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 Number) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | ||||||||
March 31, | December 31, | |||||||||||||
2022 | 2021 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash | ||||||||||||||
Accounts receivable, net | ||||||||||||||
Inventories | ||||||||||||||
Notes receivable | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property, plant and equipment, net | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Goodwill | ||||||||||||||
Intangible assets, net | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Accrued expenses and other current liabilities | ||||||||||||||
Deferred revenue | ||||||||||||||
Current portion of lease liabilities | ||||||||||||||
Current portion of long-term debt | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term lease liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Deferred tax liabilities | ||||||||||||||
Other long-term liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies (Note 13) | ||||||||||||||
Stockholders’ equity | ||||||||||||||
Common stock ($ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Accumulated other comprehensive income (loss) | ( | |||||||||||||
Accumulated deficit | ( | ( | ||||||||||||
Total stockholders’ equity | ||||||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three months ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net sales | $ | $ | ||||||||||||
Cost of goods sold | ||||||||||||||
Gross profit | ||||||||||||||
Operating expenses: | ||||||||||||||
Selling, general and administrative | ||||||||||||||
(Loss) income from operations | ( | |||||||||||||
Interest expense | ( | ( | ||||||||||||
Loss on debt extinguishment | ( | |||||||||||||
Other (expense) income, net | ( | |||||||||||||
(Loss) income before tax | ( | |||||||||||||
Income tax benefit (expense) | ( | |||||||||||||
Net (loss) income | $ | ( | $ | |||||||||||
Net (loss) income per share: | ||||||||||||||
Basic | $ | ( | $ | |||||||||||
Diluted | $ | ( | $ | |||||||||||
Weighted-average shares of common stock outstanding: | ||||||||||||||
Basic | ||||||||||||||
Diluted |
Three months ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net (loss) income | $ | ( | $ | |||||||||||
Other comprehensive (loss) income: | ||||||||||||||
Foreign currency translation gain | ||||||||||||||
Total comprehensive (loss) income | $ | ( | $ |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Common stock issued upon exercise of options | — | — | — | |||||||||||||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Shares repurchased for withholding tax on restricted stock units | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Issuance of common stock under cashless warrant exercise | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Foreign currency translation gain | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Common stock issued upon exercise of options | — | — | — | |||||||||||||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Shares repurchased for withholding tax on restricted stock units | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Issuance of common stock under cashless warrant exercise | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Foreign currency translation gain | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | ( | $ |
Three months ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Operating activities | |||||||||||
Net (loss) income | $ | ( | $ | ||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Depreciation, depletion and amortization | |||||||||||
Provision for inventory obsolescence | |||||||||||
Stock-based compensation expense | |||||||||||
Non-cash operating lease expense | |||||||||||
Impairment charges | |||||||||||
Change in fair value of contingent consideration | ( | ||||||||||
Deferred income tax benefit | ( | ||||||||||
Other | |||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Other assets | ( | ( | |||||||||
Accounts payable | |||||||||||
Accrued expenses and other current liabilities | ( | ( | |||||||||
Deferred revenue | ( | ( | |||||||||
Lease liabilities | ( | ( | |||||||||
Other long-term liabilities | ( | ||||||||||
Net cash used in operating activities | ( | ( | |||||||||
Investing activities | |||||||||||
Business combinations, net of cash and cash equivalents | |||||||||||
Purchases of property, plant and equipment | ( | ( | |||||||||
Other | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing activities | |||||||||||
Borrowings under revolving credit facilities | |||||||||||
Repayments of revolving credit facilities | ( | ( | |||||||||
Repayments of long-term debt Term Loan | ( | ||||||||||
Payment of withholding tax related to restricted stock units | ( | ( | |||||||||
Other | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ||||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ |
Three months ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
United States | $ | $ | |||||||||
Canada | |||||||||||
Intersegment eliminations | ( | ( | |||||||||
Total consolidated net sales | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
United States | $ | $ | |||||||||
Canada | |||||||||||
Total property, plant and equipment, and operating lease right-of-use assets, net | $ | $ |
Heavy 16 | H&G Entities | Aurora | Greenstar | IGE Entities | |||||||||||||
Component of Purchase Price: | |||||||||||||||||
Cash | $ | $ | $ | $ | $ | ||||||||||||
Common stock | |||||||||||||||||
Contingent consideration | |||||||||||||||||
Forgiveness of assets and liabilities | ( | ( | |||||||||||||||
Total purchase price | $ | $ | $ | $ | $ | ||||||||||||
Acquisition-related costs | $ | $ | $ | $ | $ | ||||||||||||
Allocation of Purchase Price: | |||||||||||||||||
Identifiable assets (liabilities) | |||||||||||||||||
Accounts receivable | $ | $ | $ | $ | $ | ||||||||||||
Inventories | |||||||||||||||||
Prepaid expenses and other current assets | |||||||||||||||||
Property, plant and equipment | |||||||||||||||||
Operating lease right-of-use assets | |||||||||||||||||
Other assets | |||||||||||||||||
Accounts payable | ( | ( | ( | ( | ( | ||||||||||||
Accrued expenses and other current liabilities | ( | ( | ( | ( | ( | ||||||||||||
Current portion of lease liabilities | ( | ( | ( | ( | |||||||||||||
Current portion of long-term debt | ( | ||||||||||||||||
Long-term deferred tax liabilities | ( | ( | |||||||||||||||
Long-term lease liabilities | ( | ( | ( | ( | |||||||||||||
Long-term debt | ( | ||||||||||||||||
Other long-term liabilities | ( | ||||||||||||||||
Net identifiable assets | ( | ||||||||||||||||
Identifiable intangible assets | |||||||||||||||||
Other intangible assets | |||||||||||||||||
Customer relationships | |||||||||||||||||
Trademarks and trade names | |||||||||||||||||
Technology and formulations & recipes | |||||||||||||||||
Total identifiable intangible assets | |||||||||||||||||
Goodwill | |||||||||||||||||
Total purchase price allocation | $ | $ | $ | $ | $ |
Three months ended March 31, 2021 | |||||
Estimated ($ in millions) | |||||
Net sales | |||||
Net income |
Goodwill | |||||
Balance at December 31, 2021 | $ | ||||
Acquisition - IGE Entities - remeasurement adjustments | ( | ||||
Acquisition - all others - remeasurement adjustments and foreign currency translation adjustments, net | |||||
Balance at March 31, 2022 | $ |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||||||||||||||
Computer software | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Customer relationship | ( | ( | |||||||||||||||||||||||||||||||||
Technology, formulations and recipes | ( | ( | |||||||||||||||||||||||||||||||||
Trade names | ( | ||||||||||||||||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||||||||||||||
Total finite-lived intangible assets, net | ( | ( | |||||||||||||||||||||||||||||||||
Indefinite-lived intangible asset: | |||||||||||||||||||||||||||||||||||
Trade names | — | — | |||||||||||||||||||||||||||||||||
Other | — | — | |||||||||||||||||||||||||||||||||
Total Intangible assets, net | $ | $ | ( | $ | $ | $ | ( | $ |
Computer software | |||||
Customer relationships | |||||
Technology, formulations and recipes | |||||
Trade names |
Estimated Future Amortization Expense | |||||
For the period of April 1, 2022 to December 31, 2022 | $ | ||||
Year ending December 31, | |||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total | $ |
Three months ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net (loss) income | $ | ( | $ | ||||||||
Weighted-average shares of common stock outstanding | |||||||||||
Dilutive effect of warrants using the treasury stock method | |||||||||||
Dilutive effect of restricted stock units using the treasury stock method | |||||||||||
Dilutive effect of stock options using the treasury stock method | |||||||||||
Diluted weighted-average shares of common stock outstanding | |||||||||||
Basic EPS | $ | ( | $ | ||||||||
Diluted EPS | $ | ( | $ |
Three months ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Shares subject to warrants outstanding | |||||||||||
Shares subject to unvested performance based and restricted stock units | |||||||||||
Shares subject to stock options outstanding |
March 31, 2022 | December 31, 2021 | ||||||||||
Trade accounts receivable | $ | $ | |||||||||
Allowance for doubtful accounts | ( | ( | |||||||||
Other receivables | |||||||||||
Total accounts receivable, net | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Finished goods | $ | $ | |||||||||
Work-in-process | |||||||||||
Raw materials | |||||||||||
Allowance for inventory obsolescence | ( | ( | |||||||||
Total inventories | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Operating lease right-of-use assets, net of accumulated amortization | $ | $ | |||||||||
Total leased assets | $ | $ | |||||||||
Liabilities | |||||||||||
Current portion of lease liabilities | $ | $ | |||||||||
Long-term lease liabilities | |||||||||||
Total lease liabilities | $ | $ |
Operating | |||||
For the period of April 1, 2022 to December 31, 2022 | $ | ||||
Year ending December 31, | |||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total rental payments | |||||
Less portion representing interest | ( | ||||
Total principal | |||||
Less current portion | ( | ||||
Long-term portion | $ |
Operating | |||||
For the period of April 1, 2022, to December 31, 2022 | $ | ||||
