Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 03, 2021 | Aug. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 3, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | LESL | |
Entity Registrant Name | LESLIE’S, INC. | |
Entity Central Index Key | 0001821806 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --10-02 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 189,323,108 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-39667 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-8397425 | |
Entity Address, Address Line One | 2005 East Indian School Road | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85016 | |
City Area Code | (602) | |
Local Phone Number | 366-3999 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 03, 2021 | Oct. 03, 2020 | Jun. 27, 2020 |
Current assets | |||
Cash and cash equivalents | $ 309,077 | $ 157,072 | $ 148,901 |
Accounts and other receivables, net | 47,848 | 31,481 | 35,854 |
Inventories | 224,526 | 148,966 | 181,108 |
Prepaid expenses and other current assets | 28,615 | 34,614 | 24,539 |
Total current assets | 610,066 | 372,133 | 390,402 |
Property and equipment, net | 66,363 | 66,391 | 69,254 |
Operating lease right-of-use assets | 169,001 | 177,655 | 191,343 |
Goodwill and other intangibles, net | 127,740 | 121,186 | 121,711 |
Deferred tax assets | 6,386 | 6,583 | |
Other assets | 18,238 | 2,490 | 1,193 |
Total assets | 997,794 | 746,438 | 773,903 |
Current liabilities | |||
Accounts payable | 155,525 | 92,372 | 133,090 |
Accrued expenses | 117,888 | 101,167 | 112,628 |
Operating lease liabilities | 53,700 | 54,459 | 63,606 |
Income taxes payable | 18,906 | 1,857 | |
Current portion of long-term debt | 8,100 | 8,341 | 8,341 |
Total current liabilities | 354,119 | 258,196 | 317,665 |
Deferred tax liabilities | 782 | ||
Operating lease liabilities, noncurrent | 118,941 | 130,234 | 142,307 |
Long-term debt, net | 787,731 | 1,179,550 | 1,182,780 |
Other long-term liabilities | 2,729 | 5,457 | 1 |
Total liabilities | 1,263,520 | 1,573,437 | 1,643,535 |
Commitments and contingencies | |||
Stockholders’ deficit | |||
Common stock, $0.001 par value, 1,000,000,000 shares authorized and 189,284,566 issued and outstanding as of July 3, 2021 and 156,500,000 shares authorized, issued and outstanding as of October 3, 2020 and June 27, 2020, respectively. | 189 | 157 | 157 |
Additional paid in capital (deficit) | 201,085 | (278,063) | (278,056) |
Retained deficit | (467,000) | (549,093) | (591,733) |
Total stockholders’ deficit | (265,726) | (826,999) | (869,632) |
Total liabilities and stockholders’ deficit | $ 997,794 | $ 746,438 | $ 773,903 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 03, 2021 | Oct. 03, 2020 | Jun. 27, 2020 |
Statement Of Financial Position [Abstract] | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 156,500,000 | 156,500,000 |
Common stock, shares issued | 189,284,566 | 156,500,000 | 156,500,000 |
Common stock, shares outstanding | 189,284,566 | 156,500,000 | 156,500,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Income Statement [Abstract] | ||||
Sales | $ 596,543 | $ 479,929 | $ 933,991 | $ 729,285 |
Cost of merchandise and services sold | 312,845 | 269,160 | 526,895 | 437,526 |
Gross profit | 283,698 | 210,769 | 407,096 | 291,759 |
Selling, general and administrative expenses | 117,264 | 99,165 | 265,127 | 214,933 |
Operating income | 166,434 | 111,604 | 141,969 | 76,826 |
Other expense: | ||||
Interest expense | 7,399 | 19,472 | 27,041 | 64,597 |
Loss on debt extinguishment | 9,169 | |||
Other expenses, net | 861 | 585 | 1,917 | 910 |
Total other expense | 8,260 | 20,057 | 38,127 | 65,507 |
Income before taxes | 158,174 | 91,547 | 103,842 | 11,319 |
Income tax expense (benefit) | 39,372 | 19,613 | 21,749 | (4,602) |
Net income | $ 118,802 | $ 71,934 | $ 82,093 | $ 15,921 |
Net income per share: | ||||
Basic | $ 0.63 | $ 0.46 | $ 0.45 | $ 0.10 |
Diluted | $ 0.61 | $ 0.46 | $ 0.43 | $ 0.10 |
Weighted average shares outstanding: | ||||
Basic | 188,264 | 156,500 | 184,021 | 156,500 |
Diluted | 194,200 | 156,500 | 189,603 | 156,500 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect Period of Adoption Adjustment | Common Stock | Additional Paid in Capital (Deficit) | Retained Deficit | Retained DeficitCumulative Effect Period of Adoption Adjustment |
Beginning Balance at Mar. 28, 2019 | $ (942,163) | $ 157 | $ (278,653) | $ (663,667) | ||
Beginning Balance, Shares at Mar. 28, 2019 | 156,500 | |||||
Equity-based compensation | 597 | 597 | ||||
Net income | 71,934 | 71,934 | ||||
Ending Balance at Jun. 27, 2020 | (869,632) | $ 157 | (278,056) | (591,733) | ||
Ending Balance, Shares at Jun. 27, 2020 | 156,500 | |||||
Beginning Balance at Sep. 28, 2019 | (887,357) | $ 12 | $ 157 | (279,848) | (607,666) | $ 12 |
Beginning Balance, Shares at Sep. 28, 2019 | 156,500 | |||||
Equity-based compensation | 1,792 | 1,792 | ||||
Net income | 15,921 | 15,921 | ||||
Ending Balance at Jun. 27, 2020 | (869,632) | $ 157 | (278,056) | (591,733) | ||
Ending Balance, Shares at Jun. 27, 2020 | 156,500 | |||||
Beginning Balance at Oct. 03, 2020 | (826,999) | $ 157 | (278,063) | (549,093) | ||
Beginning Balance, Shares at Oct. 03, 2020 | 156,500 | |||||
Issuance of shares under stock incentive plans | 2 | $ 2 | ||||
Issuance of shares under stock incentive plans, Shares | 2,785 | |||||
Issuance of common stock upon initial public offering,net of offering costs | 458,587 | $ 30 | 458,557 | |||
Issuance of common stock upon initial public offering, net of offering costs, Shares | 30,000 | |||||
Equity-based compensation | 20,591 | 20,591 | ||||
Net income | 82,093 | 82,093 | ||||
Ending Balance at Jul. 03, 2021 | (265,726) | $ 189 | 201,085 | (467,000) | ||
Ending Balance, Shares at Jul. 03, 2021 | 189,285 | |||||
Beginning Balance at Apr. 03, 2021 | (391,010) | $ 187 | 194,605 | (585,802) | ||
Beginning Balance, Shares at Apr. 03, 2021 | 186,885 | |||||
Issuance of shares under stock incentive plans | 2 | $ 2 | ||||
Issuance of shares under stock incentive plans, Shares | 2,400 | |||||
Equity-based compensation | 6,480 | 6,480 | ||||
Net income | 118,802 | 118,802 | ||||
Ending Balance at Jul. 03, 2021 | $ (265,726) | $ 189 | $ 201,085 | $ (467,000) | ||
Ending Balance, Shares at Jul. 03, 2021 | 189,285 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 03, 2021 | Jun. 27, 2020 | |
Operating Activities | ||
Net income | $ 82,093 | $ 15,921 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 19,205 | 20,462 |
Equity-based compensation | 20,591 | 1,792 |
Amortization of deferred financing costs and debt discounts | 1,551 | 2,548 |
Provision for doubtful accounts | 134 | 368 |
Deferred income taxes | 197 | (457) |
(Gain) loss on disposition of assets | (1,668) | 486 |
Loss on debt extinguishment | 9,169 | |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | (16,501) | (16,194) |
Inventories | (74,401) | (30,380) |
Prepaid expenses and other current assets | 6,289 | (2,993) |
Other assets | (15,696) | 227 |
Accounts payable and accrued expenses | 73,761 | 86,283 |
Income taxes payable | 17,049 | (6,713) |
Operating lease assets and liabilities, net | (3,397) | 14,571 |
Net cash provided by operating activities | 118,376 | 85,921 |
Investing Activities | ||
Purchases of property and equipment | (17,799) | (15,483) |
Business acquisitions, net of cash acquired | (6,806) | (6,188) |
Proceeds from disposition of fixed assets | 2,429 | 7 |
Net cash used in investing activities | (22,176) | (21,664) |
Financing Activities | ||
Borrowings on revolving commitment | 238,750 | |
Payments on revolving commitment | (238,750) | |
Repayment of long term debt | (394,110) | (6,255) |
