Hostess Brands (TWNK) 10-Q 3 Aug 22 2022 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2022	Aug. 01, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-37540
Entity Registrant Name	HOSTESS BRANDS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-4168492
Entity Address, Address Line One	7905 Quivira Road
Entity Address, City or Town	Lenexa,
Entity Address, State or Province	KS
Entity Address, Postal Zip Code	66215
City Area Code	816
Local Phone Number	701-4600
Title of 12(b) Security	Class A Common Stock, Par Value of $0.0001 per share
Trading Symbol	TWNK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		136,496,962
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001644406
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 206,831	$ 249,159
Short-term investments	20,918	0
Accounts receivable, net	178,769	148,180
Inventories	60,809	52,813
Prepaids and other current assets	10,540	10,564
Total current assets	477,867	460,716
Property and equipment, net	359,444	335,305
Intangible assets, net	1,932,636	1,944,392
Goodwill	706,615	706,615
Other assets, net	52,645	19,283
Total assets	3,529,207	3,466,311
Current liabilities:
Long-term debt and lease obligations payable within one year	14,009	14,170
Tax receivable agreement payments payable within one year	11,100	11,600
Accounts payable	84,147	68,104
Customer trade allowances	60,668	52,746
Accrued expenses and other current liabilities	42,079	47,009
Total current liabilities	212,003	193,629
Long-term debt and lease obligations	1,092,797	1,099,975
Tax receivable agreement obligations	125,452	134,265
Deferred tax liability	336,587	317,847
Other long-term liabilities	1,635	1,605
Total liabilities	1,768,474	1,747,321
Commitments and Contingencies (Note 9)
Class A common stock, $0.0001 par value, 200,000,000 shares authorized, 142,546,549 shares issued and 136,486,712 shares outstanding as of June 30, 2022 and 142,031,329 shares issued and 138,278,573 shares outstanding as of December 31, 2021	14	14
Additional paid in capital	1,304,970	1,303,254
Accumulated other comprehensive income (loss)	22,993	(506)
Retained earnings	540,434	475,400
Treasury stock	(107,678)	(59,172)
Stockholders’ equity	1,760,733	1,718,990
Total liabilities and stockholders’ equity	$ 3,529,207	$ 3,466,311

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	200,000,000	200,000,000
Common stock, issued (in shares)	142,546,549	142,031,329
Common stock, outstanding (in shares)	136,486,712	138,278,573

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Net revenue	$ 340,472	$ 291,485	$ 672,523	$ 556,906
Cost of goods sold	227,772	186,379	444,199	356,281
Gross profit	112,700	105,106	228,324	200,625
Operating costs and expenses:
Advertising and marketing	15,587	13,144	27,537	24,925
Selling	10,137	9,454	19,914	18,084
General and administrative	30,127	23,504	59,799	45,689
Amortization of customer relationships	5,878	5,878	11,756	11,756
Total operating costs and expenses	61,729	51,980	119,006	100,454
Operating income	50,971	53,126	109,318	100,171
Other expense (income):
Interest expense, net	9,741	9,954	19,407	19,971
Change in fair value of warrant liabilities	0	531	0	455
Other expense (income)	(507)	1,067	(71)	1,430
Total other expense	9,234	11,552	19,336	21,856
Income before income taxes	41,737	41,574	89,982	78,315
Income tax expense	11,261	11,727	24,948	21,736
Net income	$ 30,476	$ 29,847	$ 65,034	$ 56,579
Earnings per Class A share:
Basic (in usd per share)	$ 0.22	$ 0.23	$ 0.47	$ 0.43
Diluted (in usd per share)	$ 0.22	$ 0.21	$ 0.47	$ 0.41
Weighted-average shares outstanding:
Basic (in shares)	137,909,156	131,354,059	138,255,803	131,096,686
Diluted (in shares)	138,958,242	138,925,489	139,263,303	138,026,854

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 30,476	$ 29,847	$ 65,034	$ 56,579
Other comprehensive income:
Unrealized gain (loss) on interest rate swap and foreign currency contracts designated as a cash flow hedge	6,327	(1,810)	29,983	5,251
Reclassification into net income	823	1,152	1,885	2,479
Income tax expense	(1,877)	175	(8,369)	(2,051)
Comprehensive income	$ 35,749	$ 29,364	$ 88,533	$ 62,258

