UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number
(Exact name of registrant as specified in its charter)
| ||||
(State or other jurisdiction of incorporation or | (I.R.S. Employer Identification Number) | |||
organization) | ||||
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code (
NONE | ||||
(Former name or former address, if changed since last report.) | ||||
Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Accelerated Filer ◻ | Non-Accelerated Filer ◻ | Smaller Reporting Company | |
Emerging Growth Company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by checkmark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
Class |
| Outstanding as of September 30, 2023 | ||
Common stock, $1 par value |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered |
TABLE OF CONTENTS
PART I. | FINANCIAL INFORMATION. | Page No. | |
Item 1. | Financial Statements | 3 | |
3 | |||
4 | |||
5 | |||
7 | |||
Notes to Unaudited Condensed Consolidated Financial Statements | 8 | ||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 17 | ||
34 | |||
35 | |||
PART II. | OTHER INFORMATION | ||
Item 1. | Legal Proceedings – NONE | ||
35 | |||
35 | |||
Item 3. | Defaults upon Senior Securities – NONE | ||
Item 4. | Mine Safety Disclosures – NONE | ||
35 | |||
36 |
2
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share data) | September 30, | December 31, | September 24, | |||||||
| 2023 |
| 2022 |
| 2022 | |||||
ASSETS |
|
| ||||||||
CURRENT ASSETS: |
|
| ||||||||
Cash and cash equivalents | $ | |
| $ | |
| $ | | ||
Restricted cash |
| |
| |
|
| | |||
Investments |
| |
| |
|
| | |||
Accounts receivable, net |
| |
| |
|
| | |||
Inventories: |
|
| ||||||||
Raw materials |
| |
| |
|
| | |||
Finished goods |
| |
| |
|
| | |||
Total inventories |
| |
| |
|
| | |||
Refundable income taxes |
| |
| |
|
| | |||
Other current assets |
| |
| |
|
| | |||
TOTAL CURRENT ASSETS |
| |
| |
| | ||||
DEFERRED INCOME TAXES |
|
| |
|
| |||||
RESTRICTED INVESTMENTS |
| |
|
| ||||||
RIGHT OF USE ASSETS | | |||||||||
OTHER ASSETS |
|
| |
|
| |||||
GOODWILL |
| |
| |
|
| | |||
INDEFINITE-LIVED INTANGIBLE ASSETS |
| |
| |
|
| | |||
OTHER INTANGIBLE ASSETS, NET |
| |
| |
|
| | |||
PROPERTY, PLANT AND EQUIPMENT: |
|
| ||||||||
Property, plant and equipment | | | | |||||||
Less accumulated depreciation and amortization |
| ( |
| ( |
|
| ( | |||
PROPERTY, PLANT AND EQUIPMENT, NET | | | ||||||||
TOTAL ASSETS | | | | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
| ||||||||
CURRENT LIABILITIES: |
|
| ||||||||
Cash overdraft | $ | — | $ | — |
| $ | | |||
Accounts payable | | |
| | ||||||
Accrued liabilities: |
|
| ||||||||
Compensation and benefits |
| |
| |
|
| | |||
Other |
| |
| |
|
| | |||
Current portion of lease liability | | | | |||||||
Current portion of long-term debt |
| |
| |
|
| | |||
TOTAL CURRENT LIABILITIES |
| |
| |
|
| | |||
LONG-TERM DEBT |
| |
| |
|
| | |||
LEASE LIABILITY | | | | |||||||
DEFERRED INCOME TAXES |
| |
| |
|
| | |||
OTHER LIABILITIES |
| |
| |
|
| | |||
TOTAL LIABILITIES |
| |
| |
|
| | |||
TEMPORARY EQUITY: | ||||||||||
Redeemable noncontrolling interest | $ | | $ | | $ | | ||||
SHAREHOLDERS’ EQUITY: |
|
| ||||||||
Controlling interest shareholders’ equity: |
|
| ||||||||
Preferred stock, | $ | $ |
| $ | ||||||
Common stock, $ |
| |
| |
|
| | |||
Additional paid-in capital |
| |
| |
|
| | |||
Retained earnings |
| |
| |
|
| | |||
Accumulated other comprehensive loss |
| ( |
| ( |
|
| ( | |||
Total controlling interest shareholders’ equity |
| |
| |
|
| | |||
Noncontrolling interest |
| |
| |
|
| | |||
TOTAL SHAREHOLDERS’ EQUITY |
| |
| |
|
| | |||
TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY | $ | | $ | |
| $ | |
See notes to consolidated condensed financial statements.
