Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 28, 2020 | May 04, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 28, 2020 | |
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 $0.01 per share | |
Trading Symbol | BXC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,368,874 | |
Entity Central Index Key | 0001301787 | |
Current Fiscal Year Date | --12-28 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash | $ 12,558 | $ 11,643 |
Receivables, less allowances of $3,875 and $3,236, respectively | 247,940 | 192,872 |
Inventories, net | 378,634 | 345,806 |
Other current assets | 26,437 | 27,718 |
Total current assets | 665,569 | 578,039 |
Property and equipment: | ||
Property and equipment, at cost | 308,288 | 308,067 |
Accumulated depreciation | (117,036) | (112,299) |
Property and equipment, net | 191,252 | 195,768 |
Operating lease right-of-use assets | 52,502 | 54,408 |
Goodwill | 47,772 | 47,772 |
Intangible assets, net | 24,414 | 26,384 |
Deferred tax assets | 59,308 | 53,993 |
Other non-current assets | 20,404 | 15,061 |
Total assets | 1,061,221 | 971,425 |
Current liabilities: | ||
Accounts payable | 162,398 | 132,348 |
Accrued compensation | 8,216 | 7,639 |
Current maturities of long-term debt, net of discount and debt issuance costs of $74 and $74, respectively | 2,176 | 2,176 |
Finance leases - short-term | 5,924 | 6,385 |
Real estate deferred gains - short-term | 3,935 | 3,935 |
Operating lease liabilities - short-term | 7,016 | 7,317 |
Other current liabilities | 9,903 | 11,323 |
Total current liabilities | 199,568 | 171,123 |
Non-current liabilities: | ||
Long-term debt, net of discount and debt issuance costs of $11,861 and $12,481, respectively | 444,937 | 458,439 |
Real estate financing obligation | 123,765 | 44,914 |
Finance leases - long-term | 145,427 | 146,611 |
Real estate deferred gains - long-term | 80,935 | 81,886 |
Operating lease liabilities - long-term | 45,571 | 47,091 |
Pension benefit obligation | 22,596 | 23,420 |
Other non-current liabilities | 24,106 | 24,024 |
Total liabilities | 1,086,905 | 997,508 |
Commitments and Contingencies | ||
STOCKHOLDERS’ DEFICIT: | ||
Common Stock, $0.01 par value, 20,000,000 shares authorized, 9,366,641 and 9,365,768 outstanding on March 28, 2020 and December 28, 2019, respectively | 94 | 94 |
Additional paid-in capital | 261,980 | 260,974 |
Accumulated other comprehensive loss | (34,383) | (34,563) |
Accumulated stockholders’ deficit | (253,375) | (252,588) |
Total stockholders’ deficit | (25,684) | (26,083) |
Total liabilities and stockholders’ deficit | $ 1,061,221 | $ 971,425 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 662,070 | $ 638,701 |
Cost of sales | 568,861 | 552,656 |
Gross profit | 93,209 | 86,045 |
Operating expenses: | ||
Selling, general, and administrative | 77,769 | 74,410 |
Gains from sales of property | (525) | 0 |
Depreciation and amortization | 7,635 | 7,328 |
Total operating expenses | 84,879 | 81,738 |
Operating income | 8,330 | 4,307 |
Non-operating expenses (income): | ||
Interest expense, net | 14,380 | 13,401 |
Other (income) expense, net | (237) | 150 |
Loss before benefit from income taxes | (5,813) | (9,244) |
Benefit from income taxes | (5,026) | (2,525) |
Net loss | $ (787) | $ (6,719) |
Basic loss per share (in dollars per share) | $ (0.08) | $ (0.72) |
Diluted loss per share (in dollars per share) | $ (0.08) | $ (0.72) |
Comprehensive loss: | ||
Net loss | $ (787) | $ (6,719) |
Other comprehensive income (loss): | ||
Foreign currency translation, net of tax | 3 | 7 |
Amortization of unrecognized pension loss, net of tax | 196 | 224 |
Pension curtailment, net of tax | 0 | 853 |
Other | (19) | 15 |
Total other comprehensive income | 180 | 1,099 |
Comprehensive loss | $ (607) | $ (5,620) |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 3,875 | $ 3,236 |
Debt discount, current | 74 | 74 |
Debt discount, noncurrent | $ 11,861 | $ 12,481 |
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) | 9,366,641 | 9,365,768 |
Common stock, shares outstanding (in shares) | 9,366,641 | 9,365,768 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (787) | $ (6,719) |
Adjustments to reconcile net loss to cash used in operations: | ||
Benefit from income taxes | (5,026) | (2,525) |
Depreciation and amortization | 7,635 | 7,328 |
Amortization of debt issuance costs | 956 | 455 |
Gains from sales of property | 525 | 0 |
Share-based compensation | 1,004 | 706 |
Amortization of deferred gain | (984) | (951) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (55,068) | (37,908) |
Inventories | (32,828) | (45,479) |
Accounts payable | 30,050 | 26,004 |
Prepaid and other current assets | (3,006) | (423) |
Other assets and liabilities | (608) | 1,191 |
Net cash used in operating activities | (59,187) | (58,321) |
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | 0 | 6,009 |
Proceeds from sale of assets | 44 | 143 |
Property and equipment investments | (1,245) | (1,223) |
Net cash (used in) provided by investing activities | (1,201) | 4,929 |
Cash flows from financing activities: | ||
Borrowings on revolving credit facilities | 204,196 | 197,114 |
Repayments on revolving credit facilities | (149,079) | (136,892) |
Repayments on term loan | (69,238) | (900) |
Principal payments on real estate financing obligations | (340) | 0 |
Proceeds from real estate financing obligations | 78,329 | 0 |
Debt financing costs | (336) | 0 |
Repurchase of shares to satisfy employee tax withholdings | (7) | 0 |
Principal payments on finance lease obligations | (2,222) | (2,187) |
Net cash provided by financing activities | 61,303 | 57,135 |
Net change in cash | 915 | 3,743 |
Cash at beginning of period | 11,643 | 8,939 |
Cash at end of period | $ 12,558 | $ 12,682 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 29, 2018 | 9,294,000 | ||||
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) | 49,000 | ||||
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 | 9,343,000 | ||||
Ending balance at Mar. 30, 2019 | (18,285) | $ 93 | 259,302 | (36,030) | (241,650) |
Beginning balance (in shares) at Dec. 28, 2019 | 9,366,000 | ||||
Beginning balance at Dec. 28, 2019 | (26,083) | $ 94 | 260,974 | (34,563) | (252,588) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (787) | (787) | |||
Foreign currency translation, net of tax | 3 | 3 | |||
Unrealized gain from pension plan, net of tax | 196 | 196 | |||
Vesting of restricted stock units (in shares) | 2,000 | ||||
Vesting of restricted stock units | 12 | 12 | |||
Compensation related to share-based grants | 1,004 | 1,004 | |||
Repurchase of shares to satisfy employee tax withholdings (in shares) | (1,000) | ||||
Repurchase of shares to satisfy employee tax withholdings | (7) | (7) | |||
Other | (22) | (3) | (19) | 0 | |
Ending balance (in shares) at Mar. 28, 2020 | 9,367,000 | ||||
