Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 04, 2021 | May 12, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Apr. 4, 2021 | |
Entity Registrant Name | Utz Brands, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-38686 | |
Entity Tax Identification Number | 85-2751850 | |
Entity Address, Address Line One | 900 High Street | |
Entity Address, City or Town | Hanover | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 17331 | |
City Area Code | 717 | |
Local Phone Number | 637-6644 | |
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | UTZ | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001739566 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-26 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 76,516,051 | |
Class V Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 60,349,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 04, 2021 | Jan. 03, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 4,020 | $ 46,831 |
Accounts receivable, less allowance of $739 and $239, respectively | 130,599 | 118,305 |
Inventories | 67,584 | 59,810 |
Prepaid expenses and other assets | 12,276 | 11,573 |
Current portion of notes receivable | 5,918 | 7,666 |
Total current assets | 220,397 | 244,185 |
Non-current Assets | ||
Property, plant and equipment, net | 262,999 | 270,416 |
Goodwill | 880,063 | 862,183 |
Intangible assets, net | 1,167,268 | 1,171,709 |
Non-current portion of notes receivable | 22,348 | 20,000 |
Other assets | 14,160 | 15,671 |
Total non-current assets | 2,346,838 | 2,339,979 |
Total assets | 2,567,235 | 2,584,164 |
Current Liabilities | ||
Current portion of term debt | 7,500 | 469 |
Current portion of other notes payable | 8,142 | 9,018 |
Accounts payable | 64,214 | 57,254 |
Accrued expenses and other | 49,585 | 80,788 |
Current warrant liability | 0 | 52,580 |
Total current liabilities | 129,441 | 200,109 |
Non-current portion of term debt and revolving credit facility | 718,443 | 778,000 |
Non-current portion of other notes payable | 25,418 | 24,564 |
Non-current accrued expenses and other | 37,483 | 37,771 |
Deferred tax liability | 74,847 | 73,786 |
Non-current warrant liability | 104,400 | 85,032 |
Total non-current liabilities | 960,591 | 999,153 |
Total liabilities | 1,090,032 | 1,199,262 |
Commitments and Contingencies | ||
Equity | ||
Additional paid-in capital | 941,003 | 793,461 |
Accumulated deficit | (264,019) | (241,490) |
Accumulated other comprehensive income | 1,746 | 924 |
Total stockholders' equity | 678,743 | 552,908 |
Noncontrolling interest | 798,460 | 831,994 |
Total equity | 1,477,203 | 1,384,902 |
Total liabilities and equity | 2,567,235 | 2,584,164 |
Class A Common Stock | ||
Equity | ||
Common stock | 7 | 7 |
Class V Common Stock | ||
Equity | ||
Common stock | $ 6 | $ 6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 04, 2021 | Jan. 03, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, less allowance | $ 739 | $ 239 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock issued (in shares) | 76,481,833 | 71,094,714 |
Common stock outstanding (in shares) | 76,481,833 | 71,094,714 |
Class V Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 61,249,000 | 61,249,000 |
Common stock issued (in shares) | 60,349,000 | 60,349,000 |
Common stock outstanding (in shares) | 60,349,000 | 60,349,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 269,182 | $ 228,029 |
Cost of goods sold | 173,941 | 148,015 |
Gross profit | 95,241 | 80,014 |
Selling, general and administrative expenses | ||
Selling | 56,728 | 48,333 |
General and administrative | 29,933 | 19,940 |
Total selling, general and administrative expenses | 86,661 | 68,273 |
Gain on sale of assets | ||
Gain on disposal of property, plant and equipment | 297 | 68 |
Gain on sale of routes, net | 422 | 404 |
Total gain on sale of assets | 719 | 472 |
Income from operations | 9,299 | 12,213 |
Other (expense) income | ||
Interest expense | (10,861) | (9,643) |
Other income | 718 | 580 |
Loss on remeasurement of warrant liability | (21,501) | 0 |
Other (expense) income, net | (31,644) | (9,063) |
(Loss) income before taxes | (22,345) | 3,150 |
Income tax expense | 1,004 | 1,458 |
Net (loss) income | (23,349) | 1,692 |
Net loss attributable to noncontrolling interest | 820 | 0 |
Net (loss) income attributable to controlling interest | $ (22,529) | 1,692 |
Earnings per Class A Common stock: (in dollars) | ||
Basic (in dollars per share) | $ (0.30) | |
Diluted (in dollars per share) | $ (0.30) | |
Weighted-average shares of Class A Common stock outstanding | ||
Basic (in shares) | 75,927,005 | |
Diluted (in shares) | 75,927,005 | |
Other comprehensive loss | ||
Interest rate swap | $ 822 | (7,208) |
Comprehensive loss | $ (21,707) | $ (5,516) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Parent | Common StockClass A Common Stock | Common StockClass V Common Stock | Additional Paid-in Capital | Accumulated (Deficit) | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest |
Beginning balance at Dec. 29, 2019 | $ (33,352) | $ (27,446) | $ 1,408 | $ (7,314) | ||||
Net (loss) income | 1,692 | 1,692 | ||||||
Other comprehensive income (loss) | (7,208) | (7,208) | ||||||
Merger of noncontrolling interest | (7,314) | 7,314 | ||||||
Distributions to members | (2,657) | (2,657) | ||||||
Ending balance at Mar. 29, 2020 | (41,525) | (35,725) | (5,800) | |||||
Beginning balance at Dec. 29, 2019 | $ (33,352) | (27,446) | 1,408 | (7,314) | ||||
Conversion of warrants (in shares) | 10,825,664 | |||||||
Ending balance (in shares) at Jan. 03, 2021 | 71,094,714 | 60,349,000 | ||||||
Ending balance at Jan. 03, 2021 | $ 1,384,902 | 552,908 | $ 7 | $ 6 | $ 793,461 | $ (241,490) | 924 | 831,994 |
Conversion of warrants (in shares) | 4,976,717 | |||||||
Conversion of warrants | 111,945 | 144,659 | 144,659 | (32,714) | ||||
Share-based compensation (in shares) | 410,402 | |||||||
Share-based compensation | 2,883 | 2,883 | 2,883 | |||||
Net (loss) income | (23,349) | (22,529) | (22,529) | (820) | ||||
Other comprehensive income (loss) | 822 | 822 | 822 | |||||
Ending balance (in shares) at Apr. 04, 2021 | 76,481,833 | 60,349,000 | ||||||
Ending balance at Apr. 04, 2021 | $ 1,477,203 | $ 678,743 | $ 7 | $ 6 | $ 941,003 | $ (264,019) | $ 1,746 | $ 798,460 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Cash flows from operating activities | ||
Net (loss) income | $ (23,349) | $ 1,692 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation and amortization | 19,407 | 8,912 |
Loss on remeasurement of warrant liability | 21,501 | 0 |
Gain on disposal of property and equipment | (297) | (68) |
Gain on sale of routes | (422) | (404) |
Stock based compensation | 2,883 | 0 |
Deferred taxes | 1,061 | 975 |
Deferred financing costs | 2,870 | 653 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (11,176) | (15,374) |
Inventories | (7,040) | 2,676 |
Prepaid expenses and other assets | 866 | (618) |
Accounts payable and accrued expenses and other | (19,487) | (1,217) |
Net cash used in operating activities | (13,183) | (2,773) |
Cash flows from investing activities | ||
Acquisitions, net of cash acquired | (25,189) | (8,789) |
Purchases of property and equipment | (2,134) | (3,556) |
Purchases of intangibles | (1,200) | (650) |
Proceeds from sale of property and equipment | 391 | 152 |
Proceeds from sale of routes | 1,450 | 1,159 |
Proceeds from the sale of IO notes | 2,295 | 0 |
Notes receivable, net | (924) | (2,780) |
Net cash used in investing activities | (25,311) | (14,464) |
Cash flows from financing activities | ||
Line of credit borrowings, net | 15,000 | 10,000 |
Borrowings on term debt and notes payable | 720,000 | 2,650 |
Repayments on term debt and notes payable | (783,735) | (2,178) |
Payment of debt issuance cost | (8,372) | 0 |
Exercised warrants | 57,232 | 0 |
Dividends | (4,261) | 0 |
Distributions to members | 0 | (2,657) |
Distribution to noncontrolling interest | (181) | 0 |
Net cash (used in) provided by financing activities | (4,317) | 7,815 |
Net decrease in cash and cash equivalents | (42,811) | (9,422) |
Cash and cash equivalents at beginning of period | 46,831 | 15,053 |
Cash and cash equivalents at end of period | $ 4,020 | $ 5,631 |
OPERATIONS AND SUMMARY OF SIGNI
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Apr. 04, 2021 | |
Accounting Policies [Abstract] | |
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation – The accompanying consolidated financial statements comprise the financial statements of Utz Brands, Inc. ("UBI", the "Company", or "Successor", formerly Collier Creek Holdings ("CCH")) and its wholly owned subsidiaries. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial statements and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). They do not include all information and notes required by US GAAP for annual financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the Notes to Consolidated Financial Statements included in the Company’s financial statements, as amended for the year ended January 3, 2021. The balance sheet as of January 3, 2021 has been derived from the audited combined financial statements as of and for the year ended January 3, 2021. In the opinion of management, such financial information reflects all normal and recurring adjustments necessary for a fair presentation of the financial position and the results of operations for such interim periods in accordance with the US GAAP. Operating results for the interim period are not necessarily indicative of the results that may be expected for any future period or for the full year. The consolidated interim financial statements, including our significant accounting policies, should be read in conjunction with the audited combined financial statements, as amended and notes thereto for the year ended January 3, 2021. CCH was incorporated in the Cayman Islands on April 30, 2018 as a blank check company. CCH was incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses that the Company had not then identified. CCH’s sponsor was Collier Creek Partners LLC, a Delaware limited liability company (the "Sponsor"). On August 28, 2020, CCH domesticated into a Delaware corporation and changed its name to "Utz Brands, Inc." (the “Domestication”) and consummated the acquisition of certain limited liability company units of UBH, the parent of Utz Quality Foods, LLC (“UQF”), as a result of a new issuance by UBH and purchases from UBH’s existing equity holders pursuant to a Business Combination Agreement, dated as of June 5, 2020 (the “Business Combination Agreement”) among CCH, UBH and Series U of UM Partners, LLC (“Series U”) and Series R of UM Partners, LLC (“Series R” and together with Series U, the “Continuing Members”) (the Domestication and the transactions contemplated by the Business Combination Agreement, collectively, the “Business Combination”), following the approval at the extraordinary general meeting of the shareholders of CCH held on August 27, 2020. The Noncontrolling interest represents the common limited liability company units of UBH held by the Continuing Members. The financial statements include the accounts of the Predecessor, prior to the Business Combination, which was determined to be consolidated UBH, which includes the accounts of its wholly-owned subsidiary, Utz Quality Foods, LLC (“UQF”). UQF is consolidated with its wholly-owned subsidiaries: UTZTRAN, LLC; Heron Holding Corporation (“Heron”), with its wholly-owned subsidiaries Golden Flake Snack Foods, Inc. (“Golden Flake”), Inventure Foods, Inc. and its subsidiaries (“Inventure Foods”), and Kitchen Cooked Inc. (“Kitchen Cooked”); Kennedy Endeavors, LLC (“Kennedy”); and GH Pop Holdings, LLC, with its wholly-owned subsidiaries Good Health Natural Products, LLC (“Good Health”), Condor Snack Foods, LLC, and Snikiddy, LLC (“Snikiddy”). All intercompany transactions and balances have been eliminated in consolidation. Restatement of Previously Issued Condensed Consolidated Financial Statements – The notes included herein should be read in conjunction with the Company's restated audited consolidated financial statements included in the Company's Annual Report on Form 10-K/A filed with the SEC on May 13, 2021 (the "2020 Form 10-K/A"). As previously disclosed in our 2020 Form 10-K/A as filed on May 13, 2021, we restated the Company’s previously issued consolidated financial statements as of and for the fiscal year ended January 3, 2021, as well as the fiscal quarter ended September 27, 2020 to make the necessary accounting corrections related to warrant accounting. We have also restated related amounts within the accompanying footnotes to the condensed consolidated financial statements. Since the Warrants were not part of the Predecessor, and therefore no warrant liability or expense due to the remeasurement of the warrant liability is shown in such periods, we have not restated herein our condensed consolidated financial statements as of and for the fiscal quarter ended March 29, 2020. Emerging Growth Company – The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"), as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended (the "Sarbanes-Oxley Act"), reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is either not an emerging growth company or is an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accountant standards used. Operations – The Company through its wholly owned subsidiary UQF, is a premier producer, marketer and distributor of snack food products since 1921. The Company has steadily expanded its distribution channels to where it now sells products to supermarkets, mass merchants, club stores, dollar and discount stores, convenience stores, independent grocery stores, drug stores, food service, vending, military, and other channels in most regions of the United States through routes to market that include direct-store-delivery, direct to warehouse, and third-party distributors. The Company manufactures and distributes a full line of high-quality salty snack items, such as potato chips, tortilla chips, pretzels, cheese balls, pork skins, party mixes, and popcorn. The Company also sells dips, crackers, dried meat products and other snack food items packaged by other manufacturers. Cash and Cash Equivalents – The Company considers all highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents. The majority of the Company’s cash is held in financial institutions with insurance provided by the Federal Deposit Insurance Corporation (“FDIC”) of $250,000 per depositor. At various times, account balances may exceed federally insured limits. Accounts Receivables – Accounts receivable are reported at net realizable value. The net realizable value is based on management’s estimate of the amount of receivables that will be collected based on analysis of historical data and trends, as well as review of significant customer accounts. Accounts receivable are considered to be past due when payments are not received within the customer’s credit terms. Accounts are written off when management determines the account is uncollectible. Finance charges are not usually assessed on past-due accounts. Inventories – Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Inventory write-downs are recorded for shrinkage, damaged, stale and slow-moving items. Property, Plant and Equipmen t – Property, plant and equipment are stated at cost net of accumulated depreciation. Major additions and betterments are recorded to the asset accounts, while maintenance and repairs, which do not improve or extend the lives of the assets, are charged to expense accounts as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in operations in the disposal period. Depreciation is determined utilizing the straight-line method over the estimated useful lives of the various assets, which generally range from 2 to 20 years for machinery and equipment, 3 to 10 years for transportation equipment and 8 to 40 years for buildings. Assets held for sale are reported at the lower of the carrying amount or fair value less costs to sell. The Company assesses for impairment on property, plant and equipment upon the occurrence of a triggering event. Income Taxes – The Company accounts for income taxes pursuant to the asset and liability method of ASC 740, Income Taxes, which requires it to recognize current tax liabilities or receivables for the amount of taxes it estimates are payable or refundable for the current year, and deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts and their respective tax bases of assets and liabilities and the expected benefits of net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax 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 operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. The Company follows the provisions of ASC 740-10 related to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740-10 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The benefit of tax positions taken or expected to be taken in the Company’s income tax returns is recognized in the financial statements if such positions are more likely than not of being sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits”. A liability is recognized (or amount of net operating loss carryover or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740-10. Interest costs and related penalties related to unrecognized tax benefits are required to be calculated, if applicable. The Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as selling and administrative expenses. As of April 4, 2021 and January 3, 2021, no liability for unrecognized tax benefits was required to be reported. The Company does not expect any significant changes in its unrecognized tax benefits in the next fiscal year. Goodwill and Other Identifiable Intangible Assets – The Company allocates the cost of acquired companies to the identifiable tangible and intangible assets acquired and liabilities assumed, with the remaining amount classified as goodwill. The identification and valuation of these intangible assets and the determination of the estimated useful lives at the time of acquisition, as well as the completion of impairment tests, require significant management judgments and estimates. These estimates are made based on, among other factors, review of projected future operating results and business plans, economic projections, anticipated highest and best use of future cash flows and the cost of capital. The use of alternative estimates and assumptions could increase or decrease the estimated fair value of goodwill and other intangible assets, and potentially result in a different impact to the Company’s results of operations. Further, changes in business strategy and/or market conditions may significantly impact these judgments and thereby impact the fair value of these assets, which could result in an impairment of the goodwill or