Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 01, 2023 | May 05, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 01, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40456 | |
Entity Registrant Name | JANUS INTERNATIONAL GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 86-1476200 | |
Entity Address, Address Line One | 135 Janus International Blvd. | |
Entity Address, City or Town | Temple | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30179 | |
City Area Code | 866 | |
Local Phone Number | 562-2580 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | JBI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 146,744,164 | |
Current Fiscal Year End Date | --12-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
CIK | 0001839839 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash | $ 69,639 | $ 78,373 |
Accounts receivable, less allowance for credit losses; $4,652 and $4,549, at April 1, 2023 and December 31, 2022, respectively | 149,758 | 155,397 |
Costs in excess of billing on uncompleted contracts | 40,992 | 39,251 |
Inventory, net | 64,769 | 67,677 |
Prepaid expenses | 8,354 | 9,098 |
Other current assets | 4,450 | 13,381 |
Total current assets | 337,962 | 363,177 |
Right-of-use assets, net | 43,961 | 44,305 |
Property and equipment, net | 46,005 | 42,083 |
Intangible assets, net | 397,276 | 404,385 |
Goodwill | 368,363 | 368,204 |
Deferred tax asset, net | 46,601 | 46,601 |
Other assets | 1,740 | 1,863 |
Total assets | 1,241,908 | 1,270,618 |
Current Liabilities | ||
Accounts payable | 58,545 | 52,268 |
Billing in excess of costs on uncompleted contracts | 18,311 | 21,445 |
Current maturities of long-term debt | 8,649 | 8,347 |
Accrued expenses and other current liabilities | 61,366 | 70,551 |
Total current liabilities | 146,871 | 152,611 |
Long-term debt, net | 649,818 | 699,850 |
Deferred tax liability, net | 1,909 | 1,927 |
Other long-term liabilities | 39,704 | 40,944 |
Total liabilities | 838,302 | 895,332 |
STOCKHOLDERS’ EQUITY | ||
Common Stock, 825,000,000 shares authorized, $0.0001 par value, 146,744,164 and 146,703,894 shares issued and outstanding at April 1, 2023 and December 31, 2022, respectively | 15 | 15 |
Treasury stock, at cost, 18,520 and zero shares as of April 1, 2023 and December 31, 2022, respectively | (183) | 0 |
Additional paid-in capital | 283,744 | 281,914 |
Accumulated other comprehensive loss | (4,105) | (4,796) |
Retained earnings | 124,135 | 98,153 |
Total stockholders’ equity | 403,606 | 375,286 |
Total liabilities and stockholders’ equity | $ 1,241,908 | $ 1,270,618 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 4,652 | $ 4,549 |
Common stock, shares authorized (in shares) | 825,000,000 | 825,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares issued (in shares) | 146,744,164 | 146,703,894 |
Common stock, shares outstanding (in shares) | 146,744,164 | 146,703,894 |
Treasury stock (in shares) | 18,520 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
REVENUES | ||
Total revenues | $ 251,904 | $ 229,520 |
Cost of Revenues | 151,971 | 152,950 |
GROSS PROFIT | 99,933 | 76,570 |
OPERATING EXPENSE | ||
Selling and marketing | 14,821 | 13,349 |
General and administrative | 34,100 | 28,106 |
Operating Expenses | 48,921 | 41,455 |
INCOME FROM OPERATIONS | 51,012 | 35,115 |
Interest expense | (15,998) | (8,775) |
Other expense | (15) | (29) |
INCOME BEFORE TAXES | 34,999 | 26,311 |
Provision for Income Taxes | 9,017 | 6,607 |
NET INCOME | 25,982 | 19,704 |
Other Comprehensive Income (Loss) | 691 | (516) |
COMPREHENSIVE INCOME | 26,673 | 19,188 |
Net income attributable to common stockholders, basic | 25,982 | 19,704 |
Net income attributable to common stockholders, diluted | $ 25,982 | $ 19,704 |
Weighted-average shares outstanding, basic and diluted (Note 12) | ||
Basic (in shares) | 146,703,894 | 146,561,717 |
Diluted (in shares) | 146,751,901 | 146,832,889 |
Net income per share, basic and diluted (Note 12) | ||
Basic (in dollars per share) | $ 0.18 | $ 0.13 |
Diluted (in dollars per share) | $ 0.18 | $ 0.13 |
Product revenues | ||
REVENUES | ||
Total revenues | $ 209,664 | $ 197,306 |
Cost of Revenues | 120,068 | 128,560 |
Service revenues | ||
REVENUES | ||
Total revenues | 42,240 | 32,214 |
Cost of Revenues | $ 31,903 | $ 24,390 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Stockholders’ Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Preferred Stock Class A Preferred | Common Stock | Treasury Stock | Additional paid-in capital | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment | [1] | |
Beginning balance (in shares) at Jan. 01, 2022 | 0 | |||||||||||
Common stock, beginning balance (in shares) at Jan. 01, 2022 | 146,561,717 | |||||||||||
Beginning balance at Jan. 01, 2022 | $ 268,287 | $ (924) | [1] | $ 0 | $ 15 | $ 277,799 | $ (949) | $ (8,578) | $ (924) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Shares withheld for taxes upon vesting of restricted units | 0 | |||||||||||
Share based compensation | 600 | 600 | ||||||||||
Cumulative translation adjustment | (516) | (516) | ||||||||||
Net income | 19,704 | 19,704 | ||||||||||
Common stock, ending balance (in shares) at Apr. 02, 2022 | 146,561,717 | |||||||||||
Ending balance (in shares) at Apr. 02, 2022 | 0 | |||||||||||
Ending balance at Apr. 02, 2022 | $ 287,151 | $ 0 | $ 15 | 278,399 | (1,465) | 10,202 | ||||||
Beginning balance (in shares) at Dec. 31, 2022 | 0 | |||||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 0 | 0 | ||||||||||
Common stock, beginning balance (in shares) at Dec. 31, 2022 | 146,703,894 | 146,703,894 | ||||||||||
Beginning balance at Dec. 31, 2022 | $ 375,286 | $ 691 | $ 0 | $ 15 | $ 0 | 281,914 | (4,796) | $ 691 | 98,153 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuance of restricted units (in shares) | 58,790 | |||||||||||
Shares withheld for taxes upon vesting of restricted units (in shares) | (18,520) | 18,520 | ||||||||||
Shares withheld for taxes upon vesting of restricted units | (183) | $ (183) | ||||||||||
Share based compensation | 1,830 | 1,830 | ||||||||||
Net income | $ 25,982 | 25,982 | ||||||||||
Common stock, ending balance (in shares) at Apr. 01, 2023 | 146,744,164 | 146,744,164 | ||||||||||
Ending balance (in shares) at Apr. 01, 2023 | 0 | |||||||||||
Ending balance (in shares) at Apr. 01, 2023 | 18,520 | 18,520 | ||||||||||
Ending balance at Apr. 01, 2023 | $ 403,606 | $ 0 | $ 15 | $ (183) | $ 283,744 | $ (4,105) | $ 124,135 | |||||
[1] (a) Effective January 2, 2022, the Company adopted the provisions of Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) and ASU 2016-02, Leases (Topic 842). We have elected to adopt each of the two standards using the modified retrospective approach through a cumulative-effect adjustment to the opening balance of accumulated deficit for both. See Note 2 in the Annual Report on Form 10-K, for the year ended December 31, 2022, for further details of the impact of each standard. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Cash Flows Provided By Operating Activities | ||
Net income | $ 25,982 | $ 19,704 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation of property and equipment | 2,180 | 1,857 |
Reduction in carrying amount of right-of-use assets | 1,485 | 1,319 |
Change in inventory obsolescence reserve | (304) | 0 |
Amortization of intangibles | 7,416 | 7,225 |
Deferred finance fee amortization | 1,346 | 912 |
Provision for losses on accounts receivable | 102 | 975 |
Share based compensation | 1,830 | 600 |
Loss on extinguishment of debt | 0 | 103 |
Loss on sale of equipment | 6 | 0 |
Undistributed losses (earnings) of affiliate | 58 | (22) |
Changes in operating assets and liabilities | ||
Accounts receivable | 5,826 | (12,727) |
Costs in excess of billings on uncompleted contracts | (1,644) | (7,165) |
Prepaid expenses and other current assets | 9,652 | (1,285) |
Inventory | 3,310 | (7,630) |
Accounts payable | 6,168 | 10,375 |
Billing in excess of costs on uncompleted contracts | (3,294) | 4,847 |
Accrued expenses and other current liabilities | (8,471) | 4,647 |
Other assets and long-term liabilities | (1,402) | 1,042 |
Net Cash Provided By Operating Activities | 50,246 | 24,777 |
Cash Flows Used In Investing Activities | ||
Proceeds from sale of equipment | 17 | 0 |
Purchases of property and equipment | (6,070) | (2,880) |
Cash paid for acquisitions, net of cash acquired | (1,002) | 0 |
Net Cash Used In Investing Activities | (7,055) | (2,880) |
Cash Flows Used In Financing Activities | ||
Payments on line of credit | 0 | (6,369) |
Principal payments on long-term debt | (52,017) | (2,017) |
Principal payments under finance lease obligations | (141) | (19) |
Cash Used In Financing Activities | (52,158) | (8,405) |
Effect of exchange rate changes on cash | 233 | (58) |
Net Increase (Decrease) in Cash | (8,734) | 13,434 |
Cash, Beginning of Period | 78,373 | 13,192 |
Cash, End of Period | 69,639 | 26,626 |
Supplemental Cash Flows Information | ||
Interest paid | 14,513 | 6,096 |
Income taxes paid | 185 | 370 |
Cash paid for operating leases | 1,987 | 1,900 |
Non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for operating lease obligations | 33 | 42,202 |
Right-of-use assets obtained in exchange for finance lease obligations | 1,113 | 633 |
RSU Shares withheld related to employee taxes | $ 183 | $ 0 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Janus International Group, Inc. is a holding company incorporated in Delaware. References to “Janus,” “Group,” “Company,” “we,” “our” or “us” refer to Janus International Group, Inc. and its consolidated subsidiaries. The Company is a global manufacturer, supplier, and provider of turn-key self-storage, commercial, and industrial building solutions. The Company provides facility and door automation and access control technologies, roll up and swing doors, hallway systems, and relocatable storage “MASS” (Moveable Additional Storage Structures) units, among other solutions, and works with its customers throughout every phase of a project by providing solutions spanning from facility planning and design, construction, technology, and the restoration, rebuilding, and replacement (“R3”) of damaged or end-of-life products. The Company is headquartered in Temple, Georgia, and has domestic operations in Georgia, Texas, Arizona, Indiana, North Carolina, with international operations in United Kingdom, Australia, and Singapore. The Company provides products and services through its two operating and reportable segments which are based on the geographic region of its operations: (i) Janus North America and (ii) Janus International. The Janus International segment is comprised of Janus International Europe Holdings Ltd. (UK) (“JIE”), whose production and sales are largely in Europe and Australia. The Janus North America segment is comprised of all the other entities including Janus Core together with each of its operating subsidiaries, Betco, Inc. (“BETCO”), Nokē, Inc. (“NOKE”), Asta Industries, Inc. (“ASTA”), Access Control Technologies, LLC (“ACT”), Janus Door, LLC and Steel Door Depot.com, LLC. The Company’s common stock is currently traded on the New York Stock Exchange under the symbol “JBI”. The dollar amounts in the notes are shown in thousands of dollars, unless otherwise noted, and rounded to the nearest thousand except for share and per share amounts. Assets held at foreign locations were approximately $65,406 and $61,144 as of April 1, 2023 and December 31, 2022, respectively. Revenues earned at foreign locations totaled approximately $21,572 and $17,914 for the three months ended April 1, 2023 and April 2, 2022, respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with U.S. GAAP and pursuant to the applicable rules and regulations of the SEC. In the opinion of the Company’s management, the Unaudited Condensed Consolidated Financial Statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of April 1, 2023, and its results of operations, including its comprehensive income and stockholders’ equity for the three months ended April 1, 2023 and April 2, 2022 . The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. This Quarterly Report on Form 10-Q should be read in conjunction with the Audited Consolidated Financial Statements and notes that are included in the Annual Report on Form 10-K, for the year ended December 31, 2022. Principles of Consolidation The Unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. The Company’s joint venture is accounted for under the equity method of accounting. All significant intercompany accounts and transactions have been eliminated in consolidation. Reclassification On the Condensed Consolidated Statements of Operations and Comprehensive Income, the Company bifurcated the prior year “Cost of Sales” account between “Product cost of revenues” and “Service cost of revenues” to conform to the current year presentation. Use of Estimates The preparation of Unaudited Condensed Consolidated Financial Statements in conformity with U.S GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, but