Document and Entity Information
Document and Entity Information - shares | 8 Months Ended | |
Sep. 12, 2015 | Oct. 20, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Heritage-Crystal Clean, Inc. | |
Entity Central Index Key | 1,403,431 | |
Current Fiscal Year End Date | --01-02 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 12, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 22,316,579 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 12, 2015 | Jan. 03, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 20,456 | $ 21,555 |
Accounts receivable - net | 44,156 | 48,267 |
Inventory - net | 27,115 | 30,798 |
Deferred income taxes | 3,140 | 2,549 |
Other current assets | 7,963 | 11,681 |
Total Current Assets | 102,830 | 114,850 |
Property, plant and equipment - net | 134,199 | 135,119 |
Equipment at customers - net | 22,859 | 22,039 |
Software and intangible assets - net | 22,038 | 24,775 |
Goodwill | 22,963 | 23,036 |
Total Assets | 304,889 | 319,819 |
Current Liabilities: | ||
Accounts payable | 19,664 | 32,466 |
Current maturities of long-term debt | 6,084 | 5,259 |
Accrued salaries, wages, and benefits | 4,121 | 5,212 |
Taxes payable | 3,636 | 4,080 |
Other current liabilities | 3,518 | 6,010 |
Total Current Liabilities | 37,023 | 53,027 |
Long term debt, less current maturities | 67,524 | 73,894 |
Deferred income taxes | 8,325 | 5,484 |
Total Liabilities | 112,872 | 132,405 |
STOCKHOLDERS' EQUITY: | ||
Common stock - 26,000,000 shares authorized at $0.01 par value, 22,155,557 and 22,109,875 shares issued and outstanding at September 12, 2015 and January 3, 2015, respectively | 222 | 221 |
Additional paid-in capital | 182,299 | 181,140 |
Retained earnings | 8,873 | 5,135 |
Total Heritage-Crystal Clean, Inc. Stockholders' Equity | 191,394 | 186,496 |
Noncontrolling interest | 623 | 918 |
Total Equity | 192,017 | 187,414 |
Total Liabilities and Stockholders' Equity | $ 304,889 | $ 319,819 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 12, 2015 | Jan. 03, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 26,000,000 | 26,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 22,155,557 | 22,109,875 |
Common stock, shares outstanding | 22,155,557 | 22,109,875 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 12, 2015 | Sep. 06, 2014 | Sep. 12, 2015 | Sep. 06, 2014 | |
Revenues | ||||
Product revenues | $ 32,888 | $ 38,532 | $ 99,509 | $ 106,449 |
Service revenues | 49,797 | 39,384 | 150,154 | 115,513 |
Total revenues | 82,685 | 77,916 | 249,663 | 221,962 |
Operating expenses | ||||
Operating costs | 63,499 | 62,588 | 197,576 | 183,478 |
Selling, general, and administrative expenses | 9,872 | 8,183 | 31,553 | 25,332 |
Depreciation and amortization | 4,419 | 2,593 | 13,050 | 7,911 |
Other (income) expense - net | 99 | 172 | (153) | 357 |
Operating income | 4,796 | 4,380 | 7,637 | 4,884 |
Interest expense – net | 404 | 24 | 1,366 | 110 |
Income before income taxes | 4,392 | 4,356 | 6,271 | 4,774 |
Provision for income taxes | 1,637 | 1,942 | 2,418 | 2,011 |
Net income | 2,755 | 2,414 | 3,853 | 2,763 |
Income attributable to noncontrolling interest | 46 | 3 | 115 | 82 |
Net income attributable to Heritage-Crystal Clean, Inc. common stockholders | $ 2,709 | $ 2,411 | $ 3,738 | $ 2,681 |
Net income per share: basic | $ 0.12 | $ 0.13 | $ 0.17 | $ 0.15 |
Net income per share: diluted | $ 0.12 | $ 0.13 | $ 0.17 | $ 0.14 |
Number of weighted average shares outstanding: basic | 22,153 | 18,446 | 22,136 | 18,423 |
Number of weighted average shares outstanding: diluted | 22,438 | 18,810 | 22,405 | 18,762 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity - 8 months ended Sep. 12, 2015 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total Heritage-Crystal Clean, Inc. Stockholders' Equity [Member] | Noncontrolling Interest [Member] |
Balance at January 3, 2015, Shares at Jan. 03, 2015 | 22,109,875 | 22,109,875 | ||||
Balance at January 3, 2015 at Jan. 03, 2015 | $ 187,414 | $ 221 | $ 181,140 | $ 5,135 | $ 186,496 | $ 918 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,853 | 3,738 | 3,738 | 115 | ||
Distribution | $ (410) | (410) | ||||
Issuance of common stock - ESPP, Shares | 27,910 | 27,910 | ||||
Issuance of common stock - ESPP | $ 345 | 345 | 345 | |||
Share-based compensation, Shares | 17,772 | |||||
Share-based compensation | $ 815 | $ 1 | 814 | 815 | ||
Balance at September 12, 2015, Shares at Sep. 12, 2015 | 22,155,557 | 22,155,557 | ||||
Balance at September 12, 2015 at Sep. 12, 2015 | $ 192,017 | $ 222 | $ 182,299 | $ 8,873 | $ 191,394 | $ 623 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 8 Months Ended | |
Sep. 12, 2015 | Sep. 06, 2014 | |
Cash flows from Operating Activities: | ||
Net income | $ 3,853 | $ 2,763 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 13,050 | 7,911 |
Non-cash inventory impairment | 6,846 | 0 |
Bad debt provision | 1,081 | 352 |
Share-based compensation | 815 | 793 |
Deferred taxes | 2,250 | 1,745 |
Amortization of deferred gain on lease conversion | (245) | 0 |
Other non-cash items, net | 914 | 305 |
Changes in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable | 3,031 | (5,256) |
Increase in inventory | (3,163) | (2,833) |
Decrease (increase) in other current assets | 3,403 | (1,917) |
(Decrease) increase in accounts payable | (11,106) | 7,156 |
Increase (decrease) in accrued expenses | (3,704) | 290 |
Cash provided by operating activities | 17,025 | 11,309 |
Cash flows from Investing Activities: | ||
Capital expenditures | (12,420) | (15,098) |
Business acquisitions, net of cash acquired | 0 | (954) |
Cash used in investing activities | (12,420) | (16,052) |
Cash flows from Financing Activities: | ||
Payments on Term Loan | (5,303) | (1,000) |
Payments of notes payable | (241) | (869) |
Payments of contingent consideration | (95) | (290) |
Proceeds from the issuance of common stock | 345 | 319 |
Distributions to noncontrolling interest | (410) | (159) |
Cash used in financing activities | (5,704) | (1,999) |
Net decrease in cash and cash equivalents | (1,099) | (6,742) |
Cash and cash equivalents, beginning of period | 21,555 | 22,632 |
Cash and cash equivalents, end of period | 20,456 | 15,890 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 263 | 275 |
Cash paid for interest, net of capitalized interest of $439 and $189, respectively | 1,161 | 106 |
Supplemental disclosure of non-cash information: | ||
Payables for construction in progress | 1,026 | 353 |
Business acquisition, note issued | 0 | 203 |
Business acquisition, common stock issued | $ 0 | $ 193 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 12, 2015 | Sep. 06, 2014 | Sep. 12, 2015 | Sep. 06, 2014 | |
Statement of Cash Flows [Abstract] | ||||
Capitalized interest | $ 100 | $ 100 | $ 439 | $ 189 |
Organization and Nature of Oper
Organization and Nature of Operations | 8 Months Ended |
Sep. 12, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | ORGANIZATION AND NATURE OF OPERATIONS Heritage-Crystal Clean, Inc., a Delaware corporation and its subsidiaries (collectively the “Company”), provides parts cleaning and hazardous and non-hazardous waste services to small and mid-sized customers in both the manufacturing and vehicle maintenance sectors. The Company's service programs include parts cleaning, containerized waste management, used oil collection, vacuum truck services, waste antifreeze collection and recycling, and field services. The Company also owns and operates a used oil re-refinery through which it recycles used oil into high quality base oil for lubricants as well as other re-refinery byproducts. The Company also has multiple locations where it dehydrates used oil to be sold as recycled fuel oil. The Company's locations are in the United States and Ontario, Canada. The Company conducts its primary business operations through Heritage-Crystal Clean, LLC, its wholly owned subsidiary, and all intercompany balances have been eliminated in consolidation. The Company’s fiscal year ends on the Saturday closest to December 31. The most recent fiscal year ended on January 3, 2015 . Each of the Company's first three fiscal quarters consists of twelve weeks while the last fiscal quarter consists of sixteen or seventeen weeks. In the Company's Environmental Services segment, product revenues include sales of solvent, machines, antifreeze, and accessories; and service revenues include drum waste removal services, servicing of parts cleaning machines, vacuum truck services, field services, and other services. In the Company's Oil Business segment, product revenues include sales of re-refined base oil, byproducts, recycled fuel oil, and used oil; and service revenues include revenues from collecting and disposing of waste water. Due to the Company's integrated business model, it is impracticable to separately present costs of tangible products and costs of services. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 8 Months Ended |
