|
Delaware
|
| |
3089
|
| |
83-2797583
|
|
|
(State or Other Jurisdiction of
Incorporation or Organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
|
John C. Kennedy, Esq.
Paul, Weiss, Rifkind, Wharton & Garrison LLP 1285 Avenue of the Americas New York, New York 10019-6064 (212) 373-3000 |
| |
Ian D. Schuman, Esq.
Erika Weinberg, Esq. Latham & Watkins LLP 885 Third Avenue New York, New York 10022-4834 (212) 906-1200 |
|
|
Large accelerated filer
☐
|
| |
Accelerated filer
☐
|
|
|
Non-accelerated filer
☒
|
| |
Smaller reporting company
☐
|
|
| | | |
Emerging growth company
☒
|
|
| | | |||||||||||||||||||||||||
|
Title of each Class of
Securities to be Registered |
| | |
Amount to be
Registered(1) |
| | |
Proposed Maximum
Offering Price Per Share(1)(2) |
| | |
Proposed Maximum
Aggregate Offering Price(1)(2) |
| | |
Amount of
Registration Fee |
| |||||||||
|
Common Stock, par value $0.0001 per share
|
| | |
|
| | | | $ | | | | | | $ | | | | | | $ | | |
| | | | | 1 | | | |
| | | | | 21 | | | |
| | | | | 41 | | | |
| | | | | 43 | | | |
| | | | | 44 | | | |
| | | | | 45 | | | |
| | | | | 46 | | | |
| | | | | 48 | | | |
| | | | | 73 | | | |
| | | | | 95 | | | |
| | | | | 103 | | | |
| | | | | 114 | | | |
| | | | | 118 | | | |
| | | | | 120 | | | |
| | | | | 128 | | | |
| | | | | 130 | | | |
| | | | | 134 | | | |
| | | | | 141 | | | |
| | | | | 141 | | | |
| | | | | 141 | | | |
| | | | | 141 | | | |
| | | | | F-1 | | |
| | |
Predecessor
|
| | |
Successor(1)
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Year ended December 31,
|
| |
Period of
January 1, 2018 through December 18, |
| | |
Period of
December 19, 2018 through December 31, |
| |
Year ended December 31,
|
| |
Three months ended,
|
| |||||||||||||||||||||||||||||||||
| | |
2016
(unaudited) |
| |
2017
(unaudited) |
| |
2018
(unaudited) |
| | |
2018
(unaudited) |
| |
2019(2)
|
| |
2020(2)
|
| |
March 28,
2020 |
| |
April 3,
2021 |
| ||||||||||||||||||||||||
Net sales
|
| | | $ | 247,496 | | | | | $ | 265,247 | | | | | $ | 285,838 | | | | | | $ | 1,374 | | | | | $ | 317,975 | | | | | $ | 403,389 | | | | | $ | 51,134 | | | | | $ | 148,746 | | |
Cost of sales
|
| | | | 168,021 | | | | | | 178,761 | | | | | | 190,834 | | | | | | | 2,881 | | | | | | 219,819 | | | | | | 260,616 | | | | | | 41,035 | | | | | | 96,306 | | |
Gross profit
|
| | | | 79,475 | | | | | | 86,486 | | | | | | 95,004 | | | | | | | (1,507) | | | | | | 98,156 | | | | | | 142,773 | | | | | | 10,099 | | | | | | 52,440 | | |
Selling, general and administrative expense
|
| | | | 47,268 | | | | | | 43,931 | | | | | | 67,466 | | | | | | | 2,689 | | | | | | 57,388 | | | | | | 85,527 | | | | | | 15,432 | | | | | | 27,172 | | |
Amortization
|
| | | | 8,990 | | | | | | 8,288 | | | | | | 7,992 | | | | | | | 1,068 | | | | | | 15,643 | | | | | | 17,347 | | | | | | 4,063 | | | | | | 5,595 | | |
Income (loss) from operations
|
| | | | 23,217 | | | | | | 34,267 | | | | | | 19,546 | | | | | | | (5,264) | | | | | | 25,125 | | | | | | 39,899 | | | | | | (9,396) | | | | | | 19,673 | | |
Other expense (income):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 14,550 | | | | | | 14,143 | | | | | | 11,116 | | | | | | | 664 | | | | | | 22,639 | | | | | | 18,251 | | | | | | 5,333 | | | | | | 9,056 | | |
Other expense (income),net
|
| | | | 47 | | | | | | (1,596) | | | | | | 2,312 | | | | | | | 85 | | | | | | (300) | | | | | | (1,111) | | | | | | 3,741 | | | | | | (555) | | |
Total other expense (income), net
|
| | | | 14,597 | | | | | | 12,547 | | | | | | 13,428 | | | | | | | 749 | | | | | | 22,339 | | | | | | 17,140 | | | | | | 9,074 | | | | | | 8,501 | | |
Earnings from equity method investment
|
| | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 244 | | |
Income (loss) before income taxes
|
| | | | 8,620 | | | | | | 21,720 | | | | | | 6,118 | | | | | | | (6,013) | | | | | | 2,786 | | | | | | 22,759 | | | | | | (18,470) | | | | | | 11,416 | | |
Income tax (benefit) expense
|
| | | | 5,720 | | | | | | (13,516) | | | | | | 4,229 | | | | | | | (981) | | | | | | (4,671) | | | | | | 6,776 | | | | | | (3,019) | | | | | | 2,883 | | |
Net income (loss)
|
| | | $ | 2,900 | | | | | $ | 35,236 | | | | | $ | 1,889 | | | | | | $ | (5,032) | | | | | $ | 7,457 | | | | | $ | 15,983 | | | | | $ | (15,451) | | | | | $ | 8,533 | | |
| | |
Predecessor
|
| | |
Successor(1)
|
| |||||||||||||||||||||||||||||||||
| | |
Year ended
December 31, |
| |
Period of
January 1, 2018 through December 18, |
| | |
Period of
December 19, 2018 through December 31, |
| |
Year ended December 31,
|
| |
Three months ended,
|
| ||||||||||||||||||||||||
| | |
2016
(unaudited) |
| |
2017
(unaudited) |
| |
2018
(unaudited) |
| | |
2018
(unaudited) |
| |
2019(2)
|
| |
2020(2)
|
| |
March 28,
2020 |
| |
April 3,
2021 |
| |||||||||||||||
Net income (loss) per share attributable to common stockholders:(3)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | | | | | | | | | | $ | (0.05) | | | | | $ | 0.07 | | | | | $ | 0.14 | | | | | $ | (0.14) | | | | | $ | 0.08 | | |
Weighted-average common shares outstanding:(3)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | | | | | | | | | | | 109,673,709 | | | | | | 109,673,709 | | | | | | 116,469,884 | | | | | | 109,673,709 | | | | | | 109,673,709 | | |
| | |
Year ended December 31,
|
| |
Three months ended,
|
| ||||||||||||||||||
|
2019
|
| |
2020
|
| |
March 28, 2020
|
| |
April 3, 2021
|
| ||||||||||||||
Net cash provided by (used in) operating activities
|
| | | $ | 35,655 | | | | | $ | 63,161 | | | | | $ | (26,288) | | | | | $ | (41,018) | | |
Net cash used in investing activities
|
| | | | (27,083) | | | | | | (115,805) | | | | | | (2,789) | | | | | | (4,608) | | |
Net cash provided by financing activities
|
| | | | 16,551 | | | | | | 54,302 | | | | | | 4,600 | | | | | | 6,054 | | |
| | |
Predecessor
|
| | |
Successor(1)
|
| ||||||||||||||||||||||||||||||||||||||||||
|
Year ended December 31,
|
| |
Period of
January 1, 2018 through December 18, |
| | |
Period of
December 19, 2018 through December 31, |
| |
Year ended December 31,
|
| |
Three months ended,
|
| |||||||||||||||||||||||||||||||||||
|
2016
|
| |
2017
|
| |
2018
|
| | |
2018
|
| |
2019(2)
|
| |
2020(2)
|
| |
March 28,
2020 |
| |
April 3,
2021 |
| ||||||||||||||||||||||||||
Net income margin(4)
|
| | | | 1.2% | | | | | | 13.3% | | | | | | 0.7% | | | | | | | (366.2)% | | | | | | 2.3% | | | | | | 4.0% | | | | | | (30.2)% | | | | | | 5.7% | | |
Adjusted EBITDA(5)
|
| | | $ | 39,063 | | | | | $ | 47,252 | | | | | $ | 57,324 | | | | | | $ | (3,185) | | | | | $ | 61,050 | | | | | $ | 83,836 | | | | | $ | (1,885) | | | | | $ | 33,520 | | |
Adjusted EBITDA
margin(6) |
| | | | 15.8% | | | | | | 17.8% | | | | | | 20.1% | | | | | | | (231.8)% | | | | | | 19.2% | | | | | | 20.8% | | | | | | (3.7)% | | | | | | 22.5% | | |
| | |
As of April 3, 2021
|
| |||||||||
|
Actual
|
| |
As Adjusted(7)
|
| ||||||||
Cash
|
| | | $ | 19,945 | | | | | $ | | | |
Working capital(8)
|
| | | | 81,125 | | | | | | | | |
Total assets
|
| | | | 675,149 | | | | | | | | |
Total debt(9)
|
| | | | 405,964 | | | | | | | | |
Total liabilities
|
| | | | 559,715 | | | | | | | | |
| | |
As of April 3, 2021
|
| ||||||
|
Actual
|
| |
As Adjusted(7)
|
| |||||
Total stockholders’ equity
|
| | | | 115,434 | | | | | |
| | |
Predecessor
|
| | |
Successor(2)
|
| ||||||||||||||||||||||||||||||||||||||||||
|
Year ended December 31,
|
| |
Period of
January 1, 2018 through December 18, |
| | |
Period of
December 19, 2018 through December 31, |
| |
Year ended December 31,
|
| |
Three months ended,
|
| |||||||||||||||||||||||||||||||||||
|
2016
(unaudited) |
| |
2017
(unaudited) |
| |
2018
(unaudited) |
| | |
2018
(unaudited) |
| |
2019(1)
|
| |
2020(1)
|
| |
March 28,
2020 |
| |
April 3,
2021 |
| ||||||||||||||||||||||||||
Net income
|
| | | $ | 2,900 | | | | | $ | 35,236 | | | | | $ | 1,889 | | | | | | $ | (5,032) | | | | | $ | 7,457 | | | | | $ | 15,983 | | | | | $ | (15,451) | | | | | $ | 8,533 | | |
Depreciation and amortization
|
| | | | 14,162 | | | | | | 14,587 | | | | | | 14,767 | | | | | | | 1,228 | | | | | | 21,659 | | | | | | 25,365 | | | | | | 5,755 | | | | | | 7,900 | | |
Interest expense
|
| | | | 14,550 | | | | | | 14,143 | | | | | | 11,116 | | | | | | | 664 | | | | | | 22,639 | | | | | | 18,251 | | | | | | 5,333 | | | | | | 9,056 | | |
Income tax (benefit)
expense |
| | | | 5,720 | | | | | | (13,516) | | | | | | 4,229 | | | | | | | (981) | | | | | | (4,671) | | | | | | 6,776 | | | | | | (3,019) | | | | | | 2,883 | | |
Loss (gain) on sale and disposal of property and equipment
|
| | | | 233 | | | | | | (204) | | | | | | 914 | | | | | | | 34 | | | | | | 680 | | | | | | 332 | | | | | | 3 | | | | | | 165 | | |
Restructuring charges(a)
|
| | | | 609 | | | | | | 176 | | | | | | 1,271 | | | | | | | 47 | | | | | | 980 | | | | | | 1,265 | | | | | | 286 | | | | | | 371 | | |
| | |
Predecessor
|
| | |
Successor(2)
|
| ||||||||||||||||||||||||||||||||||||||||||
|
Year ended
December 31, |
| |
Period of
January 1, 2018 through December 18, |
| | |
Period of
December 19, 2018 through December 31, |
| |
Year ended
December 31, |
| |
Three months ended,
|
| |||||||||||||||||||||||||||||||||||
|
2016
(unaudited) |
| |
2017
(unaudited) |
| |
2018
(unaudited) |
| | |
2018
(unaudited) |
| |
2019(1)
|
| |
2020(1)
|
| |
March 28,
2020 |
| |
April 3,
2021 |
| ||||||||||||||||||||||||||
Management
fees(b) |
| | | | 500 | | | | | | 500 | | | | | | 482 | | | | | | | 18 | | | | | | 500 | | | | | | — | | | | | | — | | | | | | — | | |
Stock-based compensation expense
|
| | | | 9 | | | | | | 9 | | | | | | (18) | | | | | | | — | | | | | | 808 | | | | | | 1,827 | | | | | | 224 | | | | | | 1,464 | | |
Unrealized (gains) losses on foreign currency transactions(c)
|
| | | | 47 | | | | | | (1,596) | | | | | | 2,312 | | | | | | | 85 | | | | | | (300) | | | | | | (1,111) | | | | | | 3,741 | | | | | | (61) | | |
Strategic initiative costs(d)
|
| | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | 964 | | | | | | 6,264 | | | | | | 1,092 | | | | | | — | | |
Acquisition and
integration related costs(e) |
| | | | 592 | | | | | | 239 | | | | | | 19,135 | | | | | | | 707 | | | | | | 3,612 | | | | | | 5,497 | | | | | | 112 | | | | | | 68 | | |
Other(f) | | | | | (259) | | | | | | (2,322) | | | | | | 1,227 | | | | | | | 45 | | | | | | 6,722 | | | | | | 1,656 | | | | | | 39 | | | | | | 264 | | |
IPO costs(g)
|
| | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 1,731 | | | | | | — | | | | | | 2,877 | | |
Adjusted EBITDA (unaudited)
|
| | | $ | 39,063 | | | | | $ | 47,252 | | | | | $ | 57,324 | | | | | | $ | (3,185) | | | | | $ | 61,050 | | | | | $ | 83,836 | | | | | $ | (1,885) | | | | | $ | 33,520 | | |
Net Sales
|
| | | $ | 247,496 | | | | | $ | 265,247 | | | | | $ | 285,838 | | | | | | $ | 1,374 | | | | | $ | 317,975 | | | | | $ | 403,389 | | | | | $ | 51,134 | | | | | $ | 148,746 | | |
