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MANAGEMENT | | | | | 53 | | |
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| | | | F-1 | | |
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Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
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Statement of Operations Data: | | | | | | | | | | | | | | | | | | | |
Net sales
|
| | | $ | 1,425,967 | | | | | $ | 1,368,295 | | | | | $ | 1,214,362 | | |
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
| | | | 859,557 | | | | | | 781,815 | | | | | | 693,881 | | |
Selling, general and administrative expenses
|
| | | | 437,875 | | | | | | 398,472 | | | | | | 382,131 | | |
Depreciation
|
| | | | 59,400 | | | | | | 67,423 | | | | | | 65,658 | | |
Amortization
|
| | | | 61,329 | | | | | | 59,492 | | | | | | 58,910 | | |
Management fees to related party
|
| | | | 270 | | | | | | 577 | | | | | | 562 | | |
Other (income) expense
|
| | | | (2,778) | | | | | | (5,250) | | | | | | 5,525 | | |
Income from operations
|
| | | | 10,314 | | | | | | 65,766 | | | | | | 7,695 | | |
Gain on change in fair value of warrant liability
|
| | | | (14,734) | | | | | | — | | | | | | — | | |
Interest expense, net
|
| | | | 61,237 | | | | | | 86,774 | | | | | | 101,613 | | |
Interest expense on junior subordinated debentures
|
| | | | 7,775 | | | | | | 12,707 | | | | | | 12,608 | | |
Investment income on trust common securities
|
| | | | (233) | | | | | | (378) | | | | | | (378) | | |
Loss (income) on mark-to-market adjustment of interest rate swap
|
| | | | (1,685) | | | | | | 601 | | | | | | 2,608 | | |
Refinancing costs
|
| | | | 8,070 | | | | | | — | | | | | | — | | |
Loss before income taxes
|
| | | | (50,116) | | | | | | (33,938) | | | | | | (108,756) | | |
Income tax benefit
|
| | | | (11,784) | | | | | | (9,439) | | | | | | (23,277) | | |
Net loss
|
| | | $ | (38,332) | | | | | $ | (24,499) | | | | | $ | (85,479) | | |
Basic and diluted loss per share
|
| | | $ | (0.28) | | | | | $ | (0.27) | | | | | $ | (0.96) | | |
Weighted average basic and diluted shares outstanding
|
| | | | 134,699 | | | | | | 89,891 | | | | | | 89,444 | | |
Net loss from above
|
| | | $ | (38,332) | | | | | $ | (24,499) | | | | | $ | (85,479) | | |
Other comprehensive income:
|
| | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | (283) | | | | | | 2,652 | | | | | | 5,550 | | |
Hedging activity
|
| | | | 2,517 | | | | | | — | | | | | | — | | |
Total other comprehensive income
|
| | | | 2,234 | | | | | | 2,652 | | | | | | 5,550 | | |
Comprehensive loss
|
| | | $ | (36,098) | | | | | $ | (21,847) | | | | | $ | (79,929) | | |
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Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
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Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | | 2,562,922 | | | | | | 2,468,618 | | | | | | 2,437,983 | | |
Total current liabilities
|
| | | | 277,296 | | | | | | 311,911 | | | | | | 208,868 | | |
Total liabilities
|
| | | | 1,412,827 | | | | | | 2,104,031 | | | | | | 2,064,014 | | |
Working capital
|
| | | | 391,013 | | | | | | 241,796 | | | | | | 231,803 | | |
Total stockholder’s equity
|
| | | | 1,150,095 | | | | | | 364,587 | | | | | | 373,969 | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
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Statement of Cash Flows Data: | | | | | | | | | | | | | | | | | | | |
Net cash (used for) provided by operating activities
|
| | | | (110,254) | | | | | | 92,080 | | | | | | 52,359 | | |
Net cash (used for) provided by investing activities
|
| | | | (90,454) | | | | | | (46,074) | | | | | | (53,488) | | |
Net cash (used for) provided by financing activities
|
| | | | 193,329 | | | | | | (45,104) | | | | | | (7,053) | | |
Business Segment
|
| |
Approximate
Square Footage |
| |
Description
|
| |||
Hardware and Protective Solutions & Robotics and Digital Solutions
|
| | | | | | | | | |
Cincinnati, Ohio
|
| | | | 270,000 | | | | Office, Distribution | |
Dallas, Texas
|
| | | | 166,000 | | | | Distribution | |
Forest Park, Ohio
|
| | | | 385,000 | | | | Office, Distribution | |
Jacksonville, Florida
|
| | | | 193,000 | | | | Distribution | |
Rialto, California
|
| | | | 402,000 | | | | Distribution | |
Shafter, California
|
| | | | 168,000 | | | | Distribution | |
Tempe, Arizona
|
| | | | 184,000 | | | |
Office, Mfg., Distribution
|
|
Hardware and Protective Solutions | | | | | | | | | | |
Atlanta, Georgia
|
| | | | 14,000 | | | | Office | |
Fairfield, Ohio
|
| | | | 95,000 | | | | Distribution | |
Guadalajara, Mexico
|
| | | | 12,000 | | | | Office, Distribution | |
Guleph, Ontario
|
| | | | 25,000 | | | | Distribution | |
Jonestown, PA
|
| | | | 187,000 | | | | Distribution | |
Pompano Beach, Florida
|
| | | | 39,000 | | | | Office, Distribution | |
Monterrey, Mexico
|
| | | | 13,000 | | | | Distribution | |
Rome, Georgia
|
| | | | 14,000 | | | | Office | |
Shannon, Georgia
|
| | | | 300,000 | | | | Distribution | |
Hamilton, Ohio
|
| | | | 57,600 | | | | Mfg., Distribution | |
Tyler, Texas(1)
|
| | | | 202,000 | | | |
Office, Mfg., Distribution
|
|
Robotics and Digital Solutions | | | | | | | | | | |
Boulder, Colorado
|
| | | | 20,000 | | | | Office | |
Canada | | | | | | | | | | |
Burnaby, British Columbia
|
| | | | 29,000 | | | | Distribution | |
Edmonton, Alberta
|
| | | | 100,000 | | | | Distribution | |
Laval, Quebec
|
| | | | 34,000 | | | | Distribution | |
Milton, Ontario
|
| | | | 26,000 | | | | Manufacturing | |
Scarborough, Ontario
|
| | | | 23,000 | | | | Mfg., Distribution | |
Toronto, Ontario
|
| | | | 453,000 | | | | Office, Distribution | |
Winnipeg, Manitoba
|
| | | | 42,000 | | | | Distribution | |
| | |
Hardware and
Protective Solutions |
| |
Robotics and
Digital Solutions |
| |
Canada
|
| |
Total Revenue
|
| ||||||||||||
Year Ended December 25, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Fastening and hardware
|
| | | $ | 740,088 | | | | | $ | — | | | | | $ | 149,165 | | | | | $ | 889,253 | | |
Personal protective
|
| | | | 284,886 | | | | | | — | | | | | | 397 | | | | | | 285,283 | | |
Keys and key accessories
|
| | | | — | | | | | | 190,697 | | | | | | 1,826 | | | | | | 192,523 | | |
Engraving
|
| | | | — | | | | | | 58,555 | | | | | | 77 | | | | | | 58,632 | | |
Resharp
|
| | | | — | | | | | | 276 | | | | | | — | | | | | | 276 | | |
Consolidated
|
| | | $ | 1,024,974 | | | | | $ | 249,528 | | | | | $ | 151,465 | | | | | $ | 1,425,967 | | |
Year Ended December 26, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Fastening and hardware
|
| | | $ | 706,865 | | | | | $ | — | | | | | $ | 131,493 | | | | | $ | 838,358 | | |
Personal protective
|
| | | | 317,527 | | | | | | — | | | | | | 239 | | | | | | 317,766 | | |
Keys and key accessories
|
| | | | — | | | | | | 157,828 | | | | | | 2,878 | | | | | | 160,706 | | |
Engraving
|
| | | | — | | | | | | 51,423 | | | | | | 6 | | | | | | 51,429 | | |
Resharp
|
| | | | — | | | | | | 36 | | | | | | — | | | | | | 36 | | |
Consolidated
|
| | | $ | 1,024,392 | | | | | $ | 209,287 | | | | | $ | 134,616 | | | | | $ | 1,368,295 | | |
Year Ended December 28, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Fastening and hardware
|
| | | $ | 607,247 | | | | | $ | — | | | | | $ | 121,242 | | | | | $ | 728,489 | | |
Personal protective
|
| | | | 245,769 | | | | | | — | | | | | | — | | | | | | 245,769 | | |
Keys and key accessories
|
| | | | — | | | | | | 185,451 | | | | | | 4,009 | | | | | | 189,460 | | |
Engraving
|
| | | | — | | | | | | 50,613 | | | | | | 9 | | | | | | 50,622 | | |
Resharp
|
| | | | — | | | | | | 22 | | | | | | — | | | | | | 22 | | |
Consolidated
|
| | | $ | 853,016 | | | | | $ | 236,086 | | | | | $ | 125,260 | | | | | $ | 1,214,362 | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| ||||||||||||||||||
(dollars in thousands)
|
| |
Amount
|
| |
% of
Net Sales |
| |
Amount
|
| |
% of
Net Sales |
| ||||||||||||
Net sales
|
| | | $ | 1,425,967 | | | | | | 100.0% | | | | | $ | 1,368,295 | | | | | | 100.0% | | |
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
| | | | 859,557 | | | | | | 60.3% | | | | | | 781,815 | | | | | | 57.1% | | |
Selling, general and administrative expenses
|
| | | | 437,875 | | | | | | 30.7% | | | | | | 398,472 | | | | | | 29.1% | | |
Depreciation
|
| | | | 59,400 | | | | | | 4.2% | | | | | | 67,423 | | | | | | 4.9% | | |
Amortization
|
| | | | 61,329 | | | | | | 4.3% | | | | | | 59,492 | | | | | | 4.3% | | |
Management fees to related party
|
| | | | 270 | | | | | | —% | | | | | | 577 | | | | | | —% | | |
Other income, net
|
| | | | (2,778) | | | | | | (0.2)% | | | | | | (5,250) | | | | | | (0.4)% | | |
Income from operations
|
| | | | 10,314 | | | | | | 0.7% | | | | | | 65,766 | | | | | | 4.8% | | |
Interest expense, net
|
| | | | 68,779 | | | | | | 4.8% | | | | | | 99,103 | | | | | | 7.2% | | |
Refinancing charges
|
| | | | 8,070 | | | | | | 0.6% | | | | | | — | | | | | | —% | | |
Gain on change in fair value of warrant liability
|
| | | | (14,734) | | | | | | (1.0)% | | | | | | — | | | | | | —% | | |
Mark-to-market adjustment of interest rate swap
|
| | | | (1,685) | | | | | | (0.1)% | | | | | | 601 | | | | | | —% | | |
Loss before income taxes
|
| | | | (50,116) | | | | | | (3.5)% | | | | | | (33,938) | | | | | | (2.5)% | | |
Income tax benefit
|
| | | | (11,784) | | | | | | (0.8)% | | | | | | (9,439) | | | | | | (0.7)% | | |
Net loss
|
| | | $ | (38,332) | | | | | | (2.7)% | | | | | $ | (24,499) | | | | | | (1.8)% | | |
Adjusted EBITDA(1)
|
| | | $ | 207,418 | | | | | | 14.5% | | | | | $ | 221,215 | | | | | | 16.2% | | |
| | |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| ||||||||||||||||||
(dollars in thousands)
|
| |
Amount
|
| |
% of
Total |
| |
Amount
|
| |
% of
Total |
| ||||||||||||
Net sales
|
| | | $ | 1,368,295 | | | | | | 100.0% | | | | | $ | 1,214,362 | | | | | | 100.0% | | |
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
| | | | 781,815 | | | | | | 57.1% | | | | | | 693,881 | | | | | | 57.1% | | |
Selling, general and administrative expenses
|
| | | | 398,472 | | | | | | 29.1% | | | | | | 382,131 | | | | | | 31.5% | | |
Depreciation
|
| | | | 67,423 | | | | | | 4.9% | | | | | | 65,658 | | | | | | 5.4% | | |
Amortization
|
| | | | 59,492 | | | | | | 4.3% | | | | | | 58,910 | | | | | | 4.9% | | |
Management fees to related party
|
| | | | 577 | | | | | | —% | | | | | | 562 | | | | | | —% | | |
Other (income) expense, net
|
| | | | (5,250) | | | | | | (0.4)% | | | | | | 5,525 | | | | | | 0.5% | | |
Income from operations
|
| | | | 65,766 | | | | | | 4.8% | | | | | | 7,695 | | | | | | 0.6% | | |
Interest expense, net
|
| | | | 99,103 | | | | | | 7.2% | | | | | | 113,843 | | | | | | 9.4% | | |
Mark-to-market adjustment of interest rate swap
|
| | | | 601 | | | | | | —% | | | | | | 2,608 | | | | | | 0.2% | | |
Loss before income taxes
|
| | | | (33,938) | | | | | | (2.5)% | | | | | | (108,756) | | | | | | (9.0)% | | |
Income tax benefit
|
| | | | (9,439) | | | | | | (0.7)% | | | | | | (23,277) | | | | | | (1.9)% | | |
Net loss
|
| | | $ | (24,499) | | | | | | (1.8)% | | | | | $ | (85,479) | | | | | | (7.0)% | | |
Adjusted EBITDA(1)
|
| | | $ | 221,215 | | | | | | 16.2% | | | | | $ | 178,658 | | | | | | 14.7% | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |||||||||
Hardware and Protective Solutions | | | | | | | | | | | | | | | | | | | |
Segment Revenues
|
| | | $ | 1,024,974 | | | | | $ | 1,024,392 | | | | | $ | 853,016 | | |
Segment (Loss) Income from Operations
|
| | | $ | (17,185) | | | | | $ | 67,313 | | | | | $ | 14,204 | | |
Adjusted EBITDA(1)
|
| | | $ | 113,738 | | | | | $ | 153,765 | | | | | $ | 101,319 | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |||||||||
Robotics and Digital Solutions | | | | | | | | | | | | | | | | | | | |
Segment Revenues
|
| | | $ | 249,528 | | | | | $ | 209,287 | | | | | $ | 236,086 | | |
Segment Income from Operations
|
| | | $ | 23,558 | | | | | $ | 3,177 | | | | | $ | 3,385 | | |
Adjusted EBITDA(1)
|
| | | $ | 83,082 | | | | | $ | 60,265 | | | | | $ | 70,966 | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |||||||||
Canada | | | | | | | | | | | | | | | | | | | |
Segment Revenues
|
| | | $ | 151,465 | | | | | $ | 134,616 | | | | | $ | 125,260 | | |
Segment Income (Loss) from Operations
|
| | | $ | 3,941 | | | | | $ | (4,724) | | | | | $ | (9,894) | | |
Adjusted EBITDA(1)
|
| | | $ | 10,598 | | | | | $ | 7,185 | | | | | $ | 6,373 | | |
(dollars in thousands)
|
| |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |||||||||
Net loss
|
| | | $ | (38,332) | | | | | $ | (24,499) | | | | | $ | (85,479) | | |
Income tax benefit
|
| | | | (11,784) | | | | | | (9,439) | | | | | | (23,277) | | |
Interest expense, net
|
| | | | 61,237 | | | | | | 86,774 | | | | | | 101,613 | | |
Interest expense on junior subordinated debentures
|
| | | | 7,775 | | | | | | 12,707 | | | | | | 12,608 | | |
Investment income on trust common securities
|
| | | | (233) | | | | | | (378) | | | | | | (378) | | |
Depreciation
|
| | | | 59,400 | | | | | | 67,423 | | | | | | 65,658 | | |
Amortization
|
| | | | 61,329 | | | | | | 59,492 | | | | | | 58,910 | | |
Mark-to-market adjustment on interest rate swaps
|
| | | | (1,685) | | | | | | 601 | | | | | | 2,608 | | |
EBITDA
|
| | | $ | 137,707 | | | | | $ | 192,681 | | | | | $ | 132,263 | | |
Stock compensation expense
|
| | | | 15,255 | | | | | | 5,125 | | | | | | 2,981 | | |
Management fees
|
| | | | 270 | | | | | | 577 | | | | | | 562 | | |
Facility exits(1)
|
| | | | — | | | | | | 3,894 | | | | | | — | | |
Restructuring(2) | | | | | 910 | | | | | | 4,902 | | | | | | 13,749 | | |
Litigation expense(3)
|
| | | | 12,602 | | | | | | 7,719 | | | | | | 1,463 | | |
Acquisition and integration expense(4)
|
| | | | 11,123 | | | | | | 9,832 | | | | | | 12,557 | | |
Change in fair value of contingent consideration
|
| | | | (1,806) | | | | | | (3,515) | | | | | | — | | |
Change in fair value of warrant liability(5)
|
| | | | (14,734) | | | | | | — | | | | | | — | | |
Buy-back expense(6)
|
| | | | 2,000 | | | | | | — | | | | | | 7,196 | | |
Asset impairment charges(7)
|
| | | | — | | | | | | — | | | | | | 7,887 | | |
Refinancing costs(8)
|
| | | | 8,070 | | | | | | — | | | | | | — | | |
Inventory revaluation charges(9)
|
| | | | 32,026 | | | | | | — | | | | | | — | | |
Anti-dumping duties(10)
|
| | | | 3,995 | | | | | | — | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | 207,418 | | | | | $ | 221,215 | | | | | $ | 178,658 | | |
Year Ended December 25, 2021
|
| |
Hardware and
Protective Solutions |
| |
Robotics and
Digital Solutions |
| |
Canada
|
| |
Consolidated
|
| ||||||||||||
Operating (loss) income
|
| | | $ | (17,185) | | | | | $ | 23,558 | | | | | $ | 3,941 | | | | | $ | 10,314 | | |
Depreciation and amortization
|
| | | | 69,264 | | | | | | 45,305 | | | | | | 6,160 | | | | | | 120,729 | | |
Stock compensation expense
|
| | | | 13,134 | | | | | | 2,121 | | | | | | — | | | | | | 15,255 | | |
Management fees
|
| | | | 232 | | | | | | 38 | | | | | | — | | | | | | 270 | | |
Facility exits
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Restructuring
|
| | | | 403 | | | | | | 10 | | | | | | 497 | | | | | | 910 | | |
Litigation expense
|
| | | | — | | | | | | 12,602 | | | | | | — | | | | | | 12,602 | | |
Acquisition and integration expense
|
| | | | 9,869 | | | | | | 1,254 | | | | | | — | | | | | | 11,123 | | |
Buy-back expense
|
| | | | 2,000 | | | | | | — | | | | | | — | | | | | | 2,000 | | |
Inventory revaluation charges
|
| | | | 32,026 | | | | | | — | | | | | | — | | | | | | 32,026 | | |
Anti-dumping duties
|
| | | | 3,995 | | | | | | — | | | | | | — | | | | | | 3,995 | | |
Change in fair value of contingent consideration
|
| | | | — | | | | | | (1,806) | | | | | | — | | | | | | (1,806) | | |
Adjusted EBITDA
|
| | | $ | 113,738 | | | | | $ | 83,082 | | | | | $ | 10,598 | | | | | $ | 207,418 | | |
Year Ended December 26, 2020
|
| |
Hardware and
Protective Solutions |
| |
Robotics and
Digital Solutions |
| |
Canada
|
| |
Consolidated
|
| ||||||||||||
Operating (loss) income
|
| | | $ | 67,313 | | | | | $ | 3,177 | | | | | $ | (4,724) | | | | | $ | 65,766 | | |
Depreciation and amortization
|
| | | | 69,164 | | | | | | 50,670 | | | | | | 7,081 | | | | | | 126,915 | | |
Stock compensation expense
|
| | | | 4,464 | | | | | | 661 | | | | | | — | | | | | | 5,125 | | |
Management fees
|
| | | | 502 | | | | | | 75 | | | | | | — | | | | | | 577 | | |
Facility exits
|
| | | | 3,894 | | | | | | — | | | | | | — | | | | | | 3,894 | | |
Restructuring
|
| | | | 74 | | | | | | — | | | | | | 4,828 | | | | | | 4,902 | | |
Litigation expense
|
| | | | — | | | | | | 7,719 | | | | | | — | | | | | | 7,719 | | |
Acquisition and integration expense
|
| | | | 8,284 | | | | | | 1,548 | | | | | | — | | | | | | 9,832 | | |
Change in fair value of contingent consideration
|
| | | | — | | | | | | (3,515) | | | | | | — | | | | | | (3,515) | | |
Corporate and intersegment adjustments
|
| | | | 70 | | | | | | (70) | | | | | | — | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | 153,765 | | | | | $ | 60,265 | | | | | $ | 7,185 | | | | | $ | 221,215 | | |
Year Ended December 28, 2019
|
| |
Hardware and
Protective Solutions |
| |
Robotics and
Digital Solutions |
| |
Canada
|
| |
Consolidated
|
| ||||||||||||
Operating (loss) income
|
| | | $ | 14,204 | | | | | $ | 3,385 | | | | | $ | (9,894) | | | | | $ | 7,695 | | |
Depreciation and amortization
|
| | | | 65,369 | | | | | | 52,924 | | | | | | 6,275 | | | | | | 124,568 | | |
Stock compensation expense
|
| | | | 2,436 | | | | | | 545 | | | | | | — | | | | | | 2,981 | | |
Management fees
|
| | | | 562 | | | | | | — | | | | | | — | | | | | | 562 | | |
Restructuring
|
| | | | 3,163 | | | | | | 708 | | | | | | 9,878 | | | | | | 13,749 | | |
Litigation expense
|
| | | | — | | | | | | 1,463 | | | | | | — | | | | | | 1,463 | | |
Acquisition and integration expense
|
| | | | 8,837 | | | | | | 3,720 | | | | | | | | | | | | 12,557 | | |
Buy-back expense
|
| | | | 7,196 | | | | | | — | | | | | | — | | | | | | 7,196 | | |
Asset impairment charges
|
| | | | — | | | | | | 7,773 | | | | | | 114 | | | | | | 7,887 | | |
Corporate and intersegment adjustments
|
| | | | (448) | | | | | | 448 | | | | | | — | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | 101,319 | | | | | $ | 70,966 | | | | | $ | 6,373 | | | | | $ | 178,658 | | |
Name
|
| |
Position
|
| |
Director Since
|
| |
Age
|
|
Douglas Cahill | | |
Chairman, President and Chief Executive Officer
|
| |
2014
|
| |
62
|
|
Joseph Scharfenberger | | |
Director
|
| |
2015
|
| |
50
|
|
Richard Zannino | | |
Director
|
| |
2014
|
| |
63
|
|
Daniel O’Leary | | |
Director
|
| |
2021
|
| |
66
|
|
John Swygert | | |
Director
|
| |
2021
|
| |
53
|
|
Aaron Jagdfeld | | |
Director
|
| |
2014
|
| |
50
|
|
David Owens | | |
Director
|
| |
2018
|
| |
59
|
|
Philip Woodlief | | |
Director
|
| |
2015
|
| |
68
|
|
Diana Dowling | | |
Director
|
| |
2021
|
| |
56
|
|
Teresa Gendron | | |
Director
|
| |
2021
|
| |
52
|
|
Name
|
| |
Position
|
| |
Age
|
|
Douglas Cahill | | | Chairman, President and Chief Executive Officer | | |
62
|
|
Robert O. Kraft | | | Chief Financial Officer and Treasurer | | |
51
|
|
Jon Michael Adinolfi | | | Divisional President, Hillman US | | |
45
|
|
Scott C. Ride | | | President, Hillman Canada | | |
51
|
|
Randall Fagundo | | | Divisional President, Robotics and Digital Solutions | | |
62
|
|
Jarrod Streng | | |
Divisional President, Protective Solutions and Corporate
|
| |
42
|
|
Gary L. Seeds | | | Executive Vice President, Sales and Field Service | | |
63
|
|
George Murphy | | | Executive Vice President, Sales | | |
57
|
|
Amanda Kitzberger | | | Vice President Human Resources and Administration | | |
40
|
|
Steven A. Brunker | | | Chief Information Officer | | |
61
|
|
Element
|
| |
Role and Purpose
|
|
Base Salary | | | Attract and retain executives and reward their skills and contributions to the day-to-day management of our Company. | |
Annual Performance-Based Bonuses | | | Motivate the attainment of annual Company and division, financial, operational, and strategic goals by paying bonuses determined by the achievement of specified performance targets with a performance period of one year. | |
Discretionary Bonuses | | | From time to time, the Company may award discretionary bonuses to compensate executives for special contributions or extraordinary circumstances or events. | |
Element
|
| |
Role and Purpose
|
|
Stock Options and other Equity-Based Awards | | | Motivate the attainment of long-term value creation, align executive interests with the interests of our stockholders, create accountability for executives to enhance stockholder value, and promote long-term retention through the use of multi-year vesting equity awards. | |
Severance and Change of Control Benefits | | | Promote long-term retention and align the interests of executives with stockholders by providing (i) for the pre-2021 time based awards granted prior to the Business Combination, acceleration of equity vesting in the event of a change in control transaction; and (ii) for all performance based awards granted in 2021 or later as a public company or anticipation of becoming a public company, no mandatory acceleration of equity vesting in the event of a change in control transaction. | |
Severance Benefits | | | We provide modest severance protection in the form of continued base salary and bonus payments in the event of a termination of employment without cause or for good reason for individual NEOs, as described below. | |
Element
|
| |
Role and Purpose
|
|
Employee Benefit Plans and Perquisites | | | Participation in Company-wide health and retirement benefit programs, provide financial security and additional compensation commensurate with senior executive level duties and responsibilities. | |
| JELD-WEN Holding, Inc. | | | Floor & Decor Holdings, Inc | | | Leslie’s, Inc. | |
|
Spectrum Brands Holdings, Inc.
|
| |
Masonite International Corporation
|
| | YETI Holdings, Inc. | |
| BMC Stock Holdings, Inc. | | | American Woodmark Corporation | | | Richelieu Hardware Ltd. | |
| Pool Corporation | | | Simpson Manufacturing Co., Inc. | | |
Armstrong World Industries, Inc.
|
|
| Allegion plc | | | Gibraltar Industries, Inc. | | | The AZEK Company Inc. | |
|
SiteOne Landscape Supply, Inc.
|
| |
Lumber Liquidators Holdings, Inc.
|
| | PGT Innovations, Inc. | |
| Griffon Corporation | | | Dorman Products, Inc. | | | Trex Company, Inc. | |
Name
|
| |
2021 Base
Salary |
| |
2020 Base
Salary(3) |
| |
2019 Base
Salary |
| |||||||||
Douglas J. Cahill(1)
|
| | | $ | 700,000 | | | | | $ | 650,000 | | | | | $ | 650,000 | | |
Robert O. Kraft
|
| | | $ | 415,000 | | | | | $ | 415,000 | | | | | $ | 415,000 | | |
Randall J. Fagundo
|
| | | $ | 330,000 | | | | | $ | 330,000 | | | | | $ | 286,000 | | |
Scott C. Ride(2)
|
| | | $ | 289,384 | | | | | $ | 288,888 | | | | | $ | 283,520 | | |
Gary L. Seeds
|
| | | $ | 300,000 | | | | | $ | 300,000 | | | | | $ | 300,000 | | |
Name
|
| |
2021 Threshold Bonus as
Percentage of Base Salary |
| |
2021 Target Bonus as
Percentage of Base Salary |
| |
2021 Maximum Bonus as
Percentage of Base Salary |
| |||||||||
Douglas J. Cahill
|
| | | | 50% | | | | | | 100% | | | | | | 200% | | |
Robert O. Kraft
|
| | | | 30% | | | | | | 60% | | | | | | 120% | | |
Randall J. Fagundo
|
| | | | 25% | | | | | | 50% | | | | | | 100% | | |
Gary L. Seeds
|
| | | | 25% | | | | | | 50% | | | | | | 100% | | |
Scott C. Ride
|
| | | | 25% | | | | | | 50% | | | | | | 100% | | |
Name
|
| |
Adjusted
EBITDA |
| |
Consolidated
Compensation Cash Flow |
| ||||||
Douglas J. Cahill
|
| | | | 70% | | | | | | 30% | | |
Robert O. Kraft
|
| | | | 70% | | | | | | 30% | | |
Randall J. Fagundo
|
| | | | 70% | | | | | | 30% | | |
Gary L. Seeds
|
| | | | 70% | | | | | | 30% | | |
Scott C. Ride
|
| | | | 70% | | | | | | 30% | | |
Metric
|
| |
Threshold
|
| |
Target
|
| |
Maximum
|
| |||||||||
Adjusted EBITDA
|
| | | $ | 221,200 | | | | | $ | 243,000 | | | | | $ | 264,800 | | |
Payout
|
| | | | 50% | | | | | | 100% | | | | | | 200% | | |
Metric
|
| |
Threshold
|
| |
Target
|
| |
Maximum
|
| |||||||||
Consolidated Compensation Cash Flows
|
| | | $ | 100,000 | | | | | $ | 114,000 | | | | | $ | 130,000 | | |
Payout
|
| | | | 50% | | | | | | 100% | | | | | | 200% | | |
Metric
|
| |
Threshold
|
| |
Actual
|
| |
Achievement
Relative to Threshold |
| |
Resulting Payout
|
| |||||||||
Adjusted EBITDA
|
| | | $ | 221,200 | | | | | $ | 207,418 | | | |
Below Threshold
|
| | | | —% | | |
Consolidated Compensation Cash Flows
|
| | | | 100,000 | | | | | | (74,924) | | | |
Below threshold
|
| | | | —% | | |
Name
|
| |
2021 Target
Bonus |
| |
Actual Annual
Bonus Paid |
| |
% of Target Bonus
|
| |||||||||
Douglas J. Cahill
|
| | | $ | 700,000 | | | | | $ | — | | | | | | —% | | |
Robert O. Kraft
|
| | | | 249,000 | | | | | | — | | | | | | —% | | |
Randall J. Fagundo
|
| | | | 165,000 | | | | | | — | | | | | | —% | | |
Scott C. Ride(1)
|
| | | | 144,692 | | | | | | — | | | | | | —% | | |
Gary L. Seeds
|
| | | | 150,000 | | | | | | — | | | | | | —% | | |
(dollars in thousands)
|
| |
Year Ended
December 25, 2021 |
| |||
Net loss
|
| | | $ | (38,332) | | |
Income tax benefit
|
| | | | (11,784) | | |
Interest expense, net
|
| | | | 61,237 | | |
Interest expense on junior subordinated debentures
|
| | | | 7,775 | | |
Investment income on trust common securities
|
| | | | (233) | | |
Depreciation
|
| | | | 59,400 | | |
Amortization
|
| | | | 61,329 | | |
Mark-to-market adjustment on interest rate swaps
|
| | | | (1,685) | | |
EBITDA
|
| | | $ | 137,707 | | |
(dollars in thousands)
|
| |
Year Ended
December 25, 2021 |
| |||
Stock compensation expense
|
| | | | 15,255 | | |
Management fees
|
| | | | 270 | | |
Restructuring(1) | | | | | 910 | | |
Litigation expense(2)
|
| | | | 12,602 | | |
Acquisition and integration expense(3)
|
| | | | 11,123 | | |
Change in fair value of contingent consideration
|
| | | | (1,806) | | |
Change in fair value of warrant liability(4)
|
| | | | (14,734) | | |
Buy-back expense(5)
|
| | | | 2,000 | | |
Refinancing costs(6)
|
| | | | 8,070 | | |
Inventory revaluation charges(7)
|
| | | | 32,026 | | |
Anti-dumping duties(8)
|
| | | | 3,995 | | |
Adjusted EBITDA
|
| | | $ | 207,418 | | |
|
| | |
Year Ended
December 25, 2021 |
| |||
Operating Cash Flow
|
| | | $ | (110,254) | | |
Less: | | | | | | | |
Capital Expenditures
|
| | | | (51,552) | | |
Plus: | | | | | | | |
Merger related costs
|
| | | | 7,690 | | |
Long term incentive paid out
|
| | | | 10,413 | | |
Total interest expense
|
| | | | 68,779 | | |
Consolidated Compensation Cash Flow
|
| | | $ | (74,924) | | |
Name and
Principal Position |
| |
Year
|
| |
Salary(1)
|
| |
Bonus(2)
|
| |
Option
Awards(3) |
| |
Non-Equity
Incentive Plan Compensation(4) |
| |
Compensation –
All Other(5) |
| |
Total
|
| |||||||||||||||||||||
Douglas J. Cahill(6)
President and CEO |
| | | | 2021 | | | | | $ | 698,077 | | | | | $ | — | | | | | $ | 2,637,196 | | | | | $ | — | | | | | $ | 13,827 | | | | | $ | 3,349,100 | | |
| | | 2020 | | | | | | 631,250 | | | | | | — | | | | | | — | | | | | | 846,235 | | | | | | 100,776 | | | | | | 1,578,261 | | | ||
| | | 2019 | | | | | | 262,500 | | | | | | — | | | | | | 11,113,635 | | | | | | 190,249 | | | | | | 1,500 | | | | | | 11,567,884 | | | ||
Robert O. Kraft
CFO and Treasurer |
| | | | 2021 | | | | | | 415,000 | | | | | | — | | | | | | 3,130,835 | | | | | | — | | | | | | 15,104 | | | | | | 3,560,939 | | |
| | | 2020 | | | | | | 403,029 | | | | | | — | | | | | | 748,158 | | | | | | 1,824,173 | | | | | | 23,905 | | | | | | 2,999,265 | | | ||
| | | 2019 | | | | | | 415,000 | | | | | | — | | | | | | — | | | | | | 171,150 | | | | | | 17,945 | | | | | | 604,095 | | | ||
Randall J. Fagundo
Divisional President, Robotics and Digital Solutions |
| | | | 2021 | | | | | | 329,992 | | | | | | 453,992 | | | | | | 1,038,488 | | | | | | — | | | | | | 17,578 | | | | | | 1,840,050 | | |
| | | 2020 | | | | | | 322,380 | | | | | | 1,020,008 | | | | | | 748,158 | | | | | | 214,814 | | | | | | 21,198 | | | | | | 2,326,558 | | | ||
| | | 2019 | | | | | | 306,462 | | | | | | — | | | | | | — | | | | | | 104,225 | | | | | | 60,684 | | | | | | 471,371 | | | ||
Scott C. Ride(7)
President, Hillman Canada |
| | | | 2021 | | | | | | 289,384 | | | | | | — | | | | | | 1,839,399 | | | | | | — | | | | | | 24,306 | | | | | | 2,153,089 | | |
| | | 2020 | | | | | | 288,895 | | | | | | — | | | | | | 269,954 | | | | | | 188,566 | | | | | | 24,681 | | | | | | 772,096 | | | ||
| | | 2019 | | | | | | 271,175 | | | | | | 10,323 | | | | | | — | | | | | | 91,923 | | | | | | 23,939 | | | | | | 397,360 | | | ||
Gary L. Seeds,
Executive Vice President, Sales and Field Service |
| | | | 2021 | | | | | | 300,000 | | | | | | — | | | | | | 1,840,094 | | | | | | — | | | | | | 10,212 | | | | | | 2,150,306 | | |
| | | 2020 | | | | | | 300,000 | | | | | | 29,715 | | | | | | 385,648 | | | | | | 195,285 | | | | | | 14,155 | | | | | | 924,803 | | | ||
| | | 2019 | | | | | | 278,984 | | | | | | — | | | | | | — | | | | | | 88,496 | | | | | | 13,611 | | | | | | 381,091 | | |
| | | | | | | | |
Estimated Future Payouts Under
Non-Equity Incentive Plan Awards(1) |
| |
All Other
Option Awards: Number of Securities Underlying Options (#)(3) |
| |
Exercise
Price of Option Awards ($) |
| |
Grant Date
Fair Value of Stock and Option Awards ($)(3) |
| | | | ||||||||||||||||||||||||||||||
Name
|
| |
Grant Date
|
| |
Minimum ($)
|
| |
Target ($)
|
| |
Maximum ($)
|
| | | | | | | | | | ||||||||||||||||||||||||||||||
Douglas J. Cahill
|
| | | | 3/19/2021 | | | | | $ | 350,000 | | | | | $ | 700,000 | | | | | $ | 1,400,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | ||||||
| | | | | 1/22/2021 | | | | | | | | | | | | | | | | | | | | | | | | 816,874 | | | | | | 10.00 | | | | | | 2,637,196 | | | | | | ||||||
Robert O. Kraft
|
| | | | 3/19/2021 | | | | | | 124,500 | | | | | | 249,000 | | | | | | 498,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | ||||||
| | | | | 1/22/2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | 267,841 | | | | | | 10.00 | | | | | | 864,698 | | | | | | ||||||
| | | | | 7/14/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | 247,238 | | | | | | 6.07 | | | | | | 1,636,716 | | | | | | ||||||
| | | | | 7/14/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | 103,015 | | | | | | 7.29 | | | | | | 629,422 | | | | | | ||||||
Randall J. Fagundo
|
| | | | 3/19/2021 | | | | | | 82,500 | | | | | | 165,000 | | | | | | 330,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | ||||||
| | | | | 1/22/2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | 157,902 | | | | | | 10.00 | | | | | | 509,771 | | | | | | ||||||
| | | | | 7/14/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | 86,533 | | | | | | 7.29 | | | | | | 528,717 | | | | | | ||||||
Scott C. Ride
|
| | | | 3/19/2021 | | | | | | 72,346 | | | | | | 144,692 | | | | | | 289,384 | | | | | | — | | | | | | — | | | | | | — | | | | | | ||||||
| | | | | 1/22/2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | 123,619 | | | | | | 10.00 | | | | | | 399,092 | | | | | | ||||||
| | | | | 7/14/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | 72,523 | | | | | | 6.07 | | | | | | 480,102 | | | | | | ||||||
| | | | | 7/14/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | 145,046 | | | | | | 6.07 | | | | | | 960,205 | | | | | | ||||||
Gary L. Seeds
|
| | | | 3/19/2021 | | | | | | 75,000 | | | | | | 150,000 | | | | | | 300,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | ||||||
| | | | | 1/22/2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | 123,619 | | | | | | 10.00 | | | | | | 399,092 | | | | | | ||||||
| | | | | 7/14/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | 217,674 | | | | | | 6.07 | | | | | | 1,441,002 | | | | | |
| | |
Option Awards(1)
|
| |||||||||||||||||||||||||||
Name
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Equity Incentive
Plan Awards; Number of Securities Underlying Unexercised Unearned Option (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |||||||||||||||
Douglas J. Cahill
|
| | | | 2,747,063 | | | | | | 2,747,063 | | | | | | — | | | | | $ | 8.50 | | | | | | 7/29/2029 | | |
| | | | | — | | | | | | 544,583 | | | | | | 272,291 | | | | | | 10.00 | | | | | | 1/22/2031 | | |
Robert O. Kraft
|
| | | | 247,238 | | | | | | — | | | | | | 247,238 | | | | | | 6.07 | | | | | | 11/1/2027 | | |
| | | | | 77,261 | | | | | | 25,754 | | | | | | 103,015 | | | | | | 7.29 | | | | | | 8/30/2028 | | |
| | | | | 79,940 | | | | | | 239,821 | | | | | | — | | | | | | 7.89 | | | | | | 7/30/2030 | | |
| | | | | — | | | | | | 178,561 | | | | | | 89,280 | | | | | | 10.00 | | | | | | 1/22/2031 | | |
Randall J. Fagundo
|
| | | | 64,899 | | | | | | 21,634 | | | | | | 86,533 | | | | | | 7.29 | | | | | | 8/10/2028 | | |
| | | | | 79,940 | | | | | | 239,821 | | | | | | — | | | | | | 7.89 | | | | | | 7/30/2030 | | |
| | | | | — | | | | | | 105,268 | | | | | | 52,634 | | | | | | 10.00 | | | | | | 1/22/2031 | | |
Scott C. Ride
|
| | | | 72,523 | | | | | | — | | | | | | 72,523 | | | | | | 6.07 | | | | | | 10/1/2027 | | |
| | | | | 145,046 | | | | | | — | | | | | | 145,046 | | | | | | 6.07 | | | | | | 2/12/2025 | | |
| | | | | 28,844 | | | | | | 86,533 | | | | | | — | | | | | | 7.89 | | | | | | 7/30/2030 | | |
| | | | | — | | | | | | 82,413 | | | | | | 41,206 | | | | | | 10.00 | | | | | | 1/22/2031 | | |
Gary L. Seeds
|
| | | | 217,674 | | | | | | — | | | | | | 217,674 | | | | | | 6.07 | | | | | | 7/1/2024 | | |
| | | | | 41,206 | | | | | | 123,619 | | | | | | — | | | | | | 7.89 | | | | | | 7/30/2030 | | |
| | | | | — | | | | | | 82,413 | | | | | | 41,206 | | | | | | 10.00 | | | | | | 1/22/2031 | | |
Name
|
| |
Executive
Contribution(1) |
| |
Company
Matching Contributions(2) |
| |
Aggregate
Earnings(3) |
| |
Aggregate
Withdrawal/Distributions(4) |
| |
Aggregate Balance
at 12/25/2021(5) |
| |||||||||||||||
Douglas J. Cahill
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Robert O. Kraft
|
| | | | — | | | | | | — | | | | | | 6,423 | | | | | | — | | | | | | 57,777 | | |
Randall J. Fagundo
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Scott C. Ride
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Gary L. Seeds
|
| | | | — | | | | | | — | | | | | | 4,593 | | | | | | 21,066 | | | | | | 23,544 | | |
Name
|
| |
Death,
Disability, or non-renewal by Executive |
| |
Termination without
cause, resignation with good reason, or non-renewal by the Company |
| |
Termination without cause,
resignation with good reason, or non-renewal by the Company within 90 days of a change in control |
| |
Change in
Control (regardless of termination)(1) |
| ||||||||||||
Douglas J. Cahill
|
| | | $ | — | | | | | $ | 1,400,000 | | | | | $ | 1,400,000 | | | | | $ | 10,988,252 | | |
Robert O. Kraft
|
| | | | — | | | | | | 415,000 | | | | | | 415,000 | | | | | | 2,260,519 | | |
Randall S. Fagundo
|
| | | | — | | | | | | 495,000 | | | | | | 495,000 | | | | | | 1,112,347 | | |
Scott C. Ride(2)
|
| | | | — | | | | | | 346,154 | | | | | | 346,154 | | | | | | 1,264,965 | | |
Gary L. Seeds
|
| | | | — | | | | | | 400,056 | | | | | | 400,056 | | | | | | 1,394,489 | | |
Name
|
| |
Fees Earned
or Paid in Cash |
| |
Stock
Awards(1) |
| |
Total
|
| |||||||||
Diana Dowling(2)
|
| | | $ | 37,500 | | | | | $ | 86,844 | | | | | $ | 124,344 | | |
Teresa S. Gendron(2)
|
| | | | 37,500 | | | | | | 86,844 | | | | | | 124,344 | | |
Aaron P. Jagdfeld(3)
|
| | | | 87,500 | | | | | | 86,844 | | | | | | 174,344 | | |
Daniel O’Leary(2)
|
| | | | 37,500 | | | | | | 86,844 | | | | | | 124,344 | | |
David A. Owens(4)
|
| | | | 72,500 | | | | | | 86,844 | | | | | | 159,344 | | |
Joseph M. Scharfenberger, Jr.(5)
|
| | | | — | | | | | | — | | | | | | — | | |
John Swygert(2)
|
| | | | 37,500 | | | | | | 86,844 | | | | | | 124,344 | | |
Philip K. Woodlief(6)
|
| | | | 91,250 | | | | | | 86,844 | | | | | | 178,094 | | |
Richard F. Zannino(5)
|
| | | | — | | | | | | — | | | | | | — | | |
|
Compensation Element
|
| |
Amount
|
|
| Annual cash retainer | | | $75,000 | |
| Additional annual cash retainer for chair of the Audit Committee | | | 20,000 | |
| Additional annual cash retainer for chair of Compensation Committee | | | 15,000 | |
| Annual equity retainer | | | $100,000 of restricted stock units, vesting upon the sooner of the one-year anniversary of the grant date or the next annual meeting of stockholders. | |
| | |
Shares Beneficially Owned
|
| |||||||||
Name and Address of Beneficial Owners(1)
|
| |
Number
|
| |
Percentage (%)(2)
|
| ||||||
Directors and Executive Officers | | | | | | | | | | | | | |
Douglas Cahill(2)
|
| | | | 2,971,507 | | | | | | 1.5% | | |
Joseph Scharfenberger
|
| | | | — | | | | | | — | | |
Richard Zannino
|
| | | | — | | | | | | — | | |
Daniel O’Leary
|
| | | | — | | | | | | — | | |
John Swygert
|
| | | | — | | | | | | — | | |
Aaron Jagdfeld(3)
|
| | | | 214,272 | | | | | | * | | |
David Owens(4)
|
| | | | 37,085 | | | | | | * | | |
Philp Woodlief(5)
|
| | | | 49,447 | | | | | | * | | |
Diana Dowling
|
| | | | — | | | | | | — | | |
Teresa Gendron
|
| | | | — | | | | | | — | | |
Robert Kraft(6)
|
| | | | 531,492 | | | | | | * | | |
Jon Michael Adinolfi(7)
|
| | | | 543,331 | | | | | | * | | |
Jarrod Streng(8)
|
| | | | 78,854 | | | | | | * | | |
Scott Ride(9)
|
| | | | 267,016 | | | | | | * | | |
George Murphy(10)
|
| | | | 73,140 | | | | | | * | | |
Randall Fagundo(11)
|
| | | | 171,156 | | | | | | * | | |
Gary Seeds(12)
|
| | | | 515,183 | | | | | | * | | |
Amanda Kitzberger(13)
|
| | | | 15,657 | | | | | | * | | |
Steve Brunker(14)
|
| | | | 23,346 | | | | | | * | | |
All directors and executive officers as a group (nineteen individuals)
|
| | | | 5,491,486 | | | | | | 2.8% | | |
Five Percent Holders: | | | | | | | | | | | | | |
CCMP Capital Investors III, L.P. and related investment funds(15)
|
| | | | 71,952,733 | | | | | | 37.1% | | |
Oak Hill Capital Partners and related investment funds(16)
|
| | | | 15,163,940 | | | | | | 7.8% | | |
Selling Securityholder
|
| |
Shares of
Common Stock Beneficially Owned Prior to Offering |
| |
Warrants
Beneficially Owned Prior to Offering |
| |
Shares of
Common Stock Offered |
| |
Warrants
Offered |
| |
Shares of
Common Stock Beneficially Owned After the Offered Shares are Sold(68) |
| |
%
|
| |
Warrants
Beneficially Owned After the Offered Private Placement Warrants are Sold |
| |
%
|
| ||||||||||||||||||||||||
Alyeska Master Fund, L.P.(1)
|
| | | | 5,456,204 | | | | | | 456,204 | | | | | | 5,000,000 | | | | | | — | | | | | | 456,204 | | | | | | * | | | | | | 456,204 | | | | | | * | | |
21st Century Insurance Company(2)
|
| | | | 40,600 | | | | | | — | | | | | | 40,600 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Met Investors Series Trust – MetLife Small
Cap Value Portfolio(3) |
| | | | 502,200 | | | | | | — | | | | | | 502,200 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Minnesota Life Insurance Company – Special Small Cap Value Equity(4)
|
| | | | 42,800 | | | | | | — | | | | | | 42,800 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Quad/Graphics Diversified Plan(5)
|
| | | | 17,600 | | | | | | — | | | | | | 17,600 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Truck Insurance Exchange(6)
|
| | | | 58,700 | | | | | | — | | | | | | 58,700 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
VALIC Company I – Small Cap Special Values Fund
|
| | | | 183,000 | | | | | | — | | | | | | 183,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Wells Fargo Special Small Cap Value
CIT(8) |
| | | | 32,200 | | | | | | — | | | | | | 32,200 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Wells Fargo Special Small Cap Value Fund,
as a series of Wells Fargo Funds Trust(9) |
| | | | 3,622,900 | | | | | | — | | | | | | 3,622,900 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Clal Pension and Provident Funds
Ltd.(10) |
| | | | 1,736,000 | | | | | | — | | | | | | 1,736,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Clal Insurance Ltd.(11)
|
| | | | 1,264,000 | | | | | | — | | | | | | 1,264,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Columbia Small Cap Growth Fund I(12)
|
| | | | 2,460,000 | | | | | | — | | | | | | 2,460,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Columbia Variable Portfolio – Small Company Growth Fund(13)
|
| | | | 540,000 | | | | | | — | | | | | | 540,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Samlyn Onshore Fund, LP(14)
|
| | | | 1,187,651 | | | | | | 715,568 | | | | | | 472,083 | | | | | | — | | | | | | 715,568 | | | | | | * | | | | | | 715,568 | | | | | | * | | |
Samlyn Offshore Master Fund, Ltd.(15)
|
| | | | 2,870,006 | | | | | | 1,685,658 | | | | | | 1,184,348 | | | | | | — | | | | | | 1,685,658 | | | | | | * | | | | | | 1,685,658 | | | | | | * | | |
Samlyn Net Neutral Master Fund,
Ltd.(16) |
| | | | 2,497,089 | | | | | | 1,501,409 | | | | | | 995,680 | | | | | | — | | | | | | 1,501,409 | | | | | | * | | | | | | 1,501,409 | | | | | | * | | |
Samlyn Long Alpha Master Fund,
Ltd.(17) |
| | | | 256,335 | | | | | | 158,446 | | | | | | 97,889 | | | | | | — | | | | | | 158,446 | | | | | | * | | | | | | 158,446* | | | | | | * | | |
Suvretta Master Fund, Ltd.(18)
|
| | | | 1,737,000 | | | | | | — | | | | | | 1,737,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Suvretta Long Master Fund, Ltd.(19)
|
| | | | 13,000 | | | | | | — | | | | | | 13,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Park West Investors Master Fund, Limited(20)
|
| | | | 1,360,000 | | | | | | — | | | | | | 1,360,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Park West Partners International, Limited(21)
|
| | | | 140,000 | | | | | | — | | | | | | 140,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Citadel Multi-Strategy Equities Master Fund Ltd.(22)
|
| | | | 1,400,000 | | | | | | — | | | | | | 1,400,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Hawk Ridge Master Fund LP(23)
|
| | | | 1,350,000 | | | | | | — | | | | | | 1,350,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
BEMAP Master Fund Ltd(24)
|
| | | | 343,010 | | | | | | — | | | | | | 343,010 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Bespoke Alpha MAC MIM LP(25)
|
| | | | 44,103 | | | | | | — | | | | | | 44,103 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
DS Liquid Div RVA MON LLC(26)
|
| | | | 289,293 | | | | | | — | | | | | | 289,293 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Monashee Pure Alpha SPV I LP(27)
|
| | | | 203,872 | | | | | | — | | | | | | 203,872 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Monashee Solitario Fund LP(28)
|
| | | | 261,511 | | | | | | — | | | | | | 261,511 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
SFL SPV I LLC(29)
|
| | | | 58,211 | | | | | | — | | | | | | 58,211 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Selling Securityholder
|
| |
Shares of
Common Stock Beneficially Owned Prior to Offering |
| |
Warrants
Beneficially Owned Prior to Offering |
| |
Shares of
Common Stock Offered |
| |
Warrants
Offered |
| |
Shares of
Common Stock Beneficially Owned After the Offered Shares are Sold(68) |
| |
%
|
| |
Warrants
Beneficially Owned After the Offered Private Placement Warrants are Sold |
| |
%
|
| ||||||||||||||||||||||||
Nineteen77 Global Multi-Strategy Alpha Master Limited(30)
|
| | | | 461,500 | | | | | | — | | | | | | 461,500 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Nineteen77 Global Merger Arbitrage Opportunity Fund(31)
|
| | | | 77,000 | | | | | | — | | | | | | 77,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Nineteen77 Global Merger Arbitrage Master Limited(32)
|
| | | | 461,500 | | | | | | — | | | | | | 461,500 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Arena Capital Fund, LP – Series 3(33)
|
| | | | 300,000 | | | | | | — | | | | | | 300,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Arena Capital Fund, LP – Series 5(34)
|
| | | | 300,000 | | | | | | — | | | | | | 300,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Arena Capital Fund, LP – Series 6(35)
|
| | | | 300,000 | | | | | | — | | | | | | 300,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Arena Capital Fund, LP – Series 14(36)
|
| | | | 100,000 | | | | | | — | | | | | | 100,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Brookdale Global Opportunity Fund(37)
|
| | | | 370,000 | | | | | | — | | | | | | 370,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Brookdale International Partners,
L.P.(38) |
| | | | 630,000 | | | | | | — | | | | | | 630,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
D. E. Shaw Valence Portfolios, L.L.C.(39)
|
| | | | 600,000 | | | | | | — | | | | | | 600,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
D. E. Shaw Oculus Portfolios, L.L.C.(40)
|
| | | | 200,000 | | | | | | — | | | | | | 200,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Schonfeld Strategic 460 Fund LLC(41)
|
| | | | 750,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Kepos Alpha Master Fund L.P.(42)
|
| | | | 900,000 | | | | | | 150,000 | | | | | | 750,000 | | | | | | — | | | | | | 150,000 | | | | | | * | | | | | | 150,000 | | | | | | * | | |
Marshall Wace Investment Strategies – Market Neutral TOPS Fund(43)
|
| | | | 225,671 | | | | | | 32,154 | | | | | | 193,517 | | | | | | — | | | | | | 32,154 | | | | | | * | | | | | | 32,154 | | | | | | * | | |
Marshall Wace Investment Strategies – Systematic Alpha Plus Fund(44)
|
| | | | 98,991 | | | | | | 20,988 | | | | | | 78,003 | | | | | | — | | | | | | 20,988 | | | | | | * | | | | | | 20,988 | | | | | | * | | |
Marshall Wace Investment Strategies – TOPS Fund(45)
|
| | | | 136,850 | | | | | | 17,952 | | | | | | 118,898 | | | | | | — | | | | | | 17,952 | | | | | | * | | | | | | 17,952 | | | | | | * | | |
Marshall Wace Investment Strategies – Eureka Fund(46)
|
| | | | 414,615 | | | | | | 55,033 | | | | | | 359,582 | | | | | | — | | | | | | 55,033 | | | | | | * | | | | | | 55,033 | | | | | | * | | |
MMF LT, LLC(47)
|
| | | | 750,000 | | | | | | — | | | | | | 750,000 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
K2 PSAM Event Master Fund Ltd.(48)
|
| | | | 77,945 | | | | | | 48,795 | | | | | | 29,150 | | | | | | — | | | | | | 48,795 | | | | | | * | | | | | | 48,795 | | | | | | * | | |
PSAM WorldArb Master Fund Ltd.(49)
|
| | | | 441,067 | | | | | | 229,267 | | | | | | 211,800 | | | | | | — | | | | | | 229,267 | | | | | | * | | | | | | 229,267 | | | | | | * | | |
Lumyna Specialist Funds – Event Alternative Fund(50)
|
| | | | 123,906 | | | | | | 64,806 | | | | | | 59,100 | | | | | | — | | | | | | 64,806 | | | | | | * | | | | | | 64,806 | | | | | | * | | |
Lumyna Funds – Lumyna PSAM Global Event UCITS Fund(51)
|
| | | | 432,360 | | | | | | 232,410 | | | | | | 199,950 | | | | | | — | | | | | | 232,410 | | | | | | * | | | | | | 232,410 | | | | | | * | | |
Glazer Enhanced Fund, L.P.(52)
|
| | | | 129,604 | | | | | | — | | | | | | 129,604 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Glazer Enhanced Offshore Fund, L.P.(52)
|
| | | | 308,559 | | | | | | — | | | | | | 308,559 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Highmark Limited, in respect of its Segregated Account, Highmark
Multi-Strategy 2(52) |
| | | | 61,837 | | | | | | — | | | | | | 61,837 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
More Provident Funds Ltd.(53)
|
| | | | 500,000 | | | | | | — | | | | | | 500,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Ghisallo Master Fund LP(54)
|
| | | | 350,000 | | | | | | — | | | | | | 350,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
VB CAPITAL MANAGEMENT AG(55)
|
| | | | 300,000 | | | | | | — | | | | | | 300,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Selling Securityholder
|
| |
Shares of
Common Stock Beneficially Owned Prior to Offering |
| |
Warrants
Beneficially Owned Prior to Offering |
| |
Shares of
Common Stock Offered |
| |
Warrants
Offered |
| |
Shares of
Common Stock Beneficially Owned After the Offered Shares are Sold(68) |
| |
%
|
| |
Warrants
Beneficially Owned After the Offered Private Placement Warrants are Sold |
| |
%
|
| ||||||||||||||||||||||||
Gundyco ITF The K2 Principal Fund
L.P.(56) |
| | | | 300,000 | | | | | | — | | | | | | 300,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Jane Street Global Trading, LLC(57)
|
| | | | 339,972 | | | | | | 137,972 | | | | | | 200,000 | | | | | | — | | | | | | 137,972 | | | | | | * | | | | | | 137,972 | | | | | | * | | |
Maven Investment Partners US Limited – NY Branch(58)
|
| | | | 100,000 | | | | | | — | | | | | | 100,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Jefferies Financial Group Inc.(59)
|
| | | | 13,175,842 | | | | | | 4,501,066 | | | | | | 13,175,842 | | | | | | 4,501,066 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
TJF, LLC(60)
|
| | | | 8,000,425 | | | | | | 4,000,000 | | | | | | 8,000,425 | | | | | | 4,000,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
CCMP Capital Investors III, L.P. and related investment funds(61)
|
| | | | 71,952,733 | | | | | | — | | | | | | 71,952,733 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Oak Hill Capital Partners and related investment funds(62)
|
| | | | 15,163,940 | | | | | | — | | | | | | 15,163,940 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Aaron Jagdfeld(63)
|
| | | | 214,272 | | | | | | | | | | | | 164,825 | | | | | | — | | | | | | 49,447 | | | | | | * | | | | | | — | | | | | | — | | |
Douglas Cahill(64)
|
| | | | 2,835,362 | | | | | | — | | | | | | 88,299 | | | | | | — | | | | | | 2,747,063 | | | | | | 1.5 | | | | | | — | | | | | | — | | |
Gary Seeds(65)
|
| | | | 494,580 | | | | | | — | | | | | | 235,700 | | | | | | — | | | | | | 258,880 | | | | | | * | | | | | | — | | | | | | — | | |
Jon Michael Adinolfi(66)
|
| | | | 506,713 | | | | | | — | | | | | | 353,220 | | | | | | — | | | | | | 153,493 | | | | | | * | | | | | | — | | | | | | — | | |
Robert Kraft(67)
|
| | | | 425,042 | | | | | | — | | | | | | 82,413 | | | | | | — | | | | | | 342,629 | | | | | | * | | | | | | — | | | | | | — | | |
|
Consolidated Audited Financial Statements for the years ended December 25, 2021, December 26, 2020, and December 28, 2019
|
| ||||||
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| | | | | F-9 | | | |
| Financial Statement Schedule | | | | | | | |
| | | | | F-49 | | |
| /s/ DOUGLAS J. CAHILL | | | /s/ ROBERT O. KRAFT | |
| Douglas J. Cahill | | | Robert O. Kraft | |
| President and Chief Executive Officer | | | Chief Financial Officer | |
| Dated:March 16, 2022 | | | Dated: March 16, 2022 | |
| | |
December 25, 2021
|
| |
December 26, 2020
|
| ||||||
ASSETS
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 14,605 | | | | | $ | 21,520 | | |
Accounts receivable, net of allowances of $2,891 ($2,395 – 2020)
|
| | | | 107,212 | | | | | | 121,228 | | |
Inventories, net
|
| | | | 533,530 | | | | | | 391,679 | | |
Other current assets
|
| | | | 12,962 | | | | | | 19,280 | | |
Total current assets
|
| | | | 668,309 | | | | | | 553,707 | | |
Property and equipment, net of accumulated depreciation of $284,069 ($236,031 – 2020)
|
| | | | 174,312 | | | | | | 182,674 | | |
Goodwill
|
| | | | 825,371 | | | | | | 816,200 | | |
Other intangibles, net of accumulated amortization of $352,695 ($291,434 – 2020)
|
| | | | 794,700 | | | | | | 825,966 | | |
Operating lease right of use assets
|
| | | | 82,269 | | | | | | 76,820 | | |
Deferred tax asset
|
| | | | 1,323 | | | | | | 2,075 | | |
Other assets
|
| | | | 16,638 | | | | | | 11,176 | | |
Total assets
|
| | | $ | 2,562,922 | | | | | $ | 2,468,618 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 186,126 | | | | | $ | 201,461 | | |
Current portion of debt and capital lease obligations
|
| | | | 11,404 | | | | | | 11,481 | | |
Current portion of operating lease liabilities
|
| | | | 13,088 | | | | | | 12,168 | | |
Accrued expenses:
|
| | | | | | | | | | | | |
Salaries and wages
|
| | | | 8,606 | | | | | | 29,800 | | |
Pricing allowances
|
| | | | 10,672 | | | | | | 6,422 | | |
Income and other taxes
|
| | | | 4,829 | | | | | | 5,986 | | |
Interest
|
| | | | 1,519 | | | | | | 12,988 | | |
Other accrued expenses
|
| | | | 41,052 | | | | | | 31,605 | | |
Total current liabilities
|
| | | | 277,296 | | | | | | 311,911 | | |
Long-term debt
|
| | | | 906,531 | | | | | | 1,535,508 | | |
Deferred tax liabilities
|
| | | | 137,764 | | | | | | 156,118 | | |
Operating lease liabilities
|
| | | | 74,476 | | | | | | 68,934 | | |
Other non-current liabilities
|
| | | | 16,760 | | | | | | 31,560 | | |
Total liabilities
|
| | | | 1,412,827 | | | | | | 2,104,031 | | |
Commitments and Contingencies (Note 18)
|
| | | | — | | | | | | — | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Common stock, $0.0001 par, 500,000,000 shares authorized, 194,083,625 issued and 193,995,320 outstanding at December 25, 2021 and 90,934,930 issued and outstanding at December 26, 2020
|
| | | | 20 | | | | | | 9 | | |
Additional paid-in capital
|
| | | | 1,387,410 | | | | | | 565,815 | | |
Accumulated deficit
|
| | | | (210,181) | | | | | | (171,849) | | |
Accumulated other comprehensive loss
|
| | | | (27,154) | | | | | | (29,388) | | |
Total stockholders’ equity
|
| | | | 1,150,095 | | | | | | 364,587 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 2,562,922 | | | | | $ | 2,468,618 | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |||||||||
Net sales
|
| | | $ | 1,425,967 | | | | | $ | 1,368,295 | | | | | $ | 1,214,362 | | |
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
| | | | 859,557 | | | | | | 781,815 | | | | | | 693,881 | | |
Selling, general and administrative expenses
|
| | | | 437,875 | | | | | | 398,472 | | | | | | 382,131 | | |
Depreciation
|
| | | | 59,400 | | | | | | 67,423 | | | | | | 65,658 | | |
Amortization
|
| | | | 61,329 | | | | | | 59,492 | | | | | | 58,910 | | |
Management fees to related party
|
| | | | 270 | | | | | | 577 | | | | | | 562 | | |
Other (income) expense
|
| | | | (2,778) | | | | | | (5,250) | | | | | | 5,525 | | |
Income from operations
|
| | | | 10,314 | | | | | | 65,766 | | | | | | 7,695 | | |
Gain on change in fair value of warrant liability
|
| | | | (14,734) | | | | | | — | | | | | | — | | |
Interest expense, net
|
| | | | 61,237 | | | | | | 86,774 | | | | | | 101,613 | | |
Interest expense on junior subordinated debentures
|
| | | | 7,775 | | | | | | 12,707 | | | | | | 12,608 | | |
Investment income on trust common securities
|
| | | | (233) | | | | | | (378) | | | | | | (378) | | |
Loss (income) on mark-to-market adjustment of interest rate
swap |
| | | | (1,685) | | | | | | 601 | | | | | | 2,608 | | |
Refinancing costs
|
| | | | 8,070 | | | | | | — | | | | | | — | | |
Loss before income taxes
|
| | | | (50,116) | | | | | | (33,938) | | | | | | (108,756) | | |
Income tax benefit
|
| | | | (11,784) | | | | | | (9,439) | | | | | | (23,277) | | |
Net loss
|
| | | $ | (38,332) | | | | | $ | (24,499) | | | | | $ | (85,479) | | |
Basic and diluted loss per share
|
| | | $ | (0.28) | | | | | $ | (0.27) | | | | | $ | (0.96) | | |
Weighted average basic and diluted shares outstanding
|
| | | | 134,699 | | | | | | 89,891 | | | | | | 89,444 | | |
Net loss from above
|
| | | $ | (38,332) | | | | | $ | (24,499) | | | | | $ | (85,479) | | |
Other comprehensive income: | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | (283) | | | | | | 2,652 | | | | | | 5,550 | | |
Hedging activity
|
| | | | 2,517 | | | | | | — | | | | | | — | | |
Total other comprehensive income
|
| | | | 2,234 | | | | | | 2,652 | | | | | | 5,550 | | |
Comprehensive loss
|
| | | $ | (36,098) | | | | | $ | (21,847) | | | | | $ | (79,929) | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (38,332) | | | | | $ | (24,499) | | | | | $ | (85,479) | | |
Adjustments to reconcile net loss to net cash (used for) provided by operating activities:
|
| | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 120,730 | | | | | | 126,915 | | | | | | 124,568 | | |
Loss (gain) on dispositions of property and equipment
|
| | | | 221 | | | | | | 161 | | | | | | (573) | | |
Impairment of long lived assets
|
| | | | — | | | | | | 210 | | | | | | 7,887 | | |
Deferred income taxes
|
| | | | (21,846) | | | | | | (9,462) | | | | | | (23,586) | | |
Deferred financing and original issue discount amortization
|
| | | | 4,336 | | | | | | 3,722 | | | | | | 3,726 | | |
Loss on debt restructuring, net of third party fees paid
|
| | | | (8,372) | | | | | | — | | | | | | — | | |
Stock-based compensation expense
|
| | | | 15,255 | | | | | | 5,125 | | | | | | 2,981 | | |
Change in fair value of warrant liabilities
|
| | | | (14,734) | | | | | | — | | | | | | — | | |
Change in fair value of contingent consideration
|
| | | | (1,806) | | | | | | (3,515) | | | | | | — | | |
Other non-cash interest and change in value of interest rate
swap |
| | | | (1,685) | | | | | | 601 | | | | | | 2,608 | | |
Changes in operating items:
|
| | | | | | | | | | | | | | | | | | |
Accounts receivable
|
| | | | 15,148 | | | | | | (32,417) | | | | | | 22,863 | | |
Inventories
|
| | | | (137,849) | | | | | | (67,147) | | | | | | (3,205) | | |
Other assets
|
| | | | 3,064 | | | | | | (10,743) | | | | | | 2,878 | | |
Accounts payable
|
| | | | (20,253) | | | | | | 76,031 | | | | | | (11,975) | | |
Other accrued liabilities
|
| | | | (24,131) | | | | | | 27,098 | | | | | | 9,666 | | |
Net cash (used for) provided by operating activities
|
| | | | (110,254) | | | | | | 92,080 | | | | | | 52,359 | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
Acquisitions of businesses, net of cash acquired
|
| | | | (38,902) | | | | | | (800) | | | | | | (6,135) | | |
Capital expenditures
|
| | | | (51,552) | | | | | | (45,274) | | | | | | (57,753) | | |
Proceeds from sale of property and equipment
|
| | | | — | | | | | | — | | | | | | 10,400 | | |
Net cash (used for) investing activities
|
| | | | (90,454) | | | | | | (46,074) | | | | | | (53,488) | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Borrowings on senior term loans, net of discount
|
| | | | 883,872 | | | | | | — | | | | | | — | | |
Repayments of senior term loans
|
| | | | (1,072,042) | | | | | | (10,608) | | | | | | (10,608) | | |
Borrowings of revolving credit loans
|
| | | | 322,000 | | | | | | 99,000 | | | | | | 43,500 | | |
Repayments of revolving credit loans
|
| | | | (301,000) | | | | | | (140,000) | | | | | | (38,700) | | |
Repayments of senior notes
|
| | | | (330,000) | | | | | | — | | | | | | — | | |
Financing fees
|
| | | | (20,988) | | | | | | — | | | | | | (1,412) | | |
Proceeds from recapitalization of Landcadia, net of transaction
costs |
| | | | 455,161 | | | | | | — | | | | | | — | | |
Proceeds from sale of common stock in PIPE, net of issuance
costs |
| | | | 363,301 | | | | |
|
—
|
| | | |
|
—
|
| |
Repayment of Junior Subordinated Debentures
|
| | | | (108,707) | | | | |
|
—
|
| | | |
|
—
|
| |
Principal payments under capitalized lease obligations
|
| | | | (938) | | | | | | (836) | | | | | | (683) | | |
Proceeds from exercise of stock options
|
| | | | 2,670 | | | | | | 7,340 | | | | | | 100 | | |
Proceeds from sale of Holdco stock
|
| | | | — | | | | | | — | | | | | | 750 | | |
Net cash provided by (used for) financing activities
|
| | | | 193,329 | | | | | | (45,104) | | | | | | (7,053) | | |
Effect of exchange rate changes on cash
|
| | | | 464 | | | | | | 645 | | | | | | (79) | | |
Net (decrease) increase in cash and cash equivalents
|
| | | | (6,915) | | | | | | 1,547 | | | | | | (8,261) | | |
Cash and cash equivalents at beginning of period
|
| | | | 21,520 | | | | | | 19,973 | | | | | | 28,234 | | |
Cash and cash equivalents at end of period
|
| | | $ | 14,605 | | | | | $ | 21,520 | | | | | $ | 19,973 | | |
| | |
Common Stock
|
| |
Treasury Stock
|
| |
Additional
Paid-in Capital |
| |
Retained
Earnings (Accumulated Deficit) |
| |
Accumulated
Other Comprehensive (Loss) |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance at December 29, 2018
|
| | | | 547,129 | | | | | $ | 5 | | | | | | (4,740) | | | | | $ | (4,320) | | | | | $ | 553,843 | | | | | $ | (61,871) | | | | | $ | (37,590) | | | | | $ | 450,067 | | |
Retroactive application of
recapitalization |
| | | | 88,852,377 | | | | | | 4 | | | | | | 4,740 | | | | | | 4,320 | | | | | | (4,324) | | | | | | — | | | | | | — | | | | | | — | | |
Balance at December 29, 2018 – Recast
|
| | | | 89,399,506 | | | | | | 9 | | | | | | — | | | | | | — | | | | | | 549,519 | | | | | | (61,871) | | | | | | (37,590) | | | | | | 450,067 | | |
Net Loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (85,479) | | | | | | — | | | | | | (85,479) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,981 | | | | | | — | | | | | | — | | | | | | 2,981 | | |
Proceeds from exercise of stock
options |
| | | | 16,483 | | | | | | — | | | | | | — | | | | | | — | | | | | | 100 | | | | | | — | | | | | | — | | | | | | 100 | | |
Proceeds from sale of stock
|
| | | | 88,299 | | | | | | — | | | | | | — | | | | | | — | | | | | | 750 | | | | | | — | | | | | | — | | | | | | 750 | | |
Vesting of restricted shares
|
| | | | 45,327 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Change in cumulative foreign currency translation adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,550 | | | | | | 5,550 | | |
Balance at December 28, 2019
|
| | | | 89,549,615 | | | | | $ | 9 | | | | | | — | | | | | $ | — | | | | | $ | 553,350 | | | | | $ | (147,350) | | | | | $ | (32,040) | | | | | $ | 373,969 | | |
Net Loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (24,499) | | | | | | — | | | | | | (24,499) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,125 | | | | | | — | | | | | | — | | | | | | 5,125 | | |
Proceeds from exercise of stock
options |
| | | | 1,208,705 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,340 | | | | | | — | | | | | | — | | | | | | 7,340 | | |
Vesting of restricted shares
|
| | | | 176,610 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Change in cumulative foreign currency translation adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,652 | | | | | | 2,652 | | |
Balance at December 26, 2020
|
| | | | 90,934,930 | | | | | $ | 9 | | | | | | — | | | | | $ | — | | | | | $ | 565,815 | | | | | $ | (171,849) | | | | | $ | (29,388) | | | | | $ | 364,587 | | |
Net Loss
|
| | | | — | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | (38,332) | | | | | | — | | | | | | (38,332) | | |
Stock-based compensation
|
| | | | — | | | | | | | | | | | | | | | | | | | | | | | | 15,255 | | | | | | — | | | | | | — | | | | | | 15,255 | | |
Proceeds from exercise of stock
options |
| | | | 435,107 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,670 | | | | | | — | | | | | | — | | | | | | 2,670 | | |
Vesting of restricted shares
|
| | | | 88,305 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Recapitalization of Landcadia, net of
issuance costs and fair value of of assets and liabilities acquired |
| | | | 58,672,000 | | | | | | 6 | | | | | | — | | | | | | — | | | | | | 377,959 | | | | | | — | | | | | | — | | | | | | 377,965 | | |
Shares issued to PIPE, net of issuance costs
|
| | | | 37,500,000 | | | | | | 4 | | | | | | — | | | | | | — | | | | | | 363,297 | | | | | | — | | | | | | — | | | | | | 363,301 | | |
Hedging activity
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,517 | | | | | | 2,517 | | |
Warrant redemption
|
| | | | 6,364,978 | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 62,414 | | | | | | — | | | | | | — | | | | | | 62,415 | | |
Change in cumulative foreign currency translation adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (283) | | | | | | (283) | | |
Balance at December 25, 2021
|
| | | | 193,995,320 | | | | | $ | 20 | | | | | | — | | | | | $ | — | | | | | $ | 1,387,410 | | | | | $ | (210,181) | | | | | $ | (27,154) | | | | | $ | 1,150,095 | | |
| | |
Estimated
Useful Life (Years) |
| |
2021
|
| |
2020
|
| ||||||
Leasehold improvements
|
| |
life of lease
|
| | | | 11,773 | | | | | | 11,506 | | |
Machinery and equipment
|
| |
2 – 10
|
| | | | 366,198 | | | | | | 334,643 | | |
Computer equipment and software
|
| |
2 – 5
|
| | | | 64,648 | | | | | | 61,737 | | |
Furniture and fixtures
|
| |
6 – 8
|
| | | | 5,390 | | | | | | 5,467 | | |
Construction in process
|
| | | | | | | 10,372 | | | | | | 5,352 | | |
Property and equipment, gross
|
| | | | | | | 458,381 | | | | | | 418,705 | | |
Less: Accumulated depreciation
|
| | | | | | | 284,069 | | | | | | 236,031 | | |
Property and equipment, net
|
| | | | | | $ | 174,312 | | | | | $ | 182,674 | | |
| | |
Goodwill at
December 26, 2020 |
| |
Acquisitions
|
| |
Disposals
|
| |
Other(1)
|
| |
Goodwill at
December 25, 2021 |
| |||||||||||||||
Hardware and Protective Solutions
|
| | | $ | 565,578 | | | | | $ | 9,250 | | | | | $ | — | | | | | $ | (130) | | | | | $ | 574,698 | | |
Robotics and Digital Solutions
|
| | | | 220,936 | | | | | | — | | | | | | — | | | | | | — | | | | | | 220,936 | | |
Canada
|
| | | | 29,686 | | | | | | — | | | | | | — | | | | | | 51 | | | | | | 29,737 | | |
Total
|
| | | $ | 816,200 | | | | | $ | 9,250 | | | | | $ | — | | | | | $ | (79) | | | | | $ | 825,371 | | |
| | |
Estimated
Useful Life (Years) |
| |
December 25, 2021
|
| |
December 26, 2020
|
| ||||||
Customer relationships
|
| |
13 – 20
|
| | | $ | 965,054 | | | | | $ | 941,648 | | |
Trademarks – indefinite
|
| |
Indefinite
|
| | | | 85,591 | | | | | | 85,603 | | |
Trademarks – other
|
| |
7 – 15
|
| | | | 29,000 | | | | | | 26,400 | | |
Technology and patents
|
| |
8 – 12
|
| | | | 67,750 | | | | | | 63,749 | | |
Intangible assets, gross
|
| | | | | | | 1,147,395 | | | | | | 1,117,400 | | |
Less: Accumulated amortization
|
| | | | | | | 352,695 | | | | | | 291,434 | | |
Intangible assets, net
|
| | | | | | $ | 794,700 | | | | | $ | 825,966 | | |
Fiscal Year Ended
|
| |
Amortization
Expense |
| |||
2022
|
| | | $ | 61,697 | | |
2023
|
| | | $ | 61,697 | | |
2024
|
| | | $ | 61,697 | | |
2025
|
| | | $ | 61,217 | | |
Fiscal Year Ended
|
| |
Amortization
Expense |
| |||
2026
|
| | | $ | 56,812 | | |
| | |
Hardware and
Protective Solutions |
| |
Robotics and
Digital Solutions |
| |
Canada
|
| |
Total Revenue
|
| ||||||||||||
Year Ended December 25, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Fastening and Hardware
|
| | | $ | 740,088 | | | | | $ | — | | | | | $ | 149,165 | | | | | $ | 889,253 | | |
Personal Protective
|
| | | | 284,886 | | | | | | — | | | | | | 397 | | | | | | 285,283 | | |
Keys and Key Accessories
|
| | | | — | | | | | | 190,697 | | | | | | 1,826 | | | | | | 192,523 | | |
Engraving
|
| | | | — | | | | | | 58,555 | | | | | | 77 | | | | | | 58,632 | | |
Resharp
|
| | | | — | | | | | | 276 | | | | | | — | | | | | | 276 | | |
Consolidated
|
| | | $ | 1,024,974 | | | | | $ | 249,528 | | | | | $ | 151,465 | | | | | $ | 1,425,967 | | |
Year Ended December 26, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Fastening and Hardware
|
| | | $ | 706,865 | | | | | $ | — | | | | | $ | 131,493 | | | | | $ | 838,358 | | |
Personal Protective
|
| | | | 317,527 | | | | | | — | | | | | | 239 | | | | | | 317,766 | | |
Keys and Key Accessories
|
| | | | — | | | | | | 157,828 | | | | | | 2,878 | | | | | | 160,706 | | |
Engraving
|
| | | | — | | | | | | 51,423 | | | | | | 6 | | | | | | 51,429 | | |
Resharp
|
| | | | — | | | | | | 36 | | | | | | — | | | | | | 36 | | |
Consolidated
|
| | | $ | 1,024,392 | | | | | $ | 209,287 | | | | | $ | 134,616 | | | | | $ | 1,368,295 | | |
Year Ended December 28, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Fastening and Hardware
|
| | | $ | 607,247 | | | | | $ | — | | | | | $ | 121,242 | | | | | $ | 728,489 | | |
Personal Protective
|
| | | | 245,769 | | | | | | — | | | | | | — | | | | | | 245,769 | | |
Keys and Key Accessories
|
| | | | — | | | | | | 185,451 | | | | | | 4,009 | | | | | | 189,460 | | |
Engraving
|
| | | | — | | | | | | 50,613 | | | | | | 9 | | | | | | 50,622 | | |
Resharp
|
| | | | — | | | | | | 22 | | | | | | — | | | | | | 22 | | |
Consolidated
|
| | | $ | 853,016 | | | | | $ | 236,086 | | | | | $ | 125,260 | | | | | $ | 1,214,362 | | |
| | |
Hardware and
Protective Solutions |
| |
Robotics and
Digital Solutions |
| |
Canada
|
| |
Total Revenue
|
| ||||||||||||
Year Ended December 25, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
United States
|
| | | $ | 1,004,803 | | | | | $ | 246,494 | | | | | $ | — | | | | | $ | 1,251,297 | | |
Canada
|
| | | | 7,326 | | | | | | 3,034 | | | | | | 151,465 | | | | | | 161,825 | | |
Mexico
|
| | | | 12,845 | | | | | | — | | | | | | — | | | | | | 12,845 | | |
Consolidated
|
| | | $ | 1,024,974 | | | | | $ | 249,528 | | | | | $ | 151,465 | | | | | $ | 1,425,967 | | |
Year Ended December 26, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
United States
|
| | | $ | 1,007,135 | | | | | $ | 207,283 | | | | | $ | — | | | | | $ | 1,214,418 | | |
Canada
|
| | | | 7,789 | | | | | | 2,004 | | | | | | 134,616 | | | | | | 144,409 | | |
Mexico
|
| | | | 9,468 | | | | | | — | | | | | | — | | | | | | 9,468 | | |
Consolidated
|
| | | $ | 1,024,392 | | | | | $ | 209,287 | | | | | $ | 134,616 | | | | | $ | 1,368,295 | | |
Year Ended December 28, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
United States
|
| | | $ | 835,957 | | | | | $ | 234,216 | | | | | $ | — | | | | | $ | 1,070,173 | | |
Canada
|
| | | | 5,905 | | | | | | 1,870 | | | | | | 125,260 | | | | | | 133,035 | | |
Mexico
|
| | | | 11,154 | | | | | | — | | | | | | — | | | | | | 11,154 | | |
Consolidated
|
| | | $ | 853,016 | | | | | $ | 236,086 | | | | | $ | 125,260 | | | | | $ | 1,214,362 | | |
|
Landcadia cash and cash equivalents(1)
|
| | | $ | 479,602 | | |
|
PIPE investment proceeds(2)
|
| | | | 375,000 | | |
|