Sep. 12, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company's significant accounting policies are described in Note 2, "Summary of Significant Accounting Policies," in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2015. There have been no material changes in these policies or their application. The Company tests goodwill for impairment annually in the fourth quarter and in interim periods if changes in circumstances indicate that the carrying value of goodwill may not be recoverable. The Company tests goodwill for impairment at each of its two reporting units, Environmental Services and Oil Business, both of which have goodwill. We do not aggregate reporting units for purposes of impairment testing. In fiscal 2014, the fair value of the Environmental Services reporting unit was substantially in excess of its carrying value. The fair value of the Oil Business reporting unit exceeded its carrying value by approximately 8.7 percent. There is a moderate degree of uncertainty associated with key Oil Business fair value assumptions such as the selling price of re-refined oil products and byproducts, the price paid/(charged) for raw material inputs such as used oil, operating efficiency of the used oil re-refinery, etc. A contraction of the spread between the selling price of lubricating base oil and the price paid/(charged) to vendors for raw material inputs could reasonably be expected to negatively affect the key assumptions used to determine fair value. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new guidance is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. This update could impact the timing and amounts of revenue recognized. The Company is currently evaluating the effect that implementation of this update will have on its consolidated financial position and results of operations upon adoption. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs . ASU 2015-03 requires companies to present debt issuance costs on the balance sheet as a direct deduction from the debt liability in a manner consistent with the Company's accounting treatment of debt discounts. The changes are to be applied retrospectively to all periods presented beginning in annual periods beginning after December 15, 2015, and early adoption is permitted. The Company expects to reflect these changes in presentation of debt issuance costs beginning in the first quarter of fiscal 2016. The Company expects the adoption of ASU 2015-03 will decrease Other Current Assets by $1.4 million and decrease Long Term Debt by $1.4 million . In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (ASU 2015-16). ASU No. 2015-16 simplifies the accounting for measurement-period adjustments in a business combination by requiring the acquirer to recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined. The acquirer is also required to record in the reporting period in which the adjustments are determined the effect on earnings of changes in depreciation, amortization, and other items resulting from the change to the provisional amounts. The new guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of this update will have on its consolidated financial position and results of operations upon adoption. |
Business Combinations
Business Combinations | 8 Months Ended |
Sep. 12, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS On October 16, 2014, the Company purchased the outstanding stock of FCC Environmental LLC, a Delaware limited liability company, and International Petroleum Corp. of Delaware, a Delaware corporation (together "FCC Environmental"), pursuant to a Stock Purchase Agreement entered into with Dédalo Patrimonial S.L.U., a sociedad limitadad unipersonal formed under the laws of Spain ("Seller"). Prior to the purchase, FCC Environmental was an environmental services provider and collector of used oil in the United States and operated 34 facilities mostly in the eastern half of the United States. The purchase price for FCC Environmental was set at $90.0 million subject to certain adjustments, including, without limitation, a working capital adjustment and indemnification rights and obligations. Based on the initial working capital calculations, the Company initially paid $88.8 million . The Company is in the process of determining the final purchase price, which is based on the final working capital calculations and must be agreed upon by the Seller and the Company. The outcome of the calculation of the working capital adjustment may significantly impact the purchase price and purchase price allocation. The results of FCC Environmental are consolidated into both of the Company's operating segments subsequent to the closing date. The Company is continuing to evaluate the purchase price allocations. Preliminary purchase price allocations are tentative and subject to revision as the Company finalizes appraisals and other analyses. Measurement period adjustments reflect new information obtained about facts and circumstances that existed as of the acquisition date. Final determination of the fair values may result in further adjustments to the values presented. The Company believes that the preliminary allocations provide a reasonable basis for estimating the fair values of assets acquired and liabilities assumed based on the information available. The FCC Environmental purchase price allocation is preliminary as the Company is still in the process of obtaining information to finalize the purchase price, net cash paid, and estimated fair values of the assets and liabilities presented below. The Company expects to finalize the purchase price allocation no later than one year from the purchase date. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed, net of cash acquired, related to the acquisition (in thousands): FCC Environmental Accounts receivable $ 20,430 Inventory 7,899 Other current assets 6,683 Deferred taxes 1,748 Property, plant, & equipment (a)(c) 49,752 Equipment at customers 420 Intangible assets 9,808 Goodwill (b)(c) 13,168 Accounts payable (12,453 ) Accrued salaries, wages, and benefits (2,039 ) Taxes payable (2,209 ) Other current liabilities (1,378 ) Capital lease obligations (a) (5,918 ) Net cash paid $ 85,911 ______________ (a) Subsequent to the closing date, the Company modified the leases acquired from FCC Environmental, resulting in the classification of the leases as Operating leases under the new lease terms. The change in lease terms decreased both Property, plant, & equipment and Capital lease obligations by $5.9 million . (b) Goodwill recognized from the acquisition of FCC Environmental represents the excess of the fair value of the net assets acquired over the purchase price, and is based upon the Company's expectations of synergies from combining the operations of FCC Environmental and the Company, and the value of intangible assets that are not separately recognized, such as the assembled workforce. Goodwill of $7.1 million and $6.1 million were assigned to the Environmental Services and Oil Business segments, respectively. All goodwill is expected to be deductible for income tax purposes. (c) The Company has retrospectively adjusted amounts that were recognized at the acquisition date to reflect new information about the facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. These adjustments are related to the Company's valuation of accounts receivable, other current assets, property, plant and equipment, and goodwill acquired. Such adjustments resulted in a net decrease of $1.6 million in accounts receivable, a net decrease of $0.1 million in other current assets, a net decrease of $2.0 million in property, plant and equipment and a net increase of $3.6 million in goodwill. The Company's balance sheet as of January 3, 2015 has been retrospectively restated to reflect these adjustments. Unaudited Pro Forma Financial Information The pro forma financial information in the table below presents the combined results of the Company as if the FCC Environmental acquisition that occurred in fiscal 2014 had occurred December 29, 2013 (in thousands, except per share data). The pro forma information is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company or results of operations of the Company that would have actually occurred had the transactions been in effect for the period presented. Third Quarter Ended, First Three Quarters Ended, September 6, 2014 September 6, 2014 Total revenues $ 107,256 $ 321,163 Net income (loss) 588 (2,191 ) Income (loss) per share Basic $ 0.03 $ (0.12 ) Diluted 0.03 (0.12 ) |
Accounts Receivable
Accounts Receivable | 8 Months Ended |