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock
Beginning Balance (in shares) at Dec. 31, 2020		130,347,000
Beginning balance at Dec. 31, 2020	$ 1,620,725	$ 13	$ 1,281,018	$ (10,407)	$ 356,101	$ (6,000)
Treasury Stock, Beginning Balance (in shares) at Dec. 31, 2020						444,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	32,894			6,162	26,732
Share-based compensation (in shares)		146,000
Share-based compensation	2,723		2,723
Exercise of employee stock options (in shares)		20,000
Exercise of employee stock options	262		262
Payment of taxes for employee stock awards	(843)		(843)
Exercise of public warrants (in shares)		672,000
Exercise of public warrants	7,722		7,722
Ending Balance (in shares) at Mar. 31, 2021		131,185,000
Ending balance at Mar. 31, 2021	1,663,483	$ 13	1,290,882	(4,245)	382,833	$ (6,000)
Treasury Stock, Ending Balance (in shares) at Mar. 31, 2021						444,000
Beginning Balance (in shares) at Dec. 31, 2020		130,347,000
Beginning balance at Dec. 31, 2020	1,620,725	$ 13	1,281,018	(10,407)	356,101	$ (6,000)
Treasury Stock, Beginning Balance (in shares) at Dec. 31, 2020						444,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	62,258
Ending Balance (in shares) at Jun. 30, 2021		130,460,000
Ending balance at Jun. 30, 2021	1,682,944	$ 13	1,297,670	(4,728)	412,680	$ (22,691)
Treasury Stock, Ending Balance (in shares) at Jun. 30, 2021						1,620,000
Beginning Balance (in shares) at Mar. 31, 2021		131,185,000
Beginning balance at Mar. 31, 2021	1,663,483	$ 13	1,290,882	(4,245)	382,833	$ (6,000)
Treasury Stock, Beginning Balance (in shares) at Mar. 31, 2021						444,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	29,364			(483)	29,847
Share-based compensation (in shares)		22,000
Share-based compensation	1,640		1,640
Exercise of employee stock options (in shares)		220,000
Exercise of employee stock options	3,135		3,135
Payment of taxes for employee stock awards	(392)		(392)
Exercise of public warrants (in shares)		209,000
Exercise of public warrants	2,405		2,405
Repurchase of Common Stock (in shares)		1,176,000				1,176,000
Repurchase of Common Stock	(16,691)					$ (16,691)
Ending Balance (in shares) at Jun. 30, 2021		130,460,000
Ending balance at Jun. 30, 2021	$ 1,682,944	$ 13	1,297,670	(4,728)	412,680	$ (22,691)
Treasury Stock, Ending Balance (in shares) at Jun. 30, 2021						1,620,000
Beginning Balance (in shares) at Dec. 31, 2021	138,278,573	138,279,000
Beginning balance at Dec. 31, 2021	$ 1,718,990	$ 14	1,303,254	(506)	475,400	$ (59,172)
Treasury Stock, Beginning Balance (in shares) at Dec. 31, 2021						3,753,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	52,784			18,226	34,558
Share-based compensation (in shares)		350,000
Share-based compensation	2,339		2,339
Exercise of employee stock options (in shares)		105,000
Exercise of employee stock options	1,662		1,662
Payment of taxes for employee stock awards	(5,216)		(5,216)
Repurchase of Common Stock (in shares)		459,000				459,000
Repurchase of Common Stock	(9,680)					$ (9,680)
Ending Balance (in shares) at Mar. 31, 2022		138,275,000
Ending balance at Mar. 31, 2022	$ 1,760,879	$ 14	1,302,039	17,720	509,958	$ (68,852)
Treasury Stock, Ending Balance (in shares) at Mar. 31, 2022						4,212,000
Beginning Balance (in shares) at Dec. 31, 2021	138,278,573	138,279,000
Beginning balance at Dec. 31, 2021	$ 1,718,990	$ 14	1,303,254	(506)	475,400	$ (59,172)
Treasury Stock, Beginning Balance (in shares) at Dec. 31, 2021						3,753,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	$ 88,533
Ending Balance (in shares) at Jun. 30, 2022	136,486,712	136,487,000
Ending balance at Jun. 30, 2022	$ 1,760,733	$ 14	1,304,970	22,993	540,434	$ (107,678)
Treasury Stock, Ending Balance (in shares) at Jun. 30, 2022						6,060,000
Beginning Balance (in shares) at Mar. 31, 2022		138,275,000
Beginning balance at Mar. 31, 2022	1,760,879	$ 14	1,302,039	17,720	509,958	$ (68,852)
Treasury Stock, Beginning Balance (in shares) at Mar. 31, 2022						4,212,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	35,749			5,273	30,476
Share-based compensation (in shares)		23,000
Share-based compensation	2,648		2,648
Exercise of employee stock options (in shares)		37,000
Exercise of employee stock options	579		579
Payment of taxes for employee stock awards	(296)		(296)
Repurchase of Common Stock (in shares)		1,848,000				1,848,000
Repurchase of Common Stock	$ (38,826)					$ (38,826)
Ending Balance (in shares) at Jun. 30, 2022	136,486,712	136,487,000
Ending balance at Jun. 30, 2022	$ 1,760,733	$ 14	$ 1,304,970	$ 22,993	$ 540,434	$ (107,678)
Treasury Stock, Ending Balance (in shares) at Jun. 30, 2022						6,060,000

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities
Net income	$ 65,034	$ 56,579
Depreciation and amortization	27,951	25,223
Debt discount amortization	615	621
Change in fair value of warrant liabilities	0	455
Unrealized foreign exchange losses (gains)	(217)	73
Non-cash lease expense	247	659
Share-based compensation	4,987	4,363
Deferred taxes	10,374	13,932
Change in operating assets and liabilities:
Accounts receivable	(30,600)	(23,194)
Inventories	(7,996)	(2,816)
Prepaids and other current assets	(131)	8,844
Accounts payable and accrued expenses	8,967	1,735
Customer trade allowances	7,934	827
Net cash provided by operating activities	87,165	87,301
Investing activities
Purchases of property and equipment	(36,302)	(20,051)
Acquisition of short-term investments	(20,918)	0
Acquisition and development of software assets	(5,607)	(2,129)
Net cash used in investing activities	(62,827)	(22,180)
Financing activities
Repayments of long-term debt and lease obligations	(5,584)	(5,584)
Repurchase of common stock	(48,506)	(16,691)
Tax payments related to issuance of shares to employees	(5,512)	(1,235)
Cash received from exercise of options and warrants	2,241	13,524
Payments on tax receivable agreement	(9,313)	(9,270)
Net cash provided by (used in) financing activities	(66,674)	(19,256)
Effect of exchange rate changes on cash and cash equivalents	8	(92)
Net increase (decrease) in cash and cash equivalents	(42,328)	45,773
Cash and cash equivalents at beginning of period	249,159	173,034
Cash and cash equivalents at end of period	206,831	218,807
Cash paid during the period for:
Interest, net of amounts capitalized	18,599	19,451
Net taxes paid (refunded)	11,489	(1,506)
Supplemental disclosure of non-cash investing:
Accrued capital expenditures	$ 6,358	$ 5,046

