| | | | | ii | | | |
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| | | | | 20 | | | |
| | | | | 21 | | | |
| | | | | 22 | | | |
| | | | | 22 | | | |
| | | | | 23 | | | |
| | | | | 35 | | | |
| | | | | 55 | | | |
| | | | | 63 | | | |
| | | | | 73 | | | |
| | | | | 82 | | | |
| | | | | 83 | | | |
| | | | | 88 | | | |
| | | | | 89 | | | |
| | | | | 91 | | | |
| | | | | 94 | | | |
| | | | | 96 | | | |
| | | | | 102 | | | |
| | | | | 104 | | | |
| | | | | 104 | | | |
| | | | | 105 | | | |
| | | | | F-1 | | |
| | |
Whole Earth
Brands Historical Income Statement for the three month period ended 3/31/2021 |
| |
Wholesome
Historical Income Statement for the period 12/26/2020 − 2/5/2021(1) |
| |
Acquisition
Transaction Accounting Adjustments |
| | | | | | | |
Debt Financing
Transaction Accounting Adjustments |
| | | | | | | |
Pro Forma as
adjusted |
| |||||||||||||||
Product revenues, net
|
| | | $ | 105,825 | | | | | $ | 20,380 | | | | | $ | — | | | | | | | | | | | $ | — | | | | | | | | | | | $ | 126,205 | | |
Cost of goods sold
|
| | | | 70,174 | | | | | | 16,462 | | | | | | (922) | | | | |
|
(f,l)
|
| | | | | — | | | | | | | | | | | | 85,714 | | |
Gross profit
|
| | | | 35,651 | | | | | | 3,918 | | | | | | 922 | | | | | | | | | | | | — | | | | | | | | | | | | 40,491 | | |
Selling, general and administrative expenses
|
| | | | 32,907 | | | | | | 3,122 | | | | | | (6,076) | | | | |
|
(m)
|
| | | | | — | | | | | | | | | | | | 29,953 | | |
Amortization of intangible assets
|
| | | | 4,151 | | | | | | 566 | | | | | | 191 | | | | |
|
(n)
|
| | | | | — | | | | | | | | | | | | 4,908 | | |
Restructuring and other expenses, net
|
| | | | 1,657 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1,657 | | |
Operating (loss) income
|
| | | | (3,064) | | | | | | 230 | | | | | | 6,807 | | | | | | | | | | | | — | | | | | | | | | | | | 3,973 | | |
Change in fair value of warrant liabilities
|
| | | | (2,362) | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (2,362) | | |
Interest (expense) income, net
|
| | | | (5,078) | | | | | | (802) | | | | | | 761 | | | | |
|
(o)
|
| | | | | (1,128) | | | | |
|
(r)
|
| | | | | (6,247) | | |
Loss on extinguishment and debt transaction costs
|
| | | | (5,513) | | | | | | (3,828) | | | | | | 3,828 | | | | |
|
(p)
|
| | | | | 5,513 | | | | |
|
(s)
|
| | | | | — | | |
Other income, net
|
| | | | 310 | | | | | | 12 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 322 | | |
(Loss) income before income taxes
|
| | | | (15,707) | | | | | | (4,388) | | | | | | 11,396 | | | | | | | | | | | | 4,385 | | | | | | | | | | | | (4,314) | | |
(Benefit) provision for income taxes
|
| | | | (3,682) | | | | | | (1,097) | | | | | | 2,849 | | | | |
|
(q)
|
| | | | | 1,086 | | | | |
|
(t)
|
| | | | | (844) | | |
Net (loss) income
|
| | | $ | (12,025) | | | | | $ | (3,291) | | | | | $ | 8,547 | | | | | | | | | | | $ | 3,299 | | | | | | | | | | | $ | (3,470) | | |
Pro Forma Net loss per share – Basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(u)
|
| | | | $ | (0.09) | | |
Pro Forma Weighted average
shares outstanding – Basic and diluted |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(u)
|
| | | | | 38,430,742 | | |
| | |
Whole
Earth Brands Historical Income Statement for the twelve month period ended 12/31/2020(1) |
| |
Merisant &
Mafco Acquisition Transaction Accounting Adjustments |
| | | | | | | |
Whole
Earth Brands, Inc. As Adjusted 12/31/2020 |
| |
Swerve
Historical Income Statement for the period 1/1/2020 − 11/10/2020 (After reclassifications)(2) |
| |
Swerve
Acquisition Transaction Accounting Adjustments |
| | | | | | | |
Whole
Earth and Swerve, as Adjusted 12/31/2020 |
| |
Wholesome
Historical Income Statement for the period 11/30/2019 − 11/27/2020 (After reclassifications)(2) |
| |
Wholesome
Acquisition Transaction Accounting Adjustments |
| | | | | | | |
Debt
Financing Transaction Accounting Adjustments |
| | | | | | | |
Pro Forma
as adjusted |
| ||||||||||||||||||||||||||||||
Product revenues, net
|
| | | $ | 275,496 | | | | | $ | — | | | | | | | | | | | $ | 275,496 | | | | | $ | 30,814 | | | | | $ | (766) | | | | |
|
(e)
|
| | | | $ | 305,544 | | | | | $ | 195,193 | | | | | $ | (1,085) | | | | |
|
(k)
|
| | | | $ | — | | | | | | | | | | | $ | 499,652 | | |
Cost of goods sold
|
| | | | 179,212 | | | | | | (2,982) | | | | |
|
(a)
|
| | | | | 176,230 | | | | | | 19,606 | | | | | | (189) | | | | |
|
(f)
|
| | | | | 195,647 | | | | | | 161,687 | | | | | | 3,003 | | | | |
|
(l)
|
| | | | | — | | | | | | | | | | | | 360,337 | | |
Gross profit
|
| | | | 96,284 | | | | | | 2,982 | | | | | | | | | | | | 99,266 | | | | | | 11,208 | | | | | | (577) | | | | | | | | | | | | 109,897 | | | | | | 33,506 | | | | | | (4,088) | | | | | | | | | | | | — | | | | | | | | | | | | 139,315 | | |
Selling, general and administrative expenses
|
| | | | 87,971 | | | | | | (97) | | | | |
|
(b)
|
| | | | | 87,874 | | | | | | 27,585 | | | | | | (320) | | | | |
|
(g)
|
| | | | | 115,139 | | | | | | 12,878 | | | | | | 14,679 | | | | |
|
(m)
|
| | | | | — | | | | | | | | | | | | 142,696 | | |
Amortization of intangible
assets |
| | | | 10,948 | | | | | | (764) | | | | |
|
(c)
|
| | | | | 10,184 | | | | | | — | | | | | | 1,416 | | | | |
|
(h)
|
| | | | | 11,600 | | | | | | 5,432 | | | | | | 2,280 | | | | |
|
(n)
|
| | | | | — | | | | | | | | | | | | 19,312 | | |
Asset impairment charges
|
| | | | 40,600 | | | | | | — | | | | | | | | | | | | 40,600 | | | | | | — | | | | | | — | | | | | | | | | | | | 40,600 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 40,600 | | |
Restructuring and other expenses, net
|
| | | | 1,052 | | | | | | — | | | | | | | | | | | | 1,052 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,052 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1,052 | | |
Operating (loss) income
|
| | | | (44,287) | | | | | | 3,843 | | | | | | | | | | | | (40,444) | | | | | | (16,377) | | | | | | (1,673) | | | | | | | | | | | | (58,494) | | | | | | 15,196 | | | | | | (21,047) | | | | | | | | | | | | — | | | | | | | | | | | | (64,345) | | |
Interest (expense) income ,
net |
| | | | (4,609) | | | | | | — | | | | | | | | | | | | (4,609) | | | | | | (4) | | | | | | 4 | | | | |
|
(i)
|
| | | | | (4,609) | | | | | | (8,093) | | | | | | 6,800 | | | | |
|
(o)
|
| | | | | (19,571) | | | | |
|
(r)
|
| | | | | (25,474) | | |
Loss on extinguishment and debt transaction costs
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | (5,513) | | | | |
|
(s)
|
| | | | | (5,513) | | |
Other income (expense), net
|
| | | | 223 | | | | | | — | | | | | | | | | | | | 223 | | | | | | (44) | | | | | | — | | | | | | | | | | | | 179 | | | | | | 279 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 458 | | |
(Loss) income before income taxes
|
| | | | (48,673) | | | | | | 3,843 | | | | | | | | | | | | (44,830) | | | | | | (16,425) | | | | | | (1,669) | | | | | | | | | | | | (62,924) | | | | | | 7,382 | | | | | | (14,247) | | | | | | | | | | | | (25,084) | | | | | | | | | | | | (94,874) | | |
(Benefit) provision for income taxes
|
| | | | (6,100) | | | | | | 952 | | | | |
|
(d)
|
| | | | | (5,148) | | | | | | — | | | | | | (4,537) | | | | |
|
(j)
|
| | | | | (9,685) | | | | | | 1,853 | | | | | | (3,562) | | | | |
|
(q)
|
| | | | | (6,213) | | | | |
|
(t)
|
| | | | | (17,607) | | |
Net (loss) income
|
| | | $ | (42,573) | | | | | $ | 2,891 | | | | | | | | | | | $ | (39,682) | | | | | $ | (16,425) | | | | | $ | 2,868 | | | | | | | | | | | $ | (53,239) | | | | | $ | 5,529 | | | | | $ | (10,685) | | | | | | | | | | | $ | (18,871) | | | | | | | | | | | $ | (77,267) | | |
Pro Forma Net loss per
share – Basic and diluted |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(u)
|
| | | | $ | (2.01) | | |
Pro Forma Weighted average shares outstanding – Basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(u)
|
| | | | | 38,426,669 | | |
| | |
Wholesome (Historical)
|
| |
Reclassifications to conform to
Whole Earth Brands’ presentation |
| |
Wholesome
(Historical, as adjusted) |
| |||||||||
Depreciation and amortization
|
| | | $ | 661 | | | | | $ | (661) | | | | | $ | — | | |
Amortization of intangible assets
|
| | | | — | | | | | | 566 | | | | | | 566 | | |
Selling, general and administrative expenses
|
| | | | 3,027 | | | | | | 95 | | | | | | 3,122 | | |
| | |
Wholesome (Historical)
|
| |
Reclassifications to conform to
Whole Earth Brands’ presentation |
| |
Wholesome
(Historical, as adjusted) |
| |||||||||
Product revenues, net
|
| | | $ | 204,035 | | | | | $ | (8,842) | | | | | $ | 195,193 | | |
Discounts, returns, and allowance
|
| | | | (8,842) | | | | | | 8,842 | | | | | | — | | |
Selling
|
| | | | 4,374 | | | | | | (4,374) | | | | | | — | | |
General and administrative
|
| | | | 7,550 | | | | | | (7,550) | | | | | | — | | |
Depreciation and amortization
|
| | | | 6,386 | | | | | | (6,386) | | | | | | — | | |
Amortization of intangible assets
|
| | | | — | | | | | | 5,432 | | | | | | 5,432 | | |
Selling, general and administrative expenses
|
| | | | — | | | | | | 12,878 | | | | | | 12,878 | | |
| | |
Swerve (Historical)
|
| |
Reclassifications to conform to
Whole Earth Brands’ presentation |
| |
Swerve
(Historical, as adjusted) |
| |||||||||
Sales and marketing expenses
|
| | | $ | 4,001 | | | | | $ | (4,001) | | | | | $ | — | | |
Other operating expenses
|
| | | | 2,480 | | | | | | (2,480) | | | | | | — | | |
Non-operating expenses, net
|
| | | | 21,152 | | | | | | (21,152) | | | | | | — | | |
Selling, general, and administrative expenses
|
| | | | — | | | | | | 27,585 | | | | | | 27,585 | | |
Other (expense) income, net
|
| | | | — | | | | | | (44) | | | | | | (44) | | |
Interest (expense) income, net
|
| | | | — | | | | | | (4) | | | | | | (4) | | |
|
Base cash consideration
|
| | | $ | 180,000 | | |
|
Estimated closing adjustments
|
| | | | 10,233 | | |
|
Fair Value of Earn-Out Amount(1)
|
| | | | 52,395 | | |
|
Total Purchase Price – Wholesome Transaction
|
| | | $ | 242,628 | | |
|
Cash and cash equivalents
|
| | | $ | 2,664 | | |
|
Accounts receivable, net
|
| | | | 15,892 | | |
|
Inventories
|
| | | | 78,694 | | |
|
Prepaid expenses and other current assets
|
| | | | 775 | | |
|
Property, plant and equipment, net
|
| | | | 2,763 | | |
|
Operating lease right-of-use assets
|
| | | | 7,585 | | |
|
Other intangible assets, net
|
| | | | 106,400 | | |
|
Other assets
|
| | | | 1,291 | | |
|
Total assets acquired
|
| | | | 216,064 | | |
|
Accounts payable
|
| | | | 5,251 | | |
|
Accrued expenses and other current liabilities
|
| | | | 13,306 | | |
|
Current portion of operating lease liabilities
|
| | | | 1,435 | | |
|
Operating lease liabilities, less current portion
|
| | | | 6,150 | | |
|
Deferred tax liabilities, net
|
| | | | 27,033 | | |
|
Total liabilities assumed
|
| | | | 53,175 | | |
|
Net assets acquired
|
| | | | 162,889 | | |
|
Goodwill
|
| | | | 79,739 | | |
|
Total Purchase Price
|
| | | $ | 242,628 | | |
|
Base cash consideration
|
| | | $ | 80,000 | | |
|
Closing adjustment
|
| | | | (968) | | |
|
Total Purchase Price – Swerve Acquisition
|
| | | $ | 79,032 | | |
|
Accounts receivable, net
|
| | | $ | 3,223 | | |
|
Inventories
|
| | | | 6,824 | | |
|
Prepaid expenses and other current assets
|
| | | | 223 | | |
|
Property, plant and equipment, net
|
| | | | 143 | | |
|
Operating lease right-of-use assets
|
| | | | 76 | | |
|
Intangible assets, net
|
| | | | 36,300 | | |
|
Other assets
|
| | | | 3 | | |
|
Total assets acquired
|
| | | | 46,792 | | |
|
Accounts payable
|
| | | | 3,477 | | |
|
Accrued expenses and other current liabilities
|
| | | | 288 | | |
|
Current portion of operating lease liabilities
|
| | | | 48 | | |
|
Operating lease liabilities, less current portion
|
| | | | 28 | | |
|
Total liabilities assumed
|
| | | | 3,841 | | |
|
Net assets acquired
|
| | | | 42,951 | | |
|
Goodwill
|
| | | | 36,081 | | |
|
Total Purchase Price
|
| | | $ | 79,032 | | |
| | |
Year Ended
December 31, 2020 |
| |||
Decrease depreciation expense
|
| | | $ | (272) | | |
Transaction bonus expense
|
| | | | 455 | | |
Net decrease in rent expense
|
| | | | (280) | | |
Net adjustment to selling, general and administrative expenses
|
| | | $ | (97) | | |
| | |
Three Months Ended
March 31, 2021 |
| |
From January 1, 2020 to
November 10, 2020 |
| ||||||
Contra revenue adjustment
|
| | | $ | — | | | | | $ | (463) | | |
Swerve inventory amortization
|
| | | | (274) | | | | | | 274 | | |
Net adjustment to cost of goods sold
|
| | | $ | (274) | | | | | $ | (189) | | |
| | |
From January 1, 2020 to
November 10, 2020 |
| |||
Contra revenue adjustment
|
| | | $ | (303) | | |
Depreciation adjustment
|
| | | | (17) | | |
Net adjustment to selling, general and administrative expenses
|
| | | $ | (320) | | |
| | |
Three Months Ended
March 31, 2021 |
| |
Year Ended
November 27, 2020 |
| ||||||
Wholesome inventory amortization adjustment
|
| | | $ | (648) | | | | | $ | 1,957 | | |
Direct labor and bonus costs
|
| | | | — | | | | | | 1,046 | | |
Net adjustment to cost of goods sold
|
| | | $ | (648) | | | | | $ | 3,003 | | |
| | |
Three Months Ended
March 31, 2021 |
| |
Year Ended
November 27, 2020 |
| ||||||
Wholesome transaction bonus
|
| | | $ | (590) | | | | | $ | 1,261 | | |
Wholesome and Whole Earth Brands transaction costs
|
| | | | (5,276) | | | | | | 5,549 | | |
Mafco transaction bonus
|
| | | | (210) | | | | | | — | | |
Acceleration of partnership units
|
| | | | — | | | | | | 10,000 | | |
Direct labor and bonus costs and contra revenue reclassifications
|
| | | | — | | | | | | (2,131) | | |
Net adjustment to selling, general and administrative expenses
|
| | | $ | (6,076) | | | | | $ | 14,679 | | |
| | |
Three Months Ended
March 31, 2021 |
| |
Year Ended
November 27, 2020 |
| ||||||
Wholesome interest expense
|
| | | $ | 802 | | | | | $ | 8,093 | | |
Wholesome earn-out fair value adjustment
|
| | | | (41) | | | | | | (1,293) | | |
Net adjustment to interest (expense) income, net
|
| | | $ | 761 | | | | | $ | 6,800 | | |
| | |
Three Months Ended
March 31, 2021 |
| |
Year Ended
December 31, 2020 |
| ||||||
Interest expense – New Term Loan
|
| | | $ | (5,056) | | | | | $ | (20,859) | | |
Interest expense – New Revolving Credit Facility
|
| | | | (340) | | | | | | (1,394) | | |
Amortization of debt issuance costs and discount – New Term Loan
|
| | | | (346) | | | | | | (1,378) | | |
Amortization of debt issuance costs – New Revolving Credit Facility
|
| | | | (107) | | | | | | (438) | | |
Expense on unamortized issuance costs – Original Term Loan
|
| | | | — | | | | | | (107) | | |
Breakage Fees on Original Revolving Facility
|
| | | | — | | | | | | (8) | | |
Less: Historical interest expense – MacAndrews & Forbes Revolver
Loan |
| | | | — | | | | | | 168 | | |
Less: Historical interest expense – Original Term Loan and Original
Revolving Credit Facility |
| | | | 785 | | | | | | 4,445 | | |
Less: Historical interest expense – New Term Loan and New Revolving Credit Facility
|
| | | | 3,523 | | | | | | — | | |
Less: Historical expense on issuance cost – Original Term Loan and
Original Revolving Credit Facility |
| | | | 144 | | | | | | — | | |
Less: Historical expense on issuance cost – New Term Loan and New Revolving Credit Facility
|
| | | | 269 | | | | | | — | | |
Net adjustment to interest (expense) income, net