Sep. 12, 2015 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE Accounts receivable consisted of the following (in thousands): September 12, January 3, Trade $ 42,349 $ 49,407 Less: allowance for doubtful accounts 2,160 5,517 Trade - net 40,189 43,890 Related parties 1,101 1,452 Other 2,866 2,925 Total accounts receivable - net $ 44,156 $ 48,267 The following table provides the changes in the Company’s allowance for doubtful accounts for the first three quarters ended September 12, 2015 and the fiscal year ended January 3, 2015 (in thousands): For the First Three Quarters Ended, For the Fiscal Year Ended, September 12, January 3, Balance at beginning of period $ 5,517 $ 1,121 Balance acquired from FCC Environmental — 3,943 Bad debt provision 1,081 1,053 Accounts written off, net of recoveries (4,438 ) (600 ) Balance at end of period $ 2,160 $ 5,517 |
Inventory
Inventory | 8 Months Ended |
Sep. 12, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY The carrying value of inventory consisted of the following (in thousands): September 12, January 3, Used oil and processed oil $ 10,757 $ 14,153 Solvents and solutions 6,734 8,859 Machines 4,539 3,659 Drums and supplies 3,628 2,756 Other 1,745 1,617 Total inventory 27,403 31,044 Less: machine refurbishing reserve (288 ) (246 ) Total inventory - net $ 27,115 $ 30,798 Inventory consists primarily of used oil, processed oil, new and used solvents, new and refurbished parts cleaning machines, drums, catalyst, accessories, absorbents, and antifreeze. Inventories are valued at the lower of first-in, first-out (FIFO) cost or market, net of any reserves for excess, obsolete, or unsalable inventory. The Company continually monitors its inventory levels at each of its locations and evaluates inventories for excess or slow-moving items. If circumstances indicate the cost of inventories exceed their recoverable value, inventories are reduced to net realizable value. |
Property, Plant and Equipment
Property, Plant and Equipment | 8 Months Ended |
Sep. 12, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment consisted of the following (in thousands): September 12, January 3, Buildings and storage tanks (a) 70,886 $ 72,905 Machinery, vehicles, and equipment (a) 57,200 50,182 Land (a) 11,643 12,576 Leasehold improvements (a) 4,282 3,312 Construction in progress 19,491 18,822 Assets held for sale 690 — Total property, plant and equipment 164,192 157,797 Less: accumulated depreciation (29,993 ) (22,678 ) Property, plant and equipment - net $ 134,199 $ 135,119 September 12, January 3, Equipment at customers 57,568 $ 53,781 Less: accumulated depreciation (34,709 ) (31,742 ) Equipment at customers - net $ 22,859 $ 22,039 _______________ (a) Numbers include preliminary fair values of assets acquired in the acquisition described in Note 3 that may be adjusted as additional information becomes known. Amounts as of January 3, 2015 reflect adjustments between property, plant, and equipment categories to reflect additional information regarding the classification of the assets acquired. Depreciation expense for the third quarters ended September 12, 2015 and September 6, 2014 was $3.7 million and $2.1 million , respectively. Depreciation expense for the first three quarters ended September 12, 2015 and September 6, 2014 was $11.1 million and $6.5 million , respectively. |
Software and Other Intangible A
Software and Other Intangible Assets | 8 Months Ended |
Sep. 12, 2015 | |
Intangible Assets Disclosure [Abstract] | |
Software and Other Intangible Assets | SOFTWARE AND OTHER INTANGIBLE ASSETS Following is a summary of software and other intangible assets (in thousands): September 12, 2015 January 3, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships (a) $ 20,332 $ 2,799 $ 17,533 $ 20,361 $ 2,007 $ 18,354 Software 5,089 3,279 1,810 5,199 3,074 2,125 Non-compete agreements (a) 2,936 1,562 1,374 2,973 1,221 1,752 Patents, formulae, and licenses (a) 1,769 490 1,279 1,829 443 1,386 Other (a) 1,116 1,074 42 1,406 248 1,158 Total software and intangible assets $ 31,242 $ 9,204 $ 22,038 $ 31,768 $ 6,993 $ 24,775 _______________ (a) Numbers include preliminary fair values of assets acquired in the acquisition described in Note 3 that may be adjusted as additional information becomes known. Amortization expense was $0.7 million for the third quarter ended September 12, 2015 and $0.5 million for third quarter ended September 6, 2014 . Amortization expense was $1.9 million for the first three quarters ended September 12, 2015 and $1.4 million for first three quarters ended September 6, 2014 . The weighted average useful lives of software; customer & supplier relationships; patents, formulae, and licenses; non-compete agreements, and other intangibles were 10 years, 11 years, 15 years, 5 years, and 7 years, respectively. The expected amortization expense for the remainder of fiscal 2015 and for fiscal years 2016, 2017, 2018, and 2019 is $0.7 million , $3.1 million , $2.8 million , $2.5 million , and $2.2 million , respectively. The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, disposal of intangible assets, accelerated amortization of intangible assets, and other events. |
Debt and Financing Arrangements
Debt and Financing Arrangements | 8 Months Ended |
Sep. 12, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | DEBT AND FINANCING ARRANGEMENTS Bank Credit Facility On October 16, 2014, the Company amended its Amended and Restated Credit Agreement ("Credit Agreement"). The Credit Agreement, as amended, allows for up to $140.0 million in borrowings. As of September 12, 2015 and January 3, 2015 , the Company's total borrowings were $73.5 million and $78.8 million , respectively, under the term loan which has a maturity date of February 5, 2018 . On September 11, 2015, the company made a voluntary prepayment of $3.0 million on the term loan. The remaining portion of the credit facility is a revolving loan which expires on February 5, 2018 . There were no amounts outstanding under the revolver at September 12, 2015 and January 3, 2015 . During the third quarter of fiscal 2015 , the Company recorded interest of $0.4 million on the term loan and capitalized $0.1 million for various capital projects. During the first three quarters of fiscal 2015, the Company recorded interest of $1.4 million on the term loan, of which $0.4 million was capitalized for various capital projects. During the third quarter of fiscal 2014, the Company recorded interest of $0.1 million on the term loan and capitalized $0.1 million for various capital projects. During the first three quarters of fiscal 2014, the Company recorded interest of $0.3 million on the term loan and capitalized $0.2 million for various capital projects. As of September 12, 2015 and January 3, 2015 , the Company was in compliance with all covenants under the Credit Agreement. As of September 12, 2015 and January 3, 2015 , the Company had $4.5 million and $0.4 million of standby letters of credit issued, respectively, and $10.1 million and $13.8 million was available for borrowing under the bank credit facility, respectively. The actual amount available under the revolving loan portion of the Credit Agreement is limited by the Company's total leverage ratio. The Company's weighted average interest rate for all debt as of September 12, 2015 and September 6, 2014 was 3.1% and 1.9% , respectively. |
Segment Information
Segment Information | 8 Months Ended |
Sep. 12, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company reports in two segments: "Environmental Services" and "Oil Business." The Environmental Services segment consists of the Company's parts cleaning, containerized waste management, vacuum truck service, antifreeze recycling activities, and field services. The Oil Business segment consists of the Company's used oil collection, used oil re-refining activities, and the dehydration of used oil to be sold as recycled fuel oil. No single customer in either segment accounted for more than 10.0% of consolidated revenues in any of the periods presented. There were no intersegment revenues. Operating segment results for the third quarter s and first three quarters ended September 12, 2015 , and September 6, 2014 were as follows (in thousands): Third Quarter Ended, September 12, 2015 Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 4,923 $ 27,965 $ — $ 32,888 Service revenues 47,199 2,598 49,797 Total revenues $ 52,122 $ 30,563 $ — $ 82,685 Operating expenses Operating costs 35,532 27,967 — 63,499 Operating depreciation and amortization 1,647 1,949 — 3,596 Profit before corporate selling, general, and administrative expenses $ 14,943 $ 647 $ — $ 15,590 Selling, general, and administrative expenses 9,872 9,872 Depreciation and amortization from SG&A 823 823 Total selling, general, and administrative expenses $ 10,695 $ 10,695 Other expense - net 99 99 Operating income 4,796 Interest expense – net 404 404 Income before income taxes $ 4,392 Third Quarter Ended, September 6, 2014 Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 4,270 $ 34,262 $ — $ 38,532 Service revenues 37,535 1,849 39,384 Total revenues $ 41,805 $ 36,111 $ — $ 77,916 Operating expenses Operating costs 28,645 33,943 — 62,588 Operating depreciation and amortization 1,208 893 — 2,101 Profit before corporate