Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 29, 2019 | May 03, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 29, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ICHR | |
Entity Registrant Name | ICHOR HOLDINGS, LTD. | |
Entity Central Index Key | 0001652535 | |
Current Fiscal Year End Date | --12-27 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Ordinary Shares Outstanding | 22,379,401 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 29, 2019 | Dec. 28, 2018 |
Current assets: | ||
Cash | $ 31,611 | $ 43,834 |
Accounts receivable, net | 53,897 | 40,287 |
Inventories, net | 114,171 | 121,106 |
Prepaid expenses and other current assets | 5,936 | 6,348 |
Total current assets | 205,615 | 211,575 |
Property and equipment, net | 43,945 | 41,740 |
Operating lease right-of-use assets | 16,797 | |
Other noncurrent assets | 901 | 906 |
Deferred tax assets, net | 1,363 | 1,363 |
Intangible assets, net | 53,758 | 56,895 |
Goodwill | 173,010 | 173,010 |
Total assets | 495,389 | 485,489 |
Current liabilities: | ||
Accounts payable | 64,691 | 64,300 |
Accrued liabilities | 7,413 | 9,556 |
Other current liabilities | 4,488 | 5,148 |
Current portion of long-term debt | 8,750 | 8,750 |
Current portion of lease liabilities | 5,148 | |
Total current liabilities | 90,490 | 87,754 |
Long-term debt, less current portion, net | 184,954 | 192,117 |
Lease liabilities, less current portion | 12,062 | |
Deferred tax liabilities | 3,969 | 3,966 |
Other non-current liabilities | 2,234 | 3,326 |
Total liabilities | 293,709 | 287,163 |
Shareholders’ equity: | ||
Preferred shares ($0.0001 par value; 20,000,000 shares authorized; zero shares issued and outstanding) | ||
Ordinary shares ($0.0001 par value; 200,000,000 shares authorized; 22,370,129 and 22,234,508 shares outstanding, respectively; 26,807,568 and 26,574,037 shares issued, respectively) | 2 | 2 |
Additional paid in capital | 231,793 | 228,358 |
Treasury shares at cost (4,437,439 and 4,339,529 shares, respectively) | (91,578) | (89,979) |
Retained earnings | 61,463 | 59,945 |
Total shareholders’ equity | 201,680 | 198,326 |
Total liabilities and shareholders’ equity | $ 495,389 | $ 485,489 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 29, 2019 | Dec. 28, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred shares, par value | $ 0.0001 | $ 0.0001 |
Preferred shares, authorized | 20,000,000 | 20,000,000 |
Preferred shares, issued | 0 | 0 |
Preferred shares, outstanding | 0 | 0 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 200,000,000 | 200,000,000 |
Ordinary shares, issued | 26,807,568 | 26,574,037 |
Ordinary shares, outstanding | 22,370,129 | 22,234,508 |
Treasury shares | 4,437,439 | 4,339,529 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 137,831 | $ 258,029 |
Cost of sales | 117,608 | 215,430 |
Gross profit | 20,223 | 42,599 |
Operating expenses: | ||
Research and development | 2,391 | 2,452 |
Selling, general, and administrative | 11,758 | 15,711 |
Amortization of intangible assets | 3,137 | 3,879 |
Total operating expenses | 17,286 | 22,042 |
Operating income | 2,937 | 20,557 |
Interest expense | 2,768 | 2,504 |
Other expense, net | 24 | 241 |
Income before income taxes | 145 | 17,812 |
Income tax expense (benefit) | (1,373) | 1,091 |
Net income | $ 1,518 | $ 16,721 |
Net income per share Basic | $ 0.07 | $ 0.64 |
Net income per share Diluted | $ 0.07 | $ 0.63 |
Shares used to compute net income per share: | ||
Shares used to compute net income per share, Basic | 22,269,827 | 26,030,298 |
Shares used to compute net income per share, Diluted | 22,536,209 | 26,734,710 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Treasury Shares | Retained Earnings |
Balance at Dec. 29, 2017 | $ 216,762 | $ 3 | $ 214,697 | $ 2,062 | |
Balance, Shares at Dec. 29, 2017 | 25,892,162 | ||||
Ordinary shares issued from exercise of stock options | 3,232 | 3,232 | |||
Ordinary shares issued from exercise of stock options, shares | 325,969 | ||||
Ordinary shares issued from vesting of restricted share units, Shares | 50,423 | ||||
Ordinary shares issued from employee share purchase plan | 177 | 177 | |||
Ordinary shares issued from employee share purchase plan, shares | 10,781 | ||||
Repurchase of ordinary shares | (5,000) | $ (5,000) | |||
Repurchase of ordinary shares, shares | (195,750) | 195,750 | |||
Share-based compensation expense | 3,791 | 3,791 | |||
Net income | 16,721 | 16,721 | |||
Balance at Mar. 30, 2018 | 235,683 | $ 3 | 221,897 | $ (5,000) | 18,783 |
Balance, Shares at Mar. 30, 2018 | 26,083,585 | 195,750 | |||
Balance at Dec. 28, 2018 | 198,326 | $ 2 | 228,358 | $ (89,979) | 59,945 |
Balance, Shares at Dec. 28, 2018 | 22,234,508 | 4,339,529 | |||
Ordinary shares issued from exercise of stock options | 1,904 | 1,904 | |||
Ordinary shares issued from exercise of stock options, shares | 186,915 | ||||
Ordinary shares issued from vesting of restricted share units | (111) | (111) | |||
Ordinary shares issued from vesting of restricted share units, Shares | 24,115 | ||||
Ordinary shares issued from employee share purchase plan | 312 | 312 | |||
Ordinary shares issued from employee share purchase plan, shares | 22,501 | ||||
Repurchase of ordinary shares | $ (1,599) | $ (1,599) | |||
Repurchase of ordinary shares, shares | (97,910) | (97,910) | 97,910 | ||
Share-based compensation expense | $ 1,330 | 1,330 | |||
Net income | 1,518 | 1,518 | |||
Balance at Mar. 29, 2019 | $ 201,680 | $ 2 | $ 231,793 | $ (91,578) | $ 61,463 |
Balance, Shares at Mar. 29, 2019 | 22,370,129 | 4,437,439 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 1,518 | $ 16,721 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 5,210 | 5,752 |
Share-based compensation | 1,330 | 3,791 |
Deferred income taxes | 3 | (127) |
Amortization of debt issuance costs | 212 | 333 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | (13,610) | (26,350) |
Inventories | 6,935 | (10,470) |
Prepaid expenses and other assets | 1,357 | 370 |
Accounts payable | 895 | 8,731 |
Accrued liabilities | (1,994) | (974) |
Other liabilities | (2,279) | 1,439 |
Net cash used in operating activities | (423) | (784) |
Cash flows from investing activities: | ||
Capital expenditures | (4,782) | (3,668) |
Net cash used in investing activities | (4,782) | (3,668) |
Cash flows from financing activities: | ||
Issuance of ordinary shares under share-based compensation plans | 2,067 | 3,409 |
Employees' taxes paid upon vesting of restricted share units | (111) | |
Repurchase of ordinary shares | (1,599) | (5,000) |
Debt issuance and modification costs | (2,092) | |
Borrowings on revolving credit facility | 5,000 | 7,162 |
Repayments on revolving credit facility | (8,000) | |
Repayments on term loan | (4,375) | (4,535) |
Net cash used in financing activities | (7,018) | (1,056) |
