Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 26, 2016 | May. 02, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Heritage-Crystal Clean, Inc. | |
Entity Central Index Key | 1,403,431 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 26, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 22,370,141 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 26, 2016 | Jan. 02, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 22,399 | $ 23,608 |
Accounts receivable - net | 41,891 | 41,592 |
Inventory - net | 22,253 | 24,774 |
Other current assets | 4,286 | 4,810 |
Total Current Assets | 90,829 | 94,784 |
Property, plant and equipment - net | 132,046 | 131,365 |
Equipment at customers - net | 23,083 | 23,172 |
Software and intangible assets - net | 22,161 | 22,202 |
Goodwill | 31,509 | 30,325 |
Total Assets | 299,628 | 301,848 |
Current Liabilities: | ||
Accounts payable | 24,077 | 25,129 |
Current maturities of long-term debt and term loan | 6,681 | 6,700 |
Accrued salaries, wages, and benefits | 4,085 | 4,330 |
Taxes payable | 6,697 | 6,735 |
Other current liabilities | 4,691 | 3,617 |
Total Current Liabilities | 46,231 | 46,511 |
Term loan, less current maturities | 62,936 | 62,778 |
Deferred income taxes | 1,861 | 2,726 |
Total Liabilities | 111,028 | 112,015 |
STOCKHOLDERS' EQUITY: | ||
Common stock - 26,000,000 shares authorized at $0.01 par value, 22,225,537 and 22,213,364 shares issued and outstanding at March 26, 2016 and January 2, 2016, respectively | 222 | 222 |
Additional paid-in capital | 183,051 | 182,558 |
Retained earnings | 4,617 | 6,385 |
Total Heritage-Crystal Clean, Inc. Stockholders' Equity | 187,890 | 189,165 |
Noncontrolling interest | 710 | 668 |
Total Equity | 188,600 | 189,833 |
Total Liabilities and Stockholders' Equity | $ 299,628 | $ 301,848 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 26, 2016 | Jan. 02, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 26,000,000 | 26,000,000 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 22,225,537 | 22,213,364 |
Common stock, shares outstanding | 22,225,537 | 22,213,364 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Revenues | ||
Product revenues | $ 23,704 | $ 34,397 |
Service revenues | 54,749 | 49,639 |
Total revenues | 78,453 | 84,036 |
Operating expenses | ||
Operating costs | 64,247 | 69,714 |
Selling, general, and administrative expenses | 12,208 | 11,066 |
Depreciation and amortization | 4,128 | 4,333 |
Other income - net | 58 | 99 |
Operating loss | (2,072) | (978) |
Interest expense – net | 518 | 554 |
Loss before income taxes | (2,590) | (1,532) |
Benefit from income taxes | (864) | (632) |
Net loss | (1,726) | (900) |
Income attributable to noncontrolling interest | 42 | 41 |
Net loss attributable to Heritage-Crystal Clean, Inc. available to common stockholders | $ (1,768) | $ (941) |
Net loss per share: basic (in USD per share) | $ (0.08) | $ (0.04) |
Net loss per share: diluted (in USD per share) | $ (0.08) | $ (0.04) |
Number of weighted average shares outstanding: basic (in shares) | 22,225 | 22,119 |
Number of weighted average shares outstanding: diluted (in shares) | 22,225 | 22,119 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 3 months ended Mar. 26, 2016 - 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] |
Stockholders' equity, beginning balance (in shares) at Jan. 02, 2016 | 22,213,364 | 22,213,364 | ||||
Stockholders' equity, beginning balance at Jan. 02, 2016 | $ 189,833 | $ 222 | $ 182,558 | $ 6,385 | $ 189,165 | $ 668 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (1,726) | (1,768) | (1,768) | 42 | ||
Issuance of common stock - ESPP (in shares) | 12,173 | |||||
Issuance of common stock – ESPP | 119 | 119 | 119 | |||
Share-based compensation | $ 374 | 374 | 374 | |||
Stockholders' equity, ending balance (in shares) at Mar. 26, 2016 | 22,225,537 | 22,225,537 | ||||
Stockholders' equity, ending balance at Mar. 26, 2016 | $ 188,600 | $ 222 | $ 183,051 | $ 4,617 | $ 187,890 | $ 710 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Cash flows from Operating Activities: | ||
Net loss | $ (1,726) | $ (900) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 4,128 | 4,333 |
Non-cash inventory impairment | 1,465 | 2,601 |
Bad debt provision | (32) | 359 |
Share-based compensation | 374 | 228 |
Deferred taxes | (865) | (660) |
Amortization of deferred gain on lease conversion | (106) | (94) |
Other, net | 219 | (126) |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable | 94 | 1,796 |
Decrease in inventory | 1,083 | 860 |
(Increase) decrease in other current assets | 525 | 1,547 |
Increase (decrease) in accounts payable | 504 | (4,265) |
Increase (decrease) in accounts payable | 566 | (1,427) |
Cash provided by operating activities | 6,229 | 4,252 |
Cash flows from Investing Activities: | ||
Capital expenditures | (5,485) | (5,462) |
Proceeds from the sale of property, plant, and equipment | 47 | 0 |
Business acquisitions, net of cash acquired | (2,100) | 0 |
Cash used in investing activities | (7,538) | (5,462) |
Cash flows from Financing Activities: | ||
Payments of notes payable | (19) | (76) |
Payments of contingent consideration | 0 | (96) |
Proceeds from the issuance of common stock | 119 | 106 |
Cash provided by (used) in financing activities | 100 | (66) |
Net decrease in cash and cash equivalents | (1,209) | (1,276) |
Cash and cash equivalents, beginning of period | 23,608 | 21,555 |
Cash and cash equivalents, end of period | 22,399 | 20,279 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 36 | 61 |
Cash paid for interest, net of capitalized interest of $ — and $150, respectively | 405 | 2 |
Supplemental disclosure of non-cash information: | ||
Payables for construction in progress | $ 1,062 | $ 388 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest | $ 0 | $ 150 |
Organization and Nature of Oper
Organization and Nature of Operations | 3 Months Ended |
Mar. 26, 2016 | |
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 2, 2016 . 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 used oil, collection and disposing of used oil filters and disposing of oily water waste. 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 | 3 Months Ended |
Mar. 26, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with Generally Accepted Accounting Principles ("GAAP") requires the use of certain estimates by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting period. Significant items subject to such estimates and assumptions are the allowance for doubtful accounts receivable, valuation of inventory at lower of cost or market, valuation of goodwill and other intangible assets, and income taxes. Actual results could differ from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. Revenue Recognition The Company derives its revenues primarily from the services it performs and from the sale of processed oil from its used oil re-refinery as well as the sale of recycled fuel oil. Parts cleaning and other service revenues are recognized as the service is performed. Product revenues are recognized at the time risk of loss passes to the customer. The risk of loss passes to customers at various times depending on the particular terms of the sales contract in force with each individual customer. Common thresholds for when risk of loss passes to the customer are at the time that product is loaded onto the shipping vessel or at the time that product is offloaded at the customer’s receiving location. Revenues are recognized only if collection of the relevant receivable is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. Operating Costs Within operating costs are cost of sales. Cost of sales in the Environmental Services segment includes the costs of the materials the Company sells and provides in its services, such as solvents and other chemicals, cleaning machines sold to customers, transportation of inventory and waste, and payments to third parties to recycle or dispose of the waste