Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 27, 2020 | Jun. 14, 2019 | |
Document and Entity [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 28, 2019 | ||
Entity Registrant Name | HERITAGE-CRYSTAL CLEAN, INC. | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 380.2 | ||
Entity Common Stock, Shares Outstanding | 23,959,152 | ||
Entity Central Index Key | 0001403431 | ||
Current Fiscal Year End Date | --12-19 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 60,694 | $ 43,579 |
Accounts receivable - net | 55,586 | 51,744 |
Inventory - net | 29,373 | 33,059 |
Other current assets | 7,104 | 6,835 |
Total current assets | 152,757 | 135,217 |
Property, plant and equipment - net | 154,911 | 139,987 |
Right-of-use assets | 89,525 | |
Equipment at customers - net | 24,232 | 23,814 |
Software and intangible assets - net | 16,892 | 14,681 |
Goodwill | 32,997 | 34,123 |
Total assets | 471,314 | 347,822 |
Current liabilities: | ||
Accounts payable | 38,058 | 32,630 |
Current portion of lease liabilities | 20,407 | |
Contract liabilities - net | 2,252 | 166 |
Accrued salaries, wages, and benefits | 6,771 | 6,024 |
Taxes payable | 6,538 | 6,120 |
Other current liabilities | 16,418 | 5,089 |
Total current liabilities | 90,444 | 50,029 |
Lease liabilities, net of current portion | 68,734 | |
Long-term debt, less current maturities | 29,348 | 29,046 |
Deferred income taxes | 17,157 | 14,516 |
Total liabilities | 205,683 | 93,591 |
Commitments and contingencies (Note 14) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock - 26,000,000 shares authorized at 0.01 par value, 23,191,498 and 23,058,584 shares issued and outstanding at December 28, 2019 and December 29, 2018, respectively | 232 | 231 |
Additional paid-in capital | 200,583 | 197,533 |
Retained earnings | 64,182 | 55,819 |
Total Heritage-Crystal Clean, Inc. stockholders' equity | 264,997 | 253,583 |
Noncontrolling interest | 634 | 648 |
Total equity | 265,631 | 254,231 |
Total liabilities and stockholders' equity | $ 471,314 | $ 347,822 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 26,000,000 | 26,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 23,191,498 | 23,058,584 |
Common stock, shares outstanding | 23,191,498 | 23,058,584 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 07, 2019 | Jun. 15, 2019 | Mar. 23, 2019 | Sep. 08, 2018 | Jun. 16, 2018 | Mar. 24, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenues | |||||||||||
Revenues | $ 104,841 | $ 105,000 | $ 95,772 | $ 99,674 | $ 100,303 | $ 83,147 | $ 138,814 | $ 127,059 | $ 444,427 | $ 410,183 | $ 365,957 |
Rental income | 5,657 | 5,762 | 3,548 | 0 | 0 | 0 | 7,696 | 0 | 22,663 | ||
Operating expenses | |||||||||||
Operating costs | 80,117 | 78,849 | 82,483 | 76,045 | 76,272 | 68,386 | 108,154 | 102,462 | 349,603 | 323,165 | 276,102 |
Selling, general, and administrative expenses | 11,241 | 11,042 | 12,396 | 10,641 | 11,522 | 11,022 | 15,545 | 14,529 | 50,224 | 47,714 | 47,401 |
Depreciation and amortization | 3,980 | 4,061 | 4,136 | 3,776 | 3,659 | 3,643 | 6,072 | 5,079 | 18,249 | 16,157 | 17,967 |
Other expense (income) - net | 1,021 | 1,514 | (58) | 253 | 341 | 389 | 11,013 | 623 | 13,490 | 1,606 | (10,940) |
Operating income | 8,482 | 9,534 | (3,185) | 8,959 | 8,509 | (293) | (1,970) | 4,366 | 12,861 | 21,541 | 35,427 |
Interest expense – net | 180 | 219 | 230 | 256 | 240 | 245 | 240 | 310 | 869 | 1,052 | 1,094 |
Income before income taxes | 8,302 | 9,315 | (3,415) | 8,703 | 8,269 | (538) | (2,210) | 4,056 | 11,992 | 20,489 | 34,333 |
Provision for income taxes | 2,246 | 2,151 | (986) | 2,284 | 2,149 | (436) | (168) | 1,455 | 3,243 | 5,451 | 5,923 |
Net income | 6,056 | 7,164 | (2,429) | 6,419 | 6,120 | (102) | (2,042) | 2,601 | 8,749 | 15,038 | 28,410 |
Income attributable to noncontrolling interest | 87 | 108 | 83 | 74 | 121 | 18 | 108 | 97 | 386 | 310 | 287 |
Income attributable to Heritage-Crystal Clean, Inc. common stockholders | $ 5,969 | $ 7,056 | $ (2,512) | $ 6,345 | $ 5,999 | $ (120) | $ (2,150) | $ 2,504 | $ 8,363 | $ 14,728 | $ 28,123 |
Net income per share: basic (in dollars per share) | $ 0.26 | $ 0.30 | $ (0.11) | $ 0.28 | $ 0.26 | $ (0.01) | $ (0.09) | $ 0.11 | $ 0.36 | $ 0.64 | $ 1.24 |
Net income per share: diluted (in dollars per share) | $ 0.25 | $ 0.30 | $ (0.11) | $ 0.27 | $ 0.26 | $ (0.01) | $ (0.09) | $ 0.11 | $ 0.36 | $ 0.63 | $ 1.23 |
Number of weighted average shares outstanding: basic | 23,185 | 23,137 | 23,117 | 23,048 | 23,029 | 22,962 | 23,190 | 23,056 | 23,160 | 23,026 | 22,662 |
Number of weighted average shares outstanding: diluted | 23,421 | 23,368 | 23,117 | 23,404 | 23,361 | 22,962 | 23,190 | 23,411 | 23,398 | 23,334 | 22,922 |
Service revenues | |||||||||||
Revenues | |||||||||||
Revenues | $ 57,220 | $ 57,936 | $ 56,366 | $ 58,054 | $ 60,014 | $ 54,137 | $ 78,969 | $ 78,057 | $ 250,491 | $ 250,262 | $ 233,999 |
Product revenues | |||||||||||
Revenues | |||||||||||
Revenues | $ 41,964 | $ 41,302 | $ 35,858 | $ 41,620 | $ 40,289 | $ 29,010 | $ 52,149 | $ 49,002 | $ 171,273 | $ 159,921 | $ 131,958 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid–in Capital | Retained Earnings | Total Heritage-Crystal Clean, Inc. Stockholders' Equity | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2016 | 22,300,007 | |||||
Beginning balance at Dec. 31, 2016 | $ 198,269 | $ 223 | $ 185,099 | $ 12,227 | $ 197,549 | $ 720 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 28,410 | 28,123 | 28,123 | 287 | ||
Distribution | (309) | (309) | ||||
Issuance of common stock – ESPP (in shares) | 26,153 | |||||
Issuance of common stock – ESPP | 402 | 402 | 402 | |||
Exercise of stock options (in shares) | 491,619 | |||||
Exercise of stock options | 5,464 | $ 5 | 5,459 | 5,464 | ||
Share-based compensation (in shares) | 73,895 | |||||
Share-based compensation | 2,681 | $ 1 | 2,680 | 2,681 | ||
Ending balance (in shares) at Dec. 30, 2017 | 22,891,674 | |||||
Share repurchases to satisfy tax withholding obligations at Dec. 30, 2017 | 235,926 | $ 229 | 193,640 | 41,359 | 235,228 | 698 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 15,038 | 14,728 | 14,728 | 310 | ||
Distribution | (360) | (360) | ||||
Issuance of common stock – ESPP (in shares) | 20,764 | |||||
Issuance of common stock – ESPP | $ 422 | 422 | 422 | |||
Exercise of stock options (in shares) | 16,675 | 16,675 | ||||
Exercise of stock options | $ 122 | 122 | 122 | |||
Share-based compensation (in shares) | 129,471 | |||||
Share-based compensation | 4,381 | $ 2 | 4,379 | 4,381 | ||
Share repurchases to satisfy tax withholding obligations | $ (1,030) | (1,030) | (1,030) | |||
Ending balance (in shares) at Dec. 29, 2018 | 23,058,584 | 23,058,584 | ||||
Share repurchases to satisfy tax withholding obligations at Dec. 29, 2018 | $ 254,231 | $ 231 | 197,533 | 55,819 | 253,583 | 648 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 8,749 | 8,363 | 8,363 | 386 | ||
Distribution | (400) | (400) | ||||
Issuance of common stock – ESPP (in shares) | 19,677 | |||||
Issuance of common stock – ESPP | $ 483 | 483 | 483 | |||
Exercise of stock options (in shares) | 2,760 | 2,760 | ||||
Exercise of stock options | $ 20 | 20 | 20 | |||
Share-based compensation (in shares) | 110,477 | |||||
Share-based compensation | 3,976 | $ 1 | 3,975 | 3,976 | ||
Share repurchases to satisfy tax withholding obligations | $ (1,428) | (1,428) | (1,428) | |||
Ending balance (in shares) at Dec. 28, 2019 | 23,191,498 | 23,191,498 | ||||
Share repurchases to satisfy tax withholding obligations at Dec. 28, 2019 | $ 265,631 | $ 232 | $ 200,583 | $ 64,182 | $ 264,997 | $ 634 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from Operating Activities: | |||
Net income | $ 8,749 | $ 15,038 | $ 28,410 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation and amortization | 18,249 | 16,157 | 17,967 |
Net (gain) on disposition of assets | 0 | 0 | (2,680) |
Provision for class action settlement | 11,000 | 0 | 0 |
Bad debt provision | 1,486 | 628 | 402 |
Share-based compensation | 3,976 | 4,381 | 3,036 |
Deferred taxes | 2,641 | 4,960 | 5,251 |
Other, net | 678 | 321 | 624 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | (5,118) | (5,923) | 1,627 |
Decrease (increase) in inventory | 4,025 | (11,158) | (3,081) |
(Increase) decrease in prepaid and other current assets | (267) | (940) | 198 |
Increase (decrease) in accounts payable | 3,921 | 6,002 | (4,912) |
Increase (decrease) in accrued expenses | 3,914 | 606 | (1,511) |
Cash provided by operating activities | 53,254 | 30,072 | 45,331 |
Cash flows from Investing Activities: | |||
Capital expenditures | (31,293) | (22,820) | (14,400) |
Proceeds from the disposal of assets | 0 | 89 | 4,392 |
Business acquisitions, net of cash acquired | (3,521) | (4,805) | 0 |
Cash used in investing activities | (34,814) | (27,536) | (10,008) |
Cash flows from Financing Activities: | |||
Payments of Term Loan | 0 | 0 | (64,195) |
Proceeds of Term Loan | 0 | 0 | 30,000 |
Proceeds from the exercise of stock options | 20 | 122 | 5,464 |
Proceeds under revolving credit facility | 0 | 0 | 4,000 |
Payments of revolving credit facility | 0 | 0 | (4,000) |
Payments of debt issuance costs | 0 | 0 | (1,051) |
Proceeds from the issuance of common stock | 483 | 422 | 402 |
Share repurchases to satisfy tax withholding obligations | (1,428) | (1,030) | (355) |
Distributions to noncontrolling interest | (400) | (360) | (309) |
Cash used in financing activities | (1,325) | (846) | (30,044) |
Net increase in cash and cash equivalents | 17,115 | 1,690 | 5,279 |
Cash and cash equivalents, beginning of period | 43,579 | 41,889 | 36,610 |
Cash and cash equivalents, end of period | 60,694 | 43,579 | 41,889 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 1,207 | 933 | 485 |
Cash paid for interest | 1,254 | 1,154 | 1,129 |
Supplemental disclosure of non-cash information: | |||
Payables for construction in progress | 2,575 | 1,413 | 386 |
Provision for class action settlement | $ 11,000 | $ 0 | $ 0 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 28, 2019 | |
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”), provide parts cleaning, hazardous and non-hazardous containerized waste, used oil collection, vacuum, antifreeze recycling and field services primarily to small and mid-sized industrial and vehicle maintenance customers. The Company owns and operates a used oil re-refinery where it re-refines used oils and sells high quality base oil for lubricants as well as other re-refinery products. The Company also has multiple locations where it dehydrates used oil. The oil processed at these locations is sold as recycled fuel oil. The Company also operates multiple wastewater treatment plants and antifreeze recycling facilities at which it produces virgin-quality antifreeze. 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 has two reportable segments: "Environmental Services" and "Oil Business." The Environmental Services segment consists of the Company's parts cleaning, containerized waste management, vacuum truck services, antifreeze recycling activities, and field services. The Oil Business segment consists of the Company's used oil collection, recycled fuel oil sales, used oil re-refining activities, and used oil filter removal and disposal services. No customer represented greater than 10% of consolidated revenues for any of the periods presented. There were no intersegment revenues. The Environmental Services segment operates in the United States and, to an immaterial degree, in Ontario, Canada. As such, the Company is not disclosing operating results by geographic segment. Our fiscal year ends on the Saturday closest to December 31. "Fiscal 2019" represents the 52-week period ended December 28, 2019. "Fiscal 2018" represents the 52-week period ended December 29, 2018. "Fiscal 2017" represents the 52-week period ended December 30, 2017. The most recent fiscal year ended on December 28, 2019. 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, absorbent, accessories, and antifreeze; service revenues include servicing of parts cleaning machines, drum waste removal services, vacuum truck services, field services, and other services. In the Company's Oil Business segment, product revenues primarily include sales of re-refined base oil, re-refinery co-products and recycled fuel oil; service revenues include revenues from used oil collection activities, collecting and disposing of waste water and removal and disposal of used oil filters. 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 | 12 Months Ended |
Dec. 28, 2019 | |
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 revenues 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 net realizable value, valuation of goodwill and other intangible assets, share-based compensation, and income taxes. Actual results could differ from those estimates. Revenue Recognition See description of our revenue accounting policy in Footnote 4. Sales Tax Amounts billed for sales tax, value added tax, or other transactional taxes imposed on revenue producing transactions are presented on a net basis and are not recognized as revenues. Operating Costs Within operating costs are cost of sales. Cost of sales in the Environmental Services segment includes the cost of the materials the Company sells and provides in its services, such as solvents and other chemicals, transportation of inventory and waste, and payments to third parties to recycle or dispose of a portion of the waste materials the Company collects. Parts cleaning machines are either sold to a customer or continue to be owned by the Company but placed offsite at a customer location to be used in parts cleaning services. When sold to a customer, machines are removed from inventory, and the costs are recognized under operating costs. The used solvent that the Company 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 the costs paid to customers for used oil (if any), transportation out to customers, and costs to operate the used oil re-refinery, including utilities. Operating costs also include the Company's costs of operating its branch system and hubs. These costs include personnel costs, facility rent and utilities, truck leases, fuel, transportation, and maintenance. Operating costs are not presented separately for products and services. Selling, General, and Administrative Expenses Selling, general, and administrative expenses include costs of performing centralized business functions, including sales management at or above the regional level, billing, receivables management, accounting and finance, information technology, environmental health and safety, human resources and legal. Cash and Cash Equivalents The Company considers highly liquid investments, purchased with an original maturity of ninety days or less, to be cash equivalents. Included in cash and cash equivalents are $0.1 million and $0.2 million of cash on deposit outside the United States of America as of December 28, 2019 and December 29, 2018, respectively. Concentration Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution in the United States of America are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. The Company had cash deposits in excess of the FDIC insured limit of $60.4 million and $43.4 million at December 28, 2019 and December 29, 2018, respectively. The Company has not experienced any losses in such accounts. The Company has a broad customer base and believes it is not exposed to any significant concentration of credit risk. Accounts Receivable Trade accounts receivable represent amounts due from customers. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable. The Company determines the allowance based on analysis of customer credit worthiness, historical losses, and general economic trends and conditions. Accounts receivable are written off once the Company determines the account to be uncollectible. The Company does not have any off-balance-sheet credit exposure related to its customers. Inventory Inventory consists primarily of used oil, processed oil, catalyst, new and used solvents, new and refurbished parts cleaning machines, new and used antifreeze products, drums, and other items. Inventories are valued at the lower of first-in, first-out ("FIFO") cost or net realizable value, net of any reserves for excess, obsolete, or unsalable inventory. The Company performs a physical inventory count on a periodic basis and uses the results of these counts to determine inventory quantities. These quantities are used to help determine the value of the inventory. Processed oil inventory consists of the costs of feedstock, transportation, labor, conversion costs, and re-refining overhead costs incurred in bringing the inventory to its existing condition and location. Fixed production overhead costs are capitalized in processed oil inventory based on the normal capacity of the production facility. In periods of abnormal production levels, excess overhead costs are recognized as expense in the period they are incurred. The Company continually monitors its inventory levels at each of its distribution 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 fiscal years 2019 and 2018 the Company did not incur inventory write-downs. Prepaid and Other Current Assets Prepaid and other current assets include, but are not limited to, insurance and vehicle license contract costs, which are expensed over the term of the underlying contract. Property, Plant, and Equipment Property, plant, and equipment are stated at cost. Expenditures for major renewals and improvements are capitalized, while expenditures for repair and maintenance charges are expensed as incurred. Property, plant, and equipment acquired in business combinations is stated at fair value as of the date of the acquisition. Depreciation of property, plant, and equipment is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of buildings and storage tanks range from 10 to 39 years. The estimated useful lives of machinery, vehicles, and equipment range from 3 to 25 years. Leasehold improvements are amortized over the shorter of the lease terms or five years using the straight-line method. The Company capitalizes interest on borrowings during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and is amortized over the useful lives of the assets once the assets are placed into service. The interest rate used to capitalize interest is based upon the borrowing rate on the Company's bank debt outstanding. In fiscal years 2019, 2018 and 2017, the Company capitalized no interest for capital projects. Equipment at Customers The Company records purchases of new parts cleaning and aqua filtration machines as inventory. Parts cleaning machines are either sold to a customer or continue to be owned by the Company but placed at a customer location to be used in parts cleaning services. Aqua filtration machines are exclusively placed at a customer location to be used to filter customer fluids. When sold to a customer, machines are removed from inventory, and the appropriate revenues and costs are recognized in the Income Statement. When the Company retains title to a machine that is placed off-site at a customer location to be used in parts cleaning or aqua filtration services, the Company capitalizes the machine as a productive non-current asset under the Balance Sheet caption “Equipment at Customers” at the time the machine is placed at the customer’s site. Machines capitalized as Equipment at Customers are depreciated over their estimated useful lives of 7 to 15 years, depending on the model. Depreciation of in-service equipment commences when equipment is placed in service at a customer location. Expenditures for machines that are sold to a customer are treated as a cash outflow from operating activities on the Statement of Cash Flows. Expenditures for machines that are placed at a customer’s site to be used in parts cleaning services are treated as a cash outflow from investing activities. 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 as of 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 that restructuring costs be expensed in periods subsequent to the acquisition date. In many cases, the Company engaged third party valuation appraisal firms to assist the Company in determining the fair values and useful lives of the assets acquired and liabilities assumed. The Company records a preliminary purchase price allocation for its acquisitions and finalizes purchase price allocations at the earlier of one year after acquisition date, or 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 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 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. There were no impairment charges in fiscal 2019 or fiscal 2018. Software Costs The Company expenses costs incurred in the research stage of developing or acquiring internal use software, such as research and feasibility studies, as well as costs incurred in the post-implementation/operational stage, such as maintenance and training. Capitalization of software costs occurs only after the research stage is complete and after the development stage begins. The capitalized costs are amortized on a straight-line basis over the estimated useful lives of the software, ranging from 5 to 10 years. Impairment of Long-Lived Assets Long-lived assets, such as property and equipment and intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset. There were no impairment charges in fiscal 2019 or in fiscal 2018. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. Income Taxes The Company accounts for income taxes to recognize the amount of taxes payable or refundable for the current year and the amount of deferred tax assets and liabilities resulting from the future tax consequences of differences between the financial statements and tax basis of the respective assets and liabilities. The Company estimates and reserves for any material uncertain tax position that is unlikely to withstand an audit by the taxing authorities. These estimates are based on judgments made with currently available information. The Company reviews these estimates and makes changes to recorded amounts of any uncertain tax positions as facts and circumstances warrant. For additional information about income taxes, see Note 15. Shipping Costs For all periods presented, amounts billed to customers related to shipping and handling are classified as revenue, and the Company's shipping and handling costs are included in operating costs. Research and Development Research and development costs are expensed as incurred within general, selling, and administrative expenses. Such costs incurred during fiscal 2019, 2018, and 2017 were $0.2 million, $0.4 million, and $0.5 million, respectively. Advertising Costs Advertising costs are expensed as incurred. Advertising expense was $0.4 million, $0.4 million, and $0.5 million for fiscal 2019, 2018, and 2017, respectively. Share-Based Compensation When a future restricted grant is approved, the Company evaluates the probability that the award will be granted, based on certain performance conditions. If satisfaction of the performance criteria is deemed probable, the Company accrues compensation expense related to these awards prior to the grant date. The Company accrues compensation expense based on the fair value of the performance awards at each reporting period when the performance criteria are deemed probable. Once the performance awards have been granted, the Company values the awards at fair value on the date of grant and amortizes the expense through the end of the vesting period, or requisite service period, on a straight-line basis. The requisite service period is a function of the service condition defined for each award on a case by case basis. See Note 16 “Share-Based Compensation” for more details. 