Issuance of long term debt | 907 | |
Payment of deferred financing costs | (9,579) | |
Proceeds from issuance of common stock upon initial public offering, net | 458,587 | |
Net cash provided by (used in) financing activities | 55,805 | (6,255) |
Net increase in cash and cash equivalents | 152,005 | 58,002 |
Cash and cash equivalents, beginning of period | 157,072 | 90,899 |
Cash and cash equivalents, end of period | 309,077 | 148,901 |
Supplemental Disclosure of Cash Payments for: | ||
Interest | 29,549 | 68,599 |
Income taxes | $ 4,503 | $ 2,832 |
Business and Operations
Business and Operations | 9 Months Ended |
Jul. 03, 2021 | |
Accounting Policies [Abstract] | |
Business and Operations | Note 1—Business and Operations Leslie’s, Inc. (“Leslie’s,” “we,” “our,” “us,” “its,” or the “Company”) is the leading direct-to-consumer pool and spa care brand. We market and sell pool and spa supplies and related products and services, which primarily consist of maintenance items such as chemicals, equipment and parts, cleaning accessories, as well as safety, recreational, and fitness-related products. We currently market our products through |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jul. 03, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2—Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation We prepared the accompanying interim condensed consolidated financial statements following United States generally accepted accounting principles (“GAAP”). The financial statements include all normal and recurring adjustments that are necessary for a fair presentation of our financial position and operating results. The condensed consolidated financial statements include the accounts of Leslie’s, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. These interim condensed consolidated financial statements and the related notes should be read in conjunction with the audited condensed consolidated financial statements and notes for the years ended October 3, 2020 and September 28, 2019. Initial and Subsequent Public Offering In November 2020, the Company completed an initial public offering (“IPO”) of 30.0 million shares of common stock at a public offering price of $17.00 per share for net proceeds of $458.6 million, after deducting underwriting discounts and commissions of $45.0 million and offering costs of $6.3 million. The shares of common stock sold in the IPO and the net proceeds from the IPO included the full exercise of the underwriters’ option to purchase additional shares. The Company used the net proceeds from the IPO to repay the entire outstanding amount related to its $390.0 million Senior Unsecured Notes. The remaining proceeds will be used for working capital and general corporate purposes. In February 2021, certain of the Company’s stockholders, completed a subsequent public offering of 29.0 million shares of common stock, with a 30-day option for the underwriters to purchase up to 4.4 million additional shares of common stock, at a public offering price of $26.00 per share for net proceeds of $731.4 million, after deducting underwriting discounts and commissions of $22.6 million. All proceeds from the sale of shares of common stock in this offering were received by the selling stockholders. In June 2021, certain of the Company’s stockholders, completed an additional subsequent public offering of 24.5 million shares of common stock, with a 30-day option for the underwriters to purchase up to 3.7 million additional shares of common stock, at a public offering price of $27.64 per share for net proceeds of $656.9 million, after deducting underwriting discounts and commissions of $20.3 million. All proceeds from the sale of shares of common stock in this offering were received by the selling stockholders. Stock Split All share and per share information included in the accompanying condensed consolidated financial statements has been adjusted to reflect a 156,500-for-1 stock split which was effective on October 23, 2020. The par value of the common stock was not adjusted as the result of the stock split. Fiscal Periods We operate on a fiscal calendar that results in a fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to September 30th. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations. References to fiscal year 2021 refer to the fiscal year ending October 2, 2021, which contains 52 weeks, and references to fiscal year 2020 refer to the fiscal year ended October 3, 2020, which contained 53 weeks. References to the three months ended July 3, 2021 and the three months ended June 27, 2020 refer to the 13 weeks ended July 3, 2021 and June 27, 2020, respectively. References to the nine months ended July 3, 2021 and the nine months ended June 27, 2020 refer to the 39 weeks ended July 3, 2021 and June 27, 2020, respectively. Use of Estimates To prepare financial statements that conform to GAAP, we make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes. Our most significant estimates relate to the allowance for doubtful accounts, inventory obsolescence reserves, vendor programs, income taxes, self-insurance, and goodwill impairment evaluations. We continually review our estimates and make adjustments as necessary, but actual results could be significantly different from what we expected when we made these estimates. Fair Value Measurements As of July 3, 2021 and October 3, 2020, we held no assets that were required to be measured at fair value on a recurring basis. Fair Value of Financial Instruments We evaluate our financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level of classification for each reporting period. The fair value of the Term Loan due in 2028 (see Note 7) was determined to be $804.4 million as of July 3, 2021. These fair value estimates, determined to be Level 2, are subjective in nature and involve uncertainties and matters of judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates. The fair value of the interest rate cap agreements (see Note 7) was determined to be Level 2 and is included in other assets on the condensed consolidated balance sheets as of October 3, 2020. Our interest rate cap agreements expired in March 2021 The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term maturity of these instruments. There were no transfers between levels in the fair value hierarchy during the three and nine months ended July 3, 2021 and June 27, 2020, respectively. Seasonality Our business is highly seasonal. In general, sales and earnings are highest during our fiscal third and fourth quarters, which include April through September and represent the peak months of swimming pool use. Sales are substantially lower during our fiscal first and second quarters. Prior Period Reclassifications Reclassifications of certain immaterial prior period amounts have been made to conform to current period presentation. |
Business Combinations
Business Combinations | 9 Months Ended |