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Descr i ption of Business Hostess Brands, Inc. is a Delaware corporation headquartered in Lenexa, Kansas. The condensed consolidated financial statements include the accounts of Hostess Brands, Inc. and its subsidiaries (collectively, the “Company”). The Company is a leading sweet snacks company focused on developing, manufacturing, marketing, selling and distributing snacks in the U.S. under the Hostess® brands and in North America under theVoortman® brands. The Company produces a variety of new and classic treats including iconic Hostess® Donettes®, Twinkies®, CupCakes, Ding Dongs® and Zingers®, as well as a variety of Voortman® branded cookies and wafers. Basis of Presentation The Company’s operations are conducted through wholly-owned operating subsidiaries. The condensed consolidated financial statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). The results of operations for any quarter or a partial fiscal year period are not necessarily indicative of the results to be expected for other periods or the full fiscal year. For the periods presented, the Company has one reportable segment. Adoption of New Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. ASU No. 2020-04 is elective and effective as of March 12, 2020 through December 31, 2022. Once elected, this ASU must be applied prospectively for all eligible contract modifications. The Company will adopt Topic 848 when its relevant contracts are modified upon transition to alternative reference rates. The Company does not expect the adoption of Topic 848 to have a material impact on its consolidated financial statements. Principles of Consolidation All intercompany balances and transactions related to activity between the Company and its wholly-owned subsidiaries have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities at the date of the financial statements and for the reported amounts of revenues and expenses during the reporting period. Held-to-Maturity Debt Securities The Company classifies its investments in debt securities where it has positive intent and ability to hold until maturity as held-to-maturity. As of June 30, 2022, the Company’s held-to-maturity investments included $55.6 million of commercial paper and $17.0 million of U.S. treasury securities classified as cash and cash equivalents and $12.9 million of U.S. treasury securities and $8.0 million of U.S. agency bonds classified as short-term investments on the condensed consolidated balance sheet. As of December 31, 2021, the Company had no held-to-maturity investments. Held-to-maturity debt securities are recorded at amortized cost, which approximates fair value, and realized gains or losses are reported in interest expense, net on the condensed consolidated statements of operations. For the three and six months ended June 30, 2022, the Company recognized less than $0.1 million in realized gains and losses. The Company’s held-to-maturity investments are classified as Level 2 in the fair value hierarchy because they are valued using inputs other than quoted prices, which are directly or indirectly observable in the market, including prices for similar assets in active markets as well as quoted prices for identical or similar assets in markets that are not active. Accounts Receivable Accounts receivable represents amounts invoiced to customers for performance obligations which have been satisfied. As of June 30, 2022 and December 31, 2021, the Company’s accounts receivable were $178.8 million and $148.2 million, respectively, which have been reduced by an allowance for damages occurring during shipment, quality claims and doubtful accounts in the amount of $4.3 million and $3.0 million for the periods ending June 30, 2022 and December 31, 2021, respectively. The allowance for doubtful accounts represents the Company’s estimate of expected credit losses related to trade receivables. To estimate the allowance for doubtful accounts, the Company leverages information on historical losses, current conditions, and reasonable and supportable forecasts of future conditions. Account balances are written off against the allowance when the Company deems the amount is uncollectible. Inventories Inventories are stated at the lower of cost or net-realizable value on a first-in first-out basis. Abnormal amounts of idle facility expense, freight, handling costs, and wasted material (spoilage) are expensed in the period they are incurred. The components of inventories are as follows : (In thousands) June 30, December 31, Ingredients and packaging $ 29,286 $ 22,607 Finished goods 27,570 26,988 Inventory in transit to customers 3,953 3,218 $ 60,809 $ 52,813 Capitalized Interest The Company capitalizes a portion of the interest on its term loan (see Note 4. Debt and Lease Obligations) related to certain property and equipment during its construction period. The capitalized interest is recorded as part of the asset to which it relates and depreciated over the asset’s estimated useful life. The Company capitalized interest of $0.2 million during the three and six months ended June 30, 2022. No interest was capitalized during the three and six months ended June 30, 2021. Capitalized interest is included in property and equipment, net on the condensed consolidated balance sheets. Software Costs Capitalized software is included in other assets in the condensed consolidated balance sheets in the amount of $18.3 million and $14.7 million as of June 30, 2022 and December 31, 2021, respectively. Capitalized software costs are amortized over their estimated useful life of up to five years commencing when such assets are ready for their intended use. Software amortization expense included in general and administrative expense in the condensed consolidated statements of operations was $1.0 million and $2.1 million for the three and six months ended June 30, 2022, compared to $1.0 million and $1.9 million for the three and six months ended June 30, 2021, respectively. Disaggregation of Revenue Net revenue consists of sales of packaged food products primarily within the Sweet Baked Goods (“SBG”) category in the United States, as well as in the Cookie category in the United States and Canada. The following tables disaggregate revenue by geographical market and category. Three Months Ended June 30, 2022 ( In thousands ) Sweet Baked Goods Cookies Total United States $ 303,437 $ 32,348 $ 335,785 Canada — 4,687 4,687 $ 303,437 $ 37,035 $ 340,472 Three Months Ended June 30, 2021 ( In thousands ) Sweet Baked Goods Cookies Total United States $ 262,491 $ 24,407 $ 286,898 Canada — 4,587 4,587 $ 262,491 $ 28,994 $ 291,485 Six Months Ended June 30, 2022 ( In thousands ) Sweet Baked Goods Cookies Total United States $ 599,809 $ 63,264 $ 663,073 Canada — 9,450 9,450 $ 599,809 $ 72,714 $ 672,523 Six Months Ended June 30, 2021 ( In thousands ) Sweet Baked Goods Cookies Total United States $ 500,191 $ 48,210 $ 548,401 Canada — 8,505 8,505 $ 500,191 $ 56,715 $ 556,906 Concentrations

