Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 02, 2022 | Jul. 30, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 02, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PGTI | |
Entity Registrant Name | PGT Innovations, Inc. | |
Entity Central Index Key | 0001354327 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-37971 | |
Entity Tax Identification Number | 20-0634715 | |
Entity Address, Address Line One | 1070 Technology Drive | |
Entity Address, City or Town | North Venice | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 34275 | |
City Area Code | 941 | |
Local Phone Number | 480-1600 | |
Entity Common Stock, Shares Outstanding | 59,946,690 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 406,521 | $ 285,500 | $ 765,183 | $ 556,592 |
Cost of sales | 241,391 | 188,491 | 465,460 | 365,621 |
Gross profit | 165,130 | 97,009 | 299,723 | 190,971 |
Selling, general and administrative expenses | 109,505 | 75,745 | 205,387 | 145,511 |
Income from operations | 55,625 | 21,264 | 94,336 | 45,460 |
Interest expense, net | 7,155 | 7,825 | 14,235 | 15,282 |
Income before income taxes | 48,470 | 13,439 | 80,101 | 30,178 |
Income tax expense | 12,005 | 2,726 | 19,810 | 6,670 |
Net income | 36,465 | 10,713 | 60,291 | 23,508 |
Less: Net income attributable to redeemable non-controlling interest ("RNCI") | (304) | (568) | (961) | (979) |
Net income attributable to the Company | 36,161 | 10,145 | 59,330 | 22,529 |
Calculation of net income per common share attributable to common shareholders: | ||||
Net income attributable to the Company | 36,161 | 10,145 | 59,330 | 22,529 |
Decrease (increase) in redemption value of RNCI | 351 | (3,563) | (1,785) | (3,563) |
Net income attributable to common shareholders | $ 36,512 | $ 6,582 | $ 57,545 | $ 18,966 |
Net income per common share attributable to common shareholders: | ||||
Basic | $ 0.61 | $ 0.11 | $ 0.96 | $ 0.32 |
Diluted | $ 0.61 | $ 0.11 | $ 0.96 | $ 0.32 |
Weighted average number of common shares outstanding: | ||||
Basic | 59,928 | 59,551 | 59,880 | 59,418 |
Diluted | 60,257 | 60,051 | 60,241 | 59,977 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 36,465 | $ 10,713 | $ 60,291 | $ 23,508 |
Other comprehensive income (loss) before tax: | ||||
Increase (decrease) in fair value of derivatives | (12,929) | 9,073 | (6,854) | 17,361 |
Reclassification to earnings | (3,698) | (4,133) | (5,760) | (5,908) |
Other comprehensive income (loss) before tax | (16,627) | 4,940 | (12,614) | 11,453 |
Income tax expense (benefit) related to other comprehensive income (loss) | (4,270) | 1,225 | (3,240) | 2,843 |
Other comprehensive income (loss), net of tax | (12,357) | 3,715 | (9,374) | 8,610 |
Comprehensive income | 24,108 | 14,428 | 50,917 | 32,118 |
Less: Comprehensive income attributable to redeemable non-controlling interest | (304) | (568) | (961) | (979) |
Comprehensive income attributable to the Company | $ 23,804 | $ 13,860 | $ 49,956 | $ 31,139 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 159,261 | $ 96,146 |
Accounts receivable, net | 178,185 | 141,221 |
Inventories | 110,245 | 91,440 |
Contract assets, net | 59,309 | 55,239 |
Prepaid expenses | 13,455 | 8,727 |
Other current assets | 15,386 | 28,985 |
Total current assets | 535,841 | 421,758 |
Property, plant and equipment, net | 185,597 | 185,266 |
Operating lease right-of-use asset, net | 95,511 | 91,162 |
Intangible assets, net | 374,801 | 394,525 |
Goodwill | 372,652 | 364,598 |
Other assets, net | 1,963 | 3,301 |
Total assets | 1,566,365 | 1,460,610 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 175,129 | 122,681 |
Current portion of operating lease liability | 14,883 | 13,180 |
Total current liabilities | 190,012 | 135,861 |
Long-term debt, net | 626,266 | 625,655 |
Operating lease liability, less current portion | 87,514 | 83,903 |
Deferred income taxes | 34,249 | 37,489 |
Other liabilities | 7,910 | 11,742 |
Total liabilities | 945,951 | 894,650 |
Commitments and contingencies | ||
Redeemable non-controlling interest | 39,609 | 36,863 |
Shareholders' equity: | ||
Preferred stock; par value $.01 per share; 10,000 shares authorized; no shares outstanding | ||
Common stock; par value $.01 per share; 200,000 shares authorized; 63,927 and 63,516 shares issued and 59,947 and 58,696 shares outstanding at July 2, 2022 and January 1, 2022, respectively | 639 | 635 |
Additional paid-in-capital | 437,207 | 433,347 |
Accumulated other comprehensive income (loss) | (2,368) | 7,006 |
Retained earnings | 163,616 | 106,398 |
Treasury stock at cost | (18,289) | (18,289) |
Total shareholders' equity | 580,805 | 529,097 |
Total liabilities, redeemable non-controlling interest and shareholders' equity | $ 1,566,365 | $ 1,460,610 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 02, 2022 | Jan. 01, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, Shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, Shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 63,927,000 | 63,516,000 |
Common stock, shares outstanding | 59,947,000 | 58,696,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 02, 2022 | Jul. 03, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 60,291 | $ 23,508 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 17,064 | 14,358 |
Amortization | 13,924 | 9,890 |
Provision for credit losses | 6,048 | 2,882 |
Stock-based compensation | 4,909 | 3,494 |
Amortization of deferred financing costs, debt discount and premium | 611 | 446 |
Asset impairment charges | 2,131 | |
(Gain) loss on sales of assets | (39) | 70 |
Change in operating assets and liabilities (net of effects of acquisition): | ||
Accounts receivable | (44,148) | (40,763) |
Inventories | (18,539) | (10,586) |
Contract assets, net, prepaid expenses, other current and other assets | 5,713 | (13,262) |
Accounts payable, accrued and other liabilities | 36,958 | 18,428 |
Net cash provided by operating activities | 84,923 | 8,465 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (17,328) | (16,107) |
Investment in and acquisitions of business | (787) | (106,480) |
Proceeds from sales of assets | 41 | 142 |
Net cash used in investing activities | (18,074) | (122,445) |
Cash flows from financing activities: | ||
Proceeds from issuance of senior notes | 63,300 | |
Payments of contingent consideration in Anlin Acquisition | (2,362) | |
Payments of financing costs | (1,363) | |
Purchases of common stock relating to tax withholdings on employee equity awards | (1,663) | (1,005) |
Proceeds from exercise of stock options | 138 | |
Proceeds from issuance of common stock under employee stock purchase plan (ESPP) | 291 | 177 |
Net cash (used in) provided by financing activities | (3,734) | 61,247 |
Net increase (decrease) in cash and cash equivalents | 63,115 | (52,733) |
Cash and cash equivalents at beginning of period | 96,146 | 100,320 |
Cash and cash equivalents at end of period | 159,261 | 47,587 |
Non-cash activity: | ||
Issuance of common stock in Eco Acquisition | 6,108 | |
Additions to right-of-use asset | 12,262 | 46,905 |
Additions to operating lease liability | (12,262) | (46,905) |
Property, plant and equipment additions in accounts payable | $ 543 | $ 1,533 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Beginning Balance at Jan. 02, 2021 | $ 485,134 | $ 625 | $ 420,202 | $ 2,720 | $ 79,896 | $ (18,309) |
Beginning Balance, Shares at Jan. 02, 2021 | 58,998,711 | |||||
Vesting of restricted stock, Shares | 189,466 | |||||
Issuance of treasury stock, Shares | 4,600 | |||||
Issuance of treasury stock | (20) | 20 | ||||
Grants of restricted stock | $ 3 | (3) | ||||
Forfeitures of restricted stock | $ (1) | 1 | ||||
Purchases of treasury stock | (1,005) | (1,005) | ||||
Purchases of treasury stock, Shares | (42,414) | |||||
Retirement of treasury stock | (844) | (161) | 1,005 | |||
Stock-based compensation | 3,494 | 3,494 | ||||
Exercise of stock options, Shares | 67,797 | |||||
Exercise of stock options | 138 | $ 1 | 137 | |||
Common stock issued under ESPP, Shares | 11,171 | |||||
Common stock issued under ESPP | 177 | 177 | ||||
Issuance in acquisition of Eco | 6,108 | $ 4 | 6,104 | |||
Issuance in acquisition of Eco, Shares | 357,797 | |||||
Net income attributable to the Company | 22,529 | 22,529 | ||||
Decrease (increase) in value of RNCI | (3,563) | (3,563) | ||||
Other comprehensive income (loss), net of tax expense | 8,610 | 8,610 | ||||
Ending Balance at Jul. 03, 2021 | 521,622 | $ 632 | 429,268 | 11,330 | 98,681 | (18,289) |
Ending Balance, Shares at Jul. 03, 2021 | 59,587,128 | |||||
Beginning Balance at Apr. 03, 2021 | 509,266 | $ 631 | 427,210 | 7,615 | 92,119 | (18,309) |
Beginning Balance, Shares at Apr. 03, 2021 | 59,461,200 | |||||
Vesting of restricted stock, Shares | 42,360 | |||||
Issuance of treasury stock, Shares | 4,600 | |||||
Issuance of treasury stock | (20) | 20 | ||||
Stock-based compensation | 1,744 | 1,744 | ||||
Exercise of stock options, Shares | 67,797 | |||||
Exercise of stock options | 138 | $ 1 | 137 | |||
Common stock issued under ESPP, Shares | 11,171 | |||||
Common stock issued under ESPP | 177 | 177 | ||||
Net income attributable to the Company | 10,145 | 10,145 | ||||
Decrease (increase) in value of RNCI | (3,563) | (3,563) | ||||
Other comprehensive income (loss), net of tax expense | 3,715 | 3,715 | ||||
Ending Balance at Jul. 03, 2021 | 521,622 | $ 632 | 429,268 | 11,330 | 98,681 | (18,289) |
Ending Balance, Shares at Jul. 03, 2021 | 59,587,128 | |||||
Beginning Balance at Jan. 01, 2022 | 529,097 | $ 635 | 433,347 | 7,006 | 106,398 | (18,289) |
Beginning Balance, Shares at Jan. 01, 2022 | 59,696,117 | |||||
Vesting of restricted stock, Shares | 317,102 | |||||
Grants of restricted stock | $ 6 | (6) | ||||
Forfeitures of restricted stock | $ (1) | 1 | ||||
Purchases of treasury stock | (1,663) | (1,663) | ||||
Purchases of treasury stock, Shares | (84,492) | |||||
Retirement of treasury stock | $ (1) | (1,335) | (327) | 1,663 | ||
Stock-based compensation | 4,909 | 4,909 | ||||
Common stock issued under ESPP, Shares | 17,964 | |||||
Common stock issued under ESPP | 291 | 291 | ||||
Net income attributable to the Company | 59,330 | 59,330 | ||||
Decrease (increase) in value of RNCI | (1,785) | (1,785) | ||||
Other comprehensive income (loss), net of tax expense | (9,374) | (9,374) | ||||
Ending Balance at Jul. 02, 2022 | 580,805 | $ 639 | 437,207 | (2,368) | 163,616 | (18,289) |
Ending Balance, Shares at Jul. 02, 2022 | 59,946,691 | |||||
Beginning Balance at Apr. 02, 2022 | 553,655 | $ 639 | 434,212 | 9,989 | 127,104 | (18,289) |
Beginning Balance, Shares at Apr. 02, 2022 | 59,900,587 | |||||
Vesting of restricted stock, Shares | 28,140 | |||||
Grants of restricted stock | $ 1 | (1) | ||||
Forfeitures of restricted stock | $ (1) | 1 | ||||
Stock-based compensation | 2,704 | 2,704 | ||||
Common stock issued under ESPP, Shares | 17,964 | |||||
Common stock issued under ESPP | 291 | 291 | ||||
Net income attributable to the Company | 36,161 | 36,161 | ||||
Decrease (increase) in value of RNCI | 351 | 351 | ||||
Other comprehensive income (loss), net of tax expense | (12,357) | (12,357) | ||||
Ending Balance at Jul. 02, 2022 | $ 580,805 | $ 639 | $ 437,207 | $ (2,368) | $ 163,616 | $ (18,289) |
Ending Balance, Shares at Jul. 02, 2022 | 59,946,691 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Income tax expense (benefit) related to other comprehensive income (loss) | $ (4,270) | $ 1,225 | $ (3,240) | $ 2,843 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jul. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION About PGT Innovations, Inc. PGT Innovations, Inc. (“PGTI,” “we,” or the “Company”) is a leading manufacturer of impact-resistant aluminum and vinyl-framed windows and doors and offers a broad range of fully customizable window and door products. The majority of our sales are to customers in the state of Florida; however, we also sell products in many other states. Our acquisition of Eco Enterprises (“Eco Acquisition”) in February 2021 expanded our range of product offerings in our major market of southeast Florida. We also have sales of products that are designed to unify indoor and outdoor living spaces, through our Western Windows Systems’ (“WWS”) division, and most of its sales are in the western United States. Our acquisition of Anlin Windows and Doors in October 2021 expanded our presence in the west. Products are sold primarily through an authorized dealer and distributor network. However, with our acquisition of NewSouth Window Solutions in February 2020, we also sell window products in the direct-to-consumer channel through a “factory-direct” sales model. We were incorporated in the state of Delaware on December 16, 2003, as JLL Window Holdings, Inc., with primary operations in North Venice, Florida. On February 15, 2006, our Company was renamed PGT, Inc. On December 14, 2016, we announced that we changed our name to PGT Innovations, Inc. and, effective on December 28, 2016, the listing of our common stock was transferred to the New York Stock Exchange (“NYSE”) from the NASDAQ Global Market, and began trading on the NYSE under its existing ticker symbol of “PGTI”. As of July 2, 2022, we had major manufacturing operations in Florida, in North Venice, Tampa, and in the greater Miami area. We also have manufacturing operations in Phoenix, Arizona and Clovis, California. Additionally, we have two glass tempering and laminating plants, one in North Venice, Florida and one in Medley, Florida, and one insulation glass plant located in North Venice, Florida. All references to PGTI or our Company apply to the consolidated financial statements of PGT Innovations, Inc. unless otherwise noted. COVID-19 Pandemic During March 2020, a global pandemic (the “Pandemic”) was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (“COVID-19”). The Pandemic has resulted in a significant number of infections, hospitalizations and deaths around the world, including in the United States, and in several of our key markets. The extent to which the circumstances the Pandemic, and its aftermath, could affect our future business, operations and financial results will depend upon numerous factors that we are not able to accurately predict. As such, we continue to be unable to accurately predict the impact the Pandemic and the challenges it has created for the U.S. and global economies in its aftermath. The impact to our customers’ and suppliers’ businesses and other factors are identified in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K/A, filed with the United States Securities and Exchange Commission on June 10, 2022. We will continue to evaluate the nature and extent of any changes in the aftermath of the Pandemic and any impact those changes may have to our business, consolidated results of operations, and financial condition. Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all the information and footnotes required by United States Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. Our condensed consolidated financial statements are unaudited; however, in the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim period are not necessarily indicative of the results that may be expected for the remainder of the current year or for any future periods. The Company’s fiscal three and six months ended July 2, 2022, and July 3, 2021 consisted of 13 and 26 weeks, respectively. The condensed consolidated balance sheet as of January 1, 2022, is derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP. The condensed consolidated balance sheet as of January 1, 2022, and the unaudited condensed consolidated financial statements as of and for the periods ended July 2, 2022 and July 3, 2021, should be read in conjunction with the more detailed audited consolidated financial statements for the year ended January 1, 2022, included in the Company’s most recent Annual Report on Form 10-K/A. The accounting policies used in the preparation of these unaudited condensed consolidated financial statements are consistent with the accounting policies described in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K/A. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. We have two reportable segments: the Southeast segment and the Western segment. The Southeast reporting segment, which is also an operating segment, is composed of sales from our facilities in Florida. The Western reporting segment, also an operating segment, is composed of sales from our facilities in Arizona and California. See Note 16 for segment disclosures. Recently Adopted Accounting Pronouncements Business Combinations - Contracts Assets and Liabilities On October 28, 2021, the FASB issued ASU 2021-08, which amends ASC 805-20 to “require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination.” Under current GAAP, an acquirer generally recognizes such items at fair value on the acquisition date. This standard was effective beginning January 1, 2022 . Early adoption was permitted and was adopted by the Company in the period beginning January 3, 2021. The adoption of this standard did no t have any impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and in March 2021, subsequent amendment to the initial guidance, ASU 2021-01, “Reference Rate Reform (Topic 848): Scope” (collectively, “Topic 848”). Topic 848 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The guidance generally can be applied from March 12, 2020 through December 31, 2022. We have not elected adoption of this optional guidance and do not intend to elect this guidance before the sunset date of December 31, 2022, as there is no material impact on our consolidated financial statements. |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 6 Months Ended |
Jul. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition and Contracts with Customers | NOTE 2. REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS Revenue Recognition Accounting Policy The Company primarily manufactures fully customized windows and doors based on design specifications, measurements, colors, finishes, framing materials, glass-types, and other options selected by the customer at the point in time an order is received. The Company has an enforceable right to payment at the time an order is received and accepted at the agreed-upon sales prices contained in our agreements with our customers for all manufacturing efforts expended on behalf of its customers. Due to the customized build-to-order nature of these products, the Company’s assessment is that the substantial portion of its finished goods and certain unused glass components have no alternative use, and that control of these products and components passes to the customer over time during the manufacturing of the products in an order, or upon our receipt of certain pre-cut glass components from our supplier attributed to specific customer orders. Based on these factors, the Company recognizes a substantial portion of revenue over time during the manufacturing process once customization begins, and for certain unused glass components on hand, at the end of a reporting period. Revenue on work-in-process at the end of a reporting period is recognized in proportion to costs incurred to total estimated cost of the product being manufactured. Except for the Western segment’s volume products, discussed in the section titled Disaggregation of Revenue from Contracts with Customers below, revenue recognized at a point in time is immaterial. Disaggregation of Revenue from Contracts with Customers As discussed in Note 1, we have two reportable segments: our Southeast segment and our Western segment. See Note 16 for more information. The following table provides information about our net sales by reporting segment, product category and market for the three and six months ended July 2, 2022 and July 3, 2021: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Disaggregation of revenue (in millions) : 2022 2021 2022 2021 Reporting segment: Southeast $ 307.5 $ 242.4 $ 579.3 $ 476.1 Western 99.0 43.1 185.9 80.5 Total net sales $ 406.5 $ 285.5 $ 765.2 $ 556.6 Product category: Impact-resistant window and door products $ 243.0 $ 197.5 $ 460.8 $ 388.9 Non-impact window and door products 163.5 88.0 304.4 167.7 Total net sales $ 406.5 $ 285.5 $ 765.2 $ 556.6 Market: New construction $ 173.3 $ 124.5 $ 323.4 $ 244.5 Repair and remodel 233.2 161.0 441.8 312.1 Total net sales $ 406.5 $ 285.5 $ 765.2 $ 556.6 The Company’s Western segment includes both custom and volume products. This segment’s volume products are not made-to-order and are of standardized sizes and design specifications. Therefore, the Company’s assessment is that the Western segment’s volume products have alternative uses, and that control of these products passes to the customer at a point in time, which is typically when the product has been delivered to the customer. For the three months ended July 2, 2022 and July 3, 2021, the Western segment’s net sales of its volume products were $ 29.7 million and $ 20.9 million, respectively. For the six months ended July 2, 2022 and July 3, 2021, the Western segment’s net sales of its volume products were $ 56.0 million and $ 40.6 million, respectively. Contract Balances Contract assets represent sales recognized in excess of billings related to finished goods not yet shipped and certain unused glass components not yet placed into the production process for which revenue is recognized over time as noted above. Contract liabilities relate to customer deposits at the end of reporting periods. At July 2, 2022 and January 1, 2022, those contract liabilities totaled $ 46.8 million and $ 45.2 million, respectively, of which $ 37.1 million and $ 37.0 million, respectively, are classified within accrued liabilities, and $ 9.7 million and $ 8.2 million, respectively, are classified as a reduction to the contract assets to which they relate. Contract assets, net, totaled $ 59.3 million at July 2, 2022 and $ 55.2 million at January 1, 2022, in the accompanying condensed consolidated balance sheets. Because of the short-term nature of our performance obligations, as discussed below, substantially all of our performance obligations are satisfied within the quarter following the end of a reporting period. As such, we expect substantially all of the contract liabilities at January 1, 2022 were satisfied in the first quarter of 2022, and contract assets at January 1, 2022 were transferred to accounts receivable in the first quarter of 2022. We expect substantially all of the contract liabilities at July 2, 2022 will be satisfied in the third quarter of 2022, and contract assets at July 2, 2022 will be transferred to accounts receivable in the third quarter of 2022. Contract liabilities at July 2, 2022 represents cash received during the three-month period ended July 2, 2022, excluding amounts recognized as revenue during that period. Contract assets at July 2, 2022 represents revenue recognized during the three-month period ended July 2, 2022, excluding amounts transferred to accounts receivable during that period. Contract liabilities at January 1, 2022 represents cash received during the three-month period ended January 1, 2022, excluding amounts recognized as revenue during that period. Contract assets at January 1, 2022 represents revenue recognized during the three-month period ended January 1, 2022, excluding amounts transferred to accounts receivable during that period. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is defined as the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue as the performance obligation is satisfied. Our contracts with our customers generally represent an approved purchase order together with our standard terms and conditions. Our custom product contracts include distinct goods that are substantially the same and have the same pattern of transfer to the customer over time, and therefore represent a series of distinct goods accounted for as a single performance obligation. For volume products, we allocate the contract’s transaction price to each distinct performance obligation based on the estimated relative standalone selling price of each distinct good. Observable standalone sales are used to determine the standalone selling price. Certain customers are eligible for rebates based on their volume or purchases during an annual period. Rebates are recorded as a reduction to sales and were immaterial in all periods presented. Performance obligations are satisfied over time, generally for our custom products, and as of a point in time for our volume products. Performance obligations are supported by contracts with customers, and we have elected not to disclose our unsatisfied performance obligations as of July 2, 2022 under the short-term contract exemption as we expect such performance obligations will be satisfied within the quarter following the end of a reporting period. Policies Regarding Shipping and Handling Costs and Commissions on Contract Assets The Company has made a policy election to continue to recognize shipping and handling costs as a fulfillment activity. Treating shipping and handling as a fulfillment activity requires estimated shipping and handling costs for undelivered products and certain glass components on which we have recognized revenue and created a contract asset, to be accrued to match this cost with the recognized revenue. Sales taxes collected from customers are recorded on a net basis. The Company utilizes the practical expedient which permits the current expensing of costs to obtain a contract when the expected amortization period is one year or less, which typically results in expensing commissions paid to employees. We expense sales commissions paid to employees as sales are recognized, including sales from the creation of contract assets, as the expected amortization period is less than one year. Allowance for Credit Losses The Company adopted Accounting Standards Update (“ASU”) 2016-13 , “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” (“Topic 326”) on December 29, 2019 (the first day of our 2020 fiscal year). Topic 326 requires us to measure all expected credit losses for financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. In the ordinary course of business, we extend credit to qualified dealers and distributors, generally on a non-collateralized basis. The Company maintains an allowance for credit losses which is based on management’s assessments of the amount which may become uncollectible in the future and is determined through consideration of our write-off history, specific identification of uncollectible accounts based in part on the customer’s past due balance (based on contractual terms), and consideration of prevailing economic and industry conditions, and may include anticipated unfavorable impacts of the COVID-19 pandemic on the businesses of our customers, such as dealers and distributors. As of July 2, 2022 and January 1, 2022, we had gross accounts receivable of $ 187.5 million and $ 145.9 million, respectively, and an allowance for credit losses of $ 9.3 million and $ 4.7 million, respectively. During the second quarter of 2022, a customer with whom we have had a long-term relationship experienced financial difficulties. As such, we determined to cease taking orders and provide additional reserves of approximately $ 3.0 million against our existing exposure to this customer. During the three- and six-months ended July 2, 2022, we recorded provisions for credit losses totaling $ 4.6 million and $ 6.0 million, respectively, including the provision relating to this customer. |
Warranty
Warranty | 6 Months Ended |
Jul. 02, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Warranty | NOTE 3. WARRANTY Most of our manufactured products are sold with warranties. Warranty periods, which vary by product components, generally range from 1 to 10 years ; however, the warranty period for a limited number of specifically identified components in certain applications is a lifetime. The majority of the products sold have warranties on components which range from 1 to 3 years . The amount charged to expense for warranties is based on management’s assessment of the cost per service call and the number of service calls expected to be incurred to satisfy warranty obligations on the current net sales. During the three months ended July 2, 2022, we recorded warranty expense at a rate of approximately 1.7 % of sales, which was slightly lower than the rate during the three months ended July 3, 2021 of 1.9 % of sales. Our warranty expense rate in the three months ended July 2, 2022 is a result of a decrease in the use of higher-cost contract labor we had used in the first quarter of 2022 to respond to warranty claims due to a currently tight labor market, whereas in the three months ended July 3, 2021, the wind-down of certain commercial business in the first quarter of 2021 resulted in warranty costs higher than those we would incur in the normal course of business. During the six months ended July 2, 2022, we recorded warranty expense at a rate of approximately 2.1 % of sales, which was about level with the six months ended July 3, 2021 of 2.2 % of sales. Our warranty expense rate in the six months ended July 2, 2022 is a result of an increase in the use of higher-cost contract labor during the first quarter of 2022 to respond to warranty claims due to a currently tight labor market, whereas in the six months ended July 3, 2021, the wind-down of certain commercial business in the first quarter of 2021 resulted in warranty costs higher than those we would incur in the normal course of business. The following table summarizes current period charges, adjustments to previous estimates, as well as settlements, which represent actual costs incurred during the period for the three and six months ended July 2, 2022 and July 3, 2021. The reserve is determined through specific identification and assessing our history. Of the accrued warranty reserve of $ 16.2 million at July 2, 2022, $ 13.8 million is classified within accrued expenses as current liabilities on the condensed consolidated balance sheet at July 2, 2022, with the remainder classified within other liabilities as non-current liabilities. Of the accrued warranty reserve of $ 13.5 million at January 1, 2022, $ 11.8 million is classified within accrued expenses as current liabilities on the condensed consolidated balance sheet at January 1, 2022, with the remainder classified within other liabilities as non-current liabilities. Beginning Acquisition- Charged End of Accrued Warranty of Period Related to Expense Adjustments Settlements Period (in thousands) Three months ended July 2, 2022 $ 16,321 $ — $ 6,844 $ ( 237 ) $ ( 6,777 ) $ 16,151 Three months ended July 3, 2021 $ 9,643 $ 189 $ 5,343 $ ( 748 ) $ ( 4,968 ) $ 9,459 Six months ended July 2, 2022 $ 13,504 $ — $ 15,992 $ 513 $ ( 13,858 ) $ 16,151 Six months ended July 3, 2021 $ 8,001 $ 189 $ 12,309 $ ( 359 ) $ ( 10,681 ) $ 9,459 |
Inventories
Inventories | 6 Months Ended |
Jul. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 4. INVENTORIES Inventories consist principally of raw materials purchased for the manufacture of our products. We have limited finished goods inventory since the substantial majority of our products are custom, made-to-order and the revenue on these products, as well as the related cost, has been fully recognized upon completion of the manufacturing process. Finished goods inventory and work-in-progress costs include direct materials, direct labor, and overhead. All inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. Inventories consisted of the following: July 2, January 1, 2022 2022 (in thousands) Raw materials $ 106,083 $ 87,164 Work-in-progress 3,385 3,248 Finished goods 777 1,028 Inventories $ 110,245 $ 91,440 |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jul. 02, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | NOTE 5. STOCK BASED-COMPENSATION Stock-Based Compensation Expense We record stock compensation expense over an equity award’s vesting period based on the award’s fair value at the date of grant. We recorded compensation expense for stock-based awards of $ 2.7 million for the three months ended July 2, 2022 and $ 1.7 million for the three months ended July 3, 2021. We recorded compensation expense for stock-based awards of $ 4.9 million for the six months ended July 2, 2022 and $ 3.5 million for the six months ended July 3, 2021. As of July 2, 2022, there was $ 15.4 million in total unrecognized compensation cost related entirely to restricted share awards. These costs are expected to be recognized in earnings on an accelerated basis over the weighted average remaining vesting period of 1.9 years at July 2, 2022. Of the $ 2.7 million and $ 1.7 million in stock-based compensation expense in the three months ended July 2, 2022 and July 3, 2021, respectively, $ 2.3 million and $ 1.5 million, respectively, are classified within selling, general and administrative expense in the accompanying condensed consolidated statements of operations, with the remainders classified within cost of sales. Of the $ 4.9 million and $ 3.5 million in stock-based compensation expense in the six months ended July 2, 2022 and July 3, 2021, respectively, $ 4.2 million and $ 3.0 million, respectively, are classified within selling, general and administrative expense in the accompanying condensed consolidated statements of operations, with the remainders classified within cost of sales. Issuance On February 14, 2022, we issued 468,518 shares of restricted stock to certain executive and non-executive employees of the Company, under the Company’s 2022 long-term incentive plan (“2022 LTIP”). Half of the shares awarded under the 2022 LTIP, or 234,259 shares, are subject to adjustment based on the performance of the Company for the 2022 fiscal year. A portion of the 234,259 performance shares issued under the 2022 LTIP are also subject to a total shareholder return ("TSR") component, which will not be finalized until the third anniversary of the February 14, 2022 grant date. Specifically, 37.5 % of the one-half of the restricted stock awarded in the 2022 LTIP are performance restricted shares which will not be earned unless certain financial performance metrics are met by the Company for the 2022 fiscal year. The performance criteria, as defined in the share awards, provide for a graded awarding of shares based on the percentage by which the Company meets earnings before interest, taxes, depreciation and amortization ("EBITDA") as defined in our 2022 business plan. The percentages, ranging from less than 80 % to greater than 120 % of the target amount of that EBITDA metric, provide for the awarding of shares ranging from 0 % to 200 % of the target amount of shares with respect to 37.5 % of half of the 234,259 shares, or 87,849 shares. The remaining 62.5 % of the one-half of the restricted stock awarded in the 2022 LTIP, or 146,410 shares, are subject to the same EBITDA metric, but are also subject to a TSR component which stratifies the performance of the Company's common stock price compared to a defined peer group of companies over the three-year period subsequent to February 14, 2022, such that if the Company's TSR falls at the 75th percentile or higher compared to the peer group, grantees will receive an additional 25 % of performance shares. If the Company's TSR falls at the 25th percentile or lower compared to the peer group, grantees will forfeit 25 % of performance shares. If the Company's TSR falls within the 75th and 25th percentiles, there will be no additional adjustment and grantees will receive their performance shares as per the EBITDA metric previously discussed. The final award is also affected by forfeitures upon the termination of a grantee’s employment with the Company. The remaining 234,259 shares from the 2022 LTIP are not subject to adjustment based on any performance or other criteria, but rather, vest in three equal installments on each of the first, second and third anniversaries of the grant date, assuming the grantee is employed by the Company on those vesting dates. The grant date fair value of the 2022 LTIP was $ 18.27 per share for those shares not subject to adjustment based on any performance or other criteria except the passage of time, and the 37.5 % of shares subject only to the EBITDA criteria of Company performance. For the 62.5 % of performance shares subject to both the EBITDA criteria of Company performance and the TSR component, the grant date fair value was $ 20.79 per share as determined by a third-party valuation specialist engaged by the Company, which used Monte Carlo simulation techniques to determine the fair value of such shares, which we consider to be a Level 3 input. As such, the weighted-average fair value of the 234,259 shares subject to the performance of the Company for the 2022 fiscal year, including those shares subject to the TSR, is $ 19.84 per share. |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 02, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 6. ACQUISITIONS ANLIN WINDOWS & DOORS On October 25, 2021 , we completed the acquisition of Anlin Windows & Doors. The acquisition was done by Western Window Holding LLC, a Delaware limited liability company, indirectly wholly-owned by PGT Innovations, Inc., which acquired substantially all of the assets, properties and rights owned, used or held for use in the business, as operated by Anlin Industries, a California corporation, of manufacturing vinyl windows and doors for the replacement market and the new construction market, and all activities conducted in connection therewith (the "Anlin Acquisition"), pursuant to that certain Asset Purchase Agreement dated as of September 1, 2021 (the “Anlin Purchase Agreement”), by and among the Company, and Anlin Industries. The fair value of consideration transferred in the Anlin Acquisition was $ 121.7 million, composed of $ 115.0 million in cash, including $ 113.5 million for purchase price and $ 1.5 million in working capital adjustments, including $ 0.8 million paid during the three months ended July 2, 2022, and fair value of contingent consideration of $ 6.7 million, discussed in greater detail below. The cash portion of the Anlin Acquisition of $ 115.0 million was financed with borrowings under the fourth amendment of our 2016 Credit Agreement due 2024 of $ 60.0 million, which resulted in net proceeds after fees of $ 59.4 million, with the remaining $ 55.6 million from cash on hand. Cash on hand for the Anlin Acquisition was ultimately provided by the issuance of $ 575.0 million of 4.375 % senior notes due 2029 and related transactions, further explained in Note 9, Long-Term Debt, as well as cash generated through operations. The estimated fair value of assets acquired, and liabilities assumed as of the closing date of the Anlin Acquisition, are as follows: Initial Adjustments to Preliminary Accounts receivable $ 10,803 $ — $ 10,803 Inventories 7,633 ( 327 ) 7,306 Contract assets, net 7,027 — 7,027 Prepaid expenses and other assets 1,626 ( 954 ) 672 Property and equipment 22,800 1,509 24,309 Operating lease right-of-use asset 3,450 14 3,464 Intangible assets 77,800 ( 5,800 ) 72,000 Total assets acquired 131,139 ( 5,558 ) 125,581 Accounts payable ( 5,175 ) 593 ( 4,582 ) Accrued and other liabilities ( 7,993 ) — ( 7,993 ) Operating lease liability ( 3,450 ) ( 14 ) ( 3,464 ) Total liabilities assumed ( 16,618 ) 579 ( 16,039 ) Net assets acquired 114,521 ( 4,979 ) 109,542 Goodwill 5,596 6,554 12,150 Fair value of consideration transferred $ 120,117 $ 1,575 $ 121,692 Consideration: Cash $ 114,196 $ 786 $ 114,982 Contingent consideration 5,921 789 6,710 Fair value of consideration transferred $ 120,117 $ 1,575 $ 121,692 The fair value of certain working capital related items, including Anlin’s accounts receivable, prepaid expenses and other assets, and accounts payable and accrued liabilities, approximated their book values at the date of the Anlin Acquisition. The fair value of inventory was estimated by major category, at net realizable value, which we believe approximates the price a market participant could achieve in a current sale. Inventories at the acquisition date was primarily composed of raw materials. Further review during the first quarter of 2022 resulted in an adjustment to decrease the estimated net realizable value of inventory. The fair value of property and equipment and remaining useful lives were estimated by management, with the assistance of a third-party valuation firm, using the cost approach. During the first quarter of 2022, additional value was assigned to acquired property and equipment, primarily due to an increase in the estimate of the fair value of acquired land. Valuations of the intangible assets were done using income and royalty relief approaches based on projections provided by management, which we consider to be Level 3 inputs, with the assistance of a third-party valuation firm. During the first quarter of 2022, we made several adjustments to the estimated fair value of the initial valuation of certain intangible assets, given the preliminary nature of several of the valuation inputs. Additionally, we determined that a portion of the customer relationship asset we acquired related to Anlin's backlog, which had an estimated useful life of less than three months, resulting in its estimated fair value of $ 2.2 million becoming fully amortized in the first quarter of 2022, discussed below, classified as selling, general and administrative expenses in the accompanying condensed consolidated statement of operations for the six-month period ended July 2, 2022. We incurred acquisition costs totaling $ 1.8 million relating to legal expenses, representations and warranties insurance, diligence, accounting and printing services in the Anlin Acquisition, incurred during the year ended January 1, 2022, primarily during the third and fourth quarters. The Anlin Purchase Agreement provides for the potential for earn-out contingency payments to sellers should Anlin achieve a certain level of earnings before interest, taxes, depreciation and amortization, ("Anlin EBITDA"), as defined in the Anlin Purchase Agreement, for its fiscal years of 2021 and 2022, of up to $ 3.2 million to be paid out by March 31, 2022, and of up to $ 9.5 million to be paid out by March 31, 2023, respectively. We had recorded a preliminary earn-out contingent liability of $ 5.9 million as of our year ended January 1, 2022, which represented its then estimated fair value based on probability adjusted levels of estimated Anlin EBITDA. Estimated Anlin EBITDA is a significant input that is not observable in the market, which ASC 820 considers to be a Level 3 input. In the first quarter of 2022, we finalized the fair value of the earn-out contingency, which we adjusted by an additional $ 0.8 million, to a total of $ 6.7 million of estimated fair value of contingent consideration as of the effective date of the Anlin Acquisition. This amount included $ 2.4 million for the contingent consideration relating to 2021 Anlin EBITDA and $ 4.3 million for the contingent consideration relating to the 2022 Anlin EBITDA. The first contingent consideration payment was agreed to be $ 2.7 