Net decrease in cash | (12,223) | (5,508) |
Cash at beginning of year | 43,834 | 69,304 |
Cash at end of quarter | 31,611 | 63,796 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 3,255 | 1,297 |
Cash paid during the period for taxes | 107 | 230 |
Supplemental disclosures of non-cash activities: | ||
Capital expenditures included in accounts payable | $ 958 | $ 834 |
Basis of Presentation and Selec
Basis of Presentation and Selected Significant Accounting Policies | 3 Months Ended |
Mar. 29, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Selected Significant Accounting Policies | Note 1 – Basis of Presentation and Selected Significant Accounting Policies Basis of Presentation These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). All intercompany balances and transactions have been eliminated upon consolidation. All dollar figures presented in tables in the notes to consolidated financial statements are in thousands, except per share amounts. Year End We use a 52 or 53 week fiscal year ending on the last Friday in December. The three months ended March 29, 2019 and March 30, 2018 were both 13 weeks. References to the first quarter of 2019 and 2018 relate to the three month periods then ended . Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods presented. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from the estimates made by management. Significant estimates include the fair value of assets and liabilities acquired in acquisitions, estimated useful lives for long‑lived assets, allowance for doubtful accounts, inventory valuation, uncertain tax positions, fair value assigned to stock options granted, and impairment analysis for both definite‑lived intangible assets and goodwill. Revenue Recognition We recognize revenue when control of promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. This amount is recorded as net sales in our consolidated statements of operations. Transaction price – In most of our contracts, prices are generally determined by a customer-issued purchase order and generally remain fixed over the duration of the contract. Certain contracts contain variable consideration, including early-payment discounts and rebates. When a contract includes variable consideration, we evaluate the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, we include the variable consideration in the transaction price only to the extent that it is probable that a significant reversal will not occur. Variable consideration estimates are updated at each reporting date. Historically, we have not incurred significant costs to obtain a contract. All amounts billed to a customer relating to shipping and handling are classified as net sales, while all costs incurred by us for shipping and handling are classified as cost of sales. Performance obligations – Substantially all of our performance obligations pertain to promised goods (“products”), which are primarily comprised of fluid delivery subsystems, weldments, and other components. Most of our contracts contain a single performance obligation and are generally completed within twelve months. Product sales are recognized at a point-in-time, generally upon delivery, as such term is defined within the contract, as that is when control of the promised good has transferred. Products are covered by a standard assurance warranty, generally extended for a period of one to two years depending on the customer, which promises that delivered products conform to contract specifications. As such, we account for such warranties under ASC 460, Guarantees , and not as a separate performance obligation . Contract balances – Accounts receivable represents our unconditional right to receive consideration from our customers. Accounts receivable are carried at invoice price less an estimate for doubtful accounts and estimated payment discounts. Payment terms vary by customer but are generally due within 15‑60 days. Historically, we have not incurred significant payment issues with our customers. We had no significant contract assets or liabilities on our consolidated balance sheets in any of the periods presented Commitments and Contingencies We are periodically involved in legal actions and claims that arise as a result of events that occur in the normal course of operations. The ultimate resolution of these actions is not expected to have a material adverse effect on our financial position or results of operations. Accounting Pronouncements Recently Adopted In February 2016, the FASB issued ASU 2016‑02, Leases (Topic 842) , which consists of a comprehensive lease accounting standard. Under the new standard, assets and liabilities arising from most leases will be recognized on the balance sheet. Leases will be classified as either operating or financing, and the lease classification will determine whether expense is recognized on a straight-line basis (operating leases) or based on an effective interest method (financing leases). The standard also contains expanded disclosure requirements regarding the amounts, timing, and uncertainties of cash flows related to leasing activities. The new standard is effective for interim and annual periods beginning after December 15, 2018. In July 2018, the FASB issued ASU 2018‑11, Leases (Topic 842): Targeted Improvements , which provides an optional transition method allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We adopted and applied the lease standard as of December 29, 2018, the first day of fiscal year 2019, using this optional transition method. The new standard provides a number of practical expedients in transition. We elected the package of practical expedients, which permits us not to reassess our prior conclusions about lease identification, lease classification, and initial direct costs. We elected to not recognize short-term leases, those with an initial term of 12 months or less, on our consolidated balance sheets. The new standard had material effects on our consolidated financial statements. The most significant effects relate to the recognition of right-of-use (“ROU”) assets and lease liabilities on our balance sheet for our facilities operating leases and the new disclosure requirements about our leasing activities. Upon adoption, we recorded operating lease liabilities of $18.1 million, with an offsetting increase to operating lease ROU assets of $17.7 million in exchange for the liabilities assumed. We did not recognize a cumulative-effect adjustment to the opening balance of retained earnings, as there was no adjustment to be made as a result of our adoption and application of the standard. The standard did not have a significant impact on our consolidated statements of income or cash flows. In June 2018, the FASB issued ASU 2018‑07, Compensation-Stock Compensation (Topic 718): Improvements to Non-Employee Share-Based Payment Accounting . This standard is intended to reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees. ASU 2018‑07 expands the scope of ASC Topic 718, which currently only includes share-based payments issued to employees, to also include share-based payments issued to nonemployees for goods and services. We adopted ASU 2018‑07 on December 29, 2018, the first day of fiscal year 2019, which did not have a significant impact on our consolidated financial statements. |
