Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 24, 2023 | Jun. 17, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 2000 Center Drive | ||
Entity Address, Address Line Two | Suite East C300 | ||
Entity Address, City or Town | Hoffman Estates | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60192 | ||
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 | $ 385.6 | ||
Entity Common Stock, Shares Outstanding | 24,346,431 | ||
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 June 29, 2023, to be filed within 120 days of the registrant’s fiscal year ended December 31, 2022. | ||
Entity Central Index Key | 0001403431 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 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 | Dec. 31, 2022 | Jan. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 22,053 | $ 56,269 |
Accounts receivable - net | 114,408 | 62,513 |
Inventory - net | 40,727 | 29,536 |
Assets held for sale | 1,125 | 1,125 |
Other current assets | 12,989 | 6,773 |
Total current assets | 191,302 | 156,216 |
Property, plant and equipment - net | 222,942 | 166,301 |
Right of use assets | 123,742 | 83,865 |
Equipment at customers - net | 26,465 | 24,146 |
Software and intangible assets - net | 102,335 | 45,949 |
Goodwill | 112,236 | 49,695 |
Investments at fair value | 15,219 | 0 |
Other Assets | 0 | 692 |
Total assets | 794,241 | 526,864 |
Current liabilities: | ||
Accounts payable | 55,087 | 36,179 |
Current portion of lease liabilities | 27,277 | 20,146 |
Contract liabilities - net | 2,525 | 2,094 |
Accrued salaries, wages, and benefits | 12,443 | 8,980 |
Taxes payable | 6,037 | 8,474 |
Other current liabilities | 12,382 | 9,476 |
Total current liabilities | 115,751 | 85,349 |
Lease liabilities, net of current portion | 100,738 | 65,041 |
Other long-term liabilities | 986 | 473 |
Long-term debt | 89,383 | 0 |
Deferred income taxes | 57,155 | 31,126 |
Contingent consideration | 0 | 2,819 |
Total liabilities | 364,013 | 184,808 |
Commitments and contingencies (Note 14) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock - 26,000,000 shares authorized at 0.01 par value, 23,593,163 and 23,473,931 shares issued and outstanding at December 31, 2022 and January 1, 2022, respectively | 236 | 235 |
Additional paid-in capital | 208,533 | 204,920 |
Retained earnings | 221,826 | 137,067 |
Accumulated other comprehensive (loss) | (367) | (166) |
Total stockholders' equity | 430,228 | 342,056 |
Total liabilities and stockholders' equity | $ 794,241 | $ 526,864 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Jan. 01, 2022 |
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) | 23,593,163 | 23,473,931 |
Common stock, shares outstanding (in shares) | 23,593,163 | 23,473,931 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Revenues | |||
Revenues | $ 681,714 | $ 490,600 | $ 381,652 |
Rental income | 27,617 | 24,734 | 24,299 |
Total revenues | 709,331 | 515,334 | 405,951 |
Operating expenses | |||
Operating costs | 496,433 | 352,796 | 321,648 |
Selling, general, and administrative expenses | 70,781 | 56,987 | 47,091 |
Depreciation and amortization | 35,727 | 23,542 | 24,563 |
Other (income) - net | (12,011) | (988) | (5,365) |
Operating income | 118,401 | 82,997 | 18,014 |
Interest expense – net | 3,232 | 933 | 1,252 |
Income before income taxes | 115,169 | 82,064 | 16,762 |
Provision for income taxes | 30,410 | 21,116 | 4,825 |
Net income | $ 84,759 | $ 60,948 | $ 11,937 |
Net income per share: basic (in dollars per share) | $ 3.60 | $ 2.60 | $ 0.51 |
Net income per share: diluted (in dollars per share) | $ 3.58 | $ 2.59 | $ 0.51 |
Number of weighted average shares outstanding: basic (in shares) | 23,544 | 23,419 | 23,286 |
Number of weighted average shares outstanding: diluted (in shares) | 23,679 | 23,557 | 23,453 |
Service revenues | |||
Revenues | |||
Revenues | $ 378,099 | $ 262,863 | $ 245,474 |
Product revenues | |||
Revenues | |||
Revenues | $ 303,615 | $ 227,737 | $ 136,178 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Statement of Other Comprehensive Income [Abstract] | |||
Net income | $ 84,759 | $ 60,948 | $ 11,937 |
Currency translation adjustment | (201) | (166) | 0 |
Total other comprehensive loss | (201) | (166) | 0 |
Comprehensive income | $ 84,558 | $ 60,782 | $ 11,937 |
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. 28, 2019 | 23,191,498 | |||||
Beginning 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 | ||||
Currency translation adjustment | 0 | |||||
Non-controlling interest acquisition | (2,678) | (2,678) | ||||
Tax effect of non-controlling interest acquisition | 604 | 604 | ||||
Distribution | (634) | (634) | ||||
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 | |||||
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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 84,759 | 84,759 | ||||
Currency translation adjustment | (201) | (201) | ||||
Issuance of common stock – ESPP (in shares) | 19,062 | |||||
Issuance of common stock – ESPP | 535 | 535 | ||||
Share-based compensation (in shares) | 107,772 | |||||
Share-based compensation | 4,481 | $ 1 | 4,480 | |||
Share repurchases to satisfy tax withholding obligations (in shares) | (7,602) | |||||
Share repurchases to satisfy tax withholding obligations | $ (1,402) | (1,402) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 23,593,163 | 23,593,163 | ||||
Ending Balance at Dec. 31, 2022 | $ 430,228 | $ 236 | $ 208,533 | $ 221,826 | $ 0 | $ (367) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Cash flows from Operating Activities: | |||
Net income | $ 84,759 | $ 60,948 | $ 11,937 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation and amortization | 35,727 | 23,542 | 24,563 |
Provision (reversal) for class action settlement | 1,163 | 0 | (6,502) |
Impairment on assets held for sale | 0 | 0 | 1,446 |
Uncollectible provision | 2,269 | 1,930 | 1,919 |
Share-based compensation | 5,015 | 5,702 | 3,197 |
Deferred taxes | 9,715 | 9,908 | 4,665 |
Gain on fair value investments | (12,219) | 0 | 0 |
Other, net | 1,001 | (299) | (406) |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | (28,783) | (14,411) | 5,941 |
(Increase) decrease in inventory | (11,191) | (4,485) | 4,395 |
(Increase) decrease in prepaid and other current assets | (4,183) | 1,396 | (901) |
Increase (decrease) in accounts payable | 11,622 | 5,486 | (6,574) |
(Decrease) increase in accrued liabilities | (2,296) | 1,330 | 1,089 |
Cash provided by operating activities | 92,599 | 91,047 | 44,769 |
Cash flows from Investing Activities: | |||
Capital expenditures | (47,691) | (24,087) | (23,713) |
Proceeds from the disposal of assets | 319 | 1,766 | 1,241 |
Investment in Retriev | (3,000) | 0 | 0 |
Business acquisitions, net of cash acquired | (156,882) | (45,533) | (10,005) |
Cash used in investing activities | (207,254) | (67,854) | (32,477) |
Cash flows from Financing Activities: | |||
Payment of term loan | 0 | (30,000) | 0 |
Net change in line of credit | 90,000 | 0 | 0 |
Debt issuance cost | (100) | (822) | 0 |
Repayment of principal on finance leases | (4,694) | (2,222) | (1,343) |
Proceeds from the issuance of common stock | 535 | 487 | 497 |
Share repurchases to satisfy tax withholding obligations | (1,402) | (1,942) | (1,054) |
Payments of deferred and contingent consideration | (3,900) | 0 | (199) |
Distributions to and acquisition of noncontrolling interest | 0 | 0 | (3,312) |
Cash used in financing activities | 80,439 | (34,499) | (5,411) |
Net (decrease) increase in cash and cash equivalents | (34,216) | (11,306) | 6,881 |
Cash and cash equivalents, beginning of period | 56,269 | 67,575 | 60,694 |
Cash and cash equivalents, end of period | 22,053 | 56,269 | 67,575 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 23,082 | 9,900 | 321 |
Cash paid for interest | 1,092 | 200 | 941 |
Supplemental disclosure of non-cash information: | |||
Payables for construction in progress | $ 2,758 | $ 688 | $ 744 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 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 bulk and containerized waste management, used oil collection, re-refining and lubricating base oil product sales, wastewater vacuum services, antifreeze collection, recycling and product sales, industrial and field services, and emergency and spill response services. 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 at which we consolidate and solidify various solid, liquid, and semi-solid non-hazardous waste streams prior to final disposal as well as treat and discharge industrial wastewater. We also operate five antifreeze recycling facilities which use waste antifreeze as a feedstock to eventually produce 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 or receivables 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 2022" represents the 52-week period ended December 31, 2022. "Fiscal 2021" represents the 52-week period ended January 1, 2022. "Fiscal 2020" represents the 53-week period ended January 2, 2021. 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, industrial and field services, emergency and spill response 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 |
Dec. 31, 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 $0.5 million and $0.1 million of cash on deposit outside the United States of America as of December 31, 2022 and January 1, 2022, 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 $26.7 million and $60.9 million at December 31, 2022 and January 1, 2022, 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 2022, the Company did not incur inventory impairment charges. In fiscal year 2021 the Company recorded $0.2 million of inventory impairment charges. 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 allocation for the one acquisition that was completed in fiscal 2022 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 2022 or fiscal 2021. 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 2022 or 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 2022, 2021, and 2020 were $0.3 million, $0.2 million, and $0.3 million, respectively. Advertising Costs Advertising costs are expensed as incurred. Advertising expense was $0.6 million, $0.4 million, and $0.4 million for fiscal 2022, 2021, and 2020, 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 December 31, 2022 and January 1, 2022, 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 2022, 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 December 31, 2022 and January 1, 2022, the Company's liability for its self-insured benefits was $2.2 million and $1.6 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 2022, 2021, and 2020 were $20.7 million, $15.9 million, and $17.6 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 December 31, 2022 and January 1, 2022, the Company reported goodwill only in its Environmental Services segment. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS On August 3, 2022, Heritage-Crystal Clean, LLC, completed its acquisition of all of the issued and outstanding shares of the capital stock of Patriot Environmental Services, Inc. ("Patriot"), a leading provider of environmental services across the Western United States specializing in industrial and field services, emergency response, OSRO spill response and a wide variety of waste services. Total consideration for the acquisition was approximately $156.9 million in cash subject to various adjustments such as a working capital adjustment and seller indemnification obligations. To date, there have been no adjustments to the purchase price. Goodwill recognized from the acquisition of Patriot, represents the excess of the estimated purchase consideration transferred over the estimated fair value of the assets acquired and liabilities assumed. The Company has not yet finalized the purchase price allocation for the acquisition as of December 31, 2022. Factors leading to goodwill being recognized are the Company’s expectation of synergies from combining operations of Patriot, 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 Patriot were approximately $1.2 million. The results of Patriot are consolidated into the Company’s Environmental Services segment from the date of acquisition. 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, the Company 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. The following table summarizes the estimated fair values of the assets acquired, net of cash acquired, related to each acquisition as of December 31, 2022: As of December 31, 2022 (thousands) Patriot Environmental Services, Inc. (1) Source Environmental, Inc. (2) Raider Environmental Services of Florida, Inc. (2) Cole's Environmental (2) Accounts receivable $ 25,381 $ 1,064 $ 488 $ — Inventory — — — 73 Other current assets 2,034 6 162 — Property, plant, & equipment 33,968 174 4,404 2,455 Intangible assets 62,200 13,692 6,056 9,620 Goodwill 62,541 6,174 2,835 5,144 Accounts payable and accruals (12,929) (677) (218) — Deferred tax liabilities (16,313) — — — Total purchase price, net of cash acquired $ 156,882 $ 20,433 $ 13,727 $ 17,292 Less: contingent consideration — — — 2,949 Less: to be placed in escrow 2,780 — — — Net cash paid $ 154,102 $ 20,433 $ 13,727 $ 14,343 (1) The Company is still in the process of finalizing the purchase price allocation for the acquisition and therefore balances are preliminary. (2) The above purchase price allocations are final. 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 Patriot Environmental Services, Inc., acquisitions had occurred January 1, 2022. 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) December 31, 2022 January 1, 2022 Total revenues $ 782,105 $ 704,710 Net income $ 85,536 $ 72,435 Net income per share: basic $ 3.63 $ 3.09 Net income per share: diluted $ 3.61 $ 3.07 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 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 $ 221,051 $ — $ 221,051 $ 178,242 $ — $ 178,242 $ 159,065 $ — $ 159,065 Vacuum Services & Wastewater Treatment 86,747 — 86,747 64,595 — 64,595 55,759 — 55,759 Industrial & Field Services 78,725 — 78,725 20,972 — 20,972 24,036 — 24,036 Antifreeze Business 32,828 — 32,828 27,824 — 27,824 25,736 — 25,736 Environmental Services - Other 2,110 — 2,110 1,855 — 1,855 1,780 — 1,780 Re-refinery Product Sales — 232,361 232,361 — 171,605 171,605 — 87,323 87,323 Oil Collection Services & RFO — 22,558 22,558 — 20,105 20,105 — 23,324 23,324 Oil Filter Business — 5,334 5,334 — 5,402 5,402 — 4,629 4,629 Revenues from Contracts with Customers 421,461 260,253 681,714 293,488 197,112 490,600 266,376 115,276 381,652 Rental income 27,561 56 27,617 24,679 55 24,734 24,216 83 24,299 Total Revenues $ 449,022 $ 260,309 $ 709,331 $ 318,167 $ 197,167 $ 515,334 $ 290,592 $ 115,359 $ 405,951 The following table provides information about contract assets and contract liabilities from contracts with customers: (thousands) December 31, 2022 January 1, 2022 Contract assets $ 133 $ 268 Contract liabilities 2,658 2,362 Contract liabilities - net $ 2,525 $ 2,094 During the fiscal year ended December 31, 2022, the Company recognized $2.1 million of revenue that was included in the contract liabilities balance as of January 1, 2022. The Company has no assets recognized from costs to obtain or fulfill a contract with a customer. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 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) December 31, January 1, Trade $ 111,118 $ 59,132 Less: allowance for uncollectible accounts 4,496 2,928 Trade - net 106,622 56,204 Related parties 6,777 5,410 Other 1,009 899 Total accounts receivable - net $ 114,408 $ 62,513 The following table provides the changes in the Company’s allowance for uncollectible accounts for the fiscal year ended December 31, 2022 and the fiscal year ended January 1, 2022. (thousands) December 31, January 1, Balance at beginning of period $ 2,928 $ 2,502 Provision for uncollectible accounts 2,269 1,930 Accounts written off, net of recoveries (701) (1,504) Balance at end of period $ 4,496 $ 2,928 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 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) December 31, January 1, Solvents and solutions $ 10,792 $ 7,704 Used oil and processed oil 14,904 9,361 Machines 6,329 4,995 Drums and supplies 6,476 5,731 Other 2,666 2,246 Total inventory 41,167 30,037 Less: machine refurbishing reserve 440 501 Total inventory - net $ 40,727 $ 29,536 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 2022, we recorded no inventory impairment charges. In fiscal 2021, we recorded $0.2 million of inventory impairment charges. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment consisted of the following: (thousands) December 31, January 1, Machinery, vehicles, and equipment $ 193,803 $ 148,004 Buildings and storage tanks 95,638 75,774 Land 6,785 5,910 Leasehold improvements 9,984 8,516 Construction in progress 20,750 15,756 Total property, plant, and equipment 326,960 253,960 Less: accumulated depreciation 104,018 87,659 Property, plant, and equipment - net $ 222,942 $ 166,301 (thousands) December 31, January 1, Equipment at customers $ 93,181 $ 86,599 Less: accumulated depreciation 66,716 62,453 Equipment at customers - net $ 26,465 $ 24,146 Right of use assets and liabilities consist of the following: (thousands) Classification December 31, January 1, Finance lease assets - net Right of use assets $ 41,711 $ 19,094 Operating lease assets - net Right of use assets 81,028 64,771 Current lease liability - finance Current liabilities 6,891 2,548 Current lease liability - operating Current liabilities 20,215 17,598 Noncurrent lease liability - finance Long-term liabilities 37,221 17,643 Noncurrent lease liability - operating Long-term liabilities 62,685 47,398 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 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 December 31, 2022, 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 January 2, 2021, January 1, 2022, and December 31, 2022: (thousands) Environmental Services Total 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 Acquisitions $ 62,541 $ 62,541 Goodwill at December 31, 2022 Gross carrying amount 112,236 112,236 Accumulated impairment loss — — Net book value at December 31, 2022 $ 112,236 $ 112,236 Following is a summary of software and other intangible assets: December 31, 2022 January 1, 2022 (thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships $ 62,268 $ 25,762 $ 36,506 $ 47,167 $ 20,725 $ 26,442 Permits 60,690 2,697 $ 57,993 13,590 879 $ 12,711 Software 13,643 7,378 $ 6,265 11,721 6,399 $ 5,322 Non-compete agreements 4,421 3,665 $ 756 4,048 3,340 $ 708 Patents, formulae, and licenses 1,769 971 $ 798 1,769 906 $ 863 Other* 597 580 $ 17 996 1,093 $ (97) Total software and intangible assets $ 143,388 $ 41,053 $ 102,335 $ 79,291 $ 33,342 $ 45,949 *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 $7.7 million, $5.4 million, and $4.2 million, for fiscal 2022, 2021, and 2020, respectively. The weighted average useful lives of software and other intangibles are as follows: Intangible asset Weighted average useful life (years) Permits 17 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) 2023 $10.1 2024 8.4 2025 7.4 2026 6.9 2027 6.8 2028 6.7 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 2022, 2021, or 2020. |
Accounts Payable
Accounts Payable | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable | ACCOUNTS PAYABLE Accounts payable consisted of the following: (thousands) December 31, January 1, Accounts payable $ 54,935 $ 35,613 Accounts payable - related parties 152 566 Total accounts payable $ 55,087 $ 36,179 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | DEBT AND FINANCING ARRANGEMENTS Bank Credit Facility On March 18, 2021, Heritage-Crystal Clean, LLC, (the “Borrower”), 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 2021, 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. The Agreement also provided for up to an additional $50.0 million of borrowings using an accordion feature upon approval of the lenders. On August 3, 2022, the Company entered into an Amendment (Amendment No. 1 to the Agreement "the Amendment") which increased the amount of borrowing under the revolving credit line to $150.0 million. The Company then utilized the credit line to finance $115.0 million of the acquisition of Patriot Environmental Inc. (see Note 3). The Amendment now provides for borrowings of up to $150.0 million, in the form of a revolving facility. The Amendment also provides for up to an additional $50.0 million of borrowings under an accordion feature upon approval of the lenders. Outstanding loan amounts under this Amendment mature in 2026. Loans made under the Credit Agreement may be Base Rate Loans or Secured Overnight Financing Rate ("SOFR") 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 SOFR rate plus 1%, or (c) Bank of America's prime rate, plus (ii) a variable margin of 1.00%. SOFR rate loans have an interest rate equal to (i) the SOFR rate plus (ii) a variable margin of between 1.50% and 2.25% 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. The Company incurred an additional $0.1 million of debt issuance costs related to the amended credit agreement and drawdown. The Company's weighted average interest rate for all debt for the fiscal year ended December 31, 2022 was 4.7%. 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. Long-term debt at December 31, 2022 and January 1, 2022 consisted of the following: (thousands) December 31, 2022 January 1, 2022 Long-term debt $ 90,000 $ — Less: unamortized debt issuance costs 617 — Long-term debt $ 89,383 $ — In fiscal 2022, the Company recorded interest expense of $3.2 million with respect to our revolving loan, and related amortization of debt issuance costs, along with $1.1 million of finance lease interest expense. In fiscal 2021, the Company recorded interest expense of $0.9 million, with respect to our credit line, and related amortization of debt issuance costs, along with $0.6 million of finance lease interest expense. No interest was capitalized in fiscal years 2022 or 2021. As of December 31, 2022 and January 1, 2022, the Company was in compliance with all covenants under the Credit Agreement. As of December 31, 2022 and January 1, 2022, the Company had $6.0 million and $5.6 million of standby letters of |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 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 2021 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 2021. The Company's matching contribution under this plan was $3.9 million, $3.0 million, and $1.7 million in fiscal 2022, 2021, and 2020, respectively. |
