Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 26, 2020 | Jul. 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 26, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ICHR | |
Entity Registrant Name | ICHOR HOLDINGS, LTD. | |
Entity Central Index Key | 0001652535 | |
Current Fiscal Year End Date | --12-25 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Ordinary Shares Outstanding | 22,949,536 | |
Title of 12(b) Security | Ordinary Shares, par value $0.0001 | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-37961 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Incorporation, State or Country Code | E9 | |
Entity Address, Address Line One | 3185 Laurelview Ct. | |
Entity Address, City or Town | Fremont | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94538 | |
City Area Code | 510 | |
Local Phone Number | 897-5200 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 26, 2020 | Dec. 27, 2019 |
Current assets: | ||
Cash | $ 56,969 | $ 60,612 |
Accounts receivable, net | 104,859 | 84,849 |
Inventories, net | 149,190 | 127,037 |
Prepaid expenses and other current assets | 6,371 | 4,449 |
Total current assets | 317,389 | 276,947 |
Property and equipment, net | 45,631 | 44,541 |
Operating lease right-of-use assets | 12,019 | 14,198 |
Other noncurrent assets | 1,116 | 1,094 |
Deferred tax assets, net | 4,354 | 4,738 |
Intangible assets, net | 45,357 | 52,027 |
Goodwill | 173,010 | 173,010 |
Total assets | 598,876 | 566,555 |
Current liabilities: | ||
Accounts payable | 118,278 | 131,578 |
Accrued liabilities | 15,974 | 12,814 |
Other current liabilities | 6,996 | 5,233 |
Current portion of long-term debt | 8,750 | 8,750 |
Current portion of lease liabilities | 5,359 | 5,492 |
Total current liabilities | 155,357 | 163,867 |
Long-term debt, less current portion, net | 195,413 | 169,304 |
Lease liabilities, less current portion | 7,038 | 9,081 |
Deferred tax liabilities | 210 | 210 |
Other non-current liabilities | 2,668 | 2,677 |
Total liabilities | 360,686 | 345,139 |
Shareholders’ equity: | ||
Preferred shares ($0.0001 par value; 20,000,000 shares authorized; zero shares issued and outstanding) | ||
Ordinary shares ($0.0001 par value; 200,000,000 shares authorized; 22,868,999 and 22,618,708 shares outstanding, respectively; 27,306,438 and 27,056,147 shares issued, respectively) | 2 | 2 |
Additional paid in capital | 248,882 | 242,318 |
Treasury shares at cost (4,437,439 shares) | (91,578) | (91,578) |
Retained earnings | 80,884 | 70,674 |
Total shareholders’ equity | 238,190 | 221,416 |
Total liabilities and shareholders’ equity | $ 598,876 | $ 566,555 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 26, 2020 | Dec. 27, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred shares, par value | $ 0.0001 | $ 0.0001 |
Preferred shares, authorized | 20,000,000 | 20,000,000 |
Preferred shares, issued | 0 | 0 |
Preferred shares, outstanding | 0 | 0 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 200,000,000 | 200,000,000 |
Ordinary shares, issued | 27,306,438 | 27,056,147 |
Ordinary shares, outstanding | 22,868,999 | 22,618,708 |
Treasury shares | 4,437,439 | 4,437,439 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 221,564 | $ 139,195 | $ 441,592 | $ 277,026 |
Cost of sales | 192,302 | 119,662 | 383,556 | 237,270 |
Gross profit | 29,262 | 19,533 | 58,036 | 39,756 |
Operating expenses: | ||||
Research and development | 3,509 | 2,634 | 6,831 | 5,025 |
Selling, general, and administrative | 13,113 | 10,685 | 29,731 | 22,443 |
Amortization of intangible assets | 3,336 | 3,202 | 6,670 | 6,339 |
Total operating expenses | 19,958 | 16,521 | 43,232 | 33,807 |
Operating income | 9,304 | 3,012 | 14,804 | 5,949 |
Interest expense | 2,302 | 2,762 | 4,676 | 5,530 |
Other expense (income), net | 2 | 7 | (29) | 31 |
Income before income taxes | 7,000 | 243 | 10,157 | 388 |
Income tax expense (benefit) | 189 | (93) | (53) | (1,466) |
Net income | $ 6,811 | $ 336 | $ 10,210 | $ 1,854 |
Net income per share Basic | $ 0.30 | $ 0.02 | $ 0.45 | $ 0.08 |
Net income per share Diluted | $ 0.30 | $ 0.01 | $ 0.44 | $ 0.08 |
Shares used to compute net income per share: | ||||
Shares used to compute net income per share, Basic | 22,836,400 | 22,395,308 | 22,786,782 | 22,332,568 |
Shares used to compute net income per share, Diluted | 23,066,976 | 22,663,053 | 23,099,946 | 22,596,412 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Treasury Shares | Retained Earnings |
Balance at Dec. 28, 2018 | $ 198,326 | $ 2 | $ 228,358 | $ (89,979) | $ 59,945 |
Balance, Shares at Dec. 28, 2018 | 22,234,508 | 4,339,529 | |||
Ordinary shares issued from exercise of stock options | 2,207 | 2,207 | |||
Ordinary shares issued from exercise of stock options, shares | 204,700 | ||||
Ordinary shares issued from vesting of restricted share units | (174) | (174) | |||
Ordinary shares issued from vesting of restricted share units, shares | 50,290 | ||||
Ordinary shares issued from employee share purchase plan | 312 | 312 | |||
Ordinary shares issued from employee share purchase plan, shares | 22,501 | ||||
Repurchase of ordinary shares | (1,599) | $ (1,599) | |||
Repurchase of ordinary shares, shares | (97,910) | 97,910 | |||
Share-based compensation expense | 2,805 | 2,805 | |||
Net income | 1,854 | 1,854 | |||
Balance at Jun. 28, 2019 | 203,731 | $ 2 | 233,508 | $ (91,578) | 61,799 |
Balance, Shares at Jun. 28, 2019 | 22,414,089 | 4,437,439 | |||
Balance at Mar. 29, 2019 | 201,680 | $ 2 | 231,793 | $ (91,578) | 61,463 |
Balance, Shares at Mar. 29, 2019 | 22,370,129 | 4,437,439 | |||
Ordinary shares issued from exercise of stock options | 303 | 303 | |||
Ordinary shares issued from exercise of stock options, shares | 17,785 | ||||
Ordinary shares issued from vesting of restricted share units | (63) | (63) | |||
Ordinary shares issued from vesting of restricted share units, shares | 26,175 | ||||
Share-based compensation expense | 1,475 | 1,475 | |||
Net income | 336 | 336 | |||
Balance at Jun. 28, 2019 | 203,731 | $ 2 | 233,508 | $ (91,578) | 61,799 |
Balance, Shares at Jun. 28, 2019 | 22,414,089 | 4,437,439 | |||
Balance at Dec. 27, 2019 | 221,416 | $ 2 | 242,318 | $ (91,578) | 70,674 |
Balance, Shares at Dec. 27, 2019 | 22,618,708 | 4,437,439 | |||
Ordinary shares issued from exercise of stock options | 2,594 | 2,594 | |||
Ordinary shares issued from exercise of stock options, shares | 122,336 | ||||
Ordinary shares issued from vesting of restricted share units | (1,386) | (1,386) | |||
Ordinary shares issued from vesting of restricted share units, shares | 111,435 | ||||
Ordinary shares issued from employee share purchase plan | 350 | 350 | |||
Ordinary shares issued from employee share purchase plan, shares | 16,520 | ||||
Share-based compensation expense | 5,006 | 5,006 | |||
Net income | 10,210 | 10,210 | |||
Balance at Jun. 26, 2020 | 238,190 | $ 2 | 248,882 | $ (91,578) | 80,884 |