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 December 28, 2019 and December 29, 2018, 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. Insurance and Self-Insurance Policy The Company purchases insurance providing financial protection from a range of risks; as of the end of fiscal 2019, the Company's insurance policies provided coverage for general liability, vehicle liability, and pollution liability, among other exposures. Each of these policies contains exclusions and limitations such that they would not cover all related exposures and each of these policies have maximum coverage limits and deductibles such that even in the event of an insured claim, the Company's net exposure could still have a material adverse effect on its financial results. The Company is self-insured for certain healthcare benefits provided to its employees. The liability for the self-insured benefits is limited by the purchase of stop-loss insurance. The stop-loss coverage provides payment for medical and prescription claims exceeding $300,000 per covered person, as well as an aggregate, cumulative claims cap for any given year. Accruals for losses are made based on the Company's claim experience and actuarial estimates based on historical data. Actual losses may differ from accrued amounts. At December 28, 2019 and December 29, 2018, the Company's liability for its self-insured benefits was $2.0 million and $1.2 million, respectively. Should actual losses exceed the amounts expected and the recorded liabilities be insufficient, additional expense will be recorded. Expenses incurred for healthcare benefits in fiscal 2019, 2018, and 2017 were $17.6 million, $13.3 million, and $11.9 million, respectively. 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. In fiscal 2017, the Company performed a qualitative assessment to determine whether the two-step quantitative impairment test was necessary. The Oil Business reporting unit had zero goodwill throughout fiscal 2017. Based on the qualitative assessment, the Company concluded it is more likely than not that the fair value of the Environmental Services reporting unit is greater than its carrying amount including goodwill, and therefore the two-step quantitative test was not necessary and no impairment was indicated. In fiscal 2018, the Company performed a qualitative assessment to determine whether the two-step quantitative impairment test was necessary. The Oil Business reporting unit had zero goodwill throughout fiscal 2018. Based on the qualitative assessment, the Company concluded it is more likely than not that the fair value of the Environmental Services reporting unit is greater than its carrying amount including goodwill, and therefore the two-step quantitative test was not necessary and no impairment was indicated. In fiscal 2019, the Company performed a qualitative assessment to determine whether the two-step quantitative impairment test was necessary. The Oil Business reporting unit had zero goodwill throughout fiscal 2019. Based on the qualitative assessment, the Company concluded it is more likely than not that the fair value of the Environmental Services reporting unit is greater than its carrying amount including goodwill, and therefore the two-step quantitative test was not necessary and no impairment was indicated. Recently Issued Accounting Pronouncements Accounting standards not yet adopted Standard Issuance Date Description Our Effective Date Effect on the Financial Statements ASU 2017-04 Goodwill and Other – Simplifying the Test for Goodwill Impairment (Topic 350) January 2017 Topic 350 simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. ASU 2017-4 is effective for annual and interim goodwill tests beginning after December 15, 2019. December 29, 2019 The Company is currently evaluating the impact of Topic 350, and does not expect the adoption to have a significant impact to our consolidated financial statements. ASU 2016-13 Financial Instruments – Credit Losses (Topic 326) June 2016 Topic 326 eliminates the probable initial recognition threshold and, instead, requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. December 29, 2019 The Company is currently evaluating the impact of Topic 326 on our consolidated financial position, results of operations and disclosures. The Company will adopt the standard effective December 29, 2019 and does not expect the adoption of Topic 326 to have a significant impact to our consolidated financial statements. Recently issued accounting standards adopted Standard Issuance Date Description Effective Date Effect on the Financial Statements ASU 2016-02 February 2016 This update was issued 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 lessees, the new standard requires recognition on the balance sheet of a right-of-use asset and a lease liability, initially measured at the present value of the lease payments. For lessees in operating leases, it further requires recognition in the statement of income of a single lease cost, allocated over the lease term on a generally straight-line basis. Early application of the amendments in this update is permitted for all entities. December 30, 2018 The Company adopted the new leasing standard ASC 842 "Leases" on December 30, 2018. ASU 2016-02 provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption. The Company elected to apply ASU 2016-02 as of the beginning of the period of adoption (December 30, 2018) and will not restate comparative periods. The adoption resulted in the recognition of $63.3 million of right of use assets and $63.3 million of lease liabilities. The Company recognized approximately $2.2 million of deferred rental income from certain embedded leases during the first quarter of 2019. As allowed under Topic 842, we adopted the following practical expedients: Practical expedient package, which allows the following: To not reassess whether any expired or existing contracts is or contains a lease. To not reassess the lease classification of any expired or existing lease. To not reassess the initial direct costs for any existing lease. Short-term lease practical expedient: Allows us not to apply the recognition requirements in ASC 842 to short-term leases for all asset classes. Short term leases are leases that, at commencement date, have a term of 12 months or less and do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. Separating lease components practical expedient: Allows us not to separate lease components from nonlease components for all asset classes and instead account for each separate lease and the nonlease components associated with that lease component as a single lease component. ASU 2014-09 “Revenue from Contracts with Customers (Topic 606),” ASU 2014-15 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” ASU 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10 “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” and ASU 2016-12 “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” May 2014 and subsequent These standards outline a single comprehensive model for entities to use in accounting for revenue using a five-step process that supersedes virtually all existing revenue guidance. The underlying principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities have the option of using either a full retrospective approach or a modified retrospective approach to adopt the guidance. Early adoption is permitted. December 31, 2017 On December 31, 2017, we adopted the new accounting standard ASC 606, “Revenue from Contracts with Customers” using the modified retrospective method. We recognized the cumulative effect as an adjustment to our opening balance of retained earnings. ASU 2016-09 Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. (Topic 718) March 2016 This update 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. Early adoption is permitted. January 1, 2017 ASU 2016-09 simplified the treatment for employee share-based compensation by allowing an entity to recognize excess tax benefits in the current period whether or not current taxes payable are reduced. Prior to 2017 the Company could not recognize windfall tax benefits associated with employee share-based compensation because it was in an NOL position and current taxes payable would not be reduced by the excess tax benefits. As a result of ASU 2016-09 the Company recognized excess tax benefits of $2.5 million from share-based compensation from prior years, resulting in cumulative-effect increases to retained earnings and deferred tax assets of approximately $1.0 million. In conjunction with the adoption of ASU 2016-09, the Company reclassified $131 thousand of cash outflows for share repurchases to satisfy tax withholding obligations from Cash flows from Operating Activities to Cash flows from Financing Activities compared to the amounts previously reported for the fiscal year ended January 2, 2016. ASU 2015-11, Simplifying the Measurement of Inventory. (Topic 330) July 2015 This update requires the measurement of inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. January 1, 2017 The adoption of ASU 2015-11 at the start of fiscal 2017 resulted in no impact to our consolidated financial statements. Effective December 30, 2018, we adopted the requirements of Topic 842. The cumulative effects of the changes made to our statement of income and balance sheet were as follows: For the Fiscal Year Ended, December 28, 2019 As Reported Balances Without Adoption of Topic 842 Effect of Change (thousands) Higher/(Lower) Statement of Income Service revenues $ 250,491 $ 275,239 $ (24,748) Rental income 22,663 — 22,663 Total revenues 444,427 446,512 (2,085) Operating income 12,861 14,946 (2,085) Income before income taxes 11,992 14,077 (2,085) Provision for income taxes 3,243 3,807 (564) Net income 8,749 10,270 (1,521) Income attributable to Heritage-Crystal Clean, Inc. common stockholders $ 8,363 $ 9,884 $ (1,521) Net income per share: basic $ 0.36 $ 0.43 $ (0.07) Net income per share: diluted $ 0.36 $ 0.43 $ (0.07) December 28, 2019 As Reported Balances Without Adoption of Topic 842 Effect of Change (thousands) Higher/(Lower) Balance Sheet Right of use assets $ 89,525 $ — $ 89,525 Total assets 471,314 381,789 89,525 Current portion of lease liabilities 20,407 — 20,407 Contract liabilities - net 2,252 167 2,085 Other current liabilities 16,418 16,034 384 Total current liabilities 90,444 67,568 22,876 Lease liabilities, net of current portion 68,734 — 68,734 Deferred income taxes 17,157 17,721 (564) Total liabilities 205,683 114,637 91,046 Retained earnings 64,182 65,703 (1,521) Heritage-Crystal Clean, Inc. stockholders' equity 264,997 266,518 (1,521) Total equity 265,631 267,152 (1,521) Total liabilities and stockholders' equity $ 471,314 $ 381,789 $ 89,525 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS On October 8, 2019, Heritage-Crystal Clean completed the acquisition of certain assets of California Environmental & Litho, Inc., which provided transportation, manifesting, labeling and profiling services to printing, photographic, automotive and body shop industries in the Bay Area, Central Valley & Northern California. The acquisition represents an expansion of HCC’s Environmental Services business in this geographic area while potentially providing new services and products for this market. No facilities were acquired in the transaction and all service employees and activity will be consolidated in existing branch territories. Total consideration for the acquisition was approximately $0.5 million. Factors leading to goodwill being recognized are the Company's expectations of synergies from combining operations of California Environmental & Litho, Inc., and the Company as well as the value of intangible assets that are not separately recognized, such as assembled workforce. On March 25, 2019, the Company completed the acquisition of certain assets of All Valley Disposal, Inc., an environmental services provider based in Fresno, California. Consideration for the acquisition paid at closing was $0.6 million. Contingent upon the achievement of certain business performance metrics, total consideration for the acquisition could reach a maximum of approximately $1.3 million. We are still in the process of completing our valuation, and accordingly our estimates and assumptions are subject to change within the measurement period. The Company is continuing to examine facts and circumstances that existed at the acquisition date and how those affect the estimated fair value of working capital, and the allocation of the estimated purchase price to other tangible and intangible assets. Factors leading to goodwill being recognized are the Company's expectations of synergies from combining operations of All Valley Disposal, Inc., and the Company as well as the value of intangible assets that are not separately recognized, such as assembled workforce. The results of All Valley Disposal are consolidated into the Company’s Environmental Services segment. On February 1, 2019, the Company purchased the assets of W.S. Supplies, Inc. ("WSS") pursuant to an Asset Purchase Agreement. The Company purchased the assets of WSS to expand the Company’s Environmental Services segment in the mid-west. The purchase price was set at $0.5 million subject to certain adjustments, including a contingent consideration provision, and is allocated based on our estimates and assumptions of the approximate fair values of assets acquired on the acquisition date. The results of WSS are consolidated into the Company’s Environmental Services segment. On January 11, 2019, the Company purchased the assets of the consumer division of GlyEco, Inc. ("GlyEco") pursuant to an Asset Purchase Agreement. The Company purchased the assets of GlyEco's consumer division to expand the Company’s antifreeze line of business while expanding geographically. The purchase price was set at $1.6 million subject to certain adjustments, including working capital adjustments, and is allocated based on our estimates and assumptions of the approximate fair values of assets acquired on the acquisition date. Factors leading to goodwill being recognized are the Company's expectations of synergies from combining operations of GlyEco and the Company as well as the value of intangible assets that are not separately recognized, such as assembled workforce. The results of GlyEco are consolidated into the Company’s Environmental Services segment. On May 3, 2018, the Company purchased the assets of Products Plus, Inc. and AO Holding Company-Kansas City, LLC (collectively "PPI") pursuant to an Asset Purchase Agreement. The Company purchased the assets of PPI to expand the Company’s market share in the collection, recycling, and sales of a full line of antifreeze products. The purchase price was set at $5.9 million subject to certain adjustments, including a working capital adjustment and a contingent consideration provision. During the measurement period, the Company finalized the purchase price allocation of the PPI business combination. Compared to the provisional values reported as of December 29, 2018, the fair values presented in the table below reflect increases to property, plant, & equipment of $0.2 million and other intangible assets of $1.5 million. Compared to the provisional values reported as of December 29, 2018, the finalized fair values presented in the table below reflect decreases to contingent consideration of $0.1 million and goodwill of $1.8 million. Contingent consideration to be paid subsequent to December 28, 2019 is contingent upon several business performance metrics over the three On June 11, 2018, the Company purchased the assets of Kurt Lanse d/b/a Hot Tank Supply Company ("HTSC") pursuant to an Asset Purchase Agreement. The Company purchased the assets of HTSC to expand the Company’s market share in California. The purchase price was set at $0.7 million subject to certain adjustments, including a working capital adjustment and a deferred and contingent consideration provision, and is allocated based on our estimates and assumptions of the approximate fair values of assets acquired on the acquisition date. The Company estimates that contingent consideration to be paid subsequent to December 28, 2019 will be approximately $0.1 million. Goodwill recognized from the acquisition of HTSC represents the excess of the estimated purchase consideration transferred over the estimated fair value of the assets acquired. Factors leading to goodwill being recognized are the Company's expectations of synergies from combining operations of HTSC and the Company as well as the value of intangible assets that are not separately recognized, such as assembled workforce. The results of HTSC are consolidated into the Company’s Environmental Services segment. The following table summarizes the estimated fair values of the assets acquired, net of cash acquired, related to each acquisition as of December 28, 2019: (thousands) California Environmental & Litho All Valley Disposal GlyEco WSS PPI HTSC Accounts receivable $ 67 $ 36 $ 107 $ — $ 909 $ 40 Inventory 3 18 291 28 259 3 Property, plant, & equipment 15 252 746 154 2,154 47 Equipment at customers — — — 24 — 104 Intangible assets 445 310 251 298 2,001 100 Goodwill 3 384 251 — 406 377 Total purchase price, net of cash acquired $ 533 $ 1,000 $ 1,646 $ 504 $ 5,729 $ 671 Less: working capital adjustment — — 23 14 (62) (9) Less: deferred consideration — — — — — 137 Less: contingent consideration 120 250 — 40 906 50 Less: to be placed in escrow 50 100 — 50 — — Net cash paid $ 363 $ 650 $ 1,623 $ 400 $ 4,885 $ 493 Unaudited Pro Forma Financial Information The pro forma financial information in the table below presents the combined results of the Company as if the PPI, HTSC, and GlyEco acquisitions had occurred December 31, 2017. 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 periods presented. The combined results of California Environmental & Litho, All Valley Disposal, and WSS were excluded from the pro forma information due to immateriality. Fiscal Year Ended, (Thousands, except per share data) December 28, 2019 December 29, 2018 Total revenues $ 444,627 $ 419,340 Income attributable to HCCI Common Stockholders 8,339 14,171 Net income per share: basic $ 0.36 $ 0.62 Net income per share: diluted $ 0.36 $ 0.61 |
Revenue
Revenue | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when our performance obligations under the terms of a contract with our customers are satisfied. Recognition occurs when the Company transfers control by completing the specified services at the point in time the customer benefits from the services performed or once our products are delivered. The Company measures progress toward complete satisfaction of a performance obligation satisfied over time using a cost-based input method. This method of measuring progress provides a faithful depiction of the transfer of goods or services because the costs incurred are expected to be substantially proportionate to the Company’s satisfaction of the performance obligation. Revenue is measured as the amount of consideration we expect to receive in exchange for completing our performance obligations. Sales tax and other taxes we collect with revenue-producing activities are excluded from revenue. In the case of contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on the relative stand-alone selling prices of the various goods and/or services encompassed by the contract. We do not have any material significant payment terms as payment is generally due within 30 days after the performance obligation has been satisfactorily completed. The Company has elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. In applying the guidance in Topic 606, there were no judgments or estimates made that the Company deems significant. Accounts Receivable — Net , includes amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable. The Company determines the allowance based on analysis of customer credit worthiness and historical losses. Accounts receivable are written off once the Company determines the account to be uncollectible. The Company does not have any off-balance-sheet credit exposure related to its customers. Contract Balances — Contract assets primarily relate to the Company’s rights to consideration for work completed in relation to its services performed but not billed at the reporting date. Contract liabilities primarily consist of advance payments of performance obligations yet to be fully satisfied in the period reported. Our contract liabilities and contract assets are reported in a net position at the end of each reporting period. We disaggregate our revenue from contracts with customers by major lines of business for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following table disaggregates our revenue by major lines: For the Fiscal Year Ended, For the Fiscal Year Ended, Total Net Sales by Major Lines of Business (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Parts cleaning, containerized waste, & related products/services $ 168,521 $ — $ 168,521 $ 178,607 $ — $ 178,607 Vacuum Services & Wastewater Treatment 60,736 — 60,736 53,934 — 53,934 Antifreeze Business 27,321 — 27,321 19,021 — 19,021 Field Services 21,701 — 21,701 17,692 — 17,692 Environmental Services - Other 1,856 — 1,856 1,877 — 1,877 Re-refinery Product Sales — 115,551 115,551 — 112,472 112,472 Oil Collection Services & RFO — 21,445 21,445 — 21,405 21,405 Oil Filter Business — 4,633 4,633 — 4,838 4,838 Revenues from Contracts with Customers 280,135 141,629 421,764 271,131 138,715 409,846 Other Revenue 22,408 255 22,663 — 337 337 Total Revenues $ 302,543 $ 141,884 $ 444,427 $ 271,131 $ 139,052 $ 410,183 The following table provides information about contract assets and contract liabilities from contracts with customers: (thousands) December 28, 2019 December 29, 2018 Contract assets $ 64 $ 100 Contract liabilities 2,316 266 Contract liabilities - net $ 2,252 $ 166 During the fiscal year ended December 28, 2019, the Company recognized $0.3 million of revenue that was included in the contract liabilities balance as of December 29, 2018. As a result of having adopted ASC 842 on December 30, 2018, the Company recognized within Contract liabilities - net approximately $2.2 million of deferred rental income. The Company has no assets recognized from costs to obtain or fulfill a contract with. a customer. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 28, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE Accounts receivable consisted of the following: (thousands) December 28, December 29, Trade $ 54,420 $ 51,118 Less: allowance for doubtful accounts 2,221 1,816 Trade - net 52,199 49,302 Related parties 1,560 1,595 Other 1,827 847 Total accounts receivable - net $ 55,586 $ 51,744 The following table provides the changes in the Company’s allowance for doubtful accounts for the fiscal year ended December 28, 2019 and the fiscal year ended December 29, 2018: (thousands) December 28, December 29, Balance at beginning of period $ 1,816 $ 1,881 Provision for bad debts 1,486 628 Accounts written off, net of recoveries (1,081) (693) Balance at end of period $ 2,221 $ 1,816 |