selling, general, and administrative expenses $ 11,952 $ 1,275 $ — $ 13,227 Selling, general, and administrative expenses 8,183 8,183 Depreciation and amortization from SG&A 492 492 Total selling, general, and administrative expenses $ 8,675 $ 8,675 Other expense - net 172 172 Operating income 4,380 Interest expense – net 24 24 Income before income taxes $ 4,356 First Three Quarters Ended, September 12, 2015 Environmental Services Oil Business Corporate and Eliminations Consolidated Revenues Product revenues $ 15,634 $ 83,875 $ — $ 99,509 Service revenues 142,344 7,810 150,154 Total revenues $ 157,978 $ 91,685 $ — $ 249,663 Operating expenses Operating costs 109,836 87,740 — 197,576 Operating depreciation and amortization 5,045 5,653 — 10,698 Profit (loss) before corporate selling, general, and administrative expenses $ 43,097 $ (1,708 ) $ — $ 41,389 Selling, general, and administrative expenses 31,553 31,553 Depreciation and amortization from SG&A 2,352 2,352 Total selling, general, and administrative expenses $ 33,905 $ 33,905 Other (income) - net (153 ) (153 ) Operating income 7,637 Interest expense – net 1,366 1,366 Income before income taxes $ 6,271 First Three Quarters Ended, September 6, 2014 Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 12,915 $ 93,534 $ — $ 106,449 Service revenues 109,449 6,064 115,513 Total revenues $ 122,364 $ 99,598 $ — $ 221,962 Operating expenses Operating costs 86,104 97,374 — 183,478 Operating depreciation and amortization 3,713 2,696 — 6,409 Profit (loss) before corporate selling, general, and administrative expenses $ 32,547 $ (472 ) $ — $ 32,075 Selling, general, and administrative expenses 25,332 25,332 Depreciation and amortization from SG&A 1,502 1,502 Total selling, general, and administrative expenses $ 26,834 $ 26,834 Other expense - net 357 357 Operating income 4,884 Interest expense – net 110 110 Income before income taxes $ 4,774 Total assets by segment as of September 12, 2015 and January 3, 2015 were as follows (in thousands): September 12, 2015 January 3, 2015 Total Assets: Environmental Services $ 113,906 $ 113,518 Oil Business 154,086 158,577 Unallocated Corporate Assets 36,897 47,724 Total $ 304,889 $ 319,819 Segment assets for the Environmental Services and Oil Business segments consist of property, plant, and equipment, intangible assets, accounts receivable, goodwill, and inventories. Assets for the corporate unallocated amounts consist of property, plant, and equipment used at the corporate headquarters, as well as cash and net deferred tax assets. |
Commitments and Contingencies
Commitments and Contingencies | 8 Months Ended |
Sep. 12, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company may enter into purchase obligations with certain vendors. They represent expected payments to third party service providers and other commitments entered into during the normal course of our business. These purchase obligations are generally cancelable with or without notice, without penalty, although certain vendor agreements provide for cancellation fees or penalties depending on the terms of the contract. The Company has purchase obligations in the form of open purchase orders of $16.5 million as of September 12, 2015 , primarily for used oil, solvent, machine purchases, disposal and transportation expenses, and capital expenditures. The Company may be subject to investigations, claims or lawsuits as a result of operating its business, including matters governed by environmental laws and regulations. The Company may also be subject to tax audits in a variety of jurisdictions. When claims are asserted, the Company evaluates the likelihood that a loss will occur and records a liability for those instances when the likelihood is deemed probable and the exposure is reasonably estimable. The Company carries insurance at levels it believes are adequate to cover loss contingencies based on historical claims activity. When the potential loss exposure is limited to the insurance deductible and the likelihood of loss is determined to be probable, the Company accrues for the amount of the required deductible, unless a lower amount of exposure is estimated. As of September 12, 2015 and January 3, 2015 , the Company had accrued $1.6 million and $1.8 million related to loss contingencies and other contingent liabilities, respectively. |
Income Taxes
Income Taxes | 8 Months Ended |
Sep. 12, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company deducted for federal income tax purposes accelerated "bonus" depreciation on the majority of its capital expenditures for assets placed in service in fiscal 2011 through fiscal 2014. Therefore, the Company recorded a noncurrent deferred tax liability to reflect difference between the book basis and the tax basis of those assets. In addition, as a result of the federal bonus depreciation, the Company recorded a Net Operating Loss ("NOL") of $44.7 million , which will begin to expire in 2031. The balance remaining on the NOL, which is primarily the result of bonus depreciation, as of September 12, 2015 was $37.0 million , and the remaining deferred tax asset related to the Company's state and federal NOL was a tax effected balance of $12.3 million . The Company recognizes windfall tax benefits associated with the exercise of stock options directly to stockholders' equity only when realized. Consequently, deferred tax assets are not recognized for NOLs resulting from windfall tax benefits. At September 12, 2015 , deferred tax assets do not include $2.5 million of excess tax benefits from share-based compensation. The Company's effective tax rate for the third quarter of fiscal 2015 was 37.3% compared to 44.6% in the third quarter of fiscal 2014 . The rate difference is attributable to non-deductible expenses and certain state taxes not based on income having a lesser effect on the tax rate compared to the third quarter of fiscal 2014. The Company's effective tax rate for the first three quarters of fiscal 2015 was 38.6% compared to 42.1% in the first three quarters of fiscal 2014. The rate decrease is attributable to year-to-date non-deductible expenses having lesser impact the tax rate as compared to the first three quarters of fiscal 2014 due to lower income in the first three quarters of fiscal 2014. The Company establishes reserves when it is more likely than not that the Company will not realize the full tax benefit of a position. The Company had a reserve of $1.9 million for uncertain tax positions as of September 12, 2015 and January 3, 2015 . The gross unrecognized tax benefits would, if recognized, decrease the Company's effective tax rate. |
Share-based Compensation
Share-based Compensation | 8 Months Ended |
Sep. 12, 2015 | |
Share-based Compensation [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION The aggregate number of shares of common stock which may be issued under the Company’s 2008 Omnibus Plan ("Plan") is 1,902,077 plus any common stock that becomes available for issuance pursuant to the reusage provision of the Plan. As of September 12, 2015 , the number of shares available for issuance under the Plan was 613,319 shares. Stock Option Awards A summary of stock option activity under this Plan is as follows: Outstanding Stock Options Number of Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value as of Date Listed (in thousands) Options outstanding at January 3, 2015 534,428 $ 10.97 3.33 $ 708 Exercised — — Options outstanding at September 12, 2015 534,428 $ 10.97 2.64 $ 441 Restricted Stock Compensation/Awards Annually, the Company grants restricted shares to its Board of Directors. The shares become fully vested one year from their grant date. The fair value of each restricted stock grant is based on the closing price of the Company's stock on the date of grant. The Company amortizes the expense over the service period, which is the fiscal year in which the award is granted. On May 1, 2014, the Company granted 17,772 restricted shares for service in fiscal 2014 , which vested in the second quarter of fiscal 2015. On May 8, 2015, the Company granted 22,638 restricted shares to the Board of Directors for service in fiscal 2015. As of September 12, 2015 , there was $0.1 million unrecognized expense associated with these awards, which will be recorded throughout fiscal 2015 . Expense related to the Board of Directors' restricted stock in both the first three quarters of fiscal 2015 and the first three quarters of fiscal 2014 was $0.2 million . In February 2014, the Company granted certain members of management 132,107 restricted shares based on the Company's performance in fiscal 2013. These restricted shares are subject to a graded vesting schedule over a three year period starting January 1, 2015. There was approximately $0.7 million and $1.1 million in unrecognized compensation expense remaining related to these awards as of September 12, 2015 and January 3, 2015, respectively. In the first three quarters