Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 26, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | DIXIE GROUP INC | |
Entity Central Index Key | 29,332 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Class A [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 15,515,088 | |
Common Class B [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 936,804 | |
Common Class C [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 21 | $ 19 |
Receivables, net | 49,408 | 46,480 |
Inventories, net | 122,383 | 113,657 |
Prepaids and other current assets | 7,155 | 4,669 |
TOTAL CURRENT ASSETS | 178,967 | 164,825 |
PROPERTY, PLANT AND EQUIPMENT, NET | 89,148 | 93,785 |
GOODWILL AND OTHER INTANGIBLES | 5,698 | 5,850 |
OTHER ASSETS | 18,089 | 19,447 |
TOTAL ASSETS | 291,902 | 283,907 |
CURRENT LIABILITIES | ||
Accounts payable | 27,407 | 18,541 |
Accrued expenses | 30,911 | 31,360 |
Current portion of long-term debt | 7,982 | 9,811 |
TOTAL CURRENT LIABILITIES | 66,300 | 59,712 |
LONG-TERM DEBT | 130,192 | 123,446 |
OTHER LONG-TERM LIABILITIES | 18,955 | 21,486 |
TOTAL LIABILITIES | 215,447 | 204,644 |
COMMITMENTS AND CONTINGENCIES (See Note 18) | ||
STOCKHOLDERS' EQUITY | ||
Common Stock ($3 par value per share): Authorized 80,000,000 shares, issued and outstanding - 15,515,088 shares for 2018 and 15,279,812 shares for 2017 | 46,545 | 45,839 |
Class B Common Stock ($3 par value per share): Authorized 16,000,000 shares, issued and outstanding - 936,804 shares for 2018 and 861,499 shares for 2017 | 2,810 | 2,584 |
Additional paid-in capital | 156,605 | 157,139 |
Accumulated deficit | (129,723) | (125,000) |
Accumulated other comprehensive income (loss) | 218 | (1,299) |
TOTAL STOCKHOLDERS' EQUITY | 76,455 | 79,263 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 291,902 | $ 283,907 |
Consolidated Condensed Balance3
Consolidated Condensed Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2018 | Dec. 30, 2017 |
Common stock, par value | $ 3 | $ 3 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 15,515,088 | 15,279,812 |
Class B Common stock, par value | $ 3 | $ 3 |
Class B Common stock, shares authorized | 16,000,000 | 16,000,000 |
Class B Common stock, shares issued | 936,804 | 861,499 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | ||
NET SALES | $ 106,438 | $ 107,187 | $ 205,297 | $ 204,728 | |
Cost of sales | 81,294 | 78,761 | 158,573 | 151,141 | |
GROSS PROFIT | 25,144 | 28,426 | 46,724 | 53,587 | |
Selling and administrative expenses | 23,802 | 25,266 | 46,921 | 49,753 | |
Other operating (income) expense, net | 1,507 | (14) | 1,267 | 39 | |
Facility consolidation and severance expenses, net | 190 | 0 | 406 | 0 | |
OPERATING (LOSS) INCOME | (355) | 3,174 | (1,870) | 3,795 | |
Interest expense | 1,642 | 1,357 | 3,176 | 2,719 | |
Other expense, net | 1 | 21 | 3 | 18 | |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | (1,998) | 1,796 | (5,049) | 1,058 | |
Income tax provision (benefit) | (26) | 570 | (192) | 408 | |
INCOME (LOSS) FROM CONTINUING OPERATIONS | (1,972) | 1,226 | (4,857) | 650 | |
Income (loss) from discontinued operations, net of tax | 157 | (123) | 135 | (152) | |
NET INCOME (LOSS) | $ (1,815) | $ 1,103 | $ (4,722) | $ 498 | |
BASIC EARNINGS (LOSS) PER SHARE: | |||||
Continuing operations | $ (0.13) | $ 0.08 | $ (0.31) | $ 0.04 | |
Discontinued operations | 0.01 | (0.01) | 0.01 | (0.01) | |
Net income (loss) | $ (0.12) | $ 0.07 | $ (0.30) | $ 0.03 | |
BASIC SHARES OUTSTANDING | [1] | 15,763 | 15,707 | 15,739 | 15,690 |
DILUTED EARNINGS (LOSS) PER SHARE: | |||||
Continuing operations | $ (0.13) | $ 0.08 | $ (0.31) | $ 0.04 | |
Discontinued operations | 0.01 | (0.01) | 0.01 | (0.01) | |
Net income (loss) | $ (0.12) | $ 0.07 | $ (0.30) | $ 0.03 | |
DILUTED SHARES OUTSTANDING | [1],[2] | 15,763 | 15,826 | 15,739 | 15,805 |
DIVIDENDS PER SHARE: | |||||
Common Stock | $ 0 | $ 0 | $ 0 | $ 0 | |
Class B Common Stock | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | Includes Common and Class B Common shares, excluding 675 thousand unvested participating securities | ||||
[2] | Shares issuable under stock option plans where the exercise price is greater than the average market price of the Company's Common Stock during the relevant period and directors' stock performance units have been excluded to the extent they are anti-dilutive. Aggregate shares excluded for the three and six months ended June 30, 2018 were 426 thousand and for the three and six months ended July 1, 2017 were 307 thousand. |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | ||
NET INCOME (LOSS) | $ (1,815) | $ 1,103 | $ (4,722) | $ 498 | |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | |||||
Unrealized gain (loss) on interest rate swaps | 323 | (359) | 1,128 | (303) | |
Income taxes | 0 | (136) | 0 | (115) | |
Unrealized gain (loss) on interest rate swaps, net | 323 | (223) | 1,128 | (188) | |
Reclassification of loss into earnings from interest rate swaps (1) | [1] | 177 | 324 | 406 | 683 |
Income taxes | 0 | 123 | 0 | 260 | |
Reclassification of loss into earnings from interest rate swaps, net | 177 | 201 | 406 | 423 | |
Reclassification of net actuarial gain into earnings from postretirement benefit plans (2) | [2] | (7) | (8) | (15) | (16) |
Income taxes | 0 | (3) | 0 | (6) | |
Reclassification of net actuarial gain into earnings from postretirement benefit plans, net | (7) | (5) | (15) | (10) | |
Reclassification of prior service credits into earnings from postretirement benefit plans (2) | [2] | (1) | (1) | (2) | (2) |
Income taxes | 0 | 0 | 0 | (1) | |
Reclassification of prior service credits into earnings from postretirement benefit plans, net | (1) | (1) | (2) | (1) | |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 492 | (28) | 1,517 | 224 | |
COMPREHENSIVE INCOME (LOSS) | $ (1,323) | $ 1,075 | $ (3,205) | $ 722 | |
[1] | Amounts for cash flow hedges reclassified from accumulated other comprehensive income (loss) to net income (loss) were included in interest expense in the Company's Consolidated Condensed Statements of Operations. | ||||
[2] | Amounts for postretirement plans reclassified from accumulated other comprehensive income (loss) to net income (loss) were included in selling and administrative expenses in the Company's Consolidated Condensed Statements of Operations. |
Consolidated Condensed Stateme6
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Income (loss) from continuing operations | $ (4,857) | $ 650 |
Income (loss) from discontinued operations | 135 | (152) |
Net income (loss) | (4,722) | 498 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 6,307 | 6,406 |
Provision for deferred income taxes | 15 | 390 |
Net loss on property, plant and equipment disposals | 82 | 41 |
Stock-based compensation expense | 456 | 488 |
Bad debt expense | 117 | 17 |
Changes in operating assets and liabilities: | ||
Receivables | (3,045) | (10,024) |
Inventories | (8,726) | (14,754) |
Other current assets | (2,486) | 104 |
Accounts payable and accrued expenses | 6,537 | 8,624 |
Other operating assets and liabilities | 314 | (524) |
NET CASH USED IN OPERATING ACTIVITIES | (5,151) | (8,734) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (1,422) | (6,224) |
NET CASH USED IN INVESTING ACTIVITIES | (1,422) | (6,224) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net borrowings on revolving credit facility | 8,434 | 18,944 |
Payments on notes payable - buildings | (366) | (365) |
Payments on notes payable related to acquisitions | (791) | (1,393) |
Borrowings on notes payable - equipment and other | 1,960 | 1,932 |
Payments on notes payable - equipment and other | (2,250) | (2,210) |
Payments on capital leases | (2,234) | (1,931) |
Change in outstanding checks in excess of cash | 1,880 | 90 |
Repurchases of Common Stock | (58) | (116) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 6,575 | 14,951 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2 | (7) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 19 | 140 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 21 | 133 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | 3,054 | 2,660 |
Income taxes paid, net | 73 | 105 |
Equipment purchased under capital leases | 74 | 229 |
Equipment purchased under notes payable | $ 0 | $ 59 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial statements which do not include all the information and notes required by such accounting principles for annual financial statements. In the opinion of management, all adjustments (generally consisting of normal recurring accruals) considered necessary for a fair presentation have been included in the accompanying financial statements. The accompanying financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended December 30, 2017. Operating results for the three and six month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for the entire 2018 year. Based on applicable accounting standards, the Company has determined that it has one reportable segment, Floorcovering comprised of two operating segments, Residential and Commercial. Pursuant to applicable accounting standards, the Company has aggregated the two operating segments into one reporting segment because they have similar economic characteristics, and the operating segments are similar in all of the following areas: (a) the nature of the products and services; (b) the nature of the production processes; (c) the type or class of customer for their products and services; (d) the methods used to distribute their products or provide their services; and (e) the nature of the regulatory environment. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standard Adopted in Fiscal 2018 In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, " Revenue from Contracts with Customers (Topic 606) ". The ASU requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU and all subsequently issued clarifying ASUs replaced most existing revenue recognition guidance in U.S. GAAP. The ASU was effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The standard permits the use of either the retrospective or cumulative effect transition method. The ASU also required expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required for customer contracts, significant judgments and changes in judgments. The Company adopted the new standard effective December 31, 2017, the first day of the Company's fiscal year, using the full retrospective method approach and expanded its financial statement disclosures in order to comply with the ASU. (See Note 3.) The adoption of this ASU did not have a significant impact on the Company's consolidated financial statements. The majority of the Company's revenue arrangements generally consist of a single performance obligation to transfer promised goods or services. Based on the Company's evaluation process and review of its contracts with customers, the timing (point in time) and amount of revenue recognized previously is consistent with how revenue is recognized under the new standard. Therefore, no changes were required to its reported revenues as a result of the adoption. However, the adoption resulted in the recognition of an asset related to certain product returns by increasing the returns liability for December 30, 2017 and recognizing a corresponding asset for the estimated value of the returns from customers; this gross up had no corresponding impact on the Consolidated Condensed Statement of Operations. The Consolidated Balance Sheet as of December 30, 2017 has been adjusted to reflect retrospective application of the new accounting standard as follows: December 30, 2017 As Previously Reported Adjustments As Adjusted ASSETS Prepaids and other current assets $ 3,600 $ 1,069 $ 4,669 LIABILITIES AND STOCKHOLDERS' EQUITY Accrued expenses $ 30,291 $ 1,069 $ 31,360 As part of the adoption of the ASU, the Company elected to use the following practical expedients (i) to exclude disclosures of transaction prices allocated to remaining performance obligations when the Company expects to recognize such revenue for all periods prior to the date of initial application of the ASU; (ii) not to adjust the promised amount of consideration for the effects of a significant financing component when the Company expects, at contract inception, that the period between the Company's transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less; (iii) to expense costs as incurred for costs to obtain a contract when the amortization period would have been one year or less; (iv) not to recast revenues for contracts that begin and end in the same fiscal year; and (v) not to assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer. The