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consists of the following: (In thousands) June 30, December 31, Land and buildings $ 73,729 $ 70,692 Right of use assets, operating 32,192 32,192 Machinery and equipment 301,313 299,071 Construction in progress 59,486 26,027 466,720 427,982 Less accumulated depreciation and amortization (107,276) (92,677) $ 359,444 $ 335,305 Depreciation expense was $7.7 million and $14.1 million for the three and six months ended June 30, 2022, compared to $5.7 million and $11.5 million for the three and six months ended June 30, 2021, respectively.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities Included in accrued expenses and other current liabilities are the following: (In thousands) June 30, December 31, Payroll, vacation and other compensation $ 8,704 $ 7,791 Incentive compensation 14,706 21,172 Accrued interest 5,295 4,828 Interest rate swap and foreign currency contracts 157 2,042 Other 13,217 11,176 $ 42,079 $ 47,009

Debt and Lease Obligations

Debt and Lease Obligations	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Debt and Lease Obligations	Debt and Lease Obligations A summary of the carrying value of the debt and lease obligations are as follows: (In thousands) June 30, December 31, Term loan (3.6% as of June 30, 2022) Principal $ 1,086,013 $ 1,091,596 Unamortized debt premium and issuance costs (3,380) (3,679) 1,082,633 1,087,917 Lease obligations 24,173 26,228 Total debt and lease obligations 1,106,806 1,114,145 Less: Current portion of long term debt and lease obligations (14,009) (14,170) Long-term portion $ 1,092,797 $ 1,099,975 At June 30, 2022, minimum debt repayments under the term loan are due as follows: ( In thousands ) 2022 $ 5,584 2023 11,167 2024 11,167 2025 1,058,095 Leases The Company has entered into operating leases for certain properties which expire at various times through 2026. The Company determines if an arrangement is a lease at inception. At June 30, 2022 and December 31, 2021, right of use assets related to operating leases are included in property and equipment, net on the condensed consolidated balance sheets (see Note 2. Property and Equipment). As of June 30, 2022 and 2021, the Company has no outstanding financing leases. Lease liabilities for operating leases are included in the current and non-current portions of long-term debt and lease obligations on the condensed consolidated balance sheets. The table below shows the composition of lease expense: Three Months Ended Six Months Ended (In thousands) June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Operating lease expense $ 1,585 $ 1,771 $ 3,188 $ 3,424 Short-term lease expense 461 379 834 582 Variable lease expense 391 385 773 742 $ 2,437 $ 2,535 $ 4,795 $ 4,748

Derivative Instruments

Derivative Instruments	6 Months Ended
	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments Interest Rate Swap and Foreign Currency Contracts The Company entered into interest rate swap contracts with counterparties to make a series of payments based on fixed rates ranging from 1.11% to 2.06% in addition to the term loan margin of 2.25% and receive a series of payments based on the greater of LIBOR or 0.75%. Both the fixed and floating payment streams are based on the June 30, 2022 notional amount of $700 million, outstanding through August 2025. The Company entered into these transactions to reduce its exposure to changes in cash flows associated with its variable rate debt and has designated these derivatives as cash flow hedges. At June 30, 2022, the interest on the Company’s variable rate debt hedged by these contracts is effectively fixed at rates ranging from 3.36% to 4.31%. To reduce the effect of fluctuations in Canadian dollar (“CAD”) denominated expenses relative to their U.S. dollar equivalents originating from its Canadian operations, the Company entered into CAD purchase contracts. The contracts provide for the Company to sell a total of $13.0 million USD for $16.5 million CAD at varying defined settlement dates through June 2023. The Company has designated these contracts as cash flow hedges. A summary of the fair value of interest rate and foreign currency instruments is as follows: (In thousands) June 30, December 31, Asset derivatives Location Interest rate swap contracts (1) Other non-current assets $ 31,925 $ 1,803 Liability derivatives Location Interest rate swap contracts (1) Accrued expenses $ — $ 1,798 Foreign currency contracts (2) Accrued expenses 157 244 $ 157 $ 2,042 (1) The fair values of interest rate swap contracts are measured on a recurring basis by netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves (Level 2). (2) The fair values of foreign currency contracts are measured at each reporting period by comparison to available market information on similar contracts (Level 2). A summary of the gains and losses related to interest rate and foreign currency instruments in the condensed consolidated statements of operations is as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, June 30, June 30, Loss on derivative contracts designated as cash flow hedges Location Interest rate swap contracts Interest expense, net $ 823 $ 1,152 $ 1,885 $ 2,479

