What changed in this filing

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Item 1. Financial Statements

2022-10-27 compared with 2022-08-04 · 47 added, 40 removed, 296 unchanged (23% of the section changed)

42 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

All Amounts in Thousands Except Per Share Data

5 unchanged sentences

Interest expense

Other income (expense)

Income Before Income Taxes

9 unchanged sentences

All Amounts in Thousands

Balances at March 20, 2021

Balances at July 10, 2021

Expense of stock options and restricted stock units

Settlement of restricted stock units

Dividends declared

1 unchanged sentence

Stock issued to directors as compensation

Balances at July 10, 2021

Balances at October 2, 2021

Balances at December 26, 2020

5 unchanged sentences

Stock issued to directors as compensation

Balances at July 10, 2021

Balances at October 2, 2021

All Amounts in Thousands

Balances at March 19, 2022

Balances at July 9, 2022

Expense of restricted stock units

Settlement of restricted stock units

Dividends declared

Stock issued to directors as compensation

Balances at July 9, 2022

Balances at October 1, 2022

Balances at December 25, 2021

3 unchanged sentences

Stock issued to directors as compensation

Balances at July 9, 2022

Balances at October 1, 2022

See notes to Consolidated Condensed Financial Statements.

1 unchanged sentence

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

Six Months Ended

Nine Months Ended

All Amounts in Thousands

July 10, 2021

October 1, 2022

October 2, 2021

Operating Activities:

18 unchanged sentences

Net cash provided by financing activities

Net increase in cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning of period

13 unchanged sentences

Seasonal Aspects

The results of operations for the three and six month periods ended July 9, 2022 and July 10, 2021 are not necessarily indicative of the results to be expected for the full year.

The results of operations for the three and nine month periods ended October 1, 2022 and October 2, 2021 are not necessarily indicative of the results to be expected for the full year.

Note C ‑

9 unchanged sentences

Fair values of long-term debt is estimated based on borrowing rates currently available to the Company for bank loans with similar terms and maturities and determined through the use of a discounted cash flow model.

The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall in accordance with FASB ASC 825 at July 9, 2022, December 25, 2021 and July 10, 2021.

Fair Value Measurements Using

October 1, 2022

Quoted Prices in

1 unchanged sentence

for Identical

Assets (Level 1)

Significant Other

Observable Inputs

Assets (Level 1)

Financial assets

8 unchanged sentences

for Identical

Assets (Level 1)

Significant Other

Observable Inputs

Assets (Level 1)

Financial assets

4 unchanged sentences

Fair Value Measurements Using

July 10, 2021

October 2, 2021

Quoted Prices in

1 unchanged sentence

for Identical

Assets (Level 1)

Significant Other

Observable Inputs

Assets (Level 1)

Financial assets

6 unchanged sentences

The fair value of stock-based compensation is recognized in accordance with the provisions of FASB ASC 718, Stock Compensation .

During the six months ended July 9, 2022 and pursuant to the 2017 Incentive Plan, in lieu of cash payments of director fees, the Company awarded to certain directors 3,886 shares of common stock.

During the six months ended July 9, 2022, the Company awarded 20,000 restricted stock units to directors and 196,254 restricted stock units to employees.

During the nine months ended October 1, 2022 and pursuant to the 2017 Incentive Plan, in lieu of cash payments of director fees, the Company awarded to certain directors 3,886 shares of common stock.

During the nine months ended October 1, 2022, the Company awarded 20,000 restricted stock units to directors and 196,254 restricted stock units to employees.

The restricted stock units awarded to directors time vest over two years (one-half one year from grant date and one-half two years from grant date) provided that the director is still a director of the Company at the vest date.

1 unchanged sentence

The 2022 restricted stock units awarded to employees time vest over three years ( one-third one year from grant, one-third two years from grant and one-third three years from grant) provided that the employee is still employed by the Company on the vesting date.

For the three and six months ended July 9, 2022, the Company recognized stock based compensation expense of $ 688 thousand and $ 1,076 thousand, respectively compared to stock based compensation expense of $ 326 thousand and $ 437 thousand for the same periods in the prior year.

At July 9, 2022 and July 10, 2021, respectively, there was $ 2.6 million and $ 1.1 million in unrecognized stock-based compensation expense related to non-vested stock awards.