Related Party and Affiliate Tra
Related Party and Affiliate Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party and Affiliate Transactions | RELATED PARTY AND AFFILIATE TRANSACTIONS As of December 31, 2022, the Heritage Group beneficially owned 20.6% of the Company's common stock. The Fehsenfeld Family Trusts, which are related to The Heritage Group owned 8.0% of the Company's common stock, and Fred Fehsenfeld, Jr., the Chairman of the Board and an affiliate of the Heritage Group, beneficially owned 2.7% of the Company's common stock. Companies affiliated with The Heritage Group are listed as affiliates. During fiscal 2022, 2021, and 2020, the Company had transactions with The Heritage Group affiliates and other related parties. The following table sets forth related-party transactions: Fiscal 2022 Fiscal 2021 Fiscal 2020 (thousands) Revenues Expenses Revenues Expenses Revenues Expenses Heritage Group affiliates $ 1,005 $ 9,390 $ 1,077 $ 6,958 $ 7,356 $ 6,230 Other related parties / affiliates 45,723 688 35,321 397 11,676 — Total $ 46,728 $ 10,078 $ 36,398 $ 7,355 $ 19,032 $ 6,230 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. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 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, industrial and field services, and emergency and spill response services. The Oil Business segment consists of the Company's used oil collection, recycled fuel oil sales, used oil re-refining activities, and used oil filter removal and disposal services. No customer represented greater than 10% of consolidated revenues for any of the periods presented. There were no intersegment revenues. Both segments operate in the United States and, to an immaterial degree, in Ontario, Canada. As such, the Company is not disclosing operating results by geographic segment. Segment results for the fiscal years ended December 31, 2022, January 1, 2022, and January 2, 2021, were as follows: For the Fiscal Year Ended, December 31, 2022 (thousands) Environmental Oil Business Corporate and Consolidated Revenues Service revenues $ 365,502 $ 12,597 $ — $ 378,099 Product revenues 55,959 247,656 — 303,615 Rental income 27,561 56 — 27,617 Total revenues $ 449,022 $ 260,309 $ — $ 709,331 Operating expenses Operating costs 337,329 159,104 — 496,433 Operating depreciation and amortization 17,938 9,423 — 27,361 Profit before corporate selling, general, and administrative expenses $ 93,755 $ 91,782 $ — $ 185,537 Selling, general, and administrative expenses 70,781 70,781 Depreciation and amortization from SG&A 8,366 8,366 Total selling, general, and administrative expenses $ 79,147 $ 79,147 Other income - net (12,011) (12,011) Operating income 118,401 Interest expense - net 3,232 3,232 Income before income taxes $ 115,169 For the Fiscal Year 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 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 Year 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 Total assets by segment as of December 31, 2022 and January 1, 2022 were as follows: (thousands) December 31, 2022 January 1, 2022 Total Assets: Environmental Services $ 537,589 $ 281,333 Oil Business 190,862 171,188 Unallocated Corporate Assets 65,790 74,343 Total $ 794,241 $ 526,864 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 2022, 2021, and 2020 were as follows: For the Fiscal Years Ended, (thousands) December 31, 2022 January 1, 2022 January 2, 2021 Total Capital Expenditures: Environmental Services $ 27,684 $ 10,825 $ 13,161 Oil Business 14,885 12,049 9,744 Unallocated Corporate Assets 5,122 1,213 808 Total $ 47,691 $ 24,087 $ 23,713 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 $ 5,823 $ 2,894 Interest on lease liabilities 1,133 551 Total finance lease cost $ 6,956 $ 3,445 Operating lease cost $ 24,169 $ 22,761 Short-term lease cost 9,505 5,971 Variable lease cost 3,163 3,018 Total lease cost $ 43,793 $ 35,195 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from financing leases $ 1,112 $ 550 Operating cash flows from operating leases 23,273 22,500 Financing cash flows from financing leases 4,694 2,222 Right-of-use assets obtained in exchange for new finance lease liabilities 28,314 8,111 Right-of-use assets obtained in exchange for new operating lease liabilities 32,733 16,299 Weighted-average remaining lease term (years) Finance leases 5.3 5.6 Operating leases 5.6 4.9 Weighted-average discount rate Finance leases 3.7 % 3.2 % Operating leases 4.7 % 5.0 % Future annual minimum lease payment commitments as of December 31, 2022 were as follows: (thousands) Operating Leases Finance Leases Total 2023 $ 24,532 $ 8,371 $ 32,903 2024 19,135 8,371 27,506 2025 14,292 8,309 22,601 2026 10,421 9,219 19,640 2027 7,622 7,128 14,750 2028 and thereafter 19,757 7,635 27,392 Total minimum lease payments $ 95,759 $ 49,033 $ 144,792 Less: imputed interest 11,856 4,921 16,777 Lease liability $ 83,903 $ 44,112 $ 128,015 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 December 31, 2022 January 1, 2022 (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Parts Cleaning $ 27,427 $ — $ 27,427 $ 24,572 $ — $ 24,572 Property 134 56 190 107 55 162 Total rental income $ 27,561 $ 56 $ 27,617 $ 24,679 $ 55 $ 24,734 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 $20.7 million as of December 31, 2022, and $27.4 million as of January 1, 2022, primarily for capital expenditures, used oil, catalyst, disposal services, and solvent. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 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 Inflation Reduction Act of 2022 (the “Act”) was signed into U.S. law on August 16, 2022. The Act includes various tax provisions, including an excise tax on stock repurchases, expanded tax credits for clean energy incentives, and a corporate alternative minimum tax that generally applies to U.S. corporations with average adjusted financial statement income over a three year period in excess of $1 billion. The Company does not expect the Act to materially impact its 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 2022. 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 2011, the Company utilized all internally generated Federal and State NOLs, however there are additional ITC Sec. 382- limited NOLs available from prior year, as well as those NOLs received through the acquisition of Patriot Environmental Services, Inc. A full valuation allowance of $0.7 million has been set up on the NOL related to foreign operations. The Company's effective tax rate for fiscal 2022 was 26.5% compared to 25.8% in fiscal 2021. 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 2022 as compared to the impact of those adjustments in fiscal year 2021. Components of the Company's income tax benefit and provision consist of the following for fiscal years 2022, 2021, and 2020: For the Fiscal Years Ended, (thousands) December 31, 2022 January 1, 2022 January 2, 2021 Current: Federal $ 15,049 $ 7,984 $ (104) State 5,646 3,224 264 Total current $ 20,695 $ 11,208 $ 160 Deferred: Federal $ 9,187 $ 8,505 $ 3,492 State 528 1,403 1,173 Total deferred $ 9,715 $ 9,908 $ 4,665 Income tax provision $ 30,410 $ 21,116 $ 4,825 A reconciliation of the expected income tax expense at the statutory federal rate to the Company's actual income tax expense is as follows: For the Fiscal Years Ended, (thousands) December 31, 2022 January 1, 2022 January 2, 2021 Tax expense at statutory federal rate $ 24,143 $ 17,201 $ 3,520 State and local tax, net of federal expense 4,877 3,705 1,085 Windfalls from share-based compensation (227) (366) (141) Valuation allowance 148 73 196 Other 1,469 503 165 Total income tax provision $ 30,410 $ 21,116 $ 4,825 Components of deferred tax assets (liabilities) are as follows: As of, (thousands) December 31, 2022 January 1, 2022 Deferred tax assets: Net operating loss carryforward $ 8,441 $ 579 Stock compensation 3,037 2,739 Tax intangible assets 939 1,118 Reserves and accruals 3,845 3,480 Income tax credits 5 — Allowance for uncollectible accounts 1,887 786 Total deferred tax asset $ 18,154 $ 8,702 Less: valuation allowance 726 579 Net deferred tax asset $ 17,428 $ 8,123 Deferred tax liabilities: Prepaids $ (1,068) $ (1,063) Unrealized gain on investment (3,122) — Depreciation and amortization (70,393) (38,186) Total deferred tax liability $ (74,583) $ (39,249) Net deferred tax liability $ (57,155) $ (31,126) As of December 31, 2022, the Company is no longer subject to U.S. federal examinations by taxing authorities for years prior to 2019, however net operating loss carryforwards from years prior to 2019 remain open to examination as part of any future year(s) in which those net operating loss carryforwards are utilized. As of December 31, 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 December 31, 2022 and January 1, 2022, the Company provided a valuation allowance against those foreign net operating loss carryforwards of $0.7 million and $0.6 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 December 31, 2022 and $2.2 million as of January 1, 2022. 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 uncertain tax positions as of December 31, 2022, or January 1, 2022. The following table summarizes the movement in unrecognized tax benefits: For the Fiscal Years Ended, (thousands) December 31, 2022 January 1, 2022 Gross Unrecognized Tax Benefits: Beginning balance $ 2,226 $ 2,799 Additions based on current year's tax positions 33 31 Net changes based on prior year's tax positions (13) (604) Ending balance $ 2,246 $ 2,226 |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 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 November 14, 2022, the Company granted 147,623 shares of restricted stock to certain members of Management as part of a Special Incentive Program. Up to 147,623 shares may vest on September 21, 2025. One-third of the shares vest in equal installments on each the first three 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 2022 2021 2020 December 31, 2022 January 1, 2022 Members of Management February, 2018 116,958 — — 566 — — Special Incentive Grant April, 2018 350,000 380 1,540 970 — 380 Members of Management May, 2019 23,560 — 36 203 — — Members of Management February, 2020 41,138 87 101 43 — 87 Board of Directors April, 2020 14,988 — — 285 — — Chief Executive Officer February, 2021 500,000 2,044 1,619 — 1,837 3,881 Members of Management February, 2021 35,898 215 183 — 223 448 Board of Directors April, 2021 11,487 — 332 — — — Members of Management February, 2022 75,355 502 — — 1,015 — Board of Directors April, 2022 18,064 482 — — — — Special Incentive Grant November, 2022 147,623 135 — — 2,863 — 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 fiscal 2022, the Company recorded approximately $2.0 million of compensation expense related to this award. In the future, the Company expects to recognize compensation expense of approximately $1.8 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 each 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 2022, the Company recorded approximately $1.0 million of compensation expense related to this award. The following table summarizes information about restricted stock awards for the periods ended January 2, 2021 through December 31, 2022: Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share 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 Granted 257,675 28.47 Vested (107,772) 23.05 Forfeited (145,193) 23.48 Nonvested shares outstanding at December 31, 2022 728,693 $ 24.35 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. As of December 31, 2022, the Company had reserved 41,283 shares of common stock available for purchase under the ESPP. In fiscal 2022, employees purchased 19,062 shares of the Company’s common stock with a weighted average fair market value of $29.58 per share. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 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. pursuant to which Heritage has the option to participate, pro rata based on its percentage ownership interest in the Company's common stock in any equity offerings for cash consideration, including (i) contracts with parties for equity financing (including any debt financing with an equity component) and (ii) issuances of equity securities or securities convertible, exchangeable or exercisable into or for equity securities (including debt securities with an equity component). If Heritage exercises its right with respect to all offerings, it 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. Heritage is not required to participate or exercise their right of participation with respect to any offerings. Heritage's right to participate does not apply to certain offerings of securities that are not conducted to raise or obtain equity capital or cash such as stock issued as consideration in a merger or consolidation, in connection with strategic partnerships or joint ventures, or for the acquisition of a business, product, license, or other asset by the Company. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table reconciles the number of shares outstanding for fiscal 2022, 2021, and 2020 respectively, to the number of weighted average basic shares outstanding and the number of weighted average diluted shares outstanding for the purposes of calculating basic and diluted earnings per share: For the Fiscal Years Ended, (thousands, except per share data) December 31, 2022 January 1, 2022 January 2, 2021 Net income $ 84,759 $ 60,948 $ 11,937 Weighted average basic shares outstanding 23,544 23,419 23,286 Dilutive shares for share–based compensation plans 135 138 167 Weighted average diluted shares outstanding 23,679 23,557 23,453 Net income per share: basic $ 3.60 $ 2.60 $ 0.51 Net income per share: diluted $ 3.58 $ 2.59 $ 0.51 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS U.S. GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1. We value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Recurring Fair Value Measurements The following tables summarize assets measured at fair value on a recurring basis (in millions) as of December 31, 2022: Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Fair Value Measurements Equity Securities (1) $— $— $15.2 $15.2 (1) Represents a $3.0 million investment the Company made in its privately held battery recycling partner, HBR Retriev Holdco, LLC, a company controlled by the Heritage Group, an affiliate of the Company. In December 2022, the Company revalued the investment and recorded a gain of $12.2 million in operating income The gains and losses on assets measured at fair value on a recurring basis are summarized in the following table (in millions): Year Ended December 31, 2022 January 1, 2022 Beginning balance $ — $ — Transfers in 3.0 — Unrealized gain 12.2 — Ending balance $ 15.2 $ — |
Other (Income) Expense - Net
Other (Income) Expense - Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense - Net | OTHER (INCOME) EXPENSE - NETOther (income) - net was $12.0 million of income during fiscal 2022 driven mainly by a gain as a result of a revaluation of our fair value investments, compared to $1.0 million during fiscal 2021 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Fiscal Period | Our fiscal year ends on the Saturday closest to December 31. "Fiscal 2022" represents the 52-week period ended December 31, 2022. "Fiscal 2021" represents the 52-week period ended January 1, 2022. "Fiscal 2020" represents the 53-week period ended January 2, 2021. 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 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 $0.5 million and $0.1 million of cash on deposit outside the United States of America as of December 31, 2022 and January 1, 2022, respectively. |
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 $26.7 million and $60.9 million at December 31, 2022 and January 1, 2022, 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. |
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. The Company has not yet finalized the purchase price allocation for the one acquisition that was completed in fiscal 2022 as disclosed in the business combination Note 3. |
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 |
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 2022 or 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 and Shipping Costs | 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 Development Research and development costs are expensed as incurred within general, selling, and administrative expenses. Such costs incurred during fiscal 2022, 2021, and 2020 were $0.3 million, $0.2 million, and $0.3 million, respectively. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising expense was $0.6 million, $0.4 million, and $0.4 million for fiscal 2022, 2021, and 2020, respectively. |
Share-Based Compensation | 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 |
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 2022, 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 December 31, 2022 and January 1, 2022, the Company's liability for its self-insured benefits was $2.2 million and $1.6 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 2022, 2021, and 2020 were $20.7 million, $15.9 million, and $17.6 million, respectively. |
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 December 31, 2022 and January 1, 2022, the Company reported goodwill only in its Environmental Services segment. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2022: As of December 31, 2022 (thousands) Patriot Environmental Services, Inc. (1) Source Environmental, Inc. (2) Raider Environmental Services of Florida, Inc. (2) Cole's Environmental (2) Accounts receivable $ 25,381 $ 1,064 $ 488 $ — Inventory — — — 73 Other current assets 2,034 6 162 — Property, plant, & equipment 33,968 174 4,404 2,455 Intangible assets 62,200 13,692 6,056 9,620 Goodwill 62,541 6,174 2,835 5,144 Accounts payable and accruals (12,929) (677) (218) — Deferred tax liabilities (16,313) — — — Total purchase price, net of cash acquired $ 156,882 $ 20,433 $ 13,727 $ 17,292 Less: contingent consideration — — — 2,949 Less: to be placed in escrow 2,780 — — — Net cash paid $ 154,102 $ 20,433 $ 13,727 $ 14,343 (1) The Company is still in the process of finalizing the purchase price allocation for the acquisition and therefore balances are preliminary. (2) The above purchase price allocations are final. |
Schedule of 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 Patriot Environmental Services, Inc., acquisitions had occurred January 1, 2022. 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) December 31, 2022 January 1, 2022 Total revenues $ 782,105 $ 704,710 Net income $ 85,536 $ 72,435 Net income per share: basic $ 3.63 $ 3.09 Net income per share: diluted $ 3.61 $ 3.07 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 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 $ 221,051 $ — $ 221,051 $ 178,242 $ — $ 178,242 $ 159,065 $ — $ 159,065 Vacuum Services & Wastewater Treatment 86,747 — 86,747 64,595 — 64,595 55,759 — 55,759 Industrial & Field Services 78,725 — 78,725 20,972 — 20,972 24,036 — 24,036 Antifreeze Business 32,828 — 32,828 27,824 — 27,824 25,736 — 25,736 Environmental Services - Other 2,110 — 2,110 1,855 — 1,855 1,780 — 1,780 Re-refinery Product Sales — 232,361 232,361 — 171,605 171,605 — 87,323 87,323 Oil Collection Services & RFO — 22,558 22,558 — 20,105 20,105 — 23,324 23,324 Oil Filter Business — 5,334 5,334 — 5,402 5,402 — 4,629 4,629 Revenues from Contracts with Customers 421,461 260,253 681,714 293,488 197,112 490,600 266,376 115,276 381,652 Rental income 27,561 56 27,617 24,679 55 24,734 24,216 83 24,299 Total Revenues $ 449,022 $ 260,309 $ 709,331 $ 318,167 $ 197,167 $ 515,334 $ 290,592 $ 115,359 $ 405,951 |
Schedule of Contract Assets and Contract Liabilities | The following table provides information about contract assets and contract liabilities from contracts with customers: (thousands) December 31, 2022 January 1, 2022 Contract assets $ 133 $ 268 Contract liabilities 2,658 2,362 Contract liabilities - net $ 2,525 $ 2,094 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts Payable | Accounts receivable consisted of the following: (thousands) December 31, January 1, Trade $ 111,118 $ 59,132 Less: allowance for uncollectible accounts 4,496 2,928 Trade - net 106,622 56,204 Related parties 6,777 5,410 Other 1,009 899 Total accounts receivable - net $ 114,408 $ 62,513 The following table provides the changes in the Company’s allowance for uncollectible accounts for the fiscal year ended December 31, 2022 and the fiscal year ended January 1, 2022. (thousands) December 31, January 1, Balance at beginning of period $ 2,928 $ 2,502 Provision for uncollectible accounts 2,269 1,930 Accounts written off, net of recoveries (701) (1,504) Balance at end of period $ 4,496 $ 2,928 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The carrying value of inventory consisted of the following: (thousands) December 31, January 1, Solvents and solutions $ 10,792 $ 7,704 Used oil and processed oil 14,904 9,361 Machines 6,329 4,995 Drums and supplies 6,476 5,731 Other 2,666 2,246 Total inventory 41,167 30,037 Less: machine refurbishing reserve 440 501 Total inventory - net $ 40,727 $ 29,536 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant, and equipment consisted of the following: (thousands) December 31, January 1, Machinery, vehicles, and equipment $ 193,803 $ 148,004 Buildings and storage tanks 95,638 75,774 Land 6,785 5,910 Leasehold improvements 9,984 8,516 Construction in progress 20,750 15,756 Total property, plant, and equipment 326,960 253,960 Less: accumulated depreciation 104,018 87,659 Property, plant, and equipment - net $ 222,942 $ 166,301 (thousands) December 31, January 1, Equipment at customers $ 93,181 $ 86,599 Less: accumulated depreciation 66,716 62,453 Equipment at customers - net $ 26,465 $ 24,146 |
