Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 03, 2022 | May 11, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 3, 2022 | |
Document Transition Report | false | |
Entity Registrant Name | Utz Brands, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-38686 | |
Entity Tax Identification Number | 85-2751850 | |
Entity Address, Address Line One | 900 High Street | |
Entity Address, City or Town | Hanover | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 17331 | |
City Area Code | 717 | |
Local Phone Number | 637-6644 | |
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | UTZ | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001739566 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-26 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 80,728,900 | |
Class V Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 59,349,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 03, 2022 | Jan. 02, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 14,899 | $ 41,898 |
Accounts receivable, less allowance of $1,302 and $1,391, respectively | 148,432 | 131,388 |
Inventories | 93,778 | 79,517 |
Prepaid expenses and other assets | 17,042 | 18,395 |
Current portion of notes receivable | 6,401 | 6,706 |
Total current assets | 280,552 | 277,904 |
Non-current Assets | ||
Property, plant and equipment, net | 298,656 | 303,807 |
Goodwill | 915,490 | 915,438 |
Intangible assets, net | 1,130,208 | 1,142,509 |
Non-current portion of notes receivable | 19,614 | 20,725 |
Other assets | 78,505 | 55,963 |
Total non-current assets | 2,442,473 | 2,438,442 |
Total assets | 2,723,025 | 2,716,346 |
Current Liabilities | ||
Current portion of term debt | 11,414 | 11,414 |
Current portion of other notes payable | 13,057 | 9,957 |
Accounts payable | 104,967 | 95,369 |
Accrued expenses and other | 53,356 | 71,280 |
Total current liabilities | 182,794 | 188,020 |
Non-current portion of term debt and revolving credit facility | 852,722 | 830,548 |
Non-current portion of other notes payable | 23,129 | 24,709 |
Non-current accrued expenses and other | 56,109 | 55,838 |
Non-current warrant liability | 44,280 | 46,224 |
Deferred tax liability | 136,837 | 136,334 |
Total non-current liabilities | 1,113,077 | 1,093,653 |
Total liabilities | 1,295,871 | 1,281,673 |
Commitments and Contingencies | ||
Equity | ||
Additional paid-in capital | 909,144 | 912,574 |
Accumulated deficit | (254,168) | (236,598) |
Accumulated other comprehensive income | 19,558 | 3,715 |
Total stockholders' equity | 674,548 | 679,705 |
Noncontrolling interest | 752,606 | 754,968 |
Total equity | 1,427,154 | 1,434,673 |
Total liabilities and equity | 2,723,025 | 2,716,346 |
Class A Common Stock | ||
Equity | ||
Common stock | 8 | 8 |
Class V Common Stock | ||
Equity | ||
Common stock | $ 6 | $ 6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 03, 2022 | Jan. 02, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, less allowance | $ 1,302 | $ 1,391 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock issued (in shares) | 78,597,175 | 77,644,645 |
Common stock outstanding (in shares) | 78,597,175 | 77,644,645 |
Class V Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 61,249,000 | 61,249,000 |
Common stock issued (in shares) | 59,349,000 | 59,349,000 |
Common stock outstanding (in shares) | 59,349,000 | 59,349,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 340,767 | $ 269,182 |
Cost of goods sold | 236,960 | 173,941 |
Gross profit | 103,807 | 95,241 |
Selling, distribution, and administrative expenses | ||
Selling and distribution | 88,110 | 56,728 |
Administrative | 38,551 | 29,933 |
Total selling, distribution, and administrative expenses | 126,661 | 86,661 |
Gain on sale of assets, net | 367 | 719 |
(Loss) income from operations | (22,487) | 9,299 |
Other (expense) income | ||
Interest expense | (9,103) | (10,861) |
Other income | 520 | 718 |
(Gain) loss on remeasurement of warrant liability | 1,944 | (21,501) |
Other (expense) income, net | (6,639) | (31,644) |
Loss before taxes | (29,126) | (22,345) |
Income tax expense | 2,772 | 1,004 |
Net loss | (31,898) | (23,349) |
Net loss attributable to noncontrolling interest | 14,328 | 820 |
Net loss attributable to controlling interest | $ (17,570) | $ (22,529) |
Earnings (loss) per Class A Common stock: (in dollars) | ||
Basic (in dollars per share) | $ (0.22) | $ (0.30) |
Diluted (in dollars per share) | $ (0.22) | $ (0.30) |
Weighted-average shares of Class A Common stock outstanding | ||
Basic (in shares) | 78,572,404 | 75,927,005 |
Diluted (in shares) | 78,572,404 | 75,927,005 |
Net loss | $ (31,898) | $ (23,349) |
Other comprehensive income: | ||
Change in fair value of interest rate swap | 27,809 | 822 |
Comprehensive loss | (4,089) | (22,527) |
Net comprehensive loss attributable to noncontrolling interest | 2,362 | 0 |
Net comprehensive loss attributable to controlling interest | $ (1,727) | $ (22,527) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Parent | Common StockClass A Common Stock | Common StockClass V Common Stock | Additional Paid-in Capital | Accumulated (Deficit) | Accumulated Other Comprehensive Income | Non-controlling Interest |
Beginning balance (in shares) at Jan. 03, 2021 | 71,094,714 | 60,349,000 | ||||||
Beginning balance at Jan. 03, 2021 | $ 1,384,902 | $ 552,908 | $ 7 | $ 6 | $ 793,461 | $ (241,490) | $ 924 | $ 831,994 |
Conversion of warrants (in shares) | 4,976,717 | |||||||
Conversion of warrants | 111,945 | 144,659 | 144,659 | (32,714) | ||||
Share-based compensation (in shares) | 410,402 | |||||||
Share-based compensation | 2,883 | 2,883 | 2,883 | |||||
Net loss | (23,349) | (22,529) | (22,529) | (820) | ||||
Other comprehensive income | 822 | 822 | 822 | |||||
Ending balance (in shares) at Apr. 04, 2021 | 76,481,833 | 60,349,000 | ||||||
Ending balance at Apr. 04, 2021 | 1,477,203 | 678,743 | $ 7 | $ 6 | 941,003 | (264,019) | 1,746 | 798,460 |
Beginning balance (in shares) at Jan. 02, 2022 | 77,644,645 | 59,349,000 | ||||||
Beginning balance at Jan. 02, 2022 | 1,434,673 | 679,705 | $ 8 | $ 6 | 912,574 | (236,598) | 3,715 | 754,968 |
Payments of tax withholding requirements for employee stock awards | (6,217) | (6,217) | (6,217) | |||||
Share-based compensation (in shares) | 952,530 | |||||||
Share-based compensation | 1,379 | 1,379 | 1,379 | |||||
Tax impact arising from share issuance | 1,408 | 1,408 | 1,408 | |||||
Net loss | (31,898) | (17,570) | (17,570) | (14,328) | ||||
Other comprehensive income | 27,809 | 15,843 | 15,843 | 11,966 | ||||
Ending balance (in shares) at Apr. 03, 2022 | 78,597,175 | 59,349,000 | ||||||
Ending balance at Apr. 03, 2022 | $ 1,427,154 | $ 674,548 | $ 8 | $ 6 | $ 909,144 | $ (254,168) | $ 19,558 | $ 752,606 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (31,898) | $ (23,349) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Impairment and other charges | 3,319 | 0 |
Depreciation and amortization | 22,121 | 19,407 |
(Gain) loss on remeasurement of warrant liability | (1,944) | 21,501 |
Gain on sale of assets | (367) | (719) |
Share-based compensation | 1,379 | 2,883 |
Deferred taxes | 1,912 | 1,061 |
Deferred financing costs | 341 | 2,870 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (17,044) | (11,176) |
Inventories | (14,261) | (7,040) |
Prepaid expenses and other assets | (26) | 866 |
Accounts payable and accrued expenses and other | 464 | (19,487) |
Net cash used in operating activities | (36,004) | (13,183) |
Cash flows from investing activities | ||
Acquisitions, net of cash acquired | (75) | (25,189) |
Purchases of property and equipment | (8,137) | (2,134) |
Purchases of intangibles | (1,200) | |
Proceeds from sale of property and equipment | 1,138 | 391 |
Proceeds from sale of routes | 4,604 | 1,450 |
Proceeds from the sale of IO notes | 2,295 | |
Proceeds from insurance claims | 2,000 | 0 |
Notes receivable, net | (924) | |
Notes receivable, net | 221 | |
Net cash used in investing activities | (249) | (25,311) |
Cash flows from financing activities | ||
Line of credit borrowings, net | 20,000 | 15,000 |
Borrowings on term debt and notes payable | 8,726 | 720,000 |
Repayments on term debt and notes payable | (9,066) | (783,735) |
Payment of debt issuance cost | (8,372) | |
Payments of tax withholding requirements for employee stock awards | (6,217) | 0 |
Exercised warrants | 57,232 | |
Dividends | (4,189) | (4,261) |
Distribution to noncontrolling interest | (181) | |
Net cash provided by (used in) financing activities | 9,254 | (4,317) |
Net decrease in cash and cash equivalents | (26,999) | (42,811) |
Cash and cash equivalents at beginning of period | 41,898 | 46,831 |
Cash and cash equivalents at end of period | $ 14,899 | $ 4,020 |
OPERATIONS AND SUMMARY OF SIGNI
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Apr. 03, 2022 | |
Accounting Policies [Abstract] | |
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation – The accompanying consolidated financial statements comprise the financial statements of Utz Brands, Inc. ("UBI" or the "Company", formerly Collier Creek Holdings ("CCH")) and its wholly owned subsidiaries. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial statements and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). They do not include all information and notes required by US GAAP for annual financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the Notes to Consolidated Financial Statements included in the Company’s financial statements for the year ended January 2, 2022. The balance sheet as of January 2, 2022 has been derived from the audited combined financial statements as of and for the year ended January 2, 2022. In the opinion of management, such financial information reflects all normal and recurring adjustments necessary for a fair presentation of the financial position and the results of operations for such interim periods in accordance with the US GAAP. Operating results for the interim period are not necessarily indicative of the results that may be expected for any future period or for the full year. The consolidated interim financial statements, including our significant accounting policies, should be read in conjunction with the audited combined financial statements and notes thereto for the year ended January 2, 2022. All intercompany transactions and balances have been eliminated in consolidation. Reclassification – Certain prior year amounts have been reclassified for consistency with the current year presentation. In our Q1 Consolidated Statement of Profit and Loss and Consolidated Statement of Cash flows, we began combining gain on disposal of property, plant and equipment, net and gain on sale of routes, net, into one line item as gain on sale of assets to simplify our reporting presentation. The reclassification had no impact on total operating costs, earnings from operations, net earnings, earnings per share or total equity. Operations – The Company through its subsidiary, Utz Quality Foods, LLC ("UQF"), is a premier producer, marketer and distributor of snack food products since 1921. The Company has steadily expanded its distribution channels to where it now sells products to supermarkets, mass merchants, club stores, dollar and discount stores, convenience stores, independent grocery stores, drug stores, food service, vending, military, and other channels in most regions of the United States through routes to market that include direct-store-delivery, direct to warehouse, and third-party distributors. The Company manufactures and distributes a full line of high-quality salty snack items, such as potato chips, tortilla chips, pretzels, cheese balls, pork skins, party mixes, and popcorn. The Company also sells dips, crackers, dried meat products and other snack food items packaged by other manufacturers. Cash and Cash Equivalents – The Company considers all highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents. The majority of the Company’s cash is held in financial institutions with insurance provided by the Federal Deposit Insurance Corporation ("FDIC") of $250,000 per depositor. At various times, account balances may exceed federally insured limits. Accounts Receivables – Accounts receivable are reported at net realizable value. The net realizable value is based on management’s estimate of the amount of receivables that will be collected based on analysis of historical data and trends, as well as review of significant customer accounts. Accounts receivable are considered to be past due when payments are not received within the customer’s credit terms. Accounts are written off when management determines the account is uncollectible. Finance charges are not usually assessed on past-due accounts. Inventories – Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Inventory write-downs are recorded for shrinkage, damaged, stale and slow-moving items. Property, Plant and Equipmen t – Property, plant and equipment are stated at cost net of accumulated depreciation. Major additions and betterments are recorded to the asset accounts, while maintenance and repairs, which do not improve or extend the lives of the assets, are charged to expense accounts as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in operations in the disposal period. Depreciation is determined utilizing the straight-line method over the estimated useful lives of the various assets, which generally range from 2 to 20 years for machinery and equipment, 3 to 10 years for transportation equipment and 8 to 40 years for buildings. Assets held for sale are reported at the lower of the carrying amount or fair value less costs to sell. The Company assesses for impairment on property, plant and equipment upon the occurrence of a triggering event. Income Taxes – The Company accounts for income taxes pursuant to the asset and liability method of ASC 740, Income Taxes, which requires it to recognize current tax liabilities or receivables for the amount of taxes it estimates are payable or refundable for the current year, and deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts and their respective tax bases of assets and liabilities and the expected benefits of net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. The Company follows the provisions of ASC 740-10 related to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740-10 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The benefit of tax positions taken or expected to be taken in the Company’s income tax returns is recognized in the financial statements if such positions are more likely than not of being sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as "unrecognized benefits". A liability is recognized (or amount of net operating loss carryover or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740-10. Interest costs and related penalties related to unrecognized tax benefits are required to be calculated, if applicable. The Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as