For the three and nine months ended October 1, 2022, the Company recognized stock based compensation expense of $ 377 thousand and $ 1,453 thousand, respectively compared to stock based compensation expense of $ 229 thousand and $ 666 thousand for the same periods in the prior year.

At October 1, 2022 and October 2, 2021, respectively, there was $ 1,937 thousand and $ 865 thousand in unrecognized stock-based compensation expense related to non-vested stock awards.

Note F ‑

1 unchanged sentence

For the Three Months

Ended July 9, 2022

Ended October 1, 2022

Revenues from external customers

1 unchanged sentence

Net income (loss)

As of and for the Six Months

Ended July 9, 2022

As of and for the Nine Months

Ended October 1, 2022

Revenues from external customers

1 unchanged sentence

For the Three Months

Ended July 10, 2021

Ended October 2, 2021

Revenues from external customers

Operating income (loss)

As of and for the Six Months

Ended July 10, 2021

As of and for the Nine Months

Ended October 2, 2021

Revenues from external customers

2 unchanged sentences

Dividend Payment

On September 13, 2022, the Company paid a quarterly dividend of $ 0.15 per common share to all shareholders of record on September 6, 2022.

The total amount of the dividend was approximately $ 2.0 million and was charged against retained earnings.

On June 7, 2022, the Company paid a quarterly dividend of $ 0.15 per common share to all shareholders of record on May 31, 2021.

6 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Weighted average common shares outstanding

5 unchanged sentences

New Accounting Standards and Changes in Accounting Principles

There have been no recent accounting pronouncements or changes in accounting pronouncements during the three and six months ended July 9, 2022, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2021, that are of significance, or potential significance to the Company.

There have been no recent accounting pronouncements or changes in accounting pronouncements during the three and nine months ended October 1, 2022, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2021, that are of significance, or potential significance to the Company.

Note J –

27 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

All Amounts in Thousands

11 unchanged sentences

Our leases have remaining lease terms of 1 year to 10 years.

As of July 9, 2022, the Company has not entered into any lease arrangements classified as a finance lease.

As of October 1, 2022, the Company has not entered into any lease arrangements classified as a finance lease.

We determine if an arrangement is a lease at inception.

10 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

All Amounts in Thousands

9 unchanged sentences

Other information about lease amounts recognized in our consolidated financial statements is summarized as follows:

Six Months Ended

Nine Months Ended

All Amounts in Thousands

3 unchanged sentences

Operating Leases

Future minimum lease payments under non-cancellable leases as of July 9, 2022 were as follows:

Future minimum lease payments under non-cancellable leases as of October 1, 2022 were as follows:

All Amounts in Thousands

1 unchanged sentence

Less imputed interest

Reported as of July 9, 2022

Reported as of October 1, 2022

Current operating lease liabilities

18 unchanged sentences

The Restated Credit Agreement further extended the maturity date for the term loan facility to January 21, 2027.

As of July 9, 2022, the outstanding principal amount of the term loan was $ 43.5 million and total amount drawn under the Revolving Facility was $ 57.7 million.

Note O –

Subsequent Events

On July 18, 2022, the Company entered into the First Amendment to the Restated Credit Agreement.

1 unchanged sentence

The First Amendment also adjusted the funded debt to EBITDA ratio financial covenant to 3:00 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022.

As of October 1, 2022, the outstanding principal amount of the term loan was $ 41.7 million and total amount drawn under the Revolving Facility was $ 65.0 million.

Note O –

Subsequent Events

On October 26, 2022, the Company entered into the Second Amendment ("Second Amendment”) to the Restated Credit Agreement.

Under the terms of the Second Amendment, the Lender increased the maximum availability under the senior revolving credit facility from $ 75.0 million to $ 90.0 million pursuant to the accordion feature in the Restated Credit Agreement.

The Second Amendment adjusted the funded debt to EBITDA ratio financial covenant to 3:25 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022 and 3:00 to 1:00 as of the end of the Company’s first fiscal quarter of 2023.

The Second Amendment also modified the EBITDA definition to permit add-backs of a) up to $2.0 million for disposition related expenses;

and b) up to $2.0 million for unusual or non-recurring expenses which are incurred prior to the end of fiscal year 2023 and which are subject to the approval of the Administrative Agent.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements