COVER
COVER - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-2585 | |
Entity Registrant Name | THE DIXIE GROUP, INC | |
Entity Incorporation, State or Country Code | TN | |
Entity Tax Identification Number | 62-0183370 | |
Entity Address, Address Line 1 | 475 Reed Road | |
Entity Address, City or Town | Dalton | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30720 | |
City Area Code | 706 | |
Local Phone Number | 876-5800 | |
Title of 12(b) Security | Common Stock, $3 Par Value | |
Trading Symbol | DXYN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000029332 | |
Current Fiscal Year End Date | --12-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 14,426,034 | |
Common Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,121,129 | |
Common Class C | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 173 | $ 363 |
Receivables, net | 28,074 | 25,009 |
Inventories, net | 79,940 | 83,699 |
Prepaid and other current assets | 12,187 | 10,167 |
Current assets of discontinued operations | 301 | 641 |
TOTAL CURRENT ASSETS | 120,675 | 119,879 |
PROPERTY, PLANT AND EQUIPMENT, NET | 40,952 | 44,916 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 18,780 | 20,617 |
OTHER ASSETS | 15,393 | 15,982 |
LONG-TERM ASSETS OF DISCONTINUED OPERATIONS | 1,335 | 1,552 |
TOTAL ASSETS | 197,135 | 202,946 |
CURRENT LIABILITIES | ||
Accounts payable | 18,909 | 14,205 |
Accrued expenses | 18,851 | 17,667 |
Current portion of long-term debt | 3,197 | 4,573 |
Current portion of operating lease liabilities | 2,824 | 2,774 |
Current liabilities of discontinued operations | 1,360 | 2,447 |
TOTAL CURRENT LIABILITIES | 45,141 | 41,666 |
LONG-TERM DEBT, NET | 92,696 | 94,725 |
OPERATING LEASE LIABILITIES | 16,676 | 18,802 |
OTHER LONG-TERM LIABILITIES | 13,067 | 12,480 |
LONG-TERM LIABILITIES OF DISCONTINUED OPERATIONS | 3,627 | 3,759 |
TOTAL LIABILITIES | 171,207 | 171,432 |
COMMITMENTS AND CONTINGENCIES (See Note 17) | ||
STOCKHOLDERS' EQUITY | ||
Additional paid-in capital | 158,916 | 158,331 |
Accumulated deficit | (179,860) | (173,784) |
Accumulated other comprehensive income | 203 | 219 |
TOTAL STOCKHOLDERS' EQUITY | 25,928 | 31,514 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 197,135 | 202,946 |
Common Class A | ||
STOCKHOLDERS' EQUITY | ||
Common stock issued | 43,306 | 43,360 |
Common Class B | ||
STOCKHOLDERS' EQUITY | ||
Common stock issued | $ 3,363 | $ 3,388 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Common Class A | ||
Common stock, par value (in dollars per share) | $ 3 | $ 3 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 14,435,334 | 14,453,466 |
Common stock, shares outstanding (in shares) | 14,435,334 | 14,453,466 |
Common Class B | ||
Common stock, par value (in dollars per share) | $ 3 | $ 3 |
Common stock, shares authorized (in shares) | 16,000,000 | 16,000,000 |
Common stock, shares issued (in shares) | 1,121,129 | 1,129,158 |
Common stock, shares outstanding (in shares) | 1,121,129 | 1,129,158 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Income Statement [Abstract] | ||||
NET SALES | $ 68,576 | $ 71,762 | $ 209,669 | $ 233,034 |
Cost of sales | 50,341 | 59,225 | 153,821 | 189,266 |
GROSS PROFIT | 18,235 | 12,537 | 55,848 | 43,768 |
Selling and administrative expenses | 18,743 | 18,606 | 54,195 | 54,875 |
Other operating (income) expense, net | (147) | 113 | (313) | 258 |
Facility consolidation and severance expenses, net | 552 | 968 | 2,320 | 968 |
OPERATING LOSS | (913) | (7,150) | (354) | (12,333) |
Interest expense | 1,795 | 1,302 | 5,503 | 3,498 |
Other income, net | (622) | (2) | (634) | (3) |
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES | (2,086) | (8,450) | (5,223) | (15,828) |
Income tax provision (benefit) | 125 | (78) | 159 | (94) |
LOSS FROM CONTINUING OPERATIONS | (2,211) | (8,372) | (5,382) | (15,734) |
Loss from discontinued operations, net of tax | (183) | (408) | (496) | (890) |
NET LOSS | $ (2,394) | $ (8,780) | $ (5,878) | $ (16,624) |
BASIC EARNINGS (LOSS) PER SHARE: | ||||
Continuing operations (in dollars per share) | $ (0.15) | $ (0.55) | $ (0.36) | $ (1.04) |
Discontinued operations (in dollars per share) | (0.01) | (0.03) | (0.04) | (0.05) |
Net loss (in dollar per share) | $ (0.16) | $ (0.58) | $ (0.40) | $ (1.09) |
Basic shares outstanding (in shares) | 14,824 | 15,226 | 14,769 | 15,196 |
DILUTED EARNINGS (LOSS) PER SHARE: | ||||
Continuing operations (in dollars per share) | $ (0.15) | $ (0.55) | $ (0.36) | $ (1.04) |
Discontinued operations (in dollars per share) | (0.01) | (0.03) | (0.04) | (0.05) |
Net loss (in dollars per share) | $ (0.16) | $ (0.58) | $ (0.40) | $ (1.09) |
Diluted shares outstanding (in shares) | 14,824 | 15,226 | 14,769 | 15,196 |
DIVIDENDS PER SHARE: | ||||
Common stock (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Class B common stock (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
NET LOSS | $ (2,394) | $ (8,780) | $ (5,878) | $ (16,624) | |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | |||||
Reclassification of gain into earnings from interest rate swaps | [1] | 0 | 0 | 0 | (7) |
Income taxes | 0 | 0 | 0 | (2) | |
Reclassification of gain into earnings from interest rate swaps, net | 0 | 0 | 0 | (5) | |
Reclassification of unrealized loss into earnings from dedesignated interest rate swaps | [2] | 0 | 0 | 0 | 210 |
Income taxes | 0 | 0 | 0 | 33 | |
Reclassification of unrealized loss into earnings from dedesignated interest rate swaps, net | 0 | 0 | 0 | 177 | |
Reclassification of net actuarial gain into earnings from postretirement benefit plans | [2] | (5) | 0 | (16) | (2) |
Income taxes | 0 | 0 | 0 | 0 | |
Reclassification of net actuarial gain into earnings from postretirement benefit plans, net | (5) | 0 | (16) | (2) | |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (5) | 0 | (16) | 170 | |
COMPREHENSIVE LOSS | $ (2,399) | $ (8,780) | $ (5,894) | $ (16,454) | |
[1]Amounts for cash flow hedges reclassified from accumulated other comprehensive income to net 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 to net loss were included in selling and administrative expenses in the Company's consolidated condensed statements of operations. |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 24, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Loss from continuing operations | $ (5,382) | $ (15,734) |
Loss from discontinued operations | (496) | (890) |
Net loss | (5,878) | (16,624) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 4,978 | 6,057 |
Benefit for deferred income taxes | 0 | (125) |
Net gain on property, plant and equipment disposals | (1) | (40) |
Stock-based compensation expense | 550 | 559 |
Expense for expected credit losses | 21 | 39 |
Gain on extinguishment of debt | (625) | 0 |
Changes in operating assets and liabilities: | ||
Receivables | (3,284) | 8,508 |
Inventories | 3,759 | (11,162) |
Prepaid and other current assets | (2,020) | (1,406) |
Accounts payable and accrued expenses | 6,130 | (1,216) |
Other operating assets and liabilities | 914 | 800 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 5,040 | (13,720) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES - DISCONTINUED OPERATIONS | (1,166) | 1,416 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net proceeds from sales of property, plant and equipment | 29 | 40 |
Purchase of property, plant and equipment | (763) | (3,961) |
Cash paid for investment in joint venture | 0 | (1,000) |
NET CASH USED IN INVESTING ACTIVITIES | (734) | (4,921) |
NET CASH PROVIDED BY INVESTING ACTIVITIES - DISCONTINUED OPERATIONS | 8 | 1 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net borrowings (payments) on revolving credit facility | (528) | 13,884 |
Borrowings on notes payable - buildings | 0 | 11,000 |
Payments on notes payable - buildings and other term loans | (457) | (5,798) |
Payments on notes payable - equipment and other | (1,341) | (1,607) |
Payments on finance leases | (726) | (881) |
Change in outstanding checks in excess of cash | (242) | 572 |
Repurchases of Common Stock | (44) | (229) |
Payments for debt issuance costs | 0 | (227) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (3,338) | 16,714 |
DECREASE IN CASH AND CASH EQUIVALENTS | (190) | (510) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 363 | 1,471 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 173 | 961 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | 4,270 | 2,027 |
Interest paid for financing leases | 943 | 973 |
Income taxes paid, net of (tax refunds) | (725) | 55 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 7 | 911 |
Equipment purchased under finance lease | $ 133 | $ 0 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative effect of CECL adoption | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Deficit Cumulative effect of CECL adoption | Accumulated Other Comprehensive Income | Class B Common Stock Common Stock |
Balance a the beginning at Dec. 25, 2021 | $ 66,375 | $ 44,378 | $ 157,658 | $ (138,706) | $ 30 | $ 3,015 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchases of Common Stock | (95) | (105) | 10 | |||||
Restricted stock grants issued | 0 | 580 | (854) | 274 | ||||
Restricted stock grants forfeited | 0 | (6) | 6 | |||||
Stock-based compensation expense | 154 | 154 | ||||||
Net loss | (3,357) | (3,357) | ||||||
Other comprehensive loss | 170 | 170 | ||||||
Balance at the end at Mar. 26, 2022 | $ 63,247 | 44,847 | 156,974 | (142,063) | 200 | 3,289 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchases of Common Stock (in shares) | 35,160 | |||||||
Restricted stock grants issued (in shares) | 284,954 | |||||||
Balance a the beginning at Dec. 25, 2021 | $ 66,375 | 44,378 | 157,658 | (138,706) | 30 | 3,015 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (16,624) | |||||||
Other comprehensive loss | 170 | |||||||
Balance at the end at Sep. 24, 2022 | 50,251 | 44,862 | 157,132 | (155,330) | 200 | 3,387 | ||
Balance a the beginning at Mar. 26, 2022 | 63,247 | 44,847 | 156,974 | (142,063) | 200 | 3,289 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Restricted stock grants issued | 0 | 331 | (429) | 98 | ||||
Stock-based compensation expense | 197 | 197 | ||||||
Net loss | (4,487) | (4,487) | ||||||
Balance at the end at Jun. 25, 2022 | $ 58,957 | 45,178 | 156,742 | (146,550) | 200 | 3,387 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Restricted stock grants issued (in shares) | 142,957 | |||||||
Repurchases of Common Stock | $ (133) | (316) | 183 | |||||
Stock-based compensation expense | 207 | 207 | ||||||
Net loss | (8,780) | (8,780) | ||||||
Other comprehensive loss | 0 | |||||||
Balance at the end at Sep. 24, 2022 | $ 50,251 | 44,862 | 157,132 | (155,330) | 200 | 3,387 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchases of Common Stock (in shares) | 105,381 | |||||||
Balance a the beginning at Dec. 31, 2022 | $ 31,514 | $ (198) | 43,360 | 158,331 | (173,784) | $ (198) | 219 | 3,388 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchases of Common Stock | (44) | (168) | 124 | |||||
Class B converted into common stock | 0 | 25 | (25) | |||||
Stock-based compensation expense | 197 | 197 | ||||||
Net loss | (1,758) | (1,758) | ||||||
Other comprehensive loss | (5) | (5) | ||||||
Balance at the end at Apr. 01, 2023 | $ 29,706 | 43,217 | 158,652 | (175,740) | 214 | 3,363 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchases of Common Stock (in shares) | 55,994 | |||||||
Balance a the beginning at Dec. 31, 2022 | $ 31,514 | $ (198) | 43,360 | 158,331 | (173,784) | $ (198) | 219 | 3,388 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (5,878) | |||||||
Other comprehensive loss | (16) | |||||||
Balance at the end at Sep. 30, 2023 | 25,928 | 43,306 | 158,916 | (179,860) | 203 | 3,363 | ||