selling, distribution, and administrative expenses ("SD&A"). As of April 3, 2022 and January 2, 2022, no liability for unrecognized tax benefits was required to be reported. The Company does not expect any significant changes in its unrecognized tax benefits in the next fiscal year. Goodwill and Other Identifiable Intangible Assets – The Company allocates the cost of acquired companies to the identifiable tangible and intangible assets acquired and liabilities assumed, with the remaining amount classified as goodwill. The identification and valuation of these intangible assets and the determination of the estimated useful lives at the time of acquisition, as well as the completion of impairment tests, require significant management judgments and estimates. These estimates are made based on, among other factors, review of projected future operating results and business plans, economic projections, anticipated highest and best use of future cash flows and the cost of capital. The use of alternative estimates and assumptions could increase or decrease the estimated fair value of goodwill and other intangible assets, and potentially result in a different impact to the Company’s results of operations. Further, changes in business strategy and/or market conditions may significantly impact these judgments and thereby impact the fair value of these assets, which could result in an impairment of the goodwill or intangible assets. Finite-lived intangible assets consist of distribution/customer relationships, technology, certain master distribution rights and certain trademarks. These assets are being amortized over their estimated useful lives. Finite-lived intangible assets are tested for impairment only when management has determined that potential impairment indicators are present. Goodwill and other indefinite-lived intangible assets (including certain trade names, certain master distribution rights and company-owned sales routes) are not amortized but are tested for impairment at least annually and whenever events or circumstances change that indicate impairment may have occurred. The Company tests goodwill for impairment at the reporting unit level. The Company has identified the existing snack food operations as its sole reporting unit. As the Company has early adopted the FASB Accounting Standards Update ("ASU") No. 2017-04, Intangibles - Goodwill and Other ("Topic 350"): Simplifying the Test for Goodwill Impairment, the Company is required to record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU No. 2017-04, Topic 350, also permits an entity to first assess qualitative factors to determine whether it is necessary to perform quantitative impairment tests for goodwill and indefinite-lived intangibles. If an entity believes, as a result of each qualitative assessment, it is more likely than not that the fair value of goodwill or an indefinite-lived intangible asset exceeds its carrying value then a quantitative impairment test is not required. For the latest qualitative analysis performed, which took place on the first day of the fourth quarter of 2021, we had taken into consideration all the events and circumstances listed in FASB ASC 350, Intangibles—Goodwill and Other, in addition to other entity-specific factors that had taken place. We have determined that there was no significant impact that affected the fair value of the reporting unit through April 3, 2022. Therefore, we have determined that it was not necessary to perform a quantitative goodwill impairment test for the reporting unit. Fair Value of Financial Instruments – Financial instruments held by the Company include cash and cash equivalents, accounts receivable, hedging instruments, purchase commitments on commodities, accounts payable and debt. The carrying value of all cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to their short-term nature. The carrying value of the debt is also estimated to approximate its fair value based upon current market conditions and interest rates. The fair value of the hedging instruments are revalued at each reporting period. Revenue Recognition – The Company’s revenues primarily consist of the sale of salty snack items to customers, including supermarkets, mass merchants, club stores, dollar and discount stores, convenience stores, independent grocery stores, drug stores, food service, vending, military, and other channels. The Company sells its products in most regions of the United States primarily through its DSD network, direct to warehouse shipments, and third-party distributors. These revenue contracts generally have a single performance obligation. Revenue, which includes shipping and handling charges billed to the customer, is reported net of variable consideration and consideration payable to customers, including applicable discounts, returns, allowances, trade promotion, consumer coupon redemption, unsaleable product, and other costs. Amounts billed and due from customers are classified as accounts receivables and require payment on a short-term basis and, therefore, the Company does not have any significant financing components. The Company recognizes revenue when (or as) performance obligations are satisfied by transferring control of the goods to customers. Control is transferred upon delivery of the goods to the customer. Shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs. Applicable shipping and handling are included in customer billing and are recorded as revenue as the products’ control is transferred to customers. The Company assesses the goods promised in customer purchase orders and identifies a performance obligation for each promise to transfer a good that is distinct. The Company offers various forms of trade promotions and the methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to provisions based on actual occurrence or performance. The Company’s promotional activities are conducted either through the retail trade or directly with consumers and include activities such as in store displays and events, feature price discounts, consumer coupons, and loyalty programs. The costs of these activities are recognized at the time the related revenue is recorded, which normally precedes the actual cash expenditure. The recognition of these costs therefore requires management judgment regarding the volume of promotional offers that will be redeemed by either the retail trade customer or consumer. These estimates are made using various techniques including historical data on performance of similar promotional programs. The Company has reserves in place of $26.3 million as of April 3, 2022 and $26.5 million as of January 2, 2022. Differences between estimated expense and actual redemptions are recognized as a change in management estimate as actual redemptions are incurred. Business Combinations – The Company evaluates acquisitions of assets and other similar transactions to assess whether or not the transaction should be accounted for as a business combination or asset acquisition by first applying a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen is met, the transaction is accounted for as an asset acquisition. If the screen is not met, further determination is required as to whether or not the Company has acquired inputs and processes that have the ability to create outputs which would meet the definition of a business. Significant judgment is required in the application of the screen test to determine whether an acquisition is a business combination or an acquisition of assets. The Company uses the acquisition method of accounting for acquired businesses. Under the acquisition method, the Company’s financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of the acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. Distributor Buyouts - During the first fiscal quarter of 2022, we bought out and terminated the contracts of multiple third-party distributors who had previously been providing services to the Company. These transactions were accounted for as contract terminations and resulted in expense of $23.0 million for thirteen weeks ended April 3, 2022, and are included within selling and distribution expense on the consolidated statement of operations and comprehensive loss. Use of Estimates – Management uses estimates and assumptions in preparing the consolidated financial statements in accordance with U.S. GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Some examples, but not a comprehensive list, include sales and promotional allowances, customer returns, allowances for doubtful accounts, inventory valuations, useful lives of fixed assets and related impairment, long-term investments, hedge transactions, goodwill and intangible asset valuations and impairments, incentive compensation, income taxes, self-insurance, contingencies, litigation, and inputs used to calculate deferred tax liabilities, tax valuation allowances, and tax receivable agreements. Actual results could vary materially from the estimates that were used. Recently Issued Accounting Standards – In December 2019, the FASB issued "ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" ("Topic 740"). This Accounting Standards Update ("ASU") is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. For public business entities, ASU 2019-12 was effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods, with early adoption permitted. We adopted this standard upon the loss of our emerging growth status as of January 2, 2022. Adoption of the new standard did not have a material impact on our consolidated financial statements. 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". This ASU 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 this guidance when relevant contracts are modified upon transition to alternative reference rates. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements and related disclosures. In June 2016, ASU No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments ("Topic 326") was issued. This ASU requires entities to measure the impairment of certain financial instruments, including accounts receivables, based on expected losses rather than incurred losses. This ASU is effective for the Company for fiscal years beginning after December 15, 2022, with early adoption permitted, and will be effective for the Company beginning in 2023. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements and related disclosures. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Apr. 03, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS Vitner's On January 11, 2021, the Company announced that its subsidiary, UQF, entered into a definitive agreement with Snak-King Corp. to acquire certain assets of the C.J. Vitner business ("Vitner's acquisition" or "acquisition of Vitner's"), a leading brand of salty snacks in the Chicago, IL area. The Company closed this transaction on February 8, 2021 and the purchase price of approximately $25.2 million was funded from current cash-on-hand. The provisional fair values to which the purchase price was allocated were $2.9 million to trademarks, $0.8 million to customer relationships, $1.7 million to DSD routes, $1.9 million of other net assets, and $17.9 million to goodwill. The trademarks and customer relationships are being amortized over a period of 15 years. As of February 8, 2022, the purchase price allocation had been finalized. Festida Foods On May 11, 2021, the Company announced that its subsidiary, UQF, entered into a definitive agreement with Great Lakes Festida Holdings, Inc. to acquire all assets including real estate located in Grand Rapids, Michigan related to the operations of Festida Foods ("Festida Foods acquisition" or "acquisition of Festida Foods"), a manufacturer of tortilla chips, corn chips, and pellet snacks, and the largest manufacturer of tortilla chips for the Company's ON THE BORDER® brand. The Company closed this transaction on June 7, 2021 and the purchase price of approximately $40.3 million was funded in part from incremental financing on an existing term loan. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed by the Company at the date of the acquisition: (in thousands) Purchase consideration $ 40,324 Assets acquired: Accounts receivable 2,776 Inventory 2,704 Prepaid expenses and other assets 182 Property, plant and equipment 24,650 Customer relationships 1,270 Total assets acquired: 31,582 Liabilities assumed: Accounts payable 2,017 Accrued expenses 844 Total liabilities assumed: 2,861 Net identifiable assets acquired 28,721 Goodwill $ 11,603 The customer relationships are being amortized over a period of 10 years. As of April 3, 2022, the purchase price allocation has not been finalized. We expect to finalize the valuation report and complete the purchase price allocation no later than one-year from the acquisition date. RW Garcia On November 2, 2021, the Company announced that its subsidiaries, entered into a definitive agreement to acquire the equity of R.W. Garcia Holdings, LLC and its' wholly-owned subsidiary R.W. Garcia Co., Inc. ("RW Garcia"), an artisan maker of high-quality organic tortilla chips, crackers, and corn chips ("RW Garcia acquisition"). The Company closed on this transaction on December 6, 2021, and the cash purchase price of approximately $57.8 million funded in part from a draw on the Company's line of credit and cash on hand. In addition to this acquisition on December 6, 2021, the Company closed on an acquisition of a manufacturing facility of which RW Garcia was a tenant. The cost of the manufacturing facility was approximately $6.0 million . The following table summarizes the provisional fair values of the assets acquired and liabilities assumed by the Company for the RW Garcia acquisition at the date of the acquisition: (in thousands) Purchase consideration $ 56,430 Tax consideration 1,414 Total consideration 57,844 Assets acquired: Cash 5,401 Accounts receivable 4,660 Inventory 5,674 Prepaid expenses and other assets 2,105 Property, plant and equipment 20,210 Trade name 3,100 Customer relationships 4,720 Total assets acquired: 45,870 Liabilities assumed: Accounts payable 6,017 Accrued expenses 1,838 Deferred tax liability 6,140 Total liabilities assumed: 13,995 Net identifiable assets acquired 31,875 Goodwill $ 25,969 The trade name and customer relationships are being amortized over a period of 15 years. As of April 3, 2022, the purchase price allocation has not been finalized. We expect to finalize the valuation report and complete the purchase price allocation no later than one-year from the acquisition date. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Apr. 03, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following: (in thousands) As of April 3, 2022 As of January 2, 2022 Finished goods $ 53,166 $ 43,533 Raw materials 33,599 29,428 Maintenance parts 7,013 6,556 Total inventories $ 93,778 $ 79,517 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 3 Months Ended |
