SANFILIPPO JOHN B & SON INC, 10-Q filed on 28 Apr 21
v3.21.1
Cover Page - shares
9 Months Ended
Mar. 25, 2021
Apr. 22, 2021
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 25, 2021  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q3  
Trading Symbol JBSS  
Entity Registrant Name SANFILIPPO JOHN B & SON INC  
Security Exchange Name NASDAQ  
Entity Interactive Data Current Yes  
Entity Central Index Key 0000880117  
Current Fiscal Year End Date --06-24  
Entity Current Reporting Status Yes  
Entity Shell Company false  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Title of 12(b) Security Common Stock  
Entity Address, State or Province IL  
Entity File Number 0-19681  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 36-2419677  
Entity Address, Address Line One 1703 North Randall Road  
Entity Address, City or Town Elgin  
Entity Address, Postal Zip Code 60123-7820  
City Area Code 847  
Local Phone Number 289-1800  
Document Quarterly Report true  
Document Transition Report false  
Common Stock, Non-Cumulative Voting Rights of One Vote Per Share [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   8,870,912
Class A Common Stock [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   2,597,426
v3.21.1
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Mar. 25, 2021
Mar. 26, 2020
Mar. 25, 2021
Mar. 26, 2020
Statement of Comprehensive Income [Abstract]        
Net sales $ 207,892 $ 211,624 $ 651,740 $ 675,893
Cost of sales 161,846 168,819 513,567 540,860
Gross profit 46,046 42,805 138,173 135,033
Operating expenses:        
Selling expenses 15,090 13,880 44,868 44,095
Administrative expenses 9,859 9,528 25,539 28,013
Total operating expenses 24,949 23,408 70,407 72,108
Income from operations 21,097 19,397 67,766 62,925
Other expense:        
Interest expense including $162, $172, $494 and $651 to related parties 309 579 1,135 1,535
Rental and miscellaneous expense, net 379 308 1,176 986
Other expense 630 566 1,889 1,699
Total other expense, net 1,318 1,453 4,200 4,220
Income before income taxes 19,779 17,944 63,566 58,705
Income tax expense 5,078 4,478 16,168 14,852
Net income 14,701 13,466 47,398 43,853
Other comprehensive income:        
Amortization of prior service cost and actuarial loss included in net periodic pension cost 416 343 1,246 1,030
Income tax expense related to pension adjustments (104) (86) (311) (258)
Other comprehensive income, net of tax 312 257 935 772
Comprehensive income $ 15,013 $ 13,723 $ 48,333 $ 44,625
Net income per common share-basic $ 1.28 $ 1.17 $ 4.12 $ 3.83
Net income per common share-diluted $ 1.27 $ 1.17 $ 4.10 $ 3.80
v3.21.1
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Mar. 25, 2021
Mar. 26, 2020
Mar. 25, 2021
Mar. 26, 2020
Statement of Comprehensive Income [Abstract]        
Interest expense to related parties $ 162 $ 172 $ 494 $ 651
v3.21.1
Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Mar. 25, 2021
Jun. 25, 2020
Mar. 26, 2020
CURRENT ASSETS:      
Cash $ 1,043 $ 1,535 $ 993
Accounts receivable, less allowance for doubtful accounts of $291, $391 and $387 64,502 56,953 68,042
Inventories 151,757 172,068 188,514
Prepaid expenses and other current assets 6,481 8,315 5,249
TOTAL CURRENT ASSETS 223,783 238,871 262,798
PROPERTY, PLANT AND EQUIPMENT:      
Land 9,277 9,285 9,285
Buildings 110,739 110,294 110,278
Machinery and equipment 225,583 218,021 215,310
Furniture and leasehold improvements 5,322 5,179 5,170
Vehicles 604 682 682
Construction in progress 9,662 2,244 4,104
Property, plant and equipment gross 361,187 345,705 344,829
Less: Accumulated depreciation 247,812 239,013 237,171
Property, plant and equipment net 113,375 106,692 107,658
Rental investment property, less accumulated depreciation of $12,623, $12,018 and $11,816 16,500 17,105 17,306
TOTAL PROPERTY, PLANT AND EQUIPMENT 129,875 123,797 124,964
Intangible assets, net 10,464 12,125 12,704
Cash surrender value of officers' life insurance and other assets 9,647 11,875 9,967
Deferred income taxes 5,051 6,788 5,973
Goodwill 9,650 9,650 9,650
Operating lease right-of-use assets 3,758 4,351 4,638
TOTAL ASSETS 392,228 407,457 430,694
CURRENT LIABILITIES:      
Revolving credit facility borrowings 26,005 27,008 38,175
Current maturities of long-term debt, including related party debt of $616, $585 and $574 and net of unamortized debt issuance costs of $17, $25 and $27 3,828 5,285 6,197
Accounts payable 43,684 36,323 54,856
Bank overdraft 1,509 2,041 2,091
Accrued payroll and related benefits 19,224 25,641 21,116
Other accrued expenses 12,422 15,870 12,774
TOTAL CURRENT LIABILITIES 106,672 112,168 135,209
LONG-TERM LIABILITIES:      
Long-term debt, less current maturities, including related party debt of $8,481, $8,947 and $9,097 and net of unamortized debt issuance costs of $7, $19 and $24 11,842 14,730 15,670
Retirement plan 32,433 31,573 25,449
Long-term operating lease liabilities, net of current portion 2,359 2,990 3,259
Other 8,019 7,758 7,839
TOTAL LONG-TERM LIABILITIES 54,653 57,051 52,217
TOTAL LIABILITIES 161,325 169,219 187,426
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:      
Capital in excess of par value 125,693 123,899 123,613
Retained earnings 113,993 124,058 125,273
Accumulated other comprehensive loss (7,695) (8,630) (4,529)
Treasury stock, at cost; 117,900 shares of Common Stock (1,204) (1,204) (1,204)
TOTAL STOCKHOLDERS' EQUITY 230,903 238,238 243,268
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 392,228 407,457 430,694
Class A Common Stock [Member]      
STOCKHOLDERS' EQUITY:      
Common Stock 26 26 26
TOTAL STOCKHOLDERS' EQUITY 26 26 26
Common Stock, Non-Cumulative Voting Rights of One Vote Per Share [Member]      
STOCKHOLDERS' EQUITY:      
Common Stock 90 89 89
TOTAL STOCKHOLDERS' EQUITY $ 90 $ 89 $ 89
v3.21.1
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
Mar. 25, 2021
Jun. 25, 2020
Mar. 26, 2020
Allowance for doubtful accounts for accounts receivable, current $ 291 $ 391 $ 387
Accumulated depreciation of rental investment property 12,623 12,018 11,816
Current maturities of long-term debt, related party debt 616 585 574
Unamortized debt issuance costs, current 17 25 27
Related party debt, Non-current 8,481 8,947 9,097
Unamortized debt issuance costs, noncurrent $ 7 $ 19 $ 24
Treasury stock, shares 117,900 117,900 117,900
Class A Common Stock [Member]      
Common stock, par value $ 0.01 $ 0.01 $ 0.01
Common stock, shares authorized 10,000,000 10,000,000 10,000,000
Common stock, shares issued 2,597,426 2,597,426 2,597,426
Common stock, shares outstanding 2,597,426 2,597,426 2,597,426
