Supplemental Balance Sheet Data and Cash Flow Information

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Balance Sheet Data and Cash Flow Information

Note 3 — Supplemental Balance Sheet Data and Cash Flow Information

Cash and cash equivalents — Cash and cash equivalents include securities with original maturities of three months or less and cash in banks. In June 2021, we invested in a money market fund. A money market fund is classified as a cash equivalent because of its short-term, highly liquid nature that is readily convertible to cash. Unrealized gains or losses are included in other operating non-operating expense (income), net and were immaterial in all periods presented. The balance was approximately $55.0 million and $70.0 million at March 31, 2022 and December 31, 2021, respectively. The fair value of money market funds is considered Level 1 in

the fair value hierarchy because they are securities traded in active markets. Refer to Note 10, “Fair Value Measurement” for further detail.

In May 2021, we completed a public offering of 4.5 million shares of Class A common stock. Additionally, the underwriters completed the exercise of an allotment option to sell an additional 0.8 million shares (the public offering and the allotment option collectively referred to as the “May 2021 Equity Offering”). Cash proceeds received in the May 2021 Equity Offering, net of underwriting fees, commissions, and transaction expenses, were $103.4 million. We used some of the proceeds to invest in a money market fund to generate short-term cash returns. Additionally, we prepaid $20.9 million of principal on the First Lien Dollar Term Facility in the June 2021 Prepayment (herein defined). The balance will be used for general corporate purposes. Refer to Note 7, “Long-Term Debt” for further detail.

Accounts Receivable, net — The components of accounts receivable, net were as follows:

	March 31, 2022			December 31, 2021
Accounts receivable	$	48.5		$	44.7
Allowance for doubtful accounts		(0.9	)		(1.0	)
Accounts receivable, net	$	47.6		$	43.7

At March 31, 2022 and December 31, 2021, no customer’s accounts receivable balances exceeded 10.0% of our accounts receivable balance.

Inventories, net — The components of inventories, net were as follows:

	March 31, 2022			December 31, 2021
Raw materials	$	18.4		$	19.5
Work-in-process		10.8			1.2
Finished goods		12.3			12.5
Total inventories		41.5			33.2
Reserve for obsolescence		(0.3	)		(0.3	)
Inventories, net	$	41.2		$	32.9

Property, Plant and Equipment, net — The following table details our property, plant and equipment, net:

	March 31, 2022			December 31, 2021
Land	$	4.1		$	4.1
Buildings and improvements		8.8			9.2
Machinery and equipment		29.4			22.3
Computer and office equipment		10.5			12.7
Converting machines		167.3			164.1
Total property, plant, and equipment		220.1			212.4
Accumulated depreciation		(97.0	)		(86.1	)
Property, plant, and equipment, net	$	123.1		$	126.3

Depreciation expense recorded in cost of goods sold and depreciation and amortization in the unaudited condensed consolidated statements of operations and comprehensive income (loss) was as follows:

	Three Months Ended March 31,
Depreciation expense included in	2022		2021
Cost of goods sold	$	10.6	$	9.1
Depreciation and amortization expense		0.9		1.4
Total depreciation expense	$	11.5	$	10.5

Accrued Liabilities and Other – The components of accrued liabilities and other were as follows:

	March 31, 2022		December 31, 2021
Employee compensation	$	2.2	$	1.5
Taxes		10.8		6.9
Professional fees		3.5		4.6
Bonus		3.3		10.1
Interest		1.6		1.7
Interest rate swap liability, current portion		0.4		3.8
Other		1.2		2.9
Accrued liabilities and other	$	23.0	$	31.5

Supplemental Cash Flow Information — Supplemental cash flow information is as follows:

	Three Months Ended March 31,
	2022		2021
Supplemental cash flow information
Interest paid	$	5.1	$	5.5
Taxes paid		0.7		0.7
Non-cash investing activities
Right-of-use assets obtained in exchange for lease liabilities	$	0.1	$	8.9
Capital expenditures in accounts payable	$	0.7	$	0.3