Right of Use Assets and Liabilities | Right of use assets and liabilities consist of the following: (thousands) Classification December 31, January 1, Finance lease assets - net Right of use assets $ 41,711 $ 19,094 Operating lease assets - net Right of use assets 81,028 64,771 Current lease liability - finance Current liabilities 6,891 2,548 Current lease liability - operating Current liabilities 20,215 17,598 Noncurrent lease liability - finance Long-term liabilities 37,221 17,643 Noncurrent lease liability - operating Long-term liabilities 62,685 47,398 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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 January 2, 2021, January 1, 2022, and December 31, 2022: (thousands) Environmental Services Total 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 Acquisitions $ 62,541 $ 62,541 Goodwill at December 31, 2022 Gross carrying amount 112,236 112,236 Accumulated impairment loss — — Net book value at December 31, 2022 $ 112,236 $ 112,236 |
Schedule of Finite-Lived Intangible Assets | Following is a summary of software and other intangible assets: December 31, 2022 January 1, 2022 (thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships $ 62,268 $ 25,762 $ 36,506 $ 47,167 $ 20,725 $ 26,442 Permits 60,690 2,697 $ 57,993 13,590 879 $ 12,711 Software 13,643 7,378 $ 6,265 11,721 6,399 $ 5,322 Non-compete agreements 4,421 3,665 $ 756 4,048 3,340 $ 708 Patents, formulae, and licenses 1,769 971 $ 798 1,769 906 $ 863 Other* 597 580 $ 17 996 1,093 $ (97) Total software and intangible assets $ 143,388 $ 41,053 $ 102,335 $ 79,291 $ 33,342 $ 45,949 *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 17 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) 2023 $10.1 2024 8.4 2025 7.4 2026 6.9 2027 6.8 2028 6.7 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable | Accounts payable consisted of the following: (thousands) December 31, January 1, Accounts payable $ 54,935 $ 35,613 Accounts payable - related parties 152 566 Total accounts payable $ 55,087 $ 36,179 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt at December 31, 2022 and January 1, 2022 consisted of the following: (thousands) December 31, 2022 January 1, 2022 Long-term debt $ 90,000 $ — Less: unamortized debt issuance costs 617 — Long-term debt $ 89,383 $ — |
Related Party and Affiliate T_2
Related Party and Affiliate Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | During fiscal 2022, 2021, and 2020, the Company had transactions with The Heritage Group affiliates and other related parties. The following table sets forth related-party transactions: Fiscal 2022 Fiscal 2021 Fiscal 2020 (thousands) Revenues Expenses Revenues Expenses Revenues Expenses Heritage Group affiliates $ 1,005 $ 9,390 $ 1,077 $ 6,958 $ 7,356 $ 6,230 Other related parties / affiliates 45,723 688 35,321 397 11,676 — Total $ 46,728 $ 10,078 $ 36,398 $ 7,355 $ 19,032 $ 6,230 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Segment results for the fiscal years ended December 31, 2022, January 1, 2022, and January 2, 2021, were as follows: For the Fiscal Year Ended, December 31, 2022 (thousands) Environmental Oil Business Corporate and Consolidated Revenues Service revenues $ 365,502 $ 12,597 $ — $ 378,099 Product revenues 55,959 247,656 — 303,615 Rental income 27,561 56 — 27,617 Total revenues $ 449,022 $ 260,309 $ — $ 709,331 Operating expenses Operating costs 337,329 159,104 — 496,433 Operating depreciation and amortization 17,938 9,423 — 27,361 Profit before corporate selling, general, and administrative expenses $ 93,755 $ 91,782 $ — $ 185,537 Selling, general, and administrative expenses 70,781 70,781 Depreciation and amortization from SG&A 8,366 8,366 Total selling, general, and administrative expenses $ 79,147 $ 79,147 Other income - net (12,011) (12,011) Operating income 118,401 Interest expense - net 3,232 3,232 Income before income taxes $ 115,169 For the Fiscal Year 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 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 Year 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 |
Schedule of Reconciliation of Assets from Segment to Consolidated | Total assets by segment as of December 31, 2022 and January 1, 2022 were as follows: (thousands) December 31, 2022 January 1, 2022 Total Assets: Environmental Services $ 537,589 $ 281,333 Oil Business 190,862 171,188 Unallocated Corporate Assets 65,790 74,343 Total $ 794,241 $ 526,864 |
Schedule of Capital Expenditures by Segment | Capital expenditures by segment for fiscal 2022, 2021, and 2020 were as follows: For the Fiscal Years Ended, (thousands) December 31, 2022 January 1, 2022 January 2, 2021 Total Capital Expenditures: Environmental Services $ 27,684 $ 10,825 $ 13,161 Oil Business 14,885 12,049 9,744 Unallocated Corporate Assets 5,122 1,213 808 Total $ 47,691 $ 24,087 $ 23,713 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 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 $ 5,823 $ 2,894 Interest on lease liabilities 1,133 551 Total finance lease cost $ 6,956 $ 3,445 Operating lease cost $ 24,169 $ 22,761 Short-term lease cost 9,505 5,971 Variable lease cost 3,163 3,018 Total lease cost $ 43,793 $ 35,195 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from financing leases $ 1,112 $ 550 Operating cash flows from operating leases 23,273 22,500 Financing cash flows from financing leases 4,694 2,222 Right-of-use assets obtained in exchange for new finance lease liabilities 28,314 8,111 Right-of-use assets obtained in exchange for new operating lease liabilities 32,733 16,299 Weighted-average remaining lease term (years) Finance leases 5.3 5.6 Operating leases 5.6 4.9 Weighted-average discount rate Finance leases 3.7 % 3.2 % Operating leases 4.7 % 5.0 % |
Schedule of Future Annual Minimum Operating Lease Payment Commitments | Future annual minimum lease payment commitments as of December 31, 2022 were as follows: (thousands) Operating Leases Finance Leases Total 2023 $ 24,532 $ 8,371 $ 32,903 2024 19,135 8,371 27,506 2025 14,292 8,309 22,601 2026 10,421 9,219 19,640 2027 7,622 7,128 14,750 2028 and thereafter 19,757 7,635 27,392 Total minimum lease payments $ 95,759 $ 49,033 $ 144,792 Less: imputed interest 11,856 4,921 16,777 Lease liability $ 83,903 $ 44,112 $ 128,015 |
Schedule of Future Annual Minimum Financing Lease Payment Commitments | Future annual minimum lease payment commitments as of December 31, 2022 were as follows: (thousands) Operating Leases Finance Leases Total 2023 $ 24,532 $ 8,371 $ 32,903 2024 19,135 8,371 27,506 2025 14,292 8,309 22,601 2026 10,421 9,219 19,640 2027 7,622 7,128 14,750 2028 and thereafter 19,757 7,635 27,392 Total minimum lease payments $ 95,759 $ 49,033 $ 144,792 Less: imputed interest 11,856 4,921 16,777 Lease liability $ 83,903 $ 44,112 $ 128,015 |
Schedule of Rental Income | Rental income was as follows: For the Fiscal Year Ended For the Fiscal Year Ended December 31, 2022 January 1, 2022 (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Parts Cleaning $ 27,427 $ — $ 27,427 $ 24,572 $ — $ 24,572 Property 134 56 190 107 55 162 Total rental income $ 27,561 $ 56 $ 27,617 $ 24,679 $ 55 $ 24,734 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 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 2022, 2021, and 2020: For the Fiscal Years Ended, (thousands) December 31, 2022 January 1, 2022 January 2, 2021 Current: Federal $ 15,049 $ 7,984 $ (104) State 5,646 3,224 264 Total current $ 20,695 $ 11,208 $ 160 Deferred: Federal $ 9,187 $ 8,505 $ 3,492 State 528 1,403 1,173 Total deferred $ 9,715 $ 9,908 $ 4,665 Income tax provision $ 30,410 $ 21,116 $ 4,825 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the expected income tax expense at the statutory federal rate to the Company's actual income tax expense is as follows: For the Fiscal Years Ended, (thousands) December 31, 2022 January 1, 2022 January 2, 2021 Tax expense at statutory federal rate $ 24,143 $ 17,201 $ 3,520 State and local tax, net of federal expense 4,877 3,705 1,085 Windfalls from share-based compensation (227) (366) (141) Valuation allowance 148 73 196 Other 1,469 503 165 Total income tax provision $ 30,410 $ 21,116 $ 4,825 |
Schedule of Deferred Tax Assets and Liabilities | Components of deferred tax assets (liabilities) are as follows: As of, (thousands) December 31, 2022 January 1, 2022 Deferred tax assets: Net operating loss carryforward $ 8,441 $ 579 Stock compensation 3,037 2,739 Tax intangible assets 939 1,118 Reserves and accruals 3,845 3,480 Income tax credits 5 — Allowance for uncollectible accounts 1,887 786 Total deferred tax asset $ 18,154 $ 8,702 Less: valuation allowance 726 579 Net deferred tax asset $ 17,428 $ 8,123 Deferred tax liabilities: Prepaids $ (1,068) $ (1,063) Unrealized gain on investment (3,122) — Depreciation and amortization (70,393) (38,186) Total deferred tax liability $ (74,583) $ (39,249) Net deferred tax liability $ (57,155) $ (31,126) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarizes the movement in unrecognized tax benefits: For the Fiscal Years Ended, (thousands) December 31, 2022 January 1, 2022 Gross Unrecognized Tax Benefits: Beginning balance $ 2,226 $ 2,799 Additions based on current year's tax positions 33 31 Net changes based on prior year's tax positions (13) (604) Ending balance $ 2,246 $ 2,226 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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 2022 2021 2020 December 31, 2022 January 1, 2022 Members of Management February, 2018 116,958 — — 566 — — Special Incentive Grant April, 2018 350,000 380 1,540 970 — 380 Members of Management May, 2019 23,560 — 36 203 — — Members of Management February, 2020 41,138 87 101 43 — 87 Board of Directors April, 2020 14,988 — — 285 — — Chief Executive Officer February, 2021 500,000 2,044 1,619 — 1,837 3,881 Members of Management February, 2021 35,898 215 183 — 223 448 Board of Directors April, 2021 11,487 — 332 — — — Members of Management February, 2022 75,355 502 — — 1,015 — Board of Directors April, 2022 18,064 482 — — — — Special Incentive Grant November, 2022 147,623 135 — — 2,863 — The following table summarizes information about restricted stock awards for the periods ended January 2, 2021 through December 31, 2022: Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share 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 Granted 257,675 28.47 Vested (107,772) 23.05 Forfeited (145,193) 23.48 Nonvested shares outstanding at December 31, 2022 728,693 $ 24.35 |