Ending balance at Mar. 28, 2020 | $ (25,684) | $ 94 | $ 261,980 | $ (34,383) | $ (253,375) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim Condensed Consolidated Financial Statements include the accounts of BlueLinx Holdings Inc. and its wholly owned subsidiaries (“the Company”). Our independent registered public accounting firm has not audited the accompanying interim financial statements. We derived the condensed consolidated balance sheet at March 28, 2020 , from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2019 (the “Fiscal 2019 Form 10-K”), as filed with the Securities and Exchange Commission on March 11, 2020 . In the opinion of our management, the condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of our statements of operations and comprehensive loss for the three months ended March 28, 2020 , and March 30, 2019 , our balance sheets at March 28, 2020 and December 28, 2019 , our statements of cash flows for the three months ended March 28, 2020 and March 30, 2019 , and our statements of stockholders’ deficit for the three months ended March 28, 2020 and March 30, 2019 . We have condensed or omitted certain notes and other information from the interim condensed consolidated financial statements presented in this report. Therefore, these condensed consolidated interim financial statements should be read in conjunction with the Fiscal 2019 Form 10-K. In addition, certain prior period amounts have been reclassified to conform to the current period's presentation. These reclassifications did not materially impact operating income or consolidated net loss. The results for the three months ended March 28, 2020 , are not necessarily indicative of results that may be expected for the full year ending January 2, 2021 , or any other interim period. We operate on a 5-4-4 fiscal calendar. Our fiscal year ends on the Saturday closest to December 31 of that fiscal year and may comprise 53 weeks in certain years. Our 2020 fiscal year contains 53 weeks and ends on January 2, 2021 . Fiscal 2019 contained 52 weeks and ended on December 28, 2019 . Our financial statements are prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP), which requires us to make estimates based on assumptions about current and, for some estimates, future economic and market conditions, which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position. Some of our estimates may be affected by the ongoing novel coronavirus (COVID-19) pandemic. The severity, magnitude, and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly changing, and difficult to predict. As a result, our accounting estimates and assumptions may change over time in response to COVID-19. On April 13, 2018, we completed the acquisition of Cedar Creek Holdings, Inc. (“Cedar Creek”). The accounting for the Cedar Creek acquisition was finalized on December 29, 2018 and is included in the consolidated financial information presented herein. Reclassification of Prior Year Presentation An adjustment has been made to the Condensed Consolidated Statements of Cash Flows for the three months ended March 28, 2020 , and March 30, 2019 , to include outstanding payments as part of the change in accounts payable within cash flows from operating activities. In previous periods, this change was included within cash flows from financing activities. We believe this classification is a preferable way to present our cash flows as outstanding payments are included in accounts payable within our Condensed Consolidated Balance Sheet. 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 corresponding 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. Expenses are recognized in the consolidated statement of income 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 as of the adoption date. Additionally, $1.7 million of deferred gains associated with sale-leaseback transactions was recorded as a cumulative-effect adjustment to accumulated deficit. Accounting Standards Effective in Future Periods 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. ASU 2019-10 extended the effective date of ASU 2016-13 to interim and annual periods beginning after December 22, 2022, for certain public business entities, including smaller reporting companies. 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. Income Taxes . In December 2019, the FASB issued ASU No.2019-12, “Income taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. The amendments in this standard are effective for interim periods and fiscal years beginning after December 15, 2020. Early adoption is permitted. We are currently assessing the impact of the new guidance, but do not expect the adoption to have a material impact on the Company’s consolidated financial position, results of operations, or cash flows. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 28, 2020 | |
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 March 28, 2020 , 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 March 28, 2020 , 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 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. Our one reporting unit has a negative carrying amount of net assets as of March 28, 2020 . Definite-Lived Intangible Assets. On March 28, 2020 , the gross carrying amounts, accumulated amortization, and 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 $ (7,655 ) $ 17,845 Noncompete agreements 8,254 (4,048 ) 4,206 Trade names 6,826 (4,463 ) 2,363 Total $ 40,580 $ (16,166 ) $ 24,414 [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 10 years, 2 years, and 1 year, respectively. Amortization expense for the definite-lived intangible assets for the three -month periods ended March 28, 2020 , and March 30, 2019 , was $2.0 million and $2.1 million , respectively. Estimated amortization expense for definite-lived intangible assets for the remaining portion of 2020 and the next four fiscal years is as follows: (In thousands) Estimated Amortization 2020 $ 5,490 2021 4,973 2022 3,111 2023 1,807 2024 1,505 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 28, 2020 | |
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. 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, 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. 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 March 28, 2020 March 30, 2019 (In thousands) Structural products $ 240,778 $ 196,786 Specialty products 421,292 441,915 Total net sales $ 662,070 $ 638,701 Also, due to the 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 March 28, 2020 March 30, 2019 (In thousands) Warehouse and reload $ 545,892 $ 523,179 Direct 125,582 123,404 Customer discounts and rebates (9,404 ) (7,882 ) Total net sales $ 662,070 $ 638,701 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 outbound shipping and handling activities as an expense. |
Assets Held for Sale
Assets Held for Sale | 3 Months Ended |
