Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 04, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 4, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PGTI | |
Entity Registrant Name | PGT Innovations, Inc. | |
Entity Central Index Key | 0001354327 | |
Current Fiscal Year End Date | --01-02 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-37971 | |
Entity Tax Identification Number | 20-0634715 | |
Entity Address, Address Line One | 1070 Technology Drive | |
Entity Address, City or Town | North Venice | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 34275 | |
City Area Code | 941 | |
Local Phone Number | 480-1600 | |
Entity Common Stock, Shares Outstanding | 58,962,776 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 202,783 | $ 198,570 | $ 422,987 | $ 372,307 |
Cost of sales | 128,320 | 125,630 | 267,397 | 238,097 |
Gross profit | 74,463 | 72,940 | 155,590 | 134,210 |
Selling, general and administrative expenses | 53,969 | 44,026 | 108,189 | 88,040 |
Impairment of trade name | 8,000 | 8,000 | ||
Restructuring costs and charges | 3,906 | 3,906 | ||
Income from operations | 8,588 | 28,914 | 35,495 | 46,170 |
Interest expense, net | 6,856 | 6,756 | 14,025 | 13,470 |
Income before income taxes | 1,732 | 22,158 | 21,470 | 32,700 |
Income tax (benefit) expense | (467) | 5,113 | 3,671 | 7,398 |
Net income | $ 2,199 | $ 17,045 | $ 17,799 | $ 25,302 |
Net income per common share: | ||||
Basic | $ 0.04 | $ 0.29 | $ 0.30 | $ 0.43 |
Diluted | $ 0.04 | $ 0.29 | $ 0.30 | $ 0.43 |
Weighted average shares outstanding: | ||||
Basic | 58,943 | 58,394 | 58,806 | 58,264 |
Diluted | 59,140 | 59,291 | 59,147 | 59,248 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 2,199 | $ 17,045 | $ 17,799 | $ 25,302 |
Other comprehensive income (loss) before tax: | ||||
Change in fair value of derivatives | 1,530 | (1,542) | (3,683) | (947) |
Reclassification to earnings | 1,593 | 1,223 | 2,205 | 2,138 |
Other comprehensive income (loss) before tax | 3,123 | (319) | (1,478) | 1,191 |
Income tax expense (benefit) related to other comprehensive income (loss) | 781 | (82) | (370) | 304 |
Other comprehensive income (loss), net of tax | 2,342 | (237) | (1,108) | 887 |
Comprehensive income | $ 4,541 | $ 16,808 | $ 16,691 | $ 26,189 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 04, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 98,353 | $ 97,243 |
Accounts receivable, net | 93,140 | 68,091 |
Inventories | 51,560 | 43,851 |
Contract assets, net | 15,387 | 10,547 |
Prepaid expenses | 9,103 | 3,362 |
Other current assets | 9,550 | 10,516 |
Total current assets | 277,093 | 233,610 |
Property, plant and equipment, net | 132,075 | 128,199 |
Operating lease right-of-use asset, net | 37,335 | 26,390 |
Intangible assets, net | 265,908 | 255,962 |
Goodwill | 327,507 | 277,600 |
Other assets, net | 978 | 972 |
Total assets | 1,040,896 | 922,733 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 89,459 | 51,394 |
Current portion of operating lease liability | 6,114 | 4,703 |
Total current liabilities | 95,573 | 56,097 |
Long-term debt | 421,481 | 368,971 |
Operating lease liability, less current portion | 34,402 | 24,040 |
Deferred income taxes | 25,575 | 27,945 |
Other liabilities | 12,855 | 14,132 |
Total liabilities | 589,886 | 491,185 |
Shareholders' equity: | ||
Preferred stock; par value $.01 per share; 10,000 shares authorized; no shares outstanding | ||
Common stock; par value $.01 per share; 200,000 shares authorized; 62,636 and 61,921 shares issued and 58,963 and 58,505 shares outstanding at July 4, 2020 and December 28, 2019, respectively | 626 | 619 |
Additional paid-in-capital | 417,452 | 414,688 |
Accumulated other comprehensive loss | (1,346) | (238) |
Retained earnings | 52,587 | 34,788 |
Shareholders' equity | 469,319 | 449,857 |
Less: Treasury stock at cost | (18,309) | (18,309) |
Total shareholders' equity | 451,010 | 431,548 |
Total liabilities and shareholders' equity | $ 1,040,896 | $ 922,733 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 04, 2020 | Dec. 28, 2019 |
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 | 62,636,000 | 61,921,000 |
Common stock, shares outstanding | 58,963,000 | 58,505,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 04, 2020 | Jun. 29, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 17,799 | $ 25,302 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 11,451 | 9,143 |
Amortization | 9,424 | 8,030 |
Impairment of trade name | 8,000 | |
Non-cash portion of restructuring costs and charges | 2,442 | |
Provision for allowance for doubtful accounts | 826 | 967 |
Stock-based compensation | 2,918 | 2,276 |
Amortization of deferred financing costs, debt discount and premium | 589 | 861 |
Gains on sales of assets | (155) | (19) |
Change in operating assets and liabilities (net of effects of acquisition): | ||
Accounts receivable | (15,050) | (2,079) |
Inventories | (5,914) | (1,060) |
Contract assets, net, prepaid expenses, other current and other assets | (1,080) | (2,758) |
Accounts payable, accrued and other liabilities | 15,261 | 3,920 |
Net cash provided by operating activities | 46,511 | 44,583 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | 7,315 | 12,963 |
Business acquisition | 90,145 | |
Proceeds from sales of assets | 284 | 19 |
Net cash used in investing activities | (97,176) | (12,944) |
Cash flows from financing activities: | ||
Proceeds from issuance of senior notes | 53,188 | |
Payments of long-term debt | (154) | |
Payments of financing costs | (1,266) | |
Purchases of treasury stock relating to tax withholdings on employee equity awards | (815) | (505) |
Proceeds from exercise of stock options | 549 | 840 |
Proceeds from issuance of common stock under employee stock purchase plan | 119 | 31 |
Net cash provided by financing activities | 51,775 | 212 |
Net increase in cash and cash equivalents | 1,110 | 31,851 |
Cash and cash equivalents at beginning of period | 97,243 | 52,650 |
Cash and cash equivalents at end of period | 98,353 | 84,501 |
Non-cash activity: | ||
Establish right-of-use asset | 14,838 | 31,257 |
Establish operating lease liability | (14,838) | (33,686) |
Property, plant and equipment additions in accounts payable | $ 1,690 | $ 230 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings/(Accumulated Deficit) [Member] | Treasury Stock [Member] |
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 | |||||
Vesting of restricted stock, Shares | 164,226 | |||||
Grants of restricted stock | $ 5 | (5) | ||||
Purchases of treasury stock | (505) | (505) | ||||
Purchases of treasury stock, Shares | (34,240) | |||||
Retirement of treasury stock | (505) | 505 | ||||
Stock-based compensation | 2,276 | 2,276 | ||||
Exercise of stock options | 840 | $ 3 | 837 | |||
Exercise of stock options, Shares | 322,000 | |||||
Common stock issued under ESPP | 31 | 31 | ||||
Common stock issued under ESPP, Shares | 2,143 | |||||
Net income | 25,302 | 25,302 | ||||
Other comprehensive income (Loss) | 887 | 887 | ||||
Ending Balance at Jun. 29, 2019 | 414,375 | $ 615 | 412,295 | (2,178) | 16,402 | (12,759) |
Ending Balance, Shares at Jun. 29, 2019 | 58,535,669 | |||||
Beginning Balance at Mar. 30, 2019 | 395,848 | $ 613 | 410,578 | (1,941) | (643) | (12,759) |
Beginning Balance, Shares at Mar. 30, 2019 | 58,288,871 | |||||
Vesting of restricted stock, Shares | 30,456 | |||||
Stock-based compensation | 1,078 | 1,078 | ||||
Exercise of stock options | 627 | $ 2 | 625 | |||
Exercise of stock options, Shares | 215,260 | |||||
Common stock issued under ESPP | 14 | 14 | ||||
Common stock issued under ESPP, Shares | 1,082 | |||||
Net income | 17,045 | 17,045 | ||||
Other comprehensive income (Loss) | (237) | (237) | ||||
Ending Balance at Jun. 29, 2019 | 414,375 | $ 615 | 412,295 | (2,178) | 16,402 | (12,759) |
Ending Balance, Shares at Jun. 29, 2019 | 58,535,669 | |||||
Beginning Balance at Dec. 28, 2019 | 431,548 | $ 619 | 414,688 | (238) | 34,788 | (18,309) |
Beginning Balance, Shares at Dec. 28, 2019 | 58,504,734 | |||||
Vesting of restricted stock, Shares | 219,977 | |||||
Grants of restricted stock | $ 6 | (6) | ||||
Forfeitures of restricted stock | $ (1) | 1 | ||||
Purchases of treasury stock | (815) | (815) | ||||
Purchases of treasury stock, Shares | (51,479) | |||||
Retirement of treasury stock | $ (1) | (814) | 815 | |||
Stock-based compensation | 2,918 | 2,918 | ||||
Exercise of stock options | $ 549 | $ 3 | 546 | |||
Exercise of stock options, Shares | 274,353 | 274,353 | ||||
Common stock issued under ESPP | $ 119 | 119 | ||||
Common stock issued under ESPP, Shares | 15,191 | |||||
Net income | 17,799 | 17,799 | ||||
Other comprehensive income (Loss) | (1,108) | (1,108) | ||||
Ending Balance at Jul. 04, 2020 | 451,010 | $ 626 | 417,452 | (1,346) | 52,587 | (18,309) |
Ending Balance, Shares at Jul. 04, 2020 | 58,962,776 | |||||
Beginning Balance at Apr. 04, 2020 | 445,081 | $ 626 | 416,064 | (3,688) | 50,388 | (18,309) |
Beginning Balance, Shares at Apr. 04, 2020 | 58,918,623 | |||||
Vesting of restricted stock, Shares | 44,153 | |||||
Stock-based compensation | $ 1,388 | 1,388 | ||||
Exercise of stock options, Shares | 0 | |||||
Net income | $ 2,199 | 2,199 | ||||
Other comprehensive income (Loss) | 2,342 | 2,342 | ||||
Ending Balance at Jul. 04, 2020 | $ 451,010 | $ 626 | $ 417,452 | $ (1,346) | $ 52,587 | $ (18,309) |
Ending Balance, Shares at Jul. 04, 2020 | 58,962,776 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||
Income tax (benefit) expense related to components of other comprehensive income (loss) | $ 781 | $ (82) | $ (370) | $ 304 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jul. 04, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION About PGT Innovations, Inc. 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., WWS Acquisition LLC (formerly known as GEF WW Parent LLC) (“WWS”), and with their acquisition by PGT Innovations, Inc. effective on February 1, 2020, NewSouth Window Solutions LLC, and NewSouth Window Solutions of Orlando LLC (“NewSouth”) (collectively, the “Company”), after elimination of intercompany accounts and transactions. PGT Innovations, Inc. (“PGTI,” “we,” or the “Company”), formerly named PGT, Inc., manufactures and supplies premium windows and doors. Our highly engineered and technically advanced products can withstand some of the toughest weather conditions on earth and unify indoor/outdoor living spaces. We are also the nation’s largest manufacturer of impact-resistant windows and doors. Our family of brands include CGI®, PGT® Custom Windows & Doors, WinDoor®, Western Window Systems®, CGI Commercial®, Eze-Breeze® and NewSouth Window Solutions®. Products are sold through an authorized dealer and distributor network and, with the acquisition of NewSouth, directly to the end-user consumer through store-front locations throughout Florida, and through direct-to-homeowner door-to-door sales. We are also opening NewSouth store-front locations in other states as part of our strategy of expanding NewSouth’s geographic presence, including a new location in Charleston, South Carolina. The majority of our sales are to customers in the state of Florida, which further increased with our acquisition of NewSouth, but we sell products to customers in many states, including the western United States through WWS. We also have sales in the Caribbean, Canada, and in South and Central America. See Note 6 for a discussion of the acquisition of NewSouth. 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”. Subsequent to our Florida facilities consolidation, executed during the second quarter of 2020, which included our exit from our Orlando, Florida manufacturing facility, we have four manufacturing operations in Florida, and one in Arizona. Our manufacturing facilities in Florida include one in North Venice, two in the greater Miami area, and one in Tampa with the acquisition of NewSouth. Pursuant to our Florida facilities consolidation, we relocated the manufacturing operations formerly in Orlando, to our North Venice and Tampa facilities. Our Arizona operations are in Phoenix. Additionally, we have two glass tempering and laminating plants and one insulation glass plant, all located in North Venice. See Note 17 for a discussion of restructuring costs and charges relating to the Florida facility consolidation. All references to PGTI or our Company apply to the consolidated financial statements of PGT Innovations, Inc. unless otherwise noted. COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic, which continues to spread throughout the U.S. and the world. The full impact from the rapidly changing U.S. and global market and economic conditions due to the COVID-19 outbreak is uncertain, but we have seen disruptions to the businesses of certain of our customers and suppliers due to the pandemic, which in turn have impacted, and are likely to continue to impact in the future, our business and consolidated results of operations and financial condition. While we have not incurred significant disruptions to our manufacturing to our supply chain thus far from the COVID-19 outbreak, we are unable to accurately predict the impact COVID-19 and the challenges it has created for the U.S. and global economies, will have on our financial performance and operations going forward due to numerous uncertainties, including the severity of the disease, the duration of the outbreak, actions that may be taken by governmental authorities to attempt to control the pandemic, the impact to our customers’ and suppliers’ businesses and other factors identified in Part II, Item 1A “Risk Factors” in this Form 10-Q. We will continue to evaluate the nature and extent of the impact of the pandemic to our business, consolidated results of operations, and financial condition. Basis of Presentation 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 are not necessarily indicative of the results that may be expected for the remainder of the current year or for any future periods. The Company’s fiscal second quarter in 2020 ended July 4, 2020, and our fiscal second quarter in 2019 ended June 29, 2019, both consisted of 13 weeks. The Company’s fiscal first half in 2020 ended July 4, 2020 consisted of 27 weeks, whereas our fiscal first half in 2019 ended June 29, 2019, consisted of 26 weeks. The condensed consolidated balance sheet as of December 28, 2019, 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 28, 2019, and the unaudited condensed consolidated financial statements as of and for the periods ended July 4, 2020, and June 29, 2019, should be read in conjunction with the more detailed audited consolidated financial statements for the year ended December 28, 2019, included in the Company’s most recent Annual Report on Form 10-K. 