Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 27, 2021 | May 03, 2021 | |
Entity Information [Line Items] | ||
Entity File Number | 001-35588 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-3561876 | |
Title of 12(b) Security | Common stock, par value $.01 per share | |
Trading Symbol | FRG | |
Entity Registrant Name | Franchise Group, Inc. | |
Entity Address, Address Line One | 2387 Liberty Way | |
Entity Address, City or Town | Virginia Beach, | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23456 | |
City Area Code | 757) | |
Local Phone Number | 493-8855 | |
Entity Central Index Key | 0001528930 | |
Document Type | 10-Q | |
Document Annual Report | true | |
Document Period End Date | Mar. 27, 2021 | |
Document Transition Report | false | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-25 | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Entity Interactive Data Current | Yes | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 40,167,102 | |
Series A Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 7.50% Series A Cumulative Preferred Stock, par value $0.01 per share and liquidation preference of $25.00 per share | |
Trading Symbol | FRGAP | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 164,858 | $ 148,780 |
Receivables: | ||
Total Receivables, Current, Net | 88,263 | 67,335 |
Income taxes receivable | 15,505 | 13,649 |
Inventory, Net | 447,811 | 302,307 |
Assets Held-for-sale, Not Part of Disposal Group, Current | 138,319 | 43,023 |
Other current assets | 22,357 | 13,997 |
Total current assets | 861,608 | 575,442 |
Property, equipment, and software, net | 212,983 | 135,872 |
Accounts and Financing Receivable, after Allowance for Credit Loss, Noncurrent | 11,706 | 12,800 |
Goodwill | 786,685 | 448,258 |
Operating Lease, Right-of-Use Asset | 659,482 | 502,104 |
Assets Held-for-sale, Not Part of Disposal Group, Noncurrent | 0 | 55,116 |
Other intangible assets, net | 314,413 | 109,892 |
Other assets | 15,060 | 8,428 |
Total assets | 2,861,937 | 1,847,912 |
Current liabilities: | ||
Current installments of long-term obligations | 12,014 | 104,053 |
Operating Lease, Liability, Current | 155,949 | 127,032 |
Accounts payable and accrued expenses | 338,450 | 252,389 |
Liabilities Held-For-sale, Not Part Of Disposal Group, Current | 47,515 | 40,576 |
Deferred revenue - current | 37,635 | 25,174 |
Total current liabilities | 591,563 | 549,224 |
Long-term Debt and Lease Obligation | 517,573 | 402,276 |
Liabilities Held-For-sale, Not Part of Disposal Group, Noncurrent | 0 | 8,779 |
Total liabilities | 2,398,477 | 1,462,745 |
Equity: | ||
Additional paid-in capital | 464,106 | 382,383 |
Accumulated other comprehensive loss, net of taxes | (1,112) | (1,399) |
Retained earnings | 19 | 3,769 |
Total equity attributable to Liberty Tax, Inc. | 463,460 | 385,167 |
Noncontrolling Interest in Variable Interest Entity | 0 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 463,460 | 385,167 |
Total liabilities and equity | 2,861,937 | 1,847,912 |
Long-term Debt, Excluding Current Maturities | 1,243,132 | 466,944 |
Other Liabilities, Noncurrent | 46,209 | 35,522 |
Special voting preferred stock | ||
Equity: | ||
Preferred stock | 45 | 13 |
Class A common stock | ||
Equity: | ||
Common stock | 402 | 401 |
Total equity attributable to Liberty Tax, Inc. | $ 402 | $ 401 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 5,445 | $ 4,166 |
Liabilities Held-For-sale, Not Part Of Disposal Group, Current | $ 47,515 | $ 40,576 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Preferred Stock, Shares Issued | 4,541,125 | 4,541,125 |
Preferred Stock, Shares Outstanding | 1,250,000 | 1,250,000 |
Class A common stock | ||
Common Stock, Value, Issued | $ 402 | $ 401 |
Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 40,157,102 | 40,092,260 |
Common Stock, Shares Authorized | 180,000,000 | 180,000,000 |
Common Stock, Shares, Outstanding | 40,157,102 | 40,092,260 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Class of Stock [Line Items] | ||
Net Income (Loss) Available to Common Stockholders, Basic | $ 11,684,000 | $ 59,539,000 |
Cost of Goods and Services Sold | 342,824,000 | 294,516,000 |
Cost of Goods Sold, Leases | 3,005,000 | 5,942,000 |
Revenues: | ||
Lease Income | 8,953,000 | 16,420,000 |
Total revenues | 621,345,000 | 502,947,000 |
Operating expenses: | ||
Selling, general, and administrative expenses | 225,545,000 | 211,276,000 |
Total operating expenses | 568,369,000 | 505,792,000 |
Loss from operations | 52,976,000 | (2,845,000) |
Other income (expense): | ||
Foreign currency transaction gain | (36,726,000) | (4,021,000) |
Interest expense | (47,435,000) | (24,511,000) |
Loss before income taxes | (31,185,000) | (31,377,000) |
Income tax benefit | (2,851,000) | (55,921,000) |
Income (loss) from continuing operations | (28,334,000) | 24,544,000 |
Income from discontinued operations, net of tax | 42,147,000 | 37,354,000 |
Net Income (Loss) Attributable to Noncontrolling Interest | 13,813,000 | 61,898,000 |
Less: Net (income) attributable to non-controlling interest | 0 | (2,359,000) |
Net loss | 13,813,000 | 59,539,000 |
Net income (loss) from continuing operations | (28,334,000) | 33,984,000 |
Net income from discontinued operations | $ 42,147,000 | $ 25,555,000 |
Basic earnings (loss) per share: | ||
Continuing operations | $ (0.76) | $ 1.45 |
Discontinued operations | 1.05 | 1.09 |
Total basic earnings per share | 0.29 | 2.54 |
Diluted earnings (loss) per share: | ||
Continuing operations | (0.76) | 1.43 |
Discontinued operations | 1.05 | 1.08 |
Total diluted earnings per share | $ 0.29 | $ 2.51 |
Weighted Average Number of Shares Outstanding, Basic | 40,110,084 | 23,373,980 |
Weighted Average Number of Shares Outstanding, Diluted | 40,110,084 | 23,693,035 |
Common Class A [Member] | ||
Other income (expense): | ||
Net income (loss) from continuing operations | $ (28,334,000) | |
Diluted earnings (loss) per share: | ||
Weighted Average Number of Shares Outstanding, Basic | 40,110,084 | 23,373,980 |
Service [Member] | ||
Class of Stock [Line Items] | ||
Cost of Goods and Services Sold | $ 405,000 | $ 756,000 |
Revenues: | ||
Total revenues | 28,576,000 | 13,022,000 |
Product [Member] | ||
Class of Stock [Line Items] | ||
Cost of Goods and Services Sold | 339,414,000 | 287,818,000 |
Revenues: | ||
Total revenues | $ 583,816,000 | $ 473,505,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Net income | $ 13,813,000 | $ 61,898,000 |
Other Comprehensive Income (Loss), Net of Tax | 287,000 | (943,000) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 48,000 | (73,000) |
Net loss | (13,813,000) | (59,539,000) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | 223,000 | (872,000) |
Other Comprehensive Income Loss From Forward Contracts Net of Tax | 16,000 | 2,000 |
Other comprehensive gain (loss) | 14,100,000 | 58,771,000 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 2,184,000 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | $ 14,100,000 | $ 60,955,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss parentheticals - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ 13 | $ (29) |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders Equity Statement - USD ($) shares in Thousands | Total | Common Class A [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total Equity [Member] | Noncontrolling Interest [Member] |
Shares, Outstanding | 18,250 | 1,887 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 151,761,000 | |||||||
Stockholders' Equity Attributable to Parent | $ 183,000 | $ 19,000 | $ 108,339,000 | $ (1,538,000) | $ 18,388,000 | $ 125,391,000 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 26,370,000 | |||||||
Acquisition Costs, Period Cost, attributable to parent | 3,826,000 | |||||||
Noncontrolling Interest in Period, Value | (2,358,000) | 3,826,000 | ||||||
Net Income (Loss) Attributable to Parent | 61,898,000 | 59,539,000 | 59,539,000 | 2,359,000 | ||||
Other Comprehensive Income (Loss), Net of Tax | (943,000) | (768,000) | (768,000) | (175,000) | ||||
Common Stock, Preferred converted, Value | 39,000 | |||||||
Preferred Stock, Converted to Common, Value | (248,000) | $ (8,000) | (279,000) | (248,000) | ||||
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition | 2,449,000 | 3,000 | 2,449,000 | 2,449,000 | ||||
Dividends | $ (6,633,000) | (6,633,000) | (6,633,000) | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.25 | |||||||
Adjustment to Stockholder Equity | 2,358,000 | 2,358,000 | (2,358,000) | |||||
Acquisition, Common stock, issued during period, shares | 7,462,000 | |||||||
Acquisition, Common stock, issued during period, value | $ 123,094,000 | $ 75,000 | 123,019,000 | 123,094,000 | ||||
Shares, Outstanding | 29,653 | 1,099 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 329,020,000 | |||||||
Common Stock, Preferred converted, Shares | 3,938 | |||||||
Preferred Stock, Converted to Common, Shares | (788) | |||||||
Stockholders' Equity Attributable to Parent | $ 297,000 | $ 11,000 | 237,354,000 | (2,306,000) | 73,652,000 | 309,008,000 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 20,012,000 | |||||||
Shares, Outstanding | 40,092 | 1,250 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 385,167,000 | |||||||
Stockholders' Equity Attributable to Parent | 385,167,000 | $ 401,000 | $ 13,000 | 382,383,000 | (1,399,000) | 3,769,000 | 385,167,000 | |
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | |||||||
Net Income (Loss) Attributable to Parent | 13,813,000 | 13,813,000 | 13,813,000 | |||||
Other Comprehensive Income (Loss), Net of Tax | 287,000 | 287,000 | 287,000 | 0 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 25,000 | $ 0 | 25,000 | 25,000 | ||||
Stock Issued During Period, Shares, Acquisitions | 62 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 3 | |||||||
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition | 2,190,000 | $ 1,000 | 2,189,000 | 2,190,000 | ||||
preferred stock, issued during period, shares | 3,291 | |||||||
Dividends | (15,434,000) | (15,434,000) | ||||||
preferred stock, issued during period, value | $ 79,541,000 | $ 32,000 | 79,509,000 | 79,541,000 | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.375 | |||||||
Preferred Stock, Dividend Rate, Percentage | 7.50% | |||||||
Dividends, Preferred Stock, Cash | $ (2,129,000) | (2,129,000) | (2,129,000) | |||||
Shares, Outstanding | 40,157 | 4,541 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 463,460,000 | |||||||
Stockholders' Equity Attributable to Parent | $ 463,460,000 | $ 402,000 | $ 45,000 | $ 464,106,000 | $ (1,112,000) | $ 19,000 | $ 463,460,000 | |
Stockholders' Equity Attributable to Noncontrolling Interest | $ 0 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Operating Activities | ||
Net income | $ 13,813,000 | $ 61,898,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for doubtful accounts | 710,000 | 1,672,000 |
Depreciation, amortization and impairment charges | 14,176,000 | 15,927,000 |
Amortization of Debt Issuance Costs | 30,973,000 | 11,744,000 |
Gain (Loss) on Disposition of Other Assets | (62,000) | 0 |
Stock-based compensation expense - equity awards | 2,550,000 | 2,485,000 |
Gain on bargain purchases and sales of Company-owned offices | (623,000) | (808,000) |
Income (Loss) from Equity Method Investments | 0 | 88,000 |
Equity in loss of affiliate | 0 | 5,010,000 |
Prepayment penalty for early debt extinguishment | 36,726,000 | 0 |
Increase (Decrease) in Income Taxes Payable | (1,032,000) | (51,857,000) |
Changes in other assets and liabilities | ||
Increase (Decrease) in Deferred Revenue | 4,175,000 | 189,000 |
Increase (Decrease) in Accounts and Other Receivables | (7,648,000) | (10,203,000) |
Increase (Decrease) in Other Current Assets | (6,271,000) | (2,364,000) |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | 8,718,000 | 41,921,000 |
Increase (Decrease) in Inventories | (20,454,000) | 40,066,000 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 75,751,000 | 115,768,000 |
Investing Activities | ||
Payments to Operating Loans to Franchisees | (17,058,000) | (28,212,000) |
Proceeds from Repayments on Operating Loans to Franchisees | 21,644,000 | 47,800,000 |
Assets Acquired from Franchisees and Area Developers | (132,000) | (2,251,000) |
Proceeds from Sale of Intangible Assets | 277,000 | 950,000 |
Payments to Acquire Businesses, Net of Cash Acquired | (463,753,000) | (357,263,000) |
Payments to Acquire Property, Plant, and Equipment | (11,535,000) | (6,184,000) |
Net cash (used in) in investing activities | (470,557,000) | (345,160,000) |
Financing Activities | ||
Proceeds from Stock Options Exercised | 25,000 | 0 |
Dividends paid | (15,620,000) | (3,943,000) |
Non-controlling interest distribution | 0 | (2,358,000) |
Repayment of other long-term obligations | (769,791,000) | (370,503,000) |
Proceeds from the exercise of stock options | 6,724,000 | 142,000,000 |
Repayments under revolving credit facility | (84,874,000) | (79,260,000) |
Issuance of common stock | 0 | 80,682,000 |
Proceeds from Issuance of Debt | 1,300,000,000 | 586,000,000 |
Issuance of preferred stock | 79,541,000 | 0 |
Payment for debt issue costs and original issuance discounts | (50,764,000) | (14,408,000) |
Prepayment penalty for early debt extinguishment | (36,726,000) | 0 |
Cash paid for taxes on exercises/vesting of stock-based compensation | 361,000 | 36,000 |
Net cash provided by financing activities | 428,154,000 | 338,174,000 |
Effect of exchange rate changes on cash, net | 56,000 | (1,335,000) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 33,404,000 | 107,447,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 184,906,000 | 152,593,000 |
Issuance of debt | 164,858,000 | 144,306,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest, net of capitalized interest of $4 and $3, respectively | 65,000 | 466,000 |
Cash paid for taxes, net of refunds | 39,730,000 | 15,332,000 |
Share Issuance Proceeds Included In Accounts Receivable | 0 | 11,385,000 |
Payments to Acquire Software | 3,019,000 | 4,061,000 |
Payment of Financing and Stock Issuance Costs | 0 | 31,013,000 |
Proceeds from Issuance of Secured Debt | 7,449,000 | |
Taxes Receivable Agreement, Other long Term Liabilities | 16,775,000 | |
Restricted Cash, Noncurrent | 368,000 | 5,565,000 |
Restricted Cash and Cash Equivalents | $ 184,906,000 | $ 152,593,000 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 3 Months Ended |
Mar. 27, 2021 | |
Accounting Policies [Abstract] | |
Organization and Significant Accounting Policies | Organization and Significant Accounting Policies Description of Business Franchise Group, Inc. (the "Company"), a Delaware corporation, is an owner and operator of franchised and franchisable businesses that continually looks to grow its portfolio of brands while utilizing its operating and capital allocation philosophies to generate strong cash flow for its stockholders. On February 14, 2020, the Company completed its acquisition of the American Freight Group, Inc. ("American Freight"). On February 21, 2021, the Company entered into an agreement to sell its' Liberty Tax business as described in "Note 3. Divestitures" and now accounts for Liberty Tax as a discontinued operation. On March 10, 2021, the Company completed its acquisition of PSP Midco, LLC ("Pet Supplies Plus") as described in “Note 2. Acquisitions.” Segment Information The Company currently operates in four reportable segments: Buddy’s, Vitamin Shoppe, American Freight and Pet Supplies Plus. The Buddy's segment is a specialty retailer of high quality, name-brand consumer electronics, residential furniture, appliances and household accessories through rent-to-own agreements. The Vitamin Shoppe segment is an omni-channel specialty retailer of vitamins, herbs, specialty supplements, sports nutrition and other health and wellness products. The American Freight segment is a retail chain offering in-store and online access to furniture, mattresses, new and out-of-box home appliances and home accessories at discount prices. The Pet Supplies Plus segment is a specialty retailer that offers a wide assortment of pet products (food, treats, hard good and other products) and services through Company-owned and franchised locations. Principles of Consolidation The Company consolidates any entities in which it has a controlling interest, the usual condition of which is ownership of a majority voting interest. Prior to April 1, 2020, the Company was the sole managing member of Franchise Group New Holdco LLC ("New Holdco") and possessed ownership of more than 50 percent of the outstanding voting units. As a result, the Company consolidated the financial results of New Holdco and reported a non-controlling interest that represented the interests of the New Holdco units not held by the Company. As of April 1, 2020, the Company redeemed all outstanding New Holdco units for shares of common stock of the Company and now has an 100% interest in New Holdco. The Company does not possess any ownership interests in franchisee entities; however, the Company may provide financial support to franchisee entities. Because the Company's franchise arrangements provide franchisee entities the power to direct the activities that most significantly impact their economic performance, the Company does not consider itself the primary beneficiary of any such entity that meets the definition of a variable interest entity ("VIE"). Based on the results of management's analysis of potential VIEs, the Company has not consolidated any franchisee entities. The Company's maximum exposure to loss resulting from involvement with potential VIEs is attributable to accounts and notes receivables and future lease payments due from franchisees. When the Company does not have a controlling interest in an entity but has the ability to exert significant influence over the entity, the Company applies the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. The condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required only in annual financial statements. The consolidated balance sheet data as of December 26, 2020 was derived from the Company’s Annual Report on Form 10-K (the "2020 Annual Report"), filed with the U.S. Securities and Exchange Commission (the "SEC") on March 10, 2021. In the opinion of management, all adjustments necessary for a fair presentation of such condensed consolidated financial statements in accordance with GAAP have been recorded. These adjustments consisted only of normal recurring items. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its 2020 Annual Report. Revenues have been classified into product, service and other and rental revenues as further discussed in "Note 6. Revenue." Costs of sales for product includes the cost of merchandise, transportation and warehousing costs. Service and other costs of sales include the direct costs of warranties. Rental cost of sales represents the amortization of inventory costs over the leased term. Other operating expenses, including employee costs, depreciation and amortization, and advertising expenses have been classified in selling, general and administrative expenses. The Company also includes occupancy costs in selling, general and administrative expenses. Assets and liabilities of the Company's Canadian operations, which are included in discontinued operations, have been translated into U.S. dollars using the exchange rate in effect at the end of the period. Revenues and expenses have been translated using the average exchange rates in effect each month of the period. Foreign exchange transaction gains and losses are recognized when incurred. The Company reclassifies to accounts payable checks issued in excess of funds available and reports them as cash flow from operating activities. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Merchandise Inventories Inventory for the Buddy's segment is recorded at cost, including shipping and handling fees. Upon purchase, merchandise is not initially depreciated until it is leased or three months after the purchase date. Non-leased merchandise is depreciated on a straight-line basis over a period of 24 months. Leased merchandise is depreciated over the lease term of the rental agreement and recorded in rental cost of revenue. On a weekly basis, all damaged, lost, stolen, or unsalable merchandise identified is written off. Maintenance and repairs of lease merchandise are charged to operations as incurred. Inventory for the American Freight segment is comprised mostly of finished goods and is valued at the lower of cost or market, with cost determined by the first-in, first out method. The Company writes down inventory, the impact of which is reflected in cost of sales in the Consolidated Statements of Operations, if the cost of specific inventory items on hand exceeds the amount the Company expects to be realized from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand and market conditions and analysis of historical experience. Inventory includes the purchase price of the inventory plus costs of freight for moving merchandise from vendors to distribution centers as well as from distribution centers to stores. A provision for estimated shrinkage is maintained based on the actual historical results of physical inventories. Estimates are compared to the actual results of the physical inventory counts as they are taken and adjusted accordingly. Inventory for the Vitamin Shoppe segment is recorded at the lower of cost or market value using the weighted-average cost method. Inventory includes costs directly incurred in bringing the product to its existing condition and location. In addition, the cost of inventory is reduced by purchase discounts and other allowances received from vendors. A markdown reserve is estimated based on a variety of factors, including, but not limited to, the amount of inventory on hand and its remaining shelf life, current and expected market conditions and product expiration dates. In addition, the Company has established a reserve for estimated inventory shrinkage based on the actual, historical shrinkage of its most recent physical inventories adjusted, if necessary, for current economic conditions and business trends. Physical inventories and cycle counts are taken on a regular basis. These adjustments are estimates, which could vary significantly from actual results if future economic conditions, customer demand or competition differ from management expectations. Inventory for the Pet Supplies Plus segment is recorded at the lower of cost or market value using the weighted-average cost method. In addition, the cost of inventory is reduced by purchase discounts and other allowances received from vendors. A markdown reserve is estimated based on a variety of factors, including, but not limited to, the amount of inventory on hand and its remaining shelf life, current and expected market conditions and product expiration dates. In addition, the Company has established a reserve for estimated inventory shrinkage based on the actual, historical shrinkage of its most recent physical inventories adjusted, if necessary, for current economic conditions and business trends. Physical inventories and cycle counts are taken on a regular basis. These adjustments are estimates, which could vary significantly from actual results if future economic conditions, customer demand or competition differ from management expectations. Goodwill and Non-amortizing Intangible Assets Goodwill and non-amortizing intangible assets, including the Buddy's, Vitamin Shoppe, American Freight and Pet Supplies Plus tradenames, are not amortized, but rather tested for impairment at least annually. In addition, goodwill and non-amortizing intangible assets will be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. The Company performs a qualitative and/or quantitative assessment to determine whether it is more likely than not that each reporting unit's fair value is less than its carrying value, including goodwill. If the Company determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value, the Company then estimates the fair value. The Company uses a combination of a market multiple method and a discounted cash flow method to estimate the fair value of its reporting units and recognizes goodwill impairment for any excess of the carrying amount of a reporting unit’s goodwill over its estimated fair value. The Company evaluates each of the Buddy's, Vitamin Shoppe, American Freight and Pet Supplies Plus tradenames for impairment by comparing its fair value, based on an income approach using the relief-from-royalty method, to its carrying value. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized in an amount equal to that excess. The Company's reporting units are determined in accordance with the provisions of Accounting Standards Codification (“ASC”) 350, “Intangibles - Goodwill and Other (Topic 350).” The Company performs its annual impairment testing of goodwill and non-amortizing intangible assets on the last day of the first month of the Company's third quarter. Refer to “Note 5. Goodwill and Intangible Assets” for additional information on these balances. Intangible and Long-Lived Assets Impairment Amortization of intangible assets is calculated using the straight-line method over the estimated useful lives of the assets, generally from two to 15 years. Long-lived assets, such as property, equipment, and software, and other purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. Recognition and measurement of a potential impairment is performed for these assets at the lowest level where cash flows are individually identifiable. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. Revenue Recognition The following is a description of the principal activities from which the Company generates its revenues. For more detailed information regarding reportable segments, see "Note 14. Segments." • Product revenues: These include sales of merchandise at the stores, online and wholesale sales to franchisees. Revenue is measured based on the amount of fixed consideration that the Company expects to receive, reduced by estimates for variable consideration such as returns. Revenue also excludes any amounts collected from customers and remitted or payable to governmental authorities. In arrangements where the Company has multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price. The Company recognizes revenues from retail operations upon the transfer of control of goods to the customer. The Company satisfies its performance obligations at the point of sale for retail store transactions and upon delivery for online transactions and wholesale transactions. The Company recognizes revenue for retail store, online transactions and wholesale transactions when it transfers control of the goods to the customer. Merchandise sales also include payments received for the exercise of the early purchase option offered through rental-purchase agreements or merchandise sold through point of sale transactions. Revenue for merchandise sales associated with rental purchase agreements is recognized when payment is received, and ownership of the merchandise passes to the customer. The remaining net value of merchandise sold is recorded to cost of sales at the time of the transaction. • Service and other revenues: These include royalties and advertising fees from franchisees, fees from the sales of franchises and area developer territories, financial products, interest income from loans to franchisees, services and extended-service plans and financing programs. Commissions earned on services are presented net of related costs because the Company is acting as an agent in arranging the services for the customer and does not control the services being rendered. The Company recognizes revenue on the commissions on extended-service plans when it transfers control of the related goods to the customer. The Company recognizes franchise fee revenue for the sales of individual territories on a straight-line basis over the initial contract term when the obligations of the Company to prepare the franchisee for operation are substantially complete, not to exceed the estimated amount of cash to be received. Royalties and advertising fees are recognized as franchise territories generate sales. Interest income on notes receivable is recognized based on the outstanding principal note balance less unrecognized revenue unless it is put on non-accrual status. Interest income on the unrecognized revenue portion of notes receivable is recognized when received. For accounts receivable, interest income is recognized based on the outstanding receivable balance over 30 days old, net of an allowance. • Rental revenues: The Company provides merchandise, consisting of consumer electronics, computers, residential furniture, appliances, and household accessories to its customers pursuant to rental-purchase agreements which provide for weekly, semi-monthly or monthly non-refundable rental payments. The average rental term is twelve to eighteen months and the Company maintains ownership of the lease merchandise until all payment obligations are satisfied under sales and lease ownership agreements. Customers have the option to purchase the leased goods at any point in the lease term. Customers can terminate the agreement at the end of any rental term without penalty. Therefore, rental transactions are accounted for as operating leases and rental revenue is recognized over the rental term. Cash received prior to the beginning of the lease term is recorded as deferred revenue. Revenue related to various payment, reinstatement or late fees are recognized when paid by the customer. The Company offers additional product plans along with rental agreements that provide customers with liability protection against significant damage or loss of a product, and club membership benefits, including various discount programs, product services and replacement benefits in the event merchandise is damaged or lost. Customers renew product plans in conjunction with their rental term renewals and can cancel the plans at any time. Revenue for product plans is recognized over the term of the plan. Leases The Company's lease portfolio primarily consists of leases for its retail store locations and office space. The Company also leases certain office equipment under finance or operating leases. The finance lease right of use assets are included in Property, equipment and software and the finance lease liabilities are included in current installments of long-term obligations, and long-term obligations. The finance leases are immaterial to the financial statements. The Company subleases some of its real estate and equipment leases. The Company determines if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets; the Company recognizes expense for these leases on a straight-line basis over the lease term. For leases with an initial term in excess of 12 months, lease right-of-use assets and lease liabilities are recognized based on the present value of the future lease payments over the committed lease term at the lease commencement date. The Company’s leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate and the information available at the lease commencement date in determining the present value of future lease payments. Most leases include one or more options to renew and the exercise of renewal options is at the Company’s sole discretion. The Company does not include renewal options in its determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, “Property, Plant, and Equipment - Overall,” to determine whether a right-of-use asset is impaired, and if so, the amount of the impairment loss to recognize. The Company has lease agreements with lease and non-lease components, which the Company elects to combine as one lease component for all classes of underlying assets. Non-lease components include variable costs based on actual costs incurred by the lessor related to the payment of real estate taxes, common area maintenance, and insurance. These variable payments are expensed as incurred as variable lease costs. Due to the COVID-19 pandemic, the Company has been negotiating lease concessions with landlords. The lease concessions have been in the form of lease forgiveness, lease deferrals and lease deferrals with term extensions. If the total payments in the modified lease are substantially the same as or less than total payments in the original lease, the Company has elected to not evaluate whether the concession is a lease modification as defined in ASC 842 - "Leases". Deferred Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities, which are shown on the condensed consolidated balance sheets, are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company has elected to classify interest charged on a tax settlement in interest expense, and accrued penalties, if any, in selling, general, and administrative expenses. The determination of the Company's provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items. The Company records unrecognized tax benefit liabilities for known or anticipated tax issues based on an analysis of whether, and the extent to which, additional taxes will be due. Discontinued Operations As previously disclosed, on February 21, 2021 the Company entered into a purchase agreement (the " Purchase Agreement") to sell its Liberty Tax business to NextPoint Acquisition Corp ("NextPoint"), a special purpose acquisition corporation incorporated under the laws of the Province of British Columbia. As a result of this agreement, the financial position and results of operations of the Liberty Tax segment are presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. The accompanying Notes to the Condensed Consolidated Financial Statements and all prior year balances have been reclassified to conform to this presentation. Please refer to "Note 3. Divestitures" for additional information regarding discontinued operations. Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, " Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ", which changes how companies will measure credit losses for most financial assets and certain other instruments that aren't measured at fair value through net income. The standard replaces the "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost (which generally will result in the earlier recognition of allowances for losses) and requires companies to record allowances for available-for-sale debt securities, rather than reduce the carrying amount. In addition, companies will have to disclose significantly more information, including information used to track credit quality by year of origination, for most financing receivables. The ASU should be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the standard is effective. The ASU is effective for the Company for the fiscal year beginning December 25, 2022. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ” This standard eliminates Step 2 from the goodwill impairment test. Instead, an entity should compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The ASU is effective for the Company for the fiscal year beginning December 25, 2022. The Company is currently evaluating the impact of the adoption of this standard to its consolidated financial statements. The London Interbank Offered Rate (“LIBOR”) is scheduled to be discontinued on December 31, 2021. In an effort to address the various challenges created by such discontinuance, the FASB issued an amendment to existing guidance, ASU No. 2020-04, " Reference Rate Reform ." The amended guidance is designed to provide relief from the accounting analysis and impacts that may otherwise be required for modifications to agreements (e.g., loans, debt securities, derivatives, borrowings) necessitated by the reference rate reform. It also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by the reference rate reform. Application of the guidance in the amendment is optional, is only available in certain situations, and is only available for companies to apply until December 31, 2022. The Company is currently evaluating the impacts of reference rate reform and the new guidance on its consolidated financial statements. |
Acquisition (Notes)
Acquisition (Notes) | 3 Months Ended |
Mar. 27, 2021 | |
Acquisition [Abstract] | |
Acquisitions | (2) Acquisitions The assets acquired and liabilities assumed in the acquisitions below are recorded at fair value in accordance with ASC 805 - "Business Combinations." Goodwill is calculated as the excess of the purchase price over the fair value of the net assets acquired. The goodwill recognized is attributable to operational synergies in the expected franchise models and growth opportunities. Pet Supplies Plus Acquisition On March 10, 2021, the Company completed its acquisition of Pet Supplies Plus (the "Pet Supplies Plus Acquisition"). The preliminary fair value of the consideration transferred at the acquisition date was $452.4 million. As of March 27, 2021, $4.8 million of acquisition fees had been incurred that are recorded in selling, general and administrative expenses. The table below summarizes the unaudited preliminary estimates of the fair values of the identifiable assets acquired and liabilities assumed in the Pet Supplies Plus Acquisition as of March 10, 2021. The preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed are subject to revisions, which may result in an adjustment to the preliminary values presented below. The Company expects to complete the purchase price allocation as soon as reasonably possible but not to exceed one year from the Pet Supplies Plus Acquisition date. (In thousands) Preliminary 3/10/2021 Cash and cash equivalents $ 2,131 Other current assets 41,214 Inventories, net 118,600 Property, equipment and software, net 75,607 Goodwill 335,134 Operating lease right-of-use assets 142,216 Other intangible assets, net 205,800 Other non-current assets 6,888 Total assets 927,590 Current operating lease liabilities 26,369 Accounts payable and accrued expenses 80,404 Other current liabilities 3,372 Current installments of long-term obligations 3,507 Long-term obligations, excluding current installments 247,458 Non-current operating lease liabilities 104,301 Other long-term liabilities 9,761 Total liabilities 475,172 Consideration transferred $ 452,418 Other intangible assets, net consists of the Pet Supplies Plus trade name as an indefinite-lived intangible asset with a fair value of $104.4 million. The trade name is not subject to amortization but will be evaluated annually for impairment. Also included are franchise agreements of $67.1 million and customer relationships of $34.3 million. Lease right-of-use assets and lease liabilities consists of leases for retail store locations, warehouses and office equipment. The operating lease right-of-use assets incorporates a favorable adjustment of $12.4 million, net for favorable and unfavorable Pet Supplies Plus real estate leases (as compared to prevailing market rates) which will be amortized over the remaining lease terms. The property and equipment consists of fixtures and equipment of $37.0 million, leasehold improvements of $33.5 million, construction in progress of $3.5 million and financing leases of $1.7 million. Other non-current assets includes $0.4 million of restricted cash. Furniture Factory Outlet Acquisition On December 27, 2020, the Company completed the acquisition of Furniture Factory Outlet ("FFO Home"), a regional retailer of furniture and mattresses, for an all cash purchase price of $13.8 million. The Company acquired 31 operating locations which were rebranded as American Freight stores and included into its American Freight segment. As of March 27, 2021, $0.1 million of acquisition fees had been incurred that are recorded in selling, general and administrative expenses. (In thousands) Preliminary 12/27/2020 Cash and cash equivalents $ 6 Other current assets 96 Inventories, net 6,450 Property, equipment and software, net 2,934 Goodwill 3,293 Operating lease right-of-use assets 26,571 Total assets 39,350 Current operating lease liabilities 2,587 Other current liabilities 299 Non-current operating lease liabilities 22,624 Total liabilities 25,510 Consideration transferred $ 13,840 Lease right-of-use assets and lease liabilities consists of leases for retail store locations. The lease right of use assets incorporates a favorable adjustment of $1.4 million, net for favorable and unfavorable FFO Home leases (as compared to prevailing market rates) which will be amortized over the remaining lease terms. The property and equipment consists of leasehold improvements of $2.5 million and fixtures and equipment of $0.4 million. American Freight Acquisition On February 14, 2020, the Company completed its acquisition of American Freight (the "American Freight Acquisition") for an aggregate purchase price of $357.3 million. The Company accounted for the transaction as a business combination using the acquisition method of accounting. In the three months ended March 27, 2021, there were no changes in the fair value of identifiable assets acquired and liabilities assumed. Pro forma financial information The following unaudited consolidated pro forma summary has been prepared by adjusting the Company's historical data to give effect to the Pet Supplies Plus and American Freight Acquisition as if they had occurred on December 28, 2019. Pro forma (Unaudited) Three Months Ended (In thousands) March 27, 2021 March 28, 2020 Revenue $ 891,415 $ 836,326 Net income 62,604 3,956 Basic net income per share $ 1.56 $ 0.17 Diluted net income per share $ 1.53 $ 0.17 The unaudited consolidated pro forma financial information was prepared in accordance with accounting standards and is not necessarily indicative of the results of operations that would have occurred if the Pet Supplies Plus and American Freight Acquisition had been completed on the date indicated, nor is it indicative of the future operating results of the Company. |
Divestitures
Divestitures | 3 Months Ended |
Mar. 27, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On February 21, 2021, the Company and NextPoint entered into the Purchase Agreement to sell its Liberty Tax business for a purchase price of at least $243 million. The purchase price consists of approximately $182 million in cash and at least 51,000 proportional voting shares of NextPoint, which are convertible into NextPoint common shares at a ratio of 100 common shares to one proportional voting share. In connection with the Purchase Agreement, the parties also agreed to enter into a transition services agreement pursuant to which both parties agreed to provide certain transition services to each other for a period not to exceed six months. The Company expects the sale to be completed in the second quarter of 2021. The following is a summary of the major categories of assets and liabilities for the Liberty Tax business. The balances for all periods are included in assets and liabilities held for sale in the Condensed Consolidated Balance Sheet. (In thousands) March 27, 2021 December 26, 2020 Assets (Unaudited) (Unaudited) Current assets: Cash and cash equivalents $ 19,680 $ 2,722 Current receivables, net 50,524 33,525 Other current assets 13,878 6,776 Total current assets 84,082 43,023 Property, equipment, and software, net 9,160 7,634 Non-current receivables, net 3,077 3,889 Goodwill 9,063 8,719 Intangible assets, net 23,129 24,804 Operating lease right-of-use assets 8,620 8,771 Other non-current assets 1,188 1,299 Total assets held for sale $ 138,319 $ 98,139 Liabilities and Stockholders' Equity Current liabilities: Current installments of long-term obligations $ 436 $ 1,335 Current operating lease liabilities 4,639 4,658 Accounts payable and accrued expenses 19,344 20,200 Other current liabilities 14,542 14,383 Total current liabilities 38,961 40,576 Long-term obligations, excluding current installments 1,670 1,711 Non-current operating lease liabilities 4,699 4,738 Other non-current liabilities 2,185 2,330 Total liabilities held for sale $ 47,515 $ 49,355 The following is a Condensed Consolidated Statement of Operations for the Liberty Tax business. The amounts for all periods are included in "Income (loss) from discontinued operations, net of tax" in the Company's Condensed Consolidated Statements of Operations. Three Months Ended (In thousands) March 27, 2021 March 28, 2020 Revenue $ 76,480 $ 89,618 Selling, general, and administrative expenses 34,061 40,937 Income from operations 42,419 48,681 Other expense: Other 153 (35) Interest expense, net (11) (1,240) Income before income taxes 42,561 47,406 Income tax expense 414 10,052 Net Income 42,147 37,354 Less: Net (income) attributable to non-controlling interest — (11,799) Net income attributable to discontinued operations $ 42,147 $ 25,555 The following is the operating and investing activities for the Liberty Tax business. These amounts are included in the Company's Condensed Consolidated Statement of Cash Flows. Three Months Ended (In thousands) March 27, 2021 March 28, 2020 Cash flows provided by operating activities from discontinued operations 15,787 39,809 Cash flows provided by investing activities from discontinued operations 2,058 17,662 |
Notes and Accounts Receivable
Notes and Accounts Receivable | 3 Months Ended |
Mar. 27, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | (4) Accounts and Notes Receivable Current and non-current receivables as of March 27, 2021 and December 26, 2020 are presented in the condensed consolidated balance sheets as follows: (In thousands) March 27, 2021 December 26, 2020 Accounts receivable, net $ 71,489 $ 38,444 Notes receivable 1,600 15,440 Interest receivable, net — 84 Income tax receivable 15,505 13,649 Allowance for doubtful accounts (331) (282) Current receivables, net 88,263 67,335 Notes receivable - non-current 11,706 12,800 Allowance for doubtful accounts - non-current — — Non-current receivables, net 11,706 12,800 Total receivables $ 99,969 $ 80,135 Notes receivable are due from the Company's franchisees and are collateralized by the underlying franchise. The debtors' ability to repay the notes is dependent upon both the performance of the franchisee's industry as a whole and the individual franchise areas. |
Notes and Accounts Receivable | Accounts and Notes Receivable Current and non-current receivables as of March 27, 2021 and December 26, 2020 are presented in the condensed consolidated balance sheets as follows: (In thousands) March 27, 2021 December 26, 2020 Accounts receivable, net $ 71,489 $ 38,444 Notes receivable 1,600 15,440 Interest receivable, net — 84 Income tax receivable 15,505 13,649 Allowance for doubtful accounts (331) (282) Current receivables, net 88,263 67,335 Notes receivable - non-current 11,706 12,800 Allowance for doubtful accounts - non-current — — Non-current receivables, net 11,706 12,800 Total receivables $ 99,969 $ 80,135 Notes receivable are due from the Company's franchisees and are collateralized by the underlying franchise. The debtors' ability to repay the notes is dependent upon both the performance of the franchisee's industry as a whole and the individual franchise areas. |
Revenue Revenue (Notes)
Revenue Revenue (Notes) | 3 Months Ended |
Mar. 27, 2021 | |
Revenue [Abstract] | |