|
| | | $ | (1,128) | | | | | $ | (19,571) | | |
| | |
Three Months Ended
March 31, 2021 |
| |
Year Ended
December 31, 2020 |
| ||||||
Weighted average shares of common stock outstanding – basic and diluted
|
| | | | 38,430,742 | | | | | | 38,426,669 | | |
Pro forma basic and diluted net loss
|
| | | $ | (3,470,382) | | | | | $ | (77,266,608) | | |
Pro forma basic and diluted net loss per share
|
| | | $ | (0.09) | | | | | $ | (2.01) | | |
(In thousands)
|
| |
(Successor)
|
| |
(Predecessor)
|
| ||||||
|
Three Months Ended
March 31, 2021 |
| |
Three Months Ended
March 31, 2020 |
| ||||||||
Product revenues, net
|
| | | $ | 105,825 | | | | | $ | 65,972 | | |
Cost of goods sold
|
| | | | 70,174 | | | | | | 40,112 | | |
Gross profit
|
| | | | 35,651 | | | | | | 25,860 | | |
Selling, general and administrative expenses
|
| | | | 32,907 | | | | | | 16,048 | | |
Amortization of intangible assets
|
| | | | 4,151 | | | | | | 2,534 | | |
Asset impairment charges
|
| | | | — | | | | | | 40,600 | | |
Restructuring and other expenses
|
| | | | 1,657 | | | | | | — | | |
Operating loss
|
| | | | (3,064) | | | | | | (33,322) | | |
Change in fair value of warrant liabilities
|
| | | | (2,362) | | | | | | — | | |
Interest expense, net
|
| | | | (5,078) | | | | | | (172) | | |
Loss on extinguishment and modification of debt
|
| | | | (5,513) | | | | | | — | | |
Other income, net
|
| | | | 310 | | | | | | 1,721 | | |
Loss before income taxes
|
| | | | (15,707) | | | | | | (31,773) | | |
Benefit for income taxes
|
| | | | (3,682) | | | | | | (3,118) | | |
Net loss
|
| | | $ | (12,025) | | | | | $ | (28,655) | | |
(In thousands)
|
| |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
|
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||||
Product revenues, net
|
| | | $ | 147,168 | | | | | | $ | 128,328 | | | | | $ | 272,123 | | | | | $ | 290,965 | | |
Cost of goods sold
|
| | | | 101,585 | | | | | | | 77,627 | | | | | | 163,634 | | | | | | 167,874 | | |
Gross profit
|
| | | | 45,583 | | | | | | | 50,701 | | | | | | 108,489 | | | | | | 123,091 | | |
Selling, general and administrative expenses
|
| | | | 44,616 | | | | | | | 43,355 | | | | | | 65,896 | | | | | | 74,767 | | |
Amortization of intangible
assets |
| | | | 6,021 | | | | | | | 4,927 | | | | | | 10,724 | | | | | | 11,111 | | |
Asset impairment charges
|
| | | | — | | | | | | | 40,600 | | | | | | — | | | | | | — | | |
Restructuring and other
expenses |
| | | | 1,052 | | | | | | | — | | | | | | 2,193 | | | | | | 9,461 | | |
Operating (loss) income
|
| | | | (6,106) | | | | | | | (38,181) | | | | | | 29,676 | | | | | | 27,752 | | |
Interest (expense) income, net
|
| | | | (4,371) | | | | | | | (238) | | | | | | (500) | | | | | | 49 | | |
Other (expense) income, net
|
| | | | (578) | | | | | | | 801 | | | | | | (830) | | | | | | (1,648) | | |
(Loss) income before income taxes
|
| | | | (11,055) | | | | | | | (37,618) | | | | | | 28,346 | | | | | | 26,153 | | |
(Benefit) provision for income taxes
|
| | | | (2,618) | | | | | | | (3,482) | | | | | | (2,466) | | | | | | 5,312 | | |
Net (loss) income
|
| | | $ | (8,437) | | | | | | $ | (34,136) | | | | | $ | 30,812 | | | | | $ | 20,841 | | |
(In thousands)
|
| |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
|
Three Months Ended
March 31, 2021 |
| | |
Three Months Ended
March 31, 2020 |
| ||||||||
Product revenues, net
|
| | | $ | 81,797 | | | | | | $ | 40,219 | | |
Operating income (loss)
|
| | | $ | 10,159 | | | | | | $ | (6,755) | | |
(In thousands)
|
| |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
|
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||||
Product revenues, net
|
| | | $ | 96,857 | | | | | | $ | 80,749 | | | | | $ | 165,863 | | | | | $ | 173,759 | | |
Operating (loss) income
|
| | | $ | (3,461) | | | | | | $ | (14,463) | | | | | $ | 10,280 | | | | | $ | 8,283 | | |
(In thousands)
|
| |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
|
Three Months Ended
March 31, 2021 |
| | |
Three Months Ended
March 31, 2020 |
| ||||||||
Product revenues, net
|
| | | $ | 24,028 | | | | | | $ | 25,753 | | |
Operating income (loss)
|
| | | $ | 972 | | | | | | $ | (24,010) | | |
(In thousands)
|
| |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
|
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||||
Product revenues, net
|
| | | $ | 50,311 | | | | | | $ | 47,579 | | | | | $ | 106,260 | | | | | $ | 117,206 | | |
Operating (loss) income
|
| | | $ | (2,645) | | | | | | $ | (23,718) | | | | | $ | 19,396 | | | | | $ | 19,469 | | |
(In thousands)
|
| |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
|
Three Months Ended
March 31, 2021 |
| | |
Three Months Ended
March 31, 2020 |
| ||||||||
Operating loss
|
| | | $ | (14,195) | | | | | | $ | (2,557) | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
|
Three Months Ended
March 31, 2021 |
| | |
Three Months Ended
March 31, 2020 |
| ||||||||
Net cash (used in) provided by operating activities
|
| | | $ | (5,597) | | | | | | $ | 14,610 | | |
Net cash used in investing activities
|
| | | | (188,145) | | | | | | | (894) | | |
Net cash provided by (used in) financing activities
|
| | | | 204,056 | | | | | | | (13,930) | | |
Effect of exchange rates on cash and cash equivalents
|
| | | | 594 | | | | | | | 314 | | |
Net change in cash and cash equivalents
|
| | | $ | 10,908 | | | | | | $ | 100 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
|
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||||
Net cash (used in) provided by operating activities
|
| | | $ | (9,445) | | | | | | $ | 19,908 | | | | | $ | 31,665 | | | | | $ | 33,804 | | |
Net cash used in investing activities
|
| | | | (282,122) | | | | | | | (3,532) | | | | | | (4,037) | | | | | | (2,181) | | |
Net cash provided by (used in) financing activities
|
| | | | 252,216 | | | | | | | (16,924) | | | | | | (23,942) | | | | | | (28,532) | | |
Effect of exchange rates on cash and cash equivalents
|
| | | | 714 | | | | | | | 215 | | | | | | (496) | | | | | | (24) | | |
Net change in cash and cash
equivalents |
| | | $ | (38,637) | | | | | | $ | (333) | | | | | $ | 3,190 | | | | | $ | 3,067 | | |
| | |
Payments Due for the 12-Month Period Ended March 31,
|
| |||||||||||||||||||||||||||||||||||||||
|
Total
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
2026
|
| |
Thereafter
|
| |||||||||||||||||||||||
Debt
|
| | | $ | 400,000 | | | | | $ | 3,750 | | | | | $ | 3,750 | | | | | $ | 3,750 | | | | | $ | 3,750 | | | | | $ | 28,750 | | | | | $ | 356,250 | | |
Interest on debt
|
| | | | 143,495 | | | | | | 21,816 | | | | | | 21,610 | | | | | | 21,457 | | | | | | 21,296 | | | | | | 20,835 | | | | | | 36,481 | | |
Total
|
| | | $ | 543,495 | | | | | $ | 25,566 | | | | | $ | 25,360 | | | | | $ | 25,207 | | | | | $ | 25,046 | | | | | $ | 49,585 | | | | | $ | 392,731 | | |
| | |
Total
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
Thereafter
|
| |||||||||||||||||||||
Debt
|
| | | $ | 184,355 | | | | | $ | 7,000 | | | | | $ | 7,000 | | | | | $ | 10,500 | | | | | $ | 14,000 | | | | | $ | 145,855 | | | | | $ | — | | |
Interest on debt(1)
|
| | | | 33,830 | | | | | | 8,169 | | | | | | 7,873 | | | | | | 7,510 | | | | | | 6,962 | | | | | | 3,316 | | | | | | — | | |
Minimum lease obligations(2)
|
| | | | 16,124 | | | | | | 4,119 | | | | | | 3,611 | | | | | | 3,512 | | | | | | 1,919 | | | | | | 1,417 | | | | | | 1,546 | | |
Other purchase obligations
|
| | | | 1,931 | | | | | | 1,407 | | | | | | 524 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 236,240 | | | | | $ | 20,695 | | | | | $ | 19,008 | | | | | $ | 21,522 | | | | | $ | 22,881 | | | | | $ | 150,588 | | | | | $ | 1,546 | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Branded CPG
|
| | | | 64% | | | | | | 61% | | | | | | 60% | | |
Flavors & Ingredients
|
| | | | 36% | | | | | | 39% | | | | | | 40% | | |
Name
|
| |
Age
|
| |
Position
|
|
Irwin D. Simon | | |
62
|
| | Executive Chairman of the Board of Directors | |
Albert Manzone | | |
57
|
| | Chief Executive Officer, Director | |
Anuraag Agarwal | | |
46
|
| | Director | |
Steven M. Cohen | | |
57
|
| | Director | |
Denise M. Faltischek | | |
48
|
| | Director | |
Ira J. Lamel | | |
73
|
| | Director | |
John M. McMillin | | |
67
|
| | Director | |
Andrew “Andy” Rusie | | |
47
|
| | Chief Financial Officer | |
Luke Bailey* | | |
40
|
| | President of Flavors & Ingredients | |
Name
|
| |
Audit
Committee |
| |
Compensation
Committee |
| |
Nominating and
Governance Committee |
| |||||||||
Irwin D. Simon
|
| | | | | | | | | | | | | | | | | | |
Anuraag Agarwal
|
| | | | * | | | | | | | | | | | | * | | |
Steven M. Cohen
|
| | | | | | | | | | * | | | | | | * | | |
Denise M. Faltischek
|
| | | | | | | | | | | | | | | | + | | |
Ira J. Lamel
|
| | | | + | | | | | | * | | | | | | | | |
Albert Manzone
|
| | | | | | | | | | | | | | | | | | |
John M. McMillin
|
| | | | * | | | | | | + | | | | | | | | |
Named Executive Officer
|
| |
Title
|
|
Albert Manzone | | | Chief Executive Officer | |
Andrew “Andy” Rusie | | | Chief Financial Officer | |
Lucas Bailey | | | President of Flavors & Ingredients | |
| Lancaster Colony Corporation | | | The Simply Good Foods Company | | | Beyond Meat, Inc. | |
| Sunopta Inc. | | | J&J Snack Foods | | | E.L.F. Beauty, Inc. | |
| Bellring Brands, Inc. | | | John B. Sanfilippo & Son | | | Newage, Inc. | |
| National Beverage Corp. | | | Farmer Bros. Co. | | | Freshpet, Inc. | |
| Rogers Sugar Inc. | | | MGP Ingredients, Inc. | | |
Craft Brew Alliance, Inc.
|
|
| Landec Corporation | | | S&W Seed Company | | | Bridgford Foods Corporation | |
Element
|
| |
Fixed or
Variable |
| |
Purpose & Design Features
|
|
Base Salary | | | Fixed | | | To attract and retain executives by offering fixed compensation that is competitive with market opportunities and that recognizes each executive’s position, role, responsibility and experience. | |
Annual Performance-Based Cash Incentive | | | Variable | | | To motivate and reward the achievement of our annual performance goals, based on the attainment of pre-defined financial performance objectives. | |
Equity Awards | | | Variable | | | To align executives’ interests with the interests of stockholders through equity-based compensation with performance-based and time-based vesting periods and to promote the long-term retention of our executives and other key management personnel. | |
Benefits | | | Fixed | | | To provide attractive benefits that promote employee (and potentially family) health and wellness. Benefits are provided at a level that is the same or similar to all employees, unless otherwise noted below. | |
Executive & Title
|
| |
2020 Base
Salary* |
| |||
Albert Manzone, CEO
|
| | | $ | 632,800(1) | | |
Andrew Rusie, CFO
|
| | | $ | 375,000 | | |
Lucas Bailey, Pres. Flavors & Ingredients
|
| | | $ | 734,410(2) | | |
Name and Principal
Position |
| |
Year
|
| |
Salary
($) |
| |
Bonus ($)(1)
|
| |
Stock Awards
($)(2) |
| |
Non-Equity
Incentive Plan Compensation ($)(3) |
| |
All Other
Compensation ($)(4) |
| |
Total ($)
|
| |||||||||||||||||||||
Albert Manzone
Chief Executive Officer |
| | | | 2020(5) | | | | | $ | 632,800 | | | | | $ | 0 | | | | | $ | 612,156 | | | | | $ | 535,338 | | | | | $ | 3,540,272 | | | | | $ | 5,320,566 | | |
| | | 2019(10) | | | | | $ | 558,606 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 235,553 | | | | | $ | 613,124 | | | | | $ | 1,407,283 | | | ||
Andrew Rusie
Chief Financial Officer |
| | | | 2020 | | | | | $ | 375,000 | | | | | $ | 257,500 | | | | | $ | 224,997 | | | | | $ | 0 | | | | | $ | 11,400 | | | | | $ | 868,897 | | |
| | | 2019 | | | | | $ | 23,438 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 23,438(7) | | | ||
Lucas Bailey
President – Flavors & Ingredients |
| | | | 2020 | | | | | $ | 734,410 | | | | | $ | 0 | | | | | $ | 512,168(6) | | | | | $ | 0 | | | | | $ | 1,756,949 | | | | | $ | 3,003,527 | | |
| | | 2019 | | | | | $ | 780,300 | | | | | $ | 413,674 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 36,105 | | | | | $ | 1,230,079 | | |
Name and Principal
Position |
| |
Year
|
| |
401(k)
Match |
| |
Health &
Welfare Insurance ($) |
| |
Car
Allowance ($) |
| |
Tax
Benefits ($) |
| |
Pension
Contributions |
| |
Transaction
Bonus ($) |
| |
Vacation
Cash-out For Mr. Bailey upon Resignation |
| |
Total All
Other Compensation ($) |
| |||||||||||||||||||||||||||
Albert Manzone
|
| | | | 2020(5) | | | | | $ | 0 | | | | | $ | 9,270 | | | | | $ | 23,798 | | | | | $ | 29,529 | | | | | $ | 52,675 | | | | | $ | 3,425,000(8) | | | | | $ | 0 | | | | | $ | 3,540,272 | | |
| | | | | 2019(10) | | | | | $ | 0 | | | | | $ | 8,483 | | | | | $ | 30,752 | | | | | $ | 26,785 | | | | | $ | 47,104 | | | | | $ | 500,000(9) | | | | | $ | 0 | | | | | $ | 613,124 | | |
Andrew Rusie
|
| | | | 2020 | | | | | $ | 11,400 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 11,400 | | |
| | | | | 2019 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | |
Lucas Bailey
|
| | | | 2020 | | | | | $ | 11,400 | | | | | $ | 10,972 | | | | | $ | 8,845 | | | | | $ | 7,396 | | | | | $ | 0 | | | | | $ | 1,575,900 | | | | | $ | 142,438 | | | | | $ | 1,756,949 | | |
| | | | | 2019 | | | | | $ | 0 | | | | | $ | 10,692 | | | | | $ | 13,096 | | | | | $ | 12,317 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 36,105 | | |
Name
|
| |
Grant
Date |
| |
Option Awards
|
| |
Stock Awards
|
| |||||||||||||||||||||||||||
|
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |
Number
of Shares or Units of Stock That Have Not Vested (#)(1) |
| |
Market
Value of Shares or Units of Stock That Have Not Vested ($)(2) |
| |
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
| |
Equity
Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) |
| ||||||||||||||
Albert Manzone
|
| | | | 9/30/2020 | | | | | | | | | | | | | | | | | | 73,400 | | | | | $ | 800,060 | | | | | | | | |
Andrew Rusie
|
| | | | 9/30/2020 | | | | | | | | | | | | | | | | | | 26,978 | | | | | $ | 294,061 | | | | | | | | |
Lucas Bailey(3)
|
| | | | 9/30/2020 | | | | | | | | | | | | | | | | | | 0 | | | | | $ | 0 | | | | | | | | |
Name
|
| |
Stock
Awards($)(1) |
| |
All Other
Compensation ($) |
| |
Total ($)
|
| |||||||||
Irwin D. Simon
|
| | | $ | 250,000 | | | | | $ | 125,000 | | | | | $ | 375,000 | | |
Anuraag Agarwal
|
| | | $ | 65,002 | | | | | $ | 32,500 | | | | | $ | 97,502 | | |
Steven M. Cohen
|
| | | $ | 65,002 | | | | | $ | 32,500 | | | | | $ | 97,502 | | |
Denise M. Faltischek
|
| | | $ | 65,002 | | | | | $ | 32,500 | | | | | $ | 97,502 | | |
Ira J. Lamel
|
| | | $ | 65,002 | | | | | $ | 32,500 | | | | | $ | 97,502 | | |
Albert Manzone(2)
|
| | | | — | | | | | | — | | | | | | — | | |
John M. McMillin
|
| | | $ | 65,002 | | | | | $ | 32,500 | | | | | $ | 97,502 | | |
Name
|
| |
Number of Shares
Beneficially Owned |
| |
Percent of Shares
Outstanding |
| ||||||
Neuberger Berman Alternative Funds, Neuberger Berman Long Short Fund
|
| | | | 2,104,400(1) | | | | | | 5.40% | | |
River Road Asset Management, LLC
|
| | | | 2,936,296(2) | | | | | | 7.64% | | |
Rubric Capital Management LP
|
| | | | 2,600,000(3) | | | | | | 6.76% | | |
Name
|
| |
Number of Shares
Beneficially Owned |
| |
Percent of Shares
Outstanding |
| ||||||
Irwin D. Simon(1)
|
| | | | 1,125,976 | | | | | | 2.93% | | |
Albert Manzone