Common Stock, Non-Cumulative Voting Rights of One Vote Per Share [Member]      
Common stock, par value $ 0.01 $ 0.01 $ 0.01
Common stock, shares authorized 17,000,000 17,000,000 17,000,000
Common stock, shares issued 8,988,812 8,939,890 8,939,390
v3.21.1
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands
Total
Capital in Excess of Par Value [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Loss [Member]
Treasury Stock [Member]
Class A Common Stock [Member]
Common Stock, Non-Cumulative Voting Rights of One Vote Per Share [Member]
Balance at Jun. 27, 2019 $ 254,555 $ 122,257 $ 137,712 $ (4,325) $ (1,204) $ 26 $ 89
Balance, Shares at Jun. 27, 2019           2,597,426 8,909,406
Net income 12,926   12,926        
Cash dividends (34,321)   (34,321)        
Pension liability amortization, net of income tax (expense) 257     257      
Impact of adopting ASU 2018-02 0   976 (976)      
Stock-based compensation expense 633 633          
Balance at Sep. 26, 2019 234,050 122,890 117,293 (5,044) (1,204) $ 26 $ 89
Balance, Shares at Sep. 26, 2019           2,597,426 8,909,406
Net income 17,461   17,461        
Cash dividends (22,947)   (22,947)        
Pension liability amortization, net of income tax (expense) 258     258      
Equity award exercises , net of shares withheld for employee taxes (761) (761)          
Equity award exercises , net of shares withheld for employee taxes, shares             27,830
Stock-based compensation expense 855 855          
Balance at Dec. 26, 2019 228,916 122,984 111,807 (4,786) (1,204) $ 26 $ 89
Balance, Shares at Dec. 26, 2019           2,597,426 8,937,236
Net income 13,466   13,466        
Pension liability amortization, net of income tax (expense) 257     257      
Equity award exercises , net of shares withheld for employee taxes (73) (73)          
Equity award exercises , net of shares withheld for employee taxes, shares             2,154
Stock-based compensation expense 702 702          
Balance at Mar. 26, 2020 243,268 123,613 125,273 (4,529) (1,204) $ 26 $ 89
Balance, Shares at Mar. 26, 2020           2,597,426 8,939,390
Balance at Jun. 25, 2020 238,238 123,899 124,058 (8,630) (1,204) $ 26 $ 89
Balance, Shares at Jun. 25, 2020           2,597,426 8,939,890
Net income 12,812   12,812        
Cash dividends (28,685)   (28,685)        
Pension liability amortization, net of income tax (expense) 312     312      
Equity award exercises , net of shares withheld for employee taxes, shares             221
Stock-based compensation expense 622 622          
Balance at Sep. 24, 2020 223,299 124,521 108,185 (8,318) (1,204) $ 26 $ 89
Balance, Shares at Sep. 24, 2020           2,597,426 8,940,111
Balance at Jun. 25, 2020 238,238 123,899 124,058 (8,630) (1,204) $ 26 $ 89
Balance, Shares at Jun. 25, 2020           2,597,426 8,939,890
Net income 47,398            
Balance at Mar. 25, 2021 230,903 125,693 113,993 (7,695) (1,204) $ 26 $ 90
Balance, Shares at Mar. 25, 2021           2,597,426 8,988,812
Balance at Sep. 24, 2020 223,299 124,521 108,185 (8,318) (1,204) $ 26 $ 89
Balance, Shares at Sep. 24, 2020           2,597,426 8,940,111
Net income 19,885   19,885        
Pension liability amortization, net of income tax (expense) 311     311      
Equity award exercises , net of shares withheld for employee taxes (486) (487)         $ 1
Equity award exercises , net of shares withheld for employee taxes, shares             43,477
Stock-based compensation expense 998 998          
Balance at Dec. 24, 2020 244,007 125,032 128,070 (8,007) (1,204) $ 26 $ 90
Balance, Shares at Dec. 24, 2020           2,597,426 8,983,588
Net income 14,701   14,701        
Cash dividends (28,778)   (28,778)        
Pension liability amortization, net of income tax (expense) 312     312      
Equity award exercises , net of shares withheld for employee taxes (49) (49)          
Equity award exercises , net of shares withheld for employee taxes, shares             5,224
Stock-based compensation expense 710 710          
Balance at Mar. 25, 2021 $ 230,903 $ 125,693 $ 113,993 $ (7,695) $ (1,204) $ 26 $ 90
Balance, Shares at Mar. 25, 2021           2,597,426 8,988,812
v3.21.1
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended
Mar. 25, 2021
Sep. 24, 2020
Dec. 26, 2019
Sep. 26, 2019
Statement of Stockholders' Equity [Abstract]        
Cash dividends per common share $ 2.50 $ 2.50 $ 2.00 $ 3.00
Pension liability amortization income tax expense $ 104 $ 104 $ 86 $ 86
v3.21.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Mar. 25, 2021
Mar. 26, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 47,398 $ 43,853
Depreciation and amortization 13,665 13,521
Gain on disposition of assets, net (2,733) (899)
Deferred income tax expense (benefit) 1,737 (250)
Stock-based compensation expense 2,330 2,190
Change in assets and liabilities:    
Accounts receivable, net (7,553) (6,196)
Inventories 20,311 (31,490)
Prepaid expenses and other current assets 1,834 398
Accounts payable 7,498 12,080
Accrued expenses (6,138) (1,576)
Income taxes payable (3,727) 1,039
Other long-term assets and liabilities 605 806
Other, net 1,799 1,486
Net cash provided by operating activities 77,026 34,962
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property, plant and equipment (15,769) (10,560)
Proceeds from insurance recoveries 2,506 232
Other (357) (205)
Net cash used in investing activities (13,620) (10,533)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net short-term (repayments) borrowings (1,003) 38,175
Debt issue costs   (410)
Principal payments on long-term debt (4,365) (5,880)
(Decrease) increase in bank overdraft (532) 1,190
Dividends paid (57,463) (57,268)
Taxes paid related to net share settlement of equity awards (535) (834)
Net cash used in financing activities (63,898) (25,027)
NET DECREASE IN CASH (492) (598)
Cash, beginning of period 1,535 1,591
Cash, end of period $ 1,043 993
Supplemental disclosure of non-cash activities:    
Right-of-use assets recognized at ASU No. 2016-02 transition   $ 5,361
v3.21.1
Basis of Presentation and Description of Business
9 Months Ended
Mar. 25, 2021
Accounting Policies [Abstract]  
Basis of Presentation and Description of Business
Note 1 – Basis of Presentation and Description of Business
As used herein, unless the context otherwise indicates, the terms “we”, “us”, “our” or “Company” collectively refer to John B. Sanfilippo & Son, Inc. and our wholly-owned subsidiary, JBSS Ventures, LLC. Our fiscal year ends on the final Thursday of June each year, and typically consists of
fifty-two
weeks (four thirteen-week quarters). Additional information on the comparability of the periods presented is as follows:
 
