As of June 27, 2021 |
As of December 31, 2020 |
|||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Accounts receivable, less allowance for credit losses of $ |
||||||||
Inventory |
||||||||
Prepaids and other current assets |
||||||||
Total current assets |
||||||||
Property, plant, and equipment, net |
||||||||
Goodwill |
||||||||
Other intangibles assets, net |
||||||||
Total assets |
$ | $ | ||||||
LIABILITIES AND STOCKHOLDER’S EQUITY |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued interest |
||||||||
Accrued liabilities |
||||||||
Acquisition contingent consideration payable |
||||||||
Current portion of long-term debt |
||||||||
Total current liabilities |
||||||||
Long-term debt, net of current portion |
||||||||
Long-term debt due to related party |
||||||||
Deferred taxes |
||||||||
Other noncurrent liabilities |
||||||||
Total liabilities |
||||||||
Commitments and contingencies (Refer to Note 13 - Commitments and Contingencies) |
||||||||
Common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Retained earnings |
||||||||
Total stockholder’s equity |
||||||||
Total liabilities and stockholder’s equity |
$ | $ | ||||||
For the thirteen weeks ended | For the twenty-six weeks ended |
|||||||||||||||
June 27, 2021 |
June 28, 2020 |
June 27, 2021 |
June 28, 2020 |
|||||||||||||
Net sales |
$ | $ | $ | $ | ||||||||||||
Cost of goods sold |
||||||||||||||||
Gross profit |
||||||||||||||||
Selling, general, and administrative |
||||||||||||||||
Research and development costs |
||||||||||||||||
Amortization of intangibles |
||||||||||||||||
Acquisition and restructuring costs |
||||||||||||||||
Related party acquisition and management fee costs |
||||||||||||||||
Other expense (income) |
( |
) | ( |
) | ( |
) | ||||||||||
Total operating expenses |
||||||||||||||||
Operating income |
||||||||||||||||
Interest expense |
||||||||||||||||
Income before income taxes |
||||||||||||||||
Income tax expense |
||||||||||||||||
Net income |
$ | $ | $ | $ | ||||||||||||
Comprehensive income: |
||||||||||||||||
Foreign currency translation adjustment |
— | — | ||||||||||||||
Total comprehensive income |
$ | $ | $ | $ | ||||||||||||
Common Stock | ||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital |
Accumulated Other Comprehensive Loss |
Retained Earnings (Accumulated Deficit) |
Total | |||||||||||||||||||
Balance at December 31, 2019 |
$ | — | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Equity compensation |
— | — | — | — | ||||||||||||||||||||
Balance at March 29, 2020 |
— | ( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Equity compensation |
— | — | — | — | ||||||||||||||||||||
Capital distributions |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
|
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|
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Balance at June 28, 2020 |
$ | — | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||
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|
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|
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Balance at December 31, 2020 |
$ | — | $ | $ | ( |
) | $ | $ | ||||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Equity compensation |
— | — | — | — | ||||||||||||||||||||
Foreign currency translation |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at March 28, 2021 |
— | ( |
) | |||||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Equity compensation |
— | — | — | — | ||||||||||||||||||||
Foreign currency translation |
— | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at June 27, 2021 |
$ | — | $ | $ | ( |
) | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the twenty-six weeks ended |
||||||||
June 27, 2021 | June 28, 2020 | |||||||