are not limited to, income taxes and the effective tax rates, reserves for inventory obsolescence, the recognition and valuation of unit-based compensation arrangements, the useful lives of property and equipment, estimated progress toward completion for certain revenue contracts, allowances for uncollectible receivable balances, fair values and impairment of intangible assets and goodwill and assumptions used in the recognition of contract assets. Emerging Growth Company Section 102(b)(1) of the Jumpstart Our Business Startups Act, or JOBS Act, exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The Company qualifies as an “Emerging Growth Company” and has elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. This election allows the Company to adopt the new or revised standard at the same time periods as private companies. Fair Value Measurement The Company uses valuation approaches that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. A three-tiered hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires that the Company use observable market data, when available, and minimize the use of unobservable inputs when determining fair value: • Level 1, observable inputs such as quoted prices in active markets; • Level 2, inputs other than the quoted prices in active markets that are observable either directly or indirectly; • Level 3, unobservable inputs in which there is little or no market data, which requires that the Company develop its own assumptions. The fair value of cash, accounts receivable less allowance for credit losses, and accounts payable approximate the carrying amounts due to the short-term maturities of these instruments. The fair value of the Company’s debt approximates its carrying amount as of April 1, 2023 and December 31, 2022 due to its variable interest rate that is tied to the current LIBOR rate plus an applicable margin and consistency in our credit rating. To estimate the fair value of the Company’s debt, the Company utilized fair value based risk measurements that are indirectly observable, such as credit risk that fall within Level 2 of the Fair Value hierarchy. Significant Accounting Policies The Company’s significant accounting policies have not changed materially from those described in its Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at the invoiced amount and do not bear interest. On January 2, 2022, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) (“CECL”), which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. Refer to the Recently Adopted Accounting Pronouncements section of our 2022 Annual Report on Form 10-K for the year ended December 31, 2022, for more information on the impact to the Consolidated Financial Statements. The Company gathered information about its current bad debt reserve and write-off practices and loss methodology, in-scope assets, historical credit losses, proposed pooling approach and expected changes to business practices under CECL. Accounts receivables are stated at estimated net realizable value from the sale of products and services to established customers. The Company determined that pooling accounts receivable by business units was the most appropriate because of the similarity of risk characteristics within each line such as customers and services offered. Historical losses and customer-specific reserve information that are used to calculate the historical loss rates are available for each business unit. During the pooling process, the Company identified two distinct customer types: commercial and self-storage. As these customer types have different risk characteristics, the Company pools the financial assets at this level within each business unit. Commercial customers typically are customers contracting with the Company on short-term projects with smaller credit limits and overall, smaller project sizes. Due to the short-term nature and smaller scale of these types of projects, the Company expects minimal write-offs of its receivables at the commercial pool. Self-storage projects typically involve general contractors and make up the largest portion of the Company’s accounts receivable balance. These projects are usually longer-term construction projects and billed over the course of construction. Credit limits are larger for these projects given the overall project size and duration. Due to the longer-term nature and larger scale of these types of projects, the Company expects a potential for more write-offs of its receivable balances within the self-storage pool. The Company reviewed methods provided by the guidance and determined to use the loss-rate method in the CECL analysis for trade receivables and contract assets. This loss-rate method was selected as there is reliable historical information available by business unit, and this historical information was determined to be representative of the Company’s current customers, products, services, and billing practices. The activity for the allowance for credit losses during the periods ended April 1, 2023 and fiscal year ended December 31, 2022, is as follows: April 1, 2023 December 31, 2022 Balance at beginning of period $ 4,549 $ 5,449 CECL Adoption — 366 Write-offs — (2,949) Provision (reversal). net 103 1,683 Balance at end of period $ 4,652 $ 4,549 (1) On January 2, 2022, the Company adopted the provisions of ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326), which introduced a new model known as CECL. Product Warranties The Company records a liability for product warranties at the time of the related sale of goods. The liability is estimated using historical warranty experience, projected claim rates and expected costs per claim. The Company adjusts its liability for specific warranty matters when they become known and the exposure can be estimated. Product failure rates as well as material usage and labor costs incurred in correcting a product failure affect the Company's warranty liabilities. If actual costs differ from estimated costs, the Company must make a revision to the warranty liability. Generally, the Company offers warranties ranging between 1-3 years for our products with the exception of roofing at one of our business units which is up to 10 years. The activity related to product warranty liabilities recorded in Accrued expenses and other current liabilities, during the periods ended April 1, 2023 and fiscal year ended December 31, 2022, is as follows: April 1, 2023 December 31, 2022 Balance at beginning of period $ 876 $ 736 Aggregate changes in the product warranty liability 325 140 Balance at end of period $ 1,201 $ 876 Concentrations of Risk Financial instruments that are potentially subject to concentration of credit risk consist primarily of cash and accounts receivable. The Company maintains cash in bank deposit accounts that, at times, may exceed the insured limits of the local country. The Company has not experienced any losses in such accounts. The Company sells its products and services mainly in the United States and European regions. The Company performs ongoing evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. The Company generally does not require its customers to provide collateral or other security to support accounts receivable. As of April 1, 2023 and December 31, 2022, no customer accounted for more than 10% of the accounts receivable balance. Segments The Company manages its operations through two operating and reportable segments: Janus North America and Janus International. These segments align the Company’s products and service offerings based on the geographic location between North America and International locations which is consistent with how the Company’s Chief Executive Officer, its Chief Operating Decision Maker (“CODM”), reviews and evaluates the Company’s operations. The CODM allocates resources and evaluates the financial performance of each operating segment. The Company’s segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services. Refer to Note 14, Segments, for further detail. Recently Adopted Accounting Pronouncements On January 1, 2023, the Company adopted ASU 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"), which amends ASC 805, Business Combinations (Topic 805), to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers (Topic 606) ("ASC 606"). Janus will be applying the pronouncement prospectively to business combinations occurring on or after the adoption date. Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is effective and may be applied beginning March 12, 2020 and will apply through December 31, 2022. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) (“ASU 2021-01”). The amendments in ASU 2021-01 provide optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the LIBOR or another reference rate expected to be discontinued because of the reference rate reform. The provisions must be applied at a Topic, Subtopic, or Industry Subtopic level for all transactions other than derivatives, which may be applied at a hedging relationship level. In April 2022, the FASB, proposed the deferral of the sunset date of this guidance to December 31, 2024. The Company does not expect that adopting the Reference Rate Reform accounting pronouncement will have a significant impact on the consolidated results of operations, financial position, or cash flows of the Company. Although there are several other new accounting pronouncements issued or proposed by the FASB, which have been adopted or will be adopted as applicable, management does not believe any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial position or results of operations. |
Inventories
Inventories | 3 Months Ended |
Apr. 01, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value utilizing the first-in, first-out (FIFO) method. The major components of inventories as of April 1, 2023 and December 31, 2022 are as follows: April 1, December 31, 2023 2022 Raw materials $ 48,772 $ 49,788 Work-in-process 534 1,566 Finished goods 15,463 16,323 Inventory, net $ 64,769 $ 67,677 The Company has recorded a reserve for inventory obsolescence as of April 1, 2023 and December 31, 2022, of approximately $2,342 and $2,034, respectively. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Apr. 01, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property, equipment, and other fixed assets as of April 1, 2023 and December 31, 2022 are as follows: April 1, December 31, Useful Life 2023 2022 Land Indefinite $ 4,501 $ 4,501 Building 39 years 2,459 2,459 Manufacturing machinery and equipment 3-7 years 40,498 38,814 Leasehold improvements Over the shorter of the lease term or respective useful life 8,446 8,327 Computer and software 3 years 9,762 9,580 Furniture and fixtures, and vehicles 3-7 years 3,800 3,623 Construction in progress — 5,727 1,852 $ 75,193 $ 69,156 Less: accumulated depreciation (29,188) (27,073) $ 46,005 $ 42,083 |
Acquired Intangible Assets and
Acquired Intangible Assets and Goodwill | 3 Months Ended |
Apr. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets and Goodwill | Acquired Intangible Assets and Goodwill Intangible assets acquired in a business combination are recognized at fair value and amortized over their estimated useful lives. The carrying basis and accumulated amortization of recognized intangible assets at April 1, 2023 and December 31, 2022, are as follows: April 1, December 31, 2023 2022 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Intangible Assets Useful Life Customer relationships 10-15 years $ 408,536 $ 132,753 $ 275,783 $ 408,246 $ 125,613 $ 282,633 Tradenames and trademarks Indefinite 107,491 — 107,491 107,378 — 107,378 Software development 10-15 years 20,320 6,447 13,873 20,320 6,085 14,235 Noncompete agreements 3-8 years 395 266 129 394 255 139 Backlog < 1 year — — — 41,390 41,390 — $ 536,742 $ 139,466 $ 397,276 $ 577,728 $ 173,343 $ 404,385 Changes to gross carrying amount of recognized intangible assets due to translation adjustments include an approximate $307 for the period ended April 1, 2023. Amortization expense was approximately $7,416 and $7,225 for the three month periods ended April 1, 2023 and April 2, 2022, respectively. The changes in the carrying amounts of goodwill for the period ended April 1, 2023 were as follows: Balance as of December 31, 2022 $ 368,204 Foreign Currency Translation Adjustment 159 Balance as of April 1, 2023 $ 368,363 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Apr. 01, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities are summarized as follows: April 1, December 31, 2023 2022 Customer deposits $ 28,505 $ 29,581 Employee compensation 9,709 16,520 Current operating lease liabilities 5,375 5,310 Sales tax payable 5,298 5,144 Income taxes 1,313 773 Accrued professional fees 1,935 3,594 Product warranties 1,201 876 Accrued freight 1,139 1,177 Interest payable 374 235 Indemnity holdback liability — 1,002 Other liabilities 6,517 6,339 Total $ 61,366 $ 70,551 Other liabilities as of April 1, 2023 and December 31, 2022 consists of property tax, credit card and various other accruals. |