Earnings per Share

Earnings per Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share Basic earnings per share is calculated by dividing net income for the period by the weighted average number of shares of Class A common stock outstanding for the period excluding non-vested share-based awards. In computing diluted earnings per share, basic earnings per share is adjusted for the assumed issuance of all applicable potentially dilutive share-based awards including RSUs and stock options as well as public and private placement warrants. Below are basic and diluted net income per share: Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Numerator: Net income (in thousands) $ 30,476 $ 29,847 $ 65,034 $ 56,579 Denominator: Weighted-average Class A shares outstanding - basic 137,909,156 131,354,059 138,255,803 131,096,686 Dilutive effect of warrants — 6,867,024 — 6,319,296 Dilutive effect of RSUs 559,426 555,050 522,424 486,250 Dilutive effect of stock options 489,660 149,356 485,076 124,622 Weighted-average shares outstanding - diluted 138,958,242 138,925,489 139,263,303 138,026,854 Net income per Class A share - basic $ 0.22 $ 0.23 $ 0.47 $ 0.43 Net income per Class A share - diluted $ 0.22 $ 0.21 $ 0.47 $ 0.41 For warrants that are liability-classified, during periods when the impact would be dilutive, the Company assumes share settlement of the instruments as of the beginning of the reporting period and adjusts the numerator to remove the change in fair value of the warrant liability and adjusts the denominator to include the dilutive shares calculated using the treasury stock method. All warrants were exercised or expired as of December 31, 2021.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company is subject to U.S. federal, state and local income taxes as well as Canadian income tax on its controlled foreign subsidiary. The income tax provision is determined based on the estimated full year effective tax rate, adjusted for infrequent or unusual items, which are recognized on a discrete basis in the period they occur. The Company’s estimated annual effective tax rate is 27.2% prior to taking into account any discrete items.

Tax Receivable Agreement Obliga

Tax Receivable Agreement Obligations	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Tax Receivable Agreement Obligations	Tax Receivable Agreement Obligations The following table summarizes activity related to the tax receivable agreement for the six months ended June 30, 2022: (In thousands) Balance December 31, 2021 $ 145,865 Payments (9,313) Balance June 30, 2022 $ 136,552 As of June 30, 2022 the future expected payments under the tax receivable agreement are as follows: (In thousands) 2022 $ 2,300 2023 10,300 2024 10,100 2025 9,400 2026 9,600 Thereafter 94,852

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Liabilities related to legal proceedings are recorded when it is probable that a liability has been incurred and the associated amount can be reasonably estimated. Where the estimated amount of loss is within a range of amounts and no amount within the range is a better estimate than any other amount, the minimum amount is accrued. As additional information becomes available, potential liabilities are reassessed and the estimates revised, if necessary. Any accrued liabilities are subject to change in the future based on new developments in each matter, or changes in circumstances, which could have a material effect on the Company’s financial condition and results of operations. In December 2020, the Company asserted claims for indemnification against the sellers under the terms of the Share Purchase Agreement pursuant to which the Company acquired Voortman. The Company’s claims were for an aggregate of approximately $90 million CAD in damages arising out of alleged breaches by the sellers of certain representations, warranties and covenants contained in such agreement relating to periods prior to the closing of the acquisition. The Company also submitted claims relating to these alleged breaches under the representation and warranty insurance policy (“RWI”) it purchased in connection with the acquisition. In June 2022, the RWI insurers agreed to pay the Company $42.5 million CAD (the RWI coverage limit) related to these breaches. The Company expects to realize the proceeds as a gain in its condensed consolidated statement of operations when they are received in the third quarter of 2022. The Company, togethe r with the RWI insurers, now intends to pursue claims against the sellers. Although the Company strongly believes that its claims against the sellers are meritorious, no assurance can be given as to whether the Company will recover all, or any part, of the amounts it pursues directly against the sellers.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company’s operations are conducted through wholly-owned operating subsidiaries. The condensed consolidated financial statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). The results of operations for any quarter or a partial fiscal year period are not necessarily indicative of the results to be expected for other periods or the full fiscal year. For the periods presented, the Company has one reportable segment.
Adoption of New Accounting Standards	Adoption of New Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. ASU No. 2020-04 is elective and effective as of March 12, 2020 through December 31, 2022. Once elected, this ASU must be applied prospectively for all eligible contract modifications. The Company will adopt Topic 848 when its relevant contracts are modified upon transition to alternative reference rates. The Company does not expect the adoption of Topic 848 to have a material impact on its consolidated financial statements.
Principles of Consolidation	Principles of ConsolidationAll intercompany balances and transactions related to activity between the Company and its wholly-owned subsidiaries have been eliminated in consolidation.
Use of Estimates	Use of EstimatesThe preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities at the date of the financial statements and for the reported amounts of revenues and expenses during the reporting period.
Held-to-Maturity Debt Securities	Held-to-Maturity Debt Securities The Company classifies its investments in debt securities where it has positive intent and ability to hold until maturity as held-to-maturity. As of June 30, 2022, the Company’s held-to-maturity investments included $55.6 million of commercial paper and $17.0 million of U.S. treasury securities classified as cash and cash equivalents and $12.9 million of U.S. treasury securities and $8.0 million of U.S. agency bonds classified as short-term investments on the condensed consolidated balance sheet. As of December 31, 2021, the Company had no held-to-maturity investments. Held-to-maturity debt securities are recorded at amortized cost, which approximates fair value, and realized gains or losses are reported in interest expense, net on the condensed consolidated statements of operations. For the three and six months ended June 30, 2022, the Company recognized less than $0.1 million in realized gains and losses. The Company’s held-to-maturity investments are classified as Level 2 in the fair value hierarchy because they are valued using inputs other than quoted prices, which are directly or indirectly observable in the market, including prices for similar assets in active markets as well as quoted prices for identical or similar assets in markets that are not active.
Accounts Receivable	Accounts Receivable Accounts receivable represents amounts invoiced to customers for performance obligations which have been satisfied. As of June 30, 2022 and December 31, 2021, the Company’s accounts receivable were $178.8 million and $148.2 million, respectively, which have been reduced by an allowance for damages occurring during shipment, quality claims and doubtful accounts in the amount of $4.3 million and $3.0 million for the periods ending June 30, 2022 and December 31, 2021, respectively. The allowance for doubtful accounts represents the Company’s estimate of expected credit losses related to trade receivables. To estimate the allowance for doubtful accounts, the Company leverages information on historical losses, current conditions, and reasonable and supportable forecasts of future conditions. Account balances are written off against the allowance when the Company deems the amount is uncollectible.
Inventories	Inventories Inventories are stated at the lower of cost or net-realizable value on a first-in first-out basis. Abnormal amounts of idle facility expense, freight, handling costs, and wasted material (spoilage) are expensed in the period they are incurred.
Capitalized Interest	Capitalized Interest The Company capitalizes a portion of the interest on its term loan (see Note 4. Debt and Lease Obligations) related to certain property and equipment during its construction period. The capitalized interest is recorded as part of the asset to which it relates and depreciated over the asset’s estimated useful life. The Company capitalized interest of $0.2 million during the three and six months ended June 30, 2022. No interest was capitalized during the three and six months ended June 30, 2021. Capitalized interest is included in property and equipment, net on the condensed consolidated balance sheets.
Software Costs	Software Costs Capitalized software is included in other assets in the condensed consolidated balance sheets in the amount of $18.3 million and $14.7 million as of June 30, 2022 and December 31, 2021, respectively. Capitalized software costs are amortized over their estimated useful life of up to five years commencing when such assets are ready for their intended use. Software amortization expense included in general and administrative expense in the condensed consolidated statements of operations was $1.0 million and $2.1 million for the three and six months ended June 30, 2022, compared to $1.0 million and $1.9 million for the three and six months ended June 30, 2021, respectively.
Disaggregation of Revenue	Disaggregation of RevenueNet revenue consists of sales of packaged food products primarily within the Sweet Baked Goods (“SBG”) category in the United States, as well as in the Cookie category in the United States and Canada.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Components of Inventories	The components of inventories are as follows : (In thousands) June 30, December 31, Ingredients and packaging $ 29,286 $ 22,607 Finished goods 27,570 26,988 Inventory in transit to customers 3,953 3,218 $ 60,809 $ 52,813
Disaggregation of Revenue	The following tables disaggregate revenue by geographical market and category. Three Months Ended June 30, 2022 ( In thousands ) Sweet Baked Goods Cookies Total United States $ 303,437 $ 32,348 $ 335,785 Canada — 4,687 4,687 $ 303,437 $ 37,035 $ 340,472 Three Months Ended June 30, 2021 ( In thousands ) Sweet Baked Goods Cookies Total United States $ 262,491 $ 24,407 $ 286,898 Canada — 4,587 4,587 $ 262,491 $ 28,994 $ 291,485 Six Months Ended June 30, 2022 ( In thousands ) Sweet Baked Goods Cookies Total United States $ 599,809 $ 63,264 $ 663,073 Canada — 9,450 9,450 $ 599,809 $ 72,714 $ 672,523 Six Months Ended June 30, 2021 ( In thousands ) Sweet Baked Goods Cookies Total United States $ 500,191 $ 48,210 $ 548,401 Canada — 8,505 8,505 $ 500,191 $ 56,715 $ 556,906

