16 unchanged sentences
Executive Summary
−Removed: For the second quarter of fiscal year 2022, the Company reported total revenue of $134.5 million, up 4.8% from $128.3 million in the same period of fiscal year 2021.
−Removed: Revenue for the second quarter of fiscal year 2022 included a benefit from customer one-time reimbursements for tooling, equipment and other expenses of approximately $10 million more when compared to the previous year.
−Removed: While demand has remained strong from both new and existing customers, revenue for the second quarter of fiscal year 2022 continued to be constrained by challenges related to the global supply chain, the pandemic, transportation and logistics.
−Removed: The concentration of our top three customers’ net sales decreased to 33.3 percent of total sales in the second quarter of fiscal year 2022 from 35.9 percent in the same period of the prior fiscal year.
+Added: For the third quarter of fiscal year 2022, the Company reported total revenue of $138.4 million, up 2.8% from $134.6 million in the same period of fiscal year 2021.
+Added: While year-over-year sales have increased, customer demand has been even higher but production continues to be limited by global supply chain and transportation issues.
+Added: In the coming quarters, the Company expects to ramp a number of new programs, including the previously announced program with a leading power equipment company in its Mexico facility in the first part of the next fiscal year.
+Added: As new customer programs ramp the concentration of our top three customers’ net sales decreased to 34.4 percent of total sales in the third quarter of fiscal year 2022 from 37.9 percent in the same period of the prior fiscal year.
Net sales to our largest customers may vary significantly from quarter to quarter depending on the size and timing of customer program commencement, forecasts, delays, and design modifications.
2 unchanged sentences
In addition, our capacity and core competencies for printed circuit board assemblies, precision molding, sheet metal fabrication, tool making, assembly, and engineering can be applied to a wide variety of products.
−Removed: Gross profit as a percent of net sales was 7.3 percent for the second quarter of fiscal year 2022 as compared to 8.3 percent for the same quarter of the prior fiscal year.
−Removed: The global supply chain, pandemic and transportation issues continued to disrupt production, including intermittent parts supply, factory downtime and overtime expenses.
−Removed: In addition, the Company had a seasonal closure for two weeks at the end of December, and revenue attributed to customer reimbursements did not contribute to its gross margin.
−Removed: Legal costs related specifically to the SEC’s review of last year’s whistleblower complaint totaled approximately $0.7 million during the quarter.
−Removed: Operating income as a percentage of net sales was 1.2 percent for the second quarter of fiscal year 2022 compared to 2.1 percent of operating income as a percentage of net sales for the second quarter of fiscal year 2021.
−Removed: The decrease in operating income as a percentage of net sales was primarily driven by the decrease in gross profit as discussed above.
−Removed: Net income for the second quarter of fiscal year 2022 was $0.6 million or $0.05 per diluted share, as compared to net income of $1.6 million or $0.14 per diluted share for the second quarter of fiscal year 2021.
−Removed: Net income for the second quarter of fiscal 2022 was also impacted by legal costs related specifically to the Securities and Exchange Commission’s (the “SEC”) review of last year’s whistleblower complaint, which totaled approximately $0.7 million during the quarter.
−Removed: During the second quarter of fiscal year 2022, we won new programs involving industrial robots, lighting control, disinfection, food production and energy management systems.
−Removed: We also announced a significant new program win with one of the world’s leading power equipment companies, for which we expect to begin manufacturing in the first quarter of fiscal year 2023 and, once fully ramped, could contribute approximately $80 million in annual revenue.
−Removed: Moving into the third quarter of fiscal 2022, the global supply chain and COVID-19 pandemic continue to present uncertainty and multiple business challenges, including industry-wide electronic component shortages, workforce disruptions and higher labor costs, but we continue to see the favorable trend of contract manufacturing returning to North America.
−Removed: With our recent investments in new capacity in both North America and Vietnam, we believe the Company is well-prepared for long term growth when supply chains improve.