OPERATING ACTIVITIES |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash from operating activities: |
||||||||
Depreciation |
||||||||
Amortization of intangible assets |
||||||||
Amortization of deferred loan costs |
||||||||
Increase in acquisition earn out liability |
— | |||||||
Equity compensation |
||||||||
Change in deferred taxes |
||||||||
Loss (gain) on disposal of property, plant and equipment |
( |
) | ||||||
Allowance for credit losses |
||||||||
Change in operating assets and liabilities: |
||||||||
Accounts receivable |
( |
) | ( |
) | ||||
Inventories |
||||||||
Prepaids and other current assets |
( |
) | ||||||
Accounts payable |
||||||||
Accrued interest |
( |
) | ( |
) | ||||
Accrued liabilities |
||||||||
Net cash from operating activities |
||||||||
INVESTING ACTIVITIES |
||||||||
Capital expenditures |
( |
) | ( |
) | ||||
Proceeds from the disposal of fixed assets |
— | |||||||
Cash paid for acquisitions, net |
( |
) | — | |||||
Trademark acquisition |
— | ( |
) | |||||
Net cash used in investing activities |
( |
) | ( |
) | ||||
FINANCING ACTIVITIES |
||||||||
Net change under revolving credit agreement |
— | |||||||
Principal payments on long-term debt |
( |
) | ( |
) | ||||
Capital distributions |
— | ( |
) | |||||
Net cash (used in) from financing activities |
( |
) | ||||||
Net change in cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents: |
||||||||
Beginning of period |
||||||||
End of period |
$ | $ | ||||||
Supplemental disclosures of cash flow information: |
||||||||
Cash paid for interest |
$ | $ | ||||||
Cash paid for income taxes |
$ | $ | — |
2. |
ACQUISITIONS |
Cash |
$ | |||
Accounts receivable |
||||
Inventory |
||||
Property, plant and equipment |
||||
Other assets |
||||
Tradenames |
||||
Customer relationships |
||||
Goodwill |
||||
Accounts payable |
( |
) | ||
Accrued liabilities |
( |
) | ||
$ | ||||
November 16, 2020 (as initially reported) |
Measurement Period Adjustments |
November 16, 2020 (as adjusted) |
||||||||||
Cash |
$ | $ | $ | |||||||||
Accounts receivable |
||||||||||||
Inventory |
( |
) | ||||||||||
Property, plant and equipment |
||||||||||||
Other assets |
||||||||||||
Tradenames |
||||||||||||
Customer relationships |
||||||||||||
Patents |
||||||||||||
Goodwill |
||||||||||||
Accounts payable |
( |
) | ( |
) | ||||||||
Accrued liabilities |
( |
) | ( |
) | ||||||||
Deferred tax liability |
( |
) | ( |
) | ||||||||
Debt |
( |
) | ( |
) | ||||||||
$ | $ | $ | ||||||||||
Cash |
$ | |||
Accounts receivable |
||||
Inventory |
||||
Property, plant and equipment |
||||
Other assets |
||||
Tradenames |
||||
Customer relationships |
||||
Goodwill |
||||
Accounts payable |
( |
) | ||
Accrued liabilities |
( |
) | ||
Deferred tax liability |
( |
) | ||
$ | ||||
Accounts receivable |
$ | |||
Inventory |
||||
Property, plant and equipment |
||||
Other assets |
||||
Tradenames |
||||
Customer relationships |
||||
Patents |
||||
Technology intangibles |
||||
Goodwill |
||||
Accounts payable |
( |
) | ||
Accrued liabilities |
( |
) | ||
$ | ||||
For the thirteen weeks ended | For the twenty-six weeks ended |
|||||||||||||||
June 27, 2021 |
June 28, 2020 |
June 27, 2021 |
June 28, 2020 |
|||||||||||||
Pro forma net sales |
$ | $ | $ | $ | ||||||||||||
Pro forma net income |
3. |
INVENTORY |
June 27, 2021 |
December 31, 2020 |
|||||||
Raw materials |
$ | $ | ||||||
Work-in-process |
||||||||
Finished goods |
||||||||
$ | $ | |||||||
4. |
PROPERTY, PLANT AND EQUIPMENT, NET |
June 27, 2021 |
December 31, 2020 |
|||||||
Land |
$ | $ | ||||||
Buildings and improvements |
||||||||
Machinery and equipment |
||||||||
Construction in process |
||||||||
Total property, plant and equipment |
||||||||
Less: accumulated depreciation |
||||||||
Property, plant and equipment, net |
$ | $ | ||||||
June 27, 2021 |
