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Purchase Price Allocation | ||||
February 4, 2013 | ||||
Cash | $ | 0.4 | ||
Accounts receivable (1) | 29.9 | |||
Prepaid expenses, deposits and other current assets | 0.6 | |||
Property and equipment | 0.3 | |||
Restricted cash | 6.9 | |||
Intangible assets | 10.2 | |||
Total assets acquired | 48.3 | |||
Accounts payable and other accrued expenses | 6.3 | |||
Accrued wages and benefits | 4.8 | |||
Workers' compensation claims reserve | 9.4 | |||
Other long-term liabilities | 0.1 | |||
Total liabilities assumed | 20.6 | |||
Net identifiable assets acquired | 27.7 | |||
Goodwill (2) | 25.7 | |||
Net assets acquired | $ | 53.4 |
(1) | The gross contractual amount of accounts receivable was $32.9 million of which $3.0 million was estimated to be uncollectible. |
(2) | The goodwill acquired is deductible for income tax purposes. |
Estimated Fair Value | Estimated Useful Life | ||||
Customer relationships | $ | 7.8 | 8.0 | ||
Trade name/trademarks | 1.0 | 1.5 | |||
Non-compete agreement | 1.4 | 5.0 |
Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | September 28, 2012 | |||||||||||||
Revenue from services | $ | 451.2 | $ | 438.0 | $ | 1,244.1 | $ | 1,207.2 | ||||||||
Net income | 19.0 | 13.6 | 34.5 | 22.6 | ||||||||||||
Net income per common share - diluted | 0.47 | 0.34 | 0.85 | 0.57 |
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• | Level 1 inputs are valued using quoted market prices in active markets for identical assets or liabilities. Our Level 1 assets primarily include cash and cash equivalents and mutual funds. |
• | Level 2 inputs are valued based upon quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active. Our Level 2 assets are marketable securities, which primarily consist of variable-rate demand notes ("VRDNs") and certificate of deposits ("CD"), and restricted investments, which primarily consist of municipal debt-securities, corporate-debt securities, asset-backed securities, and U.S. agency debentures. Our Level 2 liability is a term loan. We obtain our inputs from quoted market prices and independent pricing vendors. |
• | Level 3 inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. We currently have no Level 3 assets or liabilities. |
September 27, 2013 | |||||||||||||||||||
Carrying Value | Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents (1) | $ | 109.5 | $ | 109.5 | $ | 109.5 | $ | — | $ | — | |||||||||
Marketable securities classified as available-for-sale (2) | 35.1 | 35.1 | — | 35.1 | — | ||||||||||||||
Restricted cash and cash equivalents (1) | 47.4 | 47.4 | 47.4 | — | — | ||||||||||||||
Other restricted assets (3) | 5.8 | 5.8 | 5.8 | — | — | ||||||||||||||
Restricted investments classified as held-to-maturity (4) | 85.3 | 85.7 | — | 85.7 | — | ||||||||||||||
Financial liabilities: | |||||||||||||||||||
Term loan (5) | 32.5 | 32.5 | — | 32.5 | — |
December 28, 2012 | |||||||||||||||||||
Carrying Value | Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents (1) | $ | 129.5 | $ | 129.5 | $ | 129.5 | $ | — | $ | — | |||||||||
Restricted cash and cash equivalents (1) | 38.1 | 38.1 | 38.1 | — | — | ||||||||||||||
Other restricted assets (3) | 7.0 | 7.0 | 7.0 | — | — | ||||||||||||||
Restricted investments classified as held-to-maturity (4) | 91.2 | 92.7 | — | 92.7 | — |
(1) | Cash equivalents and restricted cash equivalents consist of money market funds, deposits, and investments with original maturities of three months or less. |
(2) | Marketable securities include CDs and VRDNs, which are classified as available-for-sale. Our CDs include $5.8 million with maturities greater than one year and are classified as Other assets on our Consolidated Balance Sheets. VRDNs with contractual maturities beyond one year are classified as short-term based on their highly liquid nature and because they represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and believe we have the ability to quickly sell them to the re-marketing agent at par value plus accrued interest in the event we decide to liquidate our investment in a particular VRDN. |