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 |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table reconciles the number of shares outstanding for fiscal 2022, 2021, and 2020 respectively, to the number of weighted average basic shares outstanding and the number of weighted average diluted shares outstanding for the purposes of calculating basic and diluted earnings per share: For the Fiscal Years Ended, (thousands, except per share data) December 31, 2022 January 1, 2022 January 2, 2021 Net income $ 84,759 $ 60,948 $ 11,937 Weighted average basic shares outstanding 23,544 23,419 23,286 Dilutive shares for share–based compensation plans 135 138 167 Weighted average diluted shares outstanding 23,679 23,557 23,453 Net income per share: basic $ 3.60 $ 2.60 $ 0.51 Net income per share: diluted $ 3.58 $ 2.59 $ 0.51 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured on Recurring Basis | The following tables summarize assets measured at fair value on a recurring basis (in millions) as of December 31, 2022: Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Fair Value Measurements Equity Securities (1) $— $— $15.2 $15.2 (1) Represents a $3.0 million investment the Company made in its privately held battery recycling partner, HBR Retriev Holdco, LLC, a company controlled by the Heritage Group, an affiliate of the Company. |
Schedule Of Gains And Losses On Assets Measured At Fair Value On A Recurring Basis | The gains and losses on assets measured at fair value on a recurring basis are summarized in the following table (in millions): Year Ended December 31, 2022 January 1, 2022 Beginning balance $ — $ — Transfers in 3.0 — Unrealized gain 12.2 — Ending balance $ 15.2 $ — |
Organization and Nature of Op_2
Organization and Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
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 | ||
Dec. 31, 2022 USD ($) acquisition | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) | |
Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 22,053,000 | $ 56,269,000 | |
Cash deposits in excess of FDIC insured limit | 26,700,000 | 60,900,000 | |
Inventory impairment charges | $ 0 | 200,000 | $ 200,000 |
Number acquisitions | acquisition | 1 | ||
Impairment of intangibles | $ 0 | 0 | 0 |
Impairment of long-lived assets | $ 0 | 0 | 1,400,000 |
Impairment, Long Lived Asset, Held For Use, Statement Of Income Or Comprehensive Income, Extensible Enumeration Not Disclosed Flag | Impairment charges | ||
Research and development expense | $ 300,000 | 200,000 | 300,000 |
Advertising expense | 600,000 | 400,000 | 400,000 |
Self insurance stop loss limit | 300,000 | ||
Self insurance reserve | 2,200,000 | 1,600,000 | |
Expenses incurred for healthcare benefits | 20,700,000 | 15,900,000 | 17,600,000 |
Goodwill | 112,236,000 | 49,695,000 | 35,541,000 |
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 | $ 500,000 | $ 100,000 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Millions | Aug. 03, 2022 | Sep. 27, 2021 | Sep. 13, 2021 | Aug. 24, 2021 |
Patriot Environmental Services Inc | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 156.9 | |||
Transaction costs | $ 1.2 | |||
Source Environmental, Inc | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 20.4 | |||
Raider Environmental | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 13.7 | |||
Bakersfield Transfer Inc And Coles Services Inc Member | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 17.3 |
Business Combinations - Schedul
Business Combinations - Schedule Estimated Fair Values of Assets Acquired, Net of Cash Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 112,236 | $ 49,695 | $ 35,541 |
Patriot Environmental Services Inc | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 25,381 | ||
Inventory | 0 | ||
Other current assets | 2,034 | ||
Property, plant, & equipment | 33,968 | ||
Intangible assets | 62,200 | ||
Goodwill | 62,541 | ||
Accounts payable and accruals | (12,929) | ||
Deferred tax liabilities | (16,313) | ||
Total purchase price, net of cash acquired | 156,882 | ||
Less: contingent consideration | 0 | ||
Less: to be placed in escrow | 2,780 | ||
Net cash paid | 154,102 | ||
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) | ||
Deferred tax liabilities | 0 | ||
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 | |||
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) | ||
Deferred tax liabilities | 0 | ||
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 | ||
Deferred tax liabilities | 0 | ||
Total purchase price, net of cash acquired | 17,292 | ||
Less: contingent consideration | 2,949 | ||
Less: to be placed in escrow | 0 | ||
Net cash paid | $ 14,343 |
Business Combinations - Sched_2
Business Combinations - Schedule of Unaudited Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | ||
Total revenues | $ 782,105 | $ 704,710 |
Net income | $ 85,536 | $ 72,435 |
Net income per share: basic (in dollars per share) | $ 3.63 | $ 3.09 |
Net income per share: diluted (in dollars per share) | $ 3.61 | $ 3.07 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue by Major Lines (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
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 | $ 681,714 | $ 490,600 | $ 381,652 |
Rental income | 27,617 | 24,734 | 24,299 |
Total revenues | $ 709,331 | 515,334 | 405,951 |
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. | ||
Parts cleaning, containerized waste, & related products/services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | $ 221,051 | 178,242 | 159,065 |
Vacuum Services & Wastewater Treatment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 86,747 | 64,595 | 55,759 |
Industrial & Field Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 78,725 | 20,972 | 24,036 |
Antifreeze Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 32,828 | 27,824 | 25,736 |
Environmental Services - Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 2,110 | 1,855 | 1,780 |
Re-refinery Product Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 232,361 | 171,605 | 87,323 |
Oil Collection Services & RFO | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 22,558 | 20,105 | 23,324 |
Oil Filter Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 5,334 | 5,402 | 4,629 |
Environmental Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 421,461 | 293,488 | 266,376 |
Rental income | 27,561 | 24,679 | 24,216 |
Total revenues | 449,022 | 318,167 | 290,592 |
Environmental Services | Parts cleaning, containerized waste, & related products/services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 221,051 | 178,242 | 159,065 |
Environmental Services | Vacuum Services & Wastewater Treatment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 86,747 | 64,595 | 55,759 |
Environmental Services | Industrial & Field Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 78,725 | 20,972 | 24,036 |
Environmental Services | Antifreeze Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 32,828 | 27,824 | 25,736 |
Environmental Services | Environmental Services - Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 2,110 | 1,855 | 1,780 |
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 | 260,253 | 197,112 | 115,276 |
Rental income | 56 | 55 | 83 |
Total revenues | 260,309 | 197,167 | 115,359 |
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 | Industrial & 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 | 232,361 | 171,605 | 87,323 |
Oil Business | Oil Collection Services & RFO | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 22,558 | 20,105 | 23,324 |
Oil Business | Oil Filter Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from Contracts with Customers | $ 5,334 | $ 5,402 | $ 4,629 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 133 | $ 268 |
Contract liabilities | 2,658 | 2,362 |
Contract liabilities - net | 2,525 | $ 2,094 |
Revenue recognized previously included in contract liabilities | $ 2,100 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 |
Receivables [Abstract] | |||
Trade | $ 111,118 | $ 59,132 | |
Less: allowance for uncollectible accounts | 4,496 | 2,928 | $ 2,502 |
Trade - net | 106,622 | 56,204 | |
Related parties | 6,777 | 5,410 | |
Other | 1,009 | 899 | |
Total accounts receivable - net | $ 114,408 | $ 62,513 |
Accounts Receivable - Rollforwa
Accounts Receivable - Rollforward of Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of period | $ 2,928 | $ 2,502 | |
Provision for uncollectible accounts | 2,269 | 1,930 | $ 1,919 |
Accounts written off, net of recoveries | (701) | (1,504) | |
Balance at end of period | $ 4,496 | $ 2,928 | $ 2,502 |
Inventory - Schedule of Carryin
Inventory - Schedule of Carrying Value of Inventory (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Inventory Disclosure [Abstract] | |||
Solvents and solutions | $ 10,792,000 | $ 7,704,000 | |
Used oil and processed oil | 14,904,000 | 9,361,000 | |
Machines | 6,329,000 | 4,995,000 | |
Drums and supplies | 6,476,000 | 5,731,000 | |
Other | 2,666,000 | 2,246,000 | |
Total inventory | 41,167,000 | 30,037,000 | |
Less: machine refurbishing reserve | 440,000 | 501,000 | |
Total inventory - net | 40,727,000 | 29,536,000 | |
Inventory impairment charge | $ 0 | $ 200,000 | $ 200,000 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | $ 326,960 | $ 253,960 |
Less: accumulated depreciation | 104,018 | 87,659 |
Property, plant, and equipment - net | 222,942 | 166,301 |
Equipment at customers | 93,181 | 86,599 |
Less: accumulated depreciation | 66,716 | 62,453 |
Equipment at customers - net | 26,465 | 24,146 |
Machinery, vehicles, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 193,803 | 148,004 |
Buildings and storage tanks | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 95,638 | 75,774 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 6,785 | 5,910 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 9,984 | 8,516 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | $ 20,750 | $ 15,756 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Right of Use Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
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 | $ 41,711 | $ 19,094 | |
Operating lease assets - net | 81,028 | 64,771 | |
Current lease liability - finance | 6,891 | 2,548 | |
Current lease liability - operating | 20,215 | 17,598 | |
Noncurrent lease liability - finance | 37,221 | 17,643 | |
Noncurrent lease liability - operating | 62,685 | 47,398 | |
Depreciation expense | 28,000 | 20,400 | $ 14,600 |
Amortization of right-of-use Assets | $ 5,823 | $ 2,894 | $ 1,800 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 7,700,000 | $ 5,400,000 | $ 4,200,000 |
Impairment of intangibles | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Goodwill Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Goodwill [Line Items] | |||
Gross carrying amount beginning balance | $ 112,236 | $ 49,695 | $ 35,541 |
Accumulated impairment loss | 0 | 0 | 0 |
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 49,695 | 35,541 | |
Acquisitions | 62,541 | 14,154 | |
Goodwill ending balance | 112,236 | 49,695 | |
Environmental Services | |||
Goodwill [Line Items] | |||
Gross carrying amount beginning balance | 112,236 | 49,695 | 35,541 |
Accumulated impairment loss | 0 | 0 | $ 0 |
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 49,695 | 35,541 | |
Acquisitions | 62,541 | 14,154 | |