Balance, Shares at Jun. 26, 2020 | 22,868,999 | 4,437,439 | |||
Balance at Mar. 27, 2020 | 229,520 | $ 2 | 247,023 | $ (91,578) | 74,073 |
Balance, Shares at Mar. 27, 2020 | 22,806,679 | 4,437,439 | |||
Ordinary shares issued from exercise of stock options | 111 | 111 | |||
Ordinary shares issued from exercise of stock options, shares | 8,797 | ||||
Ordinary shares issued from vesting of restricted share units | (393) | (393) | |||
Ordinary shares issued from vesting of restricted share units, shares | 53,523 | ||||
Share-based compensation expense | 2,141 | 2,141 | |||
Net income | 6,811 | 6,811 | |||
Balance at Jun. 26, 2020 | $ 238,190 | $ 2 | $ 248,882 | $ (91,578) | $ 80,884 |
Balance, Shares at Jun. 26, 2020 | 22,868,999 | 4,437,439 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 26, 2020 | Jun. 28, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 10,210 | $ 1,854 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 11,662 | 10,460 |
Share-based compensation | 5,006 | 2,805 |
Deferred income taxes | 384 | (172) |
Amortization of debt issuance costs | 484 | 454 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | (20,010) | (1,284) |
Inventories, net | (22,153) | 12,633 |
Prepaid expenses and other assets | 563 | 3,058 |
Accounts payable | (13,717) | (4,176) |
Accrued liabilities | 3,138 | (706) |
Other liabilities | (750) | (4,266) |
Net cash provided by (used in) operating activities | (25,183) | 20,660 |
Cash flows from investing activities: | ||
Capital expenditures | (5,665) | (6,117) |
Cash paid for intangible assets | (8,147) | |
Net cash used in investing activities | (5,665) | (14,264) |
Cash flows from financing activities: | ||
Issuance of ordinary shares under share-based compensation plans | 2,966 | 2,562 |
Employees' taxes paid upon vesting of restricted share units | (1,386) | (174) |
Repurchase of ordinary shares | (1,599) | |
Borrowings on revolving credit facility | 30,000 | 5,000 |
Repayments on revolving credit facility | (8,000) | |
Repayments on term loan | (4,375) | (6,563) |
Net cash provided by (used in) financing activities | 27,205 | (8,774) |
Net decrease in cash | (3,643) | (2,378) |
Cash at beginning of period | 60,612 | 43,834 |
Cash at end of period | 56,969 | 41,456 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 4,240 | 5,755 |
Cash paid during the period for taxes, net of refunds | 34 | 1,624 |
Supplemental disclosures of non-cash activities: | ||
Capital expenditures included in accounts payable | 1,191 | 1,170 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 328 | $ 566 |
Basis of Presentation and Selec
Basis of Presentation and Selected Significant Accounting Policies | 6 Months Ended |
Jun. 26, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Selected Significant Accounting Policies | Note 1 – Basis of Presentation and Selected Significant Accounting Policies Basis of Presentation These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). All intercompany balances and transactions have been eliminated upon consolidation. All dollar figures presented in tables in the notes to consolidated financial statements are in thousands, except per share amounts. Year End We use a 52- or 53-week fiscal year ending on the last Friday in December. The three months ended June 26, 2020 and June 28, 2019 were both 13 weeks. References to the second quarter of 2020 and 2019 refer to the three-month periods then ended . References to fiscal year 2020 refer to our fiscal year ending December 25, 2020. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods presented. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from the estimates made by management. Significant estimates include the fair value of assets and liabilities acquired in acquisitions, estimated useful lives for long‑lived assets, allowance for doubtful accounts, inventory valuation, uncertain tax positions, fair value assigned to stock options granted, and impairment analysis for both definite‑lived intangible assets and goodwill. Revenue Recognition We recognize revenue when control of promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. This amount is recorded as net sales in our consolidated statements of operations. Transaction price – In most of our contracts, prices are generally determined by a customer-issued purchase order and generally remain fixed over the duration of the contract. Certain contracts contain variable consideration, including early-payment discounts and rebates. When a contract includes variable consideration, we evaluate the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, we include the variable consideration in the transaction price only to the extent that it is probable that a significant reversal will not occur. Variable consideration estimates are updated at each reporting date. Historically, we have not incurred significant costs to obtain a contract. All amounts billed to a customer relating to shipping and handling are classified as net sales, while all costs incurred by us for shipping and handling are classified as cost of sales. Performance obligations – Substantially all of our performance obligations pertain to promised goods (“products”), which are primarily comprised of fluid delivery subsystems, weldments, and other components. Most of our contracts contain a single performance obligation and are generally completed within twelve months. Product sales are recognized at a point-in-time, generally upon delivery, as such term is defined within the contract, as that is when control of the promised good has transferred. Products are covered by a standard assurance warranty, generally extended for a period of one to two years depending on the customer, which promises that delivered products conform to contract specifications. As such, we account for such warranties under ASC 460, Guarantees , and not as a separate performance obligation . Contract balances – Accounts receivable represents our unconditional right to receive consideration from our customers. Accounts receivable are carried at invoice price less an estimate for doubtful accounts and estimated payment discounts. Payment terms vary by customer but are generally due within 15‑60 days. Historically, we have not incurred significant payment issues with our customers. We had no significant contract assets or liabilities on our consolidated balance sheets in any of the periods presented Commitments and Contingencies We are periodically involved in legal actions and claims that arise as a result of events that occur in the normal course of operations. The ultimate resolution of these actions is not expected to have a material effect on our financial position or results of operations. Subsequent to the end of the first quarter, but before the financial statements were issued, we reached a mutual settlement with the counterparty of a contract dispute and, accordingly, recorded a $1.4 million contract settlement loss to cost of sales, as the settlement provided evidence relating to a loss that existed at March 27, 2020. Accounting Pronouncements Recently Adopted In June 2016, the FASB issued ASU 2016‑13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. We adopted the standard on the first day of the first quarter of 2020, and the adoption did not have a significant impact on our financial statements. In August 2018, the FASB issued ASU 2018‑15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350‑40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The new guidance clarifies the accounting for implementation costs in cloud computing arrangements. We adopted the standard on the first day of the first quarter of 2020, and the adoption did not have a significant impact on our financial statements. |