Balance a the beginning at Apr. 01, 2023 | 29,706 | 43,217 | 158,652 | (175,740) | 214 | 3,363 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Restricted stock grants issued | 0 | 120 | (120) | 0 | ||||
Restricted stock grants forfeited | 0 | (31) | 31 | |||||
Stock-based compensation expense | 171 | 171 | ||||||
Net loss | (1,726) | (1,726) | ||||||
Other comprehensive loss | (6) | (6) | ||||||
Balance at the end at Jul. 01, 2023 | 28,145 | 43,306 | 158,734 | (177,466) | 208 | 3,363 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation expense | 182 | 182 | ||||||
Net loss | (2,394) | (2,394) | ||||||
Other comprehensive loss | (5) | (5) | ||||||
Balance at the end at Sep. 30, 2023 | $ 25,928 | $ 43,306 | $ 158,916 | $ (179,860) | $ 203 | $ 3,363 |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | 3 Months Ended | ||
Jul. 01, 2023 USD ($) shares | Apr. 01, 2023 USD ($) shares | Mar. 26, 2022 USD ($) shares | |
Statement of Stockholders' Equity [Abstract] | |||
Repurchases of Common Stock (in shares) | 55,994 | 35,160 | |
Restricted stock grants issued (in shares) | 284,954 | ||
Restricted stock grants forfeited (in shares) | 10,167 | 2,000 | |
Class B converted into Common Stock (in shares) | 8,029 | ||
Restricted stock grants issued (in shares) | 40,000 | ||
Stockholders' Equity Attributable to Parent | $ | $ 28,145 | $ 29,706 | $ 63,247 |
Stock-based compensation expense | $ | 171 | 197 | 154 |
Net loss | $ | (1,726) | (1,758) | (3,357) |
Other comprehensive loss | $ | $ (6) | $ (5) | $ 170 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [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 Dixie Group, Inc.'s and its wholly-owned subsidiaries (the "Company") 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended December 31, 2022. The balance sheet as of December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and notes required by U.S. GAAP for complete financial statements. Operating results for the three and nine month periods ended September 30, 2023 are not necessarily indicative of the results that may be expected for the entire 2023 year. Based on applicable accounting standards, the Company has determined that it has one reportable segment, Floorcovering. The Company's Floorcovering products have similar economic characteristics and 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. The consolidated condensed financial statements separately report discontinued operations and the results of continuing operations. Unless specifically noted otherwise, footnote disclosures reflect the results of continuing operations only. The results of discontinued operations are presented in Note 20. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which was further amended by additional accounting standards updates issued by the FASB. The new standard replaced the incurred loss impairment methodology for recognizing credit losses with a new methodology that requires recognition of lifetime expected credit losses when a financial asset is originated or purchased, even if the risk of loss is remote. The new methodology (referred to as the current expected credit losses model, or "CECL") applies to most financial assets measured at amortized cost, including trade receivables, and requires consideration of a broader range of reasonable and supportable information to estimate expected credit losses. The Company adopted the new standard effective January 1, 2023 using a modified retrospective transition approach, with the cumulative impact of $198 recorded as an increase in the accumulated deficit. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2023 | |
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 and nine month periods ended September 30, 2023 and September 24, 2022: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Residential floorcovering products $ 67,659 $ 70,125 $ 206,515 $ 227,610 Other services 917 1,637 3,154 5,424 Total net sales $ 68,576 $ 71,762 $ 209,669 $ 233,034 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. 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 in Note 4, the Company does not recognize any contract assets which give conditional rights to receive consideration, because 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 the application of deposit on the receivables ledger for such activity during the period. The activity in the advanced deposits for the three and nine month periods ended September 30, 2023 and September 24, 2022 is as follows: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Beginning contract liability $ 1,034 $ 1,122 $ 1,055 $ 1,285 Revenue recognized from contract liabilities included in the beginning balance (742) (797) (862) (1,096) Increases due to cash received, net of amounts recognized in revenue during the period 785 760 884 896 Ending contract liability $ 1,077 $ 1,085 $ 1,077 $ 1,085 Performance Obligations For performance obligations related to residential 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 product returns, price concessions or achieving certain levels of sales activity. 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. Estimates of variable consideration are 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 of 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. The Company does not provide an additional service-type warranty. |
Receivables, Net
Receivables, Net | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Receivables, Net | RECEIVABLES, NET The Company grants credit to its customers with defined payment terms, performs ongoing evaluations of the credit worthiness of its customers and generally does not require collateral. Accounts receivable are carried at their outstanding principal amounts, less an anticipated amount for discounts and an allowance for expected credit losses. The Company's allowance for credit losses is computed using a number of factors including past credit loss experience and the aging of amounts due from our customers, in addition to other customer-specific factors. The Company also considered recent trends and developments related to the current macroeconomic environment in determining its ending allowance for credit losses for accounts receivable. If the financial condition of the Company's customers were to deteriorate, resulting in a change in their ability to make payments, or additional changes in macroeconomic factors occur, additional allowances may be required. Receivables are summarized as follows: September 30, December 31, Customers, trade $ 27,585 $ 23,111 Other receivables 928 2,009 Gross receivables 28,513 25,120 Less: allowance for expected credit losses (1) (439) (111) Receivables, net $ 28,074 $ 25,009 (1) The Company adopted the new standard, ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, on January 1, 2023 using a modified retrospective transition approach, with the cumulative impact being $388 from continuing operations. The Company recognized an expense to the provision for expected credit losses of $49 and $21 and recognized write-offs, net of recoveries of $21 and $82 for the three and nine months ended September 30, 2023, respectively. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | INVENTORIES, NET Inventories are summarized as follows: September 30, December 31, Raw materials $ 26,349 $ 29,209 Work-in-process 12,034 13,028 Finished goods 61,717 67,018 Supplies and other 64 66 LIFO reserve (20,224) (25,622) Inventories, net $ 79,940 $ 83,699 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consists of the following: September 30, December 31, Land and improvements $ 3,417 $ 3,417 Buildings and improvements 52,049 51,132 Machinery and equipment 155,080 155,317 Assets under construction 1,143 1,606 211,689 211,472 Accumulated depreciation (170,737) (166,556) Property, plant and equipment, net $ 40,952 $ 44,916 Depreciation of property, plant and equipment, including amounts for finance leases, totaled $1,684 and $4,832 in the three and nine months ended September 30, 2023, respectively and $1,959 and $5,933 in the three and nine months ended September 24, 2022, respectively. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | ACCRUED EXPENSES Accrued expenses are summarized as follows: September 30, December 31, Compensation and benefits $ 5,062 $ 5,579 Provision for customer rebates, claims and allowances 7,496 6,465 Advanced customer deposits 1,077 1,055 Outstanding checks in excess of cash 1,468 1,711 Other 3,748 2,857 Accrued expenses $ 18,851 $ 17,667 |
Long-Term Debt and Credit Arran
Long-Term Debt and Credit Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Credit Arrangements | LONG-TERM DEBT AND CREDIT ARRANGEMENTS Long-term debt consists of the following: September 30, December 31, Revolving credit facility $ 51,266 $ 51,794 Term loans 24,376 24,547 Notes payable - buildings 10,466 10,752 Notes payable - equipment and other 919 1,342 Finance lease - buildings 10,383 10,597 Finance lease obligations 140 2,063 Deferred financing costs, net (1,657) (1,797) Total debt 95,893 99,298 Less: current portion of long-term debt 3,197 4,573 Long-term debt $ 92,696 $ 94,725 Revolving Credit Facility On October 30, 2020, the Company entered into a $75,000 Senior Secured Revolving Credit Facility with Fifth Third Bank National Association as lender. The loan is secured by a first priority security interest on all accounts receivable, cash, and inventory, and provides for borrowing limited by certain percentages of values of the accounts receivable and inventory. The revolving credit facility matures on October 30, 2025. At the Company's election, advances of the revolving credit facility bear interest at annual rates equal to either (a) SOFR (plus a 0.10% SOFR adjustment) for 1 or 3 month periods, as defined with a floor of 0.75% or published SOFR, plus an applicable margin ranging between 1.50% and 2.00%, or (b) the higher of the prime rate 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. The applicable margin can be increased by 0.50% if the fixed charge coverage ratio is below a 1.10 to 1.00 ratio. As of September 30, 2023, the applicable margin on the Company's revolving credit facility was 2.50% for SOFR and 1.50% for Prime due to the fixed charge coverage ratio being below 1.10 to 1.00. 