QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | ☒ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
Page | ||||||||
PART I. FINANCIAL INFORMATION | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II. OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
June 25, 2021 (unaudited) | December 25, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowance of $ | |||||||||||
Inventories, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Equipment, leasehold improvements and software, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Deferred taxes, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Short-term operating lease liabilities | |||||||||||
Accrued compensation | |||||||||||
Current portion of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net of current portion | |||||||||||
Operating lease liabilities | |||||||||||
Other liabilities and deferred credits | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred Stock - $ | |||||||||||
Common Stock, - $ | |||||||||||
Additional paid in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
June 25, 2021 | June 26, 2020 | June 25, 2021 | June 26, 2020 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Other operating (income) expenses, net | ( | ( | |||||||||||||||||||||
Operating income (loss) | ( | ( | ( | ||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | ( | ||||||||||||||||||||
Provision for income tax benefit | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ||||||||||||||||||||||
Comprehensive income (loss) | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||
Basic | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Diluted | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance December 25, 2020 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Stock compensation | — | — | |||||||||||||||||||||||||||||||||
Cumulative translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||
Shares surrendered to pay tax withholding | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance March 26, 2021 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Stock compensation | — | — | |||||||||||||||||||||||||||||||||
Warrants issued for acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Cumulative translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||
Shares surrendered to pay tax withholding | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance June 25, 2021 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Balance December 27, 2019 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Stock compensation | — | — | |||||||||||||||||||||||||||||||||
Cumulative translation adjustment | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Shares surrendered to pay tax withholding | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance March 27, 2020 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Stock compensation | — | — | |||||||||||||||||||||||||||||||||
Public offering of common stock | — | — | |||||||||||||||||||||||||||||||||
Cumulative translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||
Shares surrendered to pay tax withholding | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance June 26, 2020 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Twenty-Six Weeks Ended | |||||||||||
June 25, 2021 | June 26, 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of intangible assets | |||||||||||
Provision for allowance for doubtful accounts | |||||||||||
Non-cash operating lease expense | |||||||||||
Benefit for deferred income taxes | ( | ( | |||||||||
Amortization of deferred financing fees | |||||||||||
Stock compensation | |||||||||||
Change in fair value of contingent earn-out liabilities | ( | ( | |||||||||
Intangible asset impairment | |||||||||||
Loss on asset disposal | |||||||||||
Changes in assets and liabilities, net of acquisitions: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventories | ( | ||||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Accounts payable, accrued liabilities and accrued compensation | ( | ||||||||||
Other assets and liabilities | |||||||||||
Net cash (used in) provided by operating activities | ( | ||||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Cash paid for acquisitions, net of cash received | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Payment of debt, finance lease and other financing obligations | ( | ( | |||||||||
Proceeds from the issuance of common stock, net of issuance costs | |||||||||||
Proceeds from debt issuance | |||||||||||
Payment of deferred financing fees | ( | ( | |||||||||
Surrender of shares to pay withholding taxes | ( | ( | |||||||||
Cash paid for contingent earn-out liability | ( | ( | |||||||||
Borrowings under asset-based loan facility | |||||||||||
Payments under asset-based loan facility | ( | ( | |||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
Effect of foreign currency on cash and cash equivalents | ( | ( | |||||||||
Net change in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents-beginning of period | |||||||||||
Cash and cash equivalents-end of period | $ | $ |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 25, 2021 | June 26, 2020 | June 25, 2021 | June 26, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Center-of-the-Plate | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Dry Goods | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Pastry | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Cheese and Charcuterie | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Produce | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Dairy and Eggs | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Oils and Vinegars | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Kitchen Supplies | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | % | $ | % | $ | % | $ | % |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
June 25, 2021 | June 26, 2020 | June 25, 2021 | June 26, 2020 | ||||||||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||
Basic | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Diluted | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Weighted average common shares: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
June 25, 2021 | June 26, 2020 | June 25, 2021 | June 26, 2020 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average basic common shares outstanding | |||||||||||||||||||||||
Dilutive effect of stock options and unvested common shares | |||||||||||||||||||||||
Weighted average diluted common shares outstanding |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
June 25, 2021 | June 26, 2020 | June 25, 2021 | June 26, 2020 | ||||||||||||||||||||
Restricted share awards (“RSAs”) | |||||||||||||||||||||||
Stock options | |||||||||||||||||||||||
Warrants | |||||||||||||||||||||||
Convertible notes |
Fells Point | Bassian | Sid Wainer | Other Acquisitions | Total | |||||||||||||||||||||||||
Balance December 27, 2019 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Acquisition value | |||||||||||||||||||||||||||||
Cash payments | ( | ( | ( | ||||||||||||||||||||||||||
Changes in fair value | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Balance December 25, 2020 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Acquisition value | |||||||||||||||||||||||||||||
Cash payments | ( | ( | |||||||||||||||||||||||||||
Changes in fair value | ( | ( | ( | ||||||||||||||||||||||||||
Balance June 25, 2021 | $ | $ | $ | $ | $ |