(3) | Other restricted investments primarily consist of deferred compensation investments, which are comprised of mutual funds. We have an offsetting accrued liability related to the deferred compensation plan. |
(4) | Restricted investments classified as held-to-maturity consist of highly rated investment grade securities, primarily in municipal-debt securities, corporate-debt securities, asset-backed securities, and U.S. agency debentures. |
(5) | In connection with our acquisition of MDT effective February 4, 2013, we entered into an unsecured Term Loan Agreement with Synovus Bank. The Term Loan has a variable interest rate and approximates fair value. See Note 9: Commitments and Contingencies for further discussion. |
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September 27, 2013 | |||||||
Amortized Cost | Fair Value | ||||||
Certificates of deposit | $ | 9.5 | $ | 9.5 | |||
Variable-rate demand notes | 25.6 | 25.6 | |||||
$ | 35.1 | $ | 35.1 |
September 27, 2013 | |||||||
Amortized Cost | Fair Value | ||||||
Due in one year or less (1) | $ | 29.3 | $ | 29.3 | |||
Due after one year (2) | 5.8 | 5.8 | |||||
$ | 35.1 | $ | 35.1 |
(1) | Amounts due in one year or less include CDs and VRDNs. The VRDNs have contractual terms ranging from two to 26 years. Although these securities are issued as long-term securities, they are priced and traded as short-term instruments because of the high liquidity provided through the tender feature. It is not our intent to hold to maturity. |
(2) | Amounts due after one year include CDs with maturities between one and two years and are recorded in Other assets on the Consolidated Balance Sheets. |
|
September 27, 2013 | December 28, 2012 | ||||||
Cash collateral held by insurance carriers | $ | 24.4 | $ | 21.5 | |||
Cash and cash equivalents held in Trust (1) | 21.2 | 14.8 | |||||
Investments held in Trust | 85.3 | 91.2 | |||||
Cash collateral backing letters of credit | 1.8 | 1.8 | |||||
Other (2) | 5.8 | 7.0 | |||||
Total restricted cash and investments | $ | 138.5 | $ | 136.3 |
(1) | Included in this amount is $0.8 million and $0.9 million of accrued interest at September 27, 2013 and December 28, 2012, respectively. |
(2) | Primarily consists of restricted cash in money market accounts and deferred compensation plan accounts which are comprised of mutual funds. |
September 27, 2013 | |||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
Municipal debt securities | $ | 56.1 | $ | 0.7 | $ | (0.4 | ) | $ | 56.4 | ||||||
Corporate debt securities | 15.6 | 0.2 | (0.2 | ) | 15.6 | ||||||||||
Asset-backed securities | 13.6 | 0.2 | (0.1 | ) | 13.7 | ||||||||||
$ | 85.3 | $ | 1.1 | $ | (0.7 | ) | $ | 85.7 |
December 28, 2012 | |||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
Municipal debt securities | $ | 57.3 | $ | 1.0 | $ | (0.1 | ) | $ | 58.2 | ||||||
Corporate debt securities | 17.9 | 0.3 | — | 18.2 | |||||||||||
Asset-backed securities | 16.0 | 0.3 | — | 16.3 | |||||||||||
$ | 91.2 | $ | 1.6 | $ | (0.1 | ) | $ | 92.7 |
September 27, 2013 | |||||||
Amortized Cost | Fair Value | ||||||
Due in one year or less | $ | 10.3 | $ | 10.3 | |||
Due after one year through five years | 41.3 | 42.0 | |||||
Due after five years through ten years | 33.7 | 33.4 | |||||
$ | 85.3 | $ | 85.7 |
|
September 27, 2013 | December 28, 2012 | ||||||
Buildings and land | $ | 26.4 | $ | 25.9 | |||
Computers and software | 101.7 | 91.7 | |||||
Cash dispensing machines | 1.0 | 1.0 | |||||
Furniture and equipment | 9.0 | 8.9 | |||||