Goodwill ending balance | $ 112,236 | $ 49,695 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Software and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Sep. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 143,388 | $ 79,291 | |
Accumulated Amortization | 41,053 | 33,342 | |
Net Carrying Amount | 102,335 | 45,949 | |
Customer & supplier relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 62,268 | 47,167 | |
Accumulated Amortization | 25,762 | 20,725 | |
Net Carrying Amount | $ 36,506 | 26,442 | |
Software, estimated useful life | 12 years | ||
Permits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 60,690 | 13,590 | |
Accumulated Amortization | 2,697 | 879 | |
Net Carrying Amount | $ 57,993 | 12,711 | |
Software, estimated useful life | 17 years | ||
Software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 13,643 | 11,721 | |
Accumulated Amortization | 7,378 | 6,399 | |
Net Carrying Amount | $ 6,265 | 5,322 | |
Software, estimated useful life | 9 years | ||
Non-compete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 4,421 | 4,048 | |
Accumulated Amortization | 3,665 | 3,340 | |
Net Carrying Amount | $ 756 | 708 | |
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 | 971 | 906 | |
Net Carrying Amount | $ 798 | 863 | |
Software, estimated useful life | 15 years | ||
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 597 | 996 | |
Accumulated Amortization | 580 | 1,093 | |
Net Carrying Amount | $ 17 | $ (97) | |
Above market lease acquired | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ (700) | ||
Other intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Software, estimated useful life | 7 years |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 10,100 |
2024 | 8,400 |
2025 | 7,400 |
2026 | 6,900 |
2027 | 6,800 |
2028 | $ 6,700 |
Accounts Payable (Details)
Accounts Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 54,935 | $ 35,613 |
Accounts payable - related parties | 152 | 566 |
Total accounts payable | $ 55,087 | $ 36,179 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Aug. 03, 2022 | Mar. 18, 2021 | Mar. 27, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Line of Credit Facility [Line Items] | ||||||
Payment of term loan | $ 0 | $ 30,000,000 | $ 0 | |||
Weighted average interest rate | 4.70% | 2% | 2.90% | |||
Interest expense | $ 3,200,000 | $ 900,000 | ||||
Finance lease interest expense | 1,112,000 | 550,000 | ||||
Interest on lease liabilities | 1,133,000 | 551,000 | ||||
Capitalized interest | 0 | $ 0 | ||||
Outstanding amount on letters of credit | 6,000,000 | 5,600,000 | ||||
Available for borrowing under the bank credit facility | $ 54,000,000 | $ 94,400,000 | ||||
Finance leases | 3.70% | 3.20% | ||||
Operating leases | 4.70% | 5% | ||||
Finance leases | 5 years 3 months 18 days | 5 years 7 months 6 days | ||||
Operating leases | 5 years 7 months 6 days | 4 years 10 months 24 days | ||||
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 | |||||
Amended And Restated Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt issuance costs | 100,000 | |||||
Amended And Restated Credit Agreement | Revolving Loan Portion | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowings (up to) | $ 150,000,000 | |||||
Additional borrowings (up to) | 50,000,000 | $ 50,000,000 | ||||
Credit line utilized | $ 115,000,000 | |||||
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 | Secured Overnight Financing Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Credit Agreement | Revolving Loan Portion | Secured Overnight Financing Rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Credit Agreement | Revolving Loan Portion | Secured Overnight Financing Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 2.25% | |||||
Credit Agreement | Revolving Loan Portion | Bank of America's prime rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1% |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Debt Disclosure [Abstract] | ||
Long-term debt | $ 90,000 | $ 0 |
Less: unamortized debt issuance costs | 617 | 0 |
Long-term debt | $ 89,383 | $ 0 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Minimum contribution of pre-tax earnings, percent | 1% | ||
Maximum contribution of pre-tax earnings, percent | 70% | ||
Employer matching contribution, maximum percentage of employees' gross pay | 4% | ||
Cost recognized | $ 3.9 | $ 3 | $ 1.7 |
First 3% of Employee Contribution | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution, percent | 100% | ||
Next 2% of Employee Contribution | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution, percent | 50% | ||
First 3% of Employee Contribution | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employee contribution | 3% | ||
Next 2% of Employee Contribution | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employee contribution | 2% |
Related Party and Affiliate T_3
Related Party and Affiliate Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Related Party Transaction [Line Items] | |||
Revenues | $ 46,728 | $ 36,398 | $ 19,032 |
Expenses | 10,078 | 7,355 | 6,230 |
Other related parties / affiliates | |||
Related Party Transaction [Line Items] | |||
Revenues | 45,723 | 35,321 | 11,676 |
Expenses | 688 | 397 | 0 |
The Heritage Group | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenues | 1,005 | 1,077 | 7,356 |
Expenses | $ 9,390 | $ 6,958 | $ 6,230 |
Heritage-Crystal Clean Inc. | The Heritage Group | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 20.60% | ||
Heritage-Crystal Clean Inc. | The Fehsenfeld Family Trusts | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 8% | ||
Heritage-Crystal Clean Inc. | Chairman Fred Fehsenfeld, Jr. | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 2.70% |
Segment Information - Operating
Segment Information - Operating Segment Results (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Revenues | |||
Revenues | $ 681,714 | $ 490,600 | $ 381,652 |
Rental income | 27,617 | 24,734 | 24,299 |
Total revenues | 709,331 | 515,334 | 405,951 |
Operating expenses | |||
Operating costs | 496,433 | 352,796 | 321,648 |
Operating depreciation and amortization | 27,361 | 17,998 | 20,221 |
Profit before corporate selling, general, and administrative expenses | 185,537 | 144,540 | 64,082 |
Selling, general, and administrative expenses | 70,781 | 56,987 | 47,091 |
Depreciation and amortization from SG&A | 8,366 | 5,544 | 4,342 |
Total selling, general, and administrative expenses | 79,147 | 62,531 | 51,433 |
Other income - net | (12,011) | (988) | (5,365) |
Operating income | 118,401 | 82,997 | 18,014 |
Interest expense - net | 3,232 | 933 | 1,252 |
Income before income taxes | 115,169 | 82,064 | 16,762 |
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 | 70,781 | 56,987 | 47,091 |
Depreciation and amortization from SG&A | 8,366 | 5,544 | 4,342 |
Total selling, general, and administrative expenses | 79,147 | 62,531 | 51,433 |
Other income - net | (12,011) | (988) | (5,365) |
Interest expense - net | 3,232 | 933 | 1,252 |
Environmental Services | |||
Revenues | |||
Revenues | 421,461 | 293,488 | 266,376 |
Rental income | 27,561 | 24,679 | 24,216 |
Total revenues | 449,022 | 318,167 | 290,592 |
Environmental Services | Operating Segments | |||
Revenues | |||
Rental income | 27,561 | 24,679 | 24,216 |
Total revenues | 449,022 | 318,167 | 290,592 |
Operating expenses | |||
Operating costs | 337,329 | 232,837 | 215,602 |
Operating depreciation and amortization | 17,938 | 10,112 | 10,863 |
Profit before corporate selling, general, and administrative expenses | 93,755 | 75,218 | 64,127 |
Oil Business | |||
Revenues | |||
Revenues | 260,253 | 197,112 | 115,276 |
Rental income | 56 | 55 | 83 |
Total revenues | 260,309 | 197,167 | 115,359 |
Oil Business | Operating Segments | |||
Revenues | |||
Rental income | 56 | 55 | 83 |
Total revenues | 260,309 | 197,167 | 115,359 |
Operating expenses | |||
Operating costs | 159,104 | 119,959 | 106,046 |
Operating depreciation and amortization | 9,423 | 7,886 | 9,358 |
Profit before corporate selling, general, and administrative expenses | 91,782 | 69,322 | (45) |
Service revenues | |||
Revenues | |||
Revenues | 378,099 | 262,863 | 245,474 |
Service revenues | Corporate and Eliminations | |||
Revenues | |||
Revenues | 0 | 0 | 0 |
Service revenues | Environmental Services | Operating Segments | |||
Revenues | |||
Revenues | 365,502 | 248,121 | 224,123 |
Service revenues | Oil Business | Operating Segments | |||
Revenues | |||
Revenues | 12,597 | 14,742 | 21,351 |
Product revenues | |||
Revenues | |||
Revenues | 303,615 | 227,737 | 136,178 |
Product revenues | Corporate and Eliminations | |||
Revenues | |||
Revenues | 0 | 0 | 0 |
Product revenues | Environmental Services | Operating Segments | |||
Revenues | |||
Revenues | 55,959 | 45,367 | 42,253 |
Product revenues | Oil Business | Operating Segments | |||
Revenues | |||
Revenues | $ 247,656 | $ 182,370 | $ 93,925 |
Segment Information - Assets by
Segment Information - Assets by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Segment Reporting Information [Line Items] | |||
Total Assets: | $ 794,241 | $ 526,864 | |
Total Capital Expenditures: | 47,691 | 24,087 | $ 23,713 |
Operating Segments | Environmental Services | |||
Segment Reporting Information [Line Items] | |||
Total Assets: | 537,589 | 281,333 | |
Total Capital Expenditures: | 27,684 | 10,825 | 13,161 |
Operating Segments | Oil Business | |||
Segment Reporting Information [Line Items] | |||
Total Assets: | 190,862 | 171,188 | |
Total Capital Expenditures: | 14,885 | 12,049 | 9,744 |
Unallocated Corporate Assets | |||
Segment Reporting Information [Line Items] | |||
Total Assets: | 65,790 | 74,343 | |
Total Capital Expenditures: | $ 5,122 | $ 1,213 | $ 808 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 5 years | |
Remaining amount committed | $ 20.7 | $ 27.4 |
Loss contingency accrual | $ (3.2) | $ (3.2) |
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 | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Finance lease cost: | |||
Finance lease depreciation expense | $ 5,823 | $ 2,894 | $ 1,800 |
Interest on lease liabilities | 1,133 | 551 | |
Total finance lease cost | 6,956 | 3,445 | |
Operating lease cost | 24,169 | 22,761 | |
Short-term lease cost | 9,505 | 5,971 | |
Variable lease cost | 3,163 | 3,018 | |
Total lease cost | 43,793 | 35,195 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from financing leases | 1,112 | 550 | |
Operating cash flows from operating leases | 23,273 | 22,500 | |
Repayment of principal on finance leases | 4,694 | 2,222 | $ 1,343 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 28,314 | 8,111 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 32,733 | $ 16,299 | |
Weighted-average remaining lease term (years) | |||
Finance leases | 5 years 3 months 18 days | 5 years 7 months 6 days | |
Operating leases | 5 years 7 months 6 days | 4 years 10 months 24 days | |
Weighted-average discount rate | |||
Finance leases | 3.70% | 3.20% | |
Operating leases | 4.70% | 5% |
Commitments and Contingencies_3
Commitments and Contingencies - Future Annual Minimum Lease Payment Commitments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Operating Leases | |
2023 | $ 24,532 |