million, which exceeded its estimated fair value by $ 0.3 million. This excess is classified as selling, general and administrative expenses in the accompanying condensed consolidated statement of operations for the six months ended July 2, 2022. The payment was made during the second quarter of 2022 after both parties agreed to extended the deadline for the first payment past the March 31, 2022 due date stated in the Anlin Purchase Agreement. During the second quarter of 2022, we updated our estimate of the fair value of the contingent consideration relating to 2022 Anlin EBITDA, which was estimated to be $ 8.8 million. As such, we recognized an expense of approximately $ 4.5 million, representing the difference between the actual and estimated fair value of the contingent consideration relating to the 2022 Anlin EBITDA, classified as selling, general and administrative expenses in the accompanying condensed consolidated statement of operations for the six months ended July 2, 2022. We will continue to update our estimate of the fair value of the contingent consideration relating to 2022 Anlin EBITDA each reporting period, as required by ASC 805, and record any adjustments within operating income until finalized by March 31, 2023. For tax purposes, contingent consideration does not become part of tax goodwill until paid. As such, the amount of goodwill deductible for tax purposes will not be finalized until the outcome of both earn-out contingency payments are known. As discussed, as of July 2, 2022, the initial estimated fair value of the contingent consideration in the preliminary allocation relating to the remaining payment was $ 4.3 million, and goodwill according to the current allocation of consideration is $ 12.2 million. As such, as of July 2, 2022, the amount of goodwill estimated to be tax deductible is the difference of $ 7.9 million. Anlin's goodwill is included as part of the Western reporting. We believe Anlin's goodwill relates to the expansion of our footprint in a key, strategic market we have identified as a geographic area of growth for our Company. Our estimate of the amount of tax deductible goodwill may change as the amounts of the payments of contingent consideration are finalized. As discussed above, we made changes to the initial estimated fair values of the trade name and customer relationships assets in the Anlin Acquisition, and we determined that a portion of our customer relationships intangible asset relates to the backlog acquired in the acquisition, which we estimated to be $ 2.2 million. Due to the short useful life of the customer-related backlog, its estimated fair value of $ 2.2 million was fully amortized by the end of the first quarter of 2022, which is classified within selling, general and administrative expenses in the accompanying condensed consolidated statement of operations for the six-month period ended July 2, 2022. Our purchase price allocation is preliminary, and other items are subject to change. The Anlin Purchase Agreement has a post-closing working capital calculation we were required to prepare, and delivered to sellers during the second quarter of 2022. This resulted in an additional payment of consideration to the seller of $ 0.8 million, made during the second quarter of 2022. Valuation of Identified Intangible Assets The valuation of the identifiable intangible assets acquired in the Anlin Acquisition and our estimate of their respective useful lives are as follows: Initial Initial Adjustment to Preliminary Useful Life Valuation Valuation Valuation (in years) (in thousands) Trade name $ 35,400 $ ( 3,700 ) $ 31,700 indefinite Customer relationships 42,100 ( 4,300 ) 37,800 15 Customer-related backlog — 2,200 2,200 < 1 Developed technology 300 — 300 9 Intangible assets, net $ 77,800 $ ( 5,800 ) $ 72,000 Pro Forma Financial Information The following unaudited pro forma financial information assumes the acquisition had occurred at the beginning of the earliest period presented that does not include Anlin's actual results for the entire period. The following unaudited pro forma financial information has been prepared by adjusting our historical results to include the results of Anlin adjusted for the following: amortization expense related to the intangible assets arising from the acquisition and interest expense to reflect the refinancing of the 2018 Senior Notes due 2026 and the third amendment of the 2016 Credit Agreement due 2024 into the 2021 Senior Notes due 2029 (the "2021 Senior Notes") and the fourth amendment of the 2016 Credit Agreement due 2024. The unaudited pro forma results below do not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of the earliest periods presented, nor does it indicate the results of operations in future periods. The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Three Months Ended Six Months Ended Pro Forma Results (unaudited) July 3, 2021 July 3, 2021 (in thousands, except per share amounts) (unaudited) Net sales $ 314,270 $ 609,782 Net income attributable to common shareholders $ 8,992 $ 21,737 Net income per common share attributable to common shareholders: Basic $ 0.15 $ 0.37 Diluted $ 0.15 $ 0.36 Net sales of Anlin included in the condensed consolidated statement of operations for the three and six months ended July 2, 2022, was $ 38.8 million and $ 71.2 million, respectively. The net income of Anlin in the condensed consolidated statement of operations for the three and six months ended July 2, 2022, was $ 7.3 million and $ 10.2 million, respectively. CRI SOCAL, INC. On May 2, 2021, pursuant to an asset purchase agreement dated April 9, 2021, we acquired substantially all of the assets and assumed certain liabilities of CRi SoCal, Inc. (“CRi”), a California corporation doing business in California as Combined Resources (the “CRi Acquisition”). CRi is engaged in the sales, distribution and installation of window and door products, and related design services, to homebuilders in the residential new construction market from its leased facility in Rancho Santa Margarita, California. Until its acquisition by the Company, CRi was a customer of the Company’s western business unit. The fair value of consideration transferred in the acquisition of CRi totaled $ 12.5 million, and included $ 12.1 million in cash, funded from cash on hand, and $ 0.4 million in accounts receivable owed by CRi to the Company’s western business unit relating to sales prior to the acquisition, which are considered settled as a result of the acquisition. The preliminary estimated fair value of assets acquired and liabilities assumed totaled $ 17.6 million and $ 5.1 million, respectively, which included offsetting operating lease right of use assets and operating lease liabilities totaling $ 2.6 million. The estimated fair value of assets acquired also included current assets totaling $ 4.1 million, primarily accounts receivable, identifiable intangible assets totaling $ 7.0 million, goodwill of $ 3.7 million, all of which we believe is tax deductible, and a small amount of property and equipment. Liabilities assumed included the aforementioned operating lease liability, as well as a total of $ 2.5 million in trade accounts payable and customer deposits. Valuations of the intangible assets have been estimated using income and royalty relief approaches based on projections, which we consider to be Level 3 inputs, with the assistance of a third-party valuation firm. We believe goodwill in the acquisition relates to the expansion of our footprint in an existing market, in a way that we believe will enhance our long-term profitability in that market of our Western business. Sales and net income from CRi included in the three and six months ended July 2, 2022 was immaterial. ECO WINDOW SYSTEMS On February 1, 2021 , we completed the acquisition of a 75 % ownership stake in Eco Enterprises and its related companies, Eco Windows Systems, LLC, Eco Glass Production, LLC, and Unity Windows, LLC (together “Eco”). Eco is a manufacturer and installer of aluminum, impact-resistant windows and doors, serving the South Florida region since 2009. Eco is headquartered in Medley, Florida, near Miami, Florida, and has three manufacturing locations in the region, including a glass processing facility. The fair value consideration for Eco was $ 102.0 million, including $ 94.4 million in cash, after favorable adjustments totaling $ 5.6 million relating to working capital and customer deposits which were agreed to and settled in the second quarter of 2021, and estimated contingent consideration of $ 1.5 million recorded in the second quarter of 2022, which was required by the purchase agreement. The fair value of consideration also included PGT Innovations, Inc. common stock with a then estimated fair value of $ 6.1 million. The cash portion of the purchase price was financed by a second add-on issuance of $ 60.0 million aggregate principal amount of 6.75 % senior notes to the 2018 Senior Notes due 2026 on January 25, 2021 (the “Additional Senior Notes”), issued at 105.5 % of their principal amount, resulting in a premium to us of $ 3.3 million, together with cash on hand of $ 31.1 million. The common stock portion of the purchase price was represented by the issuance of 357,797 shares of PGT Innovations, Inc. common stock on February 1, 2021, with a closing price value of $ 21.34 per share on that date, or approximately $ 7.6 million based on that price. However, the seller of Eco, who is also the holder of the 25 % redeemable non-controlling interest in Eco Enterprises, is restricted from selling these shares for a three-year period from the date of the acquisition. As such, we estimated that there was an approximately 20 % discount for the lack of marketability of the shares. The fair value of the redeemable non-controlling interest in the acquisition has been estimated to be $ 28.5 million, resulting in total fair value of the Eco business in the acquisition, including the redeemable non-controlling interest, of $ 130.4 million. The fair value of the redeemable non-controlling interest has been calculated as 25 % of the initial estimated fair value of the entity at the acquisition date, less a discount for seller’s lack of control in the new entity, estimated to be 5 % , and a discount for the seller’s lack of marketability of the minority stake, estimated to be 10 % . See Note 17 for more information regarding the redeemable non-controlling interest. The estimated fair value of assets acquired, and liabilities assumed as of the closing date of the Eco Acquisition, are as follows: Initial Adjustments to Final Accounts receivable $ 5,031 $ ( 241 ) $ 4,790 Inventories 7,728 ( 684 ) 7,044 Contract assets, net 4,312 ( 123 ) 4,189 Prepaid expenses and other assets 1,706 ( 759 ) 947 Property and equipment 24,009 ( 191 ) 23,818 Operating lease right-of-use asset 27,864 ( 1,049 ) 26,815 Intangible assets 72,700 1,600 74,300 Total assets acquired 143,350 ( 1,447 ) 141,903 Accounts payable ( 6,809 ) ( 116 ) ( 6,925 ) Accrued and other liabilities, including customer deposits ( 4,215 ) ( 604 ) ( 4,819 ) Operating lease liability ( 27,864 ) 1,049 ( 26,815 ) Total liabilities assumed ( 38,888 ) 329 ( 38,559 ) Net assets acquired 104,462 ( 1,118 ) 103,344 Redeemable non-controlling interest ( 34,084 ) 5,620 ( 28,464 ) Net assets acquired, net of redeemable non-controlling interest 70,378 4,502 74,880 Goodwill 30,051 ( 2,967 ) 27,084 Fair value of consideration transferred $ 100,429 $ 1,535 $ 101,964 Consideration: Cash $ 94,321 $ 35 $ 94,356 PGTI common stock 6,108 — 6,108 Contingent consideration — 1,500 1,500 Fair value of consideration transferred $ 100,429 $ 1,535 $ 101,964 The fair value of certain working capital related items, including Eco’s accounts receivable, prepaid and other expenses, and accounts payable and accrued liabilities, approximated their book values at the date of the Eco Acquisition. Subsequent to our initial allocation, we adjusted the fair value of certain acquired commercial receivable accounts based on a further post-acquisition assessment of their collectability. The fair value of inventory was estimated by major category, at net realizable value, which we believe approximates the price a market participant could achieve in a current sale. Substantially all of inventories at the acquisition date was composed of raw materials. The fair value of property and equipment was estimated with the assistance of a third-party valuation firm, using the indirect cost approach, which we consider to be Level 3 in the fair value hierarchy. Valuations of the intangible assets have been estimated using income and royalty relief approaches based on projections, which we consider to be Level 3 inputs, with the assistance of a third-party valuation firm. We incurred acquisition costs totaling $ 1.7 million relating to legal expenses, representations and warranties insurance, diligence, accounting and printing services in the Eco Acquisition, which includes $ 1.0 million in the fourth quarter of 2020, and $ 0.7 million in first three months of 2021, classified as selling, general and administrative expenses in the accompanying condensed consolidated statement of operations for the six months ended July 3, 2021. The remaining consideration, after identified intangible assets and the net assets and liabilities recorded at fair value, has currently been estimated to be $ 27.1 million, classified as part of the Southeast reporting unit goodwill, which we expect the portion of goodwill relating to our 75 % investment to be deductible for tax purposes. We believe goodwill represents the strengthening of our supply chain for glass through faster glass production, as well as diversification and expansion of product offerings in the high-growth commercial market, and an expansion of our dealer network with minimal overlap with our existing deal network. Valuation of Identified Intangible Assets in the Eco Acquisition The valuation of the identifiable intangible assets acquired in the Eco Acquisition and our estimate of their respective useful lives are as follows: Initial Initial Adjustment to Final Useful Life Valuation Valuation Valuation (in years) (in thousands) Trade names $ 36,000 $ ( 1,100 ) $ 34,900 indefinite Customer relationships 36,700 2,700 39,400 5 - 15 Intangible assets, net $ 72,700 $ 1,600 $ 74,300 |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jul. 02, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | NOTE 7. NET INCOME PER COMMON SHARE Basic earnings per share (“EPS”) available to PGT Innovations, Inc. common stockholders is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding during the period. Diluted EPS available to PGT Innovations, Inc. common stockholders is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding, including the dilutive effect of common stock equivalents computed using the treasury stock method and the average share price during the period. There were no anti-dilutive securities excluded from the calculation of weighted average shares outstanding for the three- or six-month periods ended July 2, 2022, or July 3, 2021. The table below presents the calculation of EPS and a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, 2022 2021 2022 2021 (in thousands, except per share amounts) Net income $ 36,465 $ 10,713 $ 60,291 $ 23,508 Less: Net income attributable to RNCI ( 304 ) ( 568 ) ( 961 ) ( 979 ) Net income attributable to the Company 36,161 10,145 59,330 22,529 Decrease (increase) in redemption value of RNCI 351 ( 3,563 ) ( 1,785 ) ( 3,563 ) Net income attributable to common shareholders $ 36,512 $ 6,582 $ 57,545 $ 18,966 Weighted-average number of common shares outstanding - Basic 59,928 59,551 59,880 59,418 Add: Dilutive shares from equity plans 329 500 361 559 Weighted-average number of common shares outstanding - Diluted 60,257 60,051 60,241 59,977 Net income per common share attributable to common shareholders: Basic $ 0.61 $ 0.11 $ 0.96 $ 0.32 Diluted $ 0.61 $ 0.11 $ 0.96 $ 0.32 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jul. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and intangible assets are as follows: Initial July 2, January 2, Useful Life 2022 2021 (in years) (in thousands) Goodwill $ 372,652 $ 364,598 indefinite Other intangible assets: Trade names (indefinite-lived) $ 208,441 $ 212,141 indefinite Customer relationships and customer-related assets 286,947 289,047 < 1 - 15 Trade name (amortizable) 22,200 22,200 15 Developed technology 5,900 5,900 6 - 10 Non-compete agreement 3,338 3,338 2 - 5 Software license 590 590 2 Less: Accumulated amortization ( 152,615 ) ( 138,691 ) Subtotal 166,360 182,384 Other intangible assets, net $ 374,801 $ 394,525 Goodwill at January 1, 2022 $ 364,598 Increase in Anlin Acquisition contingent consideration 789 Decrease in Anlin Acquisition trade name 3,700 Decrease in Anlin Acquisition customer relationships 4,300 Increase in Anlin Acquisition customer-related backlog asset ( 2,200 ) Final net working capital payment in Anlin Acquisition 786 Estimated contingent consideration in Eco Acquisition 1,500 Net other measurement period changes in Anlin Acquisition ( 821 ) Goodwill at July 2, 2022 $ 372,652 Trade names (indefinite-lived) at January 1, 2022 $ 212,141 Decrease in Anlin Acquisition trade name ( 3,700 ) Trade names (indefinite-lived) at July 2, 2022 $ 208,441 Estimated amortization of our amortizable intangible assets for future years is as follows: (in thousands) Total Remainder of 2022 $ 10,963 2023 20,520 2024 20,474 2025 20,299 2026 16,906 Thereafter 77,198 Total $ 166,360 Amortization expense relating to amortizable intangible assets for the three months ended July 2, 2022 and July 3, 2021, was $ 5.9 million and $ 5.1 million, respectively. Amortization expense relating to amortizable intangible assets for the six months ended July 2, 2022 and July 3, 2021, was $ 13.9 million and $ 9.9 million, respectively. See Note 6 for discussion of the amortization of the customer-related backlog asset of $ 2.2 million during the six-month period ended July 2, 2022. We perform our annual goodwill and indefinite-lived intangible asset impairment testing on the first day of our fiscal fourth quarter of each year, and at interim periods if needed based on occurrence of triggering events. During the six months ended July 2, 2022, we did not identify any events which we believe would trigger the need for tests for impairments of our indefinite-lived intangibles assets. As of July 2, 2022 and January 1, 2022, the carrying value of our Southeast reporting unit goodwill is $ 228.3 million and $ 226.8 million, respectively. As of July 2, 2022 and January 1, 2022, the carrying value of our Western reporting unit goodwill is $ 144.4 million and $ 137.8 million, respectively. Goodwill of our Southeast reporting unit includes the goodwill relating to Eco. Goodwill of our Western reporting unit includes the goodwill relating to both Anlin and CRi. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jul. 02, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 9. LONG-TERM DEBT July 2, January 1, 2022 2022 (in thousands) 2021 Senior Notes due 2029, maturing in October 2029 $ 575,000 $ 575,000 2016 Credit Agreement due 2024, maturing in October 2024 60,000 60,000 Long-term debt 635,000 635,000 Deferred financing costs ( 8,734 ) ( 9,345 ) Long-term debt, net $ 626,266 $ 625,655 2021 Senior Notes due 2029 On September 24, 2021, we completed the issuance of $ 575.0 million aggregate principal amount of 4.375 % senior notes (“2021 Senior Notes”), issued at 100 % of their principal amount. The 2021 Senior Notes are jointly and severally and fully and unconditionally guaranteed on a senior unsecured basis by each of the Company’s existing and future restricted subsidiaries, other than any restricted subsidiary of the Company that does not guarantee the existing senior secured credit facilities or any permitted refinancing thereof. The 2021 Senior Notes are senior unsecured obligations of the Company and the guarantors, respectively, and rank pari passu in right of payment with all existing and future senior debt and senior to all existing and future subordinated debt of the Company and the guarantors. The 2021 Senior Notes were offered under Rule 144A of the Securities Act, and in transactions outside the United States under Regulation S of the Securities Act, and have not been, and will not be, registered under the Securities Act. The 2021 Senior Notes mature on October 1, 2029 . Interest on the 2021 Senior Notes is payable semi-annually, in arrears, beginning on April 1, 2022, with interest accruing at a rate of 4.375 % per annum from September 24, 2021. We incurred financing costs relating to bank fees and professional services costs relating to the offering and issuance of the 2021 Senior Notes totaling $ 8.7 million, which included a 1.25 % lender spread on the total principal value of the 2021 Senior Notes, or $ 7.2 million, and $ 1.5 million of other costs, all of which are being amortized under the effective interest method. See “Deferred Financing Costs” below. As of July 2, 2022, the face value of debt outstanding under the 2021 Senior Notes was $ 575.0 million, and interest began accruing on September 24, 2021. Proceeds from the 2021 Senior Notes were used, in part, to redeem in full the $ 425.0 million of 2018 Senior Notes due 2026, including the related fees, costs, and the prepayment call premium of $ 21.5 million, representing 5.063 % of the $ 425.0 million face value then outstanding, prepay the outstanding term loan borrowings under the 2016 Credit Agreement of $ 54.0 million and the related fees and costs, and finance the Anlin Acquisition in the fourth quarter of 2021. See Note 6, Acquisitions, for a discussion of the Anlin Acquisition. The indenture for the 2021 Senior Notes gives us the option to redeem some or all of the 2021 Senior Notes at the redemption prices and on the terms specified in the indenture governing the 2021 Senior Notes. The indenture governing the 2021 Senior Notes does not require us to make any mandatory redemptions or sinking fund payments. However, upon the occurrence of a change of control, as defined in the indenture, the Company is required to offer to repurchase the notes at 101 % of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase. We also may make optional redemptions at various premiums including a make-whole call at the then current treasury rate plus 50 basis points prior to October 1, 2024, then 102.188 % on or after August 1, 2024, 101.094 % on or after August 2025, then at 100.000 % on or after August 1, 2026. The indenture for the 2021 Senior Notes includes certain covenants limiting the ability of the Company and any guarantors to, (i) incur additional indebtedness; (ii) pay dividends on or make distributions in respect of capital stock or make certain other restricted payments or investments; (iii) enter into agreements that restrict distributions from restricted subsidiaries; (iv) sell or otherwise dispose of assets; (v) enter into transactions with affiliates; (vi) create or incur liens; merge, consolidate or sell all or substantially all of the Company’s assets; (vii) place restrictions on the ability of subsidiaries to pay dividends or make other payments to the Company; and (viii) designate the Company’s subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of important exceptions and qualifications. 