materials that the Company collects. The Company’s used solvent that it retrieves from customers in its product reuse program is accounted for as a reduction in net cost of solvent under cost of sales, whether placed in inventory or sold to a purchaser for reuse. If the used solvent is placed in inventory it is recorded at lower of cost or net realizable value. Cost of sales in the Oil Business include transportation out to customers, and costs to operate the used oil re-refinery, including personnel costs and utilities. Operating costs also include the Company's costs of operating its branch system, hubs, waste water treatment, and antifreeze recycling facilities. These costs include personnel costs (including commissions), facility rent and utilities, truck leases, fuel, transportation, and maintenance. Operating costs are not presented separately for products and services. Inventory 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 performs physical inventory counts on a periodic basis and uses the results of these counts to determine inventory quantities. The quantities are used to help determine the value of our inventory. The Company continually monitors its inventory levels at each of our distribution locations and evaluate 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. Acquisitions The Company accounts for acquired businesses using the purchase method of accounting, which requires that the assets acquired, liabilities assumed, and contingent consideration be recorded at the date of acquisition at their respective fair values. It further requires that acquisition-related costs be recognized separately from the acquisition and expensed as incurred and restructuring costs to be expensed in periods subsequent to the acquisition date. The Company records a preliminary purchase price allocation for its acquisitions and finalizes purchase price allocations as additional information relative to the fair values of the assets acquired becomes known. Identifiable Intangible Assets The fair value of identifiable intangible assets is based on significant judgments made by management. The Company has engaged third party valuation appraisal firms to assist the Company in determining the fair values and useful lives of the assets acquired. Such valuations and useful life determinations require the Company to make significant estimates and assumptions. These estimates and assumptions are based on historical experience and information obtained from the management of the acquired companies and also include, but are not limited to, future expected cash flows to be earned from the continued operation of the acquired business and discount rates applied in determining the present value of those cash flows. Unanticipated events and circumstances may occur that could affect the accuracy or validity of such assumptions, estimates, or actual results. Acquisition-related finite lived intangible assets are amortized on a straight-line basis over their estimated economic lives. The Company evaluates the estimated benefit periods and recoverability of its intangible assets when facts and circumstances indicate that the lives may not be appropriate and/or the carrying value of the asset may not be recoverable. If the carrying value is not recoverable, impairment is measured as the amount by which the carrying value exceeds its estimated fair value. Fair Value of Financial Instruments The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. These tiers include: Level 1, defined as quoted market prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3, defined as unobservable inputs that are not corroborated by market data. The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, trade payables, notes payable, and term debt. As of March 26, 2016 and January 2, 2016 , the carrying values of cash and cash equivalents, trade receivables, trade payables, and notes payable are considered to be representative of their respective fair values due to the short maturity of these instruments. Term debt is representative of its fair value due to the interest rates being applied. Goodwill Goodwill is measured as a residual amount as of the acquisition date, which in most cases results in measuring goodwill as an excess of the purchase consideration transferred plus the fair value of any noncontrolling interest in the acquiree over the fair value of the net assets acquired, including any contingent consideration. The Company tests goodwill for impairment annually in the fourth quarter and in interim periods if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company's determination of fair value requires certain assumptions and estimates, such as margin expectations, market conditions, growth expectations, expected changes in working capital, etc., regarding expected future profitability and expected future cash flows. The Company tests goodwill for impairment at each of its two reporting units, Environmental Services and Oil Business, and the Company does not aggregate reporting units for purposes of impairment testing. Recently Issued Accounting Pronouncements In the first quarter of 2016, the Company adopted Accounting Standards Update No. 2015-03 “ Interest—Imputation of Interest (Subtopic 835-30) : Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt, and Accounting Standards Update No. 2015-15 “ Interest—Imputation of Interest (Subtopic 835-30) : Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”), which allows for the presentation of debt issuance costs as an asset regardless of whether or not there is an outstanding balance on the line-of-credit arrangement. The adoption of ASU 2015-03 resulted in the reclassification of $1.3 million and $1.4 million of unamortized debt issuance costs from "Other current assets" to "Term loan, less current maturities" as of March 26, 2016 and January 2, 2016, respectively. 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; early adoption is not permitted. 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 August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The adoption of ASU 2014-15 is not expected to have an impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. For public business entities, the standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For all other entities, the standard is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early application of the amendments in this update is permitted for all entities. The Company is currently evaluating the effect that implementation of ASU 2016-02 will have on its consolidated financial position and results of operations. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) : Improvements to Employee Share-Based Payment Accounting. The ASU addresses the simplification of accounting for employee share-based payment transactions as it pertains to income taxes, the classification of awards as equity or liabilities, accounting for forfeitures, statutory tax withholding requirements, and certain classifications on the statement of cash flows. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those periods, with early adoption permitted. The Company is currently evaluating the effect that implementation of ASU 2016-09 will have on its consolidated financial position and results of operations. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 26, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS On March 24, 2016, the Company purchased the assets of Phoenix Environmental Services, Inc. and Pipeline Video and Cleaning North Corporation (together "Phoenix Environmental"). The purchase price for the acquisition was set at $2.7 million including $0.3 million placed into escrow, plus contingent consideration of up to $0.3 million based on subsequent business performance. 