Net income
margin |
| | | | 1.2% | | | | | | 13.3% | | | | | | 0.7% | | | | | | | (366.2)% | | | | | | 2.3% | | | | | | 4.0% | | | | | | (30.2)% | | | | | | 5.7% | | |
Adjusted EBITDA margin
(unaudited) |
| | | | 15.8% | | | | | | 17.8% | | | | | | 20.1% | | | | | | | (231.8)% | | | | | | 19.2% | | | | | | 20.8% | | | | | | (3.7)% | | | | | | 22.5% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
As of April 3, 2021
|
| |||||||||
|
Actual
|
| |
As Adjusted
|
| ||||||||
|
(in thousands, except share and per share data)
|
| |||||||||||
Cash
|
| | | $ | 19,945 | | | | | $ | | | |
Long-term debt, including current portion: | | | | | | | | | | | | | |
Amended Term Loan
|
| | | | 389,964 | | | | | | 389,964 | | |
Revolving Credit Facility(1)
|
| | | | 16,000 | | | | | | 16,000 | | |
Total debt, net of discount and debt issuance costs
|
| | | | 405,964 | | | | | | 405,964 | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; no shares authorized, issued or outstanding, actual; 100,000,000 shares authorized, no shares issued or outstanding, as adjusted
|
| | | | — | | | | | | — | | |
Common stock, $0.0001 par value; 500,000,000 shares authorized, 109,673,709 issued and outstanding, actual; 900,000,000 shares authorized, shares issued and outstanding, as adjusted
|
| | | | 11 | | | | | | | | |
Additional paid-in capital(2)
|
| | | | 91,943 | | | | | | | | |
Retained earnings (accumulated deficit)(2)
|
| | | | 22,298 | | | | | | | | |
Accumulated other comprehensive income
|
| | | | 1,182 | | | | | | | | |
Total stockholders’ equity
|
| | | | 115,434 | | | | | | | | |
Total capitalization
|
| | | $ | 521,398 | | | | | $ | | |
| | |
Predecessor
|
| | |
Successor(1)
|
| ||||||||||||||||||||||||||||||||||||||||||
|
Year ended December 31,
|
| |
Period of
January 1, 2018 through December 18, |
| | |
Period of
December 19, 2018 through December 31, |
| |
Year ended December 31,
|
| |
Three months ended,
|
| |||||||||||||||||||||||||||||||||||
|
2016
(unaudited) |
| |
2017
(unaudited) |
| |
2018
(unaudited) |
| | |
2018
(unaudited) |
| |
2019(2)
|
| |
2020(2)
|
| |
March 28, 2020
|
| |
April 3, 2021
|
| ||||||||||||||||||||||||||
Net sales
|
| | | $ | 247,496 | | | | | $ | 265,247 | | | | | $ | 285,838 | | | | | | $ | 1,374 | | | | | $ | 317,975 | | | | | $ | 403,389 | | | | | $ | 51,134 | | | | | $ | 148,746 | | |
Cost of sales
|
| | | | 168,021 | | | | | | 178,761 | | | | | | 190,834 | | | | | | | 2,881 | | | | | | 219,819 | | | | | | 260,616 | | | | | | 41,035 | | | | | | 96,306 | | |
Gross profit
|
| | | | 79,475 | | | | | | 86,486 | | | | | | 95,004 | | | | | | | (1,507) | | | | | | 98,156 | | | | | | 142,773 | | | | | | 10,099 | | | | | | 52,440 | | |
Selling, general and administrative
expense |
| | | | 47,268 | | | | | | 43,931 | | | | | | 67,466 | | | | | | | 2,689 | | | | | | 57,388 | | | | | | 85,527 | | | | | | 15,432 | | | | | | 27,172 | | |
Amortization
|
| | | | 8,990 | | | | | | 8,288 | | | | | | 7,992 | | | | | | | 1,068 | | | | | | 15,643 | | | | | | 17,347 | | | | | | 4,063 | | | | | | 5,595 | | |
Income (loss) from operations
|
| | | | 23,217 | | | | | | 34,267 | | | | | | 19,546 | | | | | | | (5,264) | | | | | | 25,125 | | | | | | 39,899 | | | | | | (9,396) | | | | | | 19,673 | | |
Other expense (income): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 14,550 | | | | | | 14,143 | | | | | | 11,116 | | | | | | | 664 | | | | | | 22,639 | | | | | | 18,251 | | | | | | 5,333 | | | | | | 9,056 | | |
Other expense (income), net
|
| | | | 47 | | | | | | (1,596) | | | | | | 2,312 | | | | | | | 85 | | | | | | (300) | | | | | | (1,111) | | | | | | 3,741 | | | | | | (555) | | |
Total other expense (income), net
|
| | | | 14,597 | | | | | | 12,547 | | | | | | 13,428 | | | | | | | 749 | | | | | | 22,339 | | | | | | 17,140 | | | | | | 9,074 | | | | | | 8,501 | | |
Earnings from equity method investment
|
| | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 244 | | |
Income (loss) before income taxes
|
| | | | 8,620 | | | | | | 21,720 | | | | | | 6,118 | | | | | | | (6,013) | | | | | | 2,786 | | | | | | 22,759 | | | | | | (18,470) | | | | | | 11,416 | | |
Income tax (benefit) expense
|
| | | | 5,720 | | | | | | (13,516) | | | | | | 4,229 | | | | | | | (981) | | | | | | (4,671) | | | | | | 6,776 | | | | | | (3,019) | | | | | | 2,883 | | |
Net income (loss)
|
| | | $ | 2,900 | | | | | $ | 35,236 | | | | | $ | 1,889 | | | | | | $ | (5,032) | | | | | $ | 7,457 | | | | | $ | 15,983 | | | | | $ | (15,451) | | | | | $ | 8,533 | | |
| | |
Predecessor
|
| | |
Successor(1)
|
| |||||||||||||||||||||||||||||||||
|
Year ended
December 31, |
| |
Period of
January 1, 2018 through December 18, |
| | |
Period of
December 19, 2018 through December 31, |
| |
Year ended December 31,
|
| |
Three months ended,
|
| ||||||||||||||||||||||||||
|
2016
(unaudited) |
| |
2017
(unaudited) |
| |
2018
(unaudited) |
| | |
2018
(unaudited) |
| |
2019(2)
|
| |
2020(2)
|
| |
March 28, 2020
|
| |
April 3, 2021
|
| |||||||||||||||||
Net income (loss) per share
attributable to common stockholders:(3) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | | | | | | | | | | $ | (0.05) | | | | | $ | 0.07 | | | | | $ | 0.14 | | | | | $ | (0.14) | | | | | $ | 0.08 | | |
Weighted-average common
shares outstanding:(3) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | | | | | | | | | | | 109,673,709 | | | | | | 109,673,709 | | | | | | 116,469,884 | | | | | | 109,673,709 | | | | | | 109,673,709 | | |
| | |
Year ended December 31,
|
| |
Three months ended,
|
| ||||||||||||||||||
|
2019
|
| |
2020
|
| |
March 28, 2020
|
| |
April 3, 2021
|
| ||||||||||||||
Net cash provided by (used in) operating activities
|
| | | $ | 35,655 | | | | | $ | 63,161 | | | | | $ | (26,288) | | | | | $ | (41,018) | | |
Net cash used in investing activities
|
| | | | (27,083) | | | | | | (115,805) | | | | | | (2,789) | | | | | | (4,608) | | |
Net cash provided by financing activities
|
| | | | 16,551 | | | | | | 54,302 | | | | | | 4,600 | | | | | | 6,054 | | |
| | |
As of December 31,
|
| |
As of April 3,
|
| ||||||||||||
|
2019
|
| |
2020
|
| |
2021
|
| |||||||||||
Cash
|
| | | $ | 56,655 | | | | | $ | 59,310 | | | | | $ | 19,945 | | |
Working capital(4)
|
| | | | 77,496 | | | | | | 73,389 | | | | | | 81,125 | | |
Total assets
|
| | | | 525,711 | | | | | | 646,676 | | | | | | 675,149 | | |
Total debt(5)
|
| | | | 223,223 | | | | | | 286,434 | | | | | | 405,964 | | |
Total liabilities
|
| | | | 331,916 | | | | | | 430,005 | | | | | | 559,715 | | |
Total stockholders’ equity
|
| | | | 193,795 | | | | | | 216,671 | | | | | | 115,434 | | |
| | |
Fiscal Quarter Ended
|
| |||||||||||||||||||||||||||||||||
| | |
April 3,
2021 |
| |
% of
Net Sales |
| |
March 28,
2020 |
| |
% of
Net Sales |
| |
Change
Amount |
| |
Change
% of Net Sales |
| ||||||||||||||||||
| | |
(dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
Net sales
|
| | | $ | 148,746 | | | | | | 100.0% | | | | | $ | 51,134 | | | | | | 100.0% | | | | | $ | 97,612 | | | | | | 0)% | | |
Cost of sales
|
| | | | 96,306 | | | | | | 64.7% | | | | | | 41,035 | | | | | | 80.2% | | | | | | 55,271 | | | | | | (15.5)% | | |
Gross profit
|
| | | | 52,440 | | | | | | 35.3% | | | | | | 10,099 | | | | | | 19.8% | | | | | | 42,341 | | | | | | 15.5% | | |
Selling, general and administrative expense
|
| | | | 27,172 | | | | | | 18.3% | | | | | | 15,432 | | | | | | 30.2% | | | | | | 11,740 | | | | | | (11.9)% | | |
Amortization
|
| | | | 5,595 | | | | | | 3.8% | | | | | | 4,063 | | | | | | 7.9% | | | | | | 1,532 | | | | | | (4.1)% | | |
Income (loss) from operations
|
| | | | 19,673 | | | | | | 13.2% | | | | | | (9,396) | | | | | | 18.4% | | | | | | 29,069 | | | | | | (5.2)% | | |
Other expense (income): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 9,056 | | | | | | 6.1% | | | | | | 5,333 | | | | | | 10.4% | | | | | | 3,723 | | | | | | (4.3)% | | |
Other expense (income), net
|
| | | | (555) | | | | | | 0.4% | | | | | | 3,741 | | | | | | 7.3% | | | | | | (4,296) | | | | | | (6.9)% | | |
Total other expense (income), net
|
| | | | 8,501 | | | | | | 5.7% | | | | | | 9,074 | | | | | | 17.7% | | | | | | (573) | | | | | | (12.0)% | | |
Earnings from equity method investment
|
| | | | 244 | | | | | | 0.2% | | | | | | — | | | | | | — | | | | | | 244 | | | | | | 0.2% | | |
Income (loss) before income taxes
|
| | | | 11,416 | | | | | | 7.7% | | | | | | (18,470) | | | | | | 36.1% | | | | | | 29,886 | | | | | | (28.4)% | | |
Income tax (benefit) expense
|
| | | | 2,883 | | | | | | 1.9% | | | | | | (3,019) | | | | | | 5.9% | | | | | | 5,902 | | | | | | (4.0)% | | |
Net income (loss)
|
| | | $ | 8,533 | | | | | | 5.7% | | | | | $ | (15,451) | | | | | | 30.2% | | | | | $ | 23,984 | | | | | | (24.5)% | | |
Adjusted EBITDA
|
| | | $ | 33,520 | | | | | | 22.5% | | | | | $ | (1,885) | | | | | | 3.7% | | | | | $ | 35,405 | | | | | | 18.8% | | |
| | |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2019
|
| |
% of
Net Sales |
| |
2020
|
| |
% of
Net Sales |
| |
Change
Amount |
| |
Change
% of Net Sales |
| ||||||||||||||||||
| | |
(dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
Net sales
|
| | | $ | 317,975 | | | | | | 100% | | | | | $ | 403,389 | | | | | | 100% | | | | | $ | 85,414 | | | | | | 0% | | |
Cost of sales
|
| | | | 219,819 | | | | | | 69.1% | | | | | | 260,616 | | | | | | 64.6% | | | | | | 40,797 | | | | | | (4.5)% | | |
Gross profit
|
| | | | 98,156 | | | | | | 30.9% | | | | | | 142,773 | | | | | | 35.4% | | | | | | 44,617 | | | | | | 4.5% | | |
Selling, general and administrative expense
|
| | | | 57,388 | | | | | | 18.0% | | | | | | 85,527 | | | | | | 21.2% | | | | | | 28,139 | | | | | | 3.2% | | |
Amortization
|
| | | | 15,643 | | | | | | 4.9% | | | | | | 17,347 | | | | | | 4.3% | | | | | | 1,704 | | | | | | (0.6)% | | |
Income from operations
|
| | | | 25,125 | | | | | | 7.9% | | | | | | 39,899 | | | | | | 9.9% | | | | | | 14,774 | | | | | | 2.0% | | |
Other expense (income): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 22,639 | | | | | | 7.1% | | | | | | 18,251 | | | | | | 4.5% | | | | | | (4,388) | | | | | | (2.6)% | | |
Other expense (income), net
|
| | | | (300) | | | | | | 0.1% | | | | | | (1,111) | | | | | | 0.3% | | | | | | (811) | | | | | | 0.2% | | |
Total other expense (income), net
|
| | | | 22,339 | | | | | | 7.0% | | | | | | 17,140 | | | | | | 4.2% | | | | | | (5,199) | | | | | | (2.8)% | | |
Income before income taxes
|
| | | | 2,786 | | | | | | 0.9% | | | | | | 22,759 | | | | | | 5.6% | | | | | | 19,973 | | | | | | 4.8% | | |
Income tax (benefit) expense
|
| | | | (4,671) | | | | | | 1.5% | | | | | | 6,776 | | | | | | 1.7% | | | | | | 11,447 | | | | | | 0.2% | | |
Net income
|
| | | $ | 7,457 | | | | | | 2.3% | | | | | $ | 15,983 | | | | | | 4.0% | | | | | $ | 8,526 | | | | | | 1.6% | | |
Adjusted EBITDA