Inventories
Inventories | 6 Months Ended |
Jun. 26, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2 – Inventories Inventories consist of the following: June 26, 2020 December 27, 2019 Raw materials $ 98,841 $ 85,329 Work in process 39,489 31,825 Finished goods 21,427 17,700 Excess and obsolete adjustment (10,567 ) (7,817 ) Total inventories, net $ 149,190 $ 127,037 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 26, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 3 – Property and Equipment Property and equipment consist of the following: June 26, 2020 December 27, 2019 Machinery $ 37,133 $ 33,684 Leasehold improvements 28,905 27,835 Computer software, hardware, and equipment 6,250 5,796 Office furniture, fixtures and equipment 1,037 1,040 Vehicles 26 26 Construction-in-process 4,793 3,760 78,144 72,141 Less accumulated depreciation (32,513 ) (27,600 ) Total property and equipment, net $ 45,631 $ 44,541 Depreciation expense was $2.6 million and $2.0 million for the second quarter of 2020 and 2019, respectively, and $5.0 million and $4.1 million for the six months ended June 26, 2020 and June 28, 2019, respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 26, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 4 – Intangible Assets Definite‑lived intangible assets consist of the following: June 26, 2020 Gross value Accumulated amortization Accumulated impairment charges Carrying amount Weighted average useful life Trademarks $ 9,690 $ (8,234 ) $ — $ 1,456 10.0 years Customer relationships 82,986 (48,270 ) — 34,716 7.8 years Developed technology 11,047 (1,862 ) — 9,185 10.0 years Total intangible assets $ 103,723 $ (58,366 ) $ — $ 45,357 December 27, 2019 Gross value Accumulated amortization Accumulated impairment charges Carrying amount Weighted average useful life Trademarks $ 9,690 $ (7,750 ) $ — $ 1,940 10.0 years Customer relationships 82,986 (42,621 ) — 40,365 7.8 years Developed technology 11,047 (1,325 ) — 9,722 10.0 years Total intangible assets $ 103,723 $ (51,696 ) $ — $ 52,027 |
Leases
Leases | 6 Months Ended |
Jun. 26, 2020 | |
Leases [Abstract] | |
Leases | Note 5 – Leases Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. For purposes of calculating operating lease ROU assets and operating lease liabilities, we use the non-cancellable lease term plus options to extend that we are reasonably certain to take. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We lease facilities under various non-cancellable operating leases expiring through 2025. In addition to base rental payments, we are generally responsible for our proportionate share of operating expenses, including facility maintenance, insurance, and property taxes. As these amounts are variable, they are not included in lease liabilities. As of June 26, 2020, we had no operating leases executed for which the rental period had not yet commenced. The components of lease expense are as follows: Three Months Ended Six Months Ended June 26, 2020 June 28, 2019 June 26, 2020 June 28, 2019 Operating lease cost $ 1,332 $ 1,660 $ 2,652 $ 3,293 Supplemental cash flow information related to leases is as follows: Six Months Ended June 26, 2020 June 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,678 $ 2,492 Supplemental balance sheet information related to leases is as follows: June 26, 2020 Weighted-average remaining lease term of operating leases 2.7 years Weighted-average discount rate of operating leases 4.5% Future minimum lease payments under non-cancelable leases as of June 26, 2020 are as follows: 2020, remaining $ 2,797 2021 4,900 2022 4,123 2023 1,173 2024 241 Thereafter 26 Total future minimum lease payments 13,260 Less imputed interest (863 ) Total lease liabilities $ 12,397 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 – Income Taxes Coronavirus Aid, Relief, and Economic Security (“CARES”) Act In response to the COVID‑19 pandemic, the CARES Act was signed into law in March 2020. The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”). Corporate taxpayers may carryback net operating losses (“NOLs”) originating in 2018 through 2020 for up to five years, which was not previously allowed under the 2017 Tax Act. The CARES Act also eliminates the existing limitation on taxable income of 80% by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019, or 2020. Taxpayers may generally deduct interest up to the sum of 50% of adjusted taxable income, plus business interest income, subject to the existing 30% limit under the 2017 Tax Act, for 2019 and 2020. The CARES Act allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the 2017 Tax Act. In addition, the CARES Act raises the corporate charitable deduction limit to 25% of taxable income and makes qualified improvement property generally eligible for 15-year cost-recovery and 100% bonus depreciation. With the enactment of the CARES Act, we expect to generate an additional income tax refund of approximately $0.7 million from our NOL carryback provision, resulting from the benefit from additional interest and depreciation deductions. Accordingly, we recognized a benefit of $0.2 million related to the CARES Act in our income tax provision for the first quarter of 2020. Income tax information for the periods reported are as follows: Three Months Ended Six Months Ended June 26, 2020 June 28, 2019 June 26, 2020 June 28, 2019 Income tax expense (benefit) $ 189 $ (93 ) $ (53 ) $ (1,466 ) Income before income taxes $ 7,000 $ 243 $ 10,157 $ 388 Effective income tax rate 2.7 % -38.3 % -0.5 % -377.8 % Our effective tax rate for the three and six months ended June 26, 2020 differs from the statutory rate due to taxes on foreign income that differ from the U.S. tax rate, excess tax benefits from share-based compensation, and the impact of the CARES Act. Our effective tax rate for the second quarter of 2019 differs from the statutory rate due to taxes on foreign income that differ from the U.S. tax rate and excess tax benefits from share-based compensation. Our effective tax rate for the six months ended June 28, 2019 differs from the statutory rate due to taxes on foreign income that differ from the U.S. tax rate, the release of certain tax reserves related to statute of limitation expirations and settlements, and excess tax benefits from share-based compensation. The ending balance for the unrecognized tax benefits for uncertain tax positions was approximately $2.3 million at June 26, 2020. The related interest and penalties were zero and $0.4 million, respectively. The uncertain tax positions that are reasonably possible to decrease in the next twelve months are insignificant. As of June 26, 2020, we were not under examination by tax authorities. |