Company's revenue is recognized at a point in time based on the transfer of control whereby the Company does not invest in contract costs that are recoverable. In addition, performance obligations and customer payments are within one year or less. For these reasons, there is not a significant impact as a result of electing these practical expedients. Accounting Standards Yet to Be Adopted In February 2016, the FASB issued ASU No. 2016-02, " Leases (Topic 842)," which requires lessees to recognize on the balance sheet a right-of-use asset, representing the right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is continuing to evaluate the impact of the adoption of this ASU on its financial statements. The Company has developed a project team relative to the process of adopting this ASU and is currently completing a detailed review of the Company’s leasing arrangements, which consist primarily of building and equipment leases, to determine the impact. In June 2016, the FASB issued ASU No. 2016-13, " Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which amends the impairment model to utilize an expected loss methodology in place of the current incurred loss methodology, which will result in the more timely recognition of losses. For public entities, ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early application will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company does not believe the adoption of this ASU will have a significant impact on the financial statements due to the nature of the Company's customers and the limited amount of write-offs in past years. In August 2017, the FASB issued ASU No. 2017-12, " Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. " The amendments in this ASU update current guidance by more closely aligning the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company does not believe the adoption of this ASU will have a significant impact on the financial statements. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Revenue Recognition Policy The Company derives its revenues primarily from the sale of floorcovering products and processing services. Revenues are recognized when control of these products or services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products and services. Sales, value add, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. Shipping and handling fees charged to customers are reported within revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. The Company does not have any significant financing components as payment is received at or shortly after the point of sale. The Company determined revenue recognition through the following steps: • Identification of the contract with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the performance obligation is satisfied Disaggregation of Revenue from Contracts with Customers The following table disaggregates the Company’s revenue by end-user markets for the three months and six months ended June 30, 2018 and July 1, 2017: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Residential floorcovering products $ 75,034 $ 72,115 $ 142,129 $ 134,654 Commercial floorcovering products 30,954 34,443 62,242 68,959 Other services 450 629 926 1,115 Total net sales $ 106,438 $ 107,187 $ 205,297 $ 204,728 Residential floorcovering products. Residential floorcovering products include broadloom carpet, rugs, luxury vinyl flooring and engineered hardwood. These products are sold into the designer, retailer, mass merchant and builder markets. Commercial floorcovering products. Commercial floorcovering products include broadloom carpet, carpet tile, rugs, and luxury vinyl flooring. These products are sold into the corporate, hospitality, healthcare, government, and education markets through the use of designers and architects. Other services. Other services include carpet yarn processing and carpet dyeing services. Contract Balances Other than receivables that represent an unconditional right to consideration, which are presented separately (See Note 4), the Company does not recognize any contract assets which give conditional rights to receive consideration, as the Company does not incur costs to obtain customer contracts that are recoverable. The Company often receives cash payments from customers in advance of the Company’s performance for limited production run orders resulting in contract liabilities. These contract liabilities are classified in accrued expenses in the Consolidated Condensed Balance Sheets based on the timing of when the Company expects to recognize revenue, which is typically less than a year. The net decrease or increase in the contract liabilities is primarily driven by order activity for limited runs requiring deposits offset by the recognition of revenue and application of deposit on the receivables ledger for such activity during the period. The activity in the advanced deposits for the three and six months ended June 30, 2018 and July 1, 2017 is as follows: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Beginning contract liability $ 5,296 $ 7,572 $ 5,717 $ 8,212 Revenue recognized from contract liabilities included in the beginning balance (4,711 ) (6,246 ) (5,005 ) (7,534 ) Increases due to cash received, net of amounts recognized in revenue during the period 6,139 4,903 6,012 5,551 Ending contract liability $ 6,724 $ 6,229 $ 6,724 $ 6,229 Performance Obligations For performance obligations related to residential floorcovering and commercial floorcovering products, control transfers at a point in time. To indicate the transfer of control, the Company must have a present right to payment, legal title must have passed to the customer and the customer must have the significant risks and rewards of ownership. The Company’s principal terms of sale are FOB Shipping Point and FOB Destination and the Company transfers control and records revenue for product sales either upon shipment or delivery to the customer, respectively. Revenue is allocated to each performance obligation based on its relative stand-alone selling prices. Stand-alone selling prices are based on observable prices at which the Company separately sells the products or services. Variable Consideration The nature of the Company’s business gives rise to variable consideration, including rebates, allowances, and returns that generally decrease the transaction price which reduces revenue. These variable amounts are generally credited to the customer, based on achieving certain levels of sales activity, product returns or price concessions. Variable consideration is estimated at the most likely amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration are estimated based upon historical experience and known trends. Warranties The Company generally provides product warranties related to manufacturing defects and specific performance standards for its products for a period up to two years. The Company accrues for estimated future assurance warranty costs in the period in which the sale is recorded. The costs are included in Cost of Sales in the Consolidated Condensed Statements of Operations and the product warranty reserve is included in accrued expenses in the Consolidated Condensed Balance Sheets. The Company calculates its accrual using the portfolio approach based upon historical experience and known trends. (See Note 9.) The Company does not provide an additional service-type warranty. Bill-and-Hold Arrangement At the customer's request, the Company entered into a bill-and-hold arrangement with one customer during the three months ended March 31, 2018. The Company recognized revenue of $630 but retained physical possession of the inventory. The Company segregated the inventory and no longer had the ability to use or direct it to another customer. The inventory was available to be physically transferred to the customer. As of June 30, 2018, approximately 62% of the order had been shipped to the customer. |
Receivables, Net
Receivables, Net | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Receivables, Net | RECEIVABLES, NET Receivables are summarized as follows: June 30, December 30, Customers, trade $ 46,645 $ 43,683 Other receivables 2,962 2,930 Gross receivables 49,607 46,613 Less: allowance for doubtful accounts (199 ) (133 ) Receivables, net $ 49,408 $ 46,480 Bad debt expense (credit) was $57 and $117 for the three and six months ended June 30, 2018, respectively, and $(13) and $17 for the three and six months ended July 1, 2017, respectively. |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | INVENTORIES, NET Inventories are summarized as follows: June 30, December 30, Raw materials $ 42,874 $ 39,264 Work-in-process 23,206 24,454 Finished goods 70,136 65,172 Supplies and other 138 143 LIFO reserve (13,971 ) (15,376 ) Inventories, net $ 122,383 $ 113,657 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consists of the following: June 30, December 30, Land and improvements $ 8,291 $ 7,886 Buildings and improvements 63,349 62,852 Machinery and equipment 188,810 188,971 Assets under construction 1,731 2,443 262,181 262,152 Accumulated depreciation (173,033 ) (168,367 ) Property, plant and equipment, net $ 89,148 $ 93,785 Depreciation of property, plant and equipment, including amounts for capital leases, totaled $3,036 and $6,051 , respectively, in the three and six months ended June 30, 2018 and $3,068 and $6,150 , respectively, in the three and six months ended July 1, 2017. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL AND OTHER INTANGIBLES The carrying amount of goodwill is $3,389 as of June 30, 2018 and December 30, 2017. The Company has a net carrying amount of $2,309 and $2,461 as of June 30, 2018 and December 30, 2017, respectively, for certain intangible assets subject to amortization. Amortization expense was $76 and $153 for the three and six months ended June 30, 2018 and July 1, 2017, respectively. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | ACCRUED EXPENSES Accrued expenses are summarized as follows: June 30, December 30, (As Adjusted) Compensation and benefits $ 7,493 $ 9,276 Provision for customer rebates, claims and allowances 8,446 9,820 Advanced customer deposits 6,724 5,717 Outstanding checks in excess of cash 2,259 379 Other 5,989 6,168 Accrued expenses $ 30,911 $ 31,360 |
Product Warranty Reserves
Product Warranty Reserves | 6 Months Ended |
Jun. 30, 2018 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty Reserves | PRODUCT WARRANTY RESERVES The Company generally provides product warranties related to manufacturing defects and specific performance standards for its products. Product warranty reserves are included in accrued expenses in the Company's Consolidated Condensed Balance Sheets. The following is a summary of the Company's product warranty activity: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, (As Adjusted) (As Adjusted) Product warranty reserve at beginning of period $ 1,248 $ 1,357 $ 1,356 $ 1,439 Warranty liabilities accrued 623 491 1,236 895 Warranty liabilities settled (626 ) (490 ) (1,318 ) (906 ) Changes for pre-existing warranty liabilities (2 ) 59 (31 ) (11 ) Product warranty reserve at end of period $ 1,243 $ 1,417 $ 1,243 $ 1,417 |
Long-Term Debt and Credit Arran