Line of Credit
Line of Credit | 3 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of CreditOn February 12, 2018, the Company, through Intermediate and Janus Core, entered into a revolving line of credit facility with a financial institution pursuant to ABL Credit And Guarantee Agreement (the “LOC Agreement”). In August 2021, the Company increased the available line of credit from $50,000 to $80,000, incurred additional fees for this amendment of $425 and extended the maturity date from February 18, 2023 to August 12, 2024. The current line of credit facility is for $80,000 with interest payments due in arrears. The interest rate on the facility is based on a base rate, unless a LIBOR Rate (as defined in the LOC Agreement) option is chosen by the Company. If the LIBOR Rate is elected, the interest computation is equal to the LIBOR Rate plus the LIBOR Rate Margin of 1.25%, as of April 1, 2023. If the Base Rate (as defined in the LOC Agreement) is elected, the interest computation is equal to the Base Rate of the greatest of (a) the federal funds rate plus .5%, (b) the LIBOR rate plus 1%, or (c) the financial institution’s Prime Rate (as defined in the LOC Agreement), plus the Base Rate Margin (as defined in the LOC Agreement) of .25% as of April 1, 2023. At the beginning of each quarter, the applicable margin is set and determined by the administrative agent based on the average net availability on the line of credit for the previous quarter. As of April 1, 2023 and December 31, 2022, the interest rate in effect for the facility was 8.3% and 7.8%, respectively. The line of credit is collateralized by accounts receivable and inventories. The Company has incurred deferred loan costs in the amount of $1,483 which are being amortized over the term of the facility that expires on August 12, 2024, using the effective interest method, and are presented as part of other assets within our Unaudited Condensed Consolidated Balance Sheet. The amortization of the deferred loan costs is included in interest expense on the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. Amortization of approximately $62 and $62 was recognized for the three months ended April 1, 2023 and April 2, 2022, respectively. The unamortized portion of the fees as of April 1, 2023 and December 31, 2022 was approximately $340 and $402, respectively. There was $— outstanding on the line of credit as of April 1, 2023 and December 31, 2022.Long-Term Debt Long-term debt consists of the following: April 1, December 31, 2023 2022 Note payable - Amendment No. 4 First Lien $ 662,295 $ 714,312 Financing leases 2,044 1,043 $ 664,339 $ 715,355 Less: unamortized deferred finance fees 5,872 7,158 Less: current maturities 8,649 8,347 Total long-term debt $ 649,818 $ 699,850 Notes Payable - Amendment No.4 First Lien - On August 18, 2021, the Company completed a refinancing in the form of that certain Incremental Amendment No. 4 to that certain First Lien Credit and Guarantee Agreement, dated as of February 12, 2018 (as restated, amended and restated, supplemented or otherwise modified from time to time) (the “Amendment No. 4 First Lien”), in which the principal terms of the amendment were new borrowings of $155,000 which was used to fund the DBCI acquisition. The Amendment No. 4 First Lien is comprised of a syndicate of lenders originating on August 18, 2021 in the amount of $726,413 with interest payable in arrears. The outstanding loan balance is to be repaid on a quarterly basis of 0.25% of the original balance beginning the last day of September 2021 with the remaining principal due on the maturity date of February 12, 2025. As chosen by the Company, the amended loan bears interest at a floating rate per annum consisting of LIBOR, plus an applicable margin percent (effective rate of 8.1% as of April 1, 2023). The debt is secured by substantially all business assets. This refinancing amendment was accounted for as a modification and as such no gain or loss was recognized for this transaction and any bank fees, original issue discount and charges capitalized are being amortized as a component of interest expense over the remaining loan term. Third party fees paid in connection with this amendment were expensed. During the three months ended April 1, 2023, we made a voluntary prepayment of $50,000 on the Amendment No.4 First Lien. As of April 1, 2023 and December 31, 2022, the Company maintained one letter of credit totaling approximately $400 on which there were no balances due. In connection with the Company entering into the First Lien debt agreement discussed above, deferred finance fees were capitalized. Amortization of approximately $1,284 and $851 was recognized for the three months ended April 1, 2023 and April 2, 2022, respectively, as a component of interest expense, including those amounts amortized in relation to the deferred finance fees associated with the outstanding line of credit. The increase during the period ended April 1, 2023, was primarily a result of the voluntary prepayment as noted above. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Line of CreditOn February 12, 2018, the Company, through Intermediate and Janus Core, entered into a revolving line of credit facility with a financial institution pursuant to ABL Credit And Guarantee Agreement (the “LOC Agreement”). In August 2021, the Company increased the available line of credit from $50,000 to $80,000, incurred additional fees for this amendment of $425 and extended the maturity date from February 18, 2023 to August 12, 2024. The current line of credit facility is for $80,000 with interest payments due in arrears. The interest rate on the facility is based on a base rate, unless a LIBOR Rate (as defined in the LOC Agreement) option is chosen by the Company. If the LIBOR Rate is elected, the interest computation is equal to the LIBOR Rate plus the LIBOR Rate Margin of 1.25%, as of April 1, 2023. If the Base Rate (as defined in the LOC Agreement) is elected, the interest computation is equal to the Base Rate of the greatest of (a) the federal funds rate plus .5%, (b) the LIBOR rate plus 1%, or (c) the financial institution’s Prime Rate (as defined in the LOC Agreement), plus the Base Rate Margin (as defined in the LOC Agreement) of .25% as of April 1, 2023. At the beginning of each quarter, the applicable margin is set and determined by the administrative agent based on the average net availability on the line of credit for the previous quarter. As of April 1, 2023 and December 31, 2022, the interest rate in effect for the facility was 8.3% and 7.8%, respectively. The line of credit is collateralized by accounts receivable and inventories. The Company has incurred deferred loan costs in the amount of $1,483 which are being amortized over the term of the facility that expires on August 12, 2024, using the effective interest method, and are presented as part of other assets within our Unaudited Condensed Consolidated Balance Sheet. The amortization of the deferred loan costs is included in interest expense on the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. Amortization of approximately $62 and $62 was recognized for the three months ended April 1, 2023 and April 2, 2022, respectively. The unamortized portion of the fees as of April 1, 2023 and December 31, 2022 was approximately $340 and $402, respectively. There was $— outstanding on the line of credit as of April 1, 2023 and December 31, 2022.Long-Term Debt Long-term debt consists of the following: April 1, December 31, 2023 2022 Note payable - Amendment No. 4 First Lien $ 662,295 $ 714,312 Financing leases 2,044 1,043 $ 664,339 $ 715,355 Less: unamortized deferred finance fees 5,872 7,158 Less: current maturities 8,649 8,347 Total long-term debt $ 649,818 $ 699,850 Notes Payable - Amendment No.4 First Lien - On August 18, 2021, the Company completed a refinancing in the form of that certain Incremental Amendment No. 4 to that certain First Lien Credit and Guarantee Agreement, dated as of February 12, 2018 (as restated, amended and restated, supplemented or otherwise modified from time to time) (the “Amendment No. 4 First Lien”), in which the principal terms of the amendment were new borrowings of $155,000 which was used to fund the DBCI acquisition. The Amendment No. 4 First Lien is comprised of a syndicate of lenders originating on August 18, 2021 in the amount of $726,413 with interest payable in arrears. The outstanding loan balance is to be repaid on a quarterly basis of 0.25% of the original balance beginning the last day of September 2021 with the remaining principal due on the maturity date of February 12, 2025. As chosen by the Company, the amended loan bears interest at a floating rate per annum consisting of LIBOR, plus an applicable margin percent (effective rate of 8.1% as of April 1, 2023). The debt is secured by substantially all business assets. This refinancing amendment was accounted for as a modification and as such no gain or loss was recognized for this transaction and any bank fees, original issue discount and charges capitalized are being amortized as a component of interest expense over the remaining loan term. Third party fees paid in connection with this amendment were expensed. During the three months ended April 1, 2023, we made a voluntary prepayment of $50,000 on the Amendment No.4 First Lien. As of April 1, 2023 and December 31, 2022, the Company maintained one letter of credit totaling approximately $400 on which there were no balances due. In connection with the Company entering into the First Lien debt agreement discussed above, deferred finance fees were capitalized. Amortization of approximately $1,284 and $851 was recognized for the three months ended April 1, 2023 and April 2, 2022, respectively, as a component of interest expense, including those amounts amortized in relation to the deferred finance fees associated with the outstanding line of credit. The increase during the period ended April 1, 2023, was primarily a result of the voluntary prepayment as noted above. |
Leases
Leases | 3 Months Ended |
Apr. 01, 2023 | |
Leases [Abstract] | |
Leases | LeasesAt lease commencement, a right-of-use (“ROU”) asset and lease liability is recorded based on the present value of the future lease payments over the lease term. The Company has elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less. The Company leases facilities, vehicles, and other equipment under long-term operating and financing leases with varying terms. In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar service, which are considered non-lease components for accounting purposes. For our real estate leases, we apply a practical expedient to include these non-lease components in calculating the ROU asset and lease liability. Furthermore, for all other types of leases, the practical expedient was also elected whereby lease and non-lease components have been combined. The Company uses the non-cancellable lease term unless it is reasonably certain that a renewal or termination option will be exercised. When available, the Company will use the rate implicit in the lease to discount lease payments to present value, however as most leases do not provide an implicit rate, the Company will estimate the incremental borrowing rate to discount the lease payments. The Company estimates the incremental borrowing rate based on the rates of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis, over a similar term, and in a similar economic environment. The ROU asset also includes any lease prepayments and initial direct costs, offset by lease incentives. The Company does not consider renewal periods or early terminations to be reasonably certain and are thus not included in the lease term for real estate or equipment assets. The components of ROU assets and lease liabilities were as follows: (in thousands) Balance Sheet Classification April 1, 2023 December 31, 2022 Assets: Operating lease assets Right-of-use assets, net $ 41,949 $ 43,282 Finance lease assets Right-of-use assets, net 2,012 1,023 Total leased assets $ 43,961 $ 44,305 Liabilities: Current: Operating Other accrued expenses $ 5,375 $ 5,310 Financing Current maturities of long-term debt 581 280 Noncurrent: Operating Other long-term liabilities $ 39,668 $ 40,907 Financing Long-term debt 1,463 763 Total lease liabilities $ 47,087 $ 47,260 The components of lease expense were as follows: Three Months Ended Three Months Ended (in thousands) April 1, 2023 April 2, 2022 Operating lease cost $ 2,146 $ 1,986 Short-term lease cost — 60 Finance lease cost: Amortization of right-of-use assets $ 124 $ 17 Interest on lease liabilities 30 3 Total lease cost $ 2,300 $ 2,066 Other information related to leases was as follows: April 1, 2023 December 31, 2022 Weighted Average Remaining Lease Term (in years) Operating Leases 9.55 9.66 Finance Leases 3.26 3.37 Weighted Average Discount Rate Operating Leases 7.1% 7.1% Finance Leases 8.0% 6.6% As of April 1, 2023, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows: (in thousands) 2023 $ 6,254 2024 7,513 2025 6,649 2026 6,074 2027 5,304 Thereafter 31,866 Total future lease payments $ 63,660 Less: imputed interest $ (18,617) Present value of future lease payments $ 45,043 As of April 1, 2023, future minimum repayments of finance leases were as follows: (in thousands) 2023 $ 539 2024 718 2025 718 2026 246 2027 92 Thereafter 13 Total future lease payments $ 2,326 Less: imputed interest $ (282) Present value of future lease payments $ 2,044 |