Employee Benefit Programs
Employee Benefit Programs | 6 Months Ended |
Jun. 26, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Programs | Note 7 – Employee Benefit Programs 401(k) Plan We sponsor a 401(k) plan available to employees of our U.S.‑based subsidiaries. Participants may make salary deferral contributions not to exceed 50% of a participant’s annual compensation or the maximum amount otherwise allowed by law. Eligible employees receive a discretionary matching contribution equal to 50% of a participant’s deferral, up to an annual maximum of 4% of a participant’s annual compensation. Matching contributions were $0.5 million and $0.4 million for the |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 26, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8 – Long-Term Debt Long‑term debt consists of the following: June 26, 2020 December 27, 2019 Term loan $ 157,500 $ 161,875 Revolving credit facility 49,162 19,162 Total principal amount of long-term debt 206,662 181,037 Less unamortized debt issuance costs (2,499 ) (2,983 ) Total long-term debt, net 204,163 178,054 Less current portion (8,750 ) (8,750 ) Total long-term debt, less current portion, net $ 195,413 $ 169,304 On February 15, 2018, we amended and restated our credit agreement, which replaced our existing credit facilities with a $175.0 million term loan and a $125.0 million revolving credit facility. The amendment reduced our borrowing rate, depending on our leverage ratio, and extended the maturity date. We incurred debt issuance costs of $2.1 million in connection with the amendment. The amendment did not meet the definition of an extinguishment and was accounted for as a debt modification. Interest is charged at either the Base Rate or the Eurodollar rate (as such terms are defined in the credit agreement) at our option, plus an applicable margin. The Base Rate is equal to the higher of i) the Prime Rate, ii) the Federal Funds Rate plus 0.5%, or iii) the Eurodollar Rate plus 1.00%. The Eurodollar rate is equal to LIBOR. The applicable margin on Base Rate and Eurodollar Rate loans is 0.75‑1.50% and 1.75‑2.50% per annum, respectively, depending on our leverage ratio. We are also charged a commitment fee of 0.20%-0.35% on the unused portion of our revolving credit facility. Base Rate interest payments and commitment fees are due quarterly. Eurodollar interest payments are due on the last day of the applicable interest period. At June 26, 2020, the term loan and revolving credit facility bore interest at the Eurodollar rate option of 3.95% and 3.68%, respectively Term loan principal payments of $2.2 million are due on a quarterly basis. The term loan and revolving credit facility mature on February 15, 2023 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 26, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 9 – Share‑Based Compensation The 2016 Omnibus Incentive Plan (the “2016 Plan”) provides for grants of share‑based awards to employees, directors, and consultants. Forfeited or expired awards are returned to the incentive plan pool for future grants. Awards generally vest over four years, 25% on the first anniversary of the date of grant and quarterly thereafter over the remaining 3 years. Upon vesting of RSUs, employees may elect to have shares withheld to cover statutory minimum withholding taxes. Shares withheld are not reflected as an issuance of ordinary shares within our consolidated statements of shareholders’ equity, as the shares were never issued, and the associated tax payments are reflected as financing activities within our consolidated statements of cash flows. Share‑based compensation expense across all plans for options, RSUs, and employee share purchase rights was $2.1 million and $1.5 million for the second quarter of 2020 and 2019, respectively, and $5.0 million and $2.8 million for the six months ended June 26, 2020 and June 28, 2019, respectively. Stock Options The following table summarizes option activity: Number of Stock Options Time vesting Performance vesting Weighted average exercise price per share Weighted average remaining contractual term Aggregate intrinsic value (in thousands) Outstanding, December 27, 2019 1,688,938 65,908 $ 20.57 Granted 222,051 — $ 23.49 Exercised (122,336 ) — $ 21.20 Forfeited or expired (28,375 ) — $ 23.15 Outstanding, June 26, 2020 1,760,278 65,908 $ 20.84 4.5 years $ 9,076 Exercisable, June 26, 2020 904,471 65,908 $ 18.37 3.4 years $ 6,510 Restricted Share Units The following table summarizes RSU activity: Number of Restricted Share Units Time vesting Performance vesting Weighted average grant date fair value per share Unvested, December 27, 2019 389,170 17,730 $ 23.03 Granted 336,610 — $ 24.17 Vested (160,153 ) — $ 22.86 Forfeited — — $ — Unvested, June 26, 2020 565,627 17,730 $ 23.74 Employee Share Purchase Plan The 2017 Employee Stock Purchase Plan (the “2017 ESPP”) grants employees the ability to designate a portion of their base-pay to purchase ordinary shares at a price equal to 85% of the fair market value of our ordinary shares on the first or last day of each 6 month purchase period. Purchase periods begin on January 1 or July 1 and end on June 30 or December 31, or the next business day if such date is not a business day. Shares are purchased on the last day of the purchase period. During the six months ended June 26, 2020, 16,520 ordinary shares were purchased by eligible employees under the 2017 ESPP. As of June 26, 2020, approximately 2.4 million ordinary shares remain available for purchase under the 2017 ESPP. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 26, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 10 – Segment Information Our Chief Operating Decision Maker, the Chief Executive Officer, reviews our results of operations on a consolidated level and executive staff is structured by function rather than by product category. Therefore, we operate in one operating segment. Key resources, decisions, and assessment of performance are also analyzed on a company‑wide level. Foreign operations are conducted primarily through our wholly owned subsidiaries in Singapore and Malaysia. Our principal markets include North America, Asia and, to a lesser degree, Europe. Sales by geographic area represent sales to unaffiliated customers. All information on sales by geographic area is based upon the location to which the products were shipped. The following table sets forth sales by geographic area: Three Months Ended Six Months Ended June 26, 2020 June 28, 2019 June 26, 2020 June 28, 2019 United States of America $ 117,692 $ 76,899 $ 238,533 $ 153,532 Singapore 74,327 43,298 147,536 80,277 Europe 18,536 9,797 33,495 24,890 Other 11,009 9,201 22,028 18,327 Total net sales $ 221,564 $ 139,195 $ 441,592 $ 277,026 Foreign long-lived assets, exclusive of deferred tax assets, were $29.0 million and $30.3 million at June 26, 2020 and December 27, 2019, respectively |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 26, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 11 – Earnings per Share The following table sets forth the computation of basic and diluted earnings per share and a reconciliation of the numerator and denominator used in the calculation: Three Months Ended Six Months Ended June 26, 2020 June 28, 2019 June 26, 2020 June 28, 2019 Numerator: Net income $ 6,811 $ 336 $ 10,210 $ 1,854 Denominator: Basic weighted average ordinary shares outstanding 22,836,400 22,395,308 22,786,782 22,332,568 Dilutive effect of options 191,526 236,526 255,523 241,077 Dilutive effect of RSUs 36,481 21,359 55,072 12,907 Dilutive effect of ESPP 2,569 9,860 2,569 9,860 Diluted weighted average ordinary shares outstanding 23,066,976 22,663,053 23,099,946 22,596,412 Earnings per share: Net income: Basic $ 0.30 $ 0.02 $ 0.45 $ 0.08 Diluted $ 0.30 $ 0.01 $ 0.44 $ 0.08 A combined total of approximately 1,790,000, 1,782,000, 1,555,000, and 1,890,000 potentially dilutive options and RSUs were excluded from the calculation of net income per share for the second quarter of 2020 and 2019 and the six months ended June 26, 2020 and June 28, 2019, respectively, because including them would have been antidilutive under the treasury stock method. |
Basis of Presentation and Sel_2
Basis of Presentation and Selected Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 26, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). All intercompany balances and transactions have been eliminated upon consolidation. All dollar figures presented in tables in the notes to consolidated financial statements are in thousands, except per share amounts. |
Year End | Year End We use a 52- or 53-week fiscal year ending on the last Friday in December. The three months ended June 26, 2020 and June 28, 2019 were both 13 weeks. References to the second quarter of 2020 and 2019 refer to the three-month periods then ended . References to fiscal year 2020 refer to our fiscal year ending December 25, 2020. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods presented. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from the estimates made by management. Significant estimates include the fair value of assets and liabilities acquired in acquisitions, estimated useful lives for long‑lived assets, allowance for doubtful accounts, inventory valuation, uncertain tax positions, fair value assigned to stock options granted, and impairment analysis for both definite‑lived intangible assets and goodwill. |
Revenue Recognition | Revenue Recognition We recognize revenue when control of promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. This amount is recorded as net sales in our consolidated statements of operations. Transaction price – In most of our contracts, prices are generally determined by a customer-issued purchase order and generally remain fixed over the duration of the contract. Certain contracts contain variable consideration, including early-payment discounts and rebates. When a contract includes variable consideration, we evaluate the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, we include the variable consideration in the transaction price only to the extent that it is probable that a significant reversal will not occur. Variable consideration estimates are updated at each reporting date. Historically, we have not incurred significant costs to obtain a contract. All amounts billed to a customer relating to shipping and handling are classified as net sales, while all costs incurred by us for shipping and handling are classified as cost of sales. Performance obligations – Substantially all of our performance obligations pertain to promised goods (“products”), which are primarily comprised of fluid delivery subsystems, weldments, and other components. Most of our contracts contain a single performance obligation and are generally completed within twelve months. Product sales are recognized at a point-in-time, generally upon delivery, as such term is defined within the contract, as that is when control of the promised good has transferred. Products are covered by a standard assurance warranty, generally extended for a period of one to two years depending on the customer, which promises that delivered products conform to contract specifications. As such, we account for such warranties under ASC 460, Guarantees , and not as a separate performance obligation . Contract balances – Accounts receivable represents our unconditional right to receive consideration from our customers. Accounts receivable are carried at invoice price less an estimate for doubtful accounts and estimated payment discounts. Payment terms vary by customer but are generally due within 15‑60 days. Historically, we have not incurred significant payment issues with our customers. We had no significant contract assets or liabilities on our consolidated balance sheets in any of the periods presented |
Commitments and Contingencies | Commitments and Contingencies We are periodically involved in legal actions and claims that arise as a result of events that occur in the normal course of operations. The ultimate resolution of these actions is not expected to have a material effect on our financial position or results of operations. Subsequent to the end of the first quarter, but before the financial statements were issued, we reached a mutual settlement with the counterparty of a contract dispute and, accordingly, recorded a $1.4 million contract settlement loss to cost of sales, as the settlement provided evidence relating to a loss that existed at March 27, 2020. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In June 2016, the FASB issued ASU 2016‑13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. We adopted the standard on the first day of the first quarter of 2020, and the adoption did not have a significant impact on our financial statements. In August 2018, the FASB issued ASU 2018‑15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350‑40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The new guidance clarifies the accounting for implementation costs in cloud computing arrangements. We adopted the standard on the first day of the first quarter of 2020, and the adoption did not have a significant impact on our financial statements. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: June 26, 2020 December 27, 2019 Raw materials $ 98,841 $ 85,329 Work in process 39,489 31,825 Finished goods 21,427 17,700 Excess and obsolete adjustment (10,567 ) (7,817 ) Total inventories, net $ 149,190 $ 127,037 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following: June 26, 2020 December 27, 2019 Machinery $ 37,133 $ 33,684 Leasehold improvements 28,905 27,835 Computer software, hardware, and equipment 6,250 5,796 Office furniture, fixtures and equipment 1,037 1,040 Vehicles 26 26 Construction-in-process 4,793 3,760 78,144 72,141 Less accumulated depreciation (32,513 ) (27,600 ) Total property and equipment, net $ 45,631 $ 44,541 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Definite-Lived Intangible Assets | Definite‑lived intangible assets consist of the following: June 26, 2020 Gross value Accumulated amortization Accumulated impairment charges Carrying amount Weighted average useful life Trademarks $ 9,690 $ (8,234 ) $ — $ 1,456 10.0 years Customer relationships 82,986 (48,270 ) — 34,716 7.8 years Developed technology 11,047 (1,862 ) — 9,185 10.0 years Total intangible assets $ 103,723 $ (58,366 ) $ — $ 45,357 December 27, 2019 Gross value Accumulated amortization Accumulated impairment charges Carrying amount Weighted average useful life Trademarks $ 9,690 $ (7,750 ) $ — $ 1,940 10.0 years Customer relationships 82,986 (42,621 ) — 40,365 7.8 years Developed technology 11,047 (1,325 ) — 9,722 10.0 years Total intangible assets $ 103,723 $ (51,696 ) $ — $ 52,027 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense are as follows: Three Months Ended Six Months Ended June 26, 2020 June 28, 2019 June 26, 2020 June 28, 2019 Operating lease cost $ 1,332 $ 1,660 $ 2,652 $ 3,293 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Six Months Ended June 26, 2020 June 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,678 $ 2,492 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: June 26, 2020 Weighted-average remaining lease term of operating leases 2.7 years Weighted-average discount rate of operating leases 4.5% |
Future Minimum Lease Payments Under Non-Cancelable Leases | Future minimum lease payments under non-cancelable leases as of June 26, 2020 are as follows: 2020, remaining $ 2,797 2021 4,900 2022 4,123 2023 1,173 2024 241 Thereafter 26 Total future minimum lease payments 13,260 Less imputed interest (863 ) Total lease liabilities $ 12,397 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes | Income tax information for the periods reported are as follows: Three Months Ended Six Months Ended June 26, 2020 June 28, 2019 June 26, 2020 June 28, 2019 Income tax expense (benefit) $ 189 $ (93 ) $ (53 ) $ (1,466 ) Income before income taxes $ 7,000 $ 243 $ 10,157 $ 388 Effective income tax rate 2.7 % -38.3 % -0.5 % -377.8 % |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long‑term debt consists of the following: June 26, 2020 December 27, 2019 Term loan $ 157,500 $ 161,875 Revolving credit facility 49,162 19,162 Total principal amount of long-term debt 206,662 181,037 Less unamortized debt issuance costs (2,499 ) (2,983 ) Total long-term debt, net 204,163 178,054 Less current portion (8,750 ) (8,750 ) Total long-term debt, less current portion, net $ 195,413 $ 169,304 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Option Activity | The following table summarizes option activity: Number of Stock Options Time vesting Performance vesting Weighted average exercise price per share Weighted average remaining contractual term Aggregate intrinsic value (in thousands) Outstanding, December 27, 2019 1,688,938 65,908 $ 20.57 Granted 222,051 — $ 23.49 Exercised (122,336 ) — $ 21.20 Forfeited or expired (28,375 ) — $ 23.15 Outstanding, June 26, 2020 1,760,278 65,908 $ 20.84 4.5 years $ 9,076 Exercisable, June 26, 2020 904,471 65,908 $ 18.37 3.4 years $ 6,510 |
Schedule of RSU Activity | The following table summarizes RSU activity: Number of Restricted Share Units Time vesting Performance vesting Weighted average grant date fair value per share Unvested, December 27, 2019 389,170 17,730 $ 23.03 Granted 336,610 — $ 24.17 Vested (160,153 ) — $ 22.86 Forfeited — — $ — Unvested, June 26, 2020 565,627 17,730 $ 23.74 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Sales By Geographic Area | The following table sets forth sales by geographic area: Three Months Ended Six Months Ended June 26, 2020 June 28, 2019 June 26, 2020 June 28, 2019 United States of America $ 117,692 $ 76,899 $ 238,533 $ 153,532 Singapore 74,327 43,298 147,536 80,277 Europe 18,536 9,797 33,495 24,890 Other 11,009 9,201 22,028 18,327 Total net sales $ 221,564 $ 139,195 $ 441,592 $ 277,026 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share and a reconciliation of the numerator and denominator used in the calculation: Three Months Ended Six Months Ended June 26, 2020 June 28, 2019 June 26, 2020 June 28, 2019 Numerator: Net income $ 6,811 $ 336 $ 10,210 $ 1,854 Denominator: Basic weighted average ordinary shares outstanding 22,836,400 22,395,308 22,786,782 22,332,568 Dilutive effect of options 191,526 236,526 255,523 241,077 Dilutive effect of RSUs 36,481 21,359 55,072 12,907 Dilutive effect of ESPP 2,569 9,860 2,569 9,860 Diluted weighted average ordinary shares outstanding 23,066,976 22,663,053 23,099,946 22,596,412 Earnings per share: Net income: Basic $ 0.30 $ 0.02 $ 0.45 $ 0.08 Diluted $ 0.30 $ 0.01 $ 0.44 $ 0.08 |
Basis of Presentation and Sel_3
Basis of Presentation and Selected Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 26, 2020 | Mar. 28, 2020 | |
Basis Of Presentation [Line Items] | ||
Contract settlement loss | $ 1.4 | |
Minimum | ||
Basis Of Presentation [Line Items] | ||
Extended product warranty period | 1 year | |
Payment terms, due period | 15 days | |
Maximum | ||
Basis Of Presentation [Line Items] | ||
Extended product warranty period | 2 years | |
Payment terms, due period | 60 days |
Basis of Presentation and Sel_4
Basis of Presentation and Selected Significant Accounting Policies - Additional Information (Details 1) | Jun. 26, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-06-27 | |
Basis Of Presentation [Line Items] | |
Performance obligation satisfaction period | 12 months |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 26, 2020 | Dec. 27, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 98,841 | $ 85,329 |
Work in process | 39,489 | 31,825 |
Finished goods | 21,427 | 17,700 |
Excess and obsolete adjustment | (10,567) | (7,817) |
Total inventories, net | $ 149,190 | $ 127,037 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 26, 2020 | Dec. 27, 2019 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 78,144 | $ 72,141 |
Less accumulated depreciation | (32,513) | (27,600) |