Long-Term Debt and Credit Arrangements | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Credit Arrangements | LONG-TERM DEBT AND CREDIT ARRANGEMENTS Long-term debt consists of the following: June 30, December 30, Revolving credit facility $ 106,142 $ 97,708 Notes payable - buildings 12,053 12,419 Acquisition note payable - Robertex — 791 Notes payable - equipment and other 6,224 8,474 Capital lease obligations 14,330 14,530 Deferred financing costs, net (575 ) (665 ) Total long-term debt 138,174 133,257 Less: current portion of long-term debt 7,982 9,811 Long-term debt $ 130,192 $ 123,446 Revolving Credit Facility The revolving credit facility provides for a maximum of $150,000 of revolving credit, subject to borrowing base availability. The borrowing base is currently equal to specified percentages of the Company's eligible accounts receivable, inventories, fixed assets and real property less reserves established, from time to time, by the administrative agent under the facility. The revolving credit facility matures on September 23, 2021. The revolving credit facility is secured by a first priority lien on substantially all of the Company's assets. At the Company's election, advances of the revolving credit facility bear interest at annual rates equal to either (a) LIBOR for one, two or three-month periods, as selected by the Company, plus an applicable margin ranging between 1.50% and 2.00% , or (b) the higher of the prime rate, the Federal Funds rate plus 0.5% , or a daily LIBOR rate plus 1.00% , plus an applicable margin ranging between 0.50% and 1.00% . The applicable margin is determined based on availability under the revolving credit facility with margins increasing as availability decreases. As of June 30, 2018, the applicable margin on our revolving credit facility was 1.75% . The Company pays an unused line fee on the average amount by which the aggregate commitments exceed utilization of the revolving credit facility equal to 0.375% per annum. The weighted-average interest rate on borrowings outstanding under the revolving credit facility was 4.41% at June 30, 2018 and 4.12% at December 30, 2017. The revolving credit facility includes certain affirmative and negative covenants that impose restrictions on the Company's financial and business operations. The revolving credit facility restricts the Company's borrowing availability if its fixed charge coverage ratio is less than 1.1 to 1.0. During any period that the fixed charge coverage ratio is less than 1.1 to 1.0, the Company's borrowing availability is reduced by $16,500 . As of June 30, 2018, the unused borrowing availability under the revolving credit facility was $26,780 ; however, since the Company's fixed charge coverage ratio was less than 1.1 to 1.0, the unused availability accessible by the Company was $10,280 (the amount above $16,500 ) at June 30, 2018. Notes Payable - Buildings On November 7, 2014, the Company entered into a ten-year $8,330 note payable to purchase a previously leased distribution center in Adairsville, Georgia. The note payable is scheduled to mature on November 7, 2024 and is secured by the distribution center. The note payable bears interest at a variable rate equal to one-month LIBOR plus 2.0% and is payable in equal monthly installments of principal of $35 , plus interest calculated on the declining balance of the note, with a final payment of $4,165 due on maturity. In addition, the Company entered into an interest rate swap with an amortizing notional amount effective November 7, 2014 which effectively fixes the interest rate at 4.50% . On January 23, 2015, the Company entered into a ten-year $6,290 note payable to finance an owned facility in Saraland, Alabama. The note payable is scheduled to mature on January 7, 2025 and is secured by the facility. The note payable bears interest at a variable rate equal to one-month LIBOR plus 2.0% and is payable in equal monthly installments of principal of $26 , plus interest calculated on the declining balance of the note, with a final payment of $3,145 due on maturity. In addition, the Company entered into an interest rate swap with an amortizing notional amount effective January 7, 2017 which effectively fixes the interest rate at 4.30% . Acquisition Note Payable - Robertex On July 1, 2013, the Company signed a 4.50% seller-financed note of $4,000 , which was recorded at a fair value of $3,749 , with Robert P. Rothman related to the acquisition of Robertex Associates, LLC ("Robertex") in Calhoun, Georgia. The note was payable in five annual installments of principal of $800 plus interest. The note matured on June 30, 2018. Notes Payable - Equipment and Other The Company's equipment financing notes have terms ranging from 1 to 7 years, bear interest ranging from 1.00% to 7.68% and are due in monthly installments through their maturity dates. The Company's equipment financing notes are secured by the specific equipment financed and do not contain any financial covenants. Capital Lease Obligations The Company's capitalized lease obligations have terms ranging from 3 to 7 years, bear interest ranging from 3.55% to 7.76% and are due in monthly or quarterly installments through their maturity dates. The Company's capital lease obligations are secured by the specific equipment leased. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the exchange value of an asset or a liability in an orderly transaction between market participants. The fair value guidance outlines a valuation framework and establishes a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and disclosures. The hierarchy consists of three levels as follows: Level 1 - Quoted market prices in active markets for identical assets or liabilities as of the reported date; Level 2 - Other than quoted market prices in active markets for identical assets or liabilities, quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and other than quoted prices for assets or liabilities and prices that are derived principally from or corroborated by market data by correlation or other means; and Level 3 - Measurements using management's best estimate of fair value, where the determination of fair value requires significant management judgment or estimation. The following table reflects the fair values of assets and liabilities measured and recognized at fair value on a recurring basis on the Company's Consolidated Condensed Balance Sheets as of June 30, 2018 and December 30, 2017: June 30, December 30, Fair Value Hierarchy Level Assets: Interest rate swaps (1) $ 196 $ — Level 2 Liabilities: Interest rate swaps (1) $ 861 $ 2,229 Level 2 Contingent consideration (2) 26 25 Level 3 (1) The Company uses certain external sources in deriving the fair value of the interest rate swaps. The interest rate swaps were valued using observable inputs (e.g., LIBOR yield curves, credit spreads). Valuations of interest rate swaps may fluctuate considerably from period-to-period due to volatility in underlying interest rates, which are driven by market conditions and the duration of the instrument. Credit adjustments could have a significant impact on the valuations due to changes in credit ratings of the Company or its counterparties. (2) As a result of the Robertex acquisition in 2013, a contingent consideration liability was recorded by the company. Changes in the fair value measurements using significant unobservable inputs (Level 3) during the six months ending June 30, 2018 and July 1, 2017 were as follows: June 30, July 1, Beginning balance $ 25 $ 200 Fair value adjustments 1 (144 ) Ending balance $ 26 $ 56 There were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 during the three and six months ending June 30, 2018 or July 1, 2017. If any, the Company recognizes the transfers at the end of the reporting period. The carrying amounts and estimated fair values of the Company's financial instruments are summarized as follows: June 30, December 30, Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and cash equivalents $ 21 $ 21 $ 19 $ 19 Notes receivable 282 282 282 282 Interest rate swaps 196 196 — — Financial liabilities: Long-term debt and capital leases, including current portion 138,174 136,277 133,257 131,203 Interest rate swaps 861 861 2,229 2,229 The fair values of the Company's long-term debt and capital leases were estimated using market rates the Company believes would be available for similar types of financial instruments and represent level 2 measurements. The fair values of cash and cash equivalents and notes receivable approximate their carrying amounts due to the short-term nature of the financial instruments. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES The Company's earnings, cash flows and financial position are exposed to market risks relating to interest rates. It is the Company's policy to minimize its exposure to adverse changes in interest rates and manage interest rate risks inherent in funding the Company with debt. The Company addresses this risk by maintaining a mix of fixed and floating rate debt and entering into interest rate swaps for a portion of its variable rate debt to minimize interest rate volatility. The following is a summary of the Company's interest rate swaps outstanding as of June 30, 2018: Type Notional Amount Effective Date Fixed Rate Variable Rate Interest rate swap $ 25,000 September 1, 2016 through September 1, 2021 3.105% 1 Month LIBOR Interest rate swap $ 25,000 September 1, 2015 through September 1, 2021 3.304% 1 Month LIBOR Interest rate swap $ 6,838 (1) November 7, 2014 through November 7, 2024 4.500% 1 Month LIBOR Interest rate swap $ 5,215 (2) January 7, 2017 through January 7, 2025 4.300% 1 Month LIBOR (1) Interest rate swap notional amount amortizes by $35 monthly to maturity. (2) Interest rate swap notional amount amortizes by $26 monthly to maturity. The following table summarizes the fair values of derivative instruments included in the Company's financial statements: Location on Consolidated Balance Sheets Fair Value June 30, December 30, Asset Derivatives: Derivatives designated as hedging instruments: Interest rate swaps, current portion Prepaids and other current assets $ 2 — Interest rate swaps, long-term portion Other Assets 194 $ — Total Asset Derivatives $ 196 $ — Liability Derivatives: Derivatives designated as hedging instruments: Interest rate swaps, current portion Accrued Expenses $ 449 $ 842 Interest rate swaps, long-term portion Other Long-Term Liabilities 412 1,387 Total Liability Derivatives $ 861 $ 2,229 The following tables summarize the pre-tax impact of derivative instruments on the Company's financial statements: Amount of Gain or (Loss) Recognized in AOCIL on the effective portion of the Derivative Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Derivatives designated as hedging instruments: Cash flow hedges - interest rate swaps $ 323 $ (359 ) $ 1,128 $ (303 ) Amount of Gain or (Loss) Reclassified from AOCIL on the effective portion into Income (1)(2) Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Derivatives designated as hedging instruments: Cash flow hedges - interest rate swaps $ (177 ) $ (324 ) $ (406 ) $ (683 ) (1) The amount of gain (loss) reclassified from AOCIL is included in interest expense on the Company's financial statements. (2) The amount of loss expected to be reclassified from AOCIL into earnings during the next 12 months subsequent to June 30, 2018 is $447 . The amount of gain (loss) recognized in income on the ineffective portion of interest rate swaps, if any, is included in other expense, net on the Company's Consolidated Condensed Statements of Operations. There was no ineffective portion for the periods presented. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Defined Contribution Plans The Company sponsors a 401(k) defined contribution plan that covers approximately 86% of the Company's current associates. This plan includes a mandatory Company match on the first 1% of participants' contributions. The Company matches the next 2% of participants' contributions if the Company meets prescribed earnings levels. The plan also provides for additional Company contributions above the 3% level if the Company attains certain additional performance targets. Matching contribution (credit) expense for this 401(k) plan was $(33) and $245 for the three months ended June 30, 2018 and July 1, 2017, respectively, and $231 and $478 for the six months ended June 30, 2018 and July 1, 2017, respectively. The reduction in the matching contribution expense for the three months ended June 30, 2018 was a result of revising the estimated match for the year. Additionally, the Company sponsors a 401(k) defined contribution plan that covers approximately 14% of the Company's current associates at one facility who are under a collective-bargaining agreement. Under this plan, the Company generally matches participants' contributions, on a sliding scale, up to a maximum of 2.75% of the participant's earnings. Matching contribution expense for the collective-bargaining 401(k) plan was $38 and $42 for the three months ended June 30, 2018 and July 1, 2017, respectively, and $67 and $60 for the six months ended June 30, 2018 and July 1, 2017, respectively. Non-Qualified Retirement Savings Plan The Company sponsors a non-qualified retirement savings plan that allows eligible associates to defer a specified percentage of their compensation. The obligations owed to participants under this plan were $15,462 at June 30, 2018 and $17,010 at December 30, 2017 and are included in other long-term liabilities in the Company's Consolidated Condensed Balance Sheets. The obligations are unsecured general obligations of the Company and the participants have no right, interest or claim in the assets of the Company, except as unsecured general creditors. The Company utilizes a Rabbi Trust to hold, invest and reinvest deferrals and contributions under the plan. Amounts are invested in Company-owned life insurance in the Rabbi Trust and the cash surrender value of the policies was $16,410 at June 30, 2018 and $18,232 at December 30, 2017 and is included in other assets in the Company's Consolidated Condensed Balance Sheets. Multi-Employer Pension Plan The Company contributes to a multi-employer pension plan under the terms of a collective-bargaining agreement that covers its union-represented employees. Expenses related to the multi-employer pension plan were $81 and $85 for the three months ended June 30, 2018 and July 1, 2017, respectively, and $173 and $151 for the six months ended June 30, 2018 and July 1, 2017, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On December 22, 2017, the President signed the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act, among other things, lowered the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. While the Company has substantially completed its provisional analysis of the income tax effects of the Tax Act and recorded a reasonable estimate of such effects during the fourth quarter of 2017, the charge related to the Tax Act may differ, possibly materially, due to, among other things, further refinement of its calculations, changes in interpretations and assumptions that the Company has made or additional guidance that may be issued related to the Tax Act. Pursuant to Staff Accounting Bulletin No. 118, the Company will complete its analysis over a one-year measurement period from the enactment date, and any adjustments during this measurement period will be included in income from continuing operations as an adjustment to income tax expense in the reporting period when such adjustments are determined. The benefit rate for the six months ending June 30, 2018 was 3.8% compared with an effective income tax rate of 38.6% for the six months ending July 1, 2017. During the fourth quarter of 2017, the Company recorded a full valuation allowance against the deferred tax assets resulting in only refundable credits and a small amount of state taxes being recognized in the tax benefit for the first half of 2018. The six months ended July 1, 2017 included $164 of tax expense related to the adoption of ASU No. 2016-09 which requires a shortfall of tax benefits related to stock compensation to be recognized in income tax expense instead of additional paid-in capital. The Company is in a net deferred tax liability position of $1,120 and $1,105 at June 30, 2018 and December 30, 2017, respectively, which is included in other long-term liabilities in the Company's Consolidated Balance Sheets. The Company accounts for uncertainty in income tax positions according to FASB guidance relating to uncertain tax positions. Unrecognized tax benefits were $424 and $414 at June 30, 2018 and December 30, 2017, respectively. Such benefits, if recognized, would affect the Company's effective tax rate. There were no significant interest or penalties accrued as of June 30, 2018 and December 30, 2017. The Company and its subsidiaries are subject to United States federal income taxes, as well as income taxes in a number of state jurisdictions. The tax years subsequent to 2013 remain open to examination for U.S. federal income taxes. The majority of state jurisdictions remain open for tax years subsequent to 2013. A few state jurisdictions remain open to examination for tax years subsequent to 2012. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE The Company's unvested stock awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are considered participating securities and are included in the computation of earnings per share. Accounting guidance requires additional disclosure of earnings (loss) per share for common stock and unvested share-based payment awards, separately disclosing distributed and undistributed earnings. Undistributed earnings represent earnings that were available for distribution but were not distributed. Common stock and unvested share-based payment awards earn dividends equally. All earnings were undistributed in all periods presented. The following table sets forth the computation of basic and diluted earnings (loss) per share from continuing operations: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Basic earnings (loss) per share: Income (loss) from continuing operations $ (1,972 ) $ 1,226 $ (4,857 ) $ 650 Less: Allocation of earnings to participating securities — (31 ) — (31 ) Income (loss) from continuing operations available to common shareholders - basic $ (1,972 ) $ 1,195 $ (4,857 ) $ 619 Basic weighted-average shares outstanding (1) 15,763 15,707 15,739 15,690 Basic earnings (loss) per share - continuing operations $ (0.13 ) $ 0.08 $ (0.31 ) $ 0.04 Diluted earnings (loss) per share: Income (loss) from continuing operations available to common shareholders - basic $ (1,972 ) $ 1,195 $ (4,857 ) $ 619 Add: Undistributed earnings reallocated to unvested shareholders — — — — Income (loss) from continuing operations available to common shareholders - basic $ (1,972 ) $ 1,195 $ (4,857 ) $ 619 Basic weighted-average shares outstanding (1) 15,763 15,707 15,739 15,690 Effect of dilutive securities: Stock options (2) — — — — Directors' stock performance units (2) — 119 — 115 Diluted weighted-average shares outstanding (1)(2) 15,763 15,826 15,739 15,805 Diluted earnings (loss) per share - continuing operations $ (0.13 ) $ 0.08 $ (0.31 ) $ 0.04 (1) Includes Common and Class B Common shares, excluding 675 thousand unvested participating securities. (2) Shares issuable under stock option plans where the exercise price is greater than the average market price of the Company's Common Stock during the relevant period and directors' stock performance units have been excluded to the extent they are anti-dilutive. Aggregate shares excluded for the three and six months ended June 30, 2018 were 426 thousand and for the three and six months ended July 1, 2017 were 307 thousand. |
Stock Compensation Expense
Stock Compensation Expense | 6 Months Ended |
Jun. 30, 2018 | |
Share-based Compensation [Abstract] | |
Stock Compensation Expense | STOCK COMPENSATION EXPENSE The Company recognizes compensation expense relating to share-based payments based on the fair value of the equity instrument issued and records such expense in selling and administrative expenses in the Company's Consolidated Condensed Financial Statements. The number of shares to be issued is determined by dividing the specified dollar value of the award by the market value per share on the grant date. The Company's stock compensation expense was $228 and $455 for the three and six months ended June 30, 2018, respectively, and $201 and $488 for the three and six months ended July 1, 2017, respectively. On March 12, 2018, the Company granted 297,292 shares of restricted stock to certain key employees of the Company. The grant-date fair value of the awards was $832 , or $2.80 per share, and will be recognized as stock compensation expense over a weighted-average period of 6.1 years from the date the awards were granted. Each award is subject to a continued service condition. The fair value of each share of restricted stock awarded was equal to the market value of a share of the Company's Common Stock on the grant date. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Components of accumulated other comprehensive income (loss), net of tax, are as follows: Interest Rate Swaps Post-Retirement Liabilities Total Balance at December 30, 2017 (1,587 ) 288 (1,299 ) Unrealized gain on interest rate swaps 1,128 — 1,128 Reclassification of loss into earnings from interest rate swaps 406 — 406 Reclassification of net actuarial gain into earnings from postretirement benefit plans — (15 ) (15 ) Reclassification of prior service credits into earnings from postretirement benefit plans — (2 ) (2 ) Balance at June 30, 2018 $ (53 ) $ 271 $ 218 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments and Contingencies The Company assesses its exposure related to legal matters, including those pertaining to product liability, safety and health matters and other items that arise in the regular course of its business. If the Company determines that it is probable a loss has been incurred, the amount of the loss, or an amount within the range of loss, that can be reasonably estimated will be recorded. Environmental Remediation The Company accrues for losses associated with environmental remediation obligations when such losses are probable and estimable. Remediation obligations are accrued based on the latest available information and are recorded at undiscounted amounts. The Company regularly monitors the progress of environmental remediation. If studies indicate that the cost of remediation has changed from the previous estimate, an adjustment to the liability would be recorded in the period in which such determination is made. (See Note 21). Legal Proceedings The Company has been sued, together with the 3M Company and approximately 30 other carpet manufacturers, by the Gadsden (Alabama) Water Works in the circuit court of Etowah County Alabama [The Water Works and Sewer Board of the City of Gadsden v. 3M Company, et al, civil action No. 31-CV-2016-900676.00] and by the Town of Centre (Alabama) Water Works in the circuit court of Cherokee County Alabama [The Water Works and Sewer Board of the Town of Centre v. 3M Company, et al, civil action No. 13-CV-2017-900049.00]. Both cases seek monetary damages and injunctive relief related to the use of certain chemical compounds in the manufacture and finishing of carpet products “in and around Dalton Georgia.” On motion of the defendants, the cases were removed to the U.S. District Court for the Northern District of Alabama (Middle Division) Case No. 4:16-CV-01755-SGC and Case No. 4:17-CV-01026-KOB. Subsequently, the Gadsden Water Works filed a motion to have the case remanded back to the state court and such motion has been granted. The lawsuits allege that perflourinated compounds (“PFC”), perflourinated acid (“PFOA”) and perfluorooctane sulfonate (“PFOS”) manufactured by 3M were used in certain finishing and treatment processes by the defendants and, as a consequence of such use, were subsequently either discharged into or leached into the water systems around Dalton, Georgia. The Complaints seeks damages that exceed $10 , but are otherwise unspecified in amount in addition to injunctive relief and punitive damages. The Company intends to defend the matters vigorously and is unable to estimate the potential exposure to loss, if any, at this time. As of June 25, 2018, the Company and the Class Representative, as a result of court ordered mediation, have agreed to a Memorandum of Understanding regarding settlement of the class action litigation styled Carlos Garcia v. Fabrica International, Inc. et al Orange County Superior Court Case No. 30-2017-00949461-CU-OE-CXC. The parties have agreed during the quarter to file a motion for approval of a memorandum of understanding with the court in which the case is pending, and to finalize a definitive settlement agreement subject to court approval. The required court approval of the settlement is expected to occur within the next quarter. During the quarter ended June 30, 2018, the Company has recorded costs of approximately $1,514 to reflect our estimate of the costs related to such issues. The Company is one of multiple parties to a current lawsuit filed in Madison County Illinois styled Danny Atkins and Pamela Atkins, Pltfs., vs. Aurora Pump Company, et al. No. 18-L-2. The lawsuit entails a claim for damages to be determined in excess of $50 filed on behalf of a former employee that alleges that the deceased contracted mesothelioma as a result of exposure to asbestos while employed by the Company. Discovery in the matter is ongoing. The Company has denied liability, is defending the matters vigorously and is unable to estimate its potential exposure to loss, if any, at this time. In March of 2018, a similar lawsuit styled Charles Anderson, Pltf., vs. 3M Company, et al, No. 17-L-525 was dismissed. In May of 2018, the lawsuit styled Brenda Bridgeman, Individually and as Special Administrator of the Estate of Robert Bridgeman, Deceased, vs. American Honda Motor Co., Inc., f/k/a Metropolitan Life Insurance Co. et al No. 15-L-374 was placed in the category of "special closed with settlements and bankruptcy claims pending" to all remaining defendants. On April 24th, 2018, subsequent to the end of the first quarter, a law firm claiming to represent one of the Company's shareholders owning 50 shares, sent a request for information concerning the Company's equity incentive plans, and equity awards granted under those plans to the Company's chairman and chief operating officer, alleging that the law firm is investigating “possible breaches of fiduciary duty” in approving such plans and such awards. All such equity plans were approved by shareholders, and all such awards were made in accordance with the applicable terms of the plans. The Company has responded to the request in accordance with applicable law. No claim or suit has been filed. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | OTHER (INCOME) EXPENSE, NET Other operating (income) expense, net is summarized as follows: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Other operating (income) expense, net: Loss on property, plant and equipment disposals 82 41 $ 82 $ 41 (Gain) loss on currency exchanges $ 5 $ (15 ) (3 ) 2 Amortization of intangibles 76 76 153 153 Retirement (income) expense (120 ) 54 (66 ) 72 Settlement of class action litigation (1) 1,514 — 1,514 — Miscellaneous (income) expense (50 ) (170 ) (413 ) (229 ) Other operating (income) expense, net $ 1,507 $ (14 ) $ 1,267 $ 39 (1) See "Note 18 - Commitments and Contingencies" for further explanation. Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Other expense, net: Post-retirement income $ (5 ) $ (5 ) (9 ) (11 ) Miscellaneous (income) expense 6 26 12 29 Other expense, net $ 1 $ 21 $ 3 $ 18 |