+Added: Gross profit as a percent of net sales was 8.3 percent for the third quarter of fiscal year 2022 as compared to 8.2 percent for the same quarter of the prior fiscal year.
+Added: The global supply chain and transportation issues continued to disrupt production, including a mandated COVID shutdown in the Company’s facilities in Shanghai, China, intermittent parts supply, factory downtime and overtime expenses.
+Added: Operating income as a percentage of net sales was 2.0 percent for the third quarter of fiscal year 2022 compared to 1.9 percent of operating income as a percentage of net sales for the third quarter of fiscal year 2021.
+Added: The increase in operating income as a percentage of net sales was primarily driven by the increase in gross profit as discussed above.
+Added: Net income for the third quarter of fiscal year 2022 was $1.0 million or $0.09 per diluted share, as compared to net income of $0.9 million or $0.08 per diluted share for the third quarter of fiscal year 2021.
+Added: Net income for the third quarter of fiscal 2022 was also impacted by legal costs related specifically to the Securities and Exchange Commission’s (the “SEC”) review of last year’s whistleblower complaint, which totaled approximately $0.06 per diluted share during the quarter and we expect legal costs to potentially continue at a similar pace in coming periods.
+Added: During the third quarter of fiscal year 2022, we won new programs involving outdoor recreation, RFID, industrial connectivity and electric mobility products.
+Added: While the global supply chain and COVID-19 crises continue to present uncertainty and multiple business challenges in the fourth quarter, we see the potential for significant growth in fiscal 2023 and beyond.
+Added: Moving into the fourth quarter of fiscal 2022, the war in Ukraine, China’s COVID lockdown and global logistics problems continue to drive the favorable trend of contract manufacturing returning to North America.
+Added: We believe we are well positioned to benefit from this growing demand.
To protect the health of its employees, the Company has implemented the recommendations of WHO and the CDC including wearing of face masks and shields, workstation arrangements to provide social distancing, temperature monitoring, enhanced worksite disinfection, spacing in cafeterias and break areas, contact management and other precautions.
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These shortages can result from strong demand for those components or from problems experienced by suppliers, such as shortages of raw materials.
−Removed: We have also experienced, and expect to continue to experience, such shortages due to the effects of the COVID-19 pandemic.
−Removed: These unanticipated component shortages have resulted and could continue to result in curtailed production or delays in production, which may prevent us from making scheduled shipments to customers.
−Removed: Our inability to make scheduled shipments could cause us to experience a reduction in sales, increase in inventory levels and costs, and could adversely affect our operating results.
+Added: We have also experienced, and expect to continue to experience, such shortages and shutdowns due to the effects of the COVID-19 pandemic.
+Added: These unanticipated component shortages have resulted and could continue to result in curtailed production or delays in production, which may prevent us from timely satisfying our performance obligations with our customers.
+Added: Our inability to satisfy these performance obligations could cause us to experience a reduction in sales, increase in inventory levels and costs, and could adversely affect our operating results.
We are carefully monitoring potential supply chain disruptions due to ongoing tightness in the overall component environment and are working to mitigate supply chain constraint risks.
−Removed: We maintain a strong balance sheet with a current ratio of 2.1 and a debt to equity ratio of 0.9 as of January 1, 2022.
−Removed: Total cash used in operating activities as defined on our cash flow statement was $10.5 million for the six months ended January 1, 2022.
−Removed: We maintain sufficient liquidity for our expected future operations and had $97.0 million in borrowings on our revolving credit facility and $17.3 million remained available at January 1, 2022.
+Added: We maintain a strong balance sheet with a current ratio of 2.1 and a debt to equity ratio of 0.9 as of April 2, 2022.
+Added: Total cash used in operating activities as defined on our cash flow statement was $11.6 million for the nine months ended April 2, 2022.
