QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) | |
(Address of principal executive offices) |
(Zip Code) |
Title of Each Class: |
Trading Symbol(s) |
Name of Each Exchange on Which Registered: | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
Page |
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3 |
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Item 1. |
3 |
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Item 2. |
27 |
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Item 3. |
55 |
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Item 4. |
56 |
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57 |
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Item 1. |
57 |
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57 |
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Item 2. |
67 |
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Item 3. |
67 |
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Item 4. |
67 |
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Item 5. |
67 |
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Item 6. |
68 |
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70 |
Item 1. |
Financial Statements. |
June 26, |
December 26, |
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2021 |
2020 |
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(Unaudited) | ||||||||
ASSETS |
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Current Assets |
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Cash |
$ | $ | ||||||
Accounts receivable, less allowance for doubtful accounts; $ |
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Costs and estimated earnings in excess of billing on uncompleted contracts |
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Inventory, net |
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Prepaid expenses |
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Other current assets |
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Total current assets |
$ |
$ |
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Property and equipment, net |
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Customer relationships, net |
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Tradename and trademarks |
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Other intangibles, net |
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Goodwill |
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Deferred tax asset |
— | |||||||
Other assets |
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Total assets |
$ |
$ |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities |
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Accounts payable |
$ | $ | ||||||
Billing in excess of costs and estimated earnings on uncompleted contracts |
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Current maturities of long-term debt |
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Other accrued expenses |
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Total current liabilities |
$ |
$ |
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Long-term debt, net |
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Deferred tax liability |
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Derivative warrant liability |
— | |||||||
Other long-term liabilities |
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Total liabilities |
$ |
$ |
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STOCKHOLDERS’ EQUITY |
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Common Stock, and |
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Additional paid in capital |
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Accumulated other comprehensive income (loss) |
( |
) | ||||||
Accumulated deficit |
( |
) | ( |
) | ||||
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Total stockholders’ equity |
$ |
$ |
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Total liabilities and stockholders’ equity |
$ |
$ |
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Three Months Ended |
Six Months Ended |
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June 26, 2021 |
June 27, 2020 |
June 26, 2021 |
June 27, 2020 |
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(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
REVENUE |
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Sales of product |
$ | $ | $ | $ | ||||||||||||
Sales of services |
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Total revenue |
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Cost of Sales |
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GROSS PROFIT |
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OPERATING EXPENSE |
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Selling and marketing |
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General and administrative |
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Operating Expenses |
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INCOME FROM OPERATIONS |
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Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other income (expense) |
( |
) | ( |
) | ||||||||||||
Change in fair value of derivative warrant liabilities |
( |
) | — | ( |
) | — | ||||||||||
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Other Expense, Net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
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INCOME BEFORE TAXES |