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 based on the information available. The Phoenix 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 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 related to the acquisition: (Thousands) Phoenix Environmental Services Accounts receivable $ 361 Inventory 27 Property, plant, & equipment 374 Equipment at customers 55 Intangible assets 710 Goodwill (a) 1,173 Total purchase price 2,700 Less: cash placed into escrow in Q2 2016 (300 ) Less: contingent consideration (300 ) Net cash paid $ 2,100 ______________ (a) Goodwill recognized from the acquisition of Phoenix 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 Phoenix Environmental and the Company, and the value of intangible assets that are not separately recognized, such as the assembled workforce. Goodwill of $1.2 million was assigned to the Environmental Services reporting unit. All goodwill is expected to be deductible for income tax purposes. Unaudited Pro Forma Financial Information The pro forma financial information in the table below presents the combined results of the Company as if the Phoenix Environmental acquisition that occurred in fiscal 2016 had occurred January 3, 2015 (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. First Quarter Ended, March 26, 2016 March 28, 2015 Total revenues $ 79,156 $ 84,811 Net income (loss) (1,808 ) (772 ) Income (loss) per share Basic $ (0.08 ) $ (0.04 ) Diluted (0.08 ) (0.04 ) |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 26, 2016 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE Accounts receivable consisted of the following: (Thousands) March 26, January 2, Trade $ 39,585 $ 38,379 Less: allowance for doubtful accounts 2,051 2,207 Trade - net 37,534 36,172 Related parties 944 1,250 Other 3,413 4,170 Total accounts receivable - net $ 41,891 $ 41,592 The following table provides the changes in the Company’s allowance for doubtful accounts for the first quarter ended March 26, 2016 and the fiscal year ended January 2, 2016 : For the Quarter Ended, For the Fiscal Year Ended, (Thousands) March 26, January 2, Balance at beginning of period $ 2,207 $ 3,927 Balance acquired from FCC Environmental — 2,701 Bad debt provision (32 ) 1,009 Accounts written off, net of recoveries (124 ) (5,430 ) Balance at end of period $ 2,051 $ 2,207 |
Inventory
Inventory | 3 Months Ended |
Mar. 26, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY The carrying value of inventory consisted of the following: (Thousands) March 26, January 2, Used oil and processed oil $ 7,514 $ 9,045 Solvents and solutions 5,073 6,285 Machines 3,640 3,827 Drums and supplies 4,599 4,226 Other 1,746 1,681 Total inventory 22,572 25,064 Less: machine refurbishing reserve 319 290 Total inventory - net $ 22,253 $ 24,774 Inventory consists primarily of used oil, processed oil, solvents and solutions, new and refurbished parts cleaning machines, drums and supplies, and other items. 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. In the first quarter of 2016, the Company wrote down the value of inventory by $1.5 million compared to a write down of $2.6 million in the first quarter of 2015. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 3 Months Ended |
Mar. 26, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment consisted of the following: (Thousands) March 26, January 2, Buildings and storage tanks $ 69,415 $ 69,317 Machinery, vehicles, and equipment (a) 76,887 75,129 Leasehold improvements 4,573 4,523 Land 9,303 9,295 Construction in progress 5,509 4,474 Assets held for sale 199 189 Total property, plant and equipment 165,886 162,927 Less: accumulated depreciation (33,840 ) (31,562 ) Property, plant and equipment - net $ 132,046 $ 131,365 (Thousands) March 26, January 2, Equipment at customers (a) $ 60,154 $ 59,216 Less: accumulated depreciation (37,071 ) (36,044 ) Equipment at customers - net $ 23,083 $ 23,172 _______________ (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. Depreciation expense for the first quarters ended March 26, 2016 and March 28, 2015 was $3.4 million and $3.8 million , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 26, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is measured as a residual amount as of the acquisition date, which in most cases results in measuring goodwill as an excess of the purchase consideration transferred plus the fair value of any noncontrolling interest in the acquiree over the fair value of the net assets acquired, including any contingent consideration. The Company tests goodwill for impairment annually in the fourth quarter and in interim periods if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company's determination of fair value requires certain assumptions and estimates, such as margin expectations, market conditions, growth expectations, expected changes in working capital, etc., regarding expected future profitability and expected future cash flows. The Company tests goodwill for impairment at each of its two reporting units, Environmental Services and Oil Business, and the Company does not aggregate reporting units for purposes of impairment testing. The following table shows changes to our goodwill balances by segment at January 2, 2016, and March 26, 2016: (Thousands) Oil Business Environmental Services Total Balance at January 2, 2016 $ — $ 30,325 $ 30,325 Phoenix Environmental acquisition — 1,173 1,173 Currency translation adjustments — 11 11 Balance at March 26, 2016 $ — $ 31,509 $ 31,509 Following is a summary of software and other intangible assets: March 26, 2016 January 2, 2016 (Thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships $ 22,926 $ 4,886 $ 18,040 $ 22,202 $ 4,369 $ 17,833 Software 4,455 3,448 1,007 4,455 3,382 1,073 Non-compete agreements 2,936 1,827 1,109 2,930 1,713 1,217 Patents, formulae, and licenses 1,769 526 1,243 1,769 510 1,259 Other 1,349 587 762 1,354 534 820 Total software and intangible assets $ 33,435 $ 11,274 $ 22,161 $ 32,710 $ 10,508 $ 22,202 _______________ Amortization expense was $0.8 million for the first quarter ended March 26, 2016 and $0.5 million for first quarter ended March 28, 2015 . The weighted average useful lives of software; customer relationships; patents, formulae, and licenses; non-compete agreements, and other intangibles were 10 years, 11 years, 15 years, 5 years, and 6 years, respectively. The expected amortization expense for the remainder of fiscal 2016 and for fiscal years 2017, 2018, 2019, and 2020 is $2.5 million , $3.1 million , $2.9 million , $2.6 million , and $2.5 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 | 3 Months Ended |
Mar. 26, 2016 | |
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 March 26, 2016 and January 2, 2016 , the Company's total borrowings were $70.9 million under the term loan which has a maturity date of February 5, 2018 . 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 March 26, 2016 and January 2, 2016 . Unamortized debt issuance costs were $1.3 million and $1.4 million as of March 26, 2016 and January 2, 2016, respectively. During the first quarter of fiscal 2016 , the Company recorded interest of $0.6 million on the term loan and capitalized less than $0.1 million for various capital projects. During the first quarter of fiscal 2015, the Company recorded interest of $0.4 million on the term loan, of which less than $0.2 million was capitalized for various capital projects. As of March 26, 2016 and January 2, 2016 , the Company was in compliance with all covenants under the Credit Agreement. As of March 26, 2016 and January 2, 2016 , the Company had $3.0 million and $4.4 million of standby letters of credit issued, respectively, and $21.4 million and $34.5 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 March 26, 2016 and March 28, 2015 was 3.5% and 3.2% , respectively. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 26, 2016 | |