Less cash paid to underwriters and other transaction costs, net of tax(3)
|
| | | | (36,140) | | |
|
Net change in cash and cash equivalents as a result of recapitalization
|
| | | $ | 818,462 | | |
|
Prepaid expenses and other current assets(1)
|
| | | | 132 | | |
|
Accounts payable and other accrued expenses(1)
|
| | | | (81) | | |
|
Warrant liabilities(1)(4)
|
| | | | (77,190) | | |
|
Change in net assets as a result of recapitalization
|
| | | $ | 741,323 | | |
|
|
Common shares issued to new Hillman shareholders(5)
|
| | | | 91,220,901 | | |
|
Shares issued to SPAC sponsors and public shareholders(6)
|
| | | | 58,672,000 | | |
|
Common shares issued to PIPE investors(2)
|
| | | | 37,500,000 | | |
|
Common shares outstanding immediately after the business combination
|
| | | | 187,392,901 | | |
|
Accounts receivable
|
| | | $ | 1,143 | | |
|
Inventory
|
| | | | 3,564 | | |
|
Other current assets
|
| | | | 24 | | |
|
Property and equipment
|
| | | | 595 | | |
|
Goodwill
|
| | | | 9,250 | | |
|
Customer relationships
|
| | | | 23,500 | | |
|
Trade names
|
| | | | 2,600 | | |
|
Technology
|
| | | | 4,000 | | |
|
Total assets acquired
|
| | | $ | 44,676 | | |
| Less: | | | | | | | |
|
Liabilities assumed
|
| | | | (5,774) | | |
|
Total purchase price
|
| | | $ | 38,902 | | |
|
Property and equipment
|
| | | $ | 218 | | |
|
Goodwill
|
| | | | 9,382 | | |
|
Technology
|
| | | | 11,500 | | |
|
Total assets acquired
|
| | | $ | 21,100 | | |
| Less: | | | | | | | |
|
Contingent consideration payable
|
| | | | (18,100) | | |
|
Net cash paid
|
| | | $ | 3,000 | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |||||||||
United States based operations
|
| | | $ | (56,597) | | | | | $ | (30,083) | | | | | $ | (101,197) | | |
Non-United States based operations
|
| | | | 6,481 | | | | | | (3,855) | | | | | | (7,559) | | |
Loss before income taxes
|
| | | $ | (50,116) | | | | | $ | (33,938) | | | | | $ | (108,756) | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |||||||||
Current: | | | | | | | | | | | | | | | | | | | |
Federal & State
|
| | | $ | 894 | | | | | $ | 629 | | | | | $ | 1,235 | | |
Foreign
|
| | | | 746 | | | | | | (49) | | | | | | 611 | | |
Total current
|
| | | | 1,640 | | | | | | 580 | | | | | | 1,846 | | |
Deferred: | | | | | | | | | | | | | | | | | | | |
Federal & State
|
| | | | (13,651) | | | | | | (7,625) | | | | | | (23,333) | | |
Foreign
|
| | | | 664 | | | | | | (1,356) | | | | | | (2,625) | | |
Total deferred
|
| | | | (12,987) | | | | | | (8,981) | | | | | | (25,958) | | |
Valuation allowance
|
| | | | (437) | | | | | | (1,038) | | | | | | 835 | | |
Income tax benefit
|
| | | $ | (11,784) | | | | | $ | (9,439) | | | | | $ | (23,277) | | |
| | |
December 25, 2021
|
| |
December 26, 2020
|
| ||||||
| | |
Non-current
|
| |
Non-current
|
| ||||||
Deferred Tax Asset: | | | | | | | | | | | | | |
Inventory
|
| | | $ | 17,590 | | | | | $ | 11,423 | | |
Bad debt and other sales related reserves
|
| | | | 2,029 | | | | | | 1,497 | | |
Casualty loss reserve
|
| | | | 685 | | | | | | 279 | | |
Accrued bonus / deferred compensation
|
| | | | 3,778 | | | | | | 7,411 | | |
Deferred social security (CARES Act)
|
| | | | 899 | | | | | | 1,798 | | |
Interest limitation
|
| | | | 30,094 | | | | | | 21,011 | | |
Lease liabilities
|
| | | | 23,008 | | | | | | 21,241 | | |
Deferred revenue – shipping terms
|
| | | | 320 | | | | | | 315 | | |
Original issue discount amortization
|
| | | | — | | | | | | 3,078 | | |
Transaction costs
|
| | | | 2,218 | | | | | | 3,061 | | |
Federal / foreign net operating loss
|
| | | | 31,217 | | | | | | 36,217 | | |
State net operating loss
|
| | | | 4,123 | | | | | | 3,806 | | |
Tax credit carryforwards
|
| | | | 2,400 | | | | | | 2,150 | | |
All other
|
| | | | 1,233 | | | | | | 1,481 | | |
Gross deferred tax assets
|
| | | | 119,594 | | | | | | 114,768 | | |
Valuation allowance for deferred tax assets
|
| | | | (1,034) | | | | | | (1,471) | | |
Net deferred tax assets
|
| | | $ | 118,560 | | | | | $ | 113,297 | | |
Deferred Tax Liability: | | | | | | | | | | | | | |
Intangible asset amortization
|
| | | $ | 205,328 | | | | | $ | 216,354 | | |
Property and equipment
|
| | | | 27,722 | | | | | | 29,901 | | |
Lease assets
|
| | | | 21,446 | | | | | | 20,598 | | |
All other items
|
| | | | 505 | | | | | | 487 | | |
Deferred tax liabilities
|
| | | $ | 255,001 | | | | | $ | 267,340 | | |
Net deferred tax liability
|
| | | $ | 136,441 | | | | | $ | 154,043 | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 As Restated |
| |||||||||
Statutory federal income tax rate
|
| | | | 21.0% | | | | | | 21.0% | | | | | | 21.0% | | |
Non-U.S. taxes and the impact of non-U.S. losses for which a current tax benefit is not available
|
| | | | (1.3)% | | | | | | 0.6% | | | | | | 0.4% | | |
State and local income taxes, net of U.S. federal
income tax benefit |
| | | | 2.9% | | | | | | 5.7% | | | | | | 3.0% | | |
Change in valuation allowance
|
| | | | 0.9% | | | | | | 1.6% | | | | | | (1.2)% | | |
Permanent differences: | | | | | | | | | | | | | | | | | | | |
Acquisition and related transaction costs
|
| | | | (2.2)% | | | | | | —% | | | | | | —% | | |
Decrease in fair value of warrant liability
|
| | | | 6.2% | | | | | | —% | | | | | | —% | | |
Reconciliation of tax provision to return
|
| | | | (1.7)% | | | | | | 0.6% | | | | | | (0.5)% | | |
Non-deductible compensation
|
| | | | (1.9)% | | | | | | (1.0)% | | | | | | (0.7)% | | |
Reconciliation of other adjustments
|
| | | | (0.4)% | | | | | | (0.7)% | | | | | | (0.6)% | | |
Effective income tax rate
|
| | | | 23.5% | | | | | | 27.8% | | | | | | 21.4% | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |||||||||
Unrecognized tax benefits – beginning
balance |
| | | $ | 1,101 | | | | | $ | 1,101 | | | | | $ | 1,101 | | |
Gross increases – tax positions in current
period |
| | | | — | | | | | | — | | | | | | — | | |
Gross increases – tax positions in prior period
|
| | | | — | | | | | | — | | | | | | — | | |
Gross decreases – tax positions in prior
period |
| | | | — | | | | | | — | | | | | | — | | |
Unrecognized tax benefits – ending balance
|
| | | $ | 1,101 | | | | | $ | 1,101 | | | | | $ | 1,101 | | |
Amount of unrecognized tax benefit that, if recognized would affect the Company’s effective tax rate
|
| | | $ | 1,101 | | | | | $ | 1,101 | | | | | $ | 1,101 | | |
| | |
Public
Warrants |
| |
Private
Warrants |
| |
Total
|
| |||||||||
Beginning balance as of July, 14 2021
|
| | | | 16,666,628 | | | | | | 8,000,000 | | | | | | 24,666,628 | | |
Shares issued for cash exercises
|
| | | | (666) | | | | | | — | | | | | | (666) | | |
Shares issued for cashless exercises
|
| | | | (16,199,169) | | | | | | (8,000,000) | | | | | | (24,199,169) | | |
Shares redeemed by the Company
|
| | | | (466,793) | | | | | | — | | | | | | (466,793) | | |
Ending balance as of December 25, 2021
|
| | | | — | | | | | | — | | | | | | — | | |
| | |
December 25, 2021
|
| |
December 26, 2020
|
| ||||||
Revolving loans
|
| | | $ | 93,000 | | | | | $ | 72,000 | | |
Senior Term Loan, due 2025
|
| | | | — | | | | | | 1,037,044 | | |
Senior Term Loan, due 2028
|
| | | | 851,000 | | | | | | — | | |
6.375% Senior Notes, due 2022
|
| | | | — | | | | | | 330,000 | | |
11.6% Junior Subordinated Debentures – Preferred
|
| | | | — | | | | | | 105,443 | | |
Junior Subordinated Debentures – Common
|
| | | | — | | | | | | 3,261 | | |
Finance leases & other obligations
|
| | | | 1,782 | | | | | | 2,044 | | |
| | | | | 945,782 | | | | | | 1,549,792 | | |
Unamortized premium on 11.6% Junior Subordinated Debentures
|
| | | | — | | | | | | 14,591 | | |
Unamortized discount on Senior Term Loan
|
| | | | (5,948) | | | | | | (6,532) | | |
Current portion of long term debt and capital leases
|
| | | | (11,404) | | | | | | (11,481) | | |
Deferred financing fees
|
| | | | (21,899) | | | | | | (10,862) | | |
Total long term debt, net
|
| | | $ | 906,531 | | | | | $ | 1,535,508 | | |
| | |
Loss (gain) on
extinguishment of debt |
| |||
Term Credit Agreement
|
| | | $ | 20,243 | | |
ABL Revolver
|
| | | | 288 | | |
6.375% Senior Notes, due 2022
|
| | | | 1,083 | | |
11.6% Junior Subordinated Debentures
|
| | | | (13,603) | | |
Interest rate swaps
|
| | | | 59 | | |
Total
|
| | | $ | 8,070 | | |
Year
|
| |
Amount
|
| |||
2022
|
| | | $ | 10,638 | | |
2023
|
| | | | 8,510 | | |
2024
|
| | | | 8,510 | | |
2025
|
| | | | 8,510 | | |
2026
|
| | | | 8,510 | | |
Thereafter
|
| | | | 806,322 | | |
| | | | $ | 851,000 | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| ||||||
Operating lease cost
|
| | | $ | 20,860 | | | | | $ | 19,189 | | |
Short term lease costs
|
| | | | 4,827 | | | | | | 2,404 | | |
Variable lease costs
|
| | | | 1,496 | | | | | | 898 | | |
Finance lease cost: | | | | | | | | | | | | | |
Amortization of right of use assets
|
| | | | 914 | | | | | | 813 | | |
Interest on lease liabilities
|
| | | | 123 | | | | | | 143 | | |
| | |
December 25, 2021
|
| |
December 26, 2020
|
| ||||||||||||||||||
| | |
Operating Leases
|
| |
Finance Leases
|
| |
Operating Leases
|
| |
Finance Leases
|
| ||||||||||||
Weighted average remaining lease term
|
| | | | 6.60 | | | | | | 2.60 | | | | | | 7.19 | | | | | | 2.61 | | |
Weighted average discount rate
|
| | | | 7.88% | | | | | | 5.59% | | | | | | 8.28% | | | | | | 7.14% | | |
| | |
December 25, 2021
|
| |
December 26, 2020
|
| ||||||
Finance lease assets, net, included in property plant and equipment
|
| | | $ | 1,768 | | | | | $ | 1,919 | | |
Current portion of long-term debt
|
| | | | 767 | | | | | | 872 | | |
Long-term debt, less current portion
|
| | | | 1,015 | | | | | | 1,172 | | |
Total principal payable on finance leases
|
| | | $ | 1,782 | | | | | $ | 2,044 | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| ||||||
Cash paid for amounts included in the measurement of lease liabilities:
|
| | | | | | | | | | | | |
Operating cash outflow from operating leases
|
| | | $ | 19,767 | | | | | $ | 18,641 | | |
Operating cash outflow from finance leases
|
| | | | 127 | | | | | | 143 | | |
Financing cash outflow from finance leases
|
| | | | 938 | | | | | | 836 | | |
| | |
Operating Leases
|
| |
Finance Leases
|
| ||||||
Less than one year
|
| | | $ | 19,192 | | | | | $ | 922 | | |
1 to 2 years
|
| | | | 17,224 | | | | | | 632 | | |
2 to 3 years
|
| | | | 16,058 | | | | | | 315 | | |
3 to 4 years
|
| | | | 15,349 | | | | | | 92 | | |
4 to 5 years
|
| | | | 14,582 | | | | | | 41 | | |
After 5 years
|
| | | | 29,649 | | | | | | — | | |
Total future minimum rental commitments
|
| | | | 112,054 | | | | | | 2,002 | | |
Less – amounts representing interest
|
| | | | (24,490) | | | | | | (220) | | |
Present value of lease liabilities
|
| | | $ | 87,564 | | | | | $ | 1,782 | | |
| | |
Foreign Currency
Translation |
| |||
Balance at December 29, 2018
|
| | | $ | (37,590) | | |
Other comprehensive income before reclassifications
|
| | | | 5,533 | | |
Amounts reclassified from other comprehensive income(1)
|
| | | | 17 | | |
Net current period other comprehensive loss
|
| | | | 5,550 | | |
Balance at December 28, 2019
|
| | | | (32,040) | | |
Other comprehensive income before reclassifications
|
| | | | 2,652 | | |
Amounts reclassified from other comprehensive income(2)
|
| | | | — | | |
Net current period other comprehensive income
|
| | | | 2,652 | | |
Balance at December 26, 2020
|
| | | | (29,388) | | |
Other comprehensive loss before reclassifications
|
| | | | 1,849 | | |
Amounts reclassified from other comprehensive income(3)
|
| | | | 385 | | |
Net current period other comprehensive income
|
| | | | 2,234 | | |
Balance at December 25, 2021
|
| | | $ | (27,154) | | |
|
Dividend yield
|
| |
0%
|
|
|
Risk free interest rate
|
| |
0.40% – 1.81%
|
|
|
Expected volatility
|
| |
31.50%
|
|
|
Expected terms
|
| |
6.25 years
|
|
| | |
Number of Shares
|
| |
Weighted Avg.