2016 Credit Agreement due 2024 On February 16, 2016 , we entered into the 2016 Credit Agreement due 2024, among us, the lending institutions identified in the 2016 Credit Agreement due 2024, and Truist Financial Corporation (formerly known as SunTrust Bank), as Administrative Agent and Collateral Agent. The 2016 Credit Agreement due 2024 establishes senior secured credit facilities in an aggregate amount of $ 310.0 million, consisting of a $ 270.0 million Term B term loan facility originally maturing in February 2022 that amortizes on a basis of 1 % annually during its six-year term, and a $ 40.0 million revolving credit facility originally maturing in February 2021 that included a swing line facility and a letter of credit facility. Our obligations under the 2016 Credit Agreement due 2024 are, subject to exceptions, guaranteed by substantially all of our wholly-owned direct and indirect subsidiaries that are restricted subsidiaries and secured by substantially all of our assets as well as our direct and indirect restricted subsidiaries’ assets. On March 16, 2018, we entered into an amendment of our 2016 Credit Agreement due 2024 (the “Second Amendment”). The Second Amendment, among other things, decreased the applicable interest rate margins for the Initial Term Loans (as defined in the 2016 Credit Agreement due 2024) from (i) 3.75 % to 2.50 %, in the case of the Base Rate Loans (as defined in the 2016 Credit Agreement due 2024), and (ii) 4.75 % to 3.50 %, in the case of the Eurodollar Loans (as defined in the 2016 Credit Agreement due 2024). On February 17, 2017, we entered into the first amendment to our 2016 Credit Agreement due 2024, which also resulted in decreases in the applicable margins, but which, unlike the Second Amendment, did not include any changes in lender positions. On October 31, 2019, we entered into an amendment of our 2016 Credit Agreement due 2024 (“Third Amendment”). The Third Amendment provided for, among other things, (i) a three-year Term A loan in the then aggregate principal amount of $ 64.0 million (the “Initial Term A Loan”), maturing in October 2022, which refinanced in full our existing Term B term loan facility under the 2016 Credit Agreement, and had no regularly scheduled amortization, and (ii) a new five-year revolving credit facility in an aggregate principal amount of up to $ 80.0 million (the “Revolving Facility”), maturing in October 2024, which replaced our then existing $ 40.0 million revolving credit facility under the 2016 Credit Agreement, and includes a swing-line facility and letter of credit facility. Our obligations under the 2016 Credit Agreement continue to be secured by substantially all of our assets, as well as our direct and indirect subsidiaries’ assets, and is senior in position to the 2021 Senior Notes. On October 25, 2021, we entered into an amendment of our 2016 Credit Agreement ("Fourth Amendment"). The Fourth Amendment provides for, among other things, a three-year Term A loan in the aggregate maximum available amount of $ 60.0 million (the "Incremental Term A Loan"), proceeds from which were used to fund the Anlin Acquisition. The Fourth Amendment does not change any terms relating to the Revolving Facility, under which we pay quarterly fees on the unused portion of the revolving credit facility equal to a percentage spread (ranging from 0.25 % to 0.35 %) based on our first lien net leverage ratio. As of July 2, 2022, there were $ 5.7 million in letters of credit outstanding and $ 74.3 million available under the Revolving Facility. The weighted average all-in interest rate for borrowings under the term-loan portion of the 2016 Credit Agreement due 2024 was 3.67 % as of July 2, 2022, and was 2.10 % at January 1, 2022. Deferred Financing Costs The activity relating to deferred financing costs, composed of third-party fees and costs, and lender fees, for the six months ended July 2, 2022, are as follows. All deferred financing costs are classified as a reduction of the carrying value of long-term debt: (in thousands) Total At beginning of year $ 9,345 Less: Amortization expense ( 611 ) At end of period $ 8,734 Estimated amortization expense relating to deferred financing costs for the years indicated as of July 2, 2022, is as follows: (in thousands) Total Remainder of 2022 $ 622 2023 1,282 2024 1,282 2025 1,083 2026 1,114 Thereafter 3,351 Total $ 8,734 We have no scheduled payments of outstanding debt until the contractual maturity of the 2016 Credit Agreement in October 2024. Our contractual future maturities of long-term debt are as follows (at face value): (in thousands) Remainder of 2022 $ — 2023 — 2024 60,000 2025 — 2026 — Thereafter 575,000 Total $ 635,000 |
Leases
Leases | 6 Months Ended |
Jul. 02, 2022 | |
Leases [Abstract] | |
Leases | NOTE 10. LEASES We lease certain of our manufacturing facilities under operating leases. We also lease production equipment, vehicles, computer equipment, storage units and office equipment under operating leases. Our leases have remaining lease terms of 1 year to 10 years, some of which may include options to extend the leases for up to 5 years , and some of which may include options to terminate the leases within 1 year . All of our leases are operating leases. We did not recognize right-of-use assets or lease liabilities for certain short-term leases that are month-to-month leases. The lease expense relating to these leases is not significant. The components of lease expense for the three and six months ended July 2, 2022 and July 3, 2021, are as follows (in thousands): Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, 2022 2021 2022 2021 Operating lease cost $ 5,001 $ 3,898 $ 9,840 $ 6,777 Short-term lease cost 2,515 2,216 4,820 4,416 Total lease cost $ 7,516 $ 6,114 $ 14,660 $ 11,193 Other information relating to leases for the three and six months ended July 2, 2022 and July 3, 2021, are as follows (in thousands, except years and percentages): Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, 2022 2021 2022 2021 Supplemental cash flows information Cash paid for amounts included in the Operating cash flows relating to $ ( 4,788 ) $ ( 3,304 ) $ ( 9,317 ) $ ( 6,068 ) Right-of-use assets obtained in exchange Operating leases $ 10,938 $ 17,415 $ 12,262 $ 46,905 Weighted average remaining lease term in years Operating leases 6.56 6.74 6.56 6.74 Weighted average discount rate Operating leases 5.4 % 5.5 % 5.4 % 5.5 % Future maturities under operating leases were as follows at July 2, 2022 and January 1, 2022 (in thousands): July 2, January 1, 2022 2022 Remainder of 2022 $ 9,775 $ 17,929 2023 19,367 17,577 2024 18,797 16,990 2025 17,697 15,987 2026 16,584 15,025 2027 15,763 14,358 Thereafter 22,943 17,891 Total future minimum lease payments 120,926 115,757 Less: Imputed interest ( 18,529 ) ( 18,674 ) Operating lease liability - total $ 102,397 $ 97,083 Reported as of July 2, 2022 and January 2, 2021: Current portion of operating lease liability $ 14,883 $ 13,180 Operating lease liability, less current portion 87,514 83,903 Operating lease liability - total $ 102,397 $ 97,083 As of July 2, 2022, we had no additional operating or finance leases that have not yet commenced . Our operating leases expire at various times through 2032. Lease expense was $ 7.5 million for the three months ended July 2, 2022 and was $ 6.1 million for the three months ended July 3, 2021. Of the $ 7.5 million for the three months ended July 2, 2022, $ 3.8 million is classified as cost of sales in the accompanying condensed consolidated statement of operations, with the remainder classified within selling, general and administrative expenses. Of the $ 6.1 million for the three months ended July 3, 2021, $ 4.2 million is classified as cost of sales in the accompanying condensed consolidated statement of operations, with the remainder classified within selling, general and administrative expenses. Lease expense was $ 14.7 million for the six months ended July 2, 2022 and was $ 11.2 million for the six months ended July 3, 2021. Of the $ 14.7 million for the six months ended July 2, 2022, $ 7.4 million is classified as cost of sales in the accompanying condensed consolidated statement of operations, with the remainder classified within selling, general and administrative expenses. Of the $ 11.2 million for the six months ended July 3, 2021, $ 6.4 million is classified as cost of sales in the accompanying condensed consolidated statement of operations, with the remainder classified within selling, general and administrative expenses. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 02, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11. COMMITMENTS AND CONTINGENCIES Legal Proceedings Our Company is a party to various legal proceedings in the ordinary course of business. Although the ultimate disposition of those proceedings cannot be predicted with certainty, management believes the outcome of any claim that is pending or threatened, either individually or in the aggregate, will not have a material adverse effect on our operations, financial position or cash flows. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12. INCOME TAXES We had income tax expense of $ 12.0 million for the three months ended July 2, 2022, compared with income tax expense of $ 2.7 million for the three months ended July 3, 2021. Our effective tax rate for the three months ended July 2, 2022, was an expense rate of 24.8 % , and was an expense rate of 20.3 % for the three months ended July 3, 2021. Our income tax expense for the three months ended July 2, 2022, and July 3, 2021, includes $ 237 thousand and $ 426 thousand, respectively, relating to our 75 % share of the pre-tax earnings of Eco. We had an income tax expense of $ 19.8 million for the six months ended July 2, 2022, compared with income tax expense of $ 6.7 million for the six months ended July 3, 2021. Our effective tax rate for the six months ended July 2, 2022, was an expense rate of 24.7 % , and was an expense rate of 22.1 % for the six months ended July 3, 2021. Our income tax expense for the six months ended July 2, 2022, and July 3, 2021, includes $ 742 thousand and $ 731 thousand, respectively, relating to our 75 % share of the pre-tax earnings of Eco. Income tax expense in the three and six months ended July 2, 2022 includes a refund from the state of Florida, received by the Company in the second quarter of 2022, relating to excess taxes received by the state in 2021, which was $ 584 thousand, benefiting tax expense by $ 462 thousand, net of its Federal tax effect. Income tax expense in the three months ended July 2, 2022 and July 3, 2021 include discrete items of income tax benefit relating to excess tax benefits from the lapses of restrictions on stock awards, which totaled $ 40 thousand in the three months ended July 2, 2022, and $ 605 thousand in the three months ended July 3, 2021. Income tax expense in the six months ended July 2, 2022 and July 3, 2021 include discrete items of income tax benefit relating to excess tax benefits from the lapses of restrictions on stock awards, which totaled $ 96 thousand in the six months ended July 2, 2022, and $ 700 thousand in the six months ended July 3, 2021. Excluding discrete items of income tax, the effective tax rates for the three months ended July 2, 2022 and July 3, 2022, would have been income tax expense rates of 25.6 % and 24.1 % , respectively. Excluding discrete items of income tax, the effective tax rates for the six months ended July 2, 2022 and July 3, 2022, would have been income tax expense rates of 25.4 % and 24.1 % , respectively. In September 2021, the state of Florida announced that the corporate income tax rate for the 2021 tax year was being lowered from its then current level of 4.458 % to 3.535 %. However, for 2022, Florida's corporate income tax rate returned to its statutory level before the passage of the Tax Cuts and Jobs Act, which is 5.5 %. As such, we adjusted our annual effective tax rate for 2022 to include this increase in rate in Florida, where a substantial portion of our business is apportioned, to an estimated combined statutory federal and state rate of 25.7 % from our estimate in 2021 of 24.2 %. During the first quarters of 2022 or 2021, we were no t required to make any payments of estimated federal or state income taxes. During the first half of 2022, we made payments of estimated taxes totaling $ 9.6 million, which included $ 8.8 million in Federal estimated income taxes with the remainder to various states, primarily Florida. During the first half of 2021, we made payments of estimated taxes totaling $ 10.9 million, which included $ 7.6 million in Federal estimated income taxes with the remainder to various states, primarily Florida. |
Fair Value
Fair Value | 6 Months Ended |
Jul. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 13. FAIR VALUE Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A three-tier fair value hierarchy is used to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The accounting guidance concerning fair value allows us to elect to measure financial instruments at fair value and report the changes in fair value through earnings. This election can only be made at certain specified dates and is irrevocable once made. We do not have a policy regarding specific assets or liabilities to elect to measure at fair value, but rather we make the election on an instrument-by-instrument basis as they are acquired or incurred. During the three or six months ended July 2, 2022 or July 3, 2021, we did no t make any transfers between Level 2 and Level 3 financial assets. We conduct reviews on a quarterly basis to verify pricing, assess liquidity, and determine if significant inputs have changed that would impact the fair value hierarchy disclosure. Fair Value of Financial Instruments Our financial instruments include cash and cash equivalents, accounts and notes receivable, and accounts payable and accrued liabilities, whose carrying amounts approximate their fair values due to their short-term nature. Our financial instruments also include borrowings under our 2016 Credit Agreement, as well as the 2021 Senior Notes, all classified as long-term debt. The fair value of borrowings under the 2016 Credit Agreement due 2024 approximated its carrying value due to its variable-rate nature, and was approximately $ 60.0 million as of July 2, 2022, and January 1, 2022, compared to a principal outstanding value of $ 60.0 million at those dates, respectively. The fair value of the 2021 Senior Notes is based on debt with similar terms and characteristics and was approximately $ 452.1 million as of July 2, 2022, compared to a principal outstanding value of $ 575.0 million, and the fair value was approximately $ 578.2 million as of January 1, 2022, compared to a principal outstanding value of $ 575.0 million. Items Measured at Fair Value The following are measured in the condensed consolidated financial statements at fair value on a recurring basis and are categorized in the table below based upon the lowest level of significant input to the valuation (in thousands): Fair Value Measurements Assets (Liabilities) Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs July 2, 2022 Total (Level 1) (Level 2) (Level 3) Description Aluminum contracts $ ( 5,173 ) $ — $ ( 5,173 ) $ — MTP contracts 1,987 — 1,987 — $ ( 3,186 ) $ — $ ( 3,186 ) $ — Fair Value Measurements Assets (Liabilities) Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs January 1, 2022 Total (Level 1) (Level 2) (Level 3) Description Aluminum contracts $ 4,829 $ — $ 4,829 $ — MTP contracts 4,599 — 4,599 — $ 9,428 $ — $ 9,428 $ — See Note 14 for a description of the methods and assumptions used in the determination of the fair values of our aluminum forward and Midwest Transaction Premium (“MTP”) contracts, as well as the basis for classifying these assets and liabilities as Level 2. |
Derivatives
Derivatives | 6 Months Ended |
Jul. 02, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 14. DERIVATIVES Aluminum Contracts and Midwest Transaction Premium We enter into aluminum forward contracts to hedge the fluctuations in the purchase price of aluminum extrusion we use in production. In early 2020, we began entering into forward contracts to hedge the fluctuations in the price of the delivery component of our aluminum extrusion purchases, known as the Midwest Transaction Premium, or MTP. Our contracts are designated as cash flow hedges since they are highly effective in offsetting changes in the cash flows attributable to forecasted purchases of aluminum and the related MTP. We record our aluminum hedge contracts at fair value, based on trading values for aluminum forward contracts. Aluminum forward contracts identical to those held by us trade on the London Metal Exchange (“LME”). The LME provides a transparent forum and is the world’s largest center for the trading of futures contracts for non-ferrous metals. The prices are used by the metals industry worldwide as the basis for contracts for the movement of physical material throughout the production cycle. Based on this high degree of volume and liquidity in the LME, we believe the valuation price at any measurement date for contracts with identical terms as to prompt date, trade date and trade price as those we hold at any time represents a contract’s exit price to be used for purposes of determining fair value. We record our MTP hedge contracts at fair value, based on the Platts MW US Transaction price per pound assessment, which has been a benchmark for decades in the North American aluminum industry. Platts surveys the North American market daily to capture trades, bids and offers on a delivered Midwest basis. Data is normalized to reflect the typical price per pound between the largest number of market participants, for delivery within 7 to 30 days from date of publication, net- 30-day payment terms, for typical order quantities, chemistries and freight allowances. The survey is extensive and encompasses both domestic and offshore producers, traders and brokers that are varied in scope. Based on the extensive nature of this pricing mechanism, we believe the Platts MW US Transaction price at any time represents a contract’s exit price to be used for purposes of determining fair value. Guidance under the Financial Instruments Topic 825 of the Codification requires us to record our hedge contracts at fair value and consider our credit risk for contracts in a liability position, and our counter-party’s credit risk for contracts in an asset position, in determining fair value. We assess our counter-party’s risk of non-performance when measuring the fair value of financial instruments in an asset position by evaluating their financial position, including cash on hand, as well as their credit ratings. We assess our risk of non-performance when measuring the fair value of our financial instruments in a liability position by evaluating our credit ratings, our current liquidity including cash on hand and availability under our revolving credit facility as compared to the maturities of the financial liabilities. We do not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting arrangement. At July 2, 2022, the fair value of our aluminum forward contracts was in a liability position of $ 5.2 million. We had 16 outstanding forward contracts for the purchase of 24.3 million pounds of aluminum through December 2022, at an average price of $ 1.32 per pound, which excludes the Midwest premium, with maturity dates of between one and six months . At July 2, 2022, the fair value of our MTP contracts was in an asset position of $ 2.0 million. We had 4 outstanding MTP contracts to hedge the Platt US MW Transaction price per pound for the delivery of 10.5 million pounds of aluminum through December 