Inventory
Inventory | 12 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory consists primarily of used oil and processed oil, solvents and solutions, new and refurbished parts cleaning machines, drums and supplies, and other items. Inventories are valued at the lower of FIFO cost or net realizable value, net of any reserves for excess, obsolete, or unsalable inventory. The carrying value of inventory consisted of the following: (thousands) December 28, December 29, Solvents and solutions $ 8,694 $ 8,216 Used oil and processed oil 8,349 12,124 Machines 5,440 5,334 Drums and supplies 4,697 5,231 Other 2,632 2,378 Total inventory 29,812 33,283 Less: machine refurbishing reserve 439 224 Total inventory - net $ 29,373 $ 33,059 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment consisted of the following: (thousands) December 28, December 29, Machinery, vehicles, and equipment $ 127,242 $ 98,708 Buildings and storage tanks 71,616 69,791 Land 9,664 9,546 Leasehold improvements 6,523 5,701 Construction in progress 7,958 15,405 Assets held for sale 4 4 Total property, plant, and equipment 223,007 199,155 Less: accumulated depreciation 68,096 59,168 Property, plant, and equipment - net $ 154,911 $ 139,987 (thousands) December 28, December 29, Equipment at customers $ 77,914 $ 73,075 Less: accumulated depreciation 53,682 49,261 Equipment at customers - net $ 24,232 $ 23,814 Depreciation expense was $14.6 million, $13.1 million, and $14.7 million for fiscal 2019, 2018 and 2017, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 28, 2019 | |
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. In fiscal 2017, the Company performed a qualitative assessment to determine whether the two-step quantitative impairment test was necessary. The Oil Business reporting unit had zero goodwill throughout fiscal 2017. Based on the qualitative assessment, the Company concluded it is more likely than not that the fair value of the Environmental Services reporting unit is greater than its carrying amount including goodwill, and therefore the two-step quantitative test was not necessary and no impairment was indicated. In fiscal 2018, the Company performed a qualitative assessment to determine whether the two-step quantitative impairment test was necessary. The Oil Business reporting unit had zero goodwill throughout fiscal 2018. Based on the qualitative assessment, the Company concluded it is more likely than not that the fair value of the Environmental Services reporting unit is greater than its carrying amount including goodwill, and therefore the two-step quantitative test was not necessary and no impairment was indicated. In fiscal 2019, the Company performed a qualitative assessment to determine whether the two-step quantitative impairment test was necessary. The Oil Business reporting unit had zero goodwill throughout fiscal 2019. Based on the qualitative assessment, the Company concluded it is more likely than not that the fair value of the Environmental Services reporting unit is greater than its carrying amount including goodwill, and therefore the two-step quantitative test was not necessary and no impairment was indicated. The following table shows changes to our goodwill balances by segment during the years ended December 29, 2018, and December 28, 2019: (thousands) Oil Business Environmental Services Total Goodwill at December 30, 2017 Gross carrying amount 3,952 31,580 35,532 Accumulated impairment loss (3,952) — (3,952) Net book value at December 30, 2017 $ — $ 31,580 $ 31,580 Acquisitions — 2,543 2,543 Goodwill at December 29, 2018 Gross carrying amount 3,952 34,123 38,075 Accumulated impairment loss (3,952) — (3,952) Net book value at December 29, 2018 $ — $ 34,123 $ 34,123 Acquisitions — 639 — Measurement period adjustments — (1,765) — Goodwill at December 28, 2019 Gross carrying amount 3,952 32,997 36,949 Accumulated impairment loss (3,952) — (3,952) Net book value at December 28, 2019 $ — $ 32,997 $ 32,997 Following is a summary of software and other intangible assets: December 28, 2019 December 29, 2018 (thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships $ 25,551 $ 13,886 $ 11,665 $ 23,686 $ 11,445 $ 12,241 Software 8,093 4,887 3,206 5,040 4,094 946 Patents, formulae, and licenses 1,769 774 995 1,769 708 1,061 Non-compete agreements 3,603 3,068 535 2,937 2,904 33 Other 1,702 1,211 491 1,442 1,042 400 Total software and intangible assets $ 40,718 $ 23,826 $ 16,892 $ 34,874 $ 20,193 $ 14,681 Amortization expense was $3.6 million, $3.1 million, and $3.3 million for fiscal 2019, 2018, and 2017, respectively. The weighted average useful lives of customer and supplier relationships are as follows: Intangible asset Weighted average useful life (years) Patents, formulae, & licenses 15 Customer and supplier relationships 11 Software 9 Non-compete agreements 5 Other intangibles 7 The estimated amortization expense for each of the five succeeding fiscal years is as follows: Fiscal Year Amortization Expense (millions) 2020 $3.3 2021 $3.2 2022 $2.9 2023 $2.4 2024 $0.9 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, adjustment to purchase price allocations for assets acquired, and other events. No impairment of software or other intangible assets was recorded in fiscal 2019, 2018, or 2017. |
Accounts Payable
Accounts Payable | 12 Months Ended |
Dec. 28, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable | ACCOUNTS PAYABLE Accounts payable consisted of the following: (thousands) December 28, December 29, Accounts payable $ 37,690 $ 32,471 Accounts payable - related parties 368 159 Total accounts payable $ 38,058 $ 32,630 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | DEBT AND FINANCING ARRANGEMENTS Bank Credit Facility The Company's Credit Agreement ("Credit Agreement"), dated February 21, 2017, provides for borrowings of up to $95.0 million, subject to the satisfaction of certain terms and conditions, comprised of a term loan of $30.0 million and up to $65.0 million of borrowings under a revolving loan. The actual amount of borrowings available under the revolving loan portion of the Credit Agreement is limited by the Company's total leverage ratio. The amount available to draw at any point in time would be further reduced by any standby letters of credit issued. Loans made under the Credit Agreement may be Base Rate Loans or LIBOR Rate Loans, at the election of the Company subject to certain exceptions. Base Rate Loans have an interest rate equal to (i) the higher of (a) the federal funds rate plus 0.5%, (b) the London Interbank Offering Rate (“LIBOR”) plus 1%, or (c) Bank of America's prime rate, plus (ii) a variable margin of between 0.75% and 1.75% depending on the Company's total leverage ratio, calculated on a consolidated basis. LIBOR rate loans have an interest rate equal to (i) the LIBOR rate plus (ii) a variable margin of between 1.75% and 2.75% depending on the Company's total leverage ratio. Amounts borrowed under the Credit Agreement are secured by a security interest in substantially all of the Company's tangible and intangible assets. Please see "Item 1A. Risk Factors" for more information in regard to the phasing out of LIBOR after 2021. The Credit Agreement contains customary terms and provisions (including representations, covenants, and conditions) for transactions of this type. Certain covenants, among other things, restrict the Company's and its subsidiaries' ability to incur indebtedness, grant liens, make investments and sell assets. The Credit Agreement also contains customary events of default, covenants and representations and warranties. Financial covenants include: • An interest coverage ratio (based on interest expense and EBITDA) of at least 3.5 to 1.0; • A total leverage ratio no greater than 3.0 to 1.0, provided that in the event of a permitted acquisition having an aggregate consideration equal to $10.0 million or more, at the Borrower’s election, the foregoing 3.00 to 1.00 shall be deemed to be 3.25 to 1.00 for the fiscal quarter in which such permitted acquisition occurs and the three immediately following fiscal quarters and will thereafter revert to 3.00 to 1.00; and • A capital expenditures covenant limiting capital expenditures to $100.0 million plus, if the capital expenditures permitted have been fully utilized, an additional amount for the remaining term of the Credit Agreement equal to 35% of EBITDA for the thirteen “four-week” periods most recently ended immediately prior to the full utilization of such $100.0 million basket The Credit Agreement places certain limitations on acquisitions and the payment of dividends. Debt at December 28, 2019 and December 29, 2018 consisted of the following: (thousands) December 28, 2019 December 29, 2018 Principal amount $ 30,000 $ 30,000 Less: unamortized debt issuance costs 652 954 Long-term debt, less current maturities $ 29,348 $ 29,046 In fiscal 2019, the Company recorded interest expense of $1.7 million, of which approximately $1.2 million of interest expense was on our term loan, and $0.3 million was amortization of debt issuance costs. In fiscal 2018, the Company recorded interest expense of $1.5 million, of which $1.2 million of interest expense was on our term loan, and $0.3 million was amortization of debt issuance costs. No interest was capitalized in fiscal years 2019 and 2018. As of December 28, 2019 and December 29, 2018, the Company was in compliance with all covenants under the Credit Agreement. As of December 28, 2019, and December 29, 2018, the Company had $1.1 million and $1.3 million of standby letters of credit issued, respectively, and $63.9 million and $63.7 million was available for borrowing under the bank credit facility, respectively. The Company's weighted average and effective interest rates as December 28, 2019, December 29, 2018, and December 30, 2017 were 4.1%, 3.9%, and 3.5%, respectively. Future Maturities The aggregate contractual annual maturities for debt as of December 28, 2019 are as follows: Fiscal Year: Term Loan (thousands) 2020 $ — 2021 — 2022 30,000 2023 — 2024 — Aggregate Maturities $ 30,000 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 28, 2019 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | EMPLOYEE BENEFIT PLANHeritage-Crystal Clean offers a defined contribution benefit plan for its employees who are immediately eligible to participate in the plan. Participants are allowed to contribute 1% to 70% of their pre-tax earnings to the plan. The Company matches 100% of the first 3% contributed by the participant and 50% of the next 2% contributed by the participant for a maximum contribution of 4% per participant. The Company's matching contribution under this plan was $2.6 million, $2.0 million, and $1.8 million in fiscal 2019, 2018, and 2017, respectively. |
Related Party and Affiliate Tra
Related Party and Affiliate Transactions | 12 Months Ended |
Dec. 28, 2019 | |
Related Party Transactions [Abstract] | |
Related Party and Affiliate Transactions | RELATED PARTY AND AFFILIATE TRANSACTIONS As of December 28, 2019, the Heritage Group beneficially owned 31.6% of the Company's common stock. The Fehsenfeld Family Trusts, which are related to the Heritage Group owned 6.4% of the Company's common stock, and Fred Fehsenfeld, Jr., the Chairman of the Board and an affiliate of the Heritage Group, beneficially owned 4.3% of the Company's common stock. Companies affiliated with the Heritage Group are listed as affiliates. During fiscal 2019, 2018, and 2017, the Company had transactions with the Heritage Group affiliates and other related parties. The following table sets forth related-party transactions: Fiscal 2019 Fiscal 2018 Fiscal 2017 (thousands) Revenues Expenses Revenues Expenses Revenues Expenses Heritage Group affiliates $ 8,705 $ 3,846 $ 8,168 $ 2,202 $ 4,740 $ 2,965 Other related parties / affiliates 7,653 486 6,497 827 4,516 50 Total $ 16,358 $ 4,332 $ 14,665 $ 3,029 $ 9,256 $ 3,015 Revenues from related parties and affiliates are for sales of products and services performed by the Company. Payments to related parties and affiliates include solvent purchases, insurance payments, disposal services, transportation, and various other services. The Company participated in a self-insurance program for workers' compensation with a shareholder and several related companies. In connection with this program, payments were made to the shareholder. Expenses paid to the shareholder in fiscal 2019, 2018, and 2017 were approximately $0.3 million, $0.5 million, and $0.9 million, respectively. Our participation in this self-insurance program ended on January 31, 2018. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company has two reportable segments: "Environmental Services" and "Oil Business." The Environmental Services segment consists of the Company's parts cleaning, containerized waste management, vacuum truck services, antifreeze recycling activities, and field services. The Oil Business segment consists of the Company's used oil collection, recycled fuel oil sales, used oil re-refining activities, and used oil filter removal and disposal services. No customer represented greater than 10% of consolidated revenues for any of the periods presented. There were no intersegment revenues. Both segments operate in the United States and, to an immaterial degree, in Ontario, Canada. As such, the Company is not disclosing operating results by geographic segment. Segment results for the fiscal years ended December 28, 2019, December 29, 2018, and December 30, 2017 were as follows: For the Fiscal Years Ended, December 28, 2019 (thousands) Environmental Oil Business Corporate and Consolidated Revenues Service revenues $ 236,530 $ 13,961 $ — $ 250,491 Product revenues 43,605 127,668 — 171,273 Rental income 22,408 255 — 22,663 Total revenues $ 302,543 $ 141,884 $ — $ 444,427 Operating expenses Operating costs 219,040 130,563 — 349,603 Operating depreciation and amortization 7,768 6,656 — 14,424 Profit before corporate selling, general, and administrative expenses $ 75,735 $ 4,665 $ — $ 80,400 Selling, general, and administrative expenses 50,224 50,224 Depreciation and amortization from SG&A 3,825 3,825 Total selling, general, and administrative expenses $ 54,049 $ 54,049 Other expense - net 13,490 13,490 Operating income 12,861 Interest expense - net 869 869 Income before income taxes $ 11,992 December 29, 2018 (thousands) Environmental Oil Business Corporate and Consolidated Revenues Service revenues $ 237,806 $ 12,456 $ — $ 250,262 Product revenues 33,325 126,596 — 159,921 Total revenues $ 271,131 $ 139,052 $ — $ 410,183 Operating expenses Operating costs 194,959 128,206 — 323,165 Operating depreciation and amortization 6,766 6,141 — 12,907 Profit before corporate selling, general, and administrative expenses $ 69,406 $ 4,705 $ — $ 74,111 Selling, general, and administrative expenses 47,714 47,714 Depreciation and amortization from SG&A 3,250 3,250 Total selling, general, and administrative expenses $ 50,964 $ 50,964 Other expense - net 1,606 1,606 Operating income 21,541 Interest expense - net 1,052 1,052 Income before income taxes $ 20,489 December 30, 2017 (thousands) Environmental Oil Business Corporate and Consolidated Revenues Service revenues $ 212,883 $ 21,116 $ — $ 233,999 Product revenues 25,172 106,786 — 131,958 Total revenues $ 238,055 $ 127,902 $ — $ 365,957 Operating expenses Operating costs 163,633 112,469 — 276,102 Operating depreciation and amortization 7,526 6,776 — 14,302 Profit before corporate selling, general, and administrative expenses $ 66,896 $ 8,657 $ — $ 75,553 Selling, general, and administrative expenses 47,401 47,401 Depreciation and amortization from SG&A 3,665 3,665 Total selling, general, and administrative expenses $ 51,066 $ 51,066 Other (income) - net (10,940) (10,940) Operating income 35,427 Interest expense - net 1,094 1,094 Income before income taxes $ 34,333 Total assets by segment as of December 28, 2019 and December 29, 2018 were as follows: (thousands) December 28, 2019 December 29, 2018 Total Assets: Environmental Services $ 224,657 $ 148,192 Oil Business 171,104 142,691 Unallocated Corporate Assets 75,553 56,939 Total $ 471,314 $ 347,822 Segment assets for the Environmental Services and Oil Business segments consist of property, plant, and equipment, intangible assets, accounts receivable, and inventories allocated to each segment. Environmental Services segment assets also include goodwill. Assets for the corporate unallocated amounts consist of cash, prepaids, and property, plant, and equipment used at the corporate headquarters. Capital expenditures by segment for fiscal 2019, 2018, and 2017 were as follows: For the Fiscal Years Ended, (thousands) December 28, 2019 December 29, 2018 December 30, 2017 Total Capital Expenditures: Environmental Services $ 18,499 $ 12,756 $ 6,843 Oil Business 12,670 9,858 6,998 Unallocated Corporate Assets 124 206 559 Total $ 31,293 $ 22,820 $ 14,400 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Leases Lessee The Company leases buildings and property, railcars, machinery and equipment, and various types of vehicles for use in our operations. Each arrangement is evaluated individually to determine if the arrangement is or contains a lease at inception. The Company has lease agreements with lease and non-lease components and we have elected to not separate lease and non-lease components for all classes of underlying assets. In addition, our lease agreements do not contain any material residual guarantees or restrictive covenants. Leases may include variable lease payments for common area maintenance, real estate taxes, and truck lease mileage. No leases are tied to a market index rate or CPI. Variable lease payments are not included in the initial measurement of the right-of-use assets or lease liabilities, and are recorded as lease expense in the period incurred. Options to extend or terminate a lease are included in the lease term when it is reasonably certain that we will exercise that option. We have elected not to record leases with an initial term of 12 months or less on the balance sheet and instead recognize those lease payments on a straight-line basis over the lease term. Leases with initial terms in excess of 12 months are recorded as either operating or financing leases in our Consolidated Balance Sheet. Right-of-use assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Our lease right-of-use assets are measured at the initial measurement of the lease liability, adjusted for any lease payments made prior to the lease commencement date, less any lease incentives received and other initial direct costs incurred. Our lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. Our leases have remaining terms ranging from less than one month to 11 years and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. Our finance leases include a fleet of mobile equipment. The components of lease expense were as follows: (thousands) For the Fiscal Year Ended, Finance lease cost: Amortization of right-of-use Assets $ 288 Interest on lease liabilities 67 Total finance lease cost $ 355 Operating lease cost $ 26,717 Short-term lease cost 5,029 Variable lease cost 4,187 Total lease cost $ 35,933 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from financing leases $ 58 Operating cash flows from operating leases 26,409 Financing cash flows from financing leases 191 Right-of-use assets obtained in exchange for new finance lease liabilities 6,539 Right-of-use assets obtained in exchange for new operating lease liabilities 104,963 Weighted-average remaining lease term (years) Finance leases 6.7 Operating leases 5.1 Weighted-average discount rate Finance leases 3.4 % Operating leases 5.8 % Future annual minimum lease payment commitments as of December 28, 2019 were as follows: (thousands) Operating Leases Finance Leases Total 2020 $ 23,894 $ 883 $ 24,777 2021 20,484 883 21,367 2022 16,902 883 17,785 2023 12,745 883 13,628 2024 8,702 883 9,585 2025 and thereafter 13,367 2,828 16,195 Total minimum lease payments $ 96,094 $ 7,243 $ 103,337 Less: imputed interest 13,311 885 14,196 Lease liability $ 82,783 $ 6,358 $ 89,141 As disclosed in our 2018 Annual Report on Form 10-K, and under the previous lease accounting standard 840, future minimum lease payments due under noncancelable operating lease agreements as of December 29, 2018 were as follows: (thousands) 2019 $ 22,226 2020 16,095 2021 12,458 2022 9,247 2023 6,020 2024 and thereafter 5,786 Total minimum lease payments $ 71,832 Lessor The Company is a lessor of portions of a building and property, railcars, and equipment such as embedded leases of parts cleaning machines. Each of the Company’s leases is classified as an operating lease, and the vast majority are short-term leases. Variable lease payments include real and personal property taxes, which are based on the lessee’s pro rata portion of such amounts, and excess mileage charges which are computed as the actual miles traveled in a calendar year minus the maximum average mileage allowance as specified per the contract. Options to extend the lease beyond the original terms range from day-to-day renewals to increments of five ble. As of December 28, 2019, the Company is party to a contract under which it leases railcars to the related party Calumet Specialty Products Partners, L.P. No leased assets are covered by residual value guarantees. The Company manages the risk associated with the residual value of leased assets through such means as performing periodic maintenance and upkeep activities and the inclusion of contractual terms that hold the lessee responsible for damage incurred to leased assets. Contained in Note 7, “Property, plant, and equipment,” are disclosures concerning the Company’s underlying assets under operating leases. The Company has made an accounting policy election to exclude from the consideration in the contract and from variable payments not included in the consideration in the contract all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific lease revenue-producing transaction and collected by the lessor from a lessee. The Company recognizes rental income on a straight-line basis for that portion of the consideration allocated to the embedded lease component of certain of our parts cleaning contracts. We also recognize rental income on certain subleases of railcars and portions of a building and property. Rental income for the fourth quarter and fiscal year ended December 28, 2019 was as follows: For the Fiscal Year Ended December 28, 2019 (thousands) Environmental Services Oil Business Total Parts Cleaning $ 22,408 $ — $ 22,408 Railcars — 213 213 Property — 42 42 Total rental income $ 22,408 $ 255 $ 22,663 Purchase Obligations 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 cancellable with or without notice without penalty, although certain vendor agreements provide for cancellation fees or penalties depending on the terms of the contract. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On December 22, 2017, the Tax Cuts and Jobs Act was enacted into law and introduced significant changes to U.S. tax law. In addition to the federal income tax rate reduction from 35% to 21% effective for tax years beginning after December 31, 2017, the new legislation set forth a variety of other changes, including a limitation on the tax deductibility of interest expense, the acceleration of business asset expensing, a limitation on the use of net operating losses generated in future years, the repeal of the alternative minimum tax ("AMT"), created new taxes on certain foreign-sourced earnings (GILTI - Global Intangible Low Taxed Income ), and a reduction in the amount of executive pay that could qualify as a tax deduction. For the year-ended December 28, 2019, the Company will be impacted by the repeal of AMT, acceleration of business asset expensing and limitation of executive compensation. The Company may or may not be impacted by the other aforementioned changes to the tax law in the future. On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (SAB 118) which addresses income tax accounting implications of the Tax Act. The purpose of SAB 118 was to address any uncertainty or diversity of view in applying ASC 740 Income Taxes in the reporting period in which the Tax Act was enacted. SAB 118 allows for a measurement period to finalize the impacts of the Tax Act, not to extend beyond one year from the date of enactment. Due to the timing and the complexity involved in applying the provisions of the Act, the Company did not record provisional amounts in our financial statements as of December 30, 2017 related to the one time deemed repatriation of foreign earnings. The Internal Revenue Service issued guidance in 2018 with respect to the one time deemed repatriation of foreign earnings and the Company determined there was no income inclusion related to its controlled foreign corporation under IRC 965 for the year ended December 30, 2017. 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 2019. Therefore, the Company recorded a noncurrent deferred tax liability as to the 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"). The balance on the federal NOL as of December 28, 2019 was $26.1 million. There are also state NOLs of varying amounts, dependent on each state’s conformity with bonus depreciation. The remaining deferred tax asset related to the Company's state and federal NOL was a tax effected balance of $6.5 million. The Company has not set up a valuation allowance on the NOL balance as we believe more likely than not that this will be realized. The Company's effective tax rate for fiscal 2019 was 27.0% compared to 26.6% in fiscal 2018. The difference in the effective tax rate is principally attributable to state income taxes. Components of the Company's income tax benefit and provision consist of the following for fiscal years 2019, 2018, and 2017: For the Fiscal Years Ended, (thousands) December 28, 2019 December 29, 2018 December 30, 2017 Current: Federal $ (79) $ (306) $ 409 State 681 797 263 Total current $ 602 $ 491 $ 672 Deferred: Federal $ 2,328 $ 4,093 $ 4,501 State 313 778 829 Foreign — 89 (79) Total deferred $ 2,641 $ 4,960 $ 5,251 Income tax provision $ 3,243 $ 5,451 $ 5,923 A reconciliation of the expected income tax expense at the statutory federal rate to the Company's actual income tax expense is as follows: For the Fiscal Years Ended, (thousands) December 28, 2019 December 29, 2018 December 30, 2017 Tax expense at statutory federal rate $ 2,518 $ 4,303 $ 11,673 State and local tax, net of federal expense 785 1,245 720 Windfalls from share-based compensation (369) (331) (412) Impact of Federal Rate Change — — (6,156) Valuation allowance 117 192 (126) Other 192 42 224 Total income tax provision $ 3,243 $ 5,451 $ 5,923 Components of deferred tax assets (liabilities) are as follows: As of, (thousands) December 28, 2019 December 29, 2018 Deferred tax assets: Net operating loss carryforward $ 6,457 $ 4,966 Stock compensation 2,167 1,640 Tax intangible assets 1,327 1,444 Reserves and accruals 9,432 5,776 Income tax credits 1,023 1,345 Allowance for doubtful accounts 606 525 Total deferred tax asset $ 21,012 $ 15,696 Less: valuation allowance 310 193 Net deferred tax asset $ 20,702 $ 15,503 Deferred tax liabilities: Prepaids $ (690) $ (645) Depreciation and amortization (37,169) (29,374) Total deferred tax liability $ (37,859) $ (30,019) Net deferred tax liability $ (17,157) $ (14,516) As of December 28, 2019, the Company is no longer subject to U.S. federal examinations by taxing authorities for years prior to 2016, however net operating loss carryforwards from years prior to 2016 remain open to examination as part of any year in which it is utilized in the future. As of December 28, 2019, the Company believes it is more likely than not that a benefit from foreign net operating loss carryforwards will not be realized. As of December 28, 2019, the Company has provided a valuation allowance against those foreign net operating loss carryforwards of $0.3 million. 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 has a reserve of $2.7 million for uncertain tax positions as of December 28, 2019 and $2.5 million as of December 29, 2018. The gross unrecognized tax benefits would, if recognized, decrease the Company's effective tax rate. Although it is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next twelve months due to tax examination changes, settlement activities, expiration of statute of limitations, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities, we do not anticipate any significant changes to unrecognized tax benefits over the next 12 months. The Company recognizes interest and penalties associated with income tax liabilities as income tax expense in the Statement of Operations. No significant penalties or interest are included in income taxes or accounted for on the balance sheet related to unrecognized tax positions as of December 28, 2019, or December 29, 2018. The following table summarizes the movement in unrecognized tax benefits: For the Fiscal Years Ended, (thousands) December 28, 2019 December 29, 2018 Gross Unrecognized Tax Benefits: Beginning balance $ 2,544 $ 2,509 Additions based on current year's tax positions 47 36 Net changes based on prior year's tax positions 87 (1) Ending balance $ 2,678 $ 2,544 |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION On February 20, 2019, the Compensation Committee and the Board of Directors of the Company adopted the 2019 Incentive Award Plan (the “2019 Plan”), to replace the Company’s 2008 Omnibus Incentive Plan (“2008 Plan”), which expired in March 2018. The 2019 Plan was approved during the second quarter of 2019 and authorizes 1,500,000 shares to be available for award grants. Stock Option Awards A summary of stock option activity under this Plan is as follows: Stock Options Number of Weighted Average Weighted Average Aggregate Options outstanding at December 30, 2017 19,435 $ 7.33 1.23 $ 280 Exercised (16,675) $ 7.33 Options outstanding at December 29, 2018 2,760 $ 7.33 0.24 $ 41 Exercised (2,760) $ 7.33 Options outstanding at December 28, 2019 — $ — — $ — 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 common 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. In addition, the Company may grant restricted shares to certain members of management based on their services and contingent upon continued service with the Company. The restricted shares vest over a period of approximately three years from the grant date. The fair value of each restricted stock grant is based on the closing price of the Company's common stock on the date of grant. On April 13, 2018, the Company granted 350,000, of which 90,417 have been forfeited, shares of restricted stock to certain members of Management as part of a Special Incentive Program. The number of shares granted may be increased up to 454,271 shares depending on the Company’s level of performance with regard to certain market conditions. Up to 454,271 shares may vest on April 13, 2022, depending on the satisfaction of certain service and market conditions. The following table shows a summary of restricted shares grants and expense resulting from the awards: Compensation Expense (thousands, except share amounts) For the Fiscal Years Ended, Unrecognized Expense as of, Recipient of Grant Grant Date Restricted Shares 2019 2018 2017 December 28, 2019 December 29, 2018 Members of Management February, 2017 146,564 $367 $439 $360 $ — $ 385 Chief Executive Officer February, 2017 500,000 723 1,194 1,112 506 1,230 Board of Directors April, 2017 14,980 — — 241 — — Members of Management February, 2018 116,958 562 549 — 615 1,176 Special Incentive Grant April, 2018 350,000 1,120 1,436 — 3,428 6,633 Board of Directors May, 2018 13,800 — 285 — — — Board of Directors May, 2019 10,590 285 — — — — Members of Management May, 2019 23,560 202 367 — 458 — During fiscal 2019, the Company also incurred $0.7 million of share-based compensation expense for potential expected future restricted share grants. In February 2017, as part of Mr. Recatto's employment agreement, the Company granted a restricted stock award of 500,000 shares of common stock, which vests through January 2021 in an amount based on the vesting table below, with the common stock price increase to be determined based on the increase in the price of the Company’s common stock (if any) from the closing price of the common stock as reported by Nasdaq on the employment commencement date ($15.00) and the common stock price on the potential vesting date (determined by using the weighted average closing price of a share of the Company's common stock for the 90-day period ending on the vesting date). If the stock price does not increase by $5.00, then no shares shall vest. In fiscal 2019, the Company recorded approximately $0.7 million of compensation expense related to this award. In the future, the Company expects to recognize compensation expense of approximately $0.5 million over the remaining requisite service period, which ends January 31, 2021. The fair value of this restricted stock award as of the grant date was estimated using a Monte Carlo simulation model. Key assumptions used in the Monte Carlo simulation to estimate the grant date fair value of this award are a risk-free rate of 1.70%, expected dividend yield of zero, and an expected volatility assumption of 41.73%. Vesting Table Increase in Stock Price From the Employment Commencement Date to the Vesting Date Total Percentage of Restricted Stock Shares to Be Vested Less than $5 per share increase —% $5 per share increase 25% $10 per share increase 50% $15 per share increase 75% $20 or more per share increase 100% Provision for possible accelerated vesting of award If the weighted average closing price of the Company's common stock increases by the marginal levels set forth in the above vesting table for 180 consecutive days during any period between the award date and final vesting date, Mr. Recatto shall become vested in 50% of the corresponding total percentage of restricted shares earned on the last day of the 180 day period. The remaining 50% of the corresponding shares will vest upon satisfaction of the service conditions at the end of the final vesting date in January 2022. Accelerated vestings achieved to date include the following: Vesting Date Marginal Level Target Shares Fully Vested March 14, 2018 25% 62,500 June 10, 2019 50% 62,500 The following table summarizes information about restricted stock awards for the periods ended December 29, 2018 through December 28, 2019: Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share Nonvested shares outstanding at December 30, 2017 685,999 $ 14.52 Granted 480,755 21.81 Vested (149,710) 14.57 Forfeited (3,181) 17.75 Nonvested shares outstanding at December 29, 2018 1,013,863 $ 18.20 Granted 34,150 26.54 Vested (158,372) 16.52 Forfeited (105,062) 22.01 Nonvested shares outstanding at December 28, 2019 784,579 $ 18.39 Employee Stock Purchase Plan The Employee Stock Purchase Plan of 2008 ("ESPP") is a shareholder approved plan under which all employees regularly scheduled to work 20 or more hours per week may purchase the Company’s common stock through payroll deductions at a price equal to 95% of the fair market values of the stock as of the end of the first day following each three-month offering period. An employee’s payroll deductions under the ESPP are limited to 10% of the employee’s regular earnings, and employees may not purchase more than $25,000 of stock during any calendar year. As of December 28, 2019, the Company had reserved 109,585 shares of common stock available for purchase under the ESPP. In fiscal 2019, employees purchased 19,677 shares of the Company’s common stock with a weighted average fair market value of $25.82 per share. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY Heritage Participation Rights The Company has a Participation Rights Agreement with The Heritage Group (“Heritage”), an affiliate of Heritage-Crystal Clean, Inc. pursuant to which Heritage has the option to participate, pro rata based on its percentage ownership interest in the Company's common stock in any equity offerings for cash consideration, including (i) contracts with parties for equity financing (including any debt financing with an equity component) and (ii) issuances of equity securities or securities convertible, exchangeable or exercisable into or for equity securities (including debt securities with an equity component). If Heritage exercises its rights with respect to all offerings, it will be able to maintain its percentage ownership interest in the Company's common stock. The Participation Rights Agreement does not have an expiration date. Heritage is not required to participate or exercise its right of participation with respect to any offerings. Heritage's right to participate does not apply to certain offerings of securities that are not conducted to raise or obtain equity capital or cash such as stock issued as consideration in a merger or consolidation, in connection with strategic partnerships or joint ventures, or for the acquisition of a business, product, license, or other asset by the Company. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table reconciles the number of shares outstanding for fiscal 2019, 2018, and 2017 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: For the Fiscal Years Ended, (thousands, except per share data) December 28, 2019 December 29, 2018 December 30, 2017 Net income $ 8,749 $ 15,038 $ 28,410 Less: income attributable to noncontrolling interest 386 310 287 Net income attributable to Heritage-Crystal Clean, Inc. common stockholders $ 8,363 $ 14,728 $ 28,123 Weighted average basic shares outstanding 23,160 23,026 22,662 Dilutive shares for share–based compensation plans 238 308 260 Weighted average diluted shares outstanding 23,398 23,334 22,922 Net income per share: basic $ 0.36 $ 0.64 $ 1.24 Net income per share: diluted $ 0.36 $ 0.63 $ 1.23 |
Other Expense (Income) - Net
Other Expense (Income) - Net | 12 Months Ended |
Dec. 28, 2019 | |
Other Income and Expenses [Abstract] | |
Other Expense (Income) - Net | OTHER EXPENSE (INCOME) - NETOther expense (income) - net of $13.5 million for fiscal 2019 primarily consists of an $11.0 million charge taken in the fourth quarter of fiscal 2019 as a result of the settlement of a class action lawsuit to resolve claims made against us in litigation pertaining to fuel surcharges (see "Legal Proceedings"). In addition, approximately $2.7 million of expense was related primarily to costs and asset write-offs associated with site closure. Other expense - net of $1.6 million for fiscal 2018 primarily consists of $1.0 million of site closure costs. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Fiscal 2019 Fiscal 2018 First Second Third Fourth Quarter (a) First Second Third Fourth Quarter (a) (In thousands, except per share data) STATEMENT OF Revenues Service revenues $ 56,366 $ 57,936 $ 57,220 $ 78,969 $ 54,137 $ 60,014 $ 58,054 $ 78,057 Product revenues 35,858 41,302 41,964 52,149 29,010 40,289 41,620 49,002 Rental income 3,548 5,762 5,657 7,696 — — — — Total revenues $ 95,772 $ 105,000 $ 104,841 $ 138,814 $ 83,147 $ 100,303 $ 99,674 $ 127,059 Operating expenses Operating costs $ 82,483 $ 78,849 $ 80,117 $ 108,154 $ 68,386 $ 76,272 $ 76,045 $ 102,462 Selling, general, and administrative expenses 12,396 11,042 11,241 15,545 11,022 11,522 10,641 14,529 Depreciation and amortization 4,136 4,061 3,980 6,072 3,643 3,659 3,776 5,079 Other (income) expense - net (58) 1,514 1,021 11,013 389 341 253 623 Operating (loss) income (3,185) 9,534 8,482 (1,970) (293) 8,509 8,959 4,366 Interest expense – net 230 219 180 240 245 240 256 310 (Loss) income before income taxes $ (3,415) $ 9,315 $ 8,302 $ (2,210) $ (538) $ 8,269 $ 8,703 $ 4,056 (Benefit of) provision for income taxes (986) 2,151 2,246 (168) (436) 2,149 2,284 1,455 Net (loss) income (2,429) 7,164 6,056 (2,042) (102) 6,120 6,419 2,601 Less: income attributable to noncontrolling interest 83 108 87 108 18 121 74 97 Net (loss) income attributable to Heritage-Crystal Clean, Inc. common stockholders $ (2,512) $ 7,056 $ 5,969 $ (2,150) $ (120) $ 5,999 $ 6,345 $ 2,504 Net (loss) income per share: basic $ (0.11) $ 0.30 $ 0.26 $ (0.09) $ (0.01) $ 0.26 $ 0.28 $ 0.11 Net (loss) income per share: diluted $ (0.11) $ 0.30 $ 0.25 $ (0.09) $ (0.01) $ 0.26 $ 0.27 $ 0.11 Number of weighted average 23,117 23,137 23,185 23,190 22,962 23,029 23,048 23,056 Number of weighted average 23,117 23,368 23,421 23,190 22,962 23,361 23,404 23,411 OTHER OPERATING DATA: Average revenues per working day - Environmental Services $ 1,125 $ 1,185 $ 1,185 $ 1,255 $ 970 $ 1,090 $ 1,090 $ 1,130 (a) Reflects a sixteen week quarter. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Fiscal Period | Our fiscal year ends on the Saturday closest to December 31. "Fiscal 2019" represents the 52-week period ended December 28, 2019. "Fiscal 2018" represents the 52-week period ended December 29, 2018. "Fiscal 2017" represents the 52-week period ended December 30, 2017. The most recent fiscal year ended on December 28, 2019. 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 EstimatesThe 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 revenues 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 net realizable value, valuation of goodwill and other intangible assets, share-based compensation, and income taxes. Actual results could differ from those estimates. |
Sales Tax | Sales TaxAmounts billed for sales tax, value added tax, or other transactional taxes imposed on revenue producing transactions are presented on a net basis and are not recognized as revenues. |
Revenue Recognition | Operating CostsWithin operating costs are cost of sales. Cost of sales in the Environmental Services segment includes the cost of the materials the Company sells and provides in its services, such as solvents and other chemicals, transportation of inventory and waste, and payments to third parties to recycle or dispose of a portion of the waste materials the Company collects. Parts cleaning machines are either sold to a customer or continue to be owned by the Company but placed offsite at a customer location to be used in parts cleaning services. When sold to a customer, machines are removed from inventory, and the costs are recognized under operating costs. The used solvent that the Company 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 the costs paid to customers for used oil (if any), transportation out to customers, and costs to operate the used oil re-refinery, including utilities. Operating costs also include the Company's costs of operating its branch system and hubs. These costs include personnel costs, facility rent and utilities, truck leases, fuel, transportation, and maintenance. Operating costs are not presented separately for products and services. Shipping Costs For all periods presented, amounts billed to customers related to shipping and handling are classified as revenue, and the Company's shipping and handling costs are included in operating costs. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when our performance obligations under the terms of a contract with our customers are satisfied. Recognition occurs when the Company transfers control by completing the specified services at the point in time the customer benefits from the services performed or once our products are delivered. The Company measures progress toward complete satisfaction of a performance obligation satisfied over time using a cost-based input method. This method of measuring progress provides a faithful depiction of the transfer of goods or services because the costs incurred are expected to be substantially proportionate to the Company’s satisfaction of the performance obligation. Revenue is measured as the amount of consideration we expect to receive in exchange for completing our performance obligations. Sales tax and other taxes we collect with revenue-producing activities are excluded from revenue. In the case of contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on the relative stand-alone selling prices of the various goods and/or services encompassed by the contract. We do not have any material significant payment terms as payment is generally due within 30 days after the performance obligation has been satisfactorily completed. The Company has elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. In applying the guidance in Topic 606, there were no judgments or estimates made that the Company deems significant. Accounts Receivable — Net , includes amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable. The Company determines the allowance based on analysis of customer credit worthiness and historical losses. Accounts receivable are written off once the Company determines the account to be uncollectible. The Company does not have any off-balance-sheet credit exposure related to its customers. |