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. As described above, the extent to which the COVID-19 pandemic and resulting measures that may be taken by the Company and/or its customers or suppliers and/or by governmental entities will impact the Company's business will depend on future developments, which are highly uncertain and cannot be precisely predicted at this time. Management's estimates and assumptions are highly dependent on estimates of future developments and may change significantly in the future due to unforeseen direct and indirect impacts of the COVID-19 pandemic. 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 sales from our facilities in Florida. The Western reporting segment, also an operating segment, is composed of sales from our facility in Arizona. Beginning in 2020, sales into certain states have been reclassified between segments. As such, segment sales amounts for the three and six months ended June 29, 2019, along with the related income from operations, have been revised to conform to the 2020 presentation. See Note 16 for segment disclosures. Recently Adopted 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 were 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. The Company adopted this guidance in the first quarter of 2020, and it did not have any impact on our 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 were effective for us for our 2020 fiscal year. The adoption of this guidance did not have any impact 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 , and may include anticipated unfavorable impacts of the COVID-19 pandemic on the businesses of our customers, such as dealers and distributors . Uncollectible accounts are written off after repeated attempts to collect from the customer have been unsuccessful. As of July 4 , 2020 , and December 28, 2019 , the allowance for doubtful accounts was $3.1 million and $3.3 million, respectively. Recently Issued Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 is intended to provide temporary optional expedients and exceptions to U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The transition to new reference interest rates will require certain contracts to be modified and ASU 2020-04 is intended to mitigate the effects of this transition. This new guidance was effective upon issuance of this ASU for contract modifications and hedging relationships on a prospective basis. Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles and also clarifies and amends existing guidance. This standard is effective beginning January 1, 2021, with early adoption permitted. We do not expect this standard to have a material impact on our consolidated financial statements. |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 6 Months Ended |
Jul. 04, 2020 | |
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 primarily manufactures fully customized windows and doors 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. 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 on behalf of its customers. Due to the customized build-to-order nature of these products, the Company’s assessment is that the substantial portion 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 a 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. Except for the Western segment’s volume products, discussed in the section titled Disaggregation of Revenue from Contracts with Customers below, revenue recognized at a point in time is immaterial. Disaggregation of Revenue from Contracts with Customers As discussed in Note 1, we have two reportable segments: our Southeast segment and our Western segment. See Note 16 for more information. The following tables provide information about our net sales by reporting segment, product category and market for the three and six months ended July 4, 2020, and June 29, 2019 (dollars in millions): Three Months Ended Six Months Ended Disaggregation of revenue: July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Reporting segment: Southeast $ 172.9 $ 161.5 $ 356.5 $ 303.2 Western 29.9 37.1 66.5 69.1 Total net sales $ 202.8 $ 198.6 $ 423.0 $ 372.3 Product category: Impact-resistant window and door products $ 144.1 $ 137.7 $ 297.7 $ 257.3 Non-impact window and door products 58.7 60.9 125.3 115.0 Total net sales $ 202.8 $ 198.6 $ 423.0 $ 372.3 Market: New construction $ 94.0 $ 97.6 $ 203.1 $ 185.9 Repair and remodel 108.8 101.0 219.9 186.4 Total net sales $ 202.8 $ 198.6 $ 423.0 $ 372.3 The Company’s Western segment includes both custom and volume products. This segment’s volume products are not made-to-order and are of standardized sizes and design specifications. Therefore, the Company’s assessment is that the Western segment’s volume products have alternative uses, and that control of these products passes to the customer at a point in time, which is typically when the product has been delivered to the customer. For the three months ended July 4, 2020, and June 29, 2019, the Western segment’s net sales of its volume products were $11.2 million and $15.0 million, respectively. For the six months ended July 4, 2020, and June 29, 2019, the Western segment’s net sales of its volume products were $26.4 million and $26.8 million, respectively. 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 July 4, 2020, and December 28, 2019, those contract liabilities totaled $17.5 $7.9 $16.9 $7.4 $0.6 $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 28, 2019 were satisfied in the first quarter of 2020, and contract assets at December 28, 2019 were transferred to accounts receivable in the first quarter of 2020. Contract liabilities at July 4, 2020 represents cash received during the three-month period ended July 4, 2020, excluding amounts recognized as revenue during that period. Contract assets at July 4, 2020 represents revenue recognized during the three-month period ended July 4, 2020, 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 together with our standard terms and conditions. Our custom product contracts include distinct goods that are substantially the same and have the same pattern of transfer to the customer over time, and therefore represent a series of distinct goods accounted for as a single performance obligation. For volume products, we allocate the contract’s transaction price to each distinct performance obligation based on the estimated relative standalone selling price of each distinct good. Observable standalone sales are used to determine the standalone selling price. Certain customers are eligible for rebates based on their volume or purchases during an annual period. Rebates are recorded as a reduction to sales and were immaterial in all periods presented. Performance obligations are satisfied over time, generally for our custom products, and as of a point in time for our volume products. Performance obligations are supported by contracts with customers, and we have elected not to disclose our unsatisfied performance obligations as of July 4, 2020 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. On February 1, 2020, we completed the acquisition of NewSouth. NewSouth’s contracts with customers include the manufacturing of goods and installation services related to those goods. Both the manufacturing of goods and installation services represent distinct and separate performance obligations of the Company. As the goods are custom in nature, and NewSouth has the right to full payment upon starting production, the performance obligations are satisfied over time, as opposed to a point in time. The contract transaction price is allocated to each performance obligation based on an estimate of stand-alone selling price. Because installation is performed shortly after completion of production, revenue on the total contract is recognized over a relatively short period of time. 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. Sales taxes collect from customers are recorded on a net basis. 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 | 6 Months Ended |
Jul. 04, 2020 | |
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 July 4, 2020, we recorded warranty expense at a rate of approximately 1.8% 1.6% 1.8% 1.6% The following table summarizes current period charges, adjustments to previous estimates, if necessary, as well as settlements, which represent actual costs incurred during the period for the three and six months ended July 4, 2020, and June 29, 2019. 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 Acquired to Expense Adjustments Settlements Period (in thousands) Three months ended July 4, 2020 $ 7,388 $ — $ 3,613 $ 53 $ (3,787 ) $ 7,267 Three months ended June 29, 2019 $ 5,981 $ — $ 3,175 $ 180 $ (3,356 ) $ 5,980 Six months ended July 4, 2020 $ 6,244 $ 1,592 $ 7,454 $ 33 $ (8,056 ) $ 7,267 Six months ended June 29, 2019 $ 6,149 $ — $ 5,995 $ 208 $ (6,372 ) $ 5,980 |
Inventories
Inventories | 6 Months Ended |
Jul. 04, 2020 | |
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: July 4, December 28, 2020 2019 (in thousands) Raw materials $ 48,998 $ 41,255 Work-in-progress 2,270 2,337 Finished goods 292 259 $ 51,560 $ 43,851 |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jul. 04, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | NOTE 5. STOCK BASED-COMPENSATION Exercises For the three months ended July 4, 2020, there were no option exercises. For the six months ended July 4, 2020, there were 274,353 Issuance On February 14, 2020, we granted 305,030 restricted stock awards to certain executives and non-executive employees of the Company under the 2020 Long-Term Incentive Plan (LTIP). The restrictions on these stock awards lapse over time based solely on continued service with respect to one-half of the granted shares and based on the achievement of a performance metric and the lapse of time, with respect to the other half. Specifically, the quantity of restricted shares issued upon vesting on half of these shares, or 152,515 shares, is fixed, whereas the quantity issued upon vesting on the remaining half, or 152,515 shares, is subject to Company-specific performance criteria. The restricted stock awards have a fair value on date of grant of $16.56 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 With respect to the one-half of the granted restricted shares that must be earned through the satisfaction of performance criteria, 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 2020 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. None of the restricted stock awards granted under last year’s 2019 LTIP that must be earned through the achievement of the performance criteria were earned, because the Company did not achieve at least 80% of the target level of our 2019 LTIP performance metric, resulting in 0% of the target number of performance shares being earned. On May 21, 2020, we granted a total of 42,360 $13.41 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 $1.4 $1.1 $2.9 $2.3 $11.2 Of the $1.4 $1.1 $1.2 $0.8 $2.9 $2.3 $2.6 $1.9 |
Acquisition
Acquisition | 6 Months Ended |
Jul. 04, 2020 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 6. ACQUISITION NEWSOUTH WINDOW SOLUTIONS On February 1, 2020 of million described below The estimated fair value of assets acquired, and liabilities assumed as of the closing date, are as follows: Initial Allocation Adjustments to Allocation Final Allocation Accounts receivable $ 10,294 $ (1,639 ) $ 8,655 Inventories 3,757 (698 ) 3,059 Contract assets, net 4,413 — 4,413 Prepaid expenses and other assets 1,756 — 1,756 Property and equipment 7,423 10 7,433 Operating lease right-of-use asset 10,578 — 10,578 Intangible assets 28,670 (1,300 ) 27,370 Goodwill 46,200 3,707 49,907 Accounts payable (6,621 ) — (6,621 ) Accrued and other liabilities (5,524 ) (80 ) (5,604 ) Operating lease liability (10,578 ) — (10,578 ) Purchase price $ 90,368 $ — $ 90,368 Consideration: Cash $ 90,145 $ — $ 90,145 Due to Sellers $ 223 $ — 223 Total fair value of consideration $ 90,368 $ — $ 90,368 The fair value of certain working capital related items, including NewSouth’s retail accounts receivable, prepaid expenses, and accounts payable and accrued liabilities, approximated their book values at the date of the NewSouth Acquisition. Subsequent to our initial allocation, we adjusted the fair value of certain acquired commercial receivable accounts based on a further post-acquisition assessment of their collectability. The fair value of inventory was estimated by major category, at net realizable value. The substantial majority of inventories at the acquisition da te 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 , with the assistance of a third-party valuations firm . We incurred acquisition costs totaling $2.4 $0.4 $0.9 The remaining consideration, after identified intangible assets and the net assets and liabilities recorded at fair value, has been determined to be $49.9 $1.6 $1.3 $0.7 $0.1 $3.7 The purchase agreement relating to the NewSouth Acquisition (“PA”) requires certain post-closing adjustments, under which we determined that we owe sellers an additional $0.2 $0.2 Pro Forma Financial Information The following unaudited pro forma financial information assumes the acquisition had occurred at the beginning of the earliest period presented that does not include NewSouth’s actual results for the entire period. Pro forma results have been prepared by adjusting our historical results to include the results of NewSouth adjusted for the following: amortization expense related to the intangible assets arising from the acquisition and interest expense to reflect the Additional Senior Notes. The unaudited pro forma results below do not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of the earliest periods presented, nor does it indicate the results of operations in future periods. The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Three Months Ended Six Months Ended June 29, July 4, June 29, 2019 2020 2019 (unaudited) Net sales $ 220,965 430,739 413,563 Net income $ 18,677 18,029 26,562 Net income per common share: Basic $ 0.32 $ 0.31 $ 0.46 Diluted $ 0.32 $ 0.30 $ 0.45 V aluation of identified intangible assets The valuation of the identifiable intangible assets acquired in the NewSouth Acquisition and our estimate of their respective useful lives are as follows: Initial Initial Adjustment to Current Useful Life Valuation Valuation Valuation (in years) (in thousands) Trade name $ 23,500 $ (1,300 ) $ 22,200 15 Non-compete agreements 1,670 — 1,670 5 Developed technology 2,600 — 2,600 6 Customer-related intangible 900 — 900 <1 Other intangible assets, net $ 28,670 $ (1,300 ) $ 27,370 |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jul. 04, 2020 | |