June 25, 2021 | December 25, 2020 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Convertible Senior Notes | $ | $ | $ | $ | |||||||||||||||||||
Convertible Unsecured Note | $ | $ | $ | $ |
Current assets | $ | ||||
Customer relationships | |||||
Trademarks | |||||
Goodwill | |||||
Fixed assets | |||||
Right-of-use assets | |||||
Lease liabilities | ( | ||||
Current liabilities | ( | ||||
Earn-out liability | ( | ||||
Issuance of warrants | ( | ||||
Total consideration | $ |
Useful Lives | June 25, 2021 | December 25, 2020 | ||||||||||||||||||
Land | Indefinite | $ | $ | |||||||||||||||||
Buildings | ||||||||||||||||||||
Machinery and equipment | ||||||||||||||||||||
Computers, data processing and other equipment | ||||||||||||||||||||
Software | ||||||||||||||||||||
Leasehold improvements | ||||||||||||||||||||
Furniture and fixtures | ||||||||||||||||||||
Vehicles | ||||||||||||||||||||
Other | ||||||||||||||||||||
Construction-in-process | ||||||||||||||||||||
Less: accumulated depreciation and amortization | ( | ( | ||||||||||||||||||
Equipment, leasehold improvements and software, net | $ | $ |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
June 25, 2021 | June 26, 2020 | June 25, 2021 | June 26, 2020 | ||||||||||||||||||||
Depreciation expense | $ | $ | $ | $ | |||||||||||||||||||
Software amortization | $ | $ | $ | $ | |||||||||||||||||||
$ | $ | $ | $ |
Carrying amount as of December 25, 2020 | $ | ||||
Acquisitions | |||||
Foreign currency translation | |||||
Carrying amount as of June 25, 2021 | $ |
June 25, 2021 | Weighted-Average Remaining Amortization Period | Gross Carrying Amount | Accumulated Amortization | Net Amount | ||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | ||||||||||||||||||||||
Non-compete agreements | ( | |||||||||||||||||||||||||
Trademarks | ( | |||||||||||||||||||||||||
Total | $ | $ | ( | $ |
December 25, 2020 | Weighted-Average Remaining Amortization Period | Gross Carrying Amount | Accumulated Amortization | Net Amount | ||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | ||||||||||||||||||||||
Non-compete agreements | ( | |||||||||||||||||||||||||
Trademarks | ( | |||||||||||||||||||||||||
Total | $ | $ | ( | $ |
2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total | $ |
June 25, 2021 | December 25, 2020 | |||||||||||||
Senior secured term loans | $ | $ | ||||||||||||
Convertible senior notes | ||||||||||||||
Asset-based loan facility | ||||||||||||||
Finance lease and other financing obligations | ||||||||||||||
Convertible unsecured note | ||||||||||||||
Deferred finance fees and original issue premium (discount) | ( | ( | ||||||||||||
Total debt obligations | ||||||||||||||
Less: current installments | ( | ( | ||||||||||||
Total debt obligations excluding current installments | $ | $ |
June 25, 2021 | December 25, 2020 | |||||||||||||
Principal amount outstanding | $ | $ | ||||||||||||
Unamortized deferred financing fees and premium | ( | ( | ||||||||||||
Net carry value | $ | $ |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
June 25, 2021 | June 26, 2020 | June 25, 2021 | June 26, 2020 | ||||||||||||||||||||
Coupon interest | $ | $ | $ | $ | |||||||||||||||||||
Amortization of deferred financing fees and premium | $ | $ | $ | $ | |||||||||||||||||||
Total interest | $ | $ | $ | $ |
Time-based | Performance-based | Market-based | ||||||||||||||||||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||||||||||||
Unvested at December 25, 2020 | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||||||||||||||
Vested | ( | |||||||||||||||||||||||||||||||||||||
Forfeited | ( | |||||||||||||||||||||||||||||||||||||
Unvested at June 25, 2021 | $ | $ | $ |
Twenty-Six Weeks Ended | |||||||||||
June 25, 2021 | June 26, 2020 | ||||||||||
Supplemental cash flow disclosures: | |||||||||||
Cash paid for income taxes, net of cash received | $ | ( | $ | ||||||||
Cash paid for interest, net of cash received | $ | $ | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Operating cash flows from finance leases | $ | $ | |||||||||
ROU assets obtained in exchange for lease liabilities: | |||||||||||
Operating leases | $ | $ | |||||||||
Finance leases | $ | $ | |||||||||
Other non-cash investing and financing activities: | |||||||||||
Warrants issued for acquisitions | $ | $ | |||||||||
Net working capital adjustment receivable | $ | $ | |||||||||
Contingent earn-out liabilities for acquisitions | $ | $ |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
June 25, 2021 | June 26, 2020 | June 25, 2021 | June 26, 2020 | ||||||||||||||||||||
Net sales | $ | 422,968 | $ | 200,496 | $ | 703,185 | $ | 575,927 | |||||||||||||||
Cost of sales | 327,094 | 157,070 | 548,364 | 447,013 | |||||||||||||||||||
Gross profit | 95,874 | 43,426 | 154,821 | 128,914 | |||||||||||||||||||
Selling, general and administrative expenses | 90,358 | 68,165 | 170,603 | 177,047 | |||||||||||||||||||
Other operating (income) expenses, net | 857 | 670 | (313) | (5,666) | |||||||||||||||||||
Operating income (loss) | 4,659 | (25,409) | (15,469) | (42,467) | |||||||||||||||||||
Interest expense | 4,408 | 5,772 | 9,171 | 10,896 | |||||||||||||||||||
Income (loss) before income taxes | 251 | (31,181) | (24,640) | (53,363) | |||||||||||||||||||
Provision for income tax benefit | (847) | (10,847) | (7,817) | (18,944) | |||||||||||||||||||
Net income (loss) | $ | 1,098 | $ | (20,334) | $ | (16,823) | $ | (34,419) | |||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Net sales | $ | 422,968 | $ | 200,496 | $ | 222,472 | 111.0 | % |
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Gross profit | 95,874 | 43,426 | 52,448 | 120.8 | % | ||||||||||||||||||
Gross profit margin | 22.7 | % | 21.7 | % | |||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Selling, general and administrative expenses | 90,358 | 68,165 | 22,193 | 32.6 | % | ||||||||||||||||||
Percentage of net sales | 21.4 | % | 34.0 | % | |||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Other operating expenses, net | 857 | 670 | 187 | 27.9 | % | ||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Interest expense | 4,408 | 5,772 | (1,364) | (23.6) | % | ||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Provision for income tax benefit | (847) | (10,847) | 10,000 | (92.2) | % | ||||||||||||||||||
Effective tax rate | (337.5) | % | 34.8 | % | |||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Net sales | $ | 703,185 | $ | 575,927 | $ | 127,258 | 22.1 | % |
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Gross profit | 154,821 | 128,914 | 25,907 | 20.1 | % | ||||||||||||||||||
Gross profit margin | 22.0 | % | 22.4 | % | |||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Selling, general and administrative expenses | 170,603 | 177,047 | (6,444) | (3.6) | % | ||||||||||||||||||
Percentage of net sales | 24.3 | % | 30.7 | % | |||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Other operating income, net | (313) | (5,666) | 5,353 | (94.5) | % | ||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Interest expense | 9,171 | 10,896 | (1,725) | (15.8) | % | ||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Provision for income tax benefit | (7,817) | (18,944) | 11,127 | (58.7) | % | ||||||||||||||||||
Effective tax rate | 31.7 | % | 35.5 | % | |||||||||||||||||||
June 25, 2021 | December 25, 2020 | ||||||||||
Senior secured term loan | $ | 169,531 | $ | 201,553 | |||||||
Total convertible debt | 204,000 | 154,000 | |||||||||