Year ending December 31, | |||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total rental payments | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Machinery and equipment | $ | $ | |||||||||
Peat bogs and related development | |||||||||||
Building and improvements | |||||||||||
Land | |||||||||||
Leasehold improvements | |||||||||||
Computer equipment | |||||||||||
Furniture and fixtures | |||||||||||
Gross property, plant and equipment | |||||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Total property, plant and equipment, net | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Accrued compensation and benefits | $ | $ | |||||||||
Freight, custom and duty accrual | |||||||||||
Goods in transit accrual | |||||||||||
Income tax accrual | |||||||||||
Contingent consideration | |||||||||||
Other accrued liabilities | |||||||||||
Total accrued expenses and other current liabilities | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Term loan - net of unamortized discount and deferred financing costs of $ | $ | $ | |||||||||
Other | |||||||||||
Total debt | $ | $ | |||||||||
Current portion of long-term debt | $ | $ | |||||||||
Long-term debt - net of unamortized discount and deferred financing costs of $ | |||||||||||
Total debt | $ | $ |
Capital stock authorized and outstanding: | Shares authorized | Shares outstanding | ||||||||||||
Convertible preferred stock | ||||||||||||||
Common stock |
Number of Warrants | Exercise Price | |||||||||||||
Placement agent warrants | $ | |||||||||||||
Placement agent warrants | $ | |||||||||||||
Total | $ |
Number of RSUs | Weighted average grant date fair value | ||||||||||
Balance, December 31, 2021 | $ | ||||||||||
Granted | $ | ||||||||||
Vested | ( | $ | |||||||||
Forfeited | ( | $ | |||||||||
Balance, March 31, 2022 | $ |
Number of PSUs | Weighted average grant date fair value | ||||||||||
Balance, December 31, 2021 | $ | ||||||||||
Granted | $ | ||||||||||
Balance, March 31, 2022 | $ |
Number | Weighted average exercise price | Weighted average grant date fair value | Weighted average remaining contractual term (years) | ||||||||||||||||||||
Outstanding as of December 31, 2021 | $ | $ | |||||||||||||||||||||
Exercised | ( | $ | $ | ||||||||||||||||||||
Cancelled | ( | $ | $ | ||||||||||||||||||||
Forfeited | ( | $ | $ | ||||||||||||||||||||
Outstanding as of March 31, 2022 | $ | $ | |||||||||||||||||||||
Options exercisable as of March 31, 2022 | $ | $ | |||||||||||||||||||||
Vested and expected to vest as of March 31, 2022 | $ | $ |
Number | Weighted average grant date fair value | ||||||||||
Unvested as of December 31, 2021 | $ | ||||||||||
Vested | ( | $ | |||||||||
Forfeited | ( | $ | |||||||||
Unvested as of March 31, 2022 | $ |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
Fair Value Hierarchy Level | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||||||||||||||
Term Loan | Level 2 | $ | $ | $ | $ |
Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Period change | ||||||||||||||||||||||||||||||||||||
Net sales | $ | 111,377 | 100.0 | % | $ | 111,389 | 100.0 | % | $ | (12) | 0.0 | % | ||||||||||||||||||||||||||
Cost of goods sold | 94,771 | 85.1 | % | 88,166 | 79.2 | % | 6,605 | 7.5 | % | |||||||||||||||||||||||||||||
Gross profit | 16,606 | 14.9 | % | 23,223 | 20.8 | % | (6,617) | -28.5 | % | |||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 43,003 | 38.6 | % | 16,841 | 15.1 | % | 26,162 | 155.3 | % | |||||||||||||||||||||||||||||
(Loss) income from operations | (26,397) | -23.7 | % | 6,382 | 5.7 | % | (32,779) | -513.6 | % | |||||||||||||||||||||||||||||
Interest expense | (2,366) | -2.1 | % | (90) | -0.1 | % | (2,276) | 2,528.9 | % | |||||||||||||||||||||||||||||
Loss on debt extinguishment | — | 0.0 | % | (680) | -0.6 | % | 680 | n/a | % | |||||||||||||||||||||||||||||
Other (expense) income, net | (102) | -0.1 | % | 84 | 0.1 | % | (186) | -221.4 | % | |||||||||||||||||||||||||||||
(Loss) income before tax | (28,865) | -25.9 | % | 5,696 | 5.1 | % | (34,561) | -606.8 | % | |||||||||||||||||||||||||||||
Income tax benefit (expense) | 5,569 | 5.0 | % | (756) | -0.7 | % | 6,325 | -836.6 | % | |||||||||||||||||||||||||||||
Net (loss) income | (23,296) | -20.9 | % | 4,940 | 4.4 | % | (28,236) | -571.6 | % |
Three months ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net (loss) income | $ | (23,296) | $ | 4,940 | |||||||
Interest expense | 2,366 | 90 | |||||||||
Income tax (benefit) expense | (5,569) | 756 | |||||||||
Distribution center exit costs and other | 1,086 | — | |||||||||
Depreciation, depletion and amortization | 16,941 | 1,591 | |||||||||
Impairment, restructuring and other* | 3,393 | 15 | |||||||||
Acquisition expenses** | 4,986 | 659 | |||||||||
Other expense (income), net | 102 | (84) | |||||||||
Stock-based compensation*** | 3,076 | 1,258 | |||||||||
Loss on debt extinguishment | — | 680 | |||||||||
Adjusted EBITDA | $ | 3,085 | $ | 9,905 | |||||||
Adjusted EBITDA as a percent of net sales | 2.8 | % | 8.9 | % |
Three months ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net cash used in operating activities | $ | (10,155) | $ | (2,638) | |||||||
Net cash used in investing activities | (2,385) | (445) | |||||||||
Net cash used in financing activities | (1,953) | (11,827) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 43 | (4) | |||||||||
Net decrease in cash, cash equivalents and restricted cash | (14,450) | (14,914) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 28,384 | 76,955 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 13,934 | $ | 62,041 |
Exhibit | Description | ||||||||||
31.1* | |||||||||||
31.2* | |||||||||||
32.1*# | |||||||||||
32.2*# | |||||||||||
101. INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||
101.SCH | Inline XBRL Taxonomy Schema Linkbase Document. | ||||||||||
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document. | ||||||||||
101.DEF | Inline XBRL Taxonomy Definition Linkbase Document. | ||||||||||
101.LAB | Inline XBRL Taxonomy Labels Linkbase Document. | ||||||||||
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document. | ||||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
Hydrofarm Holdings Group, Inc. | |||||
Date: May 10, 2022 | /s/ William Toler | ||||
William Toler | |||||
Chief Executive Officer | |||||
(Principal Executive Officer) |
Date: May 10, 2022 | /s/ B. John Lindeman | ||||
B. John Lindeman | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
By: | /s/ William Toler | ||||
William Toler | |||||
Chief Executive Officer | |||||
(Principal Executive Officer) |
By: | /s/ B. John Lindeman | ||||
B. John Lindeman | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
Dated: May 10, 2022 | /s/ William Toler | ||||
William Toler | |||||
Chief Executive Officer | |||||
(Principal Executive Officer) |
Dated: May 10, 2022 | /s/ B. John Lindeman | ||||
B. John Lindeman | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 44,822,866 | 44,618,357 |
Common stock, shares outstanding (in shares) | 44,822,866 | 44,618,357 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Income Statement [Abstract] | ||
Net sales | $ 111,377 | $ 111,389 |
Cost of goods sold | 94,771 | 88,166 |
Gross profit | 16,606 | 23,223 |
Operating expenses: | ||
Selling, general and administrative | 43,003 | 16,841 |
(Loss) income from operations | (26,397) | 6,382 |
Interest expense | (2,366) | (90) |
Loss on debt extinguishment | 0 | (680) |
Other (expense) income, net | (102) | 84 |
(Loss) income before tax | (28,865) | 5,696 |
Income tax benefit (expense) | 5,569 | (756) |
Net (loss) income | $ (23,296) | $ 4,940 |
Net (loss) income per share: | ||
Basic (in dollars per share) | $ (0.52) | $ 0.15 |
Diluted (in dollars per share) | $ (0.52) | $ 0.13 |
Weighted-average shares of common stock outstanding: | ||
Basic (in shares) | 44,718,510 | 33,717,103 |
Diluted (in shares) | 44,718,510 | 38,997,031 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (23,296) | $ 4,940 |
Other comprehensive (loss) income: | ||
Foreign currency translation gain | 2,184 | 223 |
Total comprehensive (loss) income | $ (21,112) | $ 5,163 |
DESCRIPTION OF THE BUSINESS |
3 Months Ended |
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Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE BUSINESS | DESCRIPTION OF THE BUSINESS Description of the business Hydrofarm Holdings Group, Inc. and its subsidiaries (collectively, the “Company”) was formed in May 2017 under the laws of the state of Delaware to acquire and continue the business of Hydrofarm, LLC established in 1977. The Company is a leading independent manufacturer and distributor of controlled environment agriculture (“CEA”, principally hydroponics) equipment and supplies, including a broad portfolio of proprietary branded products. Products offered include agricultural lighting devices, indoor climate control equipment, hydroponics and nutrients, and plant additives used to grow, farm and cultivate cannabis, flowers, fruits, plants, vegetables, grains and herbs in controlled environment settings that allow end users to control key farming variables including temperature, humidity, CO2, light intensity and color, nutrient concentration and pH. Initial public offering and follow-on public offering On December 14, 2020, the Company closed its initial public offering (“IPO”) under a registration statement effective December 9, 2020, in which it issued and sold 9,966,667 shares of its common stock, including the full exercise by the underwriters of their option to purchase 1,300,000 additional shares of common stock. The public offering price was $20.00 per share. The Company received net proceeds of $182,271 from the IPO after deducting underwriting discounts and commissions and offering expenses, of which $148 of offering expenses were paid in 2021. On May 3, 2021, the Company closed its follow-on public offering ("follow-on offering") under a registration statement effective April 28, 2021, in which it issued and sold 5,526,861 shares of its common stock, including the full exercise by the underwriters of their option to purchase 720,894 additional shares of common stock. The public offering price was $59.00 per share. The Company received net proceeds of approximately $309,782 from the follow-on offering after deducting underwriting discounts and commissions and offering expenses.