Construction in progress | 3.1 | 7.7 | |||||
141.2 | 135.2 | ||||||
Less accumulated depreciation and amortization | (85.4 | ) | (77.0 | ) | |||
$ | 55.8 | $ | 58.2 |
|
Goodwill | Accumulated Impairment Losses | Goodwill, net | |||||||||
Balance at December 28, 2012 | $ | 94.3 | $ | (46.2 | ) | $ | 48.1 | ||||
Goodwill acquired year to date (1) | 26.5 | — | 26.5 | ||||||||
Balance at September 27, 2013 | $ | 120.8 | $ | (46.2 | ) | $ | 74.6 |
(1) | Goodwill acquired includes $25.7 million due to the MDT acquisition. Goodwill acquired also includes $0.8 million of goodwill related to our acquisition of Crowley. |
September 27, 2013 | December 28, 2012 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Finite-lived intangible assets (1): | |||||||||||||||||||||||
Customer relationships (2) | $ | 28.3 | $ | (12.8 | ) | $ | 15.5 | $ | 19.1 | $ | (10.5 | ) | $ | 8.6 | |||||||||
Trade name/trademarks (2) | 4.6 | (2.3 | ) | 2.3 | 3.5 | (1.6 | ) | 1.9 | |||||||||||||||
Non-compete agreements (2) | 1.8 | (0.4 | ) | 1.4 | 1.8 | (1.4 | ) | 0.4 | |||||||||||||||
Total finite-lived intangible assets | $ | 34.7 | $ | (15.5 | ) | $ | 19.2 | $ | 24.4 | $ | (13.5 | ) | $ | 10.9 |
(1) | Excludes assets that are fully amortized. |
(2) | Includes customer relationships, trade name, and non-compete agreement resulting from the MDT acquisition of $7.8 million, $1.0 million, and $1.4 million, respectively, and customer relationships and trade name resulting from the Crowley acquisition of $1.4 million and $0.1 million, respectively. |
Remainder of 2013 | $ | 1.2 | |
2014 | 4.5 | ||
2015 | 4.1 | ||
2016 | 3.8 | ||
2017 | 1.8 | ||
Thereafter | 3.8 | ||
Total intangible assets, net | $ | 19.2 |
|
• | changes in medical and time loss (“indemnity”) costs; |
• | changes in mix between medical only and indemnity claims; |
• | regulatory and legislative developments impacting benefits and settlement requirements; |
• | type and location of work performed; |
• | impact of safety initiatives; and |
• | positive or adverse development of claims. |
|
Excess Liquidity | Prime Rate Loans | LIBOR Rate Loans | ||
Greater than $40 million | 0.50% | 1.50% | ||
Between $20 million and $40 million | 0.75% | 1.75% | ||
Less than $20 million | 1.00% | 2.00% |
September 27, 2013 | December 28, 2012 | ||||||
Cash collateral held by insurance carriers | $ | 24.4 | $ | 21.5 | |||
Cash and cash equivalents held in Trust (1) | 21.2 | 14.8 | |||||
Investments held in Trust | 85.3 | 91.2 | |||||
Letters of credit (2) | 7.9 | 9.0 | |||||
Surety bonds (3) | 16.1 | 16.2 | |||||
Total collateral commitments | $ | 154.9 | $ | 152.7 |
(1) | Included in this amount is $0.8 million and $0.9 million of accrued interest at September 27, 2013 and December 28, 2012, respectively. |
(2) | We have agreements with certain financial institutions to issue letters of credit as collateral. We had $1.8 million of restricted cash collateralizing our letters of credit at September 27, 2013 and December 28, 2012, respectively. |
(3) | Our surety bonds are issued by independent insurance companies on our behalf and bear annual fees based on a percentage of the bond, which is determined by each independent surety carrier. These bonds do not exceed 2.0% of the bond amount, subject to a minimum charge. The terms of these bonds are subject to review and renewal every one to four years and most bonds can be canceled by the sureties with as little as 60 days notice. |
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Thirteen weeks ended | Thirty-nine weeks ended | ||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | September 28, 2012 | ||||||||||||
Restricted and unrestricted stock and performance share units | $ | 1.7 | $ | 1.4 | $ | 6.2 | $ | 6.0 | |||||||
Stock option | — | — | — | 0.1 | |||||||||||