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consists of the following: (In thousands) June 30, December 31, Land and buildings $ 73,729 $ 70,692 Right of use assets, operating 32,192 32,192 Machinery and equipment 301,313 299,071 Construction in progress 59,486 26,027 466,720 427,982 Less accumulated depreciation and amortization (107,276) (92,677) $ 359,444 $ 335,305

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Included in accrued expenses and other current liabilities are the following: (In thousands) June 30, December 31, Payroll, vacation and other compensation $ 8,704 $ 7,791 Incentive compensation 14,706 21,172 Accrued interest 5,295 4,828 Interest rate swap and foreign currency contracts 157 2,042 Other 13,217 11,176 $ 42,079 $ 47,009

Debt and Lease Obligations (Tab

Debt and Lease Obligations (Tables)	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Summary of Debt and Lease Obligation	A summary of the carrying value of the debt and lease obligations are as follows: (In thousands) June 30, December 31, Term loan (3.6% as of June 30, 2022) Principal $ 1,086,013 $ 1,091,596 Unamortized debt premium and issuance costs (3,380) (3,679) 1,082,633 1,087,917 Lease obligations 24,173 26,228 Total debt and lease obligations 1,106,806 1,114,145 Less: Current portion of long term debt and lease obligations (14,009) (14,170) Long-term portion $ 1,092,797 $ 1,099,975
Schedule of Maturities of Long-term Debt	At June 30, 2022, minimum debt repayments under the term loan are due as follows: ( In thousands ) 2022 $ 5,584 2023 11,167 2024 11,167 2025 1,058,095
Composition of Lease Expenses	The table below shows the composition of lease expense: Three Months Ended Six Months Ended (In thousands) June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Operating lease expense $ 1,585 $ 1,771 $ 3,188 $ 3,424 Short-term lease expense 461 379 834 582 Variable lease expense 391 385 773 742 $ 2,437 $ 2,535 $ 4,795 $ 4,748

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of the Fair Value of Interest Rate and Foreign Currency Instruments	A summary of the fair value of interest rate and foreign currency instruments is as follows: (In thousands) June 30, December 31, Asset derivatives Location Interest rate swap contracts (1) Other non-current assets $ 31,925 $ 1,803 Liability derivatives Location Interest rate swap contracts (1) Accrued expenses $ — $ 1,798 Foreign currency contracts (2) Accrued expenses 157 244 $ 157 $ 2,042 (1) The fair values of interest rate swap contracts are measured on a recurring basis by netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves (Level 2). (2) The fair values of foreign currency contracts are measured at each reporting period by comparison to available market information on similar contracts (Level 2).
Summary of the Gains and Losses Related to Interest Rate and Foreign Currency Instruments in the Consolidated Statement of Operations	A summary of the gains and losses related to interest rate and foreign currency instruments in the condensed consolidated statements of operations is as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, June 30, June 30, Loss on derivative contracts designated as cash flow hedges Location Interest rate swap contracts Interest expense, net $ 823 $ 1,152 $ 1,885 $ 2,479