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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These condensed consolidated financial statements have been prepared on the same basis as the Company's annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2022, or for any other interim period or for any other future year. All intercompany balances and transactions have been eliminated in consolidation. The Company reclassified the balance within "Impairment, restructuring and other" on the condensed consolidated statements of operations for the prior period into "Selling, general and administrative expenses" to conform to the current period presentation. The Company reclassified the balance of customer deposits previously reported in "accounts payable" into "deferred revenue" in the condensed consolidated balance sheet as of December 31, 2021 to conform to the current period presentation. The amount totaled $18,273 as of December 31, 2021. The condensed consolidated balance sheet as of December 31, 2021, has been derived from the audited consolidated financial statements of the Company, which is included in the Company's Annual Report on Form 10-K ("2021 Annual Report"). These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the 2021 Annual Report. Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Significant estimates include provisions for sales returns, rebates and claims from customers, realization of accounts receivable and inventories, fair value of assets acquired and liabilities assumed for business combinations, valuation of intangible assets and goodwill, estimated useful lives of long lived assets, incremental borrowing rate applied in lease accounting, valuation of stock-based compensation, recognition of deferred income taxes, recognition of liabilities related to commitments and contingencies and valuation allowances. Actual results may differ from these estimates. On an ongoing basis, the Company reviews its estimates to ensure that these estimates appropriately reflect changes in its business or new information available. Business combinations Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition date fair values of the assets transferred, liabilities incurred to the former owners of the acquiree, and the equity interests issued in exchange for control of the acquiree. Acquisition related costs are recognized in net income (loss) as incurred. When the consideration transferred in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition date fair value and included as part of the consideration transferred in a business combination. Contingent consideration is established for business acquisitions where the Company has the obligation to transfer additional assets or equity interests to the former owners if specified future events occur or conditions are met. Contingent consideration is classified as a liability when the obligation requires settlement in cash or other assets and is classified as equity when the obligation requires settlement in the Company's own equity instruments. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with a corresponding adjustment to goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the measurement period (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. All other subsequent changes in the fair value of contingent consideration classified as a liability are included in net income (loss) in the period. Changes in the fair value of contingent consideration classified as equity are not recognized. For a given acquisition, the Company may identify certain pre-acquisition contingencies as of the acquisition date and may extend its review and evaluation of these pre-acquisition contingencies throughout the measurement period to obtain sufficient information to assess these contingencies as part of acquisition accounting, as applicable. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non‑controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquire (if any) over the net of the acquisition‑date fair value amounts of the identifiable assets acquired, and the liabilities assumed. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that time. Upon conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to net income (loss). Segment and entity-wide information Segment information The Company's chief operating decision maker is the chief executive officer ("CEO") who reviews financial information for the purposes of making operating decisions, assessing financial performance, and allocating resources. The business is organized as two operating segments, the U.S. and Canada, which meet the criteria for aggregation, and the Company has elected to present them as one reportable segment, which is the distribution and manufacture of CEA equipment and supplies. Aggregation is based on similarities which include the nature of its products, production or acquisition of inventory, customer base, fulfillment and distribution and economic characteristics. Since the Company operates as one reportable segment, all required segment financial information is found in the condensed consolidated financial statements and footnotes with entity-wide disclosures presented below. Entity-wide information Sales to external customers and property, plant and equipment, net in the United States and Canada, determined by the location of the subsidiaries, were as follows:
All of the products sold by the Company are similar and classified as CEA equipment and supplies. The Company’s underlying accounting records currently do not support presentation of disaggregated net sales and any attempt to report them would be impracticable. Note receivable In 2019, the Company executed a note receivable secured by equipment to a third-party, the terms of which were amended and restated during the first quarter of 2021. The note receivable provided for interest and installment payments to the Company, and full maturity of the note in 2024. During the three months ended March 31, 2022, the third-party defaulted on interest payments, and the Company measured an impairment on the note receivable based on the estimated fair value of the collateral. The Company recorded an impairment loss of $2,636 during the three months ended March 31, 2022, in “Selling, general and administrative expenses” ("SG&A") on the condensed consolidated statements of operations. As of March 31, 2022, the note receivable carrying value was $475. Revenue recognition The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”) which requires that revenue recognized from contracts with customers be disaggregated into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company has determined that revenue is generated from one category, which is the distribution and manufacture of controlled environment agriculture equipment and supplies. Revenue is recognized as control of promised goods is transferred to customers which generally occurs upon receipt at customers’ locations determined by the specific terms of the contract. Arrangements generally have a single performance obligation and revenue reported is comprised of fixed consideration and variable consideration which includes applicable volume rebates, cash discounts and sales returns and allowances. Variable consideration is estimated and recorded at the time of sale; these allowances and accruals are not material to the financial statements. The amount billed to customers for shipping and handling costs included in net sales was $3,879 and $1,245 for the three months ended March 31, 2022, and 2021, respectively. Shipping and handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs included in cost of goods sold. The Company does not receive noncash consideration for the sale of goods. Contract consideration received from a customer prior to revenue recognition is recorded as a contract liability and is recognized as revenue when the Company satisfies the related performance obligation under the terms of the contract. The Company's contract liabilities, which consist primarily of customer deposits are reported within deferred revenue in the condensed consolidated balance sheets, totaled $10,887 and $18,273 as of March 31, 2022, and December 31, 2021, respectively. There are no significant financing components. Excluded from revenue are any taxes assessed by governmental authorities, including value-added and other sales-related taxes that are imposed on and concurrent with revenue-generating activities. Income taxes—interim tax provision The Company recorded an income tax benefit of $5,569 for the three months ended March 31, 2022, representing an effective income tax rate of 19.3%. The Company’s effective income tax rate for the three months ended March 31, 2022, differs from the federal statutory rate of 21% primarily as a result of a reduction in the valuation allowance recorded against the Company's net deferred tax assets, due to the acquisition of the IGE Entities (as defined below) which had an income tax rate benefit of 23.4%. In addition, as described in Note 3 - Business Combinations, the Company determined that the preliminary allocation of assets acquired related to indefinite lived trade names have a finite useful life because the expected usefulness of the trade names is limited. As a result of adjusting this provisional amount, the Company recorded a reduction to the valuation allowance, which resulted in an income tax rate benefit of 6.1%. These income tax benefits totaled $8,543, and were partially offset by income taxes from certain foreign jurisdictions where the Company conducts business and state minimum income taxes in the United States. The Company recorded a tax expense of $756 for the three months ended March 31, 2021. The Company’s effective tax rates for the three months ended March 31, 2021, differs from the federal statutory rate of 21% primarily as a result of reducing valuation allowances on the Company's deferred tax assets related to net operating loss carryforwards. Recent accounting pronouncements The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the FASB. There were no ASUs that were assessed and determined to be applicable or expected to have a material impact on our condensed consolidated financial statements.