3
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
AND COMPREHENSIVE INCOME
(Unaudited)
(in thousands, except per share data) | Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 24, | September 30, | September 24, | ||||||||||
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| |||||
NET SALES | $ | |
| $ | |
| $ | |
| $ | |
| |
COST OF GOODS SOLD |
| |
| |
|
| |
| | ||||
GROSS PROFIT |
| |
| |
|
| |
| | ||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
| |
| |
|
| |
| | ||||
OTHER LOSSES (GAINS), NET | | ( | | | |||||||||
EARNINGS FROM OPERATIONS |
| |
| |
|
| |
| | ||||
INTEREST EXPENSE |
| |
| |
|
| |
| | ||||
INTEREST AND INVESTMENT (INCOME) LOSS |
| ( |
| |
|
| ( |
| | ||||
EQUITY IN LOSS OF INVESTEE | | | | | |||||||||
INTEREST AND OTHER |
| ( |
| |
|
| ( |
| | ||||
EARNINGS BEFORE INCOME TAXES |
| |
| |
|
| |
| | ||||
INCOME TAXES |
| |
| |
|
| |
| | ||||
NET EARNINGS |
| |
| |
|
| |
| | ||||
NET (EARNINGS) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST |
| ( |
| ( |
|
| |
| ( | ||||
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST | $ | | $ | |
| $ | | $ | | ||||
EARNINGS PER SHARE – BASIC | $ | | $ | |
| $ | | $ | | ||||
EARNINGS PER SHARE – DILUTED | $ | | $ | |
| $ | | $ | | ||||
OTHER COMPREHENSIVE INCOME: | |||||||||||||
NET EARNINGS |
| |
| |
|
| |
| | ||||
OTHER COMPREHENSIVE INCOME (LOSS) |
| ( |
| ( |
|
| |
| ( | ||||
COMPREHENSIVE INCOME |
| |
| |
|
| |
| | ||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST |
| |
| ( |
|
| ( |
| ( | ||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ | | $ | |
| $ | | $ | |
See notes to consolidated condensed financial statements.
4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
(in thousands, except share and per share data) | Controlling Interest Shareholders’ Equity | ||||||||||||||||||||
Additional | Accumulated Other | ||||||||||||||||||||
Common | Paid-In | Retained | Comprehensive | Noncontrolling | Temporary | ||||||||||||||||
| Stock |
| Capital |
| Earnings |
| Earnings |
| Interest (NCI) |
| Total |
| Equity | ||||||||
Balance on December 31, 2022 | $ | | $ | | $ | | $ | ( | $ | |
| $ | | $ | | ||||||
Net earnings (loss) | | ( | |
| ( | ||||||||||||||||
Foreign currency translation adjustment | | | |
| | ||||||||||||||||
Unrealized gain on debt securities | | |
| ||||||||||||||||||
Distributions to NCI | ( | ( |
| ||||||||||||||||||
Other | — | | |||||||||||||||||||
Cash dividends - $ | ( | ( |
| ||||||||||||||||||
Issuance of |
| | | |
| ||||||||||||||||
Issuance of |
| | | |
| ||||||||||||||||
Issuance of |
| | ( | — |
| ||||||||||||||||
Repurchase of |
| ( | ( | ( |
| ||||||||||||||||
Expense associated with share-based compensation arrangements | | |
| ||||||||||||||||||
Accrued expense under deferred compensation plans | | |
| ||||||||||||||||||
Balance on April 1, 2023 | $ | | $ | |
| $ | | $ | ( |
| $ | |
| $ | | $ | | ||||
Net earnings (loss) | | |
| |
| ( | |||||||||||||||