Mar. 28, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale Three of our non-operating properties were designated as held for sale as of March 28, 2020 . These properties consisted of three former distribution facilities located in the Midwest and Southeast. We vacated these properties and designated them as held for sale during fiscal 2019 due to their proximity to other locations after the Cedar Creek acquisition. As of March 28, 2020 , and December 28, 2019 , the net book value of total assets held for sale was $1.1 million and was included in “Other current assets” in our Condensed Consolidated Balance Sheets. We continue to actively market all properties that are designated as held for sale, and we plan to sell these properties within the next 12 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 28, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Revolving Credit Facility We have a revolving credit facility that we entered into in April 2018 with Wells Fargo Bank, National Association, as administrative agent, and certain other financial institutions party thereto (the “Revolving Credit Facility”), with a maturity date of October 10, 2022 . The Revolving Credit facility includes a committed senior secured asset-based revolving loan and letter of credit facility of up to $600 million , and an uncommitted accordion feature that permits us to increase the facility by an aggregate additional principal amount of up to $150 million . Our obligations under the Revolving Credit Facility are secured by a security interest in substantially all of our assets other than real property. Loans under the Revolving Credit Facility bear interest 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 our 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 our excess availability for the immediately preceding fiscal quarter as calculated by the administrative agent, for loans based on the base rate. We amended the Revolving Credit Facility on January 31, 2020 , to provide that (i) the “Seasonal Period” will run from November 15, 2019 , through July 15, 2020 , for the calendar year 2019, and from December 15 of each calendar year through April 15 of each immediately succeeding calendar year for the calendar year 2020 and thereafter, and (ii) the measurement period in the definition of “Cash Dominion Event” will be five consecutive business days instead of three consecutive business days. The adjustment to the Seasonal Period better aligns advance rates under the Revolving Credit Facility with the seasonality in our business and provides us with an enhanced borrowing base and greater liquidity through July 15, 2020. As of March 28, 2020 , we had outstanding borrowings of $381.6 million , excess availability of $96.8 million , and a weighted average interest rate of 3.2 percent . As of December 28, 2019, our principal balance was $326.5 million , excess availability was $80.0 million , and our weighted average interest rate was 3.9 percent . The Revolving Credit Facility contains certain financial and other covenants, and our right to borrow under the Revolving Credit Facility is conditioned upon, among other things, our compliance with these covenants. We were in compliance with all covenants under the Revolving Credit Facility as of March 28, 2020 . Term Loan Facility We have a term loan facility that we entered into in April 2018 with HPS Investments Partners, LLC, as administrative and collateral agent, and certain other financial institutions party thereto (the “Term Loan Facility”), with a maturity date of October 13, 2023 . The Term Loan Facility provides for a senior secured first lien loan facility in an initial aggregate principal amount of $180 million and is secured by a security interest in substantially all of our assets. The Term Loan Facility requires monthly interest payments, and also requires quarterly principal payments of $450,000 , in arrears, with the remaining balance due on the maturity date. The Term Loan Facility also requires certain mandatory prepayments of outstanding loans, subject to certain exceptions. The Term Loan Facility required maintenance of a total net leverage ratio of 6.25 to 1.00 for the quarter ending March 28, 2020 , and requires a ratio of 8.75 to 1.00 for the second and third quarters of 2020, and ratio levels generally reduce over the remaining term of the Term Loan Facility. We were in compliance with all covenants under the Term Loan Facility as of March 28, 2020 . Borrowings under the Term Loan Facility 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; plus (ii) 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. We amended the Term Loan Facility on December 31, 2019 , to extend the period for satisfying the designated principal balance level required to maintain the modified total net leverage ratio covenant levels for the 2019 fourth and subsequent quarters thereunder, which was satisfied on January 31, 2020 , through repayments from proceeds from the real estate financing transactions described in Note 8. On February 28, 2020 , we further amended the Term Loan Facility to provide that we would not be subject to the facility’s total net leverage ratio covenant from and after the time, and then for so long as, the principal balance level under the facility is less than $45 million . On April 1, 2020 , we amended the Term Loan Facility to, among other things, modify the total net leverage ratio covenant levels for the 2020 second and third quarters. All other total net leverage ratio covenant levels for prior and future quarters were unchanged. As of March 28, 2020 , we had outstanding borrowings of $77.4 million under the Term Loan Facility and an interest rate of 8.6 percent per annum. As of December 28, 2019 , our principal balance was $146.7 million with an interest rate of 8.7 percent per annum. The decrease in the outstanding borrowings was due to net proceeds of the real estate financing transactions described in Note 8 being applied to the Term Loan Facility. |
Net Periodic Pension (Benefit)
Net Periodic Pension (Benefit) Cost | 3 Months Ended |
Mar. 28, 2020 | |
Retirement Benefits [Abstract] | |
Net Periodic Pension (Benefit) Cost | Net Periodic Pension (Benefit) Cost The following table shows the components of our net periodic pension (benefit) cost: Three Months Ended March 28, 2020 March 30, 2019 (in thousands) Service cost $ — $ 113 Interest cost on projected benefit obligation 723 1,045 Expected return on plan assets (1,210 ) (1,194 ) Amortization of unrecognized loss 263 300 Net periodic pension (benefit) cost $ (224 ) $ 264 |
Stock Compensation
Stock Compensation | 3 Months Ended |
Mar. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation | Stock Compensation Stock Compensation Expense During the three months ended March 28, 2020 , and March 30, 2019 , we incurred stock compensation expense of $1.0 million and $0.7 million |
Leases
Leases | 3 Months Ended |
Mar. 28, 2020 | |
Leases [Abstract] | |