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Provision for Income Taxes |
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NET INCOME |
$ | $ | $ | $ | ||||||||||||
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Other Comprehensive Income (Loss) |
( |
) | ( |
) | ( |
) | ||||||||||
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COMPREHENSIVE INCOME |
$ | $ | $ | $ | ||||||||||||
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Net income attributable to common stockholders |
$ | $ | $ | $ | ||||||||||||
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Weighted-average shares outstanding, basic and diluted (Note 15) |
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Basic |
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Diluted |
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Net income per share, basic and diluted (Note 1 5 ) |
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Basic |
$ | $ | $ | $ | ||||||||||||
Diluted |
$ | $ | $ | $ |
Class B Common |
Class A Preferred Units |
Common Stock |
Additional paid-in capital |
Accumulated Other Comprehensive Income (Loss) |
Accumulated Equity (Deficit) |
Total |
||||||||||||||||||||||||||||||||||
Unit | Amount | Unit | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||
Balance as of December 28, 2019 |
$ |
$ |
— |
$ |
— |
$ |
— |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||||||||||||||
Retroactive application of the recapitalization |
( |
) |
( |
) |
( |
) |
( |
) |
$ |
— |
$ |
— |
$ |
— |
||||||||||||||||||||||||||
Balance as of December 28, 2019, as adjusted |
— |
$ |
— |
— |
$ |
— |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
Vesting of Midco LLC class B units |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Distributions to Janus Midco LLC Class A unitholders |
— | — | — |
— |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Cumulative translation adjustment |
— | — | — |
— |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||
Net income |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Balance as of March 28, 2020, as adjusted |
— |
$ |
— |
— |
$ |
— |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
Vesting of Midco LLC class B units |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Distributions to Janus Midco LLC Class A unitholders |
— | — |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Cumulative translation adjustment |
— | — |
— | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||
Net income |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Balance as of June 2 7 , 2020, as adjusted |
— |
$ |
— |
— |
$ |
— |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
Class B Common Units |
Class A Preferred Units |
Common Stock |
Additional paid-in capital |
Accumulated Other Comprehensive Income (Loss) |
Accumulated Equity (deficit) |
Total |
||||||||||||||||||||||||||||||||||
Unit |
Amount |
Unit |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||||||||
Balance as of December 26, 2020 |
$ |
$ |
— |
$ |
— |
$ |
— |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||||||||||||||
Retroactive |
( |
) |
( |
) |
( |
) |
( |
) |
— |
— |
— |
|||||||||||||||||||||||||||||
Balance as of December 26, |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
||||
Vesting of Midco LLC class B units |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||
Distributions to Class A preferred units |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Cumulative translation adjustment |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||
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Balance as of March 27, 2021, as adjusted |
— |
$ |
— |
— |
$ |
— |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||||||||
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Vesting of Midco LLC class B units |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||
Issuance of PIPE Shares |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||
Issuance of common stock upon merger, net of transaction costs, earn out, and merger warrant liability |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||
Issuance of earn out shares to common stockholders |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||
Distributions to Janus Midco, LLC unitholders |
— |
— |
— |
— |
— |
— |
( |
) |
— |
— |
( |
) | ||||||||||||||||||||||||||||
Distributions to Class A preferred units |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Deferred Tax Asset |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||
Cumulative |
— |
— |
— |
— |
— |
— |
— |
( |
) |
— |
( |
) | ||||||||||||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
— |
— |
— |
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Balance as of June 26, 2021 |
— |
$ |
— |
— |
$ |
— |
$ |
$ |
$ |
$ |
( |
) |
$ |
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Six Months Ended |
||||||||
June 26, 2021 |
June 27, 2020 |
|||||||
(Unaudited) | (Unaudited) | |||||||
Cash Flows Provided By Operating Activities |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
Depreciation |
||||||||
Intangible amortization |
||||||||
Deferred finance fee amortization |
||||||||
Share based compensation |
||||||||
Loss on extinguishment of debt |
— | |||||||
Change in fair value of contingent consideration |
— | |||||||
Loss on sale of assets |
||||||||
Change in fair value of derivative warrant liabilities |
— | |||||||
Undistributed (earnings) losses of affiliate |
( |
) | ||||||
Deferred income taxes |
( |
) | — | |||||
Changes in operating assets and liabilities |