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Basic and Diluted Net Income Per Share	Below are basic and diluted net income per share: Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Numerator: Net income (in thousands) $ 30,476 $ 29,847 $ 65,034 $ 56,579 Denominator: Weighted-average Class A shares outstanding - basic 137,909,156 131,354,059 138,255,803 131,096,686 Dilutive effect of warrants — 6,867,024 — 6,319,296 Dilutive effect of RSUs 559,426 555,050 522,424 486,250 Dilutive effect of stock options 489,660 149,356 485,076 124,622 Weighted-average shares outstanding - diluted 138,958,242 138,925,489 139,263,303 138,026,854 Net income per Class A share - basic $ 0.22 $ 0.23 $ 0.47 $ 0.43 Net income per Class A share - diluted $ 0.22 $ 0.21 $ 0.47 $ 0.41

Tax Receivable Agreement Obli_2

Tax Receivable Agreement Obligations (Tables)	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Summary of Tax Receivable Agreement	The following table summarizes activity related to the tax receivable agreement for the six months ended June 30, 2022: (In thousands) Balance December 31, 2021 $ 145,865 Payments (9,313) Balance June 30, 2022 $ 136,552
Future Expected Payments Under Tax Receivable Arrangement	As of June 30, 2022 the future expected payments under the tax receivable agreement are as follows: (In thousands) 2022 $ 2,300 2023 10,300 2024 10,100 2025 9,400 2026 9,600 Thereafter 94,852

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2022 segment
Accounting Policies [Abstract]
Number of reportable segments	1

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Held-to-Maturity Debt Securities (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 206,831,000	$ 206,831,000	$ 249,159,000
Short-term investments	20,918,000	20,918,000	0
Cash and cash equivalents and short-term investments			$ 0
Realized gains (losses) (less than)	100,000	100,000
U.S. Treasury Securities
Cash and Cash Equivalents [Line Items]
Short-term investments	12,900,000	12,900,000
U.S. Agency Bonds
Cash and Cash Equivalents [Line Items]
Short-term investments	8,000,000	8,000,000
Commercial Paper
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	55,600,000	55,600,000
U.S. Treasury Securities
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 17,000,000	$ 17,000,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Accounts receivable	$ 178,769	$ 148,180
Reserve to cover allowances for damages occurring during shipment, quality claims and doubtful accounts	$ 4,300	$ 3,000

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Ingredients and packaging	$ 29,286	$ 22,607
Finished goods	27,570	26,988
Inventory in transit to customers	3,953	3,218
Inventories	$ 60,809	$ 52,813

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Capitalized Interest (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Accounting Policies [Abstract]
Interest costs capitalized	$ 200,000	$ 0	$ 200,000	$ 0

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Software Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Accounting Policies [Abstract]
Capitalized software	$ 18.3		$ 18.3		$ 14.7
Capitalized software, estimated useful life			5 years
Software amortization expense	$ 1	$ 1	$ 2.1	$ 1.9

Summary of Significant Accou_10

Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Net revenue	$ 340,472	$ 291,485	$ 672,523	$ 556,906
United States
Disaggregation of Revenue [Line Items]
Net revenue	335,785	286,898	663,073	548,401
Canada
Disaggregation of Revenue [Line Items]
Net revenue	4,687	4,587	9,450	8,505
Sweet Baked Goods
Disaggregation of Revenue [Line Items]
Net revenue	303,437	262,491	599,809	500,191
Sweet Baked Goods | United States
Disaggregation of Revenue [Line Items]
Net revenue	303,437	262,491	599,809	500,191
Sweet Baked Goods | Canada
Disaggregation of Revenue [Line Items]
Net revenue	0	0	0	0
Cookies
Disaggregation of Revenue [Line Items]
Net revenue	37,035	28,994	72,714	56,715
Cookies | United States
Disaggregation of Revenue [Line Items]
Net revenue	32,348	24,407	63,264	48,210
Cookies | Canada
Disaggregation of Revenue [Line Items]
Net revenue	$ 4,687	$ 4,587	$ 9,450	$ 8,505

Summary of Significant Accou_11

Summary of Significant Accounting Policies - Concentrations (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
One Customer | Customer concentration risk | Consolidated net revenues
Concentration Risk [Line Items]
Percentage of total net revenues for customer	20.10%	18.10%	20.40%	19.30%

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 466,720		$ 466,720		$ 427,982
Less accumulated depreciation and amortization	(107,276)		(107,276)		(92,677)
Property and equipment, net	359,444		359,444		335,305
Depreciation expense	7,700	$ 5,700	14,100	$ 11,500
Land and buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	73,729		73,729		70,692
Right of use assets, operating
Property, Plant and Equipment [Line Items]
Property and equipment, gross	32,192		32,192		32,192
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	301,313		301,313		299,071
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 59,486		$ 59,486		$ 26,027

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Payroll, vacation and other compensation	$ 8,704	$ 7,791
Incentive compensation	14,706	21,172
Accrued interest	5,295	4,828
Interest rate swap and foreign currency contracts	157	2,042
Other	13,217	11,176
Accrued expenses and other current liabilities	$ 42,079	$ 47,009

