Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 28, 2019 | Nov. 04, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 28, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-32383 | |
Entity Registrant Name | BlueLinx Holdings Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0627356 | |
Entity Address, Address Line One | 1950 Spectrum Circle, Suite 300 | |
Entity Address, City or Town | Marietta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30067 | |
City Area Code | 770 | |
Local Phone Number | 953-7000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | BXC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,364,959 | |
Entity Central Index Key | 0001301787 | |
Current Fiscal Year Date | --12-28 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash | $ 12,847 | $ 8,939 |
Receivables, less allowances of $3,811 and $3,656, respectively | 243,905 | 208,434 |
Inventories, net | 362,389 | 341,851 |
Other current assets | 42,366 | 40,629 |
Total current assets | 661,507 | 599,853 |
Property and equipment: | ||
Property and equipment, at cost | 321,004 | 308,398 |
Accumulated depreciation | (113,740) | (103,285) |
Property and equipment, net | 207,264 | 205,113 |
Operating lease right-of-use assets | 53,689 | 0 |
Goodwill | 47,772 | 47,772 |
Intangible assets, net | 28,354 | 35,222 |
Deferred tax assets | 54,784 | 52,645 |
Other non-current assets | 19,259 | 19,284 |
Total assets | 1,072,629 | 959,889 |
Current liabilities: | ||
Accounts payable | 179,376 | 149,188 |
Accrued compensation | 8,780 | 7,974 |
Current maturities of long-term debt, net of discount and debt issuance costs of $74 and $64, respectively | 1,790 | 1,736 |
Finance leases - short-term | 8,373 | 7,555 |
Real estate deferred gains - short-term | 4,448 | 5,330 |
Operating lease liabilities - short-term | 6,381 | 0 |
Other current liabilities | 13,835 | 24,985 |
Total current liabilities | 222,983 | 196,768 |
Non-current liabilities: | ||
Long-term debt, net of discount and debt issuance costs of $12,081 and $12,665, respectively | 488,097 | 497,939 |
Finance leases - long-term | 155,258 | 143,486 |
Real estate financing obligation | 44,725 | 0 |
Real estate deferred gains - long-term | 82,400 | 86,011 |
Operating lease liabilities - long-term | 47,418 | 0 |
Pension benefit obligation | 27,625 | 26,668 |
Other non-current liabilities | 24,694 | 23,680 |
Total liabilities | 1,093,200 | 974,552 |
Commitments and Contingencies | ||
STOCKHOLDERS’ DEFICIT: | ||
Common Stock, $0.01 par value, Authorized - 20,000,000 shares, Issued and Outstanding - 9,364,959 and 9,293,794, respectively | 94 | 92 |
Additional paid-in capital | 260,883 | 258,596 |
Accumulated other comprehensive loss | (39,157) | (37,129) |
Accumulated stockholders’ deficit | (242,391) | (236,222) |
Total stockholders’ deficit | (20,571) | (14,663) |
Total liabilities and stockholders’ deficit | $ 1,072,629 | $ 959,889 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 678,665 | $ 859,776 | $ 2,023,814 | $ 2,190,215 |
Cost of sales | 584,952 | 768,021 | 1,749,889 | 1,939,484 |
Gross profit | 93,713 | 91,755 | 273,925 | 250,731 |
Operating expenses: | ||||
Selling, general, and administrative | 79,881 | 87,692 | 228,392 | 238,655 |
Gains from sales of property | (38) | 0 | (9,798) | 0 |
Depreciation and amortization | 7,577 | 8,068 | 22,408 | 18,177 |
Total operating expenses | 87,420 | 95,760 | 241,002 | 256,832 |
Operating income (loss) | 6,293 | (4,005) | 32,923 | (6,101) |
Non-operating expenses (income): | ||||
Interest expense | 13,409 | 13,273 | 40,527 | 33,947 |
Other income, net | (317) | (94) | (212) | (282) |
Loss before provision for (benefit from) income taxes | (6,799) | (17,184) | (7,392) | (39,766) |
Provision for (benefit from) income taxes | 244 | (7,288) | 69 | (7,885) |
Net loss | $ (7,043) | $ (9,896) | $ (7,461) | $ (31,881) |
Basic loss per share (in dollars per share) | $ (0.75) | $ (1.07) | $ (0.80) | $ (3.46) |
Diluted loss per share (in dollars per share) | $ (0.75) | $ (1.07) | $ (0.80) | $ (3.46) |
Comprehensive loss: | ||||
Net loss | $ (7,043) | $ (9,896) | $ (7,461) | $ (31,881) |
Other comprehensive income (loss): | ||||
Foreign currency translation, net of tax | (9) | 0 | (2) | (3) |
Amortization of unrecognized pension gain (loss), net of tax | (1,834) | 201 | (1,403) | 605 |
Pension curtailment, net of tax | 0 | 0 | (632) | 0 |
Other | (7) | 0 | 9 | 0 |
Total other comprehensive income (loss) | (1,850) | 201 | (2,028) | 602 |
Comprehensive loss | $ (8,893) | $ (9,695) | $ (9,489) | $ (31,279) |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 3,811 | $ 3,656 |
Debt discount, current | 74 | 64 |
Debt discount, noncurrent | $ 12,081 | $ 12,665 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 9,364,959 | 9,293,794 |
Common stock, shares outstanding (in shares) | 9,364,959 | 9,293,794 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net cash used in operating activities | $ (54,940) | $ (59,293) |
Cash flows from investing activities: | ||
Proceeds from sale of assets | 13,699 | 107,972 |
Acquisition of business, net of cash acquired | 0 | (353,094) |
Property and equipment investments | (3,321) | (1,872) |
Net cash provided by (used in) investing activities | 10,378 | (246,994) |
Cash flows from financing activities: | ||
Borrowings on revolving credit facilities | 512,379 | 736,254 |
Repayments on revolving credit facilities | (490,842) | (503,577) |
Borrowings on term loan | 0 | 180,000 |
Repayments on term loan | (31,899) | (900) |
Principal payments on mortgage | 0 | (97,847) |
Proceeds from real estate transactions | 44,725 | 0 |
Change in outstanding payments | 22,348 | 14,671 |
Debt issuance costs | (1,588) | (10,470) |
Payments on finance lease obligations | (6,445) | (5,890) |
Repurchase of shares to satisfy employee tax withholdings | (208) | (3,020) |
Net cash provided by financing activities | 48,470 | 309,221 |
Net change in cash | 3,908 | 2,934 |
Cash at beginning of period | 8,939 | 4,696 |
Cash at end of period | $ 12,847 | $ 7,630 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFECIT) EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 30, 2017 | 9,101 | ||||
Beginning balance at Dec. 30, 2017 | $ 35,002 | $ 91 | $ 259,588 | $ (36,507) | $ (188,170) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (13,427) | (13,427) | |||
Foreign currency translation, net of tax | 6 | 6 | |||
Unrealized gain from pension plan, net of tax | 203 | 203 | |||
Vesting of performance shares (in shares) | 109 | ||||
Vesting of performance shares | 1 | $ 1 | |||
Compensation related to share-based grants | 319 | 319 | |||
Repurchase of shares to satisfy employee tax withholdings | (1) | (1) | |||
Other | (7) | (7) | |||
Ending balance (in shares) at Mar. 31, 2018 | 9,210 | ||||
Ending balance at Mar. 31, 2018 | 22,096 | $ 92 | 259,906 | (36,298) | (201,604) |
Beginning balance (in shares) at Dec. 30, 2017 | 9,101 | ||||
Beginning balance at Dec. 30, 2017 | 35,002 | $ 91 | 259,588 | (36,507) | (188,170) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (31,881) | ||||
Foreign currency translation, net of tax | (3) | ||||
Ending balance (in shares) at Sep. 29, 2018 | 9,289 | ||||
Ending balance at Sep. 29, 2018 | 2,224 | $ 92 | 258,088 | (35,905) | (220,051) |
Beginning balance (in shares) at Mar. 31, 2018 | 9,210 | ||||
Beginning balance at Mar. 31, 2018 | 22,096 | $ 92 | 259,906 | (36,298) | (201,604) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (8,558) | (8,558) | |||
Foreign currency translation, net of tax | (9) | (9) | |||
Unrealized gain from pension plan, net of tax | 201 | 201 | |||
Vesting of restricted stock units (in shares) | 11 | ||||
Vesting of restricted stock units | 0 | ||||
Compensation related to share-based grants | 338 | 338 | |||
Repurchase of shares to satisfy employee tax withholdings (in shares) | (2) | ||||
Repurchase of shares to satisfy employee tax withholdings | (1,719) | (1,719) | |||
Other | 7 | 7 | |||
Ending balance (in shares) at Jun. 30, 2018 | 9,219 | ||||
Ending balance at Jun. 30, 2018 | 12,356 | $ 92 | 258,525 | (36,106) | (210,155) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (9,896) | (9,896) | |||
Foreign currency translation, net of tax | 0 | ||||
Unrealized gain from pension plan, net of tax | 201 | 201 | |||
Vesting of restricted stock units (in shares) | 70 | ||||
Vesting of restricted stock units | 0 | ||||
Compensation related to share-based grants | 635 | 635 | |||
Repurchase of shares to satisfy employee tax withholdings | (1,068) | (1,068) | |||
Other | (4) | (4) | |||
Ending balance (in shares) at Sep. 29, 2018 | 9,289 | ||||
Ending balance at Sep. 29, 2018 | 2,224 | $ 92 | 258,088 | (35,905) | (220,051) |
Beginning balance (in shares) at Dec. 29, 2018 | 9,294 | ||||
Beginning balance at Dec. 29, 2018 | (14,663) | $ 92 | 258,596 | (37,129) | (236,222) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (6,719) | (6,719) | |||
Foreign currency translation, net of tax | 7 | 7 | |||
Unrealized gain from pension plan, net of tax | 1,077 | 1,077 | |||
Vesting of restricted stock units (in shares) | 49 | ||||
Vesting of restricted stock units | 1 | $ 1 | |||
Compensation related to share-based grants | 706 | 706 | |||
Other | 15 | 15 | |||
Ending balance (in shares) at Mar. 30, 2019 | 9,343 | ||||
Ending balance at Mar. 30, 2019 | (18,285) | $ 93 | 259,302 | (36,030) | (241,650) |
Beginning balance (in shares) at Dec. 29, 2018 | 9,294 | ||||
Beginning balance at Dec. 29, 2018 | (14,663) | $ 92 | 258,596 | (37,129) | (236,222) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (7,461) | ||||
Foreign currency translation, net of tax | (2) | ||||
Ending balance (in shares) at Sep. 28, 2019 | 9,365 | ||||
Ending balance at Sep. 28, 2019 | (20,571) | $ 94 | 260,883 | (39,157) | (242,391) |
Beginning balance (in shares) at Mar. 30, 2019 | 9,343 | ||||
Beginning balance at Mar. 30, 2019 | (18,285) | $ 93 | 259,302 | (36,030) | (241,650) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | 6,301 | 6,301 | |||
Unrealized gain from pension plan, net of tax | (1,278) | (1,278) | |||
Vesting of restricted stock units (in shares) | 32 | ||||
Vesting of restricted stock units | 1 | $ 1 | |||
Compensation related to share-based grants | 635 | 635 | |||
Repurchase of shares to satisfy employee tax withholdings (in shares) | (10) | ||||
Repurchase of shares to satisfy employee tax withholdings | (208) | (208) | |||
Other | (1) | (2) | 1 | ||
Ending balance (in shares) at Jun. 29, 2019 | 9,365 | ||||
Ending balance at Jun. 29, 2019 | (12,835) | $ 94 | 259,727 | (37,307) | (235,349) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (7,043) | (7,043) | |||
Foreign currency translation, net of tax | (9) | (9) | |||
Unrealized gain from pension plan, net of tax | (1,834) | (1,834) | |||
Compensation related to share-based grants | 1,156 | 1,156 | |||
Other | (6) | (7) | 1 | ||
Ending balance (in shares) at Sep. 28, 2019 | 9,365 | ||||
