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RESTATEMENT AND REVISION OF INTERIM FINANCIAL INFORMATION (Tables) | 12 Months Ended
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Jun. 29, 2024
Accounting Changes and Error Corrections [Abstract] |
Schedule of Interim Financial Information | The unaudited consolidated balance sheets, statements of comprehensive income, shareholders’ equity and cash flows for the impacted quarters were not impacted by the errors noted above and have not been restated; provided, that the unaudited consolidated balance sheets as of March 30, 2024, December 30, 2023, September 30, 2023 have been revised as a result of error related to the adoption of ASU 326 as discussed below under "Revision of Unaudited Consolidated Balance Sheets."
| Interim periods - fiscal year 2024 (in thousands, except per share information)
CORRECTED CONSOLIDATED STATEMENT OF OPERATIONS | As restated - three months ended 9/30/23 |  | As restated - three months ended 12/30/23 |  | As restated - three months ended 3/30/24 |  | Three months ended 6/29/24 |  | Twelve months ended 6/29/24
Net sales | $ | 150,112 |  | [1] | $ | 147,847 |  | [2] | $ | 142,427 |  | [3] | $ | 126,556 |  |  | $ | 566,942 |
Cost of sales | 139,250 |  | [1] | 136,084 |  | [2] | 134,346 |  | [3] | 117,383 |  |  | 527,063 |
Gross profit | 10,862 |  |  | 11,763 |  |  | 8,081 |  |  | 9,173 |  |  | 39,879 |
Research, development and engineering expenses | 2,241 |  |  | 1,758 |  |  | 2,234 |  |  | 2,100 |  |  | 8,333 |
Selling, general and administrative expenses | 5,784 |  |  | 6,057 |  |  | 6,422 |  |  | 6,956 |  |  | 25,219 |
Gain on insurance proceeds, net of losses | (431) |  |  | — |  |  | — |  |  | — |  |  | (431) |
Total operating expenses | 7,594 |  |  | 7,815 |  |  | 8,656 |  |  | 9,056 |  |  | 33,121 |
Operating income | 3,268 |  |  | 3,948 |  |  | (575) |  |  | 117 |  |  | 6,758 |
Interest expense, net | 3,011 |  |  | 2,961 |  |  | 2,800 |  |  | 3,173 |  |  | 11,945 |
Income (loss) before income taxes | 257 |  |  | 987 |  |  | (3,375) |  |  | (3,056) |  |  | (5,187) |
Income tax provision (benefit) | (78) |  |  | (97) |  |  | (1,154) |  |  | (1,071) |  |  | (2,400) |
Net income (loss) | $ | 335 |  |  | $ | 1,084 |  |  | $ | (2,221) |  |  | $ | (1,985) |  |  | $ | (2,787) |
Net income (loss) per share — Basic | $ | 0.03 |  |  | $ | 0.10 |  |  | $ | (0.21) |  |  | $ | (0.18) |  |  | $ | (0.26) |
Weighted average shares outstanding — Basic | 10,762 |  |  | 10,762 |  |  | 10,762 |  |  | 10,762 |  |  | 10,762 |
Net income (loss) per share — Diluted | $ | 0.03 |  |  | $ | 0.10 |  |  | $ | (0.21) |  |  | $ | (0.18) |  |  | $ | (0.26) |
Weighted average shares outstanding — Diluted | 11,003 |  |  | 10,889 |  |  | 10,762 |  |  | 10,762 |  |  | 10,762 |
[1] - Includes an increase of $2,349 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively. [2] - Includes an increase of $2,430 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively. [3] - Includes an increase of $1,900 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively.
