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RESTATEMENT AND REVISION OF INTERIM FINANCIAL INFORMATION
 12 Months Ended
Jun. 29, 2024
Accounting Changes and Error Corrections [Abstract]  
RESTATEMENT AND REVISION OF INTERIM FINANCIAL INFORMATION RESTATEMENT AND REVISION OF INTERIM FINANCIAL INFORMATION
Restatement of Unaudited Consolidated Statements of Operations

In connection with the preparation of the Company’s consolidated financial statements as of and for the year ended June 29, 2024, the Company concluded that cost recovery of material price variances was not being consistently recorded across its facilities. Material price variance occurs when the price the Company pays for materials exceeds the price quoted to customers, and the Company typically recovers the excess cost from customers through a sales price adjustment. Per Company policy, this cost recovery should be recorded as net sales when inventory enters the production process, however, certain of the Company’s facilities were recording the cost recovery as a reduction to cost of sales. These errors resulted in an understatement of both net revenues and cost of sales for the quarters ended March 30, 2024, December 30, 2023, September 30, 2023, April 1, 2023, December 31, 2022, October 1, 2022, April 2, 2022, January 1, 2022, and October 2, 2022 (the “impacted quarterly periods”). As a result of these errors, the Company has restated its unaudited consolidated statements of operations for the impacted quarterly periods in the following tables. The unaudited consolidated balance sheets, statements of comprehensive income, shareholders’ equity and cash flows for the impacted quarters were not impacted by the errors noted above and have not been restated; provided, that the unaudited consolidated balance sheets as of March 30, 2024, December 30, 2023, September 30, 2023 have been revised as a result of error related to the adoption of ASU 326 as discussed below under "Revision of Unaudited Consolidated Balance Sheets."
Interim periods - fiscal year 2024 (in thousands, except per share information)
CORRECTED CONSOLIDATED STATEMENT OF OPERATIONSAs restated - three months ended 9/30/23As restated - three months ended 12/30/23As restated - three months ended 3/30/24Three months ended 6/29/24Twelve months ended 6/29/24
Net sales$150,112 [1]$147,847 [2]$142,427 [3]$126,556 $566,942 
Cost of sales139,250 [1]136,084 [2]134,346 [3]117,383 527,063 
Gross profit10,862 11,763 8,081 9,173 39,879 
Research, development and engineering expenses2,241 1,758 2,234 2,100 8,333 
Selling, general and administrative expenses5,784 6,057 6,422 6,956 25,219 
Gain on insurance proceeds, net of losses(431)— — — (431)
Total operating expenses7,594 7,815 8,656 9,056 33,121 
Operating income 3,268 3,948 (575)117 6,758 
Interest expense, net3,011 2,961 2,800 3,173 11,945 
Income (loss) before income taxes257 987 (3,375)(3,056)(5,187)
Income tax provision (benefit)(78)(97)(1,154)(1,071)(2,400)
Net income (loss)$335 $1,084 $(2,221)$(1,985)$(2,787)
Net income (loss) per share — Basic$0.03 $0.10 $(0.21)$(0.18)$(0.26)
Weighted average shares outstanding — Basic10,762 10,762 10,762 10,762 10,762 
Net income (loss) per share — Diluted$0.03 $0.10 $(0.21)$(0.18)$(0.26)
Weighted average shares outstanding — Diluted11,003 10,889 10,762 10,762 10,762 

[1] - Includes an increase of $2,349 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively.
[2] - Includes an increase of $2,430 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively.
[3] - Includes an increase of $1,900 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively.
 Interim periods - fiscal year 2023 (in thousands, except per share information)
CORRECTED CONSOLIDATED STATEMENT OF OPERATIONSAs restated - three months ended 10/1/22As restated - three months ended 12/31/22As restated - three months ended 4/1/23As restated - three months ended 7/1/23As restated - twelve months ended 7/1/23
Net sales$140,971 [1]$127,592 [2]$167,758 [3]$168,994 [4]$605,315 
Cost of sales130,592 [1]118,672 [2]153,482 [3]155,096 [4]557,843 
Gross profit10,379 8,920 14,276 13,898 47,472 
Research, development and engineering expenses2,296 2,287 2,580 2,573 9,735 
Selling, general and administrative expenses5,656 5,735 6,961 7,363 25,715 
Gain on insurance proceeds, net of losses(934)(2,710)(396)(261)(4,301)
Total operating expenses7,018 5,312 9,145 9,675 31,149 
Operating income 3,361 3,608 5,131 4,223 16,323 
Interest expense, net1,887 2,507 2,688 2,941 10,023 
Income before income taxes1,474 1,101 2,443 1,282 6,300 
Income tax provision322 134 467 220 1,143 
Net income$1,152 $967 $1,976 $1,062 $5,157 
Net income per share — Basic$0.11 $0.09 $0.18 $0.10 $0.48 
Weighted average shares outstanding — Basic10,762 10,762 10,762 10,762 10,762 
Net income per share — Diluted$0.11 $0.09 $0.18 $0.10 $0.47 
Weighted average shares outstanding — Diluted10,832 10,832 10,865 10,996 10,938 

