Cover Page
Cover Page - shares | 8 Months Ended | |
Sep. 05, 2020 | Oct. 12, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 5, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33987 | |
Entity Registrant Name | HERITAGE-CRYSTAL CLEAN, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0351454 | |
Entity Address, Address Line One | 2175 Point Boulevard | |
Entity Address, Address Line Two | Suite 375 | |
Entity Address, City or Town | Elgin | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60123 | |
City Area Code | 847 | |
Local Phone Number | 836-5670 | |
Entity Current Reporting Status | Yes | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | HCCI | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,993,021 | |
Entity Central Index Key | 0001403431 | |
Current Fiscal Year End Date | --01-02 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 05, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 52,650 | $ 60,694 |
Accounts receivable - net | 48,877 | 55,586 |
Inventory - net | 24,835 | 29,373 |
Other current assets | 8,475 | 7,104 |
Total current assets | 134,837 | 152,757 |
Property, plant and equipment - net | 157,473 | 154,911 |
Right of use assets | 82,322 | 89,525 |
Equipment at customers - net | 23,460 | 24,232 |
Software and intangible assets - net | 18,002 | 16,892 |
Goodwill | 37,513 | 32,997 |
Total assets | 453,607 | 471,314 |
Current liabilities: | ||
Accounts payable | 26,928 | 38,058 |
Current portion of lease liabilities | 21,563 | 20,407 |
Contract liabilities - net | 2,268 | 2,252 |
Accrued salaries, wages, and benefits | 6,279 | 6,771 |
Taxes payable | 9,162 | 6,538 |
Other current liabilities | 5,782 | 16,418 |
Total current liabilities | 71,982 | 90,444 |
Lease liabilities, net of current portion | 61,582 | 68,734 |
Long-term debt, less current maturities | 29,557 | 29,348 |
Deferred income taxes | 19,645 | 17,157 |
Total liabilities | 182,766 | 205,683 |
STOCKHOLDERS' EQUITY: | ||
Common stock - 26,000,000 shares authorized at $0.01 par value, 23,295,600 and 23,191,498 shares issued and outstanding at September 5, 2020 and December 28, 2019, respectively | 233 | 232 |
Additional paid-in capital | 199,835 | 200,583 |
Retained earnings | 70,773 | 64,182 |
Total Heritage-Crystal Clean, Inc. stockholders' equity | 270,841 | 264,997 |
Noncontrolling interest | 0 | 634 |
Total equity | 270,841 | 265,631 |
Total liabilities and stockholders' equity | $ 453,607 | $ 471,314 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 05, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 26,000,000 | 26,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 23,295,600 | 23,191,498 |
Common stock, shares outstanding (in shares) | 23,295,600 | 23,191,498 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income/(Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2020 | Sep. 07, 2019 | Sep. 05, 2020 | Sep. 07, 2019 | |
Revenues | ||||
Revenues | $ 81,779 | $ 99,172 | $ 257,368 | $ 290,646 |
Rental income | 5,355 | 5,668 | 16,548 | 14,967 |
Total revenues | 87,134 | 104,840 | 273,916 | 305,613 |
Operating expenses | ||||
Operating costs | 67,125 | 80,116 | 222,669 | 241,449 |
Selling, general, and administrative expenses | 9,410 | 11,241 | 32,066 | 34,679 |
Depreciation and amortization | 5,635 | 3,980 | 16,358 | 12,176 |
Other (income) expense - net | (441) | 1,020 | (6,967) | 2,477 |
Operating income | 5,405 | 8,483 | 9,790 | 14,832 |
Interest expense – net | 284 | 181 | 842 | 629 |
Income before income taxes | 5,121 | 8,302 | 8,948 | 14,203 |
Provision for income taxes | 1,163 | 2,246 | 2,357 | 3,411 |
Net income | 3,958 | 6,056 | 6,591 | 10,792 |
Income attributable to noncontrolling interest | 0 | 86 | 0 | 278 |
Net income attributable to Heritage-Crystal Clean, Inc. common stockholders | $ 3,958 | $ 5,970 | $ 6,591 | $ 10,514 |
Net (loss) income per share: basic (in dollars per share) | $ 0.17 | $ 0.26 | $ 0.28 | $ 0.45 |
Net (loss) income per share: diluted (in dollars per share) | $ 0.17 | $ 0.25 | $ 0.28 | $ 0.45 |
Number of weighted average shares outstanding: basic (in shares) | 23,294 | 23,185 | 23,277 | 23,146 |
Number of weighted average shares outstanding: diluted (in shares) | 23,479 | 23,421 | 23,456 | 23,384 |
Service revenues | ||||
Revenues | ||||
Revenues | $ 53,257 | $ 57,208 | $ 169,262 | $ 171,522 |
Product revenues | ||||
Revenues | ||||
Revenues | $ 28,522 | $ 41,964 | $ 88,106 | $ 119,124 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common | Additional Paid–in Capital | Retained Earnings | Total Heritage-Crystal Clean, Inc. Stockholders' Equity | Non-controlling Interest |
Beginning balance (in shares) at Dec. 29, 2018 | 23,058,584 | |||||
Beginning balance at Dec. 29, 2018 | $ 254,231 | $ 231 | $ 197,533 | $ 55,819 | $ 253,583 | $ 648 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 10,792 | 10,514 | 10,514 | 278 | ||
Distribution | (400) | (400) | ||||
Issuance of common stock – ESPP (in shares) | 14,240 | |||||
Issuance of common stock – ESPP | 348 | 348 | 348 | |||
Exercise of stock options (in shares) | 2,760 | |||||
Exercise of stock options | 20 | 20 | 20 | |||
Share-based compensation (in shares) | 109,983 | |||||
Share-based compensation | 2,743 | $ 1 | 2,742 | 2,743 | ||
Share repurchases to satisfy tax withholding obligations | (1,427) | (1,427) | (1,427) | |||
Ending balance (in shares) at Sep. 07, 2019 | 23,185,567 | |||||
Ending balance at Sep. 07, 2019 | 266,307 | $ 232 | 199,216 | 66,333 | 265,781 | 526 |
Beginning balance (in shares) at Jun. 15, 2019 | 23,180,320 | |||||
Beginning balance at Jun. 15, 2019 | 259,109 | $ 232 | 198,074 | 60,363 | 258,669 | 440 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 6,056 | 5,970 | 5,970 | 86 | ||
Issuance of common stock – ESPP (in shares) | 4,789 | |||||
Issuance of common stock – ESPP | 120 | 120 | 120 | |||
Share-based compensation (in shares) | 458 | |||||
Share-based compensation | 1,022 | 1,022 | 1,022 | |||
Ending balance (in shares) at Sep. 07, 2019 | 23,185,567 | |||||
Ending balance at Sep. 07, 2019 | $ 266,307 | $ 232 | 199,216 | 66,333 | 265,781 | 526 |
Beginning balance (in shares) at Dec. 28, 2019 | 23,191,498 | 23,191,498 | ||||
Beginning balance at Dec. 28, 2019 | $ 265,631 | $ 232 | 200,583 | 64,182 | 264,997 | 634 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 6,591 | 6,591 | 6,591 | |||
Non-controlling interest acquisition | (2,678) | (2,678) | (2,678) | |||
Distribution | (634) | (634) | ||||
Issuance of common stock – ESPP (in shares) | 20,560 | |||||
Issuance of common stock – ESPP | 374 | 374 | 374 | |||
Share-based compensation (in shares) | 83,542 | |||||
Share-based compensation | 2,348 | $ 1 | 2,347 | 2,348 | ||
Share repurchases to satisfy tax withholding obligations | $ (791) | (791) | (791) | |||
Ending balance (in shares) at Sep. 05, 2020 | 23,295,600 | 23,295,600 | ||||
Ending balance at Sep. 05, 2020 | $ 270,841 | $ 233 | 199,835 | 70,773 | 270,841 | 0 |
Beginning balance (in shares) at Jun. 13, 2020 | 23,269,462 | |||||
Beginning balance at Jun. 13, 2020 | 266,040 | $ 233 | 198,992 | 66,815 | 266,040 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,958 | 3,958 | 3,958 | |||
Issuance of common stock – ESPP (in shares) | 7,299 | |||||
Issuance of common stock – ESPP | 117 | 117 | 117 | |||
Share-based compensation (in shares) | 18,839 | |||||
Share-based compensation | $ 726 | 726 | 726 | |||
Ending balance (in shares) at Sep. 05, 2020 | 23,295,600 | 23,295,600 | ||||
Ending balance at Sep. 05, 2020 | $ 270,841 | $ 233 | $ 199,835 | $ 70,773 | $ 270,841 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | 12 Months Ended | ||
Sep. 05, 2020 | Sep. 07, 2019 | Sep. 05, 2020 | Sep. 07, 2019 | Dec. 28, 2019 | |
Cash flows from Operating Activities: | |||||
Net income | $ 3,958 | $ 6,056 | $ 6,591 | $ 10,792 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||
Depreciation and amortization | 5,635 | 3,980 | 16,358 | 12,176 | |
Reversal of provision for class action settlement in excess of payout | (6,502) | 0 | |||
Bad debt provision | 1,210 | 829 | $ 1,486 | ||
Share-based compensation | 2,348 | 2,743 | |||
Deferred taxes | 2,487 | 3,354 | |||
Other, net | (766) | 594 | |||
Changes in operating assets and liabilities: | |||||
Decrease (increase) in accounts receivable | 6,252 | (4,344) | |||
Decrease in inventory | 4,538 | 5,136 | |||
Increase in other current assets | (1,373) | (351) | |||
(Decrease) increase in accounts payable | (9,012) | 2,005 | |||
Increase in accrued liabilities | 686 | 3,404 | |||
Cash provided by operating activities | 22,817 | 36,338 | |||
Cash flows from Investing Activities: | |||||
Capital expenditures | (16,465) | (16,921) | |||
Proceeds from sale of assets | 422 | 0 | |||
Business acquisitions, net of cash acquired | (10,129) | (2,573) | |||
Cash used in investing activities | (26,172) | (19,494) | |||
Cash flows from Financing Activities: | |||||
Proceeds from the exercise of stock options | 0 | 20 | |||
Repayment of principal on finance leases | (300) | (13) | (762) | (13) | |
Share repurchases to satisfy tax withholding obligations | (791) | (1,427) | |||
Proceeds from the issuance of common stock | 374 | 348 | |||
Payments of deferred and contingent consideration | (198) | 0 | |||
Distributions to and acquisition of noncontrolling interest | (3,312) | (400) | |||
Cash used in financing activities | (4,689) | (1,472) | |||
Net (decrease) increase in cash and cash equivalents | (8,044) | 15,372 | |||
Cash and cash equivalents, beginning of period | 60,694 | 43,579 | 43,579 | ||
Cash and cash equivalents, end of period | $ 52,650 | $ 58,951 | 52,650 | 58,951 | $ 60,694 |
Supplemental disclosure of cash flow information: | |||||
Income taxes paid | 286 | 1,205 | |||
Cash paid for interest | 743 | 971 | |||
Supplemental disclosure of non-cash information: | |||||
Payables for construction in progress | $ 447 | $ 904 |
Organization and Nature of Oper
Organization and Nature of Operations | 8 Months Ended |
Sep. 05, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | ORGANIZATION AND NATURE OF OPERATIONS Heritage-Crystal Clean, Inc., a Delaware corporation and its subsidiaries (collectively the “Company”), provide parts cleaning, hazardous and non-hazardous containerized waste, used oil collection, vacuum, antifreeze recycling and field services primarily to small and mid-sized industrial and vehicle maintenance customers. The Company owns and operates a used oil re-refinery where it re-refines used oils and sells high quality base oil for lubricants as well as other re-refinery products. The Company also has multiple locations where it dehydrates used oil. The oil processed at these locations is primarily sold as recycled fuel oil. The Company also operates multiple wastewater treatment plants and antifreeze recycling facilities at which it produces virgin-quality antifreeze. The Company's locations are in the United States and Ontario, Canada. The Company conducts its primary business operations through Heritage-Crystal Clean, LLC, its wholly owned subsidiary, and all intercompany balances have been eliminated in consolidation. The Company has two reportable segments: "Environmental Services" and "Oil Business." The Environmental Services segment consists of the Company's parts cleaning, containerized waste management, vacuum truck services, antifreeze recycling activities, and field services. The Oil Business segment consists of the Company's used oil collection, recycled fuel oil sales, used oil re-refining activities, and used oil filter removal and disposal services. No customer represented greater than 10% of consolidated revenues for any of the periods presented. There were no intersegment revenues. Both segments operate in the United States and, to an immaterial degree, in Ontario, Canada. As such, the Company is not disclosing operating results by geographic segment. The Company’s fiscal year ends on the Saturday closest to December 31. The most recent fiscal year ended on December 28, 2019. Each of the Company's first three fiscal quarters consists of twelve weeks while the last fiscal quarter consists of sixteen or seventeen weeks. In the Company's Environmental Services segment, product revenues include sales of solvent, machines, absorbent, accessories, and antifreeze; service revenues include servicing of parts cleaning machines, drum waste removal services, vacuum truck services, field services, and other services; rental income includes embedded lease income from certain of our parts cleaning contracts. In the Company's Oil Business segment, product revenues primarily consist of sales of re-refined base oil, re-refinery co-products and recycled fuel oil; service revenues include revenues from used oil collection activities, collecting and disposing of waste water and removal and disposal of used oil filters. Due to the Company's integrated business model, it is impracticable to separately present costs of tangible products and costs of services. COVID-19 Pandemic We are closely monitoring the spread and impact of the COVID-19 pandemic and are continually assessing its potential effects on our business and our financial performance as well as the businesses of our customers and vendors. The Company cannot predict the duration or severity of the COVID-19 pandemic, and we cannot reasonably estimate the financial impact the COVID-19 outbreak will have on our results and significant estimates going forward. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 8 Months Ended |