Leases | Leases We determine if an arrangement is a lease at inception and assess lease classification as either operating or finance at lease inception or modification. Our operating and finance lease portfolio generally 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 right-of use (“ROU”) assets and liabilities are presented separately on the condensed consolidated balance sheets. Finance lease ROU 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 our mobile fleet asset class. 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 known changes to lease payments are included in the lease liability at lease commencement. Unknown changes related to 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 March 28, 2020 Three Months Ended March 30, 2019 (In thousands) Operating lease cost: $ 3,120 $ 3,144 Finance lease cost: Amortization of right-of-use assets $ 3,042 $ 2,896 Interest on lease liabilities 4,425 3,248 Total finance lease costs $ 7,467 $ 6,144 Supplemental cash flow information related to leases was as follows: Three Months Ended March 28, 2020 Three Months Ended March 30, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,774 $ 2,903 Operating cash flows from finance leases 4,425 3,248 Financing cash flows from finance leases 2,222 2,187 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — Finance leases — 787 Supplemental balance sheet information related to leases was as follows: March 28, 2020 December 28, 2019 (In thousands) Finance leases Property and equipment $ 155,927 $ 156,770 Accumulated depreciation (26,032 ) (23,364 ) Property and equipment, net $ 129,895 $ 133,406 Weighted Average Remaining Lease Term (in years) Operating leases 11.67 11.71 Finance leases 17.86 17.90 Weighted Average Discount Rate Operating leases 9.37 % 9.34 % Finance leases 10.48 % 10.33 % The major categories of our finance lease liabilities as of March 28, 2020 are as follows: March 28, 2020 December 28, 2019 (In thousands) Equipment and vehicles $ 30,808 $ 32,471 Real estate 120,543 120,525 Total finance leases $ 151,351 $ 152,996 As of March 28, 2020 , maturities of lease liabilities were as follows: Operating leases Finance leases (In thousands) 2020 $ 11,479 $ 15,927 2021 9,234 19,178 2022 7,922 18,350 2023 7,073 17,887 2024 6,753 17,324 Thereafter 48,887 284,409 Total lease payments $ 91,348 $ 373,075 Less: imputed interest (38,761 ) (221,724 ) Total $ 52,587 $ 151,351 On December 28, 2019 , our total operating lease commitments were as follows: (In thousands) 2020 $ 12,735 2021 10,092 2022 8,247 2023 7,899 2024 7,287 Thereafter 56,081 Total $ 102,341 Real Estate Transactions On December 31, 2019 , we completed four real estate financing transactions on warehouse facilities in Madison, TN; Kansas City, MO; Richmond, VA; and Bridgeton, MO for aggregate net proceeds of $27.2 million . On January 31, 2020 , we completed nine real estate financing transactions on warehouse facilities in Charlotte, NC; Memphis, TN; Independence, KY: San Antonio, TX; Portland, ME; Denville, NJ; Yaphank, NY; Pensacola, FL; and Tallmadge, OH for aggregate net proceeds of $34.1 million . On February 28, 2020 , we completed one real estate financing transaction on a warehouse facility in Elkhart, IN for net proceeds of $7.5 million . These fourteen real estate financing transactions were completed pursuant to sale-leaseback arrangements, and upon their completion, we entered into long-term leases on the properties for initial terms from fifteen to eighteen years with multiple five -year renewal options. We determined that these transactions did not qualify as sales in accordance with the FASB’s Accounting Standards Codification (“ASC”) Topic 842 and, for accounting purposes, the transactions were not accounted for as sale-leaseback transactions. When this occurs, the real estate transaction is accounted for as a financing transaction, whereby the gross proceeds are recorded as a financing obligation in our consolidated balance sheets in other current liabilities and in noncurrent liabilities as real estate financing obligations. The assets related to these transactions remain on our books and we continue to depreciate them. Gross proceeds of these transactions were $78.3 million . On March 28, 2020 , our future minimum payments related to the financing obligations under our real estate financing transactions entered into during 2019 and 2020 were as follows: (In thousands) 2020 $ 7,305 2021 9,922 2022 10,130 2023 10,343 2024 10,559 Thereafter 124,454 |
Leases | Leases We determine if an arrangement is a lease at inception and assess lease classification as either operating or finance at lease inception or modification. Our operating and finance lease portfolio generally 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 right-of use (“ROU”) assets and liabilities are presented separately on the condensed consolidated balance sheets. Finance lease ROU 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 our mobile fleet asset class. 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 known changes to lease payments are included in the lease liability at lease commencement. Unknown changes related to 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 March 28, 2020 Three Months Ended March 30, 2019 (In thousands) Operating lease cost: $ 3,120 $ 3,144 Finance lease cost: Amortization of right-of-use assets $ 3,042 $ 2,896 Interest on lease liabilities 4,425 3,248 Total finance lease costs $ 7,467 $ 6,144 Supplemental cash flow information related to leases was as follows: Three Months Ended March 28, 2020 Three Months Ended March 30, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,774 $ 2,903 Operating cash flows from finance leases 4,425 3,248 Financing cash flows from finance leases 2,222 2,187 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — Finance leases — 787 Supplemental balance sheet information related to leases was as follows: March 28, 2020 December 28, 2019 (In thousands) Finance leases Property and equipment $ 155,927 $ 156,770 Accumulated depreciation (26,032 ) (23,364 ) Property and equipment, net $ 129,895 $ 133,406 Weighted Average Remaining Lease Term (in years) Operating leases 11.67 11.71 Finance leases 17.86 17.90 Weighted Average Discount Rate Operating leases 9.37 % 9.34 % Finance leases 10.48 % 10.33 % The major categories of our finance lease liabilities as of March 28, 2020 are as follows: March 28, 2020 December 28, 2019 (In thousands) Equipment and vehicles $ 30,808 $ 32,471 Real estate 120,543 120,525 Total finance leases $ 151,351 $ 152,996 As of March 28, 2020 , maturities of lease liabilities were as follows: Operating leases Finance leases (In thousands) 2020 $ 11,479 $ 15,927 2021 9,234 19,178 2022 7,922 18,350 2023 7,073 17,887 2024 6,753 17,324 Thereafter 48,887 284,409 Total lease payments $ 91,348 $ 373,075 Less: imputed interest (38,761 ) (221,724 ) Total $ 52,587 $ 151,351 On December 28, 2019 , our total operating lease commitments were as follows: (In thousands) 2020 $ 12,735 2021 10,092 2022 8,247 2023 7,899 2024 7,287 Thereafter 56,081 Total $ 102,341 Real Estate Transactions On December 31, 2019 , we completed four real estate financing transactions on warehouse facilities in Madison, TN; Kansas City, MO; Richmond, VA; and Bridgeton, MO for aggregate net proceeds of $27.2 million . On January 31, 2020 , we completed nine real estate financing transactions on warehouse facilities in Charlotte, NC; Memphis, TN; Independence, KY: San Antonio, TX; Portland, ME; Denville, NJ; Yaphank, NY; Pensacola, FL; and Tallmadge, OH for aggregate net proceeds of $34.1 million . On February 28, 2020 , we completed one real estate financing transaction on a warehouse