Selling, General, and Administrative Expenses | Selling, General, and Administrative Expenses Selling, general, and administrative expenses include costs of performing centralized business functions, including sales management at or above the regional level, billing, receivables management, accounting and finance, information technology, environmental health and safety, human resources and legal. |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company considers highly liquid investments, purchased with an original maturity of ninety days or less, to be cash equivalents. |
Concentration Risk | Concentration RiskFinancial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution in the United States of America are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. The Company had cash deposits in excess of the FDIC insured limit of $60.4 million and $43.4 million at December 28, 2019 and December 29, 2018, respectively. The Company has not experienced any losses in such accounts. The Company has a broad customer base and believes it is not exposed to any significant concentration of credit risk. |
Accounts Receivable | Accounts Receivable |
Inventory | Inventory Inventory consists primarily of used oil, processed oil, catalyst, new and used solvents, new and refurbished parts cleaning machines, new and used antifreeze products, drums, and other items. Inventories are valued at the lower of first-in, first-out ("FIFO") cost or net realizable value, net of any reserves for excess, obsolete, or unsalable inventory. The Company performs a physical inventory count on a periodic basis and uses the results of these counts to determine inventory quantities. These quantities are used to help determine the value of the inventory. |
Prepaid and Other Current Assets | Prepaid and Other Current Assets Prepaid and other current assets include, but are not limited to, insurance and vehicle license contract costs, which are expensed over the term of the underlying contract. |
Property, Plant and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost. Expenditures for major renewals and improvements are capitalized, while expenditures for repair and maintenance charges are expensed as incurred. Property, plant, and equipment acquired in business combinations is stated at fair value as of the date of the acquisition. Depreciation of property, plant, and equipment is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of buildings and storage tanks range from 10 to 39 years. The estimated useful lives of machinery, vehicles, and equipment range from 3 to 25 years. Leasehold improvements are amortized over the shorter of the lease terms or five years using the straight-line method. |
Equipment at Customers | Equipment at Customers The Company records purchases of new parts cleaning and aqua filtration machines as inventory. Parts cleaning machines are either sold to a customer or continue to be owned by the Company but placed at a customer location to be used in parts cleaning services. Aqua filtration machines are exclusively placed at a customer location to be used to filter customer fluids. When sold to a customer, machines are removed from inventory, and the appropriate revenues and costs are recognized in the Income Statement. When the Company retains title to a machine that is placed off-site at a customer location to be used in parts cleaning or aqua filtration services, the Company capitalizes the machine as a productive non-current asset under the Balance Sheet caption “Equipment at Customers” at the time the machine is placed at the customer’s site. Machines capitalized as Equipment at Customers are depreciated over their estimated useful lives of 7 to 15 years, depending on the model. Depreciation of in-service equipment commences when equipment is placed in service at a customer location. Expenditures for machines that are sold to a customer are treated as a cash outflow from operating activities on the Statement of Cash Flows. Expenditures for machines that are placed at a customer’s site to be used in parts cleaning services are treated as a cash outflow from investing activities. |
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 as of 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 that restructuring costs be expensed in periods subsequent to the acquisition date. In many cases, the Company engaged third party valuation appraisal firms to assist the Company in determining the fair values and useful lives of the assets acquired and liabilities assumed. The Company records a preliminary purchase price allocation for its acquisitions and finalizes purchase price allocations at the earlier of one year after acquisition date, or 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 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 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 |
Software Costs | Software CostsThe Company expenses costs incurred in the research stage of developing or acquiring internal use software, such as research and feasibility studies, as well as costs incurred in the post-implementation/operational stage, such as maintenance and training. Capitalization of software costs occurs only after the research stage is complete and after the development stage begins. The capitalized costs are amortized on a straight-line basis over the estimated useful lives of the software, ranging from 5 to 10 years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived AssetsLong-lived assets, such as property and equipment and intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset. There were no impairment charges in fiscal 2019 or in fiscal 2018. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. |
Income Taxes | Income Taxes The Company accounts for income taxes to recognize the amount of taxes payable or refundable for the current year and the amount of deferred tax assets and liabilities resulting from the future tax consequences of differences between the financial statements and tax basis of the respective assets and liabilities. The Company estimates and reserves for any material uncertain tax position that is unlikely to withstand an audit by the taxing authorities. These estimates are based on judgments made with currently available information. The Company reviews these estimates and makes changes to recorded amounts of any uncertain tax positions as facts and circumstances warrant. |
Research and Development | Research and DevelopmentResearch and development costs are expensed as incurred within general, selling, and administrative expenses. |
Advertising Costs | Advertising CostsAdvertising costs are expensed as incurred. |
Share-Based Compensation | Share-Based Compensation |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsThe 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 December 28, 2019 and December 29, 2018, 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. |
Insurance and Self-Insurance Policy | Insurance and Self-Insurance Policy The Company purchases insurance providing financial protection from a range of risks; as of the end of fiscal 2019, the Company's insurance policies provided coverage for general liability, vehicle liability, and pollution liability, among other exposures. Each of these policies contains exclusions and limitations such that they would not cover all related exposures and each of these policies have maximum coverage limits and deductibles such that even in the event of an insured claim, the Company's net exposure could still have a material adverse effect on its financial results. |
Goodwill | GoodwillGoodwill 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. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting standards not yet adopted Standard Issuance Date Description Our Effective Date Effect on the Financial Statements ASU 2017-04 Goodwill and Other – Simplifying the Test for Goodwill Impairment (Topic 350) January 2017 Topic 350 simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. ASU 2017-4 is effective for annual and interim goodwill tests beginning after December 15, 2019. December 29, 2019 The Company is currently evaluating the impact of Topic 350, and does not expect the adoption to have a significant impact to our consolidated financial statements. ASU 2016-13 Financial Instruments – Credit Losses (Topic 326) June 2016 Topic 326 eliminates the probable initial recognition threshold and, instead, requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. December 29, 2019 The Company is currently evaluating the impact of Topic 326 on our consolidated financial position, results of operations and disclosures. The Company will adopt the standard effective December 29, 2019 and does not expect the adoption of Topic 326 to have a significant impact to our consolidated financial statements. Recently issued accounting standards adopted Standard Issuance Date Description Effective Date Effect on the Financial Statements ASU 2016-02 February 2016 This update was issued 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 lessees, the new standard requires recognition on the balance sheet of a right-of-use asset and a lease liability, initially measured at the present value of the lease payments. For lessees in operating leases, it further requires recognition in the statement of income of a single lease cost, allocated over the lease term on a generally straight-line basis. Early application of the amendments in this update is permitted for all entities. December 30, 2018 The Company adopted the new leasing standard ASC 842 "Leases" on December 30, 2018. ASU 2016-02 provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption. The Company elected to apply ASU 2016-02 as of the beginning of the period of adoption (December 30, 2018) and will not restate comparative periods. The adoption resulted in the recognition of $63.3 million of right of use assets and $63.3 million of lease liabilities. The Company recognized approximately $2.2 million of deferred rental income from certain embedded leases during the first quarter of 2019. As allowed under Topic 842, we adopted the following practical expedients: Practical expedient package, which allows the following: To not reassess whether any expired or existing contracts is or contains a lease. To not reassess the lease classification of any expired or existing lease. To not reassess the initial direct costs for any existing lease. Short-term lease practical expedient: Allows us not to apply the recognition requirements in ASC 842 to short-term leases for all asset classes. Short term leases are leases that, at commencement date, have a term of 12 months or less and do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. Separating lease components practical expedient: Allows us not to separate lease components from nonlease components for all asset classes and instead account for each separate lease and the nonlease components associated with that lease component as a single lease component. ASU 2014-09 “Revenue from Contracts with Customers (Topic 606),” ASU 2014-15 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” ASU 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10 “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” and ASU 2016-12 “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” May 2014 and subsequent These standards outline a single comprehensive model for entities to use in accounting for revenue using a five-step process that supersedes virtually all existing revenue guidance. The underlying principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities have the option of using either a full retrospective approach or a modified retrospective approach to adopt the guidance. Early adoption is permitted. December 31, 2017 On December 31, 2017, we adopted the new accounting standard ASC 606, “Revenue from Contracts with Customers” using the modified retrospective method. We recognized the cumulative effect as an adjustment to our opening balance of retained earnings. ASU 2016-09 Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. (Topic 718) March 2016 This update 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. Early adoption is permitted. January 1, 2017 ASU 2016-09 simplified the treatment for employee share-based compensation by allowing an entity to recognize excess tax benefits in the current period whether or not current taxes payable are reduced. Prior to 2017 the Company could not recognize windfall tax benefits associated with employee share-based compensation because it was in an NOL position and current taxes payable would not be reduced by the excess tax benefits. As a result of ASU 2016-09 the Company recognized excess tax benefits of $2.5 million from share-based compensation from prior years, resulting in cumulative-effect increases to retained earnings and deferred tax assets of approximately $1.0 million. In conjunction with the adoption of ASU 2016-09, the Company reclassified $131 thousand of cash outflows for share repurchases to satisfy tax withholding obligations from Cash flows from Operating Activities to Cash flows from Financing Activities compared to the amounts previously reported for the fiscal year ended January 2, 2016. ASU 2015-11, Simplifying the Measurement of Inventory. (Topic 330) July 2015 This update requires the measurement of inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. January 1, 2017 The adoption of ASU 2015-11 at the start of fiscal 2017 resulted in no impact to our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Schedule Cumulative Effects | Effective December 30, 2018, we adopted the requirements of Topic 842. The cumulative effects of the changes made to our statement of income and balance sheet were as follows: For the Fiscal Year Ended, December 28, 2019 As Reported Balances Without Adoption of Topic 842 Effect of Change (thousands) Higher/(Lower) Statement of Income Service revenues $ 250,491 $ 275,239 $ (24,748) Rental income 22,663 — 22,663 Total revenues 444,427 446,512 (2,085) Operating income 12,861 14,946 (2,085) Income before income taxes 11,992 14,077 (2,085) Provision for income taxes 3,243 3,807 (564) Net income 8,749 10,270 (1,521) Income attributable to Heritage-Crystal Clean, Inc. common stockholders $ 8,363 $ 9,884 $ (1,521) Net income per share: basic $ 0.36 $ 0.43 $ (0.07) Net income per share: diluted $ 0.36 $ 0.43 $ (0.07) December 28, 2019 As Reported Balances Without Adoption of Topic 842 Effect of Change (thousands) Higher/(Lower) Balance Sheet Right of use assets $ 89,525 $ — $ 89,525 Total assets 471,314 381,789 89,525 Current portion of lease liabilities 20,407 — 20,407 Contract liabilities - net 2,252 167 2,085 Other current liabilities 16,418 16,034 384 Total current liabilities 90,444 67,568 22,876 Lease liabilities, net of current portion 68,734 — 68,734 Deferred income taxes 17,157 17,721 (564) Total liabilities 205,683 114,637 91,046 Retained earnings 64,182 65,703 (1,521) Heritage-Crystal Clean, Inc. stockholders' equity 264,997 266,518 (1,521) Total equity 265,631 267,152 (1,521) Total liabilities and stockholders' equity $ 471,314 $ 381,789 $ 89,525 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Schedule Estimated Fair Values of Assets Acquired, Net of Cash Acquired | The following table summarizes the estimated fair values of the assets acquired, net of cash acquired, related to each acquisition as of December 28, 2019: (thousands) California Environmental & Litho All Valley Disposal GlyEco WSS PPI HTSC Accounts receivable $ 67 $ 36 $ 107 $ — $ 909 $ 40 Inventory 3 18 291 28 259 3 Property, plant, & equipment 15 252 746 154 2,154 47 Equipment at customers — — — 24 — 104 Intangible assets 445 310 251 298 2,001 100 Goodwill 3 384 251 — 406 377 Total purchase price, net of cash acquired $ 533 $ 1,000 $ 1,646 $ 504 $ 5,729 $ 671 Less: working capital adjustment — — 23 14 (62) (9) Less: deferred consideration — — — — — 137 Less: contingent consideration 120 250 — 40 906 50 Less: to be placed in escrow 50 100 — 50 — — Net cash paid $ 363 $ 650 $ 1,623 $ 400 $ 4,885 $ 493 |
Unaudited Pro Forma Financial Information | The combined results of California Environmental & Litho, All Valley Disposal, and WSS were excluded from the pro forma information due to immateriality. Fiscal Year Ended, (Thousands, except per share data) December 28, 2019 December 29, 2018 Total revenues $ 444,627 $ 419,340 Income attributable to HCCI Common Stockholders 8,339 14,171 Net income per share: basic $ 0.36 $ 0.62 Net income per share: diluted $ 0.36 $ 0.61 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Major Lines | The following table disaggregates our revenue by major lines: For the Fiscal Year Ended, For the Fiscal Year Ended, Total Net Sales by Major Lines of Business (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Parts cleaning, containerized waste, & related products/services $ 168,521 $ — $ 168,521 $ 178,607 $ — $ 178,607 Vacuum Services & Wastewater Treatment 60,736 — 60,736 53,934 — 53,934 Antifreeze Business 27,321 — 27,321 19,021 — 19,021 Field Services 21,701 — 21,701 17,692 — 17,692 Environmental Services - Other 1,856 — 1,856 1,877 — 1,877 Re-refinery Product Sales — 115,551 115,551 — 112,472 112,472 Oil Collection Services & RFO — 21,445 21,445 — 21,405 21,405 Oil Filter Business — 4,633 4,633 — 4,838 4,838 Revenues from Contracts with Customers 280,135 141,629 421,764 271,131 138,715 409,846 Other Revenue 22,408 255 22,663 — 337 337 Total Revenues $ 302,543 $ 141,884 $ 444,427 $ 271,131 $ 139,052 $ 410,183 |
Contract Assets and Contract Liabilities from Contracts with Customers | The following table provides information about contract assets and contract liabilities from contracts with customers: (thousands) December 28, 2019 December 29, 2018 Contract assets $ 64 $ 100 Contract liabilities 2,316 266 Contract liabilities - net $ 2,252 $ 166 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consisted of the following: (thousands) December 28, December 29, Trade $ 54,420 $ 51,118 Less: allowance for doubtful accounts 2,221 1,816 Trade - net 52,199 49,302 Related parties 1,560 1,595 Other 1,827 847 Total accounts receivable - net $ 55,586 $ 51,744 The following table provides the changes in the Company’s allowance for doubtful accounts for the fiscal year ended December 28, 2019 and the fiscal year ended December 29, 2018: (thousands) December 28, December 29, Balance at beginning of period $ 1,816 $ 1,881 Provision for bad debts 1,486 628 Accounts written off, net of recoveries (1,081) (693) Balance at end of period $ 2,221 $ 1,816 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The carrying value of inventory consisted of the following: (thousands) December 28, December 29, Solvents and solutions $ 8,694 $ 8,216 Used oil and processed oil 8,349 12,124 Machines 5,440 5,334 Drums and supplies 4,697 5,231 Other 2,632 2,378 Total inventory 29,812 33,283 Less: machine refurbishing reserve 439 224 Total inventory - net $ 29,373 $ 33,059 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant, and equipment consisted of the following: (thousands) December 28, December 29, Machinery, vehicles, and equipment $ 127,242 $ 98,708 Buildings and storage tanks 71,616 69,791 Land 9,664 9,546 Leasehold improvements 6,523 5,701 Construction in progress 7,958 15,405 Assets held for sale 4 4 Total property, plant, and equipment 223,007 199,155 Less: accumulated depreciation 68,096 59,168 Property, plant, and equipment - net $ 154,911 $ 139,987 (thousands) December 28, December 29, Equipment at customers $ 77,914 $ 73,075 Less: accumulated depreciation 53,682 49,261 Equipment at customers - net $ 24,232 $ 23,814 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table shows changes to our goodwill balances by segment during the years ended December 29, 2018, and December 28, 2019: (thousands) Oil Business Environmental Services Total Goodwill at December 30, 2017 Gross carrying amount 3,952 31,580 35,532 Accumulated impairment loss (3,952) — (3,952) Net book value at December 30, 2017 $ — $ 31,580 $ 31,580 Acquisitions — 2,543 2,543 Goodwill at December 29, 2018 Gross carrying amount 3,952 34,123 38,075 Accumulated impairment loss (3,952) — (3,952) Net book value at December 29, 2018 $ — $ 34,123 $ 34,123 Acquisitions — 639 — Measurement period adjustments — (1,765) — Goodwill at December 28, 2019 Gross carrying amount 3,952 32,997 36,949 Accumulated impairment loss (3,952) — (3,952) Net book value at December 28, 2019 $ — $ 32,997 $ 32,997 |
Schedule of Finite-Lived Intangible Assets | Following is a summary of software and other intangible assets: December 28, 2019 December 29, 2018 (thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships $ 25,551 $ 13,886 $ 11,665 $ 23,686 $ 11,445 $ 12,241 Software 8,093 4,887 3,206 5,040 4,094 946 Patents, formulae, and licenses 1,769 774 995 1,769 708 1,061 Non-compete agreements 3,603 3,068 535 2,937 2,904 33 Other 1,702 1,211 491 1,442 1,042 400 Total software and intangible assets $ 40,718 $ 23,826 $ 16,892 $ 34,874 $ 20,193 $ 14,681 The weighted average useful lives of customer and supplier relationships are as follows: Intangible asset Weighted average useful life (years) Patents, formulae, & licenses 15 Customer and supplier relationships 11 Software 9 Non-compete agreements 5 Other intangibles 7 |
Finite-lived Intangible Assets Amortization Expense | The estimated amortization expense for each of the five succeeding fiscal years is as follows: Fiscal Year Amortization Expense (millions) 2020 $3.3 2021 $3.2 2022 $2.9 2023 $2.4 2024 $0.9 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable | Accounts payable consisted of the following: (thousands) December 28, December 29, Accounts payable $ 37,690 $ 32,471 Accounts payable - related parties 368 159 Total accounts payable $ 38,058 $ 32,630 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt at December 28, 2019 and December 29, 2018 consisted of the following: (thousands) December 28, 2019 December 29, 2018 Principal amount $ 30,000 $ 30,000 Less: unamortized debt issuance costs 652 954 Long-term debt, less current maturities $ 29,348 $ 29,046 |
Schedule of Maturities of Long-term Debt | The aggregate contractual annual maturities for debt as of December 28, 2019 are as follows: Fiscal Year: Term Loan (thousands) 2020 $ — 2021 — 2022 30,000 2023 — 2024 — Aggregate Maturities $ 30,000 |
Related Party and Affiliate T_2
Related Party and Affiliate Transactions (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | During fiscal 2019, 2018, and 2017, the Company had transactions with the Heritage Group affiliates and other related parties. The following table sets forth related-party transactions: Fiscal 2019 Fiscal 2018 Fiscal 2017 (thousands) Revenues Expenses Revenues Expenses Revenues Expenses Heritage Group affiliates $ 8,705 $ 3,846 $ 8,168 $ 2,202 $ 4,740 $ 2,965 Other related parties / affiliates 7,653 486 6,497 827 4,516 50 Total $ 16,358 $ 4,332 $ 14,665 $ 3,029 $ 9,256 $ 3,015 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Segment results for the fiscal years ended December 28, 2019, December 29, 2018, and December 30, 2017 were as follows: For the Fiscal Years Ended, December 28, 2019 (thousands) Environmental Oil Business Corporate and Consolidated Revenues Service revenues $ 236,530 $ 13,961 $ — $ 250,491 Product revenues 43,605 127,668 — 171,273 Rental income 22,408 255 — 22,663 Total revenues $ 302,543 $ 141,884 $ — $ 444,427 Operating expenses Operating costs 219,040 130,563 — 349,603 Operating depreciation and amortization 7,768 6,656 — 14,424 Profit before corporate selling, general, and administrative expenses $ 75,735 $ 4,665 $ — $ 80,400 Selling, general, and administrative expenses 50,224 50,224 Depreciation and amortization from SG&A 3,825 3,825 Total selling, general, and administrative expenses $ 54,049 $ 54,049 Other expense - net 13,490 13,490 Operating income 12,861 Interest expense - net 869 869 Income before income taxes $ 11,992 December 29, 2018 (thousands) Environmental Oil Business Corporate and Consolidated Revenues Service revenues $ 237,806 $ 12,456 $ — $ 250,262 Product revenues 33,325 126,596 — 159,921 Total revenues $ 271,131 $ 139,052 $ — $ 410,183 Operating expenses Operating costs 194,959 128,206 — 323,165 Operating depreciation and amortization 6,766 6,141 — 12,907 Profit before corporate selling, general, and administrative expenses $ 69,406 $ 4,705 $ — $ 74,111 Selling, general, and administrative expenses 47,714 47,714 Depreciation and amortization from SG&A 3,250 3,250 Total selling, general, and administrative expenses $ 50,964 $ 50,964 Other expense - net 1,606 1,606 Operating income 21,541 Interest expense - net 1,052 1,052 Income before income taxes $ 20,489 December 30, 2017 (thousands) Environmental Oil Business Corporate and Consolidated Revenues Service revenues $ 212,883 $ 21,116 $ — $ 233,999 Product revenues 25,172 106,786 — 131,958 Total revenues $ 238,055 $ 127,902 $ — $ 365,957 Operating expenses Operating costs 163,633 112,469 — 276,102 Operating depreciation and amortization 7,526 6,776 — 14,302 Profit before corporate selling, general, and administrative expenses $ 66,896 $ 8,657 $ — $ 75,553 Selling, general, and administrative expenses 47,401 47,401 Depreciation and amortization from SG&A 3,665 3,665 Total selling, general, and administrative expenses $ 51,066 $ 51,066 Other (income) - net (10,940) (10,940) Operating income 35,427 Interest expense - net 1,094 1,094 Income before income taxes $ 34,333 |
Reconciliation of Assets from Segment to Consolidated | Total assets by segment as of December 28, 2019 and December 29, 2018 were as follows: (thousands) December 28, 2019 December 29, 2018 Total Assets: Environmental Services $ 224,657 $ 148,192 Oil Business 171,104 142,691 Unallocated Corporate Assets 75,553 56,939 Total $ 471,314 $ 347,822 |
Capital Expenditures by Segment | Capital expenditures by segment for fiscal 2019, 2018, and 2017 were as follows: For the Fiscal Years Ended, (thousands) December 28, 2019 December 29, 2018 December 30, 2017 Total Capital Expenditures: Environmental Services $ 18,499 $ 12,756 $ 6,843 Oil Business 12,670 9,858 6,998 Unallocated Corporate Assets 124 206 559 Total $ 31,293 $ 22,820 $ 14,400 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: (thousands) For the Fiscal Year Ended, Finance lease cost: Amortization of right-of-use Assets $ 288 Interest on lease liabilities 67 Total finance lease cost $ 355 Operating lease cost $ 26,717 Short-term lease cost 5,029 Variable lease cost 4,187 Total lease cost $ 35,933 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from financing leases $ 58 Operating cash flows from operating leases 26,409 Financing cash flows from financing leases 191 Right-of-use assets obtained in exchange for new finance lease liabilities 6,539 Right-of-use assets obtained in exchange for new operating lease liabilities 104,963 Weighted-average remaining lease term (years) Finance leases 6.7 Operating leases 5.1 Weighted-average discount rate Finance leases 3.4 % Operating leases 5.8 % |
Future Annual Minimum Operating Lease Payment Commitments | Future annual minimum lease payment commitments as of December 28, 2019 were as follows: (thousands) Operating Leases Finance Leases Total 2020 $ 23,894 $ 883 $ 24,777 2021 20,484 883 21,367 2022 16,902 883 17,785 2023 12,745 883 13,628 2024 8,702 883 9,585 2025 and thereafter 13,367 2,828 16,195 Total minimum lease payments $ 96,094 $ 7,243 $ 103,337 Less: imputed interest 13,311 885 14,196 Lease liability $ 82,783 $ 6,358 $ 89,141 |
Future Annual Minimum Financing Lease Payment Commitments | Future annual minimum lease payment commitments as of December 28, 2019 were as follows: (thousands) Operating Leases Finance Leases Total 2020 $ 23,894 $ 883 $ 24,777 2021 20,484 883 21,367 2022 16,902 883 17,785 2023 12,745 883 13,628 2024 8,702 883 9,585 2025 and thereafter 13,367 2,828 16,195 Total minimum lease payments $ 96,094 $ 7,243 $ 103,337 Less: imputed interest 13,311 885 14,196 Lease liability $ 82,783 $ 6,358 $ 89,141 |
Schedule of Future Minimum Rental Payments for Operating Leases | As disclosed in our 2018 Annual Report on Form 10-K, and under the previous lease accounting standard 840, future minimum lease payments due under noncancelable operating lease agreements as of December 29, 2018 were as follows: (thousands) 2019 $ 22,226 2020 16,095 2021 12,458 2022 9,247 2023 6,020 2024 and thereafter 5,786 Total minimum lease payments $ 71,832 |
Rental Income | Rental income for the fourth quarter and fiscal year ended December 28, 2019 was as follows: For the Fiscal Year Ended December 28, 2019 (thousands) Environmental Services Oil Business Total Parts Cleaning $ 22,408 $ — $ 22,408 Railcars — 213 213 Property — 42 42 Total rental income $ 22,408 $ 255 $ 22,663 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Components of the Company's income tax benefit and provision consist of the following for fiscal years 2019, 2018, and 2017: For the Fiscal Years Ended, (thousands) December 28, 2019 December 29, 2018 December 30, 2017 Current: Federal $ (79) $ (306) $ 409 State 681 797 263 Total current $ 602 $ 491 $ 672 Deferred: Federal $ 2,328 $ 4,093 $ 4,501 State 313 778 829 Foreign — 89 (79) Total deferred $ 2,641 $ 4,960 $ 5,251 Income tax provision $ 3,243 $ 5,451 $ 5,923 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the expected income tax expense at the statutory federal rate to the Company's actual income tax expense is as follows: For the Fiscal Years Ended, (thousands) December 28, 2019 December 29, 2018 December 30, 2017 Tax expense at statutory federal rate $ 2,518 $ 4,303 $ 11,673 State and local tax, net of federal expense 785 1,245 720 Windfalls from share-based compensation (369) (331) (412) Impact of Federal Rate Change — — (6,156) Valuation allowance 117 192 (126) Other 192 42 224 Total income tax provision $ 3,243 $ 5,451 $ 5,923 |
Schedule of Deferred Tax Assets and Liabilities | Components of deferred tax assets (liabilities) are as follows: As of, (thousands) December 28, 2019 December 29, 2018 Deferred tax assets: Net operating loss carryforward $ 6,457 $ 4,966 Stock compensation 2,167 1,640 Tax intangible assets 1,327 1,444 Reserves and accruals 9,432 5,776 Income tax credits 1,023 1,345 Allowance for doubtful accounts 606 525 Total deferred tax asset $ 21,012 $ 15,696 Less: valuation allowance 310 193 Net deferred tax asset $ 20,702 $ 15,503 Deferred tax liabilities: Prepaids $ (690) $ (645) Depreciation and amortization (37,169) (29,374) Total deferred tax liability $ (37,859) $ (30,019) Net deferred tax liability $ (17,157) $ (14,516) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarizes the movement in unrecognized tax benefits: For the Fiscal Years Ended, (thousands) December 28, 2019 December 29, 2018 Gross Unrecognized Tax Benefits: Beginning balance $ 2,544 $ 2,509 Additions based on current year's tax positions 47 36 Net changes based on prior year's tax positions 87 (1) Ending balance $ 2,678 $ 2,544 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | A summary of stock option activity under this Plan is as follows: Stock Options Number of Weighted Average Weighted Average Aggregate Options outstanding at December 30, 2017 19,435 $ 7.33 1.23 $ 280 Exercised (16,675) $ 7.33 Options outstanding at December 29, 2018 2,760 $ 7.33 0.24 $ 41 Exercised (2,760) $ 7.33 Options outstanding at December 28, 2019 — $ — — $ — |
Schedule of Restricted Stock Unit Activity | The following table shows a summary of restricted shares grants and expense resulting from the awards: Compensation Expense (thousands, except share amounts) For the Fiscal Years Ended, Unrecognized Expense as of, Recipient of Grant Grant Date Restricted Shares 2019 2018 2017 December 28, 2019 December 29, 2018 Members of Management February, 2017 146,564 $367 $439 $360 $ — $ 385 Chief Executive Officer February, 2017 500,000 723 1,194 1,112 506 1,230 Board of Directors April, 2017 14,980 — — 241 — — Members of Management February, 2018 116,958 562 549 — 615 1,176 Special Incentive Grant April, 2018 350,000 1,120 1,436 — 3,428 6,633 Board of Directors May, 2018 13,800 — 285 — — — Board of Directors May, 2019 10,590 285 — — — — Members of Management May, 2019 23,560 202 367 — 458 — The following table summarizes information about restricted stock awards for the periods ended December 29, 2018 through December 28, 2019: Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share Nonvested shares outstanding at December 30, 2017 685,999 $ 14.52 Granted 480,755 21.81 Vested (149,710) 14.57 Forfeited (3,181) 17.75 Nonvested shares outstanding at December 29, 2018 1,013,863 $ 18.20 Granted 34,150 26.54 Vested (158,372) 16.52 Forfeited (105,062) 22.01 Nonvested shares outstanding at December 28, 2019 784,579 $ 18.39 |
Schedule of Restricted Stock Vesting Percentages | Vesting Table Increase in Stock Price From the Employment Commencement Date to the Vesting Date Total Percentage of Restricted Stock Shares to Be Vested Less than $5 per share increase —% $5 per share increase 25% $10 per share increase 50% $15 per share increase 75% $20 or more per share increase 100% Accelerated vestings achieved to date include the following: Vesting Date Marginal Level Target Shares Fully Vested March 14, 2018 25% 62,500 June 10, 2019 50% 62,500 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles the number of shares outstanding for fiscal 2019, 2018, and 2017 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: For the Fiscal Years Ended, (thousands, except per share data) December 28, 2019 December 29, 2018 December 30, 2017 Net income $ 8,749 $ 15,038 $ 28,410 Less: income attributable to noncontrolling interest 386 310 287 Net income attributable to Heritage-Crystal Clean, Inc. common stockholders $ 8,363 $ 14,728 $ 28,123 Weighted average basic shares outstanding 23,160 23,026 22,662 Dilutive shares for share–based compensation plans 238 308 260 Weighted average diluted shares outstanding 23,398 23,334 22,922 Net income per share: basic $ 0.36 $ 0.64 $ 1.24 Net income per share: diluted $ 0.36 $ 0.63 $ 1.23 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Fiscal 2019 Fiscal 2018 First Second Third Fourth Quarter (a) First Second Third Fourth Quarter (a) (In thousands, except per share data) STATEMENT OF Revenues Service revenues $ 56,366 $ 57,936 $ 57,220 $ 78,969 $ 54,137 $ 60,014 $ 58,054 $ 78,057 Product revenues 35,858 41,302 41,964 52,149 29,010 40,289 41,620 49,002 Rental income 3,548 5,762 5,657 7,696 — — — — Total revenues $ 95,772 $ 105,000 $ 104,841 $ 138,814 $ 83,147 $ 100,303 $ 99,674 $ 127,059 Operating expenses Operating costs $ 82,483 $ 78,849 $ 80,117 $ 108,154 $ 68,386 $ 76,272 $ 76,045 $ 102,462 Selling, general, and administrative expenses 12,396 11,042 11,241 15,545 11,022 11,522 10,641 14,529 Depreciation and amortization 4,136 4,061 3,980 6,072 3,643 3,659 3,776 5,079 Other (income) expense - net (58) 1,514 1,021 11,013 389 341 253 623 Operating (loss) income (3,185) 9,534 8,482 (1,970) (293) 8,509 8,959 4,366 Interest expense – net 230 219 180 240 245 240 256 310 (Loss) income before income taxes $ (3,415) $ 9,315 $ 8,302 $ (2,210) $ (538) $ 8,269 $ 8,703 $ 4,056 (Benefit of) provision for income taxes (986) 2,151 2,246 (168) (436) 2,149 2,284 1,455 Net (loss) income (2,429) 7,164 6,056 (2,042) (102) 6,120 6,419 2,601 Less: income attributable to noncontrolling interest 83 108 87 108 18 121 74 97 Net (loss) income attributable to Heritage-Crystal Clean, Inc. common stockholders $ (2,512) $ 7,056 $ 5,969 $ (2,150) $ (120) $ 5,999 $ 6,345 $ 2,504 Net (loss) income per share: basic $ (0.11) $ 0.30 $ 0.26 $ (0.09) $ (0.01) $ 0.26 $ 0.28 $ 0.11 Net (loss) income per share: diluted $ (0.11) $ 0.30 $ 0.25 $ (0.09) $ (0.01) $ 0.26 $ 0.27 $ 0.11 Number of weighted average 23,117 23,137 23,185 23,190 22,962 23,029 23,048 23,056 Number of weighted average 23,117 23,368 23,421 23,190 22,962 23,361 23,404 23,411 OTHER OPERATING DATA: Average revenues per working day - Environmental Services $ 1,125 $ 1,185 $ 1,185 $ 1,255 $ 970 $ 1,090 $ 1,090 $ 1,130 (a) Reflects a sixteen week quarter. |
Organization and Nature of Op_2
Organization and Nature of Operations (Details) | 12 Months Ended |
Dec. 28, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||||
Dec. 28, 2019USD ($) | Dec. 28, 2019USD ($)reporting_unit | Dec. 28, 2019USD ($)segment | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | $ 60,694,000 | $ 60,694,000 | $ 60,694,000 | $ 60,694,000 | $ 43,579,000 | |
Cash deposits in excess of FDIC insured limit | 60,400,000 | 60,400,000 | 60,400,000 | 60,400,000 | 43,400,000 | |
Inventory write-downs | 0 | 0 | ||||
Capitalized interest | 0 | 0 | $ 0 | |||
Impairment of intangibles | 0 | 0 | 0 | |||
Impairment of long-lived assets | 0 | 0 | ||||
Research and development expense | 200,000 | 400,000 | 500,000 | |||
Advertising expense | 400,000 | 400,000 | 500,000 | |||
Self insurance stop loss limit | 300,000 | |||||
Self insurance reserve | 2,000,000 | $ 2,000,000 | $ 2,000,000 | 2,000,000 | 1,200,000 | |
Expenses incurred for healthcare benefits | 17,600,000 | 13,300,000 | 11,900,000 | |||
Number of reporting units | 2 | 2 | ||||
Goodwill | $ 32,997,000 | $ 32,997,000 | $ 32,997,000 | 32,997,000 | 34,123,000 | 31,580,000 |
Software | ||||||
Significant Accounting Policies [Line Items] | ||||||
Software, estimated useful life | 9 years | |||||
Software | Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Software, estimated useful life | 5 years | |||||
Software | Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Software, estimated useful life | 10 years | |||||
Buildings and Storage Tanks | Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 10 years | |||||
Buildings and Storage Tanks | Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 39 years | |||||
Machinery, Vehicles and Equipment | Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 3 years | |||||
Machinery, Vehicles and Equipment | Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 25 years | |||||
Leasehold Improvements | Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 5 years | |||||
Equipment at Customers | Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 7 years | |||||
Equipment at Customers | Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 15 years | |||||
Oil Business | ||||||
Significant Accounting Policies [Line Items] | ||||||
Goodwill | $ 0 | 0 | 0 | 0 | 0 | $ 0 |
Outside the United States of America | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 | $ 200,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 23, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Jan. 02, 2016 | Dec. 30, 2018 | Jan. 01, 2018 | Jan. 01, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Right-of-use assets | $ 89,525 | |||||||
Lease liabilities | 82,783 | |||||||
Revenue recognized previously included in contract liabilities | 300 | |||||||
Excess tax benefits | (369) | $ (331) | $ (412) | |||||
Adjustment from adopting new ASC | $ (268) | $ 1,009 | ||||||
Share repurchases to satisfy tax withholding obligations | 1,428 | $ 1,030 | 355 | |||||
Retained Earnings | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Adjustment from adopting new ASC | $ (268) | $ 1,009 | ||||||
ASU 2016-02 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Right-of-use assets | $ 63,300 | |||||||
Lease liabilities | $ 63,300 | |||||||
Revenue recognized previously included in contract liabilities | $ 2,200 | |||||||
ASU 2016-09 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Excess tax benefits | $ 2,500 | |||||||
Deferred tax assets | 1,000 | |||||||
ASU 2016-09 | Retained Earnings | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Adjustment from adopting new ASC | $ 1,000 | |||||||
ASU 2016-09, Statutory Tax Withholding Component | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Share repurchases to satisfy tax withholding obligations | $ 131,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule Cumulative Effects (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Sep. 07, 2019 | Jun. 15, 2019 | Mar. 23, 2019 | Sep. 08, 2018 | Jun. 16, 2018 | Mar. 24, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Revenues | $ 104,841 | $ 105,000 | $ 95,772 | $ 99,674 | $ 100,303 | $ 83,147 | $ 138,814 | $ 127,059 | $ 444,427 | $ 410,183 | $ 365,957 | |
Rental income | 5,657 | 5,762 | 3,548 | 0 | 0 | 0 | 7,696 | 0 | 22,663 | |||
Operating income | 8,482 | 9,534 | (3,185) | 8,959 | 8,509 | (293) | (1,970) | 4,366 | 12,861 | 21,541 | 35,427 | |
Income before income taxes | 8,302 | 9,315 | (3,415) | 8,703 | 8,269 | (538) | (2,210) | 4,056 | 11,992 | 20,489 | 34,333 | |
Provision for income taxes | 2,246 | 2,151 | (986) | 2,284 | 2,149 | (436) | (168) | 1,455 | 3,243 | 5,451 | 5,923 | |
Net income | 6,056 | 7,164 | (2,429) | 6,419 | 6,120 | (102) | (2,042) | 2,601 | 8,749 | 15,038 | 28,410 | |
Income attributable to Heritage-Crystal Clean, Inc. common stockholders | $ 5,969 | $ 7,056 | $ (2,512) | $ 6,345 | $ 5,999 | $ (120) | $ (2,150) | $ 2,504 | $ 8,363 | $ 14,728 | $ 28,123 | |
Net income per share: basic (in dollars per share) | $ 0.26 | $ 0.30 | $ (0.11) | $ 0.28 | $ 0.26 | $ (0.01) | $ (0.09) | $ 0.11 | $ 0.36 | $ 0.64 | $ 1.24 | |
Net income per share: diluted (in dollars per share) | $ 0.25 | $ 0.30 | $ (0.11) | $ 0.27 | $ 0.26 | $ (0.01) | $ (0.09) | $ 0.11 | $ 0.36 | $ 0.63 | $ 1.23 | |
Right-of-use assets | $ 89,525 | $ 89,525 | ||||||||||
Total assets | 471,314 | $ 347,822 | 471,314 | $ 347,822 | ||||||||
Current portion of lease liabilities | 20,407 | 20,407 | ||||||||||
Contract liabilities - net | 2,252 | 2,252 | ||||||||||
Other current liabilities | 16,418 | 5,089 | 16,418 | 5,089 | ||||||||
Total current liabilities | 90,444 | 50,029 | 90,444 | 50,029 | ||||||||
Lease liabilities, net of current portion | 68,734 | 68,734 | ||||||||||
Deferred income taxes | 17,157 | 14,516 | 17,157 | 14,516 | ||||||||
Total liabilities | 205,683 | 93,591 | 205,683 | 93,591 | ||||||||
Retained earnings | 64,182 | 55,819 | 64,182 | 55,819 | ||||||||
Heritage-Crystal Clean, Inc. stockholders' equity | 264,997 | 253,583 | 264,997 | 253,583 | ||||||||
Total equity | 265,631 | 254,231 | 265,631 | 254,231 | $ 235,926 | $ 198,269 | ||||||
Total liabilities and stockholders' equity | 471,314 | 347,822 | 471,314 | 347,822 | ||||||||
Service revenues | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Revenues | $ 57,220 | $ 57,936 | $ 56,366 | $ 58,054 | $ 60,014 | $ 54,137 | 78,969 | $ 78,057 | 250,491 | $ 250,262 | $ 233,999 | |
Balances Without Adoption of Topic 842 | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Revenues | 446,512 | |||||||||||
Rental income | 0 | |||||||||||
Operating income | 14,946 | |||||||||||
Income before income taxes | 14,077 | |||||||||||
Provision for income taxes | 3,807 | |||||||||||
Net income | 10,270 | |||||||||||
Income attributable to Heritage-Crystal Clean, Inc. common stockholders | $ 9,884 | |||||||||||
Net income per share: basic (in dollars per share) | $ 0.43 | |||||||||||
Net income per share: diluted (in dollars per share) | $ 0.43 | |||||||||||
Right-of-use assets | 0 | $ 0 | ||||||||||
Total assets | 381,789 | 381,789 | ||||||||||
Current portion of lease liabilities | 0 | 0 | ||||||||||
Contract liabilities - net | 167 | 167 | ||||||||||
Other current liabilities | 16,034 | 16,034 | ||||||||||
Total current liabilities | 67,568 | 67,568 | ||||||||||
Lease liabilities, net of current portion | 0 | 0 | ||||||||||
Deferred income taxes | 17,721 | 17,721 | ||||||||||
Total liabilities | 114,637 | 114,637 | ||||||||||
Retained earnings | 65,703 | 65,703 | ||||||||||
Heritage-Crystal Clean, Inc. stockholders' equity | 266,518 | 266,518 | ||||||||||
Total equity | 267,152 | 267,152 | ||||||||||
Total liabilities and stockholders' equity | 381,789 | 381,789 | ||||||||||
Balances Without Adoption of Topic 842 | Service revenues | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Revenues | 275,239 | |||||||||||
ASU 2014-09 | Effect of Change Higher/ (Lower) | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Revenues | (2,085) | |||||||||||
Rental income | 22,663 | |||||||||||
Operating income | (2,085) | |||||||||||
Income before income taxes | (2,085) | |||||||||||
Provision for income taxes | (564) | |||||||||||
Net income | (1,521) | |||||||||||
Income attributable to Heritage-Crystal Clean, Inc. common stockholders | $ (1,521) | |||||||||||
Net income per share: basic (in dollars per share) | $ (0.07) | |||||||||||