Sep. 05, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company's significant accounting policies are described in Note 2, "Summary of Significant Accounting Policies," in the Company's Annual Report on Form 10-K for the fiscal year ended December 28, 2019. There have been no material changes in these policies or their application during the third quarter of fiscal 2020. Recently Issued Accounting Standards Adopted Standard Issuance Date Description Effective Date Effect on the Financial Statements ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” June 2016 This update modifies the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to utilize a new forward-looking “expected loss” methodology that generally will result in the earlier recognition of allowance for losses. December 29, 2019 The Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326) on December 29, 2019 and determined there was no material impact on the financial statements with no adjustment to retained earnings. |
Business Combinations
Business Combinations | 8 Months Ended |
Sep. 05, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS On March 31, 2020, Heritage-Crystal Clean completed the acquisition of certain assets of Gro America (“Gro”), which has expanded our network of wastewater processing facilities and augmented our field services capabilities to better serve our customers throughout the Midwestern United States. The purchase price was $10.1 million subject to certain adjustments, including a working capital adjustment, and is preliminarily allocated based on our estimates and assumptions of the approximate fair values of assets acquired and liabilities assumed on the acquisition date. We are still in the process of completing our valuation, and accordingly our estimates and assumptions are subject to change within the measurement period. The Company is continuing to examine facts and circumstances that existed at the acquisition date and how those affect the estimated fair value of working capital and the allocation of the estimated purchase price to other tangible and intangible assets. Goodwill recognized from the acquisition of Gro America represents the excess of the estimated purchase consideration transferred over the estimated fair value of the assets acquired and liabilities assumed. Factors leading to goodwill being recognized consist of the Company's expectations of synergies from combining operations of Gro America and the Company as well as the value of intangible assets that are not separately recognized, such as assembled workforce. Transaction costs incurred in conjunction with the acquisition of Gro America were immaterial. The results of Gro America are consolidated into the Company’s Environmental Services segment. On January 28, 2020, the Company acquired the remaining ownership interest in one of our subsidiaries in the amount of $2.7 million. On October 8, 2019, Heritage-Crystal Clean completed the acquisition of certain assets of California Environmental & Litho, Inc., which provided regulated waste disposal, transportation, manifesting, labeling and profiling services to printing, photographic, automotive and body shop industries in the Bay Area, Central Valley & Northern California. No facilities were acquired in the transaction and all service employees and activity have been consolidated in existing branch territories. Total consideration for the acquisition was approximately $0.5 million. Factors leading to goodwill being recognized are the Company's expectations of synergies from combining operations of California Environmental & Litho, Inc. and the Company as well as the value of intangible assets that are not separately recognized, such as an assembled workforce. On March 25, 2019, the Company completed the acquisition of certain assets of All Valley Disposal, Inc., an environmental services provider based in Fresno, California. Consideration for the acquisition paid at closing was $0.6 million. Contingent upon the achievement of certain business performance metrics, total consideration for the acquisition could reach a maximum of approximately $1.0 million. Factors leading to goodwill being recognized are the Company's expectations of synergies from combining operations of All Valley Disposal, Inc. and the Company as well as the value of intangible assets that are not separately recognized, such as an assembled workforce. The results of All Valley Disposal are consolidated into the Company’s Environmental Services segment. On February 1, 2019, the Company purchased the assets of W.S. Supplies, Inc. ("WSS") pursuant to an Asset Purchase Agreement. The Company purchased the assets of WSS to expand the Company’s Environmental Services segment in the mid-west. The purchase price was $0.5 million subject to certain adjustments, including a contingent consideration provision, and is allocated based on our estimates and assumptions of the approximate fair values of assets acquired on the acquisition date. The results of WSS are consolidated into the Company’s Environmental Services segment. On January 11, 2019, the Company purchased the assets of the consumer division of GlyEco, Inc. ("GlyEco") pursuant to an Asset Purchase Agreement. The Company purchased the assets of GlyEco's consumer division to expand the Company’s antifreeze line of business while expanding geographically. The purchase price was $1.6 million subject to certain adjustments, including working capital adjustments, and is allocated based on our estimates and assumptions of the approximate fair values of assets acquired on the acquisition date. Factors leading to goodwill being recognized are the Company's expectations of synergies from combining operations of GlyEco and the Company as well as the value of intangible assets that are not separately recognized, such as an assembled workforce. The results of GlyEco are consolidated into the Company’s Environmental Services segment. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed, net of cash acquired, related to each acquisition: As of September 5, 2020 (thousands) Gro America California Environmental & Litho All Valley Disposal GlyEco WSS Accounts receivable $ 752 $ 67 $ 36 $ 107 $ — Inventory — 3 18 291 28 Property, plant, & equipment 1,859 15 252 746 154 Equipment at customers — — — — 24 Intangible assets 3,080 445 310 251 298 Goodwill 4,516 3 384 251 — Accounts payable (76) — — — — Total purchase price, net of cash acquired $ 10,131 $ 533 $ 1,000 $ 1,646 $ 504 Less: working capital adjustment 2 — — 23 — Less: contingent consideration — 120 250 — — Less: to be placed in escrow — — 100 — — Net cash paid $ 10,129 $ 413 $ 650 $ 1,623 $ 504 Unaudited Pro Forma Financial Information The pro forma financial information in the table below presents the combined results of the Company as if the Gro America and GlyEco acquisitions had occurred December 30, 2018. The pro forma information is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company or results of operations of the Company that would have actually occurred had the transactions been in effect for the period presented. Third Quarter Ended, Third Quarter Ended, (thousands, except per share data) September 5, 2020 September 7, 2019 Total revenues $ 87,134 $ 106,256 Net income attributable to HCCI shareholders 3,958 6,238 Net income per share: basic $ 0.17 $ 0.27 Net income per share: diluted 0.17 0.27 First Three Quarters Ended, First Three Quarters Ended, (thousands, except per share data) September 5, 2020 September 7, 2019 Total revenues $ 274,871 $ 310,062 Net income attributable to HCCI shareholders 6,706 11,295 Net income per share: basic $ 0.29 $ 0.49 Net income per share: diluted 0.29 0.48 |
Revenue
Revenue | 8 Months Ended |
Sep. 05, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when our performance obligations under the terms of a contract with our customers are satisfied. Recognition occurs when the Company transfers control by completing the specified services at the point in time the customer benefits from the services performed or once our products are delivered. The Company measures progress toward complete satisfaction of a performance obligation satisfied over time using a cost-based input method. This method of measuring progress provides a faithful depiction of the transfer of goods or services because the costs incurred are expected to be substantially proportionate to the Company’s satisfaction of the performance obligation. Revenue is measured as the amount of consideration we expect to receive in exchange for completing our performance obligations. Sales tax and other taxes we collect with revenue-producing activities are excluded from revenue. In the case of contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on the relative stand-alone selling prices of the various goods and/or services encompassed by the contract. We do not have any material significant payment terms as payment is generally due within 30 days after the performance obligation has been satisfactorily completed. The Company has elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. In applying the guidance in Topic 606, there were no judgments or estimates made that the Company deems significant. Contract Balances — Contract assets primarily relate to the Company’s rights to consideration for work completed in relation to its services performed but not billed at the reporting date. Contract liabilities primarily consist of advance payments of performance obligations yet to be fully satisfied in the period reported. Our contract liabilities and contract assets are reported in a net position at the end of each reporting period. We disaggregate our revenue from contracts with customers by major lines of business for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following table disaggregates our revenue by major lines: Third Quarter Ended, September 5, 2020 September 7, 2019 Total Net Sales by Major Lines of Business (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Parts cleaning, containerized waste, & related products/services $ 35,480 $ — $ 35,480 $ 38,458 $ — $ 38,458 Vacuum Services & Wastewater Treatment 12,529 — 12,529 14,507 — 14,507 Field Services 3,100 — 3,100 5,654 — 5,654 Antifreeze Business 5,649 — 5,649 4,284 — 4,284 Environmental Services - Other 371 — 371 468 — 468 Re-refinery Product Sales — 17,409 17,409 — 29,059 29,059 Oil Collection Services & RFO — 6,161 6,161 — 5,772 5,772 Oil Filter Business — 1,080 1,080 — 970 970 Revenues from Contracts with Customers 57,129 24,650 81,779 63,371 35,801 99,172 Rental income 5,310 45 5,355 5,620 48 5,668 Total Revenues $ 62,439 $ 24,695 $ 87,134 $ 68,991 $ 35,849 $ 104,840 First Three Quarters Ended, September 5, 2020 September 7, 2019 Total Net Sales by Major Lines of Business (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Parts cleaning, containerized waste, & related products/services $ 109,053 $ — $ 109,053 $ 116,023 $ — $ 116,023 Vacuum Services & Wastewater Treatment 38,705 — 38,705 43,105 — 43,105 Field Services 17,285 — 17,285 18,451 — 18,451 Antifreeze Business 16,887 — 16,887 12,086 — 12,086 Environmental Services - Other 1,278 1,278 1,228 — 1,228 Re-refinery Product Sales — 54,896 54,896 — 80,385 80,385 Oil Collection Services & RFO — 16,109 16,109 — 16,076 16,076 Oil Filter Business — 3,155 3,155 — 3,292 3,292 Revenues from Contracts with Customers 183,208 74,160 257,368 190,893 99,753 290,646 Rental income 16,483 65 16,548 14,791 176 14,967 Total Revenues $ 199,691 $ 74,225 $ 273,916 $ 205,684 $ 99,929 $ 305,613 The following table provides information about contract assets and contract liabilities from contracts with customers: (thousands) September 5, 2020 December 28, 2019 Contract assets $ 46 $ 64 Contract liabilities 2,314 2,316 Contract liabilities - net $ 2,268 $ 2,252 During the fiscal quarter ended September 5, 2020, the Company recognized zero revenue that was included in the contract liabilities balance as of December 28, 2019. During the three fiscal quarters ended September 5, 2020, the Company recognized $2.3 million of revenue that was included in the contract liabilities balance as of December 28, 2019. The Company has no assets recognized from costs to obtain or fulfill a contract with a customer. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Accounts Receivable
Accounts Receivable | 8 Months Ended |
Sep. 05, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE Accounts Receivable — Net, includes amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. The allowance for doubtful accounts is our best estimate of the amount of probable lifetime-expected credit losses in existing accounts receivable and is determined based on our historical collections experience, age of the receivable, knowledge of the customer and the condition of the general economy and industry as a whole. The Company does not have any off-balance-sheet credit exposure related to its customers. Accounts receivable for the third quarter ended September 5, 2020, and the fiscal year ended December 28, 2019 consisted of the following: (thousands) September 5, December 28, Trade $ 46,134 $ 54,420 Less: allowance for doubtful accounts 2,165 2,221 Trade - net 43,969 52,199 Related parties 3,024 1,560 Other 1,884 1,827 Total accounts receivable - net $ 48,877 $ 55,586 The following table provides the changes in the Company’s allowance for doubtful accounts for the first three quarters ended September 5, 2020, and the fiscal year ended December 28, 2019: (thousands) September 5, December 28, Balance at beginning of period $ 2,221 $ 1,816 Provision for bad debts 1,210 1,486 Accounts written off, net of recoveries (1,266) (1,081) Balance at end of period $ 2,165 $ 2,221 |
Inventory
Inventory | 8 Months Ended |