Employee stock purchase plan | 0.1 | 0.1 | 0.2 | 0.2 | |||||||||||
Total stock-based compensation | $ | 1.8 | $ | 1.5 | $ | 6.4 | $ | 6.3 |
Shares | Weighted average grant-date price | |||||
Non-vested at beginning of period | 1,435 | $ | 15.23 | |||
Granted | 634 | $ | 18.92 | |||
Vested | (417 | ) | $ | 15.31 | ||
Forfeited | (96 | ) | $ | 17.46 | ||
Non-vested at the end of the period | 1,556 | $ | 16.58 |
Shares | Weighted Average Exercise Price | |||||
Outstanding, December 28, 2012 | 639 | $ | 16.91 | |||
Exercised | (449 | ) | $ | 16.09 | ||
Expired/Forfeited | (111 | ) | $ | 21.24 | ||
Outstanding, September 27, 2013 | 79 | $ | 15.23 | |||
Exercisable, September 27, 2013 | 79 | $ | 15.23 |
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Thirteen weeks ended | Thirty-nine weeks ended | ||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | September 28, 2012 | ||||||||||||
Net income | $ | 19.0 | $ | 14.3 | $ | 30.4 | $ | 26.2 | |||||||
Weighted average number of common shares used in basic net income per common share | 40.3 | 39.5 | 40.1 | 39.5 | |||||||||||
Dilutive effect of outstanding stock options and non-vested restricted stock | 0.4 | 0.4 | 0.3 | 0.3 | |||||||||||
Weighted average number of common shares used in diluted net income per common share | 40.7 | 39.9 | 40.4 | 39.8 | |||||||||||
Net income per common share: | |||||||||||||||
Basic | $ | 0.47 | $ | 0.36 | $ | 0.76 | $ | 0.66 | |||||||
Diluted | $ | 0.47 | $ | 0.36 | $ | 0.75 | $ | 0.66 |
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Thirteen weeks ended | Thirty-nine weeks ended | ||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | September 28, 2012 | ||||||||||||
Total other comprehensive income (loss), net of tax | |||||||||||||||
Foreign currency translation | $ | 0.1 | $ | 0.4 | $ | (0.5 | ) | $ | 0.4 | ||||||
Unrealized gain (loss) on investments (1) | 0.0 | 0.1 | 0.0 | — | |||||||||||
Total other comprehensive income (loss), net of tax (2) | $ | 0.1 | $ | 0.5 | $ | (0.5 | ) | $ | 0.4 |
(1) | Consists of deferred compensation plan accounts, which are comprised of mutual funds, and available-for-sale securities, which are comprised of certificates of deposits. |
(2) | The tax impact of the components of other comprehensive income were immaterial. |
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Thirty-nine weeks ended | |||||||
September 27, 2013 | September 28, 2012 | ||||||
Cash paid during the period for: | |||||||
Interest | $ | 0.7 | $ | 0.5 | |||
Income taxes | 4.1 | 13.8 |
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Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | September 28, 2012 | |||||||||||||
Revenue from services | $ | 451.2 | $ | 438.0 | $ | 1,244.1 | $ | 1,207.2 | ||||||||
Net income | 19.0 | 13.6 | 34.5 | 22.6 | ||||||||||||
Net income per common share - diluted | 0.47 | 0.34 | 0.85 | 0.57 |
Purchase Price Allocation | ||||
February 4, 2013 | ||||
Cash | $ | 0.4 | ||
Accounts receivable (1) | 29.9 | |||
Prepaid expenses, deposits and other current assets | 0.6 | |||
Property and equipment | 0.3 | |||
Restricted cash | 6.9 | |||
Intangible assets | 10.2 | |||
Total assets acquired | 48.3 | |||
Accounts payable and other accrued expenses | 6.3 | |||
Accrued wages and benefits | 4.8 | |||
Workers' compensation claims reserve | 9.4 | |||
Other long-term liabilities | 0.1 | |||
Total liabilities assumed | 20.6 | |||
Net identifiable assets acquired | 27.7 | |||
Goodwill (2) | 25.7 | |||
Net assets acquired | $ | 53.4 |
(1) | The gross contractual amount of accounts receivable was $32.9 million of which $3.0 million was estimated to be uncollectible. |
(2) | The goodwill acquired is deductible for income tax purposes. |
Estimated Fair Value | Estimated Useful Life | ||||
Customer relationships | $ | 7.8 | 8.0 | ||