|
| | | | 32,935 | | | | | | * | | |
Lucas Bailey
|
| | | | — | | | | | | — | | |
Andrew Rusie
|
| | | | 5,570 | | | | | | * | | |
Denise M. Faltischek(2)
|
| | | | 12,794 | | | | | | * | | |
Steven M. Cohen (3)
|
| | | | 7,794 | | | | | | * | | |
John M. McMillin(4)
|
| | | | 29,794 | | | | | | * | | |
Anuraag Agarwal(5)
|
| | | | 22,794 | | | | | | * | | |
Ira J. Lamel(6)
|
| | | | 159,572 | | | | | | * | | |
All directors and executive officers as a group
(9 persons)(10) |
| | | | 1,397,229 | | | | | | 3.63% | | |
| | |
Before the Offering
|
| |
After the Offering
|
| ||||||||||||||||||||||||||||||||||||||||||
Name of Selling Security Holder
|
| |
Number of
Shares of Common Stock |
| |
Number of
Warrants |
| |
Number of
Shares of Common Stock Being Offered |
| |
Number of
Warrants Being Offered |
| |
Number of
Shares of Common Stock |
| |
%
|
| |
Number of
Warrants |
| |
%
|
| ||||||||||||||||||||||||
Irwin D. Simon(1)
|
| | | | 1,125,976 | | | | | | — | | | | | | 1,096,000 | | | | | | ― | | | | | | 29,976 | | | | | | * | | | | | | — | | | | | | — | | |
Baron Small Cap Fund(2)
|
| | | | 701,800 | | | | | | 1,403,600 | | | | | | 701,800 | | | | | | 1,403,600 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Monashee Investment Management LLC(3)
|
| | | | 280,720 | | | | | | 561,440 | | | | | | 280,720 | | | | | | 561,440 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Neuberger Berman Alternative Funds, Neuberger Berman Long Short Fund(4)
|
| | | | 2,104,400 | | | | | | 1,003,200 | | | | | | 1,350,900 | | | | | | 701,800 | | | | | | 753,500 | | | | | | 1.95% | | | | | | 301,400 | | | | | | 1.49% | | |
Polar Asset Management Partners Inc.(5)
|
| | | | 35,090 | | | | | | 70,180 | | | | | | 35,090 | | | | | | 70,180 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
UBS O’Connor LLC(6)
|
| | | | 100,000 | | | | | | 200,000 | | | | | | 100,000 | | | | | | 200,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Wolverine Flagship Fund Trading
Limited(7) |
| | | | 85,812 | | | | | | 126,631 | | | | | | 52,730 | | | | | | 70,180 | | | | | | 33,082 | | | | | | * | | | | | | 56,451 | | | | | | * | | |
Ira J. Lamel(8)
|
| | | | 159,572 | | | | | | — | | | | | | 151,778 | | | | | | — | | | | | | 7,794 | | | | | | * | | | | | | — | | | | | | — | | |
Anuraag Agarwal(9)
|
| | | | 22,794 | | | | | | — | | | | | | 15,000 | | | | | | — | | | | | | 7,794 | | | | | | * | | | | | | — | | | | | | — | | |
John M. McMillin(10)
|
| | | | 29,794 | | | | | | — | | | | | | 15,000 | | | | | | — | | | | | | 14,794 | | | | | | * | | | | | | — | | | | | | — | | |
| | | |
|
| | ||
|
Unaudited Condensed Consolidated and Combined Financial Statements
|
| | | | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| | | | | F-29 | | | |
| | | | | F-29 | | | |
| | | | | F-30 | | | |
| | | | | F-32 | | | |
| | | | | F-33 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | | |
| | | | | F-36 | | | |
| | | |
|
| | ||
| | | | | F-70 | | | |
| | | | | F-71 | | | |
| | | | | F-72 | | | |
| | | | | F-73 | | | |
| | | | | F-74 | | | |
| | | |
|
| | ||
| | | | | F-81 | | | |
| | | | | F-82 | | | |
| | | | | F-83 | | | |
| | | | | F-84 | | | |
| | | |
|
| | ||
| | | | | F-91 | | | |
|
Consolidated Financial Statements
|
| | | | | | |
| | | | | F-92 | | | |
| | | | | F-93 | | | |
| | | | | F-94 | | | |
| | | | | F-95 | | | |
| | | | | F-96 | | | |
| | | |
|
| | ||
|
Consolidated Financial Statements
|
| | | | | | |
| | | | | F-110 | | | |
| | | | | F-111 | | | |
| | | | | F-112 | | | |
| | | | | F-113 | | | |
| | | | | F-114 | | |
| Unaudited Condensed Consolidated and Combined Financial Statements | | | | | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| | | | | F-8 | | | |
| | | | | F-10 | | | |
| | | | | F-15 | | | |
| | | | | F-16 | | | |
| | | | | F-17 | | | |
| | | | | F-17 | | | |
| | | | | F-19 | | | |
| | | | | F-20 | | | |
| | | | | F-21 | | | |
| | | | | F-21 | | | |
| | | | | F-22 | | | |
| | | | | F-23 | | | |
| | | | | F-24 | | | |
| | | | | F-24 | | | |
| | | | | F-25 | | | |
| | | | | F-25 | | | |
| | | | | F-26 | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
Assets | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 27,806 | | | | | $ | 16,898 | | |
Accounts receivable (net of allowances of $723 and $955, respectively)
|
| | | | 72,205 | | | | | | 56,423 | | |
Inventories
|
| | | | 191,837 | | | | | | 111,699 | | |
Prepaid expenses and other current assets
|
| | | | 11,807 | | | | | | 5,045 | | |
Total current assets
|
| | | | 303,655 | | | | | | 190,065 | | |
Property, Plant and Equipment, net
|
| | | | 49,752 | | | | | | 47,285 | | |
Other Assets | | | | | | | | | | | | | |
Operating lease right-of-use assets
|
| | | | 18,749 | | | | | | 12,193 | | |
Goodwill
|
| | | | 236,895 | | | | | | 153,537 | | |
Other intangible assets, net
|
| | | | 283,845 | | | | | | 184,527 | | |
Deferred tax assets, net
|
| | | | 2,479 | | | | | | 2,671 | | |
Other assets
|
| | | | 6,926 | | | | | | 6,260 | | |
Total Assets
|
| | | $ | 902,301 | | | | | $ | 596,538 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 36,915 | | | | | $ | 25,200 | | |
Accrued expenses and other current liabilities
|
| | | | 34,616 | | | | | | 29,029 | | |
Contingent consideration payable
|
| | | | 52,672 | | | | | | — | | |
Current portion of operating lease liabilities
|
| | | | 5,074 | | | | | | 3,623 | | |
Current portion of long-term debt
|
| | | | 3,750 | | | | | | 7,000 | | |
Total current liabilities
|
| | | | 133,027 | | | | | | 64,852 | | |
Non-Current Liabilities | | | | | | | | | | | | | |
Long-term debt
|
| | | | 385,257 | | | | | | 172,662 | | |
Warrant liabilities
|
| | | | 7,999 | | | | | | — | | |
Deferred tax liabilities, net
|
| | | | 52,722 | | | | | | 23,297 | | |
Operating lease liabilities, less current portion
|
| | | | 16,281 | | | | | | 11,324 | | |
Other liabilities
|
| | | | 16,230 | | | | | | 15,557 | | |
Total Liabilities
|
| | | | 611,516 | | | | | | 287,692 | | |
Commitments and Contingencies (Note 9)
|
| | | | — | | | | | | — | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding at March 31, 2021 and December 31, 2020
|
| | | | — | | | | | | — | | |
Common stock, $0.0001 par value; 220,000,000 shares authorized; 38,426,669 shares issued and outstanding at March 31, 2021 and December 31, 2020
|
| | | | 4 | | | | | | 4 | | |
Additional paid-in capital
|
| | | | 322,758 | | | | | | 325,679 | | |
Accumulated deficit
|
| | | | (38,544) | | | | | | (25,442) | | |
Accumulated other comprehensive income
|
| | | | 6,567 | | | | | | 8,605 | | |
Total stockholders’ equity
|
| | | | 290,785 | | | | | | 308,846 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 902,301 | | | | | $ | 596,538 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
Three Months Ended
March 31, 2021 |
| | |
Three Months Ended
March 31, 2020 |
| ||||||
Product revenues, net
|
| | | $ | 105,825 | | | | | | $ | 65,972 | | |
Cost of goods sold
|
| | | | 70,174 | | | | | | | 40,112 | | |
Gross profit
|
| | | | 35,651 | | | | | | | 25,860 | | |
Selling, general and administrative expenses
|
| | | | 32,907 | | | | | | | 16,048 | | |
Amortization of intangible assets
|
| | | | 4,151 | | | | | | | 2,534 | | |
Asset impairment charges
|
| | | | — | | | | | | | 40,600 | | |
Restructuring and other expenses
|
| | | | 1,657 | | | | | | | — | | |
Operating loss
|
| | | | (3,064) | | | | | | | (33,322) | | |
Change in fair value of warrant liabilities
|
| | | | (2,362) | | | | | | | — | | |
Interest expense, net
|
| | | | (5,078) | | | | | | | (172) | | |
Loss on extinguishment and debt transaction costs
|
| | | | (5,513) | | | | | | | — | | |
Other income, net
|
| | | | 310 | | | | | | | 1,721 | | |
Loss before income taxes
|
| | | | (15,707) | | | | | | | (31,773) | | |
Benefit for income taxes
|
| | | | (3,682) | | | | | | | (3,118) | | |
Net loss
|
| | | $ | (12,025) | | | | | | $ | (28,655) | | |
Net loss per share – Basic and diluted
|
| | | $ | (0.31) | | | | | | | | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
Three Months Ended
March 31, 2021 |
| | |
Three Months Ended
March 31, 2020 |
| ||||||
Net loss
|
| | | $ | (12,025) | | | | | | $ | (28,655) | | |
Other comprehensive income (loss), net of tax:
|
| | | | | | | | | | | | | |
Net change in pension benefit obligations recognized
|
| | | | 9 | | | | | | | 48 | | |
Foreign currency translation adjustments
|
| | | | (2,047) | | | | | | | (1,884) | | |
Total other comprehensive loss, net of tax
|
| | | | (2,038) | | | | | | | (1,836) | | |
Comprehensive loss
|
| | | $ | (14,063) | | | | | | $ | (30,491) | | |
| | |
(Predecessor)
|
| |||
| | |
Total Equity
|
| |||
Balance at December 31, 2019
|
| | | $ | 487,750 | | |
Funding to Parent, net
|
| | | | (12,262) | | |
Net loss
|
| | | | (28,655) | | |
Other comprehensive loss, net of tax
|
| | | | (1,836) | | |
Balance at March 31, 2020
|
| | | $ | 444,997 | | |
| | |
Common Stock
|
| |
Preferred Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance at December 31,
2020 |
| | | | 38,426,669 | | | | | $ | 4 | | | | | | — | | | | | $ | — | | | | | $ | 325,679 | | | | | $ | (25,442) | | | | | $ | 8,605 | | | | | $ | 308,846 | | |
Reclassification of Private Warrants (Note 1)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,062) | | | | | | (1,077) | | | | | | — | | | | | | (8,139) | | |
Transfer of Private Warrants to Public Warrants (Note 7)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,502 | | | | | | — | | | | | | — | | | | | | 2,502 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (12,025) | | | | | | — | | | | | | (12,025) | | |
Other comprehensive loss, net of
tax |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,038) | | | | | | (2,038) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,639 | | | | | | — | | | | | | — | | | | | | 1,639 | | |
Balance at March 31, 2021
|
| | | | 38,426,669 | | | | | $ | 4 | | | | | | — | | | | | $ | — | | | | | $ | 322,758 | | | | | $ | (38,544) | | | | | $ | 6,567 | | | | | $ | 290,785 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
Three Months Ended
March 31, 2021 |
| | |
Three Months Ended
March 31, 2020 |
| ||||||
Operating activities | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (12,025) | | | | | | $ | (28,655) | | |
Adjustments to reconcile net loss to net cash provided by operating activities:
|
| | | | | | | | | | | | | |
Stock-based compensation
|
| | | | 1,639 | | | | | | | — | | |
Depreciation
|
| | | | 969 | | | | | | | 679 | | |
Amortization of intangible assets
|
| | | | 4,151 | | | | | | | 2,534 | | |
Deferred income taxes
|
| | | | 3,402 | | | | | | | (648) | | |
Asset impairment charges
|
| | | | — | | | | | | | 40,600 | | |
Pension
|
| | | | (115) | | | | | | | — | | |
Amortization of inventory fair value adjustments
|
| | | | 1,619 | | | | | | | — | | |
Non-cash loss on extinguishment of debt
|
| | | | 4,435 | | | | | | | — | | |
Change in fair value of warrant liabilities
|
| | | | 2,362 | | | | | | | — | | |
Changes in current assets and liabilities:
|
| | | | | | | | | | | | | |
Accounts receivable
|
| | | | (1,341) | | | | | | | 312 | | |
Inventories
|
| | | | (4,903) | | | | | | | 3,959 | | |
Prepaid expenses and other current assets
|
| | | | 665 | | | | | | | (949) | | |
Accounts payable, accrued liabilities and income taxes
|
| | | | (7,052) | | | | | | | (431) | | |
Other, net
|
| | | | 597 | | | | | | | (2,791) | | |
Net cash (used in) provided by operating activities
|
| | | | (5,597) | | | | | | | 14,610 | | |
Investing activities | | | | | | | | | | | | | | |
Capital expenditures
|
| | | | (1,544) | | | | | | | (894) | | |
Acquisitions, net of cash acquired
|
| | | | (186,601) | | | | | | | — | | |
Net cash used in investing activities
|
| | | | (188,145) | | | | | | | (894) | | |
Financing activities | | | | | | | | | | | | | | |
Proceeds from revolving credit facility
|
| | | | 25,000 | | | | | | | 3,500 | | |
Repayments of revolving credit facility
|
| | | | (47,855) | | | | | | | (5,000) | | |
Long-term borrowings
|
| | | | 375,000 | | | | | | | — | | |
Repayments of long-term borrowings
|
| | | | (136,500) | | | | | | | — | | |
Debt issuance costs
|
| | | | (11,589) | | | | | | | — | | |
Funding to Parent, net
|
| | | | — | | | | | | | (12,430) | | |
Net cash provided by (used in) financing activities
|
| | | | 204,056 | | | | | | | (13,930) | | |
Effect of exchange rate changes on cash and cash equivalents
|
| | | | 594 | | | | | | | 314 | | |
Net change in cash and cash equivalents
|
| | | | 10,908 | | | | | | | 100 | | |
Cash and cash equivalents, beginning of period
|
| | | | 16,898 | | | | | | | 10,395 | | |
Cash and cash equivalents, end of period
|
| | | $ | 27,806 | | | | | | $ | 10,495 | | |
Supplemental disclosure of cash flow information | | | | | | | | | | | | | | |
Interest paid
|
| | | $ | 4,491 | | | | | | $ | — | | |
Taxes paid, net of refunds
|
| | | $ | 3,535 | | | | | | $ | 1,070 | | |
|
Base cash consideration
|
| | | $ | 387,500 | | |
|
Closing adjustment
|
| | | | (764) | | |
|
Total Purchase Price
|
| | | $ | 386,736 | | |
|
Cash and cash equivalents
|
| | | $ | 10,062 | | |
|
Accounts receivable
|
| | | | 45,769 | | |
|
Inventories
|
| | | | 106,436 | | |
|
Prepaid expenses and other current assets
|
| | | | 2,461 | | |
|
Property, plant and equipment, net
|
| | | | 43,554 | | |
|
Operating lease right-of-use assets
|
| | | | 12,541 | | |
|
Intangible assets
|
| | | | 148,750 | | |
|
Deferred tax assets, net
|
| | | | 1,065 | | |
|
Other assets
|
| | | | 1,398 | | |
|
Total assets acquired
|
| | | | 372,036 | | |
|
Accounts payable
|
| | | | 18,590 | | |
|
Accrued expenses and other current liabilities
|
| | | | 35,063 | | |
|
Current portion of operating lease liabilities
|
| | | | 3,007 | | |
|
Operating lease liabilities, less current portion
|
| | | | 12,208 | | |
|
Deferred tax liabilities, net
|
| | | | 23,334 | | |
|
Other liabilities
|
| | | | 16,227 | | |
|
Total liabilities assumed
|
| | | | 108,429 | | |
|
Net assets acquired
|
| | | | 263,607 | | |
|
Goodwill
|
| | | | 123,129 | | |
|
Total Purchase Price
|
| | | $ | 386,736 | | |
Identifiable intangible assets
|
| |
Fair Value
(in thousands) |
| |
Useful life
(in Years) |
| |||
Customer relationships
|
| | | $ | 47,359 | | | |
0.5 to 10
|
|
Tradenames
|
| | | | 90,691 | | | |
25
|
|
Product formulations
|
| | | | 10,700 | | | |
Indefinite
|
|
| | | | $ | 148,750 | | | | | |
|
Base cash consideration
|
| | | $ | 80,000 | | |
|
Closing adjustment
|
| | | | (968) | | |
|
Total Purchase Price
|
| | | $ | 79,032 | | |
|
Accounts receivable
|
| | | $ | 3,223 | | |
|
Inventories
|
| | | | 6,824 | | |
|
Prepaid expenses and other current assets
|
| | | | 223 | | |
|
Property, plant and equipment, net
|
| | | | 143 | | |
|
Operating lease right-of-use assets
|
| | | | 76 | | |
|
Intangible assets
|
| | | | 36,300 | | |
|
Other assets
|
| | | | 3 | | |
|
Total assets acquired
|
| | | | 46,792 | | |
|
Accounts payable
|
| | | | 3,477 | | |
|
Accrued expenses and other current liabilities
|
| | | | 288 | | |
|
Current portion of operating lease liabilities
|
| | | | 48 | | |
|
Operating lease liabilities, less current portion
|
| | | | 28 | | |
|
Total liabilities assumed
|
| | | | 3,841 | | |
|
Net assets acquired
|