Sep. 05, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY The carrying value of inventory consisted of the following: (thousands) September 5, December 28, Used oil and processed oil $ 7,291 $ 8,349 Solvents and solutions 6,327 8,694 Machines 5,328 5,440 Drums and supplies 4,091 4,697 Other 2,188 2,632 Total inventory 25,225 29,812 Less: machine refurbishing reserve 390 439 Total inventory - net $ 24,835 $ 29,373 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 8 Months Ended |
Sep. 05, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment consisted of the following: (thousands) September 5, December 28, Machinery, vehicles, and equipment $ 129,420 $ 127,242 Buildings and storage tanks 71,928 71,616 Land 9,664 9,664 Leasehold improvements 6,733 6,523 Construction in progress 15,293 7,958 Assets held for sale — 4 Total property, plant and equipment 233,038 223,007 Less: accumulated depreciation 75,565 68,096 Property, plant and equipment - net $ 157,473 $ 154,911 (thousands) September 5, December 28, Equipment at customers $ 80,654 $ 77,914 Less: accumulated depreciation 57,194 53,682 Equipment at customers - net $ 23,460 $ 24,232 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 8 Months Ended |
Sep. 05, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is measured as a residual amount as of the acquisition date, which in most cases results in measuring goodwill as an excess of the purchase consideration transferred plus the fair value of any noncontrolling interest in the acquiree over the fair value of the net assets acquired, including any contingent consideration. The Company tests goodwill for impairment annually in the fourth quarter and in interim periods if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company's determination of fair value requires certain assumptions and estimates, such as margin expectations, market conditions, growth expectations, expected changes in working capital, etc., regarding expected future profitability and expected future cash flows. The Company tests goodwill for impairment at each of its two reporting units, Environmental Services and Oil Business. The following table shows changes to our goodwill balances by segment from December 28, 2019 to September 5, 2020: (thousands) Oil Business Environmental Services Total Goodwill at December 28, 2019 Gross carrying amount $ 3,952 $ 32,997 $ 36,949 Accumulated impairment loss (3,952) — (3,952) Net book value at December 28, 2019 $ — $ 32,997 $ 32,997 Acquisitions — 4,516 — Measurement period and other adjustments — — — Goodwill at September 5, 2020 Gross carrying amount 3,952 37,513 41,465 Accumulated impairment loss (3,952) — (3,952) Net book value at September 5, 2020 $ — $ 37,513 $ 37,513 The following is a summary of software and other intangible assets: September 5, 2020 December 28, 2019 (thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships $ 28,185 $ 16,059 $ 12,126 $ 25,551 $ 13,886 $ 11,665 Software 9,062 5,380 3,682 8,093 4,887 3,206 Non-compete agreements 4,049 3,199 850 3,603 3,068 535 Patents, formulae, and licenses 1,769 827 942 1,769 774 995 Other 1,702 1,300 402 1,702 1,211 491 Total software and intangible assets - net $ 44,767 $ 26,765 $ 18,002 $ 40,718 $ 23,826 $ 16,892 Amortization expense was $1.1 million for the third quarter ended September 5, 2020, and $0.7 million for the third quarter ended September 7, 2019. Amortization expense was $2.9 million for the first three quarters ended September 5, 2020, and $2.5 million for the first three quarters ended September 7, 2019. The weighted average useful lives of software and other intangibles are as follows: Weighted Average Useful Life (years) Patents, formulae, & licenses 15 Customer and supplier relationships 11 Software 9 Non-compete agreements 5 Other intangibles 7 The estimated amortization expense for the remainder of fiscal 2020 and each of the five succeeding fiscal years is as follows: (millions) Fiscal Year Amortization Expense 2020 $2.1 2021 3.8 2022 3.6 2023 3.1 2024 1.5 2025 1.3 The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, the finalization of the fair value of intangible assets that have been acquired from business combinations, disposal of intangible assets, accelerated amortization of intangible assets, and other events. |
Accounts Payable
Accounts Payable | 8 Months Ended |
Sep. 05, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable | ACCOUNTS PAYABLE Accounts payable consisted of the following: (thousands) September 5, December 28, Accounts payable $ 26,546 $ 37,690 Accounts payable - related parties 382 368 Total accounts payable $ 26,928 $ 38,058 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 8 Months Ended |
Sep. 05, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | DEBT AND FINANCING ARRANGEMENTS Bank Credit Facility The Company's Credit Agreement ("Credit Agreement"), dated February 21, 2017, provides for borrowings of up to $95.0 million, subject to the satisfaction of certain terms and conditions, comprised of a term loan of $30.0 million and up to $65.0 million of borrowings under a revolving loan. The actual amount of borrowings available under the revolving loan portion of the Credit Agreement is limited by the Company's total leverage ratio. The amount available to draw at any point in time would be further reduced by any standby letters of credit issued. Loans made under the Credit Agreement may be Base Rate Loans or LIBOR Rate Loans, at the election of the Company subject to certain exceptions. Base Rate Loans have an interest rate equal to (i) the higher of (a) the federal funds rate plus 0.5%, (b) the London Interbank Offering Rate (“LIBOR”) plus 1%, or (c) Bank of America's prime rate, plus (ii) a variable margin of between 0.75% and 1.75% depending on the Company's total leverage ratio, calculated on a consolidated basis. LIBOR rate loans have an interest rate equal to (i) the LIBOR rate plus (ii) a variable margin of between 1.75% and 2.75% depending on the Company's total leverage ratio. Amounts borrowed under the Credit Agreement are secured by a security interest in substantially all of the Company's tangible and intangible assets. On July 27, 2017, the Financial Conduct Authority, which regulates LIBOR, announced that it intends to phase out the London Interbank Offered Rate by the end of 2021. We expect that widespread use of LIBOR will transition to alternative interest rates in the near future. Since loans made under our Credit Agreement may be based on LIBOR based loans, the phasing out of LIBOR may adversely affect interest rates that could result in higher borrowing costs and higher interest expense. The Company is currently evaluating its options under our Credit Agreement, but at this time we cannot reasonably estimate the impact to our financial statements. The Credit Agreement contains customary terms and provisions (including representations, covenants, and conditions) for transactions of this type. Certain covenants, among other things, restrict the Company's and its subsidiaries' ability to incur indebtedness, grant liens, make investments and sell assets. The Credit Agreement also contains customary events of default, covenants and representations and warranties. Financial covenants include: • An interest coverage ratio (based on interest expense and EBITDA) of at least 3.5 to 1.0; • A total leverage ratio no greater than 3.00 to 1.00, provided that in the event of a permitted acquisition having an aggregate consideration equal to $10.0 million or more, at the Borrower’s election, the total leverage ratio shall be deemed to be 3.25 to 1.00 for the fiscal quarter in which such permitted acquisition occurs and the three immediately following fiscal quarters and thereafter will revert to 3.00 to 1.00; and • A capital expenditures covenant limiting capital expenditures to $100.0 million plus, if the capital expenditures permitted have been fully utilized, an additional amount for the remaining term of the Credit Agreement equal to 35% of EBITDA for the thirteen “four-week” periods most recently ended immediately prior to the full utilization of such $100.0 million basket. The Credit Agreement places certain limitations on acquisitions and the payment of dividends. Debt at September 5, 2020 and December 28, 2019 consisted of the following: (thousands) September 5, 2020 December 28, 2019 Principal amount $ 30,000 $ 30,000 Less: unamortized debt issuance costs 443 652 Long-term debt, less current maturities $ 29,557 $ 29,348 For the third quarters ended September 5, 2020 and September 7, 2019, the Company recorded interest expense of $0.3 million of which $0.3 million is with respect to our term loan, and $0.1 million related to amortization of debt issuance costs. For the first three quarters ended September 5, 2020, the Company recorded interest expense of $1.2 million, of which $1.0 million is with respect to our term loan, and $0.2 million related to amortization of debt issuance costs. For the first three quarters ended September 7, 2019, the Company recorded $1.2 million of interest expense which related primarily to our term loan. The Company's weighted average interest rate for all debt as of September 5, 2020, and September 7, 2019 was 3.2% and 4.3%, respectively. As of September 5, 2020 and December 28, 2019, the Company was in compliance with all covenants under its Credit Agreement. As of September 5, 2020 and December 28, 2019, the Company had $4.0 million an d $1.1 million of standby letters of credit issued, respectively, and $61.0 million and $63.9 million was available for borrowing under the bank credit facility, respectively. We believe that the carrying value of our debt balance at September 5, 2020 approximates fair value. |
Segment Information
Segment Information | 8 Months Ended |
Sep. 05, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company has two reportable segments: "Environmental Services" and "Oil Business." The Environmental Services segment consists primarily of the Company's parts cleaning, containerized waste management, vacuum truck service, antifreeze recycling activities, and field services. The Oil Business segment consists primarily of the Company's used oil collection, used oil re-refining activities, and the dehydration of used oil to be sold as recycled fuel oil. No single customer in either segment accounted for more than 10.0% of consolidated revenues in any of the periods presented. There were no intersegment revenues. Both the Environmental Services and Oil Business segments operate in the United States and, to an immaterial degree, in Ontario, Canada. As such, the Company is not disclosing operating results by geographic segment. Segment results for the third quarters ended September 5, 2020, and September 7, 2019 were as follows: Third Quarter Ended, September 5, 2020 (thousands) Environmental Services Oil Business Corporate and Consolidated Revenues Service revenues $ 47,532 $ 5,725 $ — $ 53,257 Product revenues 9,597 18,925 — 28,522 Rental income 5,310 45 — 5,355 Total revenues $ 62,439 $ 24,695 $ — $ 87,134 Operating expenses Operating costs 45,383 21,742 — 67,125 Operating depreciation and amortization 2,431 2,102 — 4,533 Profit before corporate selling, general, and administrative expenses $ 14,625 $ 851 $ — $ 15,476 Selling, general, and administrative expenses 9,410 9,410 Depreciation and amortization from SG&A 1,102 1,102 Total selling, general, and administrative expenses $ 10,512 $ 10,512 Other (income) - net (441) (441) Operating income 5,405 Interest expense – net 284 284 Income before income taxes $ 5,121 Third Quarter Ended, September 7, 2019 (thousands) Environmental Services Oil Business Corporate and Consolidated Revenues Service revenues $ 54,066 $ 3,142 $ — $ 57,208 Product revenues 9,305 32,659 — 41,964 Rental income 5,620 48 — 5,668 Total revenues $ 68,991 $ 35,849 $ — $ 104,840 Operating expenses Operating costs 49,486 30,630 — 80,116 Operating depreciation and amortization 1,745 1,439 — 3,184 Profit before corporate selling, general, and administrative expenses $ 17,760 $ 3,780 $ — $ 21,540 Selling, general, and administrative expenses 11,241 11,241 Depreciation and amortization from SG&A 796 796 Total selling, general, and administrative expenses $ 12,037 $ 12,037 Other expense - net 1,020 1,020 Operating income 8,483 Interest expense – net 181 181 Income before income taxes $ 8,302 Segment results for the first three quarters ended September 5, 2020, and September 7, 2019 were as follows: First Three Quarters Ended, September 5, 2020 (thousands) Environmental Services Oil Business Corporate and Eliminations Consolidated Revenues Service revenues $ 154,589 $ 14,673 $ — $ 169,262 Product revenues 28,619 59,487 — 88,106 Rental income 16,483 65 — 16,548 Total revenues $ 199,691 $ 74,225 $ — $ 273,916 Operating expenses Operating costs 150,891 71,778 — 222,669 Operating depreciation and amortization 7,049 6,238 — 13,287 Profit (loss) before corporate selling, general, and administrative expenses $ 41,751 $ (3,791) $ — $ 37,960 Selling, general, and administrative expenses 32,066 32,066 Depreciation and amortization from SG&A 3,071 3,071 Total selling, general, and administrative expenses $ 35,137 $ 35,137 Other (income) - net (6,967) (6,967) Operating income 9,790 Interest expense – net 842 842 Income before income taxes $ 8,948 First Three Quarters Ended, September 7, 2019 (thousands) Environmental Services Oil Business Corporate and Eliminations Consolidated Revenues Service revenues $ 161,273 $ 10,249 $ — $ 171,522 Product revenues 29,620 89,504 — 119,124 Rental income 14,791 176 — 14,967 Total revenues $ 205,684 $ 99,929 $ — $ 305,613 Operating expenses Operating costs 149,024 92,425 — 241,449 Operating depreciation and amortization 5,252 4,308 — 9,560 Profit before corporate selling, general, and administrative expenses $ 51,408 $ 3,196 $ — $ 54,604 Selling, general, and administrative expenses 34,679 34,679 Depreciation and amortization from SG&A 2,616 2,616 Total selling, general, and administrative expenses $ 37,295 $ 37,295 Other expense - net 2,477 2,477 Operating income 14,832 Interest expense – net 629 629 Income before income taxes $ 14,203 Total assets by segment as of September 5, 2020, and December 28, 2019 were as follows: (thousands) September 5, 2020 December 28, 2019 Total Assets: Environmental Services $ 220,897 $ 224,657 Oil Business 164,537 171,104 Unallocated Corporate Assets 68,173 75,553 Total $ 453,607 $ 471,314 |