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BUSINESS COMBINATIONS |
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BUSINESS COMBINATIONS | BUSINESS COMBINATIONSDuring 2021, the Company completed five acquisitions of branded manufacturers of CEA products, resulting in a significant expansion of its portfolio of proprietary branded products and specialized manufacturing capabilities. The Company finalized the determination of its allocation of the purchase price relating to the Heavy 16, H&G Entities, and Aurora acquisitions (all as defined below) as of March 31, 2022. The allocation of purchase price relating to the Greenstar and IGE Entities acquisitions (as defined below) are based upon a preliminary valuation, and the Company’s estimates and assumptions are subject to change within the measurement period as valuations are finalized. During the three months ended March 31, 2022, the Company evaluated and adjusted the useful lives of certain intangible assets associated with entities that were acquired during 2021. In addition, the Company determined that the preliminary allocation of assets acquired related to indefinite lived trade names have a finite useful life because the expected usefulness of the trade names is limited. As a result of these adjustments to the provisional amounts, the Company recorded $5,894 of additional amortization expense during the three months ended March 31, 2022, that related to amortization expense that would have been recorded in the previous reporting period from the acquisition date through December 31, 2021. The intangible assets were assigned estimated useful lives as follows: (i) customer relationships: 7 to 12 years, (ii) technology, formulations and recipes: 8 to 12 years, and (iii) trade names: 15 to 20 years. Heavy 16 Acquisition On May 3, 2021, the Company acquired 100% of the issued and outstanding membership interests of Field 16, LLC ("Heavy 16"), a manufacturer and supplier of branded plant nutritional products. As a result of the acquisition, the Company broadened its proprietary branded offering into the plant nutrients category complementing other product offerings. The acquisition fair value of the consideration transferred for Heavy 16 was $77,367, consisting of $60,287 in cash, $16,736 of the Company's common stock and $344 contingent consideration. The fair value of the common stock issued was determined based on the closing market price of the Company's common stock on the acquisition date. Pursuant to the purchase agreement, the Company was required to pay up to an additional $2,500 of contingent consideration based on $200 for each $1,000 above a $21,000 threshold for net sales in calendar year 2021. As a result, the Company recorded a liability for contingent consideration at its estimated fair value of $344 as of the acquisition date in the condensed consolidated balance sheets. The contingent consideration was estimated using a Black-Scholes valuation model, which utilized Level 3 inputs as defined in ASC 820 - Fair Value Measurements. The contingent consideration was $200 as of December 31, 2021 and March 31, 2022, and was paid in April 2022. The amount of goodwill is fully deductible for tax purposes. House & Garden Acquisition On June 1, 2021, the Company acquired 100% of the issued and outstanding shares of capital stock of House & Garden, Inc. (“HG”), Humboldt Wholesale, Inc. (“HW”), Allied Imports & Logistics, Inc. (“Allied”), South Coast Horticultural Supply, Inc. (“SC” and, together with HG, HW and Allied, the “H&G Entities”), a manufacturer and distributor of plant nutrients and fertilizers to domestic and various international markets. As a result of the acquisition, the Company further broadened its proprietary branded offering into the plant nutrients category complementing other product offerings. The acquisition date fair value of the consideration transferred for the H&G Entities was $133,483 in cash. The amount of goodwill is not deductible for tax purposes. As part of the share acquisition of the H&G Entities, the Company allocated a significant value of the acquisition to identified intangible assets that are not deductible for U.S. tax purposes. Therefore, a deferred tax liability arose providing an additional source of taxable income to support the realization of pre-existing deferred tax assets. Aurora Acquisition On July 1, 2021, the Company acquired 100% of the issued and outstanding membership interests of Gotham Properties LLC (“Gotham Properties”), Aurora Innovations LLC (“Aurora Innovations”), Aurora International LLC (“Aurora International” and, together with Gotham Properties and Aurora Innovations, “Aurora”), a manufacturer of plant fertility product lines. As a result of the acquisition, the Company further broadened its proprietary branded offering into the plant nutrients and grow media category complementing other product offerings. The preliminary acquisition fair value of the consideration transferred for Aurora was $178,871, consisting of $133,962 in cash, $25,824 of the Company's common stock, $19,300 contingent consideration and $215 forgiveness of accounts payable. The fair value of the common stock issued was determined based on the closing market price of the Company's common stock on the acquisition date. The forgiveness of accounts payable represents an effective settlement of a preexisting relationship between the parties. Pursuant to the purchase agreement, the Company was required to pay a maximum contingent consideration equal to $70,997. To the extent 2021 EBITDA of Aurora exceeded $15,556, the excess was multiplied by eleven to determine contingent consideration. As a result, the Company recorded a liability for contingent consideration at its estimated fair value of $19,300 as of the acquisition date in the condensed consolidated balance sheets. The contingent consideration was estimated using the discounted cash flow method, which estimated the incremental EBITDA based on the Company's forecasted 2021 EBITDA of Aurora as of the acquisition date, discounted to a present value as of the acquisition date using a discount rate of 15%. That measure was based on significant inputs that are not observable in the market, which utilized Level 3 inputs as defined in ASC 820 - Fair Value Measurements. The contingent consideration was remeasured to fair value at each reporting date until resolution with changes in fair value recognized within SG&A in the condensed consolidated statements of operations. As of March 31, 2022, the related contingent consideration was $15,274. The contingent consideration is expected to be paid in May 2022. The amount of goodwill is fully deductible for tax purposes. Greenstar/Grotek Acquisition On August 3, 2021, the Company acquired 100% of the issued and outstanding shares of Greenstar Plant Products Inc., (“Greenstar”), a manufacturer of horticultural products and solutions for global, domestic and commercial use. As a result of the acquisition, the Company further broadened its proprietary branded offering into the plant nutrients and grow media category complementing other product offerings. The preliminary acquisition fair value of the consideration transferred for Greenstar was $83,520, consisting of $85,121 in cash, less $1,601 forgiveness of accounts payable, net, and obligations due under a distribution agreement. The forgiveness of accounts payable, net, and obligations due under a distribution agreement represent an effective settlement of a preexisting relationship between the parties. The amount of goodwill is not deductible for U.S. tax purposes, but it is partially deductible for Canadian tax purposes. Innovative Growers Equipment, Inc. Acquisition On November 1, 2021, the Company acquired 100% of the issued and outstanding shares of Innovative Growers Equipment, Inc., an Illinois corporation (“IGE”), Innovative AG Installation, Inc., an Illinois corporation (“IAG”), Innovative Racking Systems, Inc., an Illinois corporation (“IRS”), and Innovative Shipping Solutions, Inc., an Illinois corporation (“ISS” and, together with IGE, IAG, IRS, and their respective subsidiaries, the “IGE Entities”), a manufacturer of horticulture benches, racking and LED lighting systems which complement the Company’s existing lineup of high performance, proprietary branded products. The preliminary acquisition fair value of the consideration transferred for the IGE Entities was $60,902, consisting of $49,129 in cash, $11,051 of the Company's common stock, and $722 forgiveness of a contract asset. The fair value of the common stock issued was determined based on the closing market price of the Company's common stock on the acquisition date. The forgiveness of contract asset represents an effective settlement of a preexisting relationship between the parties. The amount of goodwill is not deductible for U.S. tax purposes. The financial results of Heavy 16, the H&G Entities and the IGE Entities are included in the U.S. operating segment since the acquisition date, and the financial results of Greenstar are included in the Canada operating segment since the acquisition date. The financial results of Aurora are included in both the U.S. and Canada operating segments. The following table sets forth the components and the preliminary allocation of the purchase price for the Company's acquisition of Heavy 16, the H&G Entities, Aurora, Greenstar and the IGE Entities:
Supplemental Disclosure of Financial Results The following represents certain estimated unaudited consolidated net sales and net income amounts for the quarter ended March 31, 2021 as if the five acquisitions had been included in the consolidated results of the Company for the entire period presented below. Management considers these estimates to represent an approximate measure of the performance of the combined Company (in millions):
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GOODWILL AND INTANGIBLE ASSETS, NET |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The Company's goodwill by reportable segment is $122,977 for the United States and $60,361 for Canada as of March 31, 2022. Goodwill is evaluated for impairment annually in the fourth quarter, or on an interim basis when an event occurs, or circumstances change that indicates the carrying value may not be recoverable. The Company did not identify a triggering event requiring a quantitative test for impairment as of March 31, 2022. The changes in goodwill are as follows:
Intangible Assets, net Intangible assets, net comprised the following:
Total amortization expense was $14,746 and $1,206 for the three months ended March 31, 2022 and 2021, respectively. Amortization expense in 2022 includes the impact from intangible assets recorded in connection with five acquisitions completed during the year ended December 31, 2021. The following are the estimated useful lives for the major classes of finite-lived intangible assets:
For intangible assets subject to amortization, the weighted-average amortization period as of March 31, 2022, for computer software, customer relationships, technology and formulations & recipes and trade names was 2 years, 12 years, 11 years, and 19 years, respectively. The estimated aggregate future amortization expense for intangible assets subject to amortization as of March 31, 2022, is summarized below:
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EARNINGS (LOSS) PER COMMON SHARE (“EPS”) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS (LOSS) PER COMMON SHARE (“EPS”) | EARNINGS (LOSS) PER COMMON SHARE (“EPS”) Basic EPS is computed using net income (loss) divided by the weighted-average number of common shares outstanding during each period, excluding unvested restricted stock units (“RSUs”). Diluted EPS represents net income (loss) divided by the weighted-average number of common shares outstanding during the period, including common stock equivalents. Common stock equivalents consist of shares subject to warrants and share-based awards with exercise prices less than the average market price of the Company’s common stock for the period, to the extent their inclusion would be dilutive. Regarding RSUs subject to a market condition, before the end of the contingency period, the number of contingently issuable shares (i.e., RSUs) to be included in diluted EPS would be based on the number of common shares issuable under the terms of the arrangement if the end of the reporting period was the end of the contingency period, assuming the result would be dilutive. Those contingently issuable shares would be included in the denominator of diluted EPS as of the beginning of the period, or as of the grant date of the share-based payment, if later. The following table presents information necessary to calculate basic and diluted EPS for the three months ended March 31, 2022, and 2021:
The computation of the weighted-average shares of common stock outstanding for diluted EPS excludes the following potential common shares as their inclusion would have an anti-dilutive effect:
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ACCOUNTS RECEIVABLE, NET AND INVENTORIES |
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ACCOUNTS RECEIVABLE, NET AND INVENTORIES | ACCOUNTS RECEIVABLE, NET, AND INVENTORIES Accounts receivable, net comprised the following:
Inventories comprised the following:
The allowance for inventory obsolescence increased during the first quarter of 2022 as a result of a reserve for certain durable products.