   
References herein to fiscal 2021 and fiscal 2020 are to the fiscal year ending June 24, 2021 and the fiscal year ended June 25, 2020, respectively.
 
   
References herein to the third quarter of fiscal 2021 and fiscal 2020 are to the quarters ended March 25, 2021 and March 26, 2020, respectively.
 
   
References herein to the first three quarters or first thirty-nine weeks of fiscal 2021 and fiscal 2020 are to the thirty-nine weeks ended March 25, 2021 and March 26, 2020, respectively.
We are one of the leading processors and distributors of peanuts, pecans, cashews, walnuts, almonds, and other nuts in the United States. These nuts are sold under our
Fisher
,
Orchard Valley Harvest
,
Squirrel Brand
,
Southern Style Nuts
and
Sunshine Country
brand names and under a variety of private brands. We also market and distribute, and in most cases, manufacture or process, a diverse product line of food and snack products, including peanut butter, almond butter, cashew butter, candy and confections, snacks and trail mixes, snack bites, sunflower kernels, dried fruit, corn snacks, chickpea snacks, sesame sticks and other sesame snack products under our brand names and under private brands. Our products are sold through three primary distribution channels, including food retailers in the consumer channel, commercial ingredient users and contract packaging customers.
The accompanying unaudited financial statements fairly present the consolidated statements of comprehensive income, consolidated balance sheets, consolidated statements of stockholders’ equity and consolidated statements of cash flows, and reflect all adjustments, consisting only of normal recurring adjustments which are necessary for the fair statement of the results of the interim periods. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.
The interim results of operations are not necessarily indicative of the results to be expected for a full year. The balance sheet data as of June 25, 2020 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). Accordingly, these unaudited financial statements and related notes should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2020 Annual Report on Form
10-K
for the fiscal year ended June 25, 2020.
v3.21.1
Revenue Recognition
9 Months Ended
Mar. 25, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 2 – Revenue Recognition
We recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. For each customer contract, a five-step process is followed in which we identify the contract, identify performance obligations, determine the transaction price, allocate the contract transaction price to the performance obligations, and recognize the revenue when (or as) the performance obligation is transferred to the customer.
When Performance Obligations Are Satisfied
A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s performance obligations are primarily for the delivery of raw and processed recipe and snack nuts, nut butters and trail mixes.
Our customer contracts do not include more than one performance obligation. If a contract were to contain more than one performance obligation, we are required to allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price. The standalone selling price for each distinct good is generally determined by directly observable data.
Revenue recognition is generally completed at a point in time when product control is transferred to the customer. For virtually all of our revenues, control transfers to the customer when the product is shipped or delivered to the customer based upon applicable shipping terms, as the customer can then direct the use and obtain substantially all of the remaining benefits from the asset at that point in time. Therefore, the timing of our revenue recognition requires little judgment.
Variable Consideration
Some of our products are sold through specific incentive programs consisting of promotional allowances, volume and customer rebates,
in-store
display incentives and marketing allowances, among others, to consumer and some commercial ingredient customers. The ultimate cost of these programs is dependent on certain factors such as actual purchase volumes or customer activities and is dependent on significant management judgment when determining estimates. The Company accounts for these programs as variable consideration and recognizes a reduction in revenue (and a corresponding reduction in the transaction price) in the same period as the underlying program based upon the terms of the specific arrangements.
Trade promotions, consisting primarily of customer pricing allowances, merchandising funds and consumer coupons, are also offered through various programs to customers and consumers. A provision for estimated trade promotions is recorded as a reduction of revenue (and a reduction in the transaction price) in the same period when the sale is recognized. Revenues are also recorded net of expected customer deductions which are provided for based upon past experiences. Evaluating these estimates requires management judgment.
We generally use the most likely amount method to determine the variable consideration. We believe there will not be significant changes to our estimates of variable consideration when any related uncertainties are resolved with our customers. The Company reviews and updates its estimates and related accruals of variable consideration and trade promotions at least quarterly based on the terms of the agreements and historical experience. Any uncertainties in the ultimate resolution of variable consideration due to factors outside of the Company’s influence are typically resolved within a short timeframe, therefore, no additional constraint on the variable consideration is required.
Contract Balances
Contract assets or liabilities result from transactions with revenue recorded over time. If the measure of remaining rights exceeds the measure of the remaining performance obligations the Company records a contract asset. Conversely, if the measure of the remaining performance obligations exceeds the measure of the remaining rights, the Company records a contract liability. There was no contract asset balance for any periods presented. The Company generally does not have material deferred revenue or contract liability balances arising from transactions with customers.
Disaggregation of Revenue
Revenue disaggregated by sales channel is as follows:
 
    
For the Quarter Ended
    
For the Thirty-Nine
 
Weeks
Ended
 
Distribution Channel
  
March 25,

2021
    
March 26,

2020
    
March 25,

2021
    
March 26,

2020
 
Consumer
   $ 169,415      $ 158,616      $ 528,201      $ 503,848  
Commercial Ingredients
     21,052        30,312        64,399        101,447  
Contract Packaging
     17,425        22,696        59,140        70,598  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 207,892      $ 211,624      $ 651,740      $ 675,893  
    
 
 
    
 
 
    
 
 
    
 