Apr. 03, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net, consisted of the following: (in thousands) As of April 3, 2022 As of January 2, 2022 Land $ 25,750 $ 25,886 Buildings 98,675 98,664 Machinery and equipment 214,972 214,319 Land improvements 3,443 3,393 Building improvements 3,288 3,048 Construction-in-progress 19,104 13,745 365,232 359,055 Less: accumulated depreciation (66,576) (55,248) Property, plant and equipment, net $ 298,656 $ 303,807 |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 3 Months Ended |
Apr. 03, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET A rollforward of goodwill is as follows: (in thousands) January 2, 2022 $ 915,438 RW Garcia acquisition adjustment 52 Balance as of April 3, 2022 $ 915,490 For the first fiscal quarter of 2022, the change to goodwill was attributable to the RW Garcia acquisition adjustment. Intangible assets, net, consisted of the following: (in thousands) As of April 3, 2022 As of January 2, 2022 Subject to amortization: Distributor/customer relationships $ 677,930 $ 677,930 Technology — 43 Trademarks 63,850 63,850 Master distribution rights — 2,221 Amortizable assets, gross 741,780 744,044 Accumulated amortization (54,401) (45,224) Amortizable assets, net 687,379 698,820 Not subject to amortization: Trade names 434,513 434,513 Route assets 8,316 9,176 Intangible assets, net $ 1,130,208 $ 1,142,509 |
NOTES RECEIVABLE
NOTES RECEIVABLE | 3 Months Ended |
Apr. 03, 2022 | |
Receivables [Abstract] | |
NOTES RECEIVABLE | NOTES RECEIVABLE The Company has undertaken a program in recent years to sell company-managed DSD distribution routes to IOs. Contracts are executed between the Company and the IO for the sale of the product distribution route, including a note in favor of the Company, in certain cases. The notes bear interest at rates ranging from 0.00% to 8.55% with terms ranging generally from one Other notes receivable totaled $0.2 million and $0.2 million as of April 3, 2022 and January 2, 2022, respectively. |
ACCRUED EXPENSES AND OTHER
ACCRUED EXPENSES AND OTHER | 3 Months Ended |
Apr. 03, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER | ACCRUED EXPENSES AND OTHER Current accrued expenses and other consisted of the following: (in thousands) As of April 3, 2022 January 2, 2022 Accrued compensation and benefits $ 15,183 $ 20,081 Right-of-use liability 10,742 9,152 Accrued freight and manufacturing related costs 8,817 8,928 Insurance liabilities 7,779 8,620 Acquisition tax consideration 1,594 5,660 Accrued interest 494 371 Short term interest rate hedge liability 150 4,548 Accrued dividends — 4,189 Accrued sales tax — 1,300 Other accrued expenses 8,597 8,431 Total accrued expenses and other $ 53,356 $ 71,280 Non-current accrued expenses and other consisted of the following: (in thousands) As of April 3, 2022 As of January 2, 2022 Right-of-use liability $ 24,445 $ 23,226 Tax Receivable Agreement liability 24,336 24,443 Supplemental retirement and salary continuation plans 7,245 8,117 Other long term accrued expenses 83 52 Total accrued expenses and other $ 56,109 $ 55,838 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Apr. 03, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Revolving Credit Facility On November 21, 2017, UBH entered into an asset based revolving credit facility (as amended, the "ABL facility"), pursuant to the terms of that certain First Lien Term Loan Credit Agreement, dated November 21, 2017 (the "Credit Agreement"). On April 1, 2020, the ABL facility was amended to increase the credit limit up to $116.0 million and to extend the maturity through August 22, 2024. On December 18, 2020, the ABL facility was amended to increase the credit limit up to $161.0 million. As of April 3, 2022 and January 2, 2022, $56.0 million and $36.0 million, respectively, were outstanding under this facility. Availability under the ABL facility is based on a monthly accounts receivable and inventory borrowing base certification, which is net of outstanding letters of credit. As of April 3, 2022 and January 2, 2022, $80.8 million and $96.9 million, respectively, was available for borrowing, net of letters of credit. The facility bears interest at an annual rate based on LIBOR plus an applicable margin of 1.50% (ranging from 1.50% to 2.00% based on availability) or the prime rate plus an applicable margin of 0.50% (ranging from 0.50% to 1.00%). Had the Company elected to use the Prime rate, the interest rate on the facility as of April 3, 2022 and April 4, 2021, would have been 3.75%. The Company elected to use the LIBOR rate, the interest rate on the ABL facility as of April 3, 2022 was 1.95%. The Company elected to use the LIBOR rate as of April 4, 2021 and the interest rate was 1.61%. The ABL facility is also subject to unused line fees (0.5% at April 3, 2022) and other fees and expenses. Standby letters of credit in the amount of $10.3 million have been issued as of April 3, 2022 and January 2, 2022. The standby letters of credit are primarily issued for insurance purposes. Term Loans On December 14, 2020, the Company entered into a Bridge Credit Agreement with a syndicate of banks, led by Bank of America, N.A. (the "Bridge Credit Agreement"). The proceeds of the Bridge Credit Agreement were used to fund the Company’s acquisition of Truco and the IP Purchase from OTB Acquisition, LLC, in which the Company withdrew $490.0 million to finance the Truco Holdco Inc. ("Truco" and such acquisition, the "Truco Acquisition") and purchase and acquisition of certain intellectual property from OTB Acquisition, LLC (the "IP Purchase"),. The Bridge Credit Agreement bears interest at an annual rate based on 4.25% Base plus 1 month LIBOR with scheduled incremental increases to the base rate, as defined in the Bridge Credit Agreement. The loan converts into an Extended Term Loan if the Loan remains open 365 days after the closing date. As of January 3, 2021, the outstanding balance of the Bridge Credit Agreement was $370.0 million, with $120.0 million being repaid from the redemption of the Company's warrants. Commitment fees and deferred financing costs on the Bridge Credit Agreement totaled $7.2 million, of which $2.6 million was expended in the thirteen weeks ended April 4, 2021. In connection with Amendment No. 2 to the Credit Agreement, and a $12.0 million repayment in the first quarter of 2021, the outstanding balance of $370.0 million was repaid in full. On January 20, 2021, the Company entered into Amendment No. 2 to the Credit Agreement ("Amendment No. 2") which provided additional operating flexibility and revisions to certain restrictive covenants. Pursuant to the terms of Amendment No. 2, the Company raised $720 million in aggregate principal of Term Loan B ("Term Loan B") which bears interest at LIBOR plus 3.00%, and extended the maturity of the Credit Agreement to January 20, 2028. The proceeds were used, together with cash on hand and proceeds from our exercised warrants, to redeem the outstanding principal amount of existing Term Loan B and Bridge Credit Agreement of $410 million and $358 million, respectively. The refinancing was accounted for as an extinguishment. The Company incurred debt issuance costs and original issuance discounts of $8.4 million. On June 22, 2021, the Company entered into Amendment No. 3 to the Credit Agreement ("Amendment No. 3"). Pursuant to the terms of Amendment No. 3, the Company increased the principal balance of Term Loan B by $75.0 million to bring the aggregated balance of Term Loan B proceeds to $795.0 million. The Company incurred additional debt issuance costs and original issuance discounts of $0.7 million related to the incremental funding. The First Lien Term Loan, the Secured First Lien Note, Term Loan B, and the ABL facility are collateralized by substantially all of the assets and liabilities of the Company. The credit agreements contain certain affirmative and negative covenants as to operations and the financial condition of the Company. The Company was in compliance with its financial covenant as of April 3, 2022. Debt (in thousands) Issue Date Principal Balance Interest Rate Maturity Date April 3, 2022 January 2, 2022 Term loan B June-21 $ 795,000 3.21 % January-28 $ 785,248 $ 787,236 Equipment loans 30,476 26,655 Revolving credit facility 56,000 36,000 Net impact of debt issuance costs and original issue discounts (7,588) (7,929) Total long-term debt 864,136 841,962 Less: current portion (11,414) (11,414) Long term portion of term debt and financing obligations $ 852,722 $ 830,548 Other Notes Payable and Capital Leases During the first fiscal quarter of 2022, we bought out and terminated the contracts of multiple distributors who had previously been providing services to the Company. These transactions were accounted for as contract terminations and resulted in expense of $23.0 million for the thirteen weeks ended April 3, 2022. As a condition of our buyout of distributors an additional $4.1 million is expected to be paid out and is included in other in the table below. During the third quarter of 2021, the Company recorded liabilities related primarily to reclaiming distribution rights from distributors, of which $1.3 million was outstanding as of April 3, 2022 and January 2, 2022, respectively. During the first fiscal quarter of 2020, the Company purchased intellectual property that include a deferred purchase price of $0.5 million, of which $0.3 million is outstanding as of April 3, 2022 and January 2, 2022, respectively. Amounts outstanding under notes payable consisted of the following: (in thousands) As of April 3, 2022 As of January 2, 2022 Note payable – IO notes $ 22,387 $ 24,822 Capital lease 8,229 8,166 Other 5,570 1,678 Total notes payable 36,186 34,666 Less: current portion (13,057) (9,957) Long term portion of notes payable $ 23,129 $ 24,709 During fiscal 2019, the Company sold $33.2 million of notes receivable from IOs on its books for $34.1 million in a series of transactions to a financial institution. During fiscal 2021, the Company sold an additional $11.8 million of notes receivable from IOs on its books for $12.5 million in a series of transactions to a financial institution. Due to the structure of the transactions, they did not qualify for sale accounting treatment and the Company has recorded the notes payable obligation owed by the IOs to the financial institution on its books; the corresponding notes receivable also remained on the Company’s books. The Company services the loans for the financial institution by collecting principal and interest from the IOs and passing it through to the institution. The underlying notes have various maturity dates through March 2032. The Company partially guarantees the outstanding loans, as discussed in further detail within Note 11. "Contingencies". These loans are collateralized by the routes for which the loans are made. Accordingly, the Company has the ability to recover substantially all of the outstanding loan value upon default. Interest Expense Interest expense consisted of the following: (in thousands) Thirteen weeks ended April 3, 2022 Thirteen weeks ended April 4, 2021 Company’s ABL facility and other long-term debt $ 8,331 $ 7,574 Amortization of deferred financing fees 341 2,870 IO loans 431 417 Total interest $ 9,103 $ 10,861 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND PURCHASE COMMITMENTS | 3 Months Ended |
Apr. 03, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND PURCHASE COMMITMENTS | DERIVATIVE FINANCIAL INSTRUMENTS AND PURCHASE COMMITMENTS Derivative Financial Instruments To reduce the effect of interest rate fluctuations, the Company entered into a three year interest rate swap contract on September 6, 2019, with an effective date of September 30, 2019, with a counter party to make a series of payments based on a fixed interest rate of 1.339% and receive a series of payments based on the greater of LIBOR or 0.00%. Both the fixed and floating payment streams are based on a notional amount of $250 million. On December 21, 2021, with an effective date of December 31, 2021, the Company entered into an accreting interest rate swap contract with a counter party to make a series of payments based on a fixed interest rate of 1.3885% and receive a series of payments based on the greater of LIBOR or 0.00%. Both the fixed and floating payment streams are based on a notional amount of $250 million, accreting to $500 million and maturing on September 30, 2026. The Company entered into this transaction to reduce its exposure to changes in cash flows associated with its variable rate debt and has designated this derivative as a cash flow hedge. At April 3, 2022, the effective fixed interest rate on the long-term debt hedged by these contracts was 3.94%. For further treatment of the Company’s interest rate swap, refer to "Note 10. Fair Value Measurements" and "Note 12. Accumulated Other Comprehensive Income." Warrant Liabilities The Company has outstanding warrants which are accounted for as derivative liabilities pursuant to ASC 815-40. See Note 15. "Warrants" for additional information on our warrant liabilities. A reconciliation of the changes in the warrant liability during the thirteen weeks ended April 3, 2022 is as follows: (in thousands) Fair value of warrant liabilities as of January 2, 2022 $ 46,224 Gain on remeasurement of warrant liability (1,944) Fair value of warrant liabilities as of April 3, 2022 $ 44,280 Purchase Commitments |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Apr. 03, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTSThe Company follows the guidance relating to fair value measurements and disclosures with respect to financial assets and liabilities that are re-measured and reported at fair value each reporting period, and with respect to non-financial assets and liabilities that are not required to be measured at fair value on a recurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I) and the lowest priority to unobservable pricing inputs (Level III). A financial asset or liability’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are described below: Level I - Valuations are based on unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities; Level II - Valuations are based on quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active. Financial asset or liabilities which are included in this category are securities where all significant inputs are observable, either directly or indirectly; and Level III - Prices or valuations that are unobservable and where there is little, if any, market activity for these financial assets or liabilities. The inputs into the determination of fair value inputs for these investments require significant management judgment or estimation. The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors. To the extent that valuation is based on inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. The fair values of