Ending balance at Sep. 28, 2019 | $ (20,571) | $ 94 | $ 260,883 | $ (39,157) | $ (242,391) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 28, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of BlueLinx Holdings Inc. and its wholly owned subsidiaries (the “Company”). These financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by accounting principles generally accepted (“GAAP”) in the United States (“U.S.”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K (the “Annual Report on Form 10-K”) for the year ended December 29, 2018 , as filed with the Securities and Exchange Commission on March 13, 2019. Our financial condition as of, and our operating results for, the three and nine -month periods ended September 28, 2019 , are not necessarily indicative of the financial condition and results that may be expected for the full year ending December 28, 2019 , or any other interim period. Certain prior period amounts have been reclassified to conform to the current period's presentation. These reclassifications did not materially impact the Company's operating income (loss) or consolidated net income (loss). Subsequent Events We evaluated subsequent events through the date that our Condensed Consolidated Financial Statements were issued. Except as described in Note 13, no matters were identified that required adjustment of the Condensed Consolidated Financial Statements or additional disclosure. Outstanding Payments Outstanding payments represent outstanding checks and electronic payments that have not been presented for payment as of the end of the period. These amounts are typically funded within 24 hours. As of September 28, 2019 , and December 29, 2018 , outstanding payments of $39.8 million and $17.4 million , respectively, were included in accounts payable on our condensed consolidated balance sheets. Recently Adopted Accounting Standards Leases. In 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842).” Topic 842 establishes a new lease accounting model. The most significant changes include the clarification of the definition of a lease, the requirement for lessees to recognize, for all leases, a right-of-use asset and a lease liability in the consolidated balance sheet, and additional quantitative and qualitative disclosures which are designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. Lease expenses will continue to be recognized in the consolidated statement of income (loss) in a manner similar to prior accounting guidance. Lessor accounting under the new standard is substantially unchanged. We adopted this standard, and all related amendments thereto, effective December 30, 2018, the first day of our 2019 fiscal year, using a modified retrospective approach, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods presented. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical accounting relating to lease identification and classification for existing leases upon adoption. We have made an accounting policy election to keep leases with an initial term of 12 months or less off of the consolidated balance sheet. We implemented internal controls and a lease accounting information system to enable the preparation of financial information required by the new standard. The adoption of Topic 842 had a material impact on our condensed consolidated balance sheets but did not have a material impact on our condensed consolidated statements of operations and comprehensive loss. The most significant impact was the recognition of right-of-use assets and lease liabilities of $57.5 million on the condensed consolidated balance sheet. Additionally, $1.7 million of deferred gains associated with sale-leaseback transactions was recorded as a cumulative-effect adjustment to accumulated deficit. See Note 9 “Leases” for additional disclosures regarding our lease commitments. Comprehensive Income . In February 2018, the FASB issued ASU No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220).” This standard provides an option to reclassify stranded tax effects within accumulated other comprehensive loss to retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017. This standard was effective for interim and annual reporting periods beginning after December 15, 2018. We did not exercise the option to make this reclassification. Accounting Standards Effective in Future Years Credit Impairment Losses. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326).” This ASU sets forth a current expected credit loss (“CECL”) model which requires the measurement of all expected credit losses for financial instruments or other assets (e.g., trade receivables), held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model, is applicable to the measurement of credit losses on financial assets measured at amortized cost, and applies to some off-balance sheet credit exposures. The standard also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity's portfolio. The standard is effective for reporting periods beginning after December 15, 2019. We have not completed our assessment of the standard but we do not expect the adoption to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Goodwill. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350).” This ASU is intended to simplify the test for goodwill impairments by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the new ASU, a goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The accounting standard will be effective for reporting periods beginning after December 15, 2019, and early adoption is permitted. We do not expect the adoption of the standard to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Fair Value Measurement. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value (“FV”) Measurement (Topic 820).” Among other modifications, this ASU removes the requirements to disclose: (i) the amount of and reasons for transfers between Level 1 and Level 2 of the FV hierarchy; (ii) the policy for timing transfers between levels; and (iii) the valuation process for Level 3 FV measurements. The standard will require public entities to disclose: (a) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 FV measurements held at the end of the reporting period; and (b) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 FV measurements. The additional disclosure requirements should be applied prospectively for the most recent interim or annual period presented in the fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented. The amendments in this standard are effective for fiscal years beginning after December 15, 2019. Early adoption is permitted, and an entity may adopt the removed or modified disclosures and delay the adoption of new disclosures until the effective date. We have not completed our assessment of the standard but we do not expect the adoption to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Defined Benefit Pension Plan . In August 2018, the FASB issued ASU No. 2018-14, “Compensation-Retirement-Benefits-Defined Benefit Plans-General (Subtopic 715-20).” The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing six previously required disclosures and adding two. The amendments also clarify certain other disclosure requirements. The amendments in this standard are effective for fiscal years ending after December 15, 2020. Early adoption is permitted. We have not completed our assessment of the standard but we do not expect the adoption to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. |
Acquisition of Cedar Creek
Acquisition of Cedar Creek | 9 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisition of Cedar Creek | Acquisition of Cedar Creek On April 13, 2018, we completed the acquisition of Cedar Creek Holdings, Inc. (“Cedar Creek”) for a purchase price of approximately $361.8 million . The acquisition was completed pursuant to the terms of an Agreement and Plan of Merger (the "Merger Agreement"), dated as of March 9, 2018, by and among BlueLinx Corporation, one of our wholly owned subsidiaries, Panther Merger Sub, Inc., a wholly-owned subsidiary of BlueLinx Corporation ("Merger Sub"), Cedar Creek, and CharlesBank Equity Fund VII, Limited Partnership. Upon closing the transactions contemplated by the Merger Agreement, among other things, Merger Sub was merged with and into Cedar Creek, with Cedar Creek surviving the merger as one of our indirect wholly-owned subsidiaries. The merger allowed us to expand our product offerings, while maintaining our existing geographical footprint. Cedar Creek was established in 1977 as a wholesale building materials distribution company that distributes wood products across the United States. Its products include specialty lumber, oriented strand board, siding, cedar, spruce, engineered wood products and other building products. The acquisition was accounted for under the acquisition method of accounting. The assets acquired, liabilities assumed and results of operations of the acquired business have been included in our consolidated results since April 13, 2018. The following unaudited consolidated pro forma information presents consolidated information as if the acquisition had occurred on January 1, 2017: Pro forma Three Months Ended Nine Months Ended (In thousands, except per share data) September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Net sales $ 678,665 $ 859,776 $ 2,023,814 $ 2,592,597 Net income (loss) (5,194 ) (6,219 ) 937 (5,455 ) Earnings (loss) per common share: Basic $ (0.55 ) $ (0.67 ) $ 0.10 $ (0.59 ) Diluted (0.55 ) (0.67 ) 0.10 (0.59 ) The pro forma amounts above have been calculated in accordance with GAAP after applying the Company's accounting policies and adjusting the three and nine months ended September 28, 2019 , for $1.8 million and $8.4 million , and the three and nine months ended September 29, 2018 , for $3.7 million and $40.3 million , respectively, for transaction related costs, net of tax. Due to the net loss for the three month period ended September 28, 2019 , 114,000 incremental shares from share-based compensation arrangements were excluded from the computation of diluted weighted average shares outstanding because their effect would be anti-dilutive. The pro forma amounts do not include any potential synergies, cost savings or other expected benefits of the acquisition, are presented for illustrative purposes only, and are not necessarily indicative of results that would have been achieved had the acquisition occurred as of January 1, 2017, or of future operating performance. The purchase price of Cedar Creek consisted of the following items: (In thousands) Consideration paid to shareholders and amounts paid to creditors: Payments to Cedar Creek shareholders [1] $ 166,447 Subordinated unsecured note (due to shareholder) [2] 13,743 Seller’s transaction costs paid by Company 7,349 Repayment of Cedar Creek debt [3] 174,213 Total cash purchase price $ 361,752 [1] Payments to Cedar Creek’s shareholders include the purchase of common stock and certain escrow adjustments. [2] The Cedar Creek note payable to a shareholder of $13.7 million was paid in full upon the acquisition of Cedar Creek and included $10 million in subordinated debt and $3.7 million in accrued interest. [3] To finance the acquisition of Cedar Creek, the Company amended and restated its Revolving Credit Facility to increase the capacity thereunder to $600.0 million and also entered into a new $180.0 million senior secured Term Loan Facility. (See Note 6) The excess of total purchase price, which includes the aggregate cash consideration paid in excess of the fair value of the tangible and intangible assets acquired, was recorded as goodwill. The goodwill recognized is attributable to the expected operating synergies and growth potential that the Company expects to realize from the acquisition. None of the goodwill generated from the acquisition is deductible for tax purposes. The