Revenue from Contract with Customer | (6) Revenue For details regarding the principal activities from which the Company generates its revenue, see "Note 1. Organization and Significant Accounting Policies" in this quarterly report. For more detailed information regarding reportable segments, see "Note 14. Segments" in this quarterly report. The following represents the disaggregated revenue by reportable segments for the three months ended March 27, 2021: March 27, 2021 Vitamin Shoppe American Freight Pet Supplies Plus Buddy's (In thousands) Three Months Ended Three Months Ended Three Months Ended Three Months Ended Retail sales $ 294,739 $ 239,058 $ 31,365 $ 1,368 Wholesale sales — — 17,287 — Total product revenue 294,739 239,058 48,652 1,368 Franchise fees — — 16 9 Royalties and advertising fees — — 1,130 3,879 Financial products — 8,579 — — Agreement, club and damage waiver fees — — — 1,806 Warranty revenue — 6,397 — — Other revenues — 4,483 1,511 765 Total service revenue — 19,459 2,657 6,459 Rental revenue, net — — — 8,953 Total rental revenue — — — 8,953 Total revenue $ 294,739 $ 258,517 $ 51,309 $ 16,780 The following represents the disaggregated revenue by reportable segments for the three months ended March 28, 2020: March 28, 2020 Vitamin Shoppe American Freight Pet Supplies Plus Buddy's (In thousands) Three Months Ended Three Months Ended Three Months Ended Three Months Ended Retail sales $ 275,888 $ 196,099 $ — $ 1,518 Total product revenue 275,888 196,099 — 1,518 Royalties and advertising fees — — — 2,422 Financial products — 605 — — Agreement, club and damage waiver fees — — — 3,320 Warranty revenue — 4,251 — — Other revenues — 1,792 — 632 Total service revenue — 6,648 — 6,374 Rental revenue, net — — — 16,420 Total rental revenue — — — 16,420 Total revenue $ 275,888 $ 202,747 $ — $ 24,312 Contract Balances The following table provides information about receivables and contract liabilities (deferred revenue) from contracts with customers as of March 27, 2021 and December 26, 2020: (In thousands) March 27, 2021 December 26, 2020 Accounts Receivable $ 71,489 $ 38,444 Notes receivable 13,306 28,240 Deferred revenue 45,225 25,616 Significant changes in deferred revenue were as follows: Three Months Ended (In thousands) March 27, 2021 Deferred revenue at beginning of period $ 25,616 Revenue recognized during the period (20,580) Deferred revenue from acquisitions 10,714 New deferred revenue during the period 29,475 Deferred revenue at end of period $ 45,225 Anticipated Future Recognition of Deferred Revenue The following table reflects when deferred revenue is expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the period: (In thousands) Fiscal Year 2021 (1) $ 33,577 2022 1,470 2023 1,078 2024 442 2025 406 Thereafter 8,252 Total $ 45,225 (1) Represents deferred revenue expected to be recognized for the remainder of fiscal 2021. The amount does not include deferred revenues recognized for the three months ended March 27, 2021. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 27, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Changes in the carrying amount of goodwill for the three months ended March 27, 2021 are as follows: (In thousands) March 27, 2021 Balance at beginning of period $ 448,258 Pet Supplies Plus Acquisition 335,134 FFO Acquisition 3,293 Balance at end of period $ 786,685 Components of intangible assets as of March 27, 2021 and December 26, 2020 were as follows: March 27, 2021 (In thousands) Gross carrying amount Accumulated amortization Net carrying amount Tradenames (1) $ 197,700 $ — $ 197,700 Customer contracts 43,080 (2,675) 40,405 Franchise agreements 77,600 (2,216) 75,384 Reacquired rights 1,478 (554) 924 Total intangible assets $ 319,858 $ (5,445) $ 314,413 (1) Tradenames have an indefinite life and are tested for impairment on an annual basis. December 26, 2020 (In thousands) Gross carrying amount Accumulated amortization Net carrying amount Tradenames (1) $ 93,300 $ — $ 93,300 Customer contracts 8,780 (2,158) 6,622 Franchise agreements 10,500 (1,546) 8,954 Reacquired rights 1,478 (462) 1,016 Total intangible assets $ 114,058 $ (4,166) $ 109,892 (1) Tradenames have an indefinite life and are tested for impairment on an annual basis. |
Long-Term Obligations
Long-Term Obligations | 3 Months Ended |
Mar. 27, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations | Long-Term Obligations Long-term obligations at March 27, 2021 and December 26, 2020 were as follows: (In thousands) March 27, 2021 December 26, 2020 Revolving credit facilities $ — $ 78,310 Term loan, net of debt issuance costs 1,250,788 491,837 Finance lease liabilities 4,358 850 Total long-term obligations 1,255,146 570,997 Less current installments 12,014 104,053 Total long-term obligations, excluding current installments, net $ 1,243,132 $ 466,944 First Lien Credit Agreement and Term Loan On March 10, 2021 (the “Closing Date”), the Company, through direct and indirect subsidiaries, entered into a First Lien Credit Agreement (the “First Lien Credit Agreement”) with various lenders that provides for a $1,000.0 million senior secured term loan (the “First Lien Term Loan”). The Company’s obligations under the First Lien Credit Agreement are guaranteed by the Company and each of the Company’s other direct and indirect subsidiaries (other than certain excluded subsidiaries) pursuant to a First Lien Guarantee Agreement (the “First Lien Guarantee Agreement”) and are required to be guaranteed by each of the Company’s direct and indirect subsidiaries (other than certain excluded subsidiaries) that may be formed or acquired after the Closing Date. The obligations of the Company under the First Lien Credit Agreement are secured on a first priority basis by substantially all of the assets (other than the ABL Priority Collateral (as defined below)) of the Loan Parties (the “Term Priority Collateral”) and are secured on a second priority basis by credit card receivables, accounts receivable, deposit accounts, securities accounts, commodity accounts, inventory and goods (other than equipment) of the Company, in each case, subject to certain exceptions (the “ABL Priority Collateral”), pursuant to a First Lien Collateral Agreement (the “First Lien Collateral Agreement”) and are required to be secured by such assets of the Company (other than certain excluded subsidiaries) that may be formed or acquired after the Closing Date. The proceeds of the First Lien Term Loan, together with the proceeds of the Second Lien Term Loan (as defined below) and certain cash on hand of the Company, were used to consummate the Pet Supplies Plus Acquisition and to pay fees and expenses for certain related transactions, including the entry into the ABL Agreement (as defined below). In addition to financing the Pet Supplies Plus Acquisitions and its related acquisition costs, a portion of the proceeds from the proceeds of the First Lien Term Loan, together with the proceeds of the Second Lien Term Loan (as defined below) were used to repay the Franchise Group New Holdco Credit Agreement, the Franchise Group New Holdco ABL Agreement and the Vitamin Shoppe ABL Agreement term loan for an outstanding amount of $527.4 million, $37.0 million and $43.1 million including accrued interest, respectively. The early repayment of the term loans resulted in additional interest expense of $29.3 million for the write-off of deferred financing costs and $36.7 million for a prepayment penalty. The prepayment penalty is recorded in the Other expense line of the consolidated statements of operations for the three months ended March 27, 2021. The First Lien Term Loan will mature on March 10, 2026, unless the maturity is accelerated subject to the terms set forth in the First Lien Credit Agreement. The First Lien Term Loan will, at the option of the Company, bear interest at either (i) a rate per annum based on London Interbank Offered Rate ("LIBOR") for an interest period of one, two, three or six months, plus an interest rate margin of 4.75% (a "First Lien LIBOR Loan"), with a 0.75% LIBOR floor, or (ii) an alternate base rate determined as provided in the First Lien Credit Agreement, plus an interest rate margin of 3.75% (a "First Lien ABR Loan"), with an effective 1.75% alternate base rate floor. Interest on First Lien LIBOR Loans is payable in arrears at the end of each applicable interest period (and, with respect to an interest period of longer than three months, at three month intervals during such interest period), and interest on First Lien ABR Loans is payable in arrears on the last business day of each calendar quarter. The Company is required to repay the First Lien Term Loan in equal quarterly installments of $2.5 million on the last day of each calendar quarter, commencing on June 30, 2021. The Company is required to prepay the First Lien Term Loan with 50% of consolidated excess cash flow on an annual basis, subject to certain exceptions and to leverage-based step-downs to 25% and 0%, and with 100% of the net cash proceeds of certain other customary events, including certain asset sales (but excluding sales of ABL Priority Collateral), including customary reinvestment rights and leverage based step-downs to 25% and 0%, in each case, subject to certain exceptions. Subject to certain exceptions, repayment of the First Lien Term Loan within six months after the Closing Date in connection with a refinancing to reduce the pricing with respect to the First Lien Term Loan are subject to a prepayment premium of 1.00%. The First Lien Credit Agreement, the First Lien Collateral Agreement and the First Lien Guarantee Agreement collectively include customary affirmative, negative, and financial covenants binding on the Company, including delivery of financial statements and other reports. The negative covenants limit the ability of the Company to, among other things, incur debt, incur liens, make investments, sell assets, pay dividends and enter into transactions with affiliates. The financial covenants set forth in the First Lien Credit Agreement include a maximum total leverage ratio (net of certain cash) and a minimum fixed charge coverage ratio to be tested at the end of each fiscal quarter commencing with the first full fiscal quarter ending after the Closing Date. In addition, the First Lien Credit Agreement includes customary events of default, the occurrence of which may require the Company to pay an additional 2.00% interest on the First Lien Term Loan and/or may result in, among other consequences, acceleration of the payment obligations with respect to the First Lien Term Loan, calling on the guarantees, or exercise of remedies with respect to the collateral. Second Lien Credit Agreement and Second Lien Term Loan On the Closing Date, the Company, through direct and indirect subsidiaries, entered into a Second Lien Credit Agreement (the “Second Lien Credit Agreement”) with various lenders (the “Second Lien Lenders”, and together with the First Lien Lenders, the “Term Loan Lenders”). The Second Lien Credit Agreement provides for a $300.0 million senior secured term loan (the “Second Lien Term Loan”, and together with the First Lien Term Loan, the “Term Loans”), made by the Second Lien Lenders to the Company. The Company's obligations under the Second Lien Credit Agreement are guaranteed by the Loan Parties pursuant to a Second Lien Guarantee Agreement (the “Second Lien Guarantee Agreement”) and are required to be guaranteed by each of the Company’s direct and indirect subsidiaries (other than certain excluded subsidiaries) that may be formed or acquired after the Closing Date. The obligations of the Company under the Second Lien Credit Agreement are secured on a second priority basis by the Term Priority Collateral and are secured on a third priority basis by the ABL Priority Collateral pursuant to a Second Lien Collateral Agreement (the “Second Lien Collateral Agreement”) and are required to be secured by such assets of each of the Company’s direct and indirect subsidiaries (other than certain excluded subsidiaries) that may be formed or acquired after the Closing Date. The Second Lien Term Loan will mature on September 10, 2026, unless the maturity is accelerated subject to the terms set forth in the Second Lien Credit Agreement. The Second Lien Term Loan will, at the option of the Company, bear interest at either (i) a rate per annum based on LIBOR for an interest period of one, two, three or six months, plus an interest rate margin of 7.50% (a "Second Lien LIBOR Loan"), with a 1.00% LIBOR floor, or (ii) an alternate base rate determined as provided in the Second Lien Credit Agreement, plus an interest rate margin of 6.50% (a "Second Lien ABR Loan"), with an effective 2.00% alternate base rate floor. Interest on Second Lien LIBOR Loans is payable in arrears at the end of each applicable interest period (and, with respect to an interest period of longer than three months, at three month intervals during such interest period), and interest on Second Lien ABR Loans is payable in arrears on the last business day of each calendar quarter. The Second Lien Term Loan is not subject to scheduled amortization. Solely to the extent the First Lien Term Loan and related obligations have been repaid in full, the Company is required to prepay the Second Lien Term Loan with 50% of consolidated excess cash flow on an annual basis, subject to certain exceptions and to leverage-based step-downs to 25% and 0%, and with 100% of the net cash proceeds of certain other customary events, including certain asset sales (but excluding sales of ABL Priority Collateral), including customary reinvestment rights and leverage-based step-downs to 25% and 0%, in each case, subject to certain exceptions. Subject to certain exceptions, repayments of the Second Lien Term Loan (i) within six months after the Closing Date in connection with a refinancing in full of the Second Lien Term Loan in connection with an acquisition or similar investment (an “Investment-Linked Refinancing Transaction”) are subject to a make-whole premium, (ii) within nine months after the Closing Date, other than in connection with an Investment-Linked Refinancing Transaction, are subject to a make-whole premium and (iii) solely to the extent clauses (i) and (ii) do not apply, a prepayment premium of 2.00%. The Company may also be required to pay LIBOR breakage and redeployment costs in certain limited circumstances. Third Amended and Restated Loan and Security Agreement (ABL) On the Closing Date, the Company, through direct and indirect subsidiaries, entered into a Third Amended and Restated Loan and Security Agreement (the “ABL Agreement”) with various lenders. The ABL Agreement provides for a senior secured revolving loan facility (the “ABL Revolver”) with aggregate commitments available to Company of the lesser of (i) $150.0 million and (ii) a specified borrowing base based on a percentage of the Company's eligible credit card receivables, accounts (subject to certain limitations) and inventory (subject to certain limitations), less certain reserves (the “Aggregate Borrowing Cap”). Furthermore, the ABL Agreement includes separate borrowing caps equal to (A) the lesser of (1) $100.0 million and (2) a specified borrowing base based on a percentage of the certain of the Company's subsidiaries eligible credit card receivables, accounts (subject to certain limitations) and inventory (subject to certain limitations), less certain reserves. As of the Closing Date, the ABL Revolver was undrawn. The ABL Agreement amended and restated the existing Second Amended and Restated Loan and Security Agreement, dated as of December 16, 2019. The Company's obligations under the ABL Agreement are guaranteed pursuant to an Second Amended and Restated Guaranty Agreement (the “ABL Guaranty”), dated as of the Closing Date, which amended and restated the existing Amended and Restated Guaranty Agreement, dated as of December 16, 2019. The obligations of the Company under the ABL Agreement are secured by substantially all of the assets of the Company pursuant to the ABL Agreement and a Third Amended and Restated Pledge Agreement (the “ABL Pledge”). An Intercreditor Agreement (the “Intercreditor Agreement”), dated as of the Closing Date, sets forth (i) the relative priorities of the security interests granted with respect to the Term Loans and those granted with respect to the ABL Revolver (as defined below) and (ii) the relative priorities of the security interests granted with respect to the ABL Revolver and those granted with respect to the Term Loans. The security interest granted to the ABL Agent (for itself and the ABL Lenders) is: (A) senior than that granted to the Term Loan Agents (for itself and the Term Loan Lenders) with respect to the ABL Priority Collateral and (B) junior than that granted to the Term Loan Agents (for itself and the Term Loan Lenders) with respect to the Term Priority Collateral. The ABL Revolver will mature on March 10, 2025, unless the maturity is accelerated subject to the terms set forth in the ABL Agreement. Borrowings under the ABL Revolver will, at the option of the Company, bear interest at either (i) a rate per annum based on LIBOR for an interest period of one, two, three or six months, plus an interest rate margin that ranges from 1.75% to 2.25%, (an "ABL LIBOR Loan"), with a 0.0% LIBOR floor, or (ii) an alternate base rate determined as provided in the ABL Agreement, plus an interest rate margin that ranges from 0.75% to 1.25%, (an "ABL ABR Loan"), with a 1.0% alternate base rate floor. Interest on ABL LIBOR Loans is payable in arrears at the end of each applicable interest period (and, with respect to a six-month interest period, three months after commencement of the interest period), and interest on ABL ABR Loans is payable in arrears on the first business day of each calendar quarter. Subject to the Intercreditor Agreement, the Company is required to repay the excess amount of borrowings under the ABL Revolver if: (i) the aggregate outstanding principal amount of all borrowings by the Company under the ABL Revolver at any time exceeds the Aggregate Borrowing Cap, or (ii) the aggregate outstanding principal amount of all borrowings of certain of the Company's subsidiaries exceeds their borrowing caps. The ABL Agreement and ABL Pledge include customary affirmative and negative covenants binding on the Company, including delivery of financial statements, borrowing base certificates and other reports. The negative covenants limit the ability of the Company, among other things, to incur debt, incur liens, make investments, sell assets, pay dividends and enter into transactions with affiliates. In addition, the ABL Agreement includes customary events of default, the occurrence of which may require the Company to pay an additional 2.0% interest on the borrowings under the ABL Revolver. Franchise Group New Holdco Credit Agreement and Term Loan On February 14, 2020, the Company, through an indirect subsidiary, executed a term loan agreement with GACP Finance Co., LLC for an amount of $575.0 million (the “FGNH Credit Agreement”), which consisted of a $375.0 million first out tranche (the “FGNH Tranche A-1 Term Loan”) and a $200.0 million last out tranche (the “FGNH Tranche A-2 Term Loan”). The term loan would have matured on February 14, 2025, unless the maturity was accelerated subject to the terms set forth in the term loan agreement. On March 10, 2021, the FGNH Credit Agreement the outstanding principal balance of $514.7 million was paid in full with the issuance of the First Lien Term Loan and the Second Lien Term Loan. Franchise Group New Holdco New ABL Credit Agreement and New ABL Term Loan On September 23, 2020, the Company, through direct and indirect subsidiaries, entered into an ABL Credit Agreement (the “Old ABL Credit Agreement”) with various lenders which provided for a senior secured revolving loan facility with commitments available to the Company of the lesser of (i) $125.0 million and (ii) a borrowing base based on the eligible credit card receivables, accounts, inventory and revenue due under certain rental agreements, less certain reserves. The Old ABL Credit Agreement included a $15.0 million swingline subfacility and a $15.0 million letter of credit subfacility. The Company borrowed approximately $32.7 million on September 23, 2020, the proceeds of which were used to prepay certain existing indebtedness under the existing FGNH ABL Credit Agreement (as defined below), to pay fees and expenses in connection with the Old ABL Credit Agreement, and for general corporate purposes. On March 10, 2021, this agreement was replaced by the ABL Agreement above and all outstanding amounts were paid in full by the Company. Franchise Group New Holdco ABL Credit Agreement and ABL Term Loan On February 14, 2020, the Company, through direct and indirect subsidiaries, entered into an ABL credit agreement (the "FGNH ABL Credit Agreement") with various lenders which provided the Company with a $100.0 million senior secured asset based term loan (the “FGNH ABL Term Loan”). On February 14, 2020, the Company borrowed $100.0 million on the FGNH ABL Term Loan to finance the American Freight Acquisition. On September 23, 2020, the Company repaid in full all amounts that were outstanding under the FGNH ABL Term Loan and terminated the FGNH ABL Credit Agreement . Vitamin Shoppe Term Loan On December 16, 2019, in connection with the Company's acquisition of the Vitamin Shoppe, Inc. (the "Vitamin Shoppe Acquisition"), the Company, through direct and indirect subsidiaries, entered into a Loan and Security Agreement (the “Vitamin Shoppe Term Loan Agreement”) that provides for a $70.0 million senior secured term loan (the "Vitamin Shoppe Term Loan") which matures on December 16, 2022. On May 22, 2020, the Company purchased $5.3 million of the Vitamin Shoppe Term Loan from one of the participating lenders, which effectively retired that portion of the term loan. On August 13, 2020, the Company repaid in full the remaining balance outstanding under the Vitamin Shoppe Term Loan and terminated the Vitamin Shoppe Loan Term Agreement on August 25, 2020. Vitamin Shoppe ABL Revolver On December 16, 2019, the Company, through direct and indirect subsidiaries, entered into a Second Amended and Restated Loan and Security Agreement (the “ Vitamin Shoppe ABL Agreement”) providing for a senior secured revolving loan facility (the “Vitamin Shoppe ABL Revolver”) with commitments available to the Company of the lesser of (i) $100.0 million and (ii) a specified borrowing base based on our eligible credit card receivables, accounts receivable and inventory, less certain reserves, and as to each of clauses (i) and (ii), less a $10.0 million availability block. The Vitamin Shoppe ABL Revolver will mature on December 16, 2022, unless the maturity is accelerated subject to the terms set forth in the Vitamin Shoppe ABL Agreement. The Company borrowed $70.0 million on December 16, 2019, the proceeds of which were used to consummate the Vitamin Shoppe Acquisition. The ABL Agreement amended and restated the existing Amended and Restated Loan and Security Agreement (the “Existing Vitamin Shoppe ABL Agreement”), dated as of January 20, 2011. On March 10, 2021, the Vitamin Shoppe ABL agreement outstanding principal balance of $43.0 million was paid in full with the proceeds from the First Lien Term Loan and the Second Lien Term Loan which resulted in a write-off of $1.2 million of deferred financing costs. Compliance with Debt Covenants The Company's revolving credit and long-term debt agreements impose restrictive covenants on it, including requirements to meet certain ratios. As of March 27, 2021, the Company was in compliance with all covenants under these agreements and, based on a continuation of current operating results, the Company expects to be in compliance for the next twelve months. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 27, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Overview For the three months ended March 27, 2021 income tax benefit was $2.9 million on a pre-tax loss from continuing operations of $31.2 million, an effective tax rate of 9.1%. Income tax benefit for the three months ended March 28, 2020 was $55.9 million on pre-tax loss from continuing operations of $31.4 million, an effective tax rate of 178.2%. The impact of the enactment of the CARES Act was included in the March 28, 2020 period which is the primary driver of the difference in the effective tax rate. The Company is also expecting to utilize a portion of its deferred tax assets, including net operating loss carryforwards, which previously had a full valuation allowance. CARES Act The Coronavirus, Aid, Relief, and Economic Security, or CARES Act (the “Act”) was enacted on March 27, 2020. The Act retroactively changed the eligibility of certain assets for expense treatment in the year placed in service, back to 2018, and permitted any net operating loss for the tax years 2018, 2019 and 2020 to be carried back for 5 years. The Company recorded a total income tax benefit of $52.3 million during 2020 associated with the income tax components contained in the Act. Tax Receivable Agreement On July 10, 2019, the Company entered into a tax receivable agreement with the then-existing non-controlling interest holders (the "Tax Receivable Agreement") that provides for the payment by the Company to the non-controlling interest holders of 40% of the cash savings, if any, in federal, state and local taxes that the Company realizes or is deemed to realize as a result of any increases in tax basis of the assets of New Holdco resulting from future redemptions or exchanges of New Holdco units. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 27, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stockholders' Equity Activity On January 11, 2021, the Company entered into an Underwriting Agreement with B. Riley Securities, Inc., as representative of the several underwriters named therein (the “Underwriters”), to issue and sell an aggregate of 2,976,191 shares (the “Firm Shares”) of the Company’s 7.50% Series A Cumulative Perpetual Preferred Stock, par value $0.01 per share and liquidation preference of $25.00 per share (the “Series A Preferred Stock”), in a public offering at a price to the public of $25.20 per share. The Company also granted the Underwriters an option (the “Option”) to purchase up to 446,428 additional shares of Series A Preferred Stock during the 30 days following the date of the Underwriting Agreement. On January 14, 2021, the Underwriters partially exercised the Option for 314,934 shares (together with the Firm Shares, the “Shares”). The Offering is a reopening of the Company’s original issuance of the Series A Preferred Stock, which closed on September 18, 2020. The Shares will be consolidated, form a single series, and be fully fungible with all outstanding shares of Series A Preferred Stock. The offering closed on January 14, 2021, and the net proceeds to the Company were approximately $79.5 million, after deducting underwriting discounts, an advisory fee and offering expenses totaling approximately $3.2 million. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss at March 27, 2021 and December 26, 2020 were as follows: (In thousands) March 27, 2021 December 26, 2020 Foreign currency adjustment $ (1,032) $ (1,254) Interest rate swap agreements, net of tax (97) (145) Forward contracts related to foreign currency exchange rates 17 — Total accumulated other comprehensive loss $ (1,112) $ (1,399) Non-controlling interest The Company is the sole managing member of New Holdco and, as a result, consolidates the financial results of New Holdco. Prior to April 1, 2020, the Company reported a non-controlling interest representing the economic interest in New Holdco held by the former equity holders of Buddy's (the "Buddy’s Members"). Changes in the Company's ownership interest in New Holdco while it retained a controlling interest in New Holdco were accounted for as equity transactions. As such, redemptions or direct exchanges of New Holdco units by the Buddy’s Members resulted in a change in ownership and reduced the amount recorded as non-controlling interest and increased additional paid-in capital. On March 26, 2020, the Company redeemed 3,937,726 New Holdco units and 787,545 shares of preferred stock for common stock. On April 1, 2020, the Company redeemed the remaining 5,495,606 New Holdco units and 1,099,121 shares of preferred stock for common stock and the Company is the sole owner of New Holdco. The exchange of New Holdco units for common stock resulted in an increase in the tax basis of the net assets of New Holdco and a liability to be recognized pursuant to the TRA. The difference of $10.0 million in the adjustment of the deferred tax balances and the tax receivable agreement liability was recorded as an adjustment to additional paid-in-capital. Refer to "Note 8. Income Taxes" for further discussion of the TRA. Net Income (Loss) per Share Diluted net income (loss) per share is computed using the weighted-average number of common stock and, if dilutive, the potential common stock outstanding during the period. Potential common stock consists of the incremental common stock issuable upon the exercise of stock options and vesting of restricted stock units. The dilutive effect of outstanding stock options and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method. Additionally, the computation of the diluted net income (loss) per share of common stock assumed the conversion of exchangeable shares, and Preferred Stock, if dilutive. The computation of basic and diluted net income (loss) per share for the three months ended March 27, 2021 and March 28, 2020 is as follows: Three Months Ended Three Months Ended Common Stock Common Stock (In thousands, except for share and per Basic net income (loss) per share: Net income (loss) from continuing operations attributable to Franchise Group $ (28,334) $ 33,984 Less: Preferred dividend declared (2,129) — Adjusted net income (loss) from continuing operations available to Common Stockholders (30,463) 33,984 Net income from discontinued operations attributable to Franchise Group 42,147 25,555 Adjusted net income (loss) available to Common Stockholders $ 11,684 $ 59,539 Weighted-average common stock outstanding 40,110,084 23,373,980 Basic net income (loss) per share: Continuing operations $ (0.76) $ 1.45 Discontinued operations 1.05 1.09 Basic net income per share $ 0.29 $ 2.54 Diluted net loss per share: Net income (loss) from continuing operations attributable to Franchise Group $ (28,334) $ 33,984 Less: Preferred dividend declared (2,129) — Adjusted net income (loss) from continuing operations available to Common Stockholders (30,463) 33,984 Net income from discontinued operations attributable to Franchise Group 42,147 25,555 Adjusted net income available to Common Stockholders $ 11,684 $ 59,539 Number of shares used in basic computation 40,110,084 23,373,980 Weighted-average effect of dilutive securities: Weighted average dilutive effect of stock options and restricted stock — 319,055 Weighted-average diluted shares outstanding 40,110,084 23,693,035 Diluted net income (loss) per share: Continuing operations $ (0.76) $ 1.43 Discontinued operations 1.05 1.08 Diluted net income per share $ 0.29 $ 2.51 |
Stock Compensation Plans
Stock Compensation Plans | 3 Months Ended |
Mar. 27, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans | Stock-Based Compensation Plans For a discussion of our stock-based compensation plans, refer to “Note 11 - Stock-Based Compensation Plans” of our Annual Report on Form 10-K for the year ended December 26, 2020. Stock Options Stock option activity during the three months ended March 27, 2021 was as follows: Number of Weighted Outstanding at December 26, 2020 391,409 $ 10.19 Exercised (3,000) 8.30 Expired or forfeited — Outstanding at March 27, 2021 388,409 $ 10.21 Intrinsic value is defined as the fair value of the stock less the cost to exercise. The total intrinsic value of stock options outstanding at March 27, 2021 was $7.7 million. Stock options vest from the date of grant to three years after the date of grant and expire from four to five years after the vesting date. Nonvested stock options activity during the three months ended March 27, 2021 was as follows: Nonvested Weighted Outstanding at December 26, 2020 63,334 $ 8.83 Vested — — Expired or forfeited — — Outstanding at March 27, 2021 63,334 $ 8.83 At March 27, 2021, unrecognized compensation costs related to nonvested stock options were less than $0.1 million. These costs are expected to be expensed through fiscal 2021. The following table summarizes information about stock options outstanding and exercisable at March 27, 2021: Options Outstanding Options Exercisable Range of exercise prices Number Weighted average exercise price Weighted average remaining contractual life (in years) Number Weighted average exercise price $0.00 - $10.89 214,500 $ 8.77 4.0 151,166 $ 8.75 $10.90 - $12.79 173,909 11.98 3.0 173,909 11.98 388,409 $ 10.21 325,075 $ 10.48 Restricted Stock Units The Company has awarded service-based restricted stock units ("RSUs") and performance restricted stock units ("PRSUs") to its non-employee directors, officers and certain employees. The Company recognizes expense based on the estimated fair value of the RSUs or PRSUs granted over the vesting period on a straight-line basis. The fair value of RSUs and PRSUs is determined using the Company's closing stock price on the date of the grant. At March 27, 2021, unrecognized compensation cost related to RSUs and PRSUs were $7.8 million and $13.8 million, respectively. These costs are expected to be recognized through fiscal 2024. The following table summarizes the status of RSUs as of and changes during the three months ended March 27, 2021: Number of restricted stock units Weighted average fair value at grant date Balance at December 26, 2020 296,147 $ 20.51 Granted 115,350 35.58 Vested (72,412) 24.13 Canceled — — Balance at March 27, 2021 339,085 $ 24.86 The following table summarizes the status of PRSUs as of and changes during the three months ended March 27, 2021: Number of restricted stock units Weighted average fair value at grant date Balance at December 26, 2020 618,737 $ 17.00 Granted 102,533 35.36 Vested — — Canceled — — Balance at March 27, 2021 721,270 $ 19.61 Stock Compensation Expense The Company recorded $2.6 and $2.3 million during the three months ended March 27, 2021 and March 28, 2020, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 27, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments As required, financial assets and liabilities are classified in the fair value hierarchy in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgement and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). The Company did not record any significant impairment charges during the three months ended March 27, 2021 and March 28, 2020. Fair Value of Financial Instruments The carrying value of Cash and cash equivalents, restricted cash, accounts receivable and accounts payable as reported in the accompanying unaudited condensed consolidated balance sheets approximate fair value due to their short-term maturities. The carrying amount of Long-term debt approximates fair value because the interest rate paid has a variable component. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 27, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe Company considers directors and their affiliated companies, as well as named executive officers and members of their immediate families, to be related parties. Messrs. Kahn and Laurence Vintage and its affiliates held approximately 28% of the aggregate voting power of the Company through their ownership of common stock as of March 27, 2021. Brian Kahn and Andrew Laurence are principals of Vintage. Mr. Kahn is a member of the Board of Directors, President and Chief Executive Officer of the Company. Mr. Laurence is an Executive Vice President of the Company, a member of the Company's Board of Directors until the Company's annual meeting of stockholders in May 2021 and served as the Company's Chairman of the Board until March 31, 2020. Buddy's Franchises. Mr. Kahn's brother-in-law owns seven Buddy's franchisees. All transactions between the Company's Buddy's segment and Mr. Kahn's brother-in-law are conducted on a basis consistent with other franchisees. Bryant Riley (former director) Mr. Riley, through controlled entities or affiliates held approximately 10% of the aggregate ownership of the Company's common stock as of March 27, 2021. Mr. Riley was also a member of the Company's Board of Directors from September 2018 through March 2020. Credit Agreements. On December 16, 2019, the Company entered into the Vitamin Shoppe Term Loan with an entity controlled by Mr. Riley. On February 14, 2020, the Company entered into a $675 million credit facility, which included a $575 million FGNH Credit Agreement and a $100 million FGNH ABL Term Loan with an entity controlled by Mr. Riley acting as the administrative agent. In the three months ended June 27, 2020, the Company borrowed and repaid an $11.0 million promissory note with B. Riley Financial, Inc. Stock Subscription Agreements. On February 7, 2020, Mr. Riley, and entities or affiliates of Mr. Riley purchased 669,678 shares for $11.4 million under an equity financing agreement. Fee Letters. On February 14, 2020, the Company entered into a fee letter with B. Riley pursuant to which B. Riley was entitled to receive $5 million for advisory services provided for the American Freight Acquisition. B. Riley received payment for these services on June 26, 2020. On February 19, 2020, the Company entered into a fee letter with B. Riley pursuant to which B. Riley received an equity fee equal to 6% of the $36.0 million of equity raised by B. Riley for the Company as part of an equity financing agreement. Backstop ABL Commitment Letter. On May 1, 2020, in connection the American Freight Acquisition and the ABL Credit Agreement, the Company entered into an Amended and Restated ABL Commitment Letter with B. Riley pursuant to which B. Riley agreed to provide, subject to the terms and conditions set forth therein, a backstop commitment for a $100.0 million asset-based lending facility. The ABL Commitment Letter was terminated on September 25, 2020. Underwritten Offering of Common Stock. On June 30, 2020, the Company completed an underwritten offering of its common stock in which with B. Riley FBR, Inc. ("B. Riley FBR"), an affiliate of B. Riley, acted as representative of the underwriters. In connection with the offering, B. Riley FBR and the other underwriters were entitled to an underwriting discount of approximately $5.4 million and reimbursement of certain out-of-pocket expenses incurred in connection with the offering. September 2020 Underwritten Offering of Preferred Stock . On September 18, 2020, the Company completed an underwritten offering of its Series A Preferred Stock in which B. Riley Securities, Inc. (“B. Riley Securities”), an affiliate of B. Riley, acted as representative of the underwriters. In connection with the offering, B. Riley Securities and the other underwriters in the offering were entitled to an underwriting discount and reimbursement of certain out-of-pocket expenses incurred of approximately $0.9 million and B. Riley Securities was entitled to an advisory fee of approximately $0.3 million. bebe Acquisition of 47 Buddy's Stores . The Company sold 47 Buddy's locations to bebe for $35.0 million. B. Riley is partial owner of bebe. The deal was funded by B. Riley including a 1.5 million primary share purchase for $5 per share, cash on hand, and a $22.0 million secured loan. January 2021 Underwritten Offering of Preferred Stock . On January 11, 2021, the Company reopened its original issuance of its Series A Preferred Stock, which closed on September 18, 2020 as noted above. The Company completed the reopened underwritten offering on January 15, 2021 in which B. Riley Securities, an affiliate of B. Riley, acted as representative of the underwriters. In connection with the offering B. Riley Securities and the other underwriters in the offering were entitled to an underwriting discount and reimbursement of certain out-of-pocket expenses incurred of approximately $3.0 million and B. Riley Securities was entitled to a structuring fee of $0.3 million. Debt Commitment Letter and Fee Letter . On January 23, 2021, in connection with the Pet Supplies Plus Acquisition and the refinancing of the Company's existing indebtedness, the Company entered into a debt commitment letter with, among others, BRF Finance Co., LLC (“BRF”), an affiliate of B. Riley, pursuant to which BRF committed to provide (i) $100.0 million of a then-contemplated first lien term loan credit facility and (ii) $300.0 million of a then-contemplated senior unsecured term loan credit facility (the “Senior Unsecured Facility”). On January 23, 2021, the Company entered into a fee letter with BRF pursuant to which (a) BRF committed to provide $100.0 million of an alternative then-contemplated first lien term loan credit facility (the “Alternative First Lien Facility”) and (b) BRF (or its affiliates) received, on March 10, 2021, (i) a $9.0 million arrangement fee as consideration for BRF’s commitments and agreements with respect to the Senior Unsecured Facility and (ii) a $1.0 million take-out fee as consideration for BRF’s commitments and agreements with respect to the Alternative First Lien Facility. M. Brent Turner Mr. Turner is the President and Chief Executive Officer of the Company’s Liberty Tax business. Revolution Financial Tax Program Agreement . The Company entered into a one the Company agreed to pay up to $5,000.00 per Revolution location towards the cost associated with replacing the exterior signage of Revolution locations with Liberty branded signage, and (iii) the Company agreed to pay 60%, and Revolution agreed to pay 40%, of the costs associated with local store marketing materials. As of March 27, 2021, the Company has earned less than $0.1 million in royalties related to the Revolution Tax Program Agreement. Revolution Financial Loan Program Agreement . The Company entered into a one Revolution agreed to pay a management fee to the Company and/or franchisee in an amount equal to fifty percent (50)% of the monthly Net Revenue (as defined in the Revolution Loan Program Agreement) during each calendar month (or portion thereof). As of March 27, 2021, the Company had not earned any revenue or incurred any expenses related to the Revolution Loan Program Agreement. Revolution Financial Canada Loan Program Agreement . The Company entered into a Loan Program Agreement with Revolution (the “Revolution Canada Loan Program Agreement”) commencing on January 31, 2021 and continuing until April 30, 2021. Under the Revolution Canada Loan Program Agreement, the Company, through its subsidiary, Liberty Tax Service, Inc. is (i) arranging for Revolution to provide up to $20.0 million of loans to its Canadian franchisees to fund the tax rebate discounting services, and (ii) agreeing to provide various services in connection with loans, including facilitating repayment of loans from the tax refund proceeds. In addition to providing loan servicing, the Company agreed to pay Revolution $0.2 million as a facility arrangement fee. At the conclusion of the term of the Loan Program Agreement, Revolution shall pay to the Company a servicing fee in an amount equal to the difference between $0.2 million minus the aggregate interest and origination fees received by Revolution from participating franchisees in connection with the loans; provided, however, that (i) if such difference is a negative number, Revolution agreed to pay Liberty $0.2 million, and (ii) if there exists any principal loan losses at such time, Revolution may offset such principal loan losses against any servicing fee due to Liberty. As of March 27, 2021, the Company had not earned any revenue or incurred any expenses related to the Revolution Canada Loan Program Agreement. Tax Receivable Agreement In connection with the acquisition of Buddy's, the Company entered into the Tax Receivable Agreement with the Buddy's Members that provides for the payment to the Buddy's Members of 40% of the amount of any tax benefits that the Company actually realizes as a result of increases in the tax basis of the net assets of New Holdco resulting from any redemptions or exchanges of New Holdco units. Amounts due under the Tax Receivable Agreement to the Buddy's Members as of March 27, 2021 were $16.8 million which is recorded in "Other non-current liabilities" in the accompanying condensed consolidated balance sheets. No payments were made to member of New Holdco pursuant to the Tax Receivable Agreement during the quarter ended March 27, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 27, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of operations, the Company may become a party to legal proceedings. Based upon information currently available, management believes that such legal proceedings, individually or in the aggregate, will not have a material adverse effect on the Company's business, financial condition, cash flows, or results of operations except as provided below. Guarantees The Company remains secondarily liable under various real estate leases that were assigned to franchisees who acquired Pet Supplies Plus stores from the Company. In the event of the failure of an acquirer to pay lease payments, the Company could be obligated to pay the remaining lease payments which extend through 2030 and aggregated $8.9 million as of March 27, 2021. If the Company is required to make payments under these guarantees, the Company could seek to recover those amounts from the franchisees or in some cases their affiliates. The Company believes that payment under these guarantees is remote as of March 27, 2021. Stockholder Class Action and Derivative Complaint On August 12, 2019, Asbestos Workers’ Philadelphia Pension Fund, individually and on behalf of all others similarly situated and derivatively on behalf of the Company filed a class action and derivative complaint (the “Derivative Complaint”) in the Court of Chancery of the State of Delaware, against Matthew Avril, Patrick A. Cozza, Thomas Herskovits, Brian R. Kahn, Andrew M. Laurence, Lawrence Miller, G. William Minner Jr., Bryant R. Riley, Kenneth M. Young, (collectively the “Derivative Complaint Individual Defendants”), and against Vintage, B. Riley Financial, Inc. ("B. Riley"), and the Company as a Nominal Defendant. The Derivative Complaint alleges breach of fiduciary duty against the Derivative Complaint Individual Defendants based on the following allegations: (a) causing the Company to completely transform its business model and to acquire Buddy’s at an inflated price, (b) transfer the control of the Company to Vintage and B. Riley for no premium and without a stockholder vote, (c) allowing Vintage and B. Riley’s other former stockholders to unfairly extract additional value from the Company by virtue of a TRA, (d) the offering to the Company's non-Vintage and non-B. Riley stockholders of an inadequate price for their shares of Company stock ($12.00 per share), (e) disseminating materially misleading and/or omissive Tender Offer documents, and (f) issuing additional Company shares to Vintage at less than fair value to fund the Tender Offer and Vitamin Shoppe Acquisition. The Derivative Complaint also includes a count of unjust enrichment against Vintage and B. Riley. The Derivative Complaint seeks: (a) declaration that the action is properly maintainable as a class action; (b) a finding the Individual Defendants are liable for breaching their fiduciary duties owed to the class and the Company; (c) a finding that demand on the Company's Board is excused as futile; (d) enjoining the consummation of the Tender Offer unless and until all material information necessary for the Company's stockholders to make a fully informed tender decision has been disclosed; (e) a finding Vintage and B. Riley are liable for unjust enrichment; (f) an award to Plaintiff and the other members of the class damages in an amount which may be proven at trial; (g) an award to Plaintiff and the other members of the class pre-judgment and post-judgment interest, as well as their reasonable attorneys’ and expert witness fees and other costs; (h) an award to the Company in the amount of damages it sustained as a result of Individual Defendants’ breaches of fiduciary duties to the Company; and (i) awarding such other and further relief as this Court may deem just and proper. Simultaneously with the filing of the Derivative Complaint, the Plaintiff filed a motion seeking expedited proceedings. The motion was withdrawn as the Derivative Complaint Individual Defendants agreed to produce certain documents. On October 23, 2019, the Plaintiff filed a Verified Amended Stockholder Class Action and Derivative Complaint (the “Amended Complaint”), following the Company’s filing of the amended and restated offer to purchase on October 16, 2019 (the “Offer to Purchase”). The Amended Complaint contained substantially similar allegations but revised certain allegations based on disclosures contained in, or purportedly omitted, from the Offer to Purchase. The Plaintiff filed a Motion for Preliminary Injunction on October 25, 2019, seeking to prevent the consummation of the pending Offer to Purchase unless additional information was disclosed. On November 5, 2019, the Company filed Amendment No. 5 to the Offer to Purchase making certain additional disclosures, and Plaintiff withdrew its Motion for Preliminary Injunction. On February 7, 2020, Matthew Sciabacucchi, a purported stockholder of the Company, filed a motion to intervene to pursue some or all of the derivative claims pending in the Court of Chancery. Mr. Sciabacucchi’s motion states that Asbestos Workers’ Philadelphia Pension Fund has sold its shares in the Company. The motion to intervene was granted March 10, 2020. On June 8, 2020 the Court