| | | | 42,951 | | |
|
Goodwill
|
| | | | 36,081 | | |
|
Total Purchase Price
|
| | | $ | 79,032 | | |
Identifiable intangible assets
|
| |
Fair Value
(in thousands) |
| |
Useful life
(in Years) |
| ||||||
Customer relationships
|
| | | $ | 3,200 | | | | | | 10 | | |
Tradenames
|
| | | | 33,100 | | | | | | 25 | | |
| | | | $ | 36,300 | | | | | | | | |
|
Base cash consideration
|
| | | $ | 180,000 | | |
|
Estimated closing adjustment
|
| | | | 10,233 | | |
|
Fair value of Earn-Out Amount
|
| | | | 52,395 | | |
|
Total Purchase Price
|
| | | $ | 242,628 | | |
|
Cash and cash equivalents
|
| | | $ | 2,664 | | |
|
Accounts receivable
|
| | | | 15,892 | | |
|
Inventories
|
| | | | 78,694 | | |
|
Prepaid expenses and other current assets
|
| | | | 775 | | |
|
Property, plant and equipment, net
|
| | | | 2,763 | | |
|
Operating lease right-of-use assets
|
| | | | 7,585 | | |
|
Intangible assets
|
| | | | 106,400 | | |
|
Other assets
|
| | | | 1,291 | | |
|
Total assets acquired
|
| | | | 216,064 | | |
|
Accounts payable
|
| | | | 5,251 | | |
|
Accrued expenses and other current liabilities
|
| | | | 13,306 | | |
|
Current portion of operating lease liabilities
|
| | | | 1,435 | | |
|
Operating lease liabilities, less current portion
|
| | | | 6,150 | | |
|
Deferred tax liabilities, net
|
| | | | 27,033 | | |
|
Total liabilities assumed
|
| | | | 53,175 | | |
|
Net assets acquired
|
| | | | 162,889 | | |
|
Goodwill
|
| | | | 79,739 | | |
|
Total Purchase Price
|
| | | $ | 242,628 | | |
Identifiable intangible assets
|
| |
Fair Value
(in thousands) |
| |
Useful life
(in Years) |
| ||||||
Customer relationships
|
| | | $ | 57,600 | | | | | | 10 | | |
Tradenames
|
| | | | 48,800 | | | | | | 25 | | |
| | | | $ | 106,400 | | | | | | | | |
| | |
Pro Forma
Statements of Operations |
| |||||||||
| | |
Three Months Ended
|
| |||||||||
| | |
March 31, 2021
|
| |
March 31, 2020
|
| ||||||
Revenue
|
| | | $ | 126,205 | | | | | $ | 117,885 | | |
Net income (loss)
|
| | | $ | 3,951 | | | | | $ | (47,771) | | |
|
Remainder of 2021
|
| | | $ | 4,356 | | |
|
2022
|
| | | | 5,441 | | |
|
2023
|
| | | | 5,389 | | |
|
2024
|
| | | | 3,712 | | |
|
2025
|
| | | | 2,593 | | |
|
Thereafter
|
| | | | 1,524 | | |
|
Total lease payments
|
| | | | 23,015 | | |
|
Less: imputed interest
|
| | | | 1,660 | | |
|
Total operating lease liabilities
|
| | | $ | 21,355 | | |
| | |
March 31, 2021
|
| |
December 31, 2020
|
| ||||||
Raw materials and supplies
|
| | | $ | 109,713 | | | | | $ | 66,487 | | |
Work in process
|
| | | | 1,130 | | | | | | 562 | | |
Finished goods
|
| | | | 80,994 | | | | | | 44,650 | | |
Total inventories
|
| | | $ | 191,837 | | | | | $ | 111,699 | | |
| | |
March 31, 2021
|
| |
December 31, 2020
|
| ||||||||||||||||||||||||||||||
| | |
Gross
Amount |
| |
Accumulated
Amortization |
| |
Net
Amount |
| |
Gross
Amount |
| |
Accumulated
Amortization |
| |
Net
Amount |
| ||||||||||||||||||
Other intangible assets subject to amortization
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Customer relationships (useful life of 5 to
10 years) |
| | | $ | 107,891 | | | | | $ | (5,525) | | | | | $ | 102,366 | | | | | $ | 50,877 | | | | | $ | (3,020) | | | | | $ | 47,857 | | |
Tradenames (useful life of 25 years)
|
| | | | 174,416 | | | | | | (3,637) | | | | | | 170,779 | | | | | | 128,155 | | | | | | (2,185) | | | | | | 125,970 | | |
Total
|
| | | $ | 282,307 | | | | | $ | (9,162) | | | | | $ | 273,145 | | | | | $ | 179,032 | | | | | $ | (5,205) | | | | | $ | 173,827 | | |
Other intangible assets not subject to amortization
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product formulations
|
| | | | | | | | | | | | | | | | 10,700 | | | | | | | | | | | | | | | | | | 10,700 | | |
Total other intangible assets, net
|
| | | | | | | | | | | | | | | | 283,845 | | | | | | | | | | | | | | | | | | 184,527 | | |
Goodwill
|
| | | | | | | | | | | | | | | | 236,895 | | | | | | | | | | | | | | | | | | 153,537 | | |
Total goodwill and other intangible assets
|
| | | | | | | | | | | | | | | $ | 520,740 | | | | | | | | | | | | | | | | | $ | 338,064 | | |
|
Remainder of 2021
|
| | | $ | 14,180 | | |
|
2022
|
| | | | 18,907 | | |
|
2023
|
| | | | 18,907 | | |
|
2024
|
| | | | 18,907 | | |
|
2025
|
| | | | 18,673 | | |
|
2026
|
| | | | 18,453 | | |
| | |
March 31, 2021
|
| |
December 31, 2020
|
| ||||||
Term Loan
|
| | | $ | 375,000 | | | | | $ | 136,500 | | |
Revolving credit facility
|
| | | | 25,000 | | | | | | 47,855 | | |
Less: current portion
|
| | | | (3,750) | | | | | | (7,000) | | |
Less: unamortized discount and debt issuance costs
|
| | | | (10,993) | | | | | | (4,693) | | |
Total long-term debt
|
| | | $ | 385,257 | | | | | $ | 172,662 | | |
Input
|
| |
March 31,
2021 |
| |||
Asset price
|
| | | $ | 13.04 | | |
Exercise price
|
| | | $ | 11.50 | | |
Risk-free interest rate
|
| | | | 0.7% | | |
Expected volatility
|
| | | | 45.0% | | |
Expected term (years)
|
| | | | 4.24 | | |
Dividend yield
|
| | | | 0.0% | | |
|
Reclassification of fair value of Private Warrants to warrant liabilities as of January 1, 2021
|
| | | $ | 8,139 | | |
|
Cumulative impact of change in fair value of Private Warrants in 2020
|
| | | | (1,161) | | |
|
Transfer of Private Warrants to Public Warrants
|
| | | | (2,502) | | |
|
Change in fair value of warrant liabilities in Q1 2021
|
| | | | 3,523 | | |
|
Fair value of warrant liabilities as of March 31, 2021
|
| | | $ | 7,999 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
Three Months Ended
March 31, 2021 |
| | |
Three Months Ended
March 31, 2020 |
| ||||||
Service cost
|
| | | $ | 16 | | | | | | $ | 14 | | |
Interest cost
|
| | | | 259 | | | | | | | 51 | | |
Expected return on plan assets
|
| | | | (399) | | | | | | | — | | |
Recognized actuarial loss
|
| | | | 9 | | | | | | | 40 | | |
Net periodic benefit (credit) cost
|
| | | $ | (115) | | | | | | $ | 105 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
Three Months Ended
March 31, 2021 |
| | |
Three Months Ended
March 31, 2020 |
| ||||||
Selling, general and administrative expense
|
| | | $ | 16 | | | | | | $ | 14 | | |
Other income, net
|
| | | | (131) | | | | | | | 91 | | |
Net periodic benefit (credit) cost
|
| | | $ | (115) | | | | | | $ | 105 | | |
| | |
Three Months Ended
March 31, 2021 |
| |||||||||
| | |
Shares
|
| |
Weighted Average
Fair Value |
| ||||||
Outstanding at December 31, 2020
|
| | | | 633,057 | | | | | $ | 8.34 | | |
Granted
|
| | | | 534,144 | | | | | | 13.58 | | |
Vested
|
| | | | (640) | | | | | | 8.34 | | |
Forfeited
|
| | | | (14,118) | | | | | | 8.34 | | |
Outstanding and nonvested at March 31, 2021
|
| | | | 1,152,443 | | | | | $ | 10.77 | | |
| | |
Three Months Ended
March 31, 2021 |
| |||||||||
| | |
Shares
|
| |
Weighted Average
Fair Value |
| ||||||
Outstanding at December 31, 2020
|
| | | | 68,946 | | | | | $ | 8.34 | | |
Granted
|
| | | | — | | | | | | — | | |
Outstanding and nonvested at March 31, 2021
|
| | | | 68,946 | | | | | $ | 8.34 | | |
| | |
Unrecognized
Compensation Cost |
| |
Weighted Ave.
Remaining Recognition Period (in years) |
| ||||||
Nonvested awards
|
| | | $ | 10,401 | | | | | | 1.15 | | |
| | |
(Successor)
|
| |||
| | |
Three Months Ended
March 31, 2021 |
| |||
EPS numerator: | | | | | | | |
Net loss attributable to common shareholders
|
| | | $ | (12,025) | | |
EPS denominator: | | | | | | | |
Weighted average shares outstanding – basic
|
| | | | 38,430,742 | | |
Effect of dilutive securities
|
| | | | — | | |
Weighted average shares outstanding – diluted
|
| | | | 38,430,742 | | |
Net loss per share: | | | | | | | |
Basic
|
| | | $ | (0.31) | | |
Diluted
|
| | | $ | (0.31) | | |
| | |
Net Currency
Translation Gains (Losses) |
| |
Funded Status of
Benefit Plans |
| |
Total Accumulated
Other Comprehensive Income (Loss) |
| |||||||||
Balance at December 31, 2019 (Predecessor)
|
| | | $ | 2,885 | | | | | $ | (10,944) | | | | | $ | (8,059) | | |
Other comprehensive loss before reclassifications
|
| | | | (1,884) | | | | | | — | | | | | | (1,884) | | |
Amounts reclassified from AOCI
|
| | | | — | | | | | | 48 | | | | | | 48 | | |
Balance at March 31, 2020 (Predecessor)
|
| | | $ | 1,001 | | | | | $ | (10,896) | | | | | $ | (9,895) | | |
Balance at December 31, 2020 (Successor)
|
| | | $ | 7,774 | | | | | $ | 831 | | | | | $ | 8,605 | | |
Other comprehensive loss before reclassifications
|
| | | | (2,047) | | | | | | — | | | | | | (2,047) | | |
Amounts reclassified from AOCI
|
| | | | — | | | | | | 9 | | | | | | 9 | | |
Balance at March 31, 2021 (Successor)
|
| | | $ | 5,727 | | | | | $ | 840 | | | | | $ | 6,567 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
Three Months Ended
March 31, 2021 |
| | |
Three Months Ended
March 31, 2020 |
| ||||||
Product revenues, net | | | | | | | | | | | | | | |
Branded CPG
|
| | | $ | 81,797 | | | | | | $ | 40,219 | | |
Flavors & Ingredients
|
| | | | 24,028 | | | | | | | 25,753 | | |
Total product revenues, net
|
| | | $ | 105,825 | | | | | | $ | 65,972 | | |
Operating income (loss) | | | | | | | | | | | | | | |
Branded CPG
|
| | | $ | 10,159 | | | | | | $ | (6,755) | | |
Flavors & Ingredients
|
| | | | 972 | | | | | | | (24,010) | | |
| | | | | 11,131 | | | | | | | (30,765) | | |
Corporate
|
| | | | (14,195) | | | | | | | (2,557) | | |
Total operating income (loss)
|
| | | $ | (3,064) | | | | | | $ | (33,322) | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
Three Months Ended
March 31, 2021 |
| | |
Three Months Ended
March 31, 2020 |
| ||||||
Branded CPG: | | | | | | | | | | | | | | |
North America
|
| | | $ | 51,970 | | | | | | $ | 15,248 | | |
Europe
|
| | | | 19,414 | | | | | | | 15,970 | | |
India, Middle East and Africa
|
| | | | 2,643 | | | | | | | 2,056 | | |
Asia-Pacific
|
| | | | 5,226 | | | | | | | 4,172 | | |
Latin America
|
| | | | 2,544 | | | | | | | 2,773 | | |
Flavors & Ingredients
|
| | | | 24,028 | | | | | | | 25,753 | | |
Total product revenues, net
|
| | | $ | 105,825 | | | | | | $ | 65,972 | | |
| | | | | F-29 | | | |
| | | | | F-30 | | | |
| | | | | F-32 | | | |
| | | | | F-33 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | | |
| | | | | F-36 | | | |
| | | | | F-36 | | | |
| | | | | F-44 | | | |
| | | | | F-48 | | | |
| | | | | F-50 | | | |
| | | | | F-50 | | | |
| | | | | F-50 | | | |
| | | | | F-52 | | | |
| | | | | F-53 | | | |
| | | | | F-53 | | | |
| | | | | F-54 | | | |
| | | | | F-57 | | | |
| | | | | F-63 | | | |
| | | | | F-64 | | | |
| | | | | F-64 | | | |
| | | | | F-65 | | | |
| | | | | F-66 | | | |
| | | | | F-66 | | | |
| | | | | F-67 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
December 31, 2020
|
| | |
December 31, 2019
|
| ||||||
Assets | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 16,898 | | | | | | $ | 10,395 | | |
Accounts receivable (net of allowances of $955 and $2,832, respectively)
|
| | | | 56,423 | | | | | | | 55,031 | | |
Inventories
|
| | | | 111,699 | | | | | | | 121,129 | | |
Prepaid expenses and other current assets
|
| | | | 5,045 | | | | | | | 7,283 | | |
Total current assets
|
| | | | 190,065 | | | | | | | 193,838 | | |
Property, Plant and Equipment, net
|
| | | | 47,285 | | | | | | | 20,340 | | |
Other Assets | | | | | | | | | | | | | | |
Operating lease right-of-use assets
|
| | | | 12,193 | | | | | | | — | | |
Goodwill
|
| | | | 153,537 | | | | | | | 130,870 | | |
Other intangible assets, net
|
| | | | 184,527 | | | | | | | 251,243 | | |
Deferred tax assets, net
|
| | | | 2,671 | | | | | | | 1,368 | | |
Other assets
|
| | | | 6,260 | | | | | | | 2,192 | | |
Total Assets
|
| | | $ | 596,538 | | | | | | $ | 599,851 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
December 31, 2020
|
| | |
December 31, 2019
|
| ||||||
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 25,200 | | | | | | $ | 26,240 | | |
Accrued expenses and other current liabilities
|
| | | | 29,029 | | | | | | | 28,040 | | |
Current portion of operating lease liabilities
|
| | | | 3,623 | | | | | | | — | | |
Current portion of long-term debt
|
| | | | 7,000 | | | | | | | — | | |
Total current liabilities
|
| | | | 64,852 | | | | | | | 54,280 | | |
Non-Current Liabilities | | | | | | | | | | | | | | |
Long-term debt
|
| | | | 172,662 | | | | | | | — | | |
Due to related party
|
| | | | — | | | | | | | 8,400 | | |
Deferred tax liabilities, net
|
| | | | 23,297 | | | | | | | 31,538 | | |
Operating lease liabilities, less current portion
|
| | | | 11,324 | | | | | | | — | | |
Other liabilities
|
| | | | 15,557 | | | | | | | 17,883 | | |
Total Liabilities
|
| | | | 287,692 | | | | | | | 112,101 | | |
Commitments and Contingencies (Note 9)
|
| | | | — | | | | | | | — | | |
Stockholders’ Equity | | | | | | | | | | | | | | |
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
|
| | | | — | | | | | | | — | | |
Common stock, $0.0001 par value; 220,000,000 shares authorized; 38,426,669 shares issued and outstanding
|
| | | | 4 | | | | | | | — | | |
Additional paid-in capital
|
| | | | 325,679 | | | | | | | — | | |
Accumulated deficit
|
| | | | (25,442) | | | | | | | — | | |
Accumulated other comprehensive income
|
| | | | 8,605 | | | | | | | — | | |
Net parent investment
|
| | | | — | | | | | | | 487,750 | | |
Total stockholders’ equity
|
| | | | 308,846 | | | | | | | 487,750 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 596,538 | | | | | | $ | 599,851 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||
Product revenues, net
|
| | | $ | 147,168 | | | | | | $ | 128,328 | | | | | $ | 272,123 | | | | | $ | 290,965 | | |
Cost of goods sold
|
| | | | 101,585 | | | | | | | 77,627 | | | | | | 163,634 | | | | | | 167,874 | | |
Gross profit
|
| | | | 45,583 | | | | | | | 50,701 | | | | | | 108,489 | | | | | | 123,091 | | |
Selling, general and administrative expenses
|
| | | | 44,616 | | | | | | | 43,355 | | | | | | 65,896 | | | | | | 74,767 | | |
Amortization of intangible assets
|
| | | | 6,021 | | | | | | | 4,927 | | | | | | 10,724 | | | | | | 11,111 | | |
Asset impairment charges
|
| | | | — | | | | | | | 40,600 | | | | | | — | | | | | | — | | |
Restructuring and other expenses
|
| | | | 1,052 | | | | | | | — | | | | | | 2,193 | | | | | | 9,461 | | |
Operating (loss) income
|
| | | | (6,106) | | | | | | | (38,181) | | | | | | 29,676 | | | | | | 27,752 | | |
Interest (expense) income, net
|
| | | | (4,371) | | | | | | | (238) | | | | | | (500) | | | | | | 49 | | |
Other (expense) income, net
|
| | | | (578) | | | | | | | 801 | | | | | | (830) | | | | | | (1,648) | | |
(Loss) income before income
taxes |
| | | | (11,055) | | | | | | | (37,618) | | | | | | 28,346 | | | | | | 26,153 | | |
(Benefit) provision for income
taxes |
| | | | (2,618) | | | | | | | (3,482) | | | | | | (2,466) | | | | | | 5,312 | | |
Net (loss) income
|
| | | $ | (8,437) | | | | | | $ | (34,136) | | | | | $ | 30,812 | | | | | $ | 20,841 | | |
Net loss per share – Basic and diluted
|
| | | $ | (0.22) | | | | | | | | | | | | | | | | | | | | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||
Net (loss) income
|
| | | $ | (8,437) | | | | | | $ | (34,136) | | | | | $ | 30,812 | | | | | $ | 20,841 | | |
Other comprehensive income (loss),
net of tax: |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net change in pension benefit obligations recognized, net of taxes of $242, $65, $(2,689) and $110, respectively.
