Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 25, 2021 | Apr. 22, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 25, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | JBSS | |
Entity Registrant Name | SANFILIPPO JOHN B & SON INC | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Entity Central Index Key | 0000880117 | |
Current Fiscal Year End Date | --06-24 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock | |
Entity Address, State or Province | IL | |
Entity File Number | 0-19681 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-2419677 | |
Entity Address, Address Line One | 1703 North Randall Road | |
Entity Address, City or Town | Elgin | |
Entity Address, Postal Zip Code | 60123-7820 | |
City Area Code | 847 | |
Local Phone Number | 289-1800 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock, Non-Cumulative Voting Rights of One Vote Per Share [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,870,912 | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,597,426 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 25, 2021 | Mar. 26, 2020 | Mar. 25, 2021 | Mar. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 207,892 | $ 211,624 | $ 651,740 | $ 675,893 |
Cost of sales | 161,846 | 168,819 | 513,567 | 540,860 |
Gross profit | 46,046 | 42,805 | 138,173 | 135,033 |
Operating expenses: | ||||
Selling expenses | 15,090 | 13,880 | 44,868 | 44,095 |
Administrative expenses | 9,859 | 9,528 | 25,539 | 28,013 |
Total operating expenses | 24,949 | 23,408 | 70,407 | 72,108 |
Income from operations | 21,097 | 19,397 | 67,766 | 62,925 |
Other expense: | ||||
Interest expense including $162, $172, $494 and $651 to related parties | 309 | 579 | 1,135 | 1,535 |
Rental and miscellaneous expense, net | 379 | 308 | 1,176 | 986 |
Other expense | 630 | 566 | 1,889 | 1,699 |
Total other expense, net | 1,318 | 1,453 | 4,200 | 4,220 |
Income before income taxes | 19,779 | 17,944 | 63,566 | 58,705 |
Income tax expense | 5,078 | 4,478 | 16,168 | 14,852 |
Net income | 14,701 | 13,466 | 47,398 | 43,853 |
Other comprehensive income: | ||||
Amortization of prior service cost and actuarial loss included in net periodic pension cost | 416 | 343 | 1,246 | 1,030 |
Income tax expense related to pension adjustments | (104) | (86) | (311) | (258) |
Other comprehensive income, net of tax | 312 | 257 | 935 | 772 |
Comprehensive income | $ 15,013 | $ 13,723 | $ 48,333 | $ 44,625 |
Net income per common share-basic | $ 1.28 | $ 1.17 | $ 4.12 | $ 3.83 |
Net income per common share-diluted | $ 1.27 | $ 1.17 | $ 4.10 | $ 3.80 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 25, 2021 | Mar. 26, 2020 | Mar. 25, 2021 | Mar. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Interest expense to related parties | $ 162 | $ 172 | $ 494 | $ 651 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 25, 2021 | Jun. 25, 2020 | Mar. 26, 2020 |
CURRENT ASSETS: | |||
Cash | $ 1,043 | $ 1,535 | $ 993 |
Accounts receivable, less allowance for doubtful accounts of $291, $391 and $387 | 64,502 | 56,953 | 68,042 |
Inventories | 151,757 | 172,068 | 188,514 |
Prepaid expenses and other current assets | 6,481 | 8,315 | 5,249 |
TOTAL CURRENT ASSETS | 223,783 | 238,871 | 262,798 |
PROPERTY, PLANT AND EQUIPMENT: | |||
Land | 9,277 | 9,285 | 9,285 |
Buildings | 110,739 | 110,294 | 110,278 |
Machinery and equipment | 225,583 | 218,021 | 215,310 |
Furniture and leasehold improvements | 5,322 | 5,179 | 5,170 |
Vehicles | 604 | 682 | 682 |
Construction in progress | 9,662 | 2,244 | 4,104 |
Property, plant and equipment gross | 361,187 | 345,705 | 344,829 |
Less: Accumulated depreciation | 247,812 | 239,013 | 237,171 |
Property, plant and equipment net | 113,375 | 106,692 | 107,658 |
Rental investment property, less accumulated depreciation of $12,623, $12,018 and $11,816 | 16,500 | 17,105 | 17,306 |
TOTAL PROPERTY, PLANT AND EQUIPMENT | 129,875 | 123,797 | 124,964 |
Intangible assets, net | 10,464 | 12,125 | 12,704 |
Cash surrender value of officers' life insurance and other assets | 9,647 | 11,875 | 9,967 |
Deferred income taxes | 5,051 | 6,788 | 5,973 |
Goodwill | 9,650 | 9,650 | 9,650 |
Operating lease right-of-use assets | 3,758 | 4,351 | 4,638 |
TOTAL ASSETS | 392,228 | 407,457 | 430,694 |
CURRENT LIABILITIES: | |||
Revolving credit facility borrowings | 26,005 | 27,008 | 38,175 |
Current maturities of long-term debt, including related party debt of $616, $585 and $574 and net of unamortized debt issuance costs of $17, $25 and $27 | 3,828 | 5,285 | 6,197 |
Accounts payable | 43,684 | 36,323 | 54,856 |
Bank overdraft | 1,509 | 2,041 | 2,091 |
Accrued payroll and related benefits | 19,224 | 25,641 | 21,116 |
Other accrued expenses | 12,422 | 15,870 | 12,774 |
TOTAL CURRENT LIABILITIES | 106,672 | 112,168 | 135,209 |
LONG-TERM LIABILITIES: | |||
Long-term debt, less current maturities, including related party debt of $8,481, $8,947 and $9,097 and net of unamortized debt issuance costs of $7, $19 and $24 | 11,842 | 14,730 | 15,670 |
Retirement plan | 32,433 | 31,573 | 25,449 |
Long-term operating lease liabilities, net of current portion | 2,359 | 2,990 | 3,259 |
Other | 8,019 | 7,758 | 7,839 |
TOTAL LONG-TERM LIABILITIES | 54,653 | 57,051 | 52,217 |
TOTAL LIABILITIES | 161,325 | 169,219 | 187,426 |
COMMITMENTS AND CONTINGENCIES | |||
STOCKHOLDERS' EQUITY: | |||
Capital in excess of par value | 125,693 | 123,899 | 123,613 |
Retained earnings | 113,993 | 124,058 | 125,273 |
Accumulated other comprehensive loss | (7,695) | (8,630) | (4,529) |
Treasury stock, at cost; 117,900 shares of Common Stock | (1,204) | (1,204) | (1,204) |
TOTAL STOCKHOLDERS' EQUITY | 230,903 | 238,238 | 243,268 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | 392,228 | 407,457 | 430,694 |
Class A Common Stock [Member] | |||
STOCKHOLDERS' EQUITY: | |||
Common Stock | 26 | 26 | 26 |
TOTAL STOCKHOLDERS' EQUITY | 26 | 26 | 26 |
Common Stock, Non-Cumulative Voting Rights of One Vote Per Share [Member] | |||
STOCKHOLDERS' EQUITY: | |||
Common Stock | 90 | 89 | 89 |
TOTAL STOCKHOLDERS' EQUITY | $ 90 | $ 89 | $ 89 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 25, 2021 | Jun. 25, 2020 | Mar. 26, 2020 |
Allowance for doubtful accounts for accounts receivable, current | $ 291 | $ 391 | $ 387 |
Accumulated depreciation of rental investment property | 12,623 | 12,018 | 11,816 |
Current maturities of long-term debt, related party debt | 616 | 585 | 574 |
Unamortized debt issuance costs, current | 17 | 25 | 27 |
Related party debt, Non-current | 8,481 | 8,947 | 9,097 |
Unamortized debt issuance costs, noncurrent | $ 7 | $ 19 | $ 24 |
Treasury stock, shares | 117,900 | 117,900 | 117,900 |
Class A Common Stock [Member] | |||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,597,426 | 2,597,426 | 2,597,426 |
Common stock, shares outstanding | 2,597,426 | 2,597,426 | 2,597,426 |
Common Stock, Non-Cumulative Voting Rights of One Vote Per Share [Member] | |||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 17,000,000 | 17,000,000 | 17,000,000 |
Common stock, shares issued | 8,988,812 | 8,939,890 | 8,939,390 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Class A Common Stock [Member] | Common Stock, Non-Cumulative Voting Rights of One Vote Per Share [Member] |
Balance at Jun. 27, 2019 | $ 254,555 | $ 122,257 | $ 137,712 | $ (4,325) | $ (1,204) | $ 26 | $ 89 |
Balance, Shares at Jun. 27, 2019 | 2,597,426 | 8,909,406 | |||||
Net income | 12,926 | 12,926 | |||||
Cash dividends | (34,321) | (34,321) | |||||
Pension liability amortization, net of income tax (expense) | 257 | 257 | |||||
Impact of adopting ASU 2018-02 | 0 | 976 | (976) | ||||
Stock-based compensation expense | 633 | 633 | |||||
Balance at Sep. 26, 2019 | 234,050 | 122,890 | 117,293 | (5,044) | (1,204) | $ 26 | $ 89 |