Total property and equipment, net | 45,631 | 44,541 |
Machinery | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 37,133 | 33,684 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 28,905 | 27,835 |
Office Furniture, Fixtures and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,037 | 1,040 |
Vehicles | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 26 | 26 |
Construction-In-Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,793 | 3,760 |
Computer Software, Hardware and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 6,250 | $ 5,796 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 2.6 | $ 2 | $ 5 | $ 4.1 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 26, 2020 | Dec. 27, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross value | $ 103,723 | $ 103,723 |
Accumulated amortization | (58,366) | (51,696) |
Carrying amount | 45,357 | 52,027 |
Trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross value | 9,690 | 9,690 |
Accumulated amortization | (8,234) | (7,750) |
Carrying amount | $ 1,456 | $ 1,940 |
Trademarks | Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 10 years | 10 years |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross value | $ 82,986 | $ 82,986 |
Accumulated amortization | (48,270) | (42,621) |
Carrying amount | $ 34,716 | $ 40,365 |
Customer Relationships | Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 7 years 9 months 18 days | 7 years 9 months 18 days |
Developed Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross value | $ 11,047 | $ 11,047 |
Accumulated amortization | (1,862) | (1,325) |
Carrying amount | $ 9,185 | $ 9,722 |
Developed Technology | Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 10 years | 10 years |
Leases - Additional Information
Leases - Additional Information (Detail) | 6 Months Ended |
Jun. 26, 2020Operatinglease | |
Leases [Abstract] | |
Non-cancellable net operating lease expiration year | 2025 |
Lessee, operating lease, not yet commenced, description | As of June 26, 2020, we had no operating leases executed for which the rental period had not yet commenced. |
Number of operating lease executed | 0 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,332 | $ 1,660 | $ 2,652 | $ 3,293 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 26, 2020 | Jun. 28, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 2,678 | $ 2,492 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Detail) | Jun. 26, 2020 |
Leases [Abstract] | |
Weighted-average remaining lease term of operating leases | 2 years 8 months 12 days |
Weighted-average discount rate of operating leases | 4.50% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Non-Cancelable Leases (Detail) $ in Thousands | Jun. 26, 2020USD ($) |
Leases [Abstract] | |
2020, remaining | $ 2,797 |
2021 | 4,900 |
2022 | 4,123 |
2023 | 1,173 |
2024 | 241 |
Thereafter | 26 |
Total future minimum lease payments | 13,260 |
Less imputed interest | (863) |
Total lease liabilities | $ 12,397 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 27, 2020 | Jun. 26, 2020 | |
Income Taxes [Line Items] | ||
CARES act of 2020, eliminated percentage on limitation of taxable income | 80.00% | |
CARES act of 2020 percentage of deductible interest on adjusted Taxable income | 50.00% | |
Percentage of business interest limitation on adjusted taxable income | 30.00% | |
CARES act of 2020 raises the corporate charitable deduction limit to taxable income | 25.00% | |
CARES act of 2020 improvement property generally eligible for cost recovery period | 15 years | |
CARES act of 2020 bonus depreciation | 100.00% | |
CARES act of 2020 estimated net operating loss carry back provisional income tax expense benefit | $ 0.7 | |
CARES act of 2020 recognized a benefits from income taxes provision | $ 0.2 | |
Unrecognized tax benefits for uncertain tax positions | 2.3 | |
Unrecognized tax benefits for uncertain tax positions related interest | 0 | |
Unrecognized tax benefits for uncertain tax positions related penalties | $ 0.4 | |
Maximum | ||
Income Taxes [Line Items] | ||
CARES act of 2020, net operating loss carryback period | 5 years |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Components Of Income Tax Expense Benefit Continuing Operations [Abstract] | ||||
Income tax expense (benefit) | $ 189 | $ (93) | $ (53) | $ (1,466) |
Income before income taxes | $ 7,000 | $ 243 | $ 10,157 | $ 388 |
Effective income tax rate | 2.70% | (38.30%) | (0.50%) | (377.80%) |
Employee Benefit Programs - Add
Employee Benefit Programs - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of maximum annual contributions per employee | 50.00% | 50.00% | ||
Percentage of eligible employee receive discretionary matching contribution | 50.00% | 50.00% | ||
Employee matching contributions | $ 0.5 | $ 0.4 | $ 1 | $ 0.8 |
Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of maximum annual contributions per employee | 4.00% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 26, 2020 | Dec. 27, 2019 |
Line Of Credit Facility [Line Items] | ||
Total principal amount of long-term debt | $ 206,662 | $ 181,037 |
Less unamortized debt issuance costs | (2,499) | (2,983) |
Total long-term debt, net | 204,163 | 178,054 |
Less current portion | (8,750) | (8,750) |
Total long-term debt, less current portion, net | 195,413 | 169,304 |
Term Loan | ||
Line Of Credit Facility [Line Items] | ||
Total principal amount of long-term debt | 157,500 | 161,875 |
Revolving Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Total principal amount of long-term debt | $ 49,162 | $ 19,162 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | Feb. 15, 2018 | Jun. 26, 2020 | Dec. 27, 2019 |
Line Of Credit Facility [Line Items] | |||
Total principal amount of long-term debt | $ 206,662 | $ 181,037 | |
Term Loan | |||
Line Of Credit Facility [Line Items] | |||
Total principal amount of long-term debt | 157,500 | 161,875 | |
Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Total principal amount of long-term debt | $ 49,162 | $ 19,162 | |
Credit Agreement | |||
Line Of Credit Facility [Line Items] | |||
Debt issuance costs | $ 2,100 | ||
Description of interest rate | The Base Rate is equal to the higher of i) the Prime Rate, ii) the Federal Funds Rate plus 0.5%, or iii) the Eurodollar Rate plus 1.00%. The Eurodollar rate is equal to LIBOR. The applicable margin on Base Rate and Eurodollar Rate loans is 0.75‑1.50% and 1.75‑2.50% per annum, respectively, depending on our leverage ratio. | ||
Credit Agreement | Federal Funds Effective Rate | |||
Line Of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Credit Agreement | Eurodollar Rate | |||
Line Of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Frequency of interest payment | Last day of the applicable interest period | ||
Credit Agreement | Eurodollar Rate | Minimum | |||
Line Of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 1.75% | ||