intangible assets. Finite-lived intangible assets consist of distribution/customer relationships, technology, certain master distribution rights and certain trademarks. These assets are being amortized over their estimated useful lives. Finite-lived intangible assets are tested for impairment only when management has determined that potential impairment indicators are present. Goodwill and other indefinite-lived intangible assets (including certain trade names, certain master distribution rights and company-owned sales routes) are not amortized but are tested for impairment at least annually and whenever events or circumstances change that indicate impairment may have occurred. The Company tests goodwill for impairment at the reporting unit level. The Company has identified the existing snack food operations as its sole reporting unit. As the Company has early adopted the FASB Accounting Standards Update (“ASU”) No. 2017-04, Intangibles - Goodwill and Other (“Topic 350”): Simplifying the Test for Goodwill Impairment, the Company is required to record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU No. 2017-04, Topic 350, also permits an entity to first assess qualitative factors to determine whether it is necessary to perform quantitative impairment tests for goodwill and indefinite-lived intangibles. If an entity believes, as a result of each qualitative assessment, it is more likely than not that the fair value of goodwill or an indefinite-lived intangible asset exceeds its carrying value then a quantitative impairment test is not required. For the latest qualitative analysis performed, which took place on the first day of the fourth quarter of 2020, we had taken into consideration all the events and circumstances listed in FASB ASC 350, Intangibles—Goodwill and Other, in addition to other entity-specific factors that had taken place from the period of the business combination, which assessed goodwill, on August 28, 2020. We have determined that there was no significant impact that affected the fair value of the reporting unit through April 4, 2021. Therefore, we have determined that it was not necessary to perform a quantitative goodwill impairment test for the reporting unit. Fair Value of Financial Instruments – Financial instruments held by the Company include cash and cash equivalents, accounts receivable, hedging instruments, purchase commitments on commodities, accounts payable and debt. The carrying value of all cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to their short-term nature. The carrying value of the debt is also estimated to approximate its fair value based upon current market conditions and interest rates. The fair value of the hedging instruments are revalued at each reporting period. Revenue Recognition – The Company’s revenues primarily consist of the sale of salty snack items to customers, including supermarkets, mass merchants, club stores, dollar and discount stores, convenience stores, independent grocery stores, drug stores, food service, vending, military, and other channels. The Company sells its products in most regions of the United States primarily through its DSD network, direct to warehouse shipments, and third-party distributors. These revenue contracts generally have a single performance obligation. Revenue, which includes shipping and handling charges billed to the customer, is reported net of variable consideration and consideration payable to customers, including applicable discounts, returns, allowances, trade promotion, consumer coupon redemption, unsaleable product, and other costs. Amounts billed and due from customers are classified as accounts receivables and require payment on a short-term basis and, therefore, the Company does not have any significant financing components. The Company recognizes revenue when (or as) performance obligations are satisfied by transferring control of the goods to customers. Control is transferred upon delivery of the goods to the customer. Shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs. Applicable shipping and handling are included in customer billing and are recorded as revenue as the products’ control is transferred to customers. The Company assesses the goods promised in customer purchase orders and identifies a performance obligation for each promise to transfer a good that is distinct. The Company offers various forms of trade promotions and the methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to provisions based on actual occurrence or performance. The Company’s promotional activities are conducted either through the retail trade or directly with consumers and include activities such as in store displays and events, feature price discounts, consumer coupons, and loyalty programs. The costs of these activities are recognized at the time the related revenue is recorded, which normally precedes the actual cash expenditure. The recognition of these costs therefore requires management judgment regarding the volume of promotional offers that will be redeemed by either the retail trade or consumer. These estimates are made using various techniques including historical data on performance of similar promotional programs. The Company has reserves in place of $26.0 million as of April 4, 2021 and $17.6 million as of January 3, 2021. Differences between estimated expense and actual redemptions are recognized as a change in management estimate as actual redemptions are incurred. Business Combinations – The Company evaluates acquisitions of assets and other similar transactions to assess whether or not the transaction should be accounted for as a business combination or asset acquisition by first applying a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen is met, the transaction is accounted for as an asset acquisition. If the screen is not met, further determination is required as to whether or not the Company has acquired inputs and processes that have the ability to create outputs which would meet the definition of a business. Significant judgment is required in the application of the screen test to determine whether an acquisition is a business combination or an acquisition of assets. The Company uses the acquisition method of accounting for acquired businesses. Under the acquisition method, the Company’s financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of the acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. Use of Estimates – Management uses estimates and assumptions in preparing the consolidated financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Some examples, but not a comprehensive list, include sales and promotional allowances, customer returns, allowances for doubtful accounts, inventory valuations, useful lives of fixed assets and related impairment, long-term investments, hedge transactions, goodwill and intangible asset valuations and impairments, incentive compensation, income taxes, self-insurance, contingencies, litigation, and inputs used to calculate deferred tax liabilities, tax valuation allowances, tax receivable agreements, and warrant liabilities related to the private placement warrants further described in Note 16 "Warrants". Actual results could vary materially from the estimates that were used. Recently Issued Accounting Standards – In December 2019, the FASB issued "ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" ("Topic 740"). This ASU is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. For non-public business entities or emerging growth companies, ASU 2019-12 is effective for annual periods beginning after December 15, 2021 and interim periods within those annual periods, with early adoption permitted. An entity that elects early adoption must adopt all the amendments in the same period. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (“Topic 842”), which requires a lessee to recognize in its balance sheet an asset and liability for most leases with a term greater than 12 months. Lessees should recognize a liability to make lease payments and a right-of-use asset representing the lessee’s right to use the underlying asset for the lease term. On June 3, 2020, the FASB deferred the effective date of ASC 842 for private or emerging growth companies to fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements, but believes that there will be assets and liabilities recognized on the Company’s consolidated balance sheet and an immaterial impact on the Company’s consolidated statements of operations. In June 2016, ASU No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments (“Topic 326”) was issued. This ASU requires entities to measure the impairment of certain financial instruments, including accounts receivables, based on expected losses rather than incurred losses. For non-public business entities or emerging growth companies, this ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted, and will be effective for the Company beginning in 2023. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (“Topic 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The amendments of this ASU should be applied on a prospective basis. The adoptions of ASU No. 2020-04 did not have a material impact to the Company. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Apr. 04, 2021 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Utz Brands Holdings, LLC On June 5, 2020, UBH entered into a definitive Business Combination Agreement with CCH and the Continuing Members. At the closing of the Business Combination (the "Closing") on August 28, 2020 (the "Closing Date"), the Company domesticated into a Delaware corporation and changed its name to "Utz Brands, Inc." At the Closing, the Company (i) acquired certain common and preferred interests of the Continuing Members from third party members (“UPA Seller”), and the Continuing Members then redeemed such common and preferred interests for, and the Company received, an equivalent value of common limited liability company units of UBH, (ii) contributed cash in exchange for additional common limited liability company units of UBH, and (iii) purchased additional common limited liability company units and 100% of the managing interests of UBH from the Continuing Members. As part of the Business Combination, the Continuing Members (a) received certain cash considerations for the common limited liability company units that they sold to the Company, (b) received such number of shares of newly issued non-economic Class V Common Stock in the Company equal to the common limited liability company units that the Continuing Members retained in UBH, and a unit of limited liability company units of UBH and a share of Class V Common Stock are exchangeable for one share of Class A Common Stock of the Company, (c) were entitled to receive certain restricted common limited liability company units in UBH (the "Retained Restricted Units") that would be vested under certain market conditions, which vested as of the Closing, and (d) entered into a Tax Receivable Agreement (“TRA”) that requires the Company to pay to the Continuing Members 85% of the applicable cash savings, if any, in U.S. federal and state income tax determined based on certain attributes as defined in the TRA. In connection with the Closing, UBH and the Company converted all of the outstanding phantom unit awards issued under the Utz Quality Foods, LLC 2018 Long-Term Incentive Plan ("2018 LTIP") into restricted stock units (“2020 LTIP RSUs”) issued by the Company under the Utz Quality Foods, LLC 2020 Long-Term Incentive Plan (the "2020 LTIP"). Further discussion of the purchase consideration of the Business Combination is disclosed later in this footnote. The Company was determined to be the accounting acquirer and UBH was determined to be the accounting acquiree, in accordance with ASC 810, as the Company is considered to be the primary beneficiary of UBH after the Business Combination. In accordance with the ASC 805, Business Combinations, acquisition method of accounting, the purchase price allocation of assets acquired and liabilities assumed of UBH are presented based on their estimated fair values as of the Closing. ASC 805 establishes a measurement period to provide the Company with a reasonable amount of time to obtain the information necessary to identify and measure various items in a business combination and cannot extend beyond one year from the acquisition date. As a result of the Business Combination, the Company’s financial statement presentation distinguishes UBH as the “Predecessor” through the Closing Date. The Company, which includes consolidation of UBH subsequent to the Business Combination, is the “Successor” for periods after the Closing Date. As a result of the application of the acquisition method of accounting in the Successor period, the financial statements for the Successor period are presented on a full step-up basis as a result of the Business Combination, and are therefore not comparable to the financial statements of the Predecessor period that are not presented on the same full step-up basis due to the Business Combination. The following table summarizes the provisional total business enterprise value, comprised of the fair value of certain purchase consideration paid by the Company to the Continuing Members, the fair value of the noncontrolling interest and the fair value of certain net debt assumed by the Company at Closing: (in thousands) Total cash consideration $ 199,161 Tax Receivable Agreement obligations to the Continuing Members (1) 28,690 Replaced Awards (2) 11,175 Continuing Members’ Retained Restricted Units in UBH (3) 54,067 Total purchase consideration 293,093 Noncontrolling interest (4) 896,701 Net debt assumed 648,150 Total business enterprise value $ 1,837,944 (1) Under the terms of the TRA, the Company generally will be required to pay to the Continuing Members 85% of the applicable cash savings, if any, in U.S. federal and state income tax based on its ownership in UBH that the Company is deemed to realize in certain circumstances as a result of the increases in tax basis and certain tax attributes resulting from the Business Combination. The fair value of these contingent payments at the Closing was $28.7 million which has been recorded as a non-current accrued expense. Refer to Note 14. "Income Taxes" for additional information on the TRA. (2) Represents the fair value of the Phantom Units associated with the pre-combination requisite service period and issued under the 2018 LTIP that were converted into 2020 LTIP RSUs of the Company issued under the 2020 LTIP at the Closing. The difference between the fair value of the Phantom Units and the fair values of the 2020 LTIP RSUs represents the fair value of the compensation expenses for the post-combination requisite service period for the replacement awards. Compensation expenses will be recorded evenly during the post-combination requisite service period through the end of fiscal 2021, which is the cliff vest date of the replacement awards. (3) A total of 3,483,022 common limited liability company units that were initially subject to certain restrictions (the "Retained Restricted Units") in UBH were received by the Continuing Members at the Closing. These Retained Restricted Units were vested and converted to common limited liability company units of UBH at the Closing, as the vesting conditions were all met as of the Closing. The fair value of the Retained Restricted Units was calculated based on the stock price of the Company at the August 28, 2020 Closing, less a 5% lack of marketability discount due to a restriction on the exchange of the Continuing Members’ common limited liability company units to Class A Common Stock of the Company for a period not to exceed 12 months from the Closing. (4) The noncontrolling interest represents the common limited liability company units of UBH held by the Continuing Members. The fair value of these units was determined based on the Class A Common Stock price of the Company at the August 28, 2020 Closing, less a 5% lack of marketability discount due to a restriction on the exchange of the Continuing Members’ common limited liability company units to Class A Common Stock of the Company for a period not to exceed 12 months from the Closing. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed of UBH at Closing: (in thousands) Assets acquired: Cash and cash equivalents $ 13,713 Accounts receivable, net 119,339 Inventory, net 63,862 Prepaid expenses and other assets 6,116 Notes receivable 29,453 Property, plant and equipment, net 269,951 Identifiable intangible assets (1) 871,150 Other assets 7,086 Total assets acquired: 1,380,670 Liabilities assumed: Accounts payable 49,531 Accrued expenses 78,223 Notes payable 34,547 Deferred tax liability 25,381 Total liabilities assumed: 187,682 Net identifiable assets acquired 1,192,988 Goodwill (2) $ 644,956 (1) The Company has determined that certain of the acquired trade names included in Intangible assets, net will be amortized over a period of 15 years, and the customer relationships asset will be amortized over a period of 25 years on a straight-line basis commensurate with the acquisition date expectations for the economic value (i.e. net cash flow generating capability) that is to be provided by the trade names and customer relationships, respectively. The provisional fair values allocated to identifiable intangible assets and their estimated useful lives are as follows: Fair Value Useful Life (In Thousands) (In Years) Indefinite lived trade names $ 355,500 Indefinite Finite lived trade names 56,000 15 Customer relationships 443,500 25 Technology 43 5 Master distribution rights 2,221 15 Company owned routes 13,886 Indefinite Total $ 871,150 (2) The goodwill of $645.0 million represents the excess of the gross consideration transferred over the fair value of the underlying net tangible and identifiable intangible assets acquired. Qualitative factors that contribute to the recognition of goodwill include certain intangible assets that are not recognized as separate identifiable intangible assets apart from goodwill. Intangible assets not recognized apart from goodwill consist primarily of the strong market position and the assembled workforce of UBH. A portion of the goodwill recognized is expected to be deductible for income tax purposes. As of April, 4, 2021, the purchase price allocation has not been finalized. H.K. Anderson On November 2, 2020, the Company, through its subsidiary, UQF, acquired certain assets of the H.K. Anderson business ("HKA Acquisition"), a leading brand of peanut butter-filled pretzels, from subsidiaries of Conagra Brands, Inc. for approximately $8.0 million. The acquisition, which includes certain intangible assets, is intended to broaden the Company's product offering to include peanut butter filled pretzels. The provisional fair values to which the purchase price was allocated were $1.8 million to trademarks, $2.7 million to customer relationships, and $3.5 million to goodwill. The trademarks and customer relationships are being amortized over a period of 15 years. As of April 4, 2021, the purchase price allocation has not been finalized. We expect to finalize the valuation report and complete the purchase price allocation no later than one-year from the acquisition date. Truco Holdco Inc. Acquisition and OTB Brand Purchase On November 11, 2020, the Company caused its subsidiaries, UQF and Heron, to enter into a Stock Purchase Agreement among UQF, Heron, Truco Holdco Inc. (“Truco”) and Truco Holdings LLC ("Truco Seller"). On December 14, 2020, pursuant to the Stock Purchase Agreement, the Company caused its subsidiary, Heron, to purchase and acquire from Truco Holdings LLC all of the issued and outstanding shares of common stock of Truco (the "Truco Acquisition"). Upon completion of the Truco Acquisition, Truco became a wholly owned subsidiary of Heron. At the closing of the Truco Acquisition, the Company paid the aggregate cash purchase price of approximately $404.0 million to Truco Holdings LLC, including payments of approximately $3.0 million for cash on hand at Truco at the closing of the Truco Acquisition, less estimated working capital adjustments, subject to customary post-closing adjustments. In addition, on December 14, 2020, UQF purchased and acquired from OTB Acquisition, LLC certain intellectual property ("OTB IP") assets (the "IP Purchase") pursuant to an Asset Purchase Agreement, dated November 11, 2020, among UQF, Truco Holdings LLC and OTB Acquisition LLC. The IP Purchase was determined to be an asset acquisition under the provisions of ASC Subtopic 805-50. The IP Purchase is accounted for separately from the Truco Acquisition, as Truco and the OTB IP were acquired from two different selling parties that were not under common control and the two acquisitions are separate transactions. The OTB IP was initially recognized and measured by the Company based on its purchase price of $79.0 million since it was acquired in an asset purchase and is treated as an indefinite lived intangible asset. For the Truco Acquisition, the Company was determined to be the accounting acquirer and Truco was determined to be the accounting acquiree, in accordance with ASC 805. In accordance with the ASC 805 acquisition method of accounting, the purchase price allocation of assets acquired and liabilities assumed of Truco are presented based on their estimated fair values as of the closing date of the acquisition. ASC 805 establishes a measurement period to provide the Company with a reasonable amount of time to obtain the information necessary to identify and measure various items in a business combination and cannot extend beyond one year from the acquisition date. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed by the Company at the date of the acquisition: (in thousands) Purchase consideration $ 403,963 Tax consideration (1) 4,468 Total consideration 408,431 Assets acquired: Cash 5,811 Accounts receivable 15,609 Inventory, net 2,629 Prepaid expenses and other assets 5,090 Property, plant and equipment 461 Other assets 1,219 Customer relationships (2) 225,000 Total assets acquired: 255,819 Liabilities assumed: Accounts payable 5,702 Accrued expenses 4,492 Other liabilities 26 Deferred tax liability 50,855 Total liabilities assumed: 61,075 Net identifiable assets acquired 194,744 Goodwill (3) $ 213,687 (1) The Stock Purchase Agreement provided that Truco Holdings LLC is entitled to receive any tax refunds received by the Company after the closing date for any pre-closing date tax period of Truco. The Company estimated an income tax refund receivable in the amount of $4.5 million related to the pre-acquisition tax periods, which was reflected on the Company's consolidated balance sheet as of January 3, 2021. The Company recorded a corresponding payable of $4.5 million to Truco Holdings LLC. (2) The identifiable intangible assets represent the existing customer relationships of Truco that were valued using a discounted cash flow model using projected sales growth, attrition and a useful life of 15 years. Truco’s provisional customer relationship fair value is $225.0 million. The Company has determined that all the acquired customer relationships will be amortized over a period of 15 years on a straight-line basis commensurate with the acquisition date expectations for the economics that are to be provided by the customer relationships. (3) The goodwill of $213.7 million represents the excess of the gross consideration transferred over the fair value of the underlying net tangible and identifiable intangible assets acquired and liabilities assumed. Qualitative factors that contribute to the recognition of goodwill include certain intangible assets that are not recognized as separate identifiable intangible assets apart from goodwill. Intangible assets not recognized apart from goodwill consist primarily of the strong market position and the assembled workforce of Truco. As of January 3, 2021, the purchase price allocation has not been finalized. We expect to finalize the valuation report and complete the purchase price allocation no later than one-year from the acquisition date. The Company incurred $5.6 million of transaction costs directly related to the acquisition. These transaction costs are recorded within administrative expenses within the consolidated statements of operations and comprehensive income (loss). Truco contributed revenues of $44.3 million and net income of $4.7 million in the consolidated statement of operations and comprehensive income (loss) for the for the first fiscal quarter of 2021. Vitner's On January 11, 2021, the Company announced that its subsidiary, UQF entered into a definitive agreement with Snak-King Corp. to acquire certain assets of the C.J. Vitner business ("Vitner's acquisition" or "acquisition of Vitner's"), a leading brand of salty snacks in the Chicago, IL area. The Company closed this transaction on February 8, 2021 and the purchase price of approximately $25 million was funded from current cash-on-hand. The provisional fair values to which the purchase price was allocated were $2.9 million to trademarks, $0.8 million to customer relationships, $1.7 million to DSD routes, and $17.8 million to goodwill. The trademarks and customer relationships are being amortized over a period of 15 years. As of April 4, 2021, the purchase price allocation has not been finalized. We expect to finalize the valuation report and complete the purchase price allocation no later than one-year from the acquisition date. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Apr. 04, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following: (in thousands) As of April 4, 2021 As of January 3, 2021 Finished goods $ 33,981 $ 28,935 Raw materials 27,544 25,129 Maintenance parts 6,059 5,746 Total inventories $ 67,584 $ 59,810 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 3 Months Ended |
Apr. 04, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net, consisted of the following: (in thousands) As of April 4, 2021 As of January 3, 2021 Land $ 22,674 $ 22,750 Buildings 83,996 83,780 Machinery and equipment 165,670 157,513 Land improvements 2,226 2,228 Building improvements 1,057 1,047 Construction-in-progress 9,685 15,518 285,308 282,836 Less: accumulated depreciation (22,309) (12,420) Property, plant and equipment, net $ 262,999 $ 270,416 Depreciation expense was $9.9 million and $7.0 million for the thirteen weeks ended April 4, 2021 (Successor), and the thirteen weeks ended March 29, 2020 (Predecessor), respectively. Depreciation expense is classified in cost of goods sold, selling expenses, and administrative expenses on the consolidated statements of operations and comprehensive income (loss). |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 3 Months Ended |
Apr. 04, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET A rollforward of goodwill is as follows: Successor (in thousands) Balance as of Balance as of January 3, 2021 $ 862,183 Acquisition of Vitner's 17,880 Balance as of April 4, 2021 $ 880,063 For the first fiscal quarter of 2021, the change to goodwill was attributable to the acquisition of Vitner's. Intangible assets, net, consisted of the following: (in thousands) As of April 4, 2021 As of January 3, 2021 Subject to amortization: Distributor/customer relationships $ 671,940 $ 671,150 Technology 43 43 Trade names 60,750 57,810 Master distribution rights 2,221 2,221 Amortizable assets, gross 734,954 731,224 Accumulated amortization (17,739) (8,268) Amortizable assets, net 717,215 722,956 Not subject to amortization: Trade names 434,513 434,513 Company owned routes 15,540 14,240 Intangible assets, net $ 1,167,268 $ 1,171,709 Amortizable trademark intangible assets increased by $2.9 million and distributor/customer relationships increased by $0.8 million during the first quarter of fiscal 2021 due to the acquisition of Vitner's. Company owned routes increased by $1.7 million related to routes acquired in the acquisition of Vitner's and $1.2 million related to the purchase of certain distribution rights in the Central Florida region from an existing third party distributor. There were no other changes to intangible assets during the thirteen weeks ended April 4, 2021 other than those which arise from the normal course of business of buying and selling of Company owned routes and amortization. |
NOTES RECEIVABLE
NOTES RECEIVABLE | 3 Months Ended |
Apr. 04, 2021 | |
Receivables [Abstract] | |
NOTES RECEIVABLE | NOTES RECEIVABLE The Company has undertaken a program in recent years to sell company-managed DSD distribution routes to IOs. Contracts are executed between the Company and the IO for the sale of the product distribution route, including a note in favor of the Company, in certain cases. The notes bear interest at rates ranging from 0.00% to 8.55% with terms ranging generally from one Other notes receivable totaled $0.4 million and $0.6 million as of April 4, 2021 and January 3, 2021, respectively. |
ACCRUED EXPENSES AND OTHER
ACCRUED EXPENSES AND OTHER | 3 Months Ended |
Apr. 04, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER | ACCRUED EXPENSES AND OTHER Accrued expenses and other consisted of the following: (in thousands) As of April 4, 2021 As of January 3, 2021 Accrued compensation and benefits $ 17,789 $ 36,968 Accrued freight and manufacturing related costs 7,013 6,972 Insurance liabilities 7,256 8,100 Short term interest rate hedge liability 3,009 3,048 Accrued interest 576 1,220 Accrued sales tax 1,300 1,300 Truco acquisition tax consideration 4,468 4,468 Accrued distributions — 4,261 Other accrued expenses 8,174 14,451 Total accrued expenses and other $ 49,585 $ 80,788 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Apr. 04, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Revolving Credit Facility On November 21, 2017, UBH entered into an asset based revolving credit facility (the “ABL facility”) in an initial aggregate principal amount of $100.0 million. The ABL facility was set to expire on the fifth anniversary of closing, or November 21, 2022. On April 1, 2020, the ABL facility was amended to increase the credit limit up to $116.0 million and to extend the maturity through August 22, 2024. On December 18, 2020 the ABL facility was amended to increase the credit limit up to $161.0 million and as of April 4, 2021, the outstanding balance of the ABL facility was $15.0 million. No amounts were outstanding under this facility as of January 3, 2021. Availability under the ABL facility is based on a monthly accounts receivable and inventory borrowing base certification, which is net of outstanding letters of credit. As of April 4, 2021 and January 3, 2021, $93.4 million and $106.4 million, respectively, was available for borrowing, net of letters of credit. The facility bears interest at an annual rate based on LIBOR plus an applicable margin of 1.50% (ranging from 1.50% to 2.00% based on availability) or the prime rate plus an applicable margin of 0.50% (ranging from 0.50% to 1.00%). Had the Company elected to use the Prime rate, the interest rate on the facility as of April 4, 2021 and March 29, 2020, would have been 3.75% and 3.75%, respectively. The Company elected to use the LIBOR rate, the interest rate on the ABL facility as of April 4, 2021 was 1.61%. The Company elected to use the LIBOR rate as of March 29, 2020 and the interest rate was 2.36%. The ABL facility is also subject to unused line fees (0.5% at April 4, 2021) and other fees and expenses. Standby letters of credit in the amount of $14.1 million have been issued as of April 4, 2021 and January 3, 2021. The standby letters of credit are primarily issued for insurance purposes. Term Loans On November 21, 2017, the Company entered into a First Lien Term Loan Credit Agreement (the “First Lien Term Loan”) in a principal amount of $535.0 million and a Second Lien Term Loan Credit Agreement (the “Second Lien Term Loan”, and collectively with the First Lien Term Loan, the “Term Loans”) in a principal amount of $125.0 million. The proceeds of the Term Loans were used to refinance the Company’s January 2017 credit facility and fund the acquisition of Inventure Foods and the repurchase of the predecessor membership units held by a minority investor. The First Lien Term Loan requires quarterly principal payments of $1.3 million beginning March 2018, with a balloon payment due for any remaining balance on the seventh anniversary of closing, or November 21, 2024. On August 28, 2020, as part of the Business Combination (as described in Note 1. " Operations and Summary of Significant Accounting Policies" and Note 2. "Acquisitions") an advance payment of principal was made on the First Lien Term Loan of $111.6 million. The First Lien Term Loan bears interest at an annual rate based on either LIBOR plus an applicable margin of 3.50%, or prime rate plus an applicable margin of 2.50%. The interest rate on the First Lien Term Loan as of March 29, 2020 was 5.10%. In connection with Amendment No. 2 to the Credit Agreement, dated November 21, 2017 with Bank of America, N.A., as further described within this note, the outstanding balance of $410 million was repaid in full the interest rate on this instrument was 3.64% at the time of payoff. The Company incurred closing and other costs associated with the Term Loans, which were allocated to each loan on a specific identification basis based on original principal amounts. Finance fees allocated to the First Lien Term Loan and the Second Lien Term Loan were $10.7 million and $4.1 million, respectively, which are presented net within “non-current portion of debt” on the consolidated balance sheets for the predecessor periods. Deferred fees are amortized ratably over the respective lives of each term loan. Deferred fees associated with the term loans under the January 2017 credit agreement were fully expensed during 2017 and deferred financing fees were derecognized as a result of the Business Combination as described in the Note 1. " Operations and Summary of Significant Accounting Policies" and Note 2. "Acquisitions". Separately, on October 21, 2019, the Company entered into a Senior Secured First Lien Floating Rate Note (the “Secured First Lien Note”) in a principal amount of $125.0 million. Proceeds from the Secured First Lien Note were used primarily to finance the Kennedy acquisition. The Secured First Lien Note requires quarterly interest payments, with a repayment of principal on the maturity date of November 21, 2024. The Secured First Lien Note bears interest at an annual rate based on 3 month LIBOR plus an applicable margin of 5.25%. On December 14, 2020, the Company entered into a Bridge Credit Agreement with a syndicate of banks, led by Bank of America, N.A. (the “Bridge Credit Agreement”). The proceeds of the Bridge Credit Agreement were used to fund the Company’s acquisition of Truco and the IP Purchase from OTB Acquisition, LLC, in which the Company withdrew $490.0 million to finance the Truco Acquisition and IP Purchase. The Bridge Credit Agreement bears interest at an annual rate based on 4.25% Base plus 1 month LIBOR with scheduled incremental increases to the base rate, as defined in the Bridge Credit Agreement. The loan converts into an Extended Term Loan if the Loan remains open 365 days after the closing date. As of January 3, 2021, the outstanding balance of the Bridge Credit Agreement was $370.0 million, with $120.0 million being repaid from the redemption of the Company's warrants. Commitment fees and deferred financing costs on the Bridge Credit Agreement totaled $7.2 million, of which $2.6 million remained on the books as of January 3, 2021. In connection with Amendment No. 2 to the Credit Agreement, and a $12.0 million repayment in the first quarter of 2021, the outstanding balance of $370.0 million was repaid in full. On January 20, 2021, the Company entered into Amendment No. 2 to the Credit Agreement ("Amendment No. 2") which provided additional operating flexibility and revisions to certain restrictive covenants. Pursuant to the terms of Amendment No. 2, the Company raised $720 million in aggregate principal of Term Loan B ("Term Loan B") which bears interest at LIBOR plus 3.00%, and extended the maturity of the Credit Agreement to January 20, 2028. The proceeds were used, together with cash on hand and proceeds from our exercised warrants, to redeem the outstanding principal amount of existing Term Loan B and Bridge Credit Agreement of $410 million and $358 million, respectively. The refinancing was accounted for as an extinguishment. The Company incurred debt issuance costs and original issuance discounts of $8.4 million. The interest rate on this instrument was 3.11% as of April 4, 2021. The First Lien Term Loan, the Secured First Lien Note, Term Loan B, and the ABL facility are collateralized by substantially all of the assets and liabilities of the Company. The credit agreements contain certain affirmative and negative covenants as to operations and the financial condition of the Company. The Company was in compliance with its financial covenant as of April 4, 2021. Other Notes Payable and Capital Leases During the first fiscal quarter of 2020, the Company closed on the acquisition of Kitchen Cooked and the acquisition included a deferred purchase price of $2.0 million, of which $1.0 million is still outstanding as of April 4, 2021 and January 3, 2021. Additionally, during the first fiscal quarter of 2020, the Company purchased intellectual property that include a deferred purchase price of $0.5 million, of which $0.4 million and $0.5 million is outstanding as of April 4, 2021 and January 3, 2021, respectively. Amounts outstanding under notes payable consisted of the following: (in thousands) As of April 4, 2021 As of January 3, 2021 Note payable – IO notes $ 23,567 $ 23,106 Capital lease 8,448 8,967 Other 1,545 1,509 Total notes payable 33,560 33,582 Less: current portion (8,142) (9,018) Long term portion of notes payable $ 25,418 $ 24,564 During fiscal 2019, the Company sold $33.2 million of notes receivable from IOs on its books for $34.1 million in a series of transactions to a financial institution. During the first quarter of fiscal 2021, the Company sold an additional $2.3 million of notes receivable from IOs on its books for $2.5 million to a financial institution. Due to the structure of the transactions, the sale did not qualify for sale accounting treatment and the Company has recorded the notes payable obligation owed by the IOs to the financial institution on its books; the corresponding notes receivable also remained on the Company’s books. The Company services the loans for the financial institution by collecting principal and interest from the IOs and passing it through to the institution. The underlying notes have various maturity dates through December 2028. The Company partially guarantees the outstanding loans, as discussed in further detail within Note 11. "Contingencies". These loans are collateralized by the routes for which the loans are made. Accordingly, the Company has the ability to recover substantially all of the outstanding loan value upon default. Interest expense for the thirteen weeks ended April 4, 2021 (Successor) was $10.9 million, $7.6 million of which was related to the Company’s credit facility and other long-term debt, of which $2.9 million was related to amortization of deferred financing fees, and $0.4 million of which was related to IO loans. Interest expense for the thirteen weeks ended March 29, 2020 (Predecessor) was $9.6 million, $8.3 million of which was related to the Company’s credit facility and other long-term debt, $0.7 million of which was related to amortization of deferred financing fees, and $0.6 million of which was related to IO loans. The interest expense on IO loans is a pass-through expense that has an offsetting interest income within Other (expense) income. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND PURCHASE COMMITMENTS | 3 Months Ended |
