Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Feb. 25, 2022 | Jun. 18, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 1, 2022 | ||
Current Fiscal Year End Date | --01-01 | ||
Document Transition Report | false | ||
Entity File Number | 001-33987 | ||
Entity Registrant Name | HERITAGE-CRYSTAL CLEAN, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-0351454 | ||
Entity Address, Address Line One | 2175 Point Boulevard | ||
Entity Address, Address Line Two | Suite 375 | ||
Entity Address, City or Town | Elgin | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60123 | ||
City Area Code | 847 | ||
Local Phone Number | 836-5670 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | HCCI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 412.7 | ||
Entity Common Stock, Shares Outstanding | 24,201,747 | ||
Documents Incorporated by Reference | Part III incorporates information by reference to the definitive proxy statement for the Company’s Annual Meeting of Stockholders to be held on or about May 3, 2022, to be filed within 120 days of the registrant’s fiscal year ended January 1, 2022. | ||
Entity Central Index Key | 0001403431 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jan. 01, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | GRANT THORNTON LLP |
Auditor Location | Chicago, Illinois |
Auditor Firm ID | 248 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 56,269 | $ 67,575 |
Accounts receivable - net | 62,513 | 48,479 |
Inventory - net | 29,536 | 24,978 |
Assets held for sale | 1,125 | 2,446 |
Other current assets | 6,773 | 8,005 |
Total current assets | 156,216 | 151,483 |
Property, plant and equipment - net | 166,301 | 153,016 |
Right of use assets | 83,865 | 78,942 |
Equipment at customers - net | 24,146 | 23,111 |
Software and intangible assets - net | 45,949 | 19,576 |
Goodwill | 49,695 | 35,541 |
Other Assets | 692 | 0 |
Total assets | 526,864 | 461,669 |
Current liabilities: | ||
Accounts payable | 36,179 | 29,663 |
Current portion of lease liabilities | 20,146 | 19,198 |
Contract liabilities - net | 2,094 | 1,983 |
Accrued salaries, wages, and benefits | 8,980 | 6,647 |
Taxes payable | 8,474 | 10,592 |
Other current liabilities | 9,476 | 4,918 |
Total current liabilities | 85,349 | 73,001 |
Lease liabilities, net of current portion | 65,041 | 60,294 |
Other long-term liabilities | 473 | 0 |
Long-term debt, less current maturities | 0 | 29,656 |
Deferred income taxes | 31,126 | 21,218 |
Contingent consideration | 2,819 | 0 |
Total liabilities | 184,808 | 184,169 |
Commitments and contingencies (Note 14) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock - 26,000,000 shares authorized at 0.01 par value, 23,473,931 and 23,340,700 shares issued and outstanding at January 1, 2022 and January 2, 2021, respectively | 235 | 233 |
Additional paid-in capital | 204,920 | 201,148 |
Retained earnings | 137,067 | 76,119 |
Accumulated other comprehensive income (loss) | (166) | 0 |
Total stockholders' equity | 342,056 | 277,500 |
Total liabilities and stockholders' equity | $ 526,864 | $ 461,669 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 01, 2022 | Jan. 02, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 26,000,000 | 26,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 23,473,931 | 23,340,700 |
Common stock, shares outstanding (in shares) | 23,473,931 | 23,340,700 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Revenues | |||
Revenues | $ 490,600 | $ 381,652 | $ 421,764 |
Rental income | 24,734 | 24,299 | 22,663 |
Total revenues | 515,334 | 405,951 | 444,427 |
Operating expenses | |||
Operating costs | 352,796 | 321,648 | 349,603 |
Selling, general, and administrative expenses | 56,987 | 47,091 | 50,224 |
Depreciation and amortization | 23,542 | 24,563 | 18,249 |
Other (income) expense - net | (988) | (5,365) | 13,490 |
Operating income | 82,997 | 18,014 | 12,861 |
Interest expense – net | 933 | 1,252 | 869 |
Income before income taxes | 82,064 | 16,762 | 11,992 |
Provision for income taxes | 21,116 | 4,825 | 3,243 |
Net income | 60,948 | 11,937 | 8,749 |
Income attributable to noncontrolling interest | 0 | 0 | 386 |
Income attributable to Heritage-Crystal Clean, Inc. common stockholders | $ 60,948 | $ 11,937 | $ 8,363 |
Net income per share: basic (in dollars per share) | $ 2.60 | $ 0.51 | $ 0.36 |
Net income per share: diluted (in dollars per share) | $ 2.59 | $ 0.51 | $ 0.36 |
Number of weighted average shares outstanding: basic (in shares) | 23,419 | 23,286 | 23,160 |
Number of weighted average shares outstanding: diluted (in shares) | 23,557 | 23,453 | 23,398 |
Service revenues | |||
Revenues | |||
Revenues | $ 262,863 | $ 245,474 | $ 250,491 |
Product revenues | |||
Revenues | |||
Revenues | $ 227,737 | $ 136,178 | $ 171,273 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Statement of Other Comprehensive Income [Abstract] | |||
Net income | $ 60,948 | $ 11,937 | $ 8,749 |
Currency translation adjustment | (166) | 0 | 0 |
Total other comprehensive loss | (166) | 0 | 0 |
Comprehensive income | 60,782 | 11,937 | 8,749 |
Income attributable to noncontrolling interest | 0 | 0 | 386 |
Comprehensive income attributable to stockholders | $ 60,782 | $ 11,937 | $ 8,363 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid–in Capital | Retained Earnings | Non-controlling Interest | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 29, 2018 | 23,058,584 | |||||
Beginning balance at Dec. 29, 2018 | $ 254,231 | $ 231 | $ 197,533 | $ 55,819 | $ 648 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 8,749 | 8,363 | 386 | |||
Distribution | (400) | (400) | ||||
Currency translation adjustment | 0 | |||||
Issuance of common stock – ESPP (in shares) | 19,677 | |||||
Issuance of common stock – ESPP | 483 | 483 | ||||
Exercise of stock options (in shares) | 2,760 | |||||
Exercise of stock options | 20 | 20 | ||||
Share-based compensation (in shares) | 110,477 | |||||
Share-based compensation | 3,976 | $ 1 | 3,975 | |||
Share repurchases to satisfy tax withholding obligations | (1,428) | (1,428) | ||||
Ending balance (in shares) at Dec. 28, 2019 | 23,191,498 | |||||
Ending Balance at Dec. 28, 2019 | 265,631 | $ 232 | 200,583 | 64,182 | 634 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 11,937 | 11,937 | ||||
Non-controlling interest acquisition | (2,678) | (2,678) | ||||
Tax effect of non-controlling interest acquisition | 604 | 604 | ||||
Distribution | (634) | (634) | ||||
Currency translation adjustment | 0 | |||||
Issuance of common stock – ESPP (in shares) | 29,951 | |||||
Issuance of common stock – ESPP | 497 | 497 | ||||
Share-based compensation (in shares) | 119,251 | |||||
Share-based compensation | 3,197 | $ 1 | 3,196 | |||
Share repurchases to satisfy tax withholding obligations | $ (1,054) | (1,054) | ||||
Ending balance (in shares) at Jan. 02, 2021 | 23,340,700 | 23,340,700 | ||||
Ending Balance at Jan. 02, 2021 | $ 277,500 | $ 233 | 201,148 | 76,119 | 0 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 60,948 | 60,948 | ||||
Currency translation adjustment | (166) | (166) | ||||
Issuance of common stock – ESPP (in shares) | 19,289 | |||||
Issuance of common stock – ESPP | 487 | 487 | ||||
Share-based compensation (in shares) | 113,942 | |||||
Share-based compensation | 5,229 | $ 2 | 5,227 | |||
Share repurchases to satisfy tax withholding obligations | $ (1,942) | (1,942) | ||||
Ending balance (in shares) at Jan. 01, 2022 | 23,473,931 | 23,473,931 | ||||
Ending Balance at Jan. 01, 2022 | $ 342,056 | $ 235 | $ 204,920 | $ 137,067 | $ 0 | $ (166) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Cash flows from Operating Activities: | |||
Net income | $ 60,948 | $ 11,937 | $ 8,749 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation and amortization | 23,542 | 24,563 | 18,249 |
(Reversal) provision for class action settlement | 0 | (6,502) | 11,000 |
Impairment on assets held for sale | 0 | 1,446 | 0 |
Uncollectible provision | 1,930 | 1,919 | 1,486 |
Share-based compensation | 5,702 | 3,197 | 3,976 |
Deferred taxes | 9,908 | 4,665 | 2,641 |
Other, net | (299) | (406) | 678 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | (14,411) | 5,941 | (5,118) |
(Increase) decrease in inventory | (4,485) | 4,395 | 4,025 |
Decrease (increase) in prepaid and other current assets | 1,396 | (901) | (267) |
Increase (decrease) increase in accounts payable | 5,486 | (6,574) | 3,921 |
Increase in accrued liabilities | 1,330 | 1,089 | 3,914 |
Cash provided by operating activities | 91,047 | 44,769 | 53,254 |
Cash flows from Investing Activities: | |||
Capital expenditures | (24,087) | (23,713) | (31,293) |
Proceeds from the disposal of assets | 1,766 | 1,241 | 0 |
Business acquisitions, net of cash acquired | (45,533) | (10,005) | (3,521) |
Cash used in investing activities | (67,854) | (32,477) | (34,814) |
Cash flows from Financing Activities: | |||
Payment of term loan | (30,000) | 0 | 0 |
Debt issuance cost | (822) | 0 | 0 |
Proceeds from the exercise of stock options | 0 | 0 | 20 |
Repayment of principal on finance leases | (2,222) | (1,343) | 0 |
Proceeds from the issuance of common stock | 487 | 497 | 483 |
Share repurchases to satisfy tax withholding obligations | (1,942) | (1,054) | (1,428) |
Payments of deferred and contingent consideration | 0 | (199) | 0 |
Distributions to and acquisition of noncontrolling interest | 0 | (3,312) | (400) |
Cash used in financing activities | (34,499) | (5,411) | (1,325) |
Net (decrease) increase in cash and cash equivalents | (11,306) | 6,881 | 17,115 |
Cash and cash equivalents, beginning of period | 67,575 | 60,694 | 43,579 |
Cash and cash equivalents, end of period | 56,269 | 67,575 | 60,694 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 9,900 | 321 | 1,207 |
Cash paid for interest | 200 | 941 | 1,254 |
Supplemental disclosure of non-cash information: | |||
Payables for construction in progress | $ 688 | $ 744 | $ 2,575 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Jan. 01, 2022 | |
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, wastewater 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 non-hazardous waste processing facilities as well as 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, wastewater vacuum 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 reporting 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. Our fiscal year ends on the Saturday closest to December 31. "Fiscal 2021" represents the 52-week period ended January 1, 2022. "Fiscal 2020" represents the 53-week period ended January 2, 2021. "Fiscal 2019" represents the 52-week period ended 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, wastewater vacuum 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 wastewater 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 |
Jan. 01, 2022 | |
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. Material items subject to such estimates and assumptions are the allowance for uncollectible 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 Note 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 $0.5 million of cash on deposit outside the United States of America as of January 1, 2022 and January 2, 2021, 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 $60.9 million and $66.5 million at January 1, 2022 and January 2, 2021, 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 are recorded at the invoiced amount and do not bear interest. Consistent with industry practices, we require payment from most customers within 30 days of invoice date. Our amounts due from customers are stated at their net estimated realizable value. The allowance for uncollectible accounts is our best estimate of the amount of probable lifetime-expected credit losses in existing accounts receivable and is determined based on our historical collections experience, age of the receivable, knowledge of the customer and the condition of the general economy and industry as a whole. Accounts receivable are written off against the allowance for uncollectible accounts when we determine amounts are no longer collectible. 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 2021, the Company recorded $0.2 million of inventory impairment charges. In fiscal year 2020 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 are 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 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 statement of operations. 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. The Company has not yet finalized the purchase price allocations for the three acquisitions that were completed in fiscal 2021 as disclosed in the business combination Note 3. Identifiable Intangible Assets The fair value of identifiable intangible assets is based on material judgments made by management. The Company engages third party valuation appraisal firms to assist the Company in determining the fair values and useful lives of assets acquired of a material amount. Such valuations and useful life determinations require the Company to make material 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 for intangible assets in fiscal 2021 or fiscal 2020. 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 2021. During fiscal 2020, we recorded impairment charges to long-lived assets relating to properties held for sale in Wilmington, Delaware and Ft. Pierce, Florida. Impairment charges recorded were approximately $1.4 million for the write-down of these properties to their fair market value. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer 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 2021, 2020, and 2019 were $0.2 million, $0.3 million, and $0.2 million, respectively. Advertising Costs Advertising costs are expensed as incurred. Advertising expense was $0.4 million, $0.4 million, and $0.4 million for fiscal 2021, 2020, and 2019, respectively. Share-Based Compensation When a future restricted grant is approved, the Company evaluates the probability that the award will vest, 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 vest 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, and notes payable. As of January 1, 2022 and January 2, 2021, 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. Insurance and Self-Insurance Policy The Company purchases insurance providing financial protection from a range of risks; as of the end of fiscal 2021, the Company's insurance policies provided coverage for general liability, vehicle liability, workers' compensation, property, 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 January 1, 2022 and January 2, 2021, the Company's liability for its self-insured benefits was $1.6 million and $1.3 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 2021, 2020, and 2019 were $15.9 million, $17.6 million, and $13.3 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. As of January 1, 2022 and January 2, 2021, the Company reported goodwill only in its Environmental Services segment. In each of fiscal years 2019 and 2020, the Company performed a qualitative assessment to determine whether the quantitative impairment test was necessary. Based on the qualitative assessments in each fiscal year 2019 and 2020, 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 quantitative test was not necessary and no impairment was indicated. The Oil Business reporting unit had zero goodwill throughout each fiscal years 2019, 2020, and 2021. During fiscal year 2021, the Company performed a quantitative impairment test to identify whether goodwill had been impaired. Based on the quantitative impairment test performed in fiscal year 2021, the Company concluded the fair value of the Environmental Services reporting unit exceeded its carrying amount and therefore goodwill was not considered impaired. Recently Issued Accounting Pronouncements Accounting standards not yet adopted Standard Issuance Date Description Our Effective Date Effect on the Financial Statements ASU 2020-04: Reference Rate Reform (Topic 848) March 12, 2020 In March 2020, the FASB issued ASU 2020-04: Reference Rate Reform which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuance of LIBOR or another referenced rate. The guidance may be applied to any applicable contract entered into before December 31, 2022. The Company plans on applying the accounting standard to contracts, hedging relationships, and other transactions affected by the discontinuance of LIBOR on a prospective basis. As the Company does not have any outstanding borrowings under the financial instruments impacted by LIBOR, the effect on the financial statements is not material. |
Business Combinations
Business Combinations | 12 Months Ended |
Jan. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS On September 27, 2021, the Company completed the acquisition of Source Environmental, Inc., ("Source Environmental"), which increases the Company's penetration in the hazardous and non-hazardous waste business in several markets in the western U.S. This transaction also provides us the opportunity to internalize the performance of certain field service activities in the western U.S. Total consideration for the acquisition was approximately $20.4 million. Factors leading to goodwill being recognized are the Company’s expectation of synergies from combining operations of Source Environmental, and the Company as well as the value of intangible assets that are not separately recognized, such as the assembled workforce. Transaction costs incurred in conjunction with the acquisition of Source Environmental were immaterial. The results of Source Environmental are consolidated into the Company’s Environmental Services segment. On September 13, 2021, the Company completed the acquisition of Raider Environmental Services of Florida, Inc., ("Raider Environmental"), which has expanded our network of wastewater processing, oil collection and non-hazardous waste solidification to better serve our customers in Florida and throughout the Southern United States. Total consideration for the acquisition was approximately $13.7 million. This acquisition provides the Company with another wastewater treatment facility as well as assets to help further our initiative to increase our non-hazardous containerized waste processing capabilities. This also provides us exposure to industry verticals in which we didn't previously participate. Factors leading to goodwill being recognized are the Company’s expectation of synergies from combining operations of Raider Environmental, and the Company as well as the value of intangible assets that are not separately recognized, such as the assembled workforce. Transaction costs incurred in conjunction with the acquisition of Raider Environmental were immaterial. The results of Raider Environment are consolidated primarily into the Company’s Environmental Services segment and an immaterial amount in the Oil Business segment from the date of acquisition. On August 24, 2021, Heritage-Crystal Clean completed the acquisition of certain assets of Bakersfield Transfer, Inc., and Cole’s Services, Inc., together known as ("Cole's Environmental"), which processed, stored, and disposed of hazardous waste within the state of California. The purchase price was $17.3 million subject to certain adjustments, including a contingent consideration provision. Goodwill recognized from the acquisition of Cole's Environmental, represents the excess of the estimated purchase consideration transferred over the estimated fair value of the assets acquired and liabilities assumed. Factors leading to goodwill being recognized are the Company’s expectation of synergies from combining operations of Cole's Environmental, and the Company as well as the value of intangible assets that are not separately recognized, such as the assembled workforce. The results of Cole's Environmental are consolidated primarily into the Company’s Environmental Services segment and an immaterial amount in the Oil Business segment from the date of acquisition. On March 31, 2020, the Company completed the acquisition of certain assets of Gro America (“Gro”), which has expanded our network of wastewater processing facilities and augmented our field services capabilities to better serve our customers throughout the Midwestern United States. The purchase price was $10.0 million subject to certain adjustments, including a working capital adjustment, and was allocated based on our estimates and assumptions of the approximate fair values of assets acquired and liabilities assumed on the acquisition date. Goodwill recognized from the acquisition of Gro America represents the excess of the estimated purchase consideration transferred over the estimated fair value of the assets acquired and liabilities assumed. Factors leading to goodwill being recognized consist of the Company's expectations of synergies from combining operations of Gro America and the Company as well as the value of intangible assets that are not separately recognized, such as assembled workforce. Transaction costs incurred in conjunction with the acquisition of Gro America were immaterial. The results of Gro America are consolidated into the Company’s Environmental Services segment. On January 28, 2020, the Company acquired the remaining ownership interest in one of our subsidiaries in the amount of $2.7 million. The following table summarizes the estimated fair values of the assets acquired, net of cash acquired, related to each acquisition as of January 1, 2022: As of January 1, 2022 (thousands) Source Environmental, Inc. Raider Environmental Services of Florida, Inc. Cole's Environmental Gro America Accounts receivable $ 1,064 $ 488 $ — $ 752 Inventory — — 73 — Other current assets 6 162 — — Property, plant, & equipment 174 4,404 2,455 1,490 Intangible assets 13,692 6,056 9,620 5,300 Goodwill 6,174 2,835 5,144 2,541 Accounts payable and accruals (677) (218) — (78) Total purchase price, net of cash acquired $ 20,433 $ 13,727 $ 17,292 $ 10,005 Less: contingent consideration — — 5,819 — Less: to be placed in escrow — — 100 — Net cash paid $ 20,433 $ 13,727 $ 11,373 $ 10,005 Unaudited Pro Forma Financial Information Unaudited Pro Forma Financial Information The pro forma financial information in the table below presents the combined results of the Company as if Source Environmental, Inc., Raider Environmental Services of Florida, Inc., Cole's Environmental, and Gro America acquisitions had occurred December 29, 2019. 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. Fiscal Year Ended, (thousands, except per share data) January 1, 2022 January 2, 2021 Total revenues $ 541,731 $ 431,071 Net income $ 66,045 $ 13,406 Net income per share: basic $ 2.82 $ 0.58 Net income per share: diluted $ 2.80 $ 0.57 |
Revenue
Revenue | 12 Months Ended |
Jan. 01, 2022 | |
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. The majority of revenue is recognized at a point in time, except for rental income which is recognized on an overtime basis. 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 uncollectible accounts is our best estimate of the amount of probable lifetime-expected credit losses in existing accounts receivable and is determined based on our historical collections experience, age of the receivable, knowledge of the customer and the condition of the general economy and industry as a whole. The Company does not have any off-balance-sheet credit exposure related to its customers. Accounts receivable are written off once the Company determines the account to be uncollectible. 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, For the Fiscal Year Ended, Total Net Sales by Major Lines of Business (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Environmental Services Oil Business Total Parts cleaning, containerized waste, & related products/services $ 178,242 $ — $ 178,242 $ 159,065 $ — $ 159,065 $ 168,521 $ — $ 168,521 Vacuum Services & Wastewater Treatment 64,595 — $ 64,595 55,759 — 55,759 60,736 — 60,736 Field Services 20,972 — $ 20,972 24,036 — 24,036 21,701 — 21,701 Antifreeze Business 27,824 — $ 27,824 25,736 — 25,736 27,321 — 27,321 Environmental Services - Other 1,855 — $ 1,855 1,780 — 1,780 1,856 — 1,856 Re-refinery Product Sales — 171,605 $ 171,605 — 87,323 87,323 — 115,551 115,551 Oil Collection Services & RFO — 20,105 $ 20,105 — 23,324 23,324 — 21,445 21,445 Oil Filter Business — 5,402 $ 5,402 — 4,629 4,629 — 4,633 4,633 Revenues from Contracts with Customers 293,488 197,112 490,600 266,376 115,276 381,652 280,135 141,629 421,764 Rental income 24,679 55 24,734 24,216 83 24,299 22,408 255 22,663 Total Revenues $ 318,167 $ 197,167 $ 515,334 $ 290,592 $ 115,359 $ 405,951 $ 302,543 $ 141,884 $ 444,427 The following table provides information about contract assets and contract liabilities from contracts with customers: (thousands) January 1, 2022 January 2, 2021 Contract assets $ 268 $ 71 Contract liabilities 2,362 2,054 Contract liabilities - net $ 2,094 $ 1,983 During the fiscal year ended January 1, 2022, the Company recognized $2.0 million of revenue that was included in the contract liabilities balance as of January 2, 2021. 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 |
Jan. 01, 2022 | |
Receivables [Abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE Accounts Receivable - Net, includes amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. Accounts receivable consisted of the following: (thousands) January 1, January 2, Trade $ 59,132 $ 47,191 Less: allowance for uncollectible accounts 2,928 2,502 Trade - net 56,204 44,689 Related parties 5,410 3,276 Other 899 514 Total accounts receivable - net $ 62,513 $ 48,479 The following table provides the changes in the Company’s allowance for uncollectible accounts for the fiscal year ended January 1, 2022 and the fiscal year ended January 2, 2021: (thousands) January 1, January 2, Balance at beginning of period $ 2,502 $ 2,221 Provision for bad debts 1,930 1,919 Accounts written off, net of recoveries (1,504) (1,638) Balance at end of period $ 2,928 $ 2,502 |
Inventory
Inventory | 12 Months Ended |
Jan. 01, 2022 | |
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) January 1, January 2, Solvents and solutions $ 7,704 $ 6,672 Used oil and processed oil 9,361 6,345 Machines 4,995 5,704 Drums and supplies 5,731 4,423 Other 2,246 2,221 Total inventory 30,037 25,365 Less: machine refurbishing reserve 501 387 Total inventory - net $ 29,536 $ 24,978 The Company continually monitors its inventory levels at each of its locations and evaluates inventories for excess or slow-moving items. If circumstances indicate the cost of inventories exceed their recoverable value, inventories are reduced to net realizable value. In fiscal 2021, we recorded $0.2 million of inventory impairment charges. In fiscal 2020 the Company recorded no inventory impairment charges. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Jan. 01, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment consisted of the following: (thousands) January 1, January 2, Machinery, vehicles, and equipment $ 148,004 $ 138,496 Buildings and storage tanks 75,774 72,938 Land 5,910 5,909 Leasehold improvements 8,516 6,929 Construction in progress 15,756 8,023 Total property, plant, and equipment 253,960 232,295 Less: accumulated depreciation 87,659 79,279 Property, plant, and equipment - net $ 166,301 $ 153,016 (thousands) January 1, January 2, Equipment at customers $ 86,599 $ 81,881 Less: accumulated depreciation 62,453 58,770 Equipment at customers - net $ 24,146 $ 23,111 Right of use assets and liabilities consist of the following: (thousands) Classification January 1, January 2, Finance lease assets - net Right of use assets $ 19,094 $ 13,874 Operating lease assets - net Right of use assets 64,771 65,068 Current lease liability - finance Current liabilities 2,548 1,765 Current lease liability - operating Current liabilities 17,598 17,433 Noncurrent lease liability - finance Long-term liabilities 17,643 12,700 Noncurrent lease liability - operating Long-term liabilities 47,398 47,594 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jan. 01, 2022 | |