Commitments and Contingencies
Commitments and Contingencies | 8 Months Ended |
Sep. 05, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES LEASES Lessee The Company leases buildings and property, railcars, machinery and equipment, trailers and various types of vehicles for use in our operations. Each arrangement is evaluated individually to determine if the arrangement is or contains a lease at inception. The Company has lease agreements with lease and non-lease components and we have elected to not separate lease and non-lease components for all classes of underlying assets. In addition, our lease agreements do not contain any material residual guarantees or restrictive covenants. Leases may include variable lease payments for common area maintenance, real estate taxes, and truck lease mileage. No leases are tied to a market index rate or CPI. Variable lease payments are not included in the initial measurement of the right-of-use assets or lease liabilities, and are recorded as lease expense in the period incurred. Options to extend or terminate a lease are included in the lease term when it is reasonably certain that we will exercise that option. We have elected not to record leases with an initial term of 12 months or less on the balance sheet and instead recognize those lease payments on a straight-line basis over the lease term. Leases with initial terms in excess of 12 months are recorded as either operating or financing leases in our Consolidated Balance Sheet. Right-of-use assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Our leased right-of-use assets are measured at the initial measurement of the lease liability, adjusted for any lease payments made prior to the lease commencement date, less any lease incentives received and other initial direct costs incurred. Our lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. Our leases have remaining terms ranging from less than one month to approximately 11 years and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. Our finance leases include a fleet of mobile equipment. The components of lease expense were as follows: For the Third Quarter Ended For the First Three Quarters Ended (thousands) September 5, September 7, September 5, September 7, Finance lease cost: Amortization of right-of-use assets $ 397 $ 25 $ 1,069 $ 25 Interest on lease liabilities 85 6 236 6 Total finance lease cost $ 482 $ 31 $ 1,305 $ 31 Operating lease cost $ 5,565 $ 5,914 $ 17,342 $ 18,366 Short-term lease cost 1,076 1,579 4,160 3,650 Variable lease cost 706 827 2,553 2,794 Total lease cost $ 7,347 $ 8,320 $ 24,055 $ 24,810 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from financing leases $ 84 $ 4 $ 229 $ 4 Operating cash flows from operating leases $ 6,058 $ 6,554 $ 18,734 $ 19,805 Financing cash flows from financing leases $ 300 $ 13 $ 762 $ 13 Right-of-use assets obtained in exchange for new finance lease liabilities $ 2,739 $ 1,487 $ 6,003 $ 1,487 Right-of-use assets obtained in exchange for new operating lease liabilities $ 545 $ 12,099 $ 2,486 $ 92,226 Weighted-average remaining lease term (years) Finance leases 6.3 6.9 Operating leases 4.7 4.8 Weighted-average discount rate Finance leases 3.2 % 3.4 % Operating leases 5.7 % 5.7 % Future annual minimum lease payment commitments as of September 5, 2020 were as follows: (thousands) Year 1 $ 25,140 Year 2 20,218 Year 3 15,962 Year 4 11,697 Year 5 8,362 thereafter 13,436 Total minimum lease payments $ 94,815 Less: imputed interest 11,670 Lease liability $ 83,145 Lessor The Company is a lessor of portions of a building and property, railcars, and equipment such as embedded leases of parts cleaning machines. Each of the Company’s leases is classified as an operating lease, and the vast majority are short-term leases. Variable lease payments include real and personal property taxes, which are based on the lessee’s pro rata portion of such amounts, and excess mileage charges which are computed as the actual miles traveled in a calendar year minus the maximum average mileage allowance as specified per the contract. Options to extend the lease beyond the original terms range from day-to-day renewals to increments of five-year extensions. Options to terminate the lease range from immediate termination upon return of the asset to various written notification periods following a minimum lease term. Options for a lessee to purchase the underlying asset are not contractually specified but may be negotiated on a case-by-case basis. Significant judgments made in determining whether a contract contains a lease include assessments as to whether or not the contract conveys the right to direct the use of an identified asset. Significant judgments made in allocating consideration between lease and non-lease components include techniques applied in estimating the relative stand-alone selling prices of the lease and non-lease components of the contract in cases where a stand-alone selling price is not directly observable. As of September 5, 2020, the Company is party to a contract under which it leases railcars to the related party Calumet Specialty Products Partners, L.P. No leased assets are covered by residual value guarantees. The Company manages the risk associated with the residual value of leased assets through such means as performing periodic maintenance and upkeep activities and the inclusion of contractual terms that hold the lessee responsible for damage incurred to leased assets. Contained in Note 7, “Property, plant, and equipment,” are disclosures concerning the Company’s underlying assets under operating leases. The Company has made an accounting policy election to exclude from the consideration in the contract, and from variable payments not included in the consideration in the contract, all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific lease revenue-producing transaction and collected by the lessor from a lessee. The Company recognizes rental income on a straight-line basis for that portion of the consideration allocated to the embedded lease component of certain of our parts cleaning contracts. We also recognize rental income on certain subleases of railcars and portions of a building and property. Rental income was as follows: Third Quarter Ended, September 5, 2020 September 7, 2019 (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Parts Cleaning $ 5,310 $ — $ 5,310 $ 5,620 $ — $ 5,620 Railcars — — — — 35 35 Property — 45 45 — 13 13 Total rental income $ 5,310 $ 45 $ 5,355 $ 5,620 $ 48 $ 5,668 First Three Quarters Ended, September 5, 2020 September 7, 2019 (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Parts Cleaning $ 16,483 $ — $ 16,483 $ 14,791 $ — $ 14,791 Railcars — 16 16 — 147 147 Property — 49 49 — 29 29 Total rental income $ 16,483 $ 65 $ 16,548 $ 14,791 $ 176 $ 14,967 Purchase Obligations The Company may enter into purchase obligations with certain vendors. They represent expected payments to third party service providers and other commitments entered into during the normal course of our business. These purchase obligations are generally cancelable with or without notice, without penalty, although certain vendor agreements provide for cancellation fees or penalties depending on the terms of the contract. The Company has purchase obligations in the form of open purchase orders of $19.9 million a s of September 5, 2020, and $28.3 million as of December 28, 2019, primarily for used oil, solvent, machine purchases, disposal and transportation expenses, and capital expenditures. The Company may be subject to investigations, claims or lawsuits as a result of operating its business, including matters governed by environmental laws and regulations. The Company may also be subject to tax audits in a variety of jurisdictions. When claims are asserted, the Company evaluates the likelihood that a loss will occur and records a liability for those instances when the likelihood is deemed probable and the exposure is reasonably estimable. The Company carries insurance at levels it believes are adequate to cover loss contingencies based on historical claims activity. When the potential loss exposure is limited to the insurance deductible and the likelihood of loss is determined to be probable, the Company accrues for the amount of the required deductible, unless a lower amount of exposure is estimated. As of September 5, 2020 and December 28, 2019, the Company had ac crued $3.9 million |
Income Taxes
Income Taxes | 8 Months Ended |
Sep. 05, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company deducted for federal income tax purposes accelerated "bonus" depreciation on the majority of its capital expenditures for assets placed in service in fiscal 2011 through the third quarter of 2020. Therefore, the Company recorded a noncurrent deferred tax liability as to the difference between the book basis and the tax basis of those assets. As of the third quarter of fiscal 2020, the Company's remaining Federal Net Operating Loss ("NOL") was $21.7 million, which will begin to expire in 2031. The unexpired balance on the federal NOL generated in 2011 is $1.1 million as of September 5, 2020. The Company's remaining balance of Federal NOLs recorded during 2012 - 2019 was $20.6 million as of September 5, 2020. There are also state NOLs of varying amounts, dependent on each state’s conformity with bonus depreciation. The remaining deferred tax asset related to the Company's state and federal NOL was a tax effected balance of $5.1 million. The Company's effective tax rate for the third quarter of fiscal 2020 was 22.7% compared to 27.1% in the third quarter of fiscal 2019. The rate decrease is principally attributable to the opposing effect on the tax rate from changes in year to date earnings. The Company’s effective rate for the first three quarters of fiscal 2020 was 26.3% compared to 24.0% in the first three quarters of fiscal 2019. The rate increase is principally attributable to income taxes which are computed on a tax base that reflects substantial modifications to federal taxable income, and that has created comparatively high anticipated tax expense due to relatively low pre-tax income for fiscal 2020. The Company establishes reserves when it is more likely than not that the Company will not realize the full tax benefit of a position. The Company had a reserve of $2.7 million for uncertain tax positions as of September 5, 2020. The gross unrecognized tax benefits would, if recognized, decrease the Company's effective tax rate. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act permits NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes; increases the limitation on allowable business interest expense; allows for the refund of AMT credits not previously refunded among other things. The Company is currently evaluating the impact of the CARES Act. At present, the Company anticipates a cash benefit from the refundable AMT credit provisions but does not expect that the NOL carryback provisions or interest expense limitation provisions would result in a material cash benefit. |
Share-based Compensation
Share-based Compensation | 8 Months Ended |
Sep. 05, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION Restricted Stock Compensation/Awards Annually, the Company grants restricted shares to its Board of Directors. The shares become fully vested one year from their grant date. The fair value of each restricted stock grant is based on the closing price of the Company's common stock on the date of grant. The Company amortizes the expense over the service period, which is the fiscal year in which the award is granted. In addition, the Company may grant restricted shares to certain members of management based on their services and contingent upon continued service with the Company. The restricted shares vest over a period of approximately three years from the grant date. The fair value of each restricted stock grant is based on the closing price of the Company's common stock on the date of grant. The following table shows a summary of restricted share grants and expense resulting from the awards: Compensation Expense (thousands, except share amounts) First Three Quarters Ended, Unrecognized Expense as of, Recipient of Grant Grant Date Restricted Shares September 5, 2020 September 7, 2019 September 5, 2020 September 7, 2019 Members of Management February, 2017 146,564 $ — $ 249 $ — $ 118 Chief Executive Officer February, 2017 500,000 319 569 187 661 Members of Management February, 2018 116,958 373 373 193 804 Special Incentive Grant April, 2018 350,000 548 661 2,073 3,887 Board of Directors May, 2019 10,590 — 197 — 88 Members of Management May, 2019 23,560 132 136 326 500 Members of Management February, 2020 41,138 165 — 453 — Board of Directors April, 2020 14,988 197 — 88 — In February 2017, as part of Mr. Recatto's employment agreement, the Company granted a restricted stock award of 500,000 shares of common stock, which vests through January 2021 in an amount based on the vesting table below, with the common stock price increase to be determined based on the increase in the price of the Company’s common stock (if any) from the closing price of the common stock as reported by Nasdaq on the employment commencement date ($15.00) and