Apr. 04, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND PURCHASE COMMITMENTS | DERIVATIVE FINANCIAL INSTRUMENTS AND PURCHASE COMMITMENTS Derivative Financial Instruments To reduce the effect of interest rate fluctuations, the Company entered into an interest rate swap contract on September 6, 2019, with an effective date of September 30, 2019, with a counter party to make a series of payments based on a fixed interest rate of 1.339% and receive a series of payments based on the greater of LIBOR or 0.00%. Both the fixed and floating payment streams are based on a notional amount of $250 million. The Company entered into this transaction to reduce its exposure to changes in cash flows associated with its variable rate debt and has designated this derivative as a cash flow hedge. At April 4, 2021, the effective fixed interest rate on the long-term debt hedged by this contract was 3.47%. For further treatment of the Company’s interest rate swap, refer to Note 10. "Fair Value Measurements" and Note 12. "Accumulated Other Comprehensive Income (Loss)." Warrant Liabilities The Company has outstanding warrants which are accounted for as derivative liabilities pursuant to ASC 815-40. See Note 16. "Warrants" for additional information on our warrant liabilities. A reconciliation of the changes in the warrant liability during the thirteen weeks ended April 4, 2021 (Successor) is as follows: (in thousands) Fair value of warrant liabilities as of January 3, 2021 $ 137,612 Loss on remeasurement of warrant liability 21,501 Reclassification of warrant liability to equity for exercised or cancelled warrants (54,713) Fair value of warrant liabilities as of April 4, 2021 $ 104,400 Purchase Commitments Additionally, the Company has outstanding purchase commitments for specific quantities at fixed prices for certain key ingredients to economically hedge commodity input prices. These purchase commitments totaled $81.2 million as of April 4, 2021. The Company has recorded purchase commitment losses totaling $0.0 million and $0.3 million for the thirteen weeks ended April 4, 2021 (Successor), and the thirteen weeks ended March 29, 2020 (Predecessor), respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Apr. 04, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company follows the guidance relating to fair value measurements and disclosures with respect to financial assets and liabilities that are re-measured and reported at fair value each reporting period, and with respect to non-financial assets and liabilities that are not required to be measured at fair value on a recurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I) and the lowest priority to unobservable pricing inputs (Level III). A financial asset or liability’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are described below: Level I - Valuations are based on unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities; Level II - Valuations are based on quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active. Financial asset or liabilities which are included in this category are securities where all significant inputs are observable, either directly or indirectly; and Level III - Prices or valuations that are unobservable and where there is little, if any, market activity for these financial assets or liabilities. The inputs into the determination of fair value inputs for these investments require significant management judgment or estimation. The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors. To the extent that valuation is based on inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. The fair values of the Company’s Level 2 derivative instruments were determined using valuation models that use market observable inputs including interest rate curves and both forward and spot prices for commodities. Derivative assets and liabilities included in Level 2 primarily represent commodity and interest rate swap contracts. The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of April 4, 2021: (in thousands) Level I Level II Level III Total Assets: Cash and cash equivalents $ 4,020 $ — $ — $ 4,020 Total assets $ 4,020 $ — $ — $ 4,020 Liabilities Commodity contracts $ — $ 220 $ — $ 220 Interest rate swaps — 4,351 — 4,351 Private placement warrants — 104,400 — 104,400 Debt — 725,943 — 725,943 Total liabilities $ — $ 834,914 $ — $ 834,914 The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of January 3, 2021 (as restated): (in thousands) Level I Level II Level III Total Assets: Cash and cash equivalents $ 46,831 $ — $ — $ 46,831 Total assets $ 46,831 $ — $ — $ 46,831 Liabilities Commodity contracts $ — $ 248 $ — $ 248 Interest rate swaps — 5,163 — 5,163 Public warrants 52,580 — — 52,580 Private placement warrants — 85,032 — 85,032 Debt — 778,469 — 778,469 Total liabilities $ 52,580 $ 868,912 $ — $ 921,492 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Apr. 04, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Litigation Matters The Company is involved in litigation and other matters incidental to the conduct of its business, the results of which, in the opinion of management, are not likely to be material to the Company’s financial condition, results of operations or cash flows. Tax Matters The Company received an assessment from the Commonwealth of Pennsylvania pursuant to a sales and use tax audit for the period from January 1, 2014 through December 31, 2016. As of April 4, 2021 and January 3, 2021, the Company had a reserve of $1.3 million, to cover the assessment. Guarantees The Company partially guarantees loans made to IOs by Cadence Bank for the purchase of routes. The outstanding balance of loans guaranteed was $3.3 million and $4.1 million at April 4, 2021 and January 3, 2021, respectively, all of which was recorded by the Company as an off balance sheet arrangement. The maximum amount of future payments the Company could be required to make under the guarantees equates to 25% of the outstanding loan balance up to $2.0 million. These loans are collateralized by the routes for which the loans are made. Accordingly, the Company has the ability to recover substantially all of the outstanding loan value upon default. The Company partially guarantees loans made to IOs by Bank of America for the purchase of routes. The outstanding balance of loans guaranteed that were issued by Bank of America was $8.4 million and $7.1 million at April 4, 2021 and January 3, 2021, respectively, which are off balance sheet. As discussed in Note 8. "Long-Term Debt", the Company also sold notes receivable on its books to Bank of America during fiscal 2019 and fiscal 2021, which the Company partially guarantees. The outstanding balance of notes purchased by Bank of America at April 4, 2021 and January 3, 2021 was $17.4 million and $16.5 million, respectively. Due to the structure of the transactions, the sale did not qualify for sale accounting treatment, as such the Company records the notes payable obligation owed by the IOs to the financial institution on its Consolidated Balance Sheets; the corresponding note receivable also remained on the Company’s Consolidated Balance Sheets. The maximum amount of future payments the Company could be required to make under these guarantees equates to 25% of the outstanding loan balance on the first day of each calendar year plus 25% of the amount of any new loans issued during such calendar year. These loans are collateralized by the routes for which the loans are made. Accordingly, the Company has the ability to recover substantially all of the outstanding loan value upon default. The Company guarantees loans made to IOs by M&T Bank for the purchase of routes. The agreement with M&T Bank was amended in January 2020 so that the Company guaranteed up to 25% of the greater of the aggregate principal amount of loans outstanding on the payment date or January 1st of the subject year. The outstanding balance of loans guaranteed was $6.2 million and $6.6 million at April 4, 2021 and January 3, 2021, respectively, all of which was the Company's consolidated balance sheets. These loans are collateralized by the routes for which the loans are made. Accordingly, the Company has the ability to recover substantially all of the outstanding loan value upon default. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Apr. 04, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Total accumulated other comprehensive income (loss) was $1.7 million as of April 4, 2021 and $0.9 million as of January 3, 2021. Total accumulated other comprehensive income (loss) consists solely of unrealized gains (losses) from the Company’s derivative financial instruments accounted for as cash flow hedges. During the periods ended April 4, 2021 and March 29, 2020, changes to the balance in accumulated other comprehensive income (loss) were as follows: Successor (in thousands) Gain on Balance as of January 3, 2021 $ 924 Unrealized gain on cash flow hedges 822 Balance as of April 4, 2021 $ 1,746 Predecessor (in thousands) Loss on Balance as of December 29, 2019 $ 1,408 Unrealized loss on cash flow hedges (7,208) Balance as of March 29, 2020 $ (5,800) |
SUPPLEMENTARY CASH FLOW INFORMA
SUPPLEMENTARY CASH FLOW INFORMATION | 3 Months Ended |
Apr. 04, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTARY CASH FLOW INFORMATION | SUPPLEMENTARY CASH FLOW INFORMATIONCash paid for interest was $9.8 million and $9.5 million for the thirteen weeks ended April 4, 2021 (Successor), and the thirteen weeks ended March 29, 2020 (Predecessor), respectively. Refunds related to income related taxes were $0.2 million and $0.2 million for the thirteen weeks ended April 4, 2021 (Successor), and the thirteen weeks ended March 29, 2020 (Predecessor), respectively. Payments made for income-related taxes were $0.0 million and $0.0 million for the thirteen weeks ended April 4, 2021 (Successor), and the thirteen weeks ended March 29, 2020 (Predecessor), respectively. Dividends paid during the thirteen weeks ended April 4, 2021 (Successor) were $4.3 million and were included within the "accrued expense and other" of the Consolidated Balance Sheet as of January 3, 2021. There were no accrued dividend as of April 4, 2021. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Apr. 04, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company is subject to federal and state income taxes with respect to our allocable share of any taxable income or loss of UBH, as well as any standalone income or loss the Company generates. UBH is treated as a partnership for federal income tax purposes, and for most applicable state and local income tax purposes, and generally does not pay income taxes in most jurisdictions. Instead, UBH taxable income or loss is passed through to its members, including the Company. Despite its partnership treatment, UBH is liable for income taxes in those states not recognizing its pass-through status and for certain of its subsidiaries not taxed as pass-through entities. The Company has acquired various domestic entities taxed as corporations, which are now wholly-owned by us or our subsidiaries. Where required or allowed, these subsidiaries also file and pay tax as a consolidated group for federal and state income tax purposes. The Company anticipates this structure to remain in existence for the foreseeable future. The Company recorded income tax expense of $1.0 million and $1.5 million for the thirteen-week periods ended April 4, 2021 and March 29, 2020, respectively. The effective tax rates for the thirteen-week periods ended April 4, 2021 and March 29, 2020 were (4.5)% and 46.3%, respectively. The Company’s effective tax rates differ from the federal statutory rate of 21% primarily due to the impact of UBH, which is a partnership, is not taxed at the Company level, and is required to allocate some of its taxable results to the Continuing Members, as well as state taxes and the fair value impact of warrant liabilities. The Company’s effective tax rate for the thirteen-week period ended April 4, 2021 is 6.5% before consideration of any discrete items. During the thirteen-week period ended April 4, 2021, the effective tax rate was impacted by statutory state tax rate changes which resulted in a discrete tax expense of $1.1 million. The Company regularly evaluates valuation allowances established for deferred tax assets ("DTA's") for which future realization is uncertain. The Company assessed the available positive and negative evidence to estimate whether future taxable income would be generated to permit use of the existing DTA's. As of April 4, 2021, a significant piece of objective negative evidence evaluated was the twelve-quarter cumulative loss before taxes. Such objective evidence limits the ability to consider other subjective evidence, such as projections for future growth. The Company determined that there is uncertainty regarding the utilization of certain DTA's such as the investment in Utz Brands Holdings, LLC and state net operating losses where the Company does not expect to continue to have nexus. Therefore, a full valuation allowance has been recorded against the DTA's for which it is more-likely-than-not they will not be realized. The amount of DTA considered realizable; however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as projections for growth. As of April 4, 2021, tax years 2017 through 2021 remain open and subject to examination by the Internal Revenue Service and the majority of the states where the Company has nexus, and tax years 2016 through 2021 remain open and subject to examination in selected states that have a longer statute of limitations. Upon audit, tax authorities may challenge all or part of a tax position. A tax position successfully challenged by a taxing authority could result in an adjustment to our provision for income taxes in the period in which a final determination is made. The Company did not maintain any unrecognized tax benefits as of April 4, 2021 and January 3, 2021, respectively. Tax receivable agreement liability Pursuant to an election under section 754 of the Internal Revenue Code, the Company obtained an increase in its share of the tax basis in the net assets of UBH when it was deemed to purchase UBH units from the UPA Seller and purchased UBH units from the Continuing Members per the Business Combination. The Continuing Members have the option to exchange UBH units for UBI common stock post-Business Combination. The Company intends to treat any such exchanges as direct purchases for U.S. federal income tax purposes, which is expected to further increase its share of the tax basis in the net assets of UBH. The increases in tax basis may reduce the amounts the Company would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. Pursuant to the Business Combination Agreement, the Company entered into the TRA, which provides for the payment by the Company of 85% of the amount of any tax benefits realized as a result of (i) increases in the share of the tax basis in the net assets of UBH resulting from the Business Combination and any future exchanges by the Continuing Members of UBH units for UBI common stock; (ii) tax basis increases attributable to payments made under the TRA; and (iii) tax amortization deductions attributable to the acquisition of Kennedy and the election to treat the transaction as an asset deal for tax purposes (the "TRA Payments"). The rights of each party under the TRA other than the Company are assignable, subject to certain restrictions. The timing and amount of aggregate payments due under the TRA may vary based on a number of factors, including the timing and amount of taxable income generated by the Company each year, as well as the tax rate then applicable, among other factors. As of April 4, 2021 and January 3, 2021, the Company had a liability of $28.7 million related to its projected obligations under the TRA, which is reflected as a non-current accrued expense in the consolidated balance sheet. |
LEASES
LEASES | 3 Months Ended |
Apr. 04, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases certain vehicles, equipment and distribution centers under operating leases expiring in various years through 2031. Lease terms range from one month to twelve years. Capital leases, net, are included in Property, Plant and Equipment as follows: (in thousands) As of April 4, 2021 As of January 3, 2021 Leases $ 9,423 $ 9,335 Less: accumulated depreciation 1,113 526 Leases, net $ 8,310 $ 8,809 Charges resulting from the depreciation of assets held under capital leases are recognized within depreciation expense in the consolidated statements of operations and comprehensive income (loss). Rental expense for leases to third parties totaled was $2.6 million and $2.9 million for the thirteen weeks ended April 4, 2021 (Successor), and the thirteen weeks ended March 29, 2020 (Predecessor), respectively. Future minimum payments, to third parties, by year and in the aggregate, consisted of the following at April 4, 2021: (in thousands) 2021 Remaining $ 11,848 2022 10,750 2023 8,292 2024 5,761 2025 4,285 Thereafter 5,005 Total $ 45,941 |
WARRANTS
WARRANTS | 3 Months Ended |
Apr. 04, 2021 | |
Equity [Abstract] | |
WARRANTS | WARRANTS Prior to the Business Combination, CCH issued 15,833,332 warrants that were initially sold by CCH in its initial public offering of securities (the “Public Warrants”), including 1,166,666 warrants issued pursuant to those certain Forward Purchase Agreements entered into by CCH, the Sponsor, and the independent directors of CCH (the “Forward Purchase Agreements”) that were issued at the Closing of the Business Combination as part of the Forward Purchase Agreement discussed below (the “Forward Purchase Warrants”), and 7,200,000 warrants initially sold to the Sponsor simultaneously with the closing of its initial public offering (the “Private Placement Warrants,” collectively, with the Public Warrants and Forward Purchase Warrants, the “Warrants”). As a result of the Business Combination, the Company assumed the CCH warrants and such warrants are now exercisable for shares of UBI Class A Common Stock instead of Class A ordinary shares of CCH. All other features of the warrants remain unchanged. On December 14, 2020, the Company provided notice to the holders of the Public Warrants and Forward Purchase Warrants that their warrants would be redeemed in accordance with the original terms on January 14, 2021. As of April 4, 2021, all Public Warrants of 7,466,666 and Forward Purchase Warrants of 1,166,666 have been exercised. Prior to January 3, 2021, 10,825,664 Public Warrants and Forward Purchase Warrants were exercised. As of April 4, 2021, there were 7,200,000 Private Placement Warrants outstanding. As of January 3, 2021, there were 4,575,645 Public Warrants, 432,000 Forward Purchase Warrants, and 7,200,000 Private Placement Warrants outstanding. The Private Placement Warrants and the shares of Class A Common Stock issuable upon the exercise of the Private Placement Warrants were not transferable, assignable or salable until after the completion of the Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants are exercisable on a cashless basis, at the holder’s option, and are non-redeemable by the Company so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. We account for the Warrants as derivative liabilities in accordance with ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity (“ASC 815-40”), due to certain settlement provisions in the corresponding warrant agreement that do not meet the criteria to be classified in stockholders’ equity. Pursuant to ASC 815-40, the Warrants are now classified as a liability at fair value on the Company’s consolidated balance sheet, and the change in the fair value of such liability in each period is recognized as a non-cash gain or loss in the Company’s consolidated statements of operations and comprehensive income (loss). The Warrants are deemed equity instruments for income tax purposes, and accordingly, there is no tax accounting relating to changes in the fair value of the Warrants recognized. The remeasurement of the warrant liability resulted in a loss of $21.5 million for the thirteen weeks ended April 4, 2021 (Successor). The Predecessor did not have warrants and as such no remeasurement of warrant liability is recorded in the thirteen week period ended March 29, 2020 (Predecessor). Class A Common Stock The Company is authorized to issue 1,000,000,000 shares of Class A Common Stock, par value $0.0001 per share, of which 76,481,833 and 71,094,714 shares of UBI were issued and outstanding on April 4, 2021 and January 3, 2021, respectively. Upon the Closing of the Business Combination, all shares of CCH Class A ordinary shares, including 3,500,000 Forward Purchase Class A Ordinary Shares of CCH that were issued at the Closing of the Business Combination as part of the Forward Purchase Agreement discussed below, and Class B ordinary shares, less shareholder redemptions, were converted on a one-for-one basis into shares of Class A Common Stock, including 2,000,000 shares of Class B Common Stock initially issued to the Sponsor, which immediately vested upon the Closing of the Business Combination and converted into shares of Class A Common Stock of the Company. Class V Common Stock The Company is also authorized to issue 61,249,000 shares of Class V Common Stock, par value of $0.0001 all of which were issued to the Continuing Members in connection with the Closing of the Business Combination, as described in Note 2, “Acquisitions”. Each of the Continuing Members' common limited liability company units of UBH along with a share of Class V Common Stock may be exchanged for one share of Class A Common Stock of the Company upon certain restrictions being satisfied, as described in Note 2. “Acquisitions”. As of April 4, 2021 and January 3, 2021, there were 60,349,000 shares of Class V Common Stock outstanding. Forward Purchases In connection with the Closing of the Business Combination and pursuant to a Forward Purchase Agreement entered into between CCH, CCH’s Sponsor, and CCH’s independent directors, CCH consummated the sale and issuance of 3,500,000 shares issued pursuant to the Forward Purchase Agreements and Forward Purchase Warrants to acquire up to 1,166,666 Class A ordinary shares of CCH at $11.50 per share, for aggregate proceeds of $35,000,000 that were used to fund the Business Combination. |
BUSINESS RISK
BUSINESS RISK | 3 Months Ended |
Apr. 04, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
BUSINESS RISK | BUSINESS RISKThe novel coronavirus, or COVID-19, outbreak began to impact consumption, distribution and production of the Company’s products in March 2020. The Company is taking necessary preventive actions and implementing additional measures to protect its employees who are working on site. Generally, producers of food products, including salty snacks, have been deemed “essential industries” by federal, state, and local governments and are exempt from certain COVID-19-related restrictions on business operations. The Company continues to monitor customer and consumer demands, and intends to adapt its plans as needed to continue to meet these demands. The event is still ongoing, and the Company is in the process of evaluating the financial impact. |
EQUITY
EQUITY | 3 Months Ended |
Apr. 04, 2021 | |
Equity [Abstract] | |
EQUITY | WARRANTS Prior to the Business Combination, CCH issued 15,833,332 warrants that were initially sold by CCH in its initial public offering of securities (the “Public Warrants”), including 1,166,666 warrants issued pursuant to those certain Forward Purchase Agreements entered into by CCH, the Sponsor, and the independent directors of CCH (the “Forward Purchase Agreements”) that were issued at the Closing of the Business Combination as part of the Forward Purchase Agreement discussed below (the “Forward Purchase Warrants”), and 7,200,000 warrants initially sold to the Sponsor simultaneously with the closing of its initial public offering (the “Private Placement Warrants,” collectively, with the Public Warrants and Forward Purchase Warrants, the “Warrants”). As a result of the Business Combination, the Company assumed the CCH warrants and such warrants are now exercisable for shares of UBI Class A Common Stock instead of Class A ordinary shares of CCH. All other features of the warrants remain unchanged. On December 14, 2020, the Company provided notice to the holders of the Public Warrants and Forward Purchase Warrants that their warrants would be redeemed in accordance with the original terms on January 14, 2021. As of April 4, 2021, all Public Warrants of 7,466,666 and Forward Purchase Warrants of 1,166,666 have been exercised. Prior to January 3, 2021, 10,825,664 Public Warrants and Forward Purchase Warrants were exercised. As of April 4, 2021, there were 7,200,000 Private Placement Warrants outstanding. As of January 3, 2021, there were 4,575,645 Public Warrants, 432,000 Forward Purchase Warrants, and 7,200,000 Private Placement Warrants outstanding. The Private Placement Warrants and the shares of Class A Common Stock issuable upon the exercise of the Private Placement Warrants were not transferable, assignable or salable until after the completion of the Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants are exercisable on a cashless basis, at the holder’s option, and are non-redeemable by the Company so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. We account for the Warrants as derivative liabilities in accordance with ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity (“ASC 815-40”), due to certain settlement provisions in the corresponding warrant agreement that do not meet the criteria to be classified in stockholders’ equity. Pursuant to ASC 815-40, the Warrants are now classified as a liability at fair value on the Company’s consolidated balance sheet, and the change in the fair value of such liability in each period is recognized as a non-cash gain or loss in the Company’s consolidated statements of operations and comprehensive income (loss). The Warrants are deemed equity instruments for income tax purposes, and accordingly, there is no tax accounting relating to changes in the fair value of the Warrants recognized. The remeasurement of the warrant liability resulted in a loss of $21.5 million for the thirteen weeks ended April 4, 2021 (Successor). The Predecessor did not have warrants and as such no remeasurement of warrant liability is recorded in the thirteen week period ended March 29, 2020 (Predecessor). Class A Common Stock The Company is authorized to issue 1,000,000,000 shares of Class A Common Stock, par value $0.0001 per share, of which 76,481,833 and 71,094,714 shares of UBI were issued and outstanding on April 4, 2021 and January 3, 2021, respectively. Upon the Closing of the Business Combination, all shares of CCH Class A ordinary shares, including 3,500,000 Forward Purchase Class A Ordinary Shares of CCH that were issued at the Closing of the Business Combination as part of the Forward Purchase Agreement discussed below, and Class B ordinary shares, less shareholder redemptions, were converted on a one-for-one basis into shares of Class A Common Stock, including 2,000,000 shares of Class B Common Stock initially issued to the Sponsor, which immediately vested upon the Closing of the Business Combination and converted into shares of Class A Common Stock of the Company. Class V Common Stock The Company is also authorized to issue 61,249,000 shares of Class V Common Stock, par value of $0.0001 all of which were issued to the Continuing Members in connection with the Closing of the Business Combination, as described in Note 2, “Acquisitions”. Each of the Continuing Members' common limited liability company units of UBH along with a share of Class V Common Stock may be exchanged for one share of Class A Common Stock of the Company upon certain restrictions being satisfied, as described in Note 2. “Acquisitions”. As of April 4, 2021 and January 3, 2021, there were 60,349,000 shares of Class V Common Stock outstanding. Forward Purchases In connection with the Closing of the Business Combination and pursuant to a Forward Purchase Agreement entered into between CCH, CCH’s Sponsor, and CCH’s independent directors, CCH consummated the sale and issuance of 3,500,000 shares issued pursuant to the Forward Purchase Agreements and Forward Purchase Warrants to acquire up to 1,166,666 Class A ordinary shares of CCH at $11.50 per share, for aggregate proceeds of $35,000,000 that were used to fund the Business Combination. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Apr. 04, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is based on the weighted average number of shares of Class A Common Stock issued and outstanding during the Successor period. Diluted earnings per share is based on the weighted average number shares of Class A Common Stock issued and outstanding and the effect of all dilutive common stock equivalents and potentially dilutive share-based awards outstanding during the Successor period. Given the historical partnership equity structure of UBH, the Company determined that the calculation of earnings per membership unit results in values that are not a valuable metric to users of these consolidated financial statements. Therefore, EPS information is omitted for the Predecessor periods. The following table reconciles the numerators and denominators used in the computations of both basic and diluted earnings per share: Successor (in thousands, except share data) Thirteen weeks ended April 4, 2021 Basic and diluted earnings per share: Numerator: Net loss attributable to common stockholders $ (22,529) Denominator: Weighted average Class A Common Stock shares, basic 75,927,005 Basic and diluted earnings per share $ (0.30) Anti-dilutive securities excluded from diluted earnings per share calculation: Warrants 4,092,590 2020 LTIP RSUs 1,307,549 Initial Grant RSUs 57,742 PSUs 142,541 Stock options 93,211 Total 5,693,633 Class V Common Stock not subject to earnings per share calculation 60,349,000 Net loss attributable to noncontrolling interest $ (820) The diluted earnings per share computation excludes the effect of certain RSUs granted to Directors and Management which convert to Class A Common Stock upon vesting 50% at December 31, 2022 and 50% at December 31, 2023, as their inclusion would have been anti-dilutive. Shares of the Company’s Class V Common Stock do not participate in earnings or losses of the Company and, therefore, are not participating securities. Additionally, none of the share based compensation awards participated in earnings or losses of the Company the thirteen weeks ended April 4, 2021 (Successor). As such, basic and diluted earnings per share calculations under the two-class method were not required. At April 4 2021, the Continuing Members held 60,349,000 shares of Class V Common Stock issued and outstanding and also held an equal number of common limited liability company units of UBH, which comprise the noncontrolling interest. The net loss attributable to the noncontrolling interest was $0.8 million for the thirteen weeks ended April 4, 2021 (Successor). |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Apr. 04, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSOn April 8, 2021, our Board of Directors declared a cash dividend of $0.05 per share on our Class A Common Stock, to the stockholders of record on April 19, 2021. Payment of the dividend was executed on May 10, 2021. On May 11, 2021, the Company announced that it entered into a definitive agreement with Great Lakes Festida Holdings, Inc., to acquire all of the assets including real estate related to the operation of Festida Foods, a manufacturer of tortilla chips, corn chips, and pellet snacks, and the largest manufacturer of tortilla chips for the Company's ON THE BORDER® |
OPERATIONS AND SUMMARY OF SIG_2
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Apr. 04, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – The accompanying consolidated financial statements comprise the financial statements of Utz Brands, Inc. ("UBI", the "Company", or "Successor", formerly Collier Creek Holdings ("CCH")) and its wholly owned subsidiaries. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial statements and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). They do not include all information and notes required by US GAAP for annual financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the Notes to Consolidated Financial Statements included in the Company’s financial statements, as amended for the year ended January 3, 2021. The balance sheet as of January 3, 2021 has been derived from the audited combined financial statements as of and for the year ended January 3, 2021. In the opinion of management, such financial information reflects all normal and recurring adjustments necessary for a fair presentation of the financial position and the results of operations for such interim periods in accordance with the US GAAP. Operating results for the interim period are not necessarily indicative of the results that may be expected for any future period or for the full year. The consolidated interim financial statements, including our significant accounting policies, should be read in conjunction with the audited combined financial statements, as amended and notes thereto for the year ended January 3, 2021. CCH was incorporated in the Cayman Islands on April 30, 2018 as a blank check company. CCH was incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses that the Company had not then identified. CCH’s sponsor was Collier Creek Partners LLC, a Delaware limited liability company (the "Sponsor"). On August 28, 2020, CCH domesticated into a Delaware corporation and changed its name to "Utz Brands, Inc." (the “Domestication”) and consummated the acquisition of certain limited liability company units of UBH, the parent of Utz Quality Foods, LLC (“UQF”), as a result of a new issuance by UBH and purchases from UBH’s existing equity holders pursuant to a Business Combination Agreement, dated as of June 5, 2020 (the “Business Combination Agreement”) among CCH, UBH and Series U of UM Partners, LLC (“Series U”) and Series R of UM Partners, LLC (“Series R” and together with Series U, the “Continuing Members”) (the Domestication and the transactions contemplated by the Business Combination Agreement, collectively, the “Business Combination”), following the approval at the extraordinary general meeting of the shareholders of CCH held on August 27, 2020. The Noncontrolling interest represents the common limited liability company units of UBH held by the Continuing Members. |
Consolidation | The financial statements include the accounts of the Predecessor, prior to the Business Combination, which was determined to be consolidated UBH, which includes the accounts of its wholly-owned subsidiary, Utz Quality Foods, LLC (“UQF”). UQF is consolidated with its wholly-owned subsidiaries: UTZTRAN, LLC; Heron Holding Corporation (“Heron”), with its wholly-owned subsidiaries Golden Flake Snack Foods, Inc. (“Golden Flake”), Inventure Foods, Inc. and its subsidiaries (“Inventure Foods”), and Kitchen Cooked Inc. (“Kitchen Cooked”); Kennedy Endeavors, LLC (“Kennedy”); and GH Pop Holdings, LLC, with its wholly-owned subsidiaries Good Health Natural Products, LLC (“Good Health”), Condor Snack Foods, LLC, and Snikiddy, LLC (“Snikiddy”). |
Cash and Cash Equivalents | Cash and Cash Equivalents – The Company considers all highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents. The majority of the Company’s cash is held in financial institutions with insurance provided by the Federal Deposit Insurance Corporation (“FDIC”) of $250,000 per depositor. At various times, account balances may exceed federally insured limits. |
Accounts Receivable | Accounts Receivables – Accounts receivable are reported at net realizable value. The net realizable value is based on management’s estimate of the amount of receivables that will be collected based on analysis of historical data and trends, as well as review of significant customer accounts. Accounts receivable are considered to be past due when payments are not received within the customer’s credit terms. Accounts are written off when management determines the account is uncollectible. Finance charges are not usually assessed on past-due accounts. |
Inventories | Inventories – Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Inventory write-downs are recorded for shrinkage, damaged, stale and slow-moving items. |
Property, Plant and Equipment | Property, Plant and Equipmen t – Property, plant and equipment are stated at cost net of accumulated depreciation. Major additions and betterments are recorded to the asset accounts, while maintenance and repairs, which do not improve or extend the lives of the assets, are charged to expense accounts as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in operations in the disposal period. Depreciation is determined utilizing the straight-line method over the estimated useful lives of the various assets, which generally range from 2 to 20 years for machinery and equipment, 3 to 10 years for transportation equipment and 8 to 40 years for buildings. Assets held for sale are reported at the lower of the carrying amount or fair value less costs to sell. The Company assesses for impairment on property, plant and equipment upon the occurrence of a triggering event. |
Income Taxes | Income Taxes – The Company accounts for income taxes pursuant to the asset and liability method of ASC 740, Income Taxes, which requires it to recognize current tax liabilities or receivables for the amount of taxes it estimates are payable or refundable for the current year, and deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts and their respective tax bases of assets and liabilities and the expected benefits of net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax 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 operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. The Company follows the provisions of ASC 740-10 related to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740-10 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The benefit of tax positions taken or expected to be taken in the Company’s income tax returns is recognized in the financial statements if such positions are more likely than not of being sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits”. A liability is recognized (or amount of net operating loss carryover or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740-10. Interest costs and related penalties related to unrecognized tax benefits are required to be calculated, if applicable. The Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as selling and administrative expenses. As of April 4, 2021 and January 3, 2021, no liability for unrecognized tax benefits was required to be reported. The Company does not expect any significant changes in its unrecognized tax benefits in the next fiscal year. |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets – The Company allocates the cost of acquired companies to the identifiable tangible and intangible assets acquired and liabilities assumed, with the remaining amount classified as goodwill. The identification and valuation of these intangible assets and the determination of the estimated useful lives at the time of acquisition, as well as the completion of impairment tests, require significant management judgments and estimates. These estimates are made based on, among other factors, review of projected future operating results and business plans, economic projections, anticipated highest and best use of future cash flows and the cost of capital. The use of alternative estimates and assumptions could increase or decrease the estimated fair value of goodwill and other intangible assets, and potentially result in a different impact to the Company’s results of operations. Further, changes in business strategy and/or market conditions may significantly impact these judgments and thereby impact the fair value of these assets, which could result in an impairment of the goodwill or intangible assets. Finite-lived intangible assets consist of distribution/customer relationships, technology, certain master distribution rights and certain trademarks. These assets are being amortized over their estimated useful lives. Finite-lived intangible assets are tested for impairment only when management has determined that potential impairment indicators are present. Goodwill and other indefinite-lived intangible assets (including certain trade names, certain master distribution rights and company-owned sales routes) are not amortized but are tested for impairment at least annually and whenever events or circumstances change that indicate impairment may have occurred. The Company tests goodwill for impairment at the reporting unit level. The Company has identified the existing snack food operations as its sole reporting unit. As the Company has early adopted the FASB Accounting Standards Update (“ASU”) No. 2017-04, Intangibles - Goodwill and Other (“Topic 350”): Simplifying the Test for Goodwill Impairment, the Company is required to record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU No. 2017-04, Topic 350, also permits an entity to first assess qualitative factors to determine whether it is necessary to perform quantitative impairment tests for goodwill and indefinite-lived intangibles. If an entity believes, as a result of each qualitative assessment, it is more likely than not that the fair value of goodwill or an indefinite-lived intangible asset exceeds its carrying value then a quantitative impairment test is not required. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments – Financial instruments held by the Company include cash and cash equivalents, accounts receivable, hedging instruments, purchase commitments on commodities, accounts payable and debt. The carrying value of all cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to their short-term nature. The carrying value of the debt is also estimated to approximate its fair value based upon current market conditions and interest rates. The fair value of the hedging instruments are revalued at each reporting period. |
Revenue Recognition | Revenue Recognition – The Company’s revenues primarily consist of the sale of salty snack items to customers, including supermarkets, mass merchants, club stores, dollar and discount stores, convenience stores, independent grocery stores, drug stores, food service, vending, military, and other channels. The Company sells its products in most regions of the United States primarily through its DSD network, direct to warehouse shipments, and third-party distributors. These revenue contracts generally have a single performance obligation. Revenue, which includes shipping and handling charges billed to the customer, is reported net of variable consideration and consideration payable to customers, including applicable discounts, returns, allowances, trade promotion, consumer coupon redemption, unsaleable product, and other costs. Amounts billed and due from customers are classified as accounts receivables and require payment on a short-term basis and, therefore, the Company does not have any significant financing components. The Company recognizes revenue when (or as) performance obligations are satisfied by transferring control of the goods to customers. Control is transferred upon delivery of the goods to the customer. Shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs. Applicable shipping and handling are included in customer billing and are recorded as revenue as the products’ control is transferred to customers. The Company assesses the goods promised in customer purchase orders and identifies a performance obligation for each promise to transfer a good that is distinct. The Company offers various forms of trade promotions and the methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to provisions based on actual occurrence or performance. The Company’s promotional activities are conducted either through the retail trade or directly with consumers and include activities such as in store displays and events, feature price discounts, consumer coupons, and loyalty programs. The costs of these activities are recognized at the time the related revenue is recorded, which normally precedes the actual cash expenditure. The recognition of these costs therefore requires management judgment regarding the volume of promotional offers that will be redeemed by either the retail trade or consumer. These estimates are made using various techniques including historical data on performance of similar promotional programs. The Company has reserves in place of $26.0 million as of April 4, 2021 and $17.6 million as of January 3, 2021. Differences between estimated expense and actual redemptions are recognized as a change in management estimate as actual redemptions are incurred. |
Business Combinations | Business Combinations – The Company evaluates acquisitions of assets and other similar transactions to assess whether or not the transaction should be accounted for as a business combination or asset acquisition by first applying a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen is met, the transaction is accounted for as an asset acquisition. If the screen is not met, further determination is required as to whether or not the Company has acquired inputs and processes that have the ability to create outputs which would meet the definition of a business. Significant judgment is required in the application of the screen test to determine whether an acquisition is a business combination or an acquisition of assets. The Company uses the acquisition method of accounting for acquired businesses. Under the acquisition method, the Company’s financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of the acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. |
Use of Estimates | Use of Estimates – Management uses estimates and assumptions in preparing the consolidated financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Some examples, but not a comprehensive list, include sales and promotional allowances, customer returns, allowances for doubtful accounts, inventory valuations, useful lives of fixed assets and related impairment, long-term investments, hedge transactions, goodwill and intangible asset valuations and impairments, incentive compensation, income taxes, self-insurance, contingencies, litigation, and inputs used to calculate deferred tax liabilities, tax valuation allowances, tax receivable agreements, and warrant liabilities related to the private placement warrants further described in Note 16 "Warrants". Actual results could vary materially from the estimates that were used. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards – In December 2019, the FASB issued "ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" ("Topic 740"). This ASU is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. For non-public business entities or emerging growth companies, ASU 2019-12 is effective for annual periods beginning after December 15, 2021 and interim periods within those annual periods, with early adoption permitted. An entity that elects early adoption must adopt all the amendments in the same period. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (“Topic 842”), which requires a lessee to recognize in its balance sheet an asset and liability for most leases with a term greater than 12 months. Lessees should recognize a liability to make lease payments and a right-of-use asset representing the lessee’s right to use the underlying asset for the lease term. On June 3, 2020, the FASB deferred the effective date of ASC 842 for private or emerging growth companies to fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements, but believes that there will be assets and liabilities recognized on the Company’s consolidated balance sheet and an immaterial impact on the Company’s consolidated statements of operations. In June 2016, ASU No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments (“Topic 326”) was issued. This ASU requires entities to measure the impairment of certain financial instruments, including accounts receivables, based on expected losses rather than incurred losses. For non-public business entities or emerging growth companies, this ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted, and will be effective for the Company beginning in 2023. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (“Topic 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The amendments of this ASU should be applied on a prospective basis. The adoptions of ASU No. 2020-04 did not have a material impact to the Company. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Business Combinations [Abstract] | |
Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the provisional total business enterprise value, comprised of the fair value of certain purchase consideration paid by the Company to the Continuing Members, the fair value of the noncontrolling interest and the fair value of certain net debt assumed by the Company at Closing: (in thousands) Total cash consideration $ 199,161 Tax Receivable Agreement obligations to the Continuing Members (1) 28,690 Replaced Awards (2) 11,175 Continuing Members’ Retained Restricted Units in UBH (3) 54,067 Total purchase consideration 293,093 Noncontrolling interest (4) 896,701 Net debt assumed 648,150 Total business enterprise value $ 1,837,944 (1) Under the terms of the TRA, the Company generally will be required to pay to the Continuing Members 85% of the applicable cash savings, if any, in U.S. federal and state income tax based on its ownership in UBH that the Company is deemed to realize in certain circumstances as a result of the increases in tax basis and certain tax attributes resulting from the Business Combination. The fair value of these contingent payments at the Closing was $28.7 million which has been recorded as a non-current accrued expense. Refer to Note 14. "Income Taxes" for additional information on the TRA. (2) Represents the fair value of the Phantom Units associated with the pre-combination requisite service period and issued under the 2018 LTIP that were converted into 2020 LTIP RSUs of the Company issued under the 2020 LTIP at the Closing. The difference between the fair value of the Phantom Units and the fair values of the 2020 LTIP RSUs represents the fair value of the compensation expenses for the post-combination requisite service period for the replacement awards. Compensation expenses will be recorded evenly during the post-combination requisite service period through the end of fiscal 2021, which is the cliff vest date of the replacement awards. (3) A total of 3,483,022 common limited liability company units that were initially subject to certain restrictions (the "Retained Restricted Units") in UBH were received by the Continuing Members at the Closing. These Retained Restricted Units were vested and converted to common limited liability company units of UBH at the Closing, as the vesting conditions were all met as of the Closing. The fair value of the Retained Restricted Units was calculated based on the stock price of the Company at the August 28, 2020 Closing, less a 5% lack of marketability discount due to a restriction on the exchange of the Continuing Members’ common limited liability company units to Class A Common Stock of the Company for a period not to exceed 12 months from the Closing. (4) The noncontrolling interest represents the common limited liability company units of UBH held by the Continuing Members. The fair value of these units was determined based on the Class A Common Stock price of the Company at the August 28, 2020 Closing, less a 5% lack of marketability discount due to a restriction on the exchange of the Continuing Members’ common limited liability company units to Class A Common Stock of the Company for a period not to exceed 12 months from the Closing. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed of UBH at Closing: (in thousands) Assets acquired: Cash and cash equivalents $ 13,713 Accounts receivable, net 119,339 Inventory, net 63,862 Prepaid expenses and other assets 6,116 Notes receivable 29,453 Property, plant and equipment, net 269,951 Identifiable intangible assets (1) 871,150 Other assets 7,086 Total assets acquired: 1,380,670 Liabilities assumed: Accounts payable 49,531 Accrued expenses 78,223 Notes payable 34,547 Deferred tax liability 25,381 Total liabilities assumed: 187,682 Net identifiable assets acquired 1,192,988 Goodwill (2) $ 644,956 (1) The Company has determined that certain of the acquired trade names included in Intangible assets, net will be amortized over a period of 15 years, and the customer relationships asset will be amortized over a period of 25 years on a straight-line basis commensurate with the acquisition date expectations for the economic value (i.e. net cash flow generating capability) that is to be provided by the trade names and customer relationships, respectively. The provisional fair values allocated to identifiable intangible assets and their estimated useful lives are as follows: Fair Value Useful Life (In Thousands) (In Years) Indefinite lived trade names $ 355,500 Indefinite Finite lived trade names 56,000 15 Customer relationships 443,500 25 Technology 43 5 Master distribution rights 2,221 15 Company owned routes 13,886 Indefinite Total $ 871,150 (2) The goodwill of $645.0 million represents the excess of the gross consideration transferred over the fair value of the underlying net tangible and identifiable intangible assets acquired. Qualitative factors that contribute to the recognition of goodwill include certain intangible assets that are not recognized as separate identifiable intangible assets apart from goodwill. Intangible assets not recognized apart from goodwill consist primarily of the strong market position and the assembled workforce of UBH. A portion of the goodwill recognized is expected to be deductible for income tax purposes. As of April, 4, 2021, the purchase price allocation has not been finalized. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed by the Company at the date of the acquisition: (in thousands) Purchase consideration $ 403,963 Tax consideration (1) 4,468 Total consideration 408,431 Assets acquired: Cash 5,811 Accounts receivable 15,609 Inventory, net 2,629 Prepaid expenses and other assets 5,090 Property, plant and equipment 461 Other assets 1,219 Customer relationships (2) 225,000 Total assets acquired: 255,819 Liabilities assumed: Accounts payable 5,702 Accrued expenses 4,492 Other liabilities 26 Deferred tax liability 50,855 Total liabilities assumed: 61,075 Net identifiable assets acquired 194,744 Goodwill (3) $ 213,687 (1) The Stock Purchase Agreement provided that Truco Holdings LLC is entitled to receive any tax refunds received by the Company after the closing date for any pre-closing date tax period of Truco. The Company estimated an income tax refund receivable in the amount of $4.5 million related to the pre-acquisition tax periods, which was reflected on the Company's consolidated balance sheet as of January 3, 2021. The Company recorded a corresponding payable of $4.5 million to Truco Holdings LLC. (2) The identifiable intangible assets represent the existing customer relationships of Truco that were valued using a discounted cash flow model using projected sales growth, attrition and a useful life of 15 years. Truco’s provisional customer relationship fair value is $225.0 million. The Company has determined that all the acquired customer relationships will be amortized over a period of 15 years on a straight-line basis commensurate with the acquisition date expectations for the economics that are to be provided by the customer relationships. (3) The goodwill of $213.7 million represents the excess of the gross consideration transferred over the fair value of the underlying net tangible and identifiable intangible assets acquired and liabilities assumed. Qualitative factors that contribute to the recognition of goodwill include certain intangible assets that are not recognized as separate identifiable intangible assets apart from goodwill. Intangible assets not recognized apart from goodwill consist primarily of the strong market position and the assembled workforce of Truco. As of January 3, 2021, the purchase price allocation has not been finalized. We expect to finalize the valuation report and complete the purchase price allocation no later than one-year from the acquisition date. |