Jul. 03, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | Note 3—Business Combinations The following acquisitions did not have a material impact on our financial position or results of operations. Our condensed consolidated financial statements include the results of operations of these acquisitions from the date of acquisition. The total purchase consideration was allocated to the assets acquired and the liabilities assumed at their estimated fair values as of the date of acquisition, as determined by management. The excess of the purchase price over the amounts allocated to assets acquired and liabilities assumed has been recorded as goodwill. The goodwill resulting from these acquisitions are expected to be deductible for income tax purposes. Fiscal 2021 Acquisitions In March 2021, we acquired the assets of a retailer of supplies and services for hot tubs, swim spas and fireplaces with four locations in the Denver, Colorado area, expanding our physical presence to 38 states. In May 2021, we acquired the assets of a similar retailer with one location in the Medford, Oregon area. Our estimates and assumptions are subject to change as we gather additional information throughout the measurement period, which is up to 12 months after the acquisition date, and if we make changes to the amounts recorded, such amounts are recorded in the period in which they are identified. Fiscal 2020 Acquisition In October 2019, we acquired the assets of a retailer of supplies and services for hot tubs, swim spas and saunas. The acquisition included six locations in the Pacific Northwest and expanded our physical presence to 37 states. The purchase accounting for this acquisition is complete. |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 9 Months Ended |
Jul. 03, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles, Net | Note 4 —Goodwill and Other Intangibles, Net Goodwill The carrying amounts of goodwill are as follows (in thousands): Carrying Value Balance, July 3, 2021 $ 98,669 Balance, October 3, 2020 93,295 Balance, June 27, 2020 92,821 Changes in the carrying value of goodwill relate to acquisition activity. Other Intangible Assets Other intangible assets consisted of the following as of July 3, 2021 (in thousands, except weighted average remaining useful life): Weighted Average Remaining Useful Life (in Years) Gross Carrying Value Accumulated Amortization Net Carrying Amount Trade name and trademarks (finite life) 2.9 $ 5,940 $ (5,236 ) $ 704 Trade name and trademarks (indefinite life) Indefinite 17,750 — 17,750 Non-compete agreements 7.4 9,333 (7,174 ) 2,159 Consumer relationships 6.5 19,000 (11,276 ) 7,724 Internally developed software 7.4 4,000 (3,577 ) 423 Other intangibles 0.5 2,620 (2,309 ) 311 Total $ 58,643 $ (29,572 ) $ 29,071 Other intangible assets are as follows as of October 3, 2020 (in thousands, except weighted average remaining useful life): Weighted Average Remaining Useful Life (in Years) Gross Carrying Value Accumulated Amortization Net Carrying Amount Trade name and trademarks (finite life) 3.6 $ 5,540 $ (5,139 ) $ 401 Trade name and trademarks (indefinite life) Indefinite 17,750 — 17,750 Non-compete agreements 8.3 8,633 (6,872 ) 1,761 Consumer relationships 6.1 17,200 (10,118 ) 7,082 Internally developed software 8.2 4,000 (3,434 ) 566 Other intangibles 1.3 2,584 (2,253 ) 331 Total $ 55,707 $ (27,816 ) $ 27,891 Other intangible assets are as follows as of June 27, 2020 (in thousands, except weighted average remaining useful life): Weighted Average Remaining Useful Life (in Years) Gross Carrying Value Accumulated Amortization Net Carrying Amount Trade name and trademarks (finite life) 3.9 $ 5,540 $ (5,111 ) $ 429 Trade name and trademarks (indefinite life) Indefinite 17,750 — 17,750 Non-compete agreements 7.0 8,633 (6,410 ) 2,223 Consumer relationships 6.3 17,200 (9,683 ) 7,517 Internally developed software 8.5 4,000 (3,371 ) 629 Other intangibles 1.5 2,584 (2,242 ) 342 Total $ 55,707 $ (26,817 ) $ 28,890 Amortization expense for the three months ended July 3, 2021 and June 27, 2020 was $0.7 million and $0.5 million, respectively. Amortization expense for the nine months ended July 3, 2021 and June 27, 2020 was $1.0 million and $1.6 million, respectively. No impairment of goodwill or other intangible assets was recorded during the three and nine months ended July 3, 2021 and June 27, 2020. The following table summarizes the estimated future amortization expense related to finite-lived intangible assets on our balance sheet as of July 3, 2021 (in thousands): Amount Remainder of Fiscal 2021 $ 657 2022 2,375 2023 2,009 2024 1,371 2025 1,274 Thereafter 3,635 Total $ 11,321 |
Inventories
Inventories | 9 Months Ended |
Jul. 03, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5—Inventories Inventory consisted of the following (in thousands): July 3, 2021 October 3, 2020 June 27, 2020 Raw materials $ 5,382 $ 1,967 $ 1,404 Finished goods 219,144 146,999 179,704 Inventories $ 224,526 $ 148,966 $ 181,108 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Jul. 03, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Note 6—Accrued Expenses Accrued expenses consisted of the following (in thousands): July 3, 2021 October 3, 2020 June 27, 2020 Accrued payroll and employee benefits $ 27,409 $ 32,420 $ 25,690 Interest 4,919 9,377 10,990 Sales taxes 18,841 11,164 15,411 Self-insurance reserves 6,402 6,518 6,639 Customer deposits 19,275 13,286 17,022 All other current liabilities 41,042 28,402 36,876 Total $ 117,888 $ 101,167 $ 112,628 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Jul. 03, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7—Long-Term Debt Our debt obligations consisted of the following (in thousands, except interest rates): Effective Interest Rate (1) July 3, 2021 October 3, 2020 June 27, 2020 Term Loan—due on March 9, 2028 3.25 % (2) $ 807,975 $ 811,178 $ 815,349 Senior Unsecured Notes — 390,000 390,000 ABL Credit Facility 1.25 % (3) — — — Total long-term debt 807,975 1,201,178 1,205,349 Less: current portion of long-term debt (8,100 ) (8,341 ) (8,341 ) Less: unamortized discount (3,402 ) (9,348 ) (9,955 ) Less: deferred financing charges (8,742 ) (3,939 ) (4,273 ) Long-term debt, net $ 787,731 $ 1,179,550 $ 1,182,780 (1) Effective interest rates as of July 3, 2021. (2) Carries interest at a specified margin over LIBOR of 2.75% with a minimum LIBOR of 0.50%. (3) Carries interest at a specific margin between 0.25% and 0.75% with respect to Base Rate loans and between 1.25% and 1.75% with respect to Eurodollar Rate loans. Term Loan— In March 2021, we entered into an amended and restated term loan credit agreement (the “Term Loan”). The Term Loan provides for an $810.0 million secured term loan facility, decreased pricing by 75 basis points and extended the maturity date to March 9, 2028. The other material terms of the Term Loan prior to the amendment remained substantially unchanged. In addition, as a result of the Term Loan, during the nine months ended July 3, 2021 , we recognized a $ 1.9 million loss on early debt extinguishment related to the prepayment of the underlying loan tranches prepaid in connection with the amended Term Loan . Borrowings under the Term Loan have an initial applicable rate, at our option of, (i) 2.75% for loans that are LIBOR loans and (ii) 1.75% of loans that are ABR loans. The applicable rate of the Term Loan is based on our first lien leverage ratio as follows: (a) if the first lien leverage ratio is greater than 2.75 to 1.00, the applicable rate will be 2.75% for LIBOR loans and 1.75% for ABR loans and (b) the first lien leverage ratio is less than or equal to 2.75 to 1.00, the applicable rate will be 2.50% for LIBOR loans and 1.50% for ABR loans. For LIBOR loans, the loans will bear interest at the adjusted LIBOR rate plus the applicable rate, where the adjusted LIBOR rate will not be less than 0.50%. Substantially all of our assets are pledged as collateral to secure our indebtedness. The Term Loan does not require us to comply with any financial covenants. The Term Loan contains customary events of default and no event of default had occurred under the Term Loan as of July 3, 2021 or October 3, 2020. ABL Credit Facility— On April 12, 2021, we entered into Amendment No. 5 to our $200.0 million ABL Credit Facility maturing on August 13, 2025 (the “Amendment”). The Amendment (i) decreased the