entered an order governing briefing on Plaintiff’s petition for an interim award of attorney’s fees. The Court held oral arguments on August 18, 2020 and reserved decision on Plaintiff’s motion for interim fees. On September 29, 2020, the parties agreed to settle this matter in principle and the matter has been stayed pending the parties’ filing of settlement papers. The settlement contained broad and customary releases. On April 16, 2021, the Delaware Court of Chancery approved the settlement agreement between the parties. This settlement fully and finally resolves this matter. As of March 27, 2021, the Company had accrued $0.5 million related to this case, which is included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheet. Class Action Litigation Rene Labrado v. JTH Tax, Inc. On July 3, 2018, a class action complaint was filed in the Superior Court of California, County of Los Angeles by a former employee for herself and on behalf of all other “similarly situated” persons. The Complaint alleges, among other things, that the Company allegedly violated various provisions of the California Labor Code, including: unpaid overtime, unpaid meal period premiums, unpaid rest premiums, unpaid minimum wages, final wages not timely paid, wages not timely paid, non-compliant wage statements, failure to keep pay records, unreimbursed business expenses and violation of California Business and Profession Code Section 17200. The Complaint seeks actual, consequential and incidental losses and damages, injunctive relief and other damages. The Company highly disputes the allegations set forth in the Complaint and filed a motion to dismiss. On May 29, 2019, the Court denied the Company’s motion to dismiss, but granted the Company leave to file a motion to strike. The Company filed a motion to strike and on August 20, 2019, the Court granted in part and denied in part the Company’s motion. The Court provided the Company with twenty days to file its answer to the Complaint and lifted the discovery stay. Discovery in this matter is ongoing and the parties have agreed to participate in a mediation currently scheduled to take place in May 2021. Department of Justice ("DOJ") and IRS Matters On December 3, 2019, the DOJ initiated a legal proceeding against the Company, in the U.S. District Court for the Eastern District of Virginia. Also, on December 3, 2019, the DOJ and the Company filed a joint motion asking the court to approve a proposed order setting forth certain enhancements to the Company's Liberty Tax segments compliance program and requiring the Company to retain an independent monitor to oversee the implementation of the required enhancements to the compliance program. The monitor will work with the Company's Liberty Tax segments compliance team and may make recommendations for further refinements to improve the tax compliance program. As part of the proposed order, the Company also agreed that it would not rehire or otherwise engage the Company’s former chairman, John T. Hewitt, under whose supervision the conduct at issue occurred, and agreed not to grant Mr. Hewitt any options or other rights to acquire equity in the Company, or to nominate him to the Company’s Board of Directors. On December 20, 2019 the Court granted the joint motion for the proposed order and the confidentiality motion, which fully resolved the legal proceeding initiated by DOJ. In addition, the Company entered into a settlement agreement resolving the previously disclosed investigation by the IRS with respect to the tax return preparation activities of the Company’s Liberty Tax segments franchise operations and Company-owned stores. Pursuant to that agreement, the Company agreed to make a compliance payment to the IRS in the amount of $3.0 million, to be paid in installments over four years, starting with an upfront payment of $1.0 million, followed by a $0.5 million payment on each anniversary thereof. As previously disclosed, the Company expects that the increased costs to enhance its compliance program could exceed $1.0 million per year over several years, in addition to the costs necessary to resolve the investigation. Other Matters Convergent Mobile, Inc. v. JTH Tax, Inc . On August 26, 2019, Convergent Mobile, Inc. (“Convergent”) filed a complaint in the Superior Court of the State of California, County of Sonoma, against the Company (the "California Complaint"). The California Complaint alleges that the Company breached a contract between it and Convergent, and Convergent has asserted counts for breach of contract, promissory estoppel, and breach of the covenant of good faith and fair dealing. The California Complaint generally seeks damages according to proof, special damages according to proof, interest, attorneys’ fees and cost. The Company removed the matter to the federal district court for the Northern District of California and filed a motion to dismiss and motion to strike. On January 16, 2020, the Court vacated the previously scheduled hearing on Company’s motion to dismiss and motion to strike and stated a written opinion would be forthcoming. On April 22, 2020, the Court granted in part and denied in part the Company's motion to dismiss. The Court denied the Company's motion to strike. The Company filed its answer and a counterclaim against Convergent. On December 3, 2020 the Court entered a Case Management Order whereby the Court set a tentative trial date to start on either March 15, 2021 or March 29, 2021 and a pre-trial conference scheduled for either February 26, 2021 or March 12, 2021. The Company also filed a motion for partial summary judgment in December of 2020. The Court held oral arguments on that motion on January 19, 2021, which remains pending before the Court. The Court held a bench trial in this matter which started on March 29, 2021 and concluded on April 2, 2021. The parties post-trial briefs were filed on April 12, 2021. On April 23, 2021 the Court ruled in favor of the plaintiff and awarded a judgement of $0.6 million which is accrued in Current liabilities held for sale of discontinued operations in the accompanying condensed consolidated balance sheet. The Company is also party to claims and lawsuits that are considered to be ordinary, routine litigation incidental to the business, including claims and lawsuits concerning the preparation of customers' income tax returns, the fees charged to customers for various products and services, relationships with franchisees, intellectual property disputes, employment matters, and contract disputes. Although the Company cannot provide assurance that it will ultimately prevail in each instance, it believes the amount, if any, it will be required to pay in the discharge of liabilities or settlements in these claims will not have a material adverse impact on its consolidated results of operations, financial position, or cash flows. |
Segments (Notes)
Segments (Notes) | 3 Months Ended |
Mar. 27, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | (14) Segments The Company's operations are conducted in four reporting business segments: Vitamin Shoppe, American Freight, Pet Supplies Plus and Buddy's. The Company defines its segments as those operations which results its chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources. The results of operations of American Freight are included in the Company's results of operations beginning on February 14, 2020 and the results of operations of Pet Supplies Plus are included in the Company's results of operations beginning on March 11, 2021. As a result of the Company's entry into the Purchase Agreement to sell its Liberty Tax business, as discussed in "Note 3. Divestitures," the Company's Liberty Tax business is not reported in segment information since this business is reported as a discontinued operation. Current and prior year amounts have been revised to reflect the change. The Vitamin Shoppe segment is an omni-channel specialty retailer and wellness lifestyle company with the mission of providing customers with the most trusted products, guidance, and services to help them become their best selves, however they define it. The Vitamin Shoppe segment offers a comprehensive assortment of nutritional solutions, including vitamins, minerals, specialty supplements, herbs, sports nutrition, homeopathic remedies, green living products, and natural beauty aids. The Vitamin Shoppe segment consists of our operations under the "Vitamin Shoppe" brand and is headquartered in Secaucus, New Jersey. The American Freight segment provides in-store and online access to purchase new, one-of-a-kind, out-of-box, discontinued, obsolete, reconditioned, overstocked, scratched and dented household appliances and unbranded furniture and mattresses at value prices. The American Freight segment consists of our operations under the "American Freight" banner and is headquartered in Delaware, Ohio. The Pet Supplies Plus segment is a franchisor and retailer in the pet industry. Pet Supplies Plus has a diversified revenue model comprised of corporate store revenue, royalties and wholesale distribution to franchisees. The Pet Supplies Plus segment consists of the Company's operations under the "Pet Supplies Plus" brand and is headquartered in Livonia, Michigan. The Buddy's segment leases and sells electronics, residential furniture, appliances and household accessories. The Buddy's segment consists of the Company's operations under the "Buddy's" brand and is headquartered in Orlando, Florida. The Company measures the results of its segments, using, among other measures, each segment's total consolidated revenue, consolidated depreciation, amortization, and impairment charges and consolidated income (loss) from operations. The Company may revise the measurement of each segment's income (loss) from operations as determined by the information regularly reviewed by the CODM. When the measurement of a segment changes, previous period amounts and balances are reclassified to be comparable to the current period's presentation. Total revenues by segment were as follows: Three Months Ended (In thousands) March 27, 2021 March 28, 2020 Total revenue: Vitamin Shoppe $ 294,739 $ 275,888 American Freight 258,517 202,747 Pet Supplies Plus 51,309 — Buddy's 16,780 24,312 Consolidated total revenue $ 621,345 $ 502,947 Depreciation, amortization, and impairment charges by segment are as follows: Three Months Ended (In thousands) March 27, 2021 March 28, 2020 Depreciation, amortization, and impairment charges: Vitamin Shoppe $ 7,242 $ 11,310 American Freight 1,890 912 Pet Supplies Plus 1,431 — Buddy's 895 1,640 Consolidated depreciation, amortization, and impairment charges $ 11,458 $ 13,862 Operating income (loss) by segment were as follows: Three Months Ended (In thousands) March 27, 2021 March 28, 2020 Income (loss) from operations: Vitamin Shoppe $ 33,275 $ (5,476) American Freight 25,130 1,586 Pet Supplies Plus (4,169) — Buddy's 4,273 3,345 Total Segments 58,509 (545) Corporate (5,533) (2,300) Consolidated income (loss) from operations $ 52,976 $ (2,845) Total assets by segment were as follows: (In thousands) March 27, 2021 December 26, 2020 Total assets: Vitamin Shoppe $ 589,848 $ 607,148 American Freight 867,096 801,731 Pet Supplies Plus 928,096 — Buddy's 139,210 137,698 Total Segments 2,524,250 1,546,577 Corporate 199,368 203,196 Consolidated total assets $ 2,723,618 $ 1,749,773 Goodwill by segment is as follows: (In thousands) March 27, 2021 December 26, 2020 Goodwill: Vitamin Shoppe $ 1,277 $ 1,277 American Freight 371,175 367,882 Pet Supplies Plus 335,134 — Buddy's 79,099 79,099 Consolidated goodwill $ 786,685 $ 448,258 |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Events (Notes) | 3 Months Ended |
Mar. 27, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent EventsOn May 4, 2021, the Company's Board of Directors declared quarterly dividends of $0.375 per share of common stock and $0.46875 per share of Series A Preferred Stock. The dividends will be paid in cash on or about July 15, 2021 to holders of record of the Company's common stock and Series A Preferred Stock on the close of business on July 1, 2021. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 27, 2021 | |
Accounting Policies [Abstract] | |
Description of Business | (1) Organization and Significant Accounting Policies Description of Business Franchise Group, Inc. (the "Company"), a Delaware corporation, is an owner and operator of franchised and franchisable businesses that continually looks to grow its portfolio of brands while utilizing its operating and capital allocation philosophies to generate strong cash flow for its stockholders. On February 14, 2020, the Company completed its acquisition of the American Freight Group, Inc. ("American Freight"). On February 21, 2021, the Company entered into an agreement to sell its' Liberty Tax business as described in "Note 3. Divestitures" and now accounts for Liberty Tax as a discontinued operation. On March 10, 2021, the Company completed its acquisition of PSP Midco, LLC ("Pet Supplies Plus") as described in “Note 2. Acquisitions.” Segment Information The Company currently operates in four reportable segments: Buddy’s, Vitamin Shoppe, American Freight and Pet Supplies Plus. The Buddy's segment is a specialty retailer of high quality, name-brand consumer electronics, residential furniture, appliances and household accessories through rent-to-own agreements. The Vitamin Shoppe segment is an omni-channel specialty retailer of vitamins, herbs, specialty supplements, sports nutrition and other health and wellness products. The American Freight segment is a retail chain offering in-store and online access to furniture, mattresses, new and out-of-box home appliances and home accessories at discount prices. The Pet Supplies Plus segment is a specialty retailer that offers a wide assortment of pet products (food, treats, hard good and other products) and services through Company-owned and franchised locations. |
Principles of Consolidation | Principles of Consolidation The Company consolidates any entities in which it has a controlling interest, the usual condition of which is ownership of a majority voting interest. Prior to April 1, 2020, the Company was the sole managing member of Franchise Group New Holdco LLC ("New Holdco") and possessed ownership of more than 50 percent of the outstanding voting units. As a result, the Company consolidated the financial results of New Holdco and reported a non-controlling interest that represented the interests of the New Holdco units not held by the Company. As of April 1, 2020, the Company redeemed all outstanding New Holdco units for shares of common stock of the Company and now has an 100% interest in New Holdco. The Company does not possess any ownership interests in franchisee entities; however, the Company may provide financial support to franchisee entities. Because the Company's franchise arrangements provide franchisee entities the power to direct the activities that most significantly impact their economic performance, the Company does not consider itself the primary beneficiary of any such entity that meets the definition of a variable interest entity ("VIE"). Based on the results of management's analysis of potential VIEs, the Company has not consolidated any franchisee entities. The Company's maximum exposure to loss resulting from involvement with potential VIEs is attributable to accounts and notes receivables and future lease payments due from franchisees. When the Company does not have a controlling interest in an entity but has the ability to exert significant influence over the entity, the Company applies the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. The condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required only in annual financial statements. The consolidated balance sheet data as of December 26, 2020 was derived from the Company’s Annual Report on Form 10-K (the "2020 Annual Report"), filed with the U.S. Securities and Exchange Commission (the "SEC") on March 10, 2021. In the opinion of management, all adjustments necessary for a fair presentation of such condensed consolidated financial statements in accordance with GAAP have been recorded. These adjustments consisted only of normal recurring items. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its 2020 Annual Report. Revenues have been classified into product, service and other and rental revenues as further discussed in "Note 6. Revenue." Costs of sales for product includes the cost of merchandise, transportation and warehousing costs. Service and other costs of sales include the direct costs of warranties. Rental cost of sales represents the amortization of inventory costs over the leased term. Other operating expenses, including employee costs, depreciation and amortization, and advertising expenses have been classified in selling, general and administrative expenses. The Company also includes occupancy costs in selling, general and administrative expenses. Assets and liabilities of the Company's Canadian operations, which are included in discontinued operations, have been translated into U.S. dollars using the exchange rate in effect at the end of the period. Revenues and expenses have been translated using the average exchange rates in effect each month of the period. Foreign exchange transaction gains and losses are recognized when incurred. The Company reclassifies to accounts payable checks issued in excess of funds available and reports them as cash flow from operating activities. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Discontinued Operations | Discontinued OperationsAs previously disclosed, on February 21, 2021 the Company entered into a purchase agreement (the " Purchase Agreement") to sell its Liberty Tax business to NextPoint Acquisition Corp ("NextPoint"), a special purpose acquisition corporation incorporated under the laws of the Province of British Columbia. As a result of this agreement, the financial position and results of operations of the Liberty Tax segment are presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. The accompanying Notes to the Condensed Consolidated Financial Statements and all prior year balances have been reclassified to conform to this presentation. Please refer to "Note 3. Divestitures" for additional information regarding discontinued operations. |
New Accounting Pronouncements, Policy | Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, " Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ", which changes how companies will measure credit losses for most financial assets and certain other instruments that aren't measured at fair value through net income. The standard replaces the "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost (which generally will result in the earlier recognition of allowances for losses) and requires companies to record allowances for available-for-sale debt securities, rather than reduce the carrying amount. In addition, companies will have to disclose significantly more information, including information used to track credit quality by year of origination, for most financing receivables. The ASU should be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the standard is effective. The ASU is effective for the Company for the fiscal year beginning December 25, 2022. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ” This standard eliminates Step 2 from the goodwill impairment test. Instead, an entity should compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The ASU is effective for the Company for the fiscal year beginning December 25, 2022. The Company is currently evaluating the impact of the adoption of this standard to its consolidated financial statements. The London Interbank Offered Rate (“LIBOR”) is scheduled to be discontinued on December 31, 2021. In an effort to address the various challenges created by such discontinuance, the FASB issued an amendment to existing guidance, ASU No. 2020-04, " Reference Rate Reform ." The amended guidance is designed to provide relief from the accounting analysis and impacts that may otherwise be required for modifications to agreements (e.g., loans, debt securities, derivatives, borrowings) necessitated by the reference rate reform. It also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by the reference rate reform. Application of the guidance in the amendment is optional, is only available in certain situations, and is only available for companies to apply until December 31, 2022. The Company is currently evaluating the impacts of reference rate reform and the new guidance on its consolidated financial statements. |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below summarizes the unaudited preliminary estimates of the fair values of the identifiable assets acquired and liabilities assumed in the Pet Supplies Plus Acquisition as of March 10, 2021. The preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed are subject to revisions, which may result in an adjustment to the preliminary values presented below. The Company expects to complete the purchase price allocation as soon as reasonably possible but not to exceed one year from the Pet Supplies Plus Acquisition date. (In thousands) Preliminary 3/10/2021 Cash and cash equivalents $ 2,131 Other current assets 41,214 Inventories, net 118,600 Property, equipment and software, net 75,607 Goodwill 335,134 Operating lease right-of-use assets 142,216 Other intangible assets, net 205,800 Other non-current assets 6,888 Total assets 927,590 Current operating lease liabilities 26,369 Accounts payable and accrued expenses 80,404 Other current liabilities 3,372 Current installments of long-term obligations 3,507 Long-term obligations, excluding current installments 247,458 Non-current operating lease liabilities 104,301 Other long-term liabilities 9,761 Total liabilities 475,172 Consideration transferred $ 452,418 (In thousands) Preliminary 12/27/2020 Cash and cash equivalents $ 6 Other current assets 96 Inventories, net 6,450 Property, equipment and software, net 2,934 Goodwill 3,293 Operating lease right-of-use assets 26,571 Total assets 39,350 Current operating lease liabilities 2,587 Other current liabilities 299 Non-current operating lease liabilities 22,624 Total liabilities 25,510 Consideration transferred $ 13,840 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments | The following unaudited consolidated pro forma summary has been prepared by adjusting the Company's historical data to give effect to the Pet Supplies Plus and American Freight Acquisition as if they had occurred on December 28, 2019. Pro forma (Unaudited) Three Months Ended (In thousands) March 27, 2021 March 28, 2020 Revenue $ 891,415 $ 836,326 Net income 62,604 3,956 Basic net income per share $ 1.56 $ 0.17 Diluted net income per share $ 1.53 $ 0.17 |
Divestitures (Tables)
Divestitures (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following is a summary of the major categories of assets and liabilities for the Liberty Tax business. The balances for all periods are included in assets and liabilities held for sale in the Condensed Consolidated Balance Sheet. (In thousands) March 27, 2021 December 26, 2020 Assets (Unaudited) (Unaudited) Current assets: Cash and cash equivalents $ 19,680 $ 2,722 Current receivables, net 50,524 33,525 Other current assets 13,878 6,776 Total current assets 84,082 43,023 Property, equipment, and software, net 9,160 7,634 Non-current receivables, net 3,077 3,889 Goodwill 9,063 8,719 Intangible assets, net 23,129 24,804 Operating lease right-of-use assets 8,620 8,771 Other non-current assets 1,188 1,299 Total assets held for sale $ 138,319 $ 98,139 Liabilities and Stockholders' Equity Current liabilities: Current installments of long-term obligations $ 436 $ 1,335 Current operating lease liabilities 4,639 4,658 Accounts payable and accrued expenses 19,344 20,200 Other current liabilities 14,542 14,383 Total current liabilities 38,961 40,576 Long-term obligations, excluding current installments 1,670 1,711 Non-current operating lease liabilities 4,699 4,738 Other non-current liabilities 2,185 2,330 Total liabilities held for sale $ 47,515 $ 49,355 The following is a Condensed Consolidated Statement of Operations for the Liberty Tax business. The amounts for all periods are included in "Income (loss) from discontinued operations, net of tax" in the Company's Condensed Consolidated Statements of Operations. Three Months Ended (In thousands) March 27, 2021 March 28, 2020 Revenue $ 76,480 $ 89,618 Selling, general, and administrative expenses 34,061 40,937 Income from operations 42,419 48,681 Other expense: Other 153 (35) Interest expense, net (11) (1,240) Income before income taxes 42,561 47,406 Income tax expense 414 10,052 Net Income 42,147 37,354 Less: Net (income) attributable to non-controlling interest — (11,799) Net income attributable to discontinued operations $ 42,147 $ 25,555 The following is the operating and investing activities for the Liberty Tax business. These amounts are included in the Company's Condensed Consolidated Statement of Cash Flows. Three Months Ended (In thousands) March 27, 2021 March 28, 2020 Cash flows provided by operating activities from discontinued operations 15,787 39,809 Cash flows provided by investing activities from discontinued operations 2,058 17,662 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill for the three months ended March 27, 2021 are as follows: (In thousands) March 27, 2021 Balance at beginning of period $ 448,258 Pet Supplies Plus Acquisition 335,134 FFO Acquisition 3,293 Balance at end of period $ 786,685 |