the common stock price on the potential vesting date (determined by using the weighted average closing price of a share of the Company's common stock for the 90-day period ending on the vesting date). If the stock price does not increase by $5.00, then no shares shall vest. During the first three quarters of fiscal 2020, the Company recorded approximately $0.3 million of compensation expense related to this award. In the future, the Company expects to recognize compensation expense of approximately $0.3 million over the remaining requisite service period, which ends January 31, 2021. The fair value of this restricted stock award as of the grant date was estimated using a Monte Carlo simulation model. Key assumptions used in the Monte Carlo simulation to estimate the grant date fair value of this award are a risk-free rate of 1.70%, expected dividend yield of zero, and an expected volatility assumption of 41.73%. Vesting Table Increase in Stock Price From the Employment Commencement Date to the Vesting Date Total Percentage of Restricted Stock Less than $5 per share increase —% $5 per share increase 25% $10 per share increase 50% $15 per share increase 75% $20 or more per share increase 100% Provision for possible accelerated vesting of award If the average closing price of the Company's common stock increases by the marginal levels set forth in the above vesting table for any consecutive 180 day period between the award date and final vesting date, Mr. Recatto shall become vested in 50% of the corresponding total percentage of restricted shares earned on the last day of the 180 day period. Accelerated vestings achieved to date include the following: Vesting Date Marginal Level Target Shares Fully Vested March 14, 2018 25% 62,500 June 10, 2019 50% 62,500 The following table summarizes the restricted stock activity for the first three quarters ended September 5, 2020: Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share Nonvested shares outstanding at December 28, 2019 784,579 $ 18.39 Granted 56,126 25.72 Vested (93,231) 19.24 Forfeited (50,510) 19.13 Nonvested shares outstanding at September 5, 2020 696,964 $ 16.69 Employee Stock Purchase Plan |
Earnings Per Share
Earnings Per Share | 8 Months Ended |
Sep. 05, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table reconciles the number of shares outstanding for the third quarters and first three quarters of fiscal 2020 and 2019, respectively, to the number of weighted average basic shares outstanding and the number of weighted average diluted shares outstanding for the purposes of calculating basic and diluted earnings per share: Third Quarter Ended, First Three Quarters Ended, (thousands, except per share amounts) September 5, 2020 September 7, 2019 September 5, 2020 September 7, 2019 Net income $ 3,958 $ 6,056 $ 6,591 $ 10,792 Less: income attributable to noncontrolling interest — 86 — 278 Net income attributable to Heritage-Crystal Clean, Inc. common stockholders $ 3,958 $ 5,970 $ 6,591 $ 10,514 Weighted average basic shares outstanding 23,294 23,185 23,277 23,146 Dilutive shares for share–based compensation plans 185 236 179 238 Weighted average diluted shares outstanding 23,479 23,421 23,456 23,384 Net income per share: basic $ 0.17 $ 0.26 $ 0.28 $ 0.45 Net income per share: diluted $ 0.17 $ 0.25 $ 0.28 $ 0.45 |
Other (Income) Expense - Net
Other (Income) Expense - Net | 8 Months Ended |
Sep. 05, 2020 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense - Net | OTHER (INCOME) EXPENSE - NETFor the third quarter of fiscal 2020, other (income) expense - net was $0.4 million of income which was mainly due to gain on sale of assets, compared to $1.0 million of expense during the third quarter of 2019. Other (income) expense - net was $7.0 million of income for the first three quarters of fiscal 2020 driven mainly by a $6.5 million reversal of settlement claims, compared to a net $2.5 million of other expense in the first three quarters of 2019 primarily relating to $1.5 million of site closure costs. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 8 Months Ended |
Sep. 05, 2020 | |
Accounting Policies [Abstract] | |
Fiscal Period | The Company’s fiscal year ends on the Saturday closest to December 31. The most recent fiscal year ended on December 28, 2019. Each of the Company's first three fiscal quarters consists of twelve weeks while the last fiscal quarter consists of sixteen or seventeen weeks. |
Recently Issued Accounting Standards Adopted | Recently Issued Accounting Standards Adopted Standard Issuance Date Description Effective Date Effect on the Financial Statements ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” June 2016 This update modifies the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to utilize a new forward-looking “expected loss” methodology that generally will result in the earlier recognition of allowance for losses. December 29, 2019 The Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326) on December 29, 2019 and determined there was no material impact on the financial statements with no adjustment to retained earnings. |
Business Combinations (Tables)
Business Combinations (Tables) | 8 Months Ended |
Sep. 05, 2020 | |
Business Combinations [Abstract] | |
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed, net of cash acquired, related to each acquisition: As of September 5, 2020 (thousands) Gro America California Environmental & Litho All Valley Disposal GlyEco WSS Accounts receivable $ 752 $ 67 $ 36 $ 107 $ — Inventory — 3 18 291 28 Property, plant, & equipment 1,859 15 252 746 154 Equipment at customers — — — — 24 Intangible assets 3,080 445 310 251 298 Goodwill 4,516 3 384 251 — Accounts payable (76) — — — — Total purchase price, net of cash acquired $ 10,131 $ 533 $ 1,000 $ 1,646 $ 504 Less: working capital adjustment 2 — — 23 — Less: contingent consideration — 120 250 — — Less: to be placed in escrow — — 100 — — Net cash paid $ 10,129 $ 413 $ 650 $ 1,623 $ 504 |
Pro Forma Financial Information | The pro forma financial information in the table below presents the combined results of the Company as if the Gro America and GlyEco acquisitions had occurred December 30, 2018. The pro forma information is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company or results of operations of the Company that would have actually occurred had the transactions been in effect for the period presented. Third Quarter Ended, Third Quarter Ended, (thousands, except per share data) September 5, 2020 September 7, 2019 Total revenues $ 87,134 $ 106,256 Net income attributable to HCCI shareholders 3,958 6,238 Net income per share: basic $ 0.17 $ 0.27 Net income per share: diluted 0.17 0.27 First Three Quarters Ended, First Three Quarters Ended, (thousands, except per share data) September 5, 2020 September 7, 2019 Total revenues $ 274,871 $ 310,062 Net income attributable to HCCI shareholders 6,706 11,295 Net income per share: basic $ 0.29 $ 0.49 Net income per share: diluted 0.29 0.48 |
Revenue (Tables)
Revenue (Tables) | 8 Months Ended |
Sep. 05, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Major Lines | The following table disaggregates our revenue by major lines: Third Quarter Ended, September 5, 2020 September 7, 2019 Total Net Sales by Major Lines of Business (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Parts cleaning, containerized waste, & related products/services $ 35,480 $ — $ 35,480 $ 38,458 $ — $ 38,458 Vacuum Services & Wastewater Treatment 12,529 — 12,529 14,507 — 14,507 Field Services 3,100 — 3,100 5,654 — 5,654 Antifreeze Business 5,649 — 5,649 4,284 — 4,284 Environmental Services - Other 371 — 371 468 — 468 Re-refinery Product Sales — 17,409 17,409 — 29,059 29,059 Oil Collection Services & RFO — 6,161 6,161 — 5,772 5,772 Oil Filter Business — 1,080 1,080 — 970 970 Revenues from Contracts with Customers 57,129 24,650 81,779 63,371 35,801 99,172 Rental income 5,310 45 5,355 5,620 48 5,668 Total Revenues $ 62,439 $ 24,695 $ 87,134 $ 68,991 $ 35,849 $ 104,840 |
Contract Assets and Contract Liabilities from Contracts with Customers | The following table provides information about contract assets and contract liabilities from contracts with customers: (thousands) September 5, 2020 December 28, 2019 Contract assets $ 46 $ 64 Contract liabilities 2,314 2,316 Contract liabilities - net $ 2,268 $ 2,252 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 8 Months Ended |
Sep. 05, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable for the third quarter ended September 5, 2020, and the fiscal year ended December 28, 2019 consisted of the following: (thousands) September 5, December 28, Trade $ 46,134 $ 54,420 Less: allowance for doubtful accounts 2,165 2,221 Trade - net 43,969 52,199 Related parties 3,024 1,560 Other 1,884 1,827 Total accounts receivable - net $ 48,877 $ 55,586 The following table provides the changes in the Company’s allowance for doubtful accounts for the first three quarters ended September 5, 2020, and the fiscal year ended December 28, 2019: (thousands) September 5, December 28, Balance at beginning of period $ 2,221 $ 1,816 Provision for bad debts 1,210 1,486 Accounts written off, net of recoveries (1,266) (1,081) Balance at end of period $ 2,165 $ 2,221 |
Inventory (Tables)
Inventory (Tables) | 8 Months Ended |
Sep. 05, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The carrying value of inventory consisted of the following: (thousands) September 5, December 28, Used oil and processed oil $ 7,291 $ 8,349 Solvents and solutions 6,327 8,694 Machines 5,328 5,440 Drums and supplies 4,091 4,697 Other 2,188 2,632 Total inventory 25,225 29,812 Less: machine refurbishing reserve 390 439 Total inventory - net $ 24,835 $ 29,373 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 8 Months Ended |
Sep. 05, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant, and Equipment | Property, plant, and equipment consisted of the following: (thousands) September 5, December 28, Machinery, vehicles, and equipment $ 129,420 $ 127,242 Buildings and storage tanks 71,928 71,616 Land 9,664 9,664 Leasehold improvements 6,733 6,523 Construction in progress 15,293 7,958 Assets held for sale — 4 Total property, plant and equipment 233,038 223,007 Less: accumulated depreciation 75,565 68,096 Property, plant and equipment - net $ 157,473 $ 154,911 (thousands) September 5, December 28, Equipment at customers $ 80,654 $ 77,914 Less: accumulated depreciation 57,194 53,682 Equipment at customers - net $ 23,460 $ 24,232 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 8 Months Ended |
Sep. 05, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table shows changes to our goodwill balances by segment from December 28, 2019 to September 5, 2020: (thousands) Oil Business Environmental Services Total Goodwill at December 28, 2019 Gross carrying amount $ 3,952 $ 32,997 $ 36,949 Accumulated impairment loss (3,952) — (3,952) Net book value at December 28, 2019 $ — $ 32,997 $ 32,997 Acquisitions — 4,516 — Measurement period and other adjustments — — — Goodwill at September 5, 2020 Gross carrying amount 3,952 37,513 41,465 Accumulated impairment loss (3,952) — (3,952) Net book value at September 5, 2020 $ — $ 37,513 $ 37,513 |
Schedule of Intangible Assets | The following is a summary of software and other intangible assets: September 5, 2020 December 28, 2019 (thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships $ 28,185 $ 16,059 $ 12,126 $ 25,551 $ 13,886 $ 11,665 Software 9,062 5,380 3,682 8,093 4,887 3,206 Non-compete agreements 4,049 3,199 850 3,603 3,068 535 Patents, formulae, and licenses 1,769 827 942 1,769 774 995 Other 1,702 1,300 402 1,702 1,211 491 Total software and intangible assets - net $ 44,767 $ 26,765 $ 18,002 $ 40,718 $ 23,826 $ 16,892 The weighted average useful lives of software and other intangibles are as follows: Weighted Average Useful Life (years) Patents, formulae, & licenses 15 Customer and supplier relationships 11 Software 9 Non-compete agreements 5 Other intangibles 7 |
Schedule of Expected Amortization Expense | The estimated amortization expense for the remainder of fiscal 2020 and each of the five succeeding fiscal years is as follows: (millions) Fiscal Year Amortization Expense 2020 $2.1 2021 3.8 2022 3.6 2023 3.1 2024 1.5 2025 1.3 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 8 Months Ended |
Sep. 05, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable | Accounts payable consisted of the following: (thousands) September 5, December 28, Accounts payable $ 26,546 $ 37,690 Accounts payable - related parties 382 368 Total accounts payable $ 26,928 $ 38,058 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 8 Months Ended |
Sep. 05, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt at September 5, 2020 and December 28, 2019 consisted of the following: (thousands) September 5, 2020 December 28, 2019 Principal amount $ 30,000 $ 30,000 Less: unamortized debt issuance costs 443 652 Long-term debt, less current maturities $ 29,557 $ 29,348 |
Segment Information (Tables)
Segment Information (Tables) | 8 Months Ended |