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 and used oil re-refining activities, as well as 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 first quarter s ended March 26, 2016 , and March 28, 2015 were as follows: First Quarter Ended, March 26, 2016 (Thousands) Environmental Services Oil Business Corporate and Eliminations Consolidated Revenues Product revenues $ 5,029 $ 18,675 $ — $ 23,704 Service revenues 47,333 7,416 54,749 Total revenues $ 52,362 $ 26,091 $ — $ 78,453 Operating expenses Operating costs 36,806 27,441 — 64,247 Operating depreciation and amortization 1,714 1,580 — 3,294 Profit (loss) before corporate selling, general, and administrative expenses $ 13,842 $ (2,930 ) $ — $ 10,912 Selling, general, and administrative expenses 12,208 12,208 Depreciation and amortization from SG&A 834 834 Total selling, general, and administrative expenses $ 13,042 $ 13,042 Other income - net 58 58 Operating loss (2,072 ) Interest expense – net 518 518 Loss before income taxes $ (2,590 ) First Quarter Ended, March 28, 2015 (Thousands) Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 5,340 $ 29,057 $ — $ 34,397 Service revenues 47,545 2,094 49,639 Total revenues $ 52,885 $ 31,151 $ — $ 84,036 Operating expenses Operating costs 38,713 31,001 — 69,714 Operating depreciation and amortization 1,727 1,864 — 3,591 Profit (loss) before corporate selling, general, and administrative expenses $ 12,445 $ (1,714 ) $ — $ 10,731 Selling, general, and administrative expenses 11,066 11,066 Depreciation and amortization from SG&A 742 742 Total selling, general, and administrative expenses $ 11,808 $ 11,808 Other income – net 99 99 Operating loss (978) Interest expense – net 554 554 Loss before income taxes $ (1,532 ) Total assets by segment as of March 26, 2016 and January 2, 2016 were as follows: (Thousands) March 26, 2016 January 2, 2016 Total Assets: Environmental Services $ 131,439 $ 133,718 Oil Business 132,237 132,556 Unallocated Corporate Assets 35,952 35,574 Total $ 299,628 $ 301,848 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 | 3 Months Ended |
Mar. 26, 2016 | |
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 $7.4 million as of March 26, 2016 , and $9.8 million as of January 2, 2016 , primarily for capital expenditures, solvent, and disposal. 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 March 26, 2016 and January 2, 2016 , the Company had accrued $5.5 million and $6.0 million , respectively, related to loss contingencies and other contingent liabilities. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 26, 2016 | |
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 2015. 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 March 26, 2016 was $52.5 million , and the remaining deferred tax asset related to the Company's state and federal NOL was a tax effected balance of $19.4 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 March 26, 2016 , 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 first quarter of fiscal 2016 was 33.4% compared to 41.3% in the first quarter of fiscal 2015 . The rate difference is principally attributable to the differing treatment for financial reporting and income tax reporting for certain expenditures. These expenditures are shown net of the anticipated reimbursement from an unrelated third party for financial reporting purposes, whereas for income tax purposes the expenditures are recorded on a gross basis. 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 $2.5 million for uncertain tax positions as of March 26, 2016 and January 2, 2016 . The gross unrecognized tax benefits would, if recognized, decrease the Company's effective tax rate. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 26, 2016 | |
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 March 26, 2016 , the number of shares available for issuance under the Plan was 582,101 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 2, 2016 534,428 $ 10.97 2.34 $ 224 Exercised — — Options outstanding at March 26, 2016 534,428 $ 10.97 2.11 $ 128 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 8, 2015, the Company granted 22,638 restricted shares for service in fiscal 2015 . In the second quarter of fiscal 2016, the Company will grant restricted shares to the Board of Directors for service in fiscal 2016. As of March 26, 2016 , there was $0.2 million unrecognized expense associated with these awards, which will be recorded throughout fiscal 2016 . Expense related to the Board of Directors' restricted stock in both the first quarter s of fiscal 2016 and 2015 was $0.1 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 $0.4 million and $0.5 million in unrecognized compensation expense remaining related to these awards as of March 26, 2016 and January 2, 2016, respectively. In each of the first quarter s of fiscal 2016 and 2015, approximately $0.1 million of compensation expense was recorded related to these awards. In February 2015, the Company granted certain members of management 38,372 restricted shares based on their services in fiscal 2014 and contingent upon the employee's continued employment with the Company. The restricted shares vest over a three year period starting January 1, 2016. As of March 26, 2016 and January 2, 2016, there was approximately $0.2 million in unrecognized compensation expense remaining related to these awards. In each of the first quarters of fiscal 2016 and fiscal 2015, less than $0.1 million was recorded as compensation expense related to these awards. In January 2016, the Company granted certain members of management 42,208 restricted shares based on their services in fiscal 2015 and contingent upon the employees' continued employment with the Company. The restricted shares vest over a period of approximately three years, beginning with the grant date in January 2016 and ending with the final vesting in January 2019. As of March 26, 2016 and January 2, 2016, there was approximately $0.3 million in unrecognized compensation expense remaining related to these awards. In each of the first quarters of fiscal 2016 and fiscal 2015, less than $0.1 million was recorded as compensation expense related to these awards. The following table summarizes information about restricted stock awards for the period ended March 26, 2016 : Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share Nonvested shares outstanding at January 2, 2016 91,529 $ 14.47 Granted 42,208 9.88 Nonvested shares outstanding at March 26, 2016 133,737 $ 13.02 Employee Stock Purchase Plan As of March 26, 2016 , the Company had reserved 83,811 shares of common stock available for purchase under the Employee Stock Purchase Plan of 2008 . In the first quarter of fiscal 2016 , employees purchased 12,173 shares of the Company’s common stock with a weighted average fair market value of $9.76 per share. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 26, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table reconciles the number of shares outstanding for the first quarter s of fiscal 2016 and 2015 , 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: First Quarter Ended, (Thousands, except per share data) March 26, 2016 March 28, 2015 Net loss $ (1,726 ) $ (900 ) Less: Income attributable to noncontrolling interest 42 41 Net loss attributable to Heritage-Crystal Clean, Inc. available to common stockholders $ (1,768 ) $ (941 ) Weighted average basic shares outstanding 22,225 22,119 Number of anti-dilutive potentially issuable shares excluded from diluted shares outstanding calculation 150 230 Net loss per share: basic $ (0.08 ) $ (0.04 ) Net loss per share: diluted $ (0.08 ) $ (0.04 ) |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 26, 2016 | |
Accounting Policies [Abstract] | |