+Added: We maintain sufficient liquidity for our expected future operations and had $99.7 million in borrowings on our revolving credit facility and $15.8 million remained available at April 2, 2022.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
15 unchanged sentences
RESULTS OF OPERATIONS
−Removed: Comparison of the Three Months Ended January 1, 2022 with the Three Months Ended December 26, 2020
+Added: Comparison of the Three Months Ended April 2, 2022 with the Three Months Ended April 3, 2021
The financial information and discussion below should be read in conjunction with the Consolidated Financial Statements and Notes.
−Removed: The following table sets forth certain information regarding the components of our condensed consolidated statements of income for the three months ended January 1, 2022 as compared to the three months ended December 26, 2020.
+Added: The following table sets forth certain information regarding the components of our condensed consolidated statements of income for the three months ended April 2, 2022 as compared to the three months ended April 3, 2021.
It is provided to assist in assessing differences in our overall performance (in thousands):
Three Months Ended
−Removed: January 1, 2022 % of
−Removed: net sales December 26, 2020 % of
+Added: April 2, 2022 % of
+Added: net sales April 3, 2021 % of
net sales $ change % point
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Net income $ 1,007 0.7 % $ 867 0.6 % $ 140 0.1 %
−Removed: Net sales of $134.5 million for the second quarter of fiscal year 2022 increased by 4.8 percent as compared to net sales of $128.3 million for the second quarter of fiscal year 2021.
−Removed: The $6.2 million increase in net sales from the prior year period was primarily driven by an increase in customer one-time reimbursements for tooling, equipment and other expenses of approximately $10 million when compared to the previous year.
−Removed: The Company also saw an increase in new program wins and demand for current programs.
+Added: Net sales of $138.4 million for the third quarter of fiscal year 2022 increased by 2.8 percent as compared to net sales of $134.6 million for the third quarter of fiscal year 2021.
+Added: The $3.8 million increase in net sales from the prior year period was primarily due to the successful ramp of new customer programs and increased demand from existing customers.
However, the Company’s revenue was constrained by tightening worldwide supply chain and transportation and logistics issues which delayed the arrival of key components, causing factory downtime and overtime expenses.
−Removed: Gross profit as a percentage of net sales for the three months ended January 1, 2022 was 7.3 percent compared to 8.3 percent for the three months ended December 26, 2020.
−Removed: This 1.0 percentage point decrease was primarily a result of supply chain constraints and continued but lessening expenses related to COVID-19.
+Added: Gross profit as a percentage of net sales for the three months ended April 2, 2022 was 8.3 percent compared to 8.2 percent for the three months ended April 3, 2021.
+Added: This 0.1 percentage point increase was primarily a result of increased sales offset in part by supply chain constraints and continued but lessening expenses related to COVID-19.
The level of gross margin is impacted by facility utilization, product mix, timing, severity and steepness of new program ramps, pricing within the electronics industry and material costs, which can fluctuate significantly from quarter to quarter.
Included in gross profit are charges related to reductions in the carrying value of our inventory due to obsolescence.
−Removed: We recorded a provision of approximately $227,000 and $268,000 for obsolete inventory during the three months ended January 1, 2022 and December 26, 2020, respectively.
+Added: We recorded a provision of approximately $155,000 and $12,000 for obsolete inventory during the three months ended April 2, 2022 and April 3, 2021, respectively.
We adjust the carrying value for estimated obsolescence as necessary in an amount equal to the difference between the cost of inventory and its net realizable value based on assumptions as to future demand and market conditions.
1 unchanged sentence
Operating Expenses
−Removed: Total research, development, and engineering (RD&E) expenses were $2.5 million during the three months ended January 1, 2022 and $2.4 million during the three months ended December 26, 2020, respectively.
−Removed: The increase in RD&E expenses relate to an increase in engineering payroll expenses.
−Removed: Total RD&E expenses as a percent of net sales were 1.9 percent during the three months ended January 1, 2022 and the three months ended December 26, 2020.