2022, at an average price of $ 0.11 per pound, with maturity dates of between one and six months . We assessed the risk of non-performance of the Company and our counterparty to these contracts, as applicable, and determined it was immaterial and, therefore, did not record any adjustment to their fair values as of July 2, 2022. We assess the effectiveness of our aluminum forward and MTP contracts by comparing the change in the fair value of the forward contract to the change in the expected cash to be paid for the hedged item. The effective portion of the gain or loss on our aluminum forward contracts is reported as a component of accumulated other comprehensive income (loss) and is reclassified into earnings in the same line item in the income statement as the hedged item in the same period or periods during which the transaction affects earnings. We expect the amount of accumulated other comprehensive loss of approximately $ 3.2 million in the accompanying condensed consolidated balance sheet as of July 2, 2022, to be reclassified to earnings within the next twelve months. The fair values of our aluminum hedges and MTP contracts are classified in the accompanying condensed consolidated balance sheets at July 2, 2022 and January 1, 2022, as follows (in thousands): Derivative Assets Derivative Liabilities July 2, 2022 July 2, 2022 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum contracts Other current assets $ 152 Accrued liabilities $ ( 5,325 ) MTP contracts Other current assets 1,987 Accrued liabilities — Aluminum contracts Other assets — Other liabilities — MTP contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 2,139 Total derivative liabilities $ ( 5,325 ) Derivative Assets Derivative Liabilities January 1, 2022 January 1, 2022 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum contracts Other current assets $ 4,829 Accrued liabilities $ — MTP contracts Other current assets 4,599 Accrued liabilities — Aluminum contracts Other assets — Other liabilities — MTP contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 9,428 Total derivative liabilities $ — The ending accumulated balance for the aluminum forward and MTP contracts included in accumulated other comprehensive income (losses), net of tax, was an accumulated other comprehensive income of $ 2.4 million as of July 2, 2022, and was an accumulated other comprehensive income of $ 7.0 million at January 1, 2022. The income tax effects of accumulated comprehensive income (losses) are released as amounts are reclassified out of accumulated comprehensive income (losses) at the income tax rate used at the time those income tax effects were provided, which generally represents our blended statutory income tax rate. The following represents the gains (losses) on derivative financial instruments, and their classifications within the accompanying condensed consolidated financial statements, for the three and six months ended July 2, 2022 and July 3, 2021 (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Location of Gain or (Loss) Amount of Gain or (Loss) Three Months Ended Three Months Ended July 2, July 3, July 2, July 3, 2022 2021 2022 2021 Aluminum contracts $ ( 13,022 ) $ 5,108 Cost of sales $ 1,210 $ 2,764 MTP contracts $ 93 $ 3,965 Cost of sales $ 2,488 $ 1,369 Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Location of Gain or (Loss) Amount of Gain or (Loss) Six Months Ended Six Months Ended July 2, July 3, July 2, July 3, 2022 2021 2022 2021 Aluminum contracts $ ( 7,415 ) $ 9,191 Cost of sales $ 2,588 $ 4,152 MTP contracts $ 561 $ 8,170 Cost of sales $ 3,172 $ 1,756 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jul. 02, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 15. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table shows the components of accumulated other comprehensive income (loss) for the three and six months ended July 2, 2022 and July 3, 2021 (in thousands): Three months ended July 2, 2022 Aluminum MTP (in thousands) Contracts Contracts Total Balance at April 2, 2022 $ 6,784 $ 3,205 $ 9,989 Increase (decrease) in fair value of derivatives ( 13,022 ) 93 ( 12,929 ) Amounts reclassified from accumulated other comprehensive income (loss) ( 1,210 ) ( 2,488 ) ( 3,698 ) Tax effect 3,602 668 4,270 Net current-period other comprehensive loss ( 10,630 ) ( 1,727 ) ( 12,357 ) Balance at July 2, 2022 $ ( 3,846 ) $ 1,478 $ ( 2,368 ) Six months ended July 2, 2022 Aluminum MTP (in thousands) Contracts Contracts Total Balance at January 1, 2022 $ 3,610 $ 3,396 $ 7,006 Increase (decrease) in fair value of derivatives ( 7,415 ) 561 ( 6,854 ) Amounts reclassified from accumulated other comprehensive income (loss) ( 2,588 ) ( 3,172 ) ( 5,760 ) Tax effect 2,547 693 3,240 Net current-period other comprehensive loss ( 7,456 ) ( 1,918 ) ( 9,374 ) Balance at July 2, 2022 $ ( 3,846 ) $ 1,478 $ ( 2,368 ) Three months ended July 3, 2021 Aluminum MTP (in thousands) Contracts Contracts Total Balance at April 3, 2021 $ 4,428 $ 3,187 $ 7,615 Increase (decrease) in fair value of derivatives 5,108 3,965 9,073 Amounts reclassified from accumulated other comprehensive income (loss) ( 2,764 ) ( 1,369 ) ( 4,133 ) Tax effect ( 581 ) ( 644 ) ( 1,225 ) Net current-period other comprehensive income 1,763 1,952 3,715 Balance at July 3, 2021 $ 6,191 $ 5,139 $ 11,330 Six months ended July 3, 2021 Aluminum MTP (in thousands) Contracts Contracts Total Balance at January 2, 2021 $ 2,403 $ 317 $ 2,720 Increase (decrease) in fair value of derivatives 9,191 8,170 17,361 Amounts reclassified from accumulated other comprehensive income (loss) ( 4,152 ) ( 1,756 ) ( 5,908 ) Tax effect ( 1,251 ) ( 1,592 ) ( 2,843 ) Net current-period other comprehensive income 3,788 4,822 8,610 Balance at July 3, 2021 $ 6,191 $ 5,139 $ 11,330 |
Segments
Segments | 6 Months Ended |
Jul. 02, 2022 | |
Segment Reporting [Abstract] | |
Segments | NOTE 16. SEGMENTS We have two reportable segments: the Southeast segment, and the Western segment. The Southeast reporting segment, which is also an operating segment, is composed of sales from our facilities in Florida. The Western reporting segment, also an operating segment, is composed of sales from our facilities in Arizona and California. Centralized financial and operational oversight, including resource allocation and assessment of performance on an income from operations basis, is performed by our CEO, whom we have determined to be our chief operating decision maker (“CODM”), with oversight by the Board of Directors. The following table represents summary financial data attributable to our operating segments for the three and six months ended July 2, 2022, and July 3, 2021. Results of the Southeast segment for the three and six months ended July 2, 2022 includes the results of Eco for the entire three- and six-month periods, whereas for the three and six months ended July 3, 2021, the three months ended July 3, 2021 includes the results of Eco for the entire three-month period, but the six months ended July 3, 2021 includes only its post-acquisition period from February 1, 2021. Results of the Western segment for the three and six months ended July 2, 2022 includes the results of CRi, acquired May 1, 2021, and Anlin, acquired October 25, 2021. Results of the Western segment for the three and six months ended July 3, 2021, includes CRi's results for the post acquisition period from May 1, 2021, and no results from Anlin. Corporate overhead has been allocated to each segment using an allocation method we believe is reasonable (in thousands): Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, 2022 2021 2022 2021 Net sales: Southeast segment $ 307,492 $ 242,449 $ 579,259 $ 476,087 Western segment 99,029 43,051 185,924 80,505 Total net sales $ 406,521 $ 285,500 $ 765,183 $ 556,592 Income from operations: Southeast segment $ 41,014 $ 15,521 $ 66,570 $ 34,264 Western segment 14,611 5,743 27,766 11,196 Total income from operations 55,625 21,264 94,336 45,460 Interest expense, net 7,155 7,825 14,235 15,282 Total income before income taxes $ 48,470 $ 13,439 $ 80,101 $ 30,178 Depreciation expense for the three months ended July 2, 2022 and July 3, 2021, was $ 7.0 million and $ 6.8 million for our Southeast segment, respectively, and $ 1.5 million and $ 0.8 million for our Western segment, respectively. Depreciation expense for the six months ended July 2, 2022 and July 3, 2021, was $ 13.9 million and $ 12.6 million for our Southeast segment, respectively, and $ 3.1 million and $ 1.7 million for our Western segment, respectively. Amortization expense for the three months ended July 2, 2022 and July 3, 2021, $ 2.8 million, and $ 2.8 million for our Southeast segment, respectively, and $ 3.1 million and $ 2.4 million for our Western segment, respectively. Amortization expense for the six months ended July 2, 2022 and July 3, 2021, $ 5.5 million, and $ 5.2 million for our Southeast segment, respectively, and $ 8.4 million and $ 4.7 million for our Western segment, respectively. Total assets of our Southeast segment as of July 2, 2022 and January 1, 2022 were $ 979.8 million and $ 911.3 million, respectively. Total assets of our Western segment as of July 2, 2022 and January 1, 2022 were $ 586.6 million and $ 549.3 million, respectively. |
Reedemable Non-Controlling Inte
Reedemable Non-Controlling Interest | 6 Months Ended |
Jul. 02, 2022 | |
Noncontrolling Interest [Abstract] | |
Reedemable Non-Controlling Interest | NOTE 17. REEDEMABLE NON-CONTROLLING INTEREST On February 1, 2021, we completed an acquisition of a 75 % ownership stake in Eco. The seller of Eco obtained the remaining equity interest in the newly formed company, Eco Enterprises. The seller’s redeemable non-controlling interest was initially established at fair value. 15 -day period following the third anniversary. Upon exercise of the put or call right, the purchase price is calculated based on a future agreed performance metric . The put option makes the non-controlling interest redeemable and, therefore, the redeemable non-controlling interest is classified as temporary equity outside of shareholders’ equity. $ 51.4 million, which we accreted to $ 39.6 million as of July 2, 2022. The following table presents the changes in the Company’s redeemable non-controlling interest for the period presented: Six Months Ended July 2, July 3, (in thousands) 2022 2021 Balance at beginning of period $ 36,863 $ — Redeemable non-controlling interest in Eco at initially estimated fair value — 28,464 Net income attributable to redeemable non-controlling interest 961 979 Change in value of redeemable non-controlling interest 1,785 3,563 Balance at end of period $ 39,609 $ 33,006 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jul. 02, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all the information and footnotes required by United States Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. Our condensed consolidated financial statements are unaudited; however, in the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim period are not necessarily indicative of the results that may be expected for the remainder of the current year or for any future periods. The Company’s fiscal three and six months ended July 2, 2022, and July 3, 2021 consisted of 13 and 26 weeks, respectively. The condensed consolidated balance sheet as of January 1, 2022, is derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP. The condensed consolidated balance sheet as of January 1, 2022, and the unaudited condensed consolidated financial statements as of and for the periods ended July 2, 2022 and July 3, 2021, should be read in conjunction with the more detailed audited consolidated financial statements for the year ended January 1, 2022, included in the Company’s most recent Annual Report on Form 10-K/A. The accounting policies used in the preparation of these unaudited condensed consolidated financial statements are consistent with the accounting policies described in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K/A. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. We have two reportable segments: the Southeast segment and the Western segment. The Southeast reporting segment, which is also an operating segment, is composed of sales from our facilities in Florida. The Western reporting segment, also an operating segment, is composed of sales from our facilities in Arizona and California. See Note 16 for segment disclosures. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Business Combinations - Contracts Assets and Liabilities On October 28, 2021, the FASB issued ASU 2021-08, which amends ASC 805-20 to “require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination.” Under current GAAP, an acquirer generally recognizes such items at fair value on the acquisition date. This standard was effective beginning January 1, 2022 . Early adoption was permitted and was adopted by the Company in the period beginning January 3, 2021. The adoption of this standard did no t have any impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and in March 2021, subsequent amendment to the initial guidance, ASU 2021-01, “Reference Rate Reform (Topic 848): Scope” (collectively, “Topic 848”). Topic 848 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The guidance generally can be applied from March 12, 2020 through December 31, 2022. We have not elected adoption of this optional guidance and do not intend to elect this guidance before the sunset date of December 31, 2022, as there is no material impact on our consolidated financial statements. |
Revenue Recognition Accounting Policy | Revenue Recognition Accounting Policy The Company primarily manufactures fully customized windows and doors based on design specifications, measurements, colors, finishes, framing materials, glass-types, and other options selected by the customer at the point in time an order is received. The Company has an enforceable right to payment at the time an order is received and accepted at the agreed-upon sales prices contained in our agreements with our customers for all manufacturing efforts expended on behalf of its customers. Due to the customized build-to-order nature of these products, the Company’s assessment is that the substantial portion of its finished goods and certain unused glass components have no alternative use, and that control of these products and components passes to the customer over time during the manufacturing of the products in an order, or upon our receipt of certain pre-cut glass components from our supplier attributed to specific customer orders. Based on these factors, the Company recognizes a substantial portion of revenue over time during the manufacturing process once customization begins, and for certain unused glass components on hand, at the end of a reporting period. Revenue on work-in-process at the end of a reporting period is recognized in proportion to costs incurred to total estimated cost of the product being manufactured. Except for the Western segment’s volume products, discussed in the section titled Disaggregation of Revenue from Contracts with Customers below, revenue recognized at a point in time is immaterial. |
Shipping and Handling Cost and Commissions on Contract Assets | Policies Regarding Shipping and Handling Costs and Commissions on Contract Assets The Company has made a policy election to continue to recognize shipping and handling costs as a fulfillment activity. Treating shipping and handling as a fulfillment activity requires estimated shipping and handling costs for undelivered products and certain glass components on which we have recognized revenue and created a contract asset, to be accrued to match this cost with the recognized revenue. Sales taxes collected from customers are recorded on a net basis. The Company utilizes the practical expedient which permits the current expensing of costs to obtain a contract when the expected amortization period is one year or less, which typically results in expensing commissions paid to employees. We expense sales commissions paid to employees as sales are recognized, including sales from the creation of contract assets, as the expected amortization period is less than one year. |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales by Reporting Segment, Product Category and Market | The following table provides information about our net sales by reporting segment, product category and market for the three and six months ended July 2, 2022 and July 3, 2021: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Disaggregation of revenue (in millions) : 2022 2021 2022 2021 Reporting segment: Southeast $ 307.5 $ 242.4 $ 579.3 $ 476.1 Western 99.0 43.1 185.9 80.5 Total net sales $ 406.5 $ 285.5 $ 765.2 $ 556.6 Product category: Impact-resistant window and door products $ 243.0 $ 197.5 $ 460.8 $ 388.9 Non-impact window and door products 163.5 88.0 304.4 167.7 Total net sales $ 406.5 $ 285.5 $ 765.2 $ 556.6 Market: New construction $ 173.3 $ 124.5 $ 323.4 $ 244.5 Repair and remodel 233.2 161.0 441.8 312.1 Total net sales $ 406.5 $ 285.5 $ 765.2 $ 556.6 |
Warranty (Tables)
Warranty (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Summary of Current Period Charges, Adjustments to Previous Estimates, Settlements representing Actual Costs Incurred with regard to Accrued Warranty | The following table summarizes current period charges, adjustments to previous estimates, as well as settlements, which represent actual costs incurred during the period for the three and six months ended July 2, 2022 and July 3, 2021. Beginning Acquisition- Charged End of Accrued Warranty of Period Related to Expense Adjustments Settlements Period (in thousands) Three months ended July 2, 2022 $ 16,321 $ — $ 6,844 $ ( 237 ) $ ( 6,777 ) $ 16,151 Three months ended July 3, 2021 $ 9,643 $ 189 $ 5,343 $ ( 748 ) $ ( 4,968 ) $ 9,459 Six months ended July 2, 2022 $ 13,504 $ — $ 15,992 $ 513 $ ( 13,858 ) $ 16,151 Six months ended July 3, 2021 $ 8,001 $ 189 $ 12,309 $ ( 359 ) $ ( 10,681 ) $ 9,459 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: July 2, January 1, 2022 2022 (in thousands) Raw materials $ 106,083 $ 87,164 Work-in-progress 3,385 3,248 Finished goods 777 1,028 Inventories $ 110,245 $ 91,440 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Anlin Windows and Doors [Member] | |
Business Acquisition [Line Items] | |
Schedule for Valuation of Identifiable Intangible Assets Acquired and Estimate of Useful Lives | The valuation of the identifiable intangible assets acquired in the Anlin Acquisition and our estimate of their respective useful lives are as follows: Initial Initial Adjustment to Preliminary Useful Life Valuation Valuation Valuation (in years) (in thousands) Trade name $ 35,400 $ ( 3,700 ) $ 31,700 indefinite Customer relationships 42,100 ( 4,300 ) 37,800 15 Customer-related backlog — 2,200 2,200 < 1 Developed technology 300 — 300 9 Intangible assets, net $ 77,800 $ ( 5,800 ) $ 72,000 |
Schedule of Fair Value of Assets and Liabilities Assumed | The estimated fair value of assets acquired, and liabilities assumed as of the closing date of the Anlin Acquisition, are as follows: Initial Adjustments to Preliminary Accounts receivable $ 10,803 $ — $ 10,803 Inventories 7,633 ( 327 ) 7,306 Contract assets, net 7,027 — 7,027 Prepaid expenses and other assets 1,626 ( 954 ) 672 Property and equipment 22,800 1,509 24,309 Operating lease right-of-use asset 3,450 14 3,464 Intangible assets 77,800 ( 5,800 ) 72,000 Total assets acquired 131,139 ( 5,558 ) 125,581 Accounts payable ( 5,175 ) 593 ( 4,582 ) Accrued and other liabilities ( 7,993 ) — ( 7,993 ) Operating lease liability ( 3,450 ) ( 14 ) ( 3,464 ) Total liabilities assumed ( 16,618 ) 579 ( 16,039 ) Net assets acquired 114,521 ( 4,979 ) 109,542 Goodwill 5,596 6,554 12,150 Fair value of consideration transferred $ 120,117 $ 1,575 $ 121,692 Consideration: Cash $ 114,196 $ 786 $ 114,982 Contingent consideration 5,921 789 6,710 Fair value of consideration transferred $ 120,117 $ 1,575 $ 121,692 |
Summary of Unaudited Proforma Results | The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Three Months Ended Six Months Ended Pro Forma Results (unaudited) July 3, 2021 July 3, 2021 (in thousands, except per share amounts) (unaudited) Net sales $ 314,270 $ 609,782 Net income attributable to common shareholders $ 8,992 $ 21,737 Net income per common share attributable to common shareholders: Basic $ 0.15 $ 0.37 Diluted $ 0.15 $ 0.36 |
ECO [Member] | |
Business Acquisition [Line Items] | |
Schedule for Valuation of Identifiable Intangible Assets Acquired and Estimate of Useful Lives | The valuation of the identifiable intangible assets acquired in the Eco Acquisition and our estimate of their respective useful lives are as follows: Initial Initial Adjustment to Final Useful Life Valuation Valuation Valuation (in years) (in thousands) Trade names $ 36,000 $ ( 1,100 ) $ 34,900 indefinite Customer relationships 36,700 2,700 39,400 5 - 15 Intangible assets, net $ 72,700 $ 1,600 $ 74,300 |