Fiscal Period | The Company’s fiscal year ends on the Saturday closest to December 31. The most recent fiscal year ended on January 2, 2016 . Each of the Company's first three fiscal quarters consists of twelve weeks while the last fiscal quarter consists of sixteen or seventeen weeks. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with Generally Accepted Accounting Principles ("GAAP") requires the use of certain estimates by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting period. Significant items subject to such estimates and assumptions are the allowance for doubtful accounts receivable, valuation of inventory at lower of cost or market, valuation of goodwill and other intangible assets, and income taxes. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company derives its revenues primarily from the services it performs and from the sale of processed oil from its used oil re-refinery as well as the sale of recycled fuel oil. Parts cleaning and other service revenues are recognized as the service is performed. Product revenues are recognized at the time risk of loss passes to the customer. The risk of loss passes to customers at various times depending on the particular terms of the sales contract in force with each individual customer. Common thresholds for when risk of loss passes to the customer are at the time that product is loaded onto the shipping vessel or at the time that product is offloaded at the customer’s receiving location. Revenues are recognized only if collection of the relevant receivable is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. |
Operating Costs | Operating Costs Within operating costs are cost of sales. Cost of sales in the Environmental Services segment includes the costs of the materials the Company sells and provides in its services, such as solvents and other chemicals, cleaning machines sold to customers, transportation of inventory and waste, and payments to third parties to recycle or dispose of the waste materials that the Company collects. The Company’s used solvent that it retrieves from customers in its product reuse program is accounted for as a reduction in net cost of solvent under cost of sales, whether placed in inventory or sold to a purchaser for reuse. If the used solvent is placed in inventory it is recorded at lower of cost or net realizable value. Cost of sales in the Oil Business include transportation out to customers, and costs to operate the used oil re-refinery, including personnel costs and utilities. Operating costs also include the Company's costs of operating its branch system, hubs, waste water treatment, and antifreeze recycling facilities. These costs include personnel costs (including commissions), facility rent and utilities, truck leases, fuel, transportation, and maintenance. Operating costs are not presented separately for products and services. |
Inventory | Inventory 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 performs physical inventory counts on a periodic basis and uses the results of these counts to determine inventory quantities. The quantities are used to help determine the value of our inventory. The Company continually monitors its inventory levels at each of our distribution locations and evaluate 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. |
Acquisitions | Acquisitions The Company accounts for acquired businesses using the purchase method of accounting, which requires that the assets acquired, liabilities assumed, and contingent consideration be recorded at the date of acquisition at their respective fair values. It further requires that acquisition-related costs be recognized separately from the acquisition and expensed as incurred and restructuring costs to be expensed in periods subsequent to the acquisition date. The Company records a preliminary purchase price allocation for its acquisitions and finalizes purchase price allocations as additional information relative to the fair values of the assets acquired becomes known. |
Identifiable Intangible Assets | Identifiable Intangible Assets The fair value of identifiable intangible assets is based on significant judgments made by management. The Company has engaged third party valuation appraisal firms to assist the Company in determining the fair values and useful lives of the assets acquired. Such valuations and useful life determinations require the Company to make significant estimates and assumptions. These estimates and assumptions are based on historical experience and information obtained from the management of the acquired companies and also include, but are not limited to, future expected cash flows to be earned from the continued operation of the acquired business and discount rates applied in determining the present value of those cash flows. Unanticipated events and circumstances may occur that could affect the accuracy or validity of such assumptions, estimates, or actual results. Acquisition-related finite lived intangible assets are amortized on a straight-line basis over their estimated economic lives. The Company evaluates the estimated benefit periods and recoverability of its intangible assets when facts and circumstances indicate that the lives may not be appropriate and/or the carrying value of the asset may not be recoverable. If the carrying value is not recoverable, impairment is measured as the amount by which the carrying value exceeds its estimated fair value. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. These tiers include: Level 1, defined as quoted market prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3, defined as unobservable inputs that are not corroborated by market data. The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, trade payables, notes payable, and term debt. As of March 26, 2016 and January 2, 2016 , the carrying values of cash and cash equivalents, trade receivables, trade payables, and notes payable are considered to be representative of their respective fair values due to the short maturity of these instruments. Term debt is representative of its fair value due to the interest rates being applied. |
Goodwill | Goodwill Goodwill is measured as a residual amount as of the acquisition date, which in most cases results in measuring goodwill as an excess of the purchase consideration transferred plus the fair value of any noncontrolling interest in the acquiree over the fair value of the net assets acquired, including any contingent consideration. The Company tests goodwill for impairment annually in the fourth quarter and in interim periods if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company's determination of fair value requires certain assumptions and estimates, such as margin expectations, market conditions, growth expectations, expected changes in working capital, etc., regarding expected future profitability and expected future cash flows. The Company tests goodwill for impairment at each of its two reporting units, Environmental Services and Oil Business, and the Company does not aggregate reporting units for purposes of impairment testing. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In the first quarter of 2016, the Company adopted Accounting Standards Update No. 2015-03 “ Interest—Imputation of Interest (Subtopic 835-30) : Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt, and Accounting Standards Update No. 2015-15 “ Interest—Imputation of Interest (Subtopic 835-30) : Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”), which allows for the presentation of debt issuance costs as an asset regardless of whether or not there is an outstanding balance on the line-of-credit arrangement. The adoption of ASU 2015-03 resulted in the reclassification of $1.3 million and $1.4 million of unamortized debt issuance costs from "Other current assets" to "Term loan, less current maturities" as of March 26, 2016 and January 2, 2016, respectively. 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; early adoption is not permitted. 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 August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The adoption of ASU 2014-15 is not expected to have an impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. For public business entities, the standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For all other entities, the standard is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early application of the amendments in this update is permitted for all entities. The Company is currently evaluating the effect that implementation of ASU 2016-02 will have on its consolidated financial position and results of operations. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) : Improvements to Employee Share-Based Payment Accounting. The ASU addresses the simplification of accounting for employee share-based payment transactions as it pertains to income taxes, the classification of awards as equity or liabilities, accounting for forfeitures, statutory tax withholding requirements, and certain classifications on the statement of cash flows. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those periods, with early adoption permitted. The Company is currently evaluating the effect that implementation of ASU 2016-09 will have on its consolidated financial position and results of operations. |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the estimated fair values of the assets acquired related to the acquisition: (Thousands) Phoenix Environmental Services Accounts receivable $ 361 Inventory 27 Property, plant, & equipment 374 Equipment at customers 55 Intangible assets 710 Goodwill (a) 1,173 Total purchase price 2,700 Less: cash placed into escrow in Q2 2016 (300 ) Less: contingent consideration (300 ) Net cash paid $ 2,100 ______________ (a) Goodwill recognized from the acquisition of Phoenix 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 Phoenix Environmental and the Company, and the value of intangible assets that are not separately recognized, such as the assembled workforce. Goodwill of $1.2 million was assigned to the Environmental Services reporting unit. All goodwill is expected to be deductible for income tax purposes. Unaudited Pro Forma Financial Information The pro forma financial information in the table below presents the combined results of the Company as if the Phoenix Environmental acquisition that occurred in fiscal 2016 had occurred January 3, 2015 (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. First Quarter Ended, March 26, 2016 March 28, 2015 Total revenues $ 79,156 $ 84,811 Net income (loss) (1,808 ) (772 ) Income (loss) per share Basic $ (0.08 ) $ (0.04 ) Diluted (0.08 ) (0.04 ) |
Business Acquisition, Pro Forma Information | The pro forma financial information in the table below presents the combined results of the Company as if the Phoenix Environmental acquisition that occurred in fiscal 2016 had occurred January 3, 2015 (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. First Quarter Ended, March 26, 2016 March 28, 2015 Total revenues $ 79,156 $ 84,811 Net income (loss) (1,808 ) (772 ) Income (loss) per share Basic $ (0.08 ) $ (0.04 ) Diluted (0.08 ) (0.04 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable consisted of the following: (Thousands) March 26, January 2, Trade $ 39,585 $ 38,379 Less: allowance for doubtful accounts 2,051 2,207 Trade - net 37,534 36,172 Related parties 944 1,250 Other 3,413 4,170 Total accounts receivable - net $ 41,891 $ 41,592 The following table provides the changes in the Company’s allowance for doubtful accounts for the first quarter ended March 26, 2016 and the fiscal year ended January 2, 2016 : For the Quarter Ended, For the Fiscal Year Ended, (Thousands) March 26, January 2, Balance at beginning of period $ 2,207 $ 3,927 Balance acquired from FCC Environmental — 2,701 Bad debt provision (32 ) 1,009 Accounts written off, net of recoveries (124 ) (5,430 ) Balance at end of period $ 2,051 $ 2,207 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The carrying value of inventory consisted of the following: (Thousands) March 26, January 2, Used oil and processed oil $ 7,514 $ 9,045 Solvents and solutions 5,073 6,285 Machines 3,640 3,827 Drums and supplies 4,599 4,226 Other 1,746 1,681 Total inventory 22,572 25,064 Less: machine refurbishing reserve 319 290 Total inventory - net $ 22,253 $ 24,774 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant, and equipment consisted of the following: (Thousands) March 26, January 2, Buildings and storage tanks $ 69,415 $ 69,317 Machinery, vehicles, and equipment (a) 76,887 75,129 Leasehold improvements 4,573 4,523 Land 9,303 9,295 Construction in progress 5,509 4,474 Assets held for sale 199 189 Total property, plant and equipment 165,886 162,927 Less: accumulated depreciation (33,840 ) (31,562 ) Property, plant and equipment - net $ 132,046 $ 131,365 (Thousands) March 26, January 2, Equipment at customers (a) $ 60,154 $ 59,216 Less: accumulated depreciation (37,071 ) (36,044 ) Equipment at customers - net $ 23,083 $ 23,172 _______________ (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. |
Goodwill and Other Intangible26
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table shows changes to our goodwill balances by segment at January 2, 2016, and March 26, 2016: (Thousands) Oil Business Environmental Services Total Balance at January 2, 2016 $ — $ 30,325 $ 30,325 Phoenix Environmental acquisition — 1,173 1,173 Currency translation adjustments — 11 11 Balance at March 26, 2016 $ — $ 31,509 $ 31,509 |
Schedule of Intangible Assets | Following is a summary of software and other intangible assets: March 26, 2016 January 2, 2016 (Thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships $ 22,926 $ 4,886 $ 18,040 $ 22,202 $ 4,369 $ 17,833 Software 4,455 3,448 1,007 4,455 3,382 1,073 Non-compete agreements 2,936 1,827 1,109 2,930 1,713 1,217 Patents, formulae, and licenses 1,769 526 1,243 1,769 510 1,259 Other 1,349 587 762 1,354 534 820 Total software and intangible assets $ 33,435 $ 11,274 $ 22,161 $ 32,710 $ 10,508 $ 22,202 _______________ |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Operating segment results for the first quarter s ended March 26, 2016 , and March 28, 2015 were as follows: First Quarter Ended, March 26, 2016 (Thousands) Environmental Services Oil Business Corporate and Eliminations Consolidated Revenues Product revenues $ 5,029 $ 18,675 $ — $ 23,704 Service revenues 47,333 7,416 54,749 Total revenues $ 52,362 $ 26,091 $ — $ 78,453 Operating expenses Operating costs 36,806 27,441 — 64,247 Operating depreciation and amortization 1,714 1,580 — 3,294 Profit (loss) before corporate selling, general, and administrative expenses $ 13,842 $ (2,930 ) $ — $ 10,912 Selling, general, and administrative expenses 12,208 12,208 Depreciation and amortization from SG&A 834 834 Total selling, general, and administrative expenses $ 13,042 $ 13,042 Other income - net 58 58 Operating loss (2,072 ) Interest expense – net 518 518 Loss before income taxes $ (2,590 ) First Quarter Ended, March 28, 2015 (Thousands) Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 5,340 $ 29,057 $ — $ 34,397 Service revenues 47,545 2,094 49,639 Total revenues $ 52,885 $ 31,151 $ — $ 84,036 Operating expenses Operating costs 38,713 31,001 — 69,714 Operating depreciation and amortization 1,727 1,864 — 3,591 Profit (loss) before corporate selling, general, and administrative expenses $ 12,445 $ (1,714 ) $ — $ 10,731 Selling, general, and administrative expenses 11,066 11,066 Depreciation and amortization from SG&A 742 742 Total selling, general, and administrative expenses $ 11,808 $ 11,808 Other income – net 99 99 Operating loss (978) Interest expense – net 554 554 Loss before income taxes $ (1,532 ) |
Reconciliation of Assets from Segment to Consolidated | Total assets by segment as of March 26, 2016 and January 2, 2016 were as follows: (Thousands) March 26, 2016 January 2, 2016 Total Assets: Environmental Services $ 131,439 $ 133,718 Oil Business 132,237 132,556 Unallocated Corporate Assets 35,952 35,574 Total $ 299,628 $ 301,848 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Share-based Compensation [Abstract] | |
Summary of Stock Option 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 2, 2016 534,428 $ 10.97 2.34 $ 224 Exercised — — Options outstanding at March 26, 2016 534,428 $ 10.97 2.11 $ 128 |