Balance, Shares at Sep. 26, 2019 | 2,597,426 | 8,909,406 | |||||
Net income | 17,461 | 17,461 | |||||
Cash dividends | (22,947) | (22,947) | |||||
Pension liability amortization, net of income tax (expense) | 258 | 258 | |||||
Equity award exercises , net of shares withheld for employee taxes | (761) | (761) | |||||
Equity award exercises , net of shares withheld for employee taxes, shares | 27,830 | ||||||
Stock-based compensation expense | 855 | 855 | |||||
Balance at Dec. 26, 2019 | 228,916 | 122,984 | 111,807 | (4,786) | (1,204) | $ 26 | $ 89 |
Balance, Shares at Dec. 26, 2019 | 2,597,426 | 8,937,236 | |||||
Net income | 13,466 | 13,466 | |||||
Pension liability amortization, net of income tax (expense) | 257 | 257 | |||||
Equity award exercises , net of shares withheld for employee taxes | (73) | (73) | |||||
Equity award exercises , net of shares withheld for employee taxes, shares | 2,154 | ||||||
Stock-based compensation expense | 702 | 702 | |||||
Balance at Mar. 26, 2020 | 243,268 | 123,613 | 125,273 | (4,529) | (1,204) | $ 26 | $ 89 |
Balance, Shares at Mar. 26, 2020 | 2,597,426 | 8,939,390 | |||||
Balance at Jun. 25, 2020 | 238,238 | 123,899 | 124,058 | (8,630) | (1,204) | $ 26 | $ 89 |
Balance, Shares at Jun. 25, 2020 | 2,597,426 | 8,939,890 | |||||
Net income | 12,812 | 12,812 | |||||
Cash dividends | (28,685) | (28,685) | |||||
Pension liability amortization, net of income tax (expense) | 312 | 312 | |||||
Equity award exercises , net of shares withheld for employee taxes, shares | 221 | ||||||
Stock-based compensation expense | 622 | 622 | |||||
Balance at Sep. 24, 2020 | 223,299 | 124,521 | 108,185 | (8,318) | (1,204) | $ 26 | $ 89 |
Balance, Shares at Sep. 24, 2020 | 2,597,426 | 8,940,111 | |||||
Balance at Jun. 25, 2020 | 238,238 | 123,899 | 124,058 | (8,630) | (1,204) | $ 26 | $ 89 |
Balance, Shares at Jun. 25, 2020 | 2,597,426 | 8,939,890 | |||||
Net income | 47,398 | ||||||
Balance at Mar. 25, 2021 | 230,903 | 125,693 | 113,993 | (7,695) | (1,204) | $ 26 | $ 90 |
Balance, Shares at Mar. 25, 2021 | 2,597,426 | 8,988,812 | |||||
Balance at Sep. 24, 2020 | 223,299 | 124,521 | 108,185 | (8,318) | (1,204) | $ 26 | $ 89 |
Balance, Shares at Sep. 24, 2020 | 2,597,426 | 8,940,111 | |||||
Net income | 19,885 | 19,885 | |||||
Pension liability amortization, net of income tax (expense) | 311 | 311 | |||||
Equity award exercises , net of shares withheld for employee taxes | (486) | (487) | $ 1 | ||||
Equity award exercises , net of shares withheld for employee taxes, shares | 43,477 | ||||||
Stock-based compensation expense | 998 | 998 | |||||
Balance at Dec. 24, 2020 | 244,007 | 125,032 | 128,070 | (8,007) | (1,204) | $ 26 | $ 90 |
Balance, Shares at Dec. 24, 2020 | 2,597,426 | 8,983,588 | |||||
Net income | 14,701 | 14,701 | |||||
Cash dividends | (28,778) | (28,778) | |||||
Pension liability amortization, net of income tax (expense) | 312 | 312 | |||||
Equity award exercises , net of shares withheld for employee taxes | (49) | (49) | |||||
Equity award exercises , net of shares withheld for employee taxes, shares | 5,224 | ||||||
Stock-based compensation expense | 710 | 710 | |||||
Balance at Mar. 25, 2021 | $ 230,903 | $ 125,693 | $ 113,993 | $ (7,695) | $ (1,204) | $ 26 | $ 90 |
Balance, Shares at Mar. 25, 2021 | 2,597,426 | 8,988,812 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 25, 2021 | Sep. 24, 2020 | Dec. 26, 2019 | Sep. 26, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per common share | $ 2.50 | $ 2.50 | $ 2 | $ 3 |
Pension liability amortization income tax expense | $ 104 | $ 104 | $ 86 | $ 86 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 25, 2021 | Mar. 26, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 47,398 | $ 43,853 |
Depreciation and amortization | 13,665 | 13,521 |
Gain on disposition of assets, net | (2,733) | (899) |
Deferred income tax expense (benefit) | 1,737 | (250) |
Stock-based compensation expense | 2,330 | 2,190 |
Change in assets and liabilities: | ||
Accounts receivable, net | (7,553) | (6,196) |
Inventories | 20,311 | (31,490) |
Prepaid expenses and other current assets | 1,834 | 398 |
Accounts payable | 7,498 | 12,080 |
Accrued expenses | (6,138) | (1,576) |
Income taxes payable | (3,727) | 1,039 |
Other long-term assets and liabilities | 605 | 806 |
Other, net | 1,799 | 1,486 |
Net cash provided by operating activities | 77,026 | 34,962 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (15,769) | (10,560) |
Proceeds from insurance recoveries | 2,506 | 232 |
Other | (357) | (205) |
Net cash used in investing activities | (13,620) | (10,533) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net short-term (repayments) borrowings | (1,003) | 38,175 |
Debt issue costs | (410) | |
Principal payments on long-term debt | (4,365) | (5,880) |
(Decrease) increase in bank overdraft | (532) | 1,190 |
Dividends paid | (57,463) | (57,268) |
Taxes paid related to net share settlement of equity awards | (535) | (834) |
Net cash used in financing activities | (63,898) | (25,027) |
NET DECREASE IN CASH | (492) | (598) |
Cash, beginning of period | 1,535 | 1,591 |
Cash, end of period | $ 1,043 | 993 |
Supplemental disclosure of non-cash activities: | ||
Right-of-use assets recognized at ASU No. 2016-02 transition | $ 5,361 |
Basis of Presentation and Descr
Basis of Presentation and Description of Business | 9 Months Ended |
Mar. 25, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Description of Business | Note 1 – Basis of Presentation and Description of Business As used herein, unless the context otherwise indicates, the terms “we”, “us”, “our” or “Company” collectively refer to John B. Sanfilippo & Son, Inc. and our wholly-owned subsidiary, JBSS Ventures, LLC. Our fiscal year ends on the final Thursday of June each year, and typically consists of fifty-two • References herein to fiscal 2021 and fiscal 2020 are to the fiscal year ending June 24, 2021 and the fiscal year ended June 25, 2020, respectively. • References herein to the third quarter of fiscal 2021 and fiscal 2020 are to the quarters ended March 25, 2021 and March 26, 2020, respectively. • References herein to the first three quarters or first thirty-nine weeks of fiscal 2021 and fiscal 2020 are to the thirty-nine weeks ended March 25, 2021 and March 26, 2020, respectively. We are one of the leading processors and distributors of peanuts, pecans, cashews, walnuts, almonds, and other nuts in the United States. These nuts are sold under our Fisher Orchard Valley Harvest Squirrel Brand Southern Style Nuts Sunshine Country The accompanying unaudited financial statements fairly present the consolidated statements of comprehensive income, consolidated balance sheets, consolidated statements of stockholders’ equity and consolidated statements of cash flows, and reflect all adjustments, consisting only of normal recurring adjustments which are necessary for the fair statement of the results of the interim periods. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The interim results of operations are not necessarily indicative of the results to be expected for a full year. The balance sheet data as of June 25, 2020 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). Accordingly, these unaudited financial statements and related notes should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2020 Annual Report on Form 10-K |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Mar. 25, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition We recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. For each customer contract, a five-step process is followed in which we identify the contract, identify performance obligations, determine the transaction price, allocate the contract transaction price to the performance obligations, and recognize the revenue when (or as) the performance obligation is transferred to the customer. When Performance Obligations Are Satisfied A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s performance obligations are primarily for the delivery of raw and processed recipe and snack nuts, nut butters and trail mixes. Our customer contracts do not include more than one performance obligation. If a contract were to contain more than one performance obligation, we are required to allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price. The standalone selling price for each distinct good is generally determined by directly observable data. Revenue recognition is generally completed at a point in time when product control is transferred to the customer. For virtually all of our revenues, control transfers to the customer when the product is shipped or delivered to the customer based upon applicable shipping terms, as the customer can then direct the use and obtain substantially all of the remaining benefits from the asset at that point in time. Therefore, the timing of our revenue recognition requires little judgment. Variable Consideration Some of our products are sold through specific incentive programs consisting of promotional allowances, volume and customer rebates, in-store Trade promotions, consisting primarily of customer pricing allowances, merchandising funds and consumer coupons, are also offered through various programs to customers and consumers. A provision for estimated trade promotions is recorded as a reduction of revenue (and a reduction in the transaction price) in the same period when the sale is recognized. Revenues are also recorded net of expected customer deductions which are provided for based upon past experiences. Evaluating these estimates requires management judgment. We generally use the most likely amount method to determine the variable consideration. We believe there will not be significant changes to our estimates of variable consideration when any related uncertainties are resolved with our customers. The Company reviews and updates its estimates and related accruals of variable consideration and trade promotions at least quarterly based on the terms of the agreements and historical experience. Any uncertainties in the ultimate resolution of variable consideration due to factors outside of the Company’s influence are typically resolved within a short timeframe, therefore, no additional constraint on the variable consideration is required. Contract Balances Contract assets or liabilities result from transactions with revenue recorded over time. If the measure of remaining rights exceeds the measure of the remaining performance obligations the Company records a contract asset. Conversely, if the measure of the remaining performance obligations exceeds the measure of the remaining rights, the Company records a contract liability. There was no contract asset balance for any periods presented. The Company generally does not have material deferred revenue or contract liability balances arising from transactions with customers. Disaggregation of Revenue Revenue disaggregated by sales channel is as follows: For the Quarter Ended For the Thirty-Nine Distribution Channel March 25, 2021 March 26, 2020 March 25, 2021 March 26, 2020 Consumer $ 169,415 $ 158,616 $ 528,201 $ 503,848 Commercial Ingredients 21,052 30,312 64,399 101,447 Contract Packaging 17,425 22,696 59,140 70,598 Total $ 207,892 $ 211,624 $ 651,740 $ 675,893 |
Leases
Leases | 9 Months Ended |
Mar. 25, 2021 | |
Leases [Abstract] | |
Leases | Note 3 – Leases Description of Leases We lease equipment used in the transportation of goods in our warehouses, as well as a limited number of automobiles and a small warehouse near our Bainbridge, Georgia facility. Our leases generally do not contain non-lease We determine if an arrangement is a lease at inception and analyze the lease to determine if it is operating or finance. Operating lease right-of-use right-of-use It is our accounting policy to not apply lease recognition requirements to short term leases, defined as leases with an initial term of 12 months or less. As such, leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheet. We have also made the policy election to not separate lease and non-lease The following table provides supplemental information related to operating lease right-of-use March 25, 2021 June 25, 2020 March 26, Affected Line Item in Assets Operating lease right-of-use $ 3,758 $ 4,351 $ 4,638 Operating lease right-of-use Total lease right-of-use $ 3,758 $ 4,351 $ 4,638 Liabilities Current: Operating leases $ 1,449 $ 1,376 $ 1,374 Other accrued expenses Noncurrent: Operating leases 2,359 2,990 3,259 Long-term operating lease liabilities Total lease liabilities $ 3,808 $ 4,366 $ 4,633 The following tables summarize the Company’s total lease costs and other information arising from operating lease transactions: For the Quarter Ended For the Thirty-nine March 25, 2021 March 26, 2020 March 25, 2021 March 26, Operating lease costs (a) $ 437 $ 432 $ 1,387 $ 1,266 Variable lease costs (b) 17 16 54 47 Total Lease Cost $ 454 $ 448 $ 1,441 $ 1,313 (a) Includes short-term leases which are immaterial. (b) Variable lease costs consist of sales tax. Supplemental cash flow and other information related to leases was as follows: For the Thirty-nine March 25, March 26, Operating cash flows information: Cash paid for amounts included in measurements for lease liabilities $ 1,171 $ 1,163 Non-cash Right-of-use $ 490 $ 326 March 25, June 25, 2020 March 26, Weighted Average Remaining Lease Term (in years) 3.0 3.4 3.6 Weighted Average Discount Rate 4.3 % 4.4 % 4.4 % Maturities of operating lease liabilities as of March 25, 2021 are as follows: Fiscal year ending June 24, 2021 (excluding the thirty-nine weeks ended March 25, 2021) $ 438 June 30, 2022 1,486 June 29, 2023 1,236 June 27, 2024 593 June 26, 2025 231 June 25, 2026 59 Thereafter — Total lease payment 4,043 Less imputed interest (235 ) Present value of operating lease liabilities $ 3,808 Lessor Accounting We lease office space in our four-story office building located in Elgin, Illinois. As a lessor, we retain substantially all of the risks and benefits of ownership of the investment property and under Topic 842 we continue to account for all of our leases as operating leases. Lease agreements may include options to renew. We accrue fixed lease income on a straight-line non-lease Leasing revenue is as follows: For the Quarter ended For the Thirty-nine March 25, March 26, March 25, March 26, Lease income related to lease payments $ 451 $ 510 $ 1,354 $ 1,515 The future minimum, undiscounted fixed cash flows under non-cancelable Fiscal year ending June 24, 2021 (excluding the thirty-nine weeks ended March 25, 2021) $ 499 June 30, 2022 1,747 June 29, 2023 1,790 June 27, 2024 1,818 June 26, 2025 1,228 June 25, 2026 670 Thereafter 614 $ 8,366 |
Inventories
Inventories | 9 Months Ended |