−Removed: Total selling, general and administrative (SG&A) expenses were $5.7 million during the three months ended January 1, 2022 compared to $5.5 million for the three months ended December 26, 2020.
−Removed: The increase in SG&A expenses relate to an increase in legal expenses related to the subject of the previously disclosed internal investigation and related matters.
−Removed: Total SG&A expenses as a percentage of net sales were 4.2 percent for the three months ended January 1, 2022 and 4.3 percent for the three months ended December 26, 2020.
−Removed: Interest expense was $1.1 million during the three months ended January 1, 2022 and $0.8 million during the three months ended December 26, 2020.
+Added: Total research, development, and engineering (RD&E) expenses were $2.5 million during the three months ended April 2, 2022 and $2.7 million during the three months ended April 3, 2021, respectively.
+Added: The decrease in RD&E expenses relate to a decrease in engineering payroll expenses.
+Added: Total RD&E expenses as a percent of net sales were 1.8 percent during the three months ended April 2, 2022 and 2.0 percent during the three months ended April 3, 2021.
+Added: Total selling, general and administrative (SG&A) expenses were $6.2 million during the three months ended April 2, 2022 compared to $5.9 million for the three months ended April 3, 2021.
+Added: The increase in SG&A expenses relate to an increase in legal expenses related to the subject of the previously disclosed internal investigation and related matters, partially offset by a decrease in payroll related expenses.
+Added: Total SG&A expenses as a percentage of net sales were 4.5 percent for the three months ended April 2, 2022 and 4.4 percent for the three months ended April 3, 2021.
+Added: Interest expense was $1.6 million during the three months ended April 2, 2022 and $1.0 million during the three months ended April 3, 2021.
The increase in interest expense is primarily related to an increase in the average balance outstanding on our line of credit and increased interest rates.
−Removed: The effective tax rate for the three months ended January 1, 2022 was (5.6) percent compared to 15.6 percent for the three months ended December 26, 2020.
−Removed: The decrease was primarily due to federal research and development tax credits constituting a higher percentage of income before income taxes.
+Added: The effective tax rate for the three months ended April 2, 2022 was 18.7 percent compared to 44.3 percent for the three months ended April 3, 2021.
+Added: The decrease was primarily due to the recording of a valuation allowance against Vietnam’s net operating loss deferred tax asset and a true up of federal research and development tax credits in the third quarter of fiscal year 2021.
For further information on taxes see Note 5 of the “Notes to Consolidated Financial Statements.”
2 unchanged sentences
RESULTS OF OPERATIONS
−Removed: Comparison of the Six Months Ended January 1, 2022 with the Six Months Ended December 26, 2020
+Added: Comparison of the Nine Months Ended April 2, 2022 with the Nine Months Ended April 3, 2021
The financial information and discussion below should be read in conjunction with the Consolidated Financial Statements and Notes.
−Removed: The following table sets forth certain information regarding the components of our condensed consolidated statements of income for the six months ended January 1, 2022 as compared to the six months ended December 26, 2020.
+Added: The following table sets forth certain information regarding the components of our condensed consolidated statements of income for the nine months ended April 2, 2022 as compared to the nine months ended April 3, 2021.
It is provided to assist in assessing differences in our overall performance (in thousands):
−Removed: Six Months Ended
−Removed: January 1, 2022 % of
−Removed: net sales December 26, 2020 % of
+Added: Nine Months Ended
+Added: April 2, 2022 % of
+Added: net sales April 3, 2021 % of
net sales $ change % point
11 unchanged sentences
Effective income tax rate 16.8 % 24.8 %
−Removed: Net sales of $267.2 million for the six months ended January 1, 2022 increased by 6.3 percent as compared to net sales of $251.5 million for the six months ended December 26, 2020.
+Added: Net sales of $405.6 million for the nine months ended April 2, 2022 increased by 5.1 percent as compared to net sales of $386.1 million for the nine months ended April 3, 2021.