Leases | LeasesAt lease commencement, a right-of-use (“ROU”) asset and lease liability is recorded based on the present value of the future lease payments over the lease term. The Company has elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less. The Company leases facilities, vehicles, and other equipment under long-term operating and financing leases with varying terms. In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar service, which are considered non-lease components for accounting purposes. For our real estate leases, we apply a practical expedient to include these non-lease components in calculating the ROU asset and lease liability. Furthermore, for all other types of leases, the practical expedient was also elected whereby lease and non-lease components have been combined. The Company uses the non-cancellable lease term unless it is reasonably certain that a renewal or termination option will be exercised. When available, the Company will use the rate implicit in the lease to discount lease payments to present value, however as most leases do not provide an implicit rate, the Company will estimate the incremental borrowing rate to discount the lease payments. The Company estimates the incremental borrowing rate based on the rates of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis, over a similar term, and in a similar economic environment. The ROU asset also includes any lease prepayments and initial direct costs, offset by lease incentives. The Company does not consider renewal periods or early terminations to be reasonably certain and are thus not included in the lease term for real estate or equipment assets. The components of ROU assets and lease liabilities were as follows: (in thousands) Balance Sheet Classification April 1, 2023 December 31, 2022 Assets: Operating lease assets Right-of-use assets, net $ 41,949 $ 43,282 Finance lease assets Right-of-use assets, net 2,012 1,023 Total leased assets $ 43,961 $ 44,305 Liabilities: Current: Operating Other accrued expenses $ 5,375 $ 5,310 Financing Current maturities of long-term debt 581 280 Noncurrent: Operating Other long-term liabilities $ 39,668 $ 40,907 Financing Long-term debt 1,463 763 Total lease liabilities $ 47,087 $ 47,260 The components of lease expense were as follows: Three Months Ended Three Months Ended (in thousands) April 1, 2023 April 2, 2022 Operating lease cost $ 2,146 $ 1,986 Short-term lease cost — 60 Finance lease cost: Amortization of right-of-use assets $ 124 $ 17 Interest on lease liabilities 30 3 Total lease cost $ 2,300 $ 2,066 Other information related to leases was as follows: April 1, 2023 December 31, 2022 Weighted Average Remaining Lease Term (in years) Operating Leases 9.55 9.66 Finance Leases 3.26 3.37 Weighted Average Discount Rate Operating Leases 7.1% 7.1% Finance Leases 8.0% 6.6% As of April 1, 2023, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows: (in thousands) 2023 $ 6,254 2024 7,513 2025 6,649 2026 6,074 2027 5,304 Thereafter 31,866 Total future lease payments $ 63,660 Less: imputed interest $ (18,617) Present value of future lease payments $ 45,043 As of April 1, 2023, future minimum repayments of finance leases were as follows: (in thousands) 2023 $ 539 2024 718 2025 718 2026 246 2027 92 Thereafter 13 Total future lease payments $ 2,326 Less: imputed interest $ (282) Present value of future lease payments $ 2,044 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is taxed as a Corporation for U.S. income tax purposes and similar sections of the state income tax laws. The Company’s effective tax rate is based on pre-tax earnings, enacted U.S. statutory tax rates, non-deductible expenses, and certain tax rate differences between U.S. and foreign jurisdictions. The foreign subsidiaries file income tax returns in the United Kingdom, France, Australia, and Singapore as necessary. For tax reporting purposes, the taxable income or loss with respect to the 45% ownership in the joint venture operating in Mexico will be reflected in the income tax returns filed under that country’s jurisdiction. The Company’s provision for income taxes consists of provisions for federal, state, and foreign income taxes. Deferred tax liabilities and assets attributable to different tax jurisdictions are not offset. The provision for income taxes for the three months ended April 1, 2023 and April 2, 2022 includes amounts related to entities within the Company taxed as corporations in the United States, United Kingdom, France, Australia, and Singapore. The Company determines its provision for income taxes for interim periods using an estimate of its annual effective tax rate on year to date ordinary income and records any changes affecting the estimated annual effective tax rate in the interim period in which the change occurs. Additionally, the income tax effects of significant unusual or infrequently occurring items are recognized entirely within the interim period in which the event occurs. |
Equity Compensation
Equity Compensation | 3 Months Ended |
Apr. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Compensation | Equity Compensation 2021 Omnibus Incentive Plan The Company maintains its 2021 Omnibus Incentive Plan (the “Plan”) under which it grants stock-based awards to eligible directors, officers and employees in order to attract, retain and reward such individuals and strengthen the mutuality of interest between such individuals and the Company’s stockholders. The Plan allows the Company to issue and grant 15,125,000 shares. The Company measures compensation expense for stock-based awards in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). During the three months ended April 1, 2023, the Company granted stock-based awards including restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”), and stock options under the Plan. The grant date fair value of RSUs are equal to the closing price of the Company’s common stock on either: (i) the date of grant; or (ii) the previous trading day, depending on the level of administration required. Forfeitures are recognized as they occur, any unvested RSUs or stock options are forfeited upon a “Termination of Service”, as defined in the Plan, or as otherwise provided in the applicable award agreement or determined by the Company’s Compensation Committee of the Board of Directors. Restricted Stock Unit Grants RSUs are subject to a vesting period between one (dollar amounts in thousands, except share and per share data) Three Months Ended April 1, 2023 RSUs Weighted-Average Grant Date Fair Value Unvested, outstanding at December 31, 2022 465,064 $ 10.5 Granted 495,631 10.6 Vested (58,790) 9.5 Forfeited (9,288) 10.0 Unvested, outstanding at April 1, 2023 892,617 $ 10.6 Stock-based compensation expense for RSUs is recognized straight line over the respective service period, reduced for actual forfeitures, and included in general and administrative expense in the accompanying Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income. Total compensation expense related to the above awards was approximately $637 and $600 for the three months ended April 1, 2023 and April 2, 2022, respectively. As of April 1, 2023, there was an aggregate of $8,538 of unrecognized expense related to the RSUs granted, which the Company expects to amortize over a weighted-average period of 3.01 years. Performance-based Restricted Stock Unit Grant s PSU awards are based on the satisfaction of the Company’s performance metrics. The number of PSUs that become earned can range between 0% and 200% of the original target number of PSUs awarded for the 2022 awards. PSUs are subject to a three-year performance cliff-vesting period. As of April 1, 2023, PSUs activity for the three months ended April 1, 2023 is as follows: (dollar amounts in thousands, except share and per share data) Three Months Ended April 1, 2023 PSUs Weighted-Average Grant Date Fair Value Unvested, outstanding at December 31, 2022 252,923 $ 9.5 Granted 229,091 10.6 Vested — — Forfeited — — Unvested, outstanding at April 1, 2023 (1) 482,014 10.0 1) This number excludes 252,923 performance stock units, which represents the incremental number of units that would be issued based on performance results from previously-granted PSU awards. The PSUs granted in 2022 are currently estimated at 200% of target. Stock-based compensation expense for PSUs is recognized straight line over the requisite service period, reduced for actual forfeitures, and included in general and administrative in the accompanying Condensed Consolidated Statement of Operations and Comprehensive Income. Total compensation expense related to the PSUs was approximately $994 for the three months ended April 1, 2023. As of April 1, 2023, there was an aggregate of $4,802 of unrecognized expense related to the PSUs granted, which the Company expects to amortize over a weighted-average period of 2.21 years. The above table represents PSUs assuming 100% of target payout at the time of the grant. Actual payouts can range between 0% and 200%, depending on performance results for the three-year performance period. As of April 1, 2023, the Company deemed the estimate of the PSUs granted in fiscal year ended December 31, 2022 to be issued at 200% of target, and have reflected such estimates within the share-based compensation expense. The Company estimates the PSU’s granted during the period ending April 1, 2023 to be issued at 100% of target. The Actual payout of the 2022 grants will be in a range of 0% to 200%, depending on performance results for the three-year performance period from January 2, 2022, through December 28, 2024. The Actual payout of the 2023 grants will be in a range of 0% to 200%, depending on performance results for the three-year performance period from January 1, 2023, through December 27, 2025. Stock Options Stock options are granted by applying a valuation method to determine the grant date fair value for each stock option award. Stock options are subject to a vesting period of either three The principal assumptions utilized in valuing stock options include, the expected option life, the risk-free interest rate (an estimate based on the yield of United States Treasury zero coupon with a maturity equal to the expected life of the option), the expected stock price volatility using the historical and implied price volatility, and the expected dividend yield. A summary of the assumptions used in determining the fair value of stock options is as follows: (dollar amounts in thousands, except share and per share data) Three Months Ended April 1, 2023 Expected life of option (years) 6.00 - 6.25 Risk-free interest rate 2.9% - 3.7% Expected volatility of the Company’s stock 45% - 48% Expected dividend yield on the Company’s stock — % Stock option activity for the three months ended April 1, 2023 is as follows: Three Months Ended April 1, 2023 Stock Options Weighted-Average Grant Date Fair Value Weighted Average Remaining Contractual Life (in years) Intrinsic value Unvested, outstanding at December 31, 2022 700,729 $ 4.5 9.8 $ 0.2 Granted 18,796 5.3 10.0 — Exercised — — — — Vested (113,252) 4.5 9.0 — Forfeited — — — — Unvested, outstanding at April 1, 2023 606,273 $ 4.5 9.1 $ — Vested not exercised at April 1, 2023 113,252 $ 4.5 9.0 $ — |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Apr. 01, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed based on the weighted average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. For the three months ended April 1, 2023 and April 2, 2022, dilutive potential common shares include stock options and unvested restricted stock units. Dilutive EPS excludes all common shares if their effect is anti-dilutive. The following table sets forth the computation of basic and diluted EPS attributable to common stockholders for the three months ended April 1, 2023 and April 2, 2022 (in thousands, except share and per share data): Three Months Ended April 1, 2023 April 2, 2022 Numerator: Net income attributable to common stockholders $ 25,982 $ 19,704 Denominator: Weighted average number of shares: Basic 146,703,894 146,561,717 Adjustment for dilutive securities 48,007 271,172 Diluted 146,751,901 146,832,889 Basic net income per share attributable to common stockholders $ 0.18 $ 0.13 Diluted net income per share attributable to common stockholders $ 0.18 $ 0.13 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company accounts for a contract with a customer when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights and payment terms can be identified, the contract has commercial substance, and it is probable that the Company will collect substantially all of the consideration to which it is entitled. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised good or service to a customer. Contract Balances Contract assets are the rights to consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditional on something other than the passage of time. Contract assets primarily result from contracts that include installation which are billed via payment requests that are submitted in the month following the period during which revenue was recognized. Contract liabilities are recorded for any services billed to customers and not yet recognizable if the contract period has commenced or for the amount collected from customers in advance of the contract period commencing. Contract assets are disclosed as costs and estimated earnings in excess of billings on uncompleted contracts, and contract liabilities are disclosed as billings in excess of costs and estimated earnings on uncompleted contracts in the Unaudited Condensed Consolidated Balance Sheet. Contract balances as of April 1, 2023 were as follows: April 1, 2023 Contract assets, beginning of the period $ 39,251 Contract assets, end of the period 40,992 Contract liabilities, beginning of the period 21,445 Contract liabilities, end of the period $ 18,311 During the three months ended April 1, 2023, the Company recognized revenue of approximately $11,948 related to contract liabilities at December 31, 2022. This reduction was offset by new billings of approximately $8,814 for product and services for which there were unsatisfied performance obligations to customers and revenue had not yet been recognized for the three month period ended April 1, 2023. The Company derives subscription revenue from continued software support and through the Nokē Smart Entry System, a product which provides mobile access for tenants and remote monitoring and tracking for operators. We determine standalone selling price for recurring software revenue by using the adjusted market assessment approach. The recurring revenue recognized from the Nokē Smart Entry System for the three months ended April 1, 2023 and April 2, 2022 was $439 and $268 , respectively. Disaggregation of Revenue The principal categories we use to disaggregate revenues are by timing and sales channel of revenue recognition. The following disaggregation of revenues depict the Company’s reportable segment revenues by timing and sales channel of revenue recognition for the three months ended April 1, 2023 and April 2, 2022: Revenue by Timing of Revenue Recognition Three Months Ended Reportable Segments by Timing of Revenue Recognition April 1, 2023 April 2, 2022 Janus North America Goods transferred at a point in time $ 204,439 $ 200,157 Services transferred over time 33,775 25,099 $ 238,214 $ 225,256 Janus International Goods transferred at a point in time $ 13,106 $ 10,798 Services transferred over time 8,466 7,116 $ 21,572 $ 17,914 Eliminations $ (7,882) $ (13,650) Total Revenue $ 251,904 $ 229,520 Revenue by Sales Channel Three Months Ended Reportable Segments by Sales Channel Revenue Recognition April 1, 2023 April 2, 2022 Janus North America Self Storage-New Construction $ 68,243 $ 75,709 Self Storage-R3 82,253 61,572 Commercial and Others 87,718 87,975 $ 238,214 $ 225,256 Janus International Self Storage-New Construction $ 18,538 $ 11,897 Self Storage-R3 3,034 6,017 $ 21,572 $ 17,914 Eliminations $ (7,882) $ (13,650) Total Revenue $ 251,904 $ 229,520 |
Segments Information
Segments Information | 3 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Segments Information | Segments Information The Company operates its business and reports its results through two reportable segments: Janus North America and Janus International, in accordance with ASC Topic 280, Segment Reporting. The Janus International segment is comprised of JIE with its production and sales located largely in Europe. The Janus North America segment is comprised of all the other entities including Janus Core, BETCO, NOKE, ASTA, DBCI, ACT, Janus Door, U.S. Door, and Steel Door Depot. Summarized financial information for the Company’s segments is shown in the following tables: Three Months Ended April 1, April 2, 2023 2022 Revenue Janus North America $ 238,214 $ 225,256 Janus International 21,572 17,914 Eliminations (7,882) (13,650) Consolidated Revenue $ 251,904 $ 229,520 Income From Operations Janus North America $ 48,878 $ 34,855 Janus International 2,279 249 Eliminations (145) 11 Total Segment Operating Income $ 51,012 $ 35,115 Depreciation Expense Janus North America $ 1,954 $ 1,673 Janus International 226 184 Consolidated Depreciation Expense $ 2,180 $ 1,857 Amortization of Intangible Assets Janus North America $ 7,105 $ 6,886 Janus International 311 339 Consolidated Amortization Expense $ 7,416 $ 7,225 Capital Expenditures Janus North America $ 5,144 $ 2,553 Janus International 926 327 Consolidated Capital Expenditures $ 6,070 $ 2,880 April 1, December 31 2023 2022 Identifiable Assets Janus North America $ 1,176,877 $ 1,209,905 Janus International 65,031 60,713 Consolidated Assets $ 1,241,908 $ 1,270,618 |
Restructuring
Restructuring | 3 Months Ended |
Apr. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During fiscal year 2022 and 2023, the Company initiated a restructuring plan to relocate one of its international facilities and align its ongoing corporate strategy. The Company incurs costs associated with restructuring initiatives intended to improve operating performance, profitability and efficiency of business processes. Restructuring charges can include severance costs, relocations costs, recruiting fees affiliated with hiring new personnel, legal costs, and contract cancellation costs. The Company records restructuring charges when they are probable and estimable. Restructuring costs are accrued when the Company announces the closure or restructuring event, and the amounts can be reasonably estimated. Restructuring costs are included in general and administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income. The Company’s restructuring expenses are comprised of the following: (in thousands) April 1, April 2, 2023 2022 Severance and termination benefits $ 93 $ — Facility related charges — 103 Legal, consulting, and other professional fees 497 — Total Restructuring Charges $ 590 $ 103 The following table summarizes the changes in the Company’s accrued restructuring balance, which are included in Accrued Expenses and Other Current Liabilities in the accompanying Condensed Consolidated Balance Sheets. Balance at December 31, 2022 $ — Restructuring charges 590 Payments (497) Balance at April 1, 2023 $ 93 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Those matters include the following: General Litigation The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company. Self-Insurance Under the Company’s workers’ compensation insurance program, coverage is obtained for catastrophic exposures under which the Company retains a portion of certain expected losses. The Company has stop loss workers’ compensation insurance for claims in excess of $200 as of April 1, 2023 and December 31, 2022, respectively. Provision for losses expected under this program is recorded based upon the Company’s estimates of the aggregate liability for claims incurred and totaled approximately $409 and $409 as of April 1, 2023, and December 31, 2022, respectively. The amount of actual losses incurred could differ materially from the estimates reflected in these Unaudited Condensed Consolidated Financial Statements. Under the Company’s health insurance program, coverage is obtained for catastrophic exposures under which the Company retains a portion of certain expected losses. The Company has stop loss insurance for claims in excess of $275 and $275 as of April 1, 2023 and December 31, 2022, respectively. Provision for losses expected under this program is recorded based upon the Company’s estimates of the aggregate liability for claims incurred and totaled approximately $2,146 and $2,099 as of April 1, 2023 and December 31, 2022, respectively. The amount of actual losses incurred could differ materially from the estimates reflected in these Unaudited Condensed Consolidated Financial Statements. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 01, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsFor the three months ended April 1, 2023 and April 2, 2022, there were no related party transactions. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 01, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events For the interim Unaudited Condensed Consolidated Financial Statements as of April 1, 2023, the Company has evaluated subsequent events through the issuance date of the financial statements. On April 10, 2023, Janus Core, entered into Amendment Number Three to the ABL Credit and Guarantee Agreement to that certain ABL Credit and Guarantee Agreement, dated as of February 12, 2018, by and among Janus Core, as parent borrower, Wells Fargo Bank, National Association, as administrative agent and collateral agent, and the other parties thereto. The Amendment, among other things, (i) replaces the interest rate based on the LIBOR and related LIBOR-based mechanics applicable to borrowings under the ABL Credit and Guarantee Agreement with an interest rate based on the Secured Overnight Financing Rate (“SOFR”) and related SOFR-based mechanics and (ii) updates certain other provisions of the ABL Credit and Guarantee Agreement to reflect the transition from LIBOR to SOFR. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with U.S. GAAP and pursuant to the applicable rules and regulations of the SEC. In the opinion of the Company’s management, the Unaudited Condensed Consolidated Financial Statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of April 1, 2023, and its results of operations, including its comprehensive income and stockholders’ equity for the three months ended April 1, 2023 and April 2, 2022 . |
Principles of Consolidation | Principles of ConsolidationThe Unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. The Company’s joint venture is accounted for under the equity method of accounting. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Reclassification | ReclassificationOn the Condensed Consolidated Statements of Operations and Comprehensive Income, the Company bifurcated the prior year “Cost of Sales” account between “Product cost of revenues” and “Service cost of revenues” to conform to the current year presentation. |
Use of Estimates | Use of Estimates The preparation of Unaudited Condensed Consolidated Financial Statements in conformity with U.S GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, but are not limited to, income taxes and the effective tax rates, reserves for inventory obsolescence, the recognition and valuation of unit-based compensation arrangements, the useful lives of property and equipment, estimated progress toward completion for certain revenue contracts, allowances for uncollectible receivable balances, fair values and impairment of intangible assets and goodwill and assumptions used in the recognition of contract assets. |
Emerging Growth Company | Emerging Growth Company Section 102(b)(1) of the Jumpstart Our Business Startups Act, or JOBS Act, exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The Company qualifies as an “Emerging Growth Company” and has elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. This election allows the Company to adopt the new or revised standard at the same time periods as private companies. |