Schedule of the amortizable other intangible assets | Components of intangible assets as of March 27, 2021 and December 26, 2020 were as follows: March 27, 2021 (In thousands) Gross carrying amount Accumulated amortization Net carrying amount Tradenames (1) $ 197,700 $ — $ 197,700 Customer contracts 43,080 (2,675) 40,405 Franchise agreements 77,600 (2,216) 75,384 Reacquired rights 1,478 (554) 924 Total intangible assets $ 319,858 $ (5,445) $ 314,413 (1) Tradenames have an indefinite life and are tested for impairment on an annual basis. December 26, 2020 (In thousands) Gross carrying amount Accumulated amortization Net carrying amount Tradenames (1) $ 93,300 $ — $ 93,300 Customer contracts 8,780 (2,158) 6,622 Franchise agreements 10,500 (1,546) 8,954 Reacquired rights 1,478 (462) 1,016 Total intangible assets $ 114,058 $ (4,166) $ 109,892 |
Long-Term Obligations (Tables)
Long-Term Obligations (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term obligations at March 27, 2021 and December 26, 2020 were as follows: (In thousands) March 27, 2021 December 26, 2020 Revolving credit facilities $ — $ 78,310 Term loan, net of debt issuance costs 1,250,788 491,837 Finance lease liabilities 4,358 850 Total long-term obligations 1,255,146 570,997 Less current installments 12,014 104,053 Total long-term obligations, excluding current installments, net $ 1,243,132 $ 466,944 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of accumulated other comprehensive loss at March 27, 2021 and December 26, 2020 were as follows: (In thousands) March 27, 2021 December 26, 2020 Foreign currency adjustment $ (1,032) $ (1,254) Interest rate swap agreements, net of tax (97) (145) Forward contracts related to foreign currency exchange rates 17 — Total accumulated other comprehensive loss $ (1,112) $ (1,399) |
Schedule of computation of basic and diluted net income (loss) per share | The computation of basic and diluted net income (loss) per share for the three months ended March 27, 2021 and March 28, 2020 is as follows: Three Months Ended Three Months Ended Common Stock Common Stock (In thousands, except for share and per Basic net income (loss) per share: Net income (loss) from continuing operations attributable to Franchise Group $ (28,334) $ 33,984 Less: Preferred dividend declared (2,129) — Adjusted net income (loss) from continuing operations available to Common Stockholders (30,463) 33,984 Net income from discontinued operations attributable to Franchise Group 42,147 25,555 Adjusted net income (loss) available to Common Stockholders $ 11,684 $ 59,539 Weighted-average common stock outstanding 40,110,084 23,373,980 Basic net income (loss) per share: Continuing operations $ (0.76) $ 1.45 Discontinued operations 1.05 1.09 Basic net income per share $ 0.29 $ 2.54 Diluted net loss per share: Net income (loss) from continuing operations attributable to Franchise Group $ (28,334) $ 33,984 Less: Preferred dividend declared (2,129) — Adjusted net income (loss) from continuing operations available to Common Stockholders (30,463) 33,984 Net income from discontinued operations attributable to Franchise Group 42,147 25,555 Adjusted net income available to Common Stockholders $ 11,684 $ 59,539 Number of shares used in basic computation 40,110,084 23,373,980 Weighted-average effect of dilutive securities: Weighted average dilutive effect of stock options and restricted stock — 319,055 Weighted-average diluted shares outstanding 40,110,084 23,693,035 Diluted net income (loss) per share: Continuing operations $ (0.76) $ 1.43 Discontinued operations 1.05 1.08 Diluted net income per share $ 0.29 $ 2.51 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of information about stock options outstanding and exercisable | The following table summarizes information about stock options outstanding and exercisable at March 27, 2021: Options Outstanding Options Exercisable Range of exercise prices Number Weighted average exercise price Weighted average remaining contractual life (in years) Number Weighted average exercise price $0.00 - $10.89 214,500 $ 8.77 4.0 151,166 $ 8.75 $10.90 - $12.79 173,909 11.98 3.0 173,909 11.98 388,409 $ 10.21 325,075 $ 10.48 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | three months ended March 27, 2021: Number of restricted stock units Weighted average fair value at grant date Balance at December 26, 2020 296,147 $ 20.51 Granted 115,350 35.58 Vested (72,412) 24.13 Canceled — — Balance at March 27, 2021 339,085 $ 24.86 |
Schedule of stock option activity | Stock option activity during the three months ended March 27, 2021 was as follows: Number of Weighted Outstanding at December 26, 2020 391,409 $ 10.19 Exercised (3,000) 8.30 Expired or forfeited — Outstanding at March 27, 2021 388,409 $ 10.21 |
Schedule of nonvested (options that did not vest in the period in which granted) stock option activity | Nonvested stock options activity during the three months ended March 27, 2021 was as follows: Nonvested Weighted Outstanding at December 26, 2020 63,334 $ 8.83 Vested — — Expired or forfeited — — Outstanding at March 27, 2021 63,334 $ 8.83 |
Organization and Significant _3
Organization and Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2021 | Mar. 28, 2020 | Dec. 26, 2020 | |
Geographical concentration | |||
Revenue, Remaining Performance Obligation, Amount | $ 45,225 | ||
Deferred Revenue | 45,225 | $ 25,616 | |
Income Taxes Receivable, Current | 15,505 | 13,649 | |
Intangible Assets, Net (Excluding Goodwill) | 314,413 | 109,892 | |
Assets | 2,861,937 | 1,847,912 | |
Deferred Revenue, Current | 37,635 | 25,174 | |
Liabilities | 2,398,477 | 1,462,745 | |
Retained Earnings (Accumulated Deficit) | 19 | 3,769 | |
Stockholders' Equity Attributable to Parent | 463,460 | 385,167 | |
Liabilities and Equity | 2,861,937 | $ 1,847,912 | |
General and Administrative Expense | 225,545 | $ 211,276 | |
Operating Income (Loss) | 52,976 | (2,845) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (31,185) | (31,377) | |
Income Tax Expense (Benefit) | (2,851) | (55,921) | |
Net Income (Loss) Attributable to Parent | 13,813 | 59,539 | |
New Deferrals of Franchise and AD Fees | 29,475 | ||
Revenues | $ 621,345 | $ 502,947 |
Organization and Significant _4
Organization and Significant Accounting Policies Organization and Significant Accounting Policies (Details 2) $ in Thousands | Mar. 27, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 45,225 |
Acquisition (Details)
Acquisition (Details) $ / shares in Units, $ in Thousands | Mar. 27, 2021USD ($) | Mar. 10, 2021USD ($) | Dec. 27, 2020USD ($)business | Feb. 14, 2020USD ($) | Mar. 27, 2021USD ($)$ / shares | Mar. 28, 2020USD ($)$ / shares | Dec. 26, 2020USD ($) |
Business Combination, Separately Recognized Transactions, Revenues and Gains Recognized | $ 891,415 | $ 836,326 | |||||
Revenues | 621,345 | 502,947 | |||||
Net Income (Loss) Attributable to Parent | 13,813 | 59,539 | |||||
Goodwill | $ 786,685 | 786,685 | $ 448,258 | ||||
Long-term Debt, Current Maturities | 12,014 | 12,014 | 104,053 | ||||
Long-term Debt, Excluding Current Maturities | 1,243,132 | 1,243,132 | $ 466,944 | ||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | $ 62,604 | $ 3,956 | |||||
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | $ 1,700 | ||||||
Basic Earnings Per Share, Pro Forma | $ / shares | $ 1.56 | $ 0.17 | |||||
Diluted Earnings Per Share Pro Forma | $ / shares | $ 1.53 | $ 0.17 | |||||
Pet Supplies Plus | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 2,131 | ||||||
Adjustment, Lease Right of Use | 12,400 | ||||||
Noncash or Part Noncash Acquisition, Investments Acquired | 205,800 | ||||||
Business Combination, Consideration Transferred | 452,400 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 41,214 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 118,600 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 75,607 | ||||||
Goodwill | 335,134 | ||||||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Right-Of-Use Asset | 142,216 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 6,888 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 927,590 | ||||||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Operating Lease, Liability, Current | 26,369 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 80,404 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 3,372 | ||||||
Long-term Debt, Current Maturities | 3,507 | ||||||
Long-term Debt, Excluding Current Maturities | 247,458 | ||||||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Operating Lease, Liability, Noncurrent | 104,301 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 9,761 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 475,172 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 452,418 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Restricted Cash | 400 | ||||||
FFO | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 6 | ||||||
Adjustment, Lease Right of Use | 1,400 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 96 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 6,450 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 2,934 | ||||||
Goodwill | 3,293 | ||||||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Right-Of-Use Asset | 26,571 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 39,350 | ||||||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Operating Lease, Liability, Current | 2,587 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 299 | ||||||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Operating Lease, Liability, Noncurrent | 22,624 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 25,510 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 13,840 | ||||||
Business Combination, Acquisition Related Costs | $ 4,800 | $ 100 | |||||
Payments to Acquire Businesses, Gross | $ 13,800 | ||||||
Number of Businesses Acquired | business | 31 | ||||||
American Freight [Member] | |||||||
Business Combination, Consideration Transferred | $ 357,300 | ||||||
Leasehold Improvements [Member] | Pet Supplies Plus | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 33,500 | ||||||
Leasehold Improvements [Member] | FFO | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 2,500 | ||||||
Furniture, Fixtures, And Equipment [Member] | Pet Supplies Plus | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 37,000 | ||||||
Furniture, Fixtures, And Equipment [Member] | FFO | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 400 | ||||||
Construction in Progress [Member] | Pet Supplies Plus | |||||||
Machinery and Equipment, Gross | 3,500 | ||||||
Trade Names [Member] | Pet Supplies Plus | |||||||
Noncash or Part Noncash Acquisition, Investments Acquired | 104,400 | ||||||
Franchise Rights [Member] | Pet Supplies Plus | |||||||
Noncash or Part Noncash Acquisition, Investments Acquired | 67,100 | ||||||
Customer Relationships | Pet Supplies Plus | |||||||
Noncash or Part Noncash Acquisition, Investments Acquired | $ 34,300 |
Divestitures - Narrative (Detai
Divestitures - Narrative (Details) - Liberty Tax Segment - Discontinued Operations, Held-for-sale $ in Millions | Feb. 21, 2021USD ($)shares |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Including Discontinued Operation, Consideration | $ | $ 243 |
Proceeds from Divestiture of Businesses | $ | $ 182 |
Disposal Group, Including Discontinued Operation, Consideration, Number Of Proportional Voting Shares, Shares (at least) (in shares) | shares | 51,000 |
Disposal Group, Including Discontinued Operation, Consideration, Number Of Proportional Voting Shares, Conversion Ratio, Number Of Shares (in shares) | shares | 100 |
Divestitures - Summary of the M
Divestitures - Summary of the Major Categories of Assets and Liabilities (Details) - Discontinued Operations, Held-for-sale - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Current assets: | ||
Total current assets | $ 84,082 | $ 43,023 |
Liberty Tax [Member] | ||
Current assets: | ||
Cash and cash equivalents | 19,680 | 2,722 |
Current receivables, net | 50,524 | 33,525 |
Other current assets | 13,878 | 6,776 |
Property, equipment, and software, net | 9,160 | 7,634 |
Non-current receivables, net | 3,077 | 3,889 |
Goodwill | 9,063 | 8,719 |
Intangible assets, net | 23,129 | 24,804 |
Operating lease right-of-use assets | 8,620 | 8,771 |
Other non-current assets | 1,188 | 1,299 |
Total assets held for sale | 138,319 | 98,139 |
Current liabilities: | ||
Current installments of long-term obligations | 436 | 1,335 |
Current operating lease liabilities | 4,639 | 4,658 |
Accounts payable and accrued expenses | 19,344 | 20,200 |
Other current liabilities | 14,542 | 14,383 |
Total current liabilities | 38,961 | 40,576 |
Long-term obligations, excluding current installments | 1,670 | 1,711 |
Non-current operating lease liabilities | 4,699 | 4,738 |
Other non-current liabilities | 2,185 | 2,330 |
Total liabilities held for sale | $ 47,515 | $ 49,355 |
Divestitures - Summary of State
Divestitures - Summary of Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income from discontinued operations, net of tax | $ 42,147 | $ 37,354 |
Net income from discontinued operations | 42,147 | 25,555 |
Discontinued Operations, Held-for-sale | Liberty Tax [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue | 76,480 | 89,618 |
Selling, general, and administrative expenses | 34,061 | 40,937 |
Income from operations | 42,419 | 48,681 |
Other | (153) | (35) |
Interest expense, net | (11) | (1,240) |
Income before income taxes | 42,561 | 47,406 |
Income tax expense | 414 | 10,052 |
Income from discontinued operations, net of tax | 42,147 | 37,354 |
Less: Net (income) attributable to non-controlling interest | 0 | (11,799) |
Net income from discontinued operations | $ 42,147 | $ 25,555 |
Divestitures - Summary of Cash
Divestitures - Summary of Cash Flow Information (Details) - Discontinued Operations, Held-for-sale - Liberty Tax [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash flows provided by operating activities from discontinued operations | $ 15,787 | $ 39,809 |
Cash flows provided by investing activities from discontinued operations | $ 2,058 | $ 17,662 |
Accounts and Notes Receivables
Accounts and Notes Receivables (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Schedule of Activity Related to Notes Receivable | ||
Accounts and Other Receivables, Net, Current | $ 71,489 | $ 38,444 |
Activity related to notes receivable | ||
Notes Receivable, Related Parties, Current | 1,600 | 15,440 |
interest receivable, current, net | 0 | 84 |
Income Taxes Receivable, Current | 15,505 | 13,649 |
Allowance for Doubtful Other Receivables, Current | (331) | (282) |
Total Receivables, Current, Net | 88,263 | 67,335 |
Notes Receivable, Related Parties, Noncurrent | 11,706 | 12,800 |
Allowance for Doubtful Accounts, non-current | 0 | 0 |
Receivables, net, non-current | 11,706 | 12,800 |
Receivables, Fair Value Disclosure | $ 99,969 | $ 80,135 |
Revenue Revenue (Details)
Revenue Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2021 | Mar. 28, 2020 | Dec. 26, 2020 | |
Revenues | $ 621,345 | $ 502,947 | |
Lease Income | 8,953 | 16,420 | |
Accounts and Other Receivables, Net, Current | 71,489 | $ 38,444 | |
Financing Receivable, before Allowance for Credit Loss | 13,306 | 28,240 | |
Deferred Revenue | 45,225 | $ 25,616 | |
Vitamin Shoppe [Member] | |||
Revenues | 294,739 | 275,888 | |
Lease Income | 0 | 0 | |
American Freight [Member] | |||
Revenues | 258,517 | 202,747 | |
Lease Income | 0 | 0 | |
Pet Supplies Plus | |||
Revenues | 51,309 | 0 | |
Lease Income | 0 | 0 | |
Buddy's [Member] | |||
Revenues | 16,780 | 24,312 | |
Lease Income | 8,953 | 16,420 | |
Retail [Member] | Vitamin Shoppe [Member] | |||
Revenues | 294,739 | 275,888 | |
Retail [Member] | American Freight [Member] | |||
Revenues | 239,058 | 196,099 | |
Retail [Member] | Pet Supplies Plus | |||
Revenues | 31,365 | 0 | |
Retail [Member] | Buddy's [Member] | |||
Revenues | 1,368 | 1,518 | |
Wholesale | Vitamin Shoppe [Member] | |||
Revenues | 0 | ||
Wholesale | American Freight [Member] | |||
Revenues | 0 | ||
Wholesale | Pet Supplies Plus | |||
Revenues | 17,287 | ||
Wholesale | Buddy's [Member] | |||
Revenues | 0 | ||
Product [Member] | |||
Revenues | 583,816 | 473,505 | |
Product [Member] | Vitamin Shoppe [Member] | |||
Revenues | 294,739 | 275,888 | |
Product [Member] | American Freight [Member] | |||
Revenues | 239,058 | 196,099 | |
Product [Member] | Pet Supplies Plus | |||
Revenues | 48,652 | 0 | |
Product [Member] | Buddy's [Member] | |||
Revenues | 1,368 | 1,518 | |
Franchise [Member] | Vitamin Shoppe [Member] | |||
Revenues | 0 | ||
Franchise [Member] | American Freight [Member] | |||
Revenues | 0 | ||
Franchise [Member] | Pet Supplies Plus | |||
Revenues | 16 | ||
Franchise [Member] | Buddy's [Member] | |||
Revenues | 9 | ||
Royalties and Advertising [Member] | Vitamin Shoppe [Member] | |||
Revenues | 0 | 0 | |
Royalties and Advertising [Member] | American Freight [Member] | |||
Revenues | 0 | 0 | |
Royalties and Advertising [Member] | Pet Supplies Plus | |||
Revenues | 1,130 | 0 | |
Royalties and Advertising [Member] | Buddy's [Member] | |||
Revenues | 3,879 | 2,422 | |
Financial Service [Member] | Vitamin Shoppe [Member] | |||
Revenues | 0 | ||
Financial Service [Member] | American Freight [Member] | |||
Revenues | 8,579 | 605 | |
Financial Service [Member] | Pet Supplies Plus | |||
Revenues | 0 | ||
Financial Service [Member] | Buddy's [Member] | |||
Revenues | 0 | ||
Membership [Member] | Vitamin Shoppe [Member] | |||
Revenues | 0 | 0 | |
Membership [Member] | American Freight [Member] | |||
Revenues | 0 | 0 | |
Membership [Member] | Pet Supplies Plus | |||
Revenues | 0 | 0 | |
Membership [Member] | Buddy's [Member] | |||
Revenues | 1,806 | 3,320 | |
Warranty [Member] | Vitamin Shoppe [Member] | |||
Revenues | 0 | ||
Warranty [Member] | American Freight [Member] | |||
Revenues | 6,397 | 4,251 | |
Warranty [Member] | Pet Supplies Plus | |||
Revenues | 0 | ||
Warranty [Member] | Buddy's [Member] | |||
Revenues | 0 | ||
Service, Other [Member] | Vitamin Shoppe [Member] | |||
Revenues | 0 | 0 | |
Service, Other [Member] | American Freight [Member] | |||
Revenues | 4,483 | 1,792 | |
Service, Other [Member] | Pet Supplies Plus | |||
Revenues | 1,511 | 0 | |
Service, Other [Member] | Buddy's [Member] | |||
Revenues | 765 | 632 | |
Service [Member] | |||
Revenues | 28,576 | 13,022 | |
Service [Member] | Vitamin Shoppe [Member] | |||
Revenues | 0 | 0 | |
Service [Member] | American Freight [Member] | |||
Revenues | 19,459 | 6,648 | |
Service [Member] | Pet Supplies Plus | |||
Revenues | 2,657 | 0 | |
Service [Member] | Buddy's [Member] | |||
Revenues | $ 6,459 | $ 6,374 |
Revenue Revenue (Details 1)
Revenue Revenue (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Dec. 26, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Revenue, Remaining Performance Obligation, Amount | $ 45,225 | |
Deferred AD Fees and Franchise Fees at beginning of period | 45,225 | $ 25,616 |
Recognition of Deferred Revenue | (20,580) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | 10,714 | |
New Deferrals of Franchise and AD Fees | $ 29,475 |
Revenue Revenue (Details 2)
Revenue Revenue (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Revenues | $ 621,345 | $ 502,947 |
Revenue, Remaining Performance Obligation, Amount | 45,225 | |
Lease Income | 8,953 | 16,420 |
Product [Member] | ||
Revenues | 583,816 | 473,505 |
Service [Member] | ||
Revenues | 28,576 | 13,022 |
Vitamin Shoppe [Member] | ||
Revenues | 294,739 | 275,888 |
Lease Income | 0 | 0 |
Vitamin Shoppe [Member] | Product [Member] | ||
Revenues | 294,739 | 275,888 |
Vitamin Shoppe [Member] | Franchise [Member] | ||
Revenues | 0 | |
Vitamin Shoppe [Member] | Royalties and Advertising [Member] | ||
Revenues | 0 | 0 |
Vitamin Shoppe [Member] | Financial Service [Member] | ||
Revenues | 0 | |
Vitamin Shoppe [Member] | Membership [Member] | ||
Revenues | 0 | 0 |
Vitamin Shoppe [Member] | Service, Other [Member] | ||
Revenues | 0 | 0 |
Vitamin Shoppe [Member] | Service [Member] | ||
Revenues | 0 | 0 |
Vitamin Shoppe [Member] | Retail [Member] | ||
Revenues | 294,739 | 275,888 |
Vitamin Shoppe [Member] | Warranty [Member] | ||
Revenues | 0 | |
American Freight [Member] | ||
Revenues | 258,517 | 202,747 |
Lease Income | 0 | 0 |
American Freight [Member] | Product [Member] | ||
Revenues | 239,058 | 196,099 |
American Freight [Member] | Franchise [Member] | ||
Revenues | 0 | |
American Freight [Member] | Royalties and Advertising [Member] | ||
Revenues | 0 | 0 |
American Freight [Member] | Financial Service [Member] | ||
Revenues | 8,579 | 605 |
American Freight [Member] | Membership [Member] | ||
Revenues | 0 | 0 |
American Freight [Member] | Service, Other [Member] | ||
Revenues | 4,483 | 1,792 |
American Freight [Member] | Service [Member] | ||
Revenues | 19,459 | 6,648 |
American Freight [Member] | Retail [Member] | ||
Revenues | 239,058 | 196,099 |
American Freight [Member] | Warranty [Member] | ||
Revenues | 6,397 | 4,251 |
Buddy's [Member] | ||
Revenues | 16,780 | 24,312 |
Lease Income | 8,953 | 16,420 |
Buddy's [Member] | Product [Member] | ||
Revenues | 1,368 | 1,518 |
Buddy's [Member] | Franchise [Member] | ||
Revenues | 9 | |
Buddy's [Member] | Royalties and Advertising [Member] | ||
Revenues | 3,879 | 2,422 |
Buddy's [Member] | Financial Service [Member] | ||
Revenues | 0 | |
Buddy's [Member] | Membership [Member] | ||
Revenues | 1,806 | 3,320 |
Buddy's [Member] | Service, Other [Member] | ||
Revenues | 765 | 632 |
Buddy's [Member] | Service [Member] | ||
Revenues | 6,459 | 6,374 |
Buddy's [Member] | Retail [Member] | ||
Revenues | 1,368 | $ 1,518 |
Buddy's [Member] | Warranty [Member] | ||
Revenues | $ 0 |
Revenue Revenue 3 (Details)
Revenue Revenue 3 (Details) $ in Thousands | Mar. 27, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 45,225 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 33,577 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-24 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,470 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-23 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,078 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 442 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 406 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 4 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-12-26 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 8,252 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Changes in the Carrying Amount
Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2021 | Mar. 27, 2021 | Dec. 26, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Gross | $ 786,685 | $ 786,685 | $ 448,258 |
ERROR in label resolution. | 319,858 | 114,058 | |
Goodwill, Balance at Beginning of Period | 448,258 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (5,445) | (4,166) | |
Intangible Assets, Net (Excluding Goodwill) | 314,413 | 109,892 | |
Goodwill, Balance at End of Period | 786,685 | ||
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
ERROR in label resolution. | 197,700 | 93,300 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 | |