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 628 4 586 254 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 : Three Months Ended Six Months Ended July 4, June 29, July 4, June 29, 2020 2019 2020 2019 (in thousands, except per share amounts) Net income $ 2,199 $ 17,045 $ 17,799 $ 25,302 Weighted-average common shares - Basic 58,943 58,394 58,806 58,264 Add: Dilutive effect of stock compensation plans 197 897 341 984 Weighted-average common shares - Diluted 59,140 59,291 59,147 59,248 Net income per common share: Basic $ 0.04 $ 0.29 $ 0.30 $ 0.43 Diluted $ 0.04 $ 0.29 $ 0.30 $ 0.43 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jul. 04, 2020 | |
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 July 4, December 28, Useful Life 2020 2019 (in years) (in thousands) Goodwill $ 327,507 $ 277,600 indefinite Other intangible assets: Trade names (indefinite-lived) $ 140,841 $ 148,841 indefinite Customer relationships and customer-related assets 201,547 200,647 <1-10 Trade name (amortizable) 22,200 - 15 Developed technology 5,600 3,000 6-10 Non-compete agreement 3,338 1,668 2-5 Software license 590 590 2 Less: Accumulated amortization (108,208 ) (98,784 ) Subtotal 125,067 107,121 Other intangible assets, net $ 265,908 $ 255,962 Goodwill at December 28, 2019 $ 277,600 Increase related to the acquisition of NewSouth 49,907 Goodwill at July 4, 2020 $ 327,507 Trade names at December 28, 2019 $ 148,841 Impairment of WWS trade name (8,000 ) Tradenames at July 4, 2020 $ 140,841 Estimated amortization of our amortizable intangible assets for future years is as follows: (in thousands) Total Remainder of 2020 $ 9,429 2021 17,641 2022 16,782 2023 14,621 2024 14,575 Thereafter 52,019 Total $ 125,067 Amortization expense relating to amortizable intangible assets for the three months ended July 4, 2020, and June 29, 2019, was $4.7 $4.0 $9.4 $8.0 We perform our annual goodwill and indefinite-lived intangible asset impairment testing on the first day of our fiscal fourth quarter of each year, and at interim periods if needed based on occurrence of triggering events. Given the general deterioration in economic and market conditions surrounding the COVID-19 pandemic, and the narrow excess of fair value over carrying value of its WinDoor and WWS trade names as described in our 2019 Form 10-K, the Company determined it should complete interim quantitative impairment tests of its WinDoor and WWS trade names as of as of the end of the Company’s first quarter of 2020. These interim impairment tests did not indicate that impairments of those assets existed at that time. Following an increase in net sales of 14.3% in the first quarter of 2020, compared to the first quarter of last year, n et s ales at our WWS reporting unit decreased 19.3% in the second quarter of 2020 , compared to last year’s second quarter . As a result of this decrease in net sales , as well as continued deterioration in macro- economic conditions in our core western m arket s relating to the COVID-19 pandemic, we determined to complete a second interim impairment test of our WWS trade name as of July 4 , 2020. For this second interim impairment test, we further decreased our modeling assumptions for net sales of our WWS reporting unit for our 2020 fiscal year based on a reassessment of our key assumptions in our modeling, including an updated assessment of macro industry growth in our WWS reporting unit’s key markets. We also decreased our 2021 growth rate assumption as we expect the challenging macro-economic conditions in our core western markets to continue during 2021 . Based on our revised modeling, we concluded that the fair value of our WWS trade name was less than its carrying value, which resulted in an impairment of our WWS trade name of $8.0 million. For our WWS reporting unit, our most recent annual impairment test of goodwill was a quantitative assessment. Based on this quantitative assessment, we concluded that it was not more likely than not that the carrying value of our WWS reporting unit exceeded its fair value, as the estimated fair value of our WWS reporting unit substantially exceeded the carrying value at that time. Because of the decrease in sales at our WWS reporting unit and continued deterioration in macro-economic conditions in our core western markets relating to the COVID-19 pandemic as described above, we determined to update the projections in our most recent quantitative assessment of WWS reporting unit to goodwill using the sales projections in our above WWS trade name assessment. Based on this update of the most recent quantitative assessment, the amount by which the estimated fair value of our WWS reporting unit exceeds its carrying value has decreased, but such fair value was still estimated to be approximately 10% |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jul. 04, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 9. LONG-TERM DEBT July 4, December 28, 2020 2019 (in thousands) 2018 Senior Notes due 2026 $ 365,000 $ 315,000 Term loan payable under the 2016 Credit Agreement 64,000 64,000 Long-term debt 429,000 379,000 Fees, costs, discount and premium (7,519 ) (10,029 ) Long-term debt, net $ 421,481 $ 368,971 2018 Senior Notes due 2026 On August 10, 2018, we completed the issuance of $315.0 On January 24, 2020, we completed the add-on issuance of $50.0 $3.2 $90.4 The 2018 Senior Notes due 2026 mature on August 10, 2026 . Interest on the 2018 Senior Notes due 2026 is payable semi-annually, in arrears, beginning on February 16, 2019, with interest accruing at a rate of 6.75 % per annum from August 10, 2018. We incurred financing costs relating to bank fees and professional services costs relating to the offering and issuance of the 2018 Senior Notes due 2026 totaling $10.4 million, and the Additional Senior Notes totaling $1.3 million, partially offset by the $3.2 million premium on the Additional Senior Notes, which are being amortized under the effective interest method. See “Deferred Financing Costs” below. As of July 4 , 2020 , the face value of debt outstanding under the 2018 Senior Notes due 2026 was $365.0 million, and accrued interest totaled $10.4 million. The indenture for the 2018 Senior Notes due 2026 gives us the option to 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 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. On October 31, 2019, we entered into an amendment of our 2016 Credit Agreement due 2022 (“Third Amendment”). The Third Amendment provides for, among other things, (i) a new three-year five-year Pursuant to the Third Amendment, interest on all loans under the 2016 Credit Agreement is payable either quarterly or at the expiration of any LIBOR interest period applicable thereto. The Third Amendment decreases the applicable interest rate margins for the Initial Term Loan A from (i) 2.50% to a spread of 1.00% to 1.75% based on our first lien net leverage ratio, in the case of the Base Rate Loans (with a floor of 100 basis points), and (ii) 3.50% to a spread ranging from 2.00% to 2.75% based on our first lien leverage ratio, in the case of the Eurodollar Loans (with a floor of zero basis points). Also, in connection with the Third Amendment, we will pay quarterly fees on the unused portion of the revolving credit facility equal to a percentage spread (ranging from 0.25% to 0.35%) based on our first lien net leverage ratio. The Third Amendment also modifies the springing financial covenant under the 2016 Credit Agreement to provide that such financial covenant will not be tested until the Initial Term A Loan is paid in full. As of July 4, 2020, there were $4.0 mill $76.0 Fees and costs relating to the Third Amendment were $0.9 $1.5 $64.0 $23 The weighted average all-in interest rate for borrowings under the term-loan portion of the 2016 Credit Agreement due 2022 was 2.21% 3.77% Pursuant to the Third Amendment, the 2016 Credit Agreement due 2022 contains a springing financial covenant that would apply if we draw in excess of thirty-five percent (35%) 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 103% 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 4.00:1.00 (4.50:1.00 during a significant acquisition period as defined). We have not been required to test our first lien net leverage ratio because we have not exceeded 35% 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. Deferred Financing Costs The activity relating to third-party fees and costs, lender fees and discount for the six months ended July 4, 2020, 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 $ 10,029 Add: Deferred financing costs from the issuance of the add-on 2018 Senior Notes due 2026 1,266 Less: Premium on the issuance of the add-on 2018 Senior Notes due 2026 (3,187 ) Less: Amortization expense relating to 2016 Credit Agreement (142 ) Less: Amortization expense relating to 2018 Senior Notes (447 ) At end of period $ 7,519 Estimated amortization expense relating to third-party fees and costs, lender fees and discount for the years indicated as of July 4, 2020, is as follows: (in thousands) Total Remainder of 2020 $ 569 2021 1,195 2022 1,245 2023 1,183 2024 1,250 Thereafter 2,077 Total $ 7,519 As a result of prepayments of the 2016 Credit Agreement due 2022 totaling $204.0 million since its inception in February 2016 through July 4, 2020 , we have no future scheduled repayments until the maturity of the facility on October 31, 2022 . The contractual future maturities of long-term debt outstanding, including the remaining balance of the financing arrangement described as other debt, as of July 4 , 2020 , are as follows (at face value): (in thousands) Remainder of 2020 $ — 2021 — 2022 64,000 2023 — 2024 — Thereafter 365,000 Total $ 429,000 |
Leases
Leases | 6 Months Ended |
Jul. 04, 2020 | |
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. We did not recognize right-of-use assets or lease liabilities for certain short-term leases that are month-to-month leases. The lease expense relating to these leases is not significant. The components of lease expense for the three and six months ended July 4, 2020, and June 29, 2019, are as follows (in thousands): Three Months Ended Six Months Ended July 4, June 29, July 4, June 29, 2020 2019 2020 2019 Operating lease cost $ 2,212 $ 1,408 $ 4,221 $ 2,960 Variable lease cost 905 758 1,786 1,332 Total lease cost $ 3,117 $ 2,166 $ 6,007 $ 4,292 Other information relating to leases for the three and six months ended July 4, 2020, and June 29, 2019, are as follows (in thousands, except years and percentages): Three Months Ended Six Months Ended July 4, June 29, July 4, June 29, 2020 2019 2020 2019 Supplemental cash flows information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows relating to operating leases $ (2,212 ) $ (1,384 ) $ (4,221 ) $ (2,960 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 233 $ — $ 14,838 $ — Weighted average remaining lease term in years Operating leases 7.10 4.38 7.10 4.38 Weighted average discount rate Operating leases 5.9 % 6.2 % 5.9 % 6.2 % Future maturities under operating leases w ere as follows at July 4 , 2020 , and December 28, 2019 (in thousands): July 4, December 28, 2020 2019 Remainder of 2020 $ 4,449 $ 6,319 2021 7,356 4,771 2022 6,497 3,878 2023 6,260 3,741 2024 6,211 3,771 Thereafter 18,933 13,691 Total future minimum lease payments 49,706 36,171 Less: Imputed interest (9,190 ) (7,428 ) Operating lease liability - total $ 40,516 $ 28,743 Reported as of July 4, 2020 and December 28, 2019: Current portion of operating lease liability $ 6,114 $ 4,703 Operating lease liability, less current portion 34,402 24,040 Operating lease liability - total $ 40,516 $ 28,743 As of July 4, 2020, we had no additional operating or finance leases that have not yet commenced. Our operating leases expire at various times through 2028. Lease expense prior to the adoption of ASU 2016-02 would have been $3.1 $2.2 $3.1 $1.6 $2.2 $1.0 $6.0 $4.3 $6.0 $3.1 $4.3 $2.0 $8.9 The $14.8 $10.6 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 04, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11. COMMITMENTS AND CONTINGENCIES 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 |