the Company’s Level 2 derivative instruments were determined using valuation models that use market observable inputs including interest rate curves and both forward and spot prices for commodities. Derivative assets and liabilities included in Level 2 primarily represent commodity and interest rate swap contracts. The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of April 3, 2022: (in thousands) Level I Level II Level III Total Assets: Cash and cash equivalents $ 14,899 $ — $ — $ 14,899 Interest rate swaps — 25,593 — 25,593 Total assets $ 14,899 $ 25,593 $ — $ 40,492 Liabilities Commodity contracts $ — $ 54 $ — $ 54 Interest rate swaps — 174 — 174 Private placement warrants — 44,280 — 44,280 Debt — 864,136 — 864,136 Total liabilities $ — $ 908,644 $ — $ 908,644 The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of January 2, 2022: (in thousands) Level I Level II Level III Total Assets: Cash and cash equivalents $ 41,898 $ — $ — $ 41,898 Interest rate swaps — 2,208 — 2,208 Total assets $ 41,898 $ 2,208 $ — $ 44,106 Liabilities Commodity contracts $ — $ 54 $ — $ 54 Interest rate swaps — 4,600 — 4,600 Private placement warrants — 46,224 — 46,224 Debt — 841,962 — 841,962 Total liabilities $ — $ 892,840 $ — $ 892,840 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Apr. 03, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Litigation Matters The Company is involved in litigation and other matters incidental to the conduct of its business, the results of which, in the opinion of management, are not likely to be material to the Company’s financial condition, results of operations or cash flows. Tax Matters The Company received an assessment from the Commonwealth of Pennsylvania pursuant to a sales and use tax audit for the period from January 1, 2014 through December 31, 2016. As of January 2, 2022, the Company had a reserve of $1.3 million to cover the assessment. On January 7, 2022, the Company settled the audit with the Commonwealth of Pennsylvania for $0.9 million. Guarantees The Company partially guarantees loans made to IOs by Cadence Bank for the purchase of routes. The outstanding balance of loans guaranteed was $2.0 million and $2.2 million at April 3, 2022 and January 2, 2022, respectively, all of which was recorded by the Company as an off balance sheet arrangement. The maximum amount of future payments the Company could be required to make under the guarantees equates to 25% of the outstanding loan balance up to $2.0 million. These loans are collateralized by the routes for which the loans are made. Accordingly, the Company has the ability to recover substantially all of the outstanding loan value upon default. The Company partially guarantees loans made to IOs by Bank of America for the purchase of routes. The outstanding balance of loans guaranteed that were issued by Bank of America was $22.2 million and $18.6 million at April 3, 2022 and January 2, 2022, respectively, which are off balance sheet. As discussed in Note 8. "Long-Term Debt", the Company also sold notes receivable on its books to Bank of America during fiscal 2019 and fiscal 2021, which the Company partially guarantees. The outstanding balance of notes purchased by Bank of America at April 3, 2022 and January 2, 2022 was $18.5 million and $19.7 million, respectively. Due to the structure of the transactions, the sale did not qualify for sale accounting treatment, as such the Company records the notes payable obligation owed by the IOs to the financial institution on its Consolidated Balance Sheets; the corresponding note receivable also remained on the Company’s Consolidated Balance Sheets. The maximum amount of future payments the Company could be required to make under these guarantees equates to 25% of the outstanding loan balance on the first day of each calendar year plus 25% of the amount of any new loans issued during such calendar year. These loans are collateralized by the routes for which the loans are made. Accordingly, the Company has the ability to recover substantially all of the outstanding loan value upon default. The Company guarantees loans made to IOs by M&T Bank for the purchase of routes. The agreement with M&T Bank was amended in January 2020 so that the Company guaranteed up to 25% of the greater of the aggregate principal amount of loans outstanding on the payment date or January 1st of the subject year. The outstanding balance of loans guaranteed was $4.4 million and $4.9 million at April 3, 2022 and January 2, 2022, respectively, all of which were included included in the Company's consolidated balance sheets. These loans are collateralized by the routes for which the loans are made. Accordingly, the Company has the ability to recover substantially all of the outstanding loan value upon default. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Apr. 03, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME Total accumulated other comprehensive income was $31.5 million as of April 3, 2022 and $3.7 million as of January 2, 2022. Total accumulated other comprehensive income consists solely of unrealized gains from the Company’s derivative financial instruments accounted for as cash flow hedges. Changes to the balance in accumulated other comprehensive income were as follows: (in thousands) Gain on Balance as of January 3, 2021 $ 924 Unrealized gain on cash flow hedges 822 Balance as of April 4, 2021 $ 1,746 Balance as of January 2, 2022 $ 3,715 Unrealized gain on cash flow hedges 27,809 Balance as of April 3, 2022 $ 31,524 |
SUPPLEMENTARY CASH FLOW INFORMA
SUPPLEMENTARY CASH FLOW INFORMATION | 3 Months Ended |
Apr. 03, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTARY CASH FLOW INFORMATION | SUPPLEMENTARY CASH FLOW INFORMATION (in thousands) Thirteen weeks ended April 3, 2022 Thirteen weeks ended April 4, 2021 Cash paid for interest $ 9,627 $ 9,787 Refunds related to income taxes $ 4,075 $ 182 Payments for income taxes $ 107 $ — Dividends paid $ 4,189 $ 4,261 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Apr. 03, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company is subject to federal and state income taxes with respect to our allocable share of any taxable income or loss of UBH, as well as any standalone income or loss the Company generates. UBH is treated as a partnership for federal income tax purposes, and for most applicable state and local income tax purposes, and generally does not pay income taxes in most jurisdictions. Instead, UBH taxable income or loss is passed through to its members, including the Company. Despite its partnership treatment, UBH is liable for income taxes in those states not recognizing its pass-through status and for certain of its subsidiaries not taxed as pass-through entities. The Company has acquired various domestic entities taxed as corporations, which are now wholly-owned by us or our subsidiaries. Where required or allowed, these subsidiaries also file and pay tax as a consolidated group for federal and state income tax purposes. The Company anticipates this structure to remain in existence for the foreseeable future. The Company recorded income tax expense of $2.8 million and $1.0 million for the thirteen weeks ended April 3, 2022 and April 4, 2021, respectively. The effective tax rates for the thirteen weeks ended April 3, 2022 and April 4, 2021 were (9.5)% and (4.5)%, respectively. The Company’s effective tax rates differ from the federal statutory rate of 21% primarily due to the impact of UBH, which is a partnership, is not taxed at the Company level, and is required to allocate some of its taxable results to the Continuing Members, as well as state taxes and the fair value impact of warrant liabilities. The Company’s effective tax rate for the thirteen weeks ended April 3, 2022 is (7.2)% before consideration of any discrete items. During the thirteen weeks ended April 3, 2022, the effective tax rate was impacted by statutory state tax rate changes which resulted in a discrete tax expense of $0.5 million. The Company regularly evaluates valuation allowances established for deferred tax assets ("DTA's") for which future realization is uncertain. The Company assessed the available positive and negative evidence to estimate whether future taxable income would be generated to permit use of the existing DTA's. As of April 3, 2022, a significant piece of objective negative evidence evaluated was the twelve-quarter cumulative loss before taxes. Such objective evidence limits the ability to consider other subjective evidence, such as projections for future growth. The Company determined that there is uncertainty regarding the utilization of certain DTA's such as the investment in Utz Brands Holdings, LLC, federal operating losses subject to annual limitations due to "change in ownership" provisions, and state net operating losses where the Company does not expect to continue to have nexus. Therefore, a valuation allowance has been recorded against the DTA's for which it is more-likely-than-not they will not be realized. The Company has DTA’s related to its investment in partnership that are expected to be realized in the ordinary course of operations or generate future net operating losses for which a portion will have an indefinite carryforward period. Additionally, the Company has deferred tax liabilities ("DTL’s") related to its investment in the partnership that will not reverse in the ordinary course of business and will only reverse when the partnership is sold or liquidated. The Company has no intention of disposing of or liquidating the partnership and therefore has not considered the indefinite lived DTL as a source of income to offset other DTA’s. In weighing positive and negative evidence, both objective and subjective, including its twelve-quarter cumulative loss, the Company has recorded a valuation allowance against its DTA’s related to net operating losses and deductible book/tax differences and recorded a DTL primarily related to the book over tax basis in the investment in the partnership that will not reverse in the ordinary course of operations. The Company considered that an indefinite lived DTL may be considered as a source of taxable income for an indefinite lived DTA; however, given our indefinite lived DTL will only reverse upon sale or liquidation, the Company determined that it was more appropriate to record a valuation allowance against its DTA’s. The amount of DTA considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as projections for growth. As of April 3, 2022, tax years 2018 through 2022 remain open and subject to examination by the Internal Revenue Service and the majority of the states where the Company has nexus, and tax years 2017 through 2022 remain open and subject to examination in selected states that have a longer statute of limitations. Upon audit, tax authorities may challenge all or part of a tax position. A tax position successfully challenged by a taxing authority could result in an adjustment to our provision for income taxes in the period in which a final determination is made. The Company did not maintain any unrecognized tax benefits as of April 3, 2022 and January 2, 2022. Tax receivable agreement liability Pursuant to an election under section 754 of the Internal Revenue Code, the Company obtained an increase in its share of the tax basis in the net assets of UBH when it was deemed to purchase UBH units from the third party members of UBH and purchased UBH units from the Continuing Members per the Business Combination. The Continuing Members have the option to exchange UBH units for UBI common stock post-Business Combination. The Company intends to treat any such exchanges as direct purchases for U.S. federal income tax purposes, which is expected to further increase its share of the tax basis in the net assets of UBH. The increases in tax basis may reduce the amounts the Company would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. Pursuant to the Business Combination Agreement, the Company entered into the Tax Receivable Agreement in connection with the Business Combination (the "Tax Receivable Agreement" or "TRA") , which provides for the payment by the Company of 85% of the amount of any tax benefits realized as a result of (i) increases in the share of the tax basis in the net assets of UBH resulting from the Business Combination and any future exchanges by the Continuing Members of UBH units for UBI common stock; (ii) tax basis increases attributable to payments made under the TRA; and (iii) tax amortization deductions attributable to the acquisition of Kennedy Endeavors, LLC and the election to treat the transaction as an asset deal for tax purposes (the "TRA Payments"). The rights of each party under the TRA other than the Company are assignable, subject to certain restrictions. The timing and amount of aggregate payments due under the TRA may vary based on a number of factors, including the timing and amount of taxable income generated by the Company each year, as well as the tax rate then applicable, among other factors. As of April 3, 2022 and January 2, 2022, the Company had a liability of $24.5 million and $24.6 million, respectively, related to its projected obligations under the TRA, which is reflected as a non-current accrued expense in the consolidated balance sheet. |
WARRANTS
WARRANTS | 3 Months Ended |
Apr. 03, 2022 | |
Equity [Abstract] | |