Schedule of Fair Value of Assets and Liabilities Assumed | The estimated fair value of assets acquired, and liabilities assumed as of the closing date of the Eco Acquisition, are as follows: Initial Adjustments to Final Accounts receivable $ 5,031 $ ( 241 ) $ 4,790 Inventories 7,728 ( 684 ) 7,044 Contract assets, net 4,312 ( 123 ) 4,189 Prepaid expenses and other assets 1,706 ( 759 ) 947 Property and equipment 24,009 ( 191 ) 23,818 Operating lease right-of-use asset 27,864 ( 1,049 ) 26,815 Intangible assets 72,700 1,600 74,300 Total assets acquired 143,350 ( 1,447 ) 141,903 Accounts payable ( 6,809 ) ( 116 ) ( 6,925 ) Accrued and other liabilities, including customer deposits ( 4,215 ) ( 604 ) ( 4,819 ) Operating lease liability ( 27,864 ) 1,049 ( 26,815 ) Total liabilities assumed ( 38,888 ) 329 ( 38,559 ) Net assets acquired 104,462 ( 1,118 ) 103,344 Redeemable non-controlling interest ( 34,084 ) 5,620 ( 28,464 ) Net assets acquired, net of redeemable non-controlling interest 70,378 4,502 74,880 Goodwill 30,051 ( 2,967 ) 27,084 Fair value of consideration transferred $ 100,429 $ 1,535 $ 101,964 Consideration: Cash $ 94,321 $ 35 $ 94,356 PGTI common stock 6,108 — 6,108 Contingent consideration — 1,500 1,500 Fair value of consideration transferred $ 100,429 $ 1,535 $ 101,964 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Earnings Per Share [Abstract] | |
Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS | The table below presents the calculation of EPS and a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, 2022 2021 2022 2021 (in thousands, except per share amounts) Net income $ 36,465 $ 10,713 $ 60,291 $ 23,508 Less: Net income attributable to RNCI ( 304 ) ( 568 ) ( 961 ) ( 979 ) Net income attributable to the Company 36,161 10,145 59,330 22,529 Decrease (increase) in redemption value of RNCI 351 ( 3,563 ) ( 1,785 ) ( 3,563 ) Net income attributable to common shareholders $ 36,512 $ 6,582 $ 57,545 $ 18,966 Weighted-average number of common shares outstanding - Basic 59,928 59,551 59,880 59,418 Add: Dilutive shares from equity plans 329 500 361 559 Weighted-average number of common shares outstanding - Diluted 60,257 60,051 60,241 59,977 Net income per common share attributable to common shareholders: Basic $ 0.61 $ 0.11 $ 0.96 $ 0.32 Diluted $ 0.61 $ 0.11 $ 0.96 $ 0.32 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets Net | Goodwill and intangible assets are as follows: Initial July 2, January 2, Useful Life 2022 2021 (in years) (in thousands) Goodwill $ 372,652 $ 364,598 indefinite Other intangible assets: Trade names (indefinite-lived) $ 208,441 $ 212,141 indefinite Customer relationships and customer-related assets 286,947 289,047 < 1 - 15 Trade name (amortizable) 22,200 22,200 15 Developed technology 5,900 5,900 6 - 10 Non-compete agreement 3,338 3,338 2 - 5 Software license 590 590 2 Less: Accumulated amortization ( 152,615 ) ( 138,691 ) Subtotal 166,360 182,384 Other intangible assets, net $ 374,801 $ 394,525 Goodwill at January 1, 2022 $ 364,598 Increase in Anlin Acquisition contingent consideration 789 Decrease in Anlin Acquisition trade name 3,700 Decrease in Anlin Acquisition customer relationships 4,300 Increase in Anlin Acquisition customer-related backlog asset ( 2,200 ) Final net working capital payment in Anlin Acquisition 786 Estimated contingent consideration in Eco Acquisition 1,500 Net other measurement period changes in Anlin Acquisition ( 821 ) Goodwill at July 2, 2022 $ 372,652 Trade names (indefinite-lived) at January 1, 2022 $ 212,141 Decrease in Anlin Acquisition trade name ( 3,700 ) Trade names (indefinite-lived) at July 2, 2022 $ 208,441 |
Estimated Amortization for Future Fiscal Year | Estimated amortization of our amortizable intangible assets for future years is as follows: (in thousands) Total Remainder of 2022 $ 10,963 2023 20,520 2024 20,474 2025 20,299 2026 16,906 Thereafter 77,198 Total $ 166,360 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | July 2, January 1, 2022 2022 (in thousands) 2021 Senior Notes due 2029, maturing in October 2029 $ 575,000 $ 575,000 2016 Credit Agreement due 2024, maturing in October 2024 60,000 60,000 Long-term debt 635,000 635,000 Deferred financing costs ( 8,734 ) ( 9,345 ) Long-term debt, net $ 626,266 $ 625,655 |
Activity Relating to Deferred Financing Costs Composed of Third-Party Fees and Costs, and Lender Fees | The activity relating to deferred financing costs, composed of third-party fees and costs, and lender fees, for the six months ended July 2, 2022, are as follows. All deferred financing costs are classified as a reduction of the carrying value of long-term debt: (in thousands) Total At beginning of year $ 9,345 Less: Amortization expense ( 611 ) At end of period $ 8,734 |
Estimated Amortization Expense Relating to Deferred Financing Costs | Estimated amortization expense relating to deferred financing costs for the years indicated as of July 2, 2022, is as follows: (in thousands) Total Remainder of 2022 $ 622 2023 1,282 2024 1,282 2025 1,083 2026 1,114 Thereafter 3,351 Total $ 8,734 |
Contractual Future Maturities of Long-Term Debt | Our contractual future maturities of long-term debt are as follows (at face value): (in thousands) Remainder of 2022 $ — 2023 — 2024 60,000 2025 — 2026 — Thereafter 575,000 Total $ 635,000 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense for the three and six months ended July 2, 2022 and July 3, 2021, are as follows (in thousands): Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, 2022 2021 2022 2021 Operating lease cost $ 5,001 $ 3,898 $ 9,840 $ 6,777 Short-term lease cost 2,515 2,216 4,820 4,416 Total lease cost $ 7,516 $ 6,114 $ 14,660 $ 11,193 |
Other Information Relating to Leases | Other information relating to leases for the three and six months ended July 2, 2022 and July 3, 2021, are as follows (in thousands, except years and percentages): Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, 2022 2021 2022 2021 Supplemental cash flows information Cash paid for amounts included in the Operating cash flows relating to $ ( 4,788 ) $ ( 3,304 ) $ ( 9,317 ) $ ( 6,068 ) Right-of-use assets obtained in exchange Operating leases $ 10,938 $ 17,415 $ 12,262 $ 46,905 Weighted average remaining lease term in years Operating leases 6.56 6.74 6.56 6.74 Weighted average discount rate Operating leases 5.4 % 5.5 % 5.4 % 5.5 % |
Future Maturities under Operating Leases | Future maturities under operating leases were as follows at July 2, 2022 and January 1, 2022 (in thousands): July 2, January 1, 2022 2022 Remainder of 2022 $ 9,775 $ 17,929 2023 19,367 17,577 2024 18,797 16,990 2025 17,697 15,987 2026 16,584 15,025 2027 15,763 14,358 Thereafter 22,943 17,891 Total future minimum lease payments 120,926 115,757 Less: Imputed interest ( 18,529 ) ( 18,674 ) Operating lease liability - total $ 102,397 $ 97,083 Reported as of July 2, 2022 and January 2, 2021: Current portion of operating lease liability $ 14,883 $ 13,180 Operating lease liability, less current portion 87,514 83,903 Operating lease liability - total $ 102,397 $ 97,083 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value on Recurring Basis | The following are measured in the condensed consolidated financial statements at fair value on a recurring basis and are categorized in the table below based upon the lowest level of significant input to the valuation (in thousands): Fair Value Measurements Assets (Liabilities) Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs July 2, 2022 Total (Level 1) (Level 2) (Level 3) Description Aluminum contracts $ ( 5,173 ) $ — $ ( 5,173 ) $ — MTP contracts 1,987 — 1,987 — $ ( 3,186 ) $ — $ ( 3,186 ) $ — Fair Value Measurements Assets (Liabilities) Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs January 1, 2022 Total (Level 1) (Level 2) (Level 3) Description Aluminum contracts $ 4,829 $ — $ 4,829 $ — MTP contracts 4,599 — 4,599 — $ 9,428 $ — $ 9,428 $ — |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Hedges | The fair values of our aluminum hedges and MTP contracts are classified in the accompanying condensed consolidated balance sheets at July 2, 2022 and January 1, 2022, as follows (in thousands): Derivative Assets Derivative Liabilities July 2, 2022 July 2, 2022 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum contracts Other current assets $ 152 Accrued liabilities $ ( 5,325 ) MTP contracts Other current assets 1,987 Accrued liabilities — Aluminum contracts Other assets — Other liabilities — MTP contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 2,139 Total derivative liabilities $ ( 5,325 ) Derivative Assets Derivative Liabilities January 1, 2022 January 1, 2022 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum contracts Other current assets $ 4,829 Accrued liabilities $ — MTP contracts Other current assets 4,599 Accrued liabilities — Aluminum contracts Other assets — Other liabilities — MTP contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 9,428 Total derivative liabilities $ — |
Gains (Losses) on Derivative Financial Instruments | The following represents the gains (losses) on derivative financial instruments, and their classifications within the accompanying condensed consolidated financial statements, for the three and six months ended July 2, 2022 and July 3, 2021 (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Location of Gain or (Loss) Amount of Gain or (Loss) Three Months Ended Three Months Ended July 2, July 3, July 2, July 3, 2022 2021 2022 2021 Aluminum contracts $ ( 13,022 ) $ 5,108 Cost of sales $ 1,210 $ 2,764 MTP contracts $ 93 $ 3,965 Cost of sales $ 2,488 $ 1,369 Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Location of Gain or (Loss) Amount of Gain or (Loss) Six Months Ended Six Months Ended July 2, July 3, July 2, July 3, 2022 2021 2022 2021 Aluminum contracts $ ( 7,415 ) $ 9,191 Cost of sales $ 2,588 $ 4,152 MTP contracts $ 561 $ 8,170 Cost of sales $ 3,172 $ 1,756 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table shows the components of accumulated other comprehensive income (loss) for the three and six months ended July 2, 2022 and July 3, 2021 (in thousands): Three months ended July 2, 2022 Aluminum MTP (in thousands) Contracts Contracts Total Balance at April 2, 2022 $ 6,784 $ 3,205 $ 9,989 Increase (decrease) in fair value of derivatives ( 13,022 ) 93 ( 12,929 ) Amounts reclassified from accumulated other comprehensive income (loss) ( 1,210 ) ( 2,488 ) ( 3,698 ) Tax effect 3,602 668 4,270 Net current-period other comprehensive loss ( 10,630 ) ( 1,727 ) ( 12,357 ) Balance at July 2, 2022 $ ( 3,846 ) $ 1,478 $ ( 2,368 ) Six months ended July 2, 2022 Aluminum MTP (in thousands) Contracts Contracts Total Balance at January 1, 2022 $ 3,610 $ 3,396 $ 7,006 Increase (decrease) in fair value of derivatives ( 7,415 ) 561 ( 6,854 ) Amounts reclassified from accumulated other comprehensive income (loss) ( 2,588 ) ( 3,172 ) ( 5,760 ) Tax effect 2,547 693 3,240 Net current-period other comprehensive loss ( 7,456 ) ( 1,918 ) ( 9,374 ) Balance at July 2, 2022 $ ( 3,846 ) $ 1,478 $ ( 2,368 ) Three months ended July 3, 2021 Aluminum MTP (in thousands) Contracts Contracts Total Balance at April 3, 2021 $ 4,428 $ 3,187 $ 7,615 Increase (decrease) in fair value of derivatives 5,108 3,965 9,073 Amounts reclassified from accumulated other comprehensive income (loss) ( 2,764 ) ( 1,369 ) ( 4,133 ) Tax effect ( 581 ) ( 644 ) ( 1,225 ) Net current-period other comprehensive income 1,763 1,952 3,715 Balance at July 3, 2021 $ 6,191 $ 5,139 $ 11,330 Six months ended July 3, 2021 Aluminum MTP (in thousands) Contracts Contracts Total Balance at January 2, 2021 $ 2,403 $ 317 $ 2,720 Increase (decrease) in fair value of derivatives 9,191 8,170 17,361 Amounts reclassified from accumulated other comprehensive income (loss) ( 4,152 ) ( 1,756 ) ( 5,908 ) Tax effect ( 1,251 ) ( 1,592 ) ( 2,843 ) Net current-period other comprehensive income 3,788 4,822 8,610 Balance at July 3, 2021 $ 6,191 $ 5,139 $ 11,330 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Segment Reporting [Abstract] | |
Summary of Financial Data Attributable to Operating Segments | Corporate overhead has been allocated to each segment using an allocation method we believe is reasonable (in thousands): Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, 2022 2021 2022 2021 Net sales: Southeast segment $ 307,492 $ 242,449 $ 579,259 $ 476,087 Western segment 99,029 43,051 185,924 80,505 Total net sales $ 406,521 $ 285,500 $ 765,183 $ 556,592 Income from operations: Southeast segment $ 41,014 $ 15,521 $ 66,570 $ 34,264 Western segment 14,611 5,743 27,766 11,196 Total income from operations 55,625 21,264 94,336 45,460 Interest expense, net 7,155 7,825 14,235 15,282 Total income before income taxes $ 48,470 $ 13,439 $ 80,101 $ 30,178 |
Reedemable Non-Controlling In_2
Reedemable Non-Controlling Interest (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Noncontrolling Interest [Abstract] | |
Summary of Changes in Redeemable Non-Controlling Interest | The following table presents the changes in the Company’s redeemable non-controlling interest for the period presented: Six Months Ended July 2, July 3, (in thousands) 2022 2021 Balance at beginning of period $ 36,863 $ — Redeemable non-controlling interest in Eco at initially estimated fair value — 28,464 Net income attributable to redeemable non-controlling interest 961 979 Change in value of redeemable non-controlling interest 1,785 3,563 Balance at end of period $ 39,609 $ 33,006 |
Description of Business and B_3
Description of Business and Basis of Presentation - Additional Information (Detail) | 6 Months Ended |
Jul. 02, 2022 Segment Plant | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of reportable segments | Segment | 2 |
Change in accounting principle accounting standards update adopted | true |
Change in accounting principle, accounting standards update, adoption date | Dec. 29, 2019 |
Accounting Standards Update 2021-08 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in accounting principle accounting standards update adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2022 |
Change in accounting principle, accounting standards update, early adoption | true |
Change in accounting principle, accounting standards update, immaterial effect | true |
Glass Tempering and Laminating Plant [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of plants | 2 |
Glass Tempering and Laminating Plant [Member] | North Venice, Florida [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of plants | 1 |
Glass Tempering and Laminating Plant [Member] | Medley, Florida [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of plants | 1 |
Insulation Glass Plants [Member] | North Venice, Florida [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of plants | 1 |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2022 USD ($) | Jul. 03, 2021 USD ($) | Jul. 02, 2022 USD ($) Segment | Jul. 03, 2021 USD ($) | Jan. 01, 2022 USD ($) | |
Disaggregation Of Revenue [Line Items] | |||||
Number of reportable segments | Segment | 2 | ||||
Net sales | $ 406,521 | $ 285,500 | $ 765,183 | $ 556,592 | |
Contract liabilities | 46,800 | 46,800 | $ 45,200 | ||
Contract assets, net | $ 59,309 | $ 59,309 | 55,239 | ||
Revenue recognition, practical expedient | true | ||||
Change in accounting principle accounting standards update adopted | true | true | |||
Change in accounting principle, accounting standards update, adoption date | Dec. 29, 2019 | Dec. 29, 2019 | |||
Accounting standards update extensible list | us-gaap:AccountingStandardsUpdate201613Member | ||||
Accounts receivable, gross | $ 187,500 | $ 187,500 | 145,900 | ||
Allowance for credit losses | 9,300 | 9,300 | 4,700 | ||
Additional reserves for credit losses | 3,000 | ||||
Provisions for credit losses | 4,600 | 6,048 | 2,882 | ||
Accrued Liabilities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract liabilities | 37,100 | 37,100 | 37,000 | ||
Reduction to Contract Assets [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract liabilities | 9,700 | 9,700 | $ 8,200 | ||
Western Segment [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net sales | 99,029 | 43,051 | 185,924 | 80,505 | |
Western Segment [Member] | Volume Products [Member] | Passes at Point in Time [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net sales | $ 29,700 | $ 20,900 | $ 56,000 | $ 40,600 |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Net Sales by Reporting Segment, Product Category and Market (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 406,521 | $ 285,500 | $ 765,183 | $ 556,592 |
Southeast Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 307,492 | 242,449 | 579,259 | 476,087 |
Western Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 99,029 | 43,051 | 185,924 | 80,505 |
Impact-Resistant Windows and Door Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 243,000 | 197,500 | 460,800 | 388,900 |
Non-Impact Window and Door Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 163,500 | 88,000 | 304,400 | 167,700 |
New Construction [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 173,300 | 124,500 | 323,400 | 244,500 |
Repair and Remodel [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 233,200 | $ 161,000 | $ 441,800 | $ 312,100 |
Warranty - Additional Informati
Warranty - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Jan. 01, 2022 | |
Product Warranty Liability [Line Items] | |||||
Warranty expense, average rate of sales | 1.70% | 1.90% | 2.10% | 2.20% | |
Warranty expense rate description | Our warranty expense rate in the three months ended July 2, 2022 is a result of a decrease in the use of higher-cost contract labor we had used in the first quarter of 2022 to respond to warranty claims due to a currently tight labor market, whereas in the three months ended July 3, 2021, the wind-down of certain commercial business in the first quarter of 2021 resulted in warranty costs higher than those we would incur in the normal course of business.During the six months ended July 2, 2022, we recorded warranty expense at a rate of approximately 2.1% of sales, which was about level with the six months ended July 3, 2021 of 2.2% of sales. Our warranty expense rate in the six months ended July 2, 2022 is a result of an increase in the use of higher-cost contract labor during the first quarter of 2022 to respond to warranty claims due to a currently tight labor market, whereas in the six months ended July 3, 2021, the wind-down of certain commercial business in the first quarter of 2021 resulted in warranty costs higher than those we would incur in the normal course of business. | ||||
Accrued warranty reserve | $ 16.2 | $ 16.2 | $ 13.5 | ||
Accrued Expenses [Member] | |||||
Product Warranty Liability [Line Items] | |||||
Accrued warranty reserve, current | $ 13.8 | $ 13.8 | $ 11.8 | ||
Minimum [Member] | |||||
Product Warranty Liability [Line Items] | |||||
Warranty periods | 1 year | ||||
Warranty period of the majority of products sold | 1 year | ||||
Maximum [Member] | |||||
Product Warranty Liability [Line Items] | |||||
Warranty periods | 10 years | ||||
Warranty period of the majority of products sold | 3 years |
Warranty - Summary of Current P
Warranty - Summary of Current Period Charges, Adjustments to Previous Estimates, Settlements representing Actual Costs Incurred with regard to Accrued Warranty (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Guarantees and Product Warranties [Abstract] | ||||
Accrued Warranty, Beginning of Period | $ 16,321 | $ 9,643 | $ 13,504 | $ 8,001 |
Accrued Warranty, Acquisition - Related | 189 | 189 | ||
Accrued Warranty, Charged to Expense | 6,844 | 5,343 | 15,992 | 12,309 |
Accrued Warranty, Adjustments | (237) | (748) | 513 | (359) |
Accrued Warranty, Settlements | (6,777) | (4,968) | (13,858) | (10,681) |
Accrued Warranty, End of Period | $ 16,151 | $ 9,459 | $ 16,151 | $ 9,459 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 01, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 106,083 | $ 87,164 |
Work-in-progress | 3,385 | 3,248 |
Finished goods | 777 | 1,028 |
Inventories | $ 110,245 | $ 91,440 |
Stock Based-Compensation - Addi
Stock Based-Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 14, 2022 | Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense for stock based awards | $ 2,700 | $ 1,700 | $ 4,909 | $ 3,494 | |
Selling, General and Administrative Expenses [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense for stock based awards | 2,300 | $ 1,500 | 4,200 | $ 3,000 | |
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation | $ 15,400 | $ 15,400 | |||
Weighted-average period | 1 year 10 months 24 days | ||||
Restricted Stock [Member] | 2022 Long Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance criteria defined in share awards | The percentages, ranging from less than 80% to greater than 120% of the target amount of that EBITDA metric, provide for the awarding of shares ranging from 0% to 200% of the target amount of shares with respect to 37.5% of half of the 234,259 shares, or 87,849 shares. | ||||
Restricted Stock [Member] | 2022 Long Term Incentive Plan [Member] | Executive and Non Executive Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock awards | 468,518 | ||||
Shares awarded subject to performance adjustment | 234,259 | ||||
Shares awarded subject to total shareholder return | 234,259 | ||||
Weighted average fair value of common stock | $ 19.84 | ||||
Restricted Stock [Member] | 2022 Long Term Incentive Plan [Member] | Executive and Non Executive Employees [Member] | EBITDA Criteria of Performance and TSR component [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock awards | 146,410 | ||||
Percentage of shares issuable based on target performance | 62.50% | ||||
Weighted average fair value of common stock | $ 20.79 | ||||
Restricted Stock [Member] | 2022 Long Term Incentive Plan [Member] | Executive and Non Executive Employees [Member] | EBITDA Criteria [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock awards | 87,849 | ||||
Percentage of shares issuable based on target performance | 37.50% | ||||