following table summarizes the values of the assets acquired and liabilities assumed at the date of the acquisition: (In thousands) Allocation as of December 29, 2018 Cash and net working capital assets $ 88,318 Inventory 159,227 Property and equipment 71,203 Other, net (1,395 ) Intangible assets and goodwill: Customer relationships 25,500 Non-compete agreements 8,254 Trade names 6,826 Favorable leasehold interests 800 Goodwill 47,772 Finance leases and other liabilities (44,753 ) Cash purchase price $ 361,752 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets In connection with the acquisition of Cedar Creek, we acquired certain intangible assets. As of September 28, 2019 , our intangible assets consist of goodwill and other intangible assets including customer relationships, noncompete agreements, and trade names. Goodwill Goodwill is the excess of the cost of an acquired entity over the fair value of tangible and intangible assets (including customer relationships, noncompete agreements and trade names) acquired, and liabilities assumed, under acquisition accounting for business combinations. As of September 28, 2019 , goodwill was $47.8 million . Goodwill is not subject to amortization but must be tested for impairment at least annually. This test requires us to assign goodwill to a reporting unit and to determine if the implied fair value of the reporting unit’s goodwill is less than its carrying amount. We evaluate goodwill for impairment during the fourth quarter of each fiscal year. In addition, we will evaluate the carrying value for impairment between annual impairment tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Such events and indicators may include, without limitation, significant declines in the industries in which our products are used, significant changes in capital market conditions, and significant changes in our market capitalization. Definite-Lived Intangible Assets. At September 28, 2019 , in connection with the acquisition of Cedar Creek, we had definite-lived intangible assets that related to customer relationships, noncompete agreements, and trade names. At September 28, 2019 , the gross carrying amounts, the accumulated amortization, and the net carrying amounts of our definite-lived intangible assets were as follows: (In thousands) Gross carrying amounts Accumulated Amortization [1] Net carrying amounts Customer relationships $ 25,500 $ (5,885 ) $ 19,615 Noncompete agreements 8,254 (3,016 ) 5,238 Trade names 6,826 (3,325 ) 3,501 Total $ 40,580 $ (12,226 ) $ 28,354 [1] Intangible assets except customer relationships are amortized on straight line basis. Customer relationships are amortized on a double declining balance method. Amortization Expense The weighted average estimated useful life remaining for customer relationships, noncompete agreements and trade names is approximately 11 years , 3 years , and 2 years , respectively. Amortization expense for the definite-lived intangible assets was $2.0 million and $6.1 million for the three and nine month periods ended September 28, 2019 , respectively. For the three and nine month periods ended September 29, 2018 , amortization expense was $2.1 million and $4.0 million . Estimated amortization expense for definite-lived intangible assets for the remaining portion of 2019 and the next five fiscal years is as follows: (In thousands) Estimated Amortization 2019 $ 1,970 2020 7,461 2021 4,973 2022 3,111 2023 1,807 2024 1,505 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition We recognize revenue when control of promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Contracts with our customers are generally in the form of standard terms and conditions of sale. From time to time, we may enter into specific contracts with some of our larger customers, which may affect delivery terms. Performance obligations in our contracts generally consist solely of delivery of goods. For all sales channel types, consisting of warehouse, direct, and reload sales, we typically satisfy our performance obligations upon shipment. Our customer payment terms are typical for our industry, and may vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is not deemed to be significant by us. For certain sales channels and/or products, our standard terms of payment may be as early as ten days. In addition, we provide inventory to certain customers through pre-arranged agreements on a consignment basis. Customer consigned inventory is maintained and stored by certain customers; however, ownership and risk of loss remain with us. When the consigned inventory is sold by the customer, we recognize revenue, net of trade allowances. All revenues recognized are net of trade allowances (i.e., rebates), cash discounts and sales returns. Cash discounts and sales returns are estimated using historical experience. Trade allowances are based on the estimated obligations and historical experience. Adjustments to earnings resulting from revisions to estimates on discounts and returns have been insignificant for each of the reported periods. Certain customers may receive cash-based incentives or credits (rebates), which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. With the acquisition and integration of Cedar Creek, we changed our internal product hierarchy. The following table presents our revenues disaggregated by revenue source. Certain prior year amounts have been reclassified to conform to the current year product mix of structural and specialty products. Sales and usage-based taxes are excluded from revenues. Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (In thousands) Structural products $ 225,522 $ 312,510 $ 646,513 $ 833,412 Specialty products 453,143 547,266 1,377,301 1,356,803 Total net sales $ 678,665 $ 859,776 $ 2,023,814 $ 2,190,215 Also, due to the acquisition and integration of Cedar Creek, our reload sales are less distinct from warehouse sales as they have been traditionally classified. The following table presents our revenues disaggregated by sales channel. Certain prior year amounts have been reclassified to conform to the current year revenues disaggregated by sales channel. Sales and usage-based taxes are excluded from revenues. Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (In thousands) Warehouse and reload $ 577,172 $ 716,604 $ 1,693,206 $ 1,815,531 Direct 114,586 153,847 360,252 402,420 Service revenue 272 981 1,033 2,872 Customer discounts and rebates (13,365 ) (11,656 ) (30,677 ) (30,608 ) Total net sales $ 678,665 $ 859,776 $ 2,023,814 $ 2,190,215 Practical Expedients and Exemptions We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general, and administrative expense. We have made an accounting policy election to treat any common carrier shipping and handling activities as an expense. |
Assets Held for Sale and Net Ga
Assets Held for Sale and Net Gain on Disposition | 9 Months Ended |
Sep. 28, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale and Net Gain on Disposition | Assets Held for Sale and Net Gain on Disposition In fiscal 2018 , we designated certain non-operating properties as held for sale due to strategic realignments of our business. At the time of designation, we ceased recognizing depreciation expense on these assets. As of December 29, 2018, six properties were designated as held for sale, with an additional property designated during the first quarter of 2019. During the nine months ended September 28, 2019 , three properties were sold, as further described below. As of September 28, 2019 , and December 29, 2018 , the net book value of total assets held for sale was $2.1 million and $3.1 million , respectively, and was included in “Other current assets” in our Condensed Consolidated Balance Sheets. Properties held for sale as of September 28, 2019 , consisted of land in the Northeast, and four warehouses located in the Midwest and South. We plan to sell these properties within the next 12 months. We continue to actively market all properties that are designated as held for sale. During the nine months ended September 28, 2019 , we sold three non-operating distribution facilities previously designated as “held for sale”. We recognized a gain of $9.8 million |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt As of September 28, 2019 , and December 29, 2018 , long-term debt consisted of the following: September 28, December 29, (In thousands) Maturity Date 2019 2018 Revolving Credit Facility (net of discounts and debt issuance October 10, 2022 $ 349,982 $ 327,319 Term Loan Facility (net of discounts and debt issuance costs October 13, 2023 139,905 172,356 Total debt 489,887 499,675 Less: current portion of long-term debt (1,790 ) (1,736 ) Long-term debt, net $ 488,097 $ 497,939 Revolving Credit Facility On April 13, 2018, we entered into an Amended and Restated Credit Agreement with certain of our subsidiaries as borrowers (together with us, the “Borrowers”) or guarantors thereunder, Wells Fargo Bank, National Association, in its capacity as administrative agent, and certain other financial institutions party thereto (the “Revolving Credit Agreement”). The Revolving Credit Agreement provides for a senior secured asset-based revolving loan and letter of credit facility (the “Revolving Credit Facility”) of up to $600 million and an uncommitted accordion feature that permits the Borrowers to increase the facility by an aggregate additional principal amount of up to $150 million , which would allow borrowings of up to $750 million under the Revolving Credit Facility. Letters of credit in an aggregate amount of up to $30 million are also available under the Revolving Credit Agreement, which would reduce the amount of the revolving loans available under the Revolving Credit Facility. The maturity date of the Revolving Credit Agreement is October 10, 2022. The Borrowers’ obligations under the Revolving Credit Agreement are secured by a security interest in substantially all of our and our subsidiaries’ assets (other than real property), including inventories, accounts receivable, and proceeds from those items. Borrowings under the Revolving Credit Agreement are subject to availability under the Borrowing Base (as that term is defined in the Revolving Credit Agreement). The Borrowers are required to repay revolving loans thereunder to the extent that such revolving loans exceed the Borrowing Base then in effect. The Revolving Credit Facility may be prepaid in whole or in part from time to time without penalty or premium, but including all breakage costs incurred by any lender thereunder. The Revolving Credit Agreement provides for interest on the loans at a rate per annum equal to (i) LIBOR plus a margin ranging from 1.75 percent to 2.25 percent , with the amount of such margin determined based upon the average of the Borrowers’ excess availability for the immediately preceding fiscal quarter as calculated by the administrative agent, for loans based on LIBOR, or (ii) the administrative agent’s base rate plus a margin ranging from 0.75 percent to 1.25 percent , with the amount of such margin determined based upon the average of the Borrowers’ excess availability for the immediately preceding fiscal quarter as calculated by the administrative agent, for loans based on the base rate. In the event excess availability falls below the greater of (i) $50 million and (ii) 10 percent of the lesser of (a) the Borrowing Base and (b) the