|
| | | | 831 | | | | | | | 318 | | | | | | (569) | | | | | | 729 | | |
Foreign currency translation adjustments
|
| | | | 7,774 | | | | | | | (2,286) | | | | | | (1,543) | | | | | | (782) | | |
Total other comprehensive income (loss), net of tax
|
| | | | 8,605 | | | | | | | (1,968) | | | | | | (2,112) | | | | | | (53) | | |
Comprehensive income (loss)
|
| | | $ | 168 | | | | | | $ | (36,104) | | | | | $ | 28,700 | | | | | $ | 20,788 | | |
| | |
(Predecessor)
|
| |||
| | |
Total Equity
|
| |||
Balance at January 1, 2018
|
| | |
$
|
499,136
|
| |
Funding to Parent, net
|
| | | | (35,432) | | |
Net income
|
| | | | 20,841 | | |
Other comprehensive loss, net of tax
|
| | | | (53) | | |
Balance at December 31, 2018
|
| | |
$
|
484,492
|
| |
Funding to Parent, net
|
| | | | (25,442) | | |
Net income
|
| | | | 30,812 | | |
Other comprehensive loss, net of tax
|
| | | | (2,112) | | |
Balance at December 31, 2019
|
| | |
$
|
487,750
|
| |
Funding to Parent, net
|
| | | | (11,924) | | |
Net loss
|
| | | | (34,136) | | |
Other comprehensive loss, net of tax
|
| | | | (1,968) | | |
Balance at June 25, 2020
|
| | |
$
|
439,722
|
| |
| | |
Common Stock
|
| |
Preferred Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance at June 26, 2020
|
| | | | 30,926,669 | | | | | $ | 3 | | | | | | — | | | | | $ | — | | | | | $ | 250,366 | | | | | $ | (16,703) | | | | | $ | — | | | | | $ | 233,666 | | |
Issuance of warrants
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,895 | | | | | | — | | | | | | — | | | | | | 7,895 | | |
Issuance of common stock
|
| | | | 7,500,000 | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 67,104 | | | | | | — | | | | | | — | | | | | | 67,105 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (8,437) | | | | | | — | | | | | | (8,437) | | |
Other comprehensive income, net
of tax |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,605 | | | | | | 8,605 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,262 | | | | | | — | | | | | | — | | | | | | 1,262 | | |
Other
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (948) | | | | | | (302) | | | | | | — | | | | | | (1,250) | | |
Balance at December 31, 2020 (Successor)
|
| | | | 38,426,669 | | | | | $ | 4 | | | | | | — | | | | | $ | — | | | | | $ | 325,679 | | | | | $ | (25,442) | | | | | $ | 8,605 | | | | | $ | 308,846 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020
to June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||
Operating activities | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (8,437) | | | | | | $ | (34,136) | | | | | $ | 30,812 | | | | | $ | 20,841 | | |
Adjustments to reconcile net (loss) income to net
cash provided by operating activities: |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Stock-based compensation
|
| | | | 1,262 | | | | | | | — | | | | | | — | | | | | | — | | |
Depreciation
|
| | | | 1,652 | | | | | | | 1,334 | | | | | | 3,031 | | | | | | 3,591 | | |
Amortization of intangible assets
|
| | | | 6,021 | | | | | | | 4,927 | | | | | | 10,724 | | | | | | 11,111 | | |
Deferred income taxes
|
| | | | (2,842) | | | | | | | (5,578) | | | | | | (10,500) | | | | | | (6,060) | | |
Asset impairment charges
|
| | | | — | | | | | | | 40,600 | | | | | | — | | | | | | — | | |
Pension
|
| | | | (169) | | | | | | | 126 | | | | | | (1,648) | | | | | | 1,658 | | |
Amortization of inventory fair value
adjustments |
| | | | 12,613 | | | | | | | — | | | | | | — | | | | | | — | | |
Changes in current assets and liabilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (4,554) | | | | | | | 7,726 | | | | | | 1,311 | | | | | | 2,488 | | |
Inventories
|
| | | | (5,305) | | | | | | | 3,576 | | | | | | 2,004 | | | | | | (692) | | |
Prepaid expenses and other current assets
|
| | | | (2,066) | | | | | | | 3,330 | | | | | | (3,097) | | | | | | 236 | | |
Accounts payable, accrued liabilities and income taxes
|
| | | | (7,939) | | | | | | | 507 | | | | | | (3,057) | | | | | | 269 | | |
Other, net
|
| | | | 319 | | | | | | | (2,504) | | | | | | 2,085 | | | | | | 362 | | |
Net cash (used in) provided by operating
activities |
| | | | (9,445) | | | | | | | 19,908 | | | | | | 31,665 | | | | | | 33,804 | | |
Investing activities | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital expenditures
|
| | | | (4,489) | | | | | | | (3,532) | | | | | | (4,037) | | | | | | (4,039) | | |
Acquisitions, net of cash acquired
|
| | | | (456,508) | | | | | | | — | | | | | | — | | | | | | — | | |
Proceeds from sale of fixed assets
|
| | | | — | | | | | | | — | | | | | | — | | | | | | 1,858 | | |
Transfer from trust account
|
| | | | 178,875 | | | | | | | — | | | | | | — | | | | | | — | | |
Net cash used in investing activities
|
| | | | (282,122) | | | | | | | (3,532) | | | | | | (4,037) | | | | | | (2,181) | | |
Financing activities | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from revolving credit facility
|
| | | | 47,855 | | | | | | | 3,500 | | | | | | 1,500 | | | | | | 7,500 | | |
Repayments of revolving credit facility
|
| | | | — | | | | | | | (8,500) | | | | | | — | | | | | | (600) | | |
Long-term borrowings
|
| | | | 140,000 | | | | | | | — | | | | | | — | | | | | | — | | |
Repayments of long-term borrowings
|
| | | | (3,500) | | | | | | | — | | | | | | — | | | | | | — | | |
Debt issuance costs
|
| | | | (7,139) | | | | | | | — | | | | | | — | | | | | | — | | |
Proceeds from sale of common stock and
warrants |
| | | | 75,000 | | | | | | | — | | | | | | — | | | | | | — | | |
Funding to Parent, net
|
| | | | — | | | | | | | (11,924) | | | | | | (25,442) | | | | | | (35,432) | | |
Net cash provided by (used in) financing
activities |
| | | | 252,216 | | | | | | | (16,924) | | | | | | (23,942) | | | | | | (28,532) | | |
Effect of exchange rate changes on cash and cash equivalents
|
| | | | 714 | | | | | | | 215 | | | | | | (496) | | | | | | (24) | | |
Net change in cash and cash equivalents
|
| | | | (38,637) | | | | | | | (333) | | | | | | 3,190 | | | | | | 3,067 | | |
Cash and cash equivalents, beginning of period
|
| | | | 55,535 | | | | | | | 10,395 | | | | | | 7,205 | | | | | | 4,138 | | |
Cash and cash equivalents, end of period
|
| | | $ | 16,898 | | | | | | $ | 10,062 | | | | | $ | 10,395 | | | | | $ | 7,205 | | |
Supplemental disclosure of cash flow information | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest paid
|
| | | $ | 3,328 | | | | | | $ | 798 | | | | | $ | — | | | | | $ | — | | |
Taxes paid, net of refunds
|
| | | $ | 3,091 | | | | | | $ | 2,244 | | | | | $ | 4,571 | | | | | $ | 5,175 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||
Sweeteners and adjacencies
|
| | | $ | 96,857 | | | | | | $ | 80,749 | | | | | $ | 165,863 | | | | | $ | 173,759 | | |
Licorice products
|
| | | | 50,311 | | | | | | | 47,579 | | | | | | 106,260 | | | | | | 117,206 | | |
Total product revenues, net
|
| | | $ | 147,168 | | | | | | $ | 128,328 | | | | | $ | 272,123 | | | | | $ | 290,965 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||
Branded CPG: | | | | | | | | | | | | | | | | | | | | | | | | | | |
North America
|
| | | $ | 40,273 | | | | | | $ | 29,926 | | | | | $ | 59,945 | | | | | $ | 59,007 | | |
Europe, Middle East and Africa
|
| | | | 41,855 | | | | | | | 35,360 | | | | | | 75,974 | | | | | | 81,978 | | |
Asia-Pacific
|
| | | | 8,428 | | | | | | | 9,584 | | | | | | 17,772 | | | | | | 17,035 | | |
Latin America
|
| | | | 6,301 | | | | | | | 5,879 | | | | | | 12,172 | | | | | | 15,739 | | |
Flavors & Ingredients
|
| | | | 50,311 | | | | | | | 47,579 | | | | | | 106,260 | | | | | | 117,206 | | |
Total product revenues, net
|
| | | $ | 147,168 | | | | | | $ | 128,328 | | | | | $ | 272,123 | | | | | $ | 290,965 | | |
|
Base cash consideration
|
| | | $ | 387,500 | | |
|
Closing adjustment
|
| | | | (764) | | |
|
Total Purchase Price
|
| | | $ | 386,736 | | |
|
Cash and cash equivalents
|
| | | $ | 10,062 | | |
|
Accounts receivable
|
| | | | 45,769 | | |
|
Inventories
|
| | | | 106,436 | | |
|
Prepaid expenses and other current assets
|
| | | | 2,461 | | |
|
Property, plant and equipment, net
|
| | | | 43,554 | | |
|
Operating lease right-of-use assets
|
| | | | 12,541 | | |
|
Intangible assets
|
| | | | 148,750 | | |
|
Deferred tax assets, net
|
| | | | 1,065 | | |
|
Other assets
|
| | | | 1,398 | | |
|
Total assets acquired
|
| | | | 372,036 | | |
|
Accounts payable
|
| | | | 18,590 | | |
|
Accrued expenses and other current liabilities
|
| | | | 35,063 | | |
|
Current portion of operating lease liabilities
|
| | | | 3,007 | | |
|
Operating lease liabilities, less current portion
|
| | | | 12,208 | | |
|
Deferred tax liabilities, net
|
| | | | 23,167 | | |
|
Other liabilities
|
| | | | 15,467 | | |
|
Total liabilities assumed
|
| | | | 107,502 | | |
|
Net assets acquired
|
| | | | 264,534 | | |
|
Goodwill
|
| | | | 122,202 | | |
|
Total Purchase Price
|
| | | $ | 386,736 | | |
Identifiable intangible assets
|
| |
Fair Value
(in thousands) |
| |
Useful life
(in Years) |
| |||
Customer relationships
|
| | | $ | 47,359 | | | |
0.5 to 10
|
|
Tradenames
|
| | | | 90,691 | | | |
25
|
|
Product formulations
|
| | | | 10,700 | | | |
Indefinite
|
|
| | | | $ | 148,750 | | | | | |
|
Base cash consideration
|
| | | $ | 80,000 | | |
|
Closing adjustment estimate
|
| | | | (1,046) | | |
|
Total Purchase Price
|
| | | $ | 78,954 | | |
|
Accounts receivable
|
| | | $ | 3,223 | | |
|
Inventories
|
| | | | 6,824 | | |
|
Prepaid expenses and other current assets
|
| | | | 223 | | |
|
Property, plant and equipment, net
|
| | | | 143 | | |
|
Operating lease right-of-use assets
|
| | | | 76 | | |
|
Intangible assets
|
| | | | 36,300 | | |
|
Other assets
|
| | | | 3 | | |
|
Total assets acquired
|
| | | | 46,792 | | |
|
Accounts payable
|
| | | | 3,477 | | |
|
Accrued expenses and other current liabilities
|
| | | | 288 | | |
|
Current portion of operating lease liabilities
|
| | | | 48 | | |
|
Operating lease liabilities, less current portion
|
| | | | 28 | | |
|
Total liabilities assumed
|
| | | | 3,841 | | |
|
Net assets acquired
|
| | | | 42,951 | | |
|
Goodwill
|
| | | | 36,003 | | |
|
Total Purchase Price
|
| | | $ | 78,954 | | |
Identifiable intangible assets
|
| |
Fair Value
(in thousands) |
| |
Useful life
(in Years) |
| ||||||
Customer relationships
|
| | | $ | 3,200 | | | | | | 10 | | |
Tradenames
|
| | | | 33,100 | | | | | | 25 | | |
| | | | $ | 36,300 | | | | | | | | |
| | |
Pro Forma
Statements of Operations |
| |||||||||
| | |
Year Ended
|
| |||||||||
| | |
December 31, 2020
|
| |
December 31, 2019
|
| ||||||
Revenue
|
| | | $ | 305,544 | | | | | $ | 302,991 | | |
Net loss(1)
|
| | | $ | (18,729) | | | | | $ | (5,705) | | |
|
2021
|
| | | $ | 4,119 | | |
|
2022
|
| | | | 3,611 | | |
|
2023
|
| | | | 3,512 | | |
|
2024
|
| | | | 1,919 | | |
|
2025
|
| | | | 1,417 | | |
|
Thereafter
|
| | | | 1,546 | | |
|
Total lease payments
|
| | | | 16,124 | | |
|
Less: imputed interest
|
| | | | (1,177) | | |
|
Total operating lease liabilities
|
| | | $ | 14,947 | | |
|
2020
|
| | | $ | 3,224 | | |
|
2021
|
| | | | 2,845 | | |
|
2022
|
| | | | 2,608 | | |
|
2023
|
| | | | 2,354 | | |
|
2024
|
| | | | 968 | | |
|
Thereafter
|
| | | | 2,195 | | |
|
Less: sublease rental income
|
| | | | (3,683) | | |
|
Total
|
| | | $ | 10,511 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
December 31, 2020
|
| | |
December 31, 2019
|
| ||||||
Raw materials and supplies
|
| | | $ | 66,487 | | | | | | $ | 89,611 | | |
Work in process
|
| | | | 562 | | | | | | | 387 | | |
Finished goods
|
| | | | 44,650 | | | | | | | 31,131 | | |
Total inventories
|
| | | $ | 111,699 | | | | | | $ | 121,129 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
December 31, 2020
|
| | |
December 31, 2019
|
| ||||||
Machinery, equipment and other
|
| | | $ | 14,108 | | | | | | $ | 49,901 | | |
Buildings and building improvements
|
| | | | 20,247 | | | | | | | 23,207 | | |
| | | | | 34,355 | | | | | | | 73,108 | | |
Accumulated depreciation
|
| | | | (1,833) | | | | | | | (55,538) | | |
| | | | | 32,522 | | | | | | | 17,570 | | |
Land
|
| | | | 9,670 | | | | | | | 1,908 | | |
Construction in progress
|
| | | | 5,093 | | | | | | | 862 | | |
Property, plant and equipment, net
|
| | | $ | 47,285 | | | | | | $ | 20,340 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||||||||||||||
| | |
December 31, 2020
|
| | |
December 31, 2019
|
| ||||||||||||||||||||||||||||||
| | |
Gross
|
| |
Accumulated
Amortization |
| |
Net
|
| | |
Gross
|
| |
Accumulated
Amortization |
| |
Net
|
| ||||||||||||||||||
Other intangible assets subject to amortization
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Customer relationships (useful life of 5 to
10 years) |
| | | $ | 50,877 | | | | | $ | (3,020) | | | | | $ | 47,857 | | | | | | $ | 105,000 | | | | | $ | (38,731) | | | | | $ | 66,269 | | |
Tradenames (useful life of 25 years)
|
| | | | 128,155 | | | | | | (2,185) | | | | | | 125,970 | | | | | | | 95,055 | | | | | | (19,939) | | | | | | 75,116 | | |
Total
|
| | | $ | 179,032 | | | | | $ | (5,205) | | | | | $ | 173,827 | | | | | | $ | 200,055 | | | | | $ | (58,670) | | | | | $ | 141,385 | | |
Other intangible assets not subject to amortization
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product formulations
|
| | | | | | | | | | | | | | | | 10,700 | | | | | | | | | | | | | | | | | | | 109,858 | | |
Total other intangible assets, net
|
| | | | | | | | | | | | | | | | 184,527 | | | | | | | | | | | | | | | | | | | 251,243 | | |
Goodwill
|
| | | | | | | | | | | | | | | | 153,537 | | | | | | | | | | | | | | | | | | | 130,870 | | |
Total goodwill and other intangible
assets |
| | | | | | | | | | | | | | | $ | 338,064 | | | | | | | | | | | | | | | | | | $ | 382,113 | | |
|
2021
|
| | | $ | 11,195 | | |
|
2022
|
| | | | 11,195 | | |
|
2023
|
| | | | 11,195 | | |
|
2024
|
| | | | 11,195 | | |
|
2025
|
| | | | 10,961 | | |
| | |
Branded CPG
|
| |
Flavors &
Ingredients |
| |
Total
|
| |||||||||
Balance as of December 31, 2019 and 2018 (Predecessor)
|
| | | $ | 88,849 | | | | | $ | 42,021 | | | | | $ | 130,870 | | |
Impairment
|
| | | | (11,100) | | | | | | (6,600) | | | | | | (17,700) | | |
Balance at June 25, 2020 (Predecessor)
|
| | | $ | 77,749 | | | | | $ | 35,421 | | | | | $ | 113,170 | | |
Purchase accounting adjustments
|
| | | | 40,779 | | | | | | (31,747) | | | | | | 9,032 | | |
Balance at June 26, 2020 (Successor)
|
| | | $ | 118,528 | | | | | $ | 3,674 | | | | | $ | 122,202 | | |
Acquisition of Swerve
|
| | | | 36,003 | | | | | | — | | | | | | 36,003 | | |
Currency translation adjustment
|
| | | | (4,208) | | | | | | (460) | | | | | | (4,668) | | |
Balance at December 31, 2020 (Successor)
|
| | | $ | 150,323 | | | | | $ | 3,214 | | | | | $ | 153,537 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
December 31, 2020
|
| | |
December 31, 2019
|
| ||||||
Term loan
|
| | | $ | 136,500 | | | | | | $ | — | | |
Revolving credit facility
|
| | | | 47,855 | | | | | | | — | | |
Less: current portion
|
| | | | (7,000) | | | | | | | — | | |
Less: unamortized debt issuance costs
|
| | | | (4,693) | | | | | | | — | | |
Total long-term debt
|
| | | $ | 172,662 | | | | | | $ | — | | |
|
2021
|
| | | $ | 7,000 | | |
|
2022
|
| | | | 7,000 | | |
|
2023
|
| | | | 10,500 | | |
|
2024
|
| | | | 14,000 | | |
|
2025
|
| | | | 145,855 | | |
|
Total debt
|
| | | | 184,355 | | |
|
Unamortized discounts
|
| | | | (4,693) | | |
|
Total debt, net of unamortized discounts
|
| | | $ | 179,662 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||
Current: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | (969) | | | | | | $ | 51 | | | | | $ | 1,972 | | | | | $ | 4,789 | | |
State and local
|
| | | | 54 | | | | | | | 16 | | | | | | 197 | | | | | | 134 | | |
Foreign
|
| | | | 1,139 | | | | | | | 2,029 | | | | | | 5,865 | | | | | | 6,449 | | |
| | | | | 224 | | | | | | | 2,096 | | | | | | 8,034 | | | | | | 11,372 | | |
Deferred: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | | (2,192) | | | | | | | (4,262) | | | | | | (1,802) | | | | | | (5,148) | | |
State and local
|
| | | | 138 | | | | | | | (259) | | | | | | 336 | | | | | | (1,006) | | |
Foreign
|
| | | | (788) | | | | | | | (1,057) | | | | | | (9,034) | | | | | | 94 | | |
| | | | | (2,842) | | | | | | | (5,578) | | | | | | (10,500) | | | | | | (6,060) | | |
Total (benefit) provision for income taxes
|
| | | $ | (2,618) | | | | | | $ | (3,482) | | | | | $ | (2,466) | | | | | $ | 5,312 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||
(Loss) income before income taxes:
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Domestic
|