applicable margin on the Base Rate loans to a range of 0.25% to 0.75% from 0.75% to 1.00%, (ii) decreased the applicable margin on the Eurodollar Rate loans to a range of 1.25% to 1.75% from 1.75% to 2.00%, (iii) changed the LIBOR floor to 0% from 0.75%, and (iv) decreased our commitment fee rate to 0.25% from 0.375%. The other terms of the ABL Credit Facility prior to the amendment thereof remain substantially unchanged. In addition, we are also obligated to pay a commission on all outstanding letters of credit as well as customary administrative, issuance, fronting, amendment, payment, and negotiation fees. As of July 3, 2021, and October 3, 2020, no amounts were outstanding on the ABL Credit Facility. The amount available was reduced by $9.2 million of existing standby letters of credit as of July 3, 2021. Substantially all of our assets are pledged as collateral to secure our indebtedness The ABL Credit Facility does not require us to comply with any financial covenants. The ABL Credit Facility contains customary events of default, including default upon the nonpayment of principal, interest, fees or other amounts, or the occurrence of a change of control. No event of default had occurred under the ABL Credit Facility as of July 3, 2021 and October 3, 2020. Senior Unsecured Notes —The Senior Unsecured Notes principal of $390.0 million was paid in full on November 3, 2020 resulting in a loss on debt extinguishment of $7.3 million for the nine months ended July 3, 2021. The Senior Unsecured Notes were guaranteed on a senior basis by us and all our present and future domestic wholly owned subsidiaries. Interest-only payments on the Senior Unsecured Notes were payable quarterly on January 10, April 10, July 10, and October 10 of each year. We incurred interest of 8.50% plus LIBOR, subject to a minimum rate of 1.00%, on the Senior Unsecured Notes. The Senior Unsecured Notes had restrictive covenants that limited the ability to, among other things, incur or guarantee additional indebtedness or issue preferred stock; pay dividends and make other restricted payments; incur restrictions on the payment of dividends or other distributions; create or incur certain liens; make certain investments; transfer or sell assets; engage in transactions with affiliates; and merge or consolidate with other companies or transfer all or substantially all of our assets. Interest Rate Cap Agreements In March 2017, we entered into interest rate cap agreements in order to manage the variability of cash flows related to a portion of our floating rate indebtedness. Pursuant to the agreements, we capped LIBOR at 3.00% with respect to the aggregate notional amount of $750.0 million. In March 2021, our interest rate cap agreements expired. The fair value of our interest rate cap agreements were zero as of October 3, 2020. We did not recognize any gain or loss on our interest rate cap agreements during the three and nine months ended July 3, 2021 and June 27, 2020, respectively. Future Debt Maturities The following table summarizes the debt maturities and scheduled principal repayments of our indebtedness as of July 3, 2021 (in thousands): Amount Remainder of Fiscal 2021 $ 2,025 2022 8,100 2023 8,100 2024 6,075 2025 10,125 Thereafter 773,550 Total $ 807,975 |
Leases
Leases | 9 Months Ended |
Jul. 03, 2021 | |
Leases [Abstract] | |
Leases | Note 8—Leases Lessee Arrangements Operating Leases We lease certain store, office, distribution, and manufacturing facilities under operating leases that expire at various dates through October 2031 The following table summarizes the future annual minimum lease payments as of July 3, 2021 (in thousands): Amount Remainder of Fiscal 2021 $ 17,323 2022 64,774 2023 53,324 2024 40,280 2025 25,922 Thereafter 22,010 Total $ 223,633 Less: amount of lease payments representing imputed interest 50,992 Present value of future minimum lease payments 172,641 Less: current obligations under leases 53,700 Long-Term lease obligations $ 118,941 Operating lease expense totaled $16.7 million and $16.1 million for the three months ended July 3, 2021 and June 27, 2020, respectively. Operating lease expense totaled $50.3 million and $48.4 million for the nine months ended July 3, 2021 and June 27, 2020, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 —Income Taxes Our effective income tax rate was 20.9% for the nine months ended July 3, 2021, compared to a benefit of 40.7% for the nine months ended June 27, 2020. |
Commitments & Contingencies
Commitments & Contingencies | 9 Months Ended |
Jul. 03, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments & Contingencies | Note 10—Commitments & Contingencies Contingencies We are defendants in lawsuits or potential claims encountered in the normal course of business. When the potential liability from a matter can be estimated and the loss is considered probable, we record the estimated loss. Due to uncertainties related to the resolution of lawsuits, investigations and claims, the ultimate outcome may differ from the estimates. We do not expect that the resolutions of any of these matters will have a material effect on our condensed consolidated financial position or results of operations. We did not record any material loss contingencies as of July 3, 2021, October 3, 2020, and June 27, 2020. Our workers’ compensation insurance program, general liability insurance program, and employee group medical plan have self-insurance retention features of up to $0.4 million per event as of July 3, 2021 and October 3, 2020 respectively. We had standby letters of credit outstanding in the amounts of $9.2 million and $11.6 million as of July 3, 2021 and October 3, 2020, respectively, for the purpose of securing such obligations under our workers’ compensation self-insurance programs. Purchase Commitments In addition to our lease obligations, we maintain future purchase commitments related to inventory and operational requirements. The following table summarizes the future minimum purchase commitments as of July 3, 2021 (in thousands): Amount Remainder of Fiscal 2021 $ 21,574 2022 90,988 2023 92,025 2024 72,924 2025 51,062 Thereafter 8,154 Total $ 336,727 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jul. 03, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11—Related Party Transactions In February 2017, we entered into a management services agreement with our private equity sponsors in connection with our acquisition in February 2017. The management services agreement provides that we will pay an annual fee for them to provide management and advisory services to us and our affiliates, including general management consulting services, support and analysis with respect to financing alternatives and strategic planning functions. The management services agreement terminated in October 2020 in connection with the completion of our initial public offering. During the three months ended June 27, 2020, we paid or accrued management fees in the amount of $1.2 million. During the nine months ended July 3, 2021 and June 27, 2020, we paid or accrued management fees in the amount of $0.4 million and $3.2 million, respectively. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Jul. 03, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 12—Net Income Per Share The following is a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding (in thousands): Three Months Ended Nine Months Ended July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 Numerator: Net income $ 118,802 $ 71,934 $ 82,093 $ 15,921 Denominator: Weighted average shares outstanding - basic 188,264 156,500 184,021 156,500 Effect of dilutive securities: Stock options 2,792 - 1,914 - RSUs 3,144 - 3,668 - Weighted average shares outstanding - diluted 194,200 156,500 189,603 156,500 Basic net income per share $ 0.63 $ 0.46 $ 0.45 $ 0.10 Diluted net income per share $ 0.61 $ 0.46 $ 0.43 $ 0.10 The weighted average potentially dilutive stock options and RSUs excluded from the computation of diluted net income per share were 0.5 million and 0.6 million for the three months ended July 3, 2021, respectively, and 0.2 million and 0.6 million for the nine month ended July 3, 2021, respectively. In addition, diluted weighted average shares outstanding excludes approximately 1.2 million stock options with performance conditions that have not yet been met or have not yet been established during the three and nine months ended July 3, 2021. There were no potentially dilutive securities outstanding during the three and nine months ended June 27, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jul. 03, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation We prepared the accompanying interim condensed consolidated financial statements following United States generally accepted accounting principles (“GAAP”). The financial statements include all normal and recurring adjustments that are necessary for a fair presentation of our financial position and operating results. The condensed consolidated financial statements include the accounts of Leslie’s, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. These interim condensed consolidated financial statements and the related notes should be read in conjunction with the audited condensed consolidated financial statements and notes for the years ended October 3, 2020 and September 28, 2019. |
Initial and Subsequent Public Offering | Initial and Subsequent Public Offering In November 2020, the Company completed an initial public offering (“IPO”) of 30.0 million shares of common stock at a public offering price of $17.00 per share for net proceeds of $458.6 million, after deducting underwriting discounts and commissions of $45.0 million and offering costs of $6.3 million. The shares of common stock sold in the IPO and the net proceeds from the IPO included the full exercise of the underwriters’ option to purchase additional shares. The Company used the net proceeds from the IPO to repay the entire outstanding amount related to its $390.0 million Senior Unsecured Notes. The remaining proceeds will be used for working capital and general corporate purposes. In February 2021, certain of the Company’s stockholders, completed a subsequent public offering of 29.0 million shares of common stock, with a 30-day option for the underwriters to purchase up to 4.4 million additional shares of common stock, at a public offering price of $26.00 per share for net proceeds of $731.4 million, after deducting underwriting discounts and commissions of $22.6 million. All proceeds from the sale of shares of common stock in this offering were received by the selling stockholders. In June 2021, certain of the Company’s stockholders, completed an additional subsequent public offering of 24.5 million shares of common stock, with a 30-day option for the underwriters to purchase up to 3.7 million additional shares of common stock, at a public offering price of $27.64 per share for net proceeds of $656.9 million, after deducting underwriting discounts and commissions of $20.3 million. All proceeds from the sale of shares of common stock in this offering were received by the selling stockholders. |
Stock Split | Stock Split All share and per share information included in the accompanying condensed consolidated financial statements has been adjusted to reflect a 156,500-for-1 stock split which was effective on October 23, 2020. The par value of the common stock was not adjusted as the result of the stock split. |
Fiscal Periods | Fiscal Periods We operate on a fiscal calendar that results in a fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to September 30th. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations. References to fiscal year 2021 refer to the fiscal year ending October 2, 2021, which contains 52 weeks, and references to fiscal year 2020 refer to the fiscal year ended October 3, 2020, which contained 53 weeks. References to the three months ended July 3, 2021 and the three months ended June 27, 2020 refer to the 13 weeks ended July 3, 2021 and June 27, 2020, respectively. References to the nine months ended July 3, 2021 and the nine months ended June 27, 2020 refer to the 39 weeks ended July 3, 2021 and June 27, 2020, respectively. |
Use of Estimates | Use of Estimates To prepare financial statements that conform to GAAP, we make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes. Our most significant estimates relate to the allowance for doubtful accounts, inventory obsolescence reserves, vendor programs, income taxes, self-insurance, and goodwill impairment evaluations. We continually review our estimates and make adjustments as necessary, but actual results could be significantly different from what we expected when we made these estimates. |
Fair Value Measurements | Fair Value Measurements As of July 3, 2021 and October 3, 2020, we held no assets that were required to be measured at fair value on a recurring basis. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We evaluate our financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level of classification for each reporting period. The fair value of the Term Loan due in 2028 (see Note 7) was determined to be $804.4 million as of July 3, 2021. These fair value estimates, determined to be Level 2, are subjective in nature and involve uncertainties and matters of judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates. The fair value of the interest rate cap agreements (see Note 7) was determined to be Level 2 and is included in other assets on the condensed consolidated balance sheets as of October 3, 2020. Our interest rate cap agreements expired in March 2021 The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term maturity of these instruments. There were no transfers between levels in the fair value hierarchy during the three and nine months ended July 3, 2021 and June 27, 2020, respectively. |
Seasonality | Seasonality Our business is highly seasonal. In general, sales and earnings are highest during our fiscal third and fourth quarters, which include April through September and represent the peak months of swimming pool use. Sales are substantially lower during our fiscal first and second quarters. |
Prior Period Reclassifications | Prior Period Reclassifications Reclassifications of certain immaterial prior period amounts have been made to conform to current period presentation. |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles, Net (Tables) | 9 Months Ended |
Jul. 03, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | The carrying amounts of goodwill are as follows (in thousands): Carrying Value Balance, July 3, 2021 $ 98,669 Balance, October 3, 2020 93,295 Balance, June 27, 2020 92,821 |