The $19.5 million increase in net sales from the prior year period was due to the successful ramp of new customer programs and increased demand from existing customers.
At the same time, the Company’s revenue was constrained by tightening worldwide supply chain and transportation and logistics issues which delayed the arrival of key components, causing factory downtime.
−Removed: Gross profit as a percentage of net sales for the six months ended January 1, 2022 was 7.5 percent compared to 8.2 percent for the six months ended December 26, 2020.
+Added: Gross profit as a percentage of net sales for the nine months ended April 2, 2022 was 7.8 percent compared to 8.2 percent for the nine months ended April 3, 2021.
This 0.4 percentage point decrease was primarily a result of supply chain constraints and continued but lessening expenses related to COVID-19.
1 unchanged sentence
Included in gross profit are charges related to reductions in the carrying value of our inventory due to obsolescence.
−Removed: We recorded a provision of approximately $365,000 and $446,000 for obsolete inventory during the six months ended January 1, 2022 and six months ended December 26, 2020, respectively.
+Added: We recorded a provision of approximately $520,000 and $458,000 for obsolete inventory during the nine months ended April 2, 2022 and nine months ended April 3, 2021, respectively.
We adjust the carrying value for estimated obsolescence as necessary in an amount equal to the difference between the cost of inventory and its net realizable value based on assumptions as to future demand and market conditions.
1 unchanged sentence
Operating Expenses
−Removed: Total research, development, and engineering (RD&E) expenses were $4.9 million and $4.6 million during the six months ended January 1, 2022 and six months ended December 26, 2020, respectively.
+Added: Total research, development, and engineering (RD&E) expenses were $7.5 million and $7.3 million during the nine months ended April 2, 2022 and nine months ended April 3, 2021, respectively.
The increase in RD&E expenses relate to an increase in engineering payroll expenses.
−Removed: Total RD&E expenses as a percent of net sales were 1.9 percent during the six months ended January 1, 2022 and 1.8 percent during the six months ended December 26, 2020.
−Removed: Total selling, general and administrative (SG&A) expenses were $11.3 million during the six months ended January 1, 2022 compare to $10.5 million for the six months ended January 1, 2022.
+Added: Total RD&E expenses as a percent of net sales were 1.8 percent during the nine months ended April 2, 2022 and 1.9 percent during the nine months ended April 3, 2021.
+Added: Total selling, general and administrative (SG&A) expenses were $17.4 million during the nine months ended April 2, 2022 compared to $16.3 million for the nine months ended April 2, 2022.
+Added: The increase in SG&A expenses relate to an increase in legal expenses related to the subject of the previously disclosed internal investigation and related matters, partially offset by a decrease in payroll related expenses.
The increase in SG&A expenses relate to an increase in legal expenses related to the subject of the previously disclosed internal investigation and related matters.
−Removed: Total SG&A expenses as a percentage of net sales were 4.2 percent during the six months ended January 1, 2022 compared to 4.2 percent during the six months ended December 26, 2020.
−Removed: Interest expense was $2.1 million during the six months ended January 1, 2022 compared to $1.5 million during the six months ended December 26, 2020.
+Added: Total SG&A expenses as a percentage of net sales were 4.3 percent during the nine months ended April 2, 2022 compared to 4.2 percent during the nine months ended April 3, 2021.
+Added: Interest expense was $3.6 million during the nine months ended April 2, 2022 compared to $2.5 million during the nine months ended April 3, 2021.
The increase in interest expense is primarily related to an increase in the average balance outstanding on our line of credit and increased interest rates.
−Removed: The effective tax rate for the six months ended January 1, 2022 was 15.4 percent compared to 17.3 percent for the same period in fiscal year 2021.
−Removed: The effective tax rate decreased from the prior year primarily due to federal research and development tax credits constituting a higher percentage of income before income taxes.