maximum permitted credit at such time, the Revolving Credit Agreement requires maintenance of a fixed charge coverage ratio of 1.0 to 1.0 until such time as the Borrowers’ excess availability has been at least the greater of (i) $50 million and (ii) 10 percent of the lesser of (a) the Borrowing Base and (b) the maximum permitted credit at such time for a period of 30 consecutive days. The Revolving Credit Agreement also contains representations and warranties and affirmative and negative covenants customary for financings of this type, as well as customary events of default. As of September 28, 2019 , we had outstanding borrowings of $354.8 million , excess availability of $98.2 million , and a weighted average interest rate of 4.4 percent under our Revolving Credit Facility. As of December 29, 2018 , our principal balance was $333.3 million , excess availability was $91.7 million , and our weighted average interest rate was 4.6 percent under our Revolving Credit Facility. We were in compliance with all covenants under the Revolving Credit Agreement as of September 28, 2019 . Term Loan Facility On April 13, 2018, in connection with the acquisition of Cedar Creek, we entered into a credit and guaranty agreement with HPS Investment Partners, LLC, as administrative agent and collateral agent (“HPS”) and certain other financial institutions as party thereto. On October 24, 2019, the credit and guaranty agreement was amended to, among other things, permit real estate sale leaseback transactions and modify the total net leverage ratio beginning in the third quarter of 2019 (as amended, the “Term Loan Agreement”). The Term Loan Agreement provides for a senior secured first lien loan facility in an aggregate principal amount of $180 million (the “Term Loan Facility”). The maturity date of the Term Loan Agreement is October 13, 2023. The proceeds from the Term Loan Facility were used to fund a portion of the cash consideration payable in connection with the acquisition of Cedar Creek and to fund transaction costs in connection with the acquisition and the Term Loan Facility. The obligations under the Term Loan Agreement are secured by a security interest in substantially all of our and our subsidiaries’ assets, including inventories, accounts receivable, real property, and proceeds from those items. The Term Loan Agreement requires monthly interest payments, and quarterly principal payments of $450,000 , in arrears. The Term Loan Agreement also requires certain mandatory prepayments of outstanding loans, subject to certain exceptions, including prepayments commencing with the fiscal year ending December 28, 2019, based on a percentage of excess cash flow (as defined in the Term Loan Agreement for such fiscal year). The remaining balance is due on the loan maturity date of October 13, 2023. The Term Loan Facility may be prepaid in whole or in part from time to time, subject to payment of the “Prepayment Premium” (as such term is defined in the Term Loan Agreement) if such voluntary prepayment does not otherwise constitute an exception to the Prepayment Premium under the Term Loan Agreement and is made on or prior to February 28, 2023, and all breakage costs incurred by any lender thereunder. Borrowings under the Term Loan Agreement may be made as Base Rate Loans or Eurodollar Rate Loans. The Base Rate Loans will bear interest at the rate per annum equal to (i) the greatest of the (a) U.S. prime lending rate published in The Wall Street Journal, (b) the Federal Funds Effective Rate plus 0.50 percent , and (c) the sum of the Adjusted Eurodollar Rate of one month plus 1.00 percent , provided that the Base Rate shall at no time be less than 2.00 percent per annum; and (ii) plus the Applicable Margin, as described below. Eurodollar Rate Loans will bear interest at the rate per annum equal to (i) the ICE Benchmark Administration LIBOR Rate , provided that the Adjusted Eurodollar Rate shall at no time be less than 1.00 percent per annum; plus (ii) the Applicable Margin. The Applicable Margin will be 6.00 percent with respect to Base Rate Loans and 7.00 percent with respect to Eurodollar Rate Loans. With the October 2019 amendment, the Term Loan Agreement required maintenance of a total net leverage ratio of 7.50 to 1.00 for the fiscal quarter ending September 28, 2019 , and such required covenant level generally reduces over the remaining term of the Term Loan Facility as set forth in the amended Term Loan Agreement; provided, that 2019 fourth quarter and subsequent quarterly covenant levels revert to the higher levels existing prior to the October 2019 amendment if we do not reduce the outstanding principal balance of the Term Loan Facility to approximately $95.3 million by January 31, 2020. As of September 28, 2019 , we were in compliance with the total net leverage ratio. The Term Loan Agreement also contains representations, warranties, affirmative and negative covenants customary for financing transactions of this type, and customary events of default. Please refer to our risk factor entitled, “ The instruments governing our indebtedness contain various covenants limiting the discretion of our management in operating our business, including requiring us to maintain a minimum level of excess liquidity ” in our 2018 Annual Report on Form 10-K. As of September 28, 2019 , we had outstanding borrowings of $147.2 million under our Term Loan Credit Facility and an interest rate of 9.1 percent per annum. At December 29, 2018 , our principal balance was $179.1 million with an interest rate of 9.3 percent per annum. We were in compliance with all covenants under the Term Loan Agreement as of September 28, 2019 . Our remaining scheduled principal payments for fiscal 2019 and the following fiscal years, and thereafter, are as follows: (In thousands) 2019 $ 527 2020 2,250 2021 1,800 2022 1,800 Thereafter 140,824 |
Net Periodic Pension Cost
Net Periodic Pension Cost | 9 Months Ended |
Sep. 28, 2019 | |
Retirement Benefits [Abstract] | |
Net Periodic Pension Cost | Net Periodic Pension Cost The following table shows the components of our net periodic pension cost: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Service cost $ 29 $ 133 $ 190 $ 399 Interest cost on projected benefit obligation 881 963 2,899 2,889 Expected return on plan assets (1,339 ) (1,327 ) (3,828 ) (3,981 ) Amortization of unrecognized loss 278 271 857 813 Net periodic pension cost (benefit) $ (151 ) $ 40 $ 118 $ 120 During the first nine months of fiscal 2019, we renegotiated our collective bargaining agreement with 5 unionized locations. This collective bargaining agreement covers a number of specific items such as wages, medical coverage, and certain other benefit programs, including pension plan participation. As a result of these renegotiations, 49 of the participants in the plan are no longer accruing future years of service under the applicable pension plan, which triggered a curtailment. As a result of the curtailment, we performed a revaluation of plan assets and liabilities. The related pension benefit obligation decreased $0.1 million and $0.3 million for the three and nine months ended September 28, 2019, respectively, as a result of changes in valuation assumptions. An overall increase in plan asset valuation was accompanied by a decrease to accumulated other comprehensive income of $2.5 million and $2.7 million for the three and nine months ended September 28, 2019, respectively, which was recorded in other comprehensive loss on the Condensed Consolidated Statements of Operations and Comprehensive Loss. No intraperiod income tax effect was required to be recorded as a result of the curtailment. In the third quarter of 2019, we offered a voluntary lump sum payment option to certain qualified former employees or their beneficiaries who are vested participants in the BlueLinx Hourly Pension Plan. Qualified participants had until October 25, 2019 to determine whether to accept the offer. Lump sum payments in connection with the offer are expected to total approximately $9.5 million , and will be completed during the fourth quarter of 2019. The payments are being funded with existing plan assets, and no additional contribution by the Company to the plan was required in connection with the offer. The offer, once completed, will have the effect of decreasing our net periodic pension cost and overall projected benefit obligation, which will be reflected in our 2019 year end consolidated financial statements once the offer, and our year end pension valuation, have been completed. |
Stock Compensation
Stock Compensation | 9 Months Ended |
Sep. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation | Stock Compensation Cash-Settled Stock Appreciation Rights (“SARs”) During fiscal 2016, we granted certain executives and employees cash-settled SARs. The cash-settled SARs vested on July 16, 2018. On the vesting date, half of the vested value of the cash-settled SARs became payable within thirty days of the vesting date, and the remainder payable within one year of the vesting date. The exercise price for the cash-settled SARs was amended so that it was based on a 20 day trading average of the Company’s common stock through the vesting date, in excess of the $7.00 grant date valuation. On September 28, 2019, there was no remaining liability related to the cash-settled SARs. Stock Compensation Expense During the three months ended September 28, 2019 and September 29, 2018 , we incurred stock compensation expense of $1.2 million and $1.7 million , respectively. During the nine months ended September 28, 2019 and September 29, 2018 , we incurred stock compensation expense of $2.5 million and $14.7 million , respectively. The decrease in our stock compensation expense for the three and nine |
Leases
Leases | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Leases | Leases Effective December 30, 2018, we adopted ASU No. 2016-02, “Leases (Topic 842)” using the modified retrospective method, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods presented. We have elected the package of practical expedients permitted under the transition guidance within the new standard. This election allowed us to carry forward our historical lease classification. The adoption of this standard resulted in the recording of operating lease right-of-use (“ROU”) assets and corresponding operating lease liabilities of $57.5 million on the condensed consolidated balance sheet as of December 30, 2018 (adoption date), the first day of fiscal 2019, which amortizes over the lease term. Our operating and finance (formerly capital) lease portfolio includes leases for real estate, certain logistics equipment and vehicles. The majority of our leases have remaining lease terms of 1 year to 15 years , some of which include one or more options to extend the leases for 5 years . Operating lease ROU assets and liabilities are presented separately on the condensed consolidated balance sheets. Finance lease assets are included in property and equipment and the finance lease obligations are presented separately in the condensed consolidated balance sheet. We have also made the accounting policy election to not separate lease components from non lease components related to leases of several trucks during the second and third quarters of 2019. When a lease does not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. A portion of our real estate lease cost is generally subject to annual changes in the Consumer Price Index (“CPI”). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of our vehicle lease cost is considered variable. The components of lease expense were as follows: Three Months Ended September 28, 2019 Nine Months Ended September 28, 2019 (In thousands) Operating lease cost: $ 2,911 $ 9,047 Finance lease cost: Amortization of right-of-use assets $ 2,589 $ 8,481 Interest on lease liabilities 3,467 10,764 Total finance lease costs $ 6,056 $ 19,245 Supplemental cash flow information related to leases was as follows: Three Months Ended September 28, 2019 Nine Months Ended September 28, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,990 $ 8,957 Operating cash flows from finance leases 3,467 10,764 Financing cash flows from finance leases 2,213 6,445 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — Finance leases 14,403 18,652 Supplemental balance sheet information related to leases was as follows: (In thousands) September 28, 2019 Finance leases Property and equipment $ 168,247 Accumulated depreciation (22,457 ) Property and equipment, net $ 145,790 Weighted Average Remaining Lease Term (in years) Operating leases 12.14 Finance leases 20.36 Weighted Average Discount Rate Operating leases 9.44 % Finance leases 10.93 % As of September 28, 2019 , maturities of lease liabilities were as follows: (In thousands) Operating leases Finance leases 2019 $ 3,380 $ 6,232 2020 9,403 22,877 2021 7,485 20,203 2022 6,111 19,216 2023 5,733 18,630 Thereafter 53,118 307,018 Total lease payments $ 85,230 $ 394,176 Less: imputed interest (31,431 ) (230,545 ) Total $ 53,799 $ 163,631 At December 29, 2018 , our total operating lease commitments were as follows: (In thousands) 2019 $ 11,980 2020 9,928 2021 8,435 2022 8,066 2023 7,539 Thereafter 60,847 Total $ 106,795 |
Leases | Leases Effective December 30, 2018, we adopted ASU No. 2016-02, “Leases (Topic 842)” using the modified retrospective method, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods presented. We have elected the package of practical expedients permitted under the transition guidance within the new standard. This election allowed us to carry forward our historical lease classification. The adoption of this standard resulted in the recording of operating lease right-of-use (“ROU”) assets and corresponding operating lease liabilities of $57.5 million on the condensed consolidated balance sheet as of December 30, 2018 (adoption date), the first day of fiscal 2019, which amortizes over the lease term. Our operating and finance (formerly capital) lease portfolio includes leases for real estate, certain logistics equipment and vehicles. The majority of our leases have remaining lease terms of 1 year to 15 years , some of which include one or more options to extend the leases for 5 years . Operating lease ROU assets and liabilities are presented separately on the condensed consolidated balance sheets. Finance lease assets are included in property and equipment and the finance lease obligations are presented separately in the condensed consolidated balance sheet. We have also made the accounting policy election to not separate lease components from non lease components related to leases of several trucks during the second and third quarters of 2019. When a lease does not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. A portion of our real estate lease cost is generally subject to annual changes in the Consumer Price Index (“CPI”). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of our vehicle lease cost is considered variable. The components of lease expense were as follows: Three Months Ended September 28, 2019 Nine Months Ended September 28, 2019 (In thousands) Operating lease cost: $ 2,911 $ 9,047 Finance lease cost: Amortization of right-of-use assets $ 2,589 $ 8,481 Interest on lease liabilities 3,467 10,764 Total finance lease costs $ 6,056 $ 19,245 Supplemental cash flow information related to leases was as follows: Three Months Ended September 28, 2019 Nine Months Ended September 28, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,990 $ 8,957 Operating cash flows from finance leases 3,467 10,764 Financing cash flows from finance leases 2,213 6,445 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — Finance leases 14,403 18,652 Supplemental balance sheet information related to leases was as follows: (In thousands) September 28, 2019 Finance leases Property and equipment $ 168,247 Accumulated depreciation (22,457 ) Property and equipment, net $ 145,790 Weighted Average Remaining Lease Term (in years) Operating leases 12.14 Finance leases 20.36 Weighted Average Discount Rate Operating leases 9.44 % Finance leases 10.93 % As of September 28, 2019 , maturities of lease liabilities were as follows: (In thousands) Operating leases Finance leases 2019 $ 3,380 $ 6,232 2020 9,403 22,877 2021 7,485 20,203 2022 6,111 19,216 2023 5,733 18,630 Thereafter 53,118 307,018 Total lease payments $ 85,230 $ 394,176 Less: imputed interest (31,431 ) (230,545 ) Total $ 53,799 $ 163,631 At December 29, 2018 , our total operating lease commitments were as follows: (In thousands) 2019 $ 11,980 2020 9,928 2021 8,435 2022 8,066 2023 7,539 Thereafter 60,847 Total $ 106,795 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental and Legal Matters From time to time, we are involved in various proceedings incidental to our businesses, and we are subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which we operate. Although the ultimate outcome of these proceedings cannot be determined with certainty, based on presently available information management believes that adequate reserves have been established for probable losses with respect thereto. Management further believes that, while the ultimate outcome of one or more of these matters could be material to operating results in any given quarter, it will not have a materially adverse effect on our consolidated financial condition, our results of operations, or our cash flows. Collective Bargaining Agreements As of September 28, 2019 , we had over 2,200 employees on a full-time basis, and approximately 20 percent of our employees were represented by various local labor union Collective Bargaining Agreements (“CBAs”). As of September 28, 2019 , less than 1 percent of our employees are covered by CBAs that are up for renewal in fiscal 2019 or are currently expired and under negotiation. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Comprehensive income (loss) is a measure of income (loss) which includes both net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) results from items deferred from recognition into our Condensed Consolidated Statements of Operations and Comprehensive Loss. Accumulated other comprehensive loss is separately presented on our Condensed Consolidated Balance Sheets as part of stockholders’ deficit. The changes in balances for each component of accumulated other comprehensive loss for the nine months ended September 28, 2019 , were as follows: (In thousands) Foreign currency, net of tax Defined benefit pension plan, net of tax Other, net of tax Total Accumulated Other Comprehensive Loss December 29, 2018, beginning balance $ 660 $ (38,001 ) $ 212 $ (37,129 ) Other comprehensive income, net of tax [1] (2 ) (2,035 ) 9 (2,028 ) September 28, 2019, ending balance, net of tax $ 658 $ (40,036 ) $ 221 $ (39,157 ) ____ ____________________________ [1] For the nine months ended September 28, 2019 , the actuarial loss recognized in the Condensed Consolidated Statements of Operations and Comprehensive Loss as a component of net periodic pension cost was $2.7 million , net of tax of $0.7 million . Please see Note 7, Net Periodic Pension Cost, for further information. |
Loss per Share
Loss per Share | 9 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Loss per Share | Loss per Share We calculate basic loss per share by dividing net loss by the weighted average number of common shares outstanding. We calculate diluted earnings per share by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including restricted stock units, and performance units. Due to the financial results for the three and nine month periods ended September 28, 2019 , 0.1 million and 0.0 million , respectively, of incremental shares were excluded from the computation of diluted weighted average shares outstanding, because their effect would be anti-dilutive. For the three and nine month periods ended September 29, 2018 , 0.0 million and 0.1 million , respectively, of incremental shares from share-based compensation arrangements were excluded from the computation of diluted weighted average shares outstanding, because their effect would be anti-dilutive. The reconciliation of basic loss and diluted loss per common share for the three- and nine -month periods of fiscal 2019 and 2018 were as follows: Three Months Ended Nine Months Ended (in thousands, except per share data) September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Net loss $ (7,043 ) $ (9,896 ) $ (7,461 ) $ (31,881 ) Weighted-average shares outstanding - basic 9,366 9,274 9,351 9,209 Dilutive effect of share-based awards — — — — Weighted-average shares outstanding - diluted 9,366 9,274 $ 9,351 $ 9,209 Basic loss per share $ (0.75 ) $ (1.07 ) $ (0.80 ) $ (3.46 ) Diluted loss per share $ (0.75 ) $ (1.07 ) $ (0.80 ) $ (3.46 ) |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Third Amendment to Term Loan Facility On October 24, 2019, we amended our Term Loan Facility by entering into that certain Third Amendment to Credit and Guaranty Agreement (the “Amendment”), by and among the Company, as borrower, certain of the Company’s subsidiaries, as guarantors, the lenders party thereto, and HPS, in its capacity as administrative agent. Pursuant to the Amendment, we are permitted to enter into additional real estate sale leaseback transactions, effective from the date of the Amendment through the remaining tenor of the Term Loan Facility, with the net proceeds therefrom to be used for repayment of indebtedness under the Term Loan Facility or the Revolving Credit Facility. In addition, any net proceeds from the sale of “Specified Properties” (as such term is defined under the Term Loan Facility) will be used for repayment of indebtedness under the Term Loan Facility and the Revolving Credit Facility. The Amendment also modified the quarterly total net leverage ratio covenant levels over the term of the Term Loan Facility with the 2019 fourth quarter and subsequent quarterly level modifications reverting to the pre-Amendment levels subject to a designated outstanding principal balance level on January 31, 2020. The Amendment also provides that certain post-period prepayment rights will not apply for purposes of calculating compliance with the total net leverage ratio for the fourth quarter of 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of BlueLinx Holdings Inc. and its wholly owned subsidiaries (the “Company”). These financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by accounting principles generally accepted (“GAAP”) in the United States (“U.S.”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K (the “Annual Report on Form 10-K”) for the year ended December 29, 2018 , as filed with the Securities and Exchange Commission on March 13, 2019. |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current period's presentation. These reclassifications did not materially impact the Company's operating income (loss) or consolidated net income (loss). |