Borrowings outstanding on asset-based loan facility | 20,000 | 40,000 | |||||||||
Finance leases and other financing obligations | 11,732 | 15,798 | |||||||||
Total | $ | 405,263 | $ | 411,351 |
June 25, 2021 | December 25, 2020 | ||||||||||
Cash and cash equivalents | $ | 146,920 | $ | 193,281 | |||||||
Working capital, excluding cash and cash equivalents | 116,779 | 94,279 | |||||||||
Availability under asset-based loan facility | 100,805 | 50,282 | |||||||||
Total | $ | 364,504 | $ | 337,842 |
Twenty-Six Weeks Ended | |||||||||||
June 25, 2021 | June 26, 2020 | ||||||||||
Net loss | $ | (16,823) | $ | (34,419) | |||||||
Non-cash charges | $ | 16,748 | $ | 28,377 | |||||||
Changes in working capital | $ | (23,847) | $ | 53,621 | |||||||
Cash (used in) provided by operating activities | $ | (23,922) | $ | 47,579 | |||||||
Cash used in investing activities | $ | (16,739) | $ | (67,850) | |||||||
Cash (used in) provided by financing activities | $ | (5,642) | $ | 81,992 |
Total Number of Shares Repurchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||||||
March 27, 2021 to April 23, 2021 | 8,006 | $ | 30.80 | — | — | |||||||||||||||||||||
April 24, 2021 to May 21, 2021 | 1,735 | 30.92 | — | — | ||||||||||||||||||||||
May 22, 2021 to June 25, 2021 | 7,336 | 32.41 | — | — | ||||||||||||||||||||||
Total | 17,077 | $ | 31.50 | — | — |
Exhibit No. | Description | |||||||
10.1* | 2021 Form of Restricted Share Award Agreement (Directors) | |||||||
10.2* | 2021 Non-Employee Director Deferral Plan | |||||||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
101.INS | XBRL Instance Document – the instance document does not appear on the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
THE CHEFS’ WAREHOUSE, INC. | |||||||||||
(Registrant) | |||||||||||
Date: July 28, 2021 | /s/ James Leddy | ||||||||||
James Leddy | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) | |||||||||||
Date: July 28, 2021 | /s/ Timothy McCauley | ||||||||||
Timothy McCauley | |||||||||||
Chief Accounting Officer | |||||||||||
(Principal Accounting Officer) |
Dated: July 28, 2021 | /s/ Christopher Pappas | |||||||
By: | Christopher Pappas | |||||||
Chairman, President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Dated: July 28, 2021 | /s/ James Leddy | |||||||
By: | James Leddy | |||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: July 28, 2021 | By: | /s/ Christopher Pappas | ||||||
Christopher Pappas | ||||||||
Chairman, President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: July 28, 2021 | By: | /s/ James Leddy | ||||||
James Leddy | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 25, 2021 |
Dec. 25, 2020 |
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Current assets: | ||
Allowance for accounts receivable | $ 22,015 | $ 24,027 |
Stockholders’ equity: | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred Stock, issued (in shares) | 0 | 0 |
Preferred Stock, outstanding (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, issued (in shares) | 37,961,863 | 37,274,768 |
Common Stock, outstanding (in shares) | 37,961,863 | 37,274,768 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 25, 2021 |
Jun. 26, 2020 |
Jun. 25, 2021 |
Jun. 26, 2020 |
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Income Statement [Abstract] | ||||
Net sales | $ 422,968 | $ 200,496 | $ 703,185 | $ 575,927 |
Cost of sales | 327,094 | 157,070 | 548,364 | 447,013 |
Gross profit | 95,874 | 43,426 | 154,821 | 128,914 |
Selling, general and administrative expenses | 90,358 | 68,165 | 170,603 | 177,047 |
Other operating (income) expenses, net | 857 | 670 | (313) | (5,666) |
Operating income (loss) | 4,659 | (25,409) | (15,469) | (42,467) |
Interest expense | 4,408 | 5,772 | 9,171 | 10,896 |
Income (loss) before income taxes | 251 | (31,181) | (24,640) | (53,363) |
Provision for income tax benefit | (847) | (10,847) | (7,817) | (18,944) |
Net income (loss) | 1,098 | (20,334) | (16,823) | (34,419) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 76 | 117 | 157 | (261) |
Comprehensive income (loss) | $ 1,174 | $ (20,217) | $ (16,666) | $ (34,680) |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.03 | $ (0.62) | $ (0.46) | $ (1.10) |
Diluted (in dollars per share) | $ 0.03 | $ (0.62) | $ (0.46) | $ (1.10) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 36,831,054 | 32,698,295 | 36,615,463 | 31,150,883 |
Diluted (in shares) | 37,081,186 | 32,698,295 | 36,615,463 | 31,150,883 |
Operations and Basis of Presentation |
6 Months Ended |
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Jun. 25, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations and Basis of Presentation | Operations and Basis of Presentation Description of Business and Basis of Presentation The financial statements include the consolidated accounts of The Chefs’ Warehouse, Inc. (the “Company”), and its wholly-owned subsidiaries. The Company’s quarterly periods end on the thirteenth Friday of each quarter. Every six to seven years, the Company will add a fourteenth week to its fourth quarter to more closely align its year-end to the calendar year. The Company’s business consists of three operating segments: East Coast, Midwest and West Coast that aggregate into one reportable segment, foodservice distribution, which is concentrated primarily in the United States. The Company’s customer base consists primarily of menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolateries, cruise lines, casinos, specialty food stores, grocers and warehouse clubs. The COVID-19 Pandemic Many of the Company’s customers continue to be adversely impacted by the COVID-19 pandemic (the “Pandemic”), however there has been sequential improvement in the Company’s business throughout the second quarter of fiscal 2021 which has contributed to organic sales growth of $212,610 compared to the prior year quarter. The future impact of the Pandemic on the Company’s business, operations and liquidity is difficult to predict at this time and is highly dependent on future developments including new information that may emerge on the severity of the disease, the extent of outbreaks, federal, state and local government responses, trends in infection rates, development of effective medical treatments for the disease, the pace of vaccination programs and future consumer spending behavior, among others. Consolidation The consolidated financial statements include all the accounts of the Company and its direct and indirect wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Unaudited Interim Financial Statements The accompanying unaudited consolidated financial statements and the related interim information contained within the notes to such unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules of the Securities and Exchange Commission (“SEC”) for interim information and quarterly reports on Form 10-Q. Accordingly, they do not include all the information and disclosures required by GAAP for complete financial statements. These unaudited consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended December 25, 2020 filed as part of the Company’s Annual Report on Form 10-K, as filed with the SEC on February 23, 2021. The unaudited consolidated financial statements appearing in this Form 10-Q have been prepared on the same basis as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, as filed with the SEC on February 23, 2021, and in the opinion of management, include all normal recurring