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OPERATING LEASES |
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OPERATING LEASES | OPERATING LEASESThe Company leases its distribution centers and manufacturing facilities from third parties under various non-cancelable lease agreements expiring at various dates through 2032. Certain leases contain escalation provisions and/or renewal options, giving the Company the right to extend the leases by up to 10 years. However, these options are generally not reflected in the calculation of the right-of-use assets and lease liabilities due to uncertainty surrounding the likelihood of renewal. The Company recognizes operating lease costs over the respective lease periods, including short-term and month-to-month leases. During the three months ended March 31, 2022, and 2021, the Company incurred operating lease costs of $2,597 and $1,494, respectively. These costs are included primarily within selling, general and administrative expense in the condensed consolidated statements of operations. Supplemental balance sheet information related to the Company’s operating leases are as follows:
As of March 31, 2022, future minimum lease payments under non-cancelable operating leases are as follows:
During the three months ended March 31, 2022, the Company executed a lease for approximately 303,000 square feet of warehouse space in Shoemakersville, Pennsylvania, and recorded right-of-use assets for operating leases for $10,463. During 2021, the Company executed new lease agreements that will commence in 2023. The future minimum lease payments for executed non-cancelable operating leases not yet commenced are as follows:
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PROPERTY, PLANT AND EQUIPMENT, NET |
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PROPERTY, PLANT AND EQUIPMENT, NET | PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment comprised the following:
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities comprised the following:
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DEBT |
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DEBT | DEBT Debt is comprised of the following:
Senior Secured Term Loan On October 25, 2021, the Company and its subsidiaries entered into a Credit and Guaranty Agreement with JPMorgan Chase Bank, N.A., as administrative agent for certain lenders, pursuant to which the Company borrowed a $125,000 senior secured term loan (“Term Loan”). The Term Loan bears interest at LIBOR (with a 1.0% floor) plus 5.50%, or an alternative base rate (with a 2.0% floor), plus 4.50%, and is subject to a call premium of 2% in year one, 1% in year two, and 0% thereafter, and matures on October 25, 2028 ("Maturity Date"). Deferred financing costs and discount totaled $6,190 and are being amortized to interest expense over the term of the loan. For the three months ended March 31, 2022, the effective interest rate was 7.30% and interest expense was $2,031 and amortization of deferred financing costs was $218. The principal amounts of the Term Loan are required to be repaid in consecutive quarterly installments in amounts equal to 0.25% of the principal amount of the Term Loan, on the last day of each fiscal quarter commencing March 31, 2022, with the balance of the Term Loan payable on the Maturity Date. The Company is also required to make mandatory prepayments upon the occurrence of certain events, including (i) achieving certain excess cash flow criteria, including the achievement and maintenance of a specific leverage ratio, (ii) selling assets that are collateral, or (iii) upon the issuance, offering, or placement of new debt obligations. There were no such mandatory prepayments made since inception of the Term Loan. The Term Loan requires the Company to maintain certain reporting requirements, affirmative covenants, and negative covenants, and was in compliance with all requirements as of March 31, 2022. The Term Loan is secured by a first lien on the non-working capital assets of the Company and a second lien on the working capital assets of the Company. The Company may request additional term loan commitments subject to certain loan conditions. Revolving asset-backed credit facilities Encina Credit Facility On July 11, 2019, the Company and certain of its direct and indirect subsidiaries (the “Encina Obligors”) entered into the Encina Credit Facility through a certain Loan and Security Agreement whereby the Encina Obligors obtained a revolving asset-based loan commitment in the maximum amount of $45,000 (inclusive of a limit of up to $15,000 of borrowings for the Canadian borrowers and a swingline facility of up to $2,000), subject to applicable borrowing base availability, through Encina Business Credit, LLC. The Encina Credit Facility was due on the earlier of July 11, 2022, or 90 days prior to the scheduled maturity date of the Brightwood Loan Services LLC Term Loan. The Encina Credit Facility was secured by working capital assets and a second lien on non-working capital assets. The Encina Credit Facility was repaid in December 2020 and replaced in March 2021 by the JPMorgan Credit Facility (as defined below). The unamortized deferred financing costs and early termination fees totaling $680 were recognized as a loss on debt extinguishment in the condensed consolidated statements of operations for the three months ended March 31, 2021. JPMorgan Revolving Credit Facility On March 29, 2021, Hydrofarm Holdings Group, Inc. and certain of its direct and indirect subsidiaries (the "JPMorgan Obligors") entered into a Senior Secured Revolving Credit Facility (the "JPMorgan Credit Facility") with JPMorgan Chase Bank, N.A., as administrative agent, issuing bank and swingline lender, and the lenders from time to time party thereto. The JPMorgan Credit Facility is due on the earlier of March 29, 2024, or any earlier date on which the revolving commitments are reduced to zero. The three-year JPMorgan Credit Facility had a borrowing limit of $50,000 with an option to request an increase in the revolving commitment by up to $25,000, drawn in $5,000 increments, for a total not to exceed $75,000, subject to customary condition ("Revolver"). On August 31, 2021, the JPMorgan Obligors entered into an amendment (the "First Amendment") to increase their original borrowing limit to $100,000. In connection with the First Amendment, the Company's recently acquired subsidiaries became party to the JPMorgan Credit Facility as either borrowers or as guarantors. The Revolver maintains an interest rate of LIBOR plus 1.95% and has a 0.0% LIBOR floor. A fee of 0.25% per annum is charged for available but unused borrowings as defined. On October 25, 2021, the Company and its subsidiaries entered into a second amendment (the “Second Amendment”), with JPMorgan Chase Bank, N.A., pursuant to which the parties consented to the Term Loan and the lien priorities described above and made certain conforming changes to the provisions of the Term Loan. The unamortized debt issuance costs were $908 as of March 31, 2022 and are included in other assets in the condensed consolidated balance sheets. Deferred financing costs are being amortized to interest expense over the term of the Revolver. As of March 31, 2022, the JPMorgan Obligors had approximately $99,674 available to borrow under the JPMorgan Credit Facility. The JPMorgan Credit Facility is secured by the Company’s assets and the assets of certain of the Company’s subsidiaries. The Company is required to maintain certain reporting requirements, affirmative covenants, negative covenants and financial covenants ("debt covenants"), including, in certain situations pursuant to terms outlined in the agreement, the maintenance of a minimum fixed charge coverage ratio of 1.1x on a rolling twelve-month basis. The JPMorgan Obligors were in compliance with all debt covenants as of March 31, 2022.