| | | $ | (18,981) | | | | | | $ | (49,477) | | | | | $ | 10,859 | | | | | $ | (6,021) | | |
Foreign
|
| | | | 7,926 | | | | | | | 11,859 | | | | | | 17,487 | | | | | | 32,174 | | |
Total (loss) income before income taxes
|
| | | $ | (11,055) | | | | | | $ | (37,618) | | | | | $ | 28,346 | | | | | $ | 26,153 | | |
Federal income tax rate
|
| | | | 21.0% | | | | | | | 21.0% | | | | | | 21.0% | | | | | | 21.0% | | |
Tax provision at federal statutory rate
|
| | | $ | (2,322) | | | | | | $ | (7,900) | | | | | $ | 5,953 | | | | | $ | 5,492 | | |
State and local taxes
|
| | | | 1,812 | | | | | | | (278) | | | | | | 426 | | | | | | (879) | | |
Foreign rate differential
|
| | | | (70) | | | | | | | (125) | | | | | | 789 | | | | | | 1,533 | | |
Change in tax rates
|
| | | | 735 | | | | | | | — | | | | | | (2,209) | | | | | | (53) | | |
Changes in uncertain tax
positions |
| | | | 40 | | | | | | | (651) | | | | | | 64 | | | | | | (100) | | |
Change in valuation allowance
|
| | | | (1,474) | | | | | | | 883 | | | | | | 588 | | | | | | (1,957) | | |
Goodwill impairment
|
| | | | — | | | | | | | 3,717 | | | | | | — | | | | | | — | | |
Impact of Luxembourg restructuring
|
| | | | — | | | | | | | — | | | | | | (6,438) | | | | | | — | | |
U.S. effects of international operations
|
| | | | 320 | | | | | | | 2,084 | | | | | | 3,079 | | | | | | 6,136 | | |
Tax credits
|
| | | | (2,161) | | | | | | | (1,201) | | | | | | (5,233) | | | | | | (5,498) | | |
Other
|
| | | | 502 | | | | | | | (11) | | | | | | 515 | | | | | | 638 | | |
Total (benefit) provision for income
taxes |
| | | $ | (2,618) | | | | | | $ | (3,482) | | | | | $ | (2,466) | | | | | $ | 5,312 | | |
Effective tax rate
|
| | | | 23.7% | | | | | | | 9.3% | | | | | | (8.7)% | | | | | | 20.3% | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
December 31, 2020
|
| | |
December 31, 2019
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | | |
Accounts receivable
|
| | | $ | 473 | | | | | | $ | 695 | | |
Accrued expenses
|
| | | | 3,838 | | | | | | | 2,065 | | |
Inventory
|
| | | | 5,231 | | | | | | | 4,102 | | |
Other assets
|
| | | | 160 | | | | | | | 1,008 | | |
Deferred rent
|
| | | | — | | | | | | | 427 | | |
Pension asset
|
| | | | 348 | | | | | | | 1,783 | | |
Property, plant and equipment
|
| | | | — | | | | | | | 864 | | |
Lease accounting
|
| | | | 3,360 | | | | | | | — | | |
U.S. and foreign net operating losses
|
| | | | 13,998 | | | | | | | 15,014 | | |
Tax credits
|
| | | | 254 | | | | | | | 2,345 | | |
Total deferred tax assets
|
| | | | 27,662 | | | | | | | 28,303 | | |
Less valuation allowance
|
| | | | (9,879) | | | | | | | (12,409) | | |
Net deferred tax assets
|
| | | $ | 17,783 | | | | | | $ | 15,894 | | |
Deferred tax liabilities: | | | | | | | | | | | | | | |
Property, plant and equipment
|
| | | | (4,678) | | | | | | | — | | |
Operating lease right-of-use asset
|
| | | | (2,747) | | | | | | | — | | |
Intangible assets
|
| | | | (24,266) | | | | | | | (38,451) | | |
Deferred rent
|
| | | | (78) | | | | | | | — | | |
Unremitted earnings
|
| | | | (719) | | | | | | | (1,207) | | |
Other liabilities
|
| | | | (5,921) | | | | | | | (6,406) | | |
Total deferred tax liabilities
|
| | | | (38,409) | | | | | | | (46,064) | | |
Net deferred tax liability
|
| | | $ | (20,626) | | | | | | $ | (30,170) | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |||||||||
Beginning of period
|
| | | $ | 539 | | | | | | $ | 895 | | | | | $ | 986 | | |
Settlements
|
| | | | — | | | | | | | (291) | | | | | | (92) | | |
Currency differences
|
| | | | 70 | | | | | | | (65) | | | | | | 1 | | |
End of period
|
| | | $ | 609 | | | | | | $ | 539 | | | | | $ | 895 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |||||||||
Accumulated benefit obligations
|
| | | $ | 41,112 | | | | | | $ | 39,792 | | | | | $ | 37,847 | | |
Changes in projected benefit obligations: | | | | | | | | | | | | | | | | | | | | |
Projected benefit obligations at beginning of year
|
| | | $ | 39,879 | | | | | | $ | 37,854 | | | | | $ | 34,000 | | |
Service cost
|
| | | | 94 | | | | | | | 41 | | | | | | 692 | | |
Interest cost
|
| | | | 545 | | | | | | | 593 | | | | | | 1,410 | | |
Actuarial loss
|
| | | | 1,568 | | | | | | | 1,826 | | | | | | 5,236 | | |
Benefits paid
|
| | | | (974) | | | | | | | (435) | | | | | | (1,019) | | |
Liability gain due to curtailment
|
| | | | — | | | | | | | — | | | | | | (2,465) | | |
Projected benefit obligations at end of year
|
| | | | 41,112 | | | | | | | 39,879 | | | | | | 37,854 | | |
Change in plans’ assets: | | | | | | | | | | | | | | | | | | | | |
Fair value of plans’ assets at beginning of year
|
| | | | 30,674 | | | | | | | 30,213 | | | | | | 25,800 | | |
Actual returns on plans’ assets
|
| | | | 3,195 | | | | | | | 732 | | | | | | 5,112 | | |
Employee contributions
|
| | | | 163 | | | | | | | 163 | | | | | | 320 | | |
Benefits paid
|
| | | | (974) | | | | | | | (434) | | | | | | (1,019) | | |
Fair value of plans’ assets at end of
year |
| | | | 33,058 | | | | | | | 30,674 | | | | | | 30,213 | | |
Net pension liability
|
| | | $ | (8,054) | | | | | | $ | (9,205) | | | | | $ | (7,641) | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |||||||||
Other assets
|
| | | $ | 2,238 | | | | | | $ | 512 | | | | | $ | 1,375 | | |
Accrued expenses and other current liabilities
|
| | | | (374) | | | | | | | (373) | | | | | | (370) | | |
Other liabilities
|
| | | | (9,918) | | | | | | | (9,344) | | | | | | (8,646) | | |
Net amount recognized
|
| | | $ | (8,054) | | | | | | $ | (9,205) | | | | | $ | (7,641) | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |||||||||
Prior service cost
|
| | | $ | — | | | | | | $ | 169 | | | | | $ | 201 | | |
Net actuarial (gain) loss
|
| | | | (620) | | | | | | | 13,997 | | | | | | 12,362 | | |
| | | | $ | (620) | | | | | | $ | 14,166 | | | | | $ | 12,563 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |||||||||
Net actuarial (gain) loss
|
| | | $ | — | | | | | | $ | 1,912 | | | | | $ | (879) | | |
Prior service credit
|
| | | | — | | | | | | | — | | | | | | (316) | | |
Amortization of prior service costs
|
| | | | — | | | | | | | (33) | | | | | | (149) | | |
Amortization of actuarial loss
|
| | | | — | | | | | | | (276) | | | | | | (1,332) | | |
Total (gain) loss recognized in other comprehensive
income |
| | | $ | — | | | | | | $ | 1,603 | | | | | $ | (2,676) | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020
to June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||
Service cost
|
| | | $ | 94 | | | | | | $ | 41 | | | | | $ | 692 | | | | | $ | 864 | | |
Interest cost
|
| | | | 545 | | | | | | | 593 | | | | | | 1,410 | | | | | | 1,320 | | |
Expected return on plan assets
|
| | | | (783) | | | | | | | (817) | | | | | | (1,462) | | | | | | (1,507) | | |
Amortization of prior service cost
|
| | | | — | | | | | | | 33 | | | | | | 149 | | | | | | 149 | | |
Amortization of net actuarial loss
|
| | | | — | | | | | | | 276 | | | | | | 1,332 | | | | | | 1,344 | | |
Settlement/curtailment expense
|
| | | | (25) | | | | | | | — | | | | | | 317 | | | | | | — | | |
Net periodic benefit (credit) cost
|
| | | $ | (169) | | | | | | $ | 126 | | | | | $ | 2,438 | | | | | $ | 2,170 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||
Cost of Goods Sold
|
| | | $ | — | | | | | | $ | — | | | | | $ | 614 | | | | | $ | 500 | | |
Selling, general and administrative expense
|
| | | | 69 | | | | | | | 41 | | | | | | 1,824 | | | | | | 1,670 | | |
Other (expense) income, net
|
| | | | (238) | | | | | | | 85 | | | | | | — | | | | | | — | | |
Net periodic benefit (credit) cost
|
| | | $ | (169) | | | | | | $ | 126 | | | | | $ | 2,438 | | | | | $ | 2,170 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |||||||||
Weighted-average assumptions used to determine benefit obligation at year end:
|
| | | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 2.61% | | | | | | | 2.85% | | | | | | 3.25% | | |
Weighted-average assumptions used to determine net periodic benefit cost:
|
| | | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 2.85% | | | | | | | 3.25% | | | | | | 4.25% | | |
Expected long-term rate of return on plan
assets |
| | | | 5.25% | | | | | | | 5.50% | | | | | | 5.75% | | |
Rate of compensation increase
|
| | | | —% | | | | | | | —% | | | | | | 3.50% | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020
to June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |||||||||
Weighted-average assumptions used to determine benefit obligation at year end:
|
| | | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 2.42% | | | | | | | 2.64% | | | | | | 3.25% | | |
Rate of compensation increase
|
| | | | 3.50% | | | | | | | 3.50% | | | | | | 3.50% | | |
Weighted-average assumptions used to determine net periodic benefit cost:
|
| | | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 2.64% | | | | | | | 3.25% | | | | | | 4.25% | | |
Rate of compensation increase
|
| | | | 3.50% | | | | | | | 3.50% | | | | | | 3.50% | | |
| | |
Target Ranges
|
|
Asset classes: | | | | |
Cash equivalents and other
|
| |
0% – 17%
|
|
Fixed income securities
|
| |
45% – 100%
|
|
Equity securities
|
| |
0% – 28%
|
|
| | |
Pension Plan Assets as of December 31, 2020
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Pension plan assets measured at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 419 | | | | | $ | — | | | | | $ | — | | | | | $ | 419 | | |
Mutual funds
|
| | | | 5,374 | | | | | | 442 | | | | | | — | | | | | | 5,816 | | |
U.S. Government securities
|
| | | | — | | | | | | 3,087 | | | | | | — | | | | | | 3,087 | | |
Municipal/provincial bonds
|
| | | | — | | | | | | 296 | | | | | | — | | | | | | 296 | | |
Corporate bonds
|
| | | | — | | | | | | 13,408 | | | | | | — | | | | | | 13,408 | | |
Total pension plan assets measured at fair value
|
| | | $ | 5,793 | | | | | $ | 17,233 | | | | | $ | — | | | | | $ | 23,026 | | |
Pension plan assets measured at NAV as a practical
expedient(1) |
| | | | | | | | | | | | | | | | | | | | | | 10,032 | | |
Total pension plan assets
|
| | | | | | | | | | | | | | | | | | | | | $ | 33,058 | | |
| | |
Pension Plan Assets as of December 31, 2019
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Pension plan assets measured at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 398 | | | | | $ | — | | | | | $ | — | | | | | $ | 398 | | |
Mutual funds
|
| | | | 4,996 | | | | | | 457 | | | | | | — | | | | | | 5,453 | | |
U.S. Government securities
|
| | | | — | | | | | | 2,697 | | | | | | — | | | | | | 2,697 | | |
Municipal/provincial bonds
|
| | | | — | | | | | | 322 | | | | | | — | | | | | | 322 | | |
Corporate bonds
|
| | | | — | | | | | | 12,578 | | | | | | — | | | | | | 12,578 | | |
Total pension plan assets measured at fair value
|
| | | $ | 5,394 | | | | | $ | 16,054 | | | | | $ | — | | | | | | 21,448 | | |
Pension plan assets measured at NAV as a practical expedient(1)
|
| | | | | | | | | | | | | | | | | | | | | | 8,765 | | |
Total pension plan assets
|
| | | | | | | | | | | | | | | | | | | | | $ | 30,213 | | |
| | |
Qualified
Pension Plan |
| |
Non-qualified
Pension Plans |
| ||||||
2021
|
| | | $ | 968 | | | | | $ | 374 | | |
2022
|
| | | | 1,090 | | | | | | 387 | | |
2023
|
| | | | 1,235 | | | | | | 502 | | |
2024
|
| | | | 1,495 | | | | | | 511 | | |
2025
|
| | | | 1,233 | | | | | | 517 | | |
2026 – 2030
|
| | | | 7,233 | | | | | | 2,920 | | |
| | |
Shares
|
| |
Weighted Average
Fair Value |
| |
Weighted Avg.
Remaining Contractual Term (in years) |
| |||||||||
Outstanding at June 26, 2020
|
| | | | — | | | | | $ | — | | | | | | — | | |
Granted
|
| | | | 710,045 | | | | | | 8.34 | | | | | | | | |
Forfeited
|
| | | | (76,988) | | | | | | 8.34 | | | | | | | | |
Outstanding and nonvested at December 31, 2020
|
| | | | 633,057 | | | | | $ | 8.34 | | | | | | 0.88 | | |
| | |
Shares
|
| |
Weighted Average
Fair Value |
| |
Weighted Avg.
Remaining Contractual Term (in years) |
| |||||||||
Outstanding at June 26, 2020
|
| | | | — | | | | | $ | — | | | | | | — | | |
Granted
|
| | | | 68,946 | | | | | | 8.34 | | | | | | | | |
Outstanding and nonvested at December 31, 2020
|
| | | | 68,946 | | | | | $ | 8.34 | | | | | | 1.33 | | |
| | |
Unrecognized
Compensation Cost |
| |
Weighted Avg.
Remaining Recognition Period (in years) |
| ||||||
Nonvested awards
|
| | | $ | 4,593 | | | | | | 0.93 | | |
| | |
Successor
|
| |||
| | |
From June 26, 2020 to
December 31, 2020 |
| |||
EPS numerator: | | | | | | | |
Net loss attributable to common shareholders
|
| | | $ | (8,437) | | |
EPS denominator: | | | | | | | |
Weighted average shares outstanding – basic
|
| | | | 38,426,669 | | |
Effect of dilutive securities
|
| | | | — | | |
Weighted average shares outstanding – diluted
|
| | | | 38,426,669 | | |
Net loss per share: | | | | | | | |
Basic
|
| | | $ | (0.22) | | |
Diluted
|
| | | $ | (0.22) | | |
| | |
Net Currency
Translation Gains (Losses) |
| |
Funded
Status of Benefit Plans |
| |
Total
Accumulated Other Comprehensive Income (Loss) |
| |||||||||
Balance at December 31, 2018 (Predecessor)
|
| | | $ | 4,428 | | | | | $ | (10,375) | | | | | $ | (5,947) | | |
Other comprehensive loss before reclassifications
|
| | | | (1,543) | | | | | | 1,568 | | | | | | 25 | | |
Adoption of ASU 2018-02
|
| | | | — | | | | | | (2,137) | | | | | | (2,137) | | |
Balance at December 31, 2019 (Predecessor)
|
| | | | 2,885 | | | | | | (10,944) | | | | | | (8,059) | | |
Other comprehensive loss before reclassifications
|
| | | | (2,286) | | | | | | — | | | | | | (2,286) | | |
Amounts reclassified from AOCI
|
| | | | — | | | | | | 318 | | | | | | 318 | | |
Balance at June 25, 2020 (Predecessor)
|
| | | | 599 | | | | | | (10,626) | | | | | | (10,027) | | |
Purchase accounting adjustments to eliminate Predecessor’s accumulated other comprehensive (loss) income
|
| | | | (599) | | | | | | 10,626 | | | | | | 10,027 | | |
Balance at June 26, 2020 (Successor)
|
| | | | — | | | | | | — | | | | | | — | | |
Other comprehensive income before reclassifications
|
| | | | 7,774 | | | | | | 856 | | | | | | 8,630 | | |
Amounts reclassified from AOCI
|
| | | | — | | | | | | (25) | | | | | | (25) | | |
Balance December 31, 2020 (Successor)
|
| | | $ | 7,774 | | | | | $ | 831 | | | | | $ | 8,605 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||
Product revenues, net | | | | | | | | | | | | | | | | | | | | | | | | | | |
Branded CPG
|
| | | $ | 96,857 | | | | | | $ | 80,749 | | | | | $ | 165,863 | | | | | $ | 173,759 | | |
Flavors & Ingredients
|
| | | | 50,311 | | | | | | | 47,579 | | | | | | 106,260 | | | | | | 117,206 | | |
Total product revenues, net
|
| | | $ | 147,168 | | | | | | $ | 128,328 | | | | | $ | 272,123 | | | | | $ | 290,965 | | |
Operating income (loss) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Branded CPG
|
| | | $ | (3,461) | | | | | | $ | (14,463) | | | | | $ | 10,280 | | | | | $ | 8,283 | | |
Flavors & Ingredients
|
| | | | (2,645) | | | | | | | (23,718) | | | | | | 19,396 | | | | | | 19,469 | | |
Total operating (loss) income
|
| | | $ | (6,106) | | | | | | $ | (38,181) | | | | | $ | 29,676 | | | | | $ | 27,752 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||||||||||||||
| | |
From June 26, 2020 to
December 31, 2020 |
| | |
From January 1, 2020 to
June 25, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||||||||
North America
|
| | | $ | 63,386 | | | | | | $ | 54,253 | | | | | $ | 104,788 | | | | | $ | 103,803 | | |
Europe, Middle East and Africa
|
| | | | 52,348 | | | | | | | 46,479 | | | | | | 105,546 | | | | | | 119,456 | | |
Asia-Pacific
|
| | | | 24,606 | | | | | | | 21,090 | | | | | | 47,695 | | | | | | 48,889 | | |
Latin America
|
| | | | 6,828 | | | | | | | 6,506 | | | | | | 14,094 | | | | | | 18,817 | | |
Total product revenues, net
|
| | | $ | 147,168 | | | | | | $ | 128,328 | | | | | $ | 272,123 | | | | | $ | 290,965 | | |
| | |
(Successor)
|
| | |
(Predecessor)
|
| ||||||
| | |
Year Ended
December 31, 2020 |
| | |
Year Ended
December 31, 2019 |
| ||||||
Long-Lived Assets* | | | | | | | | | | | | | | |
United States
|
| | | $ | 14,798 | | | | | | $ | 7,787 | | |
China
|
| | | | 14,207 | | | | | | | 5,296 | | |
Czech Republic
|
| | | | 6,070 | | | | | | | 3,278 | | |
France
|
| | | | 11,076 | | | | | | | 3,144 | | |
Other Foreign Countries
|
| | | | 1,134 | | | | | | | 835 | | |
Total
|
| | | $ | 47,285 | | | | | | $ | 20,340 | | |
| | | | | F-70 | | | |
| Combined Financial Statements | | | | | | | |
| | | | | F-71 | | | |
| | | | | F-72 | | | |
| | | | | F-73 | | | |
| | | | | F-74 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS: | | | | | | | | | | | | | |