|
| | | $ | 61,050 | | | | | | 19.2% | | | | | $ | 83,836 | | | | | | 20.8% | | | | | $ | 22,786 | | | | | | 1.6% | | |
| | |
Year Ended December 31,
|
| |
Three months ended,
|
| ||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
March 28, 2020
|
| |
April 3, 2021
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net income (loss)
|
| | | $ | 7,457 | | | | | $ | 15,983 | | | | | $ | (15,451) | | | | | $ | 8,533 | | |
Depreciation and amortization
|
| | | | 21,659 | | | | | | 25,365 | | | | | | 5,755 | | | | | | 7,900 | | |
Interest expense
|
| | | | 22,639 | | | | | | 18,251 | | | | | | 5,333 | | | | | | 9,056 | | |
Income tax (benefit) expense
|
| | | | (4,671) | | | | | | 6,776 | | | | | | (3,019) | | | | | | 2,883 | | |
Loss on sale and disposal of property and equipment
|
| | | | 680 | | | | | | 332 | | | | | | 3 | | | | | | 165 | | |
Restructuring charges(a)
|
| | | | 980 | | | | | | 1,265 | | | | | | 286 | | | | | | 371 | | |
Management fees(b)
|
| | | | 500 | | | | | | — | | | | | | — | | | | | | — | | |
Stock-based compensation expense
|
| | | | 808 | | | | | | 1,827 | | | | | | 224 | | | | | | 1,464 | | |
Unrealized (gains) losses on foreign currency
transactions(c) |
| | | | (300) | | | | | | (1,111) | | | | | | 3,741 | | | | | | (61) | | |
Strategic initiative costs(d)
|
| | | | 964 | | | | | | 6,264 | | | | | | 1,092 | | | | | | — | | |
Acquisition and integration related costs(e)
|
| | | | 3,612 | | | | | | 5,497 | | | | | | 112 | | | | | | 68 | | |
Other(f) | | | | | 6,722 | | | | | | 1,656 | | | | | | 39 | | | | | | 264 | | |
IPO costs(g)
|
| | | | — | | | | | | 1,731 | | | | | | — | | | | | | 2,877 | | |
Adjusted EBITDA
|
| | | $ | 61,050 | | | | | $ | 83,836 | | | | | $ | (1,885) | | | | | $ | 33,520 | | |
Net sales
|
| | | $ | 317,975 | | | | | $ | 403,389 | | | | | $ | 51,134 | | | | | $ | 148,746 | | |
Net income margin
|
| | | | 2.3% | | | | | | 4.0% | | | | | | (30.2)% | | | | | | 5.7% | | |
Adjusted EBITDA margin
|
| | | | 19.2% | | | | | | 20.8% | | | | | | (3.7)% | | | | | | 22.5% | | |
Leverage Ratio
|
| |
Mandatory
Prepayment Percentage |
| |||
> 3.50:1.00
|
| | | | 90% | | |
> 3.00:1.00 and ≤ 3.50:1.00
|
| | | | 75% | | |
> 2.50:1.00 and ≤ 3.00:1.00
|
| | | | 50% | | |
> 2.00:1.00 and ≤ 2.50:1.00
|
| | | | 25% | | |
≤ 2.00:1.00
|
| | | | 0% | | |
| | |
Year Ended December 31,
|
| |
Three months ended,
|
| ||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
March 28, 2020
|
| |
April 3, 2021
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net cash provided by (used in) operating activities
|
| | | $ | 35,655 | | | | | $ | 63,161 | | | | | $ | (26,288) | | | | | $ | (41,018) | | |
Net cash used in investing activities
|
| | | | (27,083) | | | | | | (115,805) | | | | | | (2,789) | | | | | | (4,608) | | |
Net cash provided by financing activities
|
| | | | 16,551 | | | | | | 54,302 | | | | | | 4,600 | | | | | | 6,054 | | |
Effect of exchange rate changes on cash
|
| | | | (956) | | | | | | 997 | | | | | | (1,694) | | | | | | 207 | | |
Net increase (decrease) in cash
|
| | | $ | 24,167 | | | | | $ | 2,655 | | | | | $ | (26,171) | | | | | $ | (39,365) | | |
| | |
Payments Due by Period
|
| |||||||||||||||||||||||||||
| | |
Total
|
| |
Less than
1 Year |
| |
1 to 3 Years
|
| |
4 to 5 Years
|
| |
More than
5 Years |
| |||||||||||||||
Long-term indebtedness, excluding interest(1)(5)
|
| | | $ | 293,085 | | | | | $ | 13,042 | | | | | $ | 91,022 | | | | | $ | 189,021 | | | | | $ | — | | |
Interest on long-term indebtedness(2)(5)
|
| | | | 64,593 | | | | | | 15,940 | | | | | | 29,282 | | | | | | 19,371 | | | | | | — | | |
Operating lease obligations(3)
|
| | | | 29,329 | | | | | | 6,484 | | | | | | 10,426 | | | | | | 7,325 | | | | | | 5,094 | | |
Total(4) | | | | $ | 387,007 | | | | | $ | 35,466 | | | | | $ | 130,730 | | | | | $ | 215,717 | | | | | $ | 5,094 | | |
Location
|
| |
Purpose
|
| |
Size (Sq. ft.)
|
| |
Ownership
(owned or leased) |
| |||
Adelaide, Australia
|
| | Storage facility | | | | | 21,097* | | | |
Leased
|
|
Melbourne, Australia
|
| | Storage facility and office | | | | | 5,942 | | | |
Leased
|
|
Picton, Australia
|
| | Fiberglass facility | | | | | 41,818 | | | |
Leased
|
|
Sydney, Australia
|
| | Office | | | | | 6,889 | | | |
Leased
|
|
Yalta, Australia
|
| | Fiberglass facility | | | | | 28,266 | | | |
Leased
|
|
Ajax, Canada
|
| | Fiberglass steps | | | | | 25,641 | | | |
Leased
|
|
Brantford, Canada
|
| |
Liners, steel panels and covers facility
|
| | | | 113,360 | | | |
Leased
|
|
Kingston, Canada
|
| | Fiberglass facility | | | | | 3,600 | | | |
Leased
|
|
Terrebonne, Canada
|
| | Warehouse/distribution | | | | | 35,000 | | | |
Leased
|
|
Hamilton, New Zealand
|
| | Fiberglass facility | | | | | 18,912 | | | |
Leased
|
|
Location
|
| |
Purpose
|
| |
Size (Sq. ft.)
|
| |
Ownership
(owned or leased) |
| |||
Hamilton, New Zealand
|
| | Mold building facility | | | | | 12,701 | | | |
Leased
|
|
Williams, California
|
| | Fiberglass facility | | | | | 67,734 | | | |
Leased
|
|
Zephyrhills, Florida
|
| | Fiberglass facility | | | | | 42,000 | | | |
Leased
|
|
Suwanee, Georgia
|
| | Liners and covers facility | | | | | 84,466 | | | |
Leased
|
|
Fort Wayne, Indiana
|
| | Liners, kits and covers facility | | | | | 161,000 | | | |
Leased
|
|
Plainfield, Indiana
|
| | Automatic safety covers facility | | | | | 99,288 | | | |
Leased
|
|
De Witt, Iowa
|
| | Fiberglass facility | | | | | 40,000 | | | |
Leased
|
|
Bossier City, Louisiana
|
| | Liners and covers facility | | | | | 47,334 | | | |
Leased
|
|
Breaux Bridge, Louisiana
|
| | Fiberglass facility | | | | | 22,463 | | | |
Leased
|
|
Latham, New York
|
| |
Headquarters, polymer panels and thermoformed steps facility
|
| | | | 97,000 | | | |
Owned
|
|
Queensbury, New York
|
| | Fiberglass depot | | | | | 2,400 | | | |
Leased
|
|
Scotia, New York
|
| | Liners and covers facility | | | | | 122,543 | | | |
Leased
|
|
Powells Point, North Carolina
|
| | Fiberglass depot | | | | | 964 | | | |
Leased
|
|
Rockingham, North Carolina
|
| | Fiberglass facility | | | | | 45,330 | | | |
Owned
|
|
Youngstown, Ohio
|
| | Warehouse — finished products | | | | | 105,000 | | | |
Leased
|
|
Youngstown, Ohio
|
| | Warehouse — raw materials | | | | | 85,868 | | | |
Leased
|
|
Youngstown, Ohio
|
| | Liners and covers facility | | | | | 16,992 | | | |
Leased
|
|
Fayetteville, Tennessee
|
| | Fiberglass facility | | | | | 58,631 | | | |
Owned
|
|
Odessa, Texas
|
| | Fiberglass facility | | | | | 33,500 | | | |
Leased
|
|
Lindon, Utah
|
| | Automatic safety covers facility | | | | | 55,789 | | | |
Leased
|
|
Jane Lew, West Virginia
|
| | Fiberglass facility | | | | | 67,100 | | | |
Leased
|
|
Jane Lew, West Virginia
|
| | Storage facility and office | | | | | 18,000 | | | |
Leased
|
|
Name
|
| |
Age
|
| |
Position
|
|
Scott M. Rajeski | | |
54
|
| | Director and Chief Executive Officer | |
J. Mark Borseth | | |
62
|
| | Chief Financial Officer | |
Jeff A. Leake | | |
59
|
| | Chief Operating Officer | |
Joel R. Culp | | |
57
|
| | Chief Marketing Officer | |
Kaushal B. Dhruv | | |
46
|
| | Chief Information Officer | |
Melissa C. Feck | | |
49
|
| | Chief Human Resource Officer | |
Jason A. Duva | | |
48
|
| |
General Counsel and Chief Administrative Officer
|
|
Joshua D. Cowley | | |
44
|
| | Chief Commercial Officer | |
James E. Cline | | |
70
|
| | Chairman and Director | |
Robert D. Evans | | |
62
|
| | Director | |
Alexander L. Hawkinson | | |
48
|
| | Director | |
Mark P. Laven | | |
68
|
| | Vice Chairman and Director | |
Suzan Morno-Wade | | |
53
|
| | Director | |
William M. Pruellage | | |
48
|
| | Director | |
Andrew D. Singer | | |
32
|
| | Director | |
Christopher P. O’Brien | | |
46
|
| | Director | |
Name and Principal Position
|
| |
Fiscal
Year |
| |
Salary
($) |
| |
Stock
Awards(1) ($) |
| |
Non-Equity
Incentive Plan Compensation(2) |
| |
All Other
Compensation(3) ($) |
| |
Total
($) |
| ||||||||||||||||||
Scott M. Rajeski
Chief Executive Officer |
| | | | 2020 | | | | | | 400,000 | | | | | | — | | | | | | 800,000 | | | | | | 16,551 | | | | | | 1,216,551 | | |
J. Mark Borseth(4)
Chief Financial Officer |
| | | | 2020 | | | | | | 297,260 | | | | | | 546,844 | | | | | | 420,000 | | | | | | 60,322 | | | | | | 1,324,426 | | |
Joel R. Culp
Chief Marketing Officer |
| | | | 2020 | | | | | | 315,000 | | | | | | 226,837 | | | | | | 378,000 | | | | | | 39,046 | | | | | | 958,883 | | |
Name
|
| |
Company
401(k) Match ($) |
| |
Company
Automobile Reimbursement ($) |
| |
Relocation
Reimbursement ($) |
| |
Total ($)
|
| ||||||||||||
Scott M. Rajeski
|
| | | | 1,551 | | | | | | 15,000 | | | | | | — | | | | | | 16,551 | | |
J. Mark Borseth
|
| | | | 3,322 | | | | | | 7,000 | | | | | | 50,000 | | | | | | 60,322 | | |
Joel R. Culp
|
| | | | 1,817 | | | | | | 8,400 | | | | | | 28,829 | | | | | | 39,046 | | |
Name
|
| |
Grant Date
|
| |
Number of
Shares or Units of Stock That Have Not Vested (#)(1)(4) |
| |
Market Value
of Shares or Units of Stock That Have Not Vested ($)(2) |
| |
Number of
Unearned Shares, Units or Other Rights That Have Not Vested (#)(3) |
| |
Market or
Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(2) |
| |||||||||||||||
Scott M. Rajeski
|
| | | | 12/20/2018 | | | | | | 1,688,091 | | | | | | 1,738,734 | | | | | | 5,626,971 | | | | | | 4,895,464 | | |
J. Mark Borseth
|
| | | | 5/26/2020 | | | | | | 703,371 | | | | | | 724,472 | | | | | | 1,406,742 | | | | | | 1,223,866 | | |
| | | | | 5/26/2020 | | | | | | 239,464 | | | | | | 246,648 | | | | | | — | | | | | | — | | |
Joel R. Culp
|
| | | | 2/13/2020 | | | | | | 422,023 | | | | | | 434,683 | | | | | | 1,055,057 | | | | | | 917,899 | | |
Name
|
| |
Grant Date
|
| |
Vesting Schedule
|
|
Scott M. Rajeski
|
| |
12/20/2018
|
| | Vests 20% per year over 5 years. Approximately 562,697 Class B Units are scheduled to vest on each of December 20, 2021, 2022 and 2023 | |
J. Mark Borseth
|
| |
5/26/2020
|
| | Vests 20% per year over 5 years. Approximately 140,674 Class B Units are scheduled to vest on each of May 26, 2021, 2022, 2023, 2024 and 2025 | |
| | |
5/26/2020
|
| | Vests 100% in May 26, 2021 | |
Joel R. Culp
|
| |
2/13/2020
|
| | Vests 20% per year over 5 years beginning on May 11, 2019. Approximately 105,506 Class B Units are scheduled to vest on each of May 11, 2021, 2022, 2023 and 2024 | |
Name
|
| |
Fiscal Year
|
| |
Fees Earned
($) |
| |
Stock Awards(1)
($) |
| |
Other
Compensation(2) ($) |
| |
Total
($) |
| |||||||||||||||
James E. Cline
|
| | | | 2020 | | | | | | 100,000 | | | | | | — | | | | | | — | | | | | | 100,000 | | |
Mark P. Laven(3)
|
| | | | 2020 | | | | | | 200,000 | | | | | | — | | | | | | 148,361 | | | | | | 348,361 | | |
Robert D. Evans
|
| | | | 2020 | | | | | | 100,000 | | | | | | — | | | | | | — | | | | | | 100,000 | | |
Alexander L. Hawkinson(4)
|