Trade name/trademarks | 1.0 | 1.5 | |||
Non-compete agreement | 1.4 | 5.0 |
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September 27, 2013 | |||||||||||||||||||
Carrying Value | Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents (1) | $ | 109.5 | $ | 109.5 | $ | 109.5 | $ | — | $ | — | |||||||||
Marketable securities classified as available-for-sale (2) | 35.1 | 35.1 | — | 35.1 | — | ||||||||||||||
Restricted cash and cash equivalents (1) | 47.4 | 47.4 | 47.4 | — | — | ||||||||||||||
Other restricted assets (3) | 5.8 | 5.8 | 5.8 | — | — | ||||||||||||||
Restricted investments classified as held-to-maturity (4) | 85.3 | 85.7 | — | 85.7 | — | ||||||||||||||
Financial liabilities: | |||||||||||||||||||
Term loan (5) | 32.5 | 32.5 | — | 32.5 | — |
December 28, 2012 | |||||||||||||||||||
Carrying Value | Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents (1) | $ | 129.5 | $ | 129.5 | $ | 129.5 | $ | — | $ | — | |||||||||
Restricted cash and cash equivalents (1) | 38.1 | 38.1 | 38.1 | — | — | ||||||||||||||
Other restricted assets (3) | 7.0 | 7.0 | 7.0 | — | — | ||||||||||||||
Restricted investments classified as held-to-maturity (4) | 91.2 | 92.7 | — | 92.7 | — |
(1) | Cash equivalents and restricted cash equivalents consist of money market funds, deposits, and investments with original maturities of three months or less. |
(2) | Marketable securities include CDs and VRDNs, which are classified as available-for-sale. Our CDs include $5.8 million with maturities greater than one year and are classified as Other assets on our Consolidated Balance Sheets. VRDNs with contractual maturities beyond one year are classified as short-term based on their highly liquid nature and because they represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and believe we have the ability to quickly sell them to the re-marketing agent at par value plus accrued interest in the event we decide to liquidate our investment in a particular VRDN. |
(3) | Other restricted investments primarily consist of deferred compensation investments, which are comprised of mutual funds. We have an offsetting accrued liability related to the deferred compensation plan. |
(4) | Restricted investments classified as held-to-maturity consist of highly rated investment grade securities, primarily in municipal-debt securities, corporate-debt securities, asset-backed securities, and U.S. agency debentures. |
(5) | In connection with our acquisition of MDT effective February 4, 2013, we entered into an unsecured Term Loan Agreement with Synovus Bank. The Term Loan has a variable interest rate and approximates fair value. See Note 9: Commitments and Contingencies for further discussion. |
|
September 27, 2013 | |||||||
Amortized Cost | Fair Value | ||||||
Certificates of deposit | $ | 9.5 | $ | 9.5 | |||
Variable-rate demand notes | 25.6 | 25.6 | |||||
$ | 35.1 | $ | 35.1 |
September 27, 2013 | |||||||
Amortized Cost | Fair Value | ||||||
Due in one year or less (1) | $ | 29.3 | $ | 29.3 | |||
Due after one year (2) | 5.8 | 5.8 | |||||
$ | 35.1 | $ | 35.1 |
September 27, 2013 | |||||||
Amortized Cost | Fair Value | ||||||
Due in one year or less | $ | 10.3 | $ | 10.3 | |||
Due after one year through five years | 41.3 | 42.0 | |||||
Due after five years through ten years | 33.7 | 33.4 | |||||
$ | 85.3 | $ | 85.7 |
|
September 27, 2013 | December 28, 2012 | ||||||
Cash collateral held by insurance carriers | $ | 24.4 | $ | 21.5 | |||
Cash and cash equivalents held in Trust (1) | 21.2 | 14.8 | |||||
Investments held in Trust | 85.3 | 91.2 | |||||
Cash collateral backing letters of credit | 1.8 | 1.8 | |||||
Other (2) | 5.8 | 7.0 | |||||
Total restricted cash and investments | $ | 138.5 | $ | 136.3 |