Intangible Assets, Net (Excluding Goodwill) | 197,700 | 93,300 | |
Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
ERROR in label resolution. | 77,600 | 10,500 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,546) | ||
Intangible Assets, Net (Excluding Goodwill) | 8,954 | ||
Customer Contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
ERROR in label resolution. | 43,080 | 8,780 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,675) | (2,158) | |
Intangible Assets, Net (Excluding Goodwill) | $ 40,405 | $ 6,622 | |
Pet Supplies Plus | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Acquired in Acquisition | 335,134 | ||
FFO | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Acquired in Acquisition | $ 3,293 |
Components of Intangible Assets
Components of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Amortizable other intangible assets: | ||
Gross carrying amount | $ 319,858 | $ 114,058 |
Accumulated amortization | (5,445) | (4,166) |
Net carrying amount | 314,413 | 109,892 |
Trade Names [Member] | ||
Amortizable other intangible assets: | ||
Gross carrying amount | 197,700 | 93,300 |
Accumulated amortization | 0 | 0 |
Net carrying amount | 197,700 | 93,300 |
Franchise Agreements [Member] | ||
Amortizable other intangible assets: | ||
Accumulated amortization | (2,216) | |
Net carrying amount | 75,384 | |
Noncompete Agreements [Member] | ||
Amortizable other intangible assets: | ||
Gross carrying amount | 77,600 | 10,500 |
Accumulated amortization | (1,546) | |
Net carrying amount | 8,954 | |
Reacquired rights | ||
Amortizable other intangible assets: | ||
Gross carrying amount | 1,478 | 1,478 |
Accumulated amortization | (554) | (462) |
Net carrying amount | 924 | 1,016 |
Customer Contracts [Member] | ||
Amortizable other intangible assets: | ||
Gross carrying amount | 43,080 | 8,780 |
Accumulated amortization | (2,675) | (2,158) |
Net carrying amount | $ 40,405 | $ 6,622 |
Long-Term Obligations (Details)
Long-Term Obligations (Details) - USD ($) | Mar. 10, 2021 | Mar. 27, 2021 | Mar. 28, 2020 | Dec. 26, 2020 | Sep. 23, 2020 | Jun. 27, 2020 | May 22, 2020 | Feb. 19, 2020 | Feb. 14, 2020 | Dec. 16, 2019 |
Credit facility | ||||||||||
Secured Long-term Debt, Noncurrent | $ 70,000,000 | |||||||||
Deferred AD Fees and Franchise Fees at beginning of period | $ 45,225,000 | $ 25,616,000 | ||||||||
Current Installments of Long-Term Obligation | 12,014,000 | 104,053,000 | ||||||||
Long-term obligations, excluding current installments, net | 1,243,132,000 | 466,944,000 | ||||||||
Debt Instrument, Commitment Fee, Rate | 6.00% | |||||||||
Long-term Debt and Lease Obligation, Including Current Maturities | 1,255,146,000 | 570,997,000 | ||||||||
Line of Credit Facility, Availability Block | 10,000,000 | |||||||||
Prepayment penalty for early debt extinguishment | $ 36,726,000 | $ 0 | ||||||||
Long-Term Obligations | Long-Term Obligations Long-term obligations at March 27, 2021 and December 26, 2020 were as follows: (In thousands) March 27, 2021 December 26, 2020 Revolving credit facilities $ — $ 78,310 Term loan, net of debt issuance costs 1,250,788 491,837 Finance lease liabilities 4,358 850 Total long-term obligations 1,255,146 570,997 Less current installments 12,014 104,053 Total long-term obligations, excluding current installments, net $ 1,243,132 $ 466,944 First Lien Credit Agreement and Term Loan On March 10, 2021 (the “Closing Date”), the Company, through direct and indirect subsidiaries, entered into a First Lien Credit Agreement (the “First Lien Credit Agreement”) with various lenders that provides for a $1,000.0 million senior secured term loan (the “First Lien Term Loan”). The Company’s obligations under the First Lien Credit Agreement are guaranteed by the Company and each of the Company’s other direct and indirect subsidiaries (other than certain excluded subsidiaries) pursuant to a First Lien Guarantee Agreement (the “First Lien Guarantee Agreement”) and are required to be guaranteed by each of the Company’s direct and indirect subsidiaries (other than certain excluded subsidiaries) that may be formed or acquired after the Closing Date. The obligations of the Company under the First Lien Credit Agreement are secured on a first priority basis by substantially all of the assets (other than the ABL Priority Collateral (as defined below)) of the Loan Parties (the “Term Priority Collateral”) and are secured on a second priority basis by credit card receivables, accounts receivable, deposit accounts, securities accounts, commodity accounts, inventory and goods (other than equipment) of the Company, in each case, subject to certain exceptions (the “ABL Priority Collateral”), pursuant to a First Lien Collateral Agreement (the “First Lien Collateral Agreement”) and are required to be secured by such assets of the Company (other than certain excluded subsidiaries) that may be formed or acquired after the Closing Date. The proceeds of the First Lien Term Loan, together with the proceeds of the Second Lien Term Loan (as defined below) and certain cash on hand of the Company, were used to consummate the Pet Supplies Plus Acquisition and to pay fees and expenses for certain related transactions, including the entry into the ABL Agreement (as defined below). In addition to financing the Pet Supplies Plus Acquisitions and its related acquisition costs, a portion of the proceeds from the proceeds of the First Lien Term Loan, together with the proceeds of the Second Lien Term Loan (as defined below) were used to repay the Franchise Group New Holdco Credit Agreement, the Franchise Group New Holdco ABL Agreement and the Vitamin Shoppe ABL Agreement term loan for an outstanding amount of $527.4 million, $37.0 million and $43.1 million including accrued interest, respectively. The early repayment of the term loans resulted in additional interest expense of $29.3 million for the write-off of deferred financing costs and $36.7 million for a prepayment penalty. The prepayment penalty is recorded in the Other expense line of the consolidated statements of operations for the three months ended March 27, 2021. The First Lien Term Loan will mature on March 10, 2026, unless the maturity is accelerated subject to the terms set forth in the First Lien Credit Agreement. The First Lien Term Loan will, at the option of the Company, bear interest at either (i) a rate per annum based on London Interbank Offered Rate ("LIBOR") for an interest period of one, two, three or six months, plus an interest rate margin of 4.75% (a "First Lien LIBOR Loan"), with a 0.75% LIBOR floor, or (ii) an alternate base rate determined as provided in the First Lien Credit Agreement, plus an interest rate margin of 3.75% (a "First Lien ABR Loan"), with an effective 1.75% alternate base rate floor. Interest on First Lien LIBOR Loans is payable in arrears at the end of each applicable interest period (and, with respect to an interest period of longer than three months, at three month intervals during such interest period), and interest on First Lien ABR Loans is payable in arrears on the last business day of each calendar quarter. The Company is required to repay the First Lien Term Loan in equal quarterly installments of $2.5 million on the last day of each calendar quarter, commencing on June 30, 2021. The Company is required to prepay the First Lien Term Loan with 50% of consolidated excess cash flow on an annual basis, subject to certain exceptions and to leverage-based step-downs to 25% and 0%, and with 100% of the net cash proceeds of certain other customary events, including certain asset sales (but excluding sales of ABL Priority Collateral), including customary reinvestment rights and leverage based step-downs to 25% and 0%, in each case, subject to certain exceptions. Subject to certain exceptions, repayment of the First Lien Term Loan within six months after the Closing Date in connection with a refinancing to reduce the pricing with respect to the First Lien Term Loan are subject to a prepayment premium of 1.00%. The First Lien Credit Agreement, the First Lien Collateral Agreement and the First Lien Guarantee Agreement collectively include customary affirmative, negative, and financial covenants binding on the Company, including delivery of financial statements and other reports. The negative covenants limit the ability of the Company to, among other things, incur debt, incur liens, make investments, sell assets, pay dividends and enter into transactions with affiliates. The financial covenants set forth in the First Lien Credit Agreement include a maximum total leverage ratio (net of certain cash) and a minimum fixed charge coverage ratio to be tested at the end of each fiscal quarter commencing with the first full fiscal quarter ending after the Closing Date. In addition, the First Lien Credit Agreement includes customary events of default, the occurrence of which may require the Company to pay an additional 2.00% interest on the First Lien Term Loan and/or may result in, among other consequences, acceleration of the payment obligations with respect to the First Lien Term Loan, calling on the guarantees, or exercise of remedies with respect to the collateral. Second Lien Credit Agreement and Second Lien Term Loan On the Closing Date, the Company, through direct and indirect subsidiaries, entered into a Second Lien Credit Agreement (the “Second Lien Credit Agreement”) with various lenders (the “Second Lien Lenders”, and together with the First Lien Lenders, the “Term Loan Lenders”). The Second Lien Credit Agreement provides for a $300.0 million senior secured term loan (the “Second Lien Term Loan”, and together with the First Lien Term Loan, the “Term Loans”), made by the Second Lien Lenders to the Company. The Company's obligations under the Second Lien Credit Agreement are guaranteed by the Loan Parties pursuant to a Second Lien Guarantee Agreement (the “Second Lien Guarantee Agreement”) and are required to be guaranteed by each of the Company’s direct and indirect subsidiaries (other than certain excluded subsidiaries) that may be formed or acquired after the Closing Date. The obligations of the Company under the Second Lien Credit Agreement are secured on a second priority basis by the Term Priority Collateral and are secured on a third priority basis by the ABL Priority Collateral pursuant to a Second Lien Collateral Agreement (the “Second Lien Collateral Agreement”) and are required to be secured by such assets of each of the Company’s direct and indirect subsidiaries (other than certain excluded subsidiaries) that may be formed or acquired after the Closing Date. The Second Lien Term Loan will mature on September 10, 2026, unless the maturity is accelerated subject to the terms set forth in the Second Lien Credit Agreement. The Second Lien Term Loan will, at the option of the Company, bear interest at either (i) a rate per annum based on LIBOR for an interest period of one, two, three or six months, plus an interest rate margin of 7.50% (a "Second Lien LIBOR Loan"), with a 1.00% LIBOR floor, or (ii) an alternate base rate determined as provided in the Second Lien Credit Agreement, plus an interest rate margin of 6.50% (a "Second Lien ABR Loan"), with an effective 2.00% alternate base rate floor. Interest on Second Lien LIBOR Loans is payable in arrears at the end of each applicable interest period (and, with respect to an interest period of longer than three months, at three month intervals during such interest period), and interest on Second Lien ABR Loans is payable in arrears on the last business day of each calendar quarter. The Second Lien Term Loan is not subject to scheduled amortization. Solely to the extent the First Lien Term Loan and related obligations have been repaid in full, the Company is required to prepay the Second Lien Term Loan with 50% of consolidated excess cash flow on an annual basis, subject to certain exceptions and to leverage-based step-downs to 25% and 0%, and with 100% of the net cash proceeds of certain other customary events, including certain asset sales (but excluding sales of ABL Priority Collateral), including customary reinvestment rights and leverage-based step-downs to 25% and 0%, in each case, subject to certain exceptions. Subject to certain exceptions, repayments of the Second Lien Term Loan (i) within six months after the Closing Date in connection with a refinancing in full of the Second Lien Term Loan in connection with an acquisition or similar investment (an “Investment-Linked Refinancing Transaction”) are subject to a make-whole premium, (ii) within nine months after the Closing Date, other than in connection with an Investment-Linked Refinancing Transaction, are subject to a make-whole premium and (iii) solely to the extent clauses (i) and (ii) do not apply, a prepayment premium of 2.00%. The Company may also be required to pay LIBOR breakage and redeployment costs in certain limited circumstances. Third Amended and Restated Loan and Security Agreement (ABL) On the Closing Date, the Company, through direct and indirect subsidiaries, entered into a Third Amended and Restated Loan and Security Agreement (the “ABL Agreement”) with various lenders. The ABL Agreement provides for a senior secured revolving loan facility (the “ABL Revolver”) with aggregate commitments available to Company of the lesser of (i) $150.0 million and (ii) a specified borrowing base based on a percentage of the Company's eligible credit card receivables, accounts (subject to certain limitations) and inventory (subject to certain limitations), less certain reserves (the “Aggregate Borrowing Cap”). Furthermore, the ABL Agreement includes separate borrowing caps equal to (A) the lesser of (1) $100.0 million and (2) a specified borrowing base based on a percentage of the certain of the Company's subsidiaries eligible credit card receivables, accounts (subject to certain limitations) and inventory (subject to certain limitations), less certain reserves. As of the Closing Date, the ABL Revolver was undrawn. The ABL Agreement amended and restated the existing Second Amended and Restated Loan and Security Agreement, dated as of December 16, 2019. The Company's obligations under the ABL Agreement are guaranteed pursuant to an Second Amended and Restated Guaranty Agreement (the “ABL Guaranty”), dated as of the Closing Date, which amended and restated the existing Amended and Restated Guaranty Agreement, dated as of December 16, 2019. The obligations of the Company under the ABL Agreement are secured by substantially all of the assets of the Company pursuant to the ABL Agreement and a Third Amended and Restated Pledge Agreement (the “ABL Pledge”). An Intercreditor Agreement (the “Intercreditor Agreement”), dated as of the Closing Date, sets forth (i) the relative priorities of the security interests granted with respect to the Term Loans and those granted with respect to the ABL Revolver (as defined below) and (ii) the relative priorities of the security interests granted with respect to the ABL Revolver and those granted with respect to the Term Loans. The security interest granted to the ABL Agent (for itself and the ABL Lenders) is: (A) senior than that granted to the Term Loan Agents (for itself and the Term Loan Lenders) with respect to the ABL Priority Collateral and (B) junior than that granted to the Term Loan Agents (for itself and the Term Loan Lenders) with respect to the Term Priority Collateral. The ABL Revolver will mature on March 10, 2025, unless the maturity is accelerated subject to the terms set forth in the ABL Agreement. Borrowings under the ABL Revolver will, at the option of the Company, bear interest at either (i) a rate per annum based on LIBOR for an interest period of one, two, three or six months, plus an interest rate margin that ranges from 1.75% to 2.25%, (an "ABL LIBOR Loan"), with a 0.0% LIBOR floor, or (ii) an alternate base rate determined as provided in the ABL Agreement, plus an interest rate margin that ranges from 0.75% to 1.25%, (an "ABL ABR Loan"), with a 1.0% alternate base rate floor. Interest on ABL LIBOR Loans is payable in arrears at the end of each applicable interest period (and, with respect to a six-month interest period, three months after commencement of the interest period), and interest on ABL ABR Loans is payable in arrears on the first business day of each calendar quarter. Subject to the Intercreditor Agreement, the Company is required to repay the excess amount of borrowings under the ABL Revolver if: (i) the aggregate outstanding principal amount of all borrowings by the Company under the ABL Revolver at any time exceeds the Aggregate Borrowing Cap, or (ii) the aggregate outstanding principal amount of all borrowings of certain of the Company's subsidiaries exceeds their borrowing caps. The ABL Agreement and ABL Pledge include customary affirmative and negative covenants binding on the Company, including delivery of financial statements, borrowing base certificates and other reports. The negative covenants limit the ability of the Company, among other things, to incur debt, incur liens, make investments, sell assets, pay dividends and enter into transactions with affiliates. In addition, the ABL Agreement includes customary events of default, the occurrence of which may require the Company to pay an additional 2.0% interest on the borrowings under the ABL Revolver. Franchise Group New Holdco Credit Agreement and Term Loan On February 14, 2020, the Company, through an indirect subsidiary, executed a term loan agreement with GACP Finance Co., LLC for an amount of $575.0 million (the “FGNH Credit Agreement”), which consisted of a $375.0 million first out tranche (the “FGNH Tranche A-1 Term Loan”) and a $200.0 million last out tranche (the “FGNH Tranche A-2 Term Loan”). The term loan would have matured on February 14, 2025, unless the maturity was accelerated subject to the terms set forth in the term loan agreement. On March 10, 2021, the FGNH Credit Agreement the outstanding principal balance of $514.7 million was paid in full with the issuance of the First Lien Term Loan and the Second Lien Term Loan. Franchise Group New Holdco New ABL Credit Agreement and New ABL Term Loan On September 23, 2020, the Company, through direct and indirect subsidiaries, entered into an ABL Credit Agreement (the “Old ABL Credit Agreement”) with various lenders which provided for a senior secured revolving loan facility with commitments available to the Company of the lesser of (i) $125.0 million and (ii) a borrowing base based on the eligible credit card receivables, accounts, inventory and revenue due under certain rental agreements, less certain reserves. The Old ABL Credit Agreement included a $15.0 million swingline subfacility and a $15.0 million letter of credit subfacility. The Company borrowed approximately $32.7 million on September 23, 2020, the proceeds of which were used to prepay certain existing indebtedness under the existing FGNH ABL Credit Agreement (as defined below), to pay fees and expenses in connection with the Old ABL Credit Agreement, and for general corporate purposes. On March 10, 2021, this agreement was replaced by the ABL Agreement above and all outstanding amounts were paid in full by the Company. Franchise Group New Holdco ABL Credit Agreement and ABL Term Loan On February 14, 2020, the Company, through direct and indirect subsidiaries, entered into an ABL credit agreement (the "FGNH ABL Credit Agreement") with various lenders which provided the Company with a $100.0 million senior secured asset based term loan (the “FGNH ABL Term Loan”). On February 14, 2020, the Company borrowed $100.0 million on the FGNH ABL Term Loan to finance the American Freight Acquisition. On September 23, 2020, the Company repaid in full all amounts that were outstanding under the FGNH ABL Term Loan and terminated the FGNH ABL Credit Agreement . Vitamin Shoppe Term Loan On December 16, 2019, in connection with the Company's acquisition of the Vitamin Shoppe, Inc. (the "Vitamin Shoppe Acquisition"), the Company, through direct and indirect subsidiaries, entered into a Loan and Security Agreement (the “Vitamin Shoppe Term Loan Agreement”) that provides for a $70.0 million senior secured term loan (the "Vitamin Shoppe Term Loan") which matures on December 16, 2022. On May 22, 2020, the Company purchased $5.3 million of the Vitamin Shoppe Term Loan from one of the participating lenders, which effectively retired that portion of the term loan. On August 13, 2020, the Company repaid in full the remaining balance outstanding under the Vitamin Shoppe Term Loan and terminated the Vitamin Shoppe Loan Term Agreement on August 25, 2020. Vitamin Shoppe ABL Revolver On December 16, 2019, the Company, through direct and indirect subsidiaries, entered into a Second Amended and Restated Loan and Security Agreement (the “ Vitamin Shoppe ABL Agreement”) providing for a senior secured revolving loan facility (the “Vitamin Shoppe ABL Revolver”) with commitments available to the Company of the lesser of (i) $100.0 million and (ii) a specified borrowing base based on our eligible credit card receivables, accounts receivable and inventory, less certain reserves, and as to each of clauses (i) and (ii), less a $10.0 million availability block. The Vitamin Shoppe ABL Revolver will mature on December 16, 2022, unless the maturity is accelerated subject to the terms set forth in the Vitamin Shoppe ABL Agreement. The Company borrowed $70.0 million on December 16, 2019, the proceeds of which were used to consummate the Vitamin Shoppe Acquisition. The ABL Agreement amended and restated the existing Amended and Restated Loan and Security Agreement (the “Existing Vitamin Shoppe ABL Agreement”), dated as of January 20, 2011. On March 10, 2021, the Vitamin Shoppe ABL agreement outstanding principal balance of $43.0 million was paid in full with the proceeds from the First Lien Term Loan and the Second Lien Term Loan which resulted in a write-off of $1.2 million of deferred financing costs. Compliance with Debt Covenants The Company's revolving credit and long-term debt agreements impose restrictive covenants on it, including requirements to meet certain ratios. As of March 27, 2021, the Company was in compliance with all covenants under these agreements and, based on a continuation of current operating results, the Company expects to be in compliance for the next twelve months. | |||||||||
Loans [Member] | ||||||||||
Credit facility | ||||||||||
Long-term Debt, Gross | $ 575,000,000 | |||||||||
Debt Instrument, Repurchased Face Amount | $ 514,700,000 | |||||||||
FGNH First Out Tranche [Member] | ||||||||||
Credit facility | ||||||||||
Loans Payable to Bank, Noncurrent | 375,000,000 | |||||||||
FGNH Last Out Tranche [Member] [Member] | ||||||||||
Credit facility | ||||||||||
Loans Payable to Bank, Noncurrent | $ 200,000,000 | |||||||||
FGNH Credit Agreement [Member] | ||||||||||
Credit facility | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | 100,000,000 | |||||||||
FGNH ABL Term Loan [Member] | ||||||||||
Credit facility | ||||||||||
Total debt | 100,000,000 | |||||||||
Loan Participations and Assignments [Member] | ||||||||||
Credit facility | ||||||||||
Total debt | $ 5,300,000 | |||||||||
Revolver | ||||||||||
Credit facility | ||||||||||
Total debt | $ 0 | 78,310,000 | ||||||||
Term loan | ||||||||||
Credit facility | ||||||||||
Total debt | 1,250,788,000 | 491,837,000 | ||||||||
Finance Lease Liability [Member] | ||||||||||
Credit facility | ||||||||||
Total debt | $ 4,358,000 | $ 850,000 | ||||||||
New ABL Revolver | ||||||||||
Credit facility | ||||||||||
Line of Credit Facility, Swingline, Sub-Facility | $ 15,000,000 | |||||||||
Maximum borrowing capacity | 125,000,000 | |||||||||
Letters of Credit Outstanding, Amount | 15,000,000 | |||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 32,700,000 | |||||||||
Senior Secured Notes, First Lien Credit Agreement | ||||||||||
Credit facility | ||||||||||
Debt Issuance Costs, Written-Off | 29,300,000 | |||||||||
Debt Instrument, Prepayment Penalty | 36,700,000 | |||||||||
Senior Secured Notes, First Lien Credit Agreement | FGNH Credit Agreement [Member] | ||||||||||
Credit facility | ||||||||||
Repayments of Debt | 527,400,000 | |||||||||
Senior Secured Notes, First Lien Credit Agreement | Term loan | ||||||||||
Credit facility | ||||||||||
Debt Instrument, Periodic Payment | 2,500,000 | |||||||||