Provisional Fair Values Allocated to Identifiable Intangible Assets | The provisional fair values allocated to identifiable intangible assets and their estimated useful lives are as follows: Fair Value Useful Life (In Thousands) (In Years) Indefinite lived trade names $ 355,500 Indefinite Finite lived trade names 56,000 15 Customer relationships 443,500 25 Technology 43 5 Master distribution rights 2,221 15 Company owned routes 13,886 Indefinite Total $ 871,150 |
Pro Forma Information |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: (in thousands) As of April 4, 2021 As of January 3, 2021 Finished goods $ 33,981 $ 28,935 Raw materials 27,544 25,129 Maintenance parts 6,059 5,746 Total inventories $ 67,584 $ 59,810 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, plant and equipment, net, consisted of the following: (in thousands) As of April 4, 2021 As of January 3, 2021 Land $ 22,674 $ 22,750 Buildings 83,996 83,780 Machinery and equipment 165,670 157,513 Land improvements 2,226 2,228 Building improvements 1,057 1,047 Construction-in-progress 9,685 15,518 285,308 282,836 Less: accumulated depreciation (22,309) (12,420) Property, plant and equipment, net $ 262,999 $ 270,416 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | A rollforward of goodwill is as follows: Successor (in thousands) Balance as of Balance as of January 3, 2021 $ 862,183 Acquisition of Vitner's 17,880 Balance as of April 4, 2021 $ 880,063 For the first fiscal quarter of 2021, the change to goodwill was attributable to the acquisition of Vitner's. |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net, consisted of the following: (in thousands) As of April 4, 2021 As of January 3, 2021 Subject to amortization: Distributor/customer relationships $ 671,940 $ 671,150 Technology 43 43 Trade names 60,750 57,810 Master distribution rights 2,221 2,221 Amortizable assets, gross 734,954 731,224 Accumulated amortization (17,739) (8,268) Amortizable assets, net 717,215 722,956 Not subject to amortization: Trade names 434,513 434,513 Company owned routes 15,540 14,240 Intangible assets, net $ 1,167,268 $ 1,171,709 |
ACCRUED EXPENSES AND OTHER (Tab
ACCRUED EXPENSES AND OTHER (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other | Accrued expenses and other consisted of the following: (in thousands) As of April 4, 2021 As of January 3, 2021 Accrued compensation and benefits $ 17,789 $ 36,968 Accrued freight and manufacturing related costs 7,013 6,972 Insurance liabilities 7,256 8,100 Short term interest rate hedge liability 3,009 3,048 Accrued interest 576 1,220 Accrued sales tax 1,300 1,300 Truco acquisition tax consideration 4,468 4,468 Accrued distributions — 4,261 Other accrued expenses 8,174 14,451 Total accrued expenses and other $ 49,585 $ 80,788 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Debt Disclosure [Abstract] | |
Amounts Outstanding Under Notes Payable | Amounts outstanding under notes payable consisted of the following: (in thousands) As of April 4, 2021 As of January 3, 2021 Note payable – IO notes $ 23,567 $ 23,106 Capital lease 8,448 8,967 Other 1,545 1,509 Total notes payable 33,560 33,582 Less: current portion (8,142) (9,018) Long term portion of notes payable $ 25,418 $ 24,564 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND PURCHASE COMMITMENTS (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Reconciliation of the Changes in the Warrant Liability | A reconciliation of the changes in the warrant liability during the thirteen weeks ended April 4, 2021 (Successor) is as follows: (in thousands) Fair value of warrant liabilities as of January 3, 2021 $ 137,612 Loss on remeasurement of warrant liability 21,501 Reclassification of warrant liability to equity for exercised or cancelled warrants (54,713) Fair value of warrant liabilities as of April 4, 2021 $ 104,400 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of April 4, 2021: (in thousands) Level I Level II Level III Total Assets: Cash and cash equivalents $ 4,020 $ — $ — $ 4,020 Total assets $ 4,020 $ — $ — $ 4,020 Liabilities Commodity contracts $ — $ 220 $ — $ 220 Interest rate swaps — 4,351 — 4,351 Private placement warrants — 104,400 — 104,400 Debt — 725,943 — 725,943 Total liabilities $ — $ 834,914 $ — $ 834,914 The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of January 3, 2021 (as restated): (in thousands) Level I Level II Level III Total Assets: Cash and cash equivalents $ 46,831 $ — $ — $ 46,831 Total assets $ 46,831 $ — $ — $ 46,831 Liabilities Commodity contracts $ — $ 248 $ — $ 248 Interest rate swaps — 5,163 — 5,163 Public warrants 52,580 — — 52,580 Private placement warrants — 85,032 — 85,032 Debt — 778,469 — 778,469 Total liabilities $ 52,580 $ 868,912 $ — $ 921,492 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Equity [Abstract] | |
Schedule of Changes to the Balance in Accumulated Other Comprehensive (Loss) | During the periods ended April 4, 2021 and March 29, 2020, changes to the balance in accumulated other comprehensive income (loss) were as follows: Successor (in thousands) Gain on Balance as of January 3, 2021 $ 924 Unrealized gain on cash flow hedges 822 Balance as of April 4, 2021 $ 1,746 Predecessor (in thousands) Loss on Balance as of December 29, 2019 $ 1,408 Unrealized loss on cash flow hedges (7,208) Balance as of March 29, 2020 $ (5,800) |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Leases [Abstract] | |
Schedule of Capital Leases | Capital leases, net, are included in Property, Plant and Equipment as follows: (in thousands) As of April 4, 2021 As of January 3, 2021 Leases $ 9,423 $ 9,335 Less: accumulated depreciation 1,113 526 Leases, net $ 8,310 $ 8,809 |
Schedule of Future Minimum Payments | Future minimum payments, to third parties, by year and in the aggregate, consisted of the following at April 4, 2021: (in thousands) 2021 Remaining $ 11,848 2022 10,750 2023 8,292 2024 5,761 2025 4,285 Thereafter 5,005 Total $ 45,941 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles the numerators and denominators used in the computations of both basic and diluted earnings per share: Successor (in thousands, except share data) Thirteen weeks ended April 4, 2021 Basic and diluted earnings per share: Numerator: Net loss attributable to common stockholders $ (22,529) Denominator: Weighted average Class A Common Stock shares, basic 75,927,005 Basic and diluted earnings per share $ (0.30) Anti-dilutive securities excluded from diluted earnings per share calculation: Warrants 4,092,590 2020 LTIP RSUs 1,307,549 Initial Grant RSUs 57,742 PSUs 142,541 Stock options 93,211 Total 5,693,633 Class V Common Stock not subject to earnings per share calculation 60,349,000 Net loss attributable to noncontrolling interest $ (820) |
OPERATIONS AND SUMMARY OF SIG_3
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) | 3 Months Ended |
Apr. 04, 2021 | |
Minimum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 2 years |
Minimum | Transportation Equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Minimum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 8 years |
Maximum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Maximum | Transportation Equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Maximum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
OPERATIONS AND SUMMARY OF SIG_4
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) - USD ($) $ in Millions | Apr. 04, 2021 | Jan. 03, 2021 |
Accounting Policies [Abstract] | ||
Promotional program reserve | $ 26 | $ 17.6 |
ACQUISITIONS - Fair Value of As
ACQUISITIONS - Fair Value of Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands | Nov. 11, 2020 | Nov. 02, 2020 | Jun. 05, 2020 | Apr. 04, 2021 | Jan. 03, 2021 |
Business Acquisition [Line Items] | |||||
Tax Receivable Agreement obligations to the Continuing Members | $ 28,700 | $ 28,700 | |||
Identifiable Intangible assets | 871,150 | ||||
Goodwill | 880,063 | 862,183 | |||
Income tax refund receivable | $ 4,500 | ||||
Payable to Truco | 4,500 | ||||
Tax consideration | $ 4,468 | ||||
Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible assets | $ 443,500 | ||||
Useful Life | 25 years | ||||
Trade names | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible assets | $ 56,000 | ||||
Useful Life | 15 years | ||||
Technology | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible assets | $ 43 | ||||
Useful Life | 5 years | ||||
Master distribution rights | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible assets | $ 2,221 | ||||
Useful Life | 15 years | ||||
Trademarks | |||||
Business Acquisition [Line Items] | |||||
Acquired customer relationships and trademarks, amortization period | 15 years | ||||
Trade names | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible assets | $ 355,500 | ||||
Company owned routes | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible assets | $ 13,886 | ||||
Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Acquired customer relationships and trademarks, amortization period | 25 years | ||||
Class V Common Stock | |||||
Business Acquisition [Line Items] | |||||
Conversion of Continuing Members' Retained Restricted Units (in shares) | 3,483,022 | ||||
Utz Brands, Inc. | |||||
Business Acquisition [Line Items] | |||||
Total cash consideration | $ 199,161 | ||||
Tax Receivable Agreement obligations to the Continuing Members | 28,690 | ||||
Total cash consideration | 293,093 | ||||
Noncontrolling interest | 896,701 | ||||
Net debt assumed | 648,150 | ||||
Total business enterprise value | 1,837,944 | ||||
Utz Brands, Inc. | Phantom Units | |||||
Business Acquisition [Line Items] | |||||
Equity consideration | 11,175 | ||||
Utz Brands, Inc. | Class A Common Stock | |||||
Business Acquisition [Line Items] | |||||
Equity consideration | 54,067 | ||||
Utz Brands Holdings, Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 13,713 | ||||
Accounts receivable | 119,339 | ||||
Inventory, net | 63,862 | ||||
Prepaid expenses and other assets | 6,116 | ||||
Notes receivable | 29,453 | ||||
Property, plant and equipment, net | 269,951 | ||||
Identifiable Intangible assets | 871,150 | ||||
Other assets | 7,086 | ||||
Total assets acquired: | 1,380,670 | ||||
Accounts payable | 49,531 | ||||
Accrued expenses | 78,223 | ||||
Notes payable | 34,547 | ||||
Deferred tax liability | 25,381 | ||||
Total liabilities assumed: | 187,682 | ||||
Net identifiable assets acquired | 1,192,988 | ||||
Goodwill | $ 644,956 | ||||
Kitchen Cooked | Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Acquired customer relationships and trademarks, amortization period | 15 years | ||||
Kitchen Cooked | Trademarks | |||||
Business Acquisition [Line Items] | |||||
Acquired customer relationships and trademarks, amortization period | 15 years | ||||
Snak-King Corp. | Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Acquired customer relationships and trademarks, amortization period | 15 years | ||||
Snak-King Corp. | Trademarks | |||||
Business Acquisition [Line Items] | |||||
Acquired customer relationships and trademarks, amortization period | 15 years | ||||
Truco Holdco Inc. | |||||
Business Acquisition [Line Items] | |||||
Total cash consideration | $ 404,000 | ||||
Total cash consideration | 408,431 | ||||
Cash and cash equivalents | 5,811 | ||||
Accounts receivable | 15,609 | ||||
Inventory, net | 2,629 | ||||
Prepaid expenses and other assets | 5,090 | ||||
Property, plant and equipment, net | 461 | ||||
Other assets | 1,219 | ||||
Total assets acquired: | 255,819 | ||||
Accounts payable | 5,702 | ||||
Accrued expenses | 4,492 | ||||
Deferred tax liability | 50,855 | ||||
Total liabilities assumed: | 61,075 | ||||
Net identifiable assets acquired | 194,744 | ||||
Goodwill | 213,687 | ||||
Purchase consideration | 403,963 | ||||
Other liabilities | $ 26 | ||||
Truco Holdco Inc. | Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Acquired customer relationships and trademarks, amortization period | 15 years | ||||
Customer relationships | $ 225,000 | ||||
Truco Holdco Inc. | Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Trademarks | $ 225,000 |
ACQUISITIONS - Additional Infor
ACQUISITIONS - Additional Information (Details) - USD ($) $ in Thousands | Jan. 11, 2021 | Dec. 14, 2020 | Nov. 11, 2020 | Nov. 02, 2020 | Apr. 04, 2021 | Jan. 03, 2021 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 880,063 | $ 862,183 | ||||
Contributed revenues | 44,300 | |||||
Net income | $ 4,700 | |||||
On The Border | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 79,000 | |||||
Snak-King Corp. | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 25,000 | |||||
Snak-King Corp. | Goodwill | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | 17,800 | |||||
Trademarks | Snak-King Corp. | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | 2,900 | |||||
Customer Relationships | Snak-King Corp. | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | 800 | |||||
DSD Routes | Snak-King Corp. | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 1,700 | |||||
Kitchen Cooked | Trademarks | ||||||
Business Acquisition [Line Items] | ||||||
Acquired customer relationships and trademarks, amortization period | 15 years | |||||
Kitchen Cooked | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Acquired customer relationships and trademarks, amortization period | 15 years | |||||
Truco Holdco Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 213,687 | |||||
Total cash consideration | 404,000 | |||||
Cash payments | 3,000 | |||||
Transaction costs | 5,600 | |||||
Total cash consideration | 408,431 | |||||
Truco Holdco Inc. | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Customer relationships | $ 225,000 | |||||
Acquired customer relationships and trademarks, amortization period | 15 years | |||||
H.K. Anderson | ||||||
Business Acquisition [Line Items] | ||||||
Payment to acquire assets | $ 8,000 | |||||
Goodwill | 3,500 | |||||
H.K. Anderson | Trademarks | ||||||
Business Acquisition [Line Items] | ||||||
Customer relationships | 1,800 | |||||
H.K. Anderson | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Customer relationships | $ 2,700 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Apr. 04, 2021 | Jan. 03, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 33,981 | $ 28,935 |
Raw materials | 27,544 | 25,129 |
Maintenance parts | 6,059 | 5,746 |
Total inventories | $ 67,584 | $ 59,810 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Apr. 04, 2021 | Jan. 03, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 285,308 | $ 282,836 |
Less: accumulated depreciation | (22,309) | (12,420) |
Goodwill | 262,999 | 270,416 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 22,674 | 22,750 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 83,996 | 83,780 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 165,670 | 157,513 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 2,226 | 2,228 |
Building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 1,057 | 1,047 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 9,685 | $ 15,518 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 9.9 | $ 7 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Jan. 03, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 862,183 | |
Ending balance | 880,063 | |
Finite-lived intangible assets | 734,954 | $ 731,224 |
Accumulated amortization | (17,739) | (8,268) |
Amortizable assets, net | 717,215 | 722,956 |
Intangible assets, net | 1,167,268 | 1,171,709 |
Trade names | ||
Goodwill [Roll Forward] | ||
Indefinite-lived intangible assets | 434,513 | 434,513 |
Company owned routes | ||
Goodwill [Roll Forward] | ||
Indefinite-lived intangible assets | 15,540 | 14,240 |
Customer Relationships | ||
Goodwill [Roll Forward] | ||
Finite-lived intangible assets | 671,940 | 671,150 |
Technology | ||
Goodwill [Roll Forward] | ||
Finite-lived intangible assets | 43 | 43 |
Trademarks | ||
Goodwill [Roll Forward] | ||
Finite-lived intangible assets | 60,750 | 57,810 |
Master distribution rights | ||
Goodwill [Roll Forward] | ||
Finite-lived intangible assets | 2,221 | $ 2,221 |
Vitners | ||
Goodwill [Roll Forward] | ||