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 0.25% per annum. The weighted-average interest rate on borrowings outstanding under the revolving credit facility was 8.08% at September 30, 2023 and 6.81% at December 31, 2022. The agreement is subject to customary terms and conditions and annual administrative fees with pricing varying on excess availability and a fixed charge coverage ratio. The agreement is also subject to certain compliance, affirmative, and financial covenants. The Company is only subject to the financial covenants if borrowing availability is less than $9,013, which is equal to 12.5% of the lesser of the total loan availability of $75,000 or total collateral available, and remains until the availability is greater than 12.5% for thirty Term Loans Effective October 28, 2020, the Company entered into a $10,000 principal amount USDA Guaranteed term loan with AmeriState Bank as lender. The term of the loan is 25 years and bears interest at a minimum 5.00% rate or 4.00% above 5-year treasury, to be reset every 5 years at 3.5% above 5-year treasury. The loan is secured by a first mortgage on the Company’s Atmore, Alabama and Roanoke, Alabama facilities and requires certain compliance, affirmative, and financial covenants. Effective October 29, 2020, the Company entered into a $15,000 principal amount USDA Guaranteed term loan with the Greater Nevada Credit Union as lender. The term of the loan is 10 years and bears interest at a minimum 5.00% rate or 4.00% above 5-year treasury, to be reset after 5 years at 3.5% above 5-year treasury. Payments on the loan are interest only over the first three years and principal and interest over the remaining seven years. The loan is secured by a first lien on a substantial portion of the Company’s machinery and equipment and a second lien on the Company’s Atmore and Roanoke facilities. The loan requires certain compliance, affirmative, and financial covenants. Notes Payable - Buildings On March 16, 2022, the Company entered into a twenty year $11,000 note payable to refinance its existing note payable on its distribution facility in Adairsville, GA (the "Property"). The refinanced note payable bears interest at a fixed annual rate of 3.81%. Concurrent with the closing of this note, the Company paid off the existing loans secured by the Property in the amount of $5,456 and terminated an existing interest rate swap agreement. The refinanced note is secured by the Property and a guarantee of the Company. Debt Covenant Compliance and Liquidity Considerations The Company's agreements for its Revolving Credit Facility and its term loans include certain compliance, affirmative, and financial covenants and, as of the reporting date, the Company is in compliance with all such applicable financial covenants or has obtained an appropriate waiver for such applicable financial covenants. In the Company's self-assessment of going concern, with reflection on the Company's operating loss in 2022, the Company considered its future ability to comply with the financial covenants in its existing debt agreements. ASU 2014-15 as issued by the FASB requires Company management to perform a going concern self-assessment each annual and interim reporting period. In performing its evaluation, management considered known and reasonably knowable information as of the reporting date. The Company also considered the significant unfavorable impact if it were unable to maintain compliance with financial covenants by its primary lenders. As part of the evaluation, the Company considered cost reductions that began in 2022 related to its change to lower cost raw materials, decreased freight expense on imported goods and cost reductions implemented under its East Coast Consolidation Plan, as well as plans for the sale and leaseback of existing assets. The financial statements do not include any adjustments that might result from the outcome of the uncertainty of the ability to maintain compliance with the financial covenants. Notes Payable - Equipment and Other On September 15, 2023, the Company entered into a debt amendment on an existing debt arrangement for manufacturing equipment that was previously set to mature on September 30, 2023. The Company's amended equipment and other financing note has a term of 1 year, 3 months, bears interest at 7.84% and is due in monthly installments through its maturity date. The Company's equipment and other financing note does not contain any financial covenants. In accordance with ASC Topic No. 470, “ Debt – Modifications and Extinguishments ” (Topic 470), the amendment noted above was determined to be an extinguishment of the existing debt and an issuance of new debt resulting in the addition of a non-cash financing activity of $919 and the removal of a non-cash financing activity of $1,544. As a result, we recorded a gain on the extinguishment of debt in the amount of $625 within “Other income, net ” in our consolidated condensed statements of operations. Finance Lease - Buildings On January 14, 2019, the Company, entered into a purchase and sale agreement (the “Purchase and Sale Agreement”) with Saraland Industrial, LLC, an Alabama limited liability company (the “Purchaser”). Pursuant to the terms of the Purchase and Sale Agreement, the Company sold its Saraland facility, and approximately 17.12 acres of surrounding property located in Saraland, Alabama (the “Property”) to the Purchaser for a purchase price of $11,500. Concurrent with the sale of the Property, the Company and the Purchaser entered into a twenty-year lease agreement (the “Lease Agreement”), whereby the Company will lease back the Property at an annual rental rate of $977, subject to annual rent increases of 1.25%. Under the Lease Agreement, the Company has two (2) consecutive options to extend the term of the Lease by ten years for each such option. This transaction was recorded as a failed sale and leaseback. The Company recorded a liability for the amounts received, will continue to depreciate the asset, and has imputed an interest rate so that the net carrying amount of the financial liability and remaining assets will be zero at the end of the lease term. Finance Lease Obligations The Company's finance lease obligations are due in monthly installments through their maturity dates. The Company's finance lease obligations are secured by the specific equipment leased. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | LEASES Leases as Lessee Balance sheet information related to right-of-use assets and liabilities is as follows: Balance Sheet Location September 30, December 31, 2022 Operating Leases: Operating lease right-of-use assets Operating lease right-of-use assets $ 18,780 $ 20,617 Current portion of operating lease liabilities Current portion of operating lease liabilities $ 2,824 $ 2,774 Noncurrent portion of operating lease liabilities Operating lease liabilities 16,676 18,802 Total operating lease liabilities $ 19,500 $ 21,576 Finance Leases: Finance lease right-of-use assets (1) Property, plant, and equipment, net $ 3,445 $ 5,250 Current portion of finance lease liabilities (1) Current portion of long-term debt $ 320 $ 2,321 Noncurrent portion of finance lease liabilities (1) Long-term debt 10,203 10,339 Total financing lease liabilities $ 10,523 $ 12,660 (1) Includes leases classified as failed sale-leaseback transactions. Lease cost recognized in the consolidated condensed financial statements is summarized as follows: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Operating lease cost $ 1,032 $ 926 $ 3,100 $ 3,122 Finance lease cost: Amortization of lease assets (1) $ 178 $ 205 $ 514 $ 703 Interest on lease liabilities (1) 286 316 943 973 Total finance lease costs (1) $ 464 $ 521 $ 1,457 $ 1,676 (1) Includes leases classified as failed sale-leaseback transactions. Other supplemental information related to leases is summarized as follows: September 30, September 24, Weighted average remaining lease term (in years): Operating leases 5.95 6.85 Finance leases (1) 15.19 13.70 Weighted average discount rate: Operating leases 6.40 % 6.39 % Finance leases (1) 7.06 % 9.65 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,073 $ 2,940 Operating cash flows from finance leases (1) 943 973 Financing cash flows from finance leases (1) 726 881 (1) Includes leases classified as failed sale-leaseback transactions. The following table summarizes the Company's future minimum lease payments under non-cancellable contractual obligations for operating and financing liabilities as of September 30, 2023: Fiscal Year Operating Leases Finance Leases 2023 $ 999 $ 182 2024 4,001 1,077 2025 3,917 1,085 2026 3,709 1,098 2027 3,760 1,111 Thereafter 7,245 12,859 Total future minimum lease payments (undiscounted) 23,631 17,412 Less: Present value discount 4,131 6,889 Total lease liability $ 19,500 $ 10,523 Leases as Lessor The Company leases or subleases certain excess space in its facilities to third parties, which are included as fixed assets. The leases are accounted for as operating leases and the lease or sublease income is included in other operating (income) expense, net. The Company recognizes lease income on a straight-line basis as collectability is probable, including any escalation or lease incentives, as applicable, and the Company continues to recognize the underlying asset. The Company has elected the practical expedient to combine all non-lease components as a combined component. The nature of the Company’s sublease agreements do not provide for variable lease payments, options to purchase, or extensions. Lease income and sublease income related to fixed lease payments recognized in the consolidated condensed financial statements is summarized as follows: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Operating lease income $ 267 $ — $ 329 $ — The following table summarizes the Company's undiscounted lease payments to be received under operating leases including amounts to be paid by the Company to the head lessor for the next five years and thereafter as of September 30, 2023: Fiscal Year Gross Lease Payments Payments to Head Lessor Net Lease Payments 2023 $ 370 $ 63 $ 308 2024 1,305 251 1,054 2025 1,253 253 1,000 2026 1,278 256 1,022 2027 1,303 259 1,044 Thereafter 766 163 603 Total $ 6,275 $ 1,245 $ 5,031 |
Leases | LEASES Leases as Lessee Balance sheet information related to right-of-use assets and liabilities is as follows: Balance Sheet Location September 30, December 31, 2022 Operating Leases: Operating lease right-of-use assets Operating lease right-of-use assets $ 18,780 $ 20,617 Current portion of operating lease liabilities Current portion of operating lease liabilities $ 2,824 $ 2,774 Noncurrent portion of operating lease liabilities Operating lease liabilities 16,676 18,802 Total operating lease liabilities $ 19,500 $ 21,576 Finance Leases: Finance lease right-of-use assets (1) Property, plant, and equipment, net $ 3,445 $ 5,250 Current portion of finance lease liabilities (1) Current portion of long-term debt $ 320 $ 2,321 Noncurrent portion of finance lease liabilities (1) Long-term debt 10,203 10,339 Total financing lease liabilities $ 10,523 $ 12,660 (1) Includes leases classified as failed sale-leaseback transactions. Lease cost recognized in the consolidated condensed financial statements is summarized as follows: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Operating lease cost $ 1,032 $ 926 $ 3,100 $ 3,122 Finance lease cost: Amortization of lease assets (1) $ 178 $ 205 $ 514 $ 703 Interest on lease liabilities (1) 286 316 943 973 Total finance lease costs (1) $ 464 $ 521 $ 1,457 $ 1,676 (1) Includes leases classified as failed sale-leaseback transactions. Other supplemental information related to leases is summarized as follows: September 30, September 24, Weighted average remaining lease term (in years): Operating leases 5.95 6.85 Finance leases (1) 15.19 13.70 Weighted average discount rate: Operating leases 6.40 % 6.39 % Finance leases (1) 7.06 % 9.65 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,073 $ 2,940 Operating cash flows from finance leases (1) 943 973 Financing cash flows from finance leases (1) 726 881 (1) Includes leases classified as failed sale-leaseback transactions. The following table summarizes the Company's future minimum lease payments under non-cancellable contractual obligations for operating and financing liabilities as of September 30, 2023: Fiscal Year Operating Leases Finance Leases 2023 $ 999 $ 182 2024 4,001 1,077 2025 3,917 1,085 2026 3,709 1,098 2027 3,760 1,111 Thereafter 7,245 12,859 Total future minimum lease payments (undiscounted) 23,631 17,412 Less: Present value discount 4,131 6,889 Total lease liability $ 19,500 $ 10,523 Leases as Lessor The Company leases or subleases certain excess space in its facilities to third parties, which are included as fixed assets. The leases are accounted for as operating leases and the lease or sublease income is included in other operating (income) expense, net. The Company recognizes lease income on a straight-line basis as collectability is probable, including any escalation or lease incentives, as applicable, and the Company continues to recognize the underlying asset. The Company has elected the practical expedient to combine all non-lease components as a combined component. The nature of the Company’s sublease agreements do not provide for variable lease payments, options to purchase, or extensions. Lease income and sublease income related to fixed lease payments recognized in the consolidated condensed financial statements is summarized as follows: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Operating lease income $ 267 $ — $ 329 $ — The following table summarizes the Company's undiscounted lease payments to be received under operating leases including amounts to be paid by the Company to the head lessor for the next five years and thereafter as of September 30, 2023: Fiscal Year Gross Lease Payments Payments to Head Lessor Net Lease Payments 2023 $ 370 $ 63 $ 308 2024 1,305 251 1,054 2025 1,253 253 1,000 2026 1,278 256 1,022 2027 1,303 259 1,044 Thereafter 766 163 603 Total $ 6,275 $ 1,245 $ 5,031 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