WARRANTS | WARRANTS Prior to the Business Combination, CCH issued 15,833,332 warrants that were initially sold by CCH in its initial public offering of securities (the "Public Warrants"), including 1,166,666 warrants issued pursuant to those certain Forward Purchase Agreements entered into by CCH, the Sponsor, and the independent directors of CCH (the "Forward Purchase Agreements") that were issued at the closing of the Business Combination as part of the Forward Purchase Agreement discussed below (the "Forward Purchase Warrants"), and 7,200,000 warrants initially sold to the Sponsor simultaneously with the closing of its initial public offering (the "Private Placement Warrants," collectively, with the Public Warrants and Forward Purchase Warrants, the "Warrants"). As a result of the Business Combination, the Company assumed the CCH warrants and such warrants are now exercisable for shares of UBI Class A Common Stock instead of Class A ordinary shares of CCH. All other features of the warrants remain unchanged. On December 14, 2020, the Company provided notice to the holders of the Public Warrants and Forward Purchase Warrants that their warrants would be redeemed in accordance with the original terms on January 14, 2021. As of April 3, 2022 and January 2, 2022, there were 7,200,000 Private Placement Warrants outstanding. The Private Placement Warrants and the shares of Class A Common Stock issuable upon the exercise of the Private Placement Warrants were not transferable, assignable or salable until after the completion of the Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants are exercisable on a cashless basis, at the holder’s option, and are non-redeemable by the Company so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. We account for the Warrants as derivative liabilities in accordance with ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity ("ASC 815-40"), due to certain settlement provisions in the corresponding warrant agreement that do not meet the criteria to be classified in stockholders’ equity. Pursuant to ASC 815-40, the Warrants are now classified as a liability at fair value on the Company’s consolidated balance sheet, and the change in the fair value of such liability in each period is recognized as a non-cash gain or loss in the Company’s consolidated statements of operations and comprehensive loss. The Warrants are deemed equity instruments for income tax purposes, and accordingly, there is no tax accounting relating to changes in the fair value of the Warrants recognized. Class A Common Stock The Company is authorized to issue 1,000,000,000 shares of Class A Common Stock, par value $0.0001 per share, of which 78,597,175 and 77,644,645 shares of UBI were issued and outstanding on April 3, 2022 and January 2, 2022, respectively. Upon the closing of the Business Combination, all shares of CCH Class A ordinary shares, including 3,500,000 Forward Purchase Class A Ordinary Shares of CCH that were issued at the closing of the Business Combination as part of the Forward Purchase Agreement discussed below, and Class B ordinary shares, less shareholder redemptions, were converted on a one-for-one basis into shares of Class A Common Stock, including 2,000,000 shares of Class B Common Stock initially issued to the Sponsor, which immediately vested upon the closing of the Business Combination and converted into shares of Class A Common Stock of the Company. Class V Common Stock The Company is also authorized to issue 61,249,000 shares of Class V Common Stock, par value of $0.0001 all of which were issued to the Continuing Members in connection with the closing of the Business Combination, Each of the Continuing Members' common limited liability company units of UBH along with a share of Class V Common Stock may be exchanged for one share of Class A Common Stock of the Company upon certain restrictions being satisfied. As of April 3, 2022 and January 2, 2022, there were 59,349,000 shares of Class V Common Stock outstanding. Forward Purchases In connection with the closing of the Business Combination and pursuant to a Forward Purchase Agreement entered into between CCH, CCH’s Sponsor, and CCH’s independent directors, CCH consummated the sale and issuance of 3,500,000 shares issued pursuant to the Forward Purchase Agreements and Forward Purchase Warrants to acquire up to 1,166,666 Class A ordinary shares of CCH at $11.50 per share, for aggregate proceeds of $35,000,000 that were used to fund the Business Combination. |
BUSINESS RISK
BUSINESS RISK | 3 Months Ended |
Apr. 03, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
BUSINESS RISK | BUSINESS RISKThe novel coronavirus, or COVID-19, outbreak began impacting consumption, distribution and production of our products in March 2020. We have taken necessary preventive actions and implemented additional measures to protect our employees that work on site. We continue to experience higher demand for our products compared to historical volumes, and we are servicing that demand by increasing production and distribution activities. Generally, producers of food products, including salty snacks, have been deemed "essential industries" by federal, state, and local governments and are exempt from certain COVID-19-related restrictions on business operations. Our strategic manufacturing capabilities and DSD distribution network have allowed us to effectively service increases in demand and be responsive to evolving market dynamics driven by changes in consumer behavior. During this time we experienced significant inflationary pressures on input and supply chain costs. We continue to monitor these pressures and have implemented some pricing actions in response. Additionally, we continue to monitor customer and consumer demands and stand ready to adapt our plans to meet changes in demand. |
EQUITY
EQUITY | 3 Months Ended |
Apr. 03, 2022 | |
Equity [Abstract] | |
EQUITY | WARRANTS Prior to the Business Combination, CCH issued 15,833,332 warrants that were initially sold by CCH in its initial public offering of securities (the "Public Warrants"), including 1,166,666 warrants issued pursuant to those certain Forward Purchase Agreements entered into by CCH, the Sponsor, and the independent directors of CCH (the "Forward Purchase Agreements") that were issued at the closing of the Business Combination as part of the Forward Purchase Agreement discussed below (the "Forward Purchase Warrants"), and 7,200,000 warrants initially sold to the Sponsor simultaneously with the closing of its initial public offering (the "Private Placement Warrants," collectively, with the Public Warrants and Forward Purchase Warrants, the "Warrants"). As a result of the Business Combination, the Company assumed the CCH warrants and such warrants are now exercisable for shares of UBI Class A Common Stock instead of Class A ordinary shares of CCH. All other features of the warrants remain unchanged. On December 14, 2020, the Company provided notice to the holders of the Public Warrants and Forward Purchase Warrants that their warrants would be redeemed in accordance with the original terms on January 14, 2021. As of April 3, 2022 and January 2, 2022, there were 7,200,000 Private Placement Warrants outstanding. The Private Placement Warrants and the shares of Class A Common Stock issuable upon the exercise of the Private Placement Warrants were not transferable, assignable or salable until after the completion of the Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants are exercisable on a cashless basis, at the holder’s option, and are non-redeemable by the Company so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. We account for the Warrants as derivative liabilities in accordance with ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity ("ASC 815-40"), due to certain settlement provisions in the corresponding warrant agreement that do not meet the criteria to be classified in stockholders’ equity. Pursuant to ASC 815-40, the Warrants are now classified as a liability at fair value on the Company’s consolidated balance sheet, and the change in the fair value of such liability in each period is recognized as a non-cash gain or loss in the Company’s consolidated statements of operations and comprehensive loss. The Warrants are deemed equity instruments for income tax purposes, and accordingly, there is no tax accounting relating to changes in the fair value of the Warrants recognized. Class A Common Stock The Company is authorized to issue 1,000,000,000 shares of Class A Common Stock, par value $0.0001 per share, of which 78,597,175 and 77,644,645 shares of UBI were issued and outstanding on April 3, 2022 and January 2, 2022, respectively. Upon the closing of the Business Combination, all shares of CCH Class A ordinary shares, including 3,500,000 Forward Purchase Class A Ordinary Shares of CCH that were issued at the closing of the Business Combination as part of the Forward Purchase Agreement discussed below, and Class B ordinary shares, less shareholder redemptions, were converted on a one-for-one basis into shares of Class A Common Stock, including 2,000,000 shares of Class B Common Stock initially issued to the Sponsor, which immediately vested upon the closing of the Business Combination and converted into shares of Class A Common Stock of the Company. Class V Common Stock The Company is also authorized to issue 61,249,000 shares of Class V Common Stock, par value of $0.0001 all of which were issued to the Continuing Members in connection with the closing of the Business Combination, Each of the Continuing Members' common limited liability company units of UBH along with a share of Class V Common Stock may be exchanged for one share of Class A Common Stock of the Company upon certain restrictions being satisfied. As of April 3, 2022 and January 2, 2022, there were 59,349,000 shares of Class V Common Stock outstanding. Forward Purchases In connection with the closing of the Business Combination and pursuant to a Forward Purchase Agreement entered into between CCH, CCH’s Sponsor, and CCH’s independent directors, CCH consummated the sale and issuance of 3,500,000 shares issued pursuant to the Forward Purchase Agreements and Forward Purchase Warrants to acquire up to 1,166,666 Class A ordinary shares of CCH at $11.50 per share, for aggregate proceeds of $35,000,000 that were used to fund the Business Combination. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 3 Months Ended |
Apr. 03, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHAREBasic earnings (loss) per share is based on the weighted average number of shares of Class A Common Stock issued and outstanding during the periods. Diluted earnings (loss) per share is based on the weighted average number shares of Class A Common Stock issued and outstanding and the effect of all dilutive common stock equivalents and potentially dilutive share-based awards outstanding during the periods. The following table reconciles the numerators and denominators used in the computations of both basic and diluted earnings per share: (in thousands, except share data) Thirteen weeks ended April 3, 2022 Thirteen weeks ended April 4, 2021 Basic and diluted earnings per share: Numerator: Net loss attributable to common stockholders $ (17,570) $ (22,529) Denominator: Weighted average Class A Common Stock shares, basic 78,572,404 75,927,005 Basic and diluted earnings (loss) per share $ (0.22) $ (0.30) Anti-dilutive securities excluded from diluted earnings per share calculation: Warrants 1,901,376 4,092,590 RSUs 57,914 1,365,291 PSUs 40,545 142,541 Stock options — 93,211 Total 1,999,835 5,693,633 Class V Common Stock not subject to earnings per share calculation 59,349,000 60,349,000 Net loss attributable to noncontrolling interest $ (14,328) $ (820) The diluted earnings (loss) per share computation excludes the effect of certain RSUs, PSUs, and stock options granted to Directors and Management which convert to Class A Common Stock upon vesting, as their inclusion would have been anti-dilutive if the Company had positive earnings. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Apr. 03, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On April 7, 2022, our Board of Directors declared a cash dividend of $0.054 per share on our Class A Common Stock, to the stockholders of record on April 18, 2022. Total dividend payment of $4.2 million was executed on April 28, 2022. On April 28, 2022, the Company purchased a brand new, recently completed snack food manufacturing facility in Kings Mountain, North Carolina from Evans Food Group Ltd. d/b/a Benestar Brands and related affiliates. The total purchase price of the facility was approximately $38.4 million, plus assumed liabilities of $1.3 million, and was funded with approximately $10.4 million in cash and $28.0 million of proceeds from the issuance and sale of 2.1 million shares of the Company’s Class A Common Stock to affiliates of Benestar in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. |
OPERATIONS AND SUMMARY OF SIG_2
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Apr. 03, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – The accompanying consolidated financial statements comprise the financial statements of Utz Brands, Inc. ("UBI" or the "Company", formerly Collier Creek Holdings ("CCH")) and its wholly owned subsidiaries. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial statements and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). They do not include all information and notes required by US GAAP for annual financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the Notes to Consolidated Financial Statements included in the Company’s financial statements for the year ended January 2, 2022. The balance sheet as of January 2, 2022 has been derived from the audited combined financial statements as of and for the year ended January 2, 2022. In the opinion of management, such financial information reflects all normal and recurring adjustments necessary for a fair presentation of the financial position and the results of operations for such interim periods in accordance with the US GAAP. Operating results for the interim period are not necessarily indicative of the results that may be expected for any future period or for the full year. The consolidated interim financial statements, including our significant accounting policies, should be read in conjunction with the audited combined financial statements and notes thereto for the year ended January 2, 2022. |
Consolidation | All intercompany transactions and balances have been eliminated in consolidation. |
Reclassification | Reclassification – Certain prior year amounts have been reclassified for consistency with the current year presentation. In our Q1 Consolidated Statement of Profit and Loss and Consolidated Statement of Cash flows, we began combining gain on disposal of property, plant and equipment, net and gain on sale of routes, net, into one line item as gain on sale of assets to simplify our reporting presentation. The reclassification had no impact on total operating costs, earnings from operations, net earnings, earnings per share or total equity. |
Cash and Cash Equivalents | Cash and Cash Equivalents – The Company considers all highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents. The majority of the Company’s cash is held in financial institutions with insurance provided by the Federal Deposit Insurance Corporation ("FDIC") of $250,000 per depositor. At various times, account balances may exceed federally insured limits. |
Accounts Receivable | Accounts Receivables – Accounts receivable are reported at net realizable value. The net realizable value is based on management’s estimate of the amount of receivables that will be collected based on analysis of historical data and trends, as well as review of significant customer accounts. Accounts receivable are considered to be past due when payments are not received within the customer’s credit terms. Accounts are written off when management determines the account is uncollectible. Finance charges are not usually assessed on past-due accounts. |
Inventories | Inventories – Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Inventory write-downs are recorded for shrinkage, damaged, stale and slow-moving items. |