December 31, 2020 |
|||||||
United States |
$ | $ | ||||||
International |
||||||||
Total property, plant and equipment |
||||||||
5. |
INTANGIBLE ASSETS |
June 27, 2021 | ||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Value |
||||||||||
Finite-lived intangible assets: |
||||||||||||
Customer relationships |
$ | $ | ( |
) | $ | |||||||
Tradenames |
( |
) | ||||||||||
Technology |
( |
) | ||||||||||
Total finite-lived intangible assets |
$ | $ | ( |
) | $ | |||||||
Indefinite-lived intangible assets: |
||||||||||||
Tradenames |
$ | $ | — | $ |
December 31, 2020 | ||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Value |
||||||||||
Finite-lived intangible assets: |
||||||||||||
Customer relationships |
$ | $ | ( |
) | $ | |||||||
Tradenames |
( |
) | ||||||||||
Technology |
( |
) | ||||||||||
Total finite-lived intangible assets |
$ | $ | ( |
) | $ | |||||||
Indefinite-lived intangible assets: |
||||||||||||
Tradenames |
$ | $ | — | $ |
2021 (excluding the twenty-six weeks ended June 27, 2021) |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
6. |
DEBT |
June 27, 2021 |
December 31, 2020 |
|||||||
First lien note |
$ | $ | ||||||
Second lien note |
||||||||
Other |
||||||||
Less unamortized debt issuance costs |
( |
) | ( |
) | ||||
Less current portion of long-term debt |
( |
) | ( |
) | ||||
$ | $ | |||||||
Debt | Debt Issuance Costs |
|||||||
2021 (remaining six months) |
$ | $ | ||||||
2022 |
||||||||
2023 |
||||||||
2024 |
||||||||
2025 |
||||||||
Thereafter |
||||||||
$ | $ | |||||||
7. |
REVENUE |
For the thirteen weeks ended | For the twenty-six weeks ended |
|||||||||||||||
June 27, 2021 | June 28, 2020 | June 27, 2021 | June 28, 2020 | |||||||||||||
Electronic systems |
$ | $ | $ | $ | ||||||||||||
Mechanical systems |
||||||||||||||||
Exhaust |
||||||||||||||||
Accessories |
||||||||||||||||
Safety |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total sales |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
For the thirteen weeks ended | For the twenty-six weeks ended |
|||||||||||||||
June 27, 2021 | June 28, 2020 | June 27, 2021 | June 28, 2020 | |||||||||||||
United States |
$ | $ | $ | $ | ||||||||||||
Italy |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total sales |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
8. |
INCOME TAXES |
For the thirteen weeks ended | For the the twenty-six weeks ended |
|||||||||||||||
June 27, 2021 | June 28, 2020 | June 27, 2021 | June 28, 2020 | |||||||||||||
Provision for income taxes |
$ | $ | $ | $ | ||||||||||||
Effective tax rates |
% | % | % | % |
For the thirteen weeks ended | For the twenty-six weeks ended |
|||||||||||||||
June 27, 2021 | June 28, 2020 | June 27, 2021 | June 28, 2020 | |||||||||||||
Components of Expense |
||||||||||||||||
Service cost |
$ | $ | $ | $ | ||||||||||||
Interest cost |
||||||||||||||||
Expected return on plan assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Amortization of net loss |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net periodic benefit cost |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
10. |
EQUITY-BASED COMPENSATION PLANS |
11. |
LEASE COMMITMENTS |
2021 (excluding the twenty-six weeks ended June 27, 2021) |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
12. |
ACQUISITION, RESTRUCTURING AND MANAGEMENT FEE COSTS |
13. |
COMMITMENTS AND CONTINGENCIES |
For the thirteen weeks ended | For the twenty-six weeks ended |
|||||||||||||||
June 27, 2021 | June 28, 2020 | June 27, 2021 | June 28, 2020 | |||||||||||||
Beginning balance |
$ | $ | $ | $ | ||||||||||||
Accrued for current year warranty claims |
||||||||||||||||
Settlement of warranty claims |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Ending balance |
$ | $ | $ | $ | ||||||||||||
14. |
SUBSEQUENT EVENTS |