemed | 100.00% | |||||||||
Debt instrument, maturity date | Aug. 10, 2026 | |||||||||
Face value of Debt Outstanding | $ 315,000,000 | |||||||||
Accrued interest | $ 3,600,000 | |||||||||
Financing Costs | $ 10,400,000 | |||||||||
Repurchase notes percentage of aggregate principal amount | 101.00% | |||||||||
Term Notes Payable [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Face value of Debt Outstanding | $ 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 | ||||||||
Financing Arrangement [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Face value of Debt Outstanding | $ 590,000 | $ 87,000 | $ 163,000 | |||||||
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) $ in Thousands | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Debt Instrument [Line Items] | |
At beginning of year | $ 12,361 |
At end of period | 11,934 |
2016 Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Less: Amortization expense | (181) |
2018 Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Less: Amortization expense | $ (246) |
Long-Term Debt - Estimated Amor
Long-Term Debt - Estimated Amortization Expense Relating to Third-Party Fees and Costs, Lender Fees and Discount (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Debt Disclosure [Abstract] | ||
Remainder of 2019 | $ 1,325 | |
2020 | 1,913 | |
2021 | 1,893 | |
2022 | 1,353 | |
2023 | 1,359 | |
Thereafter | 4,091 | |
Total | $ 11,934 | $ 12,361 |
Long-Term Debt - Contractual Fu
Long-Term Debt - Contractual Future Maturities of Long-Term Debt Outstanding, Including Financing Arrangement Described as Other Debt (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Debt Disclosure [Abstract] | ||
Remainder of 2019 | $ 87 | |
2020 | 0 | |
2021 | 0 | |
2022 | 63,975 | |
2023 | 0 | |
Thereafter | 315,000 | |
Total | $ 379,062 | $ 379,138 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | Dec. 29, 2018 | |
Lessee Lease Description [Line Items] | |||
Operating lease existence of option to extend | true | ||
Operating lease extension period | 5 years | ||
Operating lease existence of option to terminate | true | ||
Operating lease not yet commenced description | no additional operating or finance leases that have not yet commenced | ||
Finance lease not yet commenced description | no additional operating or finance leases that have not yet commenced | ||
Previously Reported [Member] | |||
Lessee Lease Description [Line Items] | |||
Lease expenses | $ 2.1 | $ 1.3 | $ 6.4 |
Minimum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease term | 1 year | ||
Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease term | 9 years | ||
Operating lease termination period | 1 year |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) $ in Thousands | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 2,126 |
Leases - Other Information Rela
Leases - Other Information Relating to Leases (Detail) $ in Thousands | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ (1,576) |
Weighted average remaining lease term in years | |
Operating leases | 4 years 7 months 17 days |
Weighted average discount rate | |
Operating leases | 6.20% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments under Non-cancellable Leases (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Leases [Abstract] | ||
Remainder of 2019 | $ 4,767 | |
2020 | 6,354 | |
2021 | 4,748 | |
2022 | 3,831 | |
2023 | 3,801 | |
Thereafter | 17,885 | |
Total future minimum lease payments | 41,386 | |
Less: Imputed interest | (8,860) | |
Operating lease liability - total | 32,526 | |
Current portion of operating lease liability | 7,016 | |
Operating lease liability, less current portion | $ 25,510 | |
Remainder of 2019 | $ 6,343 | |
2020 | 6,354 | |
2021 | 4,748 | |
2022 | 3,831 | |
2023 | 3,801 | |
Thereafter | 17,885 | |
Total future minimum lease payments | $ 42,962 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Dec. 22, 2017 | Mar. 30, 2019 | Mar. 31, 2018 | Dec. 30, 2017 |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 2,285,000 | $ 1,654,000 | ||
Effective tax rates | 25.60% | 21.70% | 18.40% | |