Cash
|
| | | $ | 1,731,358 | | | | | $ | 264,008 | | |
Accounts receivable
|
| | | | 1,383,683 | | | | | | 697,458 | | |
Inventories, net
|
| | | | 6,589,450 | | | | | | 6,324,892 | | |
Prepaid expenses and other current assets
|
| | | | 183,622 | | | | | | 56,117 | | |
Total current assets
|
| | | | 9,888,113 | | | | | | 7,342,475 | | |
Property and equipment, net of accumulated depreciation and amortization of
$322,197 and $235,213 as of 2019 and 2018, respectively |
| | | | 201,879 | | | | | | 285,555 | | |
Other assets
|
| | | | 45,334 | | | | | | 45,334 | | |
TOTAL ASSETS
|
| | | $ | 10,135,326 | | | | | $ | 7,673,364 | | |
LIABILITIES AND MEMBER’S EQUITY | | | | | | | | | | | | | |
CURRENT LIABILITIES: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 1,657,689 | | | | | $ | 2,016,939 | | |
Accrued liabilities
|
| | | | 107,516 | | | | | | — | | |
Lines of credit
|
| | | | — | | | | | | 600,000 | | |
Total current liabilities
|
| | | | 1,765,205 | | | | | | 2,616,939 | | |
MEMBER’S EQUITY
|
| | | | 8,370,121 | | | | | | 5,056,425 | | |
TOTAL LIABILITIES AND MEMBER’S EQUITY
|
| | | $ | 10,135,326 | | | | | $ | 7,673,364 | | |
| | |
Years Ended December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Product revenues, net
|
| | | $ | 31,434,219 | | | | | $ | 18,016,227 | | |
Cost of goods sold
|
| | | | 20,537,255 | | | | | | 11,660,951 | | |
Gross profit
|
| | | | 10,896,964 | | | | | | 6,355,276 | | |
Operating expenses: | | | | | | | | | | | | | |
Sales and marketing expenses
|
| | | | 2,588,467 | | | | | | 1,251,404 | | |
Other operating expenses
|
| | | | 2,110,027 | | | | | | 1,391,957 | | |
Total operating expenses
|
| | | | 4,698,494 | | | | | | 2,643,361 | | |
Income from operations
|
| | | | 6,198,470 | | | | | | 3,711,915 | | |
Non-operating expenses, net
|
| | | | 284,774 | | | | | | 7,601 | | |
Net income
|
| | | $ | 5,913,696 | | | | | $ | 3,704,314 | | |
Member’s equity, beginning of year
|
| | | $ | 5,056,425 | | | | | $ | 1,752,111 | | |
Return of capital contributions, net
|
| | | | (2,600,000) | | | | | | (400,000) | | |
Member’s equity, end of year
|
| | | $ | 8,370,121 | | | | | $ | 5,056,425 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net income
|
| | | $ | 5,913,696 | | | | | $ | 3,704,314 | | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 87,777 | | | | | | 65,166 | | |
Inventory reserve
|
| | | | 207,360 | | | | | | — | | |
Changes in operating accounts:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (686,225) | | | | | | (356,423) | | |
Inventories
|
| | | | (471,918) | | | | | | (5,006,023) | | |
Prepaid expenses and other current assets
|
| | | | (127,505) | | | | | | 62,646 | | |
Accounts payable and accrued liabilities
|
| | | | (251,734) | | | | | | 1,435,680 | | |
Net Cash Flows Provided by (Used in) Operating Activities
|
| | | | 4,671,451 | | | | | | (94,640) | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Capital expenditures
|
| | | | (4,101) | | | | | | (16,527) | | |
Acquisition of intangible assets
|
| | | | — | | | | | | (40,000) | | |
Net Cash Flows Used in Investing Activities
|
| | | | (4,101) | | | | | | (56,527) | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Advances from lines of credit
|
| | | | 2,900,000 | | | | | | 1,300,000 | | |
Payments on lines of credit
|
| | | | (3,500,000) | | | | | | (700,000) | | |
Capital contributions
|
| | | | 500,000 | | | | | | 300,000 | | |
Return of capital contributions
|
| | | | (3,100,000) | | | | | | (700,000) | | |
Net Cash Flows (Used in) Provided by Financing Activities
|
| | | | (3,200,000) | | | | | | 200,000 | | |
Net change in cash
|
| | | | 1,467,350 | | | | | | 48,833 | | |
Cash – beginning of year
|
| | |
|
264,008
|
| | | |
|
215,175
|
| |
Cash – end of year
|
| | | $ | 1,731,358 | | | | | $ | 264,008 | | |
SUPPLEMENTAL DISCLOSURE OF CASH PAID | | | | | | | | | | | | | |
Interest
|
| | | $ | 84,298 | | | | | $ | 6,666 | | |
| | |
Years ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Sweeteners
|
| | | | 92% | | | | | | 97% | | |
Bake mixes
|
| | | | 8% | | | | | | 3% | | |
| | | | | 100% | | | | | | 100% | | |
| | |
December 31, 2019
|
| |
December 31, 2018
|
| ||||||
Raw materials and packaging
|
| | | $ | 2,718,250 | | | | | $ | 2,518,987 | | |
Work-in-process
|
| | | | 104,283 | | | | | | 74,667 | | |
Finished goods
|
| | | | 3,974,277 | | | | | | 3,731,238 | | |
Inventory reserve
|
| | | | (207,360) | | | | | | — | | |
Inventories, net
|
| | | $ | 6,589,450 | | | | | $ | 6,324,892 | | |
| | |
Year Ended December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Payroll and related benefits
|
| | | $ | 1,262,511 | | | | | $ | 805,448 | | |
Travel
|
| | | | 235,526 | | | | | | 183,898 | | |
Insurance
|
| | | | 158,846 | | | | | | 80,012 | | |
General office
|
| | | | 170,186 | | | | | | 106,619 | | |
Legal and professional
|
| | | | 58,693 | | | | | | 74,705 | | |
Depreciation and amortization
|
| | | | 87,777 | | | | | | 65,166 | | |
Other
|
| | | | 136,488 | | | | | | 76,109 | | |
| | | | $ | 2,110,027 | | | | | $ | 1,391,957 | | |
| Unaudited Condensed Combined Financial Statements | | | | | | | |
| | | | | F-81 | | | |
| | | | | F-82 | | | |
| | | | | F-83 | | | |
| | | | | F-84 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
| | |
(Unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS: | | | | | | | | | | | | | |
Cash
|
| | | $ | 849,362 | | | | | $ | 1,731,358 | | |
Accounts receivable
|
| | | | 2,284,105 | | | | | | 1,383,683 | | |
Inventories, net
|
| | | | 5,909,109 | | | | | | 6,589,450 | | |
Prepaid expenses and other current assets
|
| | | | 62,571 | | | | | | 183,622 | | |
Total current assets
|
| | | | 9,105,147 | | | | | | 9,888,113 | | |
Property and equipment, net of accumulated depreciation and amortization of
$377,706 and $322,197 as of 2020 and 2019, respectively |
| | | | 163,670 | | | | | | 201,879 | | |
Other assets
|
| | | | 52,900 | | | | | | 45,334 | | |
TOTAL ASSETS
|
| | | $ | 9,321,717 | | | | | $ | 10,135,326 | | |
LIABILITIES AND MEMBER’S EQUITY | | | | | | | | | | | | | |
CURRENT LIABILITIES: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 2,156,417 | | | | | $ | 1,657,689 | | |
Accrued liabilities
|
| | | | 308,199 | | | | | | 107,516 | | |
Current portion of loan
|
| | | | 100,779 | | | | | | — | | |
Total current liabilities
|
| | | | 2,565,395 | | | | | | 1,765,205 | | |
Paycheck Protection Program loan, less current portion
|
| | | | 64,132 | | | | | | — | | |
Total liabilities
|
| | | | 2,629,527 | | | | | | 1,765,205 | | |
MEMBER’S EQUITY
|
| | | | 6,692,190 | | | | | | 8,370,121 | | |
TOTAL LIABILITIES AND MEMBER’S EQUITY
|
| | | $ | 9,321,717 | | | | | $ | 10,135,326 | | |
| | |
Nine Months Ended September 30
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Product revenues, net
|
| | | $ | 25,911,925 | | | | | $ | 22,239,569 | | |
Cost of goods sold
|
| | | | 16,092,646 | | | | | | 14,054,499 | | |
Gross profit
|
| | | | 9,819,279 | | | | | | 8,185,070 | | |
Operating expenses: | | | | | | | | | | | | | |
Sales and marketing expenses
|
| | | | 3,312,104 | | | | | | 1,605,880 | | |
Other operating expenses
|
| | | | 2,138,054 | | | | | | 1,529,292 | | |
Total operating expenses
|
| | | | 5,450,158 | | | | | | 3,135,172 | | |
Income from operations
|
| | | | 4,369,121 | | | | | | 5,049,848 | | |
Non-operating expenses, net
|
| | | | 47,052 | | | | | | 282,044 | | |
Net income
|
| | | $ | 4,322,069 | | | | | $ | 4,767,854 | | |
Member’s equity, beginning of period
|
| | | $ | 8,370,121 | | | | | $ | 5,056,425 | | |
Capital contributions
|
| | | | — | | | | | | 500,000 | | |
Return of capital contributions
|
| | | | (6,000,000) | | | | | | (100,000) | | |
Member’s equity, end of period
|
| | | $ | 6,692,190 | | | | | $ | 10,224,279 | | |
| | |
Nine Months Ended September 30,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net income
|
| | | $ | 4,322,069 | | | | | | 4,767,854 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 55,509 | | | | | | 53,353 | | |
Inventory reserve
|
| | | | — | | | | | | 207,360 | | |
Changes in operating accounts:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (900,422) | | | | | | (717,219) | | |
Inventories
|
| | | | 680,341 | | | | | | (2,356,290) | | |
Prepaid expenses and other assets
|
| | | | 123,485 | | | | | | (32,518) | | |
Accounts payable and accrued liabilities
|
| | | | 699,411 | | | | | | (562,113) | | |
Net Cash Flows Provided by Operating Activities
|
| | | | 4,980,393 | | | | | | 1,360,427 | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Capital expenditures
|
| | | | (17,300) | | | | | | (3,446) | | |
Acquisition of intangible assets
|
| | | | (10,000) | | | | | | — | | |
Net Cash Flows Used in Investing Activities
|
| | | | (27,300) | | | | | | (3,446) | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Advances from lines of credit
|
| | | | — | | | | | | 2,900,000 | | |
Payments on lines of credit
|
| | | | — | | | | | | (3,500,000) | | |
Proceeds from Paycheck Protection Program loan
|
| | | | 164,911 | | | | | | — | | |
Capital contributions
|
| | | | — | | | | | | 500,000 | | |
Return of capital contributions
|
| | | | (6,000,000) | | | | | | (100,000) | | |
Net Cash Flows Used in Financing Activities
|
| | | | (5,835,089) | | | | | | (200,000) | | |
Net change in cash
|
| | | | (881,996) | | | | | | 1,156,981 | | |
Cash – beginning of period
|
| | |
|
1,731,358
|
| | | |
|
264,008
|
| |
Cash – end of period
|
| | | $ | 849,362 | | | | | $ | 1,420,989 | | |
SUPPLEMENTAL DISCLOSURE OF CASH PAID | | | | | | | | | | | | | |
Interest
|
| | | $ | 3,878 | | | | | $ | 84,298 | | |
| | |
Nine Months ended
September 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Sweeteners
|
| | | | 90% | | | | | | 93% | | |
Bake mixes
|
| | | | 10% | | | | | | 7% | | |
| | | | | 100% | | | | | | 100% | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Raw materials and packaging
|
| | | $ | 2,914,484 | | | | | $ | 2,718,250 | | |
Work-in-process
|
| | | | 26,916 | | | | | | 104,283 | | |
Finished goods
|
| | | | 3,175,069 | | | | | | 3,974,277 | | |
Inventory reserve
|
| | | | (207,360) | | | | | | (207,360) | | |
Inventories, net
|
| | | $ | 5,909,109 | | | | | $ | 6,589,450 | | |
| | |
Nine Months Ended September 30
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Payroll and related benefits
|
| | | $ | 1,369,824 | | | | | $ | 905,153 | | |
Travel
|
| | | | 69,522 | | | | | | 187,146 | | |
Insurance
|
| | | | 183,429 | | | | | | 132,634 | | |
General office
|
| | | | 153,995 | | | | | | 121,615 | | |
Legal and professional
|
| | | | 127,250 | | | | | | 21,685 | | |
Depreciation and amortization
|
| | | | 55,509 | | | | | | 53,353 | | |
Other
|
| | | | 178,525 | | | | | | 107,706 | | |
| | | | $ | 2,138,054 | | | | | $ | 1,529,292 | | |
| | |
Page
|
| |||
| | | | F-91 | | | |
Consolidated Financial Statements | | | | | | | |
| | | | F-92 | | | |
| | | | F-93 | | | |
| | | | F-94 | | | |
| | | | F-95 | | | |
| | | | F-96 | | |
| | |
August 28,
2020 |
| |
August 30,
2019 |
| ||||||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | |
Cash
|
| | | $ | 247 | | | | | $ | 438 | | |
Accounts receivable, less allowance of $468 and $473, respectively
|
| | | | 16,961 | | | | | | 14,244 | | |
Inventories
|
| | | | 72,028 | | | | | | 76,196 | | |
Income taxes refundable
|
| | | | — | | | | | | 910 | | |
Prepaid expenses
|
| | | | 954 | | | | | | 638 | | |
TOTAL CURRENT ASSETS
|
| | | | 90,190 | | | | | | 92,426 | | |
PROPERTY AND EQUIPMENT, net
|
| | | | 2,709 | | | | | | 2,693 | | |
DUE FROM WSO HOLDINGS, LP
|
| | | | 2,402 | | | | | | 2,342 | | |
INVESTMENT IN WS SERVICES, LLC
|
| | | | 617 | | | | | | — | | |
INTANGIBLE ASSETS, net
|
| | | | 35,121 | | | | | | 40,553 | | |
OTHER LONG TERM ASSETS
|
| | | | 552 | | | | | | 707 | | |
GOODWILL
|
| | | | 57,149 | | | | | | 57,149 | | |
TOTAL ASSETS
|
| | | $ | 188,740 | | | | | $ | 195,870 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 9,027 | | | | | $ | 12,670 | | |
Accrued expenses
|
| | | | 9,213 | | | | | | 10,718 | | |
Accrued interest
|
| | | | 1,308 | | | | | | 92 | | |
Income taxes payable
|
| | | | 417 | | | | | | — | | |
TOTAL CURRENT LIABILITIES
|
| | | | 19,965 | | | | | | 23,480 | | |
DEFERRED RENT
|
| | | | 1,180 | | | | | | 283 | | |
DEFERRED INCOME TAX LIABILITIES, net
|
| | | | 5,936 | | | | | | 6,881 | | |
LONG-TERM DEBT, net
|
| | | | 79,201 | | | | | | 84,580 | | |
TOTAL LIABILITIES
|
| | | | 106,282 | | | | | | 115,224 | | |
COMMITMENTS AND CONTINGENCIES | | | | | | | | | | | | | |
STOCKHOLDERS’ EQUITY: | | | | | | | | | | | | | |
WSO Investments, Inc.:
|
| | | | | | | | | | | | |
Common stock $.01 par value – Class A voting shares, 100 shares authorized, 1.84 shares issued and outstanding
|
| | | | — | | | | | | — | | |
Common stock $.01 par value – Class B non-voting shares, 1,600 shares authorized, 900 shares issued and outstanding
|
| | | | — | | | | | | — | | |
Common stock $.01 par value – Class C non-voting shares, 100 shares authorized, 0.00 shares issued and outstanding
|
| | | | — | | | | | | — | | |
Equity warrants
|
| | | | 124 | | | | | | 124 | | |
Paid-in capital
|
| | | | 98,844 | | | | | | 98,844 | | |
Less treasury stock, .16 and .13 Class A shares, respectively, at cost
|
| | | | (10,169) | | | | | | (10,169) | | |
Retained deficit
|
| | | | (6,341) | | | | | | (8,153) | | |
TOTAL STOCKHOLDERS’ EQUITY
|
| | | | 82,458 | | | | | | 80,646 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 188,740 | | | | | $ | 195,870 | | |
| | |
August 28,
2020 |
| |
August 30,
2019 |
| ||||||
Sales
|
| | | $ | 198,925 | | | | | $ | 186,662 | | |
Less discounts, returns and allowance
|
| | | | 9,408 | | | | | | 10,132 | | |
Net sales
|
| | | | 189,517 | | | | | | 176,530 | | |
Cost of goods sold
|
| | | | 161,105 | | | | | | 158,805 | | |
Gross profit
|
| | | | 28,412 | | | | | | 17,725 | | |
Selling and general and administrative expenses | | | | | | | | | | | | | |
Selling
|
| | | | 4,005 | | | | | | 3,973 | | |
General and administrative
|
| | | | 7,293 | | | | | | 6,859 | | |
Depreciation and amortization
|
| | | | 6,466 | | | | | | 6,593 | | |
Operating Income
|
| | | | 10,648 | | | | | | 300 | | |
Other income (loss)
|
| | | | 217 | | | | | | (10,774) | | |
Interest expense, net
|
| | | | 8,404 | | | | | | 8,273 | | |
Income (loss) before taxes
|
| | | | 2,461 | | | | | | (18,747) | | |
Provision (benefit) for income taxes
|
| | | | 649 | | | | | | (4,336) | | |
NET INCOME (LOSS)
|
| | | $ | 1,812 | | | | | $ | (14,411) | | |
| | |
Common stock
|
| | | | | | | | | | | | | |
Purchase
warrant amount |
| |
Paid-in
capital amount |
| |
Retained
deficit |
| |
Total
equity |
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Class A Shares
|
| |
Class B
|
| |
Class C
|
| |
Treasury stock
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 1,
2019 |
| | | | 1.87 | | | | | $ | — | | | | | | 900 | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 0.13 | | | | | $ | (9,454) | | | | | | — | | | | | $ | 98,844 | | | | | $ | 6,258 | | | | | $ | 95,648 | | |
Repurchase of Class A shares
|
| | | | (0.03) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.03 | | | | | | (715) | | | | | | — | | | | | | — | | | | | | — | | | | | | (715) | | |
Warrants Issued
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 124 | | | | | | — | | | | | | — | | | | | | 124 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (14,411) | | | | | | (14,411) | | |
Balance, August 30, 2019
|
| | | | 1.84 | | | | | | — | | | | | | 900 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.16 | | | | | | (10,169) | | | | | | 124 | | | | | | 98,844 | | | | | | (8,153) | | | | | | 80,646 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,812 | | | | | | 1,812 | | |
Balance, August 28, 2020
|
| | | | 1.84 | | | | | $ | — | | | | | | 900 | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 0.16 | | | | | $ | (10,169) | | | | | $ | 124 | | | | | $ | 98,844 | | | | | $ | (6,341) | | | | | $ | 82,458 | | |
| | |
August 28,
2020 |
| |
August 30,
2019 |
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,812 | | | | | $ | (14,411) | | |
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation
|
| | | | 1,035 | | | | | | 1,162 | | |
Amortization of intangibles
|
| | | | 5,431 | | | | | | 5,431 | | |
Amortization of debt issuance costs
|
| | | | 755 | | | | | | 1,851 | | |
Amortization of long term assets
|
| | | | 155 | | | | | | — | | |
Deferred income taxes
|
| | | | (945) | | | | | | (4,856) | | |
Deferred rent expense
|