Inventories
Inventories | 3 Months Ended |
Mar. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2 – Inventories Inventories consist of the following: March 29, 2019 December 28, 2018 Raw materials $ 80,257 $ 90,713 Work in process 21,260 20,852 Finished goods 20,655 17,233 Excess and obsolete adjustment (8,001 ) (7,692 ) Total inventories, net $ 114,171 $ 121,106 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 29, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 3 – Property and Equipment Property and equipment consist of the following: March 29, 2019 December 28, 2018 Machinery $ 29,701 $ 29,885 Leasehold improvements 16,816 15,333 Computer software, hardware, and equipment 5,195 4,884 Office furniture, fixtures and equipment 1,109 1,058 Vehicles 26 26 Construction-in-process 12,162 9,514 65,009 60,700 Less accumulated depreciation (21,064 ) (18,960 ) Total property and equipment, net $ 43,945 $ 41,740 Depreciation expense was $2.1 million and $1.9 million for the first quarter of 2019 and 2018, respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Mar. 29, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Note 4 – Intangible Assets and Goodwill Definite‑lived intangible assets consist of the following: March 29, 2019 Gross value Accumulated amortization Accumulated impairment charges Carrying amount Weighted average useful life Trademarks $ 9,690 $ (7,024 ) $ — $ 2,666 10.0 years Customer relationships 82,986 (34,138 ) — 48,848 7.8 years Developed technology 2,900 (656 ) — 2,244 10.0 years Total intangible assets $ 95,576 $ (41,818 ) $ — $ 53,758 December 28, 2018 Gross value Accumulated amortization Accumulated impairment charges Carrying amount Weighted average useful life Trademarks $ 9,690 $ (6,781 ) $ — $ 2,909 10.0 years Customer relationships 82,986 (31,308 ) — 51,678 7.8 years Developed technology 2,900 (592 ) — 2,308 10.0 years Total intangible assets $ 95,576 $ (38,681 ) $ — $ 56,895 |
Leases
Leases | 3 Months Ended |
Mar. 29, 2019 | |
Leases [Abstract] | |
Leases | Note 5 – Leases ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For purposes of calculating operating lease liabilities, we use the non-cancellable lease term, without consideration for renewal options. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We lease facilities under various non-cancellable operating leases expiring through 2024. In addition to base rental payments, we are generally responsible for our proportionate share of operating expenses, including facility maintenance, insurance, and property taxes. As these amounts are variable, they are not included in lease liabilities. As of March 29, 2019, we had no operating leases that had not yet commenced. The components of lease expense are as follows: Three Months Ended March 29, 2019 Operating lease cost $ 1,633 Supplemental cash flow information related to leases is as follows: Three Months Ended March 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,164 Right-of-use assets obtained in exchange for new operating lease liabilities $ — Weighted-average remaining lease term of operating leases 3.8 years Weighted-average discount rate of operating leases 4.5% Future minimum lease payments under non-cancelable leases as of March 29, 2019 are as follows: 2019 $ 3,924 2020 5,103 2021 4,586 2022 4,049 2023 1,127 Thereafter 122 Total future minimum lease payments 18,911 Less imputed interest (1,701 ) Total lease liabilities $ 17,210 Future minimum lease payments under non-cancelable leases as of December 28, 2018, as reported under previous guidance, are as follows: 2019 $ 4,910 2020 4,873 2021 4,356 2022 3,820 2023 1,103 Thereafter 120 Total future minimum lease payments 19,182 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 – Income Taxes Income tax information for the periods reported are as follows: Three Months Ended March 29, 2019 March 30, 2018 Income tax expense (benefit) $ (1,373 ) $ 1,091 Income before income taxes $ 145 $ 17,812 Effective income tax rate -946.9 % 6.1 % Our effective tax rate for the first quarter of 2019 differs from the statutory rate due to taxes on foreign income that differ from the U.S. tax rate, the release of certain tax reserves related to statute of limitation expirations and settlements, and excess tax benefits from share-based compensation. Our effective tax rate for the first quarter of 2018 differs from the statutory rate due to taxes on foreign income that differ from the U.S. tax rate, accrued withholding taxes, and excess tax benefits from share-based compensation. The ending balance for the unrecognized tax benefits for uncertain tax positions was approximately $1.8 million at March 29, 2019. The related interest and penalties were $zero and $0.4 million, respectively. The uncertain tax positions that are reasonably possible to decrease in the next twelve months are insignificant. As of March 29, 2019, we were not under examination by tax authorities. |
Employee Benefit Programs
Employee Benefit Programs | 3 Months Ended |
Mar. 29, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Programs | Note 7 – Employee Benefit Programs 401(k) Plan We sponsor a 401(k) plan available to employees of our U.S.‑based subsidiaries. Participants may make salary deferral contributions not to exceed 50% of a participant’s annual compensation or the maximum amount otherwise allowed by law. Eligible employees receive a discretionary matching contribution equal to 50% of a participant’s deferral, up to an annual maximum of 4% of a participant’s annual compensation. Matching contributions were $0.4 million and $0.5 million for the |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 29, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8 – Long-Term Debt Long‑term debt consists of the following: March 29, 2019 December 28, 2018 Term loan $ 166,250 $ 170,625 Revolving credit facility 31,162 34,162 Total principal amount of long-term debt 197,412 204,787 Less unamortized debt issuance costs (3,708 ) (3,920 ) Total long-term debt, net 193,704 200,867 Less current portion (8,750 ) (8,750 ) Total long-term debt, less current portion, net $ 184,954 $ 192,117 On February 15, 2018, we amended and restated our credit agreement, which replaced our existing credit