Facility Consolidation and Seve
Facility Consolidation and Severance Expenses, Net | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Facility Consolidation and Severance Expenses, Net | FACILITY CONSOLIDATION AND SEVERANCE EXPENSES, NET 2014 Warehousing, Distribution & Manufacturing Consolidation Plan The Company developed a plan to align its warehousing, distribution and manufacturing to support its growth and manufacturing strategy resulting in improved distribution capabilities and customer service. The key element and first major step of this plan was the acquisition of a facility to serve as a finished goods warehouse and a cut-order and distribution center in Adairsville, Georgia. Costs related to the consolidation included moving and relocation expenses, information technology expenses and expenses relating to conversion and realignment of equipment. In addition, this plan included the elimination of both carpet dyeing and yarn dyeing in the Company's Atmore, Alabama facility designed to more fully accommodate the distribution and manufacturing realignment. As a result, the dyeing operations in Atmore were moved to the Company's continuous dyeing facility, skein dyeing operation and other outside dyeing processors. To complete the Warehousing, Distribution & Manufacturing Consolidation Plan, the Company moved its Saraland rug operation from an expiring leased building to an owned facility in March 2016. The Company completed this consolidation plan during 2016. As a result of eliminating its dyeing operations in Atmore, Alabama, the Company disposed of its waste water treatment plant in 2014. Subsequently, after extensive testing, it was determined that the Company still had some contaminants above background levels and installed a soil cap to finalize the cleanup of the site of the Company's former waste water treatment plant. 2015 Corporate Office Consolidation Plan In April 2015, the Company's Board of Directors approved the Corporate Office Consolidation Plan, to cover the costs of consolidating three of the Company's existing leased divisional and corporate offices to a single leased facility located in Dalton, Georgia. The Company paid a fee to terminate one of the leased facilities, did not renew a second facility and vacated the third facility. Related to the vacated facility, the Company recorded the estimated costs related to the fulfillment of its contractual lease obligation and on-going facility maintenance, net of an estimate of sub-lease expectations. Accordingly, if the estimates differ, the Company would record an additional charge or benefit, as appropriate. Costs related to the consolidation included the lease termination fee, contractual lease obligations and moving costs. 2017 Profit Improvement Plan During the fourth quarter of 2017, the Company announced a Profit Improvement Plan to improve profitability through lower cost and streamlined decision making and aligning processes to maximize efficiency. The plan includes consolidating the management of the Company's two commercial brands, Atlas Carpet Mills and Masland Contract, under one management team, sharing operations in sales, marketing, product development and manufacturing. Specific to this plan includes focusing nearly all commercial solution dyed make-to-order production in our Atmore, Alabama operations where the Company has developed such make-to-order capabilities over the last 5 years. Further, the Company is aligning its west coast production facilities, better utilizing its west coast real estate by moving production to its Porterville, California and Atmore, Alabama operations and preparing for more efficient distribution of its west coast products. Furthermore, the Company is re-configuring its east coast distribution facilities to provide more efficient distribution of its products. In addition, the Company had reductions in related support functions such as accounting and information services. Costs related to the facility consolidation plans are summarized as follows: As of June 30, 2018 Accrued Balance at December 30, 2017 2018 Expenses To Date 2018 Cash Payments Accrued Balance at June 30, 2018 Total Costs Incurred To Date Total Expected Costs Warehousing, Distribution & Manufacturing Consolidation Plan $ — $ — $ — $ — $ 7,440 $ 7,440 Corporate Office Consolidation Plan 171 4 40 135 811 811 Profit Improvement Plan $ 334 $ 402 $ 653 $ 83 $ 1,038 $ 1,903 Total All Plans $ 505 $ 406 (1) $ 693 $ 218 $ 9,289 $ 10,154 Accrued Balance at December 31, 2016 2017 Expenses To Date 2017 Cash Payments Accrued Balance at July 1, 2017 Warehousing, Distribution & Manufacturing Consolidation Plan 266 — 204 62 Corporate Office Consolidation Plan 248 — 38 210 Profit Improvement Plan — — — — Totals $ 514 $ — (1 ) $ 242 $ 272 (1) Costs incurred under these plans are classified as "facility consolidation and severance expenses, net" in the Company's Consolidated Condensed Statements of Operations. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS The Company has either sold or discontinued certain operations that are accounted for as "Discontinued Operations" under applicable accounting guidance. Discontinued operations are summarized as follows: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Loss from discontinued operations: Workers' compensation (costs) credits from former textile operations $ 208 $ (82 ) 214 (109 ) Environmental remediation (costs) credits from former textile operations (51 ) (103 ) (79 ) (124 ) Income (loss) from discontinued operations, before taxes $ 157 $ (185 ) 135 (233 ) Income tax benefit — (62 ) — (81 ) Income (loss) from discontinued operations, net of tax $ 157 $ (123 ) $ 135 $ (152 ) Undiscounted reserves are maintained for the self-insured workers' compensation obligations related to the Company's former textile operations. These reserves are administered by a third-party workers' compensation service provider under the supervision of Company personnel. Such reserves are reassessed on a quarterly basis. Pre-tax cost incurred for workers' compensation as a component of discontinued operations primarily represents a change in estimate for each period from unanticipated medical costs associated with the Company's obligations. Reserves for environmental remediation obligations are established on an undiscounted basis. The Company has an accrual for environmental remediation obligations related to discontinued operations of $1,753 as of June 30, 2018 and $1,746 as of December 30, 2017. The liability established represents the Company's best estimate of possible loss and is the reasonable amount to which there is any meaningful degree of certainty given the periods of estimated remediation and the dollars applicable to such remediation for those periods. The actual timeline to remediate, and thus, the ultimate cost to complete such remediation through these remediation efforts, may differ significantly from our estimates. Pre-tax cost for environmental remediation obligations classified as discontinued operations were primarily a result of specific events requiring action and additional expense in each period. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company is a party to a five-year lease with the seller of Atlas Carpet Mills, Inc. to lease three manufacturing facilities as part of the acquisition in 2014. The lessor is controlled by an associate of the Company. Rent paid to the lessor during the three and six months ended June 30, 2018 was $251 and $501 , respectively. Rent paid to the lessor during the three and six months ended July 1, 2017 was $251 and $477 , respectively. The lease was based on current market values for similar facilities. The Company purchases a portion of its product needs in the form of fiber, yarn and carpet from Engineered Floors, an entity substantially controlled by Robert E. Shaw, a shareholder of the Company. An affiliate of Mr. Shaw holds approximately 7.3% of the Company's Common Stock, which represents approximately 3.3% of the total vote of all classes of the Company's Common Stock. Engineered Floors is one of several suppliers of such materials to the Company. Total purchases from Engineered Floors during the three and six months ended June 30, 2018 were approximately $2,855 and $4,570 , respectively; or approximately 3.5% and 2.9% , respectively, of the Company's cost of goods sold. Total purchases from Engineered Floors during the three and six months ended July 1, 2017 were approximately $1,663 and $3,658 , respectively; or approximately 2.1% and 2.4% , respectively, of the Company's cost of goods sold. Purchases from Engineered Floors are based on market value negotiated prices. The Company has no contractual commitments with Mr. Shaw associated with its business relationship with Engineered Floors. Transactions with Engineered Floors are reviewed annually by the Company's board of directors. The Company is a party to a ten-year lease with the Rothman Family Partnership to lease a facility as part of the Robertex acquisition in 2013. The lessor is controlled by an associate of the Company. Rent paid to the lessor during the three and six months ended June 30, 2018 was $69 and $138 , respectively. Rent paid to the lessor during the three and six months ended July 1, 2017 was $67 and $135 , respectively. The lease was based on current market values for similar facilities. In addition, the Company had a note payable to Robert P. Rothman related to the acquisition of Robertex Inc. The note matured on June 30, 2018. (See Note 10). |
Revenue Recognition Policy
Revenue Recognition Policy | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Policy The Company derives its revenues primarily from the sale of floorcovering products and processing services. Revenues are recognized when control of these products or services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products and services. Sales, value add, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. Shipping and handling fees charged to customers are reported within revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. The Company does not have any significant financing components as payment is received at or shortly after the point of sale. The Company determined revenue recognition through the following steps: • Identification of the contract with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the performance obligation is satisfied |
Recent Accounting Pronounceme30
Recent Accounting Pronouncements New Accounting Pronouncements and Changes in Accounting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The Consolidated Balance Sheet as of December 30, 2017 has been adjusted to reflect retrospective application of the new accounting standard as follows: December 30, 2017 As Previously Reported Adjustments As Adjusted ASSETS Prepaids and other current assets $ 3,600 $ 1,069 $ 4,669 LIABILITIES AND STOCKHOLDERS' EQUITY Accrued expenses $ 30,291 $ 1,069 $ 31,360 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue from Contracts with Customers [Table Text Block] | The following table disaggregates the Company’s revenue by end-user markets for the three months and six months ended June 30, 2018 and July 1, 2017: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Residential floorcovering products $ 75,034 $ 72,115 $ 142,129 $ 134,654 Commercial floorcovering products 30,954 34,443 62,242 68,959 Other services 450 629 926 1,115 Total net sales $ 106,438 $ 107,187 $ 205,297 $ 204,728 |