Mar. 25, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 – Inventories Inventories consist of the following: March 25, 2021 June 25, 2020 March 26, 2020 Raw material and supplies $ 73,068 $ 69,276 $ 87,120 Work-in-process 78,689 102,792 101,394 Total $ 151,757 $ 172,068 $ 188,514 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Mar. 25, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 5 – Goodwill and Intangible Assets Identifiable intangible assets that are subject to amortization consist of the following: March 25, June 25, March 26, Customer relationships $ 21,100 $ 21,100 $ 21,100 Brand names 16,990 16,990 16,990 Non-compete 270 270 270 38,360 38,360 38,360 Less accumulated amortization: Customer relationships (17,326 ) (16,223 ) (15,830 ) Brand names (10,390 ) (9,873 ) (9,700 ) Non-compete (180 ) (139 ) (126 ) (27,896 ) (26,235 ) (25,656 ) Net intangible assets $ 10,464 $ 12,125 $ 12,704 Customer relationships are being amortized on an accelerated basis. The brand names remaining to be amortized consist of the Squirrel Brand Southern Style Nuts Total amortization expense related to intangible assets, which is recorded within Administrative expense, was $504 and $1,661 for the quarter and thirty-nine weeks ended March 25, 2021, respectively. Amortization expense for the remainder of fiscal 2021 is expected to be approximately $504 and expected amortization expense the next five fiscal years is as follows: Fiscal year ending June 30, 2022 $ 1,896 June 29, 2023 1,657 June 27, 2024 1,414 June 26, 2025 1,156 June 25, 2026 861 Our net goodwill of $9,650 relates entirely to the Squirrel Brand acquisition completed in the second quarter of fiscal 2018. There was no change in the carrying amount of goodwill during the thirty-nine weeks ended March 25, 2021. |
Credit Facility
Credit Facility | 9 Months Ended |
Mar. 25, 2021 | |
Debt Disclosure [Abstract] | |
Credit Facility | Note 6 – Credit Facility Our Amended and Restated Credit Agreement dated March 5, 2020 provides for a $117,500 senior secured revolving credit facility (the “Credit Facility”). The Credit Facility is secured by substantially all our assets other than machinery and equipment, real property and fixtures. At March 25, 2021, we had $88,310 of available credit under the Credit Facility which reflects borrowings of $26,005 and reduced availability as a result of $3,185 in outstanding letters of credit. As of March 25, 2021, we were in compliance with all financial covenants under the Credit Facility and Mortgage Facility (as defined below). |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Mar. 25, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Note 7 – Earnings Per Common Share The following table presents the reconciliation of the weighted average shares outstanding used in computing basic and diluted earnings per share: For the Quarter Ended For the Thirty-Nine Weeks March 25, 2021 March 26, 2020 March 25, 2021 March 26, 2020 Weighted average number of shares outstanding – basic 11,515,465 11,475,874 11,495,504 11,459,653 Effect of dilutive securities: Stock options and restricted stock units 58,552 63,767 57,206 75,015 Weighted average number of shares outstanding – diluted 11,574,017 11,539,641 11,552,710 11,534,668 The following table presents a summary of anti-dilutive awards excluded from the computation of diluted earnings per share: For the Quarter Ended For the Thirty-Nine Weeks Ended March 25, 2021 March 26, 2020 March 25, 2021 March 26, 2020 Weighted average number of anti-dilutive awards: — 28,040 — 9,347 Weighted average exercise price per award: $ — $ 90.26 $ — $ 90.26 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 9 Months Ended |
Mar. 25, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Note 8 – Stock-Based Compensation Plans The following is a summary of restricted stock unit (“RSU”) activity for the first thirty-nine weeks of fiscal 2021: Restricted Stock Units Shares Weighted Outstanding at June 25, 166,879 $ 51.62 Activity: Granted 54,966 68.97 Vested (a) (55,826 ) 48.46 Forfeited (2,356 ) 70.58 Outstanding at March 25, 2021 163,663 $ 58.25 (a) The number of RSUs vested includes shares that were withheld on behalf of employees to satisfy the statutory income tax withholding requirements. At March 25, 2021, there are 47,127 RSUs outstanding that are vested but deferred. The following table summarizes compensation expense charged to earnings for all equity compensation plans for the periods presented: For the Quarter Ended For the Thirty-Nine Ended March 25, 2021 March 26, 2020 March 25, 2021 March 26, 2020 Stock-based compensation expense $ 710 $ 702 $ 2,330 $ 2,190 As of March 25, 2021, there was $4,602 of total unrecognized compensation expense related to non-vested |
Retirement Plan
Retirement Plan | 9 Months Ended |
Mar. 25, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plan | Note 9 – Retirement Plan The Supplemental Employee Retirement Plan is an unfunded, non-qualified For the Quarter Ended For the Thirty-Nine March 25, 2021 March 26, 2020 March 25, 2021 March 26, 2020 Service cost $ 236 $ 178 $ 708 $ 534 Interest cost 214 223 643 669 Amortization of prior service cost 120 239 359 718 Amortization of loss 296 104 887 312 Net periodic benefit cost $ 866 $ 744 $ 2,597 $ 2,233 The components of net periodic benefit cost other than the service cost component are included in the line item “Other expense” in the Consolidated Statements of Comprehensive Income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Mar. 25, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 10 – Accumulated Other Comprehensive Loss The table below sets forth the changes to accumulated other comprehensive loss (“AOCL”) for the thirty-nine weeks ended March 25, 2021 and March 26, 2020. For the Thirty-Nine Changes to AOCL (a) March 25, 2021 March 26, 2020 Balance at beginning of period $ (8,630 ) $ (4,325 ) Other comprehensive income before reclassifications — — Amounts reclassified from accumulated other comprehensive loss 1,246 1,030 Tax effect (311 ) (258 ) Net current-period other comprehensive income 935 772 Impact of adopting ASU 2018-02 — (976 ) Balance at end of period $ (7,695 ) $ (4,529 ) (a) Amounts in parenthesis indicate debits/expense. The reclassifications out of AOCL for the quarter and thirty-nine weeks ended March 25, 2021 and March 26, 2020 were as follows: Affected line item in the Consolidated Reclassifications from AOCL to earnings (b) For the Quarter Ended For the Thirty-Nine Weeks March 25, 2021 March 26, 2020 March 25, 2021 March 26, 2020 Amortization of defined benefit pension items: Unrecognized prior service cost $ (120 ) $ (239 ) $ (359 ) $ (718 ) Other expense Unrecognized net loss (296 ) (104 ) (887 ) (312 ) Other expense Total before tax (416 ) (343 ) (1,246 ) (1,030 ) Tax effect 104 86 311 258 Income tax expense Amortization of defined pension items, net of tax $ (312 ) $ (257 ) $ (935 ) $ (772 ) (b) Amounts in parenthesis indicate debits to expense. See Note 9 – “Retirement Plan” above for additional details. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Mar. 25, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 11 – Commitments and Contingent Liabilities We are currently a party to various legal proceedings in the ordinary course of business. While management presently believes that the ultimate outcomes of these proceedings, individually and in the aggregate, will not materially affect our Company’s financial position, results of operations or cash flows, legal proceedings are subject to inherent uncertainties, and unfavorable outcomes could occur. Unfavorable outcomes could include substantial monetary damages in excess of any appropriate accruals, which management has established. Where such unfavorable final outcomes to occur, there exists the possibility of a material adverse effect on our financial position, results of operations and cash flows. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Mar. 25, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 12 – Fair Value of Financial Instruments The Financial Accounting Standards Board (“FASB”) defines fair value as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels: Level 1 – Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities. Level 2 – Observable inputs other than quoted prices in active markets. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3 – Unobservable inputs for which there is little or no market data available. The carrying values of cash, trade accounts receivable and accounts payable approximate their fair values at each balance sheet date because of the short-term maturities and nature of these balances. The carrying value of our revolving credit facility borrowings approximates fair value at each balance sheet date because interest rates on this instrument approximate current market rates (Level 2 criteria), and because of the short-term maturity and nature of this balance. In addition, there has been no significant change in our inherent credit risk. The following table summarizes the carrying value and fair value estimate of our current and long-term debt, excluding unamortized debt issuance costs: March 25, June 25, 2020 March 26, 2020 Carrying value of long-term debt: $ 15,694 $ 20,059 $ 21,918 Fair value of long-term debt: 16,250 20,186 22,946 The estimated fair value of our long-term debt was determined using a market approach based upon Level 2 observable inputs, which estimates fair value based on interest rates currently offered on loans with similar terms to borrowers of similar credit quality or broker quotes. In addition, there have been no significant changes in the underlying assets securing our long-term debt. |
Related Party Transaction
Related Party Transaction | 9 Months Ended |
Mar. 25, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Note 13 – Related Party Transaction In connection with the acquisition of the Squirrel Brand business in the second quarter of fiscal 2018, we incurred $11,500 of unsecured debt pursuant to a promissory note (the “Promissory Note”) to the principal owner and seller of the Squirrel Brand business, who was subsequently appointed as an executive officer of the Company and was considered a related party. Late in the second quarter of fiscal 2020, the employment of this executive officer with the Company ceased. He is no longer considered a related party, and therefore the outstanding bala n 25 26 26 |
Garysburg, North Carolina Facil
Garysburg, North Carolina Facility | 9 Months Ended |
Mar. 25, 2021 | |
Damage From Fire In Business Unit [Abstract] | |
Garysburg, North Carolina Facility | Note 14 – Garysburg, North Carolina Facility On October 7, 2019 we experienced a fire at our peanut processing facility located in Garysburg, North Carolina. The fire occurred in our roasting room where all of the roasting equipment was destroyed. The fire also damaged some equipment in our packaging room and a portion of the roof. During fiscal 2020, the building and roof were repaired and brought back to their original condition. After evaluating our options with regard to our peanut production operations, the Company currently plans to cease all operations permanently at the Garysburg facility. We completed shelling of the 2019 peanut crop during the second quarter of this fiscal year and the facility will continue to be used to store and ship inshell peanuts through the remainder of fiscal 2021. During fiscal 2020 we manufactured and sold approximately 6 million pounds of inshell peanuts from this facility and plan to discontinue that product line at the end of the current fiscal year. We also expect to spend the remainder of the 2021 fiscal year cleaning and preparing the facility for sale or other utilization in our operations. Employee separation and related closure costs were immaterial for all periods presented. Insurance proceeds totaling $2,934 were received from the insurance carrier in fiscal 2020, and the final payment of $2,730 was received during the current third quarter. Insurance proceeds received for damage to capital equipment are recorded as investing activities on the Consolidated Statements of Cash Flows when received. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Mar. 25, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 15 – Recent Accounting Pronouncements The following recent accounting pronouncements have been adopted in the current fiscal year: In August 2018, the FASB issued ASU No. 2018-15 Intangibles – Goodwill and Other – Internal-Use 350-40): internal-use No. 2018-15 In August 2018, the FASB issued ASU No. 2018-14 Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): No. 2018-14 In January 2017, the FASB issued ASU No. 2017-04 “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. No. 2017-04 In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments No. 2016-13 There are no recent accounting pronouncements that have been issued and not yet adopted that are expected to have a material impact on our Consolidated Financial Statements. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 9 Months Ended |
Mar. 25, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition We recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. For each customer contract, a five-step process is followed in which we identify the contract, identify performance obligations, determine the transaction price, allocate the contract transaction price to the performance obligations, and recognize the revenue when (or as) the performance obligation is transferred to the customer. When Performance Obligations Are Satisfied A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s performance obligations are primarily for the delivery of raw and processed recipe and snack nuts, nut butters and trail mixes. Our customer contracts do not include more than one performance obligation. If a contract were to contain more than one performance obligation, we are required to allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price. The standalone selling price for each distinct good is generally determined by directly observable data. Revenue recognition is generally completed at a point in time when product control is transferred to the customer. For virtually all of our revenues, control transfers to the customer when the product is shipped or delivered to the customer based upon applicable shipping terms, as the customer can then direct the use and obtain substantially all of the remaining benefits from the asset at that point in time. Therefore, the timing of our revenue recognition requires little judgment. Variable Consideration Some of our products are sold through specific incentive programs consisting of promotional allowances, volume and customer rebates, in-store Trade promotions, consisting primarily of customer pricing allowances, merchandising funds and consumer coupons, are also offered through various programs to customers and consumers. A provision for estimated trade promotions is recorded as a reduction of revenue (and a reduction in the transaction price) in the same period when the sale is recognized. Revenues are also recorded net of expected customer deductions which are provided for based upon past experiences. Evaluating these estimates requires management judgment. We generally use the most likely amount method to determine the variable consideration. We believe there will not be significant changes to our estimates of variable consideration when any related uncertainties are resolved with our customers. The Company reviews and updates its estimates and related accruals of variable consideration and trade promotions at least quarterly based on the terms of the agreements and historical experience. Any uncertainties in the ultimate resolution of variable consideration due to factors outside of the Company’s influence are typically resolved within a short timeframe, therefore, no additional constraint on the variable consideration is required. Contract Balances Contract assets or liabilities result from transactions with revenue recorded over time. If the measure of remaining rights exceeds the measure of the remaining performance