Recently Adopted Accounting Standards and Standards Effective in Future Years | Recently Adopted Accounting Standards Leases. In 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842).” Topic 842 establishes a new lease accounting model. The most significant changes include the clarification of the definition of a lease, the requirement for lessees to recognize, for all leases, a right-of-use asset and a lease liability in the consolidated balance sheet, and additional quantitative and qualitative disclosures which are designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. Lease expenses will continue to be recognized in the consolidated statement of income (loss) in a manner similar to prior accounting guidance. Lessor accounting under the new standard is substantially unchanged. We adopted this standard, and all related amendments thereto, effective December 30, 2018, the first day of our 2019 fiscal year, using a modified retrospective approach, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods presented. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical accounting relating to lease identification and classification for existing leases upon adoption. We have made an accounting policy election to keep leases with an initial term of 12 months or less off of the consolidated balance sheet. We implemented internal controls and a lease accounting information system to enable the preparation of financial information required by the new standard. The adoption of Topic 842 had a material impact on our condensed consolidated balance sheets but did not have a material impact on our condensed consolidated statements of operations and comprehensive loss. The most significant impact was the recognition of right-of-use assets and lease liabilities of $57.5 million on the condensed consolidated balance sheet. Additionally, $1.7 million of deferred gains associated with sale-leaseback transactions was recorded as a cumulative-effect adjustment to accumulated deficit. See Note 9 “Leases” for additional disclosures regarding our lease commitments. Comprehensive Income . In February 2018, the FASB issued ASU No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220).” This standard provides an option to reclassify stranded tax effects within accumulated other comprehensive loss to retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017. This standard was effective for interim and annual reporting periods beginning after December 15, 2018. We did not exercise the option to make this reclassification. Accounting Standards Effective in Future Years Credit Impairment Losses. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326).” This ASU sets forth a current expected credit loss (“CECL”) model which requires the measurement of all expected credit losses for financial instruments or other assets (e.g., trade receivables), held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model, is applicable to the measurement of credit losses on financial assets measured at amortized cost, and applies to some off-balance sheet credit exposures. The standard also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity's portfolio. The standard is effective for reporting periods beginning after December 15, 2019. We have not completed our assessment of the standard but we do not expect the adoption to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Goodwill. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350).” This ASU is intended to simplify the test for goodwill impairments by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the new ASU, a goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The accounting standard will be effective for reporting periods beginning after December 15, 2019, and early adoption is permitted. We do not expect the adoption of the standard to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Fair Value Measurement. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value (“FV”) Measurement (Topic 820).” Among other modifications, this ASU removes the requirements to disclose: (i) the amount of and reasons for transfers between Level 1 and Level 2 of the FV hierarchy; (ii) the policy for timing transfers between levels; and (iii) the valuation process for Level 3 FV measurements. The standard will require public entities to disclose: (a) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 FV measurements held at the end of the reporting period; and (b) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 FV measurements. The additional disclosure requirements should be applied prospectively for the most recent interim or annual period presented in the fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented. The amendments in this standard are effective for fiscal years beginning after December 15, 2019. Early adoption is permitted, and an entity may adopt the removed or modified disclosures and delay the adoption of new disclosures until the effective date. We have not completed our assessment of the standard but we do not expect the adoption to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Defined Benefit Pension Plan . In August 2018, the FASB issued ASU No. 2018-14, “Compensation-Retirement-Benefits-Defined Benefit Plans-General (Subtopic 715-20).” The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing six previously required disclosures and adding two. The amendments also clarify certain other disclosure requirements. The amendments in this standard are effective for fiscal years ending after December 15, 2020. Early adoption is permitted. We have not completed our assessment of the standard but we do not expect the adoption to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. |
Revenue Recognition | We recognize revenue when control of promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Contracts with our customers are generally in the form of standard terms and conditions of sale. From time to time, we may enter into specific contracts with some of our larger customers, which may affect delivery terms. Performance obligations in our contracts generally consist solely of delivery of goods. For all sales channel types, consisting of warehouse, direct, and reload sales, we typically satisfy our performance obligations upon shipment. Our customer payment terms are typical for our industry, and may vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is not deemed to be significant by us. For certain sales channels and/or products, our standard terms of payment may be as early as ten days. In addition, we provide inventory to certain customers through pre-arranged agreements on a consignment basis. Customer consigned inventory is maintained and stored by certain customers; however, ownership and risk of loss remain with us. When the consigned inventory is sold by the customer, we recognize revenue, net of trade allowances. All revenues recognized are net of trade allowances (i.e., rebates), cash discounts and sales returns. Cash discounts and sales returns are estimated using historical experience. Trade allowances are based on the estimated obligations and historical experience. Adjustments to earnings resulting from revisions to estimates on discounts and returns have been insignificant for each of the reported periods. Certain customers may receive cash-based incentives or credits (rebates), which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. Practical Expedients and Exemptions We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general, and administrative expense. We have made an accounting policy election to treat any common carrier shipping and handling activities as an expense. |
Earnings per Share | We calculate basic loss per share by dividing net loss by the weighted average number of common shares outstanding. We calculate diluted earnings per share by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including restricted stock units, and performance units. |
Acquisition of Cedar Creek (Tab
Acquisition of Cedar Creek (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
Pro Forma Information | The following unaudited consolidated pro forma information presents consolidated information as if the acquisition had occurred on January 1, 2017: Pro forma Three Months Ended Nine Months Ended (In thousands, except per share data) September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Net sales $ 678,665 $ 859,776 $ 2,023,814 $ 2,592,597 Net income (loss) (5,194 ) (6,219 ) 937 (5,455 ) Earnings (loss) per common share: Basic $ (0.55 ) $ (0.67 ) $ 0.10 $ (0.59 ) Diluted (0.55 ) (0.67 ) 0.10 (0.59 ) The purchase price of Cedar Creek consisted of the following items: (In thousands) Consideration paid to shareholders and amounts paid to creditors: Payments to Cedar Creek shareholders [1] $ 166,447 Subordinated unsecured note (due to shareholder) [2] 13,743 Seller’s transaction costs paid by Company 7,349 Repayment of Cedar Creek debt [3] 174,213 Total cash purchase price $ 361,752 [1] Payments to Cedar Creek’s shareholders include the purchase of common stock and certain escrow adjustments. [2] The Cedar Creek note payable to a shareholder of $13.7 million was paid in full upon the acquisition of Cedar Creek and included $10 million in subordinated debt and $3.7 million in accrued interest. [3] To finance the acquisition of Cedar Creek, the Company amended and restated its Revolving Credit Facility to increase the capacity thereunder to $600.0 million and also entered into a new $180.0 million senior secured Term Loan Facility. (See Note 6) The following table summarizes the values of the assets acquired and liabilities assumed at the date of the acquisition: (In thousands) Allocation as of December 29, 2018 Cash and net working capital assets $ 88,318 Inventory 159,227 Property and equipment 71,203 Other, net (1,395 ) Intangible assets and goodwill: Customer relationships 25,500 Non-compete agreements 8,254 Trade names 6,826 Favorable leasehold interests 800 Goodwill 47,772 Finance leases and other liabilities (44,753 ) Cash purchase price $ 361,752 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Definite-Lived Intangible Assets | At September 28, 2019 , the gross carrying amounts, the accumulated amortization, and the net carrying amounts of our definite-lived intangible assets were as follows: (In thousands) Gross carrying amounts Accumulated Amortization [1] Net carrying amounts Customer relationships $ 25,500 $ (5,885 ) $ 19,615 Noncompete agreements 8,254 (3,016 ) 5,238 Trade names 6,826 (3,325 ) 3,501 Total $ 40,580 $ (12,226 ) $ 28,354 [1] Intangible assets except customer relationships are amortized on straight line basis. Customer relationships are amortized on a double declining balance method. |