Summary of Other Intangible Assets | Other intangible assets consisted of the following as of July 3, 2021 (in thousands, except weighted average remaining useful life): Weighted Average Remaining Useful Life (in Years) Gross Carrying Value Accumulated Amortization Net Carrying Amount Trade name and trademarks (finite life) 2.9 $ 5,940 $ (5,236 ) $ 704 Trade name and trademarks (indefinite life) Indefinite 17,750 — 17,750 Non-compete agreements 7.4 9,333 (7,174 ) 2,159 Consumer relationships 6.5 19,000 (11,276 ) 7,724 Internally developed software 7.4 4,000 (3,577 ) 423 Other intangibles 0.5 2,620 (2,309 ) 311 Total $ 58,643 $ (29,572 ) $ 29,071 Other intangible assets are as follows as of October 3, 2020 (in thousands, except weighted average remaining useful life): Weighted Average Remaining Useful Life (in Years) Gross Carrying Value Accumulated Amortization Net Carrying Amount Trade name and trademarks (finite life) 3.6 $ 5,540 $ (5,139 ) $ 401 Trade name and trademarks (indefinite life) Indefinite 17,750 — 17,750 Non-compete agreements 8.3 8,633 (6,872 ) 1,761 Consumer relationships 6.1 17,200 (10,118 ) 7,082 Internally developed software 8.2 4,000 (3,434 ) 566 Other intangibles 1.3 2,584 (2,253 ) 331 Total $ 55,707 $ (27,816 ) $ 27,891 Other intangible assets are as follows as of June 27, 2020 (in thousands, except weighted average remaining useful life): Weighted Average Remaining Useful Life (in Years) Gross Carrying Value Accumulated Amortization Net Carrying Amount Trade name and trademarks (finite life) 3.9 $ 5,540 $ (5,111 ) $ 429 Trade name and trademarks (indefinite life) Indefinite 17,750 — 17,750 Non-compete agreements 7.0 8,633 (6,410 ) 2,223 Consumer relationships 6.3 17,200 (9,683 ) 7,517 Internally developed software 8.5 4,000 (3,371 ) 629 Other intangibles 1.5 2,584 (2,242 ) 342 Total $ 55,707 $ (26,817 ) $ 28,890 |
Summary of Estimated Future Amortization Expense Related to Finite-Lived Intangible Assets | The following table summarizes the estimated future amortization expense related to finite-lived intangible assets on our balance sheet as of July 3, 2021 (in thousands): Amount Remainder of Fiscal 2021 $ 657 2022 2,375 2023 2,009 2024 1,371 2025 1,274 Thereafter 3,635 Total $ 11,321 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jul. 03, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | July 3, 2021 October 3, 2020 June 27, 2020 Raw materials $ 5,382 $ 1,967 $ 1,404 Finished goods 219,144 146,999 179,704 Inventories $ 224,526 $ 148,966 $ 181,108 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Jul. 03, 2021 | |
Text Block [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): July 3, 2021 October 3, 2020 June 27, 2020 Accrued payroll and employee benefits $ 27,409 $ 32,420 $ 25,690 Interest 4,919 9,377 10,990 Sales taxes 18,841 11,164 15,411 Self-insurance reserves 6,402 6,518 6,639 Customer deposits 19,275 13,286 17,022 All other current liabilities 41,042 28,402 36,876 Total $ 117,888 $ 101,167 $ 112,628 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Jul. 03, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Debt Obligations | Our debt obligations consisted of the following (in thousands, except interest rates): Effective Interest Rate (1) July 3, 2021 October 3, 2020 June 27, 2020 Term Loan—due on March 9, 2028 3.25 % (2) $ 807,975 $ 811,178 $ 815,349 Senior Unsecured Notes — 390,000 390,000 ABL Credit Facility 1.25 % (3) — — — Total long-term debt 807,975 1,201,178 1,205,349 Less: current portion of long-term debt (8,100 ) (8,341 ) (8,341 ) Less: unamortized discount (3,402 ) (9,348 ) (9,955 ) Less: deferred financing charges (8,742 ) (3,939 ) (4,273 ) Long-term debt, net $ 787,731 $ 1,179,550 $ 1,182,780 (1) Effective interest rates as of July 3, 2021. (2) Carries interest at a specified margin over LIBOR of 2.75% with a minimum LIBOR of 0.50%. (3) Carries interest at a specific margin between 0.25% and 0.75% with respect to Base Rate loans and between 1.25% and 1.75% with respect to Eurodollar Rate loans. |
Schedule of Debt Maturities and Principal Repayments of Indebtedness | The following table summarizes the debt maturities and scheduled principal repayments of our indebtedness as of July 3, 2021 (in thousands): Amount Remainder of Fiscal 2021 $ 2,025 2022 8,100 2023 8,100 2024 6,075 2025 10,125 Thereafter 773,550 Total $ 807,975 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jul. 03, 2021 | |
Leases [Abstract] | |
Schedule of Future Annual Minimum Lease Payments | The following table summarizes the future annual minimum lease payments as of July 3, 2021 (in thousands): Amount Remainder of Fiscal 2021 $ 17,323 2022 64,774 2023 53,324 2024 40,280 2025 25,922 Thereafter 22,010 Total $ 223,633 Less: amount of lease payments representing imputed interest 50,992 Present value of future minimum lease payments 172,641 Less: current obligations under leases 53,700 Long-Term lease obligations $ 118,941 |
Commitments & Contingencies (Ta
Commitments & Contingencies (Tables) | 9 Months Ended |
Jul. 03, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Purchase Commitments | The following table summarizes the future minimum purchase commitments as of July 3, 2021 (in thousands): Amount Remainder of Fiscal 2021 $ 21,574 2022 90,988 2023 92,025 2024 72,924 2025 51,062 Thereafter 8,154 Total $ 336,727 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Jul. 03, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Basic Weighted Average Common Shares Outstanding to Diluted Weighted Average Common Shares Outstanding | The following is a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding (in thousands): Three Months Ended Nine Months Ended July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 Numerator: Net income $ 118,802 $ 71,934 $ 82,093 $ 15,921 Denominator: Weighted average shares outstanding - basic 188,264 156,500 184,021 156,500 Effect of dilutive securities: Stock options 2,792 - 1,914 - RSUs 3,144 - 3,668 - Weighted average shares outstanding - diluted 194,200 156,500 189,603 156,500 Basic net income per share $ 0.63 $ 0.46 $ 0.45 $ 0.10 Diluted net income per share $ 0.61 $ 0.46 $ 0.43 $ 0.10 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 9 Months Ended | ||||
Jun. 01, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Jul. 03, 2021 | Oct. 03, 2020 | Jun. 27, 2020 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Net proceeds from initial public offering | $ 458,587,000 | |||||
Stock split | 156,500-for-1 | |||||
Fair value, assets, level 1 to level 2 transfers, amount | $ 0 | $ 0 | ||||
Fair value, assets, level 2 to level 1 transfers, amount | 0 | 0 | ||||
Fair value, liabilities, level 1 to level 2 transfers, amount | 0 | 0 | ||||
Fair value, liabilities, level 2 to level 1 transfers, amount | $ 0 | $ 0 | ||||
Interest Rate Cap Agreement | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Debt instrument, maturity date | Mar. 31, 2021 | |||||
Fair value of interest rate cap agreements | $ 0 | $ 0 | ||||
Level 2 | Term Loan due in 2028 | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Fair value of term loan | 804,400,000 | |||||
Recurring Basis | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Assets measured at fair value | $ 0 | $ 0 | ||||
Senior Unsecured Notes | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Repayment of senior notes | $ 390,000,000 | |||||
Initial Public Offering | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Number of common stock shares issued | 30 | |||||
Offering price | $ 17 | |||||
Net proceeds from initial public offering | $ 458,600,000 | |||||
Underwriting discounts and commissions | 45,000,000 | |||||
Offering costs | $ 6,300,000 | |||||
Subsequent Public Offering | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Number of common stock shares issued | 24.5 | 29 | ||||
Offering price | $ 27.64 | $ 26 | ||||
Underwriting discounts and commissions | $ 20,300,000 | $ 22,600,000 | ||||
Net proceeds from subsequent public offering | $ 656,900,000 | $ 731,400,000 | ||||
Option for underwriters to purchase | 30 days | 30 days | ||||
Maximum | Subsequent Public Offering | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Additional shares of common stock | 3.7 | 4.4 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) | 1 Months Ended | ||