2024 | 19,135 |
2025 | 14,292 |
2026 | 10,421 |
2027 | 7,622 |
2028 and thereafter | 19,757 |
Total minimum lease payments | 95,759 |
Less: imputed interest | 11,856 |
Lease liability | 83,903 |
Finance Leases | |
2023 | 8,371 |
2024 | 8,371 |
2025 | 8,309 |
2026 | 9,219 |
2027 | 7,128 |
2028 and thereafter | 7,635 |
Total minimum lease payments | 49,033 |
Less: imputed interest | 4,921 |
Lease liability | 44,112 |
2023 | 32,903 |
2024 | 27,506 |
2025 | 22,601 |
2026 | 19,640 |
2027 | 14,750 |
2028 and thereafter | 27,392 |
Total minimum lease payments | 144,792 |
Less: imputed interest | 16,777 |
Lease liability | $ 128,015 |
Commitments and Contingencies_4
Commitments and Contingencies - Rental Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Lessor, Lease, Description [Line Items] | |||
Total rental income | $ 27,617 | $ 24,734 | $ 24,299 |
Environmental Services | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 27,561 | 24,679 | 24,216 |
Oil Business | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 56 | 55 | $ 83 |
Parts Cleaning | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 27,427 | 24,572 | |
Parts Cleaning | Environmental Services | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 27,427 | 24,572 | |
Parts Cleaning | Oil Business | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 0 | 0 | |
Property | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 190 | 162 | |
Property | Environmental Services | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | 134 | 107 | |
Property | Oil Business | |||
Lessor, Lease, Description [Line Items] | |||
Total rental income | $ 56 | $ 55 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, percent | 26.50% | 25.80% |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 726 | $ 579 |
Foreign Net Operating Loss Carryforwards | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | 700 | 600 |
Uncertain Tax Positions | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 2,200 | $ 2,200 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Current: | |||
Federal | $ 15,049 | $ 7,984 | $ (104) |
State | 5,646 | 3,224 | 264 |
Total current | 20,695 | 11,208 | 160 |
Deferred: | |||
Federal | 9,187 | 8,505 | 3,492 |
State | 528 | 1,403 | 1,173 |
Total deferred | 9,715 | 9,908 | 4,665 |
Total income tax provision | $ 30,410 | $ 21,116 | $ 4,825 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax expense at statutory federal rate | $ 24,143 | $ 17,201 | $ 3,520 |
State and local tax, net of federal expense | 4,877 | 3,705 | 1,085 |
Windfalls from share-based compensation | (227) | (366) | (141) |
Valuation allowance | 148 | 73 | 196 |
Other | 1,469 | 503 | 165 |
Total income tax provision | $ 30,410 | $ 21,116 | $ 4,825 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 8,441 | $ 579 |
Stock compensation | 3,037 | 2,739 |
Tax intangible assets | 939 | 1,118 |
Reserves and accruals | 3,845 | 3,480 |
Income tax credits | 5 | 0 |
Allowance for uncollectible accounts | 1,887 | 786 |
Total deferred tax asset | 18,154 | 8,702 |
Less: valuation allowance | 726 | 579 |
Net deferred tax asset | 17,428 | 8,123 |
Deferred tax liabilities: | ||
Prepaids | (1,068) | (1,063) |
Unrealized gain on investment | (3,122) | 0 |
Depreciation and amortization | (70,393) | (38,186) |
Total deferred tax liability | (74,583) | (39,249) |
Net deferred tax liability | $ (57,155) | $ (31,126) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 2,226 | $ 2,799 |
Additions based on current year's tax positions | 33 | 31 |
Net changes based on prior year's tax positions | (13) | (604) |
Ending balance | $ 2,246 | $ 2,226 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Nov. 14, 2022 | Sep. 21, 2022 | Feb. 01, 2021 | Sep. 10, 2022 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 257,675 | 562,760 | ||||
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] | ||||||
Award vesting period | 3 years | |||||
Granted (in shares) | 147,623 | |||||
Shares expected to vest (in shares) | 147,623 | |||||
Equal installment vesting percent | 0.33% | |||||
Performance-based vesting percentage | 0.67% | |||||
Restricted Stock | Mr. Recatto's | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 180 days | |||||
Vesting percentage | 0% | 50% | ||||
Restricted Stock | Mr. Recatto's | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 25% | |||||
Restricted Stock | Mr. Recatto's | Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 50% | |||||
Time Based Restricted Stock | Mr. Recatto's | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 90 days | 90 days | ||||
Granted (in shares) | 500,000 | |||||
Vesting threshold (in dollars per share) | $ 5 | |||||
Shares vested upon achievement of share price threshold (in shares) | 0 | |||||
Compensation expense | $ 2,000 | $ 1,000 | ||||
Unrecognized expense | $ 1,800 | |||||
Risk free rate | 0.29% | |||||
Expected dividend yield | 0% | |||||
Expected volatility rate | 53.07% | |||||
Grant of restricted stock | $ 500 | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance Period | 3 years |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock Compensation/Awards (Details) - Restricted Stock - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||
Nov. 30, 2022 | Apr. 30, 2022 | Feb. 28, 2022 | Apr. 30, 2021 | Feb. 28, 2021 | Apr. 30, 2020 | Feb. 29, 2020 | May 31, 2019 | Apr. 30, 2018 | Feb. 28, 2018 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
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 | $ 0 | $ 566 | ||||||||||
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 | 380 | 1,540 | 970 | ||||||||||
Unrecognized expense | 0 | 380 | |||||||||||
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 | 0 | 36 | 203 | ||||||||||
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 | 87 | 101 | 43 | ||||||||||
Unrecognized expense | 0 | 87 | |||||||||||
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 | 0 | 285 | ||||||||||
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 | 2,044 | 1,619 | 0 | ||||||||||
Unrecognized expense | 1,837 | 3,881 | |||||||||||
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 | 215 | 183 | 0 | ||||||||||
Unrecognized expense | 223 | 448 | |||||||||||
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 | 0 | 332 | 0 | ||||||||||
Unrecognized expense | 0 | 0 | |||||||||||
February, 2022 | Members of Management | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted shares granted (in shares) | 75,355 | ||||||||||||
Compensation Expense | 502 | 0 | 0 | ||||||||||
Unrecognized expense | 1,015 | 0 | |||||||||||
April, 2022 | Board of Directors | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted shares granted (in shares) | 18,064 | ||||||||||||
Compensation Expense | 482 | 0 | 0 | ||||||||||
Unrecognized expense | 0 | 0 | |||||||||||
November, 2022 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted shares granted (in shares) | 147,623 | ||||||||||||
Compensation Expense | 135 | 0 | $ 0 | ||||||||||
Unrecognized expense | $ 2,863 | $ 0 |
Share-based Compensation - Re_2
Share-based Compensation - Restricted Stock Vesting Schedule by Percentage (Details) - $ / shares | 12 Months Ended | ||
Feb. 01, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested (in shares) | 107,772 | 115,006 | |
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% | 50% | |
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% | ||
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% | ||
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% | ||
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% | ||
Vested (in shares) | 500,000 |
Share-based Compensation - Re_3
Share-based Compensation - Restricted Stock Rollforward (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Number of Shares | ||
Nonvested shares outstanding, beginning (in shares) | 723,983 | 646,634 |
Granted (in shares) | 257,675 | 562,760 |
Vested (in shares) | (107,772) | (115,006) |
Forfeited (in shares) | (145,193) | (370,405) |
Nonvested shares outstanding, ending (in shares) | 728,693 | 723,983 |
Weighted Average Grant-Date Fair Value Per Share | ||
Nonvested shares outstanding, beginning (in dollars per share) | $ 21.83 | $ 18.28 |
Granted (in dollars per share) | 28.47 | 22.45 |
Vested (in dollars per share) | 23.05 | 20.58 |
Forfeited (in dollars per share) | 23.48 | 15.52 |
Nonvested shares outstanding, ending (in dollars per share) | $ 24.35 | $ 21.83 |
Share-based Compensation - Empl
Share-based Compensation - Employee Stock Purchase Plan (Details) - ESPP - Employee Stock | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Eligibility service requirement (in hours) | 20 hours |
Discounted purchase price, percent | 95% |
Offering period (in months) | 3 months |
Employee payroll deductions, percent | 10% |
Employee maximum annual contribution | $ | $ 25,000 |
Employee stock purchase plan, shares available (in shares) | 41,283 |
Shares purchased during the year (in shares) | 19,062 |
Employee stock purchase plan, weighted average fair value per share (in dollars per share) | $ / shares | $ 29.58 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Earnings Per Share [Abstract] | |||
Net income | $ 84,759 | $ 60,948 | $ 11,937 |
Weighted average basic shares outstanding (in shares) | 23,544 | 23,419 | 23,286 |
Dilutive shares for share–based compensation plans (in shares) | 135 | 138 | 167 |
Weighted average diluted shares outstanding (in shares) | 23,679 | 23,557 | 23,453 |
Net income per share: basic (in dollars per share) | $ 3.60 | $ 2.60 | $ 0.51 |
Net income per share: diluted (in dollars per share) | $ 3.58 | $ 2.59 | $ 0.51 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured on Recurring Basis (Details) $ in Millions | 1 Months Ended |
Dec. 31, 2022 USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Investment gain in operating income | $ 12.2 |
Recurring | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Investments at fair value | 15.2 |
Recurring | Quoted prices in active markets (Level 1) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Investments at fair value | 0 |
Recurring | Significant other observable inputs (Level 2) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Investments at fair value | 0 |
Recurring | Significant unobservable inputs (Level 3) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Investments at fair value | 15.2 |
Recurring | Significant unobservable inputs (Level 3) | Retriev | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Investments at fair value | $ 3 |
Fair Value Measurements - Gains
Fair Value Measurements - Gains And Losses On Assets Measured At Fair Value On A Recurring Basis (Details) - Recurring - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 0 | $ 0 |
Transfers in | 3 | 0 |
Unrealized gain | 12.2 | 0 |
Ending balance | $ 15.2 | $ 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating income | Operating income |
Other (Income) Expense - Net (D
Other (Income) Expense - Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Other Income and Expenses [Abstract] | |||
Other (income) - net | $ 12,011 | $ 988 | $ 5,365 |