(1) | Included in this amount is $0.8 million and $0.9 million of accrued interest at September 27, 2013 and December 28, 2012, respectively. |
(2) | Primarily consists of restricted cash in money market accounts and deferred compensation plan accounts which are comprised of mutual funds. |
September 27, 2013 | |||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
Municipal debt securities | $ | 56.1 | $ | 0.7 | $ | (0.4 | ) | $ | 56.4 | ||||||
Corporate debt securities | 15.6 | 0.2 | (0.2 | ) | 15.6 | ||||||||||
Asset-backed securities | 13.6 | 0.2 | (0.1 | ) | 13.7 | ||||||||||
$ | 85.3 | $ | 1.1 | $ | (0.7 | ) | $ | 85.7 |
December 28, 2012 | |||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
Municipal debt securities | $ | 57.3 | $ | 1.0 | $ | (0.1 | ) | $ | 58.2 | ||||||
Corporate debt securities | 17.9 | 0.3 | — | 18.2 | |||||||||||
Asset-backed securities | 16.0 | 0.3 | — | 16.3 | |||||||||||
$ | 91.2 | $ | 1.6 | $ | (0.1 | ) | $ | 92.7 |
September 27, 2013 | |||||||
Amortized Cost | Fair Value | ||||||
Due in one year or less (1) | $ | 29.3 | $ | 29.3 | |||
Due after one year (2) | 5.8 | 5.8 | |||||
$ | 35.1 | $ | 35.1 |
September 27, 2013 | |||||||
Amortized Cost | Fair Value | ||||||
Due in one year or less | $ | 10.3 | $ | 10.3 | |||
Due after one year through five years | 41.3 | 42.0 | |||||
Due after five years through ten years | 33.7 | 33.4 | |||||
$ | 85.3 | $ | 85.7 |
|
September 27, 2013 | December 28, 2012 | ||||||
Buildings and land | $ | 26.4 | $ | 25.9 | |||
Computers and software | 101.7 | 91.7 | |||||
Cash dispensing machines | 1.0 | 1.0 | |||||
Furniture and equipment | 9.0 | 8.9 | |||||
Construction in progress | 3.1 | 7.7 | |||||
141.2 | 135.2 | ||||||
Less accumulated depreciation and amortization | (85.4 | ) | (77.0 | ) | |||
$ | 55.8 | $ | 58.2 |
|
Goodwill | Accumulated Impairment Losses | Goodwill, net | |||||||||
Balance at December 28, 2012 | $ | 94.3 | $ | (46.2 | ) | $ | 48.1 | ||||
Goodwill acquired year to date (1) | 26.5 | — | 26.5 | ||||||||
Balance at September 27, 2013 | $ | 120.8 | $ | (46.2 | ) | $ | 74.6 |
(1) | Goodwill acquired includes $25.7 million due to the MDT acquisition. Goodwill acquired also includes $0.8 million of goodwill related to our acquisition of Crowley. |
September 27, 2013 | December 28, 2012 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Finite-lived intangible assets (1): | |||||||||||||||||||||||
Customer relationships (2) | $ | 28.3 | $ | (12.8 | ) | $ | 15.5 | $ | 19.1 | $ | (10.5 | ) | $ | 8.6 | |||||||||
Trade name/trademarks (2) | 4.6 | (2.3 | ) | 2.3 | 3.5 | (1.6 | ) | 1.9 | |||||||||||||||
Non-compete agreements (2) | 1.8 | (0.4 | ) | 1.4 | 1.8 | (1.4 | ) | 0.4 | |||||||||||||||
Total finite-lived intangible assets | $ | 34.7 | $ | (15.5 | ) | $ | 19.2 | $ | 24.4 | $ | (13.5 | ) | $ | 10.9 |
(1) | Excludes assets that are fully amortized. |
(2) | Includes customer relationships, trade name, and non-compete agreement resulting from the MDT acquisition of $7.8 million, $1.0 million, and $1.4 million, respectively, and customer relationships and trade name resulting from the Crowley acquisition of $1.4 million and $0.1 million, respectively. |
Remainder of 2013 | $ | 1.2 | |
2014 | 4.5 | ||
2015 | 4.1 | ||
2016 | 3.8 | ||
2017 | 1.8 | ||
Thereafter | 3.8 | ||
Total intangible assets, net | $ | 19.2 |
|
Excess Liquidity | Prime Rate Loans | LIBOR Rate Loans | ||
Greater than $40 million | 0.50% | 1.50% | ||
Between $20 million and $40 million | 0.75% | 1.75% | ||
Less than $20 million | 1.00% | 2.00% |
September 27, 2013 | December 28, 2012 | ||||||
Cash collateral held by insurance carriers | $ | 24.4 | $ | 21.5 | |||
Cash and cash equivalents held in Trust (1) | 21.2 | 14.8 | |||||
Investments held in Trust | 85.3 | 91.2 | |||||
Letters of credit (2) | 7.9 | 9.0 | |||||
Surety bonds (3) | 16.1 | 16.2 | |||||