Acquisition of Vitner's | $ 17,880 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET - Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 04, 2021 | Jan. 03, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | $ 734,954 | $ 731,224 |
Accumulated amortization | (17,739) | (8,268) |
Amortizable assets, net | 717,215 | 722,956 |
Indefinite-lived Intangible Assets [Line Items] | ||
Non-current portion of notes receivable | 1,167,268 | 1,171,709 |
Finite-lived intangible assets | 734,954 | 731,224 |
Trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 434,513 | 434,513 |
Company owned routes | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 15,540 | 14,240 |
Distributor/customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 671,940 | 671,150 |
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 671,940 | 671,150 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 43 | 43 |
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 43 | 43 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 60,750 | 57,810 |
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 60,750 | 57,810 |
Master distribution rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 2,221 | 2,221 |
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | $ 2,221 | $ 2,221 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 9.5 | $ 1.9 |
Vitners | Company owned routes | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets acquired | 1.7 | |
Trademarks | Vitners | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | 2.9 | |
Customer Relationships | Vitners | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | 0.8 | |
Master distribution rights | Vitners | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 1.2 |
NOTES RECEIVABLE (Details)
NOTES RECEIVABLE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Jan. 03, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other notes receivable | $ 5,918 | $ 7,666 |
Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other notes receivable | 23,600 | 23,100 |
Other Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other notes receivable | 400 | 600 |
IO Notes Receivable | Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other notes receivable | $ 27,900 | $ 27,100 |
IO Notes Receivable | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest rate | 0.00% | |
Term of agreement | 1 year | |
IO Notes Receivable | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest rate | 8.55% | |
Term of agreement | 10 years |
ACCRUED EXPENSES AND OTHER (Det
ACCRUED EXPENSES AND OTHER (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 04, 2021 | Jan. 03, 2021 | |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 17,789 | $ 36,968 |
Accrued freight and manufacturing related costs | 7,013 | 6,972 |
Insurance liabilities | 7,256 | 8,100 |
Short term interest rate hedge liability | 3,009 | 3,048 |
Accrued interest | 576 | 1,220 |
Accrued sales tax | 1,300 | 1,300 |
Truco acquisition tax consideration | 4,468 | 4,468 |
Accrued distributions | 0 | 4,261 |
Other accrued expenses | 8,174 | 14,451 |
Non-current portion of other notes payable | 49,585 | 80,788 |
Tax Receivable Agreement obligations to the Continuing Members | 28,700 | 28,700 |
Long-term accrued expenses and other, retirement and salary continuation plan | 7,100 | 6,900 |
Hedging liabilities, current | 1,300 | 2,100 |
Long-term accrued expenses and other, other | $ 400 | $ 100 |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Details) - USD ($) | Jan. 20, 2021 | Dec. 14, 2020 | Oct. 21, 2019 | Nov. 21, 2017 | Mar. 30, 2018 | Apr. 04, 2021 | Mar. 29, 2020 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 18, 2020 | Apr. 01, 2020 |
Debt Instrument [Line Items] | |||||||||||
Deferred financing costs | $ 2,870,000 | $ 653,000 | |||||||||
Repayment of debt | 783,735,000 | 2,178,000 | |||||||||
Proceeds from the sale of IO notes | 2,295,000 | 0 | |||||||||
Earnings per Class A Common stock: (in dollars) | 10,861,000 | 9,643,000 | |||||||||
Kitchen Cooked | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Deferred payment obligations | 2,000,000 | ||||||||||
Deferred obligations, outstanding | 1,000,000 | $ 1,000,000 | |||||||||
Kitchen Cooked | Intellectual Property | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Deferred payment obligations | $ 500,000 | ||||||||||
Deferred obligations, outstanding | $ 400,000 | 500,000 | |||||||||
First Lien Term Loan | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.50% | ||||||||||
Interest rate | 3.64% | 5.10% | |||||||||
Principal amount | $ 535,000,000 | ||||||||||
Quarterly principal payments | $ 1,300,000 | ||||||||||
Advance payment of principal | $ 111,600,000 | ||||||||||
Finance fees | $ 10,700,000 | ||||||||||
Repayment of debt | $ 410,000,000 | ||||||||||
First Lien Term Loan | Secured Debt | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 3.50% | ||||||||||
Second Lien Term Loan | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 125,000,000 | ||||||||||
Finance fees | 4,100,000 | ||||||||||
Senior Secured First Lien Floating Rate Note | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 125,000,000 | ||||||||||
Senior Secured First Lien Floating Rate Note | Secured Debt | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 5.25% | ||||||||||
IO Notes Payable | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Deferred financing costs | 2,900,000 | $ 700,000 | |||||||||
Interest expense | 10,900,000 | 9,600,000 | |||||||||
Notes receivable sold | 2,300,000 | $ 33,200,000 | |||||||||
Proceeds from the sale of IO notes | 2,500,000 | $ 34,100,000 | |||||||||
Bridge Credit Agreement | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term Line of Credit | 370,000,000 | ||||||||||
Finance fees | $ 7,200,000 | 2,600,000 | |||||||||
Amount withdrawn from line of credit | $ 490,000,000 | ||||||||||
Repayments of with company's warrants | $ 12,000,000 | 120,000,000 | |||||||||
Bridge Credit Agreement | LIBOR | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 4.25% | ||||||||||
Bridge Credit Agreement | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repurchased amount of debt | $ 358,000,000 | ||||||||||
Term Loan B | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 3.11% | ||||||||||
Principal amount | 720,000,000 | ||||||||||
Finance fees | 8,400,000 | ||||||||||
Repurchased amount of debt | $ 410,000,000 | ||||||||||
Term Loan B | Secured Debt | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 3.00% | ||||||||||
Revolving Credit Facility | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest expense | $ 7,600,000 | $ 8,300,000 | |||||||||
Revolving Credit Facility | ABL Facility | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 100,000,000 | $ 161,000,000 | $ 116,000,000 | ||||||||
Long-term Line of Credit | 15,000,000 | 0 | |||||||||
Available for borrowing, net of letters of credit | $ 93,400,000 | 106,400,000 | |||||||||
Unused line fees | 0.50% | ||||||||||
Revolving Credit Facility | ABL Facility | Line of Credit | Minimum | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.50% | ||||||||||
Interest rate | 1.61% | ||||||||||
Revolving Credit Facility | ABL Facility | Line of Credit | Minimum | Prime Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 0.50% | ||||||||||
Interest rate | 3.75% | ||||||||||
Revolving Credit Facility | ABL Facility | Line of Credit | Maximum | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.00% | ||||||||||
Interest rate | 2.36% | ||||||||||
Revolving Credit Facility | ABL Facility | Line of Credit | Maximum | Prime Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.00% | ||||||||||
Interest rate | 3.75% | ||||||||||
Revolving Credit Facility | IO Notes Payable | Total notes payable | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Earnings per Class A Common stock: (in dollars) | $ 400,000 | $ 600,000 | |||||||||
Standby Letters of Credit | ABL Facility | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 14,100,000 | $ 14,100,000 |
LONG-TERM DEBT - Amounts Outsta
LONG-TERM DEBT - Amounts Outstanding Under Notes Payable (Details) - USD ($) $ in Thousands | Apr. 04, 2021 | Jan. 03, 2021 |
Debt Instrument [Line Items] | ||
Capital lease | $ 8,448 | $ 8,967 |
Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Total non-current liabilities | 23,567 | 23,106 |
Other notes payable | ||
Debt Instrument [Line Items] | ||
Total non-current liabilities | 1,545 | 1,509 |
Total notes payable | ||
Debt Instrument [Line Items] | ||
Total notes payable | 33,560 | 33,582 |
Less: current portion | (8,142) | (9,018) |
Long term portion of notes payable | $ 25,418 | $ 24,564 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND PURCHASE COMMITMENTS - Derivative Financial Instruments and Purchase Commitments (Details) - USD ($) | 3 Months Ended | ||
Apr. 04, 2021 | Mar. 29, 2020 | Sep. 06, 2019 | |
Derivative [Line Items] | |||
Purchase commitments | $ 81,200,000 | ||
Purchase commitment losses | $ 0 | $ (300,000) | |
Interest rate swaps | Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Fixed interest rate | 3.47% | 1.339% | |
Variable interest rate | 0.00% | ||
Notional amount | $ 250,000,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND PURCHASE COMMITMENTS - Reconciliation of the Changes in the Warrant Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Reconciliation Of Changes In Warrant Liability [Roll Forward] | ||
Fair value of warrant liabilities as of January 3, 2021 | $ 137,612 | |
Loss on remeasurement of warrant liability | 21,501 | $ 0 |
Reclassification of warrant liability to equity for exercised or cancelled warrants | (54,713) | |
Fair value of warrant liabilities as of April 4, 2021 | $ 104,400 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Apr. 04, 2021 | Jan. 03, 2021 |
Assets | ||
Cash and cash equivalents | $ 4,020 | $ 46,831 |
Total assets | 4,020 | 46,831 |
Liabilities | ||
Debt | 725,943 | 778,469 |
Total liabilities | 834,914 | 921,492 |
Commodity contracts | ||
Liabilities | ||
Derivative liabilities | 220 | 248 |
Interest rate swaps | ||
Liabilities | ||
Derivative liabilities | 4,351 | 5,163 |
Private placement warrants | ||
Liabilities | ||
Derivative liabilities | 104,400 | 85,032 |
Public Warrants | ||
Liabilities | ||
Derivative liabilities | 52,580 | |
Level I | ||
Assets | ||
Cash and cash equivalents | 4,020 | 46,831 |
Total assets | 4,020 | 46,831 |
Liabilities | ||
Debt | 0 | 0 |
Total liabilities | 0 | 52,580 |
Level I | Commodity contracts | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level I | Interest rate swaps | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level I | Private placement warrants | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level I | Public Warrants | ||
Liabilities | ||
Derivative liabilities | 52,580 | |
Level II | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Debt | 725,943 | 778,469 |
Total liabilities | 834,914 | 868,912 |
Level II | Commodity contracts | ||
Liabilities | ||
Derivative liabilities | 220 | 248 |
Level II | Interest rate swaps | ||
Liabilities | ||
Derivative liabilities | 4,351 | 5,163 |
Level II | Private placement warrants | ||
Liabilities | ||
Derivative liabilities | 104,400 | 85,032 |
Level II | Public Warrants | ||
Liabilities | ||
Derivative liabilities | 0 | |
Level III | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Debt | 0 | 0 |
Total liabilities | 0 | 0 |
Level III | Commodity contracts | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level III | Interest rate swaps | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level III | Private placement warrants | ||
Liabilities | ||
Derivative liabilities | $ 0 | 0 |
Level III | Public Warrants | ||
Liabilities | ||
Derivative liabilities | $ 0 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Apr. 04, 2021 | Jan. 03, 2021 | |
Cadence Bank | ||
Other Commitments [Line Items] | ||
Maximum future payment of guaranteed loans | 25.00% | |
Maximum future payment amount | $ 2 | |
Cadence Bank | Payment Guarantee | ||
Other Commitments [Line Items] | ||
Outstanding balance of guaranteed loans | $ 3.3 | $ 4.1 |
Bank Of America | ||
Other Commitments [Line Items] | ||
Maximum future payment of guaranteed loans | 25.00% | |
Bank Of America | Payment Guarantee | ||
Other Commitments [Line Items] | ||
Outstanding balance of guaranteed loans | $ 8.4 | 7.1 |
Notes purchased | 17.4 | 16.5 |
M&T Bank | Payment Guarantee | ||
Other Commitments [Line Items] | ||
Outstanding balance of guaranteed loans | 6.2 | 6.6 |
Commonwealth Of Pennsylvania Tax Assessment | ||
Other Commitments [Line Items] | ||
Reserve for tax assessment | $ 1.3 | $ 1.3 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 04, 2021 | Mar. 29, 2020 | Jan. 03, 2021 | |
Equity [Abstract] | |||
Accumulated other comprehensive income | $ 1,746 | $ 924 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 552,908 | ||
Other comprehensive income (loss) | 822 | $ (7,208) | |
Ending Balance | 678,743 | ||
Gains/(Losses) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 924 | 1,408 | |
Other comprehensive income (loss) | 822 | (7,208) | |
Ending Balance | $ 1,746 | $ (5,800) |
SUPPLEMENTARY CASH FLOW INFOR_2
SUPPLEMENTARY CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 9,800 | $ 9,500 |
Refunds related to income related taxes | 200 | 200 |
Payments made for income-related taxes | 0 | 0 |
Dividends paid | $ 4,261 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | Jan. 03, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 1,004 | $ 1,458 | |
Effective income tax rate | (4.50%) | 46.30% | |
Effective income tax rate, before discrete items | 6.50% | ||
Discrete tax expense | $ 1,100 | ||
Long-term accrued expenses and other | $ 28,700 | $ 28,700 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Rent expense | $ 2.6 | $ 2.9 |
Vehicles, Equipment And Distribution Centers | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 month | |
Vehicles, Equipment And Distribution Centers | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 12 years |
LEASES - Capital Leases, net (D
LEASES - Capital Leases, net (Details) - USD ($) $ in Thousands | Apr. 04, 2021 | Jan. 03, 2021 |
Leases [Abstract] | ||
Leases | $ 9,423 | $ 9,335 |
Less: accumulated depreciation | 1,113 | 526 |
Leases, net | $ 8,310 | $ 8,809 |
LEASES - Future Minimum Payment
LEASES - Future Minimum Payments (Details) $ in Thousands | Apr. 04, 2021USD ($) |
Leases [Abstract] | |
2021 Remaining | $ 11,848 |
2022 | 10,750 |
2023 | 8,292 |
2024 | 5,761 |
2025 | 4,285 |
Thereafter | 5,005 |
Total | $ 45,941 |
WARRANTS (Details)
WARRANTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | Jan. 03, 2021 | |
Class of Warrant or Right [Line Items] | |||
Conversion of warrants (in shares) | 10,825,664 | ||
Loss on remeasurement of warrant liability | $ 21,501 | $ 0 | |
Forward Purchase Warrant | |||
Class of Warrant or Right [Line Items] | |||
New issues during period (in shares) | 1,166,666 | ||
Conversion of warrants (in shares) | 1,166,666 | ||
Warrants outstanding (in shares) | 432,000 | ||
Private Placement Warrants | |||
Class of Warrant or Right [Line Items] | |||
New issues during period (in shares) | 7,200,000 | ||
Warrants outstanding (in shares) | 7,200,000 | 7,200,000 | |
Warrants | |||
Class of Warrant or Right [Line Items] | |||
New issues during period (in shares) | 15,833,332 | ||
Public Warrants | |||
Class of Warrant or Right [Line Items] | |||
Conversion of warrants (in shares) | 7,466,666 | ||
Warrants outstanding (in shares) | 4,575,645 | ||
Forward Purchase Shares And Warrants | |||
Class of Warrant or Right [Line Items] | |||
New issues during period (in shares) | 3,500,000 | ||
Forward Purchase Shares And Warrants | Class A Common Stock | |||
Class of Warrant or Right [Line Items] | |||
New issues during period (in shares) | 1,166,666 |
EQUITY (Details)
EQUITY (Details) - USD ($) | 3 Months Ended | ||
Apr. 04, 2021 | Jan. 03, 2021 | Sep. 27, 2020 | |
Forward Purchase Shares And Warrants | |||
Class of Stock [Line Items] | |||
New issues during period (in shares) | 3,500,000 | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common stock issued (in shares) | 76,481,833 | 71,094,714 | |
Common stock outstanding (in shares) | 76,481,833 | 71,094,714 | |
Class A Common Stock | Forward Purchase Shares And Warrants | |||
Class of Stock [Line Items] | |||
New issues during period (in shares) | 1,166,666 | ||
Stock price (in dollars per share) | $ 11.50 | ||
Aggregate proceeds from issuance of common stock | $ 35,000,000 | ||
Forward Purchase Class A | |||
Class of Stock [Line Items] | |||
Shares converted (in shares) | 3,500,000 | ||
Common Class B | |||
Class of Stock [Line Items] | |||
Shares converted (in shares) | 2,000,000 | ||
Class V Common Stock | |||
Class of Stock [Line Items] | |||
Common stock authorized (in shares) | 61,249,000 | 61,249,000 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common stock issued (in shares) | 60,349,000 | 60,349,000 | 60,349,000 |
Common stock outstanding (in shares) | 60,349,000 | 60,349,000 | 60,349,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Sep. 27, 2020 | Apr. 04, 2021 | Mar. 29, 2020 | Jan. 03, 2021 | |
Numerator | ||||
Net loss attributable to common stockholders | $ (22,529) | |||
Denominator | ||||
Weighted average common shares, basic (in shares) | 75,927,005 | |||
Basic and diluted earnings per share (in dollars per share) | $ (0.30) | |||
Effect of dilutive securities | ||||
Antidilutive securities excluded from diluted earnings per share calculation (in shares) | 5,693,633 | |||
Net loss (income) attributable to noncontrolling interest | $ (820) | $ 0 | ||
Class V Common Stock | ||||
Effect of dilutive securities | ||||
Common stock issued (in shares) | 60,349,000 | 60,349,000 | 60,349,000 | |
Net loss (income) attributable to noncontrolling interest | $ 800 | |||
Warrants | ||||
Effect of dilutive securities | ||||
Antidilutive securities excluded from diluted earnings per share calculation (in shares) | 4,092,590 | |||
2020 LTIP RSUs | ||||
Effect of dilutive securities | ||||
Antidilutive securities excluded from diluted earnings per share calculation (in shares) | 1,307,549 | |||
Initial Grant RSUs | ||||
Effect of dilutive securities | ||||
Antidilutive securities excluded from diluted earnings per share calculation (in shares) | 57,742 | |||
Share vesting percentage | 50.00% | |||
PSUs | ||||
Effect of dilutive securities | ||||
Antidilutive securities excluded from diluted earnings per share calculation (in shares) | 142,541 | |||
Stock options | ||||
Effect of dilutive securities | ||||
Antidilutive securities excluded from diluted earnings per share calculation (in shares) | 93,211 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions | May 11, 2021 | Apr. 08, 2021 |
Festida Foods | ||
Subsequent Event [Line Items] | ||
Purchase price | $ 41 | |
Class A Common Stock | ||
Subsequent Event [Line Items] | ||
Dividends declared (in dollars per share) | $ 0.05 |