Exercise Price per Share (in whole dollars) |
| |
Weighted Avg.
Remaining Contractual Term |
| ||||||
Outstanding at December 26, 2020
|
| | | | 12,749 | | | | | $ | 7.66 | | | |
8.0 years
|
|
Granted
|
| | | | 2,348 | | | | | | | | | | | |
Exercised
|
| | | | (435) | | | | | | | | | | | |
Forfeited or expired
|
| | | | (1,186) | | | | | | | | | |
|
|
Outstanding at December 25, 2021
|
| | | | 13,476 | | | | | $ | 8.15 | | | |
7.14 years
|
|
Exercisable at December 25, 2021
|
| | | | 4,954 | | | | | $ | 7.76 | | | |
6.63 years
|
|
| | |
Number of Shares
|
| |
Weighted Avg.
Grant Date Fair Value (in whole dollars) |
| ||||||
Unvested at December 26, 2020
|
| | | | 177 | | | | | $ | 7.09 | | |
Awarded
|
| | | | — | | | | | | | | |
Vested
|
| | | | (88) | | | | | | | | |
Forfeited or expired
|
| | | | — | | | | | | | | |
Unvested at December 25, 2021
|
| | | | 89 | | | | | $ | 7.09 | | |
| | |
Number of Shares
|
| |
Weighted Avg.
Grant Date Fair Value (in whole dollars) |
| ||||||
Outstanding at December 26, 2020
|
| | | | — | | | | | $ | — | | |
Granted
|
| | | | 323 | | | | | $ | 10.00 | | |
Exercised
|
| | | | — | | | | | | | | |
Forfeited or expired
|
| | | | — | | | | | | | | |
Outstanding at December 25, 2021
|
| | | | 323 | | | | | $ | 10.00 | | |
| | |
Number of Shares
|
| |
Weighted Avg.
Grant Date Fair Value (in whole dollars) |
| ||||||
Outstanding at December 26, 2020
|
| | | | | | | | | $ | — | | |
Granted
|
| | | | 73 | | | | | | 11.75 | | |
Exercised
|
| | | | — | | | | | | | | |
Forfeited or expired
|
| | | | — | | | | | | | | |
Outstanding at December 25, 2021
|
| | | | 73 | | | | | $ | 11.75 | | |
| | |
Year Ended December 25, 2021
|
| |||||||||||||||
| | |
Earnings
(Numerator) |
| |
Shares
(Denominator) |
| |
Per Share
Amount |
| |||||||||
Net loss
|
| | | $ | (38,332) | | | | | | 134,699 | | | | | $ | (0.28) | | |
Dilutive effect of stock options and awards
|
| | | | — | | | | | | — | | | | | | — | | |
Dilutive effect of warrants
|
| | | | — | | | | | | — | | | | | | — | | |
Net loss per diluted common share
|
| | | $ | (38,332) | | | | | | 134,699 | | | | | $ | (0.28) | | |
| | |
Year Ended December 26, 2020
|
| |||||||||||||||
| | |
Earnings
(Numerator) |
| |
Shares
(Denominator) |
| |
Per Share
Amount |
| |||||||||
Net loss
|
| | | $ | (24,499) | | | | | | 89,891 | | | | | $ | (0.27) | | |
Dilutive effect of stock options and awards
|
| | | | — | | | | | | — | | | | | | — | | |
Dilutive effect of warrants
|
| | | | — | | | | | | — | | | | | | — | | |
Net loss per diluted common share
|
| | | $ | (24,499) | | | | | | 89,891 | | | | | $ | (0.27) | | |
| | |
Year Ended December 28, 2019
|
| |||||||||||||||
| | |
Earnings
(Numerator) |
| |
Shares
(Denominator) |
| |
Per Share
Amount |
| |||||||||
Net loss
|
| | | $ | (85,479) | | | | | | 89,444 | | | | | $ | (0.96) | | |
Dilutive effect of stock options and awards
|
| | | | — | | | | | | — | | | | | | — | | |
Dilutive effect of warrants
|
| | | | — | | | | | | — | | | | | | — | | |
Net loss per diluted common share
|
| | | $ | (85,479) | | | | | | 89,444 | | | | | $ | (0.96) | | |
| | |
Asset Derivatives
|
| |
Liability Derivatives
|
| |||||||||||||||||||||
| | |
As of
December 25, 2021 |
| |
As of
December 25, 2021 |
| |
As of
December 26, 2020 |
| ||||||||||||||||||
| | |
Balance Sheet
Location |
| |
Fair
Value |
| |
Balance Sheet
Location |
| |
Fair
Value |
| |
Balance Sheet
Location |
| |
Fair
Value |
| |||||||||
Derivatives designated as hedging instruments:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
2021 Swap 1
|
| |
Other non-current assets
|
| | | $ | 1,513 | | | |
Other accrued expenses
|
| | | $ | (170) | | | | | | | | $ | — | | |
2021 Swap 2
|
| |
Other non-current assets
|
| | | | 2,250 | | | |
Other accrued expenses
|
| | | | (270) | | | | | | | | | — | | |
2021 Swap 3
|
| |
Other current assets
|
| | | | 59 | | | |
Other accrued expenses/
other non-current liabilities |
| | | | (1,880) | | | | | | | | | — | | |
Total hedging instruments
|
| | | | | |
$
|
3,822
|
| | | | | | |
$
|
(2,320)
|
| | | | | | | $ | — | | |
Derivatives not designated as
hedging instruments: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018 Swap 1
|
| | | | | | $ | — | | | | | | | | $ | — | | | |
Other accrued expenses
|
| | | $ | (709) | | |
2018 Swap 2
|
| | | | | | | — | | | | | | | | | — | | | |
Other non-current liabilities
|
| | | | (3,484) | | |
Total non-hedging
instruments |
| | | | | | $ | — | | | | | | | | $ | — | | | | | | | |
$
|
(4,193)
|
| |
| | |
As of December 25, 2021
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Trading securities
|
| | | $ | 1,686 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,686 | | |
Interest rate swaps
|
| | | | — | | | | | | 1,502 | | | | | | — | | | | | | 1,502 | | |
Foreign exchange forward contracts
|
| | | | — | | | | | | 14 | | | | | | — | | | | | | 14 | | |
Contingent consideration payable
|
| | | | — | | | | | | — | | | | | | (12,347) | | | | | | (12,347) | | |
| | |
As of December 26, 2020
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Trading securities
|
| | | $ | 1,911 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,911 | | |
Interest rate swaps
|
| | | | — | | | | | | (4,193) | | | | | | — | | | | | | (4,193) | | |
Foreign exchange forward contracts
|
| | | | — | | | | | | 12 | | | | | | — | | | | | | 12 | | |
Contingent consideration payable
|
| | | | — | | | | | | — | | | | | | (14,197) | | | | | | (14,197) | | |
| | |
December 25, 2021
|
| |
December 26, 2020
|
| ||||||||||||||||||
| | |
Carrying
Amount |
| |
Estimated
Fair Value |
| |
Carrying
Amount |
| |
Estimated
Fair Value |
| ||||||||||||
6.375% Senior Notes
|
| | | $ | — | | | | | $ | — | | | | | $ | 328,333 | | | | | $ | 327,525 | | |
Junior Subordinated Debentures
|
| | | | — | | | | | | — | | | | | | 123,295 | | | | | | 128,022 | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |||||||||
Facility consolidation(1) | | | | | | | | | | | | | | | | | | | |
Inventory valuation adjustments
|
| | | $ | — | | | | | $ | 596 | | | | | $ | 3,799 | | |
Labor expense
|
| | | | — | | | | | | 682 | | | | | | 1,751 | | |
Consulting and legal fees
|
| | | | 26 | | | | | | 192 | | | | | | 225 | | |
Other expense
|
| | | | 5 | | | | | | 1,118 | | | | | | 2,126 | | |
Rent and related charges
|
| | | | — | | | | | | 1,535 | | | | | | 584 | | |
Severance
|
| | | | 466 | | | | | | 707 | | | | | | 617 | | |
Exit of certain lines of business(2) | | | | | | | | | | | | | | | | | | | |
Inventory valuation adjustments
|
| | | | — | | | | | | — | | | | | | 535 | | |
Gain on disposal of assets
|
| | | | — | | | | | | — | | | | | | (458) | | |
Other expense
|
| | | | — | | | | | | — | | | | | | 488 | | |
Total
|
| | | $ | 497 | | | | | $ | 4,830 | | | | | $ | 9,667 | | |
| | |
Severance and
related expense |
| |||
Balance as of December 28, 2019
|
| | | $ | 1,121 | | |
Restructuring charges
|
| | | | 707 | | |
Cash paid
|
| | | | (1,519) | | |
Balance as of December 26, 2020
|
| | | $ | 309 | | |
Restructuring charges
|
| | | | 466 | | |
Cash paid
|
| | | | (436) | | |
Balance as of December 25, 2021
|
| | | $ | 339 | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| ||||||
Management realignment & integration | | | | | | | | | | | | | |
Severance
|
| | | $ | 111 | | | | | $ | 886 | | |
Inventory valuation adjustments
|
| | | | — | | | | | | — | | |
Facility closures | | | | | | | | | | | | | |
Severance
|
| | | | — | | | | | | 903 | | |
Inventory valuation adjustments
|
| | | | — | | | | | | 1,568 | | |
Other
|
| | | | 319 | | | | | | 1,422 | | |
Total
|
| | | $ | 430 | | | | | $ | 4,779 | | |
| | |
Severance and
related expense |
| |||
Balance as of December 29, 2019
|
| | | $ | 3,286 | | |
Restructuring charges
|
| | | | 1,789 | | |
Cash paid
|
| | | | (4,250) | | |
Balance as of December 26, 2020
|
| | | $ | 825 | | |
Restructuring charges
|
| | | | 111 | | |
Cash paid
|
| | | | (936) | | |
Balance as of December 25, 2021
|
| | | $ | — | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |||||||||
Cash paid during the period for: | | | | | | | | | | | | | | | | | | | |
Interest on junior subordinated debentures
|
| | | $ | 7,542 | | | | | $ | 12,329 | | | | | $ | 11,211 | | |
Interest
|
| | | | 64,522 | | | | | | 81,024 | | | | | | 94,461 | | |
Income taxes, net of refunds
|
| | | | 2,500 | | | | | | (301) | | | | | | (489) | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |||||||||
Lowe’s
|
| | | | 20.6% | | | | | | 22.5% | | | | | | 21.6% | | |
Home Depot
|
| | | | 27.0% | | | | | | 26.5% | | | | | | 24.7% | | |
| | |
Year Ended
December 25, 2021 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |||||||||
Revenues | | | | | | | | | | | | | | | | | | | |
Hardware and Protective Solutions
|
| | | $ | 1,024,974 | | | | | $ | 1,024,392 | | | | | $ | 853,016 | | |
Robotics and Digital Solutions
|
| | | | 249,528 | | | | | | 209,287 | | | | | | 236,086 | | |
Canada
|
| | | | 151,465 | | | | | | 134,616 | | | | | | 125,260 | | |
Total revenues
|
| | | $ | 1,425,967 | | | | | $ | 1,368,295 | | | | | $ | 1,214,362 | | |
Segment Income (Loss) from Operations | | | | | | | | | | | | | | | | | | | |
Hardware and Protective Solutions
|
| | | $ | (17,185) | | | | | $ | 67,313 | | | | | $ | 14,204 | | |
Robotics and Digital Solutions
|
| | | | 23,558 | | | | | | 3,177 | | | | | | 3,385 | | |
Canada
|
| | | | 3,941 | | | | | | (4,724) | | | | | | (9,894) | | |
Total segment income from operations
|
| | | $ | 10,314 | | | | | $ | 65,766 | | | | | $ | 7,695 | | |
| | |
Deducted From
Assets in Balance Sheet |
| |||
| | |
Allowance for
Doubtful Accounts |
| |||
Ending Balance – December 29, 2018
|
| | | $ | 846 | | |
Additions charged to cost and expense
|
| | | | 790 | | |
Deductions due to:
|
| | | | | | |
Others
|
| | | | 255 | | |
Ending Balance – December 28, 2019
|
| | | | 1,891 | | |
Additions charged to cost and expense
|
| | | | 1,378 | | |
Deductions due to:
|
| | | | | | |
Others
|
| | | | (874) | | |
Ending Balance – December 26, 2020
|
| | | | 2,395 | | |
Additions charged to cost and expense
|
| | | | 522 | | |
Deductions due to:
|
| | | | | | |
Others
|
| | | | (26) | | |
Ending Balance – December 25, 2021
|
| | | $ | 2,891 | | |