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CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY |
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CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY | CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY Capital stock As of March 31, 2022, the following summarizes shares authorized, issued and outstanding:
Common stock Each holder of common stock is entitled to one vote for each share of common stock. Common stockholders have no pre-emptive rights to acquire additional shares of common stock or other securities. The common stock is not subject to redemption rights and carries no subscription or conversion rights. In the event of liquidation, the stockholders are entitled to share in corporate assets on a pro rata basis after the Company satisfies all liabilities and after provision is made for any class of capital stock having preference over the common stock. Subject to corporate regulations and preferences to preferred stock, if any, dividends are at the discretion of the Company’s board of directors (the ‘‘Board’’). Warrants On July 19, 2021, the Company completed the redemption ("Redemption") of certain of its outstanding warrants (the "Investor Warrants") that were issued in connection with a private placement of units (the "private placement"), each consisting of a share of common stock and a warrant to purchase an additional one-half (1/2) shares of common stock, which concluded in the fall of 2018. The Company was entitled to redeem all of the outstanding Investor Warrants for a redemption price of $0.00033712 per Investor Warrant ("Redemption Price") if (i) there was an effective registration statement covering the resale of the shares of common stock underlying the Investor Warrants, and (ii) the volume-weighted average price of the Company's common stock for the consecutive trading days prior to the date of the notice of redemption is at least $25.28, of which both requirements were met. Investor Warrants were exercisable at a price of $16.86 per share until July 19, 2021 (the "redemption date"). Any Investor Warrants that remained unexercised immediately after the redemption date were void and no longer exercisable, and the holders of those Investor Warrants were entitled to receive the Redemption Price. Prior to the redemption date 3,367,647 Investor Warrants were exercised, generating total gross proceeds of $56,778. The Company redeemed 1,491 Investor Warrants at the Redemption Price. In connection with the private placement, the Company agreed to engage the placement agent (the "Placement Agent") as the Company's warrant solicitation agent in the event the Investor Warrants were called for Redemption. The Company agreed to pay a warrant solicitation fee to the Placement Agent equal to five percent of the amount of net cash proceeds solicited by the Placement Agent upon the exercise of certain Investor Warrants following such call for Redemption. As of March 31, 2022, the following table summarizes the outstanding warrants:
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STOCK-BASED COMPENSATION |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-based compensation plan overview The Company maintains three equity incentive plans: the 2018 Equity Incentive Plan (“2018 Plan”), the 2019 Employee, Director and Consultant Equity Incentive Plan (“2019 Plan”) and the 2020 Employee, Director, and Consultant Equity Incentive Plan (“2020 Plan” and collectively, “Incentive Plans”). The 2020 Plan serves as the successor to the 2019 Plan and 2018 Plan and provides for the issuance of incentive stock options, nonqualified stock options, stock grants and stock-based awards to employees, directors, and consultants of the Company. No further awards will be issued under the 2018 Plan and 2019 Plan. Of the total shares available for grant under the 2020 Plan, 1,732,432 remain available as of March 31, 2022. RSU Activity RSUs granted to certain executives, employees and members of the Board generally have a time-based vesting requirement (based on continuous employment). The stock-based compensation expense related to service-based awards is recorded over the requisite service period. During the three months ended March 31, 2022, the Company granted RSU awards that are expected to vest either (i) ratably over a three-year period on each anniversary of the grant date, or (ii) with three vesting tranches, the first of which occurred on the grant date, and the following two tranches on each subsequent anniversary of the grant date. The following table summarizes the activity related to the Company's RSUs for the three months ended March 31, 2022. For purposes of this table, vested RSUs represent the shares for which the service condition had been fulfilled as of March 31, 2022:
As of March 31, 2022, total unamortized stock-based compensation cost related to unvested RSUs was $9,010 and the weighted-average period over which the compensation is expected to be recognized is 1.61 years. For the three months ended March 31, 2022, the Company recognized $2,799 of total stock-based compensation expense for RSUs. Performance Stock Unit ("PSU") Activity During the three months ended March 31, 2022, the Company granted PSU awards that are subject to a one-year vesting requirement (based on continuous employment) and contain performance conditions based on certain performance metrics. The following table summarizes the activity related to the Company's PSUs for the three months ended March 31, 2022.
As of March 31, 2022, total unamortized stock-based compensation cost related to unvested PSUs was $1,783 and the weighted-average period over which the compensation is expected to be recognized is less than one year. For the three months ended March 31, 2022, the Company recognized $45 of total stock-based compensation expense for PSUs. Stock options The following table summarizes the stock option activity for the three months ended March 31, 2022:
The following table summarizes the unvested stock option activity for the three months ended March 31, 2022:
As of March 31, 2022, total compensation cost related to unvested awards not yet recognized was $730 and the weighted-average period over which the compensation is expected to be recognized is 1.95 years. For the three months ended March 31, 2022, the Company recognized $64 of total stock-based compensation expense for stock options.
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COMMITMENTS, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS |
3 Months Ended |
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Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES, AND RELATED PARTY TRANSACTIONS | COMMITMENTS, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS Purchase commitments From time to time in the normal course of business, the Company will enter into agreements with suppliers which provide favorable pricing in return for a commitment to purchase minimum amounts of inventory over a defined time period. Contingencies In the normal course of business, certain claims have been brought against the Company and, where applicable, its suppliers. While there is inherent difficulty in predicting the outcome of such matters, management has vigorously contested the validity of these claims. Based on available information, management believes the claims are without merit and does not expect that the outcome, individually or in the aggregate, would have a material adverse effect on the consolidated financial positions, results of operations, cash flows or future earnings. Related party transactions — Hydrofarm Distribution Center The Company leased a distribution center in Petaluma, California from entities in which a related party was a stockholder. For the three months ended March 2021, rent expense for the month-to-month lease totaled $320.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table summarizes the estimated fair value of the Company's assets and liabilities for which disclosure of fair value is required:
The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued and other current liabilities approximate their fair value due to their short-term maturities. The carrying value of the note receivable (as described in Note 2 - Basis of Presentation and Significant Accounting Policies) and the carrying value of contingent consideration (as described in Note 3 - Business Combinations) are based on level 3 fair value measurements and are reported at estimated fair value. The fair value of the Company's Term Loan was based on bank quotes and the carrying amount reported above excludes unamortized deferred financing costs and discount.
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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These condensed consolidated financial statements have been prepared on the same basis as the Company's annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2022, or for any other interim period or for any other future year. All intercompany balances and transactions have been eliminated in consolidation. The Company reclassified the balance within "Impairment, restructuring and other" on the condensed consolidated statements of operations for the prior period into "Selling, general and administrative expenses" to conform to the current period presentation. The Company reclassified the balance of customer deposits previously reported in "accounts payable" into "deferred revenue" in the condensed consolidated balance sheet as of December 31, 2021 to conform to the current period presentation. The amount totaled $18,273 as of December 31, 2021. The condensed consolidated balance sheet as of December 31, 2021, has been derived from the audited consolidated financial statements of the Company, which is included in the Company's Annual Report on Form 10-K ("2021 Annual Report"). These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the 2021 Annual Report.
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Use of estimates | The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Significant estimates include provisions for sales returns, rebates and claims from customers, realization of accounts receivable and inventories, fair value of assets acquired and liabilities assumed for business combinations, valuation of intangible assets and goodwill, estimated useful lives of long lived assets, incremental borrowing rate applied in lease accounting, valuation of stock-based compensation, recognition of deferred income taxes, recognition of liabilities related to commitments and contingencies and valuation allowances. Actual results may differ from these estimates. On an ongoing basis, the Company reviews its estimates to ensure that these estimates appropriately reflect changes in its business or new information available. |
Business combinations | Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition date fair values of the assets transferred, liabilities incurred to the former owners of the acquiree, and the equity interests issued in exchange for control of the acquiree. Acquisition related costs are recognized in net income (loss) as incurred. When the consideration transferred in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition date fair value and included as part of the consideration transferred in a business combination. Contingent consideration is established for business acquisitions where the Company has the obligation to transfer additional assets or equity interests to the former owners if specified future events occur or conditions are met. Contingent consideration is classified as a liability when the obligation requires settlement in cash or other assets and is classified as equity when the obligation requires settlement in the Company's own equity instruments. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with a corresponding adjustment to goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the measurement period (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. All other subsequent changes in the fair value of contingent consideration classified as a liability are included in net income (loss) in the period. Changes in the fair value of contingent consideration classified as equity are not recognized. For a given acquisition, the Company may identify certain pre-acquisition contingencies as of the acquisition date and may extend its review and evaluation of these pre-acquisition contingencies throughout the measurement period to obtain sufficient information to assess these contingencies as part of acquisition accounting, as applicable. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non‑controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquire (if any) over the net of the acquisition‑date fair value amounts of the identifiable assets acquired, and the liabilities assumed. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that time. Upon conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to net income (loss).