adjustments that are necessary for the fair statement of the Company’s interim period results. The year-end consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by GAAP. Due to seasonal fluctuations, the Pandemic and other factors, the results of operations for the thirteen and twenty-six weeks ended June 25, 2021 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from management’s estimates. Guidance Adopted in Fiscal 2021 Simplifying the Accounting for Income Taxes: In December 2019, the Financial Accounting Standards Board (the “FASB”) issued guidance that eliminates certain exceptions related to the approach for intraperiod tax allocations, the methodology for calculating income taxes in an interim period and other simplifications and clarifications. As a result of the new guidance, the Company may recognize additional income tax benefits during interim periods in which interim losses exceed full year projections due to provisions in the guidance that remove loss limitation rules. This guidance was adopted on December 26, 2020 and adoption had an immaterial impact on the Company’s consolidated financial statements. Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity: In August 2020, the FASB issued guidance that simplifies the accounting models for financial instruments with characteristics of debt and equity. The amendments in the guidance result in fewer instances in which an embedded conversion feature must be accounted for separately from its host contract. This guidance will be effective for fiscal years beginning after December 15, 2021. This guidance was adopted on December 26, 2020 and adoption did not impact the Company’s consolidated financial statements.
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Summary of Significant Accounting Policies |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenue Recognition Revenues from product sales are recognized at the point at which control of each product is transferred to the customer. The Company’s contracts contain performance obligations which are satisfied when customers have physical possession of each product. The majority of customer orders are fulfilled within a day and customer payment terms are typically 20 to 60 days from delivery. Shipping and handling activities are costs to fulfill the Company’s performance obligations. These costs are expensed as incurred and presented within selling, general and administrative expenses on the consolidated statements of operations. The Company offers certain sales incentives to customers in the form of rebates or discounts. These sales incentives are accounted as variable consideration. The Company estimates these amounts based on the expected amount to be provided to customers and records a corresponding reduction in revenue. The Company does not expect a significant reversal in the amount of cumulative revenue recognized. Sales tax billed to customers is not included in revenue but rather recorded as a liability owed to the respective taxing authorities at the time the sale is recognized. The following table presents the Company’s net sales disaggregated by principal product category:
The Company determines its product category classification based on how the Company currently markets its products to its customers. The Company’s definition of its principal product categories may differ from the way in which other companies present similar information. Food Processing Costs Food processing costs include but are not limited to direct labor and benefits, applicable overhead and depreciation of equipment and facilities used in food processing activities. Food processing costs included in cost of sales were $6,679 and $4,013 for the thirteen weeks ended June 25, 2021 and June 26, 2020, respectively, and $12,075 and $9,426 for the twenty-six weeks ended June 25, 2021 and June 26, 2020, respectively.
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Net Income (Loss) per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) per Share | Net Income (Loss) per Share The following table sets forth the computation of basic and diluted net income (loss) per common share:
Reconciliation of net income (loss) per common share:
Potentially dilutive securities that have been excluded from the calculation of diluted net income (loss) per common share because the effect is anti-dilutive are as follows:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value The Company’s contingent earn-out liabilities are measured at fair value. These liabilities were estimated using Level 3 inputs. Long-term earn-out liabilities were $2,278 and $2,556 as of June 25, 2021 and December 25, 2020, respectively, and are reflected as other liabilities and deferred credits on the consolidated balance sheets. The remaining short-term earn-out liabilities are reflected as accrued liabilities on the consolidated balance sheets. The fair value of contingent consideration was determined based on a probability-based approach which includes projected results, percentage probability of occurrence and the application of a discount rate to present value the payments. A significant change in projected results, discount rate, or probabilities of occurrence could result in a significantly higher or lower fair value measurement. Changes in the fair value of contingent earn-out liabilities are reflected in other operating (income)expenses, net on the consolidated statements of operations. The following table presents the changes in Level 3 contingent earn-out liabilities:
Fair Value of Financial Instruments The following table presents the carrying value and fair value of the Company’s convertible notes. In estimating the fair value of the convertible notes, the Company utilized Level 3 inputs including prevailing market interest rates to estimate the debt portion of the instrument and a Black Scholes valuation model to estimate the fair value of the conversion option. The Black Scholes model utilizes the market price of the Company’s common stock, estimates of the stock’s volatility and the prevailing risk-free interest rate in calculating the fair value estimate.
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Acquisitions |
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Jun. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions During the second quarter of fiscal 2021, the Company completed two acquisitions for an aggregate purchase price of approximately $8,285, consisting of $7,165 paid in cash at closing, subject to customary working capital adjustments, and common stock warrants of $1,120. The Company will also pay additional contingent consideration, if earned, in the form of earn-out amounts which could total $3,400 in aggregate. The Company is in the process of finalizing a valuation of the earn-out liabilities, and tangible and intangible assets as of the acquisition date. When applicable, these valuations require the use of Level 3 inputs. Goodwill for these acquisitions will be amortized over 15 years for tax purposes. The Company reflected net sales and loss before taxes of $9,038 and $94, respectively, during the thirteen and twenty-six weeks ended June 25, 2021 for these acquisitions in its consolidated statement of operations. The table below sets forth the purchase price allocation of these acquisitions:
The Company recognized professional fees of $75 in operating expenses related to acquisitions in the second quarter of fiscal 2021.