of fiscal 2015 and the first three quarters of fiscal 2014, $0.4 million and $0.4 million of compensation expense was recorded related to these awards, respectively. In February 2015, the Company granted certain members of management 37,762 restricted shares based on their services in fiscal 2014 and contingent upon continued service. The restricted shares vest over a three year period starting January 1, 2016. There was approximately $0.3 million and $0.4 million in unrecognized compensation expense remaining related to these awards as of September 12, 2015 and January 3, 2015, respectively. In the first three quarters of fiscal 2015 and the first three quarters of fiscal 2014, $0.1 million and $0.2 million was recorded as compensation expense related to these awards, respectively. The following table summarizes information about restricted stock awards for the period ended September 12, 2015 : Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share Nonvested shares outstanding at January 3, 2015 105,859 $ 16.56 Granted 60,400 12.44 Vested (17,772 ) 16.04 Nonvested shares outstanding at September 12, 2015 148,487 $ 14.94 Employee Stock Purchase Plan As of September 12, 2015 , the Company had reserved 95,984 shares of common stock available for purchase under the Employee Stock Purchase Plan of 2008 . In the first three quarters of fiscal 2015 , employees purchased 27,910 shares of the Company’s common stock with a weighted average fair market value of $13.02 per share. |
Restructuring
Restructuring | 8 Months Ended |
Sep. 12, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING In the fourth quarter of fiscal 2014, the Company purchased FCC Environmental and implemented an integration plan that included a reduction in force and the closure of several facilities. Restructuring-related costs are recorded in selling, general, and administrative expenses. The following table summarizes the activity in the Company's restructuring reserve included in accrued salaries, wages, and benefits (in thousands): For the First Three Quarters Ended, September 12, 2015 Beginning balance $ 2,010 Restructuring charges, net 233 Cash payments (2,132 ) Ending balance $ 111 |
Earnings Per Share
Earnings Per Share | 8 Months Ended |
Sep. 12, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table reconciles the number of shares outstanding for the third quarter s of fiscal 2015 and 2014 , respectively, to the number of weighted average basic shares outstanding and the number of weighted average diluted shares outstanding for the purposes of calculating basic and diluted earnings per share (in thousands, except per share data): Third Quarter Ended, First Three Quarters Ended, September 12, 2015 September 6, 2014 September 12, 2015 September 6, 2014 Net income $ 2,755 $ 2,414 $ 3,853 $ 2,763 Less: Income attributable to noncontrolling interest 46 3 115 82 Net income attributable to Heritage-Crystal Clean, Inc. available to common stockholders $ 2,709 $ 2,411 $ 3,738 $ 2,681 Weighted average basic shares outstanding 22,153 18,446 22,136 18,423 Dilutive shares from share–based compensation plans 285 364 269 339 Weighted average diluted shares outstanding 22,438 18,810 22,405 18,762 Net income per share: basic $ 0.12 $ 0.13 $ 0.17 $ 0.15 Net income per share: diluted $ 0.12 $ 0.13 $ 0.17 $ 0.14 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 8 Months Ended |
Sep. 12, 2015 | |
Accounting Policies [Abstract] | |
Fiscal Period, Policy | The Company’s fiscal year ends on the Saturday closest to December 31. The most recent fiscal year ended on January 3, 2015 . Each of the Company's first three fiscal quarters consists of twelve weeks while the last fiscal quarter consists of sixteen or seventeen weeks. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new guidance is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. This update could impact the timing and amounts of revenue recognized. The Company is currently evaluating the effect that implementation of this update will have on its consolidated financial position and results of operations upon adoption. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs . ASU 2015-03 requires companies to present debt issuance costs on the balance sheet as a direct deduction from the debt liability in a manner consistent with the Company's accounting treatment of debt discounts. The changes are to be applied retrospectively to all periods presented beginning in annual periods beginning after December 15, 2015, and early adoption is permitted. The Company expects to reflect these changes in presentation of debt issuance costs beginning in the first quarter of fiscal 2016. The Company expects the adoption of ASU 2015-03 will decrease Other Current Assets by $1.4 million and decrease Long Term Debt by $1.4 million . In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (ASU 2015-16). ASU No. 2015-16 simplifies the accounting for measurement-period adjustments in a business combination by requiring the acquirer to recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined. The acquirer is also required to record in the reporting period in which the adjustments are determined the effect on earnings of changes in depreciation, amortization, and other items resulting from the change to the provisional amounts. The new guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of this update will have on its consolidated financial position and results of operations upon adoption. |
Business Combinations (Tables)
Business Combinations (Tables) | 8 Months Ended |
Sep. 12, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed, net of cash acquired, related to the acquisition (in thousands): FCC Environmental Accounts receivable $ 20,430 Inventory 7,899 Other current assets 6,683 Deferred taxes 1,748 Property, plant, & equipment (a)(c) 49,752 Equipment at customers 420 Intangible assets 9,808 Goodwill (b)(c) 13,168 Accounts payable (12,453 ) Accrued salaries, wages, and benefits (2,039 ) Taxes payable (2,209 ) Other current liabilities (1,378 ) Capital lease obligations (a) (5,918 ) Net cash paid $ 85,911 ______________ (a) Subsequent to the closing date, the Company modified the leases acquired from FCC Environmental, resulting in the classification of the leases as Operating leases under the new lease terms. The change in lease terms decreased both Property, plant, & equipment and Capital lease obligations by $5.9 million . (b) Goodwill recognized from the acquisition of FCC Environmental represents the excess of the fair value of the net assets acquired over the purchase price, and is based upon the Company's expectations of synergies from combining the operations of FCC Environmental and the Company, and the value of intangible assets that are not separately recognized, such as the assembled workforce. Goodwill of $7.1 million and $6.1 million were assigned to the Environmental Services and Oil Business segments, respectively. All goodwill is expected to be deductible for income tax purposes. (c) The Company has retrospectively adjusted amounts that were recognized at the acquisition date to reflect new information about the facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. These adjustments are related to the Company's valuation of accounts receivable, other current assets, property, plant and equipment, and goodwill acquired. Such adjustments resulted in a net decrease of $1.6 million in accounts receivable, a net decrease of $0.1 million in other current assets, a net decrease of $2.0 million in property, plant and equipment and a net increase of $3.6 million in goodwill. The Company's balance sheet as of January 3, 2015 has been retrospectively restated to reflect these adjustments. |
Business Acquisition, Pro Forma Information | The pro forma information is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company or results of operations of the Company that would have actually occurred had the transactions been in effect for the period presented. Third Quarter Ended, First Three Quarters Ended, September 6, 2014 September 6, 2014 Total revenues $ 107,256 $ 321,163 Net income (loss) 588 (2,191 ) Income (loss) per share Basic $ 0.03 $ (0.12 ) Diluted 0.03 (0.12 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 8 Months Ended |
Sep. 12, 2015 | |
Accounts Receivable [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable consisted of the following (in thousands): September 12, January 3, Trade $ 42,349 $ 49,407 Less: allowance for doubtful accounts 2,160 5,517 Trade - net 40,189 43,890 Related parties 1,101 1,452 Other 2,866 2,925 Total accounts receivable - net $ 44,156 $ 48,267 |
Allowance for Credit Losses on Financing Receivables | The following table provides the changes in the Company’s allowance for doubtful accounts for the first three quarters ended September 12, 2015 and the fiscal year ended January 3, 2015 (in thousands): For the First Three Quarters Ended, For the Fiscal Year Ended, September 12, January 3, Balance at beginning of period $ 5,517 $ 1,121 Balance acquired from FCC Environmental — 3,943 Bad debt provision 1,081 1,053 Accounts written off, net of recoveries (4,438 ) (600 ) Balance at end of period $ 2,160 $ 5,517 |