Sep. 05, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment results for the third quarters ended September 5, 2020, and September 7, 2019 were as follows: Third Quarter Ended, September 5, 2020 (thousands) Environmental Services Oil Business Corporate and Consolidated Revenues Service revenues $ 47,532 $ 5,725 $ — $ 53,257 Product revenues 9,597 18,925 — 28,522 Rental income 5,310 45 — 5,355 Total revenues $ 62,439 $ 24,695 $ — $ 87,134 Operating expenses Operating costs 45,383 21,742 — 67,125 Operating depreciation and amortization 2,431 2,102 — 4,533 Profit before corporate selling, general, and administrative expenses $ 14,625 $ 851 $ — $ 15,476 Selling, general, and administrative expenses 9,410 9,410 Depreciation and amortization from SG&A 1,102 1,102 Total selling, general, and administrative expenses $ 10,512 $ 10,512 Other (income) - net (441) (441) Operating income 5,405 Interest expense – net 284 284 Income before income taxes $ 5,121 Third Quarter Ended, September 7, 2019 (thousands) Environmental Services Oil Business Corporate and Consolidated Revenues Service revenues $ 54,066 $ 3,142 $ — $ 57,208 Product revenues 9,305 32,659 — 41,964 Rental income 5,620 48 — 5,668 Total revenues $ 68,991 $ 35,849 $ — $ 104,840 Operating expenses Operating costs 49,486 30,630 — 80,116 Operating depreciation and amortization 1,745 1,439 — 3,184 Profit before corporate selling, general, and administrative expenses $ 17,760 $ 3,780 $ — $ 21,540 Selling, general, and administrative expenses 11,241 11,241 Depreciation and amortization from SG&A 796 796 Total selling, general, and administrative expenses $ 12,037 $ 12,037 Other expense - net 1,020 1,020 Operating income 8,483 Interest expense – net 181 181 Income before income taxes $ 8,302 Segment results for the first three quarters ended September 5, 2020, and September 7, 2019 were as follows: First Three Quarters Ended, September 5, 2020 (thousands) Environmental Services Oil Business Corporate and Eliminations Consolidated Revenues Service revenues $ 154,589 $ 14,673 $ — $ 169,262 Product revenues 28,619 59,487 — 88,106 Rental income 16,483 65 — 16,548 Total revenues $ 199,691 $ 74,225 $ — $ 273,916 Operating expenses Operating costs 150,891 71,778 — 222,669 Operating depreciation and amortization 7,049 6,238 — 13,287 Profit (loss) before corporate selling, general, and administrative expenses $ 41,751 $ (3,791) $ — $ 37,960 Selling, general, and administrative expenses 32,066 32,066 Depreciation and amortization from SG&A 3,071 3,071 Total selling, general, and administrative expenses $ 35,137 $ 35,137 Other (income) - net (6,967) (6,967) Operating income 9,790 Interest expense – net 842 842 Income before income taxes $ 8,948 First Three Quarters Ended, September 7, 2019 (thousands) Environmental Services Oil Business Corporate and Eliminations Consolidated Revenues Service revenues $ 161,273 $ 10,249 $ — $ 171,522 Product revenues 29,620 89,504 — 119,124 Rental income 14,791 176 — 14,967 Total revenues $ 205,684 $ 99,929 $ — $ 305,613 Operating expenses Operating costs 149,024 92,425 — 241,449 Operating depreciation and amortization 5,252 4,308 — 9,560 Profit before corporate selling, general, and administrative expenses $ 51,408 $ 3,196 $ — $ 54,604 Selling, general, and administrative expenses 34,679 34,679 Depreciation and amortization from SG&A 2,616 2,616 Total selling, general, and administrative expenses $ 37,295 $ 37,295 Other expense - net 2,477 2,477 Operating income 14,832 Interest expense – net 629 629 Income before income taxes $ 14,203 |
Reconciliation of Assets from Segment to Consolidated | Total assets by segment as of September 5, 2020, and December 28, 2019 were as follows: (thousands) September 5, 2020 December 28, 2019 Total Assets: Environmental Services $ 220,897 $ 224,657 Oil Business 164,537 171,104 Unallocated Corporate Assets 68,173 75,553 Total $ 453,607 $ 471,314 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 8 Months Ended |
Sep. 05, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: For the Third Quarter Ended For the First Three Quarters Ended (thousands) September 5, September 7, September 5, September 7, Finance lease cost: Amortization of right-of-use assets $ 397 $ 25 $ 1,069 $ 25 Interest on lease liabilities 85 6 236 6 Total finance lease cost $ 482 $ 31 $ 1,305 $ 31 Operating lease cost $ 5,565 $ 5,914 $ 17,342 $ 18,366 Short-term lease cost 1,076 1,579 4,160 3,650 Variable lease cost 706 827 2,553 2,794 Total lease cost $ 7,347 $ 8,320 $ 24,055 $ 24,810 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from financing leases $ 84 $ 4 $ 229 $ 4 Operating cash flows from operating leases $ 6,058 $ 6,554 $ 18,734 $ 19,805 Financing cash flows from financing leases $ 300 $ 13 $ 762 $ 13 Right-of-use assets obtained in exchange for new finance lease liabilities $ 2,739 $ 1,487 $ 6,003 $ 1,487 Right-of-use assets obtained in exchange for new operating lease liabilities $ 545 $ 12,099 $ 2,486 $ 92,226 Weighted-average remaining lease term (years) Finance leases 6.3 6.9 Operating leases 4.7 4.8 Weighted-average discount rate Finance leases 3.2 % 3.4 % Operating leases 5.7 % 5.7 % |
Future Annual Minimum Lease Payment Commitments | Future annual minimum lease payment commitments as of September 5, 2020 were as follows: (thousands) Year 1 $ 25,140 Year 2 20,218 Year 3 15,962 Year 4 11,697 Year 5 8,362 thereafter 13,436 Total minimum lease payments $ 94,815 Less: imputed interest 11,670 Lease liability $ 83,145 |
Rental Income | Rental income was as follows: Third Quarter Ended, September 5, 2020 September 7, 2019 (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Parts Cleaning $ 5,310 $ — $ 5,310 $ 5,620 $ — $ 5,620 Railcars — — — — 35 35 Property — 45 45 — 13 13 Total rental income $ 5,310 $ 45 $ 5,355 $ 5,620 $ 48 $ 5,668 First Three Quarters Ended, September 5, 2020 September 7, 2019 (thousands) Environmental Services Oil Business Total Environmental Services Oil Business Total Parts Cleaning $ 16,483 $ — $ 16,483 $ 14,791 $ — $ 14,791 Railcars — 16 16 — 147 147 Property — 49 49 — 29 29 Total rental income $ 16,483 $ 65 $ 16,548 $ 14,791 $ 176 $ 14,967 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 8 Months Ended |
Sep. 05, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Unit Activity | The following table shows a summary of restricted share grants and expense resulting from the awards: Compensation Expense (thousands, except share amounts) First Three Quarters Ended, Unrecognized Expense as of, Recipient of Grant Grant Date Restricted Shares September 5, 2020 September 7, 2019 September 5, 2020 September 7, 2019 Members of Management February, 2017 146,564 $ — $ 249 $ — $ 118 Chief Executive Officer February, 2017 500,000 319 569 187 661 Members of Management February, 2018 116,958 373 373 193 804 Special Incentive Grant April, 2018 350,000 548 661 2,073 3,887 Board of Directors May, 2019 10,590 — 197 — 88 Members of Management May, 2019 23,560 132 136 326 500 Members of Management February, 2020 41,138 165 — 453 — Board of Directors April, 2020 14,988 197 — 88 — The following table summarizes the restricted stock activity for the first three quarters ended September 5, 2020: Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share Nonvested shares outstanding at December 28, 2019 784,579 $ 18.39 Granted 56,126 25.72 Vested (93,231) 19.24 Forfeited (50,510) 19.13 Nonvested shares outstanding at September 5, 2020 696,964 $ 16.69 |
Schedule of Restricted Stock Vesting Percentages | Vesting Table Increase in Stock Price From the Employment Commencement Date to the Vesting Date Total Percentage of Restricted Stock Less than $5 per share increase —% $5 per share increase 25% $10 per share increase 50% $15 per share increase 75% $20 or more per share increase 100% Accelerated vestings achieved to date include the following: Vesting Date Marginal Level Target Shares Fully Vested March 14, 2018 25% 62,500 June 10, 2019 50% 62,500 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 8 Months Ended |
Sep. 05, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table reconciles the number of shares outstanding for the third quarters and first three quarters of fiscal 2020 and 2019, respectively, to the number of weighted average basic shares outstanding and the number of weighted average diluted shares outstanding for the purposes of calculating basic and diluted earnings per share: Third Quarter Ended, First Three Quarters Ended, (thousands, except per share amounts) September 5, 2020 September 7, 2019 September 5, 2020 September 7, 2019 Net income $ 3,958 $ 6,056 $ 6,591 $ 10,792 Less: income attributable to noncontrolling interest — 86 — 278 Net income attributable to Heritage-Crystal Clean, Inc. common stockholders $ 3,958 $ 5,970 $ 6,591 $ 10,514 Weighted average basic shares outstanding 23,294 23,185 23,277 23,146 Dilutive shares for share–based compensation plans 185 236 179 238 Weighted average diluted shares outstanding 23,479 23,421 23,456 23,384 Net income per share: basic $ 0.17 $ 0.26 $ 0.28 $ 0.45 Net income per share: diluted $ 0.17 $ 0.25 $ 0.28 $ 0.45 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details) | 8 Months Ended |
Sep. 05, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 28, 2020 | Oct. 08, 2019 | Mar. 25, 2019 | Feb. 01, 2019 | Jan. 11, 2019 |
Gro America | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 10.1 | |||||
One subsidiary | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred | $ 2.7 | |||||
California Environmental & Litho | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 0.5 | |||||
All Valley Disposal | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 0.6 | |||||
WSS | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 0.5 | |||||
GlyEco | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 1.6 | |||||
Maximum | All Valley Disposal | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 1 |
Business Combinations - Assets
Business Combinations - Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | 8 Months Ended | ||
Sep. 05, 2020 | Sep. 07, 2019 | Dec. 28, 2019 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 37,513 | $ 32,997 | |
Net cash paid | 10,129 | $ 2,573 | |
Gro America | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 752 | ||
Inventory | 0 | ||
Property, plant, & equipment | 1,859 | ||
Equipment at customers | 0 | ||
Intangible assets | 3,080 | ||
Goodwill | 4,516 | ||
Accounts payable | (76) | ||
Total purchase price, net of cash acquired | 10,131 | ||
Less: working capital adjustment | 2 | ||
Less: contingent consideration | 0 | ||
Less: to be placed in escrow | 0 | ||
Net cash paid | 10,129 | ||
California Environmental & Litho | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 67 | ||
Inventory | 3 | ||
Property, plant, & equipment | 15 | ||
Equipment at customers | 0 | ||
Intangible assets | 445 | ||
Goodwill | 3 | ||
Accounts payable | 0 | ||
Total purchase price, net of cash acquired | 533 | ||
Less: working capital adjustment | 0 | ||
Less: contingent consideration | 120 | ||
Less: to be placed in escrow | 0 | ||
Net cash paid | 413 | ||
All Valley Disposal | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 36 | ||
Inventory | 18 | ||
Property, plant, & equipment | 252 | ||
Equipment at customers | 0 | ||
Intangible assets | 310 | ||
Goodwill | 384 | ||
Accounts payable | 0 | ||
Total purchase price, net of cash acquired | 1,000 | ||
Less: working capital adjustment | 0 | ||
Less: contingent consideration | 250 | ||
Less: to be placed in escrow | 100 | ||
Net cash paid | 650 | ||
GlyEco | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 107 | ||
Inventory | 291 | ||
Property, plant, & equipment | 746 | ||
Equipment at customers | 0 | ||
Intangible assets | 251 | ||
Goodwill | 251 | ||
Accounts payable | 0 | ||
Total purchase price, net of cash acquired | 1,646 | ||
Less: working capital adjustment | 23 | ||
Less: contingent consideration | 0 | ||
Less: to be placed in escrow | 0 | ||
Net cash paid | 1,623 | ||
WSS | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 0 | ||
Inventory | 28 | ||
Property, plant, & equipment | 154 | ||
Equipment at customers | 24 | ||
Intangible assets | 298 | ||
Goodwill | 0 | ||
Accounts payable | 0 | ||
Total purchase price, net of cash acquired | 504 | ||
Less: working capital adjustment | 0 | ||
Less: contingent consideration | 0 | ||
Less: to be placed in escrow | 0 | ||
Net cash paid | $ 504 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - Gro America and GlyEco - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2020 | Sep. 07, 2019 | Sep. 05, 2020 | Sep. 07, 2019 | |
Business Acquisition [Line Items] | ||||
Total revenues | $ 87,134 | $ 106,256 | $ 274,871 | $ 310,062 |
Net income attributable to HCCI shareholders | $ 3,958 | $ 6,238 | $ 6,706 | $ 11,295 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net (loss) income per share: basic (in dollars per share) | $ 0.17 | $ 0.27 | $ 0.29 | $ 0.49 |
Net (loss) income per share: diluted (in dollars per share) | $ 0.17 | $ 0.27 | $ 0.29 | $ 0.48 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue by Major Lines (Details) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2020 | Sep. 07, 2019 | Sep. 05, 2020 | Sep. 07, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Performance obligation timing | We do not have any material significant payment terms as payment is generally due within 30 days after the performance obligation has been satisfactorily completed. The Company has elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. In applying the guidance in Topic 606, there were no judgments or estimates made that the Company deems significant. | |||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 81,779 | $ 99,172 | $ 257,368 | $ 290,646 |
Rental income | 5,355 | 5,668 | 16,548 | 14,967 |
Total revenues | 87,134 | 104,840 | 273,916 | 305,613 |
Parts cleaning, containerized waste, & related products/services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35,480 | 38,458 | 109,053 | 116,023 |
Vacuum Services & Wastewater Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,529 | 14,507 | 38,705 | 43,105 |
Field Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,100 | 5,654 | 17,285 | 18,451 |
Antifreeze Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,649 | 4,284 | 16,887 | 12,086 |
Environmental Services - Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 371 | 468 | 1,278 | 1,228 |