[1] - Includes an increase of $3,708 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively.
[2] - Includes an increase of $3,884 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively.
[3] - Includes an increase of $3,205 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively.
[4] - Includes an increase of $6,384 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively.
 Interim periods - fiscal year 2022 (in thousands, except per share information)
CORRECTED CONSOLIDATED STATEMENT OF OPERATIONSAs restated - three months ended 10/2/21As restated - three months ended 1/1/22As restated - three months ended 4/2/22As restated - three months ended 7/2/22As restated - twelve months ended 7/2/22
Net sales$133,130 [1]$136,407 [2]$140,714 [3]$133,926 [4]$544,177 
Cost of sales122,992 [1]126,599 [2]129,206 [3]122,166 [4]500,963 
Gross profit10,138 9,808 11,508 11,760 43,214 
Research, development and engineering expenses2,449 2,498 2,526 2,348 9,821 
Selling, general and administrative expenses5,595 5,659 6,193 7,151 24,598 
Gain on insurance proceeds, net of losses— — — — — 
Total operating expenses8,044 8,157 8,719 9,499 34,419 
Operating income 2,094 1,651 2,789 2,261 8,795 
Interest expense, net992 1,095 1,551 1,466 5,104 
Income before income taxes1,102 556 1,238 795 3,691 
Income tax provision (benefit)287 (31)231 (173)314 
Net income$815 $587 $1,007 $968 $3,377 
Net income per share — Basic$0.08 $0.05 $0.09 $0.09 $0.31 
Weighted average shares outstanding — Basic10,762 10,762 10,762 10,762 10,762 
Net income per share — Diluted$0.07 $0.05 $0.09 $0.09 $0.31 
Weighted average shares outstanding — Diluted11,052 11,057 11,062 11,071 11,063 
[1] - Includes an increase of $368 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively.
[2] - Includes an increase of $1,951 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively.
[3] - Includes an increase of $2,323 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively.
[4] - Includes an increase of $7,720 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively.

Revision of Unaudited Consolidated Balance Sheets

In addition, in connection with the preparation of the Company’s consolidated financial statements as of and for the year ended June 29, 2024, the Company concluded that it had not recorded an immaterial adjustment related to its adoption on July 2, 2023 of ASU 2016-13 Financial Instruments - Credit Losses (ASU 326): Measurement of Credit Losses on Financial Instruments . As of July 2, 2023, the Company should have performed an assessment and recorded any adjustment as a modified retrospective adjustment through its opening retained earnings balance. The error resulted in an immaterial overstatement of accounts receivable, contract assets, other assets and retained earnings as of March 30, 2024, December 30, 2023 and September 30, 2023. Given the restatement described above, the Company elected to revise its unaudited consolidated balance sheets as of March 30, 2024, December 30, 2023 and September 30, 2023 in the following tables. The related unaudited consolidated statements of operations, statements of comprehensive income, shareholders’ equity and cash flows were not materially impacted by this error and have not been revised for this matter.
CORRECTED CONSOLIDATED BALANCE SHEETS (in thousands)As revised - as of 9/30/23As revised - as of 12/30/23As revised - as of 3/30/24
ASSETS
Current assets:
Cash and cash equivalents$3,574 $2,953 $5,255 
Trade receivables, net of credit losses[1]138,463 $131,913 $132,663 
Contract assets[1]32,878 $27,745 $28,594 
Inventories126,778 $124,054 $115,115 
Other[1]21,700 $21,382 $20,994 
Total current assets323,393 $308,047 $302,621 
Property, plant and equipment, net28,085 $28,935 $29,046 
Operating lease right-of-use assets, net15,928 $18,104 $16,790 
Other assets:
Deferred income tax asset[1]14,161 $14,117 $15,533 
Other7,500 $6,243 $6,109 
Total other assets21,661 $20,360 $21,642 
Total assets$389,067 $375,446 $370,099 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable$101,638 $91,358 $82,198 
Accrued compensation and vacation11,860 $5,677 $7,071 
Current portion of long-term debt2,886 $3,068 $3,094 
Other16,640 $18,263 $17,040 
Total current liabilities133,024 $118,366 $109,403 
Long-term liabilities:
Long-term debt, net 115,789 $114,894 $122,193 
Operating lease liabilities10,939 $12,380 $11,351 
Deferred income tax liability324 22 $19 
Other long-term obligations1,201 627 $336 
Total long-term liabilities128,253 127,923 $133,899 
Total liabilities261,277 246,289 $243,302 
Commitments and contingencies (Note 9)
Shareholders’ equity:
Common stock, no par value—shares authorized 25,000; issued and outstanding 10,762, 10,762, and 10,762 shares, respectively
47,786 47,839 47,891 
Retained earnings[1]80,043 81,127 78,906 
Accumulated other comprehensive (loss) income(39)191 — 
Total shareholders’ equity127,790 129,157 126,797 
Total liabilities and shareholders’ equity$389,067 $375,446 370,099 
[1] - Each presented period includes a reduction for expected credit losses of $(2,979) related to receivables, $(1,230) related to Other, $(25) related to Contract Assets, $956 related to deferred income tax asset, and $(3,278) related to Retained Earnings. These adjustments serve to reflect a modified retrospective adoption of ASC 326 - Financial Instruments, Credit Losses. The related tax-effects and subsequent inter-period adjustments are considered immaterial for presentation on an interim basis.