| | | | 2020 | | | | | | 50,000 | | | | | | 362,236 | | | | | | — | | | | | | 412,236 | | |
Russell Gehrett
|
| | | | 2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Andrew D. Singer
|
| | | | 2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Christopher P. O’Brien
|
| | | | 2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name
|
| |
Grant Date
|
| |
Number of Shares or Units
of Stock That Have Not Vested (#) |
| ||||||
James E. Cline
|
| | | | 3/4/2019 | | | | | | 281,349 | | |
Mark P. Laven
|
| | | | 12/20/2018 | | | | | | 422,023 | | |
Robert D. Evans
|
| | | | 9/1/2019 | | | | | | 281,349 | | |
Alexander L. Hawkinson
|
| | | | 10/16/2020 | | | | | | 351,686 | | |
Name
|
| |
Shares of Common Stock
|
| |||
Pamplona Fund
|
| | | | 70,561,013 | | |
Wynnchurch Funds
|
| | | | 20,392,663 | | |
Scott M. Rajeski
|
| | | | 4,422,388 | | |
J. Mark Borseth
|
| | | | 1,149,613 | | |
Joel R. Culp
|
| | | | 838,901 | | |
Jeff A. Leake
|
| | | | 829,657 | | |
Kaushal B. Dhruv
|
| | | | 200,135 | | |
Melissa C. Feck
|
| | | | 530,905 | | |
James E. Cline
|
| | | | 505,883 | | |
Robert D. Evans
|
| | | | 630,991 | | |
Alexander L. Hawkinson
|
| | | | 483,858 | | |
Mark P. Laven
|
| | | | 1,512,199 | | |
William M. Pruellage
|
| | | | — | | |
Andrew D. Singer
|
| | | | — | | |
Christopher P. O’Brien
|
| | | | — | | |
Name
|
| |
Number of shares of
common stock sold to us |
| |
Cash Proceeds ($)
|
| ||||||
Pamplona Fund
|
| | | | 9,084,432 | | | | | | 160.5 million | | |
Wynnchurch Funds
|
| | | | 2,625,465 | | | | | | 46.4 million | | |
Name
|
| |
Number of shares of
common stock to be sold to us, assuming the underwriters’ option to purchase additional shares is not exercised |
| |
Cash Proceeds ($)
|
| |
Number of shares of
common stock to be sold to us, assuming the underwriters’ option to purchase additional shares is exercised |
| |
Cash Proceeds ($)
|
|
Pamplona Fund
|
| | | | | | | | | | | | |
Wynnchurch Funds
|
| | | | | | | | | | | | |
| | |
Shares of Common Stock
Beneficially Owned Before the Offering |
| |
Shares of
Common Stock Beneficially Owned After the Offering Assuming Underwriters’ Option Is Not Exercised |
| |
Shares of
Common Stock Beneficially Owned After the Offering Assuming Underwriters’ Option Is Exercised |
| |||||||||||||||||||||||||||
|
Number
|
| |
Percent
|
| |
Number
|
| |
Percent
|
| |
Number
|
| |
Percent
|
| ||||||||||||||||||||
5% Stockholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pamplona Funds(1)
|
| | | | 61,476,581 | | | | | | 51.1% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Wynnchurch Funds(2)
|
| | | | 17,767,168 | | | | | | 14.8% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Named Executive Officers and Directors
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Scott M. Rajeski(3)
|
| | | | 4,437,388 | | | | | | 3.7% | | | | | | | | | | | | | | | | | | | | | | | | | | |
J. Mark Borseth
|
| | | | 1,159,613 | | | | | | 1.0% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Joel R. Culp
|
| | | | 838,901 | | | | | | 0.7% | | | | | | | | | | | | | | | | | | | | | | | | | | |
James E. Cline(4)
|
| | | | 555,883 | | | | | | 0.5% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Robert D. Evans
|
| | | | 655,991 | | | | | | 0.5% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Alexander L. Hawkinson
|
| | | | 483,858 | | | | | | 0.4% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mark P. Laven(5)
|
| | | | 1,517,199 | | | | | | 1.3% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Suzan Morno-Wade
|
| | | | 2,500 | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
William M. Pruellage
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Andrew D. Singer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Christopher P. O’Brien(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All current directors and
executive officers as a group (11 persons) |
| | | | 9,651,333 | | | | | | 8.0% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Underwriters
|
| |
Number of Shares
|
| |||
Barclays Capital Inc.
|
| | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total
|
| | | | | |
| | |
Company
|
| |||||||||
| | |
No Exercise
|
| |
Full Exercise
|
| ||||||
Per Share
|
| | | $ | | | | | $ | | | ||
Total
|
| | | $ | | | | | $ | | |
| Audited Consolidated Financial Statements | | | |||||
| | | | | F-2 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| | | | | F-10 | | | |
| Unaudited Condensed Consolidated Financial Statements | | | | | | | |
| | | | | F-48 | | | |
| | | | | F-49 | | | |
| | | | | F-50 | | | |
| | | | | F-51 | | | |
| | | | | F-52 | | | |
| | | | | F-54 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 56,655 | | | | | $ | 59,310 | | |
Trade receivables, net
|
| | | | 31,427 | | | | | | 32,758 | | |
Inventories, net
|
| | | | 35,611 | | | | | | 64,818 | | |
Income tax receivable
|
| | | | — | | | | | | 4,377 | | |
Prepaid expenses and other current assets
|
| | | | 3,998 | | | | | | 6,063 | | |
Total current assets
|
| | | | 127,691 | | | | | | 167,326 | | |
Property and equipment, net
|
| | | | 37,845 | | | | | | 47,357 | | |
Equity method investment
|
| | | | — | | | | | | 25,384 | | |
Deferred tax assets
|
| | | | 206 | | | | | | 345 | | |
Deferred offering costs
|
| | | | — | | | | | | 1,041 | | |
Goodwill
|
| | | | 101,672 | | | | | | 115,750 | | |
Intangible assets, net
|
| | | | 258,297 | | | | | | 289,473 | | |
Total assets
|
| | | $ | 525,711 | | | | | $ | 646,676 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 12,093 | | | | | $ | 29,789 | | |
Accounts payable – related party
|
| | | | — | | | | | | 500 | | |
Current maturities of long-term debt
|
| | | | 6,891 | | | | | | 13,042 | | |
Accrued expenses and other current liabilities
|
| | | | 22,233 | | | | | | 50,606 | | |
Contingent consideration liability
|
| | | | 8,978 | | | | | | — | | |
Total current liabilities
|
| | | | 50,195 | | | | | | 93,937 | | |
Long-term debt, net of discount and current portion
|
| | | | 216,332 | | | | | | 208,454 | | |
Related party note payable
|
| | | | — | | | | | | 64,938 | | |
Deferred income tax liabilities, net
|
| | | | 60,008 | | | | | | 55,193 | | |
Liability for uncertain tax positions
|
| | | | 5,075 | | | | | | 5,540 | | |
Other long-term liabilities
|
| | | | 306 | | | | | | 1,943 | | |
Total liabilities
|
| | | | 331,916 | | | | | | 430,005 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 500,000,000 shares authorized as of December 31, 2019 and 2020; 109,673,709 shares issued and outstanding as of December 31, 2019 and 2020
|
| | | | 11 | | | | | | 11 | | |
Additional paid-in capital
|
| | | | 196,473 | | | | | | 200,541 | | |
Retained earnings (accumulated deficit)
|
| | | | (2,218) | | | | | | 13,765 | | |
Accumulated other comprehensive income (loss)
|
| | | | (471) | | | | | | 2,354 | | |
Total stockholders’ equity
|
| | | | 193,795 | | | | | | 216,671 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 525,711 | | | | | $ | 646,676 | | |
| | |
Year Ended December 31,
|
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Net sales
|
| | | $ | 317,975 | | | | | $ | 403,389 | | |
Cost of sales
|
| | | | 219,819 | | | | | | 260,616 | | |
Gross profit
|
| | | | 98,156 | | | | | | 142,773 | | |
Selling, general and administrative expense
|
| | | | 57,388 | | | | | | 85,527 | | |
Amortization
|
| | | | 15,643 | | | | | | 17,347 | | |
Income from operations
|
| | | | 25,125 | | | | | | 39,899 | | |
Other expense (income): | | | | | | | | | | | | | |
Interest expense
|
| | | | 22,639 | | | | | | 18,251 | | |
Other expense (income), net
|
| | | | (300) | | | | | | (1,111) | | |
Total other expense (income), net
|
| | | | 22,339 | | | | | | 17,140 | | |
Income before income taxes
|
| | | | 2,786 | | | | | | 22,759 | | |
Income tax (benefit) expense
|
| | | | (4,671) | | | | | | 6,776 | | |
Net income
|
| | | $ | 7,457 | | | | | $ | 15,983 | | |
Net income per share attributable to common stockholders: | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.07 | | | | | $ | 0.14 | | |
Diluted
|
| | | $ | 0.07 | | | | | $ | 0.14 | | |
Weighted-average common shares outstanding – basic and diluted | | | | | | | | | | | | | |
Basic
|
| | | | 109,673,709 | | | | | | 116,469,884 | | |
Diluted
|
| | | | 109,673,709 | | | | | | 116,469,884 | | |
| | |
Year Ended December 31,
|
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Net income
|
| | | $ | 7,457 | | | | | $ | 15,983 | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | (664) | | | | | | 2,825 | | |
Benefit pension plan adjustments
|
| | | | (6) | | | | | | — | | |
Total other comprehensive income (loss), net of tax
|
| | | | (670) | | | | | | 2,825 | | |
Comprehensive income
|
| | | $ | 6,787 | | | | | $ | 18,808 | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Retained
Earnings (Accumulated Deficit) |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||
|
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||
Balances at December 31, 2018
|
| | | | 109,673,709 | | | | | $ | 11 | | | | | $ | 188,048 | | | | | $ | (7,978) | | | | | $ | 199 | | | | | $ | 180,280 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 7,457 | | | | | | — | | | | | | 7,457 | | |
Cumulative effect of adoption of new revenue recognition standard (Note 2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,697) | | | | | | — | | | | | | (1,697) | | |
Foreign currency translation adjustments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (664) | | | | | | (664) | | |
Defined benefit pension plan adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6) | | | | | | (6) | | |
Capital contribution from parent
|
| | | | — | | | | | | — | | | | | | 7,817 | | | | | | — | | | | | | — | | | | | | 7,817 | | |
Distributions to parent
|
| | | | — | | | | | | — | | | | | | (200) | | | | | | — | | | | | | — | | | | | | (200) | | |
Stock-based compensation expense
|
| | | | — | | | | | | — | | | | | | 808 | | | | | | — | | | | | | — | | | | | | 808 | | |
Balances at December 31, 2019
|
| | | | 109,673,709 | | | | | | 11 | | | | | | 196,473 | | | | | | (2,218) | | | | | | (471) | | | | | | 193,795 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 15,983 | | | | | | — | | | | | | 15,983 | | |
Foreign currency translation adjustments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,825 | | | | | | 2,825 | | |
Issuance of common stock
|
| | | | 32,902,113 | | | | | | 3 | | | | | | 64,935 | | | | | | — | | | | | | — | | | | | | 64,938 | | |
Capital contribution from parent
|
| | | | — | | | | | | — | | | | | | 615 | | | | | | — | | | | | | — | | | | | | 615 | | |
Distributions to parent
|
| | | | — | | | | | | — | | | | | | (582) | | | | | | — | | | | | | — | | | | | | (582) | | |
Purchases and retirement of treasury stock
|
| | | | (32,902,113) | | | | | | (3) | | | | | | (64,935) | | | | | | — | | | | | | — | | | | | | (64,938) | | |