Re-refinery Product Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17,409 | 29,059 | 54,896 | 80,385 |
Oil Collection Services & RFO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,161 | 5,772 | 16,109 | 16,076 |
Oil Filter Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,080 | 970 | 3,155 | 3,292 |
Environmental Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 57,129 | 63,371 | 183,208 | 190,893 |
Rental income | 5,310 | 5,620 | 16,483 | 14,791 |
Total revenues | 62,439 | 68,991 | 199,691 | 205,684 |
Environmental Services | Parts cleaning, containerized waste, & related products/services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35,480 | 38,458 | 109,053 | 116,023 |
Environmental Services | Vacuum Services & Wastewater Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,529 | 14,507 | 38,705 | 43,105 |
Environmental Services | Field Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,100 | 5,654 | 17,285 | 18,451 |
Environmental Services | Antifreeze Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,649 | 4,284 | 16,887 | 12,086 |
Environmental Services | Environmental Services - Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 371 | 468 | 1,278 | 1,228 |
Environmental Services | Re-refinery Product Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Environmental Services | Oil Collection Services & RFO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Environmental Services | Oil Filter Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Oil Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24,650 | 35,801 | 74,160 | 99,753 |
Rental income | 45 | 48 | 65 | 176 |
Total revenues | 24,695 | 35,849 | 74,225 | 99,929 |
Oil Business | Parts cleaning, containerized waste, & related products/services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Oil Business | Vacuum Services & Wastewater Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Oil Business | Field Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Oil Business | Antifreeze Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Oil Business | Environmental Services - Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Oil Business | Re-refinery Product Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17,409 | 29,059 | 54,896 | 80,385 |
Oil Business | Oil Collection Services & RFO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,161 | 5,772 | 16,109 | 16,076 |
Oil Business | Oil Filter Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,080 | $ 970 | $ 3,155 | $ 3,292 |
Revenue - Contract Assets and C
Revenue - Contract Assets and Contract Liabilities from Contracts with Customers (Details) - USD ($) | 3 Months Ended | 8 Months Ended | |
Sep. 05, 2020 | Sep. 05, 2020 | Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 46,000 | $ 46,000 | $ 64,000 |
Contract liabilities | 2,314,000 | 2,314,000 | 2,316,000 |
Contract liabilities - net | 2,268,000 | 2,268,000 | $ 2,252,000 |
Revenue recognized | $ 0 | $ 2,300,000 |
Accounts Receivable - Component
Accounts Receivable - Components of Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 05, 2020 | Dec. 28, 2019 | Dec. 29, 2018 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |||
Trade | $ 46,134 | $ 54,420 | |
Less: allowance for doubtful accounts | 2,165 | 2,221 | $ 1,816 |
Trade - net | 43,969 | 52,199 | |
Related parties | 3,024 | 1,560 | |
Other | 1,884 | 1,827 | |
Total accounts receivable - net | $ 48,877 | $ 55,586 |
Accounts Receivable - Allowance
Accounts Receivable - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended | |
Sep. 05, 2020 | Sep. 07, 2019 | Dec. 28, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 2,221 | $ 1,816 | $ 1,816 |
Provision for bad debts | 1,210 | $ 829 | 1,486 |
Accounts written off, net of recoveries | (1,266) | (1,081) | |
Balance at end of period | $ 2,165 | $ 2,221 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 05, 2020 | Dec. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Used oil and processed oil | $ 7,291 | $ 8,349 |
Solvents and solutions | 6,327 | 8,694 |
Machines | 5,328 | 5,440 |
Drums and supplies | 4,091 | 4,697 |
Other | 2,188 | 2,632 |
Total inventory | 25,225 | 29,812 |
Less: machine refurbishing reserve | 390 | 439 |
Total inventory - net | $ 24,835 | $ 29,373 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | |||
Sep. 05, 2020 | Sep. 07, 2019 | Sep. 05, 2020 | Sep. 07, 2019 | Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |||||
Machinery, vehicles, and equipment | $ 129,420 | $ 129,420 | $ 127,242 | ||
Buildings and storage tanks | 71,928 | 71,928 | 71,616 | ||
Land | 9,664 | 9,664 | 9,664 | ||
Leasehold improvements | 6,733 | 6,733 | 6,523 | ||
Construction in progress | 15,293 | 15,293 | 7,958 | ||
Assets held for sale | 0 | 0 | 4 | ||
Total property, plant and equipment | 233,038 | 233,038 | 223,007 | ||
Less: accumulated depreciation | 75,565 | 75,565 | 68,096 | ||
Property, plant and equipment - net | 157,473 | 157,473 | 154,911 | ||
Equipment at customers | 80,654 | 80,654 | 77,914 | ||
Less: accumulated depreciation | 57,194 | 57,194 | 53,682 | ||
Equipment at customers - net | 23,460 | 23,460 | $ 24,232 | ||
Depreciation expense | $ 4,600 | $ 3,300 | $ 13,400 | $ 9,700 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles Assets - Narrative (Details) $ in Millions | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2020USD ($) | Sep. 07, 2019USD ($) | Sep. 05, 2020USD ($)reporting_unit | Sep. 07, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Number of reporting units | reporting_unit | 2 | |||
Amortization of intangible assets | $ | $ 1.1 | $ 0.7 | $ 2.9 | $ 2.5 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 8 Months Ended | |
Sep. 05, 2020 | Dec. 28, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 41,465 | $ 36,949 |
Accumulated impairment loss | (3,952) | (3,952) |
Goodwill [Roll Forward] | ||
Net book value, beginning balance | 32,997 | |
Acquisitions | 0 | |
Measurement period and other adjustments | 0 | |
Net book value, ending balance | 37,513 | |
Oil Business | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 3,952 | 3,952 |
Accumulated impairment loss | (3,952) | (3,952) |
Goodwill [Roll Forward] | ||
Net book value, beginning balance | 0 | |
Acquisitions | 0 | |
Measurement period and other adjustments | 0 | |
Net book value, ending balance | 0 | |
Environmental Services | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 37,513 | 32,997 |
Accumulated impairment loss | 0 | $ 0 |
Goodwill [Roll Forward] | ||
Net book value, beginning balance | 32,997 | |
Acquisitions | 4,516 | |
Measurement period and other adjustments | 0 | |
Net book value, ending balance | $ 37,513 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Intangibles (Details) - USD ($) $ in Thousands | 8 Months Ended | |
Sep. 05, 2020 | Dec. 28, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 44,767 | $ 40,718 |
Accumulated Amortization | 26,765 | 23,826 |
Net Carrying Amount | 18,002 | 16,892 |
Customer & supplier relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 28,185 | 25,551 |
Accumulated Amortization | 16,059 | 13,886 |
Net Carrying Amount | $ 12,126 | 11,665 |
Weighted Average Useful Life (years) | 11 years | |
Software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 9,062 | 8,093 |
Accumulated Amortization | 5,380 | 4,887 |
Net Carrying Amount | $ 3,682 | 3,206 |
Weighted Average Useful Life (years) | 9 years | |
Non-compete agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,049 | 3,603 |
Accumulated Amortization | 3,199 | 3,068 |
Net Carrying Amount | $ 850 | 535 |
Weighted Average Useful Life (years) | 5 years | |
Patents, formulae, and licenses | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,769 | 1,769 |
Accumulated Amortization | 827 | 774 |
Net Carrying Amount | $ 942 | 995 |
Weighted Average Useful Life (years) | 15 years | |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,702 | 1,702 |
Accumulated Amortization | 1,300 | 1,211 |
Net Carrying Amount | $ 402 | $ 491 |
Weighted Average Useful Life (years) | 7 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles Assets - Schedule of Expected Amortization Expense (Details) $ in Millions | Sep. 05, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 2.1 |
2021 | 3.8 |
2022 | 3.6 |
2023 | 3.1 |
2024 | 1.5 |
2025 | $ 1.3 |
Accounts Payable (Details)
Accounts Payable (Details) - USD ($) $ in Thousands | Sep. 05, 2020 | Dec. 28, 2019 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 26,546 | $ 37,690 |
Accounts payable - related parties | 382 | 368 |
Total accounts payable | $ 26,928 | $ 38,058 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Narrative (Details) | Feb. 21, 2017USD ($) | Sep. 05, 2020USD ($) | Sep. 07, 2019USD ($) | Sep. 05, 2020USD ($) | Sep. 07, 2019USD ($) | Dec. 28, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Interest costs incurred | $ 300,000 | $ 300,000 | $ 1,200,000 | $ 1,200,000 | ||
Amortization of debt issuance costs | $ 100,000 | $ 100,000 | $ 200,000 | |||
Weighted average interest rate | 3.20% | 4.30% | 3.20% | 4.30% | ||
Letters of credit outstanding | $ 4,000,000 | $ 4,000,000 | $ 1,100,000 | |||
Current borrowing capacity | 61,000,000 | 61,000,000 | $ 63,900,000 | |||
Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Interest costs incurred | $ 300,000 | $ 300,000 | $ 1,000,000 | |||
Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Minimum interest coverage ratio | 3.5 | |||||
Maximum total leverage ratio | 3 | |||||
Aggregate consideration limit | $ 10,000,000 | |||||
Leverage ratio at time of acquisition | 3.25 | |||||
Capital expenditures covenant limit | $ 100,000,000 | |||||
Percentage of EBITDA | 35.00% | |||||
Credit Agreement | Bank Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 95,000,000 | |||||
Credit Agreement | Bank Credit Facility | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Credit Agreement | Bank Credit Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Credit Agreement | Bank Credit Facility | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
Credit Agreement | Bank Credit Facility | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.75% | |||||
Credit Agreement | Bank Credit Facility | Bank of America's Prime Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.75% | |||||
Credit Agreement | Bank Credit Facility | Bank of America's Prime Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
Credit Agreement | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 30,000,000 | |||||
Credit Agreement | Revolving Loan Portion | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 65,000,000 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Summary of Debt (Details) - USD ($) $ in Thousands | Sep. 05, 2020 | Dec. 28, 2019 |
Debt Disclosure [Abstract] | ||
Principal amount | $ 30,000 | $ 30,000 |
Less: unamortized debt issuance costs | 443 | 652 |
Long-term debt, less current maturities | $ 29,557 | $ 29,348 |
Segment Information - Operating
Segment Information - Operating Segment Results (Details) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2020USD ($) | Sep. 07, 2019USD ($) | Sep. 05, 2020USD ($)segment | Sep. 07, 2019USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Revenues | ||||
Revenues | $ 81,779 | $ 99,172 | $ 257,368 | $ 290,646 |
Rental income | 5,355 | 5,668 | 16,548 | 14,967 |
Total revenues | 87,134 | 104,840 | 273,916 | 305,613 |
Operating expenses | ||||
Operating costs | 67,125 | 80,116 | 222,669 | 241,449 |
Operating depreciation and amortization | 4,533 | 3,184 | 13,287 | 9,560 |
Profit before corporate selling, general, and administrative expenses | 15,476 | 21,540 | 37,960 | 54,604 |
Selling, general, and administrative expenses | 9,410 | 11,241 | 32,066 | 34,679 |
Depreciation and amortization from SG&A | 1,102 | 796 | 3,071 | 2,616 |
Total selling, general, and administrative expenses | 10,512 | 12,037 | 35,137 | 37,295 |
Other (income) expense - net | (441) | 1,020 | (6,967) | 2,477 |
Operating income | 5,405 | 8,483 | 9,790 | 14,832 |
Interest expense – net | 284 | 181 | 842 | 629 |
Income before income taxes | 5,121 | 8,302 | 8,948 | 14,203 |
Corporate and Eliminations | ||||
Revenues | ||||
Rental income | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Operating expenses | ||||
Operating costs | 0 | 0 | 0 | 0 |
Operating depreciation and amortization | 0 | 0 | 0 | 0 |
Profit before corporate selling, general, and administrative expenses | 0 | 0 | 0 | 0 |
Selling, general, and administrative expenses | 9,410 | 11,241 | 32,066 | 34,679 |
Depreciation and amortization from SG&A | 1,102 | 796 | 3,071 | 2,616 |
Total selling, general, and administrative expenses | 10,512 | 12,037 | 35,137 | 37,295 |
Other (income) expense - net | (441) | 1,020 | (6,967) | 2,477 |
Interest expense – net | 284 | 181 | 842 | 629 |
Environmental Services | ||||
Revenues | ||||
Revenues | 57,129 | 63,371 | 183,208 | 190,893 |
Rental income | 5,310 | 5,620 | 16,483 | 14,791 |
Total revenues | 62,439 | 68,991 | 199,691 | 205,684 |
Environmental Services | Segments | ||||
Revenues | ||||
Rental income | 5,310 | 5,620 | 16,483 | 14,791 |
Total revenues | 62,439 | 68,991 | 199,691 | 205,684 |
Operating expenses | ||||
Operating costs | 45,383 | 49,486 | 150,891 | 149,024 |
Operating depreciation and amortization | 2,431 | 1,745 | 7,049 | 5,252 |
Profit before corporate selling, general, and administrative expenses | 14,625 | 17,760 | 41,751 | 51,408 |
Oil Business | ||||
Revenues | ||||
Revenues | 24,650 | 35,801 | 74,160 | 99,753 |
Rental income | 45 | 48 | 65 | 176 |
Total revenues | 24,695 | 35,849 | 74,225 | 99,929 |
Oil Business | Segments | ||||
Revenues | ||||
Rental income | 45 | 48 | 65 | 176 |
Total revenues | 24,695 | 35,849 | 74,225 | 99,929 |
Operating expenses | ||||