facility in Elkhart, IN for net proceeds of $7.5 million . These fourteen real estate financing transactions were completed pursuant to sale-leaseback arrangements, and upon their completion, we entered into long-term leases on the properties for initial terms from fifteen to eighteen years with multiple five -year renewal options. We determined that these transactions did not qualify as sales in accordance with the FASB’s Accounting Standards Codification (“ASC”) Topic 842 and, for accounting purposes, the transactions were not accounted for as sale-leaseback transactions. When this occurs, the real estate transaction is accounted for as a financing transaction, whereby the gross proceeds are recorded as a financing obligation in our consolidated balance sheets in other current liabilities and in noncurrent liabilities as real estate financing obligations. The assets related to these transactions remain on our books and we continue to depreciate them. Gross proceeds of these transactions were $78.3 million . On March 28, 2020 , our future minimum payments related to the financing obligations under our real estate financing transactions entered into during 2019 and 2020 were as follows: (In thousands) 2020 $ 7,305 2021 9,922 2022 10,130 2023 10,343 2024 10,559 Thereafter 124,454 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 28, 2020 | |
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 March 28, 2020 , 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”). Approximately 1 percent of our employees are covered by three CBAs that are up for renewal in fiscal 2020. As of March 28, 2020 , one of these CBAs was renewed and the remaining two are expected to be renegotiated later this year. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 28, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Comprehensive loss includes both net 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 three months ended March 28, 2020 , were as follows: Foreign currency, net of tax Defined benefit pension plan, net of tax Other, net of tax Total Accumulated Other Comprehensive Loss (In thousands) December 28, 2019, beginning balance $ 666 $ (35,441 ) $ 212 $ (34,563 ) Other comprehensive income, net of tax [1] 3 196 (19 ) 180 March 28, 2020, ending balance, net of tax $ 669 $ (35,245 ) $ 193 $ (34,383 ) [1] For the three months ended March 28, 2020 , the actuarial loss recognized in the Condensed Consolidated Statements of Operations and Comprehensive Loss as a component of net periodic pension cost was $0.3 million , net of tax of $0.1 million . Please see Note 6, Net Periodic Pension Cost, for further information. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted on March 27, 2020, and contained several measures meant to counteract the economic effects of the COVID-19 pandemic. We are currently evaluating the provisions of the CARES Act and its impact. Our effective tax rate for the three months ended March 28, 2020 , and March 30, 2019 , was 86.5 percent and 27.3 percent , respectively. Our effective tax rate for the three months ended March 28, 2020 was impacted by (i) the discrete tax benefit of $3.9 million resulting from the release of the valuation allowance associated with the nondeductible interest expense under Section 163(j) of the Internal Revenue Code (“IRC”) as a result of changes under the CARES Act to increase the allowable percentage from 30 percent of adjusted taxable income to 50 percent of adjusted taxable income, (ii) the permanent addback of certain nondeductible expenses, including meals and entertainment, and (iii) the effect of the partial valuation allowance for separate company state income tax losses. Our effective tax rate for the three months ended March 30, 2019 , was impacted by the permanent addback of certain nondeductible expenses, including meals and entertainment and executive compensation, and the effect of the partial valuation allowance for separate company state income tax losses. Our financial statements contain certain deferred tax assets which primarily resulted from tax benefits associated with the loss before income taxes in prior years, as well as net deferred income tax assets resulting from other temporary differences related to certain reserves, pension obligations, and differences between book and tax depreciation and amortization. We record a valuation allowance against our net deferred tax assets when we determine that, based on the weight of available evidence, it is more likely than not that our net deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences can be carried forward under tax law. Currently, we have a valuation allowance that covers (i) our separate company state net operating loss carryforwards and (ii) disallowed interest calculated pursuant to the changes made by the Tax Cuts and Jobs Act of 2017, as adjusted by the CARES Act. At the end of each quarter, we evaluate the weight of available evidence (both positive and negative). We considered the recent reported loss generated in the current quarter and prior years (adjusted for unusual one-time items) and income generated in 2017, including the prior year income from Cedar Creek. We also considered evidence related to the four sources of taxable income, to determine whether such positive evidence outweighed the negative evidence. The evidence considered included: • future reversals of existing taxable temporary differences; • future taxable income exclusive of reversing temporary differences and carryforwards; • taxable income in prior carryback years if carryback is permitted under the tax law; and • tax planning strategies. At the end of the first fiscal quarters of 2020 and 2019, in our evaluation of the weight of available evidence, we concluded that the weight of the positive evidence outweighed the negative evidence. In addition to the evidence discussed above, we considered as positive evidence forecasted future taxable income, the detail scheduling of the timing of the reversal of our deferred tax assets and liabilities, and the evidence from business and tax planning strategies described below. Although we believe our estimates are reasonable, the ultimate determination of the appropriate amount of valuation allowance involves significant judgments. We believe that the change in control under IRC Section 382, resulting from the completion of the secondary offering on October 23, 2017 , will not cause any of our federal net operating losses to expire unused because management has been effectively implementing a real estate strategy involving the sale and leaseback of real estate. This strategy is further supported by the transactions involving four warehouses in January 2018 and two warehouses during 2019. In the first quarter of 2020, the Company executed three more sale and leaseback transactions, involving a total of fourteen warehouse locations. Additionally, the acquisition of Cedar Creek did not generate any limitations under IRC Section 382 on Cedar Creek’s tax assets. We will continue to monitor any changes to our results of operations that may affect our estimates, including any impact of COVID-19 if applicable. |