Net income per share: diluted (in dollars per share) | $ (0.07) | |||||||||||
Right-of-use assets | 89,525 | $ 89,525 | ||||||||||
Total assets | 89,525 | 89,525 | ||||||||||
Current portion of lease liabilities | 20,407 | 20,407 | ||||||||||
Contract liabilities - net | 2,085 | 2,085 | ||||||||||
Other current liabilities | 384 | 384 | ||||||||||
Total current liabilities | 22,876 | 22,876 | ||||||||||
Lease liabilities, net of current portion | 68,734 | 68,734 | ||||||||||
Deferred income taxes | (564) | (564) | ||||||||||
Total liabilities | 91,046 | 91,046 | ||||||||||
Retained earnings | (1,521) | (1,521) | ||||||||||
Heritage-Crystal Clean, Inc. stockholders' equity | (1,521) | (1,521) | ||||||||||
Total equity | (1,521) | (1,521) | ||||||||||
Total liabilities and stockholders' equity | $ 89,525 | 89,525 | ||||||||||
ASU 2014-09 | Effect of Change Higher/ (Lower) | Service revenues | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Revenues | $ (24,748) |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | Oct. 08, 2019 | Mar. 25, 2019 | Feb. 01, 2019 | Jan. 11, 2019 | Jun. 11, 2018 | May 03, 2018 | Mar. 02, 2020 | Dec. 28, 2019 | May 03, 2019 |
Business Acquisition [Line Items] | |||||||||
Measurement period adjustments | $ 0 | ||||||||
California Environmental & Litho | |||||||||
Business Acquisition [Line Items] | |||||||||
Total consideration | $ 500 | ||||||||
All Valley Disposal | |||||||||
Business Acquisition [Line Items] | |||||||||
Total consideration | $ 600 | ||||||||
All Valley Disposal | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Total consideration | $ 1,300 | ||||||||
WSS | |||||||||
Business Acquisition [Line Items] | |||||||||
Total consideration | $ 500 | ||||||||
GlyEco | |||||||||
Business Acquisition [Line Items] | |||||||||
Total consideration | $ 1,600 | ||||||||
PPI | |||||||||
Business Acquisition [Line Items] | |||||||||
Total consideration | $ 5,900 | ||||||||
Increase to property, plant, & equipment | 200 | ||||||||
Increase to other intangible assets | 1,500 | ||||||||
Decrease to contingent consideration | 100 | ||||||||
Measurement period adjustments | $ 1,800 | ||||||||
Performance metrics period | 3 years | ||||||||
Minimum contingent consideration | $ 0 | ||||||||
Maximum contingent consideration | $ 1,500 | ||||||||
HTSC | |||||||||
Business Acquisition [Line Items] | |||||||||
Total consideration | $ 700 | ||||||||
HTSC | Forecast | |||||||||
Business Acquisition [Line Items] | |||||||||
Contingent considered to be paid | $ 100 |
Business Combinations - Estimat
Business Combinations - Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 32,997 | $ 34,123 | $ 31,580 |
Net cash paid | 3,521 | $ 4,805 | $ 0 |
California Environmental & Litho | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 67 | ||
Inventory | 3 | ||
Property, plant, & equipment | 15 | ||
Equipment at customers | 0 | ||
Intangible assets | 445 | ||
Goodwill | 3 | ||
Total purchase price, net of cash acquired | 533 | ||
Less: working capital adjustment | 0 | ||
Less: deferred consideration | 0 | ||
Less: contingent consideration | 120 | ||
Less: to be placed in escrow | 50 | ||
Net cash paid | 363 | ||
All Valley Disposal | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 36 | ||
Inventory | 18 | ||
Property, plant, & equipment | 252 | ||
Equipment at customers | 0 | ||
Intangible assets | 310 | ||
Goodwill | 384 | ||
Total purchase price, net of cash acquired | 1,000 | ||
Less: working capital adjustment | 0 | ||
Less: deferred consideration | 0 | ||
Less: contingent consideration | 250 | ||
Less: to be placed in escrow | 100 | ||
Net cash paid | 650 | ||
GlyEco | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 107 | ||
Inventory | 291 | ||
Property, plant, & equipment | 746 | ||
Equipment at customers | 0 | ||
Intangible assets | 251 | ||
Goodwill | 251 | ||
Total purchase price, net of cash acquired | 1,646 | ||
Less: working capital adjustment | 23 | ||
Less: deferred consideration | 0 | ||
Less: contingent consideration | 0 | ||
Less: to be placed in escrow | 0 | ||
Net cash paid | 1,623 | ||
WSS | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 0 | ||
Inventory | 28 | ||
Property, plant, & equipment | 154 | ||
Equipment at customers | 24 | ||
Intangible assets | 298 | ||
Goodwill | 0 | ||
Total purchase price, net of cash acquired | 504 | ||
Less: working capital adjustment | 14 | ||
Less: deferred consideration | 0 | ||
Less: contingent consideration | 40 | ||
Less: to be placed in escrow | 50 | ||
Net cash paid | 400 | ||
PPI | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 909 | ||
Inventory | 259 | ||
Property, plant, & equipment | 2,154 | ||
Equipment at customers | 0 | ||
Intangible assets | 2,001 | ||
Goodwill | 406 | ||
Total purchase price, net of cash acquired | 5,729 | ||
Less: working capital adjustment | (62) | ||
Less: deferred consideration | 0 | ||
Less: contingent consideration | 906 | ||
Less: to be placed in escrow | 0 | ||
Net cash paid | 4,885 | ||
HTSC | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 40 | ||
Inventory | 3 | ||
Property, plant, & equipment | 47 | ||
Equipment at customers | 104 | ||
Intangible assets | 100 | ||
Goodwill | 377 | ||
Total purchase price, net of cash acquired | 671 | ||
Less: working capital adjustment | (9) | ||
Less: deferred consideration | 137 | ||
Less: contingent consideration | 50 | ||
Less: to be placed in escrow | 0 | ||
Net cash paid | $ 493 |
Business Combinations - Unaudit
Business Combinations - Unaudited Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Business Combinations [Abstract] | ||
Total revenues | $ 444,627 | $ 419,340 |
Income attributable to HCCI Common Stockholders | $ 8,339 | $ 14,171 |
Net income per share: basic (in dollars per share) | $ 0.36 | $ 0.62 |
Net income per share: diluted (in dollars per share) | $ 0.36 | $ 0.61 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue by Major Lines (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 07, 2019 | Jun. 15, 2019 | Mar. 23, 2019 | Sep. 08, 2018 | Jun. 16, 2018 | Mar. 24, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenue from Contract with Customer [Abstract] | |||||||||||
Performance obligation timing | We do not have any material significant payment terms as payment is generally due within 30 days after the performance obligation has been satisfactorily completed. The Company has elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. In applying the guidance in Topic 606, there were no judgments or estimates made that the Company deems significant. | ||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 421,764 | $ 409,846 | |||||||||
Other Revenue | 22,663 | 337 | |||||||||
Total revenues | $ 104,841 | $ 105,000 | $ 95,772 | $ 99,674 | $ 100,303 | $ 83,147 | $ 138,814 | $ 127,059 | 444,427 | 410,183 | $ 365,957 |
Parts cleaning, containerized waste, & related products/services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 168,521 | 178,607 | |||||||||
Vacuum Services & Wastewater Treatment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 60,736 | 53,934 | |||||||||
Antifreeze Business | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 27,321 | 19,021 | |||||||||
Field Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 21,701 | 17,692 | |||||||||
Environmental Services - Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,856 | 1,877 | |||||||||
Re-refinery Product Sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 115,551 | 112,472 | |||||||||
Oil Collection Services & RFO | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 21,445 | 21,405 | |||||||||
Oil Filter Business | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 4,633 | 4,838 | |||||||||
Environmental Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 280,135 | 271,131 | |||||||||
Other Revenue | 22,408 | 0 | |||||||||
Total revenues | 302,543 | 271,131 | |||||||||
Environmental Services | Parts cleaning, containerized waste, & related products/services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 168,521 | 178,607 | |||||||||
Environmental Services | Vacuum Services & Wastewater Treatment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 60,736 | 53,934 | |||||||||
Environmental Services | Antifreeze Business | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 27,321 | 19,021 | |||||||||
Environmental Services | Field Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 21,701 | 17,692 | |||||||||
Environmental Services | Environmental Services - Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,856 | 1,877 | |||||||||
Environmental Services | Re-refinery Product Sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Environmental Services | Oil Collection Services & RFO | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Environmental Services | Oil Filter Business | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Oil Business | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 141,629 | 138,715 | |||||||||
Other Revenue | 255 | 337 | |||||||||
Total revenues | 141,884 | 139,052 | |||||||||
Oil Business | Parts cleaning, containerized waste, & related products/services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Oil Business | Vacuum Services & Wastewater Treatment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Oil Business | Antifreeze Business | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Oil Business | Field Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Oil Business | Environmental Services - Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Oil Business | Re-refinery Product Sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 115,551 | 112,472 | |||||||||
Oil Business | Oil Collection Services & RFO | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 21,445 | 21,405 | |||||||||
Oil Business | Oil Filter Business | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 4,633 | $ 4,838 |
Revenue - Contract Assets and C
Revenue - Contract Assets and Contract Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Mar. 23, 2019 | Dec. 28, 2019 | Dec. 29, 2018 |
Revenue from Contract with Customer [Abstract] | ||||
Contract assets | $ 64 | $ 100 | ||
Contract liabilities | 2,316 | 266 | ||
Contract liabilities - net | 2,252 | $ 166 | ||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized previously included in contract liabilities | $ 300 | |||
ASU 2016-02 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized previously included in contract liabilities | $ 2,200 | |||
Rental income | ASU 2016-02 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized previously included in contract liabilities | $ 2,200 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Receivables [Abstract] | |||
Trade | $ 54,420 | $ 51,118 | |
Less: allowance for doubtful accounts | 2,221 | 1,816 | $ 1,881 |
Trade - net | 52,199 | 49,302 | |
Related parties | 1,560 | 1,595 | |
Other | 1,827 | 847 | |
Total accounts receivable - net | $ 55,586 | $ 51,744 |
Accounts Receivable - Rollforwa
Accounts Receivable - Rollforward of Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of period | $ 1,816 | $ 1,881 | |
Provision for bad debts | 1,486 | 628 | $ 402 |
Accounts written off, net of recoveries | (1,081) | (693) | |
Balance at end of period | $ 2,221 | $ 1,816 | $ 1,881 |
Inventory - Carrying Value of I
Inventory - Carrying Value of Inventory (Details) - USD ($) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Inventory Disclosure [Abstract] | ||
Solvents and solutions | $ 8,694,000 | $ 8,216,000 |
Used oil and processed oil | 8,349,000 | 12,124,000 |
Machines | 5,440,000 | 5,334,000 |
Drums and supplies | 4,697,000 | 5,231,000 |
Other | 2,632,000 | 2,378,000 |
Total inventory | 29,812,000 | 33,283,000 |
Less: machine refurbishing reserve | 439,000 | 224,000 |
Total inventory - net | 29,373,000 | 33,059,000 |
Inventory impairment charge | $ 0 | $ 0 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Machinery, vehicles, and equipment | $ 127,242 | $ 98,708 | |
Buildings and storage tanks | 71,616 | 69,791 | |
Land | 9,664 | 9,546 | |
Leasehold improvements | 6,523 | 5,701 | |
Construction in progress | 7,958 | 15,405 | |
Assets held for sale | 4 | 4 | |
Total property, plant, and equipment | 223,007 | 199,155 | |
Less: accumulated depreciation | 68,096 | 59,168 | |
Property, plant, and equipment - net | 154,911 | 139,987 | |
Equipment at customers | 77,914 | 73,075 | |
Less: accumulated depreciation | 53,682 | 49,261 | |
Equipment at customers - net | 24,232 | 23,814 | |
Depreciation expense | $ 14,600 | $ 13,100 | $ 14,700 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) | 12 Months Ended | ||||
Dec. 28, 2019USD ($)reporting_unit | Dec. 28, 2019USD ($)segment | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Number of reporting units | 2 | 2 | |||
Goodwill [Line Items] | |||||
Goodwill | $ 32,997,000 | $ 32,997,000 | $ 32,997,000 | $ 34,123,000 | $ 31,580,000 |
Amortization expense | 3,600,000 | 3,100,000 | 3,300,000 | ||
Impairment of intangibles | 0 | 0 | 0 | ||
Oil Business | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Goodwill Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill [Line Items] | |||
Gross carrying amount beginning balance | $ 36,949 | $ 38,075 | $ 35,532 |
Accumulated impairment loss | (3,952) | (3,952) | (3,952) |
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 34,123 | 31,580 | |
Acquisitions | 0 | 2,543 | |
Measurement period adjustments | 0 | ||
Goodwill ending balance | 32,997 | 34,123 | |
Oil Business | |||
Goodwill [Line Items] | |||
Gross carrying amount beginning balance | 3,952 | 3,952 | 3,952 |
Accumulated impairment loss | (3,952) | (3,952) | (3,952) |
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 0 | 0 | |
Acquisitions | 0 | 0 | |
Measurement period adjustments | 0 | ||
Goodwill ending balance | 0 | 0 | |
Environmental Services | |||
Goodwill [Line Items] | |||
Gross carrying amount beginning balance | 32,997 | 34,123 | 31,580 |
Accumulated impairment loss | 0 | 0 | $ 0 |
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 34,123 | 31,580 | |
Acquisitions | 639 | 2,543 | |
Measurement period adjustments | (1,765) | ||
Goodwill ending balance | $ 32,997 | $ 34,123 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Software and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 40,718 | $ 34,874 |
Accumulated Amortization | 23,826 | 20,193 |
Net Carrying Amount | 16,892 | 14,681 |
Customer & supplier relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 25,551 | 23,686 |
Accumulated Amortization | 13,886 | 11,445 |
Net Carrying Amount | $ 11,665 | 12,241 |
Software, estimated useful life | 11 years | |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,093 | 5,040 |
Accumulated Amortization | 4,887 | 4,094 |
Net Carrying Amount | $ 3,206 | 946 |
Software, estimated useful life | 9 years | |
Patents, formulae, and licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,769 | 1,769 |
Accumulated Amortization | 774 | 708 |
Net Carrying Amount | $ 995 | 1,061 |
Software, estimated useful life | 15 years | |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,603 | 2,937 |
Accumulated Amortization | 3,068 | 2,904 |
Net Carrying Amount | $ 535 | 33 |
Software, estimated useful life | 5 years | |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,702 | 1,442 |
Accumulated Amortization | 1,211 | 1,042 |
Net Carrying Amount | $ 491 | $ 400 |
Software, estimated useful life | 7 years |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Millions | Dec. 28, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 3.3 |
2021 | 3.2 |
2022 | 2.9 |
2023 | 2.4 |
2024 | $ 0.9 |
Accounts Payable (Details)
Accounts Payable (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 37,690 | $ 32,471 |
Accounts payable - related parties | 368 | 159 |
Total accounts payable | $ 38,058 | $ 32,630 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Narrative (Details) - USD ($) | Feb. 21, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Line of Credit Facility [Line Items] | ||||
Interest expense | $ 1,700,000 | $ 1,500,000 | ||
Amortization of debt issuance costs | 300,000 | 300,000 | ||
Capitalized interest | 0 | 0 | $ 0 | |
Outstanding amount on letters of credit | 1,100,000 | 1,300,000 | ||
Available for borrowing under the bank credit facility | $ 63,900,000 | $ 63,700,000 | ||
Weighted average interest rate | 4.10% | 3.90% | 3.50% | |
Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Interest expense | $ 1,200,000 | $ 1,200,000 | ||
Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Minimum interest coverage ratio | 3.5 | |||
Maximum total leverage ratio | 3 | |||
Aggregate consideration limit | $ 10,000,000 | |||
Leverage ratio at time of acquisition | 3.25 | |||
Annual capital expenditures limit | $ 100,000,000 | |||
Percentage of EBITDA | 35.00% | |||
Credit Agreement | Bank Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 95,000,000 | |||
Credit Agreement | Bank Credit Facility | Federal Funds Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Credit Agreement | Bank Credit Facility | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Credit Agreement | Bank Credit Facility | LIBOR | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Credit Agreement | Bank Credit Facility | LIBOR | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.75% | |||
Credit Agreement | Bank Credit Facility | Bank of America's Prime Rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Credit Agreement | Bank Credit Facility | Bank of America's Prime Rate | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Credit Agreement | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 30,000,000 | |||
Credit Agreement | Revolving Loan Portion | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 65,000,000 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Disclosure [Abstract] | ||
Principal amount | $ 30,000 | $ 30,000 |
Less: unamortized debt issuance costs | 652 | 954 |
Long-term debt, less current maturities | $ 29,348 | $ 29,046 |
Debt and Financing Arrangemen_5
Debt and Financing Arrangements - Future Maturities of Long Term Debt (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt, less current maturities | $ 29,348 | $ 29,046 |
Term Loan | ||
Debt Instrument [Line Items] | ||
2020 | 0 | |
2021 | 0 | |
2022 | 30,000 | |
2023 | 0 | |
2024 | 0 | |
Long-term debt, less current maturities | $ 30,000 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Minimum contribution of pre-tax earnings, percent | 1.00% | ||
Maximum contribution of pre-tax earnings, percent | 70.00% | ||
Employer matching contribution, maximum percentage of employees' gross pay | 4.00% | ||
Cost recognized | $ 2.6 | $ 2 | $ 1.8 |
First 3% of Employee Contribution | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution, percent | 100.00% | ||
Next 2% of Employee Contribution | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution, percent | 50.00% | ||
First 3% of Employee Contribution | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employee contribution | 3.00% | ||
Next 2% of Employee Contribution | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employee contribution | 2.00% |
Related Party and Affiliate T_3
Related Party and Affiliate Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Related Party Transaction [Line Items] | |||
Revenues | $ 16,358 | $ 14,665 | $ 9,256 |
Expenses | 4,332 | 3,029 | 3,015 |
Self insurance expense - related party | 300 | 500 | 900 |
The Heritage Group [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues | 8,705 | 8,168 | 4,740 |
Expenses | 3,846 | 2,202 | 2,965 |
Other related parties / affiliates | |||
Related Party Transaction [Line Items] | |||
Revenues | 7,653 | 6,497 | 4,516 |
Expenses | $ 486 | $ 827 | $ 50 |
Heritage Crystal Clean Inc | The Heritage Group [Member] | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 31.60% | ||
Heritage Crystal Clean Inc | The Fehsenfeld Family Trusts | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 6.40% | ||
Heritage Crystal Clean Inc | Chairman Fred Fehsenfeld, Jr. | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 4.30% |
Segment Information - Operating
Segment Information - Operating Segment Results (Details) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 07, 2019USD ($) | Jun. 15, 2019USD ($) | Mar. 23, 2019USD ($) | Sep. 08, 2018USD ($) | Jun. 16, 2018USD ($) | Mar. 24, 2018USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 28, 2019USD ($)segment | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Revenues | |||||||||||
Revenues | $ 104,841 | $ 105,000 | $ 95,772 | $ 99,674 | $ 100,303 | $ 83,147 | $ 138,814 | $ 127,059 | $ 444,427 | $ 410,183 | $ 365,957 |
Rental income | 5,657 | 5,762 | 3,548 | 0 | 0 | 0 | 7,696 | 0 | 22,663 | ||
Operating expenses | |||||||||||
Operating costs | 80,117 | 78,849 | 82,483 | 76,045 | 76,272 | 68,386 | 108,154 | 102,462 | 349,603 | 323,165 | 276,102 |
Operating depreciation and amortization | 14,424 | 12,907 | 14,302 | ||||||||
Profit before corporate selling, general, and administrative expenses | 80,400 | 74,111 | 75,553 | ||||||||
Selling, general, and administrative expenses | 11,241 | 11,042 | 12,396 | 10,641 | 11,522 | 11,022 | 15,545 | 14,529 | 50,224 | 47,714 | 47,401 |
Depreciation and amortization from SG&A | 3,825 | 3,250 | 3,665 | ||||||||
Total selling, general, and administrative expenses | 54,049 | 50,964 | 51,066 | ||||||||
Other expense (income) - net | 1,021 | 1,514 | (58) | 253 | 341 | 389 | 11,013 | 623 | 13,490 | 1,606 | (10,940) |
Operating income | 8,482 | 9,534 | (3,185) | 8,959 | 8,509 | (293) | (1,970) | 4,366 | 12,861 | 21,541 | 35,427 |
Interest expense - net | 180 | 219 | 230 | 256 | 240 | 245 | 240 | 310 | 869 | 1,052 | 1,094 |
Income before income taxes | 11,992 | 20,489 | 34,333 | ||||||||
Corporate and Eliminations | |||||||||||
Revenues | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Rental income | 0 | ||||||||||
Operating expenses | |||||||||||
Operating costs | 0 | 0 | 0 | ||||||||
Operating depreciation and amortization | 0 | 0 | 0 | ||||||||
Profit before corporate selling, general, and administrative expenses | 0 | 0 | 0 | ||||||||
Selling, general, and administrative expenses | 50,224 | 47,714 | 47,401 | ||||||||
Depreciation and amortization from SG&A | 3,825 | 3,250 | 3,665 | ||||||||
Total selling, general, and administrative expenses | 54,049 | 50,964 | 51,066 | ||||||||
Other expense (income) - net | 13,490 | 1,606 | (10,940) | ||||||||
Interest expense - net | 869 | 1,052 | 1,094 | ||||||||
Environmental Services | |||||||||||
Revenues | |||||||||||
Revenues | 302,543 | 271,131 | |||||||||
Rental income | 22,408 | ||||||||||
Environmental Services | Operating segments | |||||||||||
Revenues | |||||||||||
Revenues | 302,543 | 271,131 | 238,055 | ||||||||
Rental income | 22,408 | ||||||||||