Foreign currency translation adjustment | | |
| |
| ||||||||||||||||
Unrealized gain on debt securities | ( |
| ( |
| |||||||||||||||||
Other | ( | ( | |||||||||||||||||||
Cash dividends - $ | ( |
| ( |
| |||||||||||||||||
Issuance of |
| | |
| |
| |||||||||||||||
Net forfeitures of |
| ( | |
| |
| |||||||||||||||
Issuance of |
| | ( |
| — |
| |||||||||||||||
Repurchase of | ( | ( | ( | ||||||||||||||||||
Expense associated with share-based compensation arrangements | |
| |
| |||||||||||||||||
Accrued expense under deferred compensation plans | |
| |
| |||||||||||||||||
Balance on July 1, 2023 | $ | | $ | |
| $ | | $ | ( |
| $ | |
| $ | | $ | | ||||
Net earnings | | | | | |||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | ( | |||||||||||||||||
Unrealized loss on debt securities | ( | ( | |||||||||||||||||||
Other | ( | | | | |||||||||||||||||
Distributions to NCI | ( | ( | |||||||||||||||||||
Redeemable NCI | — | ||||||||||||||||||||
Cash dividends - $ | ( | ( | |||||||||||||||||||
Issuance of | | | | ||||||||||||||||||
Net forfeitures of | ( | | | | |||||||||||||||||
Issuance of | | ( | — | ||||||||||||||||||
Repurchase of | ( | ( | ( | ||||||||||||||||||
Expense associated with share-based compensation arrangements | | | |||||||||||||||||||
Accrued expense under deferred compensation plans | | | |||||||||||||||||||
Balance on September 30, 2023 | $ | | $ | | $ | | $ | ( | $ | | $ | | $ | |
See notes to consolidated condensed financial statements.
5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY, CONTINUED
(Unaudited)
(in thousands, except share and per share data) | Controlling Interest Shareholders’ Equity | ||||||||||||||||||||
Additional | Accumulated Other | ||||||||||||||||||||
Common | Paid-In | Retained | Comprehensive | Noncontrolling | Temporary | ||||||||||||||||
| Stock |
| Capital |
| Earnings |
| Earnings |
| Interest (NCI) |
| Total |
| Equity | ||||||||
Balance on December 25, 2021 | $ | | $ | | $ | | $ | ( | $ | |
| $ | | $ | — | ||||||
Net earnings |
|
|
| |
|
|
| |
|
| | ||||||||||
Foreign currency translation adjustment |
|
|
|
| |
| |
|
| | |||||||||||
Unrealized loss on debt securities |
|
|
|
| ( |
|
|
| ( | ||||||||||||
Distributions to NCI |
|
|
|
|
| ( |
| ( | |||||||||||||
Cash dividends - $ | ( |
|
|
|
|
|
| ( | |||||||||||||
Issuance of |
| | |
|
|
|
| | |||||||||||||
Issuance of |
| | |
|
|
|
| | |||||||||||||
Issuance of |
| | ( |
|
| — | |||||||||||||||
Repurchase of |
| ( | ( |
|
|
|
|
| ( | ||||||||||||
Expense associated with share-based compensation arrangements | |
|
|
|
| | |||||||||||||||
Accrued expense under deferred compensation plans | |
|
|
|
|
| | ||||||||||||||
Balance on March 26, 2022 | $ | | $ | |
| $ | | $ | ( |
| $ | |
| $ | | $ | — | ||||
Net earnings | | |
|
| | ||||||||||||||||
Foreign currency translation adjustment | ( | ( |
|
| ( | ||||||||||||||||
Unrealized loss on debt securities | ( |
| ( | ||||||||||||||||||