Apr. 04, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12. INCOME TAXES Our income tax benefit was $0.5 million for the three months ended July 4, 2020, compared with income tax expense of $5.1 million for the three months ended June 29, 2019. Our effective tax rate for the three months ended July 4, 2020, was a benefit rate of 27.0%, and was an expense rate of 23.1% for the three months ended June 29, 2019. Our income tax expense was $3.7 $7.4 17.1% 22.6% The income tax benefit in the three months, and income tax expense in the six months ended July 4, 2020, includes several discrete items of income tax benefits recognized during the second quarter, including federal and state research and development tax credit true-ups to actual from the assumptions we made when preparing our 2019 tax provision, which totaled $319 $553 $573 $737 $1.0 21.7% 25.7% 24.6% 25.7% Our estimated annual effective tax rate, excluding the discrete items discussed above, approximates our current combined statutory federal and state rate of 25.0%. In response to the COVID-19 outbreak, in March 2020, the U.S. Congress passed the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) legislation aimed at providing relief for individuals and businesses that have been negatively impacted by the pandemic. At this time, the CARES Act has not had, and we do not expect it to have a material impact to our consolidated financial statements. However, during the three months ended July 4, 2020, we made no payments of estimated federal and state income taxes as the deadlines for such payments to the United States government, and the majority of states in which we have nexus, which have followed the payment deadline extension of this new Federal legislation, have been deferred until July 15, 2020 as a result of the CARES Act. |
Fair Value
Fair Value | 6 Months Ended |
Jul. 04, 2020 | |
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 or six months ended July 4, 2020, or June 29, 2019, 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 and cash equivalents, accounts and notes receivable, and accounts payable and accrued liabilities, whose carrying amounts approximate their fair values due to their short-term nature. Our financial instruments also include 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 approximates its carrying value due to its variable-rate nature, and was approximately $64.0 million as of July 4, 2020, compared to a principal outstanding value of $64.0 million, and fair value of $64.0 million as of December 28, 2019, compared to a principal outstanding value of $64.0 million. The fair value of the 2018 Senior Notes due 2026 is also based on debt with similar terms and characteristics and was approximately $376.0 million as of July 4, 2020, compared to a principal outstanding value of $365.0 million, which includes the Additional Senior Notes, and the fair value was approximately $338.6 million as of December 28, 2019, 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, which we consider to be a Level 2 input. Items Measured at Fair Value on a Recurring Basis The following are measured in the condensed consolidated financial statements at fair value on a recurring basis and are categorized in the table below based upon the lowest level of significant input to the valuation (in thousands): Fair Value Measurements Assets (Liabilities) Quoted Significant Prices in Other Significant Active Observable Unobservable July 4, Markets Inputs Inputs 2020 (Level 1) (Level 2) (Level 3) Description Aluminum forward contracts $ (1,803 ) $ — $ (1,803 ) $ — MTP contracts 8 — 8 — $ (1,795 ) $ — $ (1,795 ) $ — Fair Value Measurements Assets (Liabilities) Quoted Significant Prices in Other Significant Active Observable Unobservable December 28, Markets Inputs Inputs 2019 (Level 1) (Level 2) (Level 3) Description Aluminum forward contracts $ (317 ) $ — $ (317 ) $ — $ (317 ) $ — $ (317 ) $ — See Note 14 for a description of the methods and assumptions used in the determination of the fair values of our aluminum forward and Midwest Transaction Premium (“MTP”) contracts, as well as the basis for classifying these assets and liabilities as Level 2. |
Derivatives
Derivatives | 6 Months Ended |
Jul. 04, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 14. DERIVATIVES Aluminum Contracts and Midwest Transaction Premium We enter into aluminum forward contracts to hedge the fluctuations in the purchase price of aluminum extrusion we use in production. Beginning late in the first quarter of 2020, we began entering into forward contracts to hedge the fluctuations in the price of the delivery component of our aluminum extrusion purchases, known as the Midwest Transaction Premium. 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 and the related MTP. We record our aluminium hedge contracts at fair value, based on trading values for aluminum forward contracts. Aluminum forward contracts identical to those held by us trade on the London Metal Exchange (“LME”). The LME provides a transparent forum and is the world’s largest center for the trading of futures contracts for non-ferrous metals. The prices are used by the metals industry worldwide as the basis for contracts for the movement of physical material throughout the production cycle. Based on this high degree of volume and liquidity in the LME, we believe the valuation price at any measurement date for contracts with identical terms as to prompt date, trade date and trade price as those we hold at any time represents a contract’s exit price to be used for purposes of determining fair value. We record our MTP hedge contracts at fair value based on the Platts MW US Transaction price per pound assessment, which has been a benchmark for decades in the North American aluminium industry. Platts surveys the North American market daily to capture trades, bids and offers on a delivered Midwest basis. Data is normalized to reflect the typical price per pound between the largest number of market participants, for delivery within 7 to 30 days from date of publication, net-30-day payment terms, for typical order quantities, chemistries and freight allowances. The survey is extensive and encompasses both domestic and offshore producers, traders and brokers that are varied in scope. Based on the extensive nature of this pricing mechanism, we believe the Platts MW US Transaction price at any time represents a contract’s exit price to be used for purposes of determining fair value. 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 July 4, 2020, the fair value of our aluminum forward contracts was in a net liability 27 33.3 $0.80 one eighteen $8 8 22.9 $0.11 one eighteen 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 July 4, 2020, that we expect will be reclassified to earnings within the next twelve months, is approximately $1.8 million. The fair values of our aluminum hedges and MTP contracts are classified in the accompanying condensed consolidated balance sheets at July 4, 2020, and December 28, 2019, as follows (in thousands): Derivative Assets Derivative Liabilities July 4, 2020 July 4, 2020 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 $ 4 Accrued liabilities $ (1,754 ) MTP contracts Other current assets 73 Accrued liabilities (125 ) Aluminum forward contracts Other assets 18 Other liabilities (71 ) MTP contracts Other assets 68 Other liabilities (8 ) Total derivative instruments Total derivative assets $ 163 Total derivative liabilities $ (1,958 ) Derivative Assets Derivative Liabilities December 28, 2019 December 28, 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 $ 193 Accrued liabilities $ (510 ) Aluminum forward contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 193 Total derivative liabilities $ (510 ) The ending accumulated balance for the aluminum forward and MTP contracts included in accumulated other comprehensive losses, net of tax, was $1.3 $0.2 The following represents the gains (losses) on derivative financial instruments, and their classifications within the accompanying condensed consolidated financial statements, for the three months ended July 4, 2020, and June 29, 2019 (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 July 4, June 29, July 4, June 29, 2020 2019 2020 2019 Aluminum contracts $ 1,556 $ (1,542 ) Cost of sales $ (1,506 ) $ (1,223 ) MTP contracts $ (26 ) $ — Cost of sales $ (87 ) $ — 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 Six Months Ended Six Months Ended July 4, June 29, July 4, June 29, 2020 2019 2020 2019 Aluminum contracts $ (3,604 ) $ (947 ) Cost of sales $ (2,118 ) $ (2,138 ) MTP contracts $ (79 ) $ — Cost of sales $ (87 ) $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jul. 04, 2020 | |
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 July 4, 2020 and June 29, 2019 (in thousands): Aluminum Three months ended July 4, 2020 Forward MTP (in thousands) Contracts Contracts Total Balance at April 4, 2020 $ (3,648 ) $ (40 ) $ (3,688 ) Change in fair value of derivatives 1,556 (26 ) 1,530 Amounts reclassified from other comprehensive loss 1,506 87 1,593 Tax effect (766 ) (15 ) (781 ) Net current-period other comprehensive income 2,296 46 2,342 Balance at July 4, 2020 $ (1,352 ) $ 6 $ (1,346 ) Aluminum Six months ended July 4, 2020 Forward MTP (in thousands) Contracts Contracts Total Balance at December 28, 2019 $ (238 ) $ — $ (238 ) Change in fair value of derivatives (3,604 ) (79 ) (3,683 ) Amounts reclassified from other comprehensive loss 2,118 87 2,205 Tax effect 372 (2 ) 370 Net current-period other comprehensive income (1,114 ) 6 (1,108 ) Balance at July 4, 2020 $ (1,352 ) $ 6 $ (1,346 ) Aluminum Three months ended June 29, 2019 Forward (in thousands) Contracts Total Balance at March 30, 2019 $ (1,941 ) $ (1,941 ) Change in fair value of derivatives (1,542 ) (1,542 ) Amounts reclassified from other comprehensive loss 1,223 1,223 Tax effect 82 82 Net current-period other comprehensive loss (237 ) (237 ) Balance at June 29, 2019 $ (2,178 ) $ (2,178 ) Aluminum Six months ended June 29, 2019 Forward (in thousands) Contracts Total Balance at December 29, 2018 $ (3,065 ) $ (3,065 ) Change in fair value of derivatives (947 ) (947 ) Amounts reclassified from other comprehensive loss 2,138 2,138 Tax effect (304 ) (304 ) Net current-period other comprehensive loss 887 887 Balance at June 29, 2019 $ (2,178 ) $ (2,178 ) |
Segments
Segments | 6 Months Ended |
Jul. 04, 2020 | |
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 sales from our facilities in Florida. The Western reporting segment, also an operating segment, is composed of sales from our facility in Arizona. Beginning in 2020, sales into certain states have been reclassified between segments. As such, segment sales amounts for the three and six months ended June 29, 2019, along with the related income from operations, have been revised to conform to the 2020 presentation. 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 and six months ended July 4, 2020, and June 29, 2019. Results of the Western segment are composed of the results of WWS (in thousands): Three Months Ended Six Months Ended July 4, June 29, July 4, June 29, 2020 2019 2020 2019 Net sales: Southeast segment $ 172,859 $ 161,483 $ 356,500 $ 303,159 Western segment 29,924 37,087 66,487 69,148 Total net sales $ 202,783 $ 198,570 $ 422,987 $ 372,307 Income (loss) from operations: Southeast segment $ 18,717 $ 25,218 $ 44,538 $ 40,482 Western segment 1,777 3,696 2,863 5,688 Impairment of trade name (1) (8,000 ) — (8,000 ) — Restructuring costs and charges (2) (3,906 ) — (3,906 ) — Total income from operations 8,588 28,914 35,495 46,170 Interest expense, net 6,856 6,756 14,025 13,470 Total income before income taxes $ 1,732 $ 22,158 $ 21,470 $ 32,700 (1) For the three and six months ended July 4, 2020, the impairment of $8.0 million relates to WWS trade name. (2) For the three and six months ended July 4, 2020, the restructuring costs and charges of $3.9 million relates to Southeast segment. |
Restructuring Costs and Charges
Restructuring Costs and Charges | 6 Months Ended |
Jul. 04, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs and Charges | NOTE 17. RESTRUCTURING COSTS AND CHARGES As we announced on April 20, 2020, the Company’s management approved a plan to consolidate its manufacturing operations in Florida, which included exiting our manufacturing facility in Orlando, Florida, where our WinDoor and Eze-Breeze products were assembled, and relocate the manufacturing of those products to the our Venice and Tampa, Florida plants, respectively. June 2020 The following represents activities of restructuring costs and charges for the three months ended July 4, 2020: Beginning Charged Write-offs of End of Restructuring costs and charges of Period to Expense Assets Settled in Cash Period (in thousands) Property, plant and equipment costs and charges $ — $ 963 $ (540 ) $ (423 ) $ — Impairment of operating lease right-of-use asset — 639 (639 ) — — Inventory charges for product rationalization — 1,164 (1,263 ) 99 — Personnel-related costs — 1,140 — (1,140 ) — Total restructuring costs and charges $ — $ 3,906 $ (2,442 ) $ (1,464 ) $ — |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jul. 04, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation 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 are not necessarily indicative of the results that may be expected for the remainder of the current year or for any future periods. The Company’s fiscal second quarter in 2020 ended July 4, 2020, and our fiscal second quarter in 2019 ended June 29, 2019, both consisted of 13 weeks. The Company’s fiscal first half in 2020 ended July 4, 2020 consisted of 27 weeks, whereas our fiscal first half in 2019 ended June 29, 2019, consisted of 26 weeks. The condensed consolidated balance sheet as of December 28, 2019, 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 28, 2019, and the unaudited condensed consolidated financial statements as of and for the periods ended July 4, 2020, and June 29, 2019, should be read in conjunction with the more detailed audited consolidated financial statements for the year ended December 28, 2019, included in the Company’s most recent Annual Report on Form 10-K. 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. As described above, the extent to which the COVID-19 pandemic and resulting measures that may be taken by the Company and/or its customers or suppliers and/or by governmental entities will impact the Company's business will depend on future developments, which are highly uncertain and cannot be precisely predicted at this time. Management's estimates and assumptions are highly dependent on estimates of future developments and may change significantly in the future due to unforeseen direct and indirect impacts of the COVID-19 pandemic. 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 sales from our facilities in Florida. The Western reporting segment, also an operating segment, is composed of sales from our facility in Arizona. Beginning in 2020, sales into certain states have been reclassified between segments. As such, segment sales amounts for the three and six months ended June 29, 2019, along with the related income from operations, have been revised to conform to the 2020 presentation. See Note 16 for segment disclosures. |