Operating costs | 21,742 | 30,630 | 71,778 | 92,425 |
Operating depreciation and amortization | 2,102 | 1,439 | 6,238 | 4,308 |
Profit before corporate selling, general, and administrative expenses | 851 | 3,780 | (3,791) | 3,196 |
Service revenues | ||||
Revenues | ||||
Revenues | 53,257 | 57,208 | 169,262 | 171,522 |
Service revenues | Corporate and Eliminations | ||||
Revenues | ||||
Revenues | 0 | 0 | 0 | 0 |
Service revenues | Environmental Services | Segments | ||||
Revenues | ||||
Revenues | 47,532 | 54,066 | 154,589 | 161,273 |
Service revenues | Oil Business | Segments | ||||
Revenues | ||||
Revenues | 5,725 | 3,142 | 14,673 | 10,249 |
Product revenues | ||||
Revenues | ||||
Revenues | 28,522 | 41,964 | 88,106 | 119,124 |
Product revenues | Corporate and Eliminations | ||||
Revenues | ||||
Revenues | 0 | 0 | 0 | 0 |
Product revenues | Environmental Services | Segments | ||||
Revenues | ||||
Revenues | 9,597 | 9,305 | 28,619 | 29,620 |
Product revenues | Oil Business | Segments | ||||
Revenues | ||||
Revenues | $ 18,925 | $ 32,659 | $ 59,487 | $ 89,504 |
Segment Information - Assets by
Segment Information - Assets by Segment (Details) - USD ($) $ in Thousands | Sep. 05, 2020 | Dec. 28, 2019 |
Segment Reporting Information [Line Items] | ||
Assets | $ 453,607 | $ 471,314 |
Segments | Environmental Services | ||
Segment Reporting Information [Line Items] | ||
Assets | 220,897 | 224,657 |
Segments | Oil Business | ||
Segment Reporting Information [Line Items] | ||
Assets | 164,537 | 171,104 |
Unallocated Corporate Assets | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 68,173 | $ 75,553 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Sep. 05, 2020 | Dec. 28, 2019 |
Lessee, Lease, Description [Line Items] | ||
Remaining amount committed | $ 19.9 | $ 28.3 |
Loss contingency accrual | $ 3.9 | $ 4 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 month | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 11 years | |
Lease renewal term | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2020 | Sep. 07, 2019 | Sep. 05, 2020 | Sep. 07, 2019 | |
Finance lease cost: | ||||
Amortization of right-of-use assets | $ 397 | $ 25 | $ 1,069 | $ 25 |
Interest on lease liabilities | 85 | 6 | 236 | 6 |
Total finance lease cost | 482 | 31 | 1,305 | 31 |
Operating lease cost | 5,565 | 5,914 | 17,342 | 18,366 |
Short-term lease cost | 1,076 | 1,579 | 4,160 | 3,650 |
Variable lease cost | 706 | 827 | 2,553 | 2,794 |
Total lease cost | 7,347 | 8,320 | 24,055 | 24,810 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from financing leases | 84 | 4 | 229 | 4 |
Operating cash flows from operating leases | 6,058 | 6,554 | 18,734 | 19,805 |
Financing cash flows from financing leases | 300 | 13 | 762 | 13 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 2,739 | 1,487 | 6,003 | 1,487 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 545 | $ 12,099 | $ 2,486 | $ 92,226 |
Weighted-average remaining lease term (years) | ||||
Finance leases | 6 years 3 months 18 days | 6 years 10 months 24 days | 6 years 3 months 18 days | 6 years 10 months 24 days |
Operating leases | 4 years 8 months 12 days | 4 years 9 months 18 days | 4 years 8 months 12 days | 4 years 9 months 18 days |
Weighted-average discount rate | ||||
Finance leases | 3.20% | 3.40% | 3.20% | 3.40% |
Operating leases | 5.70% | 5.70% | 5.70% | 5.70% |
Commitments and Contingencies_3
Commitments and Contingencies - Future Annual Minimum Lease Payment Commitments (Details) $ in Thousands | Sep. 05, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Year 1 | $ 25,140 |
Year 2 | 20,218 |
Year 3 | 15,962 |
Year 4 | 11,697 |
Year 5 | 8,362 |
thereafter | 13,436 |
Total minimum lease payments | 94,815 |
Less: imputed interest | 11,670 |
Lease liability | $ 83,145 |
Commitments and Contingencies_4
Commitments and Contingencies - Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2020 | Sep. 07, 2019 | Sep. 05, 2020 | Sep. 07, 2019 | |
Lessor, Lease, Description [Line Items] | ||||
Rental income | $ 5,355 | $ 5,668 | $ 16,548 | $ 14,967 |
Environmental Services | ||||
Lessor, Lease, Description [Line Items] | ||||
Rental income | 5,310 | 5,620 | 16,483 | 14,791 |
Oil Business | ||||
Lessor, Lease, Description [Line Items] | ||||
Rental income | 45 | 48 | 65 | 176 |
Parts Cleaning | ||||
Lessor, Lease, Description [Line Items] | ||||
Rental income | 5,310 | 5,620 | 16,483 | 14,791 |
Parts Cleaning | Environmental Services | ||||
Lessor, Lease, Description [Line Items] | ||||
Rental income | 5,310 | 5,620 | 16,483 | 14,791 |
Parts Cleaning | Oil Business | ||||
Lessor, Lease, Description [Line Items] | ||||
Rental income | 0 | 0 | 0 | 0 |
Railcars | ||||
Lessor, Lease, Description [Line Items] | ||||
Rental income | 0 | 35 | 16 | 147 |
Railcars | Environmental Services | ||||
Lessor, Lease, Description [Line Items] | ||||
Rental income | 0 | 0 | 0 | 0 |
Railcars | Oil Business | ||||
Lessor, Lease, Description [Line Items] | ||||
Rental income | 0 | 35 | 16 | 147 |
Property | ||||
Lessor, Lease, Description [Line Items] | ||||
Rental income | 45 | 13 | 49 | 29 |
Property | Environmental Services | ||||
Lessor, Lease, Description [Line Items] | ||||
Rental income | 0 | 0 | 0 | 0 |
Property | Oil Business | ||||
Lessor, Lease, Description [Line Items] | ||||
Rental income | $ 45 | $ 13 | $ 49 | $ 29 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2020 | Sep. 07, 2019 | Sep. 05, 2020 | Sep. 07, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss | $ 21.7 | $ 21.7 | ||
Deferred tax asset, state and federal NOL | $ 5.1 | $ 5.1 | ||
Effective tax rate | 22.70% | 27.10% | 26.30% | 24.00% |
Reserve balance | $ 2.7 | $ 2.7 | ||
2011 | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss | 1.1 | 1.1 | ||
2012 - 2019 | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss | $ 20.6 | $ 20.6 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock Compensation/Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 8 Months Ended |
Feb. 28, 2017 | Sep. 05, 2020 | |
Mr. Recatto | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Closing share price as of employment commencement date (in dollars per share) | $ 15 | |
Restricted stock | Board of Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 1 year | |
Restricted stock | Members of Management | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 3 years | |
Restricted stock | Mr. Recatto | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 180 days | |
Grants in period (in shares) | 500,000 | |
Vesting threshold (in dollars per share) | $ 5 | |
Shares vested upon achievement of share price threshold (in shares) | 0 | |
Compensation expense | $ 0.3 | |
Unrecognized compensation expense | $ 0.3 | |
Risk-free rate | 1.70% | |
Expected dividend yield | 0.00% | |
Expected volatility rate | 41.73% | |
Vesting percentage | 50.00% |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Restricted Stock Unit Activity (Details) - USD ($) $ in Thousands | 1 Months Ended | 8 Months Ended | ||||||
Apr. 30, 2020 | Feb. 29, 2020 | May 31, 2019 | Apr. 30, 2018 | Feb. 28, 2018 | Feb. 28, 2017 | Sep. 05, 2020 | Sep. 07, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares granted (in shares) | 56,126 | |||||||
Restricted stock | April, 2018 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares granted (in shares) | 350,000 | |||||||
Compensation Expense | $ 548 | $ 661 | ||||||
Unrecognized Expense | 2,073 | 3,887 | ||||||
Restricted stock | Members of Management | February, 2017 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares granted (in shares) | 146,564 | |||||||
Compensation Expense | 0 | 249 | ||||||
Unrecognized Expense | 0 | 118 | ||||||
Restricted stock | Members of Management | February, 2018 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares granted (in shares) | 116,958 | |||||||
Compensation Expense | 373 | 373 | ||||||
Unrecognized Expense | 193 | 804 | ||||||
Restricted stock | Members of Management | May, 2019 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares granted (in shares) | 23,560 | |||||||
Compensation Expense | 132 | 136 | ||||||
Unrecognized Expense | 326 | 500 | ||||||
Restricted stock | Members of Management | February, 2020 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares granted (in shares) | 41,138 | |||||||
Compensation Expense | 165 | 0 | ||||||
Unrecognized Expense | 453 | 0 | ||||||
Restricted stock | Chief Executive Officer | February, 2017 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares granted (in shares) | 500,000 | |||||||
Compensation Expense | 319 | 569 | ||||||
Unrecognized Expense | 187 | 661 | ||||||
Restricted stock | Board of Directors | May, 2019 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares granted (in shares) | 10,590 | |||||||
Compensation Expense | 0 | 197 | ||||||
Unrecognized Expense | 0 | 88 | ||||||
Restricted stock | Board of Directors | April, 2020 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares granted (in shares) | 14,988 | |||||||
Compensation Expense | 197 | 0 | ||||||
Unrecognized Expense | $ 88 | $ 0 |
Share-based Compensation - Re_2
Share-based Compensation - Restricted Stock Vesting Schedule by Percentage (Details) - $ / shares | Jun. 10, 2019 | May 14, 2018 | Feb. 28, 2017 | Sep. 05, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested (in shares) | 93,231 | |||
Mr. Recatto | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Percentage of Restricted Stock Shares to Be Vested | 50.00% | |||
Mr. Recatto | Restricted stock | Less than $5 per share increase | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Increase in stock price from employment commencement date (in dollars per share) | $ 5 | |||
Total Percentage of Restricted Stock Shares to Be Vested | 0.00% | |||
Mr. Recatto | Restricted stock | $5 per share increase | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Increase in stock price from employment commencement date (in dollars per share) | $ 5 | |||
Total Percentage of Restricted Stock Shares to Be Vested | 25.00% | 25.00% | ||
Vested (in shares) | 62,500 | |||
Mr. Recatto | Restricted stock | $10 per share increase | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Increase in stock price from employment commencement date (in dollars per share) | $ 10 | |||
Total Percentage of Restricted Stock Shares to Be Vested | 50.00% | 50.00% | ||
Vested (in shares) | 62,500 | |||
Mr. Recatto | Restricted stock | $15 per share increase | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Increase in stock price from employment commencement date (in dollars per share) | $ 15 | |||
Total Percentage of Restricted Stock Shares to Be Vested | 75.00% | |||
Mr. Recatto | Restricted stock | $20 or more per share increase | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Increase in stock price from employment commencement date (in dollars per share) | $ 20 | |||
Total Percentage of Restricted Stock Shares to Be Vested | 100.00% |
Share-based Compensation - Nonv
Share-based Compensation - Nonvested Restricted Stock (Details) | 8 Months Ended |
Sep. 05, 2020$ / sharesshares | |
Number of Shares | |
Nonvested shares outstanding at Beginning of Period (in shares) | shares | 784,579 |
Granted (in shares) | shares | 56,126 |
Vested (in shares) | shares | (93,231) |
Forfeited (in shares) | shares | (50,510) |
Nonvested shares outstanding at End of Period (in shares) | shares | 696,964 |
Weighted Average Grant-Date Fair Value Per Share | |
Nonvested shares outstanding at Beginning of Period (in dollars per share) | $ / shares | $ 18.39 |
Granted (in dollars per share) | $ / shares | 25.72 |
Vested (in dollars per share) | $ / shares | 19.24 |
Forfeited (in dollars per share) | $ / shares | 19.13 |
Nonvested shares outstanding at End of Period (in dollars per share) | $ / shares | $ 16.69 |
Share-based Compensation - Empl
Share-based Compensation - Employee Stock Purchase Plan (Details) - $ / shares | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2020 | Sep. 07, 2019 | Sep. 05, 2020 | Sep. 07, 2019 | |
Common stock | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Issuance of common stock – ESPP (in shares) | 7,299 | 4,789 | 20,560 | 14,240 |
Employee Stock Purchase Plan | Employee stock | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Shares available employee stock purchase plan (in shares) | 89,025 | 89,025 | ||
Weighted average fair value per share ESPP (in dollars per share) | $ 19.14 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2020 | Sep. 07, 2019 | Sep. 05, 2020 | Sep. 07, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 3,958 | $ 6,056 | $ 6,591 | $ 10,792 |
Less: income attributable to noncontrolling interest | 0 | 86 | 0 | 278 |
Net income attributable to Heritage-Crystal Clean, Inc. common stockholders | $ 3,958 | $ 5,970 | $ 6,591 | $ 10,514 |
Weighted average basic shares outstanding (in shares) | 23,294 | 23,185 | 23,277 | 23,146 |
Dilutive shares for share–based compensation plans (in shares) | 185 | 236 | 179 | 238 |
Weighted average diluted shares outstanding (in shares) | 23,479 | 23,421 | 23,456 | 23,384 |
Net (loss) income per share: basic (in dollars per share) | $ 0.17 | $ 0.26 | $ 0.28 | $ 0.45 |
Net (loss) income per share: diluted (in dollars per share) | $ 0.17 | $ 0.25 | $ 0.28 | $ 0.45 |
Other (Income) Expense - Net (D
Other (Income) Expense - Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2020 | Sep. 07, 2019 | Sep. 05, 2020 | Sep. 07, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Other (income) expense - net | $ (441) | $ 1,020 | $ (6,967) | $ 2,477 |
Reversal of provision for class action settlement in excess of payout | $ 6,502 | 0 | ||
Site closure | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other (income) expense - net | $ 1,500 |