Restricted Stock [Member] | 2022 Long Term Incentive Plan [Member] | Executive and Non Executive Employees [Member] | TSR Falls at 75th Percentile or Higher [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of additional performance shares to be received by grantee | 25% | ||||
Restricted Stock [Member] | 2022 Long Term Incentive Plan [Member] | Executive and Non Executive Employees [Member] | TSR Falls at 25th Percentile or Lower [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of performance shares to be forfeiture by grantee | 25% | ||||
Restricted Stock [Member] | 2022 Long Term Incentive Plan [Member] | Executive and Non Executive Employees [Member] | Company Performance Criteria [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock awards | 234,259 | ||||
Weighted average fair value of common stock | $ 18.27 | ||||
Restricted Stock [Member] | 2022 Long Term Incentive Plan [Member] | Executive and Non Executive Employees [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares issuable based on target performance | 200% | ||||
Performance percentage | 120% | ||||
Restricted Stock [Member] | 2022 Long Term Incentive Plan [Member] | Executive and Non Executive Employees [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares issuable based on target performance | 0% | ||||
Performance percentage | 80% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||||||||
Oct. 25, 2021 USD ($) | May 02, 2021 USD ($) | Feb. 01, 2021 USD ($) Location $ / shares shares | Feb. 01, 2021 USD ($) $ / shares | Jul. 02, 2022 USD ($) | Jul. 03, 2021 USD ($) | Jan. 02, 2021 USD ($) | Jul. 02, 2022 USD ($) | Jul. 03, 2021 USD ($) | Apr. 02, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 372,652,000 | $ 364,598,000 | $ 372,652,000 | $ 364,598,000 | |||||||
Aggregate principal amount issuance | 635,000,000 | 635,000,000 | 635,000,000 | ||||||||
Net sales | 406,521,000 | $ 285,500,000 | 765,183,000 | $ 556,592,000 | |||||||
Net income attributable to common shareholders | 36,161,000 | 10,145,000 | 59,330,000 | 22,529,000 | |||||||
Net income including portion attributable to non-controlling interest | 36,465,000 | 10,713,000 | 60,291,000 | 23,508,000 | |||||||
Net income portion attributable to redeemable non-controlling interest | 304,000 | 568,000 | 961,000 | 979,000 | |||||||
Southeast Segment [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | 228,300,000 | 228,300,000 | 226,800,000 | ||||||||
Net sales | 307,492,000 | $ 242,449,000 | 579,259,000 | 476,087,000 | |||||||
2016 Credit Agreement Due 2024 [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate principal amount issuance | 60,000,000 | 60,000,000 | $ 60,000,000 | ||||||||
Anlin Windows & Doors [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Fair value of consideration | $ 121,692,000 | ||||||||||
Cash payment to acquire business | 114,982,000 | 800,000 | |||||||||
Decrease in acquired accounts receivable | 10,803,000 | ||||||||||
Contingent consideration payment | 2,700,000 | ||||||||||
Goodwill estimated to tax deductible, difference | 7,900,000 | ||||||||||
Estimated fair value of assets acquired | 125,581,000 | ||||||||||
Liabilities assumed | 16,039,000 | ||||||||||
Intangible assets | 72,000,000 | ||||||||||
Goodwill | $ 12,150,000 | 12,200,000 | 12,200,000 | ||||||||
Business combination, effective date of acquisition | Oct. 25, 2021 | ||||||||||
Business combination, purchase price | $ 113,500,000 | ||||||||||
Working capital adjustments | 1,500,000 | ||||||||||
Additional payment on working capital adjustments | 800,000 | ||||||||||
Earn-out contingency liability adjustment | $ 800,000 | ||||||||||
Fair value of contingent consideration | 6,700,000 | 8,800,000 | 8,800,000 | ||||||||
Earn-out contingency payment due in one year | 3,200,000 | ||||||||||
Earn-out contingency payment due in two year | 9,500,000 | ||||||||||
Earn-out contingency liability | 5,900,000 | 6,700,000 | |||||||||
Contingent consideration | 6,710,000 | ||||||||||
Initial estimated fair value of contingent consideration remaining payment | 4,300,000 | 4,300,000 | |||||||||
Business combination, acquisition related costs | 4,500,000 | ||||||||||
Net sales | 38,800,000 | 71,200,000 | |||||||||
Net income attributable to common shareholders | 7,300,000 | 10,200,000 | |||||||||
Anlin Windows & Doors [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Estimated fair value exceeded amount | 300,000 | ||||||||||
Business combination, acquisition related costs | 1,800,000 | ||||||||||
Anlin Windows & Doors [Member] | 2021 Anlin EBITDA [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Contingent consideration | 2,400,000 | ||||||||||
Anlin Windows & Doors [Member] | 2022 Anlin EBITDA [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Contingent consideration | 4,300,000 | ||||||||||
Anlin Windows & Doors [Member] | 2016 Credit Agreement [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash payment to acquire business | 115,000,000 | ||||||||||
Anlin Windows & Doors [Member] | 2016 Credit Agreement Due 2024 [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash payment to acquire business | 115,000,000 | ||||||||||
Proceeds from term loan | 60,000,000 | ||||||||||
Debt instrument, fees | 59,400 | ||||||||||
Anlin Windows & Doors [Member] | 4.375% Senior Notes Due in 2029 [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate principal amount | $ 575,000,000 | ||||||||||
Accrued Interest rate | 4.375% | ||||||||||
Anlin Windows & Doors [Member] | Customer Relationships [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | 2,200,000 | $ 2,200,000 | |||||||||
Anlin Windows & Doors [Member] | Customer-related backlog [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | 2,200,000 | ||||||||||
Anlin Windows & Doors [Member] | Anlins Backlog [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | $ 2,200,000 | ||||||||||
Anlin Windows & Doors [Member] | Cash On Hand [Member] | 2016 Credit Agreement Due 2024 [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash payment to acquire business | $ 55,600,000 | ||||||||||
CRi [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Fair value of consideration | $ 12,500,000 | ||||||||||
Cash payment to acquire business | 12,100,000 | ||||||||||
Decrease in acquired accounts receivable | 400 | ||||||||||
Estimated fair value of assets acquired | 17,600,000 | ||||||||||
Liabilities assumed | 5,100,000 | ||||||||||
Operating lease right of use assets and operating lease liabilities | 2,600,000 | ||||||||||
Current assets | 4,100,000 | ||||||||||
Intangible assets | 7,000,000 | ||||||||||
Goodwill | 3,700,000 | ||||||||||
Trade accounts payable and customer deposits | $ 2,500,000 | ||||||||||
ECO [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Fair value of consideration | $ 101,964,000 | ||||||||||
Cash payment to acquire business | 94,356,000 | ||||||||||
Decrease in acquired accounts receivable | 4,790,000 | $ 4,790,000 | |||||||||
Estimated contingent consideration | $ 1,500,000 | ||||||||||
Estimated fair value of assets acquired | 141,903,000 | 141,903,000 | |||||||||
Liabilities assumed | 38,559,000 | 38,559,000 | |||||||||
Intangible assets | 74,300,000 | 74,300,000 | |||||||||
Goodwill | $ 27,084,000 | $ 27,084,000 | |||||||||
Business combination, effective date of acquisition | Feb. 01, 2021 | ||||||||||
Business combination, percentage of ownership stake acquired | 75% | 75% | 75% | 75% | |||||||
Contingent consideration | $ 1,500,000 | ||||||||||
Working capital adjustment and customer deposits | 5,600,000 | ||||||||||
Issue of common stock value to acquire business | $ 6,108,000 | ||||||||||
Sale of stock, price per share | $ / shares | $ 21.34 | $ 21.34 | |||||||||
Business combination, value of shares issuance | $ 7,600,000 | $ 7,600,000 | |||||||||
Percentage of holder of redeemable non-controlling interest restricted from selling shares from date of acquisition | 25% | ||||||||||
Period of holder of redeemable non-controlling interest restricted from selling shares from date of acquisition | 3 years | ||||||||||
Percentage of discount in sale of stock price per share for lack of marketability | 20% | ||||||||||
Estimated fair value of redeemable non-controlling interest | $ 28,464,000 | $ 28,464,000 | |||||||||
Fair value of acquisition including non-controlling interest | $ 130,400,000 | 130,400,000 | |||||||||
Percentage of estimated fair value of entity at acquisition date to calculate fair value of redeemable on controlling interest | 25% | ||||||||||
Percentage of estimated discount for lack of sellers voting control in new entity | 5% | ||||||||||
Percentage of estimated discount for lack of sellers of marketability of minority stake | 10% | ||||||||||
Number of manufacturing location | Location | 3 | ||||||||||
ECO [Member] | Southeast Segment [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Estimated amount of goodwill deductible for tax purposes | $ 27,100,000 | 27,100,000 | |||||||||
ECO [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business combination, acquisition related costs | 1,700,000 | $ 1,000,000 | $ 700,000 | ||||||||
ECO [Member] | Common Stock [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Issue of common stock value to acquire business | $ 6,100,000 | ||||||||||
Business combination, number of shares issuance | shares | 357,797 | ||||||||||
ECO [Member] | 2018 Senior Notes due 2026 [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate principal amount issuance | $ 60,000,000 | $ 60,000,000 | |||||||||
Accrued Interest rate | 6.75% | ||||||||||
Percentage of principal amount issued | 105.50% | 105.50% | |||||||||
Debt instrument premium | $ 3,300,000 | $ 3,300,000 | |||||||||
ECO [Member] | Cash On Hand [Member] | 2018 Senior Notes due 2026 [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash payment to acquire business | $ 31,100,000 |
Acquisitions - Schedule of Fair
Acquisitions - Schedule of Fair Value of Assets and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Oct. 25, 2021 | Feb. 01, 2021 | Jul. 02, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 372,652 | $ 364,598 | $ 364,598 | ||
ECO [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | $ 4,790 | ||||
Inventories | 7,044 | ||||
Contract assets, net | 4,189 | ||||
Prepaid expenses and other assets | 947 | ||||
Property and equipment | 23,818 | ||||
Operating lease right-of-use asset | 26,815 | ||||
Intangible assets | 74,300 | ||||
Total assets acquired | 141,903 | ||||
Accounts payable | (6,925) | ||||
Accrued and other liabilities, including customer deposits | (4,819) | ||||
Operating lease liability | (26,815) | ||||
Total liabilities assumed | (38,559) | ||||
Net assets acquired | 103,344 | ||||
Redeemable non-controlling interest | (28,464) | ||||
Net assets acquired, net of redeemable non-controlling interest | 74,880 | ||||
Goodwill | 27,084 | ||||
Fair value of consideration transferred | 101,964 | ||||
Cash | 94,356 | ||||
PGTI common stock | 6,108 | ||||
Contingent consideration | 1,500 | ||||
Fair value of consideration transferred | 101,964 | ||||
ECO [Member] | Previously Reported [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | 5,031 | ||||
Inventories | 7,728 | ||||
Contract assets, net | 4,312 | ||||
Prepaid expenses and other assets | 1,706 | ||||
Property and equipment | 24,009 | ||||
Operating lease right-of-use asset | 27,864 | ||||
Intangible assets | 72,700 | ||||
Total assets acquired | 143,350 | ||||
Accounts payable | (6,809) | ||||
Accrued and other liabilities, including customer deposits | (4,215) | ||||
Operating lease liability | (27,864) | ||||
Total liabilities assumed | (38,888) | ||||
Net assets acquired | 104,462 | ||||
Redeemable non-controlling interest | (34,084) | ||||
Net assets acquired, net of redeemable non-controlling interest | 70,378 | ||||
Goodwill | 30,051 | ||||
Fair value of consideration transferred | 100,429 | ||||
Cash | 94,321 | ||||
PGTI common stock | 6,108 | ||||
Fair value of consideration transferred | 100,429 | ||||
ECO [Member] | Adjustments to Allocation [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | (241) | ||||
Inventories | (684) | ||||
Contract assets, net | (123) | ||||
Prepaid expenses and other assets | (759) | ||||
Property and equipment | (191) | ||||
Operating lease right-of-use asset | (1,049) | ||||
Intangible assets | 1,600 | ||||
Total assets acquired | (1,447) | ||||
Accounts payable | (116) | ||||
Accrued and other liabilities, including customer deposits | (604) | ||||
Operating lease liability | 1,049 | ||||
Total liabilities assumed | 329 | ||||
Net assets acquired | (1,118) | ||||
Redeemable non-controlling interest | 5,620 | ||||
Net assets acquired, net of redeemable non-controlling interest | 4,502 | ||||
Goodwill | (2,967) | ||||
Fair value of consideration transferred | 1,535 | ||||
Cash | 35 | ||||
Contingent consideration | 1,500 | ||||
Fair value of consideration transferred | $ 1,535 | ||||
Anlin Windows & Doors [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | $ 10,803 | ||||
Inventories | 7,306 | ||||
Contract assets, net | 7,027 | ||||
Prepaid expenses and other assets | 672 | ||||
Property and equipment | 24,309 | ||||
Operating lease right-of-use asset | 3,464 | ||||
Intangible assets | 72,000 | ||||
Total assets acquired | 125,581 | ||||
Accounts payable | (4,582) | ||||
Accrued and other liabilities | (7,993) | ||||
Operating lease liability | (3,464) | ||||
Total liabilities assumed | (16,039) | ||||
Net assets acquired | 109,542 | ||||
Goodwill | 12,150 | 12,200 | |||
Fair value of consideration transferred | 121,692 | ||||
Cash | 114,982 | $ 800 | |||
Contingent consideration | 6,710 | ||||
Fair value of consideration transferred | 121,692 | ||||
Anlin Windows & Doors [Member] | Previously Reported [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | 10,803 | ||||
Inventories | 7,633 | ||||
Contract assets, net | 7,027 | ||||
Prepaid expenses and other assets | 1,626 | ||||
Property and equipment | 22,800 | ||||
Operating lease right-of-use asset | 3,450 | ||||
Intangible assets | 77,800 | ||||
Total assets acquired | 131,139 | ||||
Accounts payable | (5,175) | ||||
Accrued and other liabilities | (7,993) | ||||
Operating lease liability | (3,450) | ||||
Total liabilities assumed | (16,618) | ||||
Net assets acquired | 114,521 | ||||
Goodwill | 5,596 | ||||
Fair value of consideration transferred | 120,117 | ||||
Cash | 114,196 | ||||
Contingent consideration | 5,921 | ||||
Fair value of consideration transferred | 120,117 | ||||
Anlin Windows & Doors [Member] | Adjustments to Allocation [Member] | |||||
Business Acquisition [Line Items] | |||||
Inventories | (327) | ||||
Prepaid expenses and other assets | (954) | ||||
Property and equipment | 1,509 | ||||
Operating lease right-of-use asset | 14 | ||||
Intangible assets | (5,800) | ||||
Total assets acquired | (5,558) | ||||
Accounts payable | 593 | ||||
Operating lease liability | (14) | ||||
Total liabilities assumed | 579 | ||||
Net assets acquired | (4,979) | ||||
Goodwill | 6,554 | ||||
Fair value of consideration transferred | 1,575 | ||||
Cash | 786 | ||||
Contingent consideration | 789 | ||||
Fair value of consideration transferred | $ 1,575 |
Acquisitions - Schedule for Val
Acquisitions - Schedule for Valuation of Identifiable Intangible Assets Acquired and Estimate of Useful Lives (Detail) - USD ($) $ in Thousands | Oct. 25, 2021 | Feb. 01, 2021 |
Anlin Windows & Doors [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | $ 72,000 | |
Anlin Windows & Doors [Member] | Previously Reported [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | 77,800 | |
Anlin Windows & Doors [Member] | Adjustments to Allocation [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | (5,800) | |
Anlin Windows & Doors [Member] | Trade Name [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | 31,700 | |
Anlin Windows & Doors [Member] | Trade Name [Member] | Previously Reported [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | 35,400 | |
Anlin Windows & Doors [Member] | Trade Name [Member] | Adjustments to Allocation [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | (3,700) | |
Anlin Windows & Doors [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | $ 37,800 | |
Useful Life (in years) | 15 years | |
Anlin Windows & Doors [Member] | Customer Relationships [Member] | Previously Reported [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | $ 42,100 | |
Anlin Windows & Doors [Member] | Customer Relationships [Member] | Adjustments to Allocation [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | (4,300) | |
Anlin Windows & Doors [Member] | Customer-related backlog [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | $ 2,200 | |
Anlin Windows & Doors [Member] | Customer-related backlog [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Useful Life (in years) | 1 year | |
Anlin Windows & Doors [Member] | Customer-related backlog [Member] | Adjustments to Allocation [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | $ 2,200 | |
Anlin Windows & Doors [Member] | Developed Technology [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | $ 300 | |
Useful Life (in years) | 9 years | |
Anlin Windows & Doors [Member] | Developed Technology [Member] | Previously Reported [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | $ 300 | |
ECO [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | $ 74,300 | |
ECO [Member] | Previously Reported [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | 72,700 | |
ECO [Member] | Adjustments to Allocation [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | 1,600 | |
ECO [Member] | Trade Name [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | 34,900 | |
ECO [Member] | Trade Name [Member] | Previously Reported [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | 36,000 | |
ECO [Member] | Trade Name [Member] | Adjustments to Allocation [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | (1,100) | |
ECO [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | $ 39,400 | |
ECO [Member] | Customer Relationships [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Useful Life (in years) | 5 years | |
ECO [Member] | Customer Relationships [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Useful Life (in years) | 15 years | |
ECO [Member] | Customer Relationships [Member] | Previously Reported [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | $ 36,700 | |
ECO [Member] | Customer Relationships [Member] | Adjustments to Allocation [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary/Final Valuation Amount | $ 2,700 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Proforma Results (Detail) - Anlin Windows and Doors [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 03, 2021 | Jul. 03, 2021 | |
Business Acquisition [Line Items] | ||
Net sales | $ 314,270 | $ 609,782 |
Net income attributable to common shareholders | $ 8,992 | $ 21,737 |
Net income per common share attributable to common shareholders: | ||
Basic | $ 0.15 | $ 0.37 |
Diluted | $ 0.15 | $ 0.36 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Earnings Per Share [Abstract] | ||||
Dilutive securities excluded from the calculation of weighted average shares outstanding | 0 | 0 | 0 | 0 |
Net Income Per Common Share - C
Net Income Per Common Share - Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 36,465 | $ 10,713 | $ 60,291 | $ 23,508 |
Less: Net income attributable to RNCI | (304) | (568) | (961) | (979) |
Net income attributable to the Company | 36,161 | 10,145 | 59,330 | 22,529 |
Decrease (increase) in redemption value of RNCI | 351 | (3,563) | (1,785) | (3,563) |
Net income attributable to common shareholders | $ 36,512 | $ 6,582 | $ 57,545 | $ 18,966 |
Weighted-average number of common shares outstanding - Basic | 59,928 | 59,551 | 59,880 | 59,418 |
Add: Dilutive shares from equity plans | 329 | 500 | 361 | 559 |
Weighted-average number of common shares outstanding - Diluted | 60,257 | 60,051 | 60,241 | 59,977 |
Net income per common share attributable to common shareholders: | ||||
Basic | $ 0.61 | $ 0.11 | $ 0.96 | $ 0.32 |
Diluted | $ 0.61 | $ 0.11 | $ 0.96 | $ 0.32 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill and Intangible Assets Net (Detail) - USD ($) $ in Thousands | 6 Months Ended | |||
Oct. 25, 2021 | Jul. 02, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Less: Accumulated amortization | $ (152,615) | $ (138,691) | ||
Subtotal | 166,360 | 182,384 | ||
Other intangible assets, net | 374,801 | $ 394,525 | 394,525 | |
Goodwill at January 1, 2022 | 364,598 | |||
Goodwill at April 2, 2022 | 372,652 | |||
Anlin [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Increase (decrease) in goodwill | 789 | |||
Final net working capital payment | 786 | |||
Estimated contingent consideration | $ 6,710 | |||
Net decrease in other allocation changes | (821) | |||
Goodwill at April 2, 2022 | $ 12,150 | 12,200 | ||
Eco Enterprises, LLC [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Estimated contingent consideration | 1,500 | |||
Trade Name [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Intangible assets | 208,441 | $ 212,141 | 212,141 | |
Trade Name [Member] | Anlin [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Decrease in trade names | (3,700) | |||
Customer Relationships and Customer-related Assets [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Intangible assets | 286,947 | 289,047 | ||
Customer Relationships and Customer-related Assets [Member] | Anlin [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Increase (decrease) in goodwill | $ 4,300 | |||
Customer Relationships and Customer-related Assets [Member] | Minimum [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Initial Useful Life (in years) | 1 year | |||
