Quarterly report [Sections 13 or 15(d)]

Leases

v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases Leases
The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2024. As of March 31, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $30.6 million, or 94% of the total lease liabilities on the consolidated balance sheet.
During the three months ended March 31, 2025, the Company did not enter into any new finance lease agreements.
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification Financial Statement Line Item March 31, 2025 December 31, 2024
Long-term Assets Right-of-use assets, operating leases $ 27,813  $ 28,225 
Long-term Assets Property, plant and equipment 1,181  1,267 
Current liabilities Current portion of lease liabilities, operating leases 1,566  1,513 
Current liabilities Current portion of lease liabilities, finance leases 330  334 
Non-current liabilities Non-current portion of lease liabilities, operating leases 29,638  30,039 
Non-current liabilities Non-current portion of lease liabilities, finance leases 939  1,015 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended March 31,
(in thousands) 2025 2024
Operating lease cost1
$ 962  $ 985 
Finance lease cost:
Amortization of right-of-use assets 85  82 
Interest on finance lease liabilities 19  23 
Sublease income (147) (92)
Total lease cost $ 919  $ 998 
1Includes short term leases, which are immaterial
Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss).
The Company currently subleases the former Palmer facility and records cash receipts related to the sublease in other expense (income) on the unaudited condensed consolidated statements of income (loss). Future expected cash receipts from the Company's sublease as of March 31, 2025 are as follows:
(in thousands) Sublease Receipts
Remainder of 2025 $ 490 
2026 594 
2027 606 
2028 618 
2029 631 
Thereafter 4,597 
Total sublease receipts $ 7,536 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of March 31, 2025 are as follows:
(in thousands) Operating Finance
Remainder of 2025 $ 2,800  $ 304 
2026 3,750  361 
2027 3,825  361 
2028 3,903  303 
2029 3,971  85 
Thereafter 27,966  — 
Total undiscounted minimum future lease payments 46,215  1,414 
Imputed interest (15,011) (145)
Present value of lease liabilities $ 31,204  $ 1,269 
Lease Term and Discount Rate
Weighted-average remaining lease term March 31, 2025 December 31, 2024
Operating leases 11.36 years 11.61 years
Finance leases 3.80 years 4.03 years
Weighted-average discount rate
Operating leases 7.17  % 7.17  %
Finance leases 5.96  % 5.97  %
Leases Leases
The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2024. As of March 31, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $30.6 million, or 94% of the total lease liabilities on the consolidated balance sheet.
During the three months ended March 31, 2025, the Company did not enter into any new finance lease agreements.
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification Financial Statement Line Item March 31, 2025 December 31, 2024
Long-term Assets Right-of-use assets, operating leases $ 27,813  $ 28,225 
Long-term Assets Property, plant and equipment 1,181  1,267 
Current liabilities Current portion of lease liabilities, operating leases 1,566  1,513 
Current liabilities Current portion of lease liabilities, finance leases 330  334 
Non-current liabilities Non-current portion of lease liabilities, operating leases 29,638  30,039 
Non-current liabilities Non-current portion of lease liabilities, finance leases 939  1,015 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended March 31,
(in thousands) 2025 2024
Operating lease cost1
$ 962  $ 985 
Finance lease cost:
Amortization of right-of-use assets 85  82 
Interest on finance lease liabilities 19  23 
Sublease income (147) (92)
Total lease cost $ 919  $ 998 
1Includes short term leases, which are immaterial
Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss).
The Company currently subleases the former Palmer facility and records cash receipts related to the sublease in other expense (income) on the unaudited condensed consolidated statements of income (loss). Future expected cash receipts from the Company's sublease as of March 31, 2025 are as follows:
(in thousands) Sublease Receipts
Remainder of 2025 $ 490 
2026 594 
2027 606 
2028 618 
2029 631 
Thereafter 4,597 
Total sublease receipts $ 7,536 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of March 31, 2025 are as follows:
(in thousands) Operating Finance
Remainder of 2025 $ 2,800  $ 304 
2026 3,750  361 
2027 3,825  361 
2028 3,903  303 
2029 3,971  85 
Thereafter 27,966  — 
Total undiscounted minimum future lease payments 46,215  1,414 
Imputed interest (15,011) (145)
Present value of lease liabilities $ 31,204  $ 1,269 
Lease Term and Discount Rate
Weighted-average remaining lease term March 31, 2025 December 31, 2024
Operating leases 11.36 years 11.61 years
Finance leases 3.80 years 4.03 years
Weighted-average discount rate
Operating leases 7.17  % 7.17  %
Finance leases 5.96  % 5.97  %
Leases Leases
The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2024. As of March 31, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $30.6 million, or 94% of the total lease liabilities on the consolidated balance sheet.
During the three months ended March 31, 2025, the Company did not enter into any new finance lease agreements.
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification Financial Statement Line Item March 31, 2025 December 31, 2024
Long-term Assets Right-of-use assets, operating leases $ 27,813  $ 28,225 
Long-term Assets Property, plant and equipment 1,181  1,267 
Current liabilities Current portion of lease liabilities, operating leases 1,566  1,513 
Current liabilities Current portion of lease liabilities, finance leases 330  334 
Non-current liabilities Non-current portion of lease liabilities, operating leases 29,638  30,039 
Non-current liabilities Non-current portion of lease liabilities, finance leases 939  1,015 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended March 31,
(in thousands) 2025 2024
Operating lease cost1
$ 962  $ 985 
Finance lease cost:
Amortization of right-of-use assets 85  82 
Interest on finance lease liabilities 19  23 
Sublease income (147) (92)
Total lease cost $ 919  $ 998 
1Includes short term leases, which are immaterial
Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss).
The Company currently subleases the former Palmer facility and records cash receipts related to the sublease in other expense (income) on the unaudited condensed consolidated statements of income (loss). Future expected cash receipts from the Company's sublease as of March 31, 2025 are as follows:
(in thousands) Sublease Receipts
Remainder of 2025 $ 490 
2026 594 
2027 606 
2028 618 
2029 631 
Thereafter 4,597 
Total sublease receipts $ 7,536 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of March 31, 2025 are as follows:
(in thousands) Operating Finance
Remainder of 2025 $ 2,800  $ 304 
2026 3,750  361 
2027 3,825  361 
2028 3,903  303 
2029 3,971  85 
Thereafter 27,966  — 
Total undiscounted minimum future lease payments 46,215  1,414 
Imputed interest (15,011) (145)
Present value of lease liabilities $ 31,204  $ 1,269 
Lease Term and Discount Rate
Weighted-average remaining lease term March 31, 2025 December 31, 2024
Operating leases 11.36 years 11.61 years
Finance leases 3.80 years 4.03 years
Weighted-average discount rate
Operating leases 7.17  % 7.17  %
Finance leases 5.96  % 5.97  %