Contingent consideration settlement
|
| | | | — | | | | | | — | | | | | | 2,208 | | | | | | — | | | | | | — | | | | | | 2,208 | | |
Stock-based compensation expense
|
| | | | — | | | | | | — | | | | | | 1,827 | | | | | | — | | | | | | — | | | | | | 1,827 | | |
Balances at December 31, 2020
|
| | | | 109,673,709 | | | | | $ | 11 | | | | | $ | 200,541 | | | | | $ | 13,765 | | | | | $ | 2,354 | | | | | $ | 216,671 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 7,457 | | | | | $ | 15,983 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 21,659 | | | | | | 25,365 | | |
Amortization of deferred financing costs and debt discount
|
| | | | 3,151 | | | | | | 2,317 | | |
Bad debt expense
|
| | | | 253 | | | | | | 358 | | |
Change in fair value of interest rate swap
|
| | | | — | | | | | | 334 | | |
Deferred income taxes
|
| | | | (10,226) | | | | | | (4,670) | | |
Stock-based compensation expense
|
| | | | 808 | | | | | | 1,827 | | |
Loss on sale and disposal of property and equipment
|
| | | | 680 | | | | | | 332 | | |
Provision on liability for uncertain tax positions
|
| | | | 5,075 | | | | | | 465 | | |
Change in fair value of contingent consideration for Narellan Group Pty Limited
|
| | | | 1,441 | | | | | | (204) | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Trade receivables
|
| | | | (7,104) | | | | | | 9,462 | | |
Inventories
|
| | | | 12,960 | | | | | | (17,023) | | |
Prepaid expenses and other current assets
|
| | | | 1,460 | | | | | | 1,680 | | |
Income tax receivable
|
| | | | (503) | | | | | | (4,190) | | |
Accounts payable
|
| | | | (2,278) | | | | | | 12,647 | | |
Accrued expenses and other current liabilities
|
| | | | 699 | | | | | | 17,685 | | |
Other long-term liabilities
|
| | | | 123 | | | | | | 793 | | |
Net cash provided by operating activities
|
| | | | 35,655 | | | | | | 63,161 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (8,165) | | | | | | (16,264) | | |
Proceeds from the sale of property and equipment
|
| | | | 1,296 | | | | | | 579 | | |
Acquisitions of businesses, net of cash acquired
|
| | | | (20,214) | | | | | | (74,736) | | |
Equity method investment in Premier Pools & Spas
|
| | | | — | | | | | | (25,384) | | |
Net cash used in investing activities
|
| | | | (27,083) | | | | | | (115,805) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from long-term debt borrowings
|
| | | | 22,310 | | | | | | 20,000 | | |
Payments on long-term debt borrowings
|
| | | | (5,809) | | | | | | (24,044) | | |
Proceeds from capital contributions from parent
|
| | | | 250 | | | | | | 615 | | |
Distributions to parent
|
| | | | (200) | | | | | | (582) | | |
Proceeds from issuance of common stock
|
| | | | — | | | | | | 64,938 | | |
Payments of initial public offering costs
|
| | | | — | | | | | | (1) | | |
Payments of Narellan Group Pty Limited contingent consideration
|
| | | | — | | | | | | (6,624) | | |
Net cash provided by financing activities
|
| | | | 16,551 | | | | | | 54,302 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Effect of exchange rate changes on cash
|
| | | | (956) | | | | | | 997 | | |
Net increase in cash
|
| | | | 24,167 | | | | | | 2,655 | | |
Cash at beginning of period
|
| | | | 32,488 | | | | | | 56,655 | | |
Cash at end of period
|
| | | $ | 56,655 | | | | | $ | 59,310 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 19,488 | | | | | $ | 15,625 | | |
Income taxes paid, net
|
| | | $ | 168 | | | | | $ | 14,815 | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Purchases of property and equipment included in accounts payable and accrued expenses
|
| | | $ | 312 | | | | | $ | 1,235 | | |
Capitalized internal-use software included in accounts payable – related party
|
| | | $ | — | | | | | $ | 500 | | |
Deferred offering costs included in accounts payable and accrued expenses
|
| | | $ | — | | | | | $ | 1,040 | | |
Related party note entered into for purchase of treasury stock
|
| | | $ | — | | | | | $ | 64,938 | | |
Fair value of contingent consideration recorded in connection with acquisition of Narellan Group Pty Limited
|
| | | $ | 8,869 | | | | | $ | — | | |
Fair value of equity issued by Parent to settle contingent consideration in connection with the acquisition of Narellan Group Pty Limited
|
| | | $ | 7,567 | | | | | | | | |
Change in defined benefit pension plan liability
|
| | | $ | 31 | | | | | $ | (149) | | |
Net working capital adjustment receivable
|
| | | $ | — | | | | | $ | 750 | | |
| | |
Estimated
Useful Life |
|
Building and improvements
|
| |
25 years
|
|
Molds and dyes
|
| |
5 – 10 years
|
|
Machinery and equipment (including computer equipment and software)
|
| |
3 – 10 years
|
|
Furniture and fixtures
|
| |
5 – 7 years
|
|
Vehicles
|
| |
5 years
|
|
Asset
|
| |
Estimated
Useful Life |
|
Patented technology
|
| |
5 – 10 years
|
|
Trade names and trademarks
|
| |
9 – 25 years
|
|
Pool designs
|
| |
14 years
|
|
Franchise relationships
|
| |
4 years
|
|
Dealer relationships
|
| |
5 – 15 years
|
|
Non-competition agreements
|
| |
5 years
|
|
(in thousands)
|
| |
May 31, 2019
|
| |||
Total consideration
|
| | | $ | 35,233 | | |
Allocation of purchase price: | | | | | | | |
Cash
|
| | | | 24 | | |
Trade receivables
|
| | | | 1,420 | | |
Inventories
|
| | | | 4,501 | | |
Prepaid expenses and other current assets
|
| | | | 472 | | |
Property and equipment
|
| | | | 4,861 | | |
Intangible assets
|
| | | | 18,332 | | |
Deferred tax asset
|
| | | | 126 | | |
Total assets acquired
|
| | | | 29,736 | | |
Accounts payable
|
| | | | 3,379 | | |
Accrued expenses and other current liabilities
|
| | | | 442 | | |
Deferred tax liabilities
|
| | | | 470 | | |
Total liabilities assumed
|
| | | | 4,291 | | |
Total fair value of net assets acquired, excluding goodwill:
|
| | | | 25,445 | | |
Goodwill
|
| | | $ | 9,788 | | |
(in thousands)
|
| |
Amount
|
| |||
Cash consideration
|
| | | $ | 20,238 | | |
Fair value of equity consideration
|
| | | | 7,567 | | |
Fair value of contingent consideration
|
| | | | 7,428 | | |
Total consideration
|
| | | $ | 35,233 | | |
Definite-lived intangible assets:
|
| |
Fair Value
(in thousands) |
| |
Amortization
Period (in years) |
| ||||||
Trade names and trademarks
|
| | | $ | 9,535 | | | | | | 25 | | |
Pool designs
|
| | | | 5,728 | | | | | | 14 | | |
Patented technology
|
| | | | 1,410 | | | | | | 5 | | |
Franchise relationships
|
| | | | 1,187 | | | | | | 4 | | |
Dealer relationships
|
| | | | 472 | | | | | | 5 | | |
(in thousands)
|
| |
Amount
|
| |||
Net sales
|
| | | $ | 15,893 | | |
Net loss
|
| | | $ | (1,047) | | |
(in thousands)
|
| |
October 22, 2020
|
| |||
Total consideration
|
| | | $ | 79,743 | | |
Allocation of purchase price: | | | | | | | |
Cash
|
| | | | 5,007 | | |
Trade receivables
|
| | | | 10,639 | | |
Inventories
|
| | | | 11,854 | | |
Prepaid expenses and other current assets
|
| | | | 3,949 | | |
Property and equipment
|
| | | | 1,402 | | |
Intangible assets
|
| | | | 46,700 | | |
Total assets acquired
|
| | | | 79,551 | | |
Accounts payable
|
| | | | 3,536 | | |
Accrued expenses and other current liabilities
|
| | | | 8,853 | | |
Other long-term liabilities
|
| | | | 524 | | |
Total liabilities assumed
|
| | | | 12,913 | | |
Total fair value of net assets acquired, excluding goodwill:
|
| | | | 66,638 | | |
Goodwill
|
| | | $ | 13,105 | | |
Definite-lived intangible assets:
|
| |
Fair Value
(in thousands) |
| |
Amortization
Period (in years) |
| ||||||
Trade names
|
| | | $ | 9,500 | | | | | | 9 | | |
Dealer relationships
|
| | | | 37,200 | | | | | | 8 | | |
| | | | $ | 46,700 | | | | | | | | |
(in thousands)
|
| |
Year Ended
December 31, 2020 |
| |||
Net sales
|
| | | $ | 7,689 | | |
Net loss
|
| | | $ | (1,123) | | |
(in thousands)
|
| |
Year Ended
December 31, |
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Net sales
|
| | | $ | 382,029 | | | | | $ | 462,802 | | |
Net income
|
| | | $ | 6,066 | | | | | $ | 26,344 | | |
| | |
Fair Value
|
| |||
Balance as of May 31, 2019
|
| | | $ | 7,428 | | |
Change in fair value of Contingent Consideration
|
| | | | 1,441 | | |
Foreign currency translation adjustment
|
| | | | 109 | | |
Balance as of December 31, 2019
|
| | | | 8,978 | | |
Change in fair value of Contingent Consideration
|
| | | | (204) | | |
Foreign currency translation adjustment
|
| | | | 58 | | |
Payment of Contingent Consideration and issuance of Class A units (see Note 3)
|
| | | | (8,832) | | |
Balance as of September 25, 2020
|
| | | $ | — | | |
| | |
Year Ended
December 31, 2019 |
| |||
EBITDA risk adjustment
|
| | | | 17.30% | | |
Annual EBITDA volatility
|
| | | | 55.00% | | |
Risk-free rate of return
|
| | | | 2.10% | | |
| | |
December 31,
|
| |||||||||||||||||||||
|
2019
|
| |
2020
|
| ||||||||||||||||||||
|
Carrying
Value |
| |
Estimated
Fair Value |
| |
Carrying
Value |
| |
Estimated
Fair Value |
| ||||||||||||||
Term loan
|
| | | $ | 223,223 | | | | | $ | 220,712 | | | | | $ | 221,496 | | | | | $ | 221,081 | | |
| | |
Amount
|
| |||
Balance as of December 31, 2018
|
| | | $ | 91,782 | | |
Acquisition
|
| | | | 9,788 | | |
Foreign currency translation adjustment
|
| | | | 102 | | |
Balance as of December 31, 2019
|
| | | | 101,672 | | |
Acquisition
|
| | | | 13,105 | | |
Foreign currency translation adjustment
|
| | | | 973 | | |
Balance as of December 31, 2020
|
| | | $ | 115,750 | | |
| | |
December 31, 2019
|
| |||||||||||||||||||||
|
Gross
Carrying Amount |
| |
Foreign
Currency Translation |
| |
Accumulated
Amortization |
| |
Net
Amount |
| ||||||||||||||
Trade names and trademarks
|
| | | $ | 125,600 | | | | | $ | 99 | | | | | $ | 5,032 | | | | | $ | 120,667 | | |
Patented technology
|
| | | | 16,126 | | | | | | 14 | | | | | | 1,698 | | | | | | 14,442 | | |
Pool designs
|
| | | | 5,728 | | | | | | 59 | | | | | | 239 | | | | | | 5,548 | | |
Franchise relationships
|
| | | | 1,187 | | | | | | 12 | | | | | | 173 | | | | | | 1,026 | | |
Dealer relationships
|
| | | | 123,176 | | | | | | 5 | | | | | | 8,530 | | | | | | 114,651 | | |
Non-competition agreements
|
| | | | 2,476 | | | | | | — | | | | | | 513 | | | | | | 1,963 | | |
| | | | $ | 274,293 | | | | | $ | 189 | | | | | $ | 16,185 | | | | | $ | 258,297 | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||
|
Gross
Carrying Amount |
| |
Foreign
Currency Translation |
| |
Accumulated
Amortization |
| |
Net
Amount |
| ||||||||||||||
Trade names and trademarks
|
| | | $ | 135,100 | | | | | $ | 1,047 | | | | | $ | 10,258 | | | | | $ | 125,889 | | |
Patented technology
|
| | | | 16,126 | | | | | | 155 | | | | | | 3,452 | | | | | | 12,829 | | |
Pool designs
|
| | | | 5,728 | | | | | | 629 | | | | | | 648 | | | | | | 5,709 | | |
Franchise relationships
|
| | | | 1,187 | | | | | | 130 | | | | | | 470 | | | | | | 847 | | |
Dealer relationships
|
| | | | 160,376 | | | | | | 52 | | | | | | 17,697 | | | | | | 142,731 | | |
Non-competition agreements