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 carrying amounts and estimated fair values of the Company's financial instruments are summarized as follows: September 30, December 31, Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and cash equivalents $ 173 $ 173 $ 363 $ 363 Financial liabilities: Long-term debt, including current portion $ 85,370 $ 76,424 $ 86,638 $ 76,684 Finance leases, including current portion 10,523 9,076 12,660 11,576 The fair values of the Company's long-term debt and finance 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 approximate their carrying amounts due to the short-term nature of the financial instruments. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2023 | |
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 evaluating opportunities to enter into interest rate swaps for portions of its variable rate debt to minimize interest rate volatility. As of September 30, 2023, the Company had no interest rate swaps outstanding. The following tables summarize the pre-tax impact of derivative instruments on the Company's consolidated condensed financial statements: Amount of Gain (Loss) Reclassified from AOCIL on the effective portion into Earnings (1) Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Derivatives designated as hedging instruments: Cash flow hedges - interest rate swaps $ — $ — $ — $ (7) Amount of Gain or (Loss) Recognized on the Dedesignated Portion in Income on Derivative (2) Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Derivatives dedesignated as hedging instruments: Cash flow hedges - interest rate swaps $ — $ — $ — $ 210 (1) The amount of gain (loss) reclassified from AOCIL is included in interest expense on the Company's consolidated condensed financial statements. (2) The amount of gain (loss) recognized in income on the dedesignated and terminated portions of interest rate swaps is included in interest expense on the Company's consolidated condensed statements of operations. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Defined Contribution Plans The Company sponsors a 401(k) defined contribution plan that covers approximately 98% 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 expense for this 401(k) plan was $63 and $94 for the three months ended September 30, 2023 and September 24, 2022, respectively and $230 and $189 for the nine months ended September 30, 2023 and September 24, 2022, respectively. Additionally, the Company sponsors a 401(k) defined contribution plan that covers associates at one facility who are under a collective-bargaining agreement. The number of associates under the plan represents approximately 2% of the Company's total current associates. 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 $2 and $14 for the three months ended September 30, 2023 and September 24, 2022, respectively and $8 and $60 for the nine months ended September 30, 2023 and September 24, 2022, 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 for continuing operations owed to participants under this plan were $12,804 at September 30, 2023 and $12,346 at December 31, 2022 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 for continuing operations was $13,396 at September 30, 2023 and $12,296 at December 31, 2022 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 $6 and $38 for the three months ended September 30, 2023 and September 24, 2022, respectively and $16 and $141 for the nine months ended September 30, 2023 and September 24, 2022, respectively. If the Company were to withdraw from the multi-employer plan, a withdrawal liability would be due, the amount of which would be determined by the plan. The withdrawal liability, as determined by the plan, would be a function of contribution rates, fund status, discount rates and various other factors at the time of any such withdrawal. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES TE 13 - INCOME TAXES The effective income tax rate for the nine months ending September 30, 2023 was 3.04% compared with a benefit rate of 0.59% for the nine months ending September 24, 2022. Because the Company maintains a full valuation allowance against its deferred income tax balances, the Company is only able to recognize refundable credits and a small amount of state taxes in the tax expense for the first nine months of 2023. The Company is in a net deferred tax liability position of $91 at September 1, 2023 and December 31, 2022, which is included in other long-term liabilities in the Company's consolidated condensed balance sheets. The Company accounts for uncertainty in income tax positions according to FASB guidance relating to uncertain tax positions. Unrecognized tax benefits were $549 and $518 at September 30, 2023 and December 31, 2022, respectively. Such benefits, if recognized, would affect the Company's effective tax rate. There were no significant interest or penalties accrued as of September 30, 2023 and December 31, 2022. 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 2018 remain open to examination for U.S. federal income taxes. The majority of state jurisdictions remain open for tax years subsequent to 2018. A few state jurisdictions remain open to examination for tax years subsequent to 2017. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHAREThe 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 (loss) 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 Nine Months Ended September 30, September 24, September 30, September 24, Basic earnings (loss) per share: Loss from continuing operations $ (2,211) $ (8,372) $ (5,382) $ (15,734) Less: Allocation of earnings to participating securities — — — — Loss from continuing operations available to common shareholders - basic $ (2,211) $ (8,372) $ (5,382) $ (15,734) Basic weighted-average shares outstanding (1) 14,824 15,226 14,769 15,196 Basic earnings (loss) per share - continuing operations $ (0.15) $ (0.55) $ (0.36) $ (1.04) Diluted earnings (loss) per share: Loss from continuing operations available to common shareholders - basic $ (2,211) $ (8,372) $ (5,382) $ (15,734) Add: Undistributed earnings reallocated to unvested shareholders — — — — Loss from continuing operations available to common shareholders - basic $ (2,211) $ (8,372) $ (5,382) $ (15,734) Basic weighted-average shares outstanding (1) 14,824 15,226 14,769 15,196 Effect of dilutive securities: Stock options (2) — — — — Directors' stock performance units (2) — — — — Diluted weighted-average shares outstanding (1)(2) 14,824 15,226 14,769 15,196 Diluted earnings (loss) per share - continuing operations $ (0.15) $ (0.55) $ (0.36) $ (1.04) (1) Includes Common and Class B Common shares, excluding unvested participating securities of 732 thousand as of September 30, 2023 and 944 thousand as of September 24, 2022. (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. There were 574 thousand and 130 thousand aggregate shares excluded for the three and nine months ended September 30, 2023 and September 24, 2022, respectively. |
Stock-based Compensation Expens
Stock-based Compensation Expense | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-based Compensation Expense | STOCK-BASED 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 statements of operations. The Company's stock compensation expense was $182 and $207 for the three months ended September 30, 2023 and September 24, 2022, respectively. The Company's stock compensation expense was $550 and $559 for the nine months ended September 30, 2023 and September 24, 2022, respectively. On May 3, 2023, the Company issued 40,000 shares of restricted stock to the Company's non-employee directors. The grant-date fair value of the awards was $28, or $0.70 per share, and is expected to be recognized as stock compensation expense over a weighted-average period of 1.0 year from the date the awards were granted. Each award is subject to a continued service condition. The fair value of each restricted stock awarded was equal to the market value of a share of the Company's Common Stock on the grant date. On May 25, 2023, the Company granted 444,000 options with a market condition to certain key employees of the Company at a weighted-average exercise price of $1.00. The grant-date fair value of these options was $186. These options vest over a two The fair value of each option was estimated on the date of grant using a lattice model. Expected volatility was based on historical volatility of the Company's stock, using the most recent period equal to the expected life of the options. The risk-free interest rate was based on the U.S. Treasury yield for a term equal to the expected life of the option at the time of grant. The Company uses historical exercise behavior data of similar employee groups to determine the expected life of the options. The following weighted-average assumptions were used to estimate the fair value of stock options granted during nine months ended September 30, 2023: Risk-free interest rate 3.80 % Expected volatility 97.96 % Expected dividends — % Expected life of options 5 years |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME Components of accumulated other comprehensive income, net of tax, are as follows: Post-Retirement Liabilities Balance at December 31, 2022 $ 219 Reclassification of net actuarial gain into earnings from postretirement benefit plans (16) Balance at September 30, 2023 $ 203 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES 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. The Company has not identified any legal matters that could have a material adverse effect on its consolidated condensed results of operations, financial position or cash flows. 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 20). |
Other (Income) Expense, Net
Other (Income) Expense, Net | 9 Months Ended |
Sep. 30, 2023 | |
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 Nine Months Ended September 30, September 24, September 30, September 24, Other operating (income) expense, net: Gain on property, plant and equipment disposals $ — $ (30) $ (1) $ (40) (Gain) loss on currency exchanges (7) 34 35 120 Retirement expense 63 105 176 451 Insurance proceeds — — (246) (199) Lease income (267) — (329) — Miscellaneous (income) expense 64 4 52 (74) Other operating (income) expense, net $ (147) $ 113 $ (313) $ 258 Included in the $622 and $634 other income, net for the three and nine months ended September 30, 2023 is a gain of $625 related to an extinguishment of a debt arrangement. |
Facility Consolidation and Seve