Inventory (Tables)
Inventory (Tables) | 8 Months Ended |
Sep. 12, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The carrying value of inventory consisted of the following (in thousands): September 12, January 3, Used oil and processed oil $ 10,757 $ 14,153 Solvents and solutions 6,734 8,859 Machines 4,539 3,659 Drums and supplies 3,628 2,756 Other 1,745 1,617 Total inventory 27,403 31,044 Less: machine refurbishing reserve (288 ) (246 ) Total inventory - net $ 27,115 $ 30,798 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 8 Months Ended |
Sep. 12, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant, and equipment consisted of the following (in thousands): September 12, January 3, Buildings and storage tanks (a) 70,886 $ 72,905 Machinery, vehicles, and equipment (a) 57,200 50,182 Land (a) 11,643 12,576 Leasehold improvements (a) 4,282 3,312 Construction in progress 19,491 18,822 Assets held for sale 690 — Total property, plant and equipment 164,192 157,797 Less: accumulated depreciation (29,993 ) (22,678 ) Property, plant and equipment - net $ 134,199 $ 135,119 September 12, January 3, Equipment at customers 57,568 $ 53,781 Less: accumulated depreciation (34,709 ) (31,742 ) Equipment at customers - net $ 22,859 $ 22,039 _______________ (a) Numbers include preliminary fair values of assets acquired in the acquisition described in Note 3 that may be adjusted as additional information becomes known. Amounts as of January 3, 2015 reflect adjustments between property, plant, and equipment categories to reflect additional information regarding the classification of the assets acquired. |
Software and Other Intangible27
Software and Other Intangible Assets (Tables) | 8 Months Ended |
Sep. 12, 2015 | |
Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Following is a summary of software and other intangible assets (in thousands): September 12, 2015 January 3, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships (a) $ 20,332 $ 2,799 $ 17,533 $ 20,361 $ 2,007 $ 18,354 Software 5,089 3,279 1,810 5,199 3,074 2,125 Non-compete agreements (a) 2,936 1,562 1,374 2,973 1,221 1,752 Patents, formulae, and licenses (a) 1,769 490 1,279 1,829 443 1,386 Other (a) 1,116 1,074 42 1,406 248 1,158 Total software and intangible assets $ 31,242 $ 9,204 $ 22,038 $ 31,768 $ 6,993 $ 24,775 _______________ (a) Numbers include preliminary fair values of assets acquired in the acquisition described in Note 3 that may be adjusted as additional information becomes known. |
Segment Information (Tables)
Segment Information (Tables) | 8 Months Ended |
Sep. 12, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Operating segment results for the third quarter s and first three quarters ended September 12, 2015 , and September 6, 2014 were as follows (in thousands): Third Quarter Ended, September 12, 2015 Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 4,923 $ 27,965 $ — $ 32,888 Service revenues 47,199 2,598 49,797 Total revenues $ 52,122 $ 30,563 $ — $ 82,685 Operating expenses Operating costs 35,532 27,967 — 63,499 Operating depreciation and amortization 1,647 1,949 — 3,596 Profit before corporate selling, general, and administrative expenses $ 14,943 $ 647 $ — $ 15,590 Selling, general, and administrative expenses 9,872 9,872 Depreciation and amortization from SG&A 823 823 Total selling, general, and administrative expenses $ 10,695 $ 10,695 Other expense - net 99 99 Operating income 4,796 Interest expense – net 404 404 Income before income taxes $ 4,392 Third Quarter Ended, September 6, 2014 Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 4,270 $ 34,262 $ — $ 38,532 Service revenues 37,535 1,849 39,384 Total revenues $ 41,805 $ 36,111 $ — $ 77,916 Operating expenses Operating costs 28,645 33,943 — 62,588 Operating depreciation and amortization 1,208 893 — 2,101 Profit before corporate selling, general, and administrative expenses $ 11,952 $ 1,275 $ — $ 13,227 Selling, general, and administrative expenses 8,183 8,183 Depreciation and amortization from SG&A 492 492 Total selling, general, and administrative expenses $ 8,675 $ 8,675 Other expense - net 172 172 Operating income 4,380 Interest expense – net 24 24 Income before income taxes $ 4,356 First Three Quarters Ended, September 12, 2015 Environmental Services Oil Business Corporate and Eliminations Consolidated Revenues Product revenues $ 15,634 $ 83,875 $ — $ 99,509 Service revenues 142,344 7,810 150,154 Total revenues $ 157,978 $ 91,685 $ — $ 249,663 Operating expenses Operating costs 109,836 87,740 — 197,576 Operating depreciation and amortization 5,045 5,653 — 10,698 Profit (loss) before corporate selling, general, and administrative expenses $ 43,097 $ (1,708 ) $ — $ 41,389 Selling, general, and administrative expenses 31,553 31,553 Depreciation and amortization from SG&A 2,352 2,352 Total selling, general, and administrative expenses $ 33,905 $ 33,905 Other (income) - net (153 ) (153 ) Operating income 7,637 Interest expense – net 1,366 1,366 Income before income taxes $ 6,271 First Three Quarters Ended, September 6, 2014 Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 12,915 $ 93,534 $ — $ 106,449 Service revenues 109,449 6,064 115,513 Total revenues $ 122,364 $ 99,598 $ — $ 221,962 Operating expenses Operating costs 86,104 97,374 — 183,478 Operating depreciation and amortization 3,713 2,696 — 6,409 Profit (loss) before corporate selling, general, and administrative expenses $ 32,547 $ (472 ) $ — $ 32,075 Selling, general, and administrative expenses 25,332 25,332 Depreciation and amortization from SG&A 1,502 1,502 Total selling, general, and administrative expenses $ 26,834 $ 26,834 Other expense - net 357 357 Operating income 4,884 Interest expense – net 110 110 Income before income taxes $ 4,774 |
Reconciliation of Assets from Segment to Consolidated | Total assets by segment as of September 12, 2015 and January 3, 2015 were as follows (in thousands): September 12, 2015 January 3, 2015 Total Assets: Environmental Services $ 113,906 $ 113,518 Oil Business 154,086 158,577 Unallocated Corporate Assets 36,897 47,724 Total $ 304,889 $ 319,819 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 8 Months Ended |
Sep. 12, 2015 | |
Share-based Compensation [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity under this Plan is as follows: Outstanding Stock Options Number of Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value as of Date Listed (in thousands) Options outstanding at January 3, 2015 534,428 $ 10.97 3.33 $ 708 Exercised — — Options outstanding at September 12, 2015 534,428 $ 10.97 2.64 $ 441 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes information about restricted stock awards for the period ended September 12, 2015 : Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share Nonvested shares outstanding at January 3, 2015 105,859 $ 16.56 Granted 60,400 12.44 Vested (17,772 ) 16.04 Nonvested shares outstanding at September 12, 2015 148,487 $ 14.94 |
Restructuring (Tables)
Restructuring (Tables) | 8 Months Ended |
Sep. 12, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the activity in the Company's restructuring reserve included in accrued salaries, wages, and benefits (in thousands): For the First Three Quarters Ended, September 12, 2015 Beginning balance $ 2,010 Restructuring charges, net 233 Cash payments (2,132 ) Ending balance $ 111 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 8 Months Ended |
Sep. 12, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles the number of shares outstanding for the third quarter s of fiscal 2015 and 2014 , respectively, to the number of weighted average basic shares outstanding and the number of weighted average diluted shares outstanding for the purposes of calculating basic and diluted earnings per share (in thousands, except per share data): Third Quarter Ended, First Three Quarters Ended, September 12, 2015 September 6, 2014 September 12, 2015 September 6, 2014 Net income $ 2,755 $ 2,414 $ 3,853 $ 2,763 Less: Income attributable to noncontrolling interest 46 3 115 82 Net income attributable to Heritage-Crystal Clean, Inc. available to common stockholders $ 2,709 $ 2,411 $ 3,738 $ 2,681 Weighted average basic shares outstanding 22,153 18,446 22,136 18,423 Dilutive shares from share–based compensation plans 285 364 269 339 Weighted average diluted shares outstanding 22,438 18,810 22,405 18,762 Net income per share: basic $ 0.12 $ 0.13 $ 0.17 $ 0.15 Net income per share: diluted $ 0.12 $ 0.13 $ 0.17 $ 0.14 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 26, 2016 | Sep. 12, 2015 | Jan. 03, 2015 |
Significant Accounting Policies [Line Items] | |||
Decrease of other current assets | $ (7,963) | $ (11,681) | |