|
| | | | 2,476 | | | | | | — | | | | | | 1,008 | | | | | | 1,468 | | |
| | | | $ | 320,993 | | | | | $ | 2,013 | | | | | $ | 33,533 | | | | | $ | 289,473 | | |
Year Ended
|
| |
Estimated Future
Amortization Expense |
| |||
2021
|
| | | $ | 21,959 | | |
2022
|
| | | | 21,959 | | |
2023
|
| | | | 21,768 | | |
2024
|
| | | | 20,948 | | |
2025
|
| | | | 20,791 | | |
Thereafter
|
| | | | 182,048 | | |
| | | | $ | 289,473 | | |
| | |
December 31,
|
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Raw materials
|
| | | $ | 19,035 | | | | | $ | 37,010 | | |
Finished goods
|
| | | | 16,576 | | | | | | 27,808 | | |
| | | | $ | 35,611 | | | | | $ | 64,818 | | |
| | |
December 31,
|
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Land
|
| | | $ | 1,613 | | | | | $ | 1,613 | | |
Building and improvements
|
| | | | 5,495 | | | | | | 5,898 | | |
Machinery and equipment
|
| | | | 17,661 | | | | | | 21,478 | | |
Furniture and fixtures
|
| | | | 511 | | | | | | 1,406 | | |
Computer equipment and software
|
| | | | 5,090 | | | | | | 6,633 | | |
Molds and dyes
|
| | | | 5,602 | | | | | | 9,051 | | |
Leasehold improvements
|
| | | | 2,611 | | | | | | 3,573 | | |
Vehicles
|
| | | | 2,338 | | | | | | 3,061 | | |
Construction in progress
|
| | | | 3,046 | | | | | | 8,525 | | |
| | | | | 43,967 | | | | | | 61,238 | | |
Less: Accumulated depreciation
|
| | | | (6,122) | | | | | | (13,881) | | |
| | | | $ | 37,845 | | | | | $ | 47,357 | | |
| | |
December 31,
|
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Term loan
|
| | | $ | 232,191 | | | | | $ | 228,147 | | |
Less: Unamortized discount and debt issuance costs
|
| | | | (8,968) | | | | | | (6,651) | | |
Total debt
|
| | | | 223,223 | | | | | | 221,496 | | |
Less: Current portion of long-term debt
|
| | | | (6,891) | | | | | | (13,042) | | |
Total long-term debt
|
| | | $ | 216,332 | | | | | $ | 208,454 | | |
Leverage Ratio
|
| |
Mandatory
Prepayment Percentage |
| |||
> 3.50:1.00
|
| | | | 90% | | |
> 3.00:1.00 and ≤ 3.50:1.00
|
| | | | 75% | | |
> 2.50:1.00 and ≤ 3.00:1.00
|
| | | | 50% | | |
> 2.00:1.00 and ≤ 2.50:1.00
|
| | | | 25% | | |
≤ 2.00:1.00
|
| | | | 0% | | |
| | |
Year Ended
December 31, |
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Cash interest expense
|
| | | $ | 19,488 | | | | | $ | 15,625 | | |
Amortization of debt issuance costs
|
| | | | 2,968 | | | | | | 2,179 | | |
Amortization of original issue discount
|
| | | | 183 | | | | | | 138 | | |
Interest rate swap
|
| | | | — | | | | | | 334 | | |
Gain on extinguishment of debt
|
| | | | — | | | | | | (25) | | |
Total interest expense
|
| | | $ | 22,639 | | | | | $ | 18,251 | | |
Year Ended
|
| |
Term Loan
Facility |
| |||
2021
|
| | | $ | 13,042 | | |
2022
|
| | | | 13,042 | | |
2023
|
| | | | 13,042 | | |
2024
|
| | | | 13,042 | | |
2025
|
| | | | 175,979 | | |
| | | | $ | 228,147 | | |
| | |
December 31,
|
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Accrued sales rebates
|
| | | $ | 6,520 | | | | | $ | 15,511 | | |
Accrued product warranties
|
| | | | 2,663 | | | | | | 2,705 | | |
Accrued incentives
|
| | | | 2,448 | | | | | | 11,244 | | |
Accrued vacation
|
| | | | 2,425 | | | | | | 3,805 | | |
Accrued payroll
|
| | | | 2,334 | | | | | | 6,098 | | |
Deferred offering costs
|
| | | | — | | | | | | 1,040 | | |
Accrued third-party services
|
| | | | 1,556 | | | | | | 2,172 | | |
Other
|
| | | | 4,287 | | | | | | 8,031 | | |
Total accrued expenses and other current liabilities
|
| | | $ | 22,233 | | | | | $ | 50,606 | | |
| | |
Year Ended
December 31, |
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Balance at the beginning of the year
|
| | | $ | 1,977 | | | | | $ | 2,846 | | |
Accruals for warranties issued
|
| | | | 3,729 | | | | | | 3,966 | | |
Warranty liabilities assumed in GLI Acquisition
|
| | | | — | | | | | | 118 | | |
Less: Settlements made (in cash or in kind)
|
| | | | (2,860) | | | | | | (4,048) | | |
Balance at the end of the year
|
| | | | 2,846 | | | | | | 2,882 | | |
Less: Current portion of accrued warranty costs
|
| | | | (2,663) | | | | | | (2,705) | | |
Accrued warranty costs — less current portion
|
| | | $ | 183 | | | | | $ | 177 | | |
| | |
Year Ended
December 31, |
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
In-ground Swimming Pools
|
| | | $ | 175,033 | | | | | $ | 237,410 | | |
Covers
|
| | | | 70,984 | | | | | | 84,524 | | |
Liners
|
| | | | 71,958 | | | | | | 81,455 | | |
| | | | $ | 317,975 | | | | | $ | 403,389 | | |
| | |
Year Ended
December 31, |
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Balance at the beginning of the year
|
| | | $ | 1,535 | | | | | $ | 1,322 | | |
Bad debt expense
|
| | | | 253 | | | | | | 358 | | |
Write-offs
|
| | | | (466) | | | | | | (242) | | |
Balance at the end of the year
|
| | | $ | 1,322 | | | | | $ | 1,438 | | |
| | |
Year Ended
December 31, |
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Income (loss) before income taxes: | | | | | | | | | | | | | |
Domestic
|
| | | $ | 9,939 | | | | | $ | 19,609 | | |
Foreign
|
| | | | (7,153) | | | | | | 3,150 | | |
Total
|
| | | $ | 2,786 | | | | | $ | 22,759 | | |
| | |
Year Ended
December 31, |
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Current income tax (benefit) expense: | | | | | | | | | | | | | |
Domestic
|
| | | $ | 5,424 | | | | | $ | 10,342 | | |
Foreign
|
| | | | 131 | | | | | | 1,104 | | |
Total current tax (benefit) expense
|
| | | | 5,555 | | | | | | 11,446 | | |
Deferred income tax (benefit) expense: | | | | | | | | | | | | | |
Domestic
|
| | | | (10,020) | | | | | | (4,532) | | |
Foreign
|
| | | | (206) | | | | | | (138) | | |
Total deferred tax (benefit) expense
|
| | | | (10,226) | | | | | | (4,670) | | |
Total income tax (benefit) expense
|
| | | $ | (4,671) | | | | | $ | 6,776 | | |
| | |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2020 |
| ||||||
Federal statutory tax rate
|
| | | | 21.0% | | | | | | 21.0% | | |
Foreign taxes less than U.S. statutory rate
|
| | | | 1.1% | | | | | | 1.2% | | |
State income tax, net of federal benefit
|
| | | | (67.2)% | | | | | | 1.4% | | |
Uncertain tax positions
|
| | | | 348.2% | | | | | | 0.8% | | |
Change in valuation allowance
|
| | | | (5.9)% | | | | | | (1.1)% | | |
GILTI
|
| | | | 21.1% | | | | | | 1.5% | | |
Meals and entertainment
|
| | | | 6.8% | | | | | | 0.5% | | |
Foreign expenses not deductible for tax
|
| | | | 56.1% | | | | | | 1.7% | | |
Transaction costs not deductible for tax
|
| | | | 13.3% | | | | | | 2.0% | | |
Canadian restructuring
|
| | | | (562.4)% | | | | | | — | | |
Canadian Branch Income
|
| | | | 0.0% | | | | | | 1.8% | | |
Other expenses not deductible for tax
|
| | | | (0.1)% | | | | | | (1.0)% | | |
| | | | | (168.0)% | | | | | | 29.8% | | |
| | |
Year Ended
December 31, |
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Balance at January 1
|
| | | $ | (12,300) | | | | | $ | (12,463) | | |
Additions
|
| | | | (163) | | | | | | (241) | | |
Balance at December 31
|
| | | $ | (12,463) | | | | | $ | (12,704) | | |
| | |
December 31,
|
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforwards
|
| | | $ | 12,110 | | | | | $ | 12,099 | | |
Inventories, net
|
| | | | 680 | | | | | | 473 | | |
Warranty reserve
|
| | | | 649 | | | | | | 789 | | |
Trade receivables
|
| | | | 477 | | | | | | 360 | | |
Profits interest units
|
| | | | 389 | | | | | | 760 | | |
Section 163(j)
|
| | | | 289 | | | | | | — | | |
Deferred taxes in equity
|
| | | | 257 | | | | | | 257 | | |
Accrued expenses
|
| | | | 224 | | | | | | 498 | | |
Transaction costs
|
| | | | 107 | | | | | | 607 | | |
Canadian tax credits
|
| | | | 86 | | | | | | 255 | | |
Other
|
| | | | 64 | | | | | | 216 | | |
Gross deferred tax assets
|
| | | | 15,332 | | | | | | 16,314 | | |
Valuation allowance
|
| | | | (12,463) | | | | | | (12,704) | | |
Total deferred tax asset
|
| | | | 2,869 | | | | | | 3,610 | | |
Less: Foreign deferred tax benefit
|
| | | | (206) | | | | | | (345) | | |
Total domestic deferred tax asset
|
| | | | 2,663 | | | | | | 3,265 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Intangible assets
|
| | | | (57,221) | | | | | | (53,874) | | |
Property and equipment, net
|
| | | | (4,677) | | | | | | (4,120) | | |
Prepaid expenses
|
| | | | (773) | | | | | | (464) | | |
Total deferred tax liabilities
|
| | | | (62,671) | | | | | | (58,458) | | |
Net deferred tax liabilities
|
| | | $ | (60,008) | | | | | $ | (55,193) | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Balance at the beginning of the year
|
| | | $ | — | | | | | $ | 9,681 | | |
Additions for tax positions taken during prior years
|
| | | | — | | | | | | 181 | | |
Additions for tax positions taken during the current year
|
| | | | 9,881 | | | | | | — | | |
Balance at the end of the year
|
| | | $ | 9,681 | | | | | $ | 9,862 | | |
| | |
Year Ended
|
| |||
2021
|
| | | $ | 6,484 | | |
2022
|
| | | | 5,971 | | |
2023
|
| | | | 4,455 | | |
2024
|
| | | | 3,834 | | |
2025
|
| | | | 3,491 | | |
Thereafter
|
| | | | 5,094 | | |
| | | | $ | 29,329 | | |
| | |
Number of PIUs
|
| |
Weighted-Average
Grant-Date Fair Value |
| ||||||
Balance at January 1, 2019
|
| | | | 20,890,124 | | | | | $ | 0.41 | | |
Granted
|
| | | | 3,692,699 | | | | | $ | 0.38 | | |
Forfeited
|
| | | | (2,848,653) | | | | | $ | 0.41 | | |
Balance at December 31, 2019
|
| | | | 21,734,170 | | | | | | | | |
Granted
|
| | | | 7,843,107 | | | | | $ | 0.60 | | |
Forfeited
|
| | | | (2,152,315) | | | | | $ | 0.35 | | |
Balance at December 31, 2020
|
| | | | 27,424,962 | | | | | $ | 0.43 | | |
| | |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2020 |
| ||||||
Expected volatility
|
| | | | 49.00% | | | | | | 55.00% | | |
Risk-free interest rate
|
| | | | 1.90% | | | | | | 0.20% | | |
Expected term (in years)
|
| | | | 4.6 | | | | | | 3.2 | | |
Expected dividend yield
|
| | | | —% | | | | | | —% | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Numerator: | | | | | | | | | | | | | |
Net income attributable to common stockholders
|
| | | $ | 7,457 | | | | | $ | 15,983 | | |
Denominator: | | | | | | | | | | | | | |
Weighted-average common shares outstanding, basic and diluted
|
| | | | 109,673,709 | | | | | | 116,469,884 | | |
Net income per share attributable to common stockholders, basic
and diluted |
| | | $ | 0.07 | | | | | $ | 0.14 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Net sales | | | | | | | | | | | | | |
United States
|
| | | $ | 257,786 | | | | | $ | 325,716 | | |
Canada
|
| | | | 43,157 | | | | | | 50,499 | | |
Australia
|
| | | | 12,126 | | | | | | 20,181 | | |
New Zealand
|
| | | | 2,432 | | | | | | 3,984 | | |
Other
|
| | | | 2,474 | | | | | | 3,009 | | |
Total
|
| | | $ | 317,975 | | | | | $ | 403,389 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Long-lived assets | | | | | | | | | | | | | |
United States
|
| | | $ | 30,433 | | | | | $ | 37,680 | | |