Facility Consolidation and Severance Expenses, Net | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Facility Consolidation and Severance Expenses, Net | FACILITY CONSOLIDATION AND SEVERANCE EXPENSES, NET 2022 Consolidation of East Coast Manufacturing Plan During 2022, the Company implemented a plan to consolidate its East Coast manufacturing in order to reduce its manufacturing costs. Under this plan, the Company consolidated its East Coast tufting operations into one plant in North Georgia, relocated the distribution of luxury vinyl flooring from its Saraland, Alabama facility to its Atmore, Alabama facility and identified space in its Saraland, Alabama and Atmore, Alabama facilities as available for lease or sublease. Costs for the plan include machinery and equipment relocation, inventory relocation, staff reductions and unabsorbed fixed costs during conversion of the Atmore facility. 2020 COVID-19 Continuity Plan As the extent of the COVID-19 pandemic became apparent, the Company implemented a continuity plan to maintain the health and safety of associates, preserve cash, and minimize the impact on customers. The response included restrictions on travel, implementation of telecommuting where appropriate and limiting contact and maintaining social distancing between associates and with customers. Cost reductions were implemented including cutting non-essential expenditures, reducing capital expenditures, rotating layoffs and furloughs, selected job eliminations and temporary salary reductions. Costs related to the facility consolidation plans are summarized as follows: As of September 30, 2023 Accrued Balance at December 31, 2022 2023 Expenses To Date (1) 2023 Cash Payments Accrued Balance at September 30, 2023 Total Costs Incurred To Date Total Expected Costs Consolidation of East Coast Manufacturing Plan $ 1,011 $ 2,320 $ 3,271 $ 60 $ 6,169 $ 6,667 COVID-19 Continuity Plan — — — — 2,533 2,533 Total All Plans $ 1,011 $ 2,320 $ 3,271 $ 60 $ 8,702 $ 9,200 Asset Impairments $ — $ — $ — $ — $ 4,059 $ 4,059 Accrued Balance at December 25, 2021 2022 Expenses To Date (1) 2022 Cash Payments Accrued Balance at September 24, 2022 Consolidation of East Coast Manufacturing Plan $ — $ 968 $ 968 $ — COVID-19 Continuity Plan 78 — 78 — Totals $ 78 $ 968 $ 1,046 $ — Asset Impairments $ — $ — $ — $ — (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 | 9 Months Ended |
Sep. 30, 2023 | |
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 Nine Months Ended September 30, September 24, September 30, September 24, Loss from discontinued operations: Workers' compensation costs from former textile operations $ (11) $ (30) $ (56) $ (31) Environmental remediation costs from former textile operations (21) (51) (50) (41) Commercial business operations (173) (327) (438) (818) Loss from discontinued operations, before taxes $ (205) $ (408) $ (544) $ (890) Income tax benefit (22) — (48) — Loss from discontinued operations, net of tax $ (183) $ (408) $ (496) $ (890) Workers' compensation costs from former textile operations 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. Environmental remediation costs from former textile operations 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 $2,205 as of September 30, 2023 and $2,205 as of December 31, 2022. 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 the Company's 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. Commercial business operations On September 13, 2021, the Company sold assets that included certain inventory, certain items of machinery and equipment used exclusively in the Commercial Business, and related intellectual property. The Company retained the Commercial Business’ cash deposits, all accounts receivable, and certain inventory and equipment. Additionally, the Company agreed not to compete with the specified commercial business and the Atlas|Masland markets for a period of 5 years following September 13, 2021. The Company was allowed to sell the commercial inventory retained by the Company after the divestiture. At closing, $2,100 of the proceeds were withheld and deposited in escrow to cover any claims arising with respect to the Commercial business for which the Company may be liable. The $2,100 was agreed to be released to the Company (net of claims paid, if any) in two installments with 50% of the escrow paid in 90 days from closing and the remaining amount paid 18 months from the closing date. As of September 30, 2023, the Company had received payment for both installments. In order to release liens on certain fixed assets included in the Asset Purchase Agreement, the Company placed $2,100 in cash collateral in an account with the lender (Greater Nevada Credit Union). In the first quarter of 2023, the lender released the funds to the Company. The Company reclassified the following assets and liabilities for discontinued operations in the accompanying consolidated condensed balance sheets: September 30, December 31, Current Assets of Discontinued Operations: Receivables, net $ 172 $ 385 Inventories, net 129 255 Prepaid expenses — 1 Current Assets Held for Discontinued Operations $ 301 $ 641 Long Term Assets of Discontinued Operations: Property, plant and equipment, net $ 180 $ 185 Operating lease right of use assets — 63 Other assets 1,155 1,304 Long Term Assets Held for Discontinued Operations $ 1,335 $ 1,552 Current Liabilities of Discontinued Operations: Accounts payable $ 131 $ 127 Accrued expenses 1,229 2,245 Current portion of operating lease liabilities — 75 Current Liabilities Held for Discontinued Operations $ 1,360 $ 2,447 Long Term Liabilities of Discontinued Operations: Other long term liabilities $ 3,627 $ 3,759 Long Term Liabilities Held for Discontinued Operations $ 3,627 $ 3,759 For the three and nine months ended September 30, 2023 and September 24, 2022, the Company reclassified the following operations of the Commercial business included in discontinued operations in the accompanying consolidated condensed statements of operations: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Net sales $ 15 $ 710 $ 185 $ 7,622 Cost of sales 31 929 423 7,247 Gross profit (16) (219) (238) 375 Selling and administrative expenses 102 107 150 1,244 Other operating (income) expense, net 55 1 50 (51) Loss from discontinued Commercial business operations $ (173) $ (327) $ (438) $ (818) |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONSThe Company purchases a portion of its product needs from Engineered Floors, an entity substantially controlled by Robert E. Shaw, a shareholder of the Company. An affiliate of Mr. Shaw holds approximately 7.8% of the Company's Common Stock, which represents approximately 3.1% 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 months ended September 30, 2023 and September 24, 2022 were approximately $0 and $3, respectively; or approximately 0.0% and 0.0%, respectively, of the Company's cost of goods sold. Total purchases from Engineered Floors during the nine months ended September 30, 2023 and September 24, 2022 were approximately $64 and $917, respectively; or approximately 0.0% and 2.0%, 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Adopted Accounting Standards | Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which was further amended by additional accounting standards updates issued by the FASB. The new standard replaced the incurred loss impairment methodology for recognizing credit losses with a new methodology that requires recognition of lifetime expected credit losses when a financial asset is originated or purchased, even if the risk of loss is remote. The new methodology (referred to as the current expected credit losses model, or "CECL") applies to most financial assets measured at amortized cost, including trade receivables, and requires consideration of a broader range of reasonable and supportable information to estimate expected credit losses. The Company adopted the new standard effective January 1, 2023 using a modified retrospective transition approach, with the cumulative impact of $198 recorded as an increase in the accumulated deficit. |
Revenue Recognition Policy | 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 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue from Contracts with Customers | The following table disaggregates the Company’s revenue by end-user markets for the three and nine month periods ended September 30, 2023 and September 24, 2022: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Residential floorcovering products $ 67,659 $ 70,125 $ 206,515 $ 227,610 Other services 917 1,637 3,154 5,424 Total net sales $ 68,576 $ 71,762 $ 209,669 $ 233,034 |
Contract Balances | The activity in the advanced deposits for the three and nine month periods ended September 30, 2023 and September 24, 2022 is as follows: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Beginning contract liability $ 1,034 $ 1,122 $ 1,055 $ 1,285 Revenue recognized from contract liabilities included in the beginning balance (742) (797) (862) (1,096) Increases due to cash received, net of amounts recognized in revenue during the period 785 760 884 896 Ending contract liability $ 1,077 $ 1,085 $ 1,077 $ 1,085 |
Receivables, Net (Tables)
Receivables, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables are summarized as follows: September 30, December 31, Customers, trade $ 27,585 $ 23,111 Other receivables 928 2,009 Gross receivables 28,513 25,120 Less: allowance for expected credit losses (1) (439) (111) Receivables, net $ 28,074 $ 25,009 (1) The Company adopted the new standard, ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, on January 1, 2023 using a modified retrospective transition approach, with the cumulative impact being $388 from continuing operations. The Company recognized an expense to the provision for expected credit losses of $49 and $21 and recognized write-offs, net of recoveries of $21 and $82 for the three and nine months ended September 30, 2023, respectively. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories are summarized as follows: September 30, December 31, Raw materials $ 26,349 $ 29,209 Work-in-process 12,034 13,028 Finished goods 61,717 67,018 Supplies and other 64 66 LIFO reserve (20,224) (25,622) Inventories, net $ 79,940 $ 83,699 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consists of the following: September 30, December 31, Land and improvements $ 3,417 $ 3,417 Buildings and improvements 52,049 51,132 Machinery and equipment 155,080 155,317 Assets under construction 1,143 1,606 211,689 211,472 Accumulated depreciation (170,737) (166,556) Property, plant and equipment, net $ 40,952 $ 44,916 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses are summarized as follows: September 30, December 31, Compensation and benefits $ 5,062 $ 5,579 Provision for customer rebates, claims and allowances 7,496 6,465 Advanced customer deposits 1,077 1,055 Outstanding checks in excess of cash 1,468 1,711 Other 3,748 2,857 Accrued expenses $ 18,851 $ 17,667 |
Long-Term Debt and Credit Arr_2
Long-Term Debt and Credit Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following: September 30, December 31, Revolving credit facility $ 51,266 $ 51,794 Term loans 24,376 24,547 Notes payable - buildings 10,466 10,752 Notes payable - equipment and other 919 1,342 Finance lease - buildings 10,383 10,597 Finance lease obligations 140 2,063 Deferred financing costs, net (1,657) (1,797) Total debt 95,893 99,298 Less: current portion of long-term debt 3,197 4,573 Long-term debt $ 92,696 $ 94,725 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Lessee Schedule Of Balance Sheet Information For Operating And Financing Leases | Balance sheet information related to right-of-use assets and liabilities is as follows: Balance Sheet Location September 30, December 31, 2022 Operating Leases: Operating lease right-of-use assets Operating lease right-of-use assets $ 18,780 $ 20,617 Current portion of operating lease liabilities Current portion of operating lease liabilities $ 2,824 $ 2,774 Noncurrent portion of operating lease liabilities Operating lease liabilities 16,676 18,802 Total operating lease liabilities $ 19,500 $ 21,576 Finance Leases: Finance lease right-of-use assets (1) Property, plant, and equipment, net $ 3,445 $ 5,250 Current portion of finance lease liabilities (1) Current portion of long-term debt $ 320 $ 2,321 Noncurrent portion of finance lease liabilities (1) Long-term debt 10,203 10,339 Total financing lease liabilities $ 10,523 $ 12,660 (1) Includes leases classified as failed sale-leaseback transactions. |