Contract Balances [Table Text Block] | The activity in the advanced deposits for the three and six months ended June 30, 2018 and July 1, 2017 is as follows: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Beginning contract liability $ 5,296 $ 7,572 $ 5,717 $ 8,212 Revenue recognized from contract liabilities included in the beginning balance (4,711 ) (6,246 ) (5,005 ) (7,534 ) Increases due to cash received, net of amounts recognized in revenue during the period 6,139 4,903 6,012 5,551 Ending contract liability $ 6,724 $ 6,229 $ 6,724 $ 6,229 |
Receivables, Net (Tables)
Receivables, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Receivables are summarized as follows: June 30, December 30, Customers, trade $ 46,645 $ 43,683 Other receivables 2,962 2,930 Gross receivables 49,607 46,613 Less: allowance for doubtful accounts (199 ) (133 ) Receivables, net $ 49,408 $ 46,480 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories are summarized as follows: June 30, December 30, Raw materials $ 42,874 $ 39,264 Work-in-process 23,206 24,454 Finished goods 70,136 65,172 Supplies and other 138 143 LIFO reserve (13,971 ) (15,376 ) Inventories, net $ 122,383 $ 113,657 |
Property, Plant and Equipment34
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment consists of the following: June 30, December 30, Land and improvements $ 8,291 $ 7,886 Buildings and improvements 63,349 62,852 Machinery and equipment 188,810 188,971 Assets under construction 1,731 2,443 262,181 262,152 Accumulated depreciation (173,033 ) (168,367 ) Property, plant and equipment, net $ 89,148 $ 93,785 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses are summarized as follows: June 30, December 30, (As Adjusted) Compensation and benefits $ 7,493 $ 9,276 Provision for customer rebates, claims and allowances 8,446 9,820 Advanced customer deposits 6,724 5,717 Outstanding checks in excess of cash 2,259 379 Other 5,989 6,168 Accrued expenses $ 30,911 $ 31,360 |
Product Warranty Reserves (Tabl
Product Warranty Reserves (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | The following is a summary of the Company's product warranty activity: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, (As Adjusted) (As Adjusted) Product warranty reserve at beginning of period $ 1,248 $ 1,357 $ 1,356 $ 1,439 Warranty liabilities accrued 623 491 1,236 895 Warranty liabilities settled (626 ) (490 ) (1,318 ) (906 ) Changes for pre-existing warranty liabilities (2 ) 59 (31 ) (11 ) Product warranty reserve at end of period $ 1,243 $ 1,417 $ 1,243 $ 1,417 |
Long-Term Debt and Credit Arr37
Long-Term Debt and Credit Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following: June 30, December 30, Revolving credit facility $ 106,142 $ 97,708 Notes payable - buildings 12,053 12,419 Acquisition note payable - Robertex — 791 Notes payable - equipment and other 6,224 8,474 Capital lease obligations 14,330 14,530 Deferred financing costs, net (575 ) (665 ) Total long-term debt 138,174 133,257 Less: current portion of long-term debt 7,982 9,811 Long-term debt $ 130,192 $ 123,446 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table reflects the fair values of assets and liabilities measured and recognized at fair value on a recurring basis on the Company's Consolidated Condensed Balance Sheets as of June 30, 2018 and December 30, 2017: June 30, December 30, Fair Value Hierarchy Level Assets: Interest rate swaps (1) $ 196 $ — Level 2 Liabilities: Interest rate swaps (1) $ 861 $ 2,229 Level 2 Contingent consideration (2) 26 25 Level 3 (1) The Company uses certain external sources in deriving the fair value of the interest rate swaps. The interest rate swaps were valued using observable inputs (e.g., LIBOR yield curves, credit spreads). Valuations of interest rate swaps may fluctuate considerably from period-to-period due to volatility in underlying interest rates, which are driven by market conditions and the duration of the instrument. Credit adjustments could have a significant impact on the valuations due to changes in credit ratings of the Company or its counterparties. (2) As a result of the Robertex acquisition in 2013, a contingent consideration liability was recorded by the company. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Changes in the fair value measurements using significant unobservable inputs (Level 3) during the six months ending June 30, 2018 and July 1, 2017 were as follows: June 30, July 1, Beginning balance $ 25 $ 200 Fair value adjustments 1 (144 ) Ending balance $ 26 $ 56 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying amounts and estimated fair values of the Company's financial instruments are summarized as follows: June 30, December 30, Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and cash equivalents $ 21 $ 21 $ 19 $ 19 Notes receivable 282 282 282 282 Interest rate swaps 196 196 — — Financial liabilities: Long-term debt and capital leases, including current portion 138,174 136,277 133,257 131,203 Interest rate swaps 861 861 2,229 2,229 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | The following is a summary of the Company's interest rate swaps outstanding as of June 30, 2018: Type Notional Amount Effective Date Fixed Rate Variable Rate Interest rate swap $ 25,000 September 1, 2016 through September 1, 2021 3.105% 1 Month LIBOR Interest rate swap $ 25,000 September 1, 2015 through September 1, 2021 3.304% 1 Month LIBOR Interest rate swap $ 6,838 (1) November 7, 2014 through November 7, 2024 4.500% 1 Month LIBOR Interest rate swap $ 5,215 (2) January 7, 2017 through January 7, 2025 4.300% 1 Month LIBOR (1) Interest rate swap notional amount amortizes by $35 monthly to maturity. (2) Interest rate swap notional amount amortizes by $26 monthly to maturity. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table summarizes the fair values of derivative instruments included in the Company's financial statements: Location on Consolidated Balance Sheets Fair Value June 30, December 30, Asset Derivatives: Derivatives designated as hedging instruments: Interest rate swaps, current portion Prepaids and other current assets $ 2 — Interest rate swaps, long-term portion Other Assets 194 $ — Total Asset Derivatives $ 196 $ — Liability Derivatives: Derivatives designated as hedging instruments: Interest rate swaps, current portion Accrued Expenses $ 449 $ 842 Interest rate swaps, long-term portion Other Long-Term Liabilities 412 1,387 Total Liability Derivatives $ 861 $ 2,229 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following tables summarize the pre-tax impact of derivative instruments on the Company's financial statements: Amount of Gain or (Loss) Recognized in AOCIL on the effective portion of the Derivative Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Derivatives designated as hedging instruments: Cash flow hedges - interest rate swaps $ 323 $ (359 ) $ 1,128 $ (303 ) Amount of Gain or (Loss) Reclassified from AOCIL on the effective portion into Income (1)(2) Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Derivatives designated as hedging instruments: Cash flow hedges - interest rate swaps $ (177 ) $ (324 ) $ (406 ) $ (683 ) (1) The amount of gain (loss) reclassified from AOCIL is included in interest expense on the Company's financial statements. (2) The amount of loss expected to be reclassified from AOCIL into earnings during the next 12 months subsequent to June 30, 2018 is $447 . |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Schedule of Earnings Per Share Reconciliation [Table Text Block] | The following table sets forth the computation of basic and diluted earnings (loss) per share from continuing operations: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Basic earnings (loss) per share: Income (loss) from continuing operations $ (1,972 ) $ 1,226 $ (4,857 ) $ 650 Less: Allocation of earnings to participating securities — (31 ) — (31 ) Income (loss) from continuing operations available to common shareholders - basic $ (1,972 ) $ 1,195 $ (4,857 ) $ 619 Basic weighted-average shares outstanding (1) 15,763 15,707 15,739 15,690 Basic earnings (loss) per share - continuing operations $ (0.13 ) $ 0.08 $ (0.31 ) $ 0.04 Diluted earnings (loss) per share: Income (loss) from continuing operations available to common shareholders - basic $ (1,972 ) $ 1,195 $ (4,857 ) $ 619 Add: Undistributed earnings reallocated to unvested shareholders — — — — Income (loss) from continuing operations available to common shareholders - basic $ (1,972 ) $ 1,195 $ (4,857 ) $ 619 Basic weighted-average shares outstanding (1) 15,763 15,707 15,739 15,690 Effect of dilutive securities: Stock options (2) — — — — Directors' stock performance units (2) — 119 — 115 Diluted weighted-average shares outstanding (1)(2) 15,763 15,826 15,739 15,805 Diluted earnings (loss) per share - continuing operations $ (0.13 ) $ 0.08 $ (0.31 ) $ 0.04 (1) Includes Common and Class B Common shares, excluding 675 thousand unvested participating securities. (2) Shares issuable under stock option plans where the exercise price is greater than the average market price of the Company's Common Stock during the relevant period and directors' stock performance units have been excluded to the extent they are anti-dilutive. Aggregate shares excluded for the three and six months ended June 30, 2018 were 426 thousand and for the three and six months ended July 1, 2017 were 307 thousand. |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Components of accumulated other comprehensive income (loss), net of tax, are as follows: Interest Rate Swaps Post-Retirement Liabilities Total Balance at December 30, 2017 (1,587 ) 288 (1,299 ) Unrealized gain on interest rate swaps 1,128 — 1,128 Reclassification of loss into earnings from interest rate swaps 406 — 406 Reclassification of net actuarial gain into earnings from postretirement benefit plans — (15 ) (15 ) Reclassification of prior service credits into earnings from postretirement benefit plans — (2 ) (2 ) Balance at June 30, 2018 $ (53 ) $ 271 $ 218 |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | Other operating (income) expense, net is summarized as follows: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Other operating (income) expense, net: Loss on property, plant and equipment disposals 82 41 $ 82 $ 41 (Gain) loss on currency exchanges $ 5 $ (15 ) (3 ) 2 Amortization of intangibles 76 76 153 153 Retirement (income) expense (120 ) 54 (66 ) 72 Settlement of class action litigation (1) 1,514 — 1,514 — Miscellaneous (income) expense (50 ) (170 ) (413 ) (229 ) Other operating (income) expense, net $ 1,507 $ (14 ) $ 1,267 $ 39 (1) See "Note 18 - Commitments and Contingencies" for further explanation. |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Other expense, net: Post-retirement income $ (5 ) $ (5 ) (9 ) (11 ) Miscellaneous (income) expense 6 26 12 29 Other expense, net $ 1 $ 21 $ 3 $ 18 |
Facility Consolidation and Se43
Facility Consolidation and Severance Expenses, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | Costs related to the facility consolidation plans are summarized as follows: As of June 30, 2018 Accrued Balance at December 30, 2017 2018 Expenses To Date 2018 Cash Payments Accrued Balance at June 30, 2018 Total Costs Incurred To Date Total Expected Costs Warehousing, Distribution & Manufacturing Consolidation Plan $ — $ — $ — $ — $ 7,440 $ 7,440 Corporate Office Consolidation Plan 171 4 40 135 811 811 Profit Improvement Plan $ 334 $ 402 $ 653 $ 83 $ 1,038 $ 1,903 Total All Plans $ 505 $ 406 (1) $ 693 $ 218 $ 9,289 $ 10,154 Accrued Balance at December 31, 2016 2017 Expenses To Date 2017 Cash Payments Accrued Balance at July 1, 2017 Warehousing, Distribution & Manufacturing Consolidation Plan 266 — 204 62 Corporate Office Consolidation Plan 248 — 38 210 Profit Improvement Plan — — — — Totals $ 514 $ — (1 ) $ 242 $ 272 (1) Costs incurred under these plans are classified as "facility consolidation and severance expenses, net" in the Company's Consolidated Condensed Statements of Operations. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | Discontinued operations are summarized as follows: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Loss from discontinued operations: Workers' compensation (costs) credits from former textile operations $ 208 $ (82 ) 214 (109 ) Environmental remediation (costs) credits from former textile operations (51 ) (103 ) (79 ) (124 ) Income (loss) from discontinued operations, before taxes $ 157 $ (185 ) 135 (233 ) Income tax benefit — (62 ) — (81 ) Income (loss) from discontinued operations, net of tax $ 157 $ (123 ) $ 135 $ (152 ) |