May 31, 2021Location | Mar. 31, 2021LocationState | Oct. 31, 2019LocationState | |
Business Acquisition [Line Items] | |||
Number of states with physical presence | State | 38 | 37 | |
Denver, Colorado | |||
Business Acquisition [Line Items] | |||
Number of locations in which assets acquired | 4 | ||
Medford, Oregon | |||
Business Acquisition [Line Items] | |||
Number of locations in which assets acquired | 1 | ||
Pacific Northwest | |||
Business Acquisition [Line Items] | |||
Number of locations in which assets acquired | 6 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles, Net - Summary of Goodwill (Detail) - USD ($) $ in Thousands | Jul. 03, 2021 | Oct. 03, 2020 |
Goodwill Roll Forward | ||
Beginning Balance | $ 93,295 | $ 92,821 |
Ending Balance | $ 98,669 | $ 93,295 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles, Net - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jul. 03, 2021 | Jun. 27, 2020 | Oct. 03, 2020 | |
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Net Carrying Amount, Finite Life | $ 11,321 | ||
Gross Carrying Value | 58,643 | $ 55,707 | $ 55,707 |
Accumulated Amortization | (29,572) | (26,817) | (27,816) |
Net Carrying Amount | $ 29,071 | $ 28,890 | $ 27,891 |
Trade Name and Trademarks | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Finite Life | 2 years 10 months 24 days | 3 years 10 months 24 days | 3 years 7 months 6 days |
Gross Carrying Value, Finite Life | $ 5,940 | $ 5,540 | $ 5,540 |
Accumulated Amortization, Finite Life | (5,236) | (5,111) | (5,139) |
Net Carrying Amount, Finite Life | $ 704 | $ 429 | $ 401 |
Non-compete Agreements | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Finite Life | 7 years 4 months 24 days | 7 years | 8 years 3 months 18 days |
Gross Carrying Value, Finite Life | $ 9,333 | $ 8,633 | $ 8,633 |
Accumulated Amortization, Finite Life | (7,174) | (6,410) | (6,872) |
Net Carrying Amount, Finite Life | $ 2,159 | $ 2,223 | $ 1,761 |
Consumer Relationships | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Finite Life | 6 years 6 months | 6 years 3 months 18 days | 6 years 1 month 6 days |
Gross Carrying Value, Finite Life | $ 19,000 | $ 17,200 | $ 17,200 |
Accumulated Amortization, Finite Life | (11,276) | (9,683) | (10,118) |
Net Carrying Amount, Finite Life | $ 7,724 | $ 7,517 | $ 7,082 |
Internally Developed Software | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Finite Life | 7 years 4 months 24 days | 8 years 6 months | 8 years 2 months 12 days |
Gross Carrying Value, Finite Life | $ 4,000 | $ 4,000 | $ 4,000 |
Accumulated Amortization, Finite Life | (3,577) | (3,371) | (3,434) |
Net Carrying Amount, Finite Life | $ 423 | $ 629 | $ 566 |
Other Intangibles | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Finite Life | 6 months | 1 year 6 months | 1 year 3 months 18 days |
Gross Carrying Value, Finite Life | $ 2,620 | $ 2,584 | $ 2,584 |
Accumulated Amortization, Finite Life | (2,309) | (2,242) | (2,253) |
Net Carrying Amount, Finite Life | $ 311 | $ 342 | $ 331 |
Trade Name and Trademarks | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Indefinite Life | Indefinite | Indefinite | Indefinite |
Net Carrying Amount, Indefinite Life | $ 17,750 | $ 17,750 | $ 17,750 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles, Net - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 700,000 | $ 500,000 | $ 1,000,000 | $ 1,600,000 |
Impairment of goodwill or other intangible assets | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible_6
Goodwill and Other Intangibles, Net - Summary of Estimated Future Amortization Expense Related to Finite-Lived Intangible Assets (Detail) $ in Thousands | Jul. 03, 2021USD ($) |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | |
Remainder of Fiscal 2021 | $ 657 |
2022 | 2,375 |
2023 | 2,009 |
2024 | 1,371 |
2025 | 1,274 |
Thereafter | 3,635 |
Net Carrying Amount, Finite Life | $ 11,321 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jul. 03, 2021 | Oct. 03, 2020 | Jun. 27, 2020 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 5,382 | $ 1,967 | $ 1,404 |
Finished goods | 219,144 | 146,999 | 179,704 |
Inventories | $ 224,526 | $ 148,966 | $ 181,108 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Jul. 03, 2021 | Oct. 03, 2020 | Jun. 27, 2020 |
Payables And Accruals [Abstract] | |||
Accrued payroll and employee benefits | $ 27,409 | $ 32,420 | $ 25,690 |
Interest | 4,919 | 9,377 | 10,990 |
Sales taxes | 18,841 | 11,164 | 15,411 |
Self-insurance reserves | 6,402 | 6,518 | 6,639 |
Customer deposits | 19,275 | 13,286 | 17,022 |
All other current liabilities | 41,042 | 28,402 | 36,876 |
Total | $ 117,888 | $ 101,167 | $ 112,628 |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt Obligations (Details) - USD ($) $ in Thousands | Jul. 03, 2021 | Oct. 03, 2020 | Jun. 27, 2020 |
Debt Instrument [Line Items] | |||
Total long-term debt | $ 807,975 | $ 1,201,178 | $ 1,205,349 |
Less: current portion of long-term debt | (8,100) | (8,341) | (8,341) |
Less: unamortized discount | (3,402) | (9,348) | (9,955) |
Less: deferred financing charges | (8,742) | (3,939) | (4,273) |
Long-term debt, net | $ 787,731 | 1,179,550 | 1,182,780 |
ABL Credit Facility | |||
Debt Instrument [Line Items] | |||
Effective Interest Rate | 1.25% | ||
Term Loan Due on March 9, 2028 | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 807,975 | 811,178 | 815,349 |
Effective Interest Rate | 3.25% | ||
Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 390,000 | $ 390,000 |
Long-Term Debt - Summary of D_2
Long-Term Debt - Summary of Debt Obligations (Parenthetical) (Details) | Apr. 12, 2021 | Apr. 11, 2021 | Jul. 03, 2021 |
LIBOR | Term Loan Due on March 9, 2028 | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.75% | ||
LIBOR | Term Loan Due on March 9, 2028 | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.50% | ||
ABL Credit Facility | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.75% | ||
ABL Credit Facility | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.00% | ||
ABL Credit Facility | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.75% | 1.00% | 0.75% |
ABL Credit Facility | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.25% | 0.75% | 0.25% |
ABL Credit Facility | Eurodollar | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.75% | 2.00% | 1.75% |
ABL Credit Facility | Eurodollar | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.25% | 1.75% | 1.25% |
Long Term Debt - Term Loan - Ad
Long Term Debt - Term Loan - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Jul. 03, 2021 | Oct. 03, 2020 | Jun. 27, 2020 | |
Debt Instrument [Line Items] | ||||
Secured term loan facility | $ 807,975 | $ 1,201,178 | $ 1,205,349 | |
Loss on early debt extinguishment | $ 9,169 | |||
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Secured term loan facility | $ 810,000 | |||
Decreased pricing of basis points | 75 | |||
Debt instrument, maturity date | Mar. 9, 2028 | |||
Term Loan | Minimum | First Lien Leverage Ratio Greater Than 2.75 to 100 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.75% | |||
Term Loan | Minimum | First Lien Leverage Ratio Less Than or Equal to 2.75 to 1.00 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.00% | |||
Term Loan | Maximum | First Lien Leverage Ratio Greater Than 2.75 to 100 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.00% | |||
Term Loan | Maximum | First Lien Leverage Ratio Less Than or Equal to 2.75 to 1.00 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.75% | |||
Term Loan | LIBOR | Applicable Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.75% | |||