Lease, Cost | Lease cost recognized in the consolidated condensed financial statements is summarized as follows: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Operating lease cost $ 1,032 $ 926 $ 3,100 $ 3,122 Finance lease cost: Amortization of lease assets (1) $ 178 $ 205 $ 514 $ 703 Interest on lease liabilities (1) 286 316 943 973 Total finance lease costs (1) $ 464 $ 521 $ 1,457 $ 1,676 (1) Includes leases classified as failed sale-leaseback transactions. |
Lessee's Schedule Of Balance Sheet Information For Operating And Financing Leases | Other supplemental information related to leases is summarized as follows: September 30, September 24, Weighted average remaining lease term (in years): Operating leases 5.95 6.85 Finance leases (1) 15.19 13.70 Weighted average discount rate: Operating leases 6.40 % 6.39 % Finance leases (1) 7.06 % 9.65 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,073 $ 2,940 Operating cash flows from finance leases (1) 943 973 Financing cash flows from finance leases (1) 726 881 (1) Includes leases classified as failed sale-leaseback transactions. |
Lessee, Operating Lease, Liability, Maturity | The following table summarizes the Company's future minimum lease payments under non-cancellable contractual obligations for operating and financing liabilities as of September 30, 2023: Fiscal Year Operating Leases Finance Leases 2023 $ 999 $ 182 2024 4,001 1,077 2025 3,917 1,085 2026 3,709 1,098 2027 3,760 1,111 Thereafter 7,245 12,859 Total future minimum lease payments (undiscounted) 23,631 17,412 Less: Present value discount 4,131 6,889 Total lease liability $ 19,500 $ 10,523 |
Finance Lease, Liability, Fiscal Year Maturity | The following table summarizes the Company's future minimum lease payments under non-cancellable contractual obligations for operating and financing liabilities as of September 30, 2023: Fiscal Year Operating Leases Finance Leases 2023 $ 999 $ 182 2024 4,001 1,077 2025 3,917 1,085 2026 3,709 1,098 2027 3,760 1,111 Thereafter 7,245 12,859 Total future minimum lease payments (undiscounted) 23,631 17,412 Less: Present value discount 4,131 6,889 Total lease liability $ 19,500 $ 10,523 |
Operating Lease, Lease Income | Lease income and sublease income related to fixed lease payments recognized in the consolidated condensed financial statements is summarized as follows: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Operating lease income $ 267 $ — $ 329 $ — |
Lessor, Operating Lease, Payment to be Received, Maturity | The following table summarizes the Company's undiscounted lease payments to be received under operating leases including amounts to be paid by the Company to the head lessor for the next five years and thereafter as of September 30, 2023: Fiscal Year Gross Lease Payments Payments to Head Lessor Net Lease Payments 2023 $ 370 $ 63 $ 308 2024 1,305 251 1,054 2025 1,253 253 1,000 2026 1,278 256 1,022 2027 1,303 259 1,044 Thereafter 766 163 603 Total $ 6,275 $ 1,245 $ 5,031 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of the Company's financial instruments are summarized as follows: September 30, December 31, Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and cash equivalents $ 173 $ 173 $ 363 $ 363 Financial liabilities: Long-term debt, including current portion $ 85,370 $ 76,424 $ 86,638 $ 76,684 Finance leases, including current portion 10,523 9,076 12,660 11,576 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables summarize the pre-tax impact of derivative instruments on the Company's consolidated condensed financial statements: Amount of Gain (Loss) Reclassified from AOCIL on the effective portion into Earnings (1) Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Derivatives designated as hedging instruments: Cash flow hedges - interest rate swaps $ — $ — $ — $ (7) Amount of Gain or (Loss) Recognized on the Dedesignated Portion in Income on Derivative (2) Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Derivatives dedesignated as hedging instruments: Cash flow hedges - interest rate swaps $ — $ — $ — $ 210 (1) The amount of gain (loss) reclassified from AOCIL is included in interest expense on the Company's consolidated condensed financial statements. (2) The amount of gain (loss) recognized in income on the dedesignated and terminated portions of interest rate swaps is included in interest expense on the Company's consolidated condensed statements of operations. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following table sets forth the computation of basic and diluted earnings (loss) per share from continuing operations: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Basic earnings (loss) per share: Loss from continuing operations $ (2,211) $ (8,372) $ (5,382) $ (15,734) Less: Allocation of earnings to participating securities — — — — Loss from continuing operations available to common shareholders - basic $ (2,211) $ (8,372) $ (5,382) $ (15,734) Basic weighted-average shares outstanding (1) 14,824 15,226 14,769 15,196 Basic earnings (loss) per share - continuing operations $ (0.15) $ (0.55) $ (0.36) $ (1.04) Diluted earnings (loss) per share: Loss from continuing operations available to common shareholders - basic $ (2,211) $ (8,372) $ (5,382) $ (15,734) Add: Undistributed earnings reallocated to unvested shareholders — — — — Loss from continuing operations available to common shareholders - basic $ (2,211) $ (8,372) $ (5,382) $ (15,734) Basic weighted-average shares outstanding (1) 14,824 15,226 14,769 15,196 Effect of dilutive securities: Stock options (2) — — — — Directors' stock performance units (2) — — — — Diluted weighted-average shares outstanding (1)(2) 14,824 15,226 14,769 15,196 Diluted earnings (loss) per share - continuing operations $ (0.15) $ (0.55) $ (0.36) $ (1.04) (1) Includes Common and Class B Common shares, excluding unvested participating securities of 732 thousand as of September 30, 2023 and 944 thousand as of September 24, 2022. (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. There were 574 thousand and 130 thousand aggregate shares excluded for the three and nine months ended September 30, 2023 and September 24, 2022, respectively. |
Stock-based Compensation Expe_2
Stock-based Compensation Expense (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Weighted Average Assumptions of Stock Options | The following weighted-average assumptions were used to estimate the fair value of stock options granted during nine months ended September 30, 2023: Risk-free interest rate 3.80 % Expected volatility 97.96 % Expected dividends — % Expected life of options 5 years |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Components of accumulated other comprehensive income, net of tax, are as follows: Post-Retirement Liabilities Balance at December 31, 2022 $ 219 Reclassification of net actuarial gain into earnings from postretirement benefit plans (16) Balance at September 30, 2023 $ 203 |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating (Income) Expense, Net | Other operating (income) expense, net is summarized as follows: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Other operating (income) expense, net: Gain on property, plant and equipment disposals $ — $ (30) $ (1) $ (40) (Gain) loss on currency exchanges (7) 34 35 120 Retirement expense 63 105 176 451 Insurance proceeds — — (246) (199) Lease income (267) — (329) — Miscellaneous (income) expense 64 4 52 (74) Other operating (income) expense, net $ (147) $ 113 $ (313) $ 258 |
Facility Consolidation and Se_2
Facility Consolidation and Severance Expenses, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Costs related to the facility consolidation plans are summarized as follows: As of September 30, 2023 Accrued Balance at December 31, 2022 2023 Expenses To Date (1) 2023 Cash Payments Accrued Balance at September 30, 2023 Total Costs Incurred To Date Total Expected Costs Consolidation of East Coast Manufacturing Plan $ 1,011 $ 2,320 $ 3,271 $ 60 $ 6,169 $ 6,667 COVID-19 Continuity Plan — — — — 2,533 2,533 Total All Plans $ 1,011 $ 2,320 $ 3,271 $ 60 $ 8,702 $ 9,200 Asset Impairments $ — $ — $ — $ — $ 4,059 $ 4,059 Accrued Balance at December 25, 2021 2022 Expenses To Date (1) 2022 Cash Payments Accrued Balance at September 24, 2022 Consolidation of East Coast Manufacturing Plan $ — $ 968 $ 968 $ — COVID-19 Continuity Plan 78 — 78 — Totals $ 78 $ 968 $ 1,046 $ — Asset Impairments $ — $ — $ — $ — (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) | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | 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 Nine Months Ended September 30, September 24, September 30, September 24, Loss from discontinued operations: Workers' compensation costs from former textile operations $ (11) $ (30) $ (56) $ (31) Environmental remediation costs from former textile operations (21) (51) (50) (41) Commercial business operations (173) (327) (438) (818) Loss from discontinued operations, before taxes $ (205) $ (408) $ (544) $ (890) Income tax benefit (22) — (48) — Loss from discontinued operations, net of tax $ (183) $ (408) $ (496) $ (890) |
Discontinued Operations, Balance Sheet | The Company reclassified the following assets and liabilities for discontinued operations in the accompanying consolidated condensed balance sheets: September 30, December 31, Current Assets of Discontinued Operations: Receivables, net $ 172 $ 385 Inventories, net 129 255 Prepaid expenses — 1 Current Assets Held for Discontinued Operations $ 301 $ 641 Long Term Assets of Discontinued Operations: Property, plant and equipment, net $ 180 $ 185 Operating lease right of use assets — 63 Other assets 1,155 1,304 Long Term Assets Held for Discontinued Operations $ 1,335 $ 1,552 Current Liabilities of Discontinued Operations: Accounts payable $ 131 $ 127 Accrued expenses 1,229 2,245 Current portion of operating lease liabilities — 75 Current Liabilities Held for Discontinued Operations $ 1,360 $ 2,447 Long Term Liabilities of Discontinued Operations: Other long term liabilities $ 3,627 $ 3,759 Long Term Liabilities Held for Discontinued Operations $ 3,627 $ 3,759 |
Discontinued Operations, Income Statement | For the three and nine months ended September 30, 2023 and September 24, 2022, the Company reclassified the following operations of the Commercial business included in discontinued operations in the accompanying consolidated condensed statements of operations: Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, Net sales $ 15 $ 710 $ 185 $ 7,622 Cost of sales 31 929 423 7,247 Gross profit (16) (219) (238) 375 Selling and administrative expenses 102 107 150 1,244 Other operating (income) expense, net 55 1 50 (51) Loss from discontinued Commercial business operations $ (173) $ (327) $ (438) $ (818) |
Basis of Presentation (Details)
Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 1 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) $ in Thousands | Jan. 01, 2023 USD ($) |
Cumulative effect of CECL adoption | Accumulated Deficit | Accounting Standards Update 2016-13 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Stockholders' Equity | $ 198 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 68,576 | $ 71,762 | $ 209,669 | $ 233,034 |
Continuing Operations And Discontinued Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 68,576 | 71,762 | 209,669 | 233,034 |
Residential floorcovering products | Continuing Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 67,659 | 70,125 | 206,515 | 227,610 |
Other services | Continuing Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 917 | $ 1,637 | $ 3,154 | $ 5,424 |
Revenue (Contract Balances) (De
Revenue (Contract Balances) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Contract With Customer, Change In Liability [Roll Forward] | ||||
Beginning contract liability | $ 1,034 | $ 1,122 | $ 1,055 | $ 1,285 |
Revenue recognized from contract liabilities included in the beginning balance | (742) | (797) | (862) | (1,096) |
Increases due to cash received, net of amounts recognized in revenue during the period | 785 | 760 | 884 | 896 |
Ending contract liability | $ 1,077 | $ 1,085 | $ 1,077 | $ 1,085 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Product warranty period | 2 years |
Receivables, Net (Details)
Receivables, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 24, 2022 | Jan. 01, 2023 | Dec. 31, 2022 | |
Receivables [Abstract] | |||||
Customers, trade | $ 27,585 | $ 27,585 | $ 23,111 | ||
Other receivables | 928 | 928 | 2,009 | ||
Gross receivables | 28,513 | 28,513 | 25,120 | ||
Less: allowance for expected credit losses | (439) | (439) | (111) | ||
Receivables, net | 28,074 | 28,074 | $ 25,009 | ||
Expense for expected credit losses | 49 | 21 | $ 39 | ||
Allowance for loan and lease loss, recovery of bad debts | $ 21 | $ 82 | |||
Operating Income (Loss) | Cumulative effect of CECL adoption | Accounting Standards Update 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative impact on earnings | $ 388 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 26,349 | $ 29,209 |
Work-in-process | 12,034 | 13,028 |
Finished goods | 61,717 | 67,018 |
Supplies and other | 64 | 66 |
LIFO reserve | (20,224) | (25,622) |
Inventories, net | $ 79,940 | $ 83,699 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $ 211,689 | $ 211,689 | $ 211,472 | ||
Accumulated depreciation | (170,737) | (170,737) | (166,556) | ||
Property, plant and equipment, net | 40,952 | 40,952 | 44,916 | ||
Depreciation | 1,684 | $ 1,959 | 4,832 | $ 5,933 | |
Land and improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 3,417 | 3,417 | 3,417 | ||
Buildings and improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 52,049 | 52,049 | 51,132 | ||
Machinery and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 155,080 | 155,080 | 155,317 | ||
Assets under construction | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $ 1,143 | $ 1,143 | $ 1,606 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jul. 01, 2023 | Dec. 31, 2022 | Sep. 24, 2022 | Jun. 25, 2022 | Dec. 25, 2021 |
Payables and Accruals [Abstract] | ||||||
Compensation and benefits | $ 5,062 | $ 5,579 | ||||
Provision for customer rebates, claims and allowances | 7,496 | 6,465 | ||||
Advanced customer deposits | 1,077 | $ 1,034 | 1,055 | $ 1,085 | $ 1,122 | $ 1,285 |
Outstanding checks in excess of cash | 1,468 | 1,711 | ||||
Other | 3,748 | 2,857 | ||||
Accrued expenses | $ 18,851 | $ 17,667 |
Long-Term Debt and Credit Arr_3
Long-Term Debt and Credit Arrangements (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Revolving credit facility | $ 51,266 | $ 51,794 |
Term loans | 24,376 | 24,547 |
Notes payable - buildings | 10,466 | 10,752 |
Notes payable - equipment and other | 919 | 1,342 |
Finance lease - buildings | 10,383 | 10,597 |
Finance lease obligations | 140 | 2,063 |
Deferred financing costs, net | (1,657) | (1,797) |
Total debt | 95,893 | 99,298 |
Less: current portion of long-term debt | 3,197 | 4,573 |
Long-term debt | $ 92,696 | $ 94,725 |
Long-Term Debt and Credit Arr_4
Long-Term Debt and Credit Arrangements (Revolving Credit Facility) (Details) - Amended Revolving Credit Facility - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | Oct. 30, 2020 | |
Debt Disclosure [Line Items] | |||
Maximum borrowing capacity | $ 75,000,000 | ||
Basis spread on variable rate | 0.75% | ||
Minimum fixed charge coverage ratio | 1.10 | ||
Basis spread on variable rate at end of period | 1.50% | ||
Commitment fee percentage | 0.25% | ||
Debt, weighted average interest rate | 8.08% | 6.81% | |
Financial covenants (less than) | $ 9,013,000 | ||
Total loan availability | $ 75,000 | ||
Covenant period | 30 days | ||
Remaining borrowing capacity | $ 15,855,000 | ||
Minimum | |||
Debt Disclosure [Line Items] | |||
Borrowing capacity for covenant applicability (in percent) | 12.50% | ||
Minimum | Libor | |||
Debt Disclosure [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Minimum | Daily Libor | |||
Debt Disclosure [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Maximum | |||
Debt Disclosure [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Borrowing capacity for covenant applicability (in percent) | 12.50% | ||
Maximum | Libor | |||
Debt Disclosure [Line Items] | |||
Basis spread on variable rate | 2% | ||
Maximum | Daily Libor | |||
Debt Disclosure [Line Items] | |||
Basis spread on variable rate | 1% | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Disclosure [Line Items] | |||
Basis spread on variable rate | 0.10% | ||
Basis spread on variable rate at end of period | 2.50% |
Long-Term Debt and Credit Arr_5
Long-Term Debt and Credit Arrangements (Term Loans) (Details) - USD ($) $ in Thousands | Oct. 29, 2020 | Oct. 28, 2020 |
AmeriState Bank | ||
Debt Disclosure [Line Items] | ||
Secured debt other term loans | $ 10,000 | |
Long-term debt, term | 25 years | |
Debt instrument, interest rate, stated percentage | 5% | |
Interest rate for first five years (in percent) | 4% | |
Interest rate, period | 5 years | |
Interest rate after five years (in percent) | 3.50% | |
Greater Nevada Credit Union | ||
Debt Disclosure [Line Items] | ||
Secured debt other term loans | $ 15,000 | |
Long-term debt, term | 10 years | |
Debt instrument, interest rate, stated percentage | 5% | |
Interest rate for first five years (in percent) | 4% | |
Interest rate, period | 5 years | |
Interest rate after five years (in percent) | 3.50% | |
Interest only term | 3 years | |
Principal and interest term | 7 years |
Long-Term Debt and Credit Arr_6
Long-Term Debt and Credit Arrangements (Notes Payable - Buildings) (Details) - USD ($) $ in Thousands | Mar. 16, 2022 | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Notes payable - buildings | $ 10,466 | $ 10,752 | |
Building - Adairsville | |||
Debt Instrument [Line Items] | |||
Debt instrument, term | 20 years | ||
Notes payable - buildings | $ 11 | ||
Debt instrument, interest rate, stated percentage | 3.81% | ||
Repayments of debt | $ 5,456 |
Long-Term Debt and Credit Arr_7
Long-Term Debt and Credit Arrangements (Notes Payable - Equipment and Other) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 24, 2022 | |
Debt Instrument [Line Items] | ||
Borrowings on notes payable - buildings | $ 0 | $ 11,000 |
Gain on extinguishment of debt | 625 | $ 0 |
Equipment Note Payable | ||
Debt Instrument [Line Items] | ||
Non-cash financing activity | 1,544 | |
Gain on extinguishment of debt | 625 | |
Equipment purchased under notes payable | $ 919 | |
Maximum | Equipment Note Payable | ||
Debt Instrument [Line Items] | ||
Term of note payable | 1 year 3 months | |
Debt instrument, interest rate, stated percentage | 7.84% |
Long-Term Debt and Credit Arr_8
Long-Term Debt and Credit Arrangements (Finance Lease - Buildings) (Details) $ in Thousands | Jan. 14, 2019 USD ($) a option | Sep. 30, 2023 USD ($) |
Debt Instrument [Line Items] | ||
2024 | $ 1,077 | |
Finance Lease - Saraland Building | ||
Debt Instrument [Line Items] | ||
Area of land | a | 17.12 | |
Lessee - finance lease, selling price of building | $ 11,500 | |
Lessee, finance lease, term of contract | 20 years | |
2024 | $ 977 | |
Rent escalation | 1.25% | |
Options to renew term | option | 2 | |
Lessor, direct financing lease, renewal term | 10 years |
Leases Balance Sheet Informatio
Leases Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 18,780 | $ 20,617 |
Current portion of operating lease liabilities | 2,824 | 2,774 |
Noncurrent portion of operating lease liabilities | 16,676 | 18,802 |
Total operating lease liabilities | 19,500 | 21,576 |
Finance lease right-of-use assets | 3,445 | 5,250 |
Current portion of finance lease liabilities | 320 | 2,321 |
Noncurrent portion of finance lease liabilities | 10,203 | 10,339 |
Total lease liability | $ 10,523 | $ 12,660 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | PROPERTY, PLANT AND EQUIPMENT, NET | PROPERTY, PLANT AND EQUIPMENT, NET |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt | Current portion of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | LONG-TERM DEBT, NET | LONG-TERM DEBT, NET |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,032 | $ 926 | $ 3,100 | $ 3,122 |
Amortization of lease assets | 178 | 205 | 514 | 703 |
Interest on lease liabilities | 286 | 316 | 943 | 973 |
Total finance lease costs | $ 464 | $ 521 | $ 1,457 | $ 1,676 |
Leases Supplemental Lease Infor
Leases Supplemental Lease Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 24, 2022 | |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term | 5 years 11 months 12 days | 6 years 10 months 6 days |
Finance lease, weighted average remaining lease term | 15 years 2 months 8 days | 13 years 8 months 12 days |
Operating lease, weighted average discount rate, percent | 6.40% | 6.39% |
Finance lease, weighted average discount rate, percent | 7.06% | 9.65% |
Operating cash flows from operating leases | $ 3,073 | $ 2,940 |
Operating cash flows from financing leases | 943 | 973 |
Financing cash flows from financing leases | $ 726 | $ 881 |
Leases Contractual Obligations
Leases Contractual Obligations for Operating and Financing Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2023 | $ 999 | |
2024 | 4,001 | |
2025 | 3,917 | |
2026 | 3,709 | |
2027 | 3,760 | |
Thereafter | 7,245 | |
Total future minimum lease payments (undiscounted) | 23,631 | |
Less: Present value discount | 4,131 | |
Total operating lease liabilities | 19,500 | $ 21,576 |
Finance Leases | ||
2023 | 182 | |
2024 | 1,077 | |
2025 | 1,085 | |
2026 | 1,098 | |
2027 | 1,111 | |
Thereafter | 12,859 | |
Total future minimum lease payments (undiscounted) | 17,412 | |
Less: Present value discount | 6,889 | |
Total lease liability | $ 10,523 | $ 12,660 |
Leases Leases as Lessor (Detail
Leases Leases as Lessor (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Leases [Abstract] | ||||
Operating lease income | $ 267 | $ 0 | $ 329 | $ 0 |
Leases Lease Payments to be Rec
Leases Lease Payments to be Received Under Operating Leases (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Gross Lease Payments | |
2023 | $ 370 |
2024 | 1,305 |
2025 | 1,253 |
2026 | 1,278 |
2027 | 1,303 |
Thereafter | 766 |
Total | 6,275 |
Payments to Head Lessor | |
2023 | 63 |
2024 | 251 |
2025 | 253 |
2026 | 256 |
2027 | 259 |
Thereafter | 163 |
Total future minimum lease payments (undiscounted) | 1,245 |
Net Lease Payments | |
2023 | 308 |
2024 | 1,054 |
2025 | 1,000 |
2026 | 1,022 |
2027 | 1,044 |
Thereafter | 603 |
Total | $ 5,031 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amount and Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial liabilities: | ||
Finance leases, including current portion | $ 10,523 | $ 12,660 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 173 | 363 |
Financial liabilities: | ||
Long-term debt, including current portion | 85,370 | 86,638 |
Finance leases, including current portion | 10,523 | 12,660 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 173 | 363 |
Financial liabilities: | ||
Long-term debt, including current portion | 76,424 | 76,684 |
Finance leases, including current portion | $ 9,076 | $ 11,576 |
Derivatives (Schedule of Deriva
Derivatives (Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 16, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Cash flow hedges - interest rate swaps | [1] | $ 0 | $ 0 | $ 0 | $ (210) | |
Net of tax, that had been deferred in AOCIL were reclassified into interest expense | 0 | 0 | 0 | 177 | ||
Interest Rate Swap | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Payment to terminate the swap agreements | $ 73 | |||||
Net of tax, that had been deferred in AOCIL were reclassified into interest expense | $ 177 | |||||
Designated as Hedging Instrument | Interest Rate Swap | Interest Expense | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Cash flow hedges - interest rate swaps | 0 | 0 | 0 | (7) | ||
Designated as Hedging Instrument | Interest Rate Swap | Other Nonoperating Income (Expense) | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Cash flow hedges - interest rate swaps | $ 0 | $ 0 | $ 0 | $ 210 | ||
[1]Amounts for postretirement plans reclassified from accumulated other comprehensive income to net loss were included in selling and administrative expenses in the Company's consolidated condensed statements of operations. |
Employee Benefit Plans (Defined
Employee Benefit Plans (Defined Contribution Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Non-Collective-Bargaining Plan | ||||
Defined Contribution Plans [Line Items] | ||||
Percentage of employees covered | 98% | |||
Employer matching contribution, percentage | 1% | |||
Employer matching contribution, discretionary percentage | 2% | |||
Maximum annual contribution per employee, percentage | 3% | |||
Cost recognized | $ 63 | $ 230 | $ 189 | |
Reversal of cost recognized | $ 94 | |||
Collective-Bargaining Plan | ||||
Defined Contribution Plans [Line Items] | ||||
Percentage of employees covered | 2% | |||
Maximum annual contribution per employee, percentage | 2.75% | |||
Cost recognized | $ 2 | $ 14 | $ 8 | $ 60 |
Employee Benefit Plans (Non-qua
Employee Benefit Plans (Non-qualified Retirement Savings Plan) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Liability to participants | $ 12,804 | $ 12,346 |
Cash surrender value of life insurance | $ 13,396 | $ 12,296 |
Employee Benefit Plans (Multi-E
Employee Benefit Plans (Multi-Employer Pension Plan) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||||
Multiemployer plan, employer contribution, cost | $ 6 | $ 38 | $ 16 | $ 141 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax (benefit) rate | 3.04% | 0.59% | |
Net deferred tax liability | $ 91 | $ 91 | |
Unrecognized tax benefits | 549 | 518 | |
Income tax penalties and interest accrued | $ 0 | $ 0 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Basic earnings (loss) per share: | ||||
Loss from continuing operations | $ (2,211) | $ (8,372) | $ (5,382) | $ (15,734) |
Less: Allocation of earnings to participating securities | 0 | 0 | 0 | 0 |
Loss from continuing operations available to common shareholders - basic | $ (2,211) | $ (8,372) | $ (5,382) | $ (15,734) |
Basic weighted-average shares outstanding | 14,824 | 15,226 | 14,769 | 15,196 |
Basic earnings (loss) per share - continuing operations (in dollars per share) | $ (0.15) | $ (0.55) | $ (0.36) | $ (1.04) |
Diluted earnings (loss) per share: | ||||
Loss from continuing operations available to common shareholders - basic | $ (2,211) | $ (8,372) | $ (5,382) | $ (15,734) |
Add: Undistributed earnings reallocated to unvested shareholders | 0 | 0 | 0 | 0 |
Loss from continuing operations available to common shareholders - basic | $ (2,211) | $ (8,372) | $ (5,382) | $ (15,734) |
Effect of dilutive securities: | ||||
Stock options (in shares) | 0 | 0 | 0 | 0 |
Directors' stock performance units (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted-average shares outstanding | 14,824 | 15,226 | 14,769 | 15,196 |
Diluted earnings (loss) per share - continuing operations (in dollars per share) | $ (0.15) | $ (0.55) | $ (0.36) | $ (1.04) |
Common shares, excluding unvested participating securities | 732 | 944 | 732 | 944 |
Antidilutive securities excluded from computation of earnings per share, (in shares) | 574 | 130 |
Stock-based Compensation Expe_3
Stock-based Compensation Expense (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
May 25, 2023 USD ($) tradingDay $ / shares shares | May 03, 2023 USD ($) $ / shares shares | Sep. 30, 2023 USD ($) | Sep. 24, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 24, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment arrangement, expense | $ | $ 182 | $ 207 | $ 550 | $ 559 | ||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock granted (in shares) | shares | 40,000 | |||||
Fair value of restricted stock | $ | $ 28 | |||||
Weighted average value of restricted stock (in dollars per shares) | $ / shares | $ 0.70 | |||||
Period for recognition | 1 year | |||||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted in period (in shares) | shares | 444,000 | |||||
Options granted, weighted average exercise price (in dollars per share) | $ / shares | $ 1 | |||||
Grant-date fair value option | $ | $ 186 | |||||
Award vesting period | 2 years | |||||
Minimum market value (in dollars per share) | $ / shares | $ 3 | |||||
Consecutive trading days | tradingDay | 5 |
Stock-based Compensation Expe_4
Stock-based Compensation Expense Weighted Average Assumptions of Stock Options (Details) | 3 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Risk-free interest rate | 3.80% |
Expected volatility | 97.96% |
Expected dividends | 0% |
Expected life of options | 5 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - Post-Retirement Liabilities $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance, beginning | $ 219 |
Reclassification of net actuarial gain into earnings from postretirement benefit plans | (16) |
Balance ending | $ 203 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Other Income and Expenses [Abstract] | ||||
Gain on property, plant and equipment disposals | $ 0 | $ (30) | $ (1) | $ (40) |
(Gain) loss on currency exchanges | (7) | 34 | 35 | 120 |
Retirement expense | 63 | 105 | 176 | 451 |
Insurance proceeds | 0 | 0 | (246) | (199) |
Lease income | (267) | 0 | (329) | 0 |
Miscellaneous (income) expense | 64 | 4 | 52 | (74) |
Other operating (income) expense, net | (147) | $ 113 | (313) | 258 |
Other income | $ 622 | 634 | ||
Gain on extinguishment of debt | $ 625 | $ 0 |
Facility Consolidation and Se_3
Facility Consolidation and Severance Expenses, Net (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 24, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Accrued, beginning balance | $ 1,011 | $ 78 |
2022 Expenses to date | 2,320 | 968 |
2023 Cash Payments | 3,271 | 1,046 |
Accrued, ending balance | 60 | 0 |
Total Costs Incurred To Date | 8,702 | |
Total Expected Costs | 9,200 | |
Consolidation of East Coast Manufacturing Plan | ||
Restructuring Reserve [Roll Forward] | ||
Accrued, beginning balance | 1,011 | 0 |
2022 Expenses to date | 2,320 | 968 |
2023 Cash Payments | 3,271 | 968 |
Accrued, ending balance | 60 | 0 |
Total Costs Incurred To Date | 6,169 | |
Total Expected Costs | 6,667 | |
COVID-19 Continuity Plan | ||
Restructuring Reserve [Roll Forward] | ||
Accrued, beginning balance | 0 | 78 |
2022 Expenses to date | 0 | 0 |
2023 Cash Payments | 0 | 78 |
Accrued, ending balance | 0 | 0 |
Total Costs Incurred To Date | 2,533 | |
Total Expected Costs | 2,533 | |
Asset Impairments | ||
Restructuring Reserve [Roll Forward] | ||
Accrued, beginning balance | 0 | 0 |
2022 Expenses to date | 0 | 0 |
2023 Cash Payments | 0 | 0 |
Accrued, ending balance | 0 | $ 0 |
Total Costs Incurred To Date | 4,059 | |
Total Expected Costs | $ 4,059 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax [Abstract] | ||||
Loss from discontinued operations, net of tax | $ (183) | $ (408) | $ (496) | $ (890) |
Previously Discontinued Operations | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax [Abstract] | ||||
Workers' compensation costs from former textile operations | (11) | (30) | (56) | (31) |
Environmental remediation costs from former textile operations | (21) | (51) | (50) | (41) |
Commercial business operations | (173) | (327) | (438) | (818) |
Loss from discontinued operations, before taxes | (205) | (408) | (544) | (890) |
Income tax benefit | (22) | 0 | (48) | 0 |
Loss from discontinued operations, net of tax | $ (183) | $ (408) | $ (496) | $ (890) |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) $ in Thousands | 9 Months Ended | ||
Sep. 13, 2021 | Sep. 30, 2023 USD ($) installment | Dec. 31, 2022 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Accrual for environmental loss contingencies | $ 2,205 | $ 2,205 | |
Discontinued Operations, Disposed of by Sale | Commercial Divestiture | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued operations, noncompete, term | 5 years | ||
Escrow deposit | $ 2,100 | ||
Escrow deposits, number of installments | installment | 2 | ||
Escrow deposit, initial amount paid, percentage | 50% | ||
Escrow deposit, initial amount paid, period | 90 days | ||
Escrow deposit, remaining amount paid, period | 18 months | ||
Payments for deposits with other institutions | $ 2,100 |
Discontinued Operations (Balanc
Discontinued Operations (Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets of Discontinued Operations: | ||
Current Assets Held for Discontinued Operations | $ 301 | $ 641 |
Long Term Assets of Discontinued Operations: | ||
Long Term Assets Held for Discontinued Operations | 1,335 | 1,552 |
Current Liabilities of Discontinued Operations: | ||
Current Liabilities Held for Discontinued Operations | 1,360 | 2,447 |
Long Term Liabilities of Discontinued Operations: | ||
Long Term Liabilities Held for Discontinued Operations | 3,627 | 3,759 |
Discontinued Operations, Disposed of by Sale | Commercial Divestiture | ||
Current Assets of Discontinued Operations: | ||
Receivables, net | 172 | 385 |
Inventories, net | 129 | 255 |
Prepaid expenses | 0 | 1 |
Current Assets Held for Discontinued Operations | 301 | 641 |
Long Term Assets of Discontinued Operations: | ||
Property, plant and equipment, net | 180 | 185 |
Operating lease right of use assets | 0 | 63 |
Other assets | 1,155 | 1,304 |
Long Term Assets Held for Discontinued Operations | 1,335 | 1,552 |
Current Liabilities of Discontinued Operations: | ||
Accounts payable | 131 | 127 |
Accrued expenses | 1,229 | 2,245 |
Current portion of operating lease liabilities | 0 | 75 |
Current Liabilities Held for Discontinued Operations | 1,360 | 2,447 |
Long Term Liabilities of Discontinued Operations: | ||
Other long term liabilities | 3,627 | 3,759 |
Long Term Liabilities Held for Discontinued Operations | $ 3,627 | $ 3,759 |
Discontinued Operations (Statem
Discontinued Operations (Statement of Operations) (Details) - Discontinued Operations, Disposed of by Sale - Commercial Divestiture - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | $ 15 | $ 710 | $ 185 | $ 7,622 |
Cost of sales | 31 | 929 | 423 | 7,247 |
Gross profit | (16) | (219) | (238) | 375 |
Selling and administrative expenses | 102 | 107 | 150 | 1,244 |
Other operating (income) expense, net | 55 | 1 | 50 | (51) |
Loss from discontinued Commercial business operations | $ (173) | $ (327) | $ (438) | $ (818) |
Related Party Transactions (Det
Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Related Party Transaction [Line Items] | ||||
Ownership of common stock, percentage | 7.80% | 7.80% | ||
Voting interest of common stock, percentage | 3.10% | 3.10% | ||
Related party transaction, amounts of transaction | $ 0 | $ 3 | $ 64 | $ 917 |
Purchases from related party, percentage | 0% | 0% | 0% | 2% |