Credit Facility |
6 Months Ended |
|---|---|
Jun. 26, 2026 | |
| Debt Disclosure [Abstract] | |
| Credit Facility | 6. Credit Facility The Company had a credit agreement with Bank of America, N.A. (the "Credit Agreement"), which provided for borrowings up to $100.0 million pursuant to a revolving line of credit which had a maturity date of November 7, 2027 (the "Existing Credit Facility"). As of June 26, 2026, the Company had $81.0 million of outstanding debt, excluding $0.1 million of deferred debt costs, which will be amortized over the remaining life of the Existing Credit Facility. As of December 26, 2025, the Company had $76.0 million of outstanding debt, excluding $0.2 million of deferred debt costs. As of June 26, 2026, the applicable margin percentage was 1.75% per annum for the Secured Overnight Financing Rate ("SOFR"), and 1.0% per annum, for the base rate. As of June 26, 2026, the interest rate on the Company's outstanding debt was utilizing the SOFR margin percentage. As of June 26, 2026, the interest rate on the Company's outstanding debt was 5.5%, utilizing the SOFR margin percentage. The interest rate of the commitment fee as of June 26, 2026 was 0.250%. Interest payments are made monthly. The Company is subject to certain covenants, including total consolidated leverage, fixed cost coverage and liquidity requirements, each as set forth in the Credit Agreement, subject to certain exceptions. As of June 26, 2026, the Company was in compliance with all covenants. The obligations of the Company under the Amended Credit Agreement are guaranteed by existing and future wholly-owned material domestic subsidiaries of the Company (the "Guarantors") and are secured by substantially all of the existing and future property and assets of the Company and the Guarantors. The interest rates per annum applicable to loans under the Credit Facility will be, at the Company's option, equal to either a base rate or a Term SOFR rate, in each case, plus an applicable margin percentage. The applicable margin percentage is determined from time to time under the Amended Credit Agreement based on a consolidated leverage ratio, and ranges from 1.375% to 2.250% per annum in the case of Term SOFR advances and from 0.375% to 1.250% per annum in the case of base rate advances. The initial applicable margin percentage is 1.625% per annum in the case of Term SOFR rate advances, and 0.625% per annum in the case of base rate advances. A commitment fee is also payable on unused commitments of the Credit Facility, and varies between 0.125% and 0.375% per annum depending on a consolidated leverage ratio, with the initial level being 0.225% per annum. The Amended Credit Agreement contains customary representations, warranties, indemnities and affirmative and negative covenants. The negative covenants include, among others, certain limitations on the ability to: incur liens and indebtedness; consummate mergers, consolidations or asset sales; make guarantees and investments; and pay dividends or distributions in respect of the Company's shares. In addition, the Amended Credit Agreement contains financial covenants that require the Company to
6. Credit Facility (continued) maintain, on a consolidated basis (i) a consolidated fixed charge coverage ratio of at least 1.50 to 1.00, and (ii) a consolidated leverage ratio of not more than 3.50 to 1.00, in each case as calculated in accordance with the Amended Credit Agreement. The Amended Credit Agreement also includes customary events of default, including, among others, the failure to make payments under the Credit Facility when due, bankruptcy, certain judgments, breaches of representations and warranties, breaches of covenants and the occurrence of certain events, including cross default to other indebtedness of the Company and its subsidiaries. |