Summary of Restricted Stock Activity | The following table summarizes information about restricted stock awards for the period ended March 26, 2016 : Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share Nonvested shares outstanding at January 2, 2016 91,529 $ 14.47 Granted 42,208 9.88 Nonvested shares outstanding at March 26, 2016 133,737 $ 13.02 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles the number of shares outstanding for the first quarter s of fiscal 2016 and 2015 , 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: First Quarter Ended, (Thousands, except per share data) March 26, 2016 March 28, 2015 Net loss $ (1,726 ) $ (900 ) Less: Income attributable to noncontrolling interest 42 41 Net loss attributable to Heritage-Crystal Clean, Inc. available to common stockholders $ (1,768 ) $ (941 ) Weighted average basic shares outstanding 22,225 22,119 Number of anti-dilutive potentially issuable shares excluded from diluted shares outstanding calculation 150 230 Net loss per share: basic $ (0.08 ) $ (0.04 ) Net loss per share: diluted $ (0.08 ) $ (0.04 ) |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | |
Mar. 26, 2016USD ($)reporting_unit | Jan. 02, 2016USD ($) | |
Accounting Policies [Abstract] | ||
Number of reporting units | reporting_unit | 2 | |
Other Current Assets [Member] | Accounting Standards Update 2015-03 [Member] | ||
Unamortized debt issuance costs | $ (1.3) | $ (1.4) |
Term loan, less current maturities [Member] | Accounting Standards Update 2015-03 [Member] | ||
Unamortized debt issuance costs | $ 1.3 | $ 1.4 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - Phoenix Environmental Services, Inc. [Member] $ in Thousands | Mar. 24, 2016USD ($) |
Business Acquisition [Line Items] | |
Purchase price subject to certain adjustments | $ 2,700 |
Cash placed into escrow | 300 |
Contingent consideration (up to) | $ 300 |
Business Combinations - Assets
Business Combinations - Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Mar. 24, 2016 | Mar. 26, 2016 | Mar. 28, 2015 | Jan. 02, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 31,509 | $ 30,325 | ||
Net cash paid | $ 2,100 | $ 0 | ||
Phoenix Environmental Services, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 361 | |||
Inventory | 27 | |||
Property, plant, & equipment | 374 | |||
Equipment at customers | 55 | |||
Intangible assets | 710 | |||
Goodwill | 1,173 | |||
Total purchase price | 2,700 | |||
Less: cash placed into escrow in Q2 2016 | (300) | |||
Less: contingent consideration | (300) | |||
Net cash paid | $ 2,100 |
Business Combinations - Unaudit
Business Combinations - Unaudited Pro Forma Financial Information (Details) - Phoenix Environmental Services, Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 79,156 | $ 84,811 |
Net income (loss) | $ (1,808) | $ (772) |
Income (loss) per share | ||
Basic (in dollars per share) | $ (0.08) | $ (0.04) |
Diluted (in dollars per share) | $ (0.08) | $ (0.04) |
Accounts Receivable - Accounts
Accounts Receivable - Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 26, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Accounts Receivable, Net [Abstract] | |||
Trade | $ 39,585 | $ 38,379 | |
Less: allowance for doubtful accounts | 2,051 | 2,207 | $ 3,927 |
Trade - net | 37,534 | 36,172 | |
Related parties | 944 | 1,250 | |
Other | 3,413 | 4,170 | |
Total accounts receivable - net | $ 41,891 | $ 41,592 |
Accounts Receivable - Allowance
Accounts Receivable - Allowance for Doubtful Accounts Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Jan. 02, 2016 | Jan. 03, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance at beginning of period | $ 2,051 | $ 2,207 | $ 3,927 | |
Balance acquired from FCC Environmental | 0 | 2,701 | ||
Bad debt provision | (32) | $ 359 | 1,009 | |
Accounts written off, net of recoveries | (124) | (5,430) | ||
Balance at end of period | $ 2,051 | $ 2,207 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Jan. 02, 2016 | |
Inventory Disclosure [Abstract] | |||
Used oil and processed oil | $ 7,514 | $ 9,045 | |
Solvents and solutions | 5,073 | 6,285 | |
Machines | 3,640 | 3,827 | |
Drums and supplies | 4,599 | 4,226 | |
Other | 1,746 | 1,681 | |
Total inventory | 22,572 | 25,064 | |
Less: machine refurbishing reserve | 319 | 290 | |
Total inventory - net | 22,253 | $ 24,774 | |
Inventory write-down | $ 1,465 | $ 2,601 |
Property, Plant, and Equipmen37
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Jan. 02, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Buildings and storage tanks | $ 69,415 | $ 69,317 | |
Machinery, vehicles, and equipment | 76,887 | 75,129 | |
Leasehold improvements | 4,573 | 4,523 | |
Land | 9,303 | 9,295 | |
Construction in progress | 5,509 | 4,474 | |
Assets held for sale | 199 | 189 | |
Total property, plant and equipment | 165,886 | 162,927 | |
Less: accumulated depreciation | (33,840) | (31,562) | |
Property, plant and equipment - net | 132,046 | 131,365 | |
Equipment at customers | 60,154 | 59,216 | |
Less: accumulated depreciation | (37,071) | (36,044) | |
Equipment at customers - net | 23,083 | $ 23,172 | |
Depreciation expense | $ 3,400 | $ 3,800 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 26, 2016USD ($)reporting_unit | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Number of reporting units | reporting_unit | 2 |
Goodwill [Roll Forward] | |
Beginning Balance | $ 30,325 |
Phoenix Environmental acquisition | 1,173 |
Currency translation adjustments | 11 |
Ending Balance | 31,509 |
Oil Business Segment [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance | 0 |
Phoenix Environmental acquisition | 0 |
Currency translation adjustments | 0 |
Ending Balance | 0 |
Environmental Services Segment [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance | 30,325 |
Phoenix Environmental acquisition | 1,173 |
Currency translation adjustments | 11 |
Ending Balance | $ 31,509 |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Jan. 02, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 33,435 | $ 32,710 | |
Accumulated Amortization | 11,274 | 10,508 | |
Net Carrying Amount | 22,161 | 22,202 | |
Amortization of intangible assets | 800 | $ 500 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
2,016 | 2,500 | ||
2,017 | 3,100 | ||
2,018 | 2,900 | ||
2,019 | 2,600 | ||
2,020 | 2,500 | ||
Customer & supplier relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 22,926 | 22,202 | |
Accumulated Amortization | 4,886 | 4,369 | |
Net Carrying Amount | $ 18,040 | 17,833 | |
Useful life | 11 years | ||
Software [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 4,455 | 4,455 | |
Accumulated Amortization | 3,448 | 3,382 | |
Net Carrying Amount | $ 1,007 | 1,073 | |
Useful life | 10 years | ||
Non-compete agreements [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 2,936 | 2,930 | |
Accumulated Amortization | 1,827 | 1,713 | |
Net Carrying Amount | $ 1,109 | 1,217 | |
Useful life | 5 years | ||
Patents, formulae, and licenses [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,769 | 1,769 | |
Accumulated Amortization | 526 | 510 | |
Net Carrying Amount | $ 1,243 | 1,259 | |
Useful life | 15 years | ||
Other Intangible Assets [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,349 | 1,354 | |
Accumulated Amortization | 587 | 534 | |
Net Carrying Amount | $ 762 | $ 820 | |
Useful life | 6 years |
Debt And Financing Arrangemen40
Debt And Financing Arrangements (Details) - USD ($) | 3 Months Ended | |||
Mar. 26, 2016 | Mar. 28, 2015 | Jan. 02, 2016 | Oct. 16, 2014 | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 70,900,000 | |||
Interest costs capitalized (less than) | $ 0 | $ 150,000 | ||
Letters of credit outstanding | 3,000,000 | 4,400,000 | ||
Current borrowing capacity | $ 21,400,000 | 34,500,000 | ||
Weighted average interest rate | 3.50% | 3.20% | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility amount outstanding | 0 | |||