Debt and Lease Obligations - Su

Debt and Lease Obligations - Summary of Debt and Lease Obligation (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Lease obligations	$ 24,173	$ 26,228
Total debt and lease obligations	$ 1,106,806	$ 1,114,145
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Less: Current portion of long term debt and lease obligations	Less: Current portion of long term debt and lease obligations
Less: Current portion of long term debt and lease obligations	$ (14,009)	$ (14,170)
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term portion	Long-term portion
Long-term portion	$ 1,092,797	$ 1,099,975
Term Loan
Debt Instrument [Line Items]
Effective fixed interest rate on long-term debt (as a percent)	3.60%
Principal	$ 1,086,013	1,091,596
Unamortized debt premium and issuance costs	(3,380)	(3,679)
Long-term debt	$ 1,082,633	$ 1,087,917

Debt and Lease Obligations - Sc

Debt and Lease Obligations - Schedule of Maturities of Long-term Debt (Details) - Term Loan $ in Thousands	Jun. 30, 2022 USD ($)
Debt Instrument [Line Items]
2022	$ 5,584
2023	11,167
2024	11,167
2025	$ 1,058,095

Debt and Lease Obligations - Co

Debt and Lease Obligations - Composition of Lease Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Debt Disclosure [Abstract]
Operating lease expense	$ 1,585	$ 1,771	$ 3,188	$ 3,424
Short-term lease expense	461	379	834	582
Variable lease expense	391	385	773	742
Total lease cost	$ 2,437	$ 2,535	$ 4,795	$ 4,748

Derivative Instruments - Narrat

Derivative Instruments - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CAD ($)
Term Loan
Derivative [Line Items]
Effective fixed interest rate on long-term debt (as a percent)	3.60%	3.60%
LIBOR Floor | Term Loan
Derivative [Line Items]
Effective fixed interest rate on long-term debt	2.25%
Cash Flow Hedge
Derivative [Line Items]
Maximum contracted sales amount	$ 13,000,000	$ 16.5
Designated as Hedging Instrument | Interest rate swap contracts | Cash Flow Hedge
Derivative [Line Items]
Notional amount of derivative contracts	$ 700,000,000
Designated as Hedging Instrument | Interest rate swap contracts | Cash Flow Hedge | LIBOR
Derivative [Line Items]
Basis spread on variable rate (as a percent)	0.75%	0.75%
Designated as Hedging Instrument | Interest rate swap contracts | Cash Flow Hedge | Minimum
Derivative [Line Items]
Fixed interest rate	1.11%	1.11%
Effective fixed interest rate on long-term debt (as a percent)	3.36%	3.36%
Designated as Hedging Instrument | Interest rate swap contracts | Cash Flow Hedge | Maximum
Derivative [Line Items]
Fixed interest rate	2.06%	2.06%
Effective fixed interest rate on long-term debt (as a percent)	4.31%	4.31%

Derivative Instruments - Summar

Derivative Instruments - Summary of the Fair Value of Interest Rate and Foreign Currency Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Liability derivatives	$ 157	$ 2,042
Other non-current assets | Interest rate swap contracts
Derivative [Line Items]
Asset derivatives	31,925	1,803
Accrued expenses | Interest rate swap contracts
Derivative [Line Items]
Liability derivatives	0	1,798
Accrued expenses | Foreign currency contracts
Derivative [Line Items]
Liability derivatives	$ 157	$ 244

Derivative Instruments - Summ_2

Derivative Instruments - Summary of the Gains and Losses Related to Interest Rate and Foreign Currency Instruments in the Consolidated Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative [Line Items]
Loss on derivative contracts designated as cash flow hedges	$ 823	$ 1,152	$ 1,885	$ 2,479
Interest rate swap contracts | Interest expense, net
Derivative [Line Items]
Loss on derivative contracts designated as cash flow hedges	$ 823	$ 1,152	$ 1,885	$ 2,479

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net income (in thousands)	$ 30,476	$ 29,847	$ 65,034	$ 56,579
Denominator:
Weighted-average Class A shares outstanding - basic (in shares)	137,909,156	131,354,059	138,255,803	131,096,686
Dilutive effect of warrants (in shares)	0	6,867,024	0	6,319,296
Weighted-average shares outstanding - diluted (in shares)	138,958,242	138,925,489	139,263,303	138,026,854
Net income per Class A share - basic (in usd per share)	$ 0.22	$ 0.23	$ 0.47	$ 0.43
Net income per Class A share - dilutive (in usd per share)	$ 0.22	$ 0.21	$ 0.47	$ 0.41
RSUs
Denominator:
Dilutive effect of share-based payment arrangements (in shares)	559,426	555,050	522,424	486,250
Options
Denominator:
Dilutive effect of share-based payment arrangements (in shares)	489,660	149,356	485,076	124,622

Income Taxes (Details)

Income Taxes (Details)	12 Months Ended
	Dec. 31, 2022
Forecast
Income Tax Disclosure [Line Items]
Effective income tax rate (as a percent)	27.20%

Tax Receivable Agreement Obli_3

Tax Receivable Agreement Obligations - Summary of Activity (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Reconciliation Of Tax Receivable Agreement Liability [Roll Forward]
Beginning balance	$ 145,865
Payments	(9,313)
Ending balance	$ 136,552

Tax Receivable Agreement Obli_4

Tax Receivable Agreement Obligations - Future Expected Payments (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Income Tax Disclosure [Abstract]
2022	$ 2,300
2023	10,300
2024	10,100
2025	9,400
2026	9,600
Thereafter	$ 94,852

Commitments and Contingencies (

Commitments and Contingencies (Details) - CAD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Claim for damages owed to the company		$ 90
Gain contingency, unrecorded amount	$ 42.5