Recently Adopted Accounting Pronouncements | Recently Adopted 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 were 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. The Company adopted this guidance in the first quarter of 2020, and it did not have any impact on our 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 were effective for us for our 2020 fiscal year. The adoption of this guidance did not have any impact 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 , and may include anticipated unfavorable impacts of the COVID-19 pandemic on the businesses of our customers, such as dealers and distributors . Uncollectible accounts are written off after repeated attempts to collect from the customer have been unsuccessful. As of July 4 , 2020 , and December 28, 2019 , the allowance for doubtful accounts was $3.1 million and $3.3 million, respectively. Recently Issued Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 is intended to provide temporary optional expedients and exceptions to U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The transition to new reference interest rates will require certain contracts to be modified and ASU 2020-04 is intended to mitigate the effects of this transition. This new guidance was effective upon issuance of this ASU for contract modifications and hedging relationships on a prospective basis. Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles and also clarifies and amends existing guidance. This standard is effective beginning January 1, 2021, with early adoption permitted. We do not expect this standard to have a material impact on our consolidated financial statements. |
Revenue Recognition Accounting Policy | Revenue Recognition Accounting Policy The Company primarily manufactures fully customized windows and doors 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. 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 on behalf of its customers. Due to the customized build-to-order nature of these products, the Company’s assessment is that the substantial portion 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 a 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. Except for the Western segment’s volume products, discussed in the section titled Disaggregation of Revenue from Contracts with Customers below, 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. Sales taxes collect from customers are recorded on a net basis. 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) | 6 Months Ended |
Jul. 04, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Net Sales by Reporting Segment, Product Category and Market | The following tables provide information about our net sales by reporting segment, product category and market for the three and six months ended July 4, 2020, and June 29, 2019 (dollars in millions): Three Months Ended Six Months Ended Disaggregation of revenue: July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Reporting segment: Southeast $ 172.9 $ 161.5 $ 356.5 $ 303.2 Western 29.9 37.1 66.5 69.1 Total net sales $ 202.8 $ 198.6 $ 423.0 $ 372.3 Product category: Impact-resistant window and door products $ 144.1 $ 137.7 $ 297.7 $ 257.3 Non-impact window and door products 58.7 60.9 125.3 115.0 Total net sales $ 202.8 $ 198.6 $ 423.0 $ 372.3 Market: New construction $ 94.0 $ 97.6 $ 203.1 $ 185.9 Repair and remodel 108.8 101.0 219.9 186.4 Total net sales $ 202.8 $ 198.6 $ 423.0 $ 372.3 |
Warranty (Tables)
Warranty (Tables) | 6 Months Ended |
Jul. 04, 2020 | |
Guarantees And Product Warranties [Abstract] | |
Summary of Current Period Charges, Adjustments to Previous Estimates, Settlements representing Actual Costs Incurred with regard to Accrued Warranty | The following table summarizes current period charges, adjustments to previous estimates, if necessary, as well as settlements, which represent actual costs incurred during the period for the three and six months ended July 4, 2020, and June 29, 2019. 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 Acquired to Expense Adjustments Settlements Period (in thousands) Three months ended July 4, 2020 $ 7,388 $ — $ 3,613 $ 53 $ (3,787 ) $ 7,267 Three months ended June 29, 2019 $ 5,981 $ — $ 3,175 $ 180 $ (3,356 ) $ 5,980 Six months ended July 4, 2020 $ 6,244 $ 1,592 $ 7,454 $ 33 $ (8,056 ) $ 7,267 Six months ended June 29, 2019 $ 6,149 $ — $ 5,995 $ 208 $ (6,372 ) $ 5,980 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 04, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: July 4, December 28, 2020 2019 (in thousands) Raw materials $ 48,998 $ 41,255 Work-in-progress 2,270 2,337 Finished goods 292 259 $ 51,560 $ 43,851 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jul. 04, 2020 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Assumed | The estimated fair value of assets acquired, and liabilities assumed as of the closing date, are as follows: Initial Allocation Adjustments to Allocation Final Allocation Accounts receivable $ 10,294 $ (1,639 ) $ 8,655 Inventories 3,757 (698 ) 3,059 Contract assets, net 4,413 — 4,413 Prepaid expenses and other assets 1,756 — 1,756 Property and equipment 7,423 10 7,433 Operating lease right-of-use asset 10,578 — 10,578 Intangible assets 28,670 (1,300 ) 27,370 Goodwill 46,200 3,707 49,907 Accounts payable (6,621 ) — (6,621 ) Accrued and other liabilities (5,524 ) (80 ) (5,604 ) Operating lease liability (10,578 ) — (10,578 ) Purchase price $ 90,368 $ — $ 90,368 Consideration: Cash $ 90,145 $ — $ 90,145 Due to Sellers $ 223 $ — 223 Total fair value of consideration $ 90,368 $ — $ 90,368 |
Summary of Unaudited Proforma Results | The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Three Months Ended Six Months Ended June 29, July 4, June 29, 2019 2020 2019 (unaudited) Net sales $ 220,965 430,739 413,563 Net income $ 18,677 18,029 26,562 Net income per common share: Basic $ 0.32 $ 0.31 $ 0.46 Diluted $ 0.32 $ 0.30 $ 0.45 |
Schedule for Valuation of Identifiable Intangible Assets Acquired and Estimate of Useful Lives | The valuation of the identifiable intangible assets acquired in the NewSouth Acquisition and our estimate of their respective useful lives are as follows: Initial Initial Adjustment to Current Useful Life Valuation Valuation Valuation (in years) (in thousands) Trade name $ 23,500 $ (1,300 ) $ 22,200 15 Non-compete agreements 1,670 — 1,670 5 Developed technology 2,600 — 2,600 6 Customer-related intangible 900 — 900 <1 Other intangible assets, net $ 28,670 $ (1,300 ) $ 27,370 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jul. 04, 2020 | |
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 : Three Months Ended Six Months Ended July 4, June 29, July 4, June 29, 2020 2019 2020 2019 (in thousands, except per share amounts) Net income $ 2,199 $ 17,045 $ 17,799 $ 25,302 Weighted-average common shares - Basic 58,943 58,394 58,806 58,264 Add: Dilutive effect of stock compensation plans 197 897 341 984 Weighted-average common shares - Diluted 59,140 59,291 59,147 59,248 Net income per common share: Basic $ 0.04 $ 0.29 $ 0.30 $ 0.43 Diluted $ 0.04 $ 0.29 $ 0.30 $ 0.43 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jul. 04, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets Net | Goodwill and intangible assets are as follows: Initial July 4, December 28, Useful Life 2020 2019 (in years) (in thousands) Goodwill $ 327,507 $ 277,600 indefinite Other intangible assets: Trade names (indefinite-lived) $ 140,841 $ 148,841 indefinite Customer relationships and customer-related assets 201,547 200,647 <1-10 Trade name (amortizable) 22,200 - 15 Developed technology 5,600 3,000 6-10 Non-compete agreement 3,338 1,668 2-5 Software license 590 590 2 Less: Accumulated amortization (108,208 ) (98,784 ) Subtotal 125,067 107,121 Other intangible assets, net $ 265,908 $ 255,962 Goodwill at December 28, 2019 $ 277,600 Increase related to the acquisition of NewSouth 49,907 Goodwill at July 4, 2020 $ 327,507 Trade names at December 28, 2019 $ 148,841 Impairment of WWS trade name (8,000 ) Tradenames at July 4, 2020 $ 140,841 |
Estimated Amortization for Future Fiscal Year | Estimated amortization of our amortizable intangible assets for future years is as follows: (in thousands) Total Remainder of 2020 $ 9,429 2021 17,641 2022 16,782 2023 14,621 2024 14,575 Thereafter 52,019 Total $ 125,067 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jul. 04, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | July 4, December 28, 2020 2019 (in thousands) 2018 Senior Notes due 2026 $ 365,000 $ 315,000 Term loan payable under the 2016 Credit Agreement 64,000 64,000 Long-term debt 429,000 379,000 Fees, costs, discount and premium (7,519 ) (10,029 ) Long-term debt, net $ 421,481 $ 368,971 |
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 six months ended July 4, 2020, 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 $ 10,029 Add: Deferred financing costs from the issuance of the add-on 2018 Senior Notes due 2026 1,266 Less: Premium on the issuance of the add-on 2018 Senior Notes due 2026 (3,187 ) Less: Amortization expense relating to 2016 Credit Agreement (142 ) Less: Amortization expense relating to 2018 Senior Notes (447 ) At end of period $ 7,519 |
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 July 4, 2020, is as follows: (in thousands) Total Remainder of 2020 $ 569 2021 1,195 2022 1,245 2023 1,183 2024 1,250 Thereafter 2,077 Total $ 7,519 |
Contractual Future Maturities of Long-Term Debt Outstanding, Including Remaining Balance of Financing Arrangement Described as Other Debt | As a result of prepayments of the 2016 Credit Agreement due 2022 totaling $204.0 million since its inception in February 2016 through July 4, 2020 , we have no future scheduled repayments until the maturity of the facility on October 31, 2022 . The contractual future maturities of long-term debt outstanding, including the remaining balance of the financing arrangement described as other debt, as of July 4 , 2020 , are as follows (at face value): (in thousands) Remainder of 2020 $ — 2021 — 2022 64,000 2023 — 2024 — Thereafter 365,000 Total $ 429,000 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 04, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense for the three and six months ended July 4, 2020, and June 29, 2019, are as follows (in thousands): Three Months Ended Six Months Ended July 4, June 29, July 4, June 29, 2020 2019 2020 2019 Operating lease cost $ 2,212 $ 1,408 $ 4,221 $ 2,960 Variable lease cost 905 758 1,786 1,332 Total lease cost $ 3,117 $ 2,166 $ 6,007 $ 4,292 |
Other Information Relating to Leases | Other information relating to leases for the three and six months ended July 4, 2020, and June 29, 2019, are as follows (in thousands, except years and percentages): Three Months Ended Six Months Ended July 4, June 29, July 4, June 29, 2020 2019 2020 2019 Supplemental cash flows information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows relating to operating leases $ (2,212 ) $ (1,384 ) $ (4,221 ) $ (2,960 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 233 $ — $ 14,838 $ — Weighted average remaining lease term in years Operating leases 7.10 4.38 7.10 4.38 Weighted average discount rate Operating leases 5.9 % 6.2 % 5.9 % 6.2 % |
Future Maturities under Operating Leases | Future maturities under operating leases w ere as follows at July 4 , 2020 , and December 28, 2019 (in thousands): July 4, December 28, 2020 2019 Remainder of 2020 $ 4,449 $ 6,319 2021 7,356 4,771 2022 6,497 3,878 2023 6,260 3,741 2024 6,211 3,771 Thereafter 18,933 13,691 Total future minimum lease payments 49,706 36,171 Less: Imputed interest (9,190 ) (7,428 ) Operating lease liability - total $ 40,516 $ 28,743 Reported as of July 4, 2020 and December 28, 2019: Current portion of operating lease liability $ 6,114 $ 4,703 Operating lease liability, less current portion 34,402 24,040 Operating lease liability - total $ 40,516 $ 28,743 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jul. 04, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value on Recurring Basis | The following are measured in the condensed consolidated financial statements at fair value on a recurring basis and are categorized in the table below based upon the lowest level of significant input to the valuation (in thousands): Fair Value Measurements Assets (Liabilities) Quoted Significant Prices in Other Significant Active Observable Unobservable July 4, Markets Inputs Inputs 2020 (Level 1) (Level 2) (Level 3) Description Aluminum forward contracts $ (1,803 ) $ — $ (1,803 ) $ — MTP contracts 8 — 8 — $ (1,795 ) $ — $ (1,795 ) $ — Fair Value Measurements Assets (Liabilities) Quoted Significant Prices in Other Significant Active Observable Unobservable December 28, Markets Inputs Inputs 2019 (Level 1) (Level 2) (Level 3) Description Aluminum forward contracts $ (317 ) $ — $ (317 ) $ — $ (317 ) $ — $ (317 ) $ — |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jul. 04, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Fair Values of Hedges and MTP Contracts | The fair values of our aluminum hedges and MTP contracts are classified in the accompanying condensed consolidated balance sheets at July 4, 2020, and December 28, 2019, as follows (in thousands): Derivative Assets Derivative Liabilities July 4, 2020 July 4, 2020 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 $ 4 Accrued liabilities $ (1,754 ) MTP contracts Other current assets 73 Accrued liabilities (125 ) Aluminum forward contracts Other assets 18 Other liabilities (71 ) MTP contracts Other assets 68 Other liabilities (8 ) Total derivative instruments Total derivative assets $ 163 Total derivative liabilities $ (1,958 ) Derivative Assets Derivative Liabilities December 28, 2019 December 28, 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 $ 193 Accrued liabilities $ (510 ) Aluminum forward contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 193 Total derivative liabilities $ (510 ) |
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, for the three months ended July 4, 2020, and June 29, 2019 (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 July 4, June 29, July 4, June 29, 2020 2019 2020 2019 Aluminum contracts $ 1,556 $ (1,542 ) Cost of sales $ (1,506 ) $ (1,223 ) MTP contracts $ (26 ) $ — Cost of sales $ (87 ) $ — 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 Six Months Ended Six Months Ended July 4, June 29, July 4, June 29, 2020 2019 2020 2019 Aluminum contracts $ (3,604 ) $ (947 ) Cost of sales $ (2,118 ) $ (2,138 ) MTP contracts $ (79 ) $ — Cost of sales $ (87 ) $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jul. 04, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table shows the components of accumulated other comprehensive loss for the three months ended July 4, 2020 and June 29, 2019 (in thousands): Aluminum Three months ended July 4, 2020 Forward MTP (in thousands) Contracts Contracts Total Balance at April 4, 2020 $ (3,648 ) $ (40 ) $ (3,688 ) Change in fair value of derivatives 1,556 (26 ) 1,530 Amounts reclassified from other comprehensive loss 1,506 87 1,593 Tax effect (766 ) (15 ) (781 ) Net current-period other comprehensive income 2,296 46 2,342 Balance at July 4, 2020 $ (1,352 ) $ 6 $ (1,346 ) Aluminum Six months ended July 4, 2020 Forward MTP (in thousands) Contracts Contracts Total Balance at December 28, 2019 $ (238 ) $ — $ (238 ) Change in fair value of derivatives (3,604 ) (79 ) (3,683 ) Amounts reclassified from other comprehensive loss 2,118 87 2,205 Tax effect 372 (2 ) 370 Net current-period other comprehensive income (1,114 ) 6 (1,108 ) Balance at July 4, 2020 $ (1,352 ) $ 6 $ (1,346 ) Aluminum Three months ended June 29, 2019 Forward (in thousands) Contracts Total Balance at March 30, 2019 $ (1,941 ) $ (1,941 ) Change in fair value of derivatives (1,542 ) (1,542 ) Amounts reclassified from other comprehensive loss 1,223 1,223 Tax effect 82 82 Net current-period other comprehensive loss (237 ) (237 ) Balance at June 29, 2019 $ (2,178 ) $ (2,178 ) Aluminum Six months ended June 29, 2019 Forward (in thousands) Contracts Total Balance at December 29, 2018 $ (3,065 ) $ (3,065 ) Change in fair value of derivatives (947 ) (947 ) Amounts reclassified from other comprehensive loss 2,138 2,138 Tax effect (304 ) (304 ) Net current-period other comprehensive loss 887 887 Balance at June 29, 2019 $ (2,178 ) $ (2,178 ) |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jul. 04, 2020 | |
Segment Reporting [Abstract] | |
Summary of Financial Data Attributable to Operating Segments | Three Months Ended Six Months Ended July 4, June 29, July 4, June 29, 2020 2019 2020 2019 Net sales: Southeast segment $ 172,859 $ 161,483 $ 356,500 $ 303,159 Western segment 29,924 37,087 66,487 69,148 Total net sales $ 202,783 $ 198,570 $ 422,987 $ 372,307 Income (loss) from operations: Southeast segment $ 18,717 $ 25,218 $ 44,538 $ 40,482 Western segment 1,777 3,696 2,863 5,688 Impairment of trade name (1) (8,000 ) — (8,000 ) — Restructuring costs and charges (2) (3,906 ) — (3,906 ) — Total income from operations 8,588 28,914 35,495 46,170 Interest expense, net 6,856 6,756 14,025 13,470 Total income before income taxes $ 1,732 $ 22,158 $ 21,470 $ 32,700 (1) For the three and six months ended July 4, 2020, the impairment of $8.0 million relates to WWS trade name. (2) For the three and six months ended July 4, 2020, the restructuring costs and charges of $3.9 million relates to Southeast segment. |
Restructuring Costs and Charg_2
Restructuring Costs and Charges (Tables) | 6 Months Ended |
Jul. 04, 2020 | |
Restructuring And Related Activities [Abstract] | |
Activities of Restructuring Costs and Charges | The following represents activities of restructuring costs and charges for the three months ended July 4, 2020: Beginning Charged Write-offs of End of Restructuring costs and charges of Period to Expense Assets Settled in Cash Period (in thousands) Property, plant and equipment costs and charges $ — $ 963 $ (540 ) $ (423 ) $ — Impairment of operating lease right-of-use asset — 639 (639 ) — — Inventory charges for product rationalization — 1,164 (1,263 ) 99 — Personnel-related costs — 1,140 — (1,140 ) — Total restructuring costs and charges $ — $ 3,906 $ (2,442 ) $ (1,464 ) $ — |
Description of Business and B_3
Description of Business and Basis of Presentation - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jul. 04, 2020USD ($)Operation | Jul. 04, 2020USD ($)OperationPlantSegment | Dec. 28, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Allowance for doubtful accounts | $ | $ 3.1 | $ 3.1 | $ 3.3 |
Florida [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of manufacturing operations | 4 | ||
North Venice, Florida [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of manufacturing operations | 1 | ||
Greater Miami, Florida [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of manufacturing operations | 2 | ||
Arizona [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of manufacturing operations | 1 | ||
Tampa [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of manufacturing operations | 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 Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2020USD ($) | Jun. 29, 2019USD ($) | Jul. 04, 2020USD ($)Segment | Jun. 29, 2019USD ($) | Dec. 28, 2019USD ($) | |
Disaggregation Of Revenue [Line Items] | |||||
Number of reportable segments | Segment | 2 | ||||
Net sales | $ 202,783 | $ 198,570 | $ 422,987 | $ 372,307 | |
Contract liabilities | 17,500 | $ 17,500 | $ 7,900 | ||
Revenue recognition, practical expedient | true | ||||
NewSouth Window Solutions [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Business combination, effective date of acquisition | Feb. 1, 2020 | ||||
Accrued Liabilities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract liabilities | 16,900 | $ 16,900 | 7,400 | ||
Contract Assets, Net [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract liabilities | 600 | 600 | $ 500 | ||
Western Segment [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net sales | 29,924 | 37,087 | 66,487 | 69,148 | |
Western Segment [Member] | Volume Products [Member] | Passes at Point in Time [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net sales | $ 11,200 | $ 15,000 | $ 26,400 | $ 26,800 |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Net Sales by Reporting Segment, Product Category and Market (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 202,783 | $ 198,570 | $ 422,987 | $ 372,307 |
Southeast Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 172,859 | 161,483 | 356,500 | 303,159 |
Western Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 29,924 | 37,087 | 66,487 | 69,148 |
Impact-Resistant Windows and Door Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 144,100 | 137,700 | 297,700 | 257,300 |
Non-Impact Window and Door Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 58,700 | 60,900 | 125,300 | 115,000 |
New Construction [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 94,000 | 97,600 | 203,100 | 185,900 |
Repair and Remodel [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 108,800 | $ 101,000 | $ 219,900 | $ 186,400 |
Warranty - Additional Informati
Warranty - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Product Warranty Liability [Line Items] | ||||
Warranty expense, average rate of sales | 1.80% | 1.60% | 1.80% | 1.60% |
Minimum [Member] | ||||
Product Warranty Liability [Line Items] | ||||
Warranty periods | 1 year | |||
Warranty period of the majority of products sold | 1 year | |||
Maximum [Member] | ||||
Product Warranty Liability [Line Items] | ||||
Warranty periods | 10 years | |||
Warranty period of the majority of products sold | 3 years |
Warranty - Summary of Current P
Warranty - Summary of Current Period Charges, Adjustments to Previous Estimates, Settlements representing Actual Costs Incurred with regard to Accrued Warranty (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Guarantees And Product Warranties [Abstract] | ||||
Accrued Warranty, Beginning of Period | $ 7,388 | $ 5,981 | $ 6,244 | $ 6,149 |
Accrued Warranty, Acquired | 1,592 | |||
Accrued Warranty, Charged to Expense | 3,613 | 3,175 | 7,454 | 5,995 |
Accrued Warranty, Adjustments | 53 | 180 | 33 | 208 |
Accrued Warranty, Settlements | (3,787) | (3,356) | (8,056) | (6,372) |
Accrued Warranty, End of Period | $ 7,267 | $ 5,980 | $ 7,267 | $ 5,980 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Jul. 04, 2020 | Dec. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 48,998 | $ 41,255 |
Work-in-progress | 2,270 | 2,337 |
Finished goods | 292 | 259 |
Inventories | $ 51,560 | $ 43,851 |
Stock Based-Compensation - Addi
Stock Based-Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | May 21, 2020 | Feb. 14, 2020 | Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options exercised | 0 | 274,353 | ||||
Weighted average exercise price of options exercised | $ 2 | |||||
Compensation expense for stock based awards | $ 1,400 | $ 1,100 | $ 2,918 | $ 2,276 | ||
Selling, General and Administrative Expenses [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense for stock based awards | 1,200 | $ 800 | 2,600 | $ 1,900 | ||
Executives and Non-Executive Employees [Member] | Fixed Criteria [Member] | 2020 Long-Term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock awards | 152,515 | |||||
Options vesting period | 3 years | |||||
Restricted Stock Award [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock awards | 42,360 | |||||
Fair value of common stock | $ 13.41 | |||||
Total unrecognized compensation | $ 11,200 | $ 11,200 | ||||
Weighted-average period | 2 years | |||||
Restricted Stock Award [Member] | 2019 Long-Term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock awards | 0 | |||||
Restricted Stock Award [Member] | Executives and Non-Executive Employees [Member] | 2020 Long-Term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock awards | 305,030 | |||||
Fair value of common stock | $ 16.56 | |||||
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] | ||||||
Percentage of shares issued based on target performance | 0.00% | |||||
Restricted Stock Award [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] | ||||||
Target performance percentage not achieved | 80.00% | |||||
Company Performance Criteria [Member] | Executives and Non-Executive Employees [Member] | 2020 Long-Term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock awards | 152,515 | |||||
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] | 2020 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] | 2020 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 ($) $ in Thousands | Feb. 01, 2020 | Jul. 04, 2020 | Jul. 04, 2020 | Dec. 28, 2019 |
Business Acquisition [Line Items] | ||||
Fair value of consideration | $ 90,368 | |||
Cash payment to acquire business | 90,145 | |||
Additional payments owe to seller | 223 | |||
Goodwill | 49,907 | $ 327,507 | $ 327,507 | $ 277,600 |
Decrease in acquired accounts receivable | 8,655 | |||
Decrease in commercial trade name | 27,370 | |||
Decrease in commercial inventories | $ 3,059 | |||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Business combination, effective date of acquisition | Feb. 1, 2020 | |||
Fair value of consideration | $ 90,400 | |||
Additional payments owe to seller | 200 | |||
Business combination, acquisition related costs | 2,400 | 400 | 900 | |
Goodwill | 49,900 | |||
Net increase in the purchase price | 200 | |||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Adjustments to Allocation [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 3,707 | 3,700 | 3,700 | |
Decrease in acquired accounts receivable | (1,639) | 1,600 | 1,600 | |
Decrease in commercial trade name | (1,300) | 1,300 | 1,300 | |
Decrease in commercial inventories | (698) | 700 | 700 | |
Increase in liabilities assumed | $ 100 | $ 100 | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Cash On Hand [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash payment to acquire business | 37,000 | |||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Premium [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash payment to acquire business | 3,200 | |||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | 2018 Senior Notes due 2026 [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash payment to acquire business | 53,200 | |||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | 2018 Senior Notes due 2026 [Member] | Add-on Issuance [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash payment to acquire business | $ 50,000 |
Acquisition - Schedule of Fair
Acquisition - Schedule of Fair Value of Assets and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Jul. 04, 2020 | Dec. 28, 2019 |
Business Acquisition [Line Items] | |||
Accounts receivable | $ 8,655 | ||
Inventories | 3,059 | ||
Contract assets, net | 4,413 | ||
Prepaid expenses and other assets | 1,756 | ||
Property and equipment | 7,433 | ||
Operating lease right-of-use asset | 10,578 | ||
Intangible assets | 27,370 | ||
Goodwill | 49,907 | $ 327,507 | $ 277,600 |
Accounts payable | (6,621) | ||
Accrued and other liabilities | (5,604) | ||
Operating lease liability | (10,578) | ||
Purchase price | 90,368 | ||
Cash | 90,145 | ||
Due to Sellers | 223 | ||
Total fair value of consideration | 90,368 | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | |||
Business Acquisition [Line Items] | |||
Operating lease right-of-use asset | 10,600 | ||
Goodwill | 49,900 | ||
Due to Sellers | 200 | ||
Total fair value of consideration | 90,400 | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Previously Reported [Member] | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 10,294 | ||
Inventories | 3,757 | ||
Contract assets, net | 4,413 | ||
Prepaid expenses and other assets | 1,756 | ||
Property and equipment | 7,423 | ||
Operating lease right-of-use asset | 10,578 | ||
Intangible assets | 28,670 | ||
Goodwill | 46,200 | ||
Accounts payable | (6,621) | ||
Accrued and other liabilities | (5,524) | ||
Operating lease liability | (10,578) | ||
Purchase price | 90,368 | ||
Cash | 90,145 | ||
Due to Sellers | 223 | ||
Total fair value of consideration | 90,368 | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Adjustments to Allocation [Member] | |||
Business Acquisition [Line Items] | |||
Accounts receivable | (1,639) | 1,600 | |
Inventories | (698) | 700 | |
Property and equipment | 10 | ||
Intangible assets | (1,300) | 1,300 | |
Goodwill | 3,707 | $ 3,700 | |
Accrued and other liabilities | $ (80) |
Acquisition - Summary of Unaudi
Acquisition - Summary of Unaudited Proforma Results (Detail) - New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Business Acquisition [Line Items] | |||
Net sales | $ 220,965 | $ 430,739 | $ 413,563 |
Net income | $ 18,677 | $ 18,029 | $ 26,562 |
Net income per common share: | |||
Basic | $ 0.32 | $ 0.31 | $ 0.46 |
Diluted | $ 0.32 | $ 0.30 | $ 0.45 |
Acquisition - Schedule for Valu
Acquisition - Schedule for Valuation of Identifiable Intangible Assets Acquired and Estimate of Useful Lives (Detail) - New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] $ in Thousands | Feb. 01, 2020USD ($) |
Business Acquisition [Line Items] | |
Valuation Amount | $ 27,370 |
Previously Reported [Member] | |
Business Acquisition [Line Items] | |
Valuation Amount | 28,670 |
Adjustments to Valuation [Member] | |
Business Acquisition [Line Items] | |
Valuation Amount | (1,300) |
Trade Name [Member] | |
Business Acquisition [Line Items] | |
Valuation Amount | $ 22,200 |
Useful Life (in years) | 15 years |
Trade Name [Member] | Previously Reported [Member] | |
Business Acquisition [Line Items] | |
Valuation Amount | $ 23,500 |
Trade Name [Member] | Adjustments to Valuation [Member] | |
Business Acquisition [Line Items] | |
Valuation Amount | (1,300) |
Noncompete Agreements [Member] | |
Business Acquisition [Line Items] | |
Valuation Amount | $ 1,670 |
Useful Life (in years) | 5 years |
Noncompete Agreements [Member] | Previously Reported [Member] | |
Business Acquisition [Line Items] | |
Valuation Amount | $ 1,670 |
Developed Technology [Member] | |
Business Acquisition [Line Items] | |
Valuation Amount | $ 2,600 |
Useful Life (in years) | 6 years |
Developed Technology [Member] | Previously Reported [Member] | |
Business Acquisition [Line Items] | |
Valuation Amount | $ 2,600 |
Customer-related Intangible [Member] | |
Business Acquisition [Line Items] | |
Valuation Amount | $ 900 |
Customer-related Intangible [Member] | Maximum [Member] | |
Business Acquisition [Line Items] | |
Useful Life (in years) | 1 year |
Customer-related Intangible [Member] | Previously Reported [Member] | |
Business Acquisition [Line Items] | |
Valuation Amount | $ 900 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities excluded from the calculation of weighted average shares outstanding | 628 | 4 | 586 | 254 |
Net Income Per Common Share - C
Net Income Per Common Share - Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 2,199 | $ 17,045 | $ 17,799 | $ 25,302 |
Weighted-average common shares - Basic | 58,943 | 58,394 | 58,806 | 58,264 |
Add: Dilutive effect of stock compensation plans | 197 | 897 | 341 | 984 |
Weighted-average common shares - Diluted | 59,140 | 59,291 | 59,147 | 59,248 |
Net income per common share: | ||||
Basic | $ 0.04 | $ 0.29 | $ 0.30 | $ 0.43 |
Diluted | $ 0.04 | $ 0.29 | $ 0.30 | $ 0.43 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill and Intangible Assets Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jul. 04, 2020 | Jul. 04, 2020 | Dec. 28, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Less: Accumulated amortization | $ (108,208) | $ (108,208) | $ (98,784) |
Subtotal | 125,067 | 125,067 | 107,121 |
Other intangible assets, net | 265,908 | 265,908 | 255,962 |
Goodwill at December 28, 2019 | 277,600 | ||
Goodwill at July 4, 2020 | 327,507 | 327,507 | |
Impairment of WWS trade name | (8,000) | (8,000) | |
NewSouth [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Increase related to the acquisition of NewSouth | 49,907 | ||
Trade Name [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets | 140,841 | 140,841 | 148,841 |
Impairment of WWS trade name | (8,000) | (8,000) | |
Customer Relationships and Customer-related Assets [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets | 201,547 | $ 201,547 | 200,647 |
Customer Relationships and Customer-related Assets [Member] | Minimum [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Initial Useful Life (in years) | 1 year | ||
Customer Relationships and Customer-related Assets [Member] | Maximum [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Initial Useful Life (in years) | 10 years | ||
Trade Name [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets | 22,200 | $ 22,200 | |
Initial Useful Life (in years) | 15 years | ||
Developed Technology [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets | 5,600 | $ 5,600 | 3,000 |
Developed Technology [Member] | Minimum [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Initial Useful Life (in years) | 6 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 | 3,338 | $ 3,338 | 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 | $ 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 | Jul. 04, 2020 | Dec. 28, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2020 | $ 9,429 | |
2021 | 17,641 | |
2022 | 16,782 | |
2023 | 14,621 | |
2024 | 14,575 | |
Thereafter | 52,019 | |
Subtotal | $ 125,067 | $ 107,121 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2020 | Apr. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 4,700 | $ 4,000 | $ 9,400 | $ 8,000 | |
Impairment of trade name | 8,000 | 8,000 | |||
Trade Name [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment of trade name | $ 8,000 | $ 8,000 | |||
COVID-19 [Member] | Western Window Systems [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Percentage of increase (decrease) in net sales | (19.30%) | 14.30% | |||
Percentage of estimated fair value in excess of carrying value | 10.00% | 10.00% | |||
COVID-19 [Member] | Trade Name [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment of trade name | $ 8,000 |
Long Term Debt - Schedule of Lo
Long Term Debt - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Jul. 04, 2020 | Dec. 28, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 429,000 | $ 379,000 |
Fees, costs, discount and premium | (7,519) | (10,029) |
Long-term debt, net | 421,481 | 368,971 |
2016 Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 64,000 | |
2016 Credit Agreement [Member] | Term Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 64,000 | 64,000 |
2018 Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 365,000 | $ 315,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Feb. 01, 2020 | Jan. 24, 2020 | Oct. 31, 2019 | Dec. 19, 2018 | Sep. 18, 2018 | Aug. 10, 2018 | Mar. 16, 2018 | Feb. 16, 2016 | Feb. 29, 2016 | Jul. 04, 2020 | Dec. 28, 2019 | Jul. 04, 2020 |
Line of Credit Facility [Line Items] | ||||||||||||
Cash payment to acquire business | $ 90,145,000 | |||||||||||
Face value of Debt Outstanding | $ 429,000,000 | $ 379,000,000 | $ 429,000,000 | |||||||||
Letters of credit outstanding | 4,000,000 | 4,000,000 | ||||||||||
Fees and cost | 7,519,000 | 7,519,000 | ||||||||||
Common stock , gross proceeds | $ 161,000,000 | |||||||||||
Common stock underwriting fee , per share | $ 1.15 | |||||||||||
Proceeds from issuance of common stock | $ 153,000,000 | |||||||||||
Underwritten Public Offering [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Common stock , issued | 7,000,000 | |||||||||||
Common stock, price per share | $ 23 | |||||||||||
2016 Credit Agreement due 2022 [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Face value of Debt Outstanding | 64,000,000 | 64,000,000 | ||||||||||
Accrued interest | $ 23,000 | |||||||||||
Credit agreement date | Feb. 16, 2016 | |||||||||||
Prepayment of term loan | $ 204,000,000 | |||||||||||
Credit agreement inception year month | 2016-02 | |||||||||||
Credit facility maturity date | Oct. 31, 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 | |||||||||||
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 | 2.21% | 3.77% | 2.21% | |||||||||
Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Amount available under credit facility | $ 40,000,000 | |||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Credit facility amortization percentage | 0.35% | |||||||||||
Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Credit facility amortization percentage | 0.25% | |||||||||||
Second Amendment [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
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). | |||||||||||
Second Amendment [Member] | Base Rate [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis spread on LIBOR | 2.50% | 3.75% | ||||||||||
Second Amendment [Member] | Euro Dollar [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis spread on LIBOR | 3.50% | 4.75% | ||||||||||
Third Amendment [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Face value of Debt Outstanding | $ 64,000,000 | |||||||||||
Interest rate terms | The Third Amendment decreases the applicable interest rate margins for the Initial Term Loan A from (i) 2.50% to a spread of 1.00% to 1.75% based on our first lien net leverage ratio, in the case of the Base Rate Loans (with a floor of 100 basis points), and (ii) 3.50% to a spread ranging from 2.00% to 2.75% based on our first lien leverage ratio, in the case of the Eurodollar Loans (with a floor of zero basis points). | |||||||||||
Term of credit facility | 3 years | |||||||||||
Fees and cost | $ 900,000 | |||||||||||
Expected written-off of deferred financing costs | $ 1,500,000 | |||||||||||
Maximum net leverage ratio | 400.00% | |||||||||||
Maximum net leverage ratio thereafter | 450.00% | |||||||||||
Current first lien net leverage ratio description | We have not been required to test our first lien net leverage ratio because we have not exceeded 35% of our revolving capacity. | |||||||||||
Third Amendment [Member] | Letter of Credit [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Excluded unused borrowing capacity from financial covenant leverage | $ 7,500,000 | $ 7,500,000 | ||||||||||
Cash collateralized percentage for borrowings excluded from financial covenant leverage | 103.00% | |||||||||||
Third Amendment [Member] | Base Rate [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis spread on LIBOR | 2.50% | |||||||||||
Basis points, floor | 1.00% | |||||||||||
Third Amendment [Member] | Base Rate [Member] | Maximum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis spread on LIBOR | 1.75% | |||||||||||
Third Amendment [Member] | Base Rate [Member] | Minimum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis spread on LIBOR | 1.00% | |||||||||||
Third Amendment [Member] | Euro Dollar [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis spread on LIBOR | 3.50% | |||||||||||
Basis points, floor | 0.00% | |||||||||||
Third Amendment [Member] | Euro Dollar [Member] | Maximum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis spread on LIBOR | 2.75% | |||||||||||
Third Amendment [Member] | Euro Dollar [Member] | Minimum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis spread on LIBOR | 2.00% | |||||||||||
Revolving Credit Facility due 2024 [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Face value of Debt Outstanding | $ 40,000,000 | 40,000,000 | ||||||||||
Term of credit facility | 5 years | |||||||||||
Credit available under the credit facility | 76,000,000 | 76,000,000 | ||||||||||
Revolving Credit Facility due 2024 [Member] | Maximum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Face value of Debt Outstanding | $ 80,000,000 | |||||||||||
2018 Senior Notes due 2026 [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Long-term debt | $ 50,000,000 | $ 315,000,000 | ||||||||||
Accrued Interest rate | 6.75% | 6.75% | ||||||||||
Percentage of Principal Amount Redeemed | 106.375% | 100.00% | ||||||||||
Debt instrument, premium | $ 3,200,000 | |||||||||||
Debt instrument, maturity date | Aug. 10, 2026 | |||||||||||
Face value of Debt Outstanding | 365,000,000 | $ 365,000,000 | ||||||||||
Accrued interest | $ 10,400,000 | |||||||||||
Financing Costs | 1,300,000 | $ 10,400,000 | ||||||||||
Repurchase notes percentage of aggregate principal amount | 101.00% | 101.00% | ||||||||||
2018 Senior Notes due 2026 [Member] | NewSouth Window Solutions [Member] | Cash On Hand [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Cash payment to acquire business | $ 90,400,000 |
Long-Term Debt - Activity Relat
Long-Term Debt - Activity Relating to Third-Party Fees and Costs, Lender Fees and Discount (Detail) $ in Thousands | 6 Months Ended |
Jul. 04, 2020USD ($) | |
Debt Instrument [Line Items] | |
At beginning of year | $ 10,029 |
Add: Deferred financing costs from the issuance of the add-on 2018 Senior Notes due 2026 | 1,266 |
At end of period | 7,519 |
2016 Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Less: Amortization expense | (142) |
2018 Senior Notes Due 2026 [Member] | |
Debt Instrument [Line Items] | |
Add: Deferred financing costs from the issuance of the add-on 2018 Senior Notes due 2026 | 1,266 |
Less: Premium on the issuance of the add-on 2018 Senior Notes due 2026 | (3,187) |
Less: Amortization expense | $ (447) |
Long-Term Debt - Estimated Amor
Long-Term Debt - Estimated Amortization Expense Relating to Third-Party Fees and Costs, Lender Fees and Discount (Detail) $ in Thousands | Jul. 04, 2020USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2020 | $ 569 |
2021 | 1,195 |
2022 | 1,245 |
2023 | 1,183 |
2024 | 1,250 |
Thereafter | 2,077 |
Total | $ 7,519 |
Long-Term Debt - Contractual Fu
Long-Term Debt - Contractual Future Maturities of Long-Term Debt Outstanding, Including Remaining Balance of Financing Arrangement Described as Other Debt (Detail) - USD ($) $ in Thousands | Jul. 04, 2020 | Dec. 28, 2019 |
Debt Disclosure [Abstract] | ||
Remainder of 2020 | $ 0 | |
2021 | 0 | |
2022 | 64,000 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 365,000 | |
Total | $ 429,000 | $ 379,000 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | Dec. 28, 2019 | Feb. 01, 2020 | |
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 | |||||
Lease expenses | $ 3,100 | $ 2,200 | $ 6,000 | $ 4,300 | $ 8,900 | |
Operating lease right-of-use assets obtained in exchange for operating lease obligations | 233 | 14,838 | ||||
Operating lease right-of-use asset | $ 10,578 | |||||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating lease right-of-use asset | 10,600 | 10,600 | ||||
Cost of Sales [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Lease expenses | $ 1,600 | $ 1,000 | $ 3,100 | $ 2,000 | ||
Minimum [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating lease term | 1 year | 1 year | ||||
Maximum [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating lease term | 9 years | 9 years | ||||
Operating lease termination period | 1 year |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 2,212 | $ 1,408 | $ 4,221 | $ 2,960 |
Variable lease cost | 905 | 758 | 1,786 | 1,332 |
Total lease cost | $ 3,117 | $ 2,166 | $ 6,007 | $ 4,292 |
Leases - Other Information Rela
Leases - Other Information Relating to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows relating to operating leases | $ (2,212) | $ (1,384) | $ (4,221) | $ (2,960) |
Right-of-use assets obtained in exchange for lease obligations: | ||||
Operating leases | $ 233 | $ 14,838 | ||
Weighted average remaining lease term in years | ||||
Operating leases | 7 years 1 month 6 days | 4 years 4 months 17 days | 7 years 1 month 6 days | 4 years 4 months 17 days |
Weighted average discount rate | ||||
Operating leases | 5.90% | 6.20% | 5.90% | 6.20% |
Leases - Future Maturities unde
Leases - Future Maturities under Operating Leases (Detail) - USD ($) $ in Thousands | Jul. 04, 2020 | Dec. 28, 2019 |
Leases [Abstract] | ||
Remainder of 2020 | $ 4,449 | |
2021 | 7,356 | |
2022 | 6,497 | |
2023 | 6,260 | |
2024 | 6,211 | |
Thereafter | 18,933 | |
Total future minimum lease payments | 49,706 | |
Less: Imputed interest | (9,190) | $ (7,428) |
Operating lease liability - total | 40,516 | 28,743 |
Current portion of operating lease liability | 6,114 | 4,703 |
Operating lease liability, less current portion | $ 34,402 | 24,040 |
Remainder of 2020 | 6,319 | |
2021 | 4,771 | |
2022 | 3,878 | |
2023 | 3,741 | |
2024 | 3,771 | |
Thereafter | 13,691 | |
Total future minimum lease payments | $ 36,171 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Dec. 22, 2017 | Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 |
Income Taxes [Line Items] | |||||
Income tax expense (benefit) | $ (467,000) | $ 5,113,000 | $ 3,671,000 | $ 7,398,000 | |
Effective tax rates | 25.00% | 27.00% | 23.10% | 17.10% | 22.60% |
Income tax expense, discrete item | $ 573,000 | $ 737,000 | $ 1,000,000 | ||
Refunds of state income taxes | $ 553,000 | ||||
Effective tax rates, excluding discrete item | 21.70% | 25.70% | 24.60% | 25.70% | |
Payment of estimated federal and state income taxes | $ 0 | ||||
Federal And State Research And Development Tax Credit [Member] | |||||
Income Taxes [Line Items] | |||||
Tax credit true-ups to actual from assumptions | $ 319,000 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | Dec. 28, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fair value of assets, level 2 to level 3 transfers | $ 0 | $ 0 | $ 0 | $ 0 | |
Principal outstanding value | 429,000,000 | 429,000,000 | $ 379,000,000 | ||
2016 Credit Agreement [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fair value of current long-term debt | 64,000,000 | 64,000,000 | 64,000,000 | ||
Principal outstanding value | 64,000,000 | 64,000,000 | 64,000,000 | ||
2018 Senior Notes Due 2026 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fair value of current long-term debt | 376,000,000 | 376,000,000 | 338,600,000 | ||
Principal outstanding value | $ 365,000,000 | $ 365,000,000 | $ 315,000,000 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jul. 04, 2020 | Dec. 28, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | $ (1,795) | $ (317) |
Aluminum Forward Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | (1,803) | (317) |
MTP Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | 8 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | (1,795) | (317) |
Significant Other Observable Inputs (Level 2) [Member] | Aluminum Forward Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | (1,803) | $ (317) |
Significant Other Observable Inputs (Level 2) [Member] | MTP Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | $ 8 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) $ in Thousands, lb in Millions | 6 Months Ended | |
Jul. 04, 2020USD ($)ForwardContractlb$ / lb | Dec. 28, 2019USD ($) | |
Derivative [Line Items] | ||
Derivative liabilities, net | $ 1,958 | $ 510 |
Derivative assets, net | 163 | 193 |
Fair Value of Derivative | $ 1,800 | |
MTP Contracts [Member] | ||
Derivative [Line Items] | ||
Typical order quantities payment terms net | 30 days | |
Derivative assets, net | $ 8 | |
Number of outstanding forward contracts | ForwardContract | 8 | |
Derivative, amount of hedged item | lb | 22.9 | |
Derivative average price | $ / lb | 0.11 | |
Maturity period of contract, minimum | 1 month | |
Maturity period of contract, maximum | 18 months | |
Aluminum Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities, net | $ 1,800 | |
Number of outstanding forward contracts | ForwardContract | 27 | |
Derivative, amount of hedged item | lb | 33.3 | |
Derivative average price | $ / lb | 0.80 | |
Maturity period of contract, minimum | 1 month | |
Maturity period of contract, maximum | 18 months | |
Aluminum Contracts and MTP Contracts [Member] | ||
Derivative [Line Items] | ||
Accumulated other comprehensive income, net of tax | $ 1,300 | $ 200 |
Derivatives - Summary of Fair V
Derivatives - Summary of Fair Values of Hedges and MTP Contracts (Detail) - USD ($) $ in Thousands | Jul. 04, 2020 | Dec. 28, 2019 |
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | $ 163 | $ 193 |
Total derivative instruments Liabilities | (1,958) | (510) |
Aluminum Forward Contracts [Member] | Other Current Assets [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | 4 | 193 |
Aluminum Forward Contracts [Member] | Other Assets [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | 18 | |
Aluminum Forward Contracts [Member] | Accrued Liabilities [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Liabilities | (1,754) | $ (510) |
Aluminum Forward Contracts [Member] | Other Liabilities [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Liabilities | (71) | |
MTP Contracts [Member] | Other Current Assets [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | 73 | |
MTP Contracts [Member] | Other Assets [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | 68 | |
MTP Contracts [Member] | Accrued Liabilities [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Liabilities | (125) | |
MTP Contracts [Member] | Other Liabilities [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Liabilities | $ (8) |
Derivatives - Gains (Losses) on
Derivatives - Gains (Losses) on Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives | $ 1,530 | $ (1,542) | $ (3,683) | $ (947) |
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 | 1,556 | (1,542) | (3,604) | (947) |
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income | (1,506) | $ (1,223) | (2,118) | $ (2,138) |
MTP 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 | (26) | (79) | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income | $ (87) | $ (87) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 445,081 | $ 395,848 | $ 431,548 | $ 385,544 |
Change in fair value of derivatives | 1,530 | (1,542) | (3,683) | (947) |
Amounts reclassified from other comprehensive loss | 1,593 | 1,223 | 2,205 | 2,138 |
Tax effect | (781) | 82 | 370 | (304) |
Other comprehensive income (loss), net of tax | 2,342 | (237) | (1,108) | 887 |
Ending Balance | 451,010 | 414,375 | 451,010 | 414,375 |
Accumulated Other Comprehensive Loss [Member] | ||||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (3,688) | (1,941) | (238) | (3,065) |
Other comprehensive income (loss), net of tax | 2,342 | (237) | (1,108) | 887 |
Ending Balance | (1,346) | (2,178) | (1,346) | (2,178) |
Aluminum Forward Contracts [Member] | ||||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Change in fair value of derivatives | 1,556 | (1,542) | (3,604) | (947) |
Amounts reclassified from other comprehensive loss | 1,506 | 1,223 | 2,118 | 2,138 |
Tax effect | (766) | 82 | 372 | (304) |
Other comprehensive income (loss), net of tax | 2,296 | (237) | (1,114) | 887 |
Aluminum Forward Contracts [Member] | Accumulated Other Comprehensive Loss [Member] | ||||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (3,648) | (1,941) | (238) | (3,065) |
Ending Balance | (1,352) | $ (2,178) | (1,352) | $ (2,178) |
MTP Contracts [Member] | ||||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Change in fair value of derivatives | (26) | (79) | ||
Amounts reclassified from other comprehensive loss | 87 | 87 | ||
Tax effect | (15) | (2) | ||
Other comprehensive income (loss), net of tax | 46 | 6 | ||
MTP Contracts [Member] | Accumulated Other Comprehensive Loss [Member] | ||||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (40) | |||
Ending Balance | $ 6 | $ 6 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 6 Months Ended |
Jul. 04, 2020Segment | |
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 | 6 Months Ended | ||
Jul. 04, 2020 | Jun. 29, 2019 | Jul. 04, 2020 | Jun. 29, 2019 | |
Net sales: | ||||
Total net sales | $ 202,783 | $ 198,570 | $ 422,987 | $ 372,307 |
Income (loss) from operations: | ||||
Total income from operations | 8,588 | 28,914 | 35,495 | 46,170 |
Impairment of trade name | (8,000) | (8,000) | ||
Restructuring costs and charges | (3,906) | (3,906) | ||
Interest expense, net | 6,856 | 6,756 | 14,025 | 13,470 |
Total income before income taxes | 1,732 | 22,158 | 21,470 | 32,700 |
Trade Name [Member] | ||||
Income (loss) from operations: | ||||
Impairment of trade name | (8,000) | (8,000) | ||
Southeast Segment [Member] | ||||
Net sales: | ||||
Total net sales | 172,859 | 161,483 | 356,500 | 303,159 |
Income (loss) from operations: | ||||
Total income from operations | 18,717 | 25,218 | 44,538 | 40,482 |
Restructuring costs and charges | (3,900) | (3,900) | ||
Western Segment [Member] | ||||
Net sales: | ||||
Total net sales | 29,924 | 37,087 | 66,487 | 69,148 |
Income (loss) from operations: | ||||
Total income from operations | $ 1,777 | $ 3,696 | $ 2,863 | $ 5,688 |
Segments - Summary of Financi_2
Segments - Summary of Financial Data Attributable to Operating Segments (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 04, 2020 | Jul. 04, 2020 | |
Segment Reporting Information [Line Items] | ||
Impairment of trade name | $ 8,000 | $ 8,000 |
Restructuring costs and charges | 3,906 | 3,906 |
Trade Name [Member] | ||
Segment Reporting Information [Line Items] | ||
Impairment of trade name | 8,000 | 8,000 |
Southeast Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Restructuring costs and charges | $ 3,900 | $ 3,900 |
Restructuring Costs and Charg_3
Restructuring Costs and Charges - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 20, 2020 | Jul. 04, 2020 | Jul. 04, 2020 |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring costs and charges | $ 3,906 | $ 3,906 | |
Manufacturing Facility Closing [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and related activities, Description | on April 20, 2020, the Company’s management approved a plan to consolidate its manufacturing operations in Florida, which included exiting our manufacturing facility in Orlando, Florida, where our WinDoor and Eze-Breeze products were assembled, and relocate the manufacturing of those products to the our Venice and Tampa, Florida plants, respectively. | ||
Restructuring and related activities, initiation date | Apr. 20, 2020 | ||
Restructuring and related activities, completion date | Jun. 30, 2020 | ||
Restructuring costs and charges | $ 3,900 |
Restructuring Costs and Charg_4
Restructuring Costs and Charges - Summary of Restructuring Costs and Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 04, 2020 | Jul. 04, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring costs and charges, Charged to Expense | $ 3,906 | $ 3,906 |
Restructuring costs and charges, Write-offs of Assets | (2,442) | |
Restructuring costs and charges, Settled in Cash | (1,464) | |
Property, Plant and Equipment Costs and Charges [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring costs and charges, Charged to Expense | 963 | |
Restructuring costs and charges, Write-offs of Assets | (540) | |
Restructuring costs and charges, Settled in Cash | (423) | |
Impairment of Operating Lease Right-of-Use Asset [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring costs and charges, Charged to Expense | 639 | |
Restructuring costs and charges, Write-offs of Assets | (639) | |
Inventory Charges for Product Rationalization [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring costs and charges, Charged to Expense | 1,164 | |
Restructuring costs and charges, Write-offs of Assets | (1,263) | |
Restructuring costs and charges, Settled in Cash | 99 | |
Personnel-Related Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring costs and charges, Charged to Expense | 1,140 | |
Restructuring costs and charges, Settled in Cash | $ (1,140) |