| Interim periods - fiscal year 2023 (in thousands, except per share information)
CORRECTED CONSOLIDATED STATEMENT OF OPERATIONS | As restated - three months ended 10/1/22 |  | As restated - three months ended 12/31/22 |  | As restated - three months ended 4/1/23 |  | As restated - three months ended 7/1/23 |  | As restated - twelve months ended 7/1/23
Net sales | $ | 140,971 |  | [1] | $ | 127,592 |  | [2] | $ | 167,758 |  | [3] | $ | 168,994 |  | [4] | $ | 605,315 |
Cost of sales | 130,592 |  | [1] | 118,672 |  | [2] | 153,482 |  | [3] | 155,096 |  | [4] | 557,843 |
Gross profit | 10,379 |  |  | 8,920 |  |  | 14,276 |  |  | 13,898 |  |  | 47,472 |
Research, development and engineering expenses | 2,296 |  |  | 2,287 |  |  | 2,580 |  |  | 2,573 |  |  | 9,735 |
Selling, general and administrative expenses | 5,656 |  |  | 5,735 |  |  | 6,961 |  |  | 7,363 |  |  | 25,715 |
Gain on insurance proceeds, net of losses | (934) |  |  | (2,710) |  |  | (396) |  |  | (261) |  |  | (4,301) |
Total operating expenses | 7,018 |  |  | 5,312 |  |  | 9,145 |  |  | 9,675 |  |  | 31,149 |
Operating income | 3,361 |  |  | 3,608 |  |  | 5,131 |  |  | 4,223 |  |  | 16,323 |
Interest expense, net | 1,887 |  |  | 2,507 |  |  | 2,688 |  |  | 2,941 |  |  | 10,023 |
Income before income taxes | 1,474 |  |  | 1,101 |  |  | 2,443 |  |  | 1,282 |  |  | 6,300 |
Income tax provision | 322 |  |  | 134 |  |  | 467 |  |  | 220 |  |  | 1,143 |
Net income | $ | 1,152 |  |  | $ | 967 |  |  | $ | 1,976 |  |  | $ | 1,062 |  |  | $ | 5,157 |
Net income per share — Basic | $ | 0.11 |  |  | $ | 0.09 |  |  | $ | 0.18 |  |  | $ | 0.10 |  |  | $ | 0.48 |
Weighted average shares outstanding — Basic | 10,762 |  |  | 10,762 |  |  | 10,762 |  |  | 10,762 |  |  | 10,762 |
Net income per share — Diluted | $ | 0.11 |  |  | $ | 0.09 |  |  | $ | 0.18 |  |  | $ | 0.10 |  |  | $ | 0.47 |
Weighted average shares outstanding — Diluted | 10,832 |  |  | 10,832 |  |  | 10,865 |  |  | 10,996 |  |  | 10,938 |
[1] - Includes an increase of $3,708 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively. [2] - Includes an increase of $3,884 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively. [3] - Includes an increase of $3,205 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively. [4] - Includes an increase of $6,384 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively.
| Interim periods - fiscal year 2022 (in thousands, except per share information)
CORRECTED CONSOLIDATED STATEMENT OF OPERATIONS | As restated - three months ended 10/2/21 |  | As restated - three months ended 1/1/22 |  | As restated - three months ended 4/2/22 |  | As restated - three months ended 7/2/22 |  | As restated - twelve months ended 7/2/22
Net sales | $ | 133,130 |  | [1] | $ | 136,407 |  | [2] | $ | 140,714 |  | [3] | $ | 133,926 |  | [4] | $ | 544,177 |
Cost of sales | 122,992 |  | [1] | 126,599 |  | [2] | 129,206 |  | [3] | 122,166 |  | [4] | 500,963 |
Gross profit | 10,138 |  |  | 9,808 |  |  | 11,508 |  |  | 11,760 |  |  | 43,214 |
Research, development and engineering expenses | 2,449 |  |  | 2,498 |  |  | 2,526 |  |  | 2,348 |  |  | 9,821 |
Selling, general and administrative expenses | 5,595 |  |  | 5,659 |  |  | 6,193 |  |  | 7,151 |  |  | 24,598 |
Gain on insurance proceeds, net of losses | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total operating expenses | 8,044 |  |  | 8,157 |  |  | 8,719 |  |  | 9,499 |  |  | 34,419 |
Operating income | 2,094 |  |  | 1,651 |  |  | 2,789 |  |  | 2,261 |  |  | 8,795 |
Interest expense, net | 992 |  |  | 1,095 |  |  | 1,551 |  |  | 1,466 |  |  | 5,104 |
Income before income taxes | 1,102 |  |  | 556 |  |  | 1,238 |  |  | 795 |  |  | 3,691 |
Income tax provision (benefit) | 287 |  |  | (31) |  |  | 231 |  |  | (173) |  |  | 314 |
Net income | $ | 815 |  |  | $ | 587 |  |  | $ | 1,007 |  |  | $ | 968 |  |  | $ | 3,377 |
Net income per share — Basic | $ | 0.08 |  |  | $ | 0.05 |  |  | $ | 0.09 |  |  | $ | 0.09 |  |  | $ | 0.31 |
Weighted average shares outstanding — Basic | 10,762 |  |  | 10,762 |  |  | 10,762 |  |  | 10,762 |  |  | 10,762 |
Net income per share — Diluted | $ | 0.07 |  |  | $ | 0.05 |  |  | $ | 0.09 |  |  | $ | 0.09 |  |  | $ | 0.31 |
Weighted average shares outstanding — Diluted | 11,052 |  |  | 11,057 |  |  | 11,062 |  |  | 11,071 |  |  | 11,063 |
[1] - Includes an increase of $368 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively. [2] - Includes an increase of $1,951 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively. [3] - Includes an increase of $2,323 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively. [4] - Includes an increase of $7,720 over amounts previously reported in the Net Sales and Cost of Sales lines, respectively. Revision of Unaudited Consolidated Balance Sheets In addition, in connection with the preparation of the Company’s consolidated financial statements as of and for the year ended June 29, 2024, the Company concluded that it had not recorded an immaterial adjustment related to its adoption on July 2, 2023 of ASU 2016-13 Financial Instruments - Credit Losses (ASU 326): Measurement of Credit Losses on Financial Instruments . As of July 2, 2023, the Company should have performed an assessment and recorded any adjustment as a modified retrospective adjustment through its opening retained earnings balance. The error resulted in an immaterial overstatement of accounts receivable, contract assets, other assets and retained earnings as of March 30, 2024, December 30, 2023 and September 30, 2023. Given the restatement described above, the Company elected to revise its unaudited consolidated balance sheets as of March 30, 2024, December 30, 2023 and September 30, 2023 in the following tables. The related unaudited consolidated statements of operations, statements of comprehensive income, shareholders’ equity and cash flows were not materially impacted by this error and have not been revised for this matter.