 
 
v3.21.1
Leases
9 Months Ended
Mar. 25, 2021
Leases [Abstract]  
Leases
Note 3 – Leases
Description of Leases
We lease equipment used in the transportation of goods in our warehouses, as well as a limited number of automobiles and a small warehouse near our Bainbridge, Georgia facility. Our leases generally do not contain
non-lease
components and do not contain any explicit guarantees of residual value. Our leases for warehouse transportation equipment generally require the equipment to be returned to the lessor in good working order.
We determine if an arrangement is a lease at inception and analyze the lease to determine if it is operating or finance. Operating lease
right-of-use
assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease
right-of-use
assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental collateralized borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Implicit rates are used when readily determinable. None of our leases currently contain options to extend the term. In the event of an option to extend the term of a lease, the lease term used in measuring the liability would include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the respective lease term. Our leases have remaining terms of up to 5.3 years.
It is our accounting policy to not apply lease recognition requirements to short term leases, defined as leases with an initial term of 12 months or less. As such, leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheet. We have also made the policy election to not separate lease and
non-lease
components for all leases.
The following table provides supplemental information related to operating lease
right-of-use
assets and liabilities:
 
    
March 25,

2021
    
June 25,

2020
    
March 26,
2020
    
Affected Line Item in
Consolidated Balance Sheet
 
Assets
                               
Operating lease
right-of-use
assets
   $ 3,758      $ 4,351      $ 4,638     
Operating lease
right-of-use
assets
    
 
 
    
 
 
    
 
 
      
Total lease
right-of-use
assets
   $ 3,758      $ 4,351      $ 4,638       
    
 
 
    
 
 
    
 
 
      
Liabilities
                               
Current:
                               
Operating leases
   $ 1,449      $ 1,376      $ 1,374     
Other accrued expenses
Noncurrent:
                               
Operating leases
     2,359        2,990        3,259     
Long-term operating lease liabilities
    
 
 
    
 
 
    
 
 
      
Total lease liabilities
   $ 3,808      $ 4,366      $ 4,633       
    
 
 
    
 
 
    
 
 
      
The following tables summarize the Company’s total lease costs and other information arising from operating lease transactions:
 
    
For the Quarter Ended
    
For the Thirty-nine
 
Weeks Ended
 
    
March 25,

2021
    
March 26,

2020
    
March 25,

2021
    
March 26,
2020
 
Operating lease costs
(a)
   $ 437      $ 432      $ 1,387      $ 1,266  
Variable lease costs
(b)
     17        16        54        47  
Total Lease Cost
   $ 454      $ 448      $ 1,441      $ 1,313  
    
 
 
    
 
 
    
 
 
    
 
 
 
 
(a)
 
Includes short-term leases which are immaterial.
(b)
 
Variable lease costs consist of sales tax.
 
Supplemental cash flow and other information related to leases was as follows:
 
    
For the Thirty-nine
 
Weeks
 
Ended
 
    
March 25,
2021
    
March 26,
2020
 
Operating cash flows information:
                 
Cash paid for amounts included in measurements for lease liabilities
   $ 1,171      $ 1,163  
Non-cash
activity:
                 
Right-of-use
assets obtained in exchange for new operating lease obligations
   $ 490      $ 326  
 
    
March 25,
2021
   
June 25,

2020
   
March 26,
2020
 
Weighted Average Remaining Lease Term (in years)
     3.0       3.4       3.6  
Weighted Average Discount Rate
     4.3     4.4     4.4
Maturities of operating lease liabilities as of March 25, 2021 are as follows:
 
Fiscal year ending
        
June 24, 2021 (excluding the thirty-nine weeks ended March 25, 2021)
   $ 438  
June 30, 2022
     1,486  
June 29, 2023
     1,236  
June 27, 2024
     593  
June 26, 2025
     231  
June 25, 2026
     59  
Thereafter
      
    
 
 
 
Total lease payment
     4,043  
Less imputed interest
     (235
    
 
 
 
Present value of operating lease liabilities
   $ 3,808  
    
 
 
 
Lessor Accounting
We lease office space in our four-story office building located in Elgin, Illinois. As a lessor, we retain substantially all of the risks and benefits of ownership of the investment property and under Topic 842 we continue to account for all of our leases as operating leases. Lease agreements may include options to renew. We accrue fixed lease income on a
straight-line
basis over the terms of the leases. There is generally no variable lease consideration and an immaterial amount of
non-lease
components such as recurring utility and storage fees. Leases between related parties are immaterial.
Leasing revenue is as follows:
 
    
For the Quarter ended
    
For the Thirty-nine
 
weeks ended
 
    
March 25,
2021
    
March 26,
2020
    
March 25,
2021
    
March 26,
2020
 
Lease income related to lease payments
   $  451      $  510      $  1,354      $  1,515  
 
The future minimum, undiscounted fixed cash flows under
non-cancelable
tenant operating leases for each of the next five years and thereafter is presented below.
 
Fiscal year ending
        
June 24, 2021 (excluding the thirty-nine weeks ended March 25, 2021)
   $ 499  
June 30, 2022
     1,747  
June 29, 2023
     1,790  
June 27, 2024
     1,818  
June 26, 2025
     1,228  
June 25, 2026
     670  
Thereafter
     614  
    
 
 
 
     $ 8,366  
v3.21.1
Inventories
9 Months Ended
Mar. 25, 2021
Inventory Disclosure [Abstract]  
Inventories
Note 4 – Inventories
Inventories consist of the following:
 
    
March 25,

2021
    
June 25,

2020
    
March 26,

2020
 
Raw material and supplies
   $ 73,068      $ 69,276      $ 87,120  
Work-in-process
and finished goods
     78,689        102,792        101,394  
    
 
 
    
 
 
    
 
 
 
Total
   $ 151,757      $ 172,068      $ 188,514  
    
 
 
    
 
 
    
 
 
 
v3.21.1
Goodwill and Intangible Assets
9 Months Ended
Mar. 25, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
Note 5 – Goodwill and Intangible Assets
Identifiable intangible assets that are subject to amortization consist of the following:
 
    
March 25,
 
2021
    
June 25,
 
2020
    
March 26,
 
2020
 
Customer relationships
   $ 21,100      $ 21,100      $ 21,100  
Brand names
     16,990        16,990        16,990  
Non-compete
agreement
     270        270        270  
    
 
 
    
 
 
    
 
 
 
       38,360        38,360        38,360  
Less accumulated amortization:
                          
Customer relationships
     (17,326      (16,223      (15,830
Brand names
     (10,390      (9,873      (9,700
Non-compete
agreement
     (180      (139      (126
    
 
 
    
 
 
    
 
 
 
       (27,896      (26,235      (25,656
    
 
 
    
 
 
    
 
 