Debt Instrument, Face Amount | $ 1,000,000,000 | |||||||||
Debt Instrument, Covenant, Prepayment Criteria, Percentage Of Excess Cash Flow On Annual Basis | 50.00% | |||||||||
Debt Instrument, Covenant, Leverage-Based Step-down One | 25.00% | |||||||||
Debt Instrument, Covenant, Leverage-Based Step-down Two | 0.00% | |||||||||
Debt Instrument, Covenant, Percentage Of Net Cash Proceeds Of Certain Other Customary Events | 100.00% | |||||||||
Debt Instrument, Prepayment Premium, Percentage | 1.00% | |||||||||
Debt Instrument, Covenant, Event Of Default, Additional Interest, If Criteria Met, Percentage | 2.00% | |||||||||
Senior Secured Notes, First Lien Credit Agreement | Term loan | one-month London Inter-Bank Offered Rate (LIBOR) | ||||||||||
Credit facility | ||||||||||
Interest rate margin (as a percent) | 4.75% | |||||||||
Debt Instrument, Floor Of Variable Rate Basis | 0.75% | |||||||||
Senior Secured Notes, First Lien Credit Agreement | Term loan | Base Rate | ||||||||||
Credit facility | ||||||||||
Interest rate margin (as a percent) | 3.75% | |||||||||
Debt Instrument, Floor Of Variable Rate Basis | 1.75% | |||||||||
Senior Secured Notes, First Lien Credit Agreement | FGNH ABL Credit Agreement | ||||||||||
Credit facility | ||||||||||
Repayments of Debt | $ 37,000,000 | |||||||||
Senior Secured Notes, First Lien Credit Agreement | Vitamin Shoppe Credit Agreement [Member] | ||||||||||
Credit facility | ||||||||||
Repayments of Debt | 43,100,000 | |||||||||
Senior Secured Notes, Second Lien Credit Agreement | Term loan | ||||||||||
Credit facility | ||||||||||
Debt Instrument, Face Amount | $ 300 | |||||||||
Debt Instrument, Covenant, Prepayment Criteria, Percentage Of Excess Cash Flow On Annual Basis | 50.00% | |||||||||
Debt Instrument, Covenant, Leverage-Based Step-down One | 25.00% | |||||||||
Debt Instrument, Covenant, Leverage-Based Step-down Two | 0.00% | |||||||||
Debt Instrument, Covenant, Percentage Of Net Cash Proceeds Of Certain Other Customary Events | 100.00% | |||||||||
Debt Instrument, Prepayment Premium, Percentage | 2.00% | |||||||||
Senior Secured Notes, Second Lien Credit Agreement | Term loan | one-month London Inter-Bank Offered Rate (LIBOR) | ||||||||||
Credit facility | ||||||||||
Interest rate margin (as a percent) | 7.50% | |||||||||
Debt Instrument, Floor Of Variable Rate Basis | 1.00% | |||||||||
Senior Secured Notes, Second Lien Credit Agreement | Term loan | Base Rate | ||||||||||
Credit facility | ||||||||||
Interest rate margin (as a percent) | 6.50% | |||||||||
Debt Instrument, Floor Of Variable Rate Basis | 2.00% | |||||||||
Third Amended And Restated Loan And Security Agreement | Revolver | ||||||||||
Credit facility | ||||||||||
Maximum borrowing capacity | $ 100,000,000 | |||||||||
Debt Instrument, Face Amount | $ 150,000,000 | |||||||||
Debt Instrument, Covenant, Event Of Default, Additional Interest, If Criteria Met, Percentage | 2.00% | |||||||||
Third Amended And Restated Loan And Security Agreement | Revolver | one-month London Inter-Bank Offered Rate (LIBOR) | ||||||||||
Credit facility | ||||||||||
Debt Instrument, Floor Of Variable Rate Basis | 0.00% | |||||||||
Third Amended And Restated Loan And Security Agreement | Revolver | Base Rate | ||||||||||
Credit facility | ||||||||||
Debt Instrument, Floor Of Variable Rate Basis | 1.00% | |||||||||
Third Amended And Restated Loan And Security Agreement | Revolver | Minimum | one-month London Inter-Bank Offered Rate (LIBOR) | ||||||||||
Credit facility | ||||||||||
Interest rate margin (as a percent) | 1.75% | |||||||||
Third Amended And Restated Loan And Security Agreement | Revolver | Minimum | Base Rate | ||||||||||
Credit facility | ||||||||||
Interest rate margin (as a percent) | 0.75% | |||||||||
Third Amended And Restated Loan And Security Agreement | Revolver | Maximum [Member] | one-month London Inter-Bank Offered Rate (LIBOR) | ||||||||||
Credit facility | ||||||||||
Interest rate margin (as a percent) | 2.25% | |||||||||
Third Amended And Restated Loan And Security Agreement | Revolver | Maximum [Member] | Base Rate | ||||||||||
Credit facility | ||||||||||
Interest rate margin (as a percent) | 1.25% | |||||||||
Credit facility | Vitamin Shoppe Credit Facility [Member] | ||||||||||
Credit facility | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 43,000,000 | $ 575,000,000 | $ 100,000,000 | |||||||
Debt Issuance Costs, Written-Off | $ 1,200,000 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Thousands | Jul. 10, 2019 | Mar. 27, 2021 | Mar. 28, 2020 | Dec. 26, 2020 |
Income Tax Expense (Benefit) | $ (2,851) | $ (55,921) | ||
Current Income Tax Expense (Benefit) | $ 2,900 | $ 55,900 | ||
Effective Income Tax Rate Reconciliation, Deduction, Percent | 9.10% | 178.20% | ||
Tax Receivable Agreement, Payment to Non-controlling Holders | 40.00% | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 31,200 | $ 31,400 | ||
CARES Act, Income Tax Benefit [Member] | ||||
Current Income Tax Expense (Benefit) | $ 52,300 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Jan. 14, 2021 | Jan. 11, 2021 | Dec. 26, 2020 | Apr. 01, 2020 | Mar. 27, 2021 | Mar. 28, 2020 | Dec. 26, 2020 |
Stockholders' Equity | |||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 11,684,000 | $ 59,539,000 | |||||
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition | $ 2,190,000 | $ 2,449,000 | |||||
Weighted Average Number of Shares Outstanding, Basic | 40,110,084 | 23,373,980 | |||||
Stock Redeemed or Called During Period, Shares | 3,937,726 | ||||||
Preferred Stock, redeemed for Common, Shares | 787,545 | ||||||
Weighted Average Number of Shares Outstanding, Diluted | 40,110,084 | 23,693,035 | |||||
Total diluted earnings per share | $ 0.29 | $ 2.51 | |||||
Proceeds from Stock Options Exercised | $ 25,000 | $ 0 | |||||
Unrealized Gain (Loss) on Derivatives | $ (145,000) | (97,000) | |||||
Net income (loss) from continuing operations | (28,334,000) | 33,984,000 | |||||
Dividends, Preferred Stock | (2,129,000) | 0 | |||||
Dividends | 15,434,000 | 6,633,000 | |||||
Net Income (Loss) from Continuing Operations Available to Common Shareholders, Basic | (30,463,000) | 33,984,000 | |||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (1,254,000) | (1,032,000) | $ (1,254,000) | ||||
Stock-based compensation expense - equity awards | 2,550,000 | $ 2,485,000 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,399,000) | $ (1,112,000) | $ (1,399,000) | ||||
Continuing operations | $ (0.76) | $ 1.45 | |||||
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 1.05 | $ 1.09 | |||||
Antidilutive securities | |||||||
Adjustments to Additional Paid in Capital, Other | $ 10 | ||||||
Total basic earnings per share | $ 0.29 | $ 2.54 | |||||
Net income from discontinued operations | $ 42,147,000 | $ 25,555,000 | |||||
Preferred Stock, Shares Issued | 4,541,125 | 4,541,125 | 4,541,125 | ||||
Preferred Stock, Dividend Rate, Percentage | 7.50% | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Issuance of preferred stock | $ 79,541,000 | $ 0 | |||||
Incremental Common Shares Attributable to Dilutive Effect of Options and Restricted Stock Units | 0 | 319,055 | |||||
Continuing operations | $ (0.76) | $ 1.43 | |||||
Discontinued operations | $ 1.05 | $ 1.08 | |||||
Foreign Exchange Forward | |||||||
Stockholders' Equity | |||||||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | $ 17,000 | $ 0 | |||||
Class A common stock | |||||||
Stockholders' Equity | |||||||
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition | $ 1,000 | $ 3,000 | |||||
Weighted Average Number of Shares Outstanding, Basic | 40,110,084 | 23,373,980 | |||||
Common Stock, Value, Issued | $ 401,000 | $ 402,000 | $ 401,000 | ||||
Net income (loss) from continuing operations | $ (28,334,000) | ||||||
Earnings Per Share, Basic and Diluted | $ 0.29 | $ 2.54 | |||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 40,110,084 | 23,373,980 | |||||
Series A Preferred Stock | Underwriting Agreement | |||||||
Antidilutive securities | |||||||
Issuance of preferred stock | $ 79,500,000 | ||||||
Payments of Stock Issuance Costs | $ 3,200,000 | ||||||
Series A Preferred Stock | Underwriting Agreement | B. Riley Securities, Inc. | |||||||
Antidilutive securities | |||||||
Share Price | $ 25.20 | ||||||
Preferred Stock, Shares Issued | 314,934 | 2,976,191 | |||||
Preferred Stock, Dividend Rate, Percentage | 7.50% | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||||||
Preferred Stock, Liquidation Preference Per Share | $ 25 | ||||||
Preferred Stock, Term of Purchase Period | 30 days | ||||||
Preferred Stock, Additional Shares Issued | 446,428 | ||||||
Remaining New Holdco Units [Member] | |||||||
Stockholders' Equity | |||||||
Preferred Stock, redeemed for Common, Shares | 5,495,606 | ||||||
Preferred Stock, additional shares [Member] | |||||||
Stockholders' Equity | |||||||
Preferred Stock, redeemed for Common, Shares | 1,099,121 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) | 3 Months Ended | |||
Mar. 27, 2021 | Mar. 28, 2020 | Mar. 27, 2021 | Dec. 26, 2020 | |
Share-based Payment Arrangement, Option [Member] | ||||
Stock compensation plan | ||||
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 10.48 | |||
Exercise period | 3 years | |||
Unrecognized compensation costs | $ 100,000 | |||
Stock option activity, Number of options | ||||
Outstanding at the beginning of the period (in shares) | 388,409 | 388,409 | 391,409 | |
Exercised (in shares) | (3,000) | |||
Canceled (in shares) | 0 | |||
Outstanding at the end of the period (in shares) | 388,409 | |||
Stock option activity, Weighted average exercise price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 10.21 | $ 10.21 | $ 10.19 | |
Exercised (in dollars per share) | 8.30 | |||
Canceled (in dollars per share) | ||||
Outstanding at the end of the period (in dollars per share) | $ 10.21 | |||
Share-based Payment Arrangement, Option [Member] | Minimum | ||||
Stock compensation plan | ||||
Exercise period | 4 years | |||
Share-based Payment Arrangement, Option [Member] | Maximum [Member] | ||||
Stock compensation plan | ||||
Exercise period | 5 years | |||
Nonvested Stock Option [Member] | ||||
Nonvested stock option activity, Nonvested options | ||||
Outstanding at the beginning of the period (in shares) | 63,334 | 63,334 | 63,334 | |
Vested (in shares) | 0 | |||
Canceled (in shares) | 0 | |||
Outstanding at the end of the period (in shares) | 63,334 | |||
Nonvested stock option activity, Weighted average exercise price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 8.83 | $ 8.83 | $ 8.83 | |
Vested (in dollars per share) | 0 | |||
Canceled (in dollars per share) | 0 | |||
Outstanding at the end of the period (in dollars per share) | $ 8.83 | |||
Restricted Stock Units | ||||
Stock compensation plan | ||||
Unrecognized compensation costs | $ 7,800,000 | |||
Common Class A [Member] | ||||
Stock option activity, Number of options | ||||
Exercised (in shares) | (3,000) | |||
Exercise Price, Range Two [Member] | Share-based Payment Arrangement, Option [Member] | ||||
Stock compensation plan | ||||
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 3 years | |||
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 11.98 | |||
Stock option activity, Number of options | ||||
Outstanding at the beginning of the period (in shares) | 173,909 | 173,909 | ||
Outstanding at the end of the period (in shares) | 173,909 | |||
Share-based Payment Arrangement, Option [Member] | ||||
Stock compensation plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 7.7 | |||
stock awards expense [Member] | ||||
Stock compensation plan | ||||
Share-based Payment Arrangement, Expense | $ 2,600,000 | $ 2,300,000 | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based Payment Arrangement, Expense | $ 2,600,000 | $ 2,300,000 |
Stock Compensation Plans (Det_2
Stock Compensation Plans (Details 2) - USD ($) | 3 Months Ended | |
Mar. 27, 2021 | Dec. 26, 2020 | |
Share-based Payment Arrangement, Option [Member] | ||
Stock options outstanding and exercisable | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 3 years | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 100,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 388,409 | 391,409 |
Weighted average exercise price (in dollars per share) | $ 10.21 | |
Number of shares exercisable at the end of the period | 325,075 | |
Weighted average exercise price (in dollars per share) | $ 10.48 | |
Share-based Payment Arrangement, Option [Member] | Exercise Price, Range One [Member] | ||
Stock options outstanding and exercisable | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 214,500 | |
Weighted average exercise price (in dollars per share) | $ 8.77 | |
Weighted average remaining contractual life | 4 years | |
Number of shares exercisable at the end of the period | 151,166 | |
Weighted average exercise price (in dollars per share) | $ 8.75 | |
Share-based Payment Arrangement, Option [Member] | Exercise Price, Range two | ||
Stock options outstanding and exercisable | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 173,909 | |
Weighted average exercise price (in dollars per share) | $ 11.98 | |
Weighted average remaining contractual life | 3 years | |
Number of shares exercisable at the end of the period | 173,909 | |
Weighted average exercise price (in dollars per share) | $ 11.98 | |
Restricted Stock Units | ||
Stock options outstanding and exercisable | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 7,800,000 | |
Minimum | Share-based Payment Arrangement, Option [Member] | ||
Stock options outstanding and exercisable | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 4 years |
Restricted Stock Units (Details
Restricted Stock Units (Details 3) - USD ($) | 3 Months Ended | |
Mar. 27, 2021 | Dec. 26, 2020 | |
Restricted Stock Units | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 115,350 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 339,085 | 296,147 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value | $ 35.58 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 72,412 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 24.13 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value | $ 24.86 | $ 20.51 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 7,800,000 | |
Stock compensation plan | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 7,800,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 339,085 | 296,147 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value | $ 24.86 | $ 20.51 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 115,350 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value | $ 35.58 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 72,412 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 24.13 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value | $ 0 | |
Performance Shares | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 102,533 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 721,270 | 618,737 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value | $ 35.36 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value | $ 19.61 | $ 17 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 13.8 | |
Stock compensation plan | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 13.8 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 721,270 | 618,737 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value | $ 19.61 | $ 17 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 102,533 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value | $ 35.36 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) | Jan. 23, 2021USD ($) | Dec. 02, 2020USD ($) | Nov. 20, 2020USD ($) | Nov. 11, 2020USD ($)business$ / sharesshares | Jul. 10, 2019 | Mar. 27, 2021USD ($) | Jun. 27, 2020USD ($) | Mar. 28, 2020USD ($) | Jun. 27, 2020 | Mar. 10, 2021USD ($) | Jan. 31, 2021USD ($) | Jan. 15, 2021USD ($) | Sep. 18, 2020USD ($) | Jun. 30, 2020USD ($) | May 01, 2020USD ($) | Feb. 19, 2020USD ($) | Feb. 14, 2020USD ($) | Feb. 07, 2020USD ($)shares | Dec. 16, 2019USD ($) |
Related Party Transaction [Line Items] | |||||||||||||||||||
Increase (Decrease) in Inventories | $ 20,454,000 | $ (40,066,000) | |||||||||||||||||
Consulting, Advisory Services Fee | $ 5,000,000 | ||||||||||||||||||
Tax Receivable Agreement, Percentage of Tax Benefit | 40.00% | ||||||||||||||||||
Tax Receivable Agreement, Payment to Non-controlling Holders | $ 16,800,000 | ||||||||||||||||||
Repayment of Notes Receivable from Related Parties | $ 11,000,000 | ||||||||||||||||||
Debt Instrument, Commitment Fee, Rate | 6.00% | ||||||||||||||||||
Commitments, Fair Value Disclosure | $ 36,000,000 | ||||||||||||||||||
Other Commitment | $ 100,000,000 | ||||||||||||||||||
Consulting, Underwriting Service Fee | $ 3,000,000 | $ 900,000 | $ 5,400,000 | ||||||||||||||||
Accounts Payable, Underwriters, Promoters, and Employees | $ 300,000 | $ 300,000 | |||||||||||||||||
Buddy's [Member] | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Number Of Businesses Disposed Of | business | 47 | ||||||||||||||||||
Revenue from Related Parties | $ 35,000,000 | ||||||||||||||||||
Vintage RTO, L.P. ownership [Member] | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
aggregate voting power | 28.00% | ||||||||||||||||||
Payment to Noncontrolling Holders [Member] | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Tax Receivable Agreement, Percentage of Tax Benefit | 40.00% | ||||||||||||||||||
Former Director | Buddy's [Member] | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Related Party Transaction, Equity Interest Received | shares | 1,500,000 | ||||||||||||||||||
Related Party Transaction, Equity Interest Received, Amount Per Share | $ / shares | $ 5 | ||||||||||||||||||
Notes Receivable, Related Parties | $ 22,000,000 | ||||||||||||||||||
American Freight [Member] | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 675,000,000 | ||||||||||||||||||
Closing Subscription Agreement [Member] | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Ownership Interest | 10.00% | ||||||||||||||||||
Revolution Tax Program Agreement | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Related Party Transaction, Term | 1 year | ||||||||||||||||||
Due To Related Parties, Amount Per Location | $ 5,000 | ||||||||||||||||||
Royalty Income, Nonoperating | $ 100,000 | ||||||||||||||||||
Revolution Tax Program Agreement | Liberty Tax [Member] | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Due From Related Parties, Percentage Of Gross Receipts | 60.00% | ||||||||||||||||||
Revolution Tax Program Agreement | Franchise Group, Inc | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Due To Related Parties, Percentage Of Marketing Material Costs | 60.00% | ||||||||||||||||||
Revolution Tax Program Agreement | Revolution | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Due To Related Parties, Percentage Of Marketing Material Costs | 40.00% | ||||||||||||||||||
Revolution Loan Program Agreement | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Related Party Transaction, Term | 1 year | ||||||||||||||||||
Due To Related Parties, Amount Per Location | $ 10,000 | ||||||||||||||||||
Due To Related Parties, Franchise Fee, Percentage Of Monthly Net Revenue | 50.00% | ||||||||||||||||||
Revolution Canada Loan Program Agreement | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Due to Related Parties | $ 200,000 | ||||||||||||||||||
Due To Related Parties, Servicing Fee Calculation, Amount Subtracted From Aggregate Interest And Origination Fees | 200,000 | ||||||||||||||||||
Due To Related Parties, Servicing Fee Calculation, Amount Paid If Difference Is Negative | 200,000 | ||||||||||||||||||
Revolution Canada Loan Program Agreement | Revolution | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Related Party Transaction, Maximum Loan Amount | $ 20,000,000 | ||||||||||||||||||
Tender Offer [Member] | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Common Stock, Shares Subscribed but Unissued | shares | 669,678 | ||||||||||||||||||
Offer Value [Member] | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Common Stock, Value, Subscriptions | $ 11,400,000 | ||||||||||||||||||
Line of Credit [Member] | Vitamin Shoppe Credit Facility [Member] | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 43,000,000 | 575,000,000 | $ 100,000,000 | ||||||||||||||||
First Lien Term Loan Credit Facility | BRF Finance Co., LLC | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Line of Credit Facility, Commitment Fee Amount | $ 100,000,000 | ||||||||||||||||||
Senior Unsecured Term Loan Credit Facility | BRF Finance Co., LLC | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Revenue from Related Parties | 9,000,000 | ||||||||||||||||||
Line of Credit Facility, Commitment Fee Amount | 300,000,000 | ||||||||||||||||||
Alternative First Lien Facility | BRF Finance Co., LLC | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Revenue from Related Parties | 1,000,000 | ||||||||||||||||||
Line of Credit Facility, Commitment Fee Amount | $ 100,000,000 | ||||||||||||||||||
Administrative Agent [Member] | Line of Credit [Member] | Vitamin Shoppe Credit Facility [Member] | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 100,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 23, 2021 | Mar. 27, 2021 | Dec. 20, 2019 | Aug. 12, 2019 |
Commitments and contingencies | ||||
Loss Contingency Accrual | $ 3 | |||
Derivative Complaint, Inadequate Share Price, Price Per Share | $ 12 | |||
Stockholder Class-Action And Derivative Complaint | ||||
Commitments and contingencies | ||||
Loss Contingency Accrual | $ 0.5 | |||
Additional Accrual for loss contingency [Member] | ||||
Commitments and contingencies | ||||
Loss Contingency Accrual | 1 | |||
Additional Accrual for loss contingency [Member] | Subsequent Event | Convergent Mobile, Inc. v. JTH Tax, Inc. | ||||
Commitments and contingencies | ||||
Loss Contingency Accrual | $ 0.6 | |||
Compliance Program loss contingency [Member] | ||||
Commitments and contingencies | ||||
Loss Contingency Accrual | $ 0.5 | |||
Property Lease Guarantee | ||||
Commitments and contingencies | ||||
Loss Contingency, Estimate of Possible Loss | $ 8.9 |
Segments (Details)
Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2021 | Mar. 28, 2020 | Dec. 26, 2020 | |
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | $ 52,976 | $ (2,845) | |
Goodwill | 786,685 | $ 448,258 | |
Assets | 2,723,618 | 1,749,773 | |
Depreciation Amortization and Impairment | 11,458 | 13,862 | |
Revenues | 621,345 | 502,947 | |
Vitamin Shoppe [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | 33,275 | (5,476) | |
Goodwill | 1,277 | 1,277 | |
Assets | 589,848 | 607,148 | |
Depreciation Amortization and Impairment | 7,242 | 11,310 | |
Revenues | 294,739 | 275,888 | |
American Freight [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | 25,130 | 1,586 | |
Goodwill | 371,175 | 367,882 | |
Assets | 867,096 | 801,731 | |
Depreciation Amortization and Impairment | 1,890 | 912 | |
Revenues | 258,517 | 202,747 | |
Pet Supplies Plus | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | (4,169) | 0 | |
Goodwill | 335,134 | 0 | |
Assets | 928,096 | 0 | |
Depreciation Amortization and Impairment | 1,431 | 0 | |
Revenues | 51,309 | 0 | |
Buddy's [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | 4,273 | 3,345 | |
Goodwill | 79,099 | 79,099 | |
Assets | 139,210 | 137,698 | |
Depreciation Amortization and Impairment | 895 | 1,640 | |
Revenues | 16,780 | 24,312 | |
Overhead [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | (5,533) | (2,300) | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | 58,509 | $ (545) | |
Assets | 2,524,250 | 1,546,577 | |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 199,368 | $ 203,196 |
Subsequent Event Subsequent E_2
Subsequent Event Subsequent Events (Details) - Subsequent Event - Dividend Declared | May 04, 2021$ / shares |
Common Stock [Member] | |
Subsequent Event [Line Items] | |
Dividends Payable, Amount Per Share | $ 0.375 |
Preferred Stock [Member] | |
Subsequent Event [Line Items] | |
Dividends Payable, Amount Per Share | $ 0.46875 |
Uncategorized Items - frg-20210
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 151,502,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | 45,146,000 |
Total Equity [Member] | ||
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | $ 15,434,000 |