obligations the Company records a contract asset. Conversely, if the measure of the remaining performance obligations exceeds the measure of the remaining rights, the Company records a contract liability. There was no contract asset balance for any periods presented. The Company generally does not have material deferred revenue or contract liability balances arising from transactions with customers. Disaggregation of Revenue Revenue disaggregated by sales channel is as follows: For the Quarter Ended For the Thirty-Nine Distribution Channel March 25, 2021 March 26, 2020 March 25, 2021 March 26, 2020 Consumer $ 169,415 $ 158,616 $ 528,201 $ 503,848 Commercial Ingredients 21,052 30,312 64,399 101,447 Contract Packaging 17,425 22,696 59,140 70,598 Total $ 207,892 $ 211,624 $ 651,740 $ 675,893 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Mar. 25, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Disaggregated by Sales Channel | Revenue disaggregated by sales channel is as follows: For the Quarter Ended For the Thirty-Nine Distribution Channel March 25, 2021 March 26, 2020 March 25, 2021 March 26, 2020 Consumer $ 169,415 $ 158,616 $ 528,201 $ 503,848 Commercial Ingredients 21,052 30,312 64,399 101,447 Contract Packaging 17,425 22,696 59,140 70,598 Total $ 207,892 $ 211,624 $ 651,740 $ 675,893 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 25, 2021 | |
Leases [Abstract] | |
Supplemental information related to operating lease right-of-use assets and liabilities | The following table provides supplemental information related to operating lease right-of-use March 25, 2021 June 25, 2020 March 26, Affected Line Item in Assets Operating lease right-of-use $ 3,758 $ 4,351 $ 4,638 Operating lease right-of-use Total lease right-of-use $ 3,758 $ 4,351 $ 4,638 Liabilities Current: Operating leases $ 1,449 $ 1,376 $ 1,374 Other accrued expenses Noncurrent: Operating leases 2,359 2,990 3,259 Long-term operating lease liabilities Total lease liabilities $ 3,808 $ 4,366 $ 4,633 |
Summary of company's total lease costs and other information arising from operating lease transactions | The following tables summarize the Company’s total lease costs and other information arising from operating lease transactions: For the Quarter Ended For the Thirty-nine March 25, 2021 March 26, 2020 March 25, 2021 March 26, Operating lease costs (a) $ 437 $ 432 $ 1,387 $ 1,266 Variable lease costs (b) 17 16 54 47 Total Lease Cost $ 454 $ 448 $ 1,441 $ 1,313 (a) Includes short-term leases which are immaterial. (b) Variable lease costs consist of sales tax. |
Supplemental cash flow and other information related to leases | Supplemental cash flow and other information related to leases was as follows: For the Thirty-nine March 25, March 26, Operating cash flows information: Cash paid for amounts included in measurements for lease liabilities $ 1,171 $ 1,163 Non-cash Right-of-use $ 490 $ 326 |
Summary of other information | March 25, June 25, 2020 March 26, Weighted Average Remaining Lease Term (in years) 3.0 3.4 3.6 Weighted Average Discount Rate 4.3 % 4.4 % 4.4 % |
Summary of maturities of operating lease liabilities | Maturities of operating lease liabilities as of March 25, 2021 are as follows: Fiscal year ending June 24, 2021 (excluding the thirty-nine weeks ended March 25, 2021) $ 438 June 30, 2022 1,486 June 29, 2023 1,236 June 27, 2024 593 June 26, 2025 231 June 25, 2026 59 Thereafter — Total lease payment 4,043 Less imputed interest (235 ) Present value of operating lease liabilities $ 3,808 |
Summary of operating lease revenue | Leasing revenue is as follows: For the Quarter ended For the Thirty-nine March 25, March 26, March 25, March 26, Lease income related to lease payments $ 451 $ 510 $ 1,354 $ 1,515 |
Undiscounted fixed lease consideration under non-cancelable tenant operating leases | The future minimum, undiscounted fixed cash flows under non-cancelable Fiscal year ending June 24, 2021 (excluding the thirty-nine weeks ended March 25, 2021) $ 499 June 30, 2022 1,747 June 29, 2023 1,790 June 27, 2024 1,818 June 26, 2025 1,228 June 25, 2026 670 Thereafter 614 $ 8,366 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 25, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consist of the following: March 25, 2021 June 25, 2020 March 26, 2020 Raw material and supplies $ 73,068 $ 69,276 $ 87,120 Work-in-process 78,689 102,792 101,394 Total $ 151,757 $ 172,068 $ 188,514 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Mar. 25, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Identifiable Intangible Assets | Identifiable intangible assets that are subject to amortization consist of the following: March 25, June 25, March 26, Customer relationships $ 21,100 $ 21,100 $ 21,100 Brand names 16,990 16,990 16,990 Non-compete 270 270 270 38,360 38,360 38,360 Less accumulated amortization: Customer relationships (17,326 ) (16,223 ) (15,830 ) Brand names (10,390 ) (9,873 ) (9,700 ) Non-compete (180 ) (139 ) (126 ) (27,896 ) (26,235 ) (25,656 ) Net intangible assets $ 10,464 $ 12,125 $ 12,704 |
Summary of Expected Amortization Expense | expected amortization expense the next five fiscal years is as follows: Fiscal year ending June 30, 2022 $ 1,896 June 29, 2023 1,657 June 27, 2024 1,414 June 26, 2025 1,156 June 25, 2026 861 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Mar. 25, 2021 | |
Earnings Per Share [Abstract] | |
Weighted Average Shares Outstanding Used in Computing Basic and Diluted Earnings Per Share | The following table presents the reconciliation of the weighted average shares outstanding used in computing basic and diluted earnings per share: For the Quarter Ended For the Thirty-Nine Weeks March 25, 2021 March 26, 2020 March 25, 2021 March 26, 2020 Weighted average number of shares outstanding – basic 11,515,465 11,475,874 11,495,504 11,459,653 Effect of dilutive securities: Stock options and restricted stock units 58,552 63,767 57,206 75,015 Weighted average number of shares outstanding – diluted 11,574,017 11,539,641 11,552,710 11,534,668 |
Summary of Anti-dilutive Awards Excluded from Computation of Diluted Earnings Per Share | The following table presents a summary of anti-dilutive awards excluded from the computation of diluted earnings per share: For the Quarter Ended For the Thirty-Nine Weeks Ended March 25, 2021 March 26, 2020 March 25, 2021 March 26, 2020 Weighted average number of anti-dilutive awards: — 28,040 — 9,347 Weighted average exercise price per award: $ — $ 90.26 $ — $ 90.26 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 9 Months Ended |
Mar. 25, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of RSU Activity | The following is a summary of restricted stock unit (“RSU”) activity for the first thirty-nine weeks of fiscal 2021: Restricted Stock Units Shares Weighted Outstanding at June 25, 166,879 $ 51.62 Activity: Granted 54,966 68.97 Vested (a) (55,826 ) 48.46 Forfeited (2,356 ) 70.58 Outstanding at March 25, 2021 163,663 $ 58.25 (a) The number of RSUs vested includes shares that were withheld on behalf of employees to satisfy the statutory income tax withholding requirements. |
Summary of Compensation Cost and Income Tax Benefit | The following table summarizes compensation expense charged to earnings for all equity compensation plans for the periods presented: For the Quarter Ended For the Thirty-Nine Ended March 25, 2021 March 26, 2020 March 25, 2021 March 26, 2020 Stock-based compensation expense $ 710 $ 702 $ 2,330 $ 2,190 |
Retirement Plan (Tables)
Retirement Plan (Tables) | 9 Months Ended |