Total collateral commitments | $ | 154.9 | $ | 152.7 |
(1) | Included in this amount is $0.8 million and $0.9 million of accrued interest at September 27, 2013 and December 28, 2012, respectively. |
(2) | We have agreements with certain financial institutions to issue letters of credit as collateral. We had $1.8 million of restricted cash collateralizing our letters of credit at September 27, 2013 and December 28, 2012, respectively. |
(3) | Our surety bonds are issued by independent insurance companies on our behalf and bear annual fees based on a percentage of the bond, which is determined by each independent surety carrier. These bonds do not exceed 2.0% of the bond amount, subject to a minimum charge. The terms of these bonds are subject to review and renewal every one to four years and most bonds can be canceled by the sureties with as little as 60 days notice. |
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Thirteen weeks ended | Thirty-nine weeks ended | ||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | September 28, 2012 | ||||||||||||
Restricted and unrestricted stock and performance share units | $ | 1.7 | $ | 1.4 | $ | 6.2 | $ | 6.0 | |||||||
Stock option | — | — | — | 0.1 | |||||||||||
Employee stock purchase plan | 0.1 | 0.1 | 0.2 | 0.2 | |||||||||||
Total stock-based compensation | $ | 1.8 | $ | 1.5 | $ | 6.4 | $ | 6.3 |
Shares | Weighted average grant-date price | |||||
Non-vested at beginning of period | 1,435 | $ | 15.23 | |||
Granted | 634 | $ | 18.92 | |||
Vested | (417 | ) | $ | 15.31 | ||
Forfeited | (96 | ) | $ | 17.46 | ||
Non-vested at the end of the period | 1,556 | $ | 16.58 |
Shares | Weighted Average Exercise Price | |||||
Outstanding, December 28, 2012 | 639 | $ | 16.91 | |||
Exercised | (449 | ) | $ | 16.09 | ||
Expired/Forfeited | (111 | ) | $ | 21.24 | ||
Outstanding, September 27, 2013 | 79 | $ | 15.23 | |||
Exercisable, September 27, 2013 | 79 | $ | 15.23 |
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Thirteen weeks ended | Thirty-nine weeks ended | ||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | September 28, 2012 | ||||||||||||
Net income | $ | 19.0 | $ | 14.3 | $ | 30.4 | $ | 26.2 | |||||||
Weighted average number of common shares used in basic net income per common share | 40.3 | 39.5 | 40.1 | 39.5 | |||||||||||
Dilutive effect of outstanding stock options and non-vested restricted stock | 0.4 | 0.4 | 0.3 | 0.3 | |||||||||||
Weighted average number of common shares used in diluted net income per common share | 40.7 | 39.9 | 40.4 | 39.8 | |||||||||||
Net income per common share: | |||||||||||||||
Basic | $ | 0.47 | $ | 0.36 | $ | 0.76 | $ | 0.66 | |||||||
Diluted | $ | 0.47 | $ | 0.36 | $ | 0.75 | $ | 0.66 |
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Thirteen weeks ended | Thirty-nine weeks ended | ||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | September 28, 2012 | ||||||||||||
Total other comprehensive income (loss), net of tax | |||||||||||||||
Foreign currency translation | $ | 0.1 | $ | 0.4 | $ | (0.5 | ) | $ | 0.4 | ||||||
Unrealized gain (loss) on investments (1) | 0.0 | 0.1 | 0.0 | — | |||||||||||
Total other comprehensive income (loss), net of tax (2) | $ | 0.1 | $ | 0.5 | $ | (0.5 | ) | $ | 0.4 |
(1) | Consists of deferred compensation plan accounts, which are comprised of mutual funds, and available-for-sale securities, which are comprised of certificates of deposits. |
(2) | The tax impact of the components of other comprehensive income were immaterial. |
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Thirty-nine weeks ended | |||||||
September 27, 2013 | September 28, 2012 | ||||||
Cash paid during the period for: | |||||||
Interest | $ | 0.7 | $ | 0.5 | |||
Income taxes | 4.1 | 13.8 |
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