Schedule of Definite-Lived Intangible Asset Amortization | Estimated amortization expense for definite-lived intangible assets for the remaining portion of 2019 and the next five fiscal years is as follows: (In thousands) Estimated Amortization 2019 $ 1,970 2020 7,461 2021 4,973 2022 3,111 2023 1,807 2024 1,505 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues Disaggregated by Revenue Source and Sales Channel | The following table presents our revenues disaggregated by revenue source. Certain prior year amounts have been reclassified to conform to the current year product mix of structural and specialty products. Sales and usage-based taxes are excluded from revenues. Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (In thousands) Structural products $ 225,522 $ 312,510 $ 646,513 $ 833,412 Specialty products 453,143 547,266 1,377,301 1,356,803 Total net sales $ 678,665 $ 859,776 $ 2,023,814 $ 2,190,215 Also, due to the acquisition and integration of Cedar Creek, our reload sales are less distinct from warehouse sales as they have been traditionally classified. The following table presents our revenues disaggregated by sales channel. Certain prior year amounts have been reclassified to conform to the current year revenues disaggregated by sales channel. Sales and usage-based taxes are excluded from revenues. Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (In thousands) Warehouse and reload $ 577,172 $ 716,604 $ 1,693,206 $ 1,815,531 Direct 114,586 153,847 360,252 402,420 Service revenue 272 981 1,033 2,872 Customer discounts and rebates (13,365 ) (11,656 ) (30,677 ) (30,608 ) Total net sales $ 678,665 $ 859,776 $ 2,023,814 $ 2,190,215 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | As of September 28, 2019 , and December 29, 2018 , long-term debt consisted of the following: September 28, December 29, (In thousands) Maturity Date 2019 2018 Revolving Credit Facility (net of discounts and debt issuance October 10, 2022 $ 349,982 $ 327,319 Term Loan Facility (net of discounts and debt issuance costs October 13, 2023 139,905 172,356 Total debt 489,887 499,675 Less: current portion of long-term debt (1,790 ) (1,736 ) Long-term debt, net $ 488,097 $ 497,939 |
Schedule of Principal Payment Schedule | Our remaining scheduled principal payments for fiscal 2019 and the following fiscal years, and thereafter, are as follows: (In thousands) 2019 $ 527 2020 2,250 2021 1,800 2022 1,800 Thereafter 140,824 |
Net Periodic Pension Cost (Tabl
Net Periodic Pension Cost (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic pension cost for pension plans | The following table shows the components of our net periodic pension cost: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Service cost $ 29 $ 133 $ 190 $ 399 Interest cost on projected benefit obligation 881 963 2,899 2,889 Expected return on plan assets (1,339 ) (1,327 ) (3,828 ) (3,981 ) Amortization of unrecognized loss 278 271 857 813 Net periodic pension cost (benefit) $ (151 ) $ 40 $ 118 $ 120 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Lease Cost | The components of lease expense were as follows: Three Months Ended September 28, 2019 Nine Months Ended September 28, 2019 (In thousands) Operating lease cost: $ 2,911 $ 9,047 Finance lease cost: Amortization of right-of-use assets $ 2,589 $ 8,481 Interest on lease liabilities 3,467 10,764 Total finance lease costs $ 6,056 $ 19,245 Supplemental cash flow information related to leases was as follows: Three Months Ended September 28, 2019 Nine Months Ended September 28, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,990 $ 8,957 Operating cash flows from finance leases 3,467 10,764 Financing cash flows from finance leases 2,213 6,445 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — Finance leases 14,403 18,652 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: (In thousands) September 28, 2019 Finance leases Property and equipment $ 168,247 Accumulated depreciation (22,457 ) Property and equipment, net $ 145,790 Weighted Average Remaining Lease Term (in years) Operating leases 12.14 Finance leases 20.36 Weighted Average Discount Rate Operating leases 9.44 % Finance leases 10.93 % |
Operating Lease Maturities | As of September 28, 2019 , maturities of lease liabilities were as follows: (In thousands) Operating leases Finance leases 2019 $ 3,380 $ 6,232 2020 9,403 22,877 2021 7,485 20,203 2022 6,111 19,216 2023 5,733 18,630 Thereafter 53,118 307,018 Total lease payments $ 85,230 $ 394,176 Less: imputed interest (31,431 ) (230,545 ) Total $ 53,799 $ 163,631 |
Finance Lease Maturities | As of September 28, 2019 , maturities of lease liabilities were as follows: (In thousands) Operating leases Finance leases 2019 $ 3,380 $ 6,232 2020 9,403 22,877 2021 7,485 20,203 2022 6,111 19,216 2023 5,733 18,630 Thereafter 53,118 307,018 Total lease payments $ 85,230 $ 394,176 Less: imputed interest (31,431 ) (230,545 ) Total $ 53,799 $ 163,631 |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 29, 2018 , our total operating lease commitments were as follows: (In thousands) 2019 $ 11,980 2020 9,928 2021 8,435 2022 8,066 2023 7,539 Thereafter 60,847 Total $ 106,795 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
Schedule of changes in accumulated balances for each component of other comprehensive income (loss) | The changes in balances for each component of accumulated other comprehensive loss for the nine months ended September 28, 2019 , were as follows: (In thousands) Foreign currency, net of tax Defined benefit pension plan, net of tax Other, net of tax Total Accumulated Other Comprehensive Loss December 29, 2018, beginning balance $ 660 $ (38,001 ) $ 212 $ (37,129 ) Other comprehensive income, net of tax [1] (2 ) (2,035 ) 9 (2,028 ) September 28, 2019, ending balance, net of tax $ 658 $ (40,036 ) $ 221 $ (39,157 ) ____ ____________________________ [1] For the nine months ended September 28, 2019 , the actuarial loss recognized in the Condensed Consolidated Statements of Operations and Comprehensive Loss as a component of net periodic pension cost was $2.7 million , net of tax of $0.7 million . Please see Note 7, Net Periodic Pension Cost, for further information. |
Loss per Share (Tables)
Loss per Share (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) per Share | The reconciliation of basic loss and diluted loss per common share for the three- and nine -month periods of fiscal 2019 and 2018 were as follows: Three Months Ended Nine Months Ended (in thousands, except per share data) September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Net loss $ (7,043 ) $ (9,896 ) $ (7,461 ) $ (31,881 ) Weighted-average shares outstanding - basic 9,366 9,274 9,351 9,209 Dilutive effect of share-based awards — — — — Weighted-average shares outstanding - diluted 9,366 9,274 $ 9,351 $ 9,209 Basic loss per share $ (0.75 ) $ (1.07 ) $ (0.80 ) $ (3.46 ) Diluted loss per share $ (0.75 ) $ (1.07 ) $ (0.80 ) $ (3.46 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Jan. 01, 2019 | Dec. 30, 2018 | Dec. 29, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease assets | $ 53,689 | $ 0 | ||
Operating lease liability | 53,799 | |||
Cumulative impact, deferred gains | $ 1,291 | |||
ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease assets | $ 57,500 | |||
Operating lease liability | $ 57,500 | |||
Cumulative impact, deferred gains | $ 1,700 | |||
Accounts Payable | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Outstanding checks and electronic payments | $ 39,800 | $ 17,400 |
Acquisition of Cedar Creek - Na
Acquisition of Cedar Creek - Narrative (Details) - USD ($) shares in Thousands | Apr. 13, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 |
Business Acquisition [Line Items] | ||||||
Antidilutive securities excluded from diluted shares calculation (in shares) | 114 | 0 | 0 | 100 | ||
Cedar Creek | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate purchase price | $ 361,752,000 | |||||
Transaction related costs | $ 1,800,000 | $ 3,700,000 | $ 8,400,000 | $ 40,300,000 | ||
Note payable to shareholder | 13,700,000 | |||||
Subordinated debt | 10,000,000 | |||||
Interest payable | 3,700,000 | |||||
Revolving Credit Facility | Line of Credit | ||||||
Business Acquisition [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 750,000,000 | 750,000,000 | ||||
Long-term line of credit facility | 354,800,000 | 354,800,000 | $ 333,300,000 | |||
Revolving Credit Facility | Line of Credit | Cedar Creek | ||||||
Business Acquisition [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | |||||
Term Loan | Secured Debt | ||||||
Business Acquisition [Line Items] | ||||||
Long-term line of credit facility | $ 180,000,000 | $ 180,000,000 |
Acquisition of Cedar Creek - Pr
Acquisition of Cedar Creek - Proforma Income Statement (Details) - Cedar Creek - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Business Acquisition [Line Items] | ||||
Net sales | $ 678,665 | $ 859,776 | $ 2,023,814 | $ 2,592,597 |
Net income (loss) | $ (5,194) | $ (6,219) | $ 937 | $ (5,455) |
Earnings (loss) per common share: | ||||
Basic (in dollars per share) | $ (0.55) | $ (0.67) | $ 0.10 | $ (0.59) |
Diluted (in dollars per share) | $ (0.55) | $ (0.67) | $ 0.10 | $ (0.59) |
Acquisition of Cedar Creek - _2
Acquisition of Cedar Creek - Preliminary Cash Purchase Price (Details) - Cedar Creek $ in Thousands | Apr. 13, 2018USD ($) |
Business Acquisition [Line Items] | |
Payments to Cedar Creek shareholders | $ 166,447 |
Subordinated unsecured note (due to shareholder) | 13,743 |
Seller’s transaction costs paid by Company | 7,349 |
Repayment of Cedar Creek debt | 174,213 |
Total cash purchase price | $ 361,752 |
Acquisition of Cedar Creek - Ca
Acquisition of Cedar Creek - Cash Purchase Price (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Business Acquisition [Line Items] | ||
Goodwill | $ 47,772 | $ 47,772 |
Cedar Creek | ||
Business Acquisition [Line Items] | ||
Cash and net working capital assets (excluding inventory) | 88,318 | |
Inventory | 159,227 | |
Property and equipment | 71,203 | |
Other, net | (1,395) | |
Goodwill | 47,772 | |
Finance leases and other liabilities | (44,753) | |
Cash purchase price | 361,752 | |
Customer relationships | Cedar Creek | ||
Business Acquisition [Line Items] | ||
Intangible assets | 25,500 | |
Noncompete agreements | Cedar Creek | ||
Business Acquisition [Line Items] | ||
Intangible assets | 8,254 | |
Trade names | Cedar Creek | ||
Business Acquisition [Line Items] | ||
Intangible assets | 6,826 | |
Favorable leasehold interests | Cedar Creek | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 800 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 47,772 | $ 47,772 | $ 47,772 | ||
Amortization of intangible assets | $ 2,000 | $ 2,100 | $ 6,100 | $ 4,000 | |
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful lives | 11 years | ||||
Noncompete agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful lives | 3 years | ||||
Trade names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful lives | 2 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Definite Lived Intangible Assets (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Gross carrying amounts | $ 40,580 |
Accumulated Amortization | (12,226) |
Net carrying amounts | 28,354 |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Gross carrying amounts | 25,500 |
Accumulated Amortization | (5,885) |
Net carrying amounts | 19,615 |
Noncompete agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Gross carrying amounts | 8,254 |
Accumulated Amortization | (3,016) |
Net carrying amounts | 5,238 |
Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Gross carrying amounts | 6,826 |
Accumulated Amortization | (3,325) |
Net carrying amounts | $ 3,501 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Amortization Expense (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 1,970 |
2020 | 7,461 |
2021 | 4,973 |
2022 | 3,111 |
2023 | 1,807 |