+Added: The effective tax rate for the nine months ended April 2, 2022 was 16.8 percent compared to 24.8 percent for the same period in fiscal year 2021.
+Added: The effective tax rate decreased from the prior year primarily due to the recording of a valuation allowance against Vietnam’s net operating loss deferred tax asset and a true up of federal research and development tax credits in the third quarter of fiscal year 2021.
For further information on taxes see Note 5 of the “Notes to Consolidated Financial Statements.”
1 unchanged sentence
If assumptions and estimates change in the future the deferred tax assets and liability will be adjusted accordingly and any increase or decrease will result in an additional deferred income tax expense or benefit in subsequent periods.
−Removed: Considering the ongoing economic impacts of the COVID-19 pandemic, management assessed the realizability of all deferred tax assets at January 1, 2022, and determined that it is more likely than not that the deferred tax assets will be realized, other than the Vietnam net operating loss carryover.
+Added: Considering the ongoing economic impacts of the COVID-19 pandemic, management assessed the realizability of all deferred tax assets at April 2, 2022, and determined that it is more likely than not that the deferred tax assets will be realized, other than the Vietnam net operating loss carryover.
Due to the Tax Holiday and net operating loss utilization ordering rules, we expect our Vietnam net operating losses will be used against Tax Holiday qualified income subject to tax at a zero rate, resulting in no benefit for these net operating losses.
1 unchanged sentence
For further information, see Note 5 of the “Notes to Consolidated Financial Statements.”
−Removed: On January 1, 2022, we had an order backlog of approximately $333.1 million.
−Removed: This compares with a backlog of approximately $218.7 million on December 26, 2020.
+Added: On April 2, 2022, we had an order backlog of approximately $384.1 million.
+Added: This compares with a backlog of approximately $236.6 million on April 3, 2021.
The increase in order backlog is related to increases in demand and increasing supply chain issues that have delayed production.
3 unchanged sentences
Operating Cash Flow
−Removed: Net cash used in operating activities for the six months ended January 1, 2022 was $10.5 million, compared to $16.8 million during the same period of the prior fiscal year.
−Removed: The $10.5 million of net cash used in operating activities for the six months ended January 1, 2022 is primarily related to $1.4 million in net income for the period adjusted for $2.6 million of depreciation and amortization, a $20.8 million increase in inventory, a $13.5 million increase in other assets, a $13.1 million increase in accounts receivable, a $4.1 million decrease in accrued compensation and vacation, a $1.2 million increase in contract assets partially offset by a $39.0 million increase in accounts payable.
−Removed: The $16.8 million of net cash used in operating activities for the six months ended December 26, 2020 is primarily related to $3.3 million in net income for the period adjusted for $3.4 million of depreciation and amortization, a $14.0 million increase in accounts receivable, a $10.3 million decrease in accounts payable, a $4.9 million increase in inventory, a $1.4 million decrease in accrued compensation and vacation, and a $1.1 million decrease in contract assets.
−Removed: The $14.0 million increase in accounts receivable is a result of the Company not factoring receivables during the first quarter fiscal year 2021.
+Added: Net cash used in operating activities for the nine months ended April 2, 2022 was $11.6 million, compared to $17.7 million during the same period of the prior fiscal year.
+Added: The $11.6 million of net cash used in operating activities for the nine months ended April 2, 2022 is primarily related to $2.4 million in net income for the period adjusted for $3.9 million of depreciation and amortization, a $27.6 million increase in accounts receivable, a $18.3 million increase in inventory, a $2.8 million decrease in accrued compensation and vacation, a $1.6 million increase in other assets, partially offset by a $32.4 million increase in accounts payable, a $1.9 million increase in other liabilities and a $1.3 million decrease in contract assets.