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. As of January 2, 2021, the Company reported goodwill only in its Environmental Services segment. The following table shows changes to our goodwill balances by segment during the years ended December 28, 2019, and January 2, 2021, and January 1, 2022: (thousands) Environmental Services Total Goodwill at December 28, 2019 Gross carrying amount 32,997 32,997 Accumulated impairment loss — — Net book value at December 28, 2019 $ 32,997 $ 32,997 Acquisitions and other adjustments $ 2,544 $ 2,544 Goodwill at January 2, 2021 Gross carrying amount 35,541 35,541 Accumulated impairment loss — — Net book value at January 2, 2021 $ 35,541 $ 35,541 Acquisitions $ 14,154 $ 14,154 Goodwill at January 1, 2022 Gross carrying amount 49,695 49,695 Accumulated impairment loss — — Net book value at January 1, 2022 $ 49,695 $ 49,695 Following is a summary of software and other intangible assets: January 1, 2022 January 2, 2021 (thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships $ 47,167 $ 20,725 $ 26,442 $ 30,857 $ 16,934 $ 13,923 Permits 13,590 879 $ 12,711 690 637 53 Software 11,721 6,399 $ 5,322 9,592 5,645 3,947 Non-compete agreements 4,048 3,340 $ 708 3,607 3,212 395 Patents, formulae, and licenses 1,769 906 $ 863 1,769 850 919 Other* 996 1,093 $ (97) 1,048 709 339 Total software and intangible assets $ 79,291 $ 33,342 $ 45,949 $ 47,563 $ 27,987 $ 19,576 *Other intangibles include an above market lease acquired in September 2021 that had a fair value of ($0.7) million upon acquisition and is being accreted over the remaining useful life of the lease. Amortization expense was $5.4 million, $4.2 million, and $3.6 million, for fiscal 2021, 2020, and 2019, respectively. The weighted average useful lives of software and other intangibles are as follows: Intangible asset Weighted average useful life (years) Permits 16 Patents, formulae, & licenses 15 Customer and supplier relationships 12 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) 2022 $6.2 2023 5.7 2024 4.0 2025 3.0 2026 2.4 2027 2.3 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 2021, 2020, or 2019. |
Accounts Payable
Accounts Payable | 12 Months Ended |
Jan. 01, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable | ACCOUNTS PAYABLE Accounts payable consisted of the following: (thousands) January 1, January 2, Accounts payable $ 35,613 $ 29,263 Accounts payable - related parties 566 400 Total accounts payable $ 36,179 $ 29,663 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 12 Months Ended |
Jan. 01, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | DEBT AND FINANCING ARRANGEMENTS Bank Credit Facility On March 18, 2021, Heritage-Crystal Clean, LLC, (the “Company”), entered into an Amended and Restated Credit Agreement (the "Agreement"), by and among the Company, its parent, Heritage-Crystal Clean, Inc., and the Company’s subsidiaries identified therein and Bank of America, N.A., as administrative agent, JPMorgan Chase Bank, N.A., and Wells Fargo Bank, National Association. The Agreement replaces the Company's previous Credit Agreement dated as of February 21, 2017. During the first quarter the Company paid down its previous term loan, in full, of $30.0 million. The new Agreement provides for borrowings of up to $100.0 million, in the form of a revolving facility, of which $15.0 million can be used in the form of a Swing Line loan. 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 3.50 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. The Credit Agreement places certain limitations on acquisitions and the payment of dividends. Debt at January 1, 2022 and January 2, 2021 consisted of the following: (thousands) January 1, 2022 January 2, 2021 Principal amount $ — $ 30,000 Less: unamortized debt issuance costs — 344 Long-term debt, less current maturities $ — $ 29,656 In fiscal 2021, the Company recorded interest expense of $0.9 million with respect to our term loan and credit line, and related amortization of debt issuance costs, along with $0.6 million of finance lease interest expense. In fiscal 2020, the Company recorded interest expense of $1.6 million, of which $0.9 million of interest expense was on our term loan, and $0.3 million was amortization of debt issuance costs, along with $0.4 million of finance lease interest expense. No interest was capitalized in fiscal years 2021 and 2020. As of January 1, 2022 and January 2, 2021, the Company was in compliance with all covenants under the Credit Agreement. As of January 1, 2022, and January 2, 2021, the Company had $5.6 million and $4.0 million of standby letters of credit issued, respectively, and $94.4 million and $61.0 million was available for borrowing under the bank credit facility, respectively. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Jan. 01, 2022 | |
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 suspended its contribution matching program for a portion of fiscal year 2020 as a response to the negative impact on our business from the COVID-19 pandemic. However, the Company restored its contribution matching program during the fourth quarter of the fiscal year 2020. The Company's matching contribution under this plan was $3.0 million, $1.7 million, and $2.6 million in fiscal 2021, 2020, and 2019, respectively. |
Related Party and Affiliate Tra
Related Party and Affiliate Transactions | 12 Months Ended |
Jan. 01, 2022 | |
Related Party Transactions [Abstract] | |
Related Party and Affiliate Transactions | RELATED PARTY AND AFFILIATE TRANSACTIONS As of January 1, 2022, the Heritage Group beneficially owned 32.3% of the Company's common stock. The Fehsenfeld Family Trusts, which are related to The Heritage Group owned 6.6% of the Company's common stock, and Fred Fehsenfeld, Jr., the Chairman of the Board and an affiliate of the Heritage Group, beneficially owned 4.5% of the Company's common stock. Companies affiliated with The Heritage Group are listed as affiliates. During fiscal 2021, 2020, and 2019, the Company had transactions with The Heritage Group affiliates and other related parties. The following table sets forth related-party transactions: Fiscal 2021 Fiscal 2020 Fiscal 2019 (thousands) Revenues Expenses Revenues Expenses Revenues Expenses Heritage Group affiliates $ 1,077 $ 6,958 $ 7,356 $ 6,230 $ 8,705 $ 3,846 Other related parties / affiliates 35,321 397 11,676 — 7,653 486 Total $ 36,398 $ 7,355 $ 19,032 $ 6,230 $ 16,358 $ 4,332 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, disposal services, transportation, insurance payments, 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 2021, 2020, and 2019 were approximately $0.2 million, $0.2 million, and $0.3 million, respectively. Our participation in this self-insurance program ended on January 31, 2018. |
Segment Information
Segment Information | 12 Months Ended |
Jan. 01, 2022 | |
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, wastewater vacuum 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 January 1, 2022, January 2, 2021, and December 28, 2019, were as follows: For the Fiscal Years Ended, January 1, 2022 (thousands) Environmental Oil Business Corporate and Consolidated Revenues Service revenues $ 248,121 $ 14,742 $ — $ 262,863 Product revenues 45,367 182,370 — 227,737 Rental income 24,679 55 — 24,734 Total revenues $ 318,167 $ 197,167 $ — $ 515,334 Operating expenses Operating costs 232,837 119,959 — 352,796 Operating depreciation and amortization 10,112 7,886 — 17,998 Profit (loss) before corporate selling, general, and administrative expenses $ 75,218 $ 69,322 $ — $ 144,540 Selling, general, and administrative expenses 56,987 56,987 Depreciation and amortization from SG&A 5,544 5,544 Total selling, general, and administrative expenses $ 62,531 $ 62,531 Other income - net (988) (988) Operating income 82,997 Interest expense - net 933 933 Income before income taxes $ 82,064 For the Fiscal Years Ended, January 2, 2021 (thousands) Environmental Oil Business Corporate and Consolidated Revenues Service revenues $ 224,123 $ 21,351 $ — $ 245,474 Product revenues 42,253 93,925 — 136,178 Rental income 24,216 83 — 24,299 Total revenues $ 290,592 $ 115,359 $ — $ 405,951 Operating expenses Operating costs 215,602 106,046 — 321,648 Operating depreciation and amortization 10,863 9,358 — 20,221 Profit (loss) before corporate selling, general, and administrative expenses $ 64,127 $ (45) $ — $ 64,082 Selling, general, and administrative expenses 47,091 47,091 Depreciation and amortization from SG&A 4,342 4,342 Total selling, general, and administrative expenses $ 51,433 $ 51,433 Other income - net (5,365) (5,365) Operating income 18,014 Interest expense - net 1,252 1,252 Income before income taxes $ 16,762 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 Total assets by segment as of January 1, 2022 and January 2, 2021 were as follows: (thousands) January 1, 2022 January 2, 2021 Total Assets: Environmental Services $ 281,333 $ 217,297 Oil Business 171,188 160,165 Unallocated Corporate Assets 74,343 84,207 Total $ 526,864 $ 461,669 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, prepaid, and property, plant, and equipment used at the corporate headquarters. Capital expenditures by segment for fiscal 2021, 2020, and 2019 were as follows: For the Fiscal Years Ended, (thousands) January 1, 2022 January 2, 2021 December 28, 2019 Total Capital Expenditures: Environmental Services $ 10,825 $ 13,161 $ 18,499 Oil Business 12,049 9,744 12,670 Unallocated Corporate Assets 1,194 833 124 Total $ 24,068 $ 23,738 $ 31,293 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 01, 2022 | |
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. 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, For the Fiscal Year Ended, Finance lease cost: Amortization of right-of-use Assets $ 2,894 $ 1,805 Interest on lease liabilities 551 380 Total finance lease cost $ 3,445 $ 2,185 Operating lease cost $ 22,761 $ 25,138 Short-term lease cost 5,971 5,923 Variable lease cost 3,018 3,597 Total lease cost $ 35,195 $ 36,843 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from financing leases $ 550 $ 373 Operating cash flows from operating leases 22,500 24,646 Financing cash flows from financing leases 2,222 1,343 Right-of-use assets obtained in exchange for new finance lease liabilities 8,111 8,846 Right-of-use assets obtained in exchange for new operating lease liabilities 16,299 2,921 Weighted-average remaining lease term (years) Finance leases 5.6 6.1 Operating leases 4.9 4.6 Weighted-average discount rate Finance leases 3.2 % 3.2 % Operating leases 5.0 % 5.7 % Future annual minimum lease payment commitments as of January 1, 2022 were as follows: (thousands) Operating Leases Finance Leases Total 2022 $ 20,653 $ 3,308 $ 23,961 2023 16,777 3,308 20,085 2024 12,072 3,308 15,380 2025 8,201 3,251 11,452 2026 4,794 4,199 8,993 2027 and thereafter 10,606 5,173 15,779 Total minimum lease payments $ 73,103 $ 22,547 $ 95,650 Less: imputed interest 8,271 2,192 10,463 Lease liability $ 64,832 $ 20,355 $ 85,187 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-year extensions. Options to terminate the lease range from immediate termination upon return of the asset to various written notification periods following a minimum lease term. Options for a lessee to purchase the underlying asset are not contractually specified but may be negotiated on a case-by-case basis. Significant judgments made in determining whether a contract contains a lease include assessments as to whether or not the contract conveys the right to direct the use of an identified asset. Significant judgments made in allocating consideration between lease and non-lease components include techniques applied in estimating the relative stand-alone selling prices of the lease and non-lease components of the contract in cases where a stand-alone selling price is not directly observa ble. 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 was as follows: For the Fiscal Year Ended For the Fiscal Year Ended January 1, 2022 January 2, 2021 (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Parts Cleaning $ 24,572 $ — $ 24,572 $ 24,216 $ — $ 24,216 Railcars — — — — 16 16 Property 107 55 162 — 67 67 Total rental income $ 24,679 $ 55 $ 24,734 $ 24,216 $ 83 $ 24,299 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. The Company had purchase obligations in the form of open purchase orders of $27.4 million as of January 1, 2022, and $20.0 million as of January 2, 2021, primarily for capital expenditures, used oil, catalyst, disposal services, and solvent. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES In December 2019, the FASB issued ASU 2019-12, (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 intends to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application of Topic 740. This guidance is effective for fiscal years beginning after December 15, 2020, including interim periods therein. The adoption of ASU 2019-12 does not have a material effect on the Company’s financial statements. 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 2021. 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 Net Operating Losses ("NOLs") in most years from fiscal 2011 through fiscal 2019. During fiscal 2021, the Company utilized all Federal and State the NOLs. A full valuation allowance of $0.6 million has been set up on the NOL related to foreign operations. The Company's effective tax rate for fiscal 2021 was 25.8% compared to 28.8% in fiscal 2020. The difference in the effective tax rate is principally attributable to the diminished impact of certain required adjustments to financial reporting income in determining taxable income in fiscal 2021 as compared to the impact of those adjustments in fiscal year 2020 due to financial reporting income in 2021 increasing substantially over financial reporting income in fiscal year 2020. Components of the Company's income tax benefit and provision consist of the following for fiscal years 2021, 2020, and 2019: For the Fiscal Years Ended, (thousands) January 1, 2022 January 2, 2021 December 28, 2019 Current: Federal $ 7,984 $ (104) $ (79) State 3,224 264 681 Total current $ 11,208 $ 160 $ 602 Deferred: Federal $ 8,505 $ 3,492 $ 2,328 State 1,403 1,173 313 Total deferred $ 9,908 $ 4,665 $ 2,641 Income tax provision $ 21,116 $ 4,825 $ 3,243 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) January 1, 2022 January 2, 2021 December 28, 2019 Tax expense at statutory federal rate $ 17,201 $ 3,520 $ 2,518 State and local tax, net of federal expense 3,705 1,085 785 Windfalls from share-based compensation (366) (141) (369) Valuation allowance 73 196 117 Other 503 165 192 Total income tax provision $ 21,116 $ 4,825 $ 3,243 Components of deferred tax assets (liabilities) are as follows: As of, (thousands) January 1, 2022 January 2, 2021 Deferred tax assets: Net operating loss carryforward $ 579 $ 6,555 Stock compensation 2,739 2,201 Tax intangible assets 1,118 1,222 Reserves and accruals 3,480 3,694 Income tax credits — 734 Allowance for uncollectible accounts 786 682 Total deferred tax asset $ 8,702 $ 15,088 Less: valuation allowance 579 519 Net deferred tax asset $ 8,123 $ 14,569 Deferred tax liabilities: Prepaids $ (1,063) $ (762) Depreciation and amortization (38,186) (35,025) Total deferred tax liability $ (39,249) $ (35,787) Net deferred tax liability $ (31,126) $ (21,218) As of January 1, 2022, the Company is no longer subject to U.S. federal examinations by taxing authorities for years prior to 2017, however net operating loss carryforwards from years prior to 2018 remain open to examination as part of any future year(s) in which those net operating loss carryforwards are utilized. As of January 1, 2022, the Company believes it is more likely than not that a benefit from foreign net operating loss carryforwards will not be realized. For the fiscal years ended January 1, 2022 and January 2, 2021, the Company provided a valuation allowance against those foreign net operating loss carryforwards of $0.6 million and $0.5 million, respectively. 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 $2.2 million for uncertain tax positions as of January 1, 2022 and $2.8 million as of January 2, 2021. 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 January 1, 2022, or January 2, 2021. The following table summarizes the movement in unrecognized tax benefits: For the Fiscal Years Ended, (thousands) January 1, 2022 January 2, 2021 Gross Unrecognized Tax Benefits: Beginning balance $ 2,799 $ 2,678 Additions based on current year's tax positions 31 19 Net changes based on prior year's tax positions (604) 102 Ending balance $ 2,226 $ 2,799 |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Jan. 01, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION Restricted Stock Compensation/Awards Annually, the Company grants restricted shares to its Board of Directors. The shares vest approximately 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 service 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 a three-day average closing price of the Company's common stock prior to the date of grant. On April 13, 2018, the Company granted 350,000, of which 125,417 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 393,021 shares depending on the Company’s level of performance with regard to certain market conditions. Up to 393,021 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 2021 2020 2019 January 1, 2022 January 2, 2021 Chief Executive Officer February, 2017 500,000 — 470 723 — 37 Members of Management February, 2018 116,958 — 566 562 — — Special Incentive Grant April, 2018 350,000 1,540 970 1,120 380 1,651 Board of Directors May, 2019 10,590 — — 285 — — Members of Management May, 2019 23,560 36 203 202 — 254 Members of Management February, 2020 41,138 101 43 681 87 331 Board of Directors April, 2020 14,988 — 285 — — — Chief Executive Officer February, 2021 500,000 1,619 — — 3,881 — Members of Management February, 2021 35,898 183 — — 448 — Board of Directors April, 2021 11,487 332 — — — — On January 8, 2021, the Company and Mr. Brian Recatto entered into an amended Executive Employment Agreement (the “Amended Agreement”) which was effective on February 1, 2021. Pursuant to the Amended Agreement, the Company replaced in its entirety section 4.3 of the First Amendment to the Executive Employment Agreement relating to equity compensation that was effective February 1, 2017. As of February 1, 2021, Mr. Recatto received a one-time award of 500,000 shares of restricted stock, subject to the achievement of performance criteria established by the Compensation Committee of the Board of Directors pursuant to the Company's 2019 Incentive Plan. The award date for such Performance-Based Restricted Stock was on February 1, 2021. Such award was granted pursuant to and governed by the terms of the 2019 Incentive Plan and an award agreement in a form provided by the Company. The Performance-Based Restricted Stock one-time award of 500,000 shares received on February 1, 2021, shall vest on January 31, 2025 if Mr. Recatto is employed by the Company on that date, in an amount determined by applying the applicable percentages from the chart below, with the common stock price increases 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 amended agreement commencement date ($21.77) 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. During the third quarter of fiscal 2021, the Company recorded approximately $1.6 million of compensation expense related to this award. In the future, the Company expects to recognize compensation expense of approximately $3.9 million over the remaining requisite service period, which ends January 31, 2025. 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 0.29%, expected dividend yield of zero, and an expected volatility assumption of 53.07%. . 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% (vest in 125,000 shares) $10 per share increase 50% (vest in 250,000 shares) $15 per share increase 75% (vest in 375,000 shares) $20 or more per share increase 100% (vest in 500,000 shares) 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. In addition, on each of December 31, 2021, December 31, 2022, and December 31, 2023, to the extent Mr. Recatto remains employed by the Company under the Amended Agreement on such date, Mr. Recatto shall receive a grant of restricted stock as of such date valued at Five Hundred Thousand Dollars ($500,000), with the number of shares of restricted stock constituting such grant determined by applying the average closing price for a share of the Company’s common stock for the 90-day period ending on such date. Such awards of Time-Based Restricted Stock shall be granted pursuant to and governed by the terms of the 2019 Incentive Plan and an award agreement in a form provided by the Company. The Time-Based Restricted Stock shall vest only if Mr. Recatto remains employed by the Company under the Amended Agreement through December 31, 2023; provided, that, upon a Change of Control of the Company (as such term is defined in the Amended Agreement), all shares of the Time-Based Restricted Stock awarded up through the date of closing of the Change in Control shall become vested, and no further award of Time-Based Restricted Stock shall be awarded. During fiscal 2021, the Company recorded approximately $0.5 million of compensation expense related to this award. The following table summarizes information about restricted stock awards for the periods ended December 28, 2019 through January 1, 2022: Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share Nonvested shares outstanding at December 28, 2019 784,579 $ 18.39 Granted 56,126 25.72 Vested (128,483) 20.34 Forfeited (65,588) 21.92 Nonvested shares outstanding at January 2, 2021 646,634 $ 18.28 Granted 562,760 22.45 Vested (115,006) 20.58 Forfeited (370,405) 15.52 Nonvested shares outstanding at January 1, 2022 723,983 $ 21.83 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 Monday 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. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 01, 2022 | |
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. and Fred M. Fehsenfeld Jr. pursuant to which Heritage and Mr. Fehsenfeld have the option to participate, pro rata based on their 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 or Mr. Fehsenfeld exercises their rights with respect to all offerings, they will be able to maintain their percentage ownership interest in the Company's common stock. The Participation Rights Agreement does not have an expiration date. Neither Heritage nor Mr. Fehsenfeld is required to participate or exercise their right of participation with respect to any offerings. Heritage's and Mr. Fehsenfeld'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 |
Jan. 01, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table reconciles the number of shares outstanding for fiscal 2021, 2020, and 2019 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) January 1, 2022 January 2, 2021 December 28, 2019 Net income $ 60,948 $ 11,937 $ 8,749 Less: income attributable to noncontrolling interest — — 386 Net income attributable to Heritage-Crystal Clean, Inc. common stockholders $ 60,948 $ 11,937 $ 8,363 Weighted average basic shares outstanding 23,419 23,286 23,160 Dilutive shares for share–based compensation plans 138 167 238 Weighted average diluted shares outstanding 23,557 23,453 23,398 Net income per share: basic $ 2.60 $ 0.51 $ 0.36 Net income per share: diluted $ 2.59 $ 0.51 $ 0.36 |
Other (Income) Expense - Net
Other (Income) Expense - Net | 12 Months Ended |
Jan. 01, 2022 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense - Net | OTHER (INCOME) EXPENSE - NETOther (income) - net was $1 million of income during fiscal 2021, compared to $5.4 million during fiscal 2020 driven mainly by a $6.5 million reversal of settlement claims, partially offset by $1.4 million of impairment charges relating to the decision to sell the Company's property in Wilmington Delaware. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 01, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On January 19, 2022, a civil enforcement action was filed in the United States District Court for the Northern District of Illinois, Civil Action No. 1:22-cv-00303: United States of America, Louisiana Department of Environmental Quality, and the State of Indiana vs. Heritage-Crystal Clean, LLC (the “Action”). The Action alleges that the Company’s spent solvent recycling programs violate sections 3008(a) and (g) of the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6928(a) and (g), and Indiana Code Section 13-30-4-1, including that the Company’s used 106 solvent program is not exempt under RCRA, and that sum of the waste received by the Company under its non-hazardous 142 solvent program included hazardous waste. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 01, 2022 | |
Accounting Policies [Abstract] | |
Fiscal Period | Our fiscal year ends on the Saturday closest to December 31. "Fiscal 2021" represents the 52-week period ended January 1, 2022. "Fiscal 2020" represents the 53-week period ended January 2, 2021. "Fiscal 2019" represents the 52-week period ended 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. Material items subject to such estimates and assumptions are the allowance for uncollectible 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. |
Operating Costs | 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. |
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 $60.9 million and $66.5 million at January 1, 2022 and January 2, 2021, 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 Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Consistent with industry practices, we require payment from most customers within 30 days of invoice date. Our amounts due from customers are stated at their net estimated realizable value. The allowance for uncollectible accounts is our best estimate of the amount of probable lifetime-expected credit losses in existing accounts receivable and is determined based on our historical collections experience, age of the receivable, knowledge of the customer and the condition of the general economy and industry as a whole. Accounts receivable are written off against the allowance for uncollectible accounts when we determine amounts are no longer collectible. The Company does not have any off-balance-sheet credit exposure related to its customers. |
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. 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 |
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 are stated at fair value as of the date of the acquisition. |
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 statement of operations. 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 material judgments made by management. The Company engages third party valuation appraisal firms to assist the Company in determining the fair values and useful lives of assets acquired of a material amount. Such valuations and useful life determinations require the Company to make material 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 |
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 2021. During fiscal 2020, we recorded impairment charges to long-lived assets relating to properties held for sale in Wilmington, Delaware and Ft. Pierce, Florida. Impairment charges recorded were approximately $1.4 million for the write-down of these properties to their fair market value. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer 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. |
Revenue Recognition And Cost | 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. The majority of revenue is recognized at a point in time, except for rental income which is recognized on an overtime basis. 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 uncollectible accounts is our best estimate of the amount of probable lifetime-expected credit losses in existing accounts receivable and is determined based on our historical collections experience, age of the receivable, knowledge of the customer and the condition of the general economy and industry as a whole. The Company does not have any off-balance-sheet credit exposure related to its customers. Accounts receivable are written off once the Company determines the account to be uncollectible. 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. |
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 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. |
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 2021, the Company's insurance policies provided coverage for general liability, vehicle liability, workers' compensation, property, 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 | 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. As of January 1, 2022 and January 2, 2021, the Company reported goodwill only in its Environmental Services segment. |
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 2020-04: Reference Rate Reform (Topic 848) March 12, 2020 In March 2020, the FASB issued ASU 2020-04: Reference Rate Reform which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuance of LIBOR or another referenced rate. The guidance may be applied to any applicable contract entered into before December 31, 2022. The Company plans on applying the accounting standard to contracts, hedging relationships, and other transactions affected by the discontinuance of LIBOR on a prospective basis. As the Company does not have any outstanding borrowings under the financial instruments impacted by LIBOR, the effect on the financial statements is not material. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Business Combination and Asset Acquisition [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 January 1, 2022: As of January 1, 2022 (thousands) Source Environmental, Inc. Raider Environmental Services of Florida, Inc. Cole's Environmental Gro America Accounts receivable $ 1,064 $ 488 $ — $ 752 Inventory — — 73 — Other current assets 6 162 — — Property, plant, & equipment 174 4,404 2,455 1,490 Intangible assets 13,692 6,056 9,620 5,300 Goodwill 6,174 2,835 5,144 2,541 Accounts payable and accruals (677) (218) — (78) Total purchase price, net of cash acquired $ 20,433 $ 13,727 $ 17,292 $ 10,005 Less: contingent consideration — — 5,819 — Less: to be placed in escrow — — 100 — Net cash paid $ 20,433 $ 13,727 $ 11,373 $ 10,005 |
Schedule of Unaudited Pro Forma Financial Information | Unaudited Pro Forma Financial Information Unaudited Pro Forma Financial Information The pro forma financial information in the table below presents the combined results of the Company as if Source Environmental, Inc., Raider Environmental Services of Florida, Inc., Cole's Environmental, and Gro America acquisitions had occurred December 29, 2019. 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. Fiscal Year Ended, (thousands, except per share data) January 1, 2022 January 2, 2021 Total revenues $ 541,731 $ 431,071 Net income $ 66,045 $ 13,406 Net income per share: basic $ 2.82 $ 0.58 Net income per share: diluted $ 2.80 $ 0.57 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
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, For the Fiscal Year Ended, Total Net Sales by Major Lines of Business (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Environmental Services Oil Business Total Parts cleaning, containerized waste, & related products/services $ 178,242 $ — $ 178,242 $ 159,065 $ — $ 159,065 $ 168,521 $ — $ 168,521 Vacuum Services & Wastewater Treatment 64,595 — $ 64,595 55,759 — 55,759 60,736 — 60,736 Field Services 20,972 — $ 20,972 24,036 — 24,036 21,701 — 21,701 Antifreeze Business 27,824 — $ 27,824 25,736 — 25,736 27,321 — 27,321 Environmental Services - Other 1,855 — $ 1,855 1,780 — 1,780 1,856 — 1,856 Re-refinery Product Sales — 171,605 $ 171,605 — 87,323 87,323 — 115,551 115,551 Oil Collection Services & RFO — 20,105 $ 20,105 — 23,324 23,324 — 21,445 21,445 Oil Filter Business — 5,402 $ 5,402 — 4,629 4,629 — 4,633 4,633 Revenues from Contracts with Customers 293,488 197,112 490,600 266,376 115,276 381,652 280,135 141,629 421,764 Rental income 24,679 55 24,734 24,216 83 24,299 22,408 255 22,663 Total Revenues $ 318,167 $ 197,167 $ 515,334 $ 290,592 $ 115,359 $ 405,951 $ 302,543 $ 141,884 $ 444,427 |
Schedule of Contract Assets and Contract Liabilities | The following table provides information about contract assets and contract liabilities from contracts with customers: (thousands) January 1, 2022 January 2, 2021 Contract assets $ 268 $ 71 Contract liabilities 2,362 2,054 Contract liabilities - net $ 2,094 $ 1,983 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts Payable | Accounts receivable consisted of the following: (thousands) January 1, January 2, Trade $ 59,132 $ 47,191 Less: allowance for uncollectible accounts 2,928 2,502 Trade - net 56,204 44,689 Related parties 5,410 3,276 Other 899 514 Total accounts receivable - net $ 62,513 $ 48,479 The following table provides the changes in the Company’s allowance for uncollectible accounts for the fiscal year ended January 1, 2022 and the fiscal year ended January 2, 2021: (thousands) January 1, January 2, Balance at beginning of period $ 2,502 $ 2,221 Provision for bad debts 1,930 1,919 Accounts written off, net of recoveries (1,504) (1,638) Balance at end of period $ 2,928 $ 2,502 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The carrying value of inventory consisted of the following: (thousands) January 1, January 2, Solvents and solutions $ 7,704 $ 6,672 Used oil and processed oil 9,361 6,345 Machines 4,995 5,704 Drums and supplies 5,731 4,423 Other 2,246 2,221 Total inventory 30,037 25,365 Less: machine refurbishing reserve 501 387 Total inventory - net $ 29,536 $ 24,978 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant, and equipment consisted of the following: (thousands) January 1, January 2, Machinery, vehicles, and equipment $ 148,004 $ 138,496 Buildings and storage tanks 75,774 72,938 Land 5,910 5,909 Leasehold improvements 8,516 6,929 Construction in progress 15,756 8,023 Total property, plant, and equipment 253,960 232,295 Less: accumulated depreciation 87,659 79,279 Property, plant, and equipment - net $ 166,301 $ 153,016 (thousands) January 1, January 2, Equipment at customers $ 86,599 $ 81,881 Less: accumulated depreciation 62,453 58,770 Equipment at customers - net $ 24,146 $ 23,111 |
Right of Use Assets and Liabilities | Right of use assets and liabilities consist of the following: (thousands) Classification January 1, January 2, Finance lease assets - net Right of use assets $ 19,094 $ 13,874 Operating lease assets - net Right of use assets 64,771 65,068 Current lease liability - finance Current liabilities 2,548 1,765 Current lease liability - operating Current liabilities 17,598 17,433 Noncurrent lease liability - finance Long-term liabilities 17,643 12,700 Noncurrent lease liability - operating Long-term liabilities 47,398 47,594 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
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 28, 2019, and January 2, 2021, and January 1, 2022: (thousands) Environmental Services Total Goodwill at December 28, 2019 Gross carrying amount 32,997 32,997 Accumulated impairment loss — — Net book value at December 28, 2019 $ 32,997 $ 32,997 Acquisitions and other adjustments $ 2,544 $ 2,544 Goodwill at January 2, 2021 Gross carrying amount 35,541 35,541 Accumulated impairment loss — — Net book value at January 2, 2021 $ 35,541 $ 35,541 Acquisitions $ 14,154 $ 14,154 Goodwill at January 1, 2022 Gross carrying amount 49,695 49,695 Accumulated impairment loss — — Net book value at January 1, 2022 $ 49,695 $ 49,695 |
Schedule of Finite-Lived Intangible Assets | Following is a summary of software and other intangible assets: January 1, 2022 January 2, 2021 (thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships $ 47,167 $ 20,725 $ 26,442 $ 30,857 $ 16,934 $ 13,923 Permits 13,590 879 $ 12,711 690 637 53 Software 11,721 6,399 $ 5,322 9,592 5,645 3,947 Non-compete agreements 4,048 3,340 $ 708 3,607 3,212 395 Patents, formulae, and licenses 1,769 906 $ 863 1,769 850 919 Other* 996 1,093 $ (97) 1,048 709 339 Total software and intangible assets $ 79,291 $ 33,342 $ 45,949 $ 47,563 $ 27,987 $ 19,576 *Other intangibles include an above market lease acquired in September 2021 that had a fair value of ($0.7) million upon acquisition and is being accreted over the remaining useful life of the lease. Intangible asset Weighted average useful life (years) Permits 16 Patents, formulae, & licenses 15 Customer and supplier relationships 12 Software 9 Non-compete agreements 5 Other intangibles 7 |
Schedule of 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) 2022 $6.2 2023 5.7 2024 4.0 2025 3.0 2026 2.4 2027 2.3 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable | Accounts payable consisted of the following: (thousands) January 1, January 2, Accounts payable $ 35,613 $ 29,263 Accounts payable - related parties 566 400 Total accounts payable $ 36,179 $ 29,663 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt at January 1, 2022 and January 2, 2021 consisted of the following: (thousands) January 1, 2022 January 2, 2021 Principal amount $ — $ 30,000 Less: unamortized debt issuance costs — 344 Long-term debt, less current maturities $ — $ 29,656 |
Related Party and Affiliate T_2
Related Party and Affiliate Transactions (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | During fiscal 2021, 2020, and 2019, the Company had transactions with The Heritage Group affiliates and other related parties. The following table sets forth related-party transactions: Fiscal 2021 Fiscal 2020 Fiscal 2019 (thousands) Revenues Expenses Revenues Expenses Revenues Expenses Heritage Group affiliates $ 1,077 $ 6,958 $ 7,356 $ 6,230 $ 8,705 $ 3,846 Other related parties / affiliates 35,321 397 11,676 — 7,653 486 Total $ 36,398 $ 7,355 $ 19,032 $ 6,230 $ 16,358 $ 4,332 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Segment results for the fiscal years ended January 1, 2022, January 2, 2021, and December 28, 2019, were as follows: For the Fiscal Years Ended, January 1, 2022 (thousands) Environmental Oil Business Corporate and Consolidated Revenues Service revenues $ 248,121 $ 14,742 $ — $ 262,863 Product revenues 45,367 182,370 — 227,737 Rental income 24,679 55 — 24,734 Total revenues $ 318,167 $ 197,167 $ — $ 515,334 Operating expenses Operating costs 232,837 119,959 — 352,796 Operating depreciation and amortization 10,112 7,886 — 17,998 Profit (loss) before corporate selling, general, and administrative expenses $ 75,218 $ 69,322 $ — $ 144,540 Selling, general, and administrative expenses 56,987 56,987 Depreciation and amortization from SG&A 5,544 5,544 Total selling, general, and administrative expenses $ 62,531 $ 62,531 Other income - net (988) (988) Operating income 82,997 Interest expense - net 933 933 Income before income taxes $ 82,064 For the Fiscal Years Ended, January 2, 2021 (thousands) Environmental Oil Business Corporate and Consolidated Revenues Service revenues $ 224,123 $ 21,351 $ — $ 245,474 Product revenues 42,253 93,925 — 136,178 Rental income 24,216 83 — 24,299 Total revenues $ 290,592 $ 115,359 $ — $ 405,951 Operating expenses Operating costs 215,602 106,046 — 321,648 Operating depreciation and amortization 10,863 9,358 — 20,221 Profit (loss) before corporate selling, general, and administrative expenses $ 64,127 $ (45) $ — $ 64,082 Selling, general, and administrative expenses 47,091 47,091 Depreciation and amortization from SG&A 4,342 4,342 Total selling, general, and administrative expenses $ 51,433 $ 51,433 Other income - net (5,365) (5,365) Operating income 18,014 Interest expense - net 1,252 1,252 Income before income taxes $ 16,762 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 |
Schedule of Reconciliation of Assets from Segment to Consolidated | Total assets by segment as of January 1, 2022 and January 2, 2021 were as follows: (thousands) January 1, 2022 January 2, 2021 Total Assets: Environmental Services $ 281,333 $ 217,297 Oil Business 171,188 160,165 Unallocated Corporate Assets 74,343 84,207 Total $ 526,864 $ 461,669 |