||||||||
Accounts receivable |
( |
) | ||||||
Costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings on uncompleted contracts |
( |
) | ||||||
Prepaid expenses and other current assets |
( |
) | ( |
) | ||||
Inventory |
( |
) | ( |
) | ||||
Accounts payable |
||||||||
Other accrued expenses |
||||||||
Other assets and long-term liabilities |
( |
) | ||||||
|
|
|
|
|||||
Net Cash Provided By Operating Activities |
$ |
$ |
||||||
|
|
|
|
|||||
Cash Flows Used In Investing Activities |
||||||||
Proceeds from sale of equipment |
||||||||
Purchases of property and equipment |
( |
) | ( |
) | ||||
Cash paid for acquisition, net of cash acquired |
( |
) | ( |
) | ||||
|
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|
|
|||||
Net Cash Used In Investing Activities |
( |
) | ( |
) | ||||
|
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|
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Cash Flows Used In Financing Activities |
||||||||
Distributions to Janus Midco LLC unitholders |
( |
) | ( |
) | ||||
Principal payments on long-term debt |
( |
) | ( |
) | ||||
Proceeds from merger |
— | |||||||
Proceeds from PIPE |
— | |||||||
Payments for transaction costs, net |
( |
) | — | |||||
Payments to Janus Midco, LLC unitholders at the business combination |
( |
) | — | |||||
Payments for deferred financing fees |
( |
) | — | |||||
|
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|
|
|||||
Cash Used In Financing Activities |
$ | ( |
) | $ | ( |
) | ||
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|
|||||
Effect of exchange rate changes on cash and cash equivalents |
( |
) | ||||||
|
|
|
|
|||||
Net (Decrease) Increase in Cash and Cash Equivalents |
$ |
( |
) |
$ |
||||
|
|
|
|
|||||
Cash and Cash Equivalents, Beginning of Fiscal Year |
$ |
$ |
||||||
|
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|
|||||
Cash and Cash Equivalents as of June 26, 2021 and June 27, 2020 |
$ |
$ |
||||||
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|
|||||
Supplemental Cash Flows Information |
||||||||
Interest paid |
$ | $ | ||||||
Income taxes paid |
$ | $ | ||||||
Fair value of earnout |
$ | $ | — | |||||
Fair value of warrants |
$ | $ | — |
• | Janus Midco equityholders have the majority ownership and voting rights. The relative voting rights is equivalent to equity ownership (each share of common stock is one vote). JIH shareholders (IPO investors, founders, PIPE investors) hold |
• | The board of directors of the Combined Company is composed of nine directors, with Janus Midco equity holders having the ability to elect or appoint a majority of the board of directors in the Combined Company. |
• | Janus Midco’s senior management are the senior management of the Combined Company. |
• | The Combined Company has assumed the Janus name. |
Manufacturing machinery and equipment |
||||
Office furniture and equipment |
||||
Vehicles |
||||
Leasehold improvements |
• | Level 1, observable inputs such as quoted prices in active markets; |
• | Level 2, inputs other than the quoted prices in active markets that are observable either directly or indirectly; |
• | Level 3, unobservable inputs in which there is little or no market data, which requires that the Company develop its own assumptions. |
June 26, |
December 26, |
|||||||
2021 |
2020 |
|||||||
Raw materials |
$ | $ | ||||||
Work-in-process |
||||||||
Finished goods |
||||||||
|
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|
|
|||||
$ |
$ |
|||||||
|
|
|
|
June 26, |
December 26, |
|||||||
2021 |
2020 |
|||||||
Land |
$ | $ | ||||||
Manufacturing machinery and equipment |
||||||||
Leasehold improvements |
||||||||
Construction in progress |
||||||||
Other |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
Less accumulated depreciation |
( |
) | ( |
) | ||||
|
|
|
|
|||||
$ |
$ |
|||||||
|
|
|
|
June 26, |
December 26, |
|||||||||||||||||||
2021 |
2020 |
|||||||||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Average Remaining Life in Years |
Gross Carrying Amount |
Accumulated Amortization |
||||||||||||||||
Intangible Assets |
||||||||||||||||||||
Customer relationships |
$ | $ | $ | $ | ||||||||||||||||
Noncompete agreements |
||||||||||||||||||||
Tradenames and trademarks |
— | Indefinite | — | |||||||||||||||||
Other intangibles |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
$ |
$ |
$ |
$ |
|||||||||||||||||
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|
|
|
|
Balance as of December 26, 2020 |
$ |
|||
|
|
|||
Goodwill acquired during the period |
||||
Changes due to foreign currency fluctuations |
( |
) | ||
|
|
|||
Balance as of June 26, 2021 |
$ |
|||
|
|
June 26, |
December 26, |
|||||||
2021 |
2020 |
|||||||
Sales tax payable |
$ | $ | ||||||
Interest payable |
||||||||
Contingent consideration payable—short term |
||||||||
Other accrued liabilities |
||||||||
Employee compensation |
||||||||
Customer deposits and allowances |
||||||||
Other |
||||||||
|
|
|
|
|||||
Total |
$ |
$ |
||||||
|
|
|
|
June 26, |
December 26, |
|||||||
2021 |
2020 |
|||||||
Note payable—First Lien |
$ | $ | ||||||
Note payable—First Lien B2 |
||||||||
Note payable—Amendment No. 3 First Lien |
||||||||
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|
|||||
Less unamortized deferred finance fees |
||||||||
Less current maturities |
||||||||
|
|
|
|
|||||
Total long-term debt |
$ |
$ |
||||||
|
|
|
|
2021 |
$ | ||
2022 |
|||
2023 |
|||
2024 |
|||
2025 |
|||
|
| ||
Total |
$ |
||
|
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