Fair Value Measurement | Fair Value Measurement The Company uses valuation approaches that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. A three-tiered hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires that the Company use observable market data, when available, and minimize the use of unobservable inputs when determining fair value: • Level 1, observable inputs such as quoted prices in active markets; • Level 2, inputs other than the quoted prices in active markets that are observable either directly or indirectly; • Level 3, unobservable inputs in which there is little or no market data, which requires that the Company develop its own assumptions. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at the invoiced amount and do not bear interest. On January 2, 2022, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) (“CECL”), which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. Refer to the Recently Adopted Accounting Pronouncements section of our 2022 Annual Report on Form 10-K for the year ended December 31, 2022, for more information on the impact to the Consolidated Financial Statements. The Company gathered information about its current bad debt reserve and write-off practices and loss methodology, in-scope assets, historical credit losses, proposed pooling approach and expected changes to business practices under CECL. Accounts receivables are stated at estimated net realizable value from the sale of products and services to established customers. The Company determined that pooling accounts receivable by business units was the most appropriate because of the similarity of risk characteristics within each line such as customers and services offered. Historical losses and customer-specific reserve information that are used to calculate the historical loss rates are available for each business unit. During the pooling process, the Company identified two distinct customer types: commercial and self-storage. As these customer types have different risk characteristics, the Company pools the financial assets at this level within each business unit. Commercial customers typically are customers contracting with the Company on short-term projects with smaller credit limits and overall, smaller project sizes. Due to the short-term nature and smaller scale of these types of projects, the Company expects minimal write-offs of its receivables at the commercial pool. Self-storage projects typically involve general contractors and make up the largest portion of the Company’s accounts receivable balance. These projects are usually longer-term construction projects and billed over the course of construction. Credit limits are larger for these projects given the overall project size and duration. Due to the longer-term nature and larger scale of these types of projects, the Company expects a potential for more write-offs of its receivable balances within the self-storage pool. The Company reviewed methods provided by the guidance and determined to use the loss-rate method in the CECL analysis for trade receivables and contract assets. This loss-rate method was selected as there is reliable historical information available by business unit, and this historical information was determined to be representative of the Company’s current customers, products, services, and billing practices. |
Product Warranties | Product Warranties The Company records a liability for product warranties at the time of the related sale of goods. The liability is estimated using historical warranty experience, projected claim rates and expected costs per claim. The Company adjusts its liability for specific warranty matters when they become known and the exposure can be estimated. Product failure rates as well as material usage and labor costs incurred in correcting a product failure affect the Company's warranty liabilities. If actual costs differ from estimated costs, the Company must make a revision to the warranty liability. Generally, the Company offers warranties ranging between 1-3 years for our products with the exception of roofing at one of our business units which is up to 10 years. |
Concentrations of Risk | Concentrations of Risk Financial instruments that are potentially subject to concentration of credit risk consist primarily of cash and accounts receivable. The Company maintains cash in bank deposit accounts that, at times, may exceed the insured limits of the local country. The Company has not experienced any losses in such accounts. The Company sells its products and services mainly in the United States and European regions. The Company performs ongoing evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. The Company generally does not require its customers to provide collateral or other security to support accounts receivable. As of April 1, 2023 and December 31, 2022, no customer accounted for more than 10% of the accounts receivable balance. |
Segments | Segments The Company manages its operations through two operating and reportable segments: Janus North America and Janus International. These segments align the Company’s products and service offerings based on the geographic location between North America and International locations which is consistent with how the Company’s Chief Executive Officer, its Chief Operating Decision Maker (“CODM”), reviews and evaluates the Company’s operations. The CODM allocates resources and evaluates the financial performance of each operating segment. The Company’s segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services. Refer to Note 14, Segments, for further detail. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements On January 1, 2023, the Company adopted ASU 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"), which amends ASC 805, Business Combinations (Topic 805), to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers (Topic 606) ("ASC 606"). Janus will be applying the pronouncement prospectively to business combinations occurring on or after the adoption date. Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is effective and may be applied beginning March 12, 2020 and will apply through December 31, 2022. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) (“ASU 2021-01”). The amendments in ASU 2021-01 provide optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the LIBOR or another reference rate expected to be discontinued because of the reference rate reform. The provisions must be applied at a Topic, Subtopic, or Industry Subtopic level for all transactions other than derivatives, which may be applied at a hedging relationship level. In April 2022, the FASB, proposed the deferral of the sunset date of this guidance to December 31, 2024. The Company does not expect that adopting the Reference Rate Reform accounting pronouncement will have a significant impact on the consolidated results of operations, financial position, or cash flows of the Company. Although there are several other new accounting pronouncements issued or proposed by the FASB, which have been adopted or will be adopted as applicable, management does not believe any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial position or results of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Receivable, Allowance for Credit Loss | The activity for the allowance for credit losses during the periods ended April 1, 2023 and fiscal year ended December 31, 2022, is as follows: April 1, 2023 December 31, 2022 Balance at beginning of period $ 4,549 $ 5,449 CECL Adoption — 366 Write-offs — (2,949) Provision (reversal). net 103 1,683 Balance at end of period $ 4,652 $ 4,549 (1) On January 2, 2022, the Company adopted the provisions of ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326), which introduced a new model known as CECL. |
Schedule of Product Warranty Liability | The activity related to product warranty liabilities recorded in Accrued expenses and other current liabilities, during the periods ended April 1, 2023 and fiscal year ended December 31, 2022, is as follows: April 1, 2023 December 31, 2022 Balance at beginning of period $ 876 $ 736 Aggregate changes in the product warranty liability 325 140 Balance at end of period $ 1,201 $ 876 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Major Components of Inventories | The major components of inventories as of April 1, 2023 and December 31, 2022 are as follows: April 1, December 31, 2023 2022 Raw materials $ 48,772 $ 49,788 Work-in-process 534 1,566 Finished goods 15,463 16,323 Inventory, net $ 64,769 $ 67,677 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment, and Other Fixed Assets | Property, equipment, and other fixed assets as of April 1, 2023 and December 31, 2022 are as follows: April 1, December 31, Useful Life 2023 2022 Land Indefinite $ 4,501 $ 4,501 Building 39 years 2,459 2,459 Manufacturing machinery and equipment 3-7 years 40,498 38,814 Leasehold improvements Over the shorter of the lease term or respective useful life 8,446 8,327 Computer and software 3 years 9,762 9,580 Furniture and fixtures, and vehicles 3-7 years 3,800 3,623 Construction in progress — 5,727 1,852 $ 75,193 $ 69,156 Less: accumulated depreciation (29,188) (27,073) $ 46,005 $ 42,083 |
Acquired Intangible Assets an_2
Acquired Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The carrying basis and accumulated amortization of recognized intangible assets at April 1, 2023 and December 31, 2022, are as follows: April 1, December 31, 2023 2022 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Intangible Assets Useful Life Customer relationships 10-15 years $ 408,536 $ 132,753 $ 275,783 $ 408,246 $ 125,613 $ 282,633 Tradenames and trademarks Indefinite 107,491 — 107,491 107,378 — 107,378 Software development 10-15 years 20,320 6,447 13,873 20,320 6,085 14,235 Noncompete agreements 3-8 years 395 266 129 394 255 139 Backlog < 1 year — — — 41,390 41,390 — $ 536,742 $ 139,466 $ 397,276 $ 577,728 $ 173,343 $ 404,385 |
Schedule of Finite-Lived Intangible Assets | The carrying basis and accumulated amortization of recognized intangible assets at April 1, 2023 and December 31, 2022, are as follows: April 1, December 31, 2023 2022 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Intangible Assets Useful Life Customer relationships 10-15 years $ 408,536 $ 132,753 $ 275,783 $ 408,246 $ 125,613 $ 282,633 Tradenames and trademarks Indefinite 107,491 — 107,491 107,378 — 107,378 Software development 10-15 years 20,320 6,447 13,873 20,320 6,085 14,235 Noncompete agreements 3-8 years 395 266 129 394 255 139 Backlog < 1 year — — — 41,390 41,390 — $ 536,742 $ 139,466 $ 397,276 $ 577,728 $ 173,343 $ 404,385 |
Schedule of Goodwill | The changes in the carrying amounts of goodwill for the period ended April 1, 2023 were as follows: Balance as of December 31, 2022 $ 368,204 Foreign Currency Translation Adjustment 159 Balance as of April 1, 2023 $ 368,363 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities are summarized as follows: April 1, December 31, 2023 2022 Customer deposits $ 28,505 $ 29,581 Employee compensation 9,709 16,520 Current operating lease liabilities 5,375 5,310 Sales tax payable 5,298 5,144 Income taxes 1,313 773 Accrued professional fees 1,935 3,594 Product warranties 1,201 876 Accrued freight 1,139 1,177 Interest payable 374 235 Indemnity holdback liability — 1,002 Other liabilities 6,517 6,339 Total $ 61,366 $ 70,551 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: April 1, December 31, 2023 2022 Note payable - Amendment No. 4 First Lien $ 662,295 $ 714,312 Financing leases 2,044 1,043 $ 664,339 $ 715,355 Less: unamortized deferred finance fees 5,872 7,158 Less: current maturities 8,649 8,347 Total long-term debt $ 649,818 $ 699,850 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Leases [Abstract] | |
Schedule of Balance Sheet Information | The components of ROU assets and lease liabilities were as follows: (in thousands) Balance Sheet Classification April 1, 2023 December 31, 2022 Assets: Operating lease assets Right-of-use assets, net $ 41,949 $ 43,282 Finance lease assets Right-of-use assets, net 2,012 1,023 Total leased assets $ 43,961 $ 44,305 Liabilities: Current: Operating Other accrued expenses $ 5,375 $ 5,310 Financing Current maturities of long-term debt 581 280 Noncurrent: Operating Other long-term liabilities $ 39,668 $ 40,907 Financing Long-term debt 1,463 763 Total lease liabilities $ 47,087 $ 47,260 |
Schedule of Lease Costs | The components of lease expense were as follows: Three Months Ended Three Months Ended (in thousands) April 1, 2023 April 2, 2022 Operating lease cost $ 2,146 $ 1,986 Short-term lease cost — 60 Finance lease cost: Amortization of right-of-use assets $ 124 $ 17 Interest on lease liabilities 30 3 Total lease cost $ 2,300 $ 2,066 Other information related to leases was as follows: April 1, 2023 December 31, 2022 Weighted Average Remaining Lease Term (in years) Operating Leases 9.55 9.66 Finance Leases 3.26 3.37 Weighted Average Discount Rate Operating Leases 7.1% 7.1% Finance Leases 8.0% 6.6% |
Schedule of Operating Lease Maturity | As of April 1, 2023, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows: (in thousands) 2023 $ 6,254 2024 7,513 2025 6,649 2026 6,074 2027 5,304 Thereafter 31,866 Total future lease payments $ 63,660 Less: imputed interest $ (18,617) Present value of future lease payments $ 45,043 |
Schedule of Finance Lease Maturity | As of April 1, 2023, future minimum repayments of finance leases were as follows: (in thousands) 2023 $ 539 2024 718 2025 718 2026 246 2027 92 Thereafter 13 Total future lease payments $ 2,326 Less: imputed interest $ (282) Present value of future lease payments $ 2,044 |
Equity Compensation (Tables)
Equity Compensation (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Unit Activity | RSUs are subject to a vesting period between one (dollar amounts in thousands, except share and per share data) Three Months Ended April 1, 2023 RSUs Weighted-Average Grant Date Fair Value Unvested, outstanding at December 31, 2022 465,064 $ 10.5 Granted 495,631 10.6 Vested (58,790) 9.5 Forfeited (9,288) 10.0 Unvested, outstanding at April 1, 2023 892,617 $ 10.6 As of April 1, 2023, PSUs activity for the three months ended April 1, 2023 is as follows: (dollar amounts in thousands, except share and per share data) Three Months Ended April 1, 2023 PSUs Weighted-Average Grant Date Fair Value Unvested, outstanding at December 31, 2022 252,923 $ 9.5 Granted 229,091 10.6 Vested — — Forfeited — — Unvested, outstanding at April 1, 2023 (1) 482,014 10.0 |