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Revenue recognition | The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”) which requires that revenue recognized from contracts with customers be disaggregated into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company has determined that revenue is generated from one category, which is the distribution and manufacture of controlled environment agriculture equipment and supplies. Revenue is recognized as control of promised goods is transferred to customers which generally occurs upon receipt at customers’ locations determined by the specific terms of the contract. Arrangements generally have a single performance obligation and revenue reported is comprised of fixed consideration and variable consideration which includes applicable volume rebates, cash discounts and sales returns and allowances. Variable consideration is estimated and recorded at the time of sale; these allowances and accruals are not material to the financial statements. The amount billed to customers for shipping and handling costs included in net sales was $3,879 and $1,245 for the three months ended March 31, 2022, and 2021, respectively. Shipping and handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs included in cost of goods sold. The Company does not receive noncash consideration for the sale of goods. Contract consideration received from a customer prior to revenue recognition is recorded as a contract liability and is recognized as revenue when the Company satisfies the related performance obligation under the terms of the contract. The Company's contract liabilities, which consist primarily of customer deposits are reported within deferred revenue in the condensed consolidated balance sheets, totaled $10,887 and $18,273 as of March 31, 2022, and December 31, 2021, respectively. There are no significant financing components. Excluded from revenue are any taxes assessed by governmental authorities, including value-added and other sales-related taxes that are imposed on and concurrent with revenue-generating activities.
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Income taxes—interim tax provision | The Company recorded an income tax benefit of $5,569 for the three months ended March 31, 2022, representing an effective income tax rate of 19.3%. The Company’s effective income tax rate for the three months ended March 31, 2022, differs from the federal statutory rate of 21% primarily as a result of a reduction in the valuation allowance recorded against the Company's net deferred tax assets, due to the acquisition of the IGE Entities (as defined below) which had an income tax rate benefit of 23.4%. In addition, as described in Note 3 - Business Combinations, the Company determined that the preliminary allocation of assets acquired related to indefinite lived trade names have a finite useful life because the expected usefulness of the trade names is limited. As a result of adjusting this provisional amount, the Company recorded a reduction to the valuation allowance, which resulted in an income tax rate benefit of 6.1%. These income tax benefits totaled $8,543, and were partially offset by income taxes from certain foreign jurisdictions where the Company conducts business and state minimum income taxes in the United States.The Company recorded a tax expense of $756 for the three months ended March 31, 2021. The Company’s effective tax rates for the three months ended March 31, 2021, differs from the federal statutory rate of 21% primarily as a result of reducing valuation allowances on the Company's deferred tax assets related to net operating loss carryforwards. |
Recent accounting pronouncements | The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the FASB. There were no ASUs that were assessed and determined to be applicable or expected to have a material impact on our condensed consolidated financial statements. |
Purchase commitments | From time to time in the normal course of business, the Company will enter into agreements with suppliers which provide favorable pricing in return for a commitment to purchase minimum amounts of inventory over a defined time period. |
Contingencies | In the normal course of business, certain claims have been brought against the Company and, where applicable, its suppliers. While there is inherent difficulty in predicting the outcome of such matters, management has vigorously contested the validity of these claims. Based on available information, management believes the claims are without merit and does not expect that the outcome, individually or in the aggregate, would have a material adverse effect on the consolidated financial positions, results of operations, cash flows or future earnings. |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Geographic Areas | Sales to external customers and property, plant and equipment, net in the United States and Canada, determined by the location of the subsidiaries, were as follows:
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Long-lived Assets by Geographic Areas | Sales to external customers and property, plant and equipment, net in the United States and Canada, determined by the location of the subsidiaries, were as follows:
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BUSINESS COMBINATIONS (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The following table sets forth the components and the preliminary allocation of the purchase price for the Company's acquisition of Heavy 16, the H&G Entities, Aurora, Greenstar and the IGE Entities:
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Business Acquisition, Pro Forma Information | The following represents certain estimated unaudited consolidated net sales and net income amounts for the quarter ended March 31, 2021 as if the five acquisitions had been included in the consolidated results of the Company for the entire period presented below. Management considers these estimates to represent an approximate measure of the performance of the combined Company (in millions):
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GOODWILL AND INTANGIBLE ASSETS, NET (Tables) |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in goodwill are as follows:
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Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net comprised the following:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Intangible assets, net comprised the following:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate future amortization expense for intangible assets subject to amortization as of March 31, 2022, is summarized below:
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EARNINGS (LOSS) PER COMMON SHARE (“EPS”) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table presents information necessary to calculate basic and diluted EPS for the three months ended March 31, 2022, and 2021:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The computation of the weighted-average shares of common stock outstanding for diluted EPS excludes the following potential common shares as their inclusion would have an anti-dilutive effect:
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ACCOUNTS RECEIVABLE, NET AND INVENTORIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable, Net | Accounts receivable, net comprised the following:
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Schedule of Inventories | Inventories comprised the following:
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OPERATING LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets And Liabilities, Lessee | Supplemental balance sheet information related to the Company’s operating leases are as follows:
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Lessee, Operating Lease, Liability, Maturity | As of March 31, 2022, future minimum lease payments under non-cancelable operating leases are as follows:
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Lessee, Operating Lease, Lease Not yet Commenced, Maturity Schedule | The future minimum lease payments for executed non-cancelable operating leases not yet commenced are as follows:
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PROPERTY, PLANT AND EQUIPMENT, NET (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, plant and equipment comprised the following:
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities and Other Current Liabilities | Accrued expenses and other current liabilities comprised the following:
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DEBT (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Debt is comprised of the following:
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CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock by Class | As of March 31, 2022, the following summarizes shares authorized, issued and outstanding:
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Schedule of Warrants | As of March 31, 2022, the following table summarizes the outstanding warrants:
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STOCK-BASED COMPENSATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Outstanding Award, Activity, Excluding Option | For purposes of this table, vested RSUs represent the shares for which the service condition had been fulfilled as of March 31, 2022:
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Share-based Payment Arrangement, Option, Activity | The following table summarizes the stock option activity for the three months ended March 31, 2022:
The following table summarizes the unvested stock option activity for the three months ended March 31, 2022:
|
FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the estimated fair value of the Company's assets and liabilities for which disclosure of fair value is required:
|
DESCRIPTION OF THE BUSINESS (Details) - Common Stock - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
May 03, 2021 |
Dec. 14, 2020 |
Dec. 31, 2021 |
|
IPO | |||
Class of Stock [Line Items] | |||
Shares issued in offering (in shares) | 9,966,667 | ||
Sale of stock, price per share (in dollars per share) | $ 20.00 | ||
Proceeds from issuance on offering | $ 182,271 | ||
Issuance of common stock in connection with follow-on public offering, net of offering cost | $ 148 | ||
Over-Allotment Option | |||
Class of Stock [Line Items] | |||
Shares issued in offering (in shares) | 1,300,000 | ||
Follow-On Public Offering | |||
Class of Stock [Line Items] | |||
Shares issued in offering (in shares) | 5,526,861 | ||
Sale of stock, price per share (in dollars per share) | $ 59.00 | ||
Proceeds from issuance on offering | $ 309,782 | ||
Follow-On Public Offering, Over-Allotment Option | |||
Class of Stock [Line Items] | |||
Shares issued in offering (in shares) | 720,894 |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022
USD ($)
segment
|
Mar. 31, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Contract liabilities | $ 10,887 | $ 18,273 | |