Property, Plant and Equipment | Property, Plant and Equipmen t – Property, plant and equipment are stated at cost net of accumulated depreciation. Major additions and betterments are recorded to the asset accounts, while maintenance and repairs, which do not improve or extend the lives of the assets, are charged to expense accounts as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in operations in the disposal period. Depreciation is determined utilizing the straight-line method over the estimated useful lives of the various assets, which generally range from 2 to 20 years for machinery and equipment, 3 to 10 years for transportation equipment and 8 to 40 years for buildings. Assets held for sale are reported at the lower of the carrying amount or fair value less costs to sell. The Company assesses for impairment on property, plant and equipment upon the occurrence of a triggering event. |
Income Taxes | Income Taxes – The Company accounts for income taxes pursuant to the asset and liability method of ASC 740, Income Taxes, which requires it to recognize current tax liabilities or receivables for the amount of taxes it estimates are payable or refundable for the current year, and deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts and their respective tax bases of assets and liabilities and the expected benefits of net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. The Company follows the provisions of ASC 740-10 related to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740-10 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The benefit of tax positions taken or expected to be taken in the Company’s income tax returns is recognized in the financial statements if such positions are more likely than not of being sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as "unrecognized benefits". A liability is recognized (or amount of net operating loss carryover or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740-10. Interest costs and related penalties related to unrecognized tax benefits are required to be calculated, if applicable. The Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as selling, distribution, and administrative expenses ("SD&A"). As of April 3, 2022 and January 2, 2022, no liability for unrecognized tax benefits was required to be reported. The Company does not expect any significant changes in its unrecognized tax benefits in the next fiscal year. |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets – The Company allocates the cost of acquired companies to the identifiable tangible and intangible assets acquired and liabilities assumed, with the remaining amount classified as goodwill. The identification and valuation of these intangible assets and the determination of the estimated useful lives at the time of acquisition, as well as the completion of impairment tests, require significant management judgments and estimates. These estimates are made based on, among other factors, review of projected future operating results and business plans, economic projections, anticipated highest and best use of future cash flows and the cost of capital. The use of alternative estimates and assumptions could increase or decrease the estimated fair value of goodwill and other intangible assets, and potentially result in a different impact to the Company’s results of operations. Further, changes in business strategy and/or market conditions may significantly impact these judgments and thereby impact the fair value of these assets, which could result in an impairment of the goodwill or intangible assets. Finite-lived intangible assets consist of distribution/customer relationships, technology, certain master distribution rights and certain trademarks. These assets are being amortized over their estimated useful lives. Finite-lived intangible assets are tested for impairment only when management has determined that potential impairment indicators are present. Goodwill and other indefinite-lived intangible assets (including certain trade names, certain master distribution rights and company-owned sales routes) are not amortized but are tested for impairment at least annually and whenever events or circumstances change that indicate impairment may have occurred. The Company tests goodwill for impairment at the reporting unit level. The Company has identified the existing snack food operations as its sole reporting unit. As the Company has early adopted the FASB Accounting Standards Update ("ASU") No. 2017-04, Intangibles - Goodwill and Other ("Topic 350"): Simplifying the Test for Goodwill Impairment, the Company is required to record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU No. 2017-04, Topic 350, also permits an entity to first assess qualitative factors to determine whether it is necessary to perform quantitative impairment tests for goodwill and indefinite-lived intangibles. If an entity believes, as a result of each qualitative assessment, it is more likely than not that the fair value of goodwill or an indefinite-lived intangible asset exceeds its carrying value then a quantitative impairment test is not required. For the latest qualitative analysis performed, which took place on the first day of the fourth quarter of 2021, we had taken into consideration all the events and circumstances listed in FASB ASC 350, Intangibles—Goodwill and Other, in addition to other entity-specific factors that had taken place. We have determined that there was no significant impact that affected the fair value of the reporting unit through April 3, 2022. Therefore, we have determined that it was not necessary to perform a quantitative goodwill impairment test for the reporting unit. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments – Financial instruments held by the Company include cash and cash equivalents, accounts receivable, hedging instruments, purchase commitments on commodities, accounts payable and debt. The carrying value of all cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to their short-term nature. The carrying value of the debt is also estimated to approximate its fair value based upon current market conditions and interest rates. The fair value of the hedging instruments are revalued at each reporting period. |
Revenue Recognition | Revenue Recognition – The Company’s revenues primarily consist of the sale of salty snack items to customers, including supermarkets, mass merchants, club stores, dollar and discount stores, convenience stores, independent grocery stores, drug stores, food service, vending, military, and other channels. The Company sells its products in most regions of the United States primarily through its DSD network, direct to warehouse shipments, and third-party distributors. These revenue contracts generally have a single performance obligation. Revenue, which includes shipping and handling charges billed to the customer, is reported net of variable consideration and consideration payable to customers, including applicable discounts, returns, allowances, trade promotion, consumer coupon redemption, unsaleable product, and other costs. Amounts billed and due from customers are classified as accounts receivables and require payment on a short-term basis and, therefore, the Company does not have any significant financing components. The Company recognizes revenue when (or as) performance obligations are satisfied by transferring control of the goods to customers. Control is transferred upon delivery of the goods to the customer. Shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs. Applicable shipping and handling are included in customer billing and are recorded as revenue as the products’ control is transferred to customers. The Company assesses the goods promised in customer purchase orders and identifies a performance obligation for each promise to transfer a good that is distinct. The Company offers various forms of trade promotions and the methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to provisions based on actual occurrence or performance. The Company’s promotional activities are conducted either through the retail trade or directly with consumers and include activities such as in store displays and events, feature price discounts, consumer coupons, and loyalty programs. The costs of these activities are recognized at the time the related revenue is recorded, which normally precedes the actual cash expenditure. The recognition of these costs therefore requires management judgment regarding the volume of promotional offers that will be redeemed by either the retail trade customer or consumer. These estimates are made using various techniques including historical data on performance of similar promotional programs. The Company has reserves in place of $26.3 million as of April 3, 2022 and $26.5 million as of January 2, 2022. Differences between estimated expense and actual redemptions are recognized as a change in management estimate as actual redemptions are incurred. |
Business Combinations | Business Combinations – The Company evaluates acquisitions of assets and other similar transactions to assess whether or not the transaction should be accounted for as a business combination or asset acquisition by first applying a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen is met, the transaction is accounted for as an asset acquisition. If the screen is not met, further determination is required as to whether or not the Company has acquired inputs and processes that have the ability to create outputs which would meet the definition of a business. Significant judgment is required in the application of the screen test to determine whether an acquisition is a business combination or an acquisition of assets. The Company uses the acquisition method of accounting for acquired businesses. Under the acquisition method, the Company’s financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of the acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. |
Distributor Buyouts | Distributor Buyouts - During the first fiscal quarter of 2022, we bought out and terminated the contracts of multiple third-party distributors who had previously been providing services to the Company. These transactions were accounted for as contract terminations and resulted in expense of $23.0 million for thirteen weeks ended April 3, 2022, and are included within selling and distribution expense on the consolidated statement of operations and comprehensive loss. |
Use of Estimates | Use of Estimates – Management uses estimates and assumptions in preparing the consolidated financial statements in accordance with U.S. GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Some examples, but not a comprehensive list, include sales and promotional allowances, customer returns, allowances for doubtful accounts, inventory valuations, useful lives of fixed assets and related impairment, long-term investments, hedge transactions, goodwill and intangible asset valuations and impairments, incentive compensation, income taxes, self-insurance, contingencies, litigation, and inputs used to calculate deferred tax liabilities, tax valuation allowances, and tax receivable agreements. Actual results could vary materially from the estimates that were used. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards – In December 2019, the FASB issued "ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" ("Topic 740"). This Accounting Standards Update ("ASU") is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. For public business entities, ASU 2019-12 was effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods, with early adoption permitted. We adopted this standard upon the loss of our emerging growth status as of January 2, 2022. Adoption of the new standard did not have a material impact on our consolidated financial statements. 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". This ASU 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 this guidance when relevant contracts are modified upon transition to alternative reference rates. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements and related disclosures. In June 2016, ASU No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments ("Topic 326") was issued. This ASU requires entities to measure the impairment of certain financial instruments, including accounts receivables, based on expected losses rather than incurred losses. This ASU is effective for the Company for fiscal years beginning after December 15, 2022, with early adoption permitted, and will be effective for the Company beginning in 2023. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements and related disclosures. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the provisional fair values of the assets acquired and liabilities assumed by the Company at the date of the acquisition: (in thousands) Purchase consideration $ 40,324 Assets acquired: Accounts receivable 2,776 Inventory 2,704 Prepaid expenses and other assets 182 Property, plant and equipment 24,650 Customer relationships 1,270 Total assets acquired: 31,582 Liabilities assumed: Accounts payable 2,017 Accrued expenses 844 Total liabilities assumed: 2,861 Net identifiable assets acquired 28,721 Goodwill $ 11,603 The following table summarizes the provisional fair values of the assets acquired and liabilities assumed by the Company for the RW Garcia acquisition at the date of the acquisition: (in thousands) Purchase consideration $ 56,430 Tax consideration 1,414 Total consideration 57,844 Assets acquired: Cash 5,401 Accounts receivable 4,660 Inventory 5,674 Prepaid expenses and other assets 2,105 Property, plant and equipment 20,210 Trade name 3,100 Customer relationships 4,720 Total assets acquired: 45,870 Liabilities assumed: Accounts payable 6,017 Accrued expenses 1,838 Deferred tax liability 6,140 Total liabilities assumed: 13,995 Net identifiable assets acquired 31,875 Goodwill $ 25,969 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: (in thousands) As of April 3, 2022 As of January 2, 2022 Finished goods $ 53,166 $ 43,533 Raw materials 33,599 29,428 Maintenance parts 7,013 6,556 Total inventories $ 93,778 $ 79,517 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net, consisted of the following: (in thousands) As of April 3, 2022 As of January 2, 2022 Land $ 25,750 $ 25,886 Buildings 98,675 98,664 Machinery and equipment 214,972 214,319 Land improvements 3,443 3,393 Building improvements 3,288 3,048 Construction-in-progress 19,104 13,745 365,232 359,055 Less: accumulated depreciation (66,576) (55,248) Property, plant and equipment, net $ 298,656 $ 303,807 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | A rollforward of goodwill is as follows: (in thousands) January 2, 2022 $ 915,438 RW Garcia acquisition adjustment 52 Balance as of April 3, 2022 $ 915,490 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net, consisted of the following: (in thousands) As of April 3, 2022 As of January 2, 2022 Subject to amortization: Distributor/customer relationships $ 677,930 $ 677,930 Technology — 43 Trademarks 63,850 63,850 Master distribution rights — 2,221 Amortizable assets, gross 741,780 744,044 Accumulated amortization (54,401) (45,224) Amortizable assets, net 687,379 698,820 Not subject to amortization: Trade names 434,513 434,513 Route assets 8,316 9,176 Intangible assets, net $ 1,130,208 $ 1,142,509 |