 
Net intangible assets
   $ 10,464      $ 12,125      $ 12,704  
    
 
 
    
 
 
    
 
 
 
Customer relationships are being amortized on an accelerated basis. The brand names remaining to be amortized consist of the
Squirrel Brand
and
Southern Style Nuts
brand names.
Total amortization expense related to intangible assets, which is recorded within Administrative expense, was $504 and $1,661 for the quarter and thirty-nine weeks ended March 25, 2021, respectively. Amortization expense for the remainder of fiscal 2021 is expected to be approximately $504 and expected amortization expense the next five fiscal years is as follows:
 
Fiscal year ending
 
June 30, 2022
   $ 1,896  
June 29, 2023
     1,657  
June 27, 2024
     1,414  
June 26, 2025
     1,156  
June 25, 2026
     861  
Our net goodwill of $9,650 relates entirely to the Squirrel Brand acquisition completed in the second quarter of fiscal 2018. There was no change in the carrying amount of goodwill during the thirty-nine weeks ended March 25, 2021.
v3.21.1
Credit Facility
9 Months Ended
Mar. 25, 2021
Debt Disclosure [Abstract]  
Credit Facility
Note 6 – Credit Facility
Our Amended and Restated Credit Agreement dated March 5, 2020 provides for a $117,500 senior secured revolving credit facility (the “Credit Facility”). The Credit Facility is secured by substantially all our assets other than machinery and equipment, real property and fixtures.
At March 25, 2021, we had $88,310 of available credit under the Credit Facility which reflects borrowings of $26,005 and reduced availability as a result of $3,185 in outstanding letters of credit. As of March 25, 2021, we were in compliance with all financial covenants under the Credit Facility and Mortgage Facility (as defined below).
v3.21.1
Earnings Per Common Share
9 Months Ended
Mar. 25, 2021
Earnings Per Share [Abstract]  
Earnings Per Common Share
Note 7 – Earnings Per Common Share
The following table presents the reconciliation of the weighted average shares outstanding used in computing basic and diluted earnings per share:
 
    
For the Quarter Ended
    
For the Thirty-Nine Weeks
Ended
 
    
March 25,
2021
    
March 26,
2020
    
March 25,
2021
    
March 26,
2020
 
Weighted average number of shares outstanding – basic
     11,515,465        11,475,874        11,495,504        11,459,653  
Effect of dilutive securities:
                                   
Stock options and restricted stock units
     58,552        63,767        57,206        75,015  
    
 
 
    
 
 
    
 
 
    
 
 
 
Weighted average number of shares outstanding – diluted
     11,574,017        11,539,641        11,552,710        11,534,668  
    
 
 
    
 
 
    
 
 
    
 
 
 
The following table presents a summary of anti-dilutive awards excluded from the computation of diluted earnings per share:
 
    
For the Quarter Ended
    
For the Thirty-Nine Weeks

Ended
 
    
March 25,

2021
    
March 26,

2020
    
March 25,

2021
    
March 26,

2020
 
Weighted average number of anti-dilutive awards:
            28,040               9,347  
Weighted average exercise price per award:
   $      $ 90.26      $      $ 90.26  
v3.21.1
Stock-Based Compensation Plans
9 Months Ended
Mar. 25, 2021
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Plans
Note 8 – Stock-Based Compensation Plans
The following is a summary of restricted stock unit (“RSU”) activity for the first thirty-nine weeks of fiscal 2021:
 
Restricted Stock Units
  
Shares
    
Weighted
Average Grant
Date Fair Value
 
Outstanding at June 25,
 
2020
     166,879      $ 51.62  
Activity:
                 
Granted
     54,966        68.97  
Vested
(a)
     (55,826      48.46  
Forfeited
     (2,356      70.58  
    
 
 
    
 
 
 
Outstanding at March 25, 2021
     163,663      $ 58.25  
    
 
 
    
 
 
 
 
(a)
The number of RSUs vested includes shares that were withheld on behalf of employees to satisfy the statutory income tax withholding requirements.
At March 25, 2021, there are 47,127 RSUs outstanding that are vested but deferred.
The following table summarizes compensation expense charged to earnings for all equity compensation plans for the periods presented:
 
    
For the Quarter Ended
    
For the Thirty-Nine
 
Weeks
Ended
 
    
March 25,

2021
    
March 26,

2020
    
March 25,

2021
    
March 26,

2020
 
Stock-based compensation expense
   $ 710      $ 702      $ 2,330      $ 2,190  
As of March 25, 2021, there was $4,602 of total unrecognized compensation expense related to
non-vested
RSUs granted under our stock-based compensation plans. We expect to recognize that cost over a weighted average period of 1.6 years.
v3.21.1
Retirement Plan
9 Months Ended
Mar. 25, 2021
Retirement Benefits [Abstract]  
Retirement Plan
Note 9 – Retirement Plan
The Supplemental Employee Retirement Plan is an unfunded,
non-qualified
deferred compensation plan that will provide eligible participants with monthly benefits upon retirement, disability or death, subject to certain conditions. The monthly benefit is based upon each participant’s earnings and his or her number of years of service. The components of net periodic benefit cost are as follows:
 
    
For the Quarter Ended
    
For the Thirty-Nine
 
Weeks
Ended
 
    
March 25,

2021
    
March 26,

2020
    
March 25,

2021
    
March 26,

2020
 
Service cost
   $ 236      $ 178      $ 708      $ 534  
Interest cost
     214        223        643        669  
Amortization of prior service cost
     120        239        359        718  
Amortization of loss
     296        104        887        312  
    
 
 
    
 
 
    
 
 
    
 
 
 
Net periodic benefit cost
   $ 866      $ 744      $ 2,597      $ 2,233  
    
 
 
    
 
 
    
 
 
    
 
 
 
The components of net periodic benefit cost other than the service cost component are included in the line item “Other expense” in the Consolidated Statements of Comprehensive Income.
v3.21.1
Accumulated Other Comprehensive Loss
9 Months Ended
Mar. 25, 2021
Equity [Abstract]  
Accumulated Other Comprehensive Loss
Note 10 – Accumulated Other Comprehensive Loss
The table below sets forth the changes to accumulated other comprehensive loss (“AOCL”) for the thirty-nine weeks ended March 25, 2021 and March 26, 2020.
These changes are all related to our defined benefit pension plan.
 
    
For the Thirty-Nine
Weeks Ended
 
Changes to AOCL
(a)
  
March 25,

2021
    
March 26,

2020
 
Balance at beginning of period
   $ (8,630    $ (4,325
Other comprehensive income before reclassifications
             
Amounts reclassified from accumulated other comprehensive loss
     1,246        1,030  
Tax effect
     (311      (258
    
 
 
    
 
 
 
Net current-period other comprehensive income
     935        772  
Impact of adopting ASU
2018-02
            (976
    
 
 
    
 
 
 
Balance at end of period
   $ (7,695    $ (4,529
    
 
 
    
 
 
 
 
(a)
Amounts in parenthesis indicate debits/expense.
The reclassifications out of AOCL for the quarter and thirty-nine weeks ended March 25, 2021 and March 26, 2020 were as follows:
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
Affected line

item in

the Consolidated
Statements of
Comprehensive
Income
 
Reclassifications from AOCL to earnings
(b)
  
For the Quarter Ended
 
 
For the Thirty-Nine Weeks

Ended
 
  
March 25,

2021
 
 
March 26,

2020
 
 
March 25,

2021
 
 
March 26,

2020
 
Amortization of defined benefit pension items:
  
     
 
     
 
     
 
     
 
     
Unrecognized prior service cost
  
$
(120
 
$
(239
 
$
(359
 
$
(718
 
 
Other expense
 
Unrecognized net loss
  
 
(296
 
 
(104
 
 
(887
 
 
(312
 
 
Other expense
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
Total before tax
  
 
(416
 
 
(343
 
 
(1,246
 
 
(1,030
 
     
Tax effect
  
 
104
 
 
 
86
 
 
 
311
 
 
 
258
 
 
 
Income tax expense
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
Amortization of defined pension items, net of tax
  
$
(312
 
$
(257
 
$
(935
 
$
(772
 
     
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
 
(b)
 
Amounts in parenthesis indicate debits to expense. See Note 9 – “Retirement Plan” above for additional details.
v3.21.1
Commitments and Contingent Liabilities
9 Months Ended
Mar. 25, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingent Liabilities
Note 11 – Commitments and Contingent Liabilities
We are currently a party to various legal proceedings in the ordinary course of business. While management presently believes that the ultimate outcomes of these proceedings, individually and in the aggregate, will not materially affect our Company’s financial position, results of operations or cash flows, legal proceedings are subject to inherent uncertainties, and unfavorable outcomes could occur. Unfavorable outcomes could include substantial monetary damages in excess of any appropriate accruals, which management has established. Where such unfavorable final outcomes to occur, there exists the possibility of a material adverse effect on our financial position, results of operations and cash flows.
v3.21.1
Fair Value of Financial Instruments
9 Months Ended
Mar. 25, 2021
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
Note 12 – Fair Value of Financial Instruments
The Financial Accounting Standards Board (“FASB”) defines fair value as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels:
 
Level 1
 
 
Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities.
     
Level 2
 
 
Observable inputs other than quoted prices in active markets. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
     
Level 3
 
 
Unobservable inputs for which there is little or no market data available.
The carrying values of cash, trade accounts receivable and accounts payable approximate their fair values at each balance sheet date because of the short-term maturities and nature of these balances.
The carrying value of our revolving credit facility borrowings approximates fair value at each balance sheet date because interest rates on this instrument approximate current market rates (Level 2 criteria), and because of the short-term maturity and nature of this balance. In addition, there has been no significant change in our inherent credit risk.
The following table summarizes the carrying value and fair value estimate of our current and long-term debt, excluding unamortized debt issuance costs:
 
    
March 25,
2021
    
June 25,

2020
    
March 26,

2020
 
Carrying value of long-term debt:
   $ 15,694      $ 20,059      $ 21,918  
Fair value of long-term debt:
     16,250        20,186        22,946  
The estimated fair value of our long-term debt was determined using a market approach based upon Level 2 observable inputs, which estimates fair value based on interest rates currently offered on loans with similar terms to borrowers of similar credit quality or broker quotes. In addition, there have been no significant changes in the underlying assets securing our long-term debt.
v3.21.1
Related Party Transaction
9 Months Ended
Mar. 25, 2021
Related Party Transactions [Abstract]  
Related Party Transaction
Note 13 – Related Party Transaction
In connection with the acquisition of the Squirrel Brand business in the second quarter of fiscal 2018, we incurred $11,500 of unsecured debt pursuant to a promissory note (the “Promissory Note”) to the principal owner and seller of the Squirrel Brand business, who was subsequently appointed as an executive officer of the Company and was considered a related party. Late in the second quarter of fiscal 2020, the employment of this executive officer with the Company ceased. He is no longer considered a related party, and therefore the outstanding bala
n
ce on the Promissory Note is not reflected as related party debt on our Consolidated Balance Sheet for any periods presented. There was no related party interest paid to this former executive officer during the thirty-nine weeks ended March 
25
, 2021 or the quarter ended March 
26
, 2020. Interest paid while the former executive officer was a related party was $127 for the thirty-nine weeks ended March 
26
, 2020.
v3.21.1
Garysburg, North Carolina Facility
9 Months Ended
Mar. 25, 2021
Damage From Fire In Business Unit [Abstract]  
Garysburg, North Carolina Facility
Note 14 – Garysburg, North Carolina Facility
On October 7, 2019 we experienced a fire at our peanut processing facility located in Garysburg, North Carolina. The fire occurred in our roasting room where all of the roasting equipment was destroyed. The fire also damaged some equipment in our packaging room and a portion of the roof. During fiscal 2020, the building and roof were repaired and brought back to their original condition.
After evaluating our options with regard to our peanut production operations, the Company currently plans to cease all operations permanently at the Garysburg facility. We completed shelling of the 2019 peanut crop during the second quarter of this fiscal year and the facility will continue to be used to store and ship inshell peanuts through the remainder of fiscal 2021. During fiscal 2020 we manufactured and sold approximately 6 million pounds of inshell peanuts from this facility and plan to discontinue that product line at the end of the current fiscal year. We also expect to spend the remainder of the 2021 fiscal year cleaning and preparing the facility for sale or other utilization in our operations. Employee separation and related closure costs were immaterial for all periods presented.
Insurance proceeds totaling $2,934 were received from the insurance carrier in fiscal 2020, and the final payment of $2,730 was received during the current third quarter. Insurance proceeds received for damage to capital equipment are recorded as investing activities on the Consolidated Statements of Cash Flows when received.
v3.21.1
Recent Accounting Pronouncements
9 Months Ended
Mar. 25, 2021
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements
Note 15 – Recent Accounting Pronouncements
The following recent accounting pronouncements have been adopted in the current fiscal year:
In August 2018, the FASB issued ASU
No. 2018-15
Intangibles – Goodwill and Other –
Internal-Use
Software (Subtopic
350-40):
Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract
”. The amendments in this Update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain
internal-use
software (and hosting arrangements that include an internal use software license). ASU
No. 2018-15
was adopted using the prospective method in the first quarter of fiscal 2021 and did not have a material impact on our Consolidated Financial Statements.
 
In August 2018, the FASB issued ASU
No. 2018-14
Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic
715-20):
Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans
”. The amendments in this Update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this Update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. ASU
No. 2018-14
was adopted on a retrospective basis to all periods presented in the first quarter of fiscal 2021 and had no impact on our quarterly Consolidated Financial Statements.
 
In January 2017, the FASB issued ASU
No. 2017-04
“Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”.
The amendments in this Update eliminate the need for entities to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination, commonly referred to as “Step 2”. Under this amendment, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value. ASU
No. 2017-04
was adopted in the first quarter of fiscal 2021 and did not have a material impact on our Consolidated Financial Statements.
In June 2016, the FASB issued ASU
No. 2016-13
Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
”. The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU
No. 2016-13
was adopted using a modified retrospective transition method in the first quarter of fiscal 2021 and did not have a material impact on our Consolidated Financial Statements.
There are no recent accounting pronouncements that have been issued and not yet adopted that are expected to have a material impact on our Consolidated Financial Statements.
v3.21.1
Revenue Recognition (Policies)
9 Months Ended
Mar. 25, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 2 – Revenue Recognition
We recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. For each customer contract, a five-step process is followed in which we identify the contract, identify performance obligations, determine the transaction price, allocate the contract transaction price to the performance obligations, and recognize the revenue when (or as) the performance obligation is transferred to the customer.
When Performance Obligations Are Satisfied
A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s performance obligations are primarily for the delivery of raw and processed recipe and snack nuts, nut butters and trail mixes.
Our customer contracts do not include more than one performance obligation. If a contract were to contain more than one performance obligation, we are required to allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price. The standalone selling price for each distinct good is generally determined by directly observable data.
Revenue recognition is generally completed at a point in time when product control is transferred to the customer. For virtually all of our revenues, control transfers to the customer when the product is shipped or delivered to the customer based upon applicable shipping terms, as the customer can then direct the use and obtain substantially all of the remaining benefits from the asset at that point in time. Therefore, the timing of our revenue recognition requires little judgment.
Variable Consideration
Some of our products are sold through specific incentive programs consisting of promotional allowances, volume and customer rebates,
in-store
display incentives and marketing allowances, among others, to consumer and some commercial ingredient customers. The ultimate cost of these programs is dependent on certain factors such as actual purchase volumes or customer activities and is dependent on significant management judgment when determining estimates. The Company accounts for these programs as variable consideration and recognizes a reduction in revenue (and a corresponding reduction in the transaction price) in the same period as the underlying program based upon the terms of the specific arrangements.
Trade promotions, consisting primarily of customer pricing allowances, merchandising funds and consumer coupons, are also offered through various programs to customers and consumers. A provision for estimated trade promotions is recorded as a reduction of revenue (and a reduction in the transaction price) in the same period when the sale is recognized. Revenues are also recorded net of expected customer deductions which are provided for based upon past experiences. Evaluating these estimates requires management judgment.
We generally use the most likely amount method to determine the variable consideration. We believe there will not be significant changes to our estimates of variable consideration when any related uncertainties are resolved with our customers. The Company reviews and updates its estimates and related accruals of variable consideration and trade promotions at least quarterly based on the terms of the agreements and historical experience. Any uncertainties in the ultimate resolution of variable consideration due to factors outside of the Company’s influence are typically resolved within a short timeframe, therefore, no additional constraint on the variable consideration is required.
Contract Balances
Contract assets or liabilities result from transactions with revenue recorded over time. If the measure of remaining rights exceeds the measure of the remaining performance obligations the Company records a contract asset. Conversely, if the measure of the remaining performance obligations exceeds the measure of the remaining rights, the Company records a contract liability. There was no contract asset balance for any periods presented. The Company generally does not have material deferred revenue or contract liability balances arising from transactions with customers.
Disaggregation of Revenue
Revenue disaggregated by sales channel is as follows:
 
    
For the Quarter Ended
    
For the Thirty-Nine
 
Weeks
Ended
 
Distribution Channel
  
March 25,

2021
    
March 26,

2020
    
March 25,

2021
    
March 26,

2020
 
Consumer
   $ 169,415      $ 158,616      $ 528,201      $ 503,848  
Commercial Ingredients
     21,052        30,312        64,399        101,447  
Contract Packaging
     17,425        22,696        59,140        70,598  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 207,892      $ 211,624      $ 651,740      $ 675,893  
    
 
 
    
 
 
    
 
 
    
 
 
 
v3.21.1
Revenue Recognition (Tables)
9 Months Ended
Mar. 25, 2021
Revenue from Contract with Customer [Abstract]  
Summary of Revenue Disaggregated by Sales Channel
Revenue disaggregated by sales channel is as follows:
 
    
For the Quarter Ended
    
For the Thirty-Nine
 
Weeks
Ended
 
Distribution Channel
  
March 25,

2021
    
March 26,

2020
    
March 25,

2021
    
March 26,

2020
 
Consumer
   $ 169,415      $ 158,616      $ 528,201      $ 503,848  
Commercial Ingredients
     21,052        30,312        64,399        101,447  
Contract Packaging
     17,425        22,696        59,140        70,598  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 207,892      $ 211,624      $ 651,740      $ 675,893  
    
 
 
    
 
 
    
 
 
    
 
 
 
v3.21.1
Leases (Tables)
9 Months Ended
Mar. 25, 2021
Leases [Abstract]  
Supplemental information related to operating lease right-of-use assets and liabilities
The following table provides supplemental information related to operating lease
right-of-use
assets and liabilities:
 
    
March 25,

2021
    
June 25,

2020
    
March 26,
2020
    
Affected Line Item in
Consolidated Balance Sheet
 
Assets
                               
Operating lease
right-of-use
assets
   $ 3,758      $ 4,351      $ 4,638     
Operating lease
right-of-use
assets
    
 
 
    
 
 
    
 
 
      
Total lease
right-of-use
assets
   $ 3,758      $ 4,351      $ 4,638       
    
 
 
    
 
 
    
 
 
      
Liabilities
                               
Current:
                               
Operating leases
   $ 1,449      $ 1,376      $ 1,374     
Other accrued expenses
Noncurrent:
                               
Operating leases
     2,359        2,990        3,259     
Long-term operating lease liabilities
    
 
 
    
 
 
    
 
 
      
Total lease liabilities
   $ 3,808      $ 4,366      $ 4,633       
    
 
 
    
 
 
    
 
 
      
Summary of company's total lease costs and other information arising from operating lease transactions
The following tables summarize the Company’s total lease costs and other information arising from operating lease transactions:
 
    
For the Quarter Ended
    
For the Thirty-nine
 
Weeks Ended
 
    
March 25,

2021
    
March 26,

2020
    
March 25,

2021
    
March 26,
2020
 
Operating lease costs
(a)
   $ 437      $ 432      $ 1,387      $ 1,266  
Variable lease costs
(b)
     17        16        54        47  
Total Lease Cost
   $ 454      $ 448      $ 1,441      $ 1,313  
    
 
 
    
 
 
    
 
 
    
 
 
 
 
(a)
 
Includes short-term leases which are immaterial.
(b)
 
Variable lease costs consist of sales tax.
 