Recent Accounting Pronounceme45
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Prepaids and other current assets | $ 7,155 | $ 4,669 |
Accrued expenses | $ 30,911 | 31,360 |
Restatement Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Prepaids and other current assets | 1,069 | |
Accrued expenses | 1,069 | |
Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Prepaids and other current assets | 3,600 | |
Accrued expenses | $ 30,291 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
NET SALES | $ 106,438 | $ 107,187 | $ 205,297 | $ 204,728 |
Residential Floorcovering Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
NET SALES | 75,034 | 72,115 | 142,129 | 134,654 |
Commercial Floorcovering Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
NET SALES | 30,954 | 34,443 | 62,242 | 68,959 |
Other Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
NET SALES | $ 450 | $ 629 | $ 926 | $ 1,115 |
Revenue (Contract Balances) (De
Revenue (Contract Balances) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Revenue from Contract with Customer [Abstract] | ||||
Beginning contract liability | $ 5,296 | $ 7,572 | $ 5,717 | $ 8,212 |
Revenue recognized from contract liabilities included in the beginning balance | (4,711) | (6,246) | (5,005) | (7,534) |
Increases due to cash received, net of amounts recognized in revenue during the period | 6,139 | 4,903 | 6,012 | 5,551 |
Ending contract liability | $ 6,724 | $ 6,229 | $ 6,724 | $ 6,229 |
Revenue (Bill-and-Hold Arrangem
Revenue (Bill-and-Hold Arrangement) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Bill-and-Hold Arrangement | $ 630 | |
Percentage of Bill and Hold Inventory Shipped to Customer | 62.00% |
Receivables, Net (Details)
Receivables, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Customers, trade | $ 46,645 | $ 46,645 | $ 43,683 | ||
Other receivables | 2,962 | 2,962 | 2,930 | ||
Gross receivables | 49,607 | 49,607 | 46,613 | ||
Less: allowance for doubtful accounts | (199) | (199) | (133) | ||
Receivables, net | 49,408 | 49,408 | $ 46,480 | ||
Allowance for doubtful accounts [Abstract] | |||||
Bad debt expense | $ 57 | $ (13) | $ 117 | $ 17 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 42,874 | $ 39,264 |
Work-in-process | 23,206 | 24,454 |
Finished goods | 70,136 | 65,172 |
Supplies and other | 138 | 143 |
LIFO reserve | (13,971) | (15,376) |
Inventories, net | $ 122,383 | $ 113,657 |
Property, Plant and Equipment51
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |||||
Land and improvements | $ 8,291 | $ 8,291 | $ 7,886 | ||
Buildings and improvements | 63,349 | 63,349 | 62,852 | ||
Machinery and equipment | 188,810 | 188,810 | 188,971 | ||
Assets under construction | 1,731 | 1,731 | 2,443 | ||
Property, plant and equipment, gross | 262,181 | 262,181 | 262,152 | ||
Accumulated depreciation | (173,033) | (173,033) | (168,367) | ||
Property, plant and equipment, net | 89,148 | 89,148 | $ 93,785 | ||
Depreciation | $ 3,036 | $ 3,068 | $ 6,051 | $ 6,150 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 3,389 | $ 3,389 | $ 3,389 | ||
Finite-Lived Intangible Assets, Net | 2,309 | 2,309 | $ 2,461 | ||
Amortization of intangibles | $ 76 | $ 76 | $ 153 | $ 153 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Payables and Accruals [Abstract] | ||
Compensation and benefits | $ 7,493 | $ 9,276 |
Provision for customer rebates, claims and allowances | 8,446 | 9,820 |
Advanced customer deposits | 6,724 | 5,717 |
Outstanding checks in excess of cash | 2,259 | 379 |
Other | 5,989 | 6,168 |
Accrued expenses | $ 30,911 | $ 31,360 |
Product Warranty Reserves (Deta
Product Warranty Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Product Warranties Disclosures [Abstract] | ||||
Product warranty reserve at beginning of period | $ 1,248 | $ 1,357 | $ 1,356 | $ 1,439 |
Warranty liabilities accrued | 623 | 491 | 1,236 | 895 |
Warranty liabilities settled | (626) | (490) | (1,318) | (906) |
Changes for pre-existing warranty liabilities | (2) | 59 | (31) | (11) |
Product warranty reserve at end of period | $ 1,243 | $ 1,417 | $ 1,243 | $ 1,417 |
Long-Term Debt and Credit Arr55
Long-Term Debt and Credit Arrangements (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 106,142 | $ 97,708 |
Notes payable - buildings | 12,053 | 12,419 |
Acquisition note payable - Robertex | 0 | 791 |
Notes payable - equipment and other | 6,224 | 8,474 |
Capital lease obligations | 14,330 | 14,530 |
Deferred financing costs, net | (575) | (665) |
Total long-term debt | 138,174 | 133,257 |
Less: current portion of long-term debt | 7,982 | 9,811 |
Long-term debt | $ 130,192 | $ 123,446 |
Long-Term Debt and Credit Arr56
Long-Term Debt and Credit Arrangements (Revolving Credit Facility) (Details) - Amended Revolving Credit Facility [Member] $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)Rate | Dec. 30, 2017Rate | |
Line of Credit Facility [Line Items] | ||
Maximum Borrowing Capacity | $ | $ 150,000 | |
Basis Spread on Variable Rate at End of Period | 1.75% | |
Commitment Fee Percentage | 0.375% | |
Debt, Weighted Average Interest Rate | 4.41% | 4.12% |
Current Borrowing Capacity Accessible to the Company | $ | $ 10,280 | |
Line of Credit Facility, Amended Minimum Borrowing Capacity for No Financial Covenants | $ | 16,500 | |
Remaining Borrowing Capacity | $ | $ 26,780 | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Fixed Charge Coverage Ratio | 1.1 | |
Alternative [Member] | Minimum [Member] | Libor [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis Spread on Variable Rate | 1.50% | |
Alternative [Member] | Maximum [Member] | Libor [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis Spread on Variable Rate | 2.00% | |
Alternative B [Member] | Federal Funds [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis Spread on Variable Rate | 0.50% | |
Alternative B [Member] | Daily Libor [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis Spread on Variable Rate | 1.00% | |
Alternative B [Member] | Minimum [Member] | Daily Libor [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis Spread on Variable Rate | 0.50% | |
Alternative B [Member] | Maximum [Member] | Daily Libor [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis Spread on Variable Rate | 1.00% |
Long-Term Debt and Credit Arr57
Long-Term Debt and Credit Arrangements (Notes Payable - Buildings) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2018 | Dec. 30, 2017 | Jan. 23, 2015 | Nov. 07, 2014 | |
Debt Instrument [Line Items] | ||||
Notes payable - buildings | $ 12,053 | $ 12,419 | ||
Building - Adairsville [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable - buildings | $ 8,330 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | |||
Debt Instrument, Periodic Payment, Principal | 35 | |||
Final Payment on Debt Instument | $ 4,165 | |||
Fixed Interest Rate | 4.50% | |||
Building - Saraland [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable - buildings | $ 6,290 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | |||
Debt Instrument, Periodic Payment, Principal | $ 26 | |||
Final Payment on Debt Instument | $ 3,145 | |||
Fixed Interest Rate | 4.30% |
Long-Term Debt and Credit Arr58
Long-Term Debt and Credit Arrangements (Acquisition Note Payable - Robertex) (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018USD ($)yr | Dec. 30, 2017USD ($) | Jul. 01, 2013USD ($)Rate | |
Debt Instrument [Line Items] | |||
Acquisition note payable - Robertex | $ 0 | $ 791 | |
Note Payable - Robertex Acquisition [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 4.50% | ||
Acquisition note payable - Robertex | $ 3,749 | $ 4,000 | |
Term of Note Payable | yr | 5 | ||
Debt Instrument, Annual Principal Payment | $ 800 |
Long-Term Debt and Credit Arr59
Long-Term Debt and Credit Arrangements (Notes Payable - Equipment and Other) (Details) - Equipment Note Payable [Member] | 6 Months Ended |
Jun. 30, 2018yrRate | |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | Rate | 1.00% |
Term of Note Payable | yr | 1 |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | Rate | 7.68% |
Term of Note Payable | yr | 7 |
Long-Term Debt and Credit Arr60
Long-Term Debt and Credit Arrangements (Capital Lease Obligations) (Details) - Capital Lease Obligations [Member] | 6 Months Ended |
Jun. 30, 2018yrRate | |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | Rate | 3.55% |
Term of Capital Lease Obligation (in months) | yr | 3 |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | Rate | 7.76% |
Term of Capital Lease Obligation (in months) | yr | 7 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements - Assets and Liabilities Measured on Recurring and Nonrecurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 | |
Fair Value, Inputs, Level 2 [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Interest rate swaps | [1] | $ 196 | $ 0 |
Liabilities, Fair Value Disclosure [Abstract] | |||
Interest rate swaps | [1] | 861 | 2,229 |
Fair Value, Inputs, Level 3 [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration | [2] | $ 26 | $ 25 |
[1] | The Company uses certain external sources in deriving the fair value of the interest rate swaps. The interest rate swaps were valued using observable inputs (e.g., LIBOR yield curves, credit spreads). Valuations of interest rate swaps may fluctuate considerably from period-to-period due to volatility in underlying interest rates, which are driven by market conditions and the duration of the instrument. Credit adjustments could have a significant impact on the valuations due to changes in credit ratings of the Company or its counterparties. | ||
[2] | As a result of the Robertex acquisition in 2013, a contingent consideration liability was recorded by the company. |
Fair Value Measurements (Fair62
Fair Value Measurements (Fair Value Measurements - Liabilities Measured on Recurring Basis Unobservable Input Reconciliation) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 25 | $ 200 |
Fair value adjustments | 1 | (144) |
Ending balance | $ 26 | $ 56 |
Fair Value Measurements (Fair63
Fair Value Measurements (Fair Value Measurements - Carrying Amount and Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and cash equivalents | $ 21 | $ 19 |
Notes receivable | 282 | 282 |
Interest rate swaps | 196 | 0 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt and capital leases, including current portion | 138,174 | 133,257 |
Interest rate swaps | 861 | 2,229 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and cash equivalents | 21 | 19 |
Notes receivable | 282 | 282 |
Interest rate swaps | 196 | 0 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt and capital leases, including current portion | 136,277 | 131,203 |
Interest rate swaps | $ 861 | $ 2,229 |
Derivatives (Summary of Derivat
Derivatives (Summary of Derivative Instruments) (Details) - Interest Rate Swap [Member] $ in Thousands | Jun. 30, 2018USD ($)Rate | |
Effective September 1, 2016 through September 1, 2021 [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 25,000 | |
Fixed Interest Rate | Rate | 3.105% | |
Effective September 1, 2015 through September 1, 2021 [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 25,000 | |
Fixed Interest Rate | Rate | 3.304% | |
Effective November 7, 2014 through November 7, 2024 [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 6,838 | [1] |
Fixed Interest Rate | Rate | 4.50% | |
Derivative, Amortizing Notional Amount | $ 35 | |
Effective January 7, 2017 through January 7, 2025 [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 5,215 | [2] |
Fixed Interest Rate | Rate | 4.30% | |
Derivative, Amortizing Notional Amount | $ 26 | |
[1] | Interest rate swap notional amount amortizes by $35 monthly to maturity. | |
[2] | Interest rate swap notional amount amortizes by $26 monthly to maturity. |
Derivatives (Derivatives - Fair
Derivatives (Derivatives - Fair Value and Designation) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Derivative Asset, Fair Value, Net [Abstract] | ||
Interest rate swaps | $ 196 | $ 0 |
Derivative Liability, Fair Value, Net [Abstract] | ||
Interest rate swaps | 861 | 2,229 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivative Asset, Fair Value, Net [Abstract] | ||
Interest rate swaps | 2 | 0 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Assets [Member] | ||
Derivative Asset, Fair Value, Net [Abstract] | ||
Interest rate swaps | 194 | 0 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Accrued Liabilities [Member] | ||
Derivative Liability, Fair Value, Net [Abstract] | ||
Interest rate swaps | 449 | 842 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Liabilities [Member] | ||