ACCRUED EXPENSES AND OTHER (Tab
ACCRUED EXPENSES AND OTHER (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other | Current accrued expenses and other consisted of the following: (in thousands) As of April 3, 2022 January 2, 2022 Accrued compensation and benefits $ 15,183 $ 20,081 Right-of-use liability 10,742 9,152 Accrued freight and manufacturing related costs 8,817 8,928 Insurance liabilities 7,779 8,620 Acquisition tax consideration 1,594 5,660 Accrued interest 494 371 Short term interest rate hedge liability 150 4,548 Accrued dividends — 4,189 Accrued sales tax — 1,300 Other accrued expenses 8,597 8,431 Total accrued expenses and other $ 53,356 $ 71,280 Non-current accrued expenses and other consisted of the following: (in thousands) As of April 3, 2022 As of January 2, 2022 Right-of-use liability $ 24,445 $ 23,226 Tax Receivable Agreement liability 24,336 24,443 Supplemental retirement and salary continuation plans 7,245 8,117 Other long term accrued expenses 83 52 Total accrued expenses and other $ 56,109 $ 55,838 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company was in compliance with its financial covenant as of April 3, 2022. Debt (in thousands) Issue Date Principal Balance Interest Rate Maturity Date April 3, 2022 January 2, 2022 Term loan B June-21 $ 795,000 3.21 % January-28 $ 785,248 $ 787,236 Equipment loans 30,476 26,655 Revolving credit facility 56,000 36,000 Net impact of debt issuance costs and original issue discounts (7,588) (7,929) Total long-term debt 864,136 841,962 Less: current portion (11,414) (11,414) Long term portion of term debt and financing obligations $ 852,722 $ 830,548 |
Schedule of Amounts Outstanding Under Notes Payable | Amounts outstanding under notes payable consisted of the following: (in thousands) As of April 3, 2022 As of January 2, 2022 Note payable – IO notes $ 22,387 $ 24,822 Capital lease 8,229 8,166 Other 5,570 1,678 Total notes payable 36,186 34,666 Less: current portion (13,057) (9,957) Long term portion of notes payable $ 23,129 $ 24,709 |
Schedule of Interest Expense | Interest expense consisted of the following: (in thousands) Thirteen weeks ended April 3, 2022 Thirteen weeks ended April 4, 2021 Company’s ABL facility and other long-term debt $ 8,331 $ 7,574 Amortization of deferred financing fees 341 2,870 IO loans 431 417 Total interest $ 9,103 $ 10,861 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND PURCHASE COMMITMENTS (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights | A reconciliation of the changes in the warrant liability during the thirteen weeks ended April 3, 2022 is as follows: (in thousands) Fair value of warrant liabilities as of January 2, 2022 $ 46,224 Gain on remeasurement of warrant liability (1,944) Fair value of warrant liabilities as of April 3, 2022 $ 44,280 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of April 3, 2022: (in thousands) Level I Level II Level III Total Assets: Cash and cash equivalents $ 14,899 $ — $ — $ 14,899 Interest rate swaps — 25,593 — 25,593 Total assets $ 14,899 $ 25,593 $ — $ 40,492 Liabilities Commodity contracts $ — $ 54 $ — $ 54 Interest rate swaps — 174 — 174 Private placement warrants — 44,280 — 44,280 Debt — 864,136 — 864,136 Total liabilities $ — $ 908,644 $ — $ 908,644 The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of January 2, 2022: (in thousands) Level I Level II Level III Total Assets: Cash and cash equivalents $ 41,898 $ — $ — $ 41,898 Interest rate swaps — 2,208 — 2,208 Total assets $ 41,898 $ 2,208 $ — $ 44,106 Liabilities Commodity contracts $ — $ 54 $ — $ 54 Interest rate swaps — 4,600 — 4,600 Private placement warrants — 46,224 — 46,224 Debt — 841,962 — 841,962 Total liabilities $ — $ 892,840 $ — $ 892,840 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Equity [Abstract] | |
Schedule of Changes to the Balance in Accumulated Other Comprehensive (Loss) | Changes to the balance in accumulated other comprehensive income were as follows: (in thousands) Gain on Balance as of January 3, 2021 $ 924 Unrealized gain on cash flow hedges 822 Balance as of April 4, 2021 $ 1,746 Balance as of January 2, 2022 $ 3,715 Unrealized gain on cash flow hedges 27,809 Balance as of April 3, 2022 $ 31,524 |
SUPPLEMENTARY CASH FLOW INFOR_2
SUPPLEMENTARY CASH FLOW INFORMATION (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental | (in thousands) Thirteen weeks ended April 3, 2022 Thirteen weeks ended April 4, 2021 Cash paid for interest $ 9,627 $ 9,787 Refunds related to income taxes $ 4,075 $ 182 Payments for income taxes $ 107 $ — Dividends paid $ 4,189 $ 4,261 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles the numerators and denominators used in the computations of both basic and diluted earnings per share: (in thousands, except share data) Thirteen weeks ended April 3, 2022 Thirteen weeks ended April 4, 2021 Basic and diluted earnings per share: Numerator: Net loss attributable to common stockholders $ (17,570) $ (22,529) Denominator: Weighted average Class A Common Stock shares, basic 78,572,404 75,927,005 Basic and diluted earnings (loss) per share $ (0.22) $ (0.30) Anti-dilutive securities excluded from diluted earnings per share calculation: Warrants 1,901,376 4,092,590 RSUs 57,914 1,365,291 PSUs 40,545 142,541 Stock options — 93,211 Total 1,999,835 5,693,633 Class V Common Stock not subject to earnings per share calculation 59,349,000 60,349,000 Net loss attributable to noncontrolling interest $ (14,328) $ (820) |
OPERATIONS AND SUMMARY OF SIG_3
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) $ in Millions | 3 Months Ended |
Apr. 03, 2022USD ($) | |
Property, Plant and Equipment [Line Items] | |
Distributors' assets accounted for as contract termination expense | $ 23 |
Minimum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 2 years |
Minimum | Transportation Equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Minimum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 8 years |
Maximum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Maximum | Transportation Equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Maximum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
OPERATIONS AND SUMMARY OF SIG_4
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Accounting Policies [Abstract] | ||
Promotional program reserve | $ 26.3 | $ 26.5 |
ACQUISITIONS - Vitner's (Detail
ACQUISITIONS - Vitner's (Details) - USD ($) $ in Thousands | Jan. 11, 2021 | Apr. 04, 2021 |
Business Acquisition [Line Items] | ||
Payments to acquire intangible assets | $ 1,200 | |
Trademarks | Snak-King Corp. | ||
Business Acquisition [Line Items] | ||
Acquired customer relationships and trademarks, amortization period | 15 years | |
Customer Relationships | Snak-King Corp. | ||
Business Acquisition [Line Items] | ||
Acquired customer relationships and trademarks, amortization period | 15 years | |
Snak-King Corp. | ||
Business Acquisition [Line Items] | ||
Payment to acquire assets | $ 25,200 | |
Snak-King Corp. | Goodwill | ||
Business Acquisition [Line Items] | ||
Payment to acquire assets | 17,900 | |
Snak-King Corp. | Trademarks | ||
Business Acquisition [Line Items] | ||
Payments to acquire intangible assets | 2,900 | |
Snak-King Corp. | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Payments to acquire intangible assets | 800 | |
Snak-King Corp. | DSD Routes | ||
Business Acquisition [Line Items] | ||
Payments to acquire intangible assets | 1,700 | |
Snak-King Corp. | Other Net Assets | ||
Business Acquisition [Line Items] | ||
Payments to acquire intangible assets | $ 1,900 |
ACQUISITIONS - Festida Foods (D
ACQUISITIONS - Festida Foods (Details) - USD ($) $ in Thousands | May 11, 2021 | Apr. 03, 2022 | Jan. 02, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 915,490 | $ 915,438 | |
Festida Foods | |||
Business Acquisition [Line Items] | |||
Payment to acquire assets | $ 40,324 | ||
Festida Foods | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 2,776 | ||
Inventory | 2,704 | ||
Prepaid expenses and other assets | 182 | ||
Property, plant and equipment | 24,650 | ||
Total assets acquired: | 31,582 | ||
Accounts payable | 2,017 | ||
Accrued expenses | 844 | ||
Total liabilities assumed: | 2,861 | ||
Net identifiable assets acquired | 28,721 | ||
Goodwill | $ 11,603 | ||
Festida Foods | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Acquired customer relationships and trademarks, amortization period | 10 years | ||
Festida Foods | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Customer relationships | $ 1,270 |
ACQUISITIONS - RW Garcia (Detai
ACQUISITIONS - RW Garcia (Details) - USD ($) $ in Thousands | Dec. 06, 2021 | Nov. 02, 2021 | Apr. 03, 2022 | Jan. 02, 2022 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 915,490 | $ 915,438 | ||
R.W. Garcia Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Payment to acquire assets | $ 6,000 | $ 56,430 | ||
R.W. Garcia Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Tax consideration | 1,414 | |||
Total consideration | 57,844 | |||
Cash | 5,401 | |||
Accounts receivable | 4,660 | |||
Inventory | 5,674 | |||
Prepaid expenses and other assets | 2,105 | |||
Property, plant and equipment | 20,210 | |||
Total assets acquired: | 45,870 | |||
Accounts payable | 6,017 | |||
Accrued expenses | 1,838 | |||
Deferred tax liability | 6,140 | |||
Total liabilities assumed: | 13,995 | |||
Net identifiable assets acquired | 31,875 | |||
Goodwill | $ 25,969 | |||
R.W. Garcia Holdings, LLC | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Acquired customer relationships and trademarks, amortization period | 15 years | |||
R.W. Garcia Holdings, LLC | Trade names | ||||
Business Acquisition [Line Items] | ||||
Customer relationships | $ 3,100 | |||
R.W. Garcia Holdings, LLC | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Customer relationships | $ 4,720 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Apr. 03, 2022 | Jan. 02, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 53,166 | $ 43,533 |
Raw materials | 33,599 | 29,428 |
Maintenance parts | 7,013 | 6,556 |
Total inventories | $ 93,778 | $ 79,517 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Apr. 03, 2022 | Jan. 02, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 365,232 | $ 359,055 |
Less: accumulated depreciation | (66,576) | (55,248) |
Goodwill | 298,656 | 303,807 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 25,750 | 25,886 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 98,675 | 98,664 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 214,972 | 214,319 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 3,443 | 3,393 |
Building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 3,288 | 3,048 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 19,104 | $ 13,745 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 12.4 | $ 9.9 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET - Goodwill (Details) $ in Thousands | 3 Months Ended |
Apr. 03, 2022USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 915,438 |
Ending balance | 915,490 |
R.W. Garcia | |
Goodwill [Roll Forward] | |
RW Garcia acquisition adjustment | $ 52 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET - Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 03, 2022 | Jan. 02, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | $ 741,780 | $ 744,044 |
Accumulated amortization | (54,401) | (45,224) |
Amortizable assets, net | 687,379 | 698,820 |
Indefinite-lived Intangible Assets [Line Items] | ||
Non-current portion of notes receivable | 1,130,208 | 1,142,509 |
Trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 434,513 | 434,513 |
Route assets | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 8,316 | 9,176 |
Distributor/customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 677,930 | 677,930 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 0 | 43 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 63,850 | 63,850 |
Master distribution rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | $ 0 | $ 2,221 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Impairment and other charges | $ 3,319 | $ 0 |
Amortization of intangible assets | 9,400 | $ 9,500 |
Distribution Rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Impairment and other charges | 2,000 | |
Distributor/customer relationships decrease amount | $ 2,200 |
NOTES RECEIVABLE (Details)
NOTES RECEIVABLE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Jan. 02, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other notes receivable | $ 6,401 | $ 6,706 |
Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other notes receivable | 22,900 | 24,800 |
Other Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other notes receivable | 200 | 200 |
IO Notes Receivable | Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other notes receivable | $ 25,800 | $ 27,200 |
IO Notes Receivable | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest rate | 0.00% | |
Term of agreement | 1 year | |
IO Notes Receivable | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest rate | 8.55% | |
Term of agreement | 10 years |
ACCRUED EXPENSES AND OTHER - Cu
ACCRUED EXPENSES AND OTHER - Current Accrued Expenses (Details) - USD ($) $ in Thousands | Apr. 03, 2022 | Jan. 02, 2022 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 15,183 | $ 20,081 |
Right-of-use liability | 10,742 | 9,152 |
Accrued freight and manufacturing related costs | 8,817 | 8,928 |
Insurance liabilities | 7,779 | 8,620 |
Acquisition tax consideration | 1,594 | 5,660 |
Accrued interest | 494 | 371 |
Short term interest rate hedge liability | 150 | 4,548 |
Accrued dividends | 0 | 4,189 |
Accrued sales tax | 0 | 1,300 |
Other accrued expenses | 8,597 | 8,431 |
Non-current portion of other notes payable | $ 53,356 | $ 71,280 |
ACCRUED EXPENSES AND OTHER - No
ACCRUED EXPENSES AND OTHER - Noncurrent Accrued Expenses (Details) - USD ($) $ in Thousands | Apr. 03, 2022 | Jan. 02, 2022 |
Payables and Accruals [Abstract] | ||
Right-of-use liability | $ 24,445 | $ 23,226 |
Tax Receivable Agreement liability | 24,336 | 24,443 |
Supplemental retirement and salary continuation plans | 7,245 | 8,117 |
Other long term accrued expenses | 83 | 52 |
Total accrued expenses and other | $ 56,109 | $ 55,838 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total accrued expenses and other |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Details) - USD ($) | Jun. 22, 2021 | Jan. 20, 2021 | Dec. 14, 2020 | Nov. 21, 2017 | Apr. 03, 2022 | Apr. 04, 2021 | Oct. 03, 2021 | Jan. 02, 2022 | Dec. 29, 2019 | Jan. 03, 2021 | Dec. 18, 2020 | Apr. 01, 2020 |