Loss per Share
Loss per Share | 3 Months Ended |
Mar. 28, 2020 | |
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 using the treasury stock method, 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. The reconciliation of basic loss and diluted loss per common share for the three-month periods ended March 28, 2020 , and March 30, 2019 , were as follows: Three Months Ended (in thousands, except per share data) March 28, 2020 March 30, 2019 Net loss $ (787 ) $ (6,719 ) Weighted-average shares outstanding - basic 9,366 9,337 Dilutive effect of share-based awards — — Weighted-average shares outstanding - diluted 9,366 9,337 Basic loss per share $ (0.08 ) $ (0.72 ) Diluted loss per share $ (0.08 ) $ (0.72 ) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 28, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Sixth Amendment to the Term Loan Facility On April 1, 2020 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim Condensed Consolidated Financial Statements include the accounts of BlueLinx Holdings Inc. and its wholly owned subsidiaries (“the Company”). Our independent registered public accounting firm has not audited the accompanying interim financial statements. We derived the condensed consolidated balance sheet at March 28, 2020 , from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2019 (the “Fiscal 2019 Form 10-K”), as filed with the Securities and Exchange Commission on March 11, 2020 . In the opinion of our management, the condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of our statements of operations and comprehensive loss for the three months ended March 28, 2020 , and March 30, 2019 , our balance sheets at March 28, 2020 and December 28, 2019 , our statements of cash flows for the three months ended March 28, 2020 and March 30, 2019 , and our statements of stockholders’ deficit for the three months ended March 28, 2020 and March 30, 2019 . We have condensed or omitted certain notes and other information from the interim condensed consolidated financial statements presented in this report. Therefore, these condensed consolidated interim financial statements should be read in conjunction with the Fiscal 2019 Form 10-K. In addition, certain prior period amounts have been reclassified to conform to the current period's presentation. These reclassifications did not materially impact operating income or consolidated net loss. The results for the three months ended March 28, 2020 , are not necessarily indicative of results that may be expected for the full year ending January 2, 2021 , or any other interim period. We operate on a 5-4-4 fiscal calendar. Our fiscal year ends on the Saturday closest to December 31 of that fiscal year and may comprise 53 weeks in certain years. Our 2020 fiscal year contains 53 weeks and ends on January 2, 2021 . Fiscal 2019 contained 52 weeks and ended on December 28, 2019 . Our financial statements are prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP), which requires us to make estimates based on assumptions about current and, for some estimates, future economic and market conditions, which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position. Some of our estimates may be affected by the ongoing novel coronavirus (COVID-19) pandemic. The severity, magnitude, and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly changing, and difficult to predict. As a result, our accounting estimates and assumptions may change over time in response to COVID-19. On April 13, 2018, we completed the acquisition of Cedar Creek Holdings, Inc. (“Cedar Creek”). The accounting for the Cedar Creek acquisition was finalized on December 29, 2018 and is included in the consolidated financial information presented herein. |
Reclassification of Prior Year Presentation | Reclassification of Prior Year Presentation An adjustment has been made to the Condensed Consolidated Statements of Cash Flows for the three months ended March 28, 2020 , and March 30, 2019 , to include outstanding payments as part of the change in accounts payable within cash flows from operating activities. In previous periods, this change was included within cash flows from financing activities. We believe this classification is a preferable way to present our cash flows as outstanding payments are included in accounts payable within our Condensed Consolidated Balance Sheet. |
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 corresponding 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. Expenses are recognized in the consolidated statement of income 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 as of the adoption date. Additionally, $1.7 million of deferred gains associated with sale-leaseback transactions was recorded as a cumulative-effect adjustment to accumulated deficit. Accounting Standards Effective in Future Periods 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. ASU 2019-10 extended the effective date of ASU 2016-13 to interim and annual periods beginning after December 22, 2022, for certain public business entities, including smaller reporting companies. 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. Income Taxes . In December 2019, the FASB issued ASU No.2019-12, “Income taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. The amendments in this standard are effective for interim periods and fiscal years beginning after December 15, 2020. Early adoption is permitted. We are currently assessing the impact of the new guidance, but 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. 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, 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 outbound 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 using the treasury stock method, 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. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Definite-Lived Intangible Assets | March 28, 2020 , the gross carrying amounts, accumulated amortization, and 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 $ (7,655 ) $ 17,845 Noncompete agreements 8,254 (4,048 ) 4,206 Trade names 6,826 (4,463 ) 2,363 Total $ 40,580 $ (16,166 ) $ 24,414 [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 2020 and the next four fiscal years is as follows: (In thousands) Estimated Amortization 2020 $ 5,490 2021 4,973 2022 3,111 2023 1,807 2024 1,505 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
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 March 28, 2020 March 30, 2019 (In thousands) Structural products $ 240,778 $ 196,786 Specialty products 421,292 441,915 Total net sales $ 662,070 $ 638,701 Also, due to the 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 March 28, 2020 March 30, 2019 (In thousands) Warehouse and reload $ 545,892 $ 523,179 Direct 125,582 123,404 Customer discounts and rebates (9,404 ) (7,882 ) Total net sales $ 662,070 $ 638,701 |
Net Periodic Pension (Benefit_2