2024 | $ 1,505 |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019USD ($)day | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($)day | Sep. 29, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Standard terms of payment, number of days | day | 10 | 10 | ||
Net sales | $ 678,665 | $ 859,776 | $ 2,023,814 | $ 2,190,215 |
Warehouse and reload | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 577,172 | 716,604 | 1,693,206 | 1,815,531 |
Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 114,586 | 153,847 | 360,252 | 402,420 |
Service revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 272 | 981 | 1,033 | 2,872 |
Customer discounts and rebates | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (13,365) | (11,656) | (30,677) | (30,608) |
Structural products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 225,522 | 312,510 | 646,513 | 833,412 |
Specialty products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 453,143 | $ 547,266 | $ 1,377,301 | $ 1,356,803 |
Assets Held for Sale and Net _2
Assets Held for Sale and Net Gain on Disposition (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019USD ($)property | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($)property | Sep. 29, 2018USD ($) | Dec. 29, 2018USD ($)property | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gains from sales of property | $ | $ 38 | $ 0 | $ 9,798 | $ 0 | |
Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of properties held for sale | property | 4 | 4 | 6 | ||
Number of properties sold | property | 3 | ||||
Net book value of assets held for sale | $ | $ 2,100 | $ 2,100 | $ 3,100 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 489,887 | $ 499,675 |
Less: current portion of long-term debt | (1,790) | (1,736) |
Long-term debt, net | 488,097 | 497,939 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 349,982 | 327,319 |
Deferred financing fees | 4,900 | 6,000 |
Term Loan Facility | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 139,905 | 172,356 |
Deferred financing fees | $ 7,300 | $ 6,700 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Apr. 13, 2018 | Sep. 28, 2019 | Dec. 29, 2018 |
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | ||
Letters of credit | 30,000,000 | ||
Minimum remaining borrowing capacity before fixed covered ratio is applicable | $ 50,000,000 | ||
Minimum percentage of borrowing base and maximum borrowing capacity to apply fixed charge coverage ratio | 10.00% | ||
Interest coverage ratio, minimum | 1 | ||
Long-term line of credit facility | $ 354,800,000 | $ 333,300,000 | |
Line of credit facility, remaining borrowing capacity | $ 98,200,000 | $ 91,700,000 | |
Line of credit facility, interest rate at period end | 4.40% | 4.60% | |
Cedar Creek | |||
Debt Instrument [Line Items] | |||
Repayments of debt | $ 174,213,000 | ||
Cedar Creek | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 600,000,000 | ||
Line of credit facility, additional borrowing capacity under uncommitted accordion feature | 150,000,000 | ||
LIBOR | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Variable rate basis | LIBOR | ||
LIBOR | Minimum | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.75% | ||
LIBOR | Maximum | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread | 2.25% | ||
Base Rate | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Variable rate basis | agent’s base rate | ||
Base Rate | Minimum | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread | 0.75% | ||
Base Rate | Maximum | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.25% | ||
Term Loan Facility | Secured Debt | |||
Debt Instrument [Line Items] | |||
Long-term line of credit facility | $ 180,000,000 | ||
Face amount | 180,000,000 | ||
Quarterly term loan principal payments | $ 450,000 | ||
Long-term debt, gross | $ 147,200,000 | $ 179,100,000 | |
Stated interest rate | 9.10% | 9.30% | |
Term Loan Facility | Maximum | Secured Debt | |||
Debt Instrument [Line Items] | |||
Net leverage ratio | 7.50 | ||
Term Loan Facility | Base Rate | Secured Debt | |||
Debt Instrument [Line Items] | |||
Variable rate basis | Base Rate | ||
Basis spread | 6.00% | ||
Term Loan Facility | Base Rate | Minimum | Secured Debt | |||
Debt Instrument [Line Items] | |||
Basis spread | 2.00% | ||
Term Loan Facility | ICE Benchmark Administration LIBOR Rate | Secured Debt | |||
Debt Instrument [Line Items] | |||
Variable rate basis | ICE Benchmark Administration LIBOR Rate | ||
Term Loan Facility | Prime Rate | Secured Debt | |||
Debt Instrument [Line Items] | |||
Variable rate basis | U.S. prime lending rate | ||
Term Loan Facility | Federal Funds Effective Swap Rate | Secured Debt | |||
Debt Instrument [Line Items] | |||
Variable rate basis | Federal Funds Effective Rate | ||
Basis spread | 0.50% | ||
Term Loan Facility | Eurodollar | Secured Debt | |||
Debt Instrument [Line Items] | |||
Variable rate basis | Eurodollar Rate | ||
Basis spread | 7.00% | ||
Term Loan Facility | Eurodollar | Minimum | Secured Debt | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.00% |
Long-Term Debt - Maturities of
Long-Term Debt - Maturities of Long-Term Debt (Details) - Term Loan - Secured Debt $ in Thousands | Sep. 28, 2019USD ($) |
Debt Instrument [Line Items] | |
2019 | $ 527 |
2020 | 2,250 |
2021 | 1,800 |
2022 | 1,800 |
Thereafter | $ 140,824 |
Net Periodic Pension Cost (Deta
Net Periodic Pension Cost (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($)employee | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($)employee | Sep. 29, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 29 | $ 133 | $ 190 | $ 399 | |
Interest cost on projected benefit obligation | 881 | 963 | 2,899 | 2,889 | |
Expected return on plan assets | (1,339) | (1,327) | (3,828) | (3,981) | |
Amortization of unrecognized loss | 278 | 271 | 857 | 813 | |
Net periodic pension cost (benefit) | $ (151) | $ 40 | $ 118 | $ 120 | |
Number of participants not accruing future years of service | employee | 49 | 49 | |||
Decrease in pension benefit obligation | $ 100 | $ 300 | |||
Decrease to AOCI, plan asset valuation | $ 2,500 | $ 2,700 | |||
Forecast | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected lump sum pension payment | $ 9,500 |
Stock Compensation (Details)
Stock Compensation (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019USD ($)trading_day$ / shares | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ | $ 1.2 | $ 1.7 | $ 2.5 | $ 14.7 |
Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Trading day average (in days) | trading_day | 20 | |||
Weighted average exercise price (in dollars per share) | $ / shares | $ 7 | |||
Stock Appreciation Rights (SARs) | Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 30 days | |||
Stock Appreciation Rights (SARs) | Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Jan. 01, 2019 | Dec. 30, 2018 | Dec. 29, 2018 |
Operating Leased Assets [Line Items] | ||||
Operating lease assets | $ 53,689 | $ 0 | ||
Operating lease liability | $ 53,799 | |||
Lease renewal term | 5 years | |||
Minimum | ||||
Operating Leased Assets [Line Items] | ||||
Lease term | 1 year | |||
Maximum | ||||
Operating Leased Assets [Line Items] | ||||
Lease term | 15 years | |||
ASU 2016-02 | ||||
Operating Leased Assets [Line Items] | ||||
Operating lease assets | $ 57,500 | |||
Operating lease liability | $ 57,500 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 28, 2019 | Sep. 28, 2019 | |
Leases [Abstract] | ||
Operating lease cost: | $ 2,911 | $ 9,047 |
Amortization of right-of-use assets | 2,589 | 8,481 |
Interest on lease liabilities | 3,467 | 10,764 |
Total finance lease costs | $ 6,056 | $ 19,245 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 28, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 2,990 | $ 8,957 | |
Operating cash flows from finance leases | 3,467 | 10,764 | |
Financing cash flows from finance leases | 2,213 | 6,445 | $ 5,890 |
Operating leases | 0 | 0 | |
Finance leases | $ 14,403 | $ 18,652 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Finance leases | |
Property and equipment | $ 168,247 |
Accumulated depreciation | (22,457) |
Property and equipment, net | $ 145,790 |
Weighted Average Remaining Lease Term (in years) | |
Operating leases | 12 years 1 month 20 days |
Finance leases | 20 years 4 months 9 days |
Weighted Average Discount Rate | |
Operating leases | 9.44% |
Finance leases | 10.93% |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Finance leases | |
2019 | $ 6,232 |
2020 | 22,877 |
2021 | 20,203 |
2022 | 19,216 |
2023 | 18,630 |
Thereafter | 307,018 |
Total lease payments | 394,176 |
Less: imputed interest | (230,545) |
Total | 163,631 |
Operating leases | |
2019 | 3,380 |
2020 | 9,403 |
2021 | 7,485 |
2022 | 6,111 |
2023 | 5,733 |
Thereafter | 53,118 |
Total lease payments | 85,230 |
Less: imputed interest | (31,431) |
Total | $ 53,799 |
Leases - Minimum Payments Due (
Leases - Minimum Payments Due (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 11,980 |
2020 | 9,928 |
2021 | 8,435 |
2022 | 8,066 |
2023 | 7,539 |
Thereafter | 60,847 |
Total | $ 106,795 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Sep. 28, 2019employee |
Other Commitments [Line Items] | |
Percentage of employees represented by various labor unions | 20.00% |
Percentage of employees covered by CBAs | 1.00% |
Minimum | |
Other Commitments [Line Items] | |
Entity number of employees | 2,200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ (12,835) | $ 12,356 | $ (14,663) | $ 35,002 |
Other comprehensive income, net of tax | (1,850) | 201 | (2,028) | 602 |
Other | (7) | 0 | 9 | 0 |
Ending balance | (20,571) | 2,224 | (20,571) | 2,224 |
Total Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (37,307) | (36,106) | (37,129) | (36,507) |
Ending balance | (39,157) | $ (35,905) | (39,157) | $ (35,905) |
Foreign currency, net of tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 660 | |||
Other comprehensive income, net of tax | (2) | |||
Ending balance | 658 | 658 | ||
Defined benefit pension plan, net of tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (38,001) | |||
Other comprehensive income, net of tax | (2,035) | |||
Ending balance | (40,036) | (40,036) | ||
Other, net of tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 212 | |||
Other | 9 | |||
Ending balance | $ 221 | 221 | ||
Accumulated defined benefit plan adjustment, net gain (loss) attributable to parent | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Reclassification of actuarial loss | 2,700 | |||
Reclassification of actuarial loss, tax | $ 700 |
Loss per Share (Details)
Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Earnings Per Share [Abstract] | ||||||||
Antidilutive securities excluded from diluted shares calculation (in shares) | 114 | 0 | 0 | 100 | ||||
Net loss | $ (7,043) | $ 6,301 | $ (6,719) | $ (9,896) | $ (8,558) | $ (13,427) | $ (7,461) | $ (31,881) |
Weighted-average shares outstanding - basic (in shares) | 9,366 | 9,274 | 9,351 | 9,209 | ||||
Dilutive effect of share-based awards (in shares) | 0 | 0 | 0 | 0 | ||||
Weighted-average shares outstanding - diluted (in shares) | 9,366 | 9,274 | 9,351 | 9,209 | ||||
Basic loss per share (in dollars per share) | $ (0.75) | $ (1.07) | $ (0.80) | $ (3.46) | ||||
Diluted loss per share (in dollars per share) | $ (0.75) | $ (1.07) | $ (0.80) | $ (3.46) |
Uncategorized Items - bxc092820
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,291,000 |