Mar. 25, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Cost | The components of net periodic benefit cost are as follows: For the Quarter Ended For the Thirty-Nine March 25, 2021 March 26, 2020 March 25, 2021 March 26, 2020 Service cost $ 236 $ 178 $ 708 $ 534 Interest cost 214 223 643 669 Amortization of prior service cost 120 239 359 718 Amortization of loss 296 104 887 312 Net periodic benefit cost $ 866 $ 744 $ 2,597 $ 2,233 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Mar. 25, 2021 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The table below sets forth the changes to accumulated other comprehensive loss (“AOCL”) for the thirty-nine weeks ended March 25, 2021 and March 26, 2020. For the Thirty-Nine Changes to AOCL (a) March 25, 2021 March 26, 2020 Balance at beginning of period $ (8,630 ) $ (4,325 ) Other comprehensive income before reclassifications — — Amounts reclassified from accumulated other comprehensive loss 1,246 1,030 Tax effect (311 ) (258 ) Net current-period other comprehensive income 935 772 Impact of adopting ASU 2018-02 — (976 ) Balance at end of period $ (7,695 ) $ (4,529 ) (a) Amounts in parenthesis indicate debits/expense. |
Reclassifications Out of AOCL | The reclassifications out of AOCL for the quarter and thirty-nine weeks ended March 25, 2021 and March 26, 2020 were as follows: Affected line item in the Consolidated Reclassifications from AOCL to earnings (b) For the Quarter Ended For the Thirty-Nine Weeks March 25, 2021 March 26, 2020 March 25, 2021 March 26, 2020 Amortization of defined benefit pension items: Unrecognized prior service cost $ (120 ) $ (239 ) $ (359 ) $ (718 ) Other expense Unrecognized net loss (296 ) (104 ) (887 ) (312 ) Other expense Total before tax (416 ) (343 ) (1,246 ) (1,030 ) Tax effect 104 86 311 258 Income tax expense Amortization of defined pension items, net of tax $ (312 ) $ (257 ) $ (935 ) $ (772 ) (b) Amounts in parenthesis indicate debits to expense. See Note 9 – “Retirement Plan” above for additional details. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Mar. 25, 2021 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value Estimate of Current and Long Term Debt | The following table summarizes the carrying value and fair value estimate of our current and long-term debt, excluding unamortized debt issuance costs: March 25, June 25, 2020 March 26, 2020 Carrying value of long-term debt: $ 15,694 $ 20,059 $ 21,918 Fair value of long-term debt: 16,250 20,186 22,946 |
Basis of Presentation and Des_2
Basis of Presentation and Description of Business - Additional Information (Detail) | 9 Months Ended |
Mar. 25, 2021Channel | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of distribution channels | 3 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 25, 2021 | Mar. 26, 2020 |
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 0 | $ 0 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenue Disaggregated by Sales Channel (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 25, 2021 | Mar. 26, 2020 | Mar. 25, 2021 | Mar. 26, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 207,892 | $ 211,624 | $ 651,740 | $ 675,893 |
Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 169,415 | 158,616 | 528,201 | 503,848 |
Commercial Ingredients [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 21,052 | 30,312 | 64,399 | 101,447 |
Contract Packaging [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 17,425 | $ 22,696 | $ 59,140 | $ 70,598 |
Leases - Additional Information
Leases - Additional Information (Detail) | Mar. 25, 2021 |
Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Remaining lease term | 5 years 3 months 18 days |
Leases - Operating Lease Assets
Leases - Operating Lease Assets And Liabilities (Detail) - USD ($) $ in Thousands | Mar. 25, 2021 | Jun. 25, 2020 | Mar. 26, 2020 |
Assets | |||
Operating lease right-of-use assets | $ 3,758 | $ 4,351 | $ 4,638 |
Noncurrent | |||
Operating Lease, Liability, Noncurrent | 2,359 | 2,990 | 3,259 |
Total lease liabilities | 3,808 | 4,366 | 4,633 |
Operating LeaseRight Of UseAssets [Member] | |||
Assets | |||
Operating lease right-of-use assets | 3,758 | 4,351 | 4,638 |
Other Liabilities [Member] | |||
Current | |||
Operating Lease, Liability, Current | 1,449 | 1,376 | 1,374 |
Non Current Operating Lease Liabilities [Member] | |||
Noncurrent | |||
Operating Lease, Liability, Noncurrent | $ 2,359 | $ 2,990 | $ 3,259 |
Leases - LeaseCost (Detail)
Leases - LeaseCost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 25, 2021 | Mar. 26, 2020 | Mar. 25, 2021 | Mar. 26, 2020 | |
Leases [Abstract] | ||||
Operating lease costs | $ 437 | $ 432 | $ 1,387 | $ 1,266 |
Variable lease costs | 17 | 16 | 54 | 47 |
Total Lease Cost | $ 454 | $ 448 | $ 1,441 | $ 1,313 |
Leases - Operating Leases Cash
Leases - Operating Leases Cash Flow Related Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 25, 2021 | Mar. 26, 2020 | |
Operating cash flows information: | ||
Cash paid for amounts included in measurements for lease liabilities | $ 1,171 | $ 1,163 |
Non-cash activity: | ||
Right of use assets obtained in exchange for new operating lease obligations | $ 490 | $ 326 |
Leases - Other Information Rela
Leases - Other Information Related to Operating Lease (Detail) | Mar. 25, 2021 | Jun. 25, 2020 | Mar. 26, 2020 |
Leases [Abstract] | |||
Weighted Average Remaining Lease Term (in years) | 3 years | 3 years 4 months 24 days | 3 years 7 months 6 days |
Weighted Average Discount Rate | 4.30% | 4.40% | 4.40% |
Leases - Lessee Operating Lease
Leases - Lessee Operating Lease Liability Maturity (Detail) - USD ($) $ in Thousands | Mar. 25, 2021 | Jun. 25, 2020 | Mar. 26, 2020 |
Leases [Abstract] | |||
June 24, 2021 (excluding the thirty-nine weeks ended March 25, 2021) | $ 438 | ||
June 30, 2022 | 1,486 | ||
June 29, 2023 | 1,236 | ||
June 27, 2024 | 593 | ||
June 26, 2025 | 231 | ||
June 25, 2026 | 59 | ||
Thereafter | 0 | ||
Total lease payment | 4,043 | ||
Less imputed interest | (235) | ||
Present value of operating lease liabilities | $ 3,808 | $ 4,366 | $ 4,633 |
Leases - Operating Lease Revenu
Leases - Operating Lease Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 25, 2021 | Mar. 26, 2020 | Mar. 25, 2021 | Mar. 26, 2020 | |
Leases [Abstract] | ||||
Lease income related to lease payments | $ 451 | $ 510 | $ 1,354 | $ 1,515 |
Leases - Lessor Operating Lease
Leases - Lessor Operating Lease Payments To Be Received Maturity (Detail) $ in Thousands | Mar. 25, 2021USD ($) |
Leases [Abstract] | |
June 24, 2021 (excluding the thirty-nine weeks ended March 25, 2021) | $ 499 |
June 30, 2022 | 1,747 |
June 29, 2023 | 1,790 |
June 27, 2024 | 1,818 |
June 26, 2025 | 1,228 |
June 25, 2026 | 670 |
Thereafter | 614 |
Total | $ 8,366 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Mar. 25, 2021 | Jun. 25, 2020 | Mar. 26, 2020 |
Inventory Disclosure [Abstract] | |||
Raw material and supplies | $ 73,068 | $ 69,276 | $ 87,120 |
Work-in-process and finished goods | 78,689 | 102,792 | 101,394 |
Total | $ 151,757 | $ 172,068 | $ 188,514 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 25, 2021 | Mar. 25, 2021 | Jun. 25, 2020 | Mar. 26, 2020 | |
Goodwill and Intangible Assets [Line Items] | ||||
Amortization expense for remainder of fiscal 2021 | $ 504 | $ 504 | ||
Goodwill related to acquisition of Squirrel Brand | 9,650 | 9,650 | $ 9,650 | $ 9,650 |
Administrative Expenses [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 504 | 1,661 | ||
Squirrel Brand [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill related to acquisition of Squirrel Brand | $ 9,650 | $ 9,650 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Components of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 25, 2021 | Jun. 25, 2020 | Mar. 26, 2020 |
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets, gross | $ 38,360 | $ 38,360 | $ 38,360 |
Less accumulated amortization: | |||
Total accumulated amortization | (27,896) | (26,235) | (25,656) |
Net intangible assets | 10,464 | 12,125 | 12,704 |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets, gross | 21,100 | 21,100 | 21,100 |
Less accumulated amortization: | |||
Total accumulated amortization | (17,326) | (16,223) | (15,830) |
Brand Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets, gross | 16,990 | 16,990 | 16,990 |
Less accumulated amortization: | |||
Total accumulated amortization | (10,390) | (9,873) | (9,700) |
Non-compete Agreement [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets, gross | 270 | 270 | 270 |
Less accumulated amortization: | |||
Total accumulated amortization | $ (180) | $ (139) | $ (126) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Expected Amortization Expense (Detail) $ in Thousands | Mar. 25, 2021USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
June 30, 2022 | $ 1,896 |
June 29, 2023 | 1,657 |
June 27, 2024 | 1,414 |
June 26, 2025 | 1,156 |
June 25, 2026 | $ 861 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - Senior Secured Revolving Credit Facility [Member] - USD ($) $ in Thousands | Mar. 25, 2021 | Mar. 05, 2020 |
Debt Instrument [Line Items] | ||
Revolving loan commitment and letter of credit sub facility | $ 117,500 | |
Available credit under the Credit Facility | $ 88,310 | |
Outstanding letters of credit | 3,185 | |
Revolving credit facility borrowings | $ 26,005 |
Earnings Per Common Share - Wei
Earnings Per Common Share - Weighted Average Shares Outstanding Used in Computing Basic and Diluted Earnings Per Share (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 25, 2021 | Mar. 26, 2020 | Mar. 25, 2021 | Mar. 26, 2020 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Weighted average number of shares outstanding - basic | 11,515,465 | 11,475,874 | 11,495,504 | 11,459,653 |
Effect of dilutive securities: | ||||
Stock options and restricted stock units | 58,552 | 63,767 | 57,206 | 75,015 |
Weighted average number of shares outstanding - diluted | 11,574,017 | 11,539,641 | 11,552,710 | 11,534,668 |
Earnings Per Common Share - Sum
Earnings Per Common Share - Summary of Anti-dilutive Awards Excluded from Computation of Diluted Earnings Per Share (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 25, 2021 | Mar. 26, 2020 | Mar. 25, 2021 | Mar. 26, 2020 | |
Earnings Per Share [Abstract] | ||||
Weighted average number of anti-dilutive awards: | 0 | 28,040 | 0 | 9,347 |
Weighted average exercise price per award: | $ 0 | $ 90.26 | $ 0 | $ 90.26 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Detail) $ in Thousands | 9 Months Ended |
Mar. 25, 2021USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected weighted average recognize period of unrecognized compensation cost related to non-vested share-based compensation | 1 year 7 months 6 days |
Unrecognized compensation expense related to non-vested share-based compensation | $ | $ 4,602 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units vested | shares | 47,127 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Summary of RSU Activity (Detail) | 9 Months Ended | |
Mar. 25, 2021$ / sharesshares | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Outstanding beginning balance, Shares | shares | 166,879 | |
Granted, Shares | shares | 54,966 | |
Vested, Shares | shares | (55,826) | [1] |
Forfeited, Shares | shares | (2,356) | |
Outstanding ending balance, Shares | shares | 163,663 | |
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ / shares | $ 51.62 | |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 68.97 | |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 48.46 | [1] |
Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 70.58 | |
Weighted-Average Grant-Date Fair Value, Ending Balance | $ / shares | $ 58.25 | |
[1] | The number of RSUs vested includes shares that were withheld on behalf of employees to satisfy the statutory income tax withholding requirements. |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Summary of Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 25, 2021 | Mar. 26, 2020 | Mar. 25, 2021 | Mar. 26, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Compensation cost charged to earnings | $ 710 | $ 702 | $ 2,330 | $ 2,190 |
Retirement Plan - Schedule of N
Retirement Plan - Schedule of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 25, 2021 | Mar. 26, 2020 | Mar. 25, 2021 | Mar. 26, 2020 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 236 | $ 178 | $ 708 | $ 534 |
Interest cost | 214 | 223 | 643 | 669 |
Amortization of prior service cost | 120 | 239 | 359 | 718 |
Amortization of loss | 296 | 104 | 887 | 312 |
Net periodic benefit cost | $ 866 | $ 744 | $ 2,597 | $ 2,233 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Mar. 25, 2021 | Mar. 26, 2020 | Sep. 26, 2019 | Mar. 25, 2021 | Mar. 26, 2020 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Balance at beginning of period | $ (8,630) | ||||||
Net current-period other comprehensive income | $ 312 | $ 257 | 935 | $ 772 | |||
Impact of adopting ASU 2018-02 | $ 0 | ||||||
Balance at end of period | (7,695) | (4,529) | (7,695) | (4,529) | |||
Accumulated Other Comprehensive Loss [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Balance at beginning of period | [1] | (8,630) | (4,325) | ||||
Other comprehensive income before reclassifications | [1] | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive loss | [1] | 1,246 | 1,030 | ||||
Tax effect | [1] | (311) | (258) | ||||
Net current-period other comprehensive income | [1] | 935 | 772 | ||||
Impact of adopting ASU 2018-02 | $ (976) | (976) | [1] | ||||
Balance at end of period | [1] | $ (7,695) | $ (4,529) | $ (7,695) | $ (4,529) | ||
[1] | Amounts in parenthesis indicate debits/expense. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications Out of AOCL (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 25, 2021 | Mar. 26, 2020 | Mar. 25, 2021 | Mar. 26, 2020 | ||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Unrecognized prior service cost | [1] | $ (120) | $ (239) | $ (359) | $ (718) |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Unrecognized net loss | [1] | (296) | (104) | (887) | (312) |
Amortization of Defined Benefit Pension Items [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Total before tax | [1] | (416) | (343) | (1,246) | (1,030) |
Tax effect | [1] | 104 | 86 | 311 | 258 |
Amortization of defined pension items, net of tax | [1] | $ (312) | $ (257) | $ (935) | $ (772) |
[1] | Amounts in parenthesis indicate debits to expense. See Note 9 – “Retirement Plan” above for additional details. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Value and Fair Value Estimate of Current and Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 25, 2021 | Jun. 25, 2020 | Mar. 26, 2020 |
Fair Value Disclosures [Abstract] | |||
Carrying value of long-term debt: | $ 15,694 | $ 20,059 | $ 21,918 |
Fair value of long-term debt: | $ 16,250 | $ 20,186 | $ 22,946 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Detail) - Promissory Note [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 25, 2021 | Mar. 26, 2020 | |
Purchase price financed by seller through unsecured debt | $ 11,500 | |
Executive Officer [Member] | ||
Interest paid to related parties | $ 127 | $ 127 |
Garysburg, North Carolina Fac_2
Garysburg, North Carolina Facility - Additional Information (Detail) $ in Thousands, £ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 25, 2021USD ($) | Mar. 25, 2021GBP (£) | Mar. 25, 2021USD ($) | |
Fire Note [Line Items] | |||
Quantity of inshell peanuts manufactured at this facility | £ | £ 6 | ||
Damage from Fire, Explosion or Other Hazard [Member] | |||
Fire Note [Line Items] | |||
Advance payment of insurance | $ | $ 2,934 | $ 2,730 |