Schedule of Valuation Assumptions | A summary of the assumptions used in determining the fair value of stock options is as follows: (dollar amounts in thousands, except share and per share data) Three Months Ended April 1, 2023 Expected life of option (years) 6.00 - 6.25 Risk-free interest rate 2.9% - 3.7% Expected volatility of the Company’s stock 45% - 48% Expected dividend yield on the Company’s stock — % |
Schedule of Stock Option Activity | Stock option activity for the three months ended April 1, 2023 is as follows: Three Months Ended April 1, 2023 Stock Options Weighted-Average Grant Date Fair Value Weighted Average Remaining Contractual Life (in years) Intrinsic value Unvested, outstanding at December 31, 2022 700,729 $ 4.5 9.8 $ 0.2 Granted 18,796 5.3 10.0 — Exercised — — — — Vested (113,252) 4.5 9.0 — Forfeited — — — — Unvested, outstanding at April 1, 2023 606,273 $ 4.5 9.1 $ — Vested not exercised at April 1, 2023 113,252 $ 4.5 9.0 $ — |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Share | The following table sets forth the computation of basic and diluted EPS attributable to common stockholders for the three months ended April 1, 2023 and April 2, 2022 (in thousands, except share and per share data): Three Months Ended April 1, 2023 April 2, 2022 Numerator: Net income attributable to common stockholders $ 25,982 $ 19,704 Denominator: Weighted average number of shares: Basic 146,703,894 146,561,717 Adjustment for dilutive securities 48,007 271,172 Diluted 146,751,901 146,832,889 Basic net income per share attributable to common stockholders $ 0.18 $ 0.13 Diluted net income per share attributable to common stockholders $ 0.18 $ 0.13 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Balances | Contract balances as of April 1, 2023 were as follows: April 1, 2023 Contract assets, beginning of the period $ 39,251 Contract assets, end of the period 40,992 Contract liabilities, beginning of the period 21,445 Contract liabilities, end of the period $ 18,311 |
Schedule of Disaggregation of Revenue | The principal categories we use to disaggregate revenues are by timing and sales channel of revenue recognition. The following disaggregation of revenues depict the Company’s reportable segment revenues by timing and sales channel of revenue recognition for the three months ended April 1, 2023 and April 2, 2022: Revenue by Timing of Revenue Recognition Three Months Ended Reportable Segments by Timing of Revenue Recognition April 1, 2023 April 2, 2022 Janus North America Goods transferred at a point in time $ 204,439 $ 200,157 Services transferred over time 33,775 25,099 $ 238,214 $ 225,256 Janus International Goods transferred at a point in time $ 13,106 $ 10,798 Services transferred over time 8,466 7,116 $ 21,572 $ 17,914 Eliminations $ (7,882) $ (13,650) Total Revenue $ 251,904 $ 229,520 Revenue by Sales Channel Three Months Ended Reportable Segments by Sales Channel Revenue Recognition April 1, 2023 April 2, 2022 Janus North America Self Storage-New Construction $ 68,243 $ 75,709 Self Storage-R3 82,253 61,572 Commercial and Others 87,718 87,975 $ 238,214 $ 225,256 Janus International Self Storage-New Construction $ 18,538 $ 11,897 Self Storage-R3 3,034 6,017 $ 21,572 $ 17,914 Eliminations $ (7,882) $ (13,650) Total Revenue $ 251,904 $ 229,520 |
Segments Information (Tables)
Segments Information (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summarized financial information for the Company’s segments is shown in the following tables: Three Months Ended April 1, April 2, 2023 2022 Revenue Janus North America $ 238,214 $ 225,256 Janus International 21,572 17,914 Eliminations (7,882) (13,650) Consolidated Revenue $ 251,904 $ 229,520 Income From Operations Janus North America $ 48,878 $ 34,855 Janus International 2,279 249 Eliminations (145) 11 Total Segment Operating Income $ 51,012 $ 35,115 Depreciation Expense Janus North America $ 1,954 $ 1,673 Janus International 226 184 Consolidated Depreciation Expense $ 2,180 $ 1,857 Amortization of Intangible Assets Janus North America $ 7,105 $ 6,886 Janus International 311 339 Consolidated Amortization Expense $ 7,416 $ 7,225 Capital Expenditures Janus North America $ 5,144 $ 2,553 Janus International 926 327 Consolidated Capital Expenditures $ 6,070 $ 2,880 April 1, December 31 2023 2022 Identifiable Assets Janus North America $ 1,176,877 $ 1,209,905 Janus International 65,031 60,713 Consolidated Assets $ 1,241,908 $ 1,270,618 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Expenses | The Company’s restructuring expenses are comprised of the following: (in thousands) April 1, April 2, 2023 2022 Severance and termination benefits $ 93 $ — Facility related charges — 103 Legal, consulting, and other professional fees 497 — Total Restructuring Charges $ 590 $ 103 |
Schedule of Restructuring Reserve | The following table summarizes the changes in the Company’s accrued restructuring balance, which are included in Accrued Expenses and Other Current Liabilities in the accompanying Condensed Consolidated Balance Sheets. Balance at December 31, 2022 $ — Restructuring charges 590 Payments (497) Balance at April 1, 2023 $ 93 |
Nature of Operations (Details)
Nature of Operations (Details) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 USD ($) segment | Apr. 02, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Number of operating segments | segment | 2 | ||
Number of reportable segments | segment | 2 | ||
Identifiable Assets | $ 1,241,908 | $ 1,270,618 | |
Revenue | 251,904 | $ 229,520 | |
Non-U.S. | |||
Schedule of Equity Method Investments [Line Items] | |||
Identifiable Assets | 65,406 | $ 61,144 | |
Revenue | $ 21,572 | $ 17,914 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended |
Apr. 01, 2023 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Accounts Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 01, 2023 | Dec. 31, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Balance at beginning of period | $ 4,549 | $ 5,449 |
Write-offs | 0 | (2,949) |
Provision (reversal). net | 103 | 1,683 |
Balance at end of period | $ 4,652 | 4,549 |
Cumulative Effect, Period of Adoption, Adjustment | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Balance at beginning of period | $ 366 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 01, 2023 | Dec. 31, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 876 | $ 736 |
Aggregate changes in the product warranty liability | 325 | 140 |
Balance at end of period | $ 1,201 | $ 876 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 48,772 | $ 49,788 |
Work-in-process | 534 | 1,566 |
Finished goods | 15,463 | 16,323 |
Inventory, net | 64,769 | 67,677 |
Inventory valuation reserves | $ 2,342 | $ 2,034 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 75,193 | $ 69,156 |
Less: accumulated depreciation | (29,188) | (27,073) |
Property, plant and equipment, net | 46,005 | 42,083 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,501 | 4,501 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,459 | 2,459 |
Property plant and equipment, useful life | 39 years | |
Manufacturing machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 40,498 | 38,814 |
Manufacturing machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, useful life | 3 years | |
Manufacturing machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, useful life | 7 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 8,446 | 8,327 |
Computer and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9,762 | 9,580 |
Property plant and equipment, useful life | 3 years | |
Furniture and fixtures, and vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,800 | 3,623 |
Furniture and fixtures, and vehicles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, useful life | 3 years | |
Furniture and fixtures, and vehicles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, useful life | 7 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 5,727 | $ 1,852 |
Acquired Intangible Assets an_3
Acquired Intangible Assets and Goodwill - Schedule of Indefinite-Lived and Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ 139,466 | $ 173,343 | |
Total gross carrying amount | 536,742 | 577,728 | |
Total net amount | 397,276 | 404,385 | |
Foreign currency translation | 307 | ||
Amortization of intangibles | 7,416 | $ 7,225 | |
Tradenames and trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount, indefinite-lived | 107,491 | 107,378 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 408,536 | 408,246 | |
Accumulated Amortization | 132,753 | 125,613 | |
Net Amount | $ 275,783 | 282,633 | |
Customer relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Average Remaining Life in Years | 10 years | ||
Customer relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Average Remaining Life in Years | 15 years | ||
Software development | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 20,320 | 20,320 | |
Accumulated Amortization | 6,447 | 6,085 | |
Net Amount | $ 13,873 | 14,235 | |
Software development | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Average Remaining Life in Years | 10 years | ||
Software development | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Average Remaining Life in Years | 15 years | ||
Noncompete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 395 | 394 | |
Accumulated Amortization | 266 | 255 | |
Net Amount | $ 129 | 139 | |
Noncompete agreements | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Average Remaining Life in Years | 3 years | ||
Noncompete agreements | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Average Remaining Life in Years | 8 years | ||
Backlog | |||
Finite-Lived Intangible Assets [Line Items] | |||
Average Remaining Life in Years | 1 year | ||
Gross Carrying Amount | $ 0 | 41,390 | |
Accumulated Amortization | 0 | 41,390 | |
Net Amount | $ 0 | $ 0 |
Acquired Intangible Assets an_4
Acquired Intangible Assets and Goodwill - Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 368,204 |
Foreign Currency Translation Adjustment | 159 |
Ending balance | $ 368,363 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Customer deposits | $ 28,505 | $ 29,581 |
Employee compensation | 9,709 | 16,520 |
Current operating lease liabilities | 5,375 | 5,310 |
Sales tax payable | 5,298 | 5,144 |
Income taxes | 1,313 | 773 |
Accrued professional fees | 1,935 | 3,594 |
Product warranties | 1,201 | 876 |
Accrued freight | 1,139 | 1,177 |
Interest payable | 374 | 235 |
Indemnity holdback liability | 0 | 1,002 |
Other liabilities | 6,517 | 6,339 |
Accrued expenses and other current liabilities | $ 61,366 | $ 70,551 |
Line of Credit (Details)
Line of Credit (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2021 | Apr. 01, 2023 | Apr. 02, 2022 | Dec. 31, 2022 | Feb. 12, 2018 | |
Line of Credit Facility [Line Items] | |||||
Deferred finance fee amortization | $ 1,346,000 | $ 912,000 | |||
Unamortized debt issuance costs | $ 5,872,000 | $ 7,158,000 | |||
Revolving Credit Facility | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 1% | ||||
Revolving Credit Facility | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing capacity | $ 80,000,000 | $ 80,000,000 | $ 50,000,000 | ||
Amendment fees | $ 425,000 | ||||
Interest rate | 8.30% | 7.80% | |||
Deferred finance fees | $ 1,483,000 | ||||
Deferred finance fee amortization | 62,000 | $ 62,000 | |||
Unamortized debt issuance costs | 340,000 | $ 402,000 | |||
Outstanding line of credit | $ 0 | $ 0 | |||
Revolving Credit Facility | Line of Credit | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 1.25% | ||||
Revolving Credit Facility | Line of Credit | Federal Funds Rate | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 0.50% | ||||
Revolving Credit Facility | Line of Credit | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 0.25% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Financing leases | $ 2,044 | $ 1,043 |
Total | 664,339 | 715,355 |
Less: unamortized deferred finance fees | 5,872 | 7,158 |
Less: current maturities | 8,649 | 8,347 |
Total long-term debt | 649,818 | 699,850 |
Notes Payable | Note payable - Amendment No. 4 First Lien | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 662,295 | $ 714,312 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 3 Months Ended | |||
Apr. 01, 2023 | Apr. 02, 2022 | Dec. 31, 2022 | Aug. 18, 2021 | |
Debt Instrument [Line Items] | ||||
Letters of credit outstanding | $ 400,000 | $ 400,000 | ||
Deferred finance fee amortization | 1,346,000 | $ 912,000 | ||
Notes Payable | First Lien Amendment No. 4 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 155,000,000 | |||
Deferred finance fee amortization | $ 1,284,000 | $ 851,000 | ||
Notes Payable | Note payable - Amendment No. 4 First Lien | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 726,413,000 | |||
Periodic repayment, percent | 0.25% | |||
Interest rate | 8.10% | |||
Prepayment of debt | $ 50,000 |
Leases - Schedule of Balance Sh
Leases - Schedule of Balance Sheet Information (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Assets: | ||
Operating lease assets | $ 41,949 | $ 43,282 |
Finance lease assets | 2,012 | 1,023 |
Total leased assets | $ 43,961 | $ 44,305 |
Operating lease, right-of-use asset, statement of financial position [Extensible Enumeration] | Total leased assets | Total leased assets |
Finance lease, right-of-use asset, statement of financial position [Extensible Enumeration] | Total leased assets | Total leased assets |
Liabilities: | ||
Operating, current | $ 5,375 | $ 5,310 |
Financing, current | 581 | 280 |
Operating, noncurrent | 39,668 | 40,907 |
Financing, noncurrent | 1,463 | 763 |
Total lease liabilities | $ 47,087 | $ 47,260 |
Operating lease, liability, current, statement of financial position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Finance lease, liability, current, statement of financial position [Extensible Enumeration] | Less: current maturities | Less: current maturities |
Operating lease, liability, noncurrent, statement of financial position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Finance lease, liability, noncurrent, statement of financial position [Extensible Enumeration] | Long-Term Debt, Excluding Current Maturities | Long-Term Debt, Excluding Current Maturities |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,146 | $ 1,986 |
Short-term lease cost | 0 | 60 |
Amortization of right-of-use assets | 124 | 17 |
Interest on lease liabilities | 30 | 3 |
Total lease cost | $ 2,300 | $ 2,066 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow (Details) | Apr. 01, 2023 | Dec. 31, 2022 |
Weighted Average Remaining Lease Term (in years) | ||
Operating Leases | 9 years 6 months 18 days | 9 years 7 months 28 days |
Finance Leases | 3 years 3 months 3 days | 3 years 4 months 13 days |
Weighted Average Discount Rate | ||
Operating Leases | 7.10% | 7.10% |
Finance Leases | 8% | 6.60% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Maturity (Details) $ in Thousands | Apr. 01, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 6,254 |
2024 | 7,513 |
2025 | 6,649 |
2026 | 6,074 |
2027 | 5,304 |
Thereafter | 31,866 |
Total future lease payments | 63,660 |
Less: imputed interest | (18,617) |
Present value of future lease payments | $ 45,043 |
Leases - Schedule of Finance Le
Leases - Schedule of Finance Lease Maturity (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 539 | |
2024 | 718 | |
2025 | 718 | |
2026 | 246 | |
2027 | 92 | |
Thereafter | 13 | |
Total future lease payments | 2,326 | |
Less: imputed interest | (282) | |
Present value of future lease payments | $ 2,044 | $ 1,043 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Income Tax Examination [Line Items] | ||
Income tax provision | $ 9,017 | $ 6,607 |
Income from operations | $ 34,999 | $ 26,311 |
Effective income tax rate | 25.80% | 25.10% |
Joint Venture | ||
Income Tax Examination [Line Items] | ||
Ownership percentage | 45% |
Equity Compensation - 2021 Omni
Equity Compensation - 2021 Omnibus Incentive Plan (Narrative) (Details) | Oct. 01, 2022 shares |
2021 Omnibus Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant (in shares) | 15,125,000 |
Equity Compensation - Schedule
Equity Compensation - Schedule of Restricted Stock Unit Activity (Details) | 3 Months Ended |
Apr. 01, 2023 $ / shares shares | |
RSUs | |
RSUs | |
Unvested, beginning balance (in shares) | 465,064 |
Granted (in shares) | 495,631 |
Vested (in shares) | (58,790) |
Forfeited (in shares) | (9,288) |
Unvested, ending balance (in shares) | 892,617 |
Weighted-Average Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 10.5 |
Granted (in dollars per share) | $ / shares | 10.6 |
Vested (in dollars per share) | $ / shares | 9.5 |
Forfeited (in dollars per share) | $ / shares | 10 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 10.6 |
RSUs | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
RSUs | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
RSUs | |
Unvested, beginning balance (in shares) | 252,923 |
Granted (in shares) | 229,091 |
Vested (in shares) | 0 |
Forfeited (in shares) | 0 |
Unvested, ending balance (in shares) | 482,014 |
Weighted-Average Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 9.5 |
Granted (in dollars per share) | $ / shares | 10.6 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 10 |
Incremental shares (in shares) | 252,923 |
Performance vesting percentage | 100% |
PSUs | Minimum | |
Weighted-Average Grant Date Fair Value | |
Performance vesting percentage | 0% |
PSUs | Maximum | |
Weighted-Average Grant Date Fair Value | |
Performance vesting percentage | 200% |
Equity Compensation - Narrative
Equity Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 2,544 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 637 | $ 600 |
Unrecognized compensation expense | $ 8,538 | |
Unrecognized compensation period | 3 years 3 days | |
RSUs | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
RSUs | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 994 | |
Unrecognized compensation expense | $ 4,802 | |
Unrecognized compensation period | 2 years 2 months 15 days | |
Performance vesting percentage | 100% | |
Vesting period | 3 years | |
PSUs | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance vesting percentage | 0% | |
PSUs | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance vesting percentage | 200% | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 199 | $ 0 |
Unrecognized compensation period | 3 years 1 month 2 days | |
Expiration period | 10 years | |
Stock Options | Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Vesting percentage | 33% | |
Stock Options | Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Vesting percentage | 25% |
Equity Compensation - Schedul_2
Equity Compensation - Schedule of Valuation Assumptions (Details) - Stock Options | 3 Months Ended |
Apr. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividend yield on the Company’s stock | 0% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life of option (years) | 6 years |
Risk-free interest rate | 2.90% |
Expected volatility of the Company’s stock | 45% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life of option (years) | 6 years 3 months |
Risk-free interest rate | 3.70% |
Expected volatility of the Company’s stock | 48% |
Equity Compensation - Schedul_3
Equity Compensation - Schedule of Stock Option Activity (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Apr. 01, 2023 | Dec. 31, 2022 | |
Stock Options | ||
Unvested, beginning balance outstanding (in shares) | 700,729 | |
Granted (in shares) | 18,796 | |
Exercised (in shares) | 0 | |
Vested (in shares) | (113,252) | |
Forfeited (in shares) | 0 | |
Unvested, ending balance outstanding (in shares) | 606,273 | 700,729 |
Vested not exercised (in shares) | 113,252 | |
Weighted-Average Grant Date Fair Value | ||
Unvested, beginning balance outstanding (in dollars per share) | $ 4.5 | |
Granted (in dollars per share) | 5.3 | |
Exercised (in dollars per share) | 0 | |
Vested (in dollars per share) | 4.5 | |
Forfeited (in dollars per share) | 0 | |
Unvested, ending balance outstanding (in dollars per share) | 4.5 | $ 4.5 |
Vested not exercised (in dollars per share) | $ 4.5 | |
Weighted Average Remaining Contractual Life (in years) | 9 years 1 month 6 days | 9 years 9 months 18 days |
Weighted average remaining contractual life, granted (in years) | 10 years | |
Weighted average remaining contractual life, vested (in years) | 9 years | |
Weighted average remaining contractual life, vested not exercised (in years) | 9 years | |
Intrinsic value | $ 0 | $ 200 |
Vested not exercised, intrinsic value | $ 0 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Earnings Per Share [Abstract] | ||
Net income attributable to common stockholders, basic | $ 25,982 | $ 19,704 |
Net income attributable to common stockholders, diluted | $ 25,982 | $ 19,704 |
Weighted average number of shares: | ||
Basic (in shares) | 146,703,894 | 146,561,717 |
Adjustment for dilutive securities (in shares) | 48,007 | 271,172 |
Diluted (in shares) | 146,751,901 | 146,832,889 |
Basic net income per share attributable to common stockholders (in dollars per share) | $ 0.18 | $ 0.13 |
Diluted net income per share attributable to common stockholders (in dollars per share) | $ 0.18 | $ 0.13 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | $ 11,948 | |
Unsatisfied performance obligations | 8,814 | |
Nokē Smart Entry System | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | $ 439 | $ 268 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Contract Balances (Details) $ in Thousands | Apr. 01, 2023 USD ($) |
Contract Assets And Liabilities [Roll Forward] | |
Contract assets, beginning of the period | $ 39,251 |
Contract assets, end of the period | 40,992 |
Contract liabilities, beginning of the period | 21,445 |
Contract liabilities, end of the period | $ 18,311 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 251,904 | $ 229,520 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (7,882) | (13,650) |
Janus North America | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 238,214 | 225,256 |
Janus North America | Operating Segments | Self Storage-New Construction | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 68,243 | 75,709 |
Janus North America | Operating Segments | Self Storage-R3 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 82,253 | 61,572 |
Janus North America | Operating Segments | Commercial and Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 87,718 | 87,975 |
Janus North America | Operating Segments | Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 204,439 | 200,157 |
Janus North America | Operating Segments | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 33,775 | 25,099 |
Janus International | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 21,572 | 17,914 |
Janus International | Operating Segments | Self Storage-New Construction | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 18,538 | 11,897 |
Janus International | Operating Segments | Self Storage-R3 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,034 | 6,017 |
Janus International | Operating Segments | Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 13,106 | 10,798 |
Janus International | Operating Segments | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 8,466 | $ 7,116 |
Segments Information (Details)
Segments Information (Details) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 USD ($) segment | Apr. 02, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Revenue | $ 251,904 | $ 229,520 | |
Income From Operations | 51,012 | 35,115 | |
Depreciation Expense | 2,180 | 1,857 | |
Amortization of Intangible Assets | 7,416 | 7,225 | |
Capital Expenditures | 6,070 | 2,880 | |
Identifiable Assets | 1,241,908 | $ 1,270,618 | |
Janus North America | |||
Segment Reporting Information [Line Items] | |||
Depreciation Expense | 1,954 | 1,673 | |
Amortization of Intangible Assets | 7,105 | 6,886 | |
Capital Expenditures | 5,144 | 2,553 | |
Identifiable Assets | 1,176,877 | 1,209,905 | |
Janus International | |||
Segment Reporting Information [Line Items] | |||
Depreciation Expense | 226 | 184 | |
Amortization of Intangible Assets | 311 | 339 | |
Capital Expenditures | 926 | 327 | |
Identifiable Assets | 65,031 | $ 60,713 | |
Operating Segments | Janus North America | |||
Segment Reporting Information [Line Items] | |||
Revenue | 238,214 | 225,256 | |
Income From Operations | 48,878 | 34,855 | |
Operating Segments | Janus International | |||
Segment Reporting Information [Line Items] | |||
Revenue | 21,572 | 17,914 | |
Income From Operations | 2,279 | 249 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenue | (7,882) | (13,650) | |
Income From Operations | $ (145) | $ 11 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Total Restructuring Charges | $ 590 | $ 103 |
Severance and termination benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Total Restructuring Charges | 93 | 0 |
Facility related charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Total Restructuring Charges | 0 | 103 |
Legal, consulting, and other professional fees | ||
Restructuring Cost and Reserve [Line Items] | ||
Total Restructuring Charges | $ 497 | $ 0 |
Restructuring - Schedule of R_2
Restructuring - Schedule of Restructuring Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 0 | |
Restructuring charges | 590 | $ 103 |
Payments | (497) | |
Restructuring reserve, ending balance | $ 93 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Insurance Claims - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Workers' Compensation Insurance Program | ||
Loss Contingencies [Line Items] | ||
Claims in excess | $ 200 | $ 200 |
Estimate of possible loss | 409 | 409 |
Health Insurance Program | ||
Loss Contingencies [Line Items] | ||
Claims in excess | 275 | 275 |
Estimate of possible loss | $ 2,146 | $ 2,099 |