Customer Relationships and Customer-related Assets [Member] | Maximum [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Initial Useful Life (in years) | 15 years | |||
Customer-related backlog asset [Member] | Anlin [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Increase (decrease) in goodwill | $ (2,200) | |||
Trade Name [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 22,200 | 22,200 | ||
Initial Useful Life (in years) | 15 years | |||
Trade Name [Member] | Anlin [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Increase (decrease) in goodwill | $ 3,700 | |||
Developed Technology [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 5,900 | 5,900 | ||
Developed Technology [Member] | Minimum [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Initial Useful Life (in years) | 6 years | |||
Developed Technology [Member] | Maximum [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Initial Useful Life (in years) | 10 years | |||
Noncompete Agreements [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 3,338 | 3,338 | ||
Noncompete Agreements [Member] | Minimum [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Initial Useful Life (in years) | 2 years | |||
Noncompete Agreements [Member] | Maximum [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Initial Useful Life (in years) | 5 years | |||
Software License [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 590 | $ 590 | ||
Initial Useful Life (in years) | 2 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Estimated Amortization for Future Fiscal Year (Detail) - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 02, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2022 | $ 10,963 | |
2023 | 16,906 | |
2024 | 20,520 | |
2025 | 20,474 | |
2026 | 20,299 | |
Thereafter | 77,198 | |
Subtotal | $ 166,360 | $ 182,384 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Jan. 01, 2022 | Jan. 02, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | ||||||
Amortization of intangible assets | $ 5,900 | $ 5,100 | $ 13,900 | $ 9,900 | ||
Goodwill | 372,652 | 372,652 | $ 364,598 | $ 364,598 | ||
Customer-related Backlog [Member] | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Amortization of intangible assets | 2,200 | |||||
Southeast Segment [Member] | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill | 228,300 | 228,300 | 226,800 | |||
Western Segment [Member] | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 144,400 | $ 144,400 | $ 137,800 |
Long Term Debt - Schedule of Lo
Long Term Debt - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 01, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 635,000 | $ 635,000 |
Deferred financing costs | (8,734) | (9,345) |
Long-term debt, net | 626,266 | 625,655 |
2016 Credit Agreement Due 2024, Maturing in October 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 60,000 | 60,000 |
2021 Senior Notes due 2029, Maturing in October 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 575,000 | $ 575,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | ||||||
Oct. 25, 2021 | Sep. 24, 2021 | Oct. 31, 2019 | Mar. 16, 2018 | Feb. 16, 2016 | Jul. 02, 2022 | Jan. 01, 2022 | |
Line of Credit Facility [Line Items] | |||||||
Face value of debt outstanding | $ 635,000,000 | $ 635,000,000 | |||||
Letters of credit outstanding | 5,700,000 | ||||||
2016 Credit Agreement Due 2024 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Face value of debt outstanding | 60,000,000 | $ 60,000,000 | |||||
Credit agreement date | Feb. 16, 2016 | ||||||
Prepayment of term loan | $ 54,000,000 | ||||||
Senior Secured Credit Facilities [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Amount available under credit facility | $ 310,000,000 | ||||||
Term Loan Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Amount available under credit facility | $ 270,000,000 | ||||||
Maturity term of credit agreement | 6 years | ||||||
Credit facility amortization percentage | 1% | ||||||
Weighted average interest rate | 3.67% | 2.10% | |||||
Revolving Credit Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Amount available under credit facility | $ 40,000,000 | ||||||
Credit available under the credit facility | $ 74,300,000 | ||||||
Revolving Credit Facility [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility amortization percentage | 0.35% | ||||||
Revolving Credit Facility [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility amortization percentage | 0.25% | ||||||
Second Amendment [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate terms | The Second Amendment, among other things, decreased the applicable interest rate margins for the Initial Term Loans (as defined in the 2016 Credit Agreement due 2024) from (i) 3.75% to 2.50%, in the case of the Base Rate Loans (as defined in the 2016 Credit Agreement due 2024), and (ii) 4.75% to 3.50%, in the case of the Eurodollar Loans (as defined in the 2016 Credit Agreement due 2024). | ||||||
Second Amendment [Member] | Base Rate [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on LIBOR | 2.50% | 3.75% | |||||
Second Amendment [Member] | Euro Dollar [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on LIBOR | 3.50% | 4.75% | |||||
Third Amendment [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Face value of debt outstanding | $ 64,000,000 | ||||||
Term of credit facility | 3 years | ||||||
Revolving Credit Facility due 2024 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Face value of debt outstanding | $ 40,000,000 | ||||||
Term of credit facility | 5 years | ||||||
Revolving Credit Facility due 2024 [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Face value of debt outstanding | $ 80,000,000 | ||||||
Fourth Amendment [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Term of credit facility | 3 years | ||||||
Maximum borrowing available during period | $ 60,000,000 | ||||||
2018 Senior Notes due 2026 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, face amount | 425,000,000 | ||||||
Repayments of debt | $ 425,000,000 | ||||||
Repurchase notes percentage of aggregate principal amount | 5.063% | ||||||
Prepayment of term loan | $ 21,500,000 | ||||||
2021 Senior Notes Due 2029 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Long-term debt | $ 575,000,000 | ||||||
Accrued Interest rate | 4.375% | ||||||
Percentage of principal amount issued | 100% | ||||||
Debt instrument, maturity date | Oct. 01, 2029 | ||||||
Financing Costs | $ 8,700,000 | ||||||
Percentage of lender spread on principal amount | 1.25% | ||||||
Financing costs lender spread | $ 7,200,000 | ||||||
Financing costs other | $ 1,500,000 | ||||||
Face value of debt outstanding | $ 575,000,000 | ||||||
Repurchase notes percentage of aggregate principal amount | 101% | ||||||
2021 Senior Notes Due 2029 [Member] | Prior to October 1, 2024 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis points, floor | 50% | ||||||
2021 Senior Notes Due 2029 [Member] | On or After August 1, 2024 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, redemption percentage | 102.188% | ||||||
2021 Senior Notes Due 2029 [Member] | On or After August 2025 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, redemption percentage | 101.094% | ||||||
2021 Senior Notes Due 2029 [Member] | On or After August 1, 2026 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, redemption percentage | 100% |
Long-Term Debt - Activity Relat
Long-Term Debt - Activity Relating to Deferred Financing Costs Composed of Third-Party Fees and Costs, and Lender Fees (Detail) $ in Thousands | 6 Months Ended |
Jul. 02, 2022 USD ($) | |
Debt Instrument [Line Items] | |
At beginning of year | $ 9,345 |
Less: Amortization expense | (611) |
At end of period | $ 8,734 |
Long-Term Debt - Estimated Amor
Long-Term Debt - Estimated Amortization Expense Relating to Deferred Financing Costs (Detail) - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 01, 2022 |
Debt Disclosure [Abstract] | ||
Remainder of 2022 | $ 622 | |
2023 | 1,282 | |
2024 | 1,282 | |
2025 | 1,083 | |
2026 | 1,114 | |
Thereafter | 3,351 | |
Total | $ 8,734 | $ 9,345 |
Long-Term Debt - Contractual Fu
Long-Term Debt - Contractual Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 01, 2022 |
Debt Disclosure [Abstract] | ||
Remainder of 2022 | $ 0 | |
2023 | 0 | |
2024 | 60,000 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 575,000 | |
Total | $ 635,000 | $ 635,000 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Lessee Lease Description [Line Items] | ||||
Operating lease existence of option to extend | true | |||
Operating lease extension period | 5 years | |||
Operating lease existence of option to terminate | true | |||
Operating lease not yet commenced description | no additional operating or finance leases that have not yet commenced | |||
Finance lease not yet commenced description | no additional operating or finance leases that have not yet commenced | |||
Lease expenses | $ 7.5 | $ 6.1 | $ 14.7 | $ 11.2 |
Operating lease expire description | Our operating leases expire at various times through 2032. | |||
Cost of Sales [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Lease expenses | $ 3.8 | $ 4.2 | $ 7.4 | $ 6.4 |
Minimum [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease term | 1 year | 1 year | ||
Maximum [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease term | 10 years | 10 years | ||
Operating lease termination period | 1 year |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 5,001 | $ 3,898 | $ 9,840 | $ 6,777 |
Short-term lease cost | 2,515 | 2,216 | 4,820 | 4,416 |
Total lease cost | $ 7,516 | $ 6,114 | $ 14,660 | $ 11,193 |
Leases - Other Information Rela
Leases - Other Information Relating to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows relating to operating leases | $ (4,788) | $ (3,304) | $ (9,317) | $ (6,068) |
Right-of-use assets obtained in exchange for lease obligations: | ||||
Operating leases | $ 10,938 | $ 17,415 | $ 12,262 | $ 46,905 |
Weighted average remaining lease term in years | ||||
Operating leases | 6 years 6 months 21 days | 6 years 8 months 26 days | 6 years 6 months 21 days | 6 years 8 months 26 days |
Weighted average discount rate | ||||
Operating leases | 5.40% | 5.50% | 5.40% | 5.50% |
Leases - Future Maturities unde
Leases - Future Maturities under Operating Leases (Detail) - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 01, 2022 |
Leases [Abstract] | ||
Remainder of 2022 | $ 9,775 | $ 17,929 |
2023 | 19,367 | 17,577 |
2024 | 18,797 | 16,990 |
2025 | 17,697 | 15,987 |
2026 | 16,584 | 15,025 |
2027 | 15,763 | 14,358 |
Thereafter | 22,943 | 17,891 |
Total future minimum lease payments | 120,926 | 115,757 |
Less: Imputed interest | (18,529) | (18,674) |
Operating lease liability - total | 102,397 | 97,083 |
Current portion of operating lease liability | 14,883 | 13,180 |
Operating lease liability, less current portion | $ 87,514 | $ 83,903 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Sep. 30, 2021 | Jul. 02, 2022 | Apr. 02, 2022 | Jul. 03, 2021 | Apr. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Feb. 01, 2021 | |
Income Taxes [Line Items] | ||||||||
Income tax expense | $ 12,005,000 | $ 2,726,000 | $ 19,810,000 | $ 6,670,000 | ||||
Effective tax rates | (24.80%) | 20.30% | 24.70% | 22.10% | ||||
Pre-tax earnings | $ 48,470,000 | $ 13,439,000 | $ 80,101,000 | $ 30,178,000 | ||||
Income tax benefit net of federal tax effect | 462,000 | |||||||
Income tax expense benefit excess tax received by state | 584,000 | |||||||
Excess tax benefits relating to exercises of stock options and lapses of restrictions on stock awards | $ 40,000 | $ 605,000 | $ 96,000 | $ 700,000 | ||||
Effective tax rates, excluding discrete item | 25.60% | 24.10% | 25.40% | 24.10% | ||||
Effective tax rates, statutory federal and state rate | 25.70% | 24.20% | ||||||
Payment of estimated income taxes | $ 0 | $ 0 | $ 9,600,000 | $ 10,900,000 | ||||
Corporate income tax rate | 4.458% | 3.535% | 5.50% | |||||
Federal [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Payment of estimated income taxes | $ 8,800,000 | 7,600,000 | ||||||
ECO [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Percentage of ownership stake | 75% | 75% | 75% | |||||
Pre-tax earnings | $ 237,000 | $ 426,000 | $ 742,000 | $ 731,000 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jul. 02, 2022 | Jul. 03, 2021 | Jan. 01, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value of assets, level 2 to level 3 transfers | $ 0 | $ 0 | |
Long-term debt | 635,000,000 | $ 635,000,000 | |
2016 Credit Agreement Due 2024 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value of current long-term debt | 60,000,000 | ||
Long-term debt | 60,000,000 | 60,000,000 | |
2021 Senior Notes [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value of current long-term debt | 452,100,000 | 578,200,000 | |
Long-term debt | $ 575,000,000 | $ 575,000,000 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 01, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | $ (3,186) | $ 9,428 |
Aluminum Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | (5,173) | 4,829 |
MTP Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | 1,987 | 4,599 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | (3,186) | 9,428 |
Significant Other Observable Inputs (Level 2) [Member] | Aluminum Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | (5,173) | 4,829 |
Significant Other Observable Inputs (Level 2) [Member] | MTP Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | $ 1,987 | $ 4,599 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) $ in Thousands, lb in Millions | 6 Months Ended | |
Jul. 02, 2022 USD ($) Forwardcontract lb $ / lb | Jan. 01, 2022 USD ($) | |
Derivative [Line Items] | ||
Derivative liability | $ 5,325 | |
Derivative assets | 2,139 | $ 9,428 |
Fair Value of Derivative | $ 3,200 | |
MTP Contracts [Member] | ||
Derivative [Line Items] | ||
Typical order quantities payment terms net | 30 days | |
Derivative assets | $ 2,000 | |
Number of outstanding forward contracts | Forwardcontract | 4 | |
Derivative, amount of hedged item | lb | 10.5 | |
Derivative average price | $ / lb | 0.11 | |
Maturity period of contract, minimum | 1 month | |
Maturity period of contract, maximum | 6 months | |
Aluminum Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative liability | $ 5,200 | |
Number of outstanding forward contracts | Forwardcontract | 16 | |
Derivative, amount of hedged item | lb | 24.3 | |
Derivative average price | $ / lb | 1.32 | |
Maturity period of contract, minimum | 1 month | |
Maturity period of contract, maximum | 6 months | |
Aluminum Contracts and MTP Contracts [Member] | ||
Derivative [Line Items] | ||
Accumulated other comprehensive income | $ 2,400 | $ 7,000 |
Derivatives - Summary of Fair V
Derivatives - Summary of Fair Value of Hedges (Detail) - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 01, 2022 |
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | $ 2,139 | $ 9,428 |
Total derivative instruments Liabilities | (5,325) | |
Aluminum Contracts [Member] | Other Current Assets [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | 152 | 4,829 |
Aluminum Contracts [Member] | Accrued Liabilities [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Liabilities | (5,325) | |
MTP Contracts [Member] | Other Current Assets [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | $ 1,987 | $ 4,599 |
Derivatives - Gains (Losses) on
Derivatives - Gains (Losses) on Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives | $ (12,929) | $ 9,073 | $ (6,854) | $ 17,361 |
Aluminum Contracts [Member] | Inventory Classified as Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives | (13,022) | 5,108 | (7,415) | 9,191 |
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income | 1,210 | 2,764 | 2,588 | 4,152 |
MTP Contracts [Member] | Inventory Classified as Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives | 93 | 3,965 | 561 | 8,170 |
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income | $ 2,488 | $ 1,369 | $ 3,172 | $ 1,756 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Apr. 02, 2022 | Jan. 01, 2022 | Apr. 03, 2021 | Jan. 02, 2021 | |
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | $ 580,805 | $ 580,805 | $ 529,097 | |||||
Increase (decrease) in fair value of derivatives | (12,929) | $ 9,073 | (6,854) | $ 17,361 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (3,698) | (4,133) | (5,760) | (5,908) | ||||
Tax effect | 4,270 | (1,225) | 3,240 | (2,843) | ||||
Other comprehensive income (loss), net of tax | (12,357) | 3,715 | (9,374) | 8,610 | ||||
Ending Balance | 580,805 | 580,805 | 529,097 | |||||
Accumulated Other Comprehensive Income [Member] | ||||||||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | (2,368) | 11,330 | (2,368) | 11,330 | $ 9,989 | 7,006 | $ 7,615 | $ 2,720 |
Other comprehensive income (loss), net of tax | (12,357) | 3,715 | (9,374) | 8,610 | ||||
Ending Balance | (2,368) | 11,330 | (2,368) | 11,330 | 9,989 | 7,006 | 7,615 | 2,720 |
Aluminum Contracts [Member] | ||||||||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Increase (decrease) in fair value of derivatives | (13,022) | 5,108 | (7,415) | 9,191 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (1,210) | (2,764) | (2,588) | (4,152) | ||||
Tax effect | 3,602 | (581) | 2,547 | (1,251) | ||||
Other comprehensive income (loss), net of tax | (10,630) | 1,763 | (7,456) | 3,788 | ||||
Aluminum Contracts [Member] | Accumulated Other Comprehensive Income [Member] | ||||||||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | (3,846) | 6,191 | (3,846) | 6,191 | 6,784 | 3,610 | 4,428 | 2,403 |
Ending Balance | (3,846) | 6,191 | (3,846) | 6,191 | 6,784 | 3,610 | 4,428 | 2,403 |
MTP Contracts [Member] | ||||||||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Increase (decrease) in fair value of derivatives | 93 | 3,965 | 561 | 8,170 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (2,488) | (1,369) | (3,172) | (1,756) | ||||
Tax effect | 668 | (644) | 693 | (1,592) | ||||
Other comprehensive income (loss), net of tax | (1,727) | 1,952 | (1,918) | 4,822 | ||||
MTP Contracts [Member] | Accumulated Other Comprehensive Income [Member] | ||||||||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | 1,478 | 5,139 | 1,478 | 5,139 | 3,205 | 3,396 | 3,187 | 317 |
Ending Balance | $ 1,478 | $ 5,139 | $ 1,478 | $ 5,139 | $ 3,205 | $ 3,396 | $ 3,187 | $ 317 |
Segments - Additional Informati
Segments - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 02, 2022 USD ($) | Jul. 03, 2021 USD ($) | Jul. 02, 2022 USD ($) Segment | Jul. 03, 2021 USD ($) | Jan. 02, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | Segment | 2 | |||||
Depreciation expense | $ 17,064 | $ 14,358 | ||||
Amortization expense | 13,924 | 9,890 | ||||
Assets | $ 1,566,365 | 1,566,365 | $ 1,460,610 | |||
Southeast Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Depreciation expense | 7,000 | $ 6,800 | 13,900 | 12,600 | ||
Amortization expense | 2,800 | 2,800 | 5,500 | 5,200 | ||
Assets | 979,800 | 979,800 | $ 911,300 | |||
Western Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Depreciation expense | 1,500 | 800 | 3,100 | 1,700 | ||
Amortization expense | 3,100 | $ 2,400 | 8,400 | $ 4,700 | ||
Assets | $ 586,600 | $ 586,600 | $ 549,300 |
Segments - Summary of Financial
Segments - Summary of Financial Data Attributable to Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Net sales: | ||||
Total net sales | $ 406,521 | $ 285,500 | $ 765,183 | $ 556,592 |
Income from operations: | ||||
Total income from operations | 55,625 | 21,264 | 94,336 | 45,460 |
Interest expense, net | 7,155 | 7,825 | 14,235 | 15,282 |
Income before income taxes | 48,470 | 13,439 | 80,101 | 30,178 |
Southeast Segment [Member] | ||||
Net sales: | ||||
Total net sales | 307,492 | 242,449 | 579,259 | 476,087 |
Income from operations: | ||||
Total income from operations | 41,014 | 15,521 | 66,570 | 34,264 |
Western Segment [Member] | ||||
Net sales: | ||||
Total net sales | 99,029 | 43,051 | 185,924 | 80,505 |
Income from operations: | ||||
Total income from operations | $ 14,611 | $ 5,743 | $ 27,766 | $ 11,196 |
Reedemable Non-Controlling In_3
Reedemable Non-Controlling Interest - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 01, 2021 | Jul. 02, 2022 | Jan. 02, 2022 | Jan. 01, 2022 | Jul. 03, 2021 |
Redeemable Noncontrolling Interest [Line Items] | |||||
Redeemable noncontrolling interest value | $ 51,400 | ||||
Accretion value of redeemable non-controlling interest | $ 39,609 | $ 36,863 | $ 36,863 | $ 33,006 | |
Eco Enterprises, LLC [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 75% | ||||
Sellers equity interest put or call right exercise purchase price description | Upon exercise of the put or call right, the purchase price is calculated based on a future agreed performance metric | ||||
ECO [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Sellers equity interest put right exercise period following call right exercise period | 15 days |
Reedemable Non-Controlling In_4
Reedemable Non-Controlling Interest - Summary of Changes in Redeemable Non-Controlling Interest (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Noncontrolling Interest [Abstract] | ||||
Balance at beginning of period | $ 36,863 | |||
Redeemable non-controlling interest in Eco at initially estimated fair value | $ 28,464 | |||
Net income portion attributable to redeemable non-controlling interest | $ 304 | $ 568 | 961 | 979 |
Change in value of redeemable non-controlling interest | (351) | 3,563 | 1,785 | 3,563 |
Balance at end of period | $ 39,609 | $ 33,006 | $ 39,609 | $ 33,006 |