facilities with a $175.0 million term loan and a $125.0 million revolving credit facility. The amendment reduced our borrowing rate, depending on our leverage ratio, and extended the maturity date. We incurred debt issuance costs of $2.1 million in connection with the amendment. The amendment did not meet the definition of an extinguishment and was accounted for as a debt modification. Interest is charged at either the Base Rate or the Eurodollar rate (as such terms are defined in the credit agreement) at our option, plus an applicable margin. The Base Rate is equal to the higher of i) the Prime Rate, ii) the Federal Funds Rate plus 0.5%, or iii) the Eurodollar Rate plus 1.00%. The Eurodollar rate is equal to LIBOR. The applicable margin on Base Rate and Eurodollar Rate loans is 0.75‑1.50% and 1.75‑2.50% per annum, respectively, depending on our leverage ratio. We are also charged a commitment fee of 0.20%-0.35% on the unused portion of our revolving credit facility. Base Rate interest payments and commitment fees are due quarterly. Eurodollar interest payments are due on the last day of the applicable interest period. At March 29, 2019, the term loan and revolving credit facility bore interest at the Eurodollar rate option of 4.80% and 4.66%, respectively Term loan principal payments of $2.2 million are due on a quarterly basis. The term loan and revolving credit facility mature on February 15, 2023 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 29, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Note 9 – Shareholders’ Equity Share Repurchase Program In February 2018, our board of directors authorized a share repurchase program up to $50.0 million under which we may repurchase our ordinary shares in the open market or through privately negotiated transactions, depending on market conditions and other factors. Ordinary shares repurchased are recorded as treasury shares using the cost method on a first-in, first-out basis. In August 2018, our board of directors authorized a $50.0 million increase to the share repurchase program. During the first quarter of 2019, we repurchased 97,910 ordinary shares for a total cost of $1.6 million at an average price of $16.34 per share. At March 29, 2019, $8.4 million remained available to repurchase ordinary shares under the repurchase program. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 29, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 10 – Share‑Based Compensation The 2016 Omnibus Incentive Plan (the “2016 Plan”) provides for grants of share‑based awards to employees, directors, and consultants. Awards may be in the form of options, tandem and non‑tandem stock appreciation rights, restricted share awards or restricted share units (“restricted shares”), performance awards, and other share‑based awards. Awards generally vest over four years, 25% on the first anniversary and quarterly thereafter. Upon vesting of restricted shares, employees may elect to have shares withheld to cover statutory minimum withholding taxes. Shares withheld are not reflected as an issuance of ordinary shares within our consolidated statements of shareholders’ equity, as the shares were never issued, and the associated tax payments are reflected as financing activities within our consolidated statements of cash flows. Share‑based compensation expense across all plans for stock options, restricted shares, and employee share purchase rights was $1.3 million and $3.8 million for the first quarter of 2019 and 2018, respectively. Stock Options The following table summarizes stock option activity: Number of Stock Options Time vesting Performance vesting Weighted average exercise price per share Weighted average remaining contractual term Aggregate intrinsic value (in thousands) Outstanding, December 28, 2018 1,706,441 65,908 $ 18.57 Granted — — $ — Exercised (186,915 ) — $ 10.19 Forfeited (56,875 ) — $ 23.78 Expired (7,000 ) — $ 25.41 Outstanding, March 29, 2019 1,455,651 65,908 $ 19.38 4.9 years $ 6,562 Exercisable, March 29, 2019 610,225 65,908 $ 15.90 3.9 years $ 4,949 Restricted Shares The following table summarizes restricted share activity: Number of Restricted Shares Time vesting Weighted average grant date fair value Unvested, December 28, 2018 192,300 $ 22.64 Granted 6,912 $ 21.68 Vested (29,453 ) $ 23.90 Forfeited — $ — Unvested, March 29, 2019 169,759 $ 22.38 Employee Share Purchase Plan The 2017 Employee Stock Purchase Plan (the “2017 ESPP”) grants employees the ability to designate a portion of their base-pay to purchase ordinary shares at a price equal to 85% of the fair market value of our ordinary shares on the first or last day of each 6 month purchase period. Purchase periods begin on January 1 or July 1 and end on June 30 or December 31, or the next business day if such date is not a business day. Shares are purchased on the last day of the purchase period. During the first quarter of 2019, 22,501 ordinary shares were purchased by eligible employees under the 2017 ESPP. As of March 29, 2019, 2.4 million ordinary shares remain available for purchase under the 2017 ESPP. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 29, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Note 11 – Segment Information Our Chief Operating Decision Maker, the Chief Executive Officer, reviews our results of operations on a consolidated level and executive staff is structured by function rather than by product category. Therefore, we operate in one operating segment. Key resources, decisions, and assessment of performance are also analyzed on a company‑wide level. Foreign operations are conducted primarily through our wholly owned subsidiaries in Singapore and Malaysia. Our principal markets include North America, Asia and, to a lesser degree, Europe. Sales by geographic area represent sales to unaffiliated customers. All information on sales by geographic area is based upon the location to which the products were shipped. The following table sets forth sales by geographic area: Three Months Ended March 29, 2019 March 30, 2018 United States of America $ 76,633 $ 162,240 Singapore 36,979 73,736 Europe 15,093 12,836 Other 9,126 9,217 Total net sales $ 137,831 $ 258,029 |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 29, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 12 – Earnings per Share The following table sets forth the computation of basic and diluted earnings per share and a reconciliation of the numerator and denominator used in the calculation: Three Months Ended March 29, 2019 March 30, 2018 Numerator: Net income $ 1,518 $ 16,721 Denominator: Basic weighted average ordinary shares outstanding 22,269,827 26,030,298 Dilutive effect of stock options 243,136 658,223 Dilutive effect of restricted shares 19,046 45,271 Dilutive effect of employee share purchase plan 4,200 918 Diluted weighted average ordinary shares outstanding 22,536,209 26,734,710 Earnings per share: Net income: Basic $ 0.07 $ 0.64 Diluted $ 0.07 $ 0.63 An aggregated total of 587,853 and 346,622, potential ordinary shares have been excluded from the computation of diluted net income per share for the |