Decrease of long-term debt | $ (6,084) | $ (5,259) | |
Adjustments for New Accounting Pronouncement [Member] | Scenario, Forecast [Member] | |||
Significant Accounting Policies [Line Items] | |||
Decrease of other current assets | $ 1,400 | ||
Decrease of long-term debt | $ 1,400 |
Business Combinations (Details)
Business Combinations (Details) $ / shares in Units, $ in Thousands | Oct. 16, 2014USD ($)facility | Sep. 06, 2014USD ($)$ / shares | Sep. 12, 2015USD ($) | Sep. 06, 2014USD ($)$ / shares | Jan. 03, 2015USD ($) | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 22,963 | $ 23,036 | ||||
Total revenues | $ 107,256 | $ 321,163 | ||||
Net income (loss) | $ 588 | $ (2,191) | ||||
Basic (in dollar per share) | $ / shares | $ 0.03 | $ (0.12) | ||||
Diluted (in dollar per share) | $ / shares | $ 0.03 | $ (0.12) | ||||
FCC Environmental Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Number of Facilities | facility | 34 | |||||
Acquisition Gross Cash Paid | $ 90,000 | |||||
Payments to Acquire Businesses, Gross | 88,800 | |||||
Accounts receivable | 20,430 | |||||
Inventory | 7,899 | |||||
Other current assets | 6,683 | |||||
Deferred taxes | 1,748 | |||||
Property, plant, & equipment | [1],[2] | 49,752 | ||||
Equipment at customers | 420 | |||||
Intangible assets | 9,808 | |||||
Goodwill | [2],[3] | 13,168 | ||||
Accounts payable | (12,453) | |||||
Accrued salaries, wages, and benefits | (2,039) | |||||
Taxes payable | (2,209) | |||||
Other current liabilities | (1,378) | |||||
Capital lease obligations | [1] | (5,918) | ||||
Net cash paid | 85,911 | |||||
Accounts receivable adjustment | 1,600 | |||||
Other current assets adjustment | 100 | |||||
Property and equipment adjustment | 2,000 | |||||
Goodwill, purchase accounting adjustments | $ 3,600 | |||||
Oil Business Segment [Member] | FCC Environmental Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 7,100 | |||||
Environmental Services Segment [Member] | FCC Environmental Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 6,100 | |||||
[1] | Subsequent to the closing date, the Company modified the leases acquired from FCC Environmental, resulting in the classification of the leases as Operating leases under the new lease terms. The change in lease terms decreased both Property, plant, & equipment and Capital lease obligations by $5.9 million. | |||||
[2] | The Company has retrospectively adjusted amounts that were recognized at the acquisition date to reflect new information about the facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. These adjustments are related to the Company's valuation of accounts receivable, other current assets, property, plant and equipment, and goodwill acquired. Such adjustments resulted in a net decrease of $1.6 million in accounts receivable, a net decrease of $0.1 million in other current assets, a net decrease of $2.0 million in property, plant and equipment and a net increase of $3.6 million in goodwill. The Company's balance sheet as of January 3, 2015 has been retrospectively restated to reflect these adjustments. | |||||
[3] | Goodwill recognized from the acquisition of FCC Environmental represents the excess of the fair value of the net assets acquired over the purchase price, and is based upon the Company's expectations of synergies from combining the operations of FCC Environmental and the Company, and the value of intangible assets that are not separately recognized, such as the assembled workforce. Goodwill of $7.1 million and $6.1 million were assigned to the Environmental Services and Oil Business segments, respectively. All goodwill is expected to be deductible for income tax purposes. |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended | |||
Sep. 12, 2015 | Sep. 06, 2014 | Jan. 03, 2015 | Sep. 12, 2015 | Jan. 03, 2015 | |
Accounts Receivable [Abstract] | |||||
Trade | $ 42,349 | $ 49,407 | |||
Less: allowance for doubtful accounts | $ 5,517 | $ 1,121 | $ 1,121 | 2,160 | 5,517 |
Trade - net | 40,189 | 43,890 | |||
Related parties | 1,101 | 1,452 | |||
Other | 2,866 | 2,925 | |||
Total accounts receivable - net | $ 44,156 | $ 48,267 | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Balance at beginning of period | 5,517 | 1,121 | 1,121 | ||
Balance acquired from FCC Environmental | 3,943 | ||||
Bad debt provision | 1,081 | $ 352 | 1,053 | ||
Accounts written off, net of recoveries | (4,438) | (600) | |||
Balance at end of period | $ 2,160 | $ 5,517 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 12, 2015 | Jan. 03, 2015 |
Inventory Disclosure [Abstract] | ||
Used oil and processed oil | $ 10,757 | $ 14,153 |
Solvents and solutions | 6,734 | 8,859 |
Machines | 4,539 | 3,659 |
Drums and supplies | 3,628 | 2,756 |
Other | 1,745 | 1,617 |
Total inventory | 27,403 | 31,044 |
Less: machine refurbishing reserve | (288) | (246) |
Total inventory - net | $ 27,115 | $ 30,798 |
Property, Plant and Equipment36
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||||
Sep. 12, 2015 | Sep. 06, 2014 | Sep. 12, 2015 | Sep. 06, 2014 | Jan. 03, 2015 | ||
Property, Plant and Equipment [Abstract] | ||||||
Buildings and storage tanks | [1] | $ 70,886 | $ 70,886 | $ 72,905 | ||
Machinery, vehicles and equipment | [1] | 57,200 | 57,200 | 50,182 | ||
Land | [1] | 11,643 | 11,643 | 12,576 | ||
Leasehold improvements | [1] | 4,282 | 4,282 | 3,312 | ||
Construction in progress | 19,491 | 19,491 | 18,822 | |||
Assets held for sale | 690 | 690 | 0 | |||
Total property, plant and equipment | 164,192 | 164,192 | 157,797 | |||
Less accumulated depreciation | (29,993) | (29,993) | (22,678) | |||
Property, plant and equipment - net | 134,199 | 134,199 | 135,119 | |||
Equipment at customers | 57,568 | 57,568 | 53,781 | |||
Less accumulated depreciation | (34,709) | (34,709) | (31,742) | |||
Equipment at customers - net | 22,859 | 22,859 | $ 22,039 | |||
Depreciation expenses | $ 3,700 | $ 2,100 | $ 11,100 | $ 6,500 | ||
[1] | Numbers include preliminary fair values of assets acquired in the acquisition described in Note 3 that may be adjusted as additional information becomes known. Amounts as of January 3, 2015 reflect adjustments between property, plant, and equipment categories to reflect additional information regarding the classification of the assets acquired. |
Software and Other Intangible37
Software and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||||
Sep. 12, 2015 | Sep. 06, 2014 | Sep. 12, 2015 | Sep. 06, 2014 | Jan. 03, 2015 | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | $ 31,242 | $ 31,242 | $ 31,768 | |||
Accumulated Amortization | 9,204 | 9,204 | 6,993 | |||
Net Carrying Amount | 22,038 | 22,038 | 24,775 | |||
Amortization of Intangible Assets | 700 | $ 500 | 1,900 | $ 1,400 | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 700 | 700 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,100 | 3,100 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2,800 | 2,800 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2,500 | 2,500 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 2,200 | 2,200 | ||||
Customer & supplier relationships [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | [1] | 20,332 | 20,332 | 20,361 | ||
Accumulated Amortization | [1] | 2,799 | 2,799 | 2,007 | ||
Net Carrying Amount | [1] | 17,533 | $ 17,533 | 18,354 | ||
Finite-Lived Intangible Asset, Useful Life | 11 years | |||||
Software [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 5,089 | $ 5,089 | 5,199 | |||
Accumulated Amortization | 3,279 | 3,279 | 3,074 | |||
Net Carrying Amount | 1,810 | $ 1,810 | 2,125 | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||
Noncompete Agreements [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | [1] | 2,936 | $ 2,936 | 2,973 | ||
Accumulated Amortization | [1] | 1,562 | 1,562 | 1,221 | ||
Net Carrying Amount | [1] | 1,374 | $ 1,374 | 1,752 | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||||
Patents, formulae, and licenses [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | [1] | 1,769 | $ 1,769 | 1,829 | ||
Accumulated Amortization | [1] | 490 | 490 | 443 | ||
Net Carrying Amount | [1] | 1,279 | $ 1,279 | 1,386 | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||||
Other [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | [1] | 1,116 | $ 1,116 | 1,406 | ||
Accumulated Amortization | [1] | 1,074 | 1,074 | 248 | ||
Net Carrying Amount | [1] | $ 42 | $ 42 | $ 1,158 | ||
Finite-Lived Intangible Asset, Useful Life | 7 years | |||||
[1] | (a) Numbers include preliminary fair values of assets acquired in the acquisition described in Note 3 that may be adjusted as additional information becomes known. |
Debt and Financing Arrangemen38
Debt and Financing Arrangements (Details) - USD ($) | Sep. 11, 2015 | Sep. 12, 2015 | Sep. 06, 2014 | Sep. 12, 2015 | Sep. 06, 2014 | Jan. 03, 2015 | Oct. 16, 2014 |
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 140,000,000 | ||||||
Long-term Debt | $ 73,500,000 | $ 73,500,000 | $ 78,800,000 | ||||