Term Loan | LIBOR | First Lien Leverage Ratio Greater Than 2.75 to 100 | Applicable Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.75% | |||
Term Loan | LIBOR | First Lien Leverage Ratio Less Than or Equal to 2.75 to 1.00 | Applicable Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.50% | |||
Term Loan | LIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.50% | |||
Term Loan | ABR | Applicable Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.75% | |||
Term Loan | ABR | First Lien Leverage Ratio Greater Than 2.75 to 100 | Applicable Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.75% | |||
Term Loan | ABR | First Lien Leverage Ratio Less Than or Equal to 2.75 to 1.00 | Applicable Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.50% | |||
Term Loan | Amendment of Term Loan | ||||
Debt Instrument [Line Items] | ||||
Loss on early debt extinguishment | $ 1,900 |
Long Term Debt - ABL Credit Fac
Long Term Debt - ABL Credit Facility - Additional Information (Details) - ABL Credit Facility - USD ($) | Apr. 12, 2021 | Apr. 11, 2021 | Jul. 03, 2021 | Oct. 03, 2020 |
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Aug. 13, 2025 | |||
Credit facility, current borrowing capacity | $ 0 | $ 0 | ||
Credit facility, maximum borrowing capacity | $ 200,000,000 | |||
Standby Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Amount of Letters of credit on credit facility | $ 9,200,000 | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Credit facility, commitment fee percentage | 0.25% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Credit facility, commitment fee percentage | 0.25% | |||
Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.25% | 0.75% | 0.25% | |
Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.75% | 1.00% | 0.75% | |
Eurodollar | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.25% | 1.75% | 1.25% | |
Eurodollar | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.75% | 2.00% | 1.75% | |
LIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.00% | |||
LIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.75% |
Long Term Debt - Senior Unsecur
Long Term Debt - Senior Unsecured Notes - Additional Information (Details) - USD ($) | Nov. 03, 2020 | Jul. 03, 2021 |
Debt Instrument [Line Items] | ||
Loss on debt extinguishment | $ 9,169,000 | |
Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 390,000,000 | |
Loss on debt extinguishment | $ 7,300,000 | $ 7,300,000 |
Minimum | Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, floor interest rate | 1.00% | |
LIBOR | Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.50% |
Long Term Debt - Interest Rate
Long Term Debt - Interest Rate Cap Agreements - Additional Information (Details) - Interest Rate Cap Agreement - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | Oct. 03, 2020 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | ||||||
Aggregate notional amount | $ 750,000,000 | |||||
Debt instrument, description of variable rate basis | LIBOR | |||||
Fair value of interest rate cap agreements | $ 0 | $ 0 | $ 0 | |||
Gain (loss) of interest rate cap agreements | $ 0 | $ 0 | $ 0 | $ 0 | ||
LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Cap interest rate | 3.00% |
Long Term Debt - Schedule of De
Long Term Debt - Schedule of Debt Maturities and Principal Repayments of Indebtedness (Details) - USD ($) $ in Thousands | Jul. 03, 2021 | Oct. 03, 2020 | Jun. 27, 2020 |
Long Term Debt By Maturity [Abstract] | |||
Remainder of Fiscal 2021 | $ 2,025 | ||
2022 | 8,100 | ||
2023 | 8,100 | ||
2024 | 6,075 | ||
2025 | 10,125 | ||
Thereafter | 773,550 | ||
Total long-term debt | $ 807,975 | $ 1,201,178 | $ 1,205,349 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Lessee Lease Description [Line Items] | ||||
Lease expiration date | Oct. 31, 2031 | |||
Operating lease expense | $ 16.7 | $ 16.1 | $ 50.3 | $ 48.4 |
Minimum | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease renewal period | 5 years | 5 years | ||
Maximum | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease renewal period | 10 years | 10 years |
Leases - Schedule of Future Ann
Leases - Schedule of Future Annual Minimum Lease Payments (Details) - USD ($) $ in Thousands | Jul. 03, 2021 | Oct. 03, 2020 | Jun. 27, 2020 |
Operating Lease Liabilities Payments Due [Abstract] | |||
Remainder of Fiscal 2021 | $ 17,323 | ||
2022 | 64,774 | ||
2023 | 53,324 | ||
2024 | 40,280 | ||
2025 | 25,922 | ||
Thereafter | 22,010 | ||
Total | 223,633 | ||
Less: amount of lease payments representing imputed interest | 50,992 | ||
Present value of future minimum lease payments | 172,641 | ||
Less: current obligations under leases | 53,700 | $ 54,459 | $ 63,606 |
Operating lease liabilities, noncurrent | $ 118,941 | $ 130,234 | $ 142,307 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 9 Months Ended | |
Jul. 03, 2021 | Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 20.90% | 40.70% |
Commitments & Contingencies - A
Commitments & Contingencies - Additional Information (Details) - USD ($) | Jul. 03, 2021 | Oct. 03, 2020 |
Workers' Compensation Insurance Program | Maximum | ||
Loss Contingencies [Line Items] | ||
Self insurance retention amount | $ 400,000 | $ 400,000 |
Workers' Compensation Insurance Program | Standby Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Credit facility, remaining borrowing capacity | 9,200,000 | 11,600,000 |
General Liability Insurance Program | Maximum | ||
Loss Contingencies [Line Items] | ||
Self insurance retention amount | 400,000 | 400,000 |
Employee Group Medical Plan | Maximum | ||
Loss Contingencies [Line Items] | ||
Self insurance retention amount | $ 400,000 | $ 400,000 |
Commitments & Contingencies - S
Commitments & Contingencies - Summary of Future Minimum Purchase Commitments (Details) $ in Thousands | Jul. 03, 2021USD ($) |
Purchase Obligation Fiscal Year Maturity [Abstract] | |
Remainder of Fiscal 2021 | $ 21,574 |
2022 | 90,988 |
2023 | 92,025 |
2024 | 72,924 |
2025 | 51,062 |
Thereafter | 8,154 |
Total | $ 336,727 |
Related Party Transactions -Add
Related Party Transactions -Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Related Party Transactions [Abstract] | |||
Paid or accrued management fees | $ 1.2 | $ 0.4 | $ 3.2 |
Net Income Per Share - Summary
Net Income Per Share - Summary of Reconciliation of Basic Weighted Average Common Shares Outstanding to Diluted Weighted Average Common Shares Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 15 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | Jun. 27, 2020 | |
Numerator: | |||||
Net income | $ 118,802 | $ 71,934 | $ 82,093 | $ 15,921 | $ 71,934 |
Denominator: | |||||
Basic | 188,264 | 156,500 | 184,021 | 156,500 | |
Effect of dilutive securities: | |||||
Stock options | 2,792 | 1,914 | |||
RSUs | 3,144 | 3,668 | |||
Weighted average shares outstanding - diluted | 194,200 | 156,500 | 189,603 | 156,500 | |
Basic | $ 0.63 | $ 0.46 | $ 0.45 | $ 0.10 | |
Diluted | $ 0.61 | $ 0.46 | $ 0.43 | $ 0.10 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Number of potentially dilutive securities outstanding | 0 | 0 | ||
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average potentially dilutive stock options excluded from the computation of diluted net income per share | 500,000 | 200,000 | ||
RSUs | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average potentially dilutive stock options excluded from the computation of diluted net income per share | 600,000 | 600,000 | ||
Stock Options with Performance Conditions | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average potentially dilutive stock options excluded from the computation of diluted net income per share | 1,200,000 | 1,200,000 |