Net Periodic Pension (Benefit) Cost (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic pension cost for pension plans | The following table shows the components of our net periodic pension (benefit) cost: Three Months Ended March 28, 2020 March 30, 2019 (in thousands) Service cost $ — $ 113 Interest cost on projected benefit obligation 723 1,045 Expected return on plan assets (1,210 ) (1,194 ) Amortization of unrecognized loss 263 300 Net periodic pension (benefit) cost $ (224 ) $ 264 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Leases [Abstract] | |
Lease Cost | The components of lease expense were as follows: Three Months Ended March 28, 2020 Three Months Ended March 30, 2019 (In thousands) Operating lease cost: $ 3,120 $ 3,144 Finance lease cost: Amortization of right-of-use assets $ 3,042 $ 2,896 Interest on lease liabilities 4,425 3,248 Total finance lease costs $ 7,467 $ 6,144 Supplemental cash flow information related to leases was as follows: Three Months Ended March 28, 2020 Three Months Ended March 30, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,774 $ 2,903 Operating cash flows from finance leases 4,425 3,248 Financing cash flows from finance leases 2,222 2,187 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — Finance leases — 787 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: March 28, 2020 December 28, 2019 (In thousands) Finance leases Property and equipment $ 155,927 $ 156,770 Accumulated depreciation (26,032 ) (23,364 ) Property and equipment, net $ 129,895 $ 133,406 Weighted Average Remaining Lease Term (in years) Operating leases 11.67 11.71 Finance leases 17.86 17.90 Weighted Average Discount Rate Operating leases 9.37 % 9.34 % Finance leases 10.48 % 10.33 % The major categories of our finance lease liabilities as of March 28, 2020 are as follows: March 28, 2020 December 28, 2019 (In thousands) Equipment and vehicles $ 30,808 $ 32,471 Real estate 120,543 120,525 Total finance leases $ 151,351 $ 152,996 |
Operating Lease Maturities | As of March 28, 2020 , maturities of lease liabilities were as follows: Operating leases Finance leases (In thousands) 2020 $ 11,479 $ 15,927 2021 9,234 19,178 2022 7,922 18,350 2023 7,073 17,887 2024 6,753 17,324 Thereafter 48,887 284,409 Total lease payments $ 91,348 $ 373,075 Less: imputed interest (38,761 ) (221,724 ) Total $ 52,587 $ 151,351 |
Finance Lease Maturities | March 28, 2020 , our future minimum payments related to the financing obligations under our real estate financing transactions entered into during 2019 and 2020 were as follows: (In thousands) 2020 $ 7,305 2021 9,922 2022 10,130 2023 10,343 2024 10,559 Thereafter 124,454 As of March 28, 2020 , maturities of lease liabilities were as follows: Operating leases Finance leases (In thousands) 2020 $ 11,479 $ 15,927 2021 9,234 19,178 2022 7,922 18,350 2023 7,073 17,887 2024 6,753 17,324 Thereafter 48,887 284,409 Total lease payments $ 91,348 $ 373,075 Less: imputed interest (38,761 ) (221,724 ) Total $ 52,587 $ 151,351 |
Schedule of Future Minimum Rental Payments for Operating Leases | December 28, 2019 , our total operating lease commitments were as follows: (In thousands) 2020 $ 12,735 2021 10,092 2022 8,247 2023 7,899 2024 7,287 Thereafter 56,081 Total $ 102,341 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
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 three months ended March 28, 2020 , were as follows: Foreign currency, net of tax Defined benefit pension plan, net of tax Other, net of tax Total Accumulated Other Comprehensive Loss (In thousands) December 28, 2019, beginning balance $ 666 $ (35,441 ) $ 212 $ (34,563 ) Other comprehensive income, net of tax [1] 3 196 (19 ) 180 March 28, 2020, ending balance, net of tax $ 669 $ (35,245 ) $ 193 $ (34,383 ) [1] For the three months ended March 28, 2020 , the actuarial loss recognized in the Condensed Consolidated Statements of Operations and Comprehensive Loss as a component of net periodic pension cost was $0.3 million , net of tax of $0.1 million . Please see Note 6, Net Periodic Pension Cost, for further information. |
Loss per Share (Tables)
Loss per Share (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) per Share | The reconciliation of basic loss and diluted loss per common share for the three-month periods ended March 28, 2020 , and March 30, 2019 , were as follows: Three Months Ended (in thousands, except per share data) March 28, 2020 March 30, 2019 Net loss $ (787 ) $ (6,719 ) Weighted-average shares outstanding - basic 9,366 9,337 Dilutive effect of share-based awards — — Weighted-average shares outstanding - diluted 9,366 9,337 Basic loss per share $ (0.08 ) $ (0.72 ) Diluted loss per share $ (0.08 ) $ (0.72 ) |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 | Jan. 01, 2019 | Dec. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease assets | $ 52,502 | $ 54,408 | ||
Operating lease liability | $ 52,587 | |||
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 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 47,772 | $ 47,772 | |
Amortization of intangible assets | $ 2,000 | $ 2,100 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives | 10 years | ||
Noncompete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives | 2 years | ||
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives | 1 year |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Definite Lived Intangible Assets (Details) $ in Thousands | Mar. 28, 2020USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Gross carrying amounts | $ 40,580 |
Accumulated Amortization | (16,166) |
Net carrying amounts | 24,414 |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Gross carrying amounts | 25,500 |
Accumulated Amortization | (7,655) |
Net carrying amounts | 17,845 |
Noncompete agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Gross carrying amounts | 8,254 |
Accumulated Amortization | (4,048) |
Net carrying amounts | 4,206 |
Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Gross carrying amounts | 6,826 |
Accumulated Amortization | (4,463) |
Net carrying amounts | $ 2,363 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Amortization Expense (Details) $ in Thousands | Mar. 28, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 5,490 |
2021 | 4,973 |
2022 | 3,111 |
2023 | 1,807 |
2024 | $ 1,505 |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020USD ($)day | Mar. 30, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Standard terms of payment, number of days | day | 10 | |
Net sales | $ 662,070 | $ 638,701 |
Warehouse and reload | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 545,892 | 523,179 |
Direct | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 125,582 | 123,404 |
Customer discounts and rebates | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | (9,404) | (7,882) |
Structural products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 240,778 | 196,786 |
Specialty products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 421,292 | $ 441,915 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Dec. 28, 2019 |
Discontinued Operations, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 1.1 | $ 1.1 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 3 Months Ended | |||