Derivative Liability, Fair Value, Net [Abstract] | ||
Interest rate swaps | $ 412 | $ 1,387 |
Derivatives (Schedule of Deriva
Derivatives (Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gain (loss) on interest rate swaps | $ 323 | $ (359) | $ 1,128 | $ (303) | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gain (loss) on interest rate swaps | 323 | (359) | 1,128 | (303) | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Reclassified from AOCIL on the effective portion into Income | [1],[2] | (177) | (324) | (406) | (683) |
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | 447 | 447 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Expense [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Recognized on the ineffective portion in Income on interest rate swaps | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | The amount of gain (loss) reclassified from AOCIL is included in interest expense on the Company's financial statements. | ||||
[2] | The amount of loss expected to be reclassified from AOCIL into earnings during the next 12 months subsequent to June 30, 2018 is $447. |
Employee Benefit Plans (Defined
Employee Benefit Plans (Defined Contribution Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Non-Collective-Bargaining Plan [Member] | ||||
Defined Contribution Plans [Line Items] | ||||
Percentage of Employees Covered | 86.00% | |||
Employer Matching Contribution, Percentage | 1.00% | |||
Employer Matching Contribution, Discretionary Percentage | 2.00% | |||
Maximum Annual Contribution Per Employee, Percentage | 3.00% | |||
Defined Contribution Plan, Increase (Decrease), Cost | $ (33) | $ 245 | $ 231 | $ 478 |
Collective-Bargaining Plan [Member] | ||||
Defined Contribution Plans [Line Items] | ||||
Percentage of Employees Covered | 14.00% | |||
Maximum Annual Contribution Per Employee, Percentage | 2.75% | |||
Cost Recognized | $ 38 | $ 42 | $ 67 | $ 60 |
Employee Benefit Plans (Non-qua
Employee Benefit Plans (Non-qualified Retirement Savings Plan) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Retirement Benefits [Abstract] | ||
Liability to Participants | $ 15,462 | $ 17,010 |
Cash Surrender Value of Life Insurance | $ 16,410 | $ 18,232 |
Employee Benefit Plans (Multi-E
Employee Benefit Plans (Multi-Employer Pension Plan) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Multiemployer Plans [Line Items] | ||||
Contributions | $ 81 | $ 85 | $ 173 | $ 151 |
Income Taxes (Income Tax Reconc
Income Taxes (Income Tax Reconciliation, Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal Statutory Income Tax Rate | 35.00% | ||
Federal Statutory Income Tax Rate Effective January 1, 2018 | 21.00% | ||
Effective income tax rate | 3.80% | 38.60% | |
Stock-based compensation | $ 164 | ||
Deferred Tax Liabilities, Net | $ 1,120 | $ 1,105 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits | $ 424 | $ 414 |
Income tax penalties and interest accrued | $ 0 | $ 0 |
Earnings (Loss) Per Share (Earn
Earnings (Loss) Per Share (Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | ||
Basic earnings (loss) per share: | |||||
Income (loss) from continuing operations | $ (1,972) | $ 1,226 | $ (4,857) | $ 650 | |
Less: Allocation of earnings to participating securities | 0 | (31) | 0 | (31) | |
Income (loss) from continuing operations available to common shareholders - basic | $ (1,972) | $ 1,195 | $ (4,857) | $ 619 | |
Basic weighted-average shares outstanding (1) | [1] | 15,763 | 15,707 | 15,739 | 15,690 |
Basic earnings (loss) per share - continuing operations | $ (0.13) | $ 0.08 | $ (0.31) | $ 0.04 | |
Diluted earnings (loss) per share: | |||||
Income (loss) from continuing operations available to common shareholders - basic | $ (1,972) | $ 1,195 | $ (4,857) | $ 619 | |
Add: Undistributed earnings reallocated to unvested shareholders | 0 | 0 | 0 | 0 | |
Income (loss) from continuing operations available to common shareholders - basic | $ (1,972) | $ 1,195 | $ (4,857) | $ 619 | |
Effect of dilutive securities: | |||||
Stock options (2) | [2] | 0 | 0 | 0 | 0 |
Directors' stock performance units (2) | [2] | 0 | 119 | 0 | 115 |
Diluted weighted-average shares outstanding (1)(2) | [1],[2] | 15,763 | 15,826 | 15,739 | 15,805 |
Diluted earnings (loss) per share - continuing operations | $ (0.13) | $ 0.08 | $ (0.31) | $ 0.04 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 675 | 675 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 426 | 307 | 426 | 307 | |
[1] | Includes Common and Class B Common shares, excluding 675 thousand unvested participating securities | ||||
[2] | Shares issuable under stock option plans where the exercise price is greater than the average market price of the Company's Common Stock during the relevant period and directors' stock performance units have been excluded to the extent they are anti-dilutive. Aggregate shares excluded for the three and six months ended June 30, 2018 were 426 thousand and for the three and six months ended July 1, 2017 were 307 thousand. |
Stock Compensation Expense (Det
Stock Compensation Expense (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Mar. 12, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ 228 | $ 201 | $ 455 | $ 488 | |
Restricted Stock Granted in Period | 297,292 | ||||
Grant Date Fair Value of Restricted Stock | $ 832 | ||||
Weighted Average Grant Date Fair Value of Resticted Stock | $ 2.80 | ||||
Award Vesting Period | 6 years 1 month |
Accumulated Other Comprehensi74
Accumulated Other Comprehensive Income (Loss) (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) - total | $ (1,299) | |||
Unrealized gain on interest rate swaps, net | $ 323 | $ (223) | 1,128 | $ (188) |
Reclassification of loss into earnings from interest rate swaps, net | 177 | 201 | 406 | 423 |
Reclassification of net actuarial gain into earnings from postretirement benefit plans, net | (7) | (5) | (15) | (10) |
Reclassification of prior service credits into earnings from postretirement benefit plans, net | (1) | $ (1) | (2) | $ (1) |
Accumulated other comprehensive income (loss) - total | 218 | 218 | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) - total | (1,587) | |||
Unrealized gain on interest rate swaps, net | 1,128 | |||
Reclassification of loss into earnings from interest rate swaps, net | 406 | |||
Accumulated other comprehensive income (loss) - total | (53) | (53) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) - total | 288 | |||
Reclassification of net actuarial gain into earnings from postretirement benefit plans, net | (15) | |||
Reclassification of prior service credits into earnings from postretirement benefit plans, net | (2) | |||
Accumulated other comprehensive income (loss) - total | $ 271 | $ 271 |
Accumulated Other Comprehensi75
Accumulated Other Comprehensive Income (Loss) (Accumulated Other Comprehensive Income (Loss)) (Parentheticals) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized gain on interest rate swaps | $ 0 | $ (136) | $ 0 | $ (115) |
Reclassification of loss into earnings from interest rate swaps | 0 | 123 | 0 | 260 |
Reclassification of net actuarial gain into earnings from postretirement benefit plans | 0 | (3) | 0 | (6) |
Reclassification of prior service credits into earnings from postretirement benefit plans | $ 0 | $ 0 | 0 | $ (1) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized gain on interest rate swaps | 0 | |||
Reclassification of loss into earnings from interest rate swaps | 0 | |||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification of net actuarial gain into earnings from postretirement benefit plans | 0 | |||
Reclassification of prior service credits into earnings from postretirement benefit plans | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | ||
Loss Contingencies [Line Items] | |||||
Settlement of class action litigation | [1] | $ 1,514 | $ 0 | $ 1,514 | $ 0 |
The Water Works and Sewer Board of the City of Gadsden [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Damages Sought, Value | 10 | ||||
The Water Works and Sewer Board of the Town of Centre [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Damages Sought, Value | 10 | ||||
Carlos Garcia V. Fabric International [Member] | |||||
Loss Contingencies [Line Items] | |||||
Settlement of class action litigation | 1,514 | ||||
Danny and Pamela Atkins [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Damages Sought, Value | $ 50 | ||||
Non-Employee Shareholder [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number Of Shares Held By Litigant | 50 | 50 | |||
[1] | (1) See "Note 18 - Commitments and Contingencies" for further explanation. |
Other Operating Income and Expe
Other Operating Income and Expenses, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | ||
Other Operating Income and Expenses, Net [Abstract] | |||||
Loss on property, plant and equipment disposals | $ 82 | $ 41 | $ 82 | $ 41 | |
(Gain) loss on currency exchanges | 5 | (15) | (3) | 2 | |
Amortization of intangibles | 76 | 76 | 153 | 153 | |
Retirement (income) expense | (120) | 54 | (66) | 72 | |
Settlement of class action litigation | [1] | 1,514 | 0 | 1,514 | 0 |
Miscellaneous (income) expense | (50) | (170) | (413) | (229) | |
Other operating (income) expense, net | $ 1,507 | $ (14) | $ 1,267 | $ 39 | |
[1] | (1) See "Note 18 - Commitments and Contingencies" for further explanation. |
Other Non-Operating Income and
Other Non-Operating Income and Expenses, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Other Non-Operating Income and Expenses, Net [Abstract] | ||||
Post-retirement income | $ (5) | $ (5) | $ (9) | $ (11) |
Miscellaneous (income) expense | 6 | 26 | 12 | 29 |
Other expense (income), net | $ 1 | $ 21 | $ 3 | $ 18 |
Facility Consolidation and Se79
Facility Consolidation and Severance Expenses, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | ||
Restructuring Cost and Reserve [Line Items] | |||
Accrued Balance | $ 505 | $ 514 | |
Expenses To Date | [1] | 406 | 0 |
Cash Payments | 693 | 242 | |
Accrued Balance | 218 | 272 | |
Total Costs Incurred To Date | 9,289 | ||
Expected Cost Remaining | 10,154 | ||
2014 Warehousing Distribution and Manufacturing Consolidation Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued Balance | 0 | 266 | |
Expenses To Date | [1] | 0 | 0 |
Cash Payments | 0 | 204 | |
Accrued Balance | 0 | 62 | |
Total Costs Incurred To Date | 7,440 | ||
Expected Cost Remaining | 7,440 | ||
2015 Corporate Office Consolidation Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued Balance | 171 | 248 | |
Expenses To Date | [1] | 4 | 0 |
Cash Payments | 40 | 38 | |
Accrued Balance | 135 | $ 210 | |
Total Costs Incurred To Date | 811 | ||
Expected Cost Remaining | 811 | ||
2017 Profit Improvement Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued Balance | 334 | ||
Expenses To Date | [1] | 402 | |
Cash Payments | 653 | ||
Accrued Balance | 83 | ||
Total Costs Incurred To Date | 1,038 | ||
Expected Cost Remaining | $ 1,903 | ||
[1] | Costs incurred under these plans are classified as "facility consolidation and severance expenses, net" in the Company's Consolidated Condensed Statements of Operations. |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Loss from discontinued operations: | ||||
Income (loss) from discontinued operations, before taxes | $ 157 | $ (185) | $ 135 | $ (233) |
Income tax benefit | 0 | (62) | 0 | (81) |
Income (loss) from discontinued operations | 157 | (123) | 135 | (152) |
Previously Discontinued Operations [Member] | ||||
Loss from discontinued operations: | ||||
Workers' compensation (costs) credits from former textile operations | 208 | (82) | 214 | (109) |
Environmental remediation (costs) credits from former textile operations | $ (51) | $ (103) | $ (79) | $ (124) |
Discontinued Operations (Enviro
Discontinued Operations (Environmental Remediation) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Environmental Remediation Obligations [Abstract] | ||
Accrual for Environmental Loss Contingencies | $ 1,753 | $ 1,746 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
James Horwich [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ 251 | $ 251 | $ 501 | $ 477 |
Robert E Shaw [Member] | ||||
Related Party Transaction [Line Items] | ||||
Ownership of Common Stock, Percentage | 7.30% | 7.30% | ||
Voting Interest of Common Stock, Percentage | 3.30% | 3.30% | ||
Related Party Transaction, Purchases from Related Party | $ 2,855 | $ 1,663 | $ 4,570 | $ 3,658 |
Related Party Transaction, Purchases from Related Party, Percentage | 3.50% | 2.10% | 2.90% | 2.40% |
Robert P Rothman [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ 69 | $ 67 | $ 138 | $ 135 |