Number of operating segments | segment | 2 | ||
Number of reportable segments | segment | 1 | ||
Impairment loss | $ 2,636 | ||
Notes receivable | 475 | $ 622 | |
Revenue from External Customer [Line Items] | |||
Net sales | 111,377 | $ 111,389 | |
Income tax benefit (expense) | $ 5,569 | (756) | |
Effective income tax rate | 19.30% | ||
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, percent | 6.10% | ||
Validation allowance | $ 8,543 | ||
IGE Entities | |||
Revenue from External Customer [Line Items] | |||
Effective income tax rate | 23.40% | ||
Shipping and Handling | |||
Revenue from External Customer [Line Items] | |||
Net sales | $ 3,879 | $ 1,245 |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Entity-wide Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Segment Reporting Information [Line Items] | |||
Net sales | $ 111,377 | $ 111,389 | |
Property, plant and equipment, and operating lease right-of-use assets, net | 105,915 | $ 95,718 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, and operating lease right-of-use assets, net | 87,121 | 85,167 | |
Canada | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, and operating lease right-of-use assets, net | 18,794 | $ 10,551 | |
Operating segments | United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 92,858 | 90,672 | |
Operating segments | Canada | |||
Segment Reporting Information [Line Items] | |||
Net sales | 21,502 | 22,264 | |
Intersegment eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ (2,983) | $ (1,547) |
BUSINESS COMBINATIONS - Pro Forma (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Business Combination and Asset Acquisition [Abstract] | |
Net sales | $ 160 |
Net income | $ 17 |
GOODWILL AND INTANGIBLE ASSETS, NET - Narrative (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2022
USD ($)
|
Mar. 31, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
acquisition
|
|
Goodwill [Line Items] | |||
Goodwill | $ 183,338 | $ 204,868 | |
Amortization expense | 14,746 | $ 1,206 | |
Number of businesses acquired | acquisition | 5 | ||
United States | |||
Goodwill [Line Items] | |||
Goodwill | 122,977 | ||
Canada | |||
Goodwill [Line Items] | |||
Goodwill | $ 60,361 | ||
Computer software | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, amortization period | 2 years | ||
Customer relationship | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, amortization period | 12 years | ||
Technology, formulations and recipes | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, amortization period | 11 years | ||
Trade names | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, amortization period | 19 years |
GOODWILL AND INTANGIBLE ASSETS, NET - Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at December 31, 2021 | $ 204,868 |
Balance at March 31, 2022 | 183,338 |
IGE Entities | |
Goodwill [Roll Forward] | |
Remeasurement adjustments and foreign currency translation adjustments, net | (22,542) |
All others | |
Goodwill [Roll Forward] | |
Remeasurement adjustments and foreign currency translation adjustments, net | $ 1,012 |
GOODWILL AND INTANGIBLE ASSETS, NET - Future Amortization Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
For the period of April 1, 2022 to December 31, 2022 | $ 19,743 | |
Year ending December 31, 2023 | 25,036 | |
Year ending December 31, 2024 | 24,876 | |
Year ending December 31, 2025 | 24,737 | |
Year ending December 31, 2026 | 20,493 | |
Thereafter | 209,325 | |
Total | $ 324,210 | $ 193,926 |
EARNINGS (LOSS) PER COMMON SHARE (“EPS”) - Antidilutive (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Warrant | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares subject to (in shares) | 17,669 | 0 |
Performance based and restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares subject to (in shares) | 1,234,857 | 0 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares subject to (in shares) | 696,071 | 0 |
ACCOUNTS RECEIVABLE, NET AND INVENTORIES - Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Receivables [Abstract] | ||
Trade accounts receivable | $ 43,691 | $ 35,511 |
Allowance for doubtful accounts | (1,112) | (1,156) |
Other receivables | 2,740 | 7,129 |
Total accounts receivable, net | $ 45,319 | $ 41,484 |
ACCOUNTS RECEIVABLE, NET AND INVENTORIES - Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Receivables [Abstract] | ||
Finished goods | $ 145,573 | $ 145,298 |
Work-in-process | 8,786 | 5,967 |
Raw materials | 42,135 | 41,399 |
Allowance for inventory obsolescence | (6,498) | (3,530) |
Total inventories | $ 189,996 | $ 189,134 |
OPERATING LEASES - Narrative (Details) ft² in Thousands, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022
USD ($)
ft²
|
Mar. 31, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Leases [Abstract] | |||
Renewal term | 10 years | ||
Operating lease, cost | $ 2,597 | $ 1,494 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | $ 54,566 | $ 45,245 | |
Shoemakersville, Pennsylvania | |||
Leases [Abstract] | |||
Rented area (sf) | ft² | 303 | ||
Lessee, Lease, Description [Line Items] | |||
Rented area (sf) | ft² | 303 | ||
Operating lease right-of-use assets | $ 10,463 |
OPERATING LEASES - Balance Sheet (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Leases [Abstract] | ||
Operating lease right-of-use assets, net of accumulated amortization | $ 54,566 | $ 45,245 |
Total leased assets | 54,566 | 45,245 |
Current portion of lease liabilities | 7,773 | 7,198 |
Long-term lease liabilities | 46,755 | 38,595 |
Total lease liabilities | $ 54,528 | $ 45,793 |
OPERATING LEASES - Future Minimum Lease Payment (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Leases [Abstract] | ||
For the period of April 1, 2022 to December 31, 2022 | $ 7,003 | |
2023 | 9,311 | |
2024 | 9,031 | |
2025 | 8,338 | |
2026 | 6,824 | |
2027 | 6,369 | |
Thereafter | 14,208 | |
Total rental payments | 61,084 | |
Less portion representing interest | (6,556) | |
Total lease liabilities | 54,528 | $ 45,793 |
Less current portion | (7,773) | (7,198) |
Long-term portion | $ 46,755 | $ 38,595 |
OPERATING LEASES - Lease Not yet Commenced Maturity (Details) $ in Thousands |
Mar. 31, 2022
USD ($)
|
---|---|
Leases [Abstract] | |
For the period of April 1, 2022, to December 31, 2022 | $ 0 |
2023 | 3,354 |
2024 | 3,272 |
2025 | 3,610 |
2026 | 3,965 |
2027 | 4,076 |
Thereafter | 22,633 |
Total rental payments | $ 40,910 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 4,283 | $ 3,713 |
Freight, custom and duty accrual | 2,366 | 2,094 |
Goods in transit accrual | 2,413 | 3,473 |
Income tax accrual | 0 | 729 |
Contingent consideration | 15,474 | 17,034 |
Other accrued liabilities | 7,013 | 6,953 |
Total accrued expenses and other current liabilities | $ 31,549 | $ 33,996 |
DEBT - Components (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
Oct. 25, 2021 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Long-term debt | $ 121,492 | $ 121,780 | |
Current portion of long-term debt | 2,298 | 2,263 | |
Long-term debt - net of unamortized discount and deferred financing costs of $5,807 and $6,025 at March 31, 2022, and December 31, 2021, respectively | 119,194 | 119,517 | |
Total debt | 121,492 | 121,780 | |
Unamortized discount and deferred financing costs | 5,807 | 6,025 | |
Term loan | |||
Debt Instrument [Line Items] | |||
Long-term debt | 118,880 | 118,975 | |
Unamortized discount and deferred financing costs | 5,807 | 6,025 | $ 6,190 |
Other | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,612 | $ 2,805 |
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY - Capital Stock (Details) - shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Equity [Abstract] | ||
Convertible preferred stock, authorized (in shares) | 50,000,000 | |
Convertible preferred stock, outstanding (in shares) | 0 | |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares outstanding (in shares) | 44,822,866 | 44,618,357 |
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY - Outstanding Warrants (Details) |
Mar. 31, 2022
$ / shares
shares
|
---|---|
Class of Warrant or Right [Line Items] | |
Warrants outstanding (in shares) | shares | 17,669 |
Exercise price (in dollars per share) | $ / shares | $ 11.30 |
Investor Warrants, Placement Agents, $8.43 | |
Class of Warrant or Right [Line Items] | |
Warrants outstanding (in shares) | shares | 11,662 |
Exercise price (in dollars per share) | $ / shares | $ 8.43 |
Investor Warrants, Placement Agents, $16.86 | |
Class of Warrant or Right [Line Items] | |
Warrants outstanding (in shares) | shares | 6,007 |
Exercise price (in dollars per share) | $ / shares | $ 16.86 |
STOCK-BASED COMPENSATION - RSU Activity (Details) - RSU |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
shares
| |
Number of RSUs | |
Beginning (in shares) | shares | 1,087,608 |
Granted (in shares) | shares | 339,076 |
Vested (in shares) | shares | (278,002) |
Forfeited (in shares) | shares | (29,938) |
Ending (in shares) | shares | 1,118,744 |
Weighted average grant date fair value | |
Beginning (in dollars per shares) | $ / shares | $ 9.71 |
Granted (in dollars per share) | $ / shares | 15.93 |
Vested (in dollars per share) | $ / shares | 11.92 |
Forfeited (in dollars per share) | $ / shares | 52.51 |
Ending (in dollars shares) | $ / shares | $ 9.90 |
STOCK-BASED COMPENSATION - PSU Activity (Details) - PSU |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
shares
| |
Number of PSUs | |
Beginning (in shares) | shares | 0 |
Granted (in shares) | shares | 116,113 |
Ending (in shares) | shares | 116,113 |
Weighted average grant date fair value | |
Beginning (in dollars per shares) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 15.74 |
Ending (in dollars shares) | $ / shares | $ 15.74 |
STOCK-BASED COMPENSATION - Unvested Stock Option Activity (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
shares
| |
Number | |
Balance, outstanding, beginning (in shares) | shares | 202,515 |
Vested (in shares) | shares | (38,372) |
Forfeited (in shares) | shares | (16,623) |
Balance, outstanding, ending (in shares) | shares | 147,520 |
Weighted average grant date fair value | |
Balance, outstanding, beginning (in dollars per share) | $ / shares | $ 5.04 |
Vested (in dollars per share) | $ / shares | 1.02 |
Forfeited (in dollars per share) | $ / shares | 6.03 |
Balance, outstanding, ending (in dollars per share) | $ / shares | $ 5.98 |
COMMITMENTS, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Related Party Transaction [Line Items] | ||
Operating lease, expense | $ 2,261 | $ 958 |
Investor | Petaluma, California | ||
Related Party Transaction [Line Items] | ||
Operating lease, expense | $ 320 |
FAIR VALUE MEASUREMENTS (Details) - Level 2 - Term Loan - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Carrying Amount | ||
Liabilities | ||
Debt | $ 125,000 | $ 125,000 |
Estimated Fair Value | ||
Liabilities | ||
Debt | $ 118,750 | $ 121,250 |