Mar. 28, 2020USD ($) | Sep. 26, 2020 | Dec. 28, 2019USD ($) | Apr. 30, 2018USD ($) | |
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term line of credit facility | $ 381,600,000 | $ 326,500,000 | ||
Line of credit facility, remaining borrowing capacity | $ 96,800,000 | $ 80,000,000 | ||
Line of credit facility, interest rate at period end | 3.20% | 3.90% | ||
Term Loan Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 180,000,000 | |||
Maximum principal balance | $ 45,000,000 | |||
Quarterly term loan principal payments | 450,000 | |||
Long-term debt, gross | $ 77,400,000 | $ 146,700,000 | ||
Stated interest rate | 8.60% | 8.70% | ||
Maximum | Term Loan Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Net leverage ratio | 6.25 | |||
Maximum | Forecast | Term Loan Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Net leverage ratio | 8.75 | |||
LIBOR | Maximum | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 2.25% | |||
LIBOR | Minimum | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 1.75% | |||
Fed Funds Rate | Term Loan Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 0.50% | |||
Eurodollar | Term Loan Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 7.00% | |||
Eurodollar | Minimum | Term Loan Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 1.00% | |||
Base Rate | Term Loan Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 6.00% | |||
Base Rate | Maximum | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 1.25% | |||
Base Rate | Minimum | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 0.75% | |||
Base Rate | Minimum | Term Loan Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 2.00% | |||
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 |
Net Periodic Pension (Benefit_3
Net Periodic Pension (Benefit) Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 0 | $ 113 |
Interest cost on projected benefit obligation | 723 | 1,045 |
Expected return on plan assets | (1,210) | (1,194) |
Amortization of unrecognized loss | 263 | 300 |
Net periodic pension (benefit) cost | $ (224) | $ 264 |
Stock Compensation (Details)
Stock Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Stock based compensation expense | $ 1 | $ 0.7 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 28, 2020 |
Operating Leased Assets [Line Items] | |
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 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost: | $ 3,120 | $ 3,144 |
Amortization of right-of-use assets | 3,042 | 2,896 |
Interest on lease liabilities | 4,425 | 3,248 |
Total finance lease costs | $ 7,467 | $ 6,144 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 2,774 | $ 2,903 |
Operating cash flows from finance leases | 4,425 | 3,248 |
Financing cash flows from finance leases | 2,222 | 2,187 |
Operating leases | 0 | 0 |
Finance leases | $ 0 | $ 787 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Finance leases | ||
Property and equipment | $ 155,927 | $ 156,770 |
Accumulated depreciation | (26,032) | (23,364) |
Property and equipment, net | $ 129,895 | $ 133,406 |
Weighted Average Remaining Lease Term (in years) | ||
Operating leases | 11 years 8 months 1 day | 11 years 8 months 15 days |
Finance leases | 17 years 10 months 9 days | 17 years 10 months 24 days |
Weighted Average Discount Rate | ||
Operating leases | 9.37% | 9.34% |
Finance leases | 10.48% | 10.33% |
Total finance leases | $ 151,351 | $ 152,996 |
Equipment and vehicles | ||
Weighted Average Discount Rate | ||
Total finance leases | 30,808 | 32,471 |
Real estate | ||
Weighted Average Discount Rate | ||
Total finance leases | $ 120,543 | $ 120,525 |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Finance leases | ||
2020 | $ 15,927 | |
2021 | 19,178 | |
2022 | 18,350 | |
2023 | 17,887 | |
2024 | 17,324 | |
Thereafter | 284,409 | |
Total lease payments | 373,075 | |
Less: imputed interest | (221,724) | |
Total | 151,351 | $ 152,996 |
Operating leases | ||
2020 | 11,479 | |
2021 | 9,234 | |
2022 | 7,922 | |
2023 | 7,073 | |
2024 | 6,753 | |
Thereafter | 48,887 | |
Total lease payments | 91,348 | |
Less: imputed interest | (38,761) | |
Total | $ 52,587 |
Leases - Minimum Payments Due (
Leases - Minimum Payments Due (Details) $ in Thousands | Mar. 28, 2020USD ($) |
Leases [Abstract] | |
2019 | $ 12,735 |
2020 | 10,092 |
2021 | 8,247 |
2022 | 7,899 |
2023 | 7,287 |
Thereafter | 56,081 |
Total | $ 102,341 |
Leases - Real Estate (Details)
Leases - Real Estate (Details) $ in Thousands | Feb. 28, 2020USD ($)property | Jan. 31, 2020USD ($)property | Dec. 31, 2019USD ($)property | Mar. 28, 2020USD ($) | Mar. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |||||
Proceeds from real estate financing obligations | $ 78,329 | $ 0 | |||
2020 | 15,927 | ||||
2021 | 19,178 | ||||
2022 | 18,350 | ||||
2023 | 17,887 | ||||
2024 | 17,324 | ||||
Thereafter | $ 284,409 | ||||
Real estate | |||||
Lessee, Lease, Description [Line Items] | |||||
Number of properties | property | 1 | 9 | 4 | ||
Proceeds from real estate financing obligations | $ 7,500 | $ 34,100 | $ 27,200 | ||
Renewal term | 5 years | ||||
2020 | $ 7,305 | ||||
2021 | 9,922 | ||||
2022 | 10,130 | ||||
2023 | 10,343 | ||||
2024 | 10,559 | ||||
Thereafter | $ 124,454 | ||||
Minimum | Real estate | |||||
Lessee, Lease, Description [Line Items] | |||||
Term of lease | 15 years | ||||
Maximum | Real estate | |||||
Lessee, Lease, Description [Line Items] | |||||
Term of lease | 18 years |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Mar. 28, 2020employee |
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 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 86.50% | 27.30% |
Discrete tax benefit | $ 3.9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) $ in Thousands | 3 Months Ended |
Mar. 28, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ (26,083) |
Other comprehensive income, net of tax | 180 |
Ending balance | (25,684) |
Total Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (34,563) |
Ending balance | (34,383) |
Foreign currency, net of tax | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 666 |
Other comprehensive income, net of tax | 3 |
Ending balance | 669 |
Defined benefit pension plan, net of tax | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (35,441) |
Other comprehensive income, net of tax | 196 |
Ending balance | (35,245) |
Reclassification of actuarial loss | 300 |
Reclassification of actuarial loss, tax | 100 |
Other, net of tax | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 212 |
Other comprehensive income, net of tax | (19) |
Ending balance | $ 193 |
Loss per Share (Details)
Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (787) | $ (6,719) |
Weighted-average shares outstanding - basic (in shares) | 9,366 | 9,337 |
Dilutive effect of share-based awards (in shares) | 0 | 0 |
Weighted-average shares outstanding - diluted (in shares) | 9,366 | 9,337 |
Basic loss per share (in dollars per share) | $ (0.08) | $ (0.72) |
Diluted loss per share (in dollars per share) | $ (0.08) | $ (0.72) |
Uncategorized Items - bxc032820
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,291,000 |