Interest costs incurred | $ 600,000 | $ 400,000 | ||
Interest costs capitalized (less than) | 100,000 | $ 200,000 | ||
Line of Credit [Member] | Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 140,000,000 | |||
Long-term debt | 70,900,000 | |||
Line of credit facility amount outstanding | 0 | |||
Unamortized debt issuance costs | $ 1,300,000 | $ 1,400,000 |
Segment Information - Operating
Segment Information - Operating Segment Results (Details) $ in Thousands | 3 Months Ended | |
Mar. 26, 2016USD ($)segment | Mar. 28, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Operating Segments | segment | 2 | |
Revenues | ||
Product revenues | $ 23,704 | $ 34,397 |
Service revenues | 54,749 | 49,639 |
Total revenues | 78,453 | 84,036 |
Operating expenses | ||
Operating costs | 64,247 | 69,714 |
Operating depreciation and amortization | 3,294 | 3,591 |
Profit (loss) before corporate selling, general, and administrative expenses | 10,912 | 10,731 |
Selling, general, and administrative expenses | 12,208 | 11,066 |
Depreciation and amortization from SG&A | 834 | 742 |
Total selling, general, and administrative expenses | 13,042 | 11,808 |
Other income - net | 58 | 99 |
Operating loss | (2,072) | (978) |
Interest expense – net | 518 | 554 |
Loss before income taxes | (2,590) | (1,532) |
Corporate and Eliminations [Member] | ||
Revenues | ||
Product revenues | $ 0 | $ 0 |
Service revenues | ||
Total revenues | $ 0 | $ 0 |
Operating expenses | ||
Operating costs | 0 | 0 |
Operating depreciation and amortization | 0 | 0 |
Profit (loss) before corporate selling, general, and administrative expenses | 0 | 0 |
Selling, general, and administrative expenses | 12,208 | 11,066 |
Depreciation and amortization from SG&A | 834 | 742 |
Total selling, general, and administrative expenses | 13,042 | 11,808 |
Other income - net | 58 | 99 |
Interest expense – net | 518 | 554 |
Environmental Services Segment [Member] | Operating Segments [Member] | ||
Revenues | ||
Product revenues | 5,029 | 5,340 |
Service revenues | 47,333 | 47,545 |
Total revenues | 52,362 | 52,885 |
Operating expenses | ||
Operating costs | 36,806 | 38,713 |
Operating depreciation and amortization | 1,714 | 1,727 |
Profit (loss) before corporate selling, general, and administrative expenses | 13,842 | 12,445 |
Oil Business Segment [Member] | Operating Segments [Member] | ||
Revenues | ||
Product revenues | 18,675 | 29,057 |
Service revenues | 7,416 | 2,094 |
Total revenues | 26,091 | 31,151 |
Operating expenses | ||
Operating costs | 27,441 | 31,001 |
Operating depreciation and amortization | 1,580 | 1,864 |
Profit (loss) before corporate selling, general, and administrative expenses | $ (2,930) | $ (1,714) |
Segment Information - Assets by
Segment Information - Assets by Segment (Details) - USD ($) $ in Thousands | Mar. 26, 2016 | Jan. 02, 2016 |
Segment Reporting Information [Line Items] | ||
Assets | $ 299,628 | $ 301,848 |
Operating Segments [Member] | Environmental Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 131,439 | 133,718 |
Operating Segments [Member] | Oil Business Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 132,237 | 132,556 |
Unallocated Corporate Assets [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 35,952 | $ 35,574 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | Mar. 26, 2016 | Jan. 02, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Remaining minimum amount committed | $ 7.4 | $ 9.8 |
Loss contingency accrual | $ 5.5 | $ 6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 26, 2016 | Mar. 28, 2015 | Jan. 02, 2016 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ||||
Net operating loss | $ 52.5 | $ 44.7 | ||
Gross deferred tax asset | 19.4 | |||
Excess tax benefits from share-based compensation | $ 2.5 | |||
Effective tax rate | 33.40% | 41.30% | ||
Reserve balance | $ 2.5 | $ 1.9 |
Share-based Compensation - Stoc
Share-based Compensation - Stock Option Awards Vesting Schedule (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 26, 2016 | Jan. 02, 2016 | |
Share-based Compensation [Abstract] | ||
Number of shares authorized | 1,902,077 | |
Number of shares available for grant | 582,101 | |
Number of Options Outstanding | ||
Options outstanding at January 2, 2016 | 534,428 | |
Exercised | 0 | |
Options outstanding at March 26, 2016 | 534,428 | 534,428 |
Weighted Average Exercise Price | ||
Options outstanding at January 2, 2016 (in USD per share) | $ 10.97 | |
Exercised (in USD per share) | 0 | |
Options outstanding at March 26, 2016 (in USD per share) | $ 10.97 | $ 10.97 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (in years) | 2 years 1 month 10 days | 2 years 4 months 2 days |
Aggregate intrinsic value as of date listed | $ 128 | $ 224 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock Compensation/Awards (Details) - USD ($) | May. 08, 2015 | Jan. 31, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | Mar. 26, 2016 | Mar. 28, 2015 | Jan. 02, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 42,208 | ||||||
Director [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 1 year | ||||||
2015 Board of Director Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | $ 100,000 | ||||||
2015 Board of Director Stock [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation (in shares) | 22,638 | ||||||
Unrecognized compensation expense | $ 200,000 | ||||||
Allocated share-based compensation expense | 100,000 | ||||||
2013 Long Term Incentive Plan [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 3 years | ||||||
Unrecognized compensation expense | 400,000 | $ 500,000 | |||||
Allocated share-based compensation expense | 100,000 | 0 | |||||
Granted (in shares) | 132,107 | ||||||
2014 Service Grant [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 3 years | ||||||
Unrecognized compensation expense | 200,000 | 200,000 | |||||
Allocated share-based compensation expense | 100,000 | 100,000 | |||||
Granted (in shares) | 38,372 | ||||||
2015 Service Grant [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 3 years | ||||||
Unrecognized compensation expense | 300,000 | $ 300,000 | |||||
Allocated share-based compensation expense | $ 100,000 | $ 100,000 | |||||
Restricted shares granted in the period (in shares) | 42,208 |
Share-based Compensation - Nonv
Share-based Compensation - Nonvested Restricted Stock (Details) | 3 Months Ended |
Mar. 26, 2016$ / sharesshares | |
Number of Shares | |
Nonvested shares outstanding at January 2, 2016 | shares | 91,529 |
Granted | shares | 42,208 |
Nonvested shares outstanding at March 26, 2016 | shares | 133,737 |
Weighted Average Grant-Date Fair Value Per Share | |
Nonvested shares outstanding at January 2, 2016 (in USD per share) | $ / shares | $ 14.47 |
Granted (in USD per share) | $ / shares | 9.88 |
Nonvested shares outstanding at March 26, 2016 (in USD per share) | $ / shares | $ 13.02 |
Share-based Compensation - Empl
Share-based Compensation - Employee Stock Purchase Plan (Details) | 3 Months Ended |
Mar. 26, 2016$ / sharesshares | |
Common Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance of common stock - ESPP (in shares) | 12,173 |
Employee Stock Purchase Plan of 2008 [Member] | Employee Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available under employee stock purchase plan (in shares) | 83,811 |
Weighted average fair value per share ESPP (in USD per share) | $ / shares | $ 9.76 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (1,726) | $ (900) |
Less: Income attributable to noncontrolling interest | 42 | 41 |
Net loss attributable to Heritage-Crystal Clean, Inc. available to common stockholders | $ (1,768) | $ (941) |
Weighted average basic shares outstanding (in shares) | 22,225,000 | 22,119,000 |
Number of anti-dilutive potentially issuable shares excluded from diluted shares outstanding calculation (in shares) | 150 | 230 |
Net loss per share: basic (in USD per share) | $ (0.08) | $ (0.04) |
Net loss per share: diluted (in USD per share) | $ (0.08) | $ (0.04) |