Schedule of Capital Expenditures by Segment | Capital expenditures by segment for fiscal 2021, 2020, and 2019 were as follows: For the Fiscal Years Ended, (thousands) January 1, 2022 January 2, 2021 December 28, 2019 Total Capital Expenditures: Environmental Services $ 10,825 $ 13,161 $ 18,499 Oil Business 12,049 9,744 12,670 Unallocated Corporate Assets 1,194 833 124 Total $ 24,068 $ 23,738 $ 31,293 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows: (thousands) For the Fiscal Year Ended, For the Fiscal Year Ended, Finance lease cost: Amortization of right-of-use Assets $ 2,894 $ 1,805 Interest on lease liabilities 551 380 Total finance lease cost $ 3,445 $ 2,185 Operating lease cost $ 22,761 $ 25,138 Short-term lease cost 5,971 5,923 Variable lease cost 3,018 3,597 Total lease cost $ 35,195 $ 36,843 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from financing leases $ 550 $ 373 Operating cash flows from operating leases 22,500 24,646 Financing cash flows from financing leases 2,222 1,343 Right-of-use assets obtained in exchange for new finance lease liabilities 8,111 8,846 Right-of-use assets obtained in exchange for new operating lease liabilities 16,299 2,921 Weighted-average remaining lease term (years) Finance leases 5.6 6.1 Operating leases 4.9 4.6 Weighted-average discount rate Finance leases 3.2 % 3.2 % Operating leases 5.0 % 5.7 % |
Schedule of Future Annual Minimum Operating Lease Payment Commitments | Future annual minimum lease payment commitments as of January 1, 2022 were as follows: (thousands) Operating Leases Finance Leases Total 2022 $ 20,653 $ 3,308 $ 23,961 2023 16,777 3,308 20,085 2024 12,072 3,308 15,380 2025 8,201 3,251 11,452 2026 4,794 4,199 8,993 2027 and thereafter 10,606 5,173 15,779 Total minimum lease payments $ 73,103 $ 22,547 $ 95,650 Less: imputed interest 8,271 2,192 10,463 Lease liability $ 64,832 $ 20,355 $ 85,187 |
Schedule of Future Annual Minimum Financing Lease Payment Commitments | Future annual minimum lease payment commitments as of January 1, 2022 were as follows: (thousands) Operating Leases Finance Leases Total 2022 $ 20,653 $ 3,308 $ 23,961 2023 16,777 3,308 20,085 2024 12,072 3,308 15,380 2025 8,201 3,251 11,452 2026 4,794 4,199 8,993 2027 and thereafter 10,606 5,173 15,779 Total minimum lease payments $ 73,103 $ 22,547 $ 95,650 Less: imputed interest 8,271 2,192 10,463 Lease liability $ 64,832 $ 20,355 $ 85,187 |
Schedule of Rental Income | Rental income was as follows: For the Fiscal Year Ended For the Fiscal Year Ended January 1, 2022 January 2, 2021 (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Parts Cleaning $ 24,572 $ — $ 24,572 $ 24,216 $ — $ 24,216 Railcars — — — — 16 16 Property 107 55 162 — 67 67 Total rental income $ 24,679 $ 55 $ 24,734 $ 24,216 $ 83 $ 24,299 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
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 2021, 2020, and 2019: For the Fiscal Years Ended, (thousands) January 1, 2022 January 2, 2021 December 28, 2019 Current: Federal $ 7,984 $ (104) $ (79) State 3,224 264 681 Total current $ 11,208 $ 160 $ 602 Deferred: Federal $ 8,505 $ 3,492 $ 2,328 State 1,403 1,173 313 Total deferred $ 9,908 $ 4,665 $ 2,641 Income tax provision $ 21,116 $ 4,825 $ 3,243 |
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) January 1, 2022 January 2, 2021 December 28, 2019 Tax expense at statutory federal rate $ 17,201 $ 3,520 $ 2,518 State and local tax, net of federal expense 3,705 1,085 785 Windfalls from share-based compensation (366) (141) (369) Valuation allowance 73 196 117 Other 503 165 192 Total income tax provision $ 21,116 $ 4,825 $ 3,243 |
Schedule of Deferred Tax Assets and Liabilities | Components of deferred tax assets (liabilities) are as follows: As of, (thousands) January 1, 2022 January 2, 2021 Deferred tax assets: Net operating loss carryforward $ 579 $ 6,555 Stock compensation 2,739 2,201 Tax intangible assets 1,118 1,222 Reserves and accruals 3,480 3,694 Income tax credits — 734 Allowance for uncollectible accounts 786 682 Total deferred tax asset $ 8,702 $ 15,088 Less: valuation allowance 579 519 Net deferred tax asset $ 8,123 $ 14,569 Deferred tax liabilities: Prepaids $ (1,063) $ (762) Depreciation and amortization (38,186) (35,025) Total deferred tax liability $ (39,249) $ (35,787) Net deferred tax liability $ (31,126) $ (21,218) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarizes the movement in unrecognized tax benefits: For the Fiscal Years Ended, (thousands) January 1, 2022 January 2, 2021 Gross Unrecognized Tax Benefits: Beginning balance $ 2,799 $ 2,678 Additions based on current year's tax positions 31 19 Net changes based on prior year's tax positions (604) 102 Ending balance $ 2,226 $ 2,799 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Share-based Payment Arrangement [Abstract] | |
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 2021 2020 2019 January 1, 2022 January 2, 2021 Chief Executive Officer February, 2017 500,000 — 470 723 — 37 Members of Management February, 2018 116,958 — 566 562 — — Special Incentive Grant April, 2018 350,000 1,540 970 1,120 380 1,651 Board of Directors May, 2019 10,590 — — 285 — — Members of Management May, 2019 23,560 36 203 202 — 254 Members of Management February, 2020 41,138 101 43 681 87 331 Board of Directors April, 2020 14,988 — 285 — — — Chief Executive Officer February, 2021 500,000 1,619 — — 3,881 — Members of Management February, 2021 35,898 183 — — 448 — Board of Directors April, 2021 11,487 332 — — — — The following table summarizes information about restricted stock awards for the periods ended December 28, 2019 through January 1, 2022: Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share Nonvested shares outstanding at December 28, 2019 784,579 $ 18.39 Granted 56,126 25.72 Vested (128,483) 20.34 Forfeited (65,588) 21.92 Nonvested shares outstanding at January 2, 2021 646,634 $ 18.28 Granted 562,760 22.45 Vested (115,006) 20.58 Forfeited (370,405) 15.52 Nonvested shares outstanding at January 1, 2022 723,983 $ 21.83 |
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% (vest in 125,000 shares) $10 per share increase 50% (vest in 250,000 shares) $15 per share increase 75% (vest in 375,000 shares) $20 or more per share increase 100% (vest in 500,000 shares) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles the number of shares outstanding for fiscal 2021, 2020, and 2019 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) January 1, 2022 January 2, 2021 December 28, 2019 Net income $ 60,948 $ 11,937 $ 8,749 Less: income attributable to noncontrolling interest — — 386 Net income attributable to Heritage-Crystal Clean, Inc. common stockholders $ 60,948 $ 11,937 $ 8,363 Weighted average basic shares outstanding 23,419 23,286 23,160 Dilutive shares for share–based compensation plans 138 167 238 Weighted average diluted shares outstanding 23,557 23,453 23,398 Net income per share: basic $ 2.60 $ 0.51 $ 0.36 Net income per share: diluted $ 2.59 $ 0.51 $ 0.36 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details) | 12 Months Ended |
Jan. 01, 2022segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Jan. 01, 2022USD ($)acquisition | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | |
Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 56,269,000 | $ 67,575,000 | |
Cash deposits in excess of FDIC insured limit | 60,900,000 | 66,500,000 | |
Inventory write-downs | $ 200,000 | 0 | |
Number acquisitions | acquisition | 3 | ||
Impairment of intangibles | $ 0 | 0 | $ 0 |
Impairment of long-lived assets | 0 | 1,400,000 | |
Research and development expense | 200,000 | 300,000 | 200,000 |
Advertising expense | 400,000 | 400,000 | 400,000 |
Self insurance stop loss limit | 300,000 | ||
Self insurance reserve | (1,600,000) | (1,300,000) | |
Expenses incurred for healthcare benefits | 15,900,000 | 17,600,000 | 13,300,000 |
Goodwill | 49,695,000 | 35,541,000 | 32,997,000 |
Oil Business | |||
Significant Accounting Policies [Line Items] | |||
Goodwill | $ 0 | 0 | $ 0 |
Software | |||
Significant Accounting Policies [Line Items] | |||
Software, estimated useful life | 9 years | ||
Leasehold improvements | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 5 years | ||
Minimum | Software | |||
Significant Accounting Policies [Line Items] | |||
Software, estimated useful life | 5 years | ||
Minimum | Buildings and Storage Tanks | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 10 years | ||
Minimum | Machinery, Vehicles and Equipment | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Minimum | Equipment at Customers | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 7 years | ||
Maximum | Software | |||
Significant Accounting Policies [Line Items] | |||
Software, estimated useful life | 10 years | ||
Maximum | Buildings and Storage Tanks | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 39 years | ||
Maximum | Machinery, Vehicles and Equipment | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 25 years | ||
Maximum | Equipment at Customers | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 15 years | ||
Outside the United States of America | |||
Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 100,000 | $ 500,000 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 28, 2020 |
Gro America | ||
Business Acquisition [Line Items] | ||
Asset Acquisition, Consideration Transferred | $ 10 | |
One Subsidiary | ||
Business Acquisition [Line Items] | ||
Consideration transferred | $ 2.7 |
Business Combinations - Schedul
Business Combinations - Schedule Estimated Fair Values of Assets Acquired, Net of Cash Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 49,695 | $ 35,541 | $ 32,997 |
Source Environmental, Inc. | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 1,064 | ||
Inventory | 0 | ||
Other current assets | 6 | ||
Property, plant, & equipment | 174 | ||
Intangible assets | 13,692 | ||
Goodwill | 6,174 | ||
Accounts payable and accruals | (677) | ||
Total purchase price, net of cash acquired | 20,433 | ||
Less: contingent consideration | 0 | ||
Less: to be placed in escrow | 0 | ||
Net cash paid | 20,433 | ||
Raider Environmental Services of Florida, Inc. | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 488 | ||
Inventory | 0 | ||
Other current assets | 162 | ||
Property, plant, & equipment | 4,404 | ||
Intangible assets | 6,056 | ||
Goodwill | 2,835 | ||
Accounts payable and accruals | (218) | ||
Total purchase price, net of cash acquired | 13,727 | ||
Less: contingent consideration | 0 | ||
Less: to be placed in escrow | 0 | ||
Net cash paid | 13,727 | ||
Cole's Environmental | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 0 | ||
Inventory | 73 | ||
Other current assets | 0 | ||
Property, plant, & equipment | 2,455 | ||
Intangible assets | 9,620 | ||
Goodwill | 5,144 | ||
Accounts payable and accruals | 0 | ||
Total purchase price, net of cash acquired | 17,292 | ||
Less: contingent consideration | 5,819 | ||
Less: to be placed in escrow | 100 | ||
Net cash paid | 11,373 | ||
Gro America | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 752 | ||
Inventory | 0 | ||
Other current assets | 0 | ||
Property, plant, & equipment | 1,490 | ||
Intangible assets | 5,300 | ||
Goodwill | 2,541 | ||
Accounts payable and accruals | (78) | ||
Total purchase price, net of cash acquired | 10,005 | ||
Less: contingent consideration | 0 | ||
Less: to be placed in escrow | 0 | ||
Net cash paid | $ 10,005 |
Business Combinations - Sched_2
Business Combinations - Schedule of Unaudited Pro Forma Financial Information (Details) - USD ($) | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||
Total revenues | $ 541,731,000 | $ 431,071,000 |
Net income | $ 66,045,000 | $ 13,406,000 |
Net income per share: basic (in dollars per share) | $ 2.82 | $ 0.58 |
Net income per share: diluted (in dollars per share) | $ 2.80 | $ 0.57 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue by Major Lines (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
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 from Contracts with Customers | $ 490,600 | $ 381,652 | $ 421,764 |
Rental income | 24,734 | 24,299 | 22,663 |
Total revenues | 515,334 | 405,951 | 444,427 |
Parts cleaning, containerized waste, & related products/services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 178,242 | 159,065 | 168,521 |
Vacuum Services & Wastewater Treatment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 64,595 | 55,759 | 60,736 |
Field Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 20,972 | 24,036 | 21,701 |
Antifreeze Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 27,824 | 25,736 | 27,321 |
Environmental Services - Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 1,855 | 1,780 | 1,856 |
Re-refinery Product Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 171,605 | 87,323 | 115,551 |
Oil Collection Services & RFO | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 20,105 | 23,324 | 21,445 |
Oil Filter Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 5,402 | 4,629 | 4,633 |
Environmental Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 293,488 | 266,376 | 280,135 |
Rental income | 24,679 | 24,216 | 22,408 |
Total revenues | 318,167 | 290,592 | 302,543 |
Environmental Services | Parts cleaning, containerized waste, & related products/services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 178,242 | 159,065 | 168,521 |
Environmental Services | Vacuum Services & Wastewater Treatment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 64,595 | 55,759 | 60,736 |
Environmental Services | Field Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 20,972 | 24,036 | 21,701 |
Environmental Services | Antifreeze Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 27,824 | 25,736 | 27,321 |
Environmental Services | Environmental Services - Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 1,855 | 1,780 | 1,856 |
Environmental Services | Re-refinery Product Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 0 | 0 | 0 |
Environmental Services | Oil Collection Services & RFO | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 0 | 0 | 0 |
Environmental Services | Oil Filter Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 0 | 0 | 0 |
Oil Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 197,112 | 115,276 | 141,629 |
Rental income | 55 | 83 | 255 |
Total revenues | 197,167 | 115,359 | 141,884 |
Oil Business | Parts cleaning, containerized waste, & related products/services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 0 | 0 | 0 |
Oil Business | Vacuum Services & Wastewater Treatment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 0 | 0 | 0 |
Oil Business | Field Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 0 | 0 | 0 |
Oil Business | Antifreeze Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 0 | 0 | 0 |
Oil Business | Environmental Services - Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 0 | 0 | 0 |
Oil Business | Re-refinery Product Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 171,605 | 87,323 | 115,551 |
Oil Business | Oil Collection Services & RFO | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 20,105 | 23,324 | 21,445 |
Oil Business | Oil Filter Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | $ 5,402 | $ 4,629 | $ 4,633 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 268 | $ 71 |
Contract liabilities | 2,362 | 2,054 |
Contract liabilities - net | 2,094 | $ 1,983 |
Revenue recognized previously included in contract liabilities | $ 2,000 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 |
Receivables [Abstract] | |||
Trade | $ 59,132 | $ 47,191 | |
Less: allowance for uncollectible accounts | 2,928 | 2,502 | $ 2,221 |
Trade - net | 56,204 | 44,689 | |
Related parties | 5,410 | 3,276 | |
Other | 899 | 514 | |
Total accounts receivable - net | $ 62,513 | $ 48,479 |
Accounts Receivable - Rollforwa
Accounts Receivable - Rollforward of Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of period | $ 2,502 | $ 2,221 | |
Provision for bad debts | 1,930 | 1,919 | $ 1,486 |
Accounts written off, net of recoveries | (1,504) | (1,638) | |
Balance at end of period | $ 2,928 | $ 2,502 | $ 2,221 |
Inventory - Schedule of Carryin
Inventory - Schedule of Carrying Value of Inventory (Details) - USD ($) | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Inventory Disclosure [Abstract] | ||
Solvents and solutions | $ 7,704,000 | $ 6,672,000 |
Used oil and processed oil | 9,361,000 | 6,345,000 |
Machines | 4,995,000 | 5,704,000 |
Drums and supplies | 5,731,000 | 4,423,000 |
Other | 2,246,000 | 2,221,000 |
Total inventory | 30,037,000 | 25,365,000 |
Less: machine refurbishing reserve | 501,000 | 387,000 |
Total inventory - net | 29,536,000 | 24,978,000 |
Inventory impairment charge | $ 200,000 | $ 0 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | $ 253,960 | $ 232,295 |
Less: accumulated depreciation | 87,659 | 79,279 |
Property, plant, and equipment - net | 166,301 | 153,016 |
Equipment at customers | 86,599 | 81,881 |
Less: accumulated depreciation | 62,453 | 58,770 |
Equipment at customers - net | 24,146 | 23,111 |
Machinery, vehicles, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 148,004 | 138,496 |
Buildings and storage tanks | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 75,774 | 72,938 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 5,910 | 5,909 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 8,516 | 6,929 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | $ 15,756 | $ 8,023 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Right of Use Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Right of use assets | Right of use assets | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Right of use assets | Right of use assets | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of lease liabilities | Current portion of lease liabilities | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of lease liabilities | Current portion of lease liabilities | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, net of current portion | Lease liabilities, net of current portion | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, net of current portion | Lease liabilities, net of current portion | |
Finance lease assets - net | $ 19,094 | $ 13,874 | |
Operating lease assets - net | 64,771 | 65,068 | |
Current lease liability - finance | 2,548 | 1,765 | |
Current lease liability - operating | 17,598 | 17,433 | |
Noncurrent lease liability - finance | 17,643 | 12,700 | |
Noncurrent lease liability - operating | 47,398 | 47,594 | |
Depreciation expense | 18,200 | 20,400 | $ 14,600 |
Amortization of right-of-use Assets | $ 2,894 | $ 1,805 | $ 300 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 5,400,000 | $ 4,200,000 | $ 3,600,000 |
Impairment of intangibles | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Goodwill Balances (Details) - USD ($) | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Goodwill [Line Items] | |||
Gross carrying amount beginning balance | $ 49,695,000 | $ 35,541,000 | $ 32,997,000 |
Accumulated impairment loss | 0 | 0 | 0 |
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 35,541,000 | 32,997,000 | |
Acquisitions and other adjustments | 14,154,000 | 2,544,000 | |
Goodwill ending balance | 49,695,000 | 35,541,000 | |
Oil Business | |||
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 0 | 0 | |
Goodwill ending balance | 0 | 0 | |
Environmental Services | |||
Goodwill [Line Items] | |||
Gross carrying amount beginning balance | 49,695,000 | 35,541,000 | 32,997,000 |
Accumulated impairment loss | 0 | 0 | $ 0 |
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 35,541,000 | 32,997,000 | |
Acquisitions and other adjustments | 14,154,000 | 2,544,000 | |
Goodwill ending balance | $ 49,695,000 | $ 35,541,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Software and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 79,291 | $ 47,563 |
Accumulated Amortization | 33,342 | 27,987 |
Net Carrying Amount | 45,949 | 19,576 |
Customer & supplier relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 47,167 | 30,857 |
Accumulated Amortization | 20,725 | 16,934 |
Net Carrying Amount | $ 26,442 | 13,923 |
Software, estimated useful life | 12 years | |
Permits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 13,590 | 690 |
Accumulated Amortization | 879 | 637 |
Net Carrying Amount | $ 12,711 | 53 |
Software, estimated useful life | 16 years | |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 11,721 | 9,592 |
Accumulated Amortization | 6,399 | 5,645 |
Net Carrying Amount | $ 5,322 | 3,947 |
Software, estimated useful life | 9 years | |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,048 | 3,607 |
Accumulated Amortization | 3,340 | 3,212 |
Net Carrying Amount | $ 708 | 395 |
Software, estimated useful life | 5 years | |
Patents, formulae, and licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,769 | 1,769 |
Accumulated Amortization | 906 | 850 |
Net Carrying Amount | $ 863 | 919 |
Software, estimated useful life | 15 years | |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 996 | 1,048 |
Accumulated Amortization | 1,093 | 709 |
Net Carrying Amount | $ (97) | 339 |
Software, estimated useful life | 7 years | |
Above market lease acquired | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ (700) |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Thousands | Jan. 01, 2022USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 6,200 |
2023 | 5,700 |
2024 | 4,000 |
2025 | 3,000 |
2026 | 2,400 |
2027 | $ 2,300 |
Accounts Payable (Details)
Accounts Payable (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 35,613 | $ 29,263 |
Accounts payable - related parties | 566 | 400 |
Total accounts payable | $ 36,179 | $ 29,663 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Narrative (Details) - USD ($) | May 18, 2021 | Mar. 27, 2021 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Mar. 18, 2021 |
Line of Credit Facility [Line Items] | ||||||
Payment of term loan | $ 30,000,000 | $ 0 | $ 0 | |||
Interest expense | 900,000 | 1,600,000 | ||||
Finance lease interest expense | 550,000 | 373,000 | ||||
Amortization of debt issuance costs | 300,000 | |||||
Interest on lease liabilities | 551,000 | 380,000 | ||||
Capitalized interest | 0 | 0 | ||||
Outstanding amount on letters of credit | 5,600,000 | 4,000,000 | ||||
Available for borrowing under the bank credit facility | $ 94,400,000 | $ 61,000,000 | ||||
Weighted average interest rate | 2.04% | 2.90% | 4.10% | |||
Previous Term Loan | Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Payment of term loan | $ 30,000,000 | |||||
New Credit Agreement | Revolving Loan Portion | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowings (up to) | $ 100,000,000 | |||||
New Credit Agreement | Swing Line loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowings (up to) | $ 15,000,000 | |||||
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 | 3.50 | |||||
Credit Agreement | Revolving Loan Portion | Federal funds rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Credit Agreement | Revolving Loan Portion | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Credit Agreement | Revolving Loan Portion | LIBOR | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
Credit Agreement | Revolving Loan Portion | LIBOR | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 2.75% | |||||
Credit Agreement | Revolving Loan Portion | Bank of America's prime rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 0.75% | |||||
Credit Agreement | Revolving Loan Portion | Bank of America's prime rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.75% |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Debt Disclosure [Abstract] | ||
Principal amount | $ 0 | $ 30,000 |
Less: unamortized debt issuance costs | 0 | 344 |
Long-term debt, less current maturities | $ 0 | $ 29,656 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
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 | $ 3 | $ 1.7 | $ 2.6 |
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 | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Related Party Transaction [Line Items] | |||
Revenues | $ 36,398 | $ 19,032 | $ 16,358 |
Expenses | 7,355 | 6,230 | 4,332 |
Self insurance expense - related party | 200 | 200 | 300 |
Other related parties / affiliates | |||
Related Party Transaction [Line Items] | |||
Revenues | 35,321 | 11,676 | 7,653 |
Expenses | 397 | 0 | 486 |
The Heritage Group | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenues | 1,077 | 7,356 | 8,705 |
Expenses | $ 6,958 | $ 6,230 | $ 3,846 |
Heritage-Crystal Clean Inc. | The Heritage Group | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 32.30% | ||
Heritage-Crystal Clean Inc. | The Fehsenfeld Family Trusts | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 6.60% | ||
Heritage-Crystal Clean Inc. | Chairman Fred Fehsenfeld, Jr. | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 4.50% |
Segment Information - Operating
Segment Information - Operating Segment Results (Details) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022USD ($)segment | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Revenues | |||
Revenues | $ 490,600 | $ 381,652 | $ 421,764 |
Rental income | 24,734 | 24,299 | 22,663 |
Total revenues | 515,334 | 405,951 | 444,427 |
Operating expenses | |||
Operating costs | 352,796 | 321,648 | 349,603 |
Operating depreciation and amortization | 17,998 | 20,221 | 14,424 |
Profit before corporate selling, general, and administrative expenses | 144,540 | 64,082 | 80,400 |
Selling, general, and administrative expenses | 56,987 | 47,091 | 50,224 |
Depreciation and amortization from SG&A | 5,544 | 4,342 | 3,825 |
Total selling, general, and administrative expenses | 62,531 | 51,433 | 54,049 |
Other expense - net | (988) | (5,365) | 13,490 |
Operating income | 82,997 | 18,014 | 12,861 |
Interest expense - net | 933 | 1,252 | 869 |
Income before income taxes | 82,064 | 16,762 | 11,992 |
Corporate and Eliminations | |||
Revenues | |||
Rental income | 0 | 0 | 0 |
Total revenues | 0 | 0 | 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 | 56,987 | 47,091 | 50,224 |
Depreciation and amortization from SG&A | 5,544 | 4,342 | 3,825 |
Total selling, general, and administrative expenses | 62,531 | 51,433 | 54,049 |
Other expense - net | (988) | (5,365) | 13,490 |
Interest expense - net | 933 | 1,252 | 869 |
Environmental Services | |||
Revenues | |||
Revenues | 293,488 | 266,376 | 280,135 |
Rental income | 24,679 | 24,216 | 22,408 |
Total revenues | 318,167 | 290,592 | 302,543 |
Environmental Services | Operating Segments | |||
Revenues | |||
Rental income | 24,679 | 24,216 | 22,408 |
Total revenues | 318,167 | 290,592 | 302,543 |
Operating expenses | |||
Operating costs | 232,837 | 215,602 | 219,040 |
Operating depreciation and amortization | 10,112 | 10,863 | 7,768 |
Profit before corporate selling, general, and administrative expenses | 75,218 | 64,127 | 75,735 |
Oil Business | |||
Revenues | |||
Revenues | 197,112 | 115,276 | 141,629 |
Rental income | 55 | 83 | 255 |
Total revenues | 197,167 | 115,359 | 141,884 |
Oil Business | Operating Segments | |||
Revenues | |||
Rental income | 55 | 83 | 255 |
Total revenues | 197,167 | 115,359 | 141,884 |
Operating expenses | |||
Operating costs | 119,959 | 106,046 | 130,563 |
Operating depreciation and amortization | 7,886 | 9,358 | 6,656 |
Profit before corporate selling, general, and administrative expenses | 69,322 | (45) | 4,665 |
Service revenues | |||
Revenues | |||
Revenues | 262,863 | 245,474 | 250,491 |
Service revenues | Corporate and Eliminations | |||
Revenues | |||
Revenues | 0 | 0 | 0 |
Service revenues | Environmental Services | Operating Segments | |||
Revenues | |||
Revenues | 248,121 | 224,123 | 236,530 |
Service revenues | Oil Business | Operating Segments | |||
Revenues | |||
Revenues | 14,742 | 21,351 | 13,961 |
Product revenues | |||
Revenues | |||
Revenues | 227,737 | 136,178 | 171,273 |
Product revenues | Corporate and Eliminations | |||
Revenues | |||
Revenues | 0 | 0 | 0 |
Product revenues | Environmental Services | Operating Segments | |||
Revenues | |||
Revenues | 45,367 | 42,253 | 43,605 |
Product revenues | Oil Business | Operating Segments | |||
Revenues | |||
Revenues | $ 182,370 | $ 93,925 | $ 127,668 |
Segment Information - Assets by
Segment Information - Assets by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 526,864 | $ 461,669 | |
Capital Expenditures | 24,068 | 23,738 | $ 31,293 |
Operating Segments | Environmental Services | |||
Segment Reporting Information [Line Items] | |||
Assets | 281,333 | 217,297 | |
Capital Expenditures | 10,825 | 13,161 | 18,499 |
Operating Segments | Oil Business | |||
Segment Reporting Information [Line Items] | |||
Assets | 171,188 | 160,165 | |
Capital Expenditures | 12,049 | 9,744 | 12,670 |
Unallocated Corporate Assets | |||
Segment Reporting Information [Line Items] | |||
Assets | 74,343 | 84,207 | |
Capital Expenditures | $ 1,194 | $ 833 | $ 124 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 |
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 5 years | |
Remaining amount committed | $ 27.4 | $ 20 |
Remaining amount committed | 27.4 | 20 |
Loss contingency accrual | $ (3.2) | $ (3.9) |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 month | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 11 years |
Commitments and Contingencies_2
Commitments and Contingencies - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Finance lease cost: | |||
Finance lease depreciation expense | $ 2,894 | $ 1,805 | $ 300 |
Interest on lease liabilities | 551 | 380 | |
Total finance lease cost | 3,445 | 2,185 | |
Operating lease cost | 22,761 | 25,138 | |
Short-term lease cost | 5,971 | 5,923 | |
Variable lease cost | 3,018 | 3,597 | |
Total lease cost | 35,195 | 36,843 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from financing leases | 550 | 373 | |
Operating cash flows from operating leases | 22,500 | 24,646 | |
Repayment of principal on finance leases | 2,222 | 1,343 | $ 0 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 8,111 | 8,846 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 16,299 | $ 2,921 | |
Weighted-average remaining lease term (years) | |||
Finance leases | 5 years 7 months 6 days | 6 years 1 month 6 days | |
Operating leases | 4 years 10 months 24 days | 4 years 7 months 6 days | |
Weighted-average discount rate | |||
Finance leases | 3.20% | 3.20% | |
Operating leases | 5.00% | 5.70% |
Commitments and Contingencies_3
Commitments and Contingencies - Future Annual Minimum Lease Payment Commitments (Details) $ in Thousands | Jan. 01, 2022USD ($) |
Operating Leases | |
2022 | $ 20,653 |
2023 | 16,777 |
2024 | 12,072 |
2025 | 8,201 |
2026 | 4,794 |
2027 and thereafter | 10,606 |
Total minimum lease payments | 73,103 |
Less: imputed interest | 8,271 |
Lease liability | 64,832 |
Finance Leases | |
2022 | 3,308 |
2023 | 3,308 |
2024 | 3,308 |
2025 | 3,251 |
2026 | 4,199 |
2027 and thereafter | 5,173 |
Total minimum lease payments | 22,547 |
Less: imputed interest | 2,192 |
Lease liability | 20,355 |
2022 | 23,961 |
2023 | 20,085 |
2024 | 15,380 |
2025 | 11,452 |
2026 | 8,993 |
2027 and thereafter | 15,779 |
Total minimum lease payments | 95,650 |
Less: imputed interest | 10,463 |
Lease liability | $ 85,187 |
Commitments and Contingencies_4
Commitments and Contingencies - Rental Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Lessor, Lease, Description [Line Items] | |||
Total rental income | $ 24,734 | $ 24,299 | $ 22,663 |
Environmental Services | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 24,679 | 24,216 | 22,408 |
Oil Business | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 55 | 83 | $ 255 |
Parts Cleaning | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 24,572 | 24,216 | |
Parts Cleaning | Environmental Services | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 24,572 | 24,216 | |
Parts Cleaning | Oil Business | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 0 | 0 | |
Railcars | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 0 | 16 | |
Railcars | Environmental Services | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 0 | 0 | |
Railcars | Oil Business | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 0 | 16 | |
Property | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 162 | 67 | |
Property | Environmental Services | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 107 | 0 | |
Property | Oil Business | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | $ 55 | $ 67 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, percent | 25.80% | 28.80% |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 579 | $ 519 |
Foreign Net Operating Loss Carryforwards | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | 600 | 500 |
Uncertain Tax Positions | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 2,200 | $ 2,800 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Current: | |||
Federal | $ 7,984 | $ (104) | $ (79) |
State | 3,224 | 264 | 681 |
Total current | 11,208 | 160 | 602 |
Deferred: | |||
Federal | 8,505 | 3,492 | 2,328 |
State | 1,403 | 1,173 | 313 |
Total deferred | 9,908 | 4,665 | 2,641 |
Provision for income taxes | $ 21,116 | $ 4,825 | $ 3,243 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax expense at statutory federal rate | $ 17,201 | $ 3,520 | $ 2,518 |
State and local tax, net of federal expense | 3,705 | 1,085 | 785 |
Windfalls from share-based compensation | (366) | (141) | (369) |
Valuation allowance | 73 | 196 | 117 |
Other | 503 | 165 | 192 |
Total income tax provision | $ 21,116 | $ 4,825 | $ 3,243 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 579 | $ 6,555 |
Stock compensation | 2,739 | 2,201 |
Tax intangible assets | 1,118 | 1,222 |
Reserves and accruals | 3,480 | 3,694 |
Income tax credits | 0 | 734 |
Allowance for uncollectible accounts | 786 | 682 |
Total deferred tax asset | 8,702 | 15,088 |
Less: valuation allowance | 579 | 519 |
Net deferred tax asset | 8,123 | 14,569 |
Deferred tax liabilities: | ||
Prepaids | (1,063) | (762) |
Depreciation and amortization | (38,186) | (35,025) |
Total deferred tax liability | (39,249) | (35,787) |
Net deferred tax liability | $ (31,126) | $ (21,218) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 2,799 | $ 2,678 |
Additions based on current year's tax positions | 31 | 19 |
Net changes based on prior year's tax positions | 102 | |
Net changes based on prior year's tax positions | (604) | |
Ending balance | $ 2,226 | $ 2,799 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 01, 2021 | Apr. 13, 2018 | Feb. 28, 2017 | Sep. 11, 2021 | Jan. 01, 2022 | Jan. 02, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 562,760 | 56,126 | ||||
Forfeited (in shares) | 370,405 | 65,588 | ||||
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) | $ 21.77 | |||||
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 | |||||
Fair value, average closing price period | 3 days | |||||
Restricted Stock | Members of Management | Special Incentive Program | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 350,000 | |||||
Forfeited (in shares) | 125,417 | |||||
Number of shares available for grant (in shares) | 393,021 | |||||
Restricted Stock | Members of Management | Special Incentive Program | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares expected to vest on satisfaction of certain conditions (in shares) | 393,021 | |||||
Restricted Stock | Mr. Recatto's | Vesting Based on Weighted Average Closing Price | ||||||
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 | Vesting Satisfaction of Service Conditions | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 25.00% | |||||
Time Based Restricted Stock | Mr. Recatto's | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 90 days | |||||
Granted (in shares) | 500,000 | |||||
Vesting threshold (in dollars per share) | $ 5 | |||||
Compensation expense | $ 1,600 | $ 500 | ||||
Unrecognized expense | $ 3,900 | |||||
Risk free rate | 0.29% | |||||
Expected dividend yield | 0.00% | |||||
Expected volatility rate | 53.07% | |||||
Grant of restricted stock | $ 500 | |||||
Shares vested upon achievement of share price threshold (in shares) | 0 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock Compensation/Awards (Details) - Restricted Stock - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2021 | Feb. 28, 2021 | Apr. 30, 2020 | Feb. 29, 2020 | May 31, 2019 | Apr. 30, 2018 | Feb. 28, 2018 | Feb. 28, 2017 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
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 | $ 0 | $ 470 | $ 723 | ||||||||
Unrecognized expense | 0 | 37 | |||||||||
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 | 0 | 566 | 562 | ||||||||
Unrecognized expense | 0 | 0 | |||||||||
April, 2018 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted shares granted (in shares) | 350,000 | ||||||||||
Compensation Expense | 1,540 | 970 | 1,120 | ||||||||
Unrecognized expense | 380 | 1,651 | |||||||||
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 | 36 | 203 | 202 | ||||||||
Unrecognized expense | 0 | 254 | |||||||||
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 | 0 | 0 | 285 | ||||||||
Unrecognized expense | 0 | 0 | |||||||||
February, 2020 | Members of Management | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted shares granted (in shares) | 41,138 | ||||||||||
Compensation Expense | 101 | 43 | 681 | ||||||||
Unrecognized expense | 87 | 331 | |||||||||
April, 2020 | Board of Directors | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted shares granted (in shares) | 14,988 | ||||||||||
Compensation Expense | 0 | 285 | 0 | ||||||||
Unrecognized expense | 0 | 0 | |||||||||
February, 2021 | Chief Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted shares granted (in shares) | 500,000 | ||||||||||
Compensation Expense | 1,619 | 0 | 0 | ||||||||
Unrecognized expense | 3,881 | 0 | |||||||||
February, 2021 | Members of Management | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted shares granted (in shares) | 35,898 | ||||||||||
Compensation Expense | 183 | 0 | 0 | ||||||||
Unrecognized expense | 448 | 0 | |||||||||
April, 2021 | Board of Directors | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted shares granted (in shares) | 11,487 | ||||||||||
Compensation Expense | 332 | 0 | $ 0 | ||||||||
Unrecognized expense | $ 0 | $ 0 |
Share-based Compensation - Re_2
Share-based Compensation - Restricted Stock Vesting Schedule by Percentage (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2017 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested (in shares) | 115,006 | 128,483 | |
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% | ||
Vested (in shares) | 125,000 | ||
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% | ||
Vested (in shares) | 250,000 | ||
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% | ||
Vested (in shares) | 375,000 | ||
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% | ||
Vested (in shares) | 500,000 |
Share-based Compensation - Re_3
Share-based Compensation - Restricted Stock Rollforward (Details) - $ / shares | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Number of Shares | ||
Nonvested shares outstanding, beginning (in shares) | 646,634 | 784,579 |
Granted (in shares) | 562,760 | 56,126 |
Vested (in shares) | (115,006) | (128,483) |
Forfeited (in shares) | (370,405) | (65,588) |
Nonvested shares outstanding, ending (in shares) | 723,983 | 646,634 |
Weighted Average Grant-Date Fair Value Per Share | ||
Nonvested shares outstanding, beginning (in dollars per share) | $ 18.28 | $ 18.39 |
Granted (in dollars per share) | 22.45 | 25.72 |
Vested (in dollars per share) | 20.58 | 20.34 |
Forfeited (in dollars per share) | 15.52 | 21.92 |
Nonvested shares outstanding, ending (in dollars per share) | $ 21.83 | $ 18.28 |
Share-based Compensation - Empl
Share-based Compensation - Employee Stock Purchase Plan (Details) - ESPP - Employee Stock | 12 Months Ended |
Jan. 01, 2022USD ($)$ / 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% |
Offering period (in months) | 3 months |
Employee payroll deductions, percent | 10.00% |
Employee maximum annual contribution | $ | $ 25,000 |
Employee stock purchase plan, shares available (in shares) | 60,345 |
Shares purchased during the year (in shares) | 19,289 |
Employee stock purchase plan, weighted average fair value per share (in dollars per share) | $ / shares | $ 23.99 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |||
Net income | $ 60,948 | $ 11,937 | $ 8,749 |
Less: income attributable to noncontrolling interest | 0 | 0 | 386 |
Income attributable to Heritage-Crystal Clean, Inc. common stockholders | $ 60,948 | $ 11,937 | $ 8,363 |
Weighted average basic shares outstanding (in shares) | 23,419 | 23,286 | 23,160 |
Dilutive shares for share–based compensation plans (in shares) | 138 | 167 | 238 |
Weighted average diluted shares outstanding (in shares) | 23,557 | 23,453 | 23,398 |
Net income per share: basic (in dollars per share) | $ 2.60 | $ 0.51 | $ 0.36 |
Net income per share: diluted (in dollars per share) | $ 2.59 | $ 0.51 | $ 0.36 |
Other (Income) Expense - Net (D
Other (Income) Expense - Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Loss Contingencies [Line Items] | |||
Other (income) expense - net | $ 988 | $ 5,365 | $ (13,490) |
Reversal of settlement claims | $ 0 | 6,502 | $ (11,000) |
Site closure costs | |||
Loss Contingencies [Line Items] | |||
Other (income) expense - net | $ (1,400) |