Income tax expense, discrete item | $ 422,000 | $ 613,000 | ||
Effective tax rates, excluding discrete item | 25.70% | 25.20% | ||
Statutory federal income tax rate | 21.00% | 35.00% | ||
Payment of estimated federal income taxes | $ 0 | $ 9,000,000 | ||
Refund of federal income taxes | $ 0 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Dec. 29, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value of assets, level 2 to level 3 transfers | $ 0 | $ 0 | |
Principal outstanding value | 379,062,000 | $ 379,138,000 | |
2016 Credit Agreement [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value of current long-term debt | 63,800,000 | 63,200,000 | |
Principal outstanding value | 64,000,000 | 64,000,000 | |
2018 Senior Notes [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value of current long-term debt | 328,400,000 | 311,900,000 | |
Principal outstanding value | $ 315,000,000 | $ 315,000,000 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) $ in Thousands, lb in Millions | 3 Months Ended | |
Mar. 30, 2019USD ($)ForwardContractlb$ / lb | Dec. 29, 2018USD ($) | |
Derivative [Line Items] | ||
Derivative liabilities, net | $ 2,616 | |
Fair Value of Derivative | 2,600 | |
Aluminum Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities, net | $ 2,600 | |
Number of outstanding forward contracts | ForwardContract | 34 | |
Derivative, amount of hedged item | lb | 28.6 | |
Derivative average price | $ / lb | 0.96 | |
Maturity period of contract, minimum | 1 month | |
Maturity period of contract, maximum | 9 months | |
Accumulated other comprehensive income, net of tax | $ 1,900 | $ 3,100 |
Derivatives - Summary of Fair V
Derivatives - Summary of Fair Value of Hedges (Detail) $ in Thousands | Mar. 30, 2019USD ($) |
Derivative Instruments And Hedging Activities [Line Items] | |
Total derivative instruments Assets | $ 9 |
Total derivative instruments Liabilities | (2,616) |
Aluminum Forward Contracts [Member] | Other Current Assets [Member] | |
Derivative Instruments And Hedging Activities [Line Items] | |
Total derivative instruments Assets | 9 |
Aluminum Forward Contracts [Member] | Accrued Liabilities [Member] | |
Derivative Instruments And Hedging Activities [Line Items] | |
Total derivative instruments Liabilities | $ (2,616) |
Derivatives - Gains (Losses) on
Derivatives - Gains (Losses) on Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives | $ 595 | $ (83) |
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 | 595 | $ (83) |
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income | $ (915) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 385,544 | |
Tax effect | (386) | $ 21 |
Other comprehensive income (loss), net of tax | 1,124 | (62) |
Ending Balance | 395,848 | 184,541 |
Accumulated Other Comprehensive Loss [Member] | ||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (3,065) | |
Other comprehensive income (loss), net of tax | 1,124 | (62) |
Ending Balance | (1,941) | (62) |
Aluminum Forward Contracts [Member] | ||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) | 595 | (83) |
Amounts reclassified from other comprehensive loss | 915 | |
Tax effect | (386) | 21 |
Other comprehensive income (loss), net of tax | 1,124 | (62) |
Aluminum Forward Contracts [Member] | Accumulated Other Comprehensive Loss [Member] | ||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (3,065) | |
Ending Balance | $ (1,941) | $ (62) |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segments - Summary of Financial
Segments - Summary of Financial Data Attributable to Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Net sales: | ||
Total net sales | $ 173,737 | $ 140,253 |
Income from operations: | ||
Total income from operations | 17,256 | 16,116 |
Interest expense, net | 6,714 | 4,043 |
Total income before income taxes | 10,542 | $ 8,994 |
Southeast Segment [Member] | ||
Net sales: | ||
Total net sales | 139,808 | |
Income from operations: | ||
Total income from operations | 14,810 | |
Western Segment [Member] | ||
Net sales: | ||
Total net sales | 33,929 | |
Income from operations: | ||
Total income from operations | $ 2,446 |