CORRECTED CONSOLIDATED BALANCE SHEETS (in thousands) |  | As revised - as of 9/30/23 | As revised - as of 12/30/23 | As revised - as of 3/30/24
ASSETS |  |  |  |
Current assets: |  |  |  |
Cash and cash equivalents |  | $ | 3,574 |  | $ | 2,953 |  | $ | 5,255 |
Trade receivables, net of credit losses | [1] | 138,463 |  | $ | 131,913 |  | $ | 132,663 |
Contract assets | [1] | 32,878 |  | $ | 27,745 |  | $ | 28,594 |
Inventories |  | 126,778 |  | $ | 124,054 |  | $ | 115,115 |
Other | [1] | 21,700 |  | $ | 21,382 |  | $ | 20,994 |
Total current assets |  | 323,393 |  | $ | 308,047 |  | $ | 302,621 |
Property, plant and equipment, net |  | 28,085 |  | $ | 28,935 |  | $ | 29,046 |
Operating lease right-of-use assets, net |  | 15,928 |  | $ | 18,104 |  | $ | 16,790 |
Other assets: |  |  |  |
Deferred income tax asset | [1] | 14,161 |  | $ | 14,117 |  | $ | 15,533 |
Other |  | 7,500 |  | $ | 6,243 |  | $ | 6,109 |
Total other assets |  | 21,661 |  | $ | 20,360 |  | $ | 21,642 |
Total assets |  | $ | 389,067 |  | $ | 375,446 |  | $ | 370,099 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |
Current liabilities: |  |  |  |
Accounts payable |  | $ | 101,638 |  | $ | 91,358 |  | $ | 82,198 |
Accrued compensation and vacation |  | 11,860 |  | $ | 5,677 |  | $ | 7,071 |
Current portion of long-term debt |  | 2,886 |  | $ | 3,068 |  | $ | 3,094 |
Other |  | 16,640 |  | $ | 18,263 |  | $ | 17,040 |
Total current liabilities |  | 133,024 |  | $ | 118,366 |  | $ | 109,403 |
Long-term liabilities: |  |  |  |
Long-term debt, net |  | 115,789 |  | $ | 114,894 |  | $ | 122,193 |
Operating lease liabilities |  | 10,939 |  | $ | 12,380 |  | $ | 11,351 |
Deferred income tax liability |  | 324 |  | 22 |  | $ | 19 |
Other long-term obligations |  | 1,201 |  | 627 |  | $ | 336 |
Total long-term liabilities |  | 128,253 |  | 127,923 |  | $ | 133,899 |
Total liabilities |  | 261,277 |  | 246,289 |  | $ | 243,302 |
Commitments and contingencies (Note 9) |  |  |  |
Shareholders’ equity: |  |  |  |
Common stock, no par value—shares authorized 25,000; issued and outstanding 10,762, 10,762, and 10,762 shares, respectively |  | 47,786 |  | 47,839 |  | 47,891 |
Retained earnings | [1] | 80,043 |  | 81,127 |  | 78,906 |
Accumulated other comprehensive (loss) income |  | (39) |  | 191 |  | — |
Total shareholders’ equity |  | 127,790 |  | 129,157 |  | 126,797 |
Total liabilities and shareholders’ equity |  | $ | 389,067 |  | $ | 375,446 |  | 370,099 |
[1] - Each presented period includes a reduction for expected credit losses of $(2,979) related to receivables, $(1,230) related to Other, $(25) related to Contract Assets, $956 related to deferred income tax asset, and $(3,278) related to Retained Earnings. These adjustments serve to reflect a modified retrospective adoption of ASC 326 - Financial Instruments, Credit Losses. The related tax-effects and subsequent inter-period adjustments are considered immaterial for presentation on an interim basis.

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