Canada
|
| | | | 2,279 | | | | | | 3,050 | | |
Australia
|
| | | | 4,094 | | | | | | 4,979 | | |
New Zealand
|
| | | | 1,039 | | | | | | 1,648 | | |
Total
|
| | | $ | 37,845 | | | | | $ | 47,357 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Assets | | | | | | | | | | | | | |
Investment in subsidiary
|
| | | $ | 193,795 | | | | | $ | 281,609 | | |
Total assets
|
| | | $ | 193,795 | | | | | $ | 281,609 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Related party note payable
|
| | | $ | — | | | | | $ | 64,938 | | |
Total liabilities
|
| | | | — | | | | | | 64,938 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 500,000,000 shares authorized at December 31, 2019 and 2020; 109,673,709 shares issued and outstanding as of December 31, 2019 and 2020
|
| | | | 11 | | | | | | 11 | | |
Additional paid-in capital
|
| | | | 196,473 | | | | | | 200,541 | | |
Retained earnings (accumulated deficit)
|
| | | | (2,218) | | | | | | 13,765 | | |
Accumulated other comprehensive income (loss)
|
| | | | (471) | | | | | | 2,354 | | |
Total stockholders’ equity
|
| | | | 193,795 | | | | | | 216,671 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 193,795 | | | | | $ | 281,609 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Equity in net income of subsidiary
|
| | | $ | 7,457 | | | | | $ | 15,983 | | |
Net income attributable to common stockholders
|
| | | $ | 7,457 | | | | | $ | 15,983 | | |
Net income per share | | | | | | | | | | | | | |
Net income per share attributable to common stockholders – basic
and diluted |
| | | $ | 0.07 | | | | | $ | 0.14 | | |
Weighted-average common shares outstanding – basic and diluted
|
| | | | 109,673,709 | | | | | | 116,469,884 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Net income
|
| | | $ | 7,457 | | | | | $ | 15,983 | | |
Equity in other comprehensive income (loss) of subsidiary
|
| | | | (670) | | | | | | 2,825 | | |
Comprehensive income
|
| | | $ | 6,787 | | | | | $ | 18,808 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 7,457 | | | | | $ | 15,983 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Equity in net income of subsidiary
|
| | | | (7,457) | | | | | | (15,983) | | |
Net cash provided by operating activities
|
| | | | — | | | | | | — | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Investment in subsidiary
|
| | | | — | | | | | | (64,938) | | |
Net cash used in investing activities
|
| | | | — | | | | | | (64,938) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from issuance of common stock
|
| | | | — | | | | | | 64,938 | | |
Net cash provided by financing activities
|
| | | | — | | | | | | 64,938 | | |
Net increase in cash
|
| | | | — | | | | | | — | | |
Cash at beginning of period
|
| | | | — | | | | | | — | | |
Cash at end of period
|
| | | $ | — | | | | | $ | — | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | — | | | | | $ | — | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Related party note entered into for purchase of treasury stock
|
| | | $ | — | | | | | $ | 64,938 | | |
| | | | | F-48 | | | |
| | | | | F-49 | | | |
| | | | | F-50 | | | |
| | | | | F-51 | | | |
| | | | | F-52 | | | |
| | | | | F-54 | | |
| | |
April 3,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
Unaudited
|
| |||||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 19,945 | | | | | $ | 59,310 | | |
Trade receivables, net
|
| | | | 92,960 | | | | | | 32,758 | | |
Inventories, net
|
| | | | 74,131 | | | | | | 64,818 | | |
Income tax receivable
|
| | | | 2,107 | | | | | | 4,377 | | |
Prepaid expenses and other current assets
|
| | | | 5,685 | | | | | | 6,063 | | |
Total current assets
|
| | | | 194,828 | | | | | | 167,326 | | |
Property and equipment, net
|
| | | | 50,605 | | | | | | 47,357 | | |
Equity method investment
|
| | | | 25,460 | | | | | | 25,384 | | |
Deferred tax assets
|
| | | | 345 | | | | | | 345 | | |
Deferred offering costs
|
| | | | 4,684 | | | | | | 1,041 | | |
Goodwill
|
| | | | 115,610 | | | | | | 115,750 | | |
Intangible assets, net
|
| | | | 283,617 | | | | | | 289,473 | | |
Total assets
|
| | | $ | 675,149 | | | | | $ | 646,676 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 39,977 | | | | | $ | 29,789 | | |
Accounts payable — related party
|
| | | | 1,000 | | | | | | 500 | | |
Current maturities of long-term debt
|
| | | | 23,047 | | | | | | 13,042 | | |
Accrued expenses and other current liabilities
|
| | | | 49,679 | | | | | | 50,606 | | |
Total current liabilities
|
| | | | 113,703 | | | | | | 93,937 | | |
Long-term debt, net of discount and current portion
|
| | | | 382,917 | | | | | | 208,454 | | |
Related party note payable
|
| | | | — | | | | | | 64,938 | | |
Deferred income tax liabilities, net
|
| | | | 55,472 | | | | | | 55,193 | | |
Liability for uncertain tax positions
|
| | | | 5,562 | | | | | | 5,540 | | |
Other long-term liabilities
|
| | | | 2,061 | | | | | | 1,943 | | |
Total liabilities
|
| | | | 559,715 | | | | | | 430,005 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 500,000,000 shares authorized
as of April 3, 2021 and December 31, 2020; 109,673,709 shares issued and outstanding as of April 3, 2021 and December 31, 2020 |
| | | | 11 | | | | | | 11 | | |
Additional paid-in capital
|
| | | | 91,943 | | | | | | 200,541 | | |
Retained earnings
|
| | | | 22,298 | | | | | | 13,765 | | |
Accumulated other comprehensive income
|
| | | | 1,182 | | | | | | 2,354 | | |
Total stockholders’ equity
|
| | | | 115,434 | | | | | | 216,671 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 675,149 | | | | | $ | 646,676 | | |
| | |
Fiscal Quarter Ended
|
| |||||||||
| | |
April 3, 2021
|
| |
March 28, 2020
|
| ||||||
Net sales
|
| | | $ | 148,746 | | | | | $ | 51,134 | | |
Cost of sales
|
| | | | 96,306 | | | | | | 41,035 | | |
Gross profit
|
| | | | 52,440 | | | | | | 10,099 | | |
Selling, general and administrative expense
|
| | | | 27,172 | | | | | | 15,432 | | |
Amortization
|
| | | | 5,595 | | | | | | 4,063 | | |
Income (loss) from operations
|
| | | | 19,673 | | | | | | (9,396) | | |
Other expense (income): | | | | | | | | | | | | | |
Interest expense
|
| | | | 9,056 | | | | | | 5,333 | | |
Other expense (income), net
|
| | | | (555) | | | | | | 3,741 | | |
Total other expense (income), net
|
| | | | 8,501 | | | | | | 9,074 | | |
Earnings from equity method investment
|
| | | | 244 | | | | | | — | | |
Income (loss) before income taxes
|
| | | | 11,416 | | | | | | (18,470) | | |
Income tax (benefit) expense
|
| | | | 2,883 | | | | | | (3,019) | | |
Net income (loss)
|
| | | $ | 8,533 | | | | | $ | (15,451) | | |
Net income (loss) per share attributable to common stockholders: | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | 0.08 | | | | | $ | (0.14) | | |
Weighted-average common shares outstanding — basic and diluted | | | | | | | | | | | | | |
Basic and diluted
|
| | | | 109,673,709 | | | | | | 109,673,709 | | |
| | |
Fiscal Quarter Ended
|
| |||||||||
| | |
April 3,
2021 |
| |
March 28,
2020 |
| ||||||
Net income (loss)
|
| | | $ | 8,533 | | | | | $ | (15,451) | | |
Other comprehensive loss, net of tax: | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | (407) | | | | | | (1,938) | | |
Total other comprehensive loss, net of tax
|
| | | | (407) | | | | | | (1,938) | | |
Comprehensive income (loss)
|
| | | $ | 8,126 | | | | | $ | (17,389) | | |
| | |
Shares
|
| |
Amount
|
| |
Additional
Paid-in Capital |
| |
Retained
Earnings (Accumulated Deficit) |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||
Balances at December 31, 2019
|
| | | | 109,673,709 | | | | | $ | 11 | | | | | $ | 196,473 | | | | | $ | (2,218) | | | | | $ | (471) | | | | | $ | 193,795 | | |
Net loss
|
| | | | | | | | | | | | | | | | | | | | | | (15,451) | | | | | | | | | | | | (15,451) | | |
Foreign currency translation
adjustments |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,938) | | | | | | (1,938) | | |
Distributions to parent
|
| | | | | | | | | | | | | | | | (400) | | | | | | | | | | | | | | | | | | (400) | | |
Stock-based compensation expense
|
| | | | | | | | | | | | | | | | 224 | | | | | | | | | | | | | | | | | | 224 | | |
Balances at March 28,
2020 |
| | | | 109,673,709 | | | | | $ | 11 | | | | | $ | 196,297 | | | | | $ | (17,669) | | | | | $ | (2,409) | | | | | $ | 176,230 | | |
Balances at December 31, 2020
|
| | | | 109,673,709 | | | | | $ | 11 | | | | | $ | 200,541 | | | | | $ | 13,765 | | | | | $ | 2,354 | | | | | $ | 216,671 | | |
Net income
|
| | | | | | | | | | | | | | | | | | | | | | 8,533 | | | | | | | | | | | | 8,533 | | |
Foreign currency translation
adjustments |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,172) | | | | | | (1,172) | | |
Dividend ($1.00 per share)
|
| | | | | | | | | | | | | | | | (110,033) | | | | | | | | | | | | | | | | | | (110,033) | | |
Distributions to parent
|
| | | | | | | | | | | | | | | | (29) | | | | | | | | | | | | | | | | | | (29) | | |
Stock-based compensation expense
|
| | | | | | | | | | | | | | | | 1,464 | | | | | | | | | | | | | | | | | | 1,464 | | |
Balances at April 3, 2021
|
| | | | 109,673,709 | | | | | $ | 11 | | | | | $ | 91,943 | | | | | $ | 22,298 | | | | | $ | 1,182 | | | | | $ | 115,434 | | |
| | |
Fiscal Quarter Ended
|
| |||||||||
| | |
April 3,
2021 |
| |
March 28,
2020 |
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 8,533 | | | | | $ | (15,451) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 7,900 | | | | | | 5,755 | | |
Amortization of deferred financing costs and debt discount
|
| | | | 2,804 | | | | | | 912 | | |
Stock-based compensation expense
|
| | | | 1,464 | | | | | | 224 | | |
Other non-cash
|
| | | | 1,433 | | | | | | 739 | | |
Earnings from equity method investment
|
| | | | (244) | | | | | | — | | |
Distribution received from equity method investment
|
| | | | 168 | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Trade receivables
|
| | | | (60,963) | | | | | | (13,322) | | |
Inventories
|
| | | | (9,238) | | | | | | (10,914) | | |
Prepaid expenses and other current assets
|
| | | | 119 | | | | | | 784 | | |
Income tax receivable
|
| | | | (2,107) | | | | | | (2,866) | | |
Accounts payable
|
| | | | 8,642 | | | | | | 9,468 | | |
Accrued expenses and other current liabilities
|
| | | | (4,074) | | | | | | (1,652) | | |
Other long-term liabilities
|
| | | | 4,545 | | | | | | 35 | | |
Net cash used in operating activities
|
| | | | (41,018) | | | | | | (26,288) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (4,608) | | | | | | (2,790) | | |
Proceeds from the sale of property and equipment
|
| | | | — | | | | | | 1 | | |
Net cash used in investing activities
|
| | | | (4,608) | | | | | | (2,789) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from borrowings on the term loan
|
| | | | 172,813 | | | | | | — | | |
Payments on term loan borrowings
|
| | | | (5,762) | | | | | | — | | |
Proceeds from borrowings on the revolving credit facility