Voluntary prepayment on term loan | $ 3,000,000 | ||||||
Interest Costs Incurred | 400,000 | $ 100,000 | 1,400,000 | $ 300,000 | |||
Capitalized interest | 100,000 | $ 100,000 | 439,000 | $ 189,000 | |||
Letters of Credit Outstanding, Amount | 4,500,000 | 4,500,000 | 400,000 | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 10,100,000 | $ 10,100,000 | 13,800,000 | ||||
Debt, Weighted Average Interest Rate | 3.10% | 1.90% | 3.10% | 1.90% | |||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Amount Outstanding | $ 0 | $ 0 | $ 0 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 8 Months Ended | |||
Sep. 12, 2015USD ($) | Sep. 06, 2014USD ($) | Sep. 12, 2015USD ($)segment | Sep. 06, 2014USD ($) | Jan. 03, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Product revenues | $ 32,888 | $ 38,532 | $ 99,509 | $ 106,449 | |
Service revenues | 49,797 | 39,384 | 150,154 | 115,513 | |
Total revenues | 82,685 | 77,916 | 249,663 | 221,962 | |
Operating costs | 63,499 | 62,588 | 197,576 | 183,478 | |
Operating depreciation and amortization | 3,596 | 2,101 | 10,698 | 6,409 | |
Profit (loss) before corporate selling, general, and administrative expenses | 15,590 | 13,227 | 41,389 | 32,075 | |
Selling, general, and administrative expenses | 9,872 | 8,183 | 31,553 | 25,332 | |
Depreciation and amortization from SG&A | 823 | 492 | 2,352 | 1,502 | |
Total selling, general, and administrative expenses | 10,695 | 8,675 | 33,905 | 26,834 | |
Other (income) expense - net | 99 | 172 | (153) | 357 | |
Operating income | 4,796 | 4,380 | 7,637 | 4,884 | |
Interest expense – net | 404 | 24 | 1,366 | 110 | |
Income before income taxes | 4,392 | 4,356 | 6,271 | 4,774 | |
Total Assets | 304,889 | 304,889 | $ 319,819 | ||
Operating Segments [Member] | Environmental Services Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Product revenues | 4,923 | 4,270 | 15,634 | 12,915 | |
Service revenues | 47,199 | 37,535 | 142,344 | 109,449 | |
Total revenues | 52,122 | 41,805 | 157,978 | 122,364 | |
Operating costs | 35,532 | 28,645 | 109,836 | 86,104 | |
Operating depreciation and amortization | 1,647 | 1,208 | 5,045 | 3,713 | |
Profit (loss) before corporate selling, general, and administrative expenses | 14,943 | 11,952 | 43,097 | 32,547 | |
Total Assets | 113,906 | 113,906 | 113,518 | ||
Operating Segments [Member] | Oil Business Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Product revenues | 27,965 | 34,262 | 83,875 | 93,534 | |
Service revenues | 2,598 | 1,849 | 7,810 | 6,064 | |
Total revenues | 30,563 | 36,111 | 91,685 | 99,598 | |
Operating costs | 27,967 | 33,943 | 87,740 | 97,374 | |
Operating depreciation and amortization | 1,949 | 893 | 5,653 | 2,696 | |
Profit (loss) before corporate selling, general, and administrative expenses | 647 | 1,275 | (1,708) | (472) | |
Total Assets | 154,086 | 154,086 | 158,577 | ||
Corporate and Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Selling, general, and administrative expenses | 9,872 | 8,183 | 31,553 | 25,332 | |
Depreciation and amortization from SG&A | 823 | 492 | 2,352 | 1,502 | |
Total selling, general, and administrative expenses | 10,695 | 8,675 | 33,905 | 26,834 | |
Other (income) expense - net | 99 | 172 | (153) | 357 | |
Interest expense – net | 404 | $ 24 | 1,366 | $ 110 | |
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Assets | $ 36,897 | $ 36,897 | $ 47,724 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 12, 2015 | Jan. 03, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase Commitment, Remaining Minimum Amount Committed | $ 16.5 | |
Loss Contingency Accrual, at Carrying Value | $ 1.6 | $ 1.8 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||||
Sep. 12, 2015 | Sep. 06, 2014 | Sep. 12, 2015 | Sep. 06, 2014 | Jan. 03, 2015 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ||||||
Operating Loss Carryforwards | $ 37 | $ 37 | $ 44.7 | |||
Deferred Tax Assets, Gross | 12.3 | 12.3 | ||||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | $ 2.5 | $ 2.5 | ||||
Effective Income Tax Rate, Continuing Operations | 37.30% | 44.60% | 38.60% | 42.10% | ||
Valuation Allowances and Reserves, Balance | $ 1.9 | $ 1.9 | $ 1.9 |
Share-based Compensation - Stoc
Share-based Compensation - Stock Option Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 8 Months Ended | 12 Months Ended |
Sep. 12, 2015 | Jan. 03, 2015 | |
Number of Options Outstanding | ||
Number of Options Outstanding at Period Start | 534,428 | |
Exercised, Granted, Number of Options Outstanding | 0 | |
Number of Options Outstanding at Period End | 534,428 | 534,428 |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price of Stock Options Outstanding at Period Start (dollars per share) | $ 10.97 | |
Exercised, Weighted Average Exercise Price of Stock Options Outstanding (dollars per share) | 0 | |
Weighted Average Exercise Price of Stock Options Outstanding at Period End (dollars per share) | $ 10.97 | $ 10.97 |
Additional Disclosures | ||
Stock Options Outstanding, Weighted Average Remaining Contractual Term | 2 years 7 months 21 days | 3 years 4 months |
Stock Options Outstanding, Aggregate Intrinsic Value as of Date Listed | $ 441 | $ 708 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock Compensation/Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 8 Months Ended | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Sep. 12, 2015 | Sep. 06, 2014 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 1,902,077 | ||||
Number of shares available for grant | 613,319 | ||||
2014 Board of Director Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated share-based compensation expense | $ 0.2 | ||||
2013 Long Term Incentive Plan [Member] | |||||
Number of Shares | |||||
Granted, Number of Shares | 132,107 | ||||
2014 LTI Grant [Member] | |||||
Number of Shares | |||||
Granted, Number of Shares | 37,762 | ||||
Restricted Stock [Member] | |||||
Number of Shares | |||||
Nonvested shares outstanding at Period Start, Number of Shares | 105,859 | ||||
Vested, Number of Shares | (17,772) | ||||
Nonvested shares outstanding at Period End, Number of Shares | 148,487 | 105,859 | |||
Weighted Average Grant-Date Fair Value Per Share | |||||
Nonvested shares outstanding at Period Start, Weighted Average Grant Date Fair Value Per Share | $ 16.56 | ||||
Granted, Weighted Average Grant Date Fair Value Per Share | 12.44 | ||||
Vested, Weighted Average Grant Date Fair Value | 16.04 | ||||
Nonvested shares outstanding at Period End, Weighted Average Grant Date Fair Value Per Share | $ 14.94 | $ 16.56 | |||
Restricted Stock [Member] | 2014 Board of Director Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued during the period, net of forfeitures | 17,772 | ||||
Restricted Stock [Member] | 2015 Board of Director Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued during the period, net of forfeitures | 22,638 | ||||
Compensation cost, not yet recognized | $ 0.1 | ||||
Allocated share-based compensation expense | 0.2 | ||||
Restricted Stock [Member] | 2013 Long Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost, not yet recognized | 0.7 | $ 1.1 | |||
Allocated share-based compensation expense | $ 0.4 | $ 0.4 | |||
Number of Shares | |||||
Granted, Number of Shares | 60,400 | ||||
Restricted Stock [Member] | 2014 LTI Grant [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost, not yet recognized | $ 0.3 | $ 0.4 | |||
Allocated share-based compensation expense | $ 0.1 | $ 0.2 | |||
Board of Directors [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Management [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | 3 years |
Share-based Compensation - Empl
Share-based Compensation - Employee Stock Purchase Plan (Details) | 8 Months Ended |
Sep. 12, 2015$ / sharesshares | |
Share-based Compensation [Abstract] | |
Shares Available Employee Stock Purchase Plan | 95,984 |
Issuance of common stock - ESPP | 27,910 |
Weighted Average Fair Value Per Share ESPP | $ / shares | $ 13.02 |
Restructuring (Details)
Restructuring (Details) $ in Thousands | 8 Months Ended |
Sep. 12, 2015USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 2,010 |
Restructuring charges, net | 233 |
Cash payments | (2,132) |
Ending balance | $ 111 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 12, 2015 | Sep. 06, 2014 | Sep. 12, 2015 | Sep. 06, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 2,755 | $ 2,414 | $ 3,853 | $ 2,763 |
Less: Income attributable to noncontrolling interest | 46 | 3 | 115 | 82 |
Net income attributable to Heritage-Crystal Clean, Inc. common stockholders | $ 2,709 | $ 2,411 | $ 3,738 | $ 2,681 |
Weighted average basic shares outstanding | 22,153 | 18,446 | 22,136 | 18,423 |
Dilutive shares from share–based compensation plans | 285 | 364 | 269 | 339 |
Weighted average diluted shares outstanding | 22,438 | 18,810 | 22,405 | 18,762 |
Net income per share: basic | $ 0.12 | $ 0.13 | $ 0.17 | $ 0.15 |
Net income per share: diluted | $ 0.12 | $ 0.13 | $ 0.17 | $ 0.14 |