| | | | 897 | | | | | | 52 | | |
Impairment of candy assets
|
| | | | — | | | | | | 10,579 | | |
Provision for bad debt expense
|
| | | | 341 | | | | | | (13) | | |
Paid in kind interest
|
| | | | 2,283 | | | | | | | | |
(Increase) decrease in:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (3,058) | | | | | | 2,912 | | |
Income taxes refundable
|
| | | | 910 | | | | | | 2,630 | | |
Inventories
|
| | | | 4,168 | | | | | | (3,847) | | |
Prepaid expenses
|
| | | | (316) | | | | | | 395 | | |
(Decrease) increase in:
|
| | | | | | | | | | | | |
Accounts payable
|
| | | | (3,643) | | | | | | 2,181 | | |
Income taxes payable
|
| | | | 417 | | | | | | — | | |
Accrued expenses
|
| | | | (1,505) | | | | | | (550) | | |
Accrued interest
|
| | | | 1,156 | | | | | | (59) | | |
Net cash provided by operating activities
|
| | | | 9,893 | | | | | | 3,457 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Investment in WS Services, LLC
|
| | | | (617) | | | | | | — | | |
Investment in intangible assets
|
| | | | — | | | | | | (42) | | |
Investment in other non-current asset
|
| | | | — | | | | | | (707) | | |
Purchase of property and equipment
|
| | | | (1,051) | | | | | | (1,605) | | |
Net cash used in investing activities
|
| | | | (1,668) | | | | | | (2,354) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Payments on term note
|
| | | | — | | | | | | (33,442) | | |
Payments on revolving credit agreement, net
|
| | | | (8,370) | | | | | | (10,030) | | |
Borrowings on term note
|
| | | | | | | | | | 36,000 | | |
Borrowing on subordinated promissory note
|
| | | | — | | | | | | 6,429 | | |
Issuance of stock purchase warrant
|
| | | | — | | | | | | 124 | | |
Proceeds on note receivable from employee
|
| | | | — | | | | | | 679 | | |
Debt issuance costs
|
| | | | (46) | | | | | | (4,435) | | |
Repurchase treasury shares
|
| | | | — | | | | | | (715) | | |
Net cash used in financing activities
|
| | | | (8,416) | | | | | | (5,391) | | |
NET DECREASE IN CASH
|
| | | | (191) | | | | | | (4,288) | | |
Cash, beginning of year
|
| | | | 438 | | | | | | 4,726 | | |
Cash, end of year
|
| | | $ | 247 | | | | | $ | 438 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | |
Income taxes paid
|
| | | $ | 539 | | | | | $ | 676 | | |
Interest paid
|
| | | $ | 5,255 | | | | | $ | 5,386 | | |
|
Customer relationships – ingredient
|
| | 12 years | |
|
Customer relationships – retail
|
| | 15 years | |
|
Trade names
|
| | 20 years | |
| Non-compete | | | 4 years | |
| | |
2020
|
| |
2019
|
| ||||||
Ingredients
|
| | | $ | 46,992 | | | | | $ | 46,897 | | |
Private label
|
| | | | 91,897 | | | | | | 80,820 | | |
Retail
|
| | | | 59,221 | | | | | | 57,885 | | |
Others
|
| | | | 815 | | | | | | 1,069 | | |
Total sales
|
| | | | 198,925 | | | | | | 186,662 | | |
Discount, returns and allowances
|
| | | | 9,408 | | | | | | 10,132 | | |
Net sales
|
| | | $ | 189,517 | | | | | $ | 176,530 | | |
| | |
2020
|
| |
2019
|
| ||||||
Computer equipment
|
| | | $ | 1,792 | | | | | $ | 2,146 | | |
Plant and equipment
|
| | | | 3,253 | | | | | | 2,948 | | |
Office furniture
|
| | | | 478 | | | | | | 420 | | |
Office equipment
|
| | | | 33 | | | | | | 21 | | |
Leasehold improvements
|
| | | | 816 | | | | | | 569 | | |
Total property and equipment
|
| | | | 6,372 | | | | | | 6,104 | | |
Less accumulated depreciation
|
| | | | (3,663) | | | | | | (3,412) | | |
Property and equipment, net
|
| | | $ | 2,709 | | | | | $ | 2,693 | | |
| | |
2020
|
| |||||||||||||||
| | |
Gross carrying
amount |
| |
Accumulated
amortization |
| |
Net carrying
value |
| |||||||||
Customer relationships – ingredient
|
| | | $ | 18,500 | | | | | $ | 12,975 | | | | | $ | 5,525 | | |
Customer relationships – retail
|
| | | | 46,400 | | | | | | 26,036 | | | | | | 20,364 | | |
Trade names
|
| | | | 15,777 | | | | | | 6,550 | | | | | | 9,227 | | |
Non-compete
|
| | | | 2,000 | | | | | | 2,000 | | | | | | — | | |
Domain name
|
| | | | 7 | | | | | | 2 | | | | | | 5 | | |
Total intangible assets
|
| | | $ | 82,684 | | | | | $ | 47,563 | | | | | $ | 35,121 | | |
| | |
2019
|
| |||||||||||||||
| | |
Gross carrying
amount |
| |
Accumulated
amortization |
| |
Net carrying
value |
| |||||||||
Customer relationships – ingredient
|
| | | $ | 18,500 | | | | | $ | 11,434 | | | | | $ | 7,066 | | |
Customer relationships – retail
|
| | | | 46,400 | | | | | | 22,942 | | | | | | 23,458 | | |
Trade names
|
| | | | 15,777 | | | | | | 5,753 | | | | | | 10,024 | | |
Non-compete
|
| | | | 2,000 | | | | | | 2,000 | | | | | | — | | |
Domain name
|
| | | | 7 | | | | | | 2 | | | | | | 5 | | |
Total intangible assets
|
| | | $ | 82,684 | | | | | $ | 42,131 | | | | | $ | 40,553 | | |
Fiscal Year
|
| |
Amount
|
| |||
2021
|
| | | $ | 5,432 | | |
2022
|
| | | | 5,432 | | |
2023
|
| | | | 5,432 | | |
2024
|
| | | | 4,790 | | |
2025
|
| | | | 3,891 | | |
| | | | $ | 24,977 | | |
| | |
2020
|
| |
2019
|
| ||||||
Long-term debt consists of: | | | | | | | | | | | | | |
Subordinated debt
|
| | | $ | 7,195 | | | | | $ | 6,430 | | |
Term loan
|
| | | | 37,517 | | | | | | 36,000 | | |
Revolving credit loans
|
| | | | 37,500 | | | | | | 45,870 | | |
Total long-term debt
|
| | | | 82,212 | | | | | | 88,300 | | |
Less: Debt issuance costs
|
| | | | (3,011) | | | | | | (3,720) | | |
Total long-term debt, net
|
| | | $ | 79,201 | | | | | $ | 84,580 | | |
| | |
2020
|
| |
2019
|
| ||||||
Current expense: | | | | | | | | | | | | | |
Federal
|
| | | $ | 1,306 | | | | | $ | 339 | | |
State
|
| | | | 288 | | | | | | 181 | | |
Total current expense
|
| | | | 1,594 | | | | | | 520 | | |
Deferred benefit: | | | | | | | | | | | | | |
Federal
|
| | | | (883) | | | | | | (4,328) | | |
State
|
| | | | (62) | | | | | | (528) | | |
Total deferred benefit
|
| | | | (945) | | | | | | (4,856) | | |
Expense (benefit) for income taxes
|
| | | $ | 649 | | | | | $ | (4,336) | | |
| | |
2020
|
| |
2019
|
| ||||||
Taxes at Federal income tax rate of 21%
|
| | | $ | 517 | | | | | $ | (3,937) | | |
State franchise/income taxes – net of federal income tax effect
|
| | | | 165 | | | | | | (386) | | |
Effect of permanent differences: | | | | | | | | | | | | | |
Other
|
| | | | (33) | | | | | | (13) | | |
Provision (benefit) for income taxes
|
| | | $ | 649 | | | | | $ | (4,336) | | |
| | |
2020
|
| |
2019
|
| ||||||
Current deferred income tax assets: | | | | | | | | | | | | | |
Bad debt provision
|
| | | $ | 116 | | | | | $ | 115 | | |
Sales discount provision
|
| | | | 134 | | | | | | 48 | | |
Inventory
|
| | | | 313 | | | | | | 91 | | |
Interest expense limitation
|
| | | | 404 | | | | | | 1,214 | | |
Deferred rent
|
| | | | 287 | | | | | | 52 | | |
Candy segment impairment
|
| | | | — | | | | | | 2,582 | | |
Accrued liabilities
|
| | | | 243 | | | | | | 82 | | |
Accrued interest
|
| | | | 783 | | | | | | — | | |
Other
|
| | | | 35 | | | | | | — | | |
Current deferred income tax assets
|
| | | | 2,315 | | | | | | 4,184 | | |
Non-current deferred income tax liabilities: | | | | | | | | | | | | | |
Tax in excess of book depreciation
|
| | | | (631) | | | | | | (780) | | |
Tax in excess of book amortization
|
| | | | (7,559) | | | | | | (10,245) | | |
Other
|
| | | | (61) | | | | | | (40) | | |
Total non-current deferred income tax liabilities
|
| | | | (8,251) | | | | | | (11,065) | | |
Total deferred income tax liabilities
|
| | | $ | (5,936) | | | | | $ | (6,881) | | |
Fiscal Year
|
| |
Amount
|
| |||
2021
|
| | | $ | 1,970 | | |
2022
|
| | | | 1,883 | | |
2023
|
| | | | 1,910 | | |
2024
|
| | | | 1,715 | | |
2025
|
| | | | 1,553 | | |
| | | | $ | 9,031 | | |
| | |
Page
|
| |||
Consolidated Financial Statements | | | | | | | |
| | | | F-110 | | | |
| | | | F-111 | | | |
| | | | F-112 | | | |
| | | | F-113 | | | |
| | | | F-114 | | |
| | |
November 27,
2020 |
| |
August 28,
2020 |
| ||||||
ASSETS
|
| | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | |
Cash
|
| | | $ | 238 | | | | | $ | 247 | | |
Accounts receivable, less allowance of $468 and $473, respectively
|
| | | | 18,643 | | | | | | 16,961 | | |
Inventories
|
| | | | 79,546 | | | | | | 72,028 | | |
Prepaid expenses
|
| | | | 874 | | | | | | 954 | | |
TOTAL CURRENT ASSETS
|
| | | | 99,301 | | | | | | 90,190 | | |
PROPERTY AND EQUIPMENT, net
|
| | | | 2,830 | | | | | | 2,709 | | |
DUE FROM WSO HOLDINGS, LP
|
| | | | 2,417 | | | | | | 2,402 | | |
INVESTMENT IN WS SERVICES, LLC
|
| | | | 806 | | | | | | 617 | | |
INTANGIBLE ASSETS, net
|
| | | | 33,763 | | | | | | 35,121 | | |
OTHER LONG TERM ASSET
|
| | | | 514 | | | | | | 552 | | |
GOODWILL
|
| | | | 57,149 | | | | | | 57,149 | | |
TOTAL ASSETS
|
| | | $ | 196,780 | | | | | $ | 188,740 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 9,208 | | | | | $ | 9,027 | | |
Accrued expenses
|
| | | | 9,932 | | | | | | 9,213 | | |
Accrued interest
|
| | | | 1,054 | | | | | | 1,308 | | |
Income taxes payable
|
| | | | 2,115 | | | | | | 417 | | |
TOTAL CURRENT LIABILITIES
|
| | | | 22,309 | | | | | | 19,965 | | |
DEFERRED RENT
|
| | | | 1,004 | | | | | | 1,180 | | |
DEFERRED INCOME TAX LIABILITIES, net
|
| | | | 5,437 | | | | | | 5,936 | | |
LONG-TERM DEBT, net
|
| | | | 81,903 | | | | | | 79,201 | | |
TOTAL LIABILITIES
|
| | | | 110,653 | | | | | | 106,282 | | |
COMMITMENTS AND CONTINGENCIES | | | | | | | | | | | | | |
STOCKHOLDERS’ EQUITY: | | | | | | | | | | | | | |
WSO Investments, Inc.:
|
| | | | | | | | | | | | |
Common stock $.01 par value – Class A voting shares, 100 shares authorized,
1.84 shares issued and outstanding |
| | | | | | | | | | | | |
Common stock $.01 par value – Class B non-voting shares, 1,600 shares authorized, 900 shares issued and outstanding
|
| | | | | | | | | | | | |
Common stock $.01 par value – Class C non-voting shares, 100 shares authorized, 0.00 shares issued and outstanding
|
| | | | | | | | | | | | |
Equity warrants
|
| | | | 124 | | | | | | 124 | | |
Paid-in capital
|
| | | | 98,844 | | | | | | 98,844 | | |
Less treasury stock, .16 and .13 Class A shares, respectively, at cost
|
| | | | (10,169) | | | | | | (10,169) | | |
Retained deficit
|
| | | | (2,672) | | | | | | (6,341) | | |
TOTAL STOCKHOLDERS’ EQUITY
|
| | | | 86,127 | | | | | | 82,458 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 196,780 | | | | | $ | 188,740 | | |
| | |
November 27,
2020 |
| |
November 29,
2019 |
| ||||||
Sales
|
| | | $ | 54,375 | | | | | $ | 49,265 | | |
Less discounts, returns and allowance
|
| | | | 1,955 | | | | | | 2,521 | | |
Net sales
|
| | | | 52,420 | | | | | | 46,744 | | |
Cost of goods sold
|
| | | | 39,979 | | | | | | 39,397 | | |
Gross profit
|
| | | | 12,441 | | | | | | 7,347 | | |
Selling and general and administrative expenses | | | | | | | | | | | | | |
Selling
|
| | | | 892 | | | | | | 523 | | |
General and administrative
|
| | | | 3,383 | | | | | | 3,126 | | |
Depreciation and amortization
|
| | | | 1,584 | | | | | | 1,664 | | |
Operating income
|
| | | | 6,582 | | | | | | 2,034 | | |
Other income
|
| | | | 62 | | | | | | — | | |
Interest expense, net
|
| | | | 1,761 | | | | | | 2,072 | | |
Income (loss) before taxes
|
| | | | 4,883 | | | | | | (38) | | |
Provision for income taxes
|
| | | | 1,214 | | | | | | 10 | | |
NET INCOME (LOSS)
|
| | | $ | 3,669 | | | | | $ | (48) | | |
| | |
Common stock
|
| | | | | | | | | | | | | |
Purchase
warrant amount |
| |
Paid-in
capital amount |
| |
Retained
deficit |
| |
Total
equity |
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Class A Shares
|
| |
Class B
|
| |
Class C
|
| |
Treasury stock
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, August 30, 2019
|
| | | | 1.87 | | | | | $ | — | | | | | | 900 | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 0.16 | | | | | $ | (10,169) | | | | | | 124 | | | | | $ | 98,844 | | | | | $ | (8,153) | | | | | $ | 80,646 | | |
Repurchase of Class A shares
|
| | | | (0.03) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (48) | | | | | | (48) | | |
Balance, November 29, 2019
|
| | | | 1.84 | | | | | $ | — | | | | | | 900 | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 0.16 | | | | | $ | (10,169) | | | | | $ | 124 | | | | | $ | 98,844 | | | | | $ | (8,201) | | | | | $ | 80,598 | | |
Balance, August 28, 2020
|
| | | | 1.84 | | | | | $ | — | | | | | | 900 | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 0.16 | | | | | $ | (10,169) | | | | | $ | 124 | | | | | $ | 98,844 | | | | | $ | (6,341) | | | | | $ | 82,458 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,669 | | | | | | 3,669 | | |
Balance, November 27, 2020
|
| | | | 1.84 | | | | | $ | — | | | | | | 900 | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 0.16 | | | | | $ | (10,169) | | | | | $ | 124 | | | | | $ | 98,844 | | | | | $ | (2,672) | | | | | $ | 86,127 | | |
| | |
November 27,
2020 |
| |
November 29,
2019 |
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 3,669 | | | | | $ | (48) | | |
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation
|
| | | | 226 | | | | | | 306 | | |
Amortization of intangibles
|
| | | | 1,358 | | | | | | 1,358 | | |
Amortization of debt issuance costs
|
| | | | 189 | | | | | | 147 | | |
Amortization of long term asset
|
| | | | 38 | | | | | | 39 | | |
Deferred income taxes
|
| | | | (499) | | | | | | (14) | | |
Deferred rent expense
|
| | | | (176) | | | | | | (25) | | |
Bad debt recovery (expense)
|
| | | | (81) | | | | | | 14 | | |
Paid in kind interest
|
| | | | 714 | | | | | | 533 | | |
(Increase) decrease in:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (1,601) | | | | | | (2,293) | | |
Refundable income taxes
|
| | | | — | | | | | | 70 | | |
Inventories
|
| | | | (7,518) | | | | | | 11,366 | | |
Prepaid expenses and other
|
| | | | 80 | | | | | | (61) | | |
(Decrease) increase in:
|
| | | | | | | | | | | | |
Accounts payable
|
| | | | 181 | | | | | | (6,068) | | |
Income taxes payable
|
| | | | 1,698 | | | | | | — | | |
Accrued expenses
|
| | | | 703 | | | | | | (1,728) | | |
Accrued interest
|
| | | | (254) | | | | | | 817 | | |
Net cash (used in) provided by operating activities
|
| | | | (1,273) | | | | | | 4,413 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Investment in WS Services, LLC
|
| | | | (189) | | | | | | — | | |
Purchase of property and equipment
|
| | | | (347) | | | | | | (38) | | |
Net cash used in investing activities
|
| | | | (536) | | | | | | (38) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Borrowings (payments) on revolving credit agreement, net
|
| | | | 1,800 | | | | | | (4,380) | | |
Net cash provided by (used in) financing activities
|
| | | | 1,800 | | | | | | (4,380) | | |
NET DECREASE IN CASH
|
| | | | (9) | | | | | | (5) | | |
Cash, beginning of year
|
| | | | 247 | | | | | | 438 | | |
Cash, end of year
|
| | | $ | 238 | | | | | $ | 433 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | |
Income taxes paid
|
| | | $ | 19 | | | | | $ | — | | |
Interest paid
|
| | | $ | 1,079 | | | | | $ | 442 | | |
|
Customer relationships – ingredient
|
| |
12 years
|
|
|
Customer relationships – retail
|
| |
15 years
|
|
|
Trade names
|
| |
20 years
|
|
|
Non-compete
|
| |
4 years
|
|
| | |
Q1 2021
|
| |
Q1 2020
|
| ||||||
Ingredients
|
| | | $ | 11,323 | | | | | $ | 11,421 | | |
Private label
|
| | | | 26,853 | | | | | | 21,793 | | |
Branded
|
| | | | 16,199 | | | | | | 16,051 | | |
Total sales
|
| | | | 54,375 | | | | | | 49,265 | | |
Discount, returns and allowances
|
| | | | 1,955 | | | | | | 2,521 | | |
Net sales
|
| | | $ | 52,420 | | | | | $ | 46,744 | | |
| | |
November 27, 2020
|
| |||||||||||||||
| | |
Gross carrying
amount |
| |
Accumulated
amortization |
| |
Net carrying
value |
| |||||||||
Customer relationships – ingredient
|
| | | $ | 18,500 | | | | | $ | 13,361 | | | | | $ | 5,139 | | |
Customer relationships – retail
|
| | | | 46,400 | | | | | | 26,809 | | | | | | 19,591 | | |
Trade names
|
| | | | 15,777 | | | | | | 6,749 | | | | | | 9,028 | | |
Non-compete
|
| | | | 2,000 | | | | | | 2,000 | | | | | | — | | |
Domain name
|
| | | | 7 | | | | | | 2 | | | | | | 5 | | |
Total intangible assets
|
| | | $ | 82,684 | | | | | $ | 48,921 | | | | | $ | 33,763 | | |
Fiscal Year
|
| |
Amount
|
| |||
2021
|
| | | $ | 5,432 | | |
2022
|
| | | | 5,432 | | |
2023
|
| | | | 5,432 | | |
2024
|
| | | | 4,790 | | |
2025
|
| | | | 3,891 | | |
| | | | $ | 24,977 | | |
| | |
November 27,
2020 |
| |||
Long-term debt consists of: | | | | | | | |
Subordinated debt
|
| | | $ | 7,428 | | |
Term loan
|
| | | | 37,997 | | |
Revolving credit loans
|
| | | | 39,300 | | |
Total long-term debt
|
| | | | 84,725 | | |
Less: Debt issuance costs
|
| | | | (2,822) | | |
Total long-term debt, net
|
| | | $ | 81,903 | | |