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Inventories |
6 Months Ended |
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Jun. 25, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist primarily of finished product and are reflected net of adjustments for shrinkage, excess and obsolescence totaling $8,297 and $9,013 at June 25, 2021 and December 25, 2020, respectively. |
Equipment, Leasehold Improvements and Software |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment, Leasehold Improvements and Software | Equipment, Leasehold Improvements and Software Equipment, leasehold improvements and software as of June 25, 2021 and December 25, 2020 consisted of the following:
Construction-in-process at June 25, 2021 related primarily to the build-outs of the Company’s Los Angeles and New England distribution facilities. Construction-in-process at December 25, 2020 related primarily to the implementation of the Company’s Enterprise Resource Planning system. The net book value of equipment financed under finance leases at June 25, 2021 and December 25, 2020 was $13,267 and $14,705, respectively. The components of depreciation and amortization expense were as follows:
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill are presented as follows:
Other intangible assets as of June 25, 2021 and December 25, 2020 consisted of the following:
The Company occasionally makes small, tuck-in acquisitions that are immaterial, both individually and in the aggregate. Therefore, increases in goodwill and gross intangible assets per the above tables may not agree to the increases of these assets as shown for specific acquisitions in Note 5 “Acquisitions.” Amortization expense for other intangibles was $3,104 and $3,422 for the thirteen weeks ended June 25, 2021 and June 26, 2020, respectively, and $6,643 and $6,720 for the twenty-six weeks ended June 25, 2021 and June 26, 2020, respectively. During the second quarter of fiscal 2021, the Company committed to a plan to shift its brand strategy to leverage its Allen Brothers brand in its New England region and determined its Cambridge trademark did not fit the Company’s long-term strategic objectives. As a result, the Company recognized a $597 impairment charge to fully write-down the net book value of its Cambridge trademark. Estimated amortization expense for other intangible assets for the remainder of the fiscal year ending December 24, 2021 and each of the next four fiscal years and thereafter is as follows:
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Debt Obligations |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations | Debt Obligations Debt obligations as of June 25, 2021 and December 25, 2020 consisted of the following:
On March 1, 2021, the Company issued $50,000 aggregate principal amount of 1.875% Convertible Senior Notes at a premium which were offered as an additional issuance and under the same terms of the Company’s $150,000 Convertible Senior Notes due 2024 initially issued on November 22, 2019. Net proceeds were used to repay all outstanding borrowings under the Company's 2022 tranche of senior secured term loans of $31,166 and repay a portion of borrowings outstanding under the Company’s asset-based loan facility (“ABL Facility”). The Company incurred transaction costs of approximately $1,350 which were capitalized as deferred financing fees to be amortized over the term of the Convertible Senior Notes due 2024. At June 25, 2021, the effective interest rate charged on the Company’s Convertible Senior Notes was approximately 2.3%. The net carry value of the Company’s Convertible Senior Notes as of June 25, 2021 and December 25, 2020 was:
The components of interest expense on the Company’s Convertible Senior Notes were as follows:
The Company’s senior secured term loan credit agreement requires the Company to maintain at least $35,000 of liquidity as of the last day of any fiscal quarter where EBITDA, as defined in the Credit Agreement, is less than $10,000. The Company had minimum liquidity, as defined in the Credit Agreement, of $253,386 as of June 25, 2021. As of June 25, 2021, the Company was in compliance with all debt covenants and the Company had reserved $20,141 of the ABL Facility for the issuance of letters of credit. As of June 25, 2021, funds totaling $100,805 were available for borrowing under the ABL Facility. At June 25, 2021, the interest rate charged on the Company’s senior secured term loan was approximately 5.6% and the interest rate charged on the Company’s ABL Facility was approximately 1.6%.
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Stockholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Equity Awards The following table reflects the activity of RSAs during the twenty-six weeks ended June 25, 2021:
The Company granted 750,034 RSAs to its employees and directors at a weighted average grant date fair value of $31.74 during the twenty-six weeks ended June 25, 2021. These awards are a mix of time-, market- and performance-based grants that generally vest over a range of periods up to five years. The Company recognized expense totaling $3,280 and $1,999 on its RSAs during the thirteen weeks ended June 25, 2021 and June 26, 2020, respectively, and $5,738 and $2,850 during the twenty-six weeks ended June 25, 2021 and June 26, 2020, respectively. At June 25, 2021, the total unrecognized compensation cost for unvested RSAs was $25,655 and the weighted-average remaining period was approximately 2.4 years. Of this total, $15,828 related to RSAs with time-based vesting provisions and $9,827 related to RSAs with performance-based vesting provisions. At June 25, 2021, the weighted-average remaining period for time-based vesting and performance-based vesting RSAs were approximately 2.2 years and 2.6 years, respectively. No share-based compensation expense related to the Company’s RSAs or stock options has been capitalized. As of June 25, 2021, there were 820,049 shares available for grant under the 2019 Omnibus Equity Incentive Plan.