Debt Instrument [Line Items] | ||||||||||||
Borrowings on term debt and notes payable | $ 8,726,000 | $ 720,000,000 | ||||||||||
Payment of debt issuance cost | 8,372,000 | |||||||||||
Distributors' assets accounted for as contract termination expense | 23,000,000 | |||||||||||
Long-term debt related to buyback of distributors | 864,136,000 | $ 841,962,000 | ||||||||||
Distribution rights | 1,300,000 | 1,300,000 | ||||||||||
Proceeds from the sale of IO notes | 2,295,000 | |||||||||||
Kitchen Cooked | Intellectual Property | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Deferred payment obligations | 500,000 | |||||||||||
Deferred obligations, outstanding | 300,000 | |||||||||||
Other | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt related to buyback of distributors | 5,570,000 | 1,678,000 | ||||||||||
Other | Buyback of Distributors | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt related to buyback of distributors | $ 4,100,000 | |||||||||||
Bridge Credit Agreement | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term line of credit | $ 370,000,000 | |||||||||||
Amount withdrawn from line of credit | $ 490,000,000 | |||||||||||
Repayments of with company's warrants | 120,000,000 | |||||||||||
Repayments of long-term lines of credit | 370,000,000 | |||||||||||
Bridge Credit Agreement | LIBOR | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 4.25% | |||||||||||
Bridge Credit Agreement | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of with company's warrants | 12,000,000 | |||||||||||
Finance fees | $ 7,200,000 | 2,600,000 | ||||||||||
Bridge Credit Agreement | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repurchased amount of debt | $ 358,000,000 | |||||||||||
Term loan B | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest Rate | 3.21% | |||||||||||
Principal Balance | $ 795,000,000 | 720,000,000 | $ 795,000,000 | |||||||||
Finance fees | 8,400,000 | |||||||||||
Repurchased amount of debt | $ 410,000,000 | |||||||||||
Borrowings on term debt and notes payable | $ 75,000,000 | |||||||||||
Payment of debt issuance cost | $ 700,000 | |||||||||||
Long-term debt related to buyback of distributors | 785,248,000 | 787,236,000 | ||||||||||
Term loan B | Secured Debt | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 3.00% | |||||||||||
IO Notes Payable | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes receivable sold | 11,800,000 | $ 33,200,000 | ||||||||||
Proceeds from the sale of IO notes | $ 12,500,000 | $ 34,100,000 | ||||||||||
Revolving credit facility | ABL Facility | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt related to buyback of distributors | 56,000,000 | 36,000,000 | ||||||||||
Revolving credit facility | ABL Facility | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount | $ 161,000,000 | $ 116,000,000 | ||||||||||
Long-term line of credit | 56,000,000 | 36,000,000 | ||||||||||
Available for borrowing, net of letters of credit | $ 80,800,000 | 96,900,000 | ||||||||||
Unused line fees | 0.50% | |||||||||||
Revolving credit facility | ABL Facility | Line of Credit | Minimum | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.50% | |||||||||||
Interest Rate | 1.95% | |||||||||||
Revolving credit facility | ABL Facility | Line of Credit | Minimum | Prime Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.50% | |||||||||||
Interest Rate | 3.75% | 3.75% | ||||||||||
Revolving credit facility | ABL Facility | Line of Credit | Maximum | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.00% | |||||||||||
Interest Rate | 1.61% | |||||||||||
Revolving credit facility | ABL Facility | Line of Credit | Maximum | Prime Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.00% | |||||||||||
Standby Letters of Credit | ABL Facility | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal Balance | $ 10,300,000 | $ 10,300,000 |
LONG-TERM DEBT - Long-Term Debt
LONG-TERM DEBT - Long-Term Debt (Details) - USD ($) $ in Thousands | Apr. 03, 2022 | Jan. 02, 2022 | Jun. 22, 2021 | Jan. 20, 2021 |
Debt Instrument [Line Items] | ||||
Net impact of debt issuance costs and original issue discounts | $ (7,588) | $ (7,929) | ||
Total long-term debt | 864,136 | 841,962 | ||
Less: current portion | (11,414) | (11,414) | ||
Long term portion of term debt and financing obligations | 852,722 | 830,548 | ||
Equipment loans | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 30,476 | 26,655 | ||
Term loan B | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Principal Balance | $ 795,000 | $ 795,000 | $ 720,000 | |
Interest Rate | 3.21% | |||
Total long-term debt | $ 785,248 | 787,236 | ||
ABL Facility | Revolving credit facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 56,000 | $ 36,000 |
LONG-TERM DEBT - Aggregate (Det
LONG-TERM DEBT - Aggregate (Details) - USD ($) $ in Thousands | Apr. 03, 2022 | Jan. 02, 2022 |
Debt Instrument [Line Items] | ||
Total non-current liabilities | $ 864,136 | $ 841,962 |
Capital lease | 8,229 | 8,166 |
Note payable – IO notes | ||
Debt Instrument [Line Items] | ||
Total non-current liabilities | 22,387 | 24,822 |
Other | ||
Debt Instrument [Line Items] | ||
Total non-current liabilities | 5,570 | 1,678 |
Total notes payable | ||
Debt Instrument [Line Items] | ||
Total notes payable | 36,186 | 34,666 |
Less: current portion | (13,057) | (9,957) |
Long term portion of notes payable | $ 23,129 | $ 24,709 |
LONG-TERM DEBT - Interest Expen
LONG-TERM DEBT - Interest Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Debt Disclosure [Abstract] | ||
Company’s ABL facility and other long-term debt | $ 8,331 | $ 7,574 |
Amortization of deferred financing fees | 341 | 2,870 |
IO loans | 431 | 417 |
Earnings (loss) per Class A Common stock: (in dollars) | $ 9,103 | $ 10,861 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND PURCHASE COMMITMENTS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 03, 2022 | Apr. 04, 2021 | Dec. 21, 2021 | Sep. 06, 2019 | |
Derivative [Line Items] | ||||
Purchase commitments | $ 46.3 | |||
Purchase commitment losses | $ 0 | $ 0 | ||
Interest rate swaps | Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Fixed interest rate | 3.94% | 1.3885% | 1.339% | |
Variable interest rate | 0.00% | 0.00% | ||
Notional amount | $ 250 | $ 250 | ||
Notional amount, accreted | $ 500 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND PURCHASE COMMITMENTS - Reconciliation of the Changes in the Warrant Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Reconciliation Of Changes In Warrant Liability [Roll Forward] | ||
Fair value of warrant liabilities, beginning balance | $ 46,224 | |
Gain on remeasurement of warrant liability | (1,944) | $ 21,501 |
Fair value of warrant liabilities, ending balance | $ 44,280 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Apr. 03, 2022 | Jan. 02, 2022 |
Assets: | ||
Cash and cash equivalents | $ 14,899 | $ 41,898 |
Total assets | 40,492 | 44,106 |
Liabilities | ||
Debt | 864,136 | 841,962 |
Total liabilities | 908,644 | 892,840 |
Commodity contracts | ||
Liabilities | ||
Derivative liabilities | 54 | 54 |
Interest rate swaps | ||
Assets: | ||
Interest rate swaps | 25,593 | 2,208 |
Liabilities | ||
Derivative liabilities | 174 | 4,600 |
Private placement warrants | ||
Liabilities | ||
Derivative liabilities | 44,280 | 46,224 |
Level I | ||
Assets: | ||
Cash and cash equivalents | 14,899 | 41,898 |
Total assets | 14,899 | 41,898 |
Liabilities | ||
Debt | 0 | 0 |
Total liabilities | 0 | 0 |
Level I | Commodity contracts | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level I | Interest rate swaps | ||
Assets: | ||
Interest rate swaps | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level I | Private placement warrants | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level II | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Total assets | 25,593 | 2,208 |
Liabilities | ||
Debt | 864,136 | 841,962 |
Total liabilities | 908,644 | 892,840 |
Level II | Commodity contracts | ||
Liabilities | ||
Derivative liabilities | 54 | 54 |
Level II | Interest rate swaps | ||
Assets: | ||
Interest rate swaps | 25,593 | 2,208 |
Liabilities | ||
Derivative liabilities | 174 | 4,600 |
Level II | Private placement warrants | ||
Liabilities | ||
Derivative liabilities | 44,280 | 46,224 |
Level III | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Debt | 0 | 0 |
Total liabilities | 0 | 0 |
Level III | Commodity contracts | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level III | Interest rate swaps | ||
Assets: | ||
Interest rate swaps | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level III | Private placement warrants | ||
Liabilities | ||
Derivative liabilities | $ 0 | $ 0 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - USD ($) $ in Millions | Jan. 07, 2022 | Jan. 02, 2022 | Apr. 03, 2022 |
Other Commitments [Line Items] | |||
Loss contingency accrual, payments | $ 0.9 | ||
Cadence Bank | |||
Other Commitments [Line Items] | |||
Maximum future payment of guaranteed loans | 25.00% | ||
Maximum future payment amount | $ 2 | ||
Cadence Bank | Payment Guarantee | |||
Other Commitments [Line Items] | |||
Outstanding balance of guaranteed loans | $ 2.2 | $ 2 | |
Bank Of America | |||
Other Commitments [Line Items] | |||
Maximum future payment of guaranteed loans | 25.00% | ||
Bank Of America | Payment Guarantee | |||
Other Commitments [Line Items] | |||
Outstanding balance of guaranteed loans | 18.6 | $ 22.2 | |
Notes purchased | 19.7 | $ 18.5 | |
M&T Bank | |||
Other Commitments [Line Items] | |||
Maximum future payment of guaranteed loans | 25.00% | ||
M&T Bank | Payment Guarantee | |||
Other Commitments [Line Items] | |||
Outstanding balance of guaranteed loans | 4.9 | $ 4.4 | |
Commonwealth Of Pennsylvania Tax Assessment | |||
Other Commitments [Line Items] | |||
Reserve for tax assessment | $ 1.3 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | |
Equity [Abstract] | |||
Accumulated other comprehensive income | $ 31,500 | $ 3,700 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 679,705 | ||
Other comprehensive income | 27,809 | $ 822 | |
Ending Balance | 674,548 | ||
Gains/(Losses) on Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 3,715 | 924 | |
Other comprehensive income | 27,809 | 822 | |
Ending Balance | $ 31,524 | $ 1,746 |
SUPPLEMENTARY CASH FLOW INFOR_3
SUPPLEMENTARY CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 9,627 | $ 9,787 |
Refunds related to income taxes | 4,075 | 182 |
Payments for income taxes | 107 | 0 |
Dividends paid | $ 4,189 | $ 4,261 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 2,772 | $ 1,004 | |
Effective income tax rate | (9.50%) | (4.50%) | |
Effective income tax rate, before discrete items | (7.20%) | ||
Discrete tax expense | $ 500 | ||
Long-term accrued expenses and other | $ 24,500 | $ 24,600 |
WARRANTS (Details)
WARRANTS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | |
Class of Warrant or Right [Line Items] | |||
(Gain) loss on remeasurement of warrant liability | $ 1,944 | $ (21,501) | |
Warrants | |||
Class of Warrant or Right [Line Items] | |||
New issues during period (in shares) | 15,833,332 | ||
Forward Purchase Warrant | |||
Class of Warrant or Right [Line Items] | |||
New issues during period (in shares) | 1,166,666 | ||
Private Placement Warrants | |||
Class of Warrant or Right [Line Items] | |||
New issues during period (in shares) | 7,200,000 | ||
Warrants outstanding (in shares) | 7,200,000 | 7,200,000 |
EQUITY (Details)
EQUITY (Details) | 3 Months Ended | |
Apr. 03, 2022USD ($)$ / sharesshares | Jan. 02, 2022$ / sharesshares | |
Forward Purchase Shares And Warrants | ||
Class of Stock [Line Items] | ||
New issues during period (in shares) | 3,500,000 | |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 |
Common stock issued (in shares) | 78,597,175 | 77,644,645 |
Common stock outstanding (in shares) | 78,597,175 | 77,644,645 |
Class A Common Stock | Forward Purchase Shares And Warrants | ||
Class of Stock [Line Items] | ||
New issues during period (in shares) | 1,166,666 | |
Stock price (in dollars per share) | $ / shares | $ 11.50 | |
Aggregate proceeds from issuance of common stock | $ | $ 35,000,000 | |
Forward Purchase Class A | ||
Class of Stock [Line Items] | ||
Shares converted (in shares) | 3,500,000 | |
Common Class B | ||
Class of Stock [Line Items] | ||
Common stock, conversion ratio | 1 | |
Shares converted (in shares) | 2,000,000 | |
Class V Common Stock | ||
Class of Stock [Line Items] | ||
Common stock authorized (in shares) | 61,249,000 | 61,249,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 |
Common stock issued (in shares) | 59,349,000 | 59,349,000 |
Common stock outstanding (in shares) | 59,349,000 | 59,349,000 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | |
Numerator: | |||
Net loss attributable to common stockholders | $ (17,570) | $ (22,529) | |
Denominator: | |||
Weighted average Class A Common Stock shares, basic (in shares) | 78,572,404 | 75,927,005 | |
Basic earnings (loss) per share (in dollars per share) | $ (0.22) | $ (0.30) | |
Diluted earnings (loss) per share (in dollars per share) | $ (0.22) | $ (0.30) | |
Effect of dilutive securities | |||
Antidilutive securities excluded from diluted earnings per share calculation (in shares) | 1,999,835 | 5,693,633 | |
Net loss attributable to noncontrolling interest | $ (14,328) | $ (820) | |
Class V Common Stock | |||
Effect of dilutive securities | |||
Class V Common Stock not subject to earnings per share calculation (in shares) | 59,349,000 | 60,349,000 | |
Common stock outstanding (in shares) | 59,349,000 | 59,349,000 | |
Common stock issued (in shares) | 59,349,000 | 59,349,000 | |
Warrants | |||
Effect of dilutive securities | |||
Antidilutive securities excluded from diluted earnings per share calculation (in shares) | 1,901,376 | 4,092,590 | |
RSUs | |||
Effect of dilutive securities | |||
Antidilutive securities excluded from diluted earnings per share calculation (in shares) | 57,914 | 1,365,291 | |
PSUs | |||
Effect of dilutive securities | |||
Antidilutive securities excluded from diluted earnings per share calculation (in shares) | 40,545 | 142,541 | |
Stock options | |||
Effect of dilutive securities | |||
Antidilutive securities excluded from diluted earnings per share calculation (in shares) | 0 | 93,211 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Apr. 28, 2022 | Apr. 18, 2022 | Apr. 07, 2022 | Apr. 03, 2022 | Apr. 04, 2021 |
Subsequent Event [Line Items] | |||||
Dividends paid | $ 4,189 | $ 4,261 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Manufacturing facility purchase price | $ 38,400 | ||||
Liabilities assumed | 1,300 | ||||
Payment to acquire assets | 10,400 | ||||
Subsequent Event | Class A Common Stock | |||||
Subsequent Event [Line Items] | |||||
Dividends declared (in dollars per share) | $ 0.054 | ||||
Dividends paid | $ 4,200 | ||||
Proceeds from issuance of common stock | $ 28,000 | ||||
New issues during period (in shares) | 2.1 |