Operating expenses | |||||||||||
Operating costs | 219,040 | 194,959 | 163,633 | ||||||||
Operating depreciation and amortization | 7,768 | 6,766 | 7,526 | ||||||||
Profit before corporate selling, general, and administrative expenses | 75,735 | 69,406 | 66,896 | ||||||||
Oil Business | |||||||||||
Revenues | |||||||||||
Revenues | 141,884 | 139,052 | |||||||||
Rental income | 255 | ||||||||||
Oil Business | Operating segments | |||||||||||
Revenues | |||||||||||
Revenues | 141,884 | 139,052 | 127,902 | ||||||||
Rental income | 255 | ||||||||||
Operating expenses | |||||||||||
Operating costs | 130,563 | 128,206 | 112,469 | ||||||||
Operating depreciation and amortization | 6,656 | 6,141 | 6,776 | ||||||||
Profit before corporate selling, general, and administrative expenses | 4,665 | 4,705 | 8,657 | ||||||||
Service revenues | |||||||||||
Revenues | |||||||||||
Revenues | 57,220 | 57,936 | 56,366 | 58,054 | 60,014 | 54,137 | 78,969 | 78,057 | 250,491 | 250,262 | 233,999 |
Service revenues | Corporate and Eliminations | |||||||||||
Revenues | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Service revenues | Environmental Services | Operating segments | |||||||||||
Revenues | |||||||||||
Revenues | 236,530 | 237,806 | 212,883 | ||||||||
Service revenues | Oil Business | Operating segments | |||||||||||
Revenues | |||||||||||
Revenues | 13,961 | 12,456 | 21,116 | ||||||||
Product revenues | |||||||||||
Revenues | |||||||||||
Revenues | $ 41,964 | $ 41,302 | $ 35,858 | $ 41,620 | $ 40,289 | $ 29,010 | $ 52,149 | $ 49,002 | 171,273 | 159,921 | 131,958 |
Product revenues | Corporate and Eliminations | |||||||||||
Revenues | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Product revenues | Environmental Services | Operating segments | |||||||||||
Revenues | |||||||||||
Revenues | 43,605 | 33,325 | 25,172 | ||||||||
Product revenues | Oil Business | Operating segments | |||||||||||
Revenues | |||||||||||
Revenues | $ 127,668 | $ 126,596 | $ 106,786 |
Segment Information - Assets by
Segment Information - Assets by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 471,314 | $ 347,822 | |
Capital Expenditures | 31,293 | 22,820 | $ 14,400 |
Operating segments | Environmental Services | |||
Segment Reporting Information [Line Items] | |||
Total assets | 224,657 | 148,192 | |
Capital Expenditures | 18,499 | 12,756 | 6,843 |
Operating segments | Oil Business | |||
Segment Reporting Information [Line Items] | |||
Total assets | 171,104 | 142,691 | |
Capital Expenditures | 12,670 | 9,858 | 6,998 |
Unallocated Corporate Assets | |||
Segment Reporting Information [Line Items] | |||
Total assets | 75,553 | 56,939 | |
Capital Expenditures | $ 124 | $ 206 | $ 559 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 5 years 1 month 6 days | |
Remaining amount committed | $ 28.3 | $ 18.6 |
Loss contingency accrual | $ 4 | $ 4.2 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 month | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 11 years | |
Lease renewal term | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Lessee Finance Lease, Cost [Abstract] | |
Amortization of right-of-use Assets | $ 288 |
Interest on lease liabilities | 67 |
Total finance lease cost | 355 |
Operating lease cost | 26,717 |
Short-term lease cost | 5,029 |
Variable lease cost | 4,187 |
Total lease cost | 35,933 |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from financing leases | 58 |
Operating cash flows from operating leases | 26,409 |
Financing cash flows from financing leases | 191 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 6,539 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 104,963 |
Weighted-average remaining lease term (years) | |
Finance leases | 6 years 8 months 12 days |
Operating leases | 5 years 1 month 6 days |
Weighted-average discount rate | |
Finance leases | 3.40% |
Operating leases | 5.80% |
Commitments and Contingencies_3
Commitments and Contingencies - Future Annual Minimum Lease Payment Commitments (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 23,894 |
2021 | 20,484 |
2022 | 16,902 |
2023 | 12,745 |
2024 | 8,702 |
2025 and thereafter | 13,367 |
Total minimum lease payments | 96,094 |
Less: imputed interest | 13,311 |
Lease liability | 82,783 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2020 | 883 |
2021 | 883 |
2022 | 883 |
2023 | 883 |
2024 | 883 |
2025 and thereafter | 2,828 |
Total minimum lease payments | 7,243 |
Less: imputed interest | 885 |
Lease liability | 6,358 |
2020 | 24,777 |
2021 | 21,367 |
2022 | 17,785 |
2023 | 13,628 |
2024 | 9,585 |
2025 and thereafter | 16,195 |
Total minimum lease payments | 103,337 |
Less: imputed interest | 14,196 |
Lease liability | $ 89,141 |
Commitments and Contingencies_4
Commitments and Contingencies - Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||
Sep. 07, 2019 | Jun. 15, 2019 | Mar. 23, 2019 | Sep. 08, 2018 | Jun. 16, 2018 | Mar. 24, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | |
Lessor, Lease, Description [Line Items] | |||||||||
Rental income | $ 5,657 | $ 5,762 | $ 3,548 | $ 0 | $ 0 | $ 0 | $ 7,696 | $ 0 | $ 22,663 |
Environmental Services | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Rental income | 22,408 | ||||||||
Oil Business | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Rental income | 255 | ||||||||
Parts Cleaning | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Rental income | 22,408 | ||||||||
Parts Cleaning | Environmental Services | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Rental income | 22,408 | ||||||||
Parts Cleaning | Oil Business | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Rental income | 0 | ||||||||
Railcars | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Rental income | 213 | ||||||||
Railcars | Environmental Services | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Rental income | 0 | ||||||||
Railcars | Oil Business | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Rental income | 213 | ||||||||
Property | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Rental income | 42 | ||||||||
Property | Environmental Services | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Rental income | 0 | ||||||||
Property | Oil Business | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Rental income | $ 42 |
Commitments and Contingencies_5
Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 22,226 |
2020 | 16,095 |
2021 | 12,458 |
2022 | 9,247 |
2023 | 6,020 |
2024 and thereafter | 5,786 |
Total minimum lease payments | $ 71,832 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | $ 26,100 | |
Deferred tax asset, net operating loss carryforward | $ 6,457 | $ 4,966 |
Effective income tax rate, percent | 27.00% | 26.60% |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 310 | $ 193 |
Foreign net operating loss carryforwards | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | 300 | |
Uncertain tax positions | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 2,700 | $ 2,500 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 07, 2019 | Jun. 15, 2019 | Mar. 23, 2019 | Sep. 08, 2018 | Jun. 16, 2018 | Mar. 24, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Tax expense at statutory federal rate | $ 2,518 | $ 4,303 | $ 11,673 | ||||||||
Current: | |||||||||||
Federal | (79) | (306) | 409 | ||||||||
State | 681 | 797 | 263 | ||||||||
Total current | 602 | 491 | 672 | ||||||||
Deferred: | |||||||||||
Federal | 2,328 | 4,093 | 4,501 | ||||||||
State | 313 | 778 | 829 | ||||||||
Foreign | 0 | 89 | (79) | ||||||||
Total deferred | 2,641 | 4,960 | 5,251 | ||||||||
Provision for income taxes | $ 2,246 | $ 2,151 | $ (986) | $ 2,284 | $ 2,149 | $ (436) | $ (168) | $ 1,455 | $ 3,243 | $ 5,451 | $ 5,923 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 07, 2019 | Jun. 15, 2019 | Mar. 23, 2019 | Sep. 08, 2018 | Jun. 16, 2018 | Mar. 24, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Tax expense at statutory federal rate | $ 2,518 | $ 4,303 | $ 11,673 | ||||||||
State and local tax, net of federal expense | 785 | 1,245 | 720 | ||||||||
Windfalls from share-based compensation | (369) | (331) | (412) | ||||||||
Impact of Federal Rate Change | 0 | 0 | (6,156) | ||||||||
Valuation allowance | 117 | 192 | (126) | ||||||||
Other | 192 | 42 | 224 | ||||||||
Total income tax provision | $ 2,246 | $ 2,151 | $ (986) | $ 2,284 | $ 2,149 | $ (436) | $ (168) | $ 1,455 | $ 3,243 | $ 5,451 | $ 5,923 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 6,457 | $ 4,966 |
Stock compensation | 2,167 | 1,640 |
Tax intangible assets | 1,327 | 1,444 |
Reserves and accruals | 9,432 | 5,776 |
Income tax credits | 1,023 | 1,345 |
Allowance for doubtful accounts | 606 | 525 |
Total deferred tax asset | 21,012 | 15,696 |
Less: valuation allowance | 310 | 193 |
Net deferred tax asset | 20,702 | 15,503 |
Deferred tax liabilities: | ||
Prepaids | (690) | (645) |
Depreciation and amortization | (37,169) | (29,374) |
Total deferred tax liability | (37,859) | (30,019) |
Net deferred tax liability | $ (17,157) | $ (14,516) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 2,544 | $ 2,509 |
Additions based on current year's tax positions | 47 | 36 |
Net changes based on prior year's tax positions | 87 | |
Net changes based on prior year's tax positions | (1) | |
Ending balance | $ 2,678 | $ 2,544 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | May 14, 2018 | Apr. 13, 2018 | Feb. 28, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Feb. 20, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 34,150 | 480,755 | ||||
Forfeited (in shares) | 105,062 | 3,181 | ||||
Mr. Recatto's | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Closing share price as of employment commencement date (in dollars per share) | $ 15 | |||||
Restricted Stock | Future grants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 0.7 | |||||
Restricted Stock | Board of Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 1 year | |||||
Restricted Stock | Members of Management | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Restricted Stock | Chief Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted shares granted (in shares) | 500,000 | |||||
Restricted Stock | Mr. Recatto's | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 0.7 | |||||
Vesting threshold (in dollars per share) | $ 5 | |||||
Shares vested upon achievement of share price threshold (in shares) | 0 | |||||
Unrecognized compensation expense | $ 0.5 | |||||
Risk free rate | 1.70% | |||||
Expected dividend yield | 0.00% | |||||
Expected volatility rate | 41.73% | |||||
Restricted Stock | Mr. Recatto's | Less than $5 per share increase | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 180 days | |||||
Vesting percentage | 0.00% | 50.00% | ||||
Restricted Stock | Mr. Recatto's | $5 per share increase | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 25.00% | 25.00% | 50.00% | |||
2019 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 1,500,000 | |||||
Omnibus Incentive Plan of 2008 | Restricted Stock | Members of Management | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 350,000 | |||||
Forfeited (in shares) | 90,417 | |||||
Number of shares available for grant | 454,271 | |||||
Omnibus Incentive Plan of 2008 | Restricted Stock | Members of Management | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares expected to vest on satisfaction of certain conditions (in shares) | 454,271 |
Share-based Compensation - Stoc
Share-based Compensation - Stock Option Vesting Schedule (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Number of Options Outstanding | |||
Options outstanding beginning balance (in shares) | 2,760 | 19,435 | |
Exercised (in shares) | (2,760) | (16,675) | |
Options outstanding ending balance (in shares) | 0 | 2,760 | 19,435 |
Weighted Average Exercise Price | |||
Options outstanding at Beginning of Period (in dollars per share) | $ 7.33 | $ 7.33 | |
Exercised (in dollars per share) | 7.33 | 7.33 | |
Options outstanding at End of Period (in dollars per share) | $ 0 | $ 7.33 | $ 7.33 |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value as of Date Listed | |||
Weighted Average Remaining Contractual Term (in years) | 0 years | 2 months 26 days | 1 year 2 months 23 days |
Aggregate Intrinsic Value as of Date Listed (in thousands) | $ 0 | $ 41 | $ 280 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock Compensation/Awards (Details) - Restricted Stock - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
May 31, 2019 | May 31, 2018 | Apr. 30, 2018 | Feb. 28, 2018 | Apr. 30, 2017 | Feb. 28, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Chief Executive Officer | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted shares granted (in shares) | 500,000 | ||||||||
February, 2017 | Members of Management | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted shares granted (in shares) | 146,564 | ||||||||
Compensation Expense | $ 367 | $ 439 | $ 360 | ||||||
Unrecognized compensation expense | 0 | 385 | |||||||
February, 2017 | Chief Executive Officer | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted shares granted (in shares) | 500,000 | ||||||||
Compensation Expense | 723 | 1,194 | 1,112 | ||||||
Unrecognized compensation expense | 506 | 1,230 | |||||||
April 2017 | Board of Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted shares granted (in shares) | 14,980 | ||||||||
Compensation Expense | 0 | 0 | 241 | ||||||
Unrecognized compensation expense | 0 | 0 | |||||||
February, 2018 | Members of Management | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted shares granted (in shares) | 116,958 | ||||||||
Compensation Expense | 562 | 549 | 0 | ||||||
Unrecognized compensation expense | 615 | 1,176 | |||||||
April, 2018 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted shares granted (in shares) | 350,000 | ||||||||
Compensation Expense | 1,120 | 1,436 | 0 | ||||||
Unrecognized compensation expense | 3,428 | 6,633 | |||||||
May, 2018 | Board of Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted shares granted (in shares) | 13,800 | ||||||||
Compensation Expense | 0 | 285 | 0 | ||||||
Unrecognized compensation expense | 0 | 0 | |||||||
May, 2019 | Members of Management | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted shares granted (in shares) | 23,560 | ||||||||
Compensation Expense | 202 | 367 | 0 | ||||||
Unrecognized compensation expense | 458 | 0 | |||||||
May, 2019 | Board of Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted shares granted (in shares) | 10,590 | ||||||||
Compensation Expense | 285 | 0 | $ 0 | ||||||
Unrecognized compensation expense | $ 0 | $ 0 |
Share-based Compensation - Re_2
Share-based Compensation - Restricted Stock Vesting Schedule by Percentage (Details) - $ / shares | Jun. 10, 2019 | May 14, 2018 | Feb. 28, 2017 | Dec. 28, 2019 | Dec. 29, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares Fully Vested | 158,372 | 149,710 | |||
Mr. Recatto's | Restricted Stock | Less than $5 per share increase | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increase in stock price from employment commencement date (in dollars per share) | $ 5 | ||||
Vesting percentage | 0.00% | 50.00% | |||
Mr. Recatto's | Restricted Stock | $5 per share increase | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increase in stock price from employment commencement date (in dollars per share) | $ 5 | ||||
Vesting percentage | 25.00% | 25.00% | 50.00% | ||
Shares Fully Vested | 62,500 | ||||
Mr. Recatto's | Restricted Stock | $10 per share increase | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increase in stock price from employment commencement date (in dollars per share) | $ 10 | ||||
Vesting percentage | 50.00% | 50.00% | |||
Shares Fully Vested | 62,500 | ||||
Mr. Recatto's | Restricted Stock | $15 per share increase | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increase in stock price from employment commencement date (in dollars per share) | $ 15 | ||||
Vesting percentage | 75.00% | ||||
Mr. Recatto's | Restricted Stock | $20 or more per share increase | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increase in stock price from employment commencement date (in dollars per share) | $ 20 | ||||
Vesting percentage | 100.00% |
Share-based Compensation - Re_3
Share-based Compensation - Restricted Stock Rollforward (Details) - $ / shares | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Number of Shares | ||
Nonvested shares outstanding, beginning (in shares) | 1,013,863 | 685,999 |
Granted (in shares) | 34,150 | 480,755 |
Vested (in shares) | (158,372) | (149,710) |
Forfeited (in shares) | (105,062) | (3,181) |
Nonvested shares outstanding, ending (in shares) | 784,579 | 1,013,863 |
Weighted Average Grant-Date Fair Value Per Share | ||
Nonvested shares outstanding, beginning (in dollars per share) | $ 18.20 | $ 14.52 |
Granted (in dollars per share) | 26.54 | 21.81 |
Vested (in dollars per share) | 16.52 | 14.57 |
Forfeited (in dollars per share) | 22.01 | 17.75 |
Nonvested shares outstanding, ending (in dollars per share) | $ 18.39 | $ 18.20 |
Share-based Compensation - Empl
Share-based Compensation - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan of 2008 - Employee Stock | 12 Months Ended |
Dec. 28, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Eligibility service requirement (in hours) | 20 hours |
Discounted purchase price, percent | 95.00% |
Employee payroll deductions, percent | 10.00% |
Employee maximum annual contribution | $ | $ 25,000 |
Employee stock purchase plan, shares available (in shares) | 109,585 |
Shares purchased during the year (in shares) | 19,677 |
Employee stock purchase plan, weighted average fair value per share (in dollars per share) | $ / shares | $ 25.82 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 07, 2019 | Jun. 15, 2019 | Mar. 23, 2019 | Sep. 08, 2018 | Jun. 16, 2018 | Mar. 24, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 6,056 | $ 7,164 | $ (2,429) | $ 6,419 | $ 6,120 | $ (102) | $ (2,042) | $ 2,601 | $ 8,749 | $ 15,038 | $ 28,410 |
Less: income attributable to noncontrolling interest | 87 | 108 | 83 | 74 | 121 | 18 | 108 | 97 | 386 | 310 | 287 |
Income attributable to Heritage-Crystal Clean, Inc. common stockholders | $ 5,969 | $ 7,056 | $ (2,512) | $ 6,345 | $ 5,999 | $ (120) | $ (2,150) | $ 2,504 | $ 8,363 | $ 14,728 | $ 28,123 |
Weighted average basic shares outstanding (in shares) | 23,185 | 23,137 | 23,117 | 23,048 | 23,029 | 22,962 | 23,190 | 23,056 | 23,160 | 23,026 | 22,662 |
Dilutive shares for share–based compensation plans (in shares) | 238 | 308 | 260 | ||||||||
Weighted average diluted shares outstanding (in shares) | 23,421 | 23,368 | 23,117 | 23,404 | 23,361 | 22,962 | 23,190 | 23,411 | 23,398 | 23,334 | 22,922 |
Net income per share: basic (in dollars per share) | $ 0.26 | $ 0.30 | $ (0.11) | $ 0.28 | $ 0.26 | $ (0.01) | $ (0.09) | $ 0.11 | $ 0.36 | $ 0.64 | $ 1.24 |
Net income per share: diluted (in dollars per share) | $ 0.25 | $ 0.30 | $ (0.11) | $ 0.27 | $ 0.26 | $ (0.01) | $ (0.09) | $ 0.11 | $ 0.36 | $ 0.63 | $ 1.23 |
Other Expense (Income) - Net (D
Other Expense (Income) - Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 07, 2019 | Jun. 15, 2019 | Mar. 23, 2019 | Sep. 08, 2018 | Jun. 16, 2018 | Mar. 24, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Loss Contingencies [Line Items] | |||||||||||
Other income (expense) | $ (1,021) | $ (1,514) | $ 58 | $ (253) | $ (341) | $ (389) | $ (11,013) | $ (623) | $ (13,490) | $ (1,606) | $ 10,940 |
Settlement of a class action lawsuit | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Other income (expense) | $ (11,000) | ||||||||||
Site closure costs | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Other income (expense) | $ (2,700) | $ (1,000) |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 07, 2019 | Jun. 15, 2019 | Mar. 23, 2019 | Sep. 08, 2018 | Jun. 16, 2018 | Mar. 24, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenues | |||||||||||
Revenues | $ 104,841 | $ 105,000 | $ 95,772 | $ 99,674 | $ 100,303 | $ 83,147 | $ 138,814 | $ 127,059 | $ 444,427 | $ 410,183 | $ 365,957 |
Operating expenses | |||||||||||
Operating costs | 80,117 | 78,849 | 82,483 | 76,045 | 76,272 | 68,386 | 108,154 | 102,462 | 349,603 | 323,165 | 276,102 |
Selling, general, and administrative expenses | 11,241 | 11,042 | 12,396 | 10,641 | 11,522 | 11,022 | 15,545 | 14,529 | 50,224 | 47,714 | 47,401 |
Depreciation and amortization | 3,980 | 4,061 | 4,136 | 3,776 | 3,659 | 3,643 | 6,072 | 5,079 | 18,249 | 16,157 | 17,967 |
Other (income) expense - net | 1,021 | 1,514 | (58) | 253 | 341 | 389 | 11,013 | 623 | 13,490 | 1,606 | (10,940) |
Operating income | 8,482 | 9,534 | (3,185) | 8,959 | 8,509 | (293) | (1,970) | 4,366 | 12,861 | 21,541 | 35,427 |
Interest expense – net | 180 | 219 | 230 | 256 | 240 | 245 | 240 | 310 | 869 | 1,052 | 1,094 |
Income before income taxes | 8,302 | 9,315 | (3,415) | 8,703 | 8,269 | (538) | (2,210) | 4,056 | 11,992 | 20,489 | 34,333 |
(Benefit of) provision for income taxes | 2,246 | 2,151 | (986) | 2,284 | 2,149 | (436) | (168) | 1,455 | 3,243 | 5,451 | 5,923 |
Net income | 6,056 | 7,164 | (2,429) | 6,419 | 6,120 | (102) | (2,042) | 2,601 | 8,749 | 15,038 | 28,410 |
Less: income attributable to noncontrolling interest | 87 | 108 | 83 | 74 | 121 | 18 | 108 | 97 | 386 | 310 | 287 |
Income attributable to Heritage-Crystal Clean, Inc. common stockholders | $ 5,969 | $ 7,056 | $ (2,512) | $ 6,345 | $ 5,999 | $ (120) | $ (2,150) | $ 2,504 | $ 8,363 | $ 14,728 | $ 28,123 |
Net (loss) income per share: basic (in dollars per share) | $ 0.26 | $ 0.30 | $ (0.11) | $ 0.28 | $ 0.26 | $ (0.01) | $ (0.09) | $ 0.11 | $ 0.36 | $ 0.64 | $ 1.24 |
Net (loss) income per share: diluted (in dollars per share) | $ 0.25 | $ 0.30 | $ (0.11) | $ 0.27 | $ 0.26 | $ (0.01) | $ (0.09) | $ 0.11 | $ 0.36 | $ 0.63 | $ 1.23 |
Number of weighted average shares outstanding: basic | 23,185 | 23,137 | 23,117 | 23,048 | 23,029 | 22,962 | 23,190 | 23,056 | 23,160 | 23,026 | 22,662 |
Number of weighted average shares outstanding: diluted | 23,421 | 23,368 | 23,117 | 23,404 | 23,361 | 22,962 | 23,190 | 23,411 | 23,398 | 23,334 | 22,922 |
Average revenues per working day - Environmental Services | $ 1,185 | $ 1,185 | $ 1,125 | $ 1,090 | $ 1,090 | $ 970 | $ 1,255 | $ 1,130 | |||
Service revenues | |||||||||||
Revenues | |||||||||||
Revenues | 57,220 | 57,936 | 56,366 | 58,054 | 60,014 | 54,137 | 78,969 | 78,057 | $ 250,491 | $ 250,262 | $ 233,999 |
Product revenues | |||||||||||
Revenues | |||||||||||
Revenues | $ 41,964 | $ 41,302 | $ 35,858 | $ 41,620 | $ 40,289 | $ 29,010 | $ 52,149 | $ 49,002 | $ 171,273 | $ 159,921 | $ 131,958 |
Uncategorized Items - hcci-2019
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (268,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,009,000 |