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Related Parties |
6 Months Ended |
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Jun. 25, 2021 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties The Chefs’ Warehouse Mid-Atlantic, LLC, a subsidiary of the Company, leases a distribution facility that is 100% owned by entities controlled by Christopher Pappas, the Company’s chairman, president and chief executive officer, and John Pappas, the Company’s vice chairman and one of its directors, and are deemed to be affiliates of these individuals. Expense related to this facility totaled $123 and $123 during the thirteen weeks ended June 25, 2021 and June 26, 2020, respectively, and $246 and $241 during the twenty-six weeks ended June 25, 2021 and June 26, 2020, respectively. |
Supplemental Disclosures of Cash Flow Information |
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Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information
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Coronavirus Aid, Relief, and Economic Security Act |
6 Months Ended |
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Jun. 25, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Coronavirus Aid, Relief, and Economic Security Act | Coronavirus Aid, Relief, and Economic Security ActIn response to the Pandemic, the Coronavirus Aid, Relief, and Economic Security Act was signed into law on March 27, 2020. Among other provisions it allows for a refundable Employee Retention Tax Credit (“ETRC”) to eligible employers equal to 50% of qualified wages paid to employees from March 12, 2020 to December 31, 2020, capped at $10 per employee. In December 2020, the Consolidated Appropriations Act of 2021 was passed, which expands the ETRC by increasing the credit to 70% of qualified wages paid from January 1, 2021 through June 30, 2021, capped at $10 per employee per quarter. During the second quarter of fiscal 2021, the Company recognized a receivable of $1,418 related to the ETRC which is presented within prepaid expenses and other current assets on the consolidated balance sheet and the related expense reduction is presented within selling, general and administrative expenses on the consolidated statements of operations |
Operations and Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 25, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period | The Company’s quarterly periods end on the thirteenth Friday of each quarter. Every six to seven years, the Company will add a fourteenth week to its fourth quarter to more closely align its year-end to the calendar year. |
Segment Reporting | The Company’s business consists of three operating segments: East Coast, Midwest and West Coast that aggregate into one reportable segment, foodservice distribution, which is concentrated primarily in the United States. |
Consolidation | The consolidated financial statements include all the accounts of the Company and its direct and indirect wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Unaudited Interim Financial Statements | The accompanying unaudited consolidated financial statements and the related interim information contained within the notes to such unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules of the Securities and Exchange Commission (“SEC”) for interim information and quarterly reports on Form 10-Q. Accordingly, they do not include all the information and disclosures required by GAAP for complete financial statements. These unaudited consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended December 25, 2020 filed as part of the Company’s Annual Report on Form 10-K, as filed with the SEC on February 23, 2021. The unaudited consolidated financial statements appearing in this Form 10-Q have been prepared on the same basis as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, as filed with the SEC on February 23, 2021, and in the opinion of management, include all normal recurring adjustments that are necessary for the fair statement of the Company’s interim period results. The year-end consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by GAAP. Due to seasonal fluctuations, the Pandemic and other factors, the results of operations for the thirteen and twenty-six weeks ended June 25, 2021 are not necessarily indicative of the results to be expected for the full year.
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Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from management’s estimates. |
Guidance Adopted in Fiscal 2021 | Guidance Adopted in Fiscal 2021 Simplifying the Accounting for Income Taxes: In December 2019, the Financial Accounting Standards Board (the “FASB”) issued guidance that eliminates certain exceptions related to the approach for intraperiod tax allocations, the methodology for calculating income taxes in an interim period and other simplifications and clarifications. As a result of the new guidance, the Company may recognize additional income tax benefits during interim periods in which interim losses exceed full year projections due to provisions in the guidance that remove loss limitation rules. This guidance was adopted on December 26, 2020 and adoption had an immaterial impact on the Company’s consolidated financial statements. Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity: In August 2020, the FASB issued guidance that simplifies the accounting models for financial instruments with characteristics of debt and equity. The amendments in the guidance result in fewer instances in which an embedded conversion feature must be accounted for separately from its host contract. This guidance will be effective for fiscal years beginning after December 15, 2021. This guidance was adopted on December 26, 2020 and adoption did not impact the Company’s consolidated financial statements.
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Revenue Recognition and Food Processing Costs | Revenues from product sales are recognized at the point at which control of each product is transferred to the customer. The Company’s contracts contain performance obligations which are satisfied when customers have physical possession of each product. The majority of customer orders are fulfilled within a day and customer payment terms are typically 20 to 60 days from delivery. Shipping and handling activities are costs to fulfill the Company’s performance obligations. These costs are expensed as incurred and presented within selling, general and administrative expenses on the consolidated statements of operations. The Company offers certain sales incentives to customers in the form of rebates or discounts. These sales incentives are accounted as variable consideration. The Company estimates these amounts based on the expected amount to be provided to customers and records a corresponding reduction in revenue. The Company does not expect a significant reversal in the amount of cumulative revenue recognized. Sales tax billed to customers is not included in revenue but rather recorded as a liability owed to the respective taxing authorities at the time the sale is recognized.The Company determines its product category classification based on how the Company currently markets its products to its customers. The Company’s definition of its principal product categories may differ from the way in which other companies present similar information.Food processing costs include but are not limited to direct labor and benefits, applicable overhead and depreciation of equipment and facilities used in food processing activities. |
Summary of Significant Accounting Policies (Tables) |
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Jun. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following table presents the Company’s net sales disaggregated by principal product category:
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Net Income (Loss) per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of computation of basic and diluted net income (loss) per share | The following table sets forth the computation of basic and diluted net income (loss) per common share:
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Schedule of reconciliation of net income (loss) per common share | Reconciliation of net income (loss) per common share:
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Schedule of dilutive securities that have been excluded from the calculation of diluted net income (loss) per common share | Potentially dilutive securities that have been excluded from the calculation of diluted net income (loss) per common share because the effect is anti-dilutive are as follows:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in Level 3 contingent consideration liability | The following table presents the changes in Level 3 contingent earn-out liabilities:
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Schedule of carrying value and fair value of the Company's convertible subordinated notes | The following table presents the carrying value and fair value of the Company’s convertible notes. In estimating the fair value of the convertible notes, the Company utilized Level 3 inputs including prevailing market interest rates to estimate the debt portion of the instrument and a Black Scholes valuation model to estimate the fair value of the conversion option. The Black Scholes model utilizes the market price of the Company’s common stock, estimates of the stock’s volatility and the prevailing risk-free interest rate in calculating the fair value estimate.
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Acquisitions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of purchase price allocation | The table below sets forth the purchase price allocation of these acquisitions:
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Equipment, Leasehold Improvements and Software (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of equipment, leasehold improvements and software | Equipment, leasehold improvements and software as of June 25, 2021 and December 25, 2020 consisted of the following:
The components of depreciation and amortization expense were as follows:
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Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill | The changes in the carrying amount of goodwill are presented as follows:
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Schedule of other intangible assets | Other intangible assets as of June 25, 2021 and December 25, 2020 consisted of the following:
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Schedule of estimated future amortization expense | Estimated amortization expense for other intangible assets for the remainder of the fiscal year ending December 24, 2021 and each of the next four fiscal years and thereafter is as follows:
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Debt Obligations (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt obligations | Debt obligations as of June 25, 2021 and December 25, 2020 consisted of the following:
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Schedule of convertible senior notes | The net carry value of the Company’s Convertible Senior Notes as of June 25, 2021 and December 25, 2020 was:
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Schedule of components of interest expense | The components of interest expense on the Company’s Convertible Senior Notes were as follows:
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Stockholders' Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of restricted stock awards activity | The following table reflects the activity of RSAs during the twenty-six weeks ended June 25, 2021:
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Supplemental Disclosures of Cash Flow Information (Tables) |
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Jun. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental disclosures of cash flow information |
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Operations and Basis of Presentation - Narrative (Details) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 25, 2021
USD ($)
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Jun. 25, 2021
segment
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of operating segments | 3 | |
Number of reportable segments | 1 | |
COVID-19 pandemic | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Growth in organic sales compared to prior year quarter | $ | $ 212,610 |
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2021 |
Jun. 26, 2020 |
Jun. 25, 2021 |
Jun. 26, 2020 |
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Disaggregation of Revenue [Line Items] | ||||
Cost of sales | $ 327,094 | $ 157,070 | $ 548,364 | $ 447,013 |
Food Processing | ||||
Disaggregation of Revenue [Line Items] | ||||
Cost of sales | $ 6,679 | $ 4,013 | $ 12,075 | $ 9,426 |
Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Payment term for contracts with customers (in days) | 20 days | |||
Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Payment term for contracts with customers (in days) | 60 days |
Net Income (Loss) per Share - Computation of Basic and Diluted Earnings per Share (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2021 |
Jun. 26, 2020 |
Jun. 25, 2021 |
Jun. 26, 2020 |
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Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.03 | $ (0.62) | $ (0.46) | $ (1.10) |
Diluted (in dollars per share) | $ 0.03 | $ (0.62) | $ (0.46) | $ (1.10) |
Weighted average common shares: | ||||
Basic (in shares) | 36,831,054 | 32,698,295 | 36,615,463 | 31,150,883 |
Diluted (in shares) | 37,081,186 | 32,698,295 | 36,615,463 | 31,150,883 |
Net Income (Loss) per Share - Schedule of Reconciliation of Earnings per Share (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 25, 2021 |
Mar. 26, 2021 |
Jun. 26, 2020 |
Mar. 27, 2020 |
Jun. 25, 2021 |
Jun. 26, 2020 |
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Numerator: | ||||||
Net income (loss) | $ 1,098 | $ (17,921) | $ (20,334) | $ (14,085) | $ (16,823) | $ (34,419) |
Denominator: | ||||||
Weighted average basic common shares outstanding (in shares) | 36,831,054 | 32,698,295 | 36,615,463 | 31,150,883 | ||
Dilutive effect of stock options and unvested common shares (in shares) | 250,132 | 0 | 0 | 0 | ||
Weighted average diluted common shares outstanding (in shares) | 37,081,186 | 32,698,295 | 36,615,463 | 31,150,883 |
Net Income (Loss) per Share - Schedule of Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss per Share (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2021 |
Jun. 26, 2020 |
Jun. 25, 2021 |
Jun. 26, 2020 |
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Restricted share awards (“RSAs”) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 0 | 773,988 | 349,389 | 613,905 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 0 | 115,639 | 39,320 | 9,538 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 103,226 | 0 | 52,459 | 0 |
Convertible notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 4,616,033 | 3,484,788 | 4,205,246 | 3,484,788 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands |
Jun. 25, 2021 |
Dec. 25, 2020 |
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Fair Value Disclosures [Abstract] | ||
Long-term earn-out liabilities | $ 2,278 | $ 2,556 |
Fair Value Measurements - Summary of the Carrying Value and Fair Value of Convertible Subordinated Notes (Details) - Fair Value Inputs Level 3 - USD ($) $ in Thousands |
Jun. 25, 2021 |
Dec. 25, 2020 |
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Senior Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Notes | $ 200,000 | $ 150,000 |
Senior Notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Notes | 203,115 | 163,204 |
Unsecured Note | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Notes | 4,000 | 4,000 |
Unsecured Note | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Notes | $ 4,063 | $ 4,290 |
Acquisitions - Narrative (Details) - Acquisitions $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 25, 2021
USD ($)
acquisition
|
Jun. 25, 2021
USD ($)
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Business Acquisition [Line Items] | ||
Number of acquisitions | acquisition | 2 | |
Purchase price | $ 8,285 | |
Cash amount paid | 7,165 | |
Common stock warrants issued for acquisition | 1,120 | |
Estimated fair value of contingent earn-out liability | 3,400 | $ 3,400 |
Net sales of acquiree since acquisition date | 9,038 | 9,038 |
Operating earnings (loss) of acquiree since acquisition date | (94) | $ (94) |
Professional fees | $ 75 |
Acquisitions - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands |
Jun. 25, 2021 |
Dec. 25, 2020 |
---|---|---|
Business Acquisition [Line Items] | ||
Goodwill | $ 220,575 | $ 214,864 |
Acquisitions | ||
Business Acquisition [Line Items] | ||
Current assets | 4,240 | |
Goodwill | 5,663 | |
Fixed assets | 586 | |
Right-of-use assets | 761 | |
Lease liabilities | (761) | |
Current liabilities | (3,054) | |
Earn-out liability | (3,400) | |
Issuance of warrants | (1,120) | |
Total consideration | 7,165 | |
Acquisitions | Customer relationships | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets | 2,110 | |
Acquisitions | Trademarks | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets | $ 2,140 |
Inventories - Narrative (Details) - USD ($) $ in Thousands |
Jun. 25, 2021 |
Dec. 25, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Reserves for shrinkage, excess and obsolescence | $ 8,297 | $ 9,013 |
Equipment, Leasehold Improvements and Software - Components of Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 25, 2021 |
Jun. 26, 2020 |
Jun. 25, 2021 |
Jun. 26, 2020 |
Dec. 25, 2020 |
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Property, Plant and Equipment [Line Items] | |||||
Net book value of equipment under finance leases | $ 114,982 | $ 114,982 | $ 115,448 | ||
Depreciation expense and amortization | 5,553 | $ 4,913 | 10,660 | $ 9,675 | |
Assets held under finance leases | |||||
Property, Plant and Equipment [Line Items] | |||||
Net book value of equipment under finance leases | 13,267 | 13,267 | $ 14,705 | ||
Excluding assets held under finance leases | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense and amortization | 3,841 | 3,663 | 7,776 | 7,231 | |
Software | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense and amortization | $ 1,712 | $ 1,250 | $ 2,884 | $ 2,444 |
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2021 |
Jun. 26, 2020 |
Jun. 25, 2021 |
Jun. 26, 2020 |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 3,104 | $ 3,422 | $ 6,643 | $ 6,720 |
Intangible asset impairment | $ 597 | $ 597 | $ 0 |
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 25, 2021
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 214,864 |
Acquisitions | 5,663 |
Foreign currency translation | 48 |
Ending balance | $ 220,575 |
Goodwill and Other Intangible Assets - Future amortization (Details) $ in Thousands |
Jun. 25, 2021
USD ($)
|
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Estimated amortization in fiscal year: | |
2021 | $ 6,280 |
2022 | 11,778 |
2023 | 10,748 |
2024 | 9,884 |
2025 | 9,465 |
Thereafter | 60,644 |
Total | $ 108,799 |
Debt Obligations - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands |
Jun. 25, 2021 |
Dec. 25, 2020 |
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Debt Instrument [Line Items] | ||
Finance lease and other financing obligations | $ 11,732 | $ 15,798 |
Deferred finance fees and original issue premium (discount) | (3,876) | (7,172) |
Total debt obligations | 401,387 | 404,179 |
Less: current installments | (5,844) | (6,095) |
Total debt obligations excluding current installments | 395,543 | 398,084 |
Senior secured term loans | ||
Debt Instrument [Line Items] | ||
Long-term debt | 169,531 | 201,553 |
Convertible senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 200,000 | 150,000 |
Deferred finance fees and original issue premium (discount) | 3,590 | 4,999 |
Asset-based loan facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 20,000 | 40,000 |
Convertible unsecured note | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 4,000 | $ 4,000 |
Debt Obligations - Narrative (Details) - USD ($) |
6 Months Ended | ||
---|---|---|---|
Mar. 01, 2021 |
Jun. 25, 2021 |
Nov. 22, 2019 |
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1.875% Convertible Senior Notes | Convertible senior notes | |||
Debt Instrument [Line Items] | |||
Principle amount | $ 50,000,000 | $ 150,000,000 | |
Interest rate | 1.875% | ||
Debt issuance costs | $ 1,350,000 | ||
Effective interest rate | 2.30% | ||
Senior Secured Term Loans, 2022 Tranche | Senior secured term loans | |||
Debt Instrument [Line Items] | |||
Repayment of all outstanding borrowings | $ 31,166,000 | ||
Senior Secured Term Loan | Credit facility | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 5.60% | ||
Minimum liquidity covenant | $ 35,000,000 | ||
EBITDA covenant | 10,000,000 | ||
Minimum liquidity amount | $ 253,386,000 | ||
ABL Facility | Credit facility | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 1.60% | ||
Amounts reserved for issuance of letters of credit | $ 20,141,000 | ||
Line of credit facility, current borrowing capacity | $ 100,805,000 |
Debt Obligations - Schedule of Convertible Senior Notes (Details) - USD ($) $ in Thousands |
Jun. 25, 2021 |
Dec. 25, 2020 |
---|---|---|
Debt Instrument [Line Items] | ||
Unamortized deferred financing fees and premium | $ 3,876 | $ 7,172 |
Convertible senior notes | ||
Debt Instrument [Line Items] | ||
Principal amount outstanding | 200,000 | 150,000 |
Unamortized deferred financing fees and premium | (3,590) | (4,999) |
Net carry value | $ 203,590 | $ 154,999 |
Debt Obligations - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2021 |
Jun. 26, 2020 |
Jun. 25, 2021 |
Jun. 26, 2020 |
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Debt Disclosure [Abstract] | ||||
Coupon interest | $ 938 | $ 703 | $ 1,719 | $ 1,406 |
Amortization of deferred financing fees and premium | 224 | 250 | 465 | 500 |
Total interest | $ 1,162 | $ 953 | $ 2,184 | $ 1,906 |
Related Parties - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2021 |
Jun. 26, 2020 |
Jun. 25, 2021 |
Jun. 26, 2020 |
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Related Party Transactions [Abstract] | ||||
Ownership interest in facilities owned by entities controlled by company's stockholders (as a percent) | 100.00% | |||
Expenses related to transactions with related parties | $ 123 | $ 123 | $ 246 | $ 241 |
Supplemental Disclosures of Cash Flow Information - Summary of Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 25, 2021 |
Jun. 26, 2020 |
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Supplemental cash flow disclosures: | ||
Cash paid for income taxes, net of cash received | $ (208) | $ 334 |
Cash paid for interest, net of cash received | 7,766 | 9,730 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 12,752 | 13,476 |
Operating cash flows from finance leases | 282 | 264 |
ROU assets obtained in exchange for lease liabilities: | ||
Operating leases | 1,625 | 5,744 |
Finance leases | 162 | 13,980 |
Other non-cash investing and financing activities: | ||
Warrants issued for acquisitions | 1,200 | 0 |
Net working capital adjustment receivable | 0 | 3,013 |
Contingent earn-out liabilities for acquisitions | $ 3,400 | $ 3,464 |
Coronavirus Aid, Relief, and Economic Security Act (Details) $ in Thousands |
Jun. 25, 2021
USD ($)
|
---|---|
CARES Act | |
Unusual or Infrequent Item, or Both [Line Items] | |
Receivable related to the ETRC | $ 1,418 |