RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

12 Months Ended

Jun. 29, 2024

Accounting Changes and Error Corrections [Abstract]

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

In connection with the preparation of the Company's consolidated financial statements as of and for the year ended June 29, 2024, the Company concluded that cost recovery of material price variances was not being consistently recorded across its facilities. Material price variance occurs when the price the Company pays for materials exceeds the price quoted to customers, and the Company typically recovers the excess cost from customers through a sales price adjustment. Per Company policy, this

cost recovery should be recorded as net sales when inventory enters the production process, however, certain of the Company’s facilities were recording the cost recovery as a reduction to cost of sales. These errors resulted in an understatement of both net sales and cost of sales for the years ended July 1, 2023 and July 2, 2022 (the "impacted annual periods"). As a result, the Company has restated its consolidated statements of operations for the impacted annual periods presented herein. The nature of the restatement adjustments shown below and their impact on the previously issued consolidated statements of operations is to increase net sales and increase cost of sales to appropriately reflect these transactions as sales price adjustments.

	Fiscal Year Ended 7/1/2023
CORRECTED CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except per share information)	As previously reported		Adjustments		As restated
Net sales	$	588,135	$	17,180	$	605,315
Cost of sales	540,663		17,180		557,843
Gross profit	47,472		—		47,472
Research, development and engineering expenses	9,735		—		9,735
Selling, general and administrative expenses	25,715		—		25,715
Gain on insurance proceeds, net of losses	(4,301)		—		(4,301)
Total operating expenses	31,149		—		31,149
Operating income	16,323		—		16,323
Interest expense, net	10,023		—		10,023
Income before income taxes	6,300		—		6,300
Income tax provision	1,143		—		1,143
Net income	$	5,157	$	—	$	5,157
Net income per share — Basic	$	0.48	$	—	$	0.48
Weighted average shares outstanding — Basic	10,762		—		10,762
Net income per share — Diluted	$	0.47	$	—	$	0.47
Weighted average shares outstanding — Diluted	10,938		—		10,938

	Fiscal Year Ended 7/2/2022
CORRECTED CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except per share information)	As previously reported		Adjustments		As restated
Net sales	$	531,815	$	12,362	$	544,177
Cost of sales	488,601		12,362		500,963
Gross profit	43,214		—		43,214
Research, development and engineering expenses	9,821		—		9,821
Selling, general and administrative expenses	24,598		—		24,598
Gain on insurance proceeds, net of losses	—		—		—
Total operating expenses	34,419		—		34,419
Operating income	8,795		—		8,795
Interest expense, net	5,104		—		5,104
Income before income taxes	3,691		—		3,691
Income tax provision	314		—		314
Net income	$	3,377	$	—	$	3,377
Net income per share — Basic	$	0.31	$	—	$	0.31
Weighted average shares outstanding — Basic	10,762		—		10,762
Net income per share — Diluted	$	0.31	$	—	$	0.31
Weighted average shares outstanding — Diluted	11,063		—		11,063

All referenced amounts for prior periods in these financial statements and the notes herein reflect the balances and amounts on a restated basis.