Credit Agreement | Eurodollar Rate | Maximum | |||
Line Of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 2.50% | ||
Credit Agreement | Base Rate | |||
Line Of Credit Facility [Line Items] | |||
Frequency of interest payment | Quarterly | ||
Credit Agreement | Base Rate | Minimum | |||
Line Of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 0.75% | ||
Credit Agreement | Base Rate | Maximum | |||
Line Of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 1.50% | ||
Credit Agreement | Term Loan | |||
Line Of Credit Facility [Line Items] | |||
Total principal amount of long-term debt | $ 175,000 | ||
Credit facility, periodic principal payments | $ 2,200 | ||
Principal payments maturity date | Feb. 15, 2023 | ||
Credit facility, frequency of principal payments | quarterly | ||
Credit Agreement | Term Loan | Eurodollar Rate | |||
Line Of Credit Facility [Line Items] | |||
Interest rate | 3.95% | ||
Credit Agreement | Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Total principal amount of long-term debt | $ 125,000 | ||
Principal payments maturity date | Feb. 15, 2023 | ||
Credit Agreement | Revolving Credit Facility | Minimum | |||
Line Of Credit Facility [Line Items] | |||
Percentage of commitment fee on unused portion of revolver | 0.20% | ||
Credit Agreement | Revolving Credit Facility | Maximum | |||
Line Of Credit Facility [Line Items] | |||
Percentage of commitment fee on unused portion of revolver | 0.35% | ||
Credit Agreement | Revolving Credit Facility | Eurodollar Rate | |||
Line Of Credit Facility [Line Items] | |||
Interest rate | 3.68% |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense for Options, RSUs and employee share purchase rights across all plans | $ 2.1 | $ 1.5 | $ 5 | $ 2.8 |
The 2016 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Award vesting description | Awards generally vest over four years, 25% on the first anniversary of the date of grant and quarterly thereafter over the remaining 3 years. | |||
Share-based compensation arrangement by share-based payment award, expiration period | 4 years | |||
Awards vesting period | 3 years | |||
Awards vesting percentage | 25.00% | |||
2017 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Purchase price equal to percentage of fair market value of ordinary shares | 85.00% | |||
Ordinary shares purchased by eligible employees during the period | 16,520 | |||
Ordinary shares remain available for purchase | 2,400,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 26, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average exercise price per share, Outstanding, Beginning Balance | $ 20.57 |
Weighted average exercise price per share, Granted | 23.49 |
Weighted average exercise price per share, Exercised | 21.20 |
Weighted average exercise price per share, Forfeited or expired | 23.15 |
Weighted average exercise price per share, Outstanding, Ending Balance | 20.84 |
Weighted average exercise price per share, Exercisable | $ 18.37 |
Weighted average remaining contractual term, Outstanding | 4 years 6 months |
Weighted average remaining contractual term, Exercisable | 3 years 4 months 24 days |
Aggregate intrinsic value, Outstanding | $ 9,076 |
Aggregate intrinsic value, Exercisable | $ 6,510 |
Time Vesting | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Stock Options, Outstanding, Beginning Balance | 1,688,938 |
Number of Stock Options, Granted | 222,051 |
Number of Stock Options, Exercised | (122,336) |
Number of Stock Options, Forfeited or expired | (28,375) |
Number of Stock Options, Outstanding, Ending Balance | 1,760,278 |
Number of Stock Options, Exercisable | 904,471 |
Performance Vesting | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Stock Options, Outstanding, Beginning Balance | 65,908 |
Number of Stock Options, Exercised | 0 |
Number of Stock Options, Outstanding, Ending Balance | 65,908 |
Number of Stock Options, Exercisable | 65,908 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of RSU Activity (Details) | 6 Months Ended |
Jun. 26, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average grant date fair value per share, Unvested, Beginning Balance | $ / shares | $ 23.03 |
Weighted average grant date fair value per share, Granted | $ / shares | 24.17 |
Weighted average grant date fair value per share, Vested | $ / shares | 22.86 |
Weighted average grant date fair value per share, Unvested, Ending Balance | $ / shares | $ 23.74 |
Performance Vesting Restricted Share Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Share Units, Unvested, Beginning Balance | 17,730 |
Number of Restricted Share Units, Unvested, Ending Balance | 17,730 |
Time Vesting Restricted Share Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Share Units, Unvested, Beginning Balance | 389,170 |
Number of Restricted Share Units, Granted | 336,610 |
Number of Restricted Share Units, Vested | (160,153) |
Number of Restricted Share Units, Unvested, Ending Balance | 565,627 |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Millions | 6 Months Ended | |
Jun. 26, 2020USD ($)Segment | Dec. 27, 2019USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segment | Segment | 1 | |
Foreign long-lived assets, exclusive of deferred tax assets | $ | $ 29 | $ 30.3 |
Segment Information - Schedule
Segment Information - Schedule of Sales By Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 221,564 | $ 139,195 | $ 441,592 | $ 277,026 |
United States of America | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 117,692 | 76,899 | 238,533 | 153,532 |
Singapore | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 74,327 | 43,298 | 147,536 | 80,277 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 18,536 | 9,797 | 33,495 | 24,890 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 11,009 | $ 9,201 | $ 22,028 | $ 18,327 |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Earnings Per Share Basic And Diluted [Line Items] | ||||
Net income | $ 6,811 | $ 336 | $ 10,210 | $ 1,854 |
Basic weighted average ordinary shares outstanding | 22,836,400 | 22,395,308 | 22,786,782 | 22,332,568 |
Diluted weighted average ordinary shares outstanding | 23,066,976 | 22,663,053 | 23,099,946 | 22,596,412 |
Net income: | ||||
Basic | $ 0.30 | $ 0.02 | $ 0.45 | $ 0.08 |
Diluted | $ 0.30 | $ 0.01 | $ 0.44 | $ 0.08 |
Options | ||||
Earnings Per Share Basic And Diluted [Line Items] | ||||
Dilutive effect of shares | 191,526 | 236,526 | 255,523 | 241,077 |
RSUs | ||||
Earnings Per Share Basic And Diluted [Line Items] | ||||
Dilutive effect of shares | 36,481 | 21,359 | 55,072 | 12,907 |
ESPP | ||||
Earnings Per Share Basic And Diluted [Line Items] | ||||
Dilutive effect of shares | 2,569 | 9,860 | 2,569 | 9,860 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Earnings Per Share [Abstract] | ||||
Potential dilutive options and RSUs excluded from computation of net income (loss) per share | 1,790,000 | 1,782,000 | 1,555,000 | 1,890,000 |