Supplemental cash flow and other information related to leases
Supplemental cash flow and other information related to leases was as follows:
 
    
For the Thirty-nine
 
Weeks
 
Ended
 
    
March 25,
2021
    
March 26,
2020
 
Operating cash flows information:
                 
Cash paid for amounts included in measurements for lease liabilities
   $ 1,171      $ 1,163  
Non-cash
activity:
                 
Right-of-use
assets obtained in exchange for new operating lease obligations
   $ 490      $ 326  
Summary of other information
    
March 25,
2021
   
June 25,

2020
   
March 26,
2020
 
Weighted Average Remaining Lease Term (in years)
     3.0       3.4       3.6  
Weighted Average Discount Rate
     4.3     4.4     4.4
Summary of maturities of operating lease liabilities
Maturities of operating lease liabilities as of March 25, 2021 are as follows:
 
Fiscal year ending
        
June 24, 2021 (excluding the thirty-nine weeks ended March 25, 2021)
   $ 438  
June 30, 2022
     1,486  
June 29, 2023
     1,236  
June 27, 2024
     593  
June 26, 2025
     231  
June 25, 2026
     59  
Thereafter
      
    
 
 
 
Total lease payment
     4,043  
Less imputed interest
     (235
    
 
 
 
Present value of operating lease liabilities
   $ 3,808  
    
 
 
 
Summary of operating lease revenue
Leasing revenue is as follows:
 
    
For the Quarter ended
    
For the Thirty-nine
 
weeks ended
 
    
March 25,
2021
    
March 26,
2020
    
March 25,
2021
    
March 26,
2020
 
Lease income related to lease payments
   $  451      $  510      $  1,354      $  1,515  
 
Undiscounted fixed lease consideration under non-cancelable tenant operating leases
The future minimum, undiscounted fixed cash flows under
non-cancelable
tenant operating leases for each of the next five years and thereafter is presented below.
 
Fiscal year ending
        
June 24, 2021 (excluding the thirty-nine weeks ended March 25, 2021)
   $ 499  
June 30, 2022
     1,747  
June 29, 2023
     1,790  
June 27, 2024
     1,818  
June 26, 2025
     1,228  
June 25, 2026
     670  
Thereafter
     614  
    
 
 
 
     $ 8,366  
v3.21.1
Inventories (Tables)
9 Months Ended
Mar. 25, 2021
Inventory Disclosure [Abstract]  
Components of Inventories
Inventories consist of the following:
 
    
March 25,

2021
    
June 25,

2020
    
March 26,

2020
 
Raw material and supplies
   $ 73,068      $ 69,276      $ 87,120  
Work-in-process
and finished goods
     78,689        102,792        101,394  
    
 
 
    
 
 
    
 
 
 
Total
   $ 151,757      $ 172,068      $ 188,514  
    
 
 
    
 
 
    
 
 
 
v3.21.1
Goodwill and Intangible Assets (Tables)
9 Months Ended
Mar. 25, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Components of Identifiable Intangible Assets
Identifiable intangible assets that are subject to amortization consist of the following:
 
    
March 25,
 
2021
    
June 25,
 
2020
    
March 26,
 
2020
 
Customer relationships
   $ 21,100      $ 21,100      $ 21,100  
Brand names
     16,990        16,990        16,990  
Non-compete
agreement
     270        270        270  
    
 
 
    
 
 
    
 
 
 
       38,360        38,360        38,360  
Less accumulated amortization:
                          
Customer relationships
     (17,326      (16,223      (15,830
Brand names
     (10,390      (9,873      (9,700
Non-compete
agreement
     (180      (139      (126
    
 
 
    
 
 
    
 
 
 
       (27,896      (26,235      (25,656
    
 
 
    
 
 
    
 
 
 
Net intangible assets
   $ 10,464      $ 12,125      $ 12,704  
    
 
 
    
 
 
    
 
 
 
Summary of Expected Amortization Expense expected amortization expense the next five fiscal years is as follows:
Fiscal year ending
 
June 30, 2022
   $ 1,896  
June 29, 2023
     1,657  
June 27, 2024
     1,414  
June 26, 2025
     1,156  
June 25, 2026
     861  
v3.21.1
Earnings Per Common Share (Tables)
9 Months Ended
Mar. 25, 2021
Earnings Per Share [Abstract]  
Weighted Average Shares Outstanding Used in Computing Basic and Diluted Earnings Per Share
The following table presents the reconciliation of the weighted average shares outstanding used in computing basic and diluted earnings per share:
 
    
For the Quarter Ended
    
For the Thirty-Nine Weeks
Ended
 
    
March 25,
2021
    
March 26,
2020
    
March 25,
2021
    
March 26,
2020
 
Weighted average number of shares outstanding – basic
     11,515,465        11,475,874        11,495,504        11,459,653  
Effect of dilutive securities:
                                   
Stock options and restricted stock units
     58,552        63,767        57,206        75,015  
    
 
 
    
 
 
    
 
 
    
 
 
 
Weighted average number of shares outstanding – diluted
     11,574,017        11,539,641        11,552,710        11,534,668  
    
 
 
    
 
 
    
 
 
    
 
 
 
Summary of Anti-dilutive Awards Excluded from Computation of Diluted Earnings Per Share
The following table presents a summary of anti-dilutive awards excluded from the computation of diluted earnings per share:
 
    
For the Quarter Ended
    
For the Thirty-Nine Weeks

Ended
 
    
March 25,

2021
    
March 26,

2020
    
March 25,

2021
    
March 26,

2020
 
Weighted average number of anti-dilutive awards:
            28,040               9,347  
Weighted average exercise price per award:
   $      $ 90.26      $      $ 90.26