+Added: The $17.7 million of net cash used in operating activities for the nine months ended April 3, 2021 is primarily related to $4.2 million in net income for the period adjusted for $5.0 million of depreciation and amortization, a $26.9 million increase in accounts receivable, a $15.8 million increase in inventory, a $1.1 million decrease in accrued compensation and vacation partially offset by a $2.9 million increase in accounts payable, and a $4.3 million decrease in contract assets.
Accounts receivable fluctuates based on the timing of shipments, terms offered and collections that occurred during the quarter.
3 unchanged sentences
Investing Cash Flow
−Removed: Cash provided by investing activities was $2.8 million during the six months ended January 1, 2022 as compared to cash used in investing activities of $7.0 million during the six months ended December 26, 2020.
−Removed: Our primary investing activity during the six months ended January 1, 2022 and December 26, 2020, was purchasing equipment to support increased production levels for new programs.
+Added: Cash used in investing activities was $4.1 million during the nine months ended April 2, 2022 as compared to $9.7 million during the nine months ended April 3, 2021.
+Added: Our primary investing activity during the nine months ended April 2, 2022 and April 3, 2021, was purchasing equipment to support increased production levels for new programs.
Leases are often utilized when potential technical obsolescence and funding requirement advantages outweigh the benefits of equipment ownership.
1 unchanged sentence
Financing Cash Flow
−Removed: Cash provided by financing activities was $10.9 million during the six months ended January 1, 2022 as compared to $28.2 million in the same period of the previous fiscal year.
−Removed: Our primary financing activities during the six months ended January 1, 2022 and six months ended December 26, 2020, were borrowings and repayments under our revolving line of credit facility and term loans.
−Removed: As of January 1, 2022, approximately $17.3 million was available under the asset-based revolving credit facility.
+Added: Cash provided by financing activities was $14.0 million during the nine months ended April 2, 2022 as compared to $28.1 million in the same period of the previous fiscal year.
+Added: Our primary financing activities during the nine months ended April 2, 2022 and nine months ended April 3, 2021, were borrowings and repayments under our revolving line of credit facility and term loans.
+Added: As of April 2, 2022, approximately $15.8 million was available under the asset-based revolving credit facility.
Our cash requirements are affected by the level of current operations and new programs.
1 unchanged sentence
The Company further notes projected cash from operations from increased demand from certain customers will be partially offset by an anticipated slowdown in collections from other customers and increasing inventory levels in efforts to mitigate supply chain constraint risks.
−Removed: As of January 1, 2022, we had approximately $1.0 million of cash held by foreign subsidiaries.
+Added: As of April 2, 2022, we had approximately $1.7 million of cash held by foreign subsidiaries.
If cash is to be repatriated in the future from these foreign subsidiaries, the Company would be subject to certain withholding taxes in the foreign jurisdictions.
−Removed: The total amount of tax payments required for the amount of foreign subsidiary cash on hand as of January 1, 2022 would approximate $18,000.
+Added: The total amount of tax payments required for the amount of foreign subsidiary cash on hand as of April 2, 2022 would approximate $43,000.
We have accrued withholding taxes for expected future repatriation of foreign earnings as discussed in Note 6 of the “Notes to Consolidated Financial Statements.”
174 unchanged sentences
We are exposed to interest rate risk under our revolving line of credit and term loan.
−Removed: We currently hedge a portion of our term loan with an interest rate swap.
We have not historically hedged the interest rate on our credit facility;
therefore, unless we do so, significant changes in interest rates could adversely affect our results of operations.
−Removed: Refer to the discussion in note 4, “Long-Term Debt” to the consolidated financial statements for further details of our debt obligations.
+Added: For a summary of our debt obligations, see Note 4 Long-Term Debt of the “Notes to Consolidated Financial Statements.”
In addition, the U.K.’s Financial Conduct Authority, which regulates LIBOR, has formally announced that the publication of LIBOR is ending and confirmed that LIBOR-indexed rates will cease after June 30, 2023, with the remaining IBOR-indexed rates ceasing on December 31, 2021.
78 unchanged sentences
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.