Basis of Presentation and Sel_2
Basis of Presentation and Selected Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 29, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). All intercompany balances and transactions have been eliminated upon consolidation. All dollar figures presented in tables in the notes to consolidated financial statements are in thousands, except per share amounts. |
Year End | Year End We use a 52 or 53 week fiscal year ending on the last Friday in December. The three months ended March 29, 2019 and March 30, 2018 were both 13 weeks. References to the first quarter of 2019 and 2018 relate to the three month periods then ended . |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods presented. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from the estimates made by management. Significant estimates include the fair value of assets and liabilities acquired in acquisitions, estimated useful lives for long‑lived assets, allowance for doubtful accounts, inventory valuation, uncertain tax positions, fair value assigned to stock options granted, and impairment analysis for both definite‑lived intangible assets and goodwill. |
Revenue Recognition | Revenue Recognition We recognize revenue when control of promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. This amount is recorded as net sales in our consolidated statements of operations. Transaction price – In most of our contracts, prices are generally determined by a customer-issued purchase order and generally remain fixed over the duration of the contract. Certain contracts contain variable consideration, including early-payment discounts and rebates. When a contract includes variable consideration, we evaluate the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, we include the variable consideration in the transaction price only to the extent that it is probable that a significant reversal will not occur. Variable consideration estimates are updated at each reporting date. Historically, we have not incurred significant costs to obtain a contract. All amounts billed to a customer relating to shipping and handling are classified as net sales, while all costs incurred by us for shipping and handling are classified as cost of sales. Performance obligations – Substantially all of our performance obligations pertain to promised goods (“products”), which are primarily comprised of fluid delivery subsystems, weldments, and other components. Most of our contracts contain a single performance obligation and are generally completed within twelve months. Product sales are recognized at a point-in-time, generally upon delivery, as such term is defined within the contract, as that is when control of the promised good has transferred. Products are covered by a standard assurance warranty, generally extended for a period of one to two years depending on the customer, which promises that delivered products conform to contract specifications. As such, we account for such warranties under ASC 460, Guarantees , and not as a separate performance obligation . Contract balances – Accounts receivable represents our unconditional right to receive consideration from our customers. Accounts receivable are carried at invoice price less an estimate for doubtful accounts and estimated payment discounts. Payment terms vary by customer but are generally due within 15‑60 days. Historically, we have not incurred significant payment issues with our customers. We had no significant contract assets or liabilities on our consolidated balance sheets in any of the periods presented |
Commitments and Contingencies | Commitments and Contingencies We are periodically involved in legal actions and claims that arise as a result of events that occur in the normal course of operations. The ultimate resolution of these actions is not expected to have a material adverse effect on our financial position or results of operations. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In February 2016, the FASB issued ASU 2016‑02, Leases (Topic 842) , which consists of a comprehensive lease accounting standard. Under the new standard, assets and liabilities arising from most leases will be recognized on the balance sheet. Leases will be classified as either operating or financing, and the lease classification will determine whether expense is recognized on a straight-line basis (operating leases) or based on an effective interest method (financing leases). The standard also contains expanded disclosure requirements regarding the amounts, timing, and uncertainties of cash flows related to leasing activities. The new standard is effective for interim and annual periods beginning after December 15, 2018. In July 2018, the FASB issued ASU 2018‑11, Leases (Topic 842): Targeted Improvements , which provides an optional transition method allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We adopted and applied the lease standard as of December 29, 2018, the first day of fiscal year 2019, using this optional transition method. The new standard provides a number of practical expedients in transition. We elected the package of practical expedients, which permits us not to reassess our prior conclusions about lease identification, lease classification, and initial direct costs. We elected to not recognize short-term leases, those with an initial term of 12 months or less, on our consolidated balance sheets. The new standard had material effects on our consolidated financial statements. The most significant effects relate to the recognition of right-of-use (“ROU”) assets and lease liabilities on our balance sheet for our facilities operating leases and the new disclosure requirements about our leasing activities. Upon adoption, we recorded operating lease liabilities of $18.1 million, with an offsetting increase to operating lease ROU assets of $17.7 million in exchange for the liabilities assumed. We did not recognize a cumulative-effect adjustment to the opening balance of retained earnings, as there was no adjustment to be made as a result of our adoption and application of the standard. The standard did not have a significant impact on our consolidated statements of income or cash flows. In June 2018, the FASB issued ASU 2018‑07, Compensation-Stock Compensation (Topic 718): Improvements to Non-Employee Share-Based Payment Accounting . This standard is intended to reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees. ASU 2018‑07 expands the scope of ASC Topic 718, which currently only includes share-based payments issued to employees, to also include share-based payments issued to nonemployees for goods and services. We adopted ASU 2018‑07 on December 29, 2018, the first day of fiscal year 2019, which did not have a significant impact on our consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: March 29, 2019 December 28, 2018 Raw materials $ 80,257 $ 90,713 Work in process 21,260 20,852 Finished goods 20,655 17,233 Excess and obsolete adjustment (8,001 ) (7,692 ) Total inventories, net $ 114,171 $ 121,106 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following: March 29, 2019 December 28, 2018 Machinery $ 29,701 $ 29,885 Leasehold improvements 16,816 15,333 Computer software, hardware, and equipment 5,195 4,884 Office furniture, fixtures and equipment 1,109 1,058 Vehicles 26 26 Construction-in-process 12,162 9,514 65,009 60,700 Less accumulated depreciation (21,064 ) (18,960 ) Total property and equipment, net $ 43,945 $ 41,740 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Definite-Lived Intangible Assets | Definite‑lived intangible assets consist of the following: March 29, 2019 Gross value Accumulated amortization Accumulated impairment charges Carrying amount Weighted average useful life Trademarks $ 9,690 $ (7,024 ) $ — $ 2,666 10.0 years Customer relationships 82,986 (34,138 ) — 48,848 7.8 years Developed technology 2,900 (656 ) — 2,244 10.0 years Total intangible assets $ 95,576 $ (41,818 ) $ — $ 53,758 December 28, 2018 Gross value Accumulated amortization Accumulated impairment charges Carrying amount Weighted average useful life Trademarks $ 9,690 $ (6,781 ) $ — $ 2,909 10.0 years Customer relationships 82,986 (31,308 ) — 51,678 7.8 years Developed technology 2,900 (592 ) — 2,308 10.0 years Total intangible assets $ 95,576 $ (38,681 ) $ — $ 56,895 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense are as follows: Three Months Ended March 29, 2019 Operating lease cost $ 1,633 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Three Months Ended March 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,164 Right-of-use assets obtained in exchange for new operating lease liabilities $ — Weighted-average remaining lease term of operating leases 3.8 years Weighted-average discount rate of operating leases 4.5% |
Future Minimum Lease Payments Under Non-Cancelable Leases | Future minimum lease payments under non-cancelable leases as of March 29, 2019 are as follows: 2019 $ 3,924 2020 5,103 2021 4,586 2022 4,049 2023 1,127 Thereafter 122 Total future minimum lease payments 18,911 Less imputed interest (1,701 ) Total lease liabilities $ 17,210 |
Schedule of Future Minimum Lease Payments for Non-cancelable Leases Reported under Previous Guidance | Future minimum lease payments under non-cancelable leases as of December 28, 2018, as reported under previous guidance, are as follows: 2019 $ 4,910 2020 4,873 2021 4,356 2022 3,820 2023 1,103 Thereafter 120 Total future minimum lease payments 19,182 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes | Income tax information for the periods reported are as follows: Three Months Ended March 29, 2019 March 30, 2018 Income tax expense (benefit) $ (1,373 ) $ 1,091 Income before income taxes $ 145 $ 17,812 Effective income tax rate -946.9 % 6.1 % |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long‑term debt consists of the following: March 29, 2019 December 28, 2018 Term loan $ 166,250 $ 170,625 Revolving credit facility 31,162 34,162 Total principal amount of long-term debt 197,412 204,787 Less unamortized debt issuance costs (3,708 ) (3,920 ) Total long-term debt, net 193,704 200,867 Less current portion (8,750 ) (8,750 ) Total long-term debt, less current portion, net $ 184,954 $ 192,117 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity: Number of Stock Options Time vesting Performance vesting Weighted average exercise price per share Weighted average remaining contractual term Aggregate intrinsic value (in thousands) Outstanding, December 28, 2018 1,706,441 65,908 $ 18.57 Granted — — $ — Exercised (186,915 ) — $ 10.19 Forfeited (56,875 ) — $ 23.78 Expired (7,000 ) — $ 25.41 Outstanding, March 29, 2019 1,455,651 65,908 $ 19.38 4.9 years $ 6,562 Exercisable, March 29, 2019 610,225 65,908 $ 15.90 3.9 years $ 4,949 |
Schedule of Restricted Share Activity | The following table summarizes restricted share activity: Number of Restricted Shares Time vesting Weighted average grant date fair value Unvested, December 28, 2018 192,300 $ 22.64 Granted 6,912 $ 21.68 Vested (29,453 ) $ 23.90 Forfeited — $ — Unvested, March 29, 2019 169,759 $ 22.38 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Sales By Geographic Area | The following table sets forth sales by geographic area: Three Months Ended March 29, 2019 March 30, 2018 United States of America $ 76,633 $ 162,240 Singapore 36,979 73,736 Europe 15,093 12,836 Other 9,126 9,217 Total net sales $ 137,831 $ 258,029 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share and a reconciliation of the numerator and denominator used in the calculation: Three Months Ended March 29, 2019 March 30, 2018 Numerator: Net income $ 1,518 $ 16,721 Denominator: Basic weighted average ordinary shares outstanding 22,269,827 26,030,298 Dilutive effect of stock options 243,136 658,223 Dilutive effect of restricted shares 19,046 45,271 Dilutive effect of employee share purchase plan 4,200 918 Diluted weighted average ordinary shares outstanding 22,536,209 26,734,710 Earnings per share: Net income: Basic $ 0.07 $ 0.64 Diluted $ 0.07 $ 0.63 |
Basis of Presentation and Sel_3
Basis of Presentation and Selected Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2019 | Dec. 29, 2018 | |
Basis Of Presentation [Line Items] | ||
Operating lease, ROU assets | $ 16,797 | $ 17,700 |
Operating lease, lease liabilities | $ 17,210 | $ 18,100 |
Minimum | ||
Basis Of Presentation [Line Items] | ||
Extended product warranty period | 1 year | |
Payment terms, due period | 15 days | |
Maximum | ||
Basis Of Presentation [Line Items] | ||
Extended product warranty period | 2 years | |
Payment terms, due period | 60 days |
Basis of Presentation and Sel_4
Basis of Presentation and Selected Significant Accounting Policies - Additional Information (Details 1) | Mar. 29, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
Basis Of Presentation [Line Items] | |
Performance obligation satisfaction period | 12 months |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 29, 2019 | Dec. 28, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 80,257 | $ 90,713 |
Work in process | 21,260 | 20,852 |
Finished goods | 20,655 | 17,233 |
Excess and obsolete adjustment | (8,001) | (7,692) |
Total inventories, net | $ 114,171 | $ 121,106 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 29, 2019 | Dec. 28, 2018 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 65,009 | $ 60,700 |
Less accumulated depreciation | (21,064) | (18,960) |
Total property and equipment, net | 43,945 | 41,740 |
Machinery | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 29,701 | 29,885 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 16,816 | 15,333 |
Office Furniture, Fixtures and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,109 | 1,058 |
Vehicles | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 26 | 26 |
Construction-In-Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 12,162 | 9,514 |
Computer Software, Hardware and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 5,195 | $ 4,884 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 2.1 | $ 1.9 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule of Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 29, 2019 | Dec. 28, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross value | $ 95,576 | $ 95,576 |
Accumulated amortization | (41,818) | (38,681) |
Carrying amount | 53,758 | 56,895 |
Trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross value | 9,690 | 9,690 |
Accumulated amortization | (7,024) | (6,781) |
Carrying amount | $ 2,666 | $ 2,909 |
Trademarks | Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 10 years | 10 years |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross value | $ 82,986 | $ 82,986 |
Accumulated amortization | (34,138) | (31,308) |
Carrying amount | $ 48,848 | $ 51,678 |
Customer Relationships | Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 7 years 9 months 18 days | 7 years 9 months 18 days |
Developed Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross value | $ 2,900 | $ 2,900 |
Accumulated amortization | (656) | (592) |
Carrying amount | $ 2,244 | $ 2,308 |
Developed Technology | Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 10 years | 10 years |
Leases - Additional Information
Leases - Additional Information (Detail) | 3 Months Ended |
Mar. 29, 2019 | |
Leases [Abstract] | |
Non-cancellable net operating lease expiration year | 2024 |
Lessee, operating lease, not yet commenced, description | As of March 29, 2019, we had no operating leases that had not yet commenced |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) $ in Thousands | 3 Months Ended |
Mar. 29, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,633 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 3 Months Ended |
Mar. 29, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 1,164 |
Weighted-average remaining lease term of operating leases | 3 years 9 months 18 days |
Weighted-average discount rate of operating leases | 4.50% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Non-Cancelable Leases (Detail) - USD ($) $ in Thousands | Mar. 29, 2019 | Dec. 29, 2018 |
Leases [Abstract] | ||
2019 | $ 3,924 | |
2020 | 5,103 | |
2021 | 4,586 | |
2022 | 4,049 | |
2023 | 1,127 | |
Thereafter | 122 | |
Total future minimum lease payments | 18,911 | |
Less imputed interest | (1,701) | |
Total lease liabilities | $ 17,210 | $ 18,100 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Non-cancelable Leases Reported under Previous Guidance (Detail) $ in Thousands | Dec. 28, 2018USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2019 | $ 4,910 |
2020 | 4,873 |
2021 | 4,356 |
2022 | 3,820 |
2023 | 1,103 |
Thereafter | 120 |
Total future minimum lease payments | $ 19,182 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Components Of Income Tax Expense Benefit Continuing Operations [Abstract] | ||
Income tax expense (benefit) | $ (1,373) | $ 1,091 |
Income before income taxes | $ 145 | $ 17,812 |
Effective income tax rate | (946.90%) | 6.10% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | Mar. 29, 2019USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits for uncertain tax positions | $ 1.8 |
Unrecognized tax benefits for uncertain tax positions related interest | 0 |
Unrecognized tax benefits for uncertain tax positions related penalties | $ 0.4 |
Employee Benefit Programs - Add
Employee Benefit Programs - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of maximum annual contributions per employee | 50.00% | 50.00% |
Percentage of eligible employee receive discretionary matching contribution | 50.00% | 50.00% |
Employee matching contributions | $ 0.4 | $ 0.5 |
Maximum | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of maximum annual contributions per employee | 4.00% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 29, 2019 | Dec. 28, 2018 |
Line Of Credit Facility [Line Items] | ||
Total principal amount of long-term debt | $ 197,412 | $ 204,787 |
Less unamortized debt issuance costs | (3,708) | (3,920) |
Total long-term debt, net | 193,704 | 200,867 |
Less current portion | (8,750) | (8,750) |
Total long-term debt, less current portion, net | 184,954 | 192,117 |
Term Loan | ||
Line Of Credit Facility [Line Items] | ||
Total principal amount of long-term debt | 166,250 | 170,625 |
Revolving Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Total principal amount of long-term debt | $ 31,162 | $ 34,162 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | Feb. 15, 2018 | Mar. 29, 2019 | Dec. 28, 2018 |
Line Of Credit Facility [Line Items] | |||
Total principal amount of long-term debt | $ 197,412 | $ 204,787 | |
Term Loan | |||
Line Of Credit Facility [Line Items] | |||
Total principal amount of long-term debt | 166,250 | 170,625 | |
Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Total principal amount of long-term debt | $ 31,162 | $ 34,162 | |
Credit Agreement | |||
Line Of Credit Facility [Line Items] | |||
Debt issuance costs | $ 2,100 | ||
Description of interest rate | The Base Rate is equal to the higher of i) the Prime Rate, ii) the Federal Funds Rate plus 0.5%, or iii) the Eurodollar Rate plus 1.00%. The Eurodollar rate is equal to LIBOR. The applicable margin on Base Rate and Eurodollar Rate loans is 0.751.50% and 1.752.50% per annum, respectively, depending on our leverage ratio. | ||
Credit Agreement | Federal Funds Effective Rate | |||
Line Of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Credit Agreement | Eurodollar Rate | |||
Line Of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Frequency of interest payment | Last day of the applicable interest period | ||
Credit Agreement | Eurodollar Rate | Minimum | |||
Line Of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 1.75% | ||
Credit Agreement | Eurodollar Rate | Maximum | |||
Line Of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 2.50% | ||
Credit Agreement | Base Rate | |||
Line Of Credit Facility [Line Items] | |||
Frequency of interest payment | Quarterly | ||