|
| | | | 16,000 | | | | | | 5,000 | | |
Deferred financing fees paid
|
| | | | (1,250) | | | | | | — | | |
Distributions to parent
|
| | | | (29) | | | | | | (400) | | |
Payment of related party note payable
|
| | | | (64,938) | | | | | | — | | |
Dividend to parent
|
| | | | (110,033) | | | | | | — | | |
Payments of initial public offering costs
|
| | | | (747) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 6,054 | | | | | | 4,600 | | |
Effect of exchange rate changes on cash
|
| | | | 207 | | | | | | (1,694) | | |
Net decrease in cash
|
| | | | (39,365) | | | | | | (26,171) | | |
Cash at beginning of period
|
| | | | 59,310 | | | | | | 56,655 | | |
Cash at end of period
|
| | | $ | 19,945 | | | | | $ | 30,484 | | |
| | |
Fiscal Quarter Ended
|
| |||||||||
| | |
April 3,
2021 |
| |
March 28,
2020 |
| ||||||
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 5,892 | | | | | $ | 4,420 | | |
Income taxes paid, net
|
| | | $ | 502 | | | | | $ | 63 | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Purchases of property and equipment included in accounts payable and accrued expenses
|
| | | $ | 1,144 | | | | | $ | 269 | | |
Capitalized internal-use software included in accounts payable — related party
|
| | | $ | 500 | | | | | $ | — | | |
Deferred offering costs included in accrued expenses
|
| | | $ | 2,896 | | | | | $ | — | | |
(in thousands)
|
| |
October 22, 2020
|
| |||
Total consideration
|
| | | $ | 79,743 | | |
Allocation of purchase price: | | | | | | | |
Cash
|
| | | | 5,007 | | |
Trade receivables
|
| | | | 10,639 | | |
Inventories
|
| | | | 11,854 | | |
Prepaid expenses and other current assets
|
| | | | 3,949 | | |
Property and equipment
|
| | | | 1,402 | | |
Intangible assets
|
| | | | 46,700 | | |
Total assets acquired
|
| | | | 79,551 | | |
Accounts payable
|
| | | | 3,536 | | |
Accrued expenses and other current liabilities
|
| | | | 8,853 | | |
Other long-term liabilities
|
| | | | 524 | | |
Total liabilities assumed
|
| | | | 12,913 | | |
Total fair value of net assets acquired, excluding goodwill:
|
| | | | 66,638 | | |
Goodwill
|
| | | $ | 13,105 | | |
Definite-lived intangible assets:
|
| |
Fair Value
(in thousands) |
| |
Amortization Period
(in years) |
| ||||||
Trade names
|
| | | $ | 9,500 | | | | | | 9 | | |
Dealer relationships
|
| | | | 37,200 | | | | | | 8 | | |
| | | | $ | 46,700 | | | | | | | | |
(in thousands)
|
| |
Fiscal Quarter
Ended March 28,2020 |
| |||
Net sales
|
| | | $ | 58,920 | | |
Net loss
|
| | | $ | (20,828) | | |
| | |
Fiscal Quarter
Ended March 28, 2020 |
| |||
EBITDA risk adjustment
|
| | | | 17.30% | | |
Annual EBITDA volatility
|
| | | | 55.00% | | |
Risk-free rate of return
|
| | | | 2.10% | | |
| | |
April 3, 2021
|
| |
December 31, 2020
|
| ||||||||||||||||||
| | |
Carrying
Value |
| |
Estimated
Fair Value |
| |
Carrying
Value |
| |
Estimated
Fair Value |
| ||||||||||||
Term loan
|
| | | $ | 389,964 | | | | | $ | 390,638 | | | | | $ | 221,496 | | | | | $ | 221,081 | | |
| | |
April 3, 2021
|
| |||||||||||||||||||||
| | |
Gross
Carrying Amount |
| |
Foreign
Currency Translation |
| |
Accumulated
Amortization |
| |
Net
Amount |
| ||||||||||||
Trade names and trademarks
|
| | | $ | 135,100 | | | | | $ | 912 | | | | | $ | 11,808 | | | | | $ | 124,204 | | |
Patented technology
|
| | | | 16,126 | | | | | | 134 | | | | | | 3,898 | | | | | | 12,362 | | |
Pool designs
|
| | | | 5,728 | | | | | | 547 | | | | | | 752 | | | | | | 5,523 | | |
Franchise relationships
|
| | | | 1,187 | | | | | | 113 | | | | | | 546 | | | | | | 754 | | |
Dealer relationships
|
| | | | 160,376 | | | | | | 45 | | | | | | 20,989 | | | | | | 139,432 | | |
Non-competition agreements
|
| | | | 2,476 | | | | | | — | | | | | | 1,134 | | | | | | 1,342 | | |
| | | | $ | 320,993 | | | | | $ | 1,751 | | | | | $ | 39,127 | | | | | $ | 283,617 | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||
| | |
Gross
Carrying Amount |
| |
Foreign
Currency Translation |
| |
Accumulated
Amortization |
| |
Net
Amount |
| ||||||||||||
Trade names and trademarks
|
| | | $ | 135,100 | | | | | $ | 1,047 | | | | | $ | 10,258 | | | | | $ | 125,889 | | |
Patented technology
|
| | | | 16,126 | | | | | | 155 | | | | | | 3,452 | | | | | | 12,829 | | |
Pool designs
|
| | | | 5,728 | | | | | | 629 | | | | | | 648 | | | | | | 5,709 | | |
Franchise relationships
|
| | | | 1,187 | | | | | | 130 | | | | | | 470 | | | | | | 847 | | |
Dealer relationships
|
| | | | 160,376 | | | | | | 52 | | | | | | 17,697 | | | | | | 142,731 | | |
Non-competition agreements
|
| | | | 2,476 | | | | | | — | | | | | | 1,008 | | | | | | 1,468 | | |
| | | | $ | 320,993 | | | | | $ | 2,013 | | | | | $ | 33,533 | | | | | $ | 289,473 | | |
Year Ended
|
| |
Estimated Future
Amortization Expense |
| |||
Remainder of fiscal 2021
|
| | | $ | 16,364 | | |
2022
|
| | | | 21,959 | | |
2023
|
| | | | 21,768 | | |
2024
|
| | | | 20,948 | | |
2025
|
| | | | 20,791 | | |
Thereafter
|
| | | | 181,787 | | |
| | | | $ | 283,617 | | |
| | |
April 3, 2021
|
| |
December 31, 2020
|
| ||||||
Raw materials
|
| | | $ | 44,472 | | | | | $ | 37,010 | | |
Finished goods
|
| | | | 29,659 | | | | | | 27,808 | | |
| | | | $ | 74,131 | | | | | $ | 64,818 | | |
| | |
April 3,2021
|
| |
December 31, 2020
|
| ||||||
Term loan
|
| | | $ | 397,385 | | | | | $ | 228,147 | | |
Revolver
|
| | | | 16,000 | | | | | | — | | |
Less: Unamortized discount and debt issuance costs
|
| | | | (7,421) | | | | | | (6,651) | | |
Total debt
|
| | | | 405,964 | | | | | | 221,496 | | |
Less: Current portion of long-term debt
|
| | | | (23,047) | | | | | | (13,042) | | |
Total long-term debt
|
| | | $ | 382,917 | | | | | $ | 208,454 | | |
| | |
April 3, 2021
|
| |
March 28, 2020
|
| ||||||
Interest expense
|
| | | $ | 5,892 | | | | | $ | 4,420 | | |
Amortization of debt issuance costs
|
| | | | 2,073 | | | | | | 859 | | |
Amortization of original issue discount
|
| | | | 732 | | | | | | 54 | | |
Interest rate swap
|
| | | | 359 | | | | | | — | | |
Total interest expense
|
| | | $ | 9,056 | | | | | $ | 5,333 | | |
Year Ended
|
| |
Term Loan Facility
|
| |||
Remainder of fiscal 2021
|
| | | $ | 17,284 | | |
2022
|
| | | | 23,047 | | |
2023
|
| | | | 23,047 | | |
2024
|
| | | | 23,047 | | |
2025
|
| | | | 310,960 | | |
| | | | $ | 397,385 | | |
| | |
Fiscal Quarter Ended
April 3, 2021 |
| |
Year Ended
December 31, 2020 |
| ||||||
Balance at the beginning of the period
|
| | | $ | 2,882 | | | | | $ | 2,846 | | |
Accruals for warranties issued
|
| | | | 1,706 | | | | | | 3,966 | | |
Warranty liabilities assumed in GLI Acquisition
|
| | | | — | | | | | | 118 | | |
Less: Settlements made (in cash or in kind)
|
| | | | (1,077) | | | | | | (4,048) | | |
Balance at the end of the period
|
| | | | 3,511 | | | | | | 2,882 | | |
Less: Current portion of accrued warranty costs
|
| | | | (3,313) | | | | | | (2,705) | | |
Accrued warranty costs — less current portion
|
| | | $ | 198 | | | | | $ | 177 | | |
| | |
Fiscal Quarter Ended,
|
| |||||||||
| | |
April 3, 2021
|
| |
March 28, 2020
|
| ||||||
In-ground Swimming Pools
|
| | | $ | 93,643 | | | | | $ | 29,458 | | |
Covers
|
| | | | 24,006 | | | | | | 11,011 | | |
Liners
|
| | | | 31,097 | | | | | | 10,665 | | |
| | | | $ | 148,746 | | | | | $ | 51,134 | | |
| | |
Fiscal Quarter Ended,
|
| |||||||||
| | |
April 3, 2021
|
| |
March 28, 2020
|
| ||||||
Numerator: | | | | | | | | | | | | | |
Net income (loss) attributable to common stockholders
|
| | | $ | 8,533 | | | | | $ | (15,451) | | |
Denominator: | | | | | | | | | | | | | |
Weighted-average common shares outstanding, basic and diluted
|
| | | | 109,673,709 | | | | | | 109,673,709 | | |
Net income (loss) per share attributable to common stockholders, basic and
diluted |
| | | $ | 0.08 | | | | | $ | (0.14) | | |
| | |
Fiscal Quarter Ended
|
| |||||||||
| | |
April 3, 2021
|
| |
March 28, 2020
|
| ||||||
Net sales | | | | | | | | | | | | | |
United States
|
| | | $ | 119,070 | | | | | $ | 39,006 | | |
Canada
|
| | | | 21,115 | | | | | | 5,942 | | |
Australia
|
| | | | 5,750 | | | | | | 4,117 | | |
New Zealand
|
| | | | 1,756 | | | | | | 647 | | |
Other
|
| | | | 1,055 | | | | | | 1,422 | | |
Total
|
| | | $ | 148,746 | | | | | $ | 51,134 | | |
| | |
April 3,
2021 |
| |
December
31, 2020 |
| ||||||
Long-lived assets | | | | | | | | | | | | | |
United States
|
| | | $ | 41,458 | | | | | $ | 37,680 | | |
Canada
|
| | | | 2,899 | | | | | | 3,050 | | |
Australia
|
| | | | 4,582 | | | | | | 4,979 | | |
New Zealand
|
| | | | 1,666 | | | | | | 1,648 | | |
Total
|
| | | $ | 50,605 | | | | | $ | 47,357 | | |
|
SEC registration fee
|
| | | $ | | | |
|
FINRA filing fee
|
| | | | | | |
|
Printing expenses
|
| | | | | | |
|
Legal fees and expenses
|
| | | | | | |
|
Accounting fees and expenses
|
| | | | | | |
|
Blue Sky fees and expenses
|
| | | | | | |
|
Transfer agent and registrar fees
|
| | | | | | |
|
Miscellaneous
|
| | | | | | |
|
Total
|
| | | $ | | | |
Exhibit
Number |
| |
Exhibit Description
|
|
10.9† | | | | |
10.10† | | | | |
10.11† | | | | |
10.12† | | | | |
10.13† | | | | |
10.14† | | | | |
10.15† | | | | |
10.16† | | | | |
10.17† | | | | |
10.18 | | | Form of Common Stock Purchase Agreement | |
16.1 | | | Letter regarding Change in Certifying Accountant (incorporated by reference to Exhibit 16.1 to Latham Group, Inc.’s Registration Statement on Form S-1 filed with the Commission on April 15, 2021 (File No. 333-254930)) | |
21.1 | | | Subsidiaries of the registrant (incorporated by reference to Exhibit 21.1 to Latham Group, Inc.’s Registration Statement on Form S-1 filed with the Commission on April 15, 2021 (File No. 333-254930)) | |
23.1 | | | Consent of RSM US LLP, independent registered public accounting firm | |
23.2 | | | Consent of Deloitte & Touche LLP, independent registered public accounting firm | |
23.3 | | | Consent of Paul, Weiss, Rifkind, Wharton & Garrison LLP (included in Exhibit 5.1) | |
24.1 | | | |
| | | | Latham Group, Inc. | | |||
| | | |
By:
Name: Scott M. Rajeski
Title: Chief Executive Officer and President |
|
|
Signature
|
| |
Title
|
| |
Date
|
|
|
Scott M. Rajeski
|
| |
Chief Executive Officer and President; Director
(Principal Executive Officer) |
| |
, 2021
|
|
|
James Mark Borseth
|
| |
Chief Financial Officer
(Principal Financial Officer) |
| |
, 2021
|
|
|
Suraj Kunchala
|
| |
Vice President and Controller
(Principal Accounting Officer) |
| |
, 2021
|
|
|
William M. Pruellage
|
| |
Director
|
| |
, 2021
|
|
|
Andrew D. Singer
|
| |
Director
|
| |
, 2021
|
|
|
Signature
|
| |
Title
|
| |
Date
|
|
|
Christopher P. O’Brien
|
| |
Director
|
| |
, 2021
|
|
|
Mark P. Laven
|
| |
Director
|
| |
, 2021
|
|
|
James E. Cline
|
| |
Director
|
| |
, 2021
|
|
|
Robert D. Evans
|
| |
Director
|
| |
, 2021
|
|
|
Alexander L. Hawkinson
|
| |
Director
|
| |
, 2021
|
|
|
Suzan Morno-Wade
|
| |
Director
|
| |
, 2021
|
|