Credit Agreement | Base Rate | Minimum | |||
Line Of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 0.75% | ||
Credit Agreement | Base Rate | Maximum | |||
Line Of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 1.50% | ||
Credit Agreement | Term Loan | |||
Line Of Credit Facility [Line Items] | |||
Total principal amount of long-term debt | $ 175,000 | ||
Credit facility, periodic principal payments | $ 2,200 | ||
Principal payments maturity date | Feb. 15, 2023 | ||
Credit facility, frequency of principal payments | quarterly | ||
Credit Agreement | Term Loan | Eurodollar Rate | |||
Line Of Credit Facility [Line Items] | |||
Interest rate | 4.80% | ||
Credit Agreement | Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Total principal amount of long-term debt | $ 125,000 | ||
Principal payments maturity date | Feb. 15, 2023 | ||
Credit Agreement | Revolving Credit Facility | Minimum | |||
Line Of Credit Facility [Line Items] | |||
Percentage of commitment fee on unused portion of revolver | 0.20% | ||
Credit Agreement | Revolving Credit Facility | Maximum | |||
Line Of Credit Facility [Line Items] | |||
Percentage of commitment fee on unused portion of revolver | 0.35% | ||
Credit Agreement | Revolving Credit Facility | Eurodollar Rate | |||
Line Of Credit Facility [Line Items] | |||
Interest rate | 4.66% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Aug. 31, 2018 | Mar. 29, 2019 | Mar. 30, 2018 | Feb. 28, 2018 | |
Equity [Abstract] | ||||
Share repurchase program, authorized amount | $ 50,000 | |||
Increase in stock repurchase program authorized amount | $ 50,000 | |||
Shares repurchased during period, shares | 97,910 | |||
Shares repurchased during period, value | $ 1,599 | $ 5,000 | ||
Average price of repurchased ordinary shares | $ 16.34 | |||
Ordinary shares available for repurchase | $ 8,400 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense for stock options, restricted shares and employee share purchase rights across all plans | $ 1.3 | $ 3.8 |
The 2016 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award vesting description | Awards generally vest over four years, 25% on the first anniversary and quarterly thereafter. | |
Awards vesting period | 4 years | |
Awards vesting percentage | 25.00% | |
2017 Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Purchase price equal to percentage of fair market value of ordinary shares | 85.00% | |
Ordinary shares purchased by eligible employees during the period | 22,501 | |
Ordinary shares remain available for purchase | 2,400,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Stock Option Activity (Details) - Stock Options $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 29, 2019USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average exercise price per share, Outstanding, Beginning Balance | $ / shares | $ 18.57 |
Weighted average exercise price per share, Exercised | $ / shares | 10.19 |
Weighted average exercise price per share, Forfeited | $ / shares | 23.78 |
Weighted average exercise price per share, Expired | $ / shares | 25.41 |
Weighted average exercise price per share, Outstanding, Ending Balance | $ / shares | 19.38 |
Weighted average exercise price per share, Exercisable | $ / shares | $ 15.90 |
Weighted average remaining contractual term, Outstanding | 4 years 10 months 24 days |
Weighted average remaining contractual term, Exercisable | 3 years 10 months 24 days |
Aggregate intrinsic value, Outstanding | $ | $ 6,562 |
Aggregate intrinsic value, Exercisable | $ | $ 4,949 |
Time Vesting | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Stock Options, Outstanding, Beginning Balance | 1,706,441 |
Number of Stock Options, Exercised | (186,915) |
Number of Stock Options, Forfeited | (56,875) |
Number of Stock Options, Expired | (7,000) |
Number of Stock Options, Outstanding, Ending Balance | 1,455,651 |
Number of Stock Options, Exercisable | 610,225 |
Performance Vesting | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Stock Options, Outstanding, Beginning Balance | 65,908 |
Number of Stock Options, Exercised | 0 |
Number of Stock Options, Expired | 0 |
Number of Stock Options, Outstanding, Ending Balance | 65,908 |
Number of Stock Options, Exercisable | 65,908 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Restricted Share Activity (Details) | 3 Months Ended |
Mar. 29, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average grant date fair value, Unvested, Beginning Balance | $ / shares | $ 22.64 |
Weighted average grant date fair value, Granted | $ / shares | 21.68 |
Weighted average grant date fair value, Vested | $ / shares | 23.90 |
Weighted average grant date fair value, Forfeited | $ / shares | 0 |
Weighted average grant date fair value, Unvested, Ending Balance | $ / shares | $ 22.38 |
Time Vesting Restricted Shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Shares, Unvested, Beginning Balance | shares | 192,300 |
Number of Restricted Shares, Granted | shares | 6,912 |
Number of Restricted Shares, Vested | shares | (29,453) |
Number of Restricted Shares, Forfeited | shares | 0 |
Number of Restricted Shares, Unvested, Ending Balance | shares | 169,759 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 29, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment Information - Schedule
Segment Information - Schedule of Sales By Geographic Area (Including Sales from Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Total net sales | $ 137,831 | $ 258,029 |
United States of America | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 76,633 | 162,240 |
Singapore | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 36,979 | 73,736 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 15,093 | 12,836 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total net sales | $ 9,126 | $ 9,217 |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Earnings Per Share Basic And Diluted [Line Items] | ||
Net income | $ 1,518 | $ 16,721 |
Basic weighted average ordinary shares outstanding | 22,269,827 | 26,030,298 |
Diluted weighted average ordinary shares outstanding | 22,536,209 | 26,734,710 |
Net income: | ||
Basic | $ 0.07 | $ 0.64 |
Diluted | $ 0.07 | $ 0.63 |
Employee Stock Option | ||
Earnings Per Share Basic And Diluted [Line Items] | ||
Dilutive effect of shares | 243,136 | 658,223 |
Restricted Stock | ||
Earnings Per Share Basic And Diluted [Line Items] | ||
Dilutive effect of shares | 19,046 | 45,271 |
2017 Employee Stock Purchase Plan | ||
Earnings Per Share Basic And Diluted [Line Items] | ||
Dilutive effect of shares | 4,200 | 918 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Potential ordinary shares excluded from computation of diluted net income (loss) per share attributable to ordinary shareholders | 587,853 | 346,622 |