2018 Q4 Form 10-Q Financial Statement

#000163499718000029 Filed on November 02, 2018

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2017 Q3
Revenue $1.665B $1.546B $1.341B
YoY Change 8.61% 15.29% -5.43%
Cost Of Revenue $456.0M $342.0M $250.0M
YoY Change 19.69% 36.8% -19.87%
Gross Profit $1.208B $1.204B $1.091B
YoY Change 4.86% 10.36% -1.36%
Gross Profit Margin 72.55% 77.88% 81.36%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $211.0M $226.0M $205.0M
YoY Change -2.31% 10.24% 0.99%
% of Gross Profit 17.47% 18.77% 18.79%
Operating Expenses $970.0M $950.0M $873.0M
YoY Change 7.54% 8.82% -1.8%
Operating Profit $249.0M $253.0M $218.0M
YoY Change -163.52% 16.06% 0.46%
Interest Expense -$82.00M $75.00M $71.00M
YoY Change -27.43% 5.63% -222.41%
% of Operating Profit -32.93% 29.64% 32.57%
Other Income/Expense, Net -$9.000M -$16.00M -$15.00M
YoY Change -10.0% 6.67% -600.0%
Pretax Income $147.0M $163.0M $132.0M
YoY Change -128.54% 23.48% -18.52%
Income Tax $0.00 $29.00M $32.00M
% Of Pretax Income 0.0% 17.79% 24.24%
Net Earnings $119.0M $125.0M $99.00M
YoY Change -254.55% 26.26% -9.17%
Net Earnings / Revenue 7.15% 8.09% 7.38%
Basic Earnings Per Share $0.40 $0.32
Diluted Earnings Per Share $358.4K $0.40 $0.32
COMMON SHARES
Basic Shares Outstanding 309.0M shares 309.5M shares 309.5M shares
Diluted Shares Outstanding 309.7M shares 309.8M shares

Balance Sheet

Concept 2018 Q4 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $36.00M $32.00M $27.00M
YoY Change -12.2% 18.52% -85.16%
Cash & Equivalents $36.00M $32.00M $27.00M
Short-Term Investments
Other Short-Term Assets $6.000M $625.0M $642.0M
YoY Change 20.0% -2.65% -1.53%
Inventory $235.0M $243.0M $392.0M
Prepaid Expenses $43.00M
Receivables $1.142B $1.060B $943.0M
Other Receivables $6.000M $3.000M $17.00M
Total Short-Term Assets $1.963B $1.963B $2.021B
YoY Change -13.14% -2.87% -6.13%
LONG-TERM ASSETS
Property, Plant & Equipment $23.46B $23.13B $22.68B
YoY Change 3.48% 1.95% 7.38%
Goodwill $3.127B $3.127B $3.124B
YoY Change 0.0% 0.1%
Intangibles $323.0M $326.0M $524.0M
YoY Change -1.52% -37.79%
Long-Term Investments $366.0M $351.0M $406.0M
YoY Change 3.98% -13.55% -4.47%
Other Assets $162.0M $105.0M $74.00M
YoY Change 128.17% 41.89% -97.73%
Total Long-Term Assets $30.20B $29.79B $29.90B
YoY Change 2.7% -0.36% 5.07%
TOTAL ASSETS
Total Short-Term Assets $1.963B $1.963B $2.021B
Total Long-Term Assets $30.20B $29.79B $29.90B
Total Assets $32.17B $31.76B $31.92B
YoY Change 1.57% -0.52% 4.29%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $58.00M $60.00M $131.0M
YoY Change -34.83% -54.2% -33.5%
Accrued Expenses $143.0M $67.00M $64.00M
YoY Change -0.69% 4.69% 6.67%
Deferred Revenue $9.000M
YoY Change 12.5%
Short-Term Debt $587.0M $500.0M $731.0M
YoY Change -25.32% -31.6% 24266.67%
Long-Term Debt Due $394.0M $523.0M $267.0M
YoY Change 115.3% 95.88% 42.78%
Total Short-Term Liabilities $3.004B $2.911B $2.934B
YoY Change -3.53% -0.78% 36.27%
LONG-TERM LIABILITIES
Long-Term Debt $5.368B $5.096B $4.767B
YoY Change 3.31% 6.9% 8.37%
Other Long-Term Liabilities $499.0M $401.0M $367.0M
YoY Change 38.61% 9.26% 7.94%
Total Long-Term Liabilities $13.76B $13.39B $13.77B
YoY Change 2.22% -2.77% 2.72%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.004B $2.911B $2.934B
Total Long-Term Liabilities $13.76B $13.39B $13.77B
Total Liabilities $16.76B $16.30B $16.70B
YoY Change 1.14% -2.42% 7.37%
SHAREHOLDERS EQUITY
Retained Earnings $1.528B $1.536B $1.605B
YoY Change 3.59% -4.3% 9.11%
Common Stock $13.66B $13.66B $13.66B
YoY Change 0.03% 0.0% 0.03%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares 485.8K shares 485.8K shares $485.8K
Shareholders Equity $15.10B $15.13B $15.20B
YoY Change
Total Liabilities & Shareholders Equity $32.17B $31.76B $31.92B
YoY Change 1.57% -0.52% 4.29%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income $119.0M $125.0M $99.00M
YoY Change -254.55% 26.26% -9.17%
Depreciation, Depletion And Amortization $211.0M $226.0M $205.0M
YoY Change -2.31% 10.24% 0.99%
Cash From Operating Activities $464.0M $334.0M $397.0M
YoY Change 5.22% -15.87% 29.74%
INVESTING ACTIVITIES
Capital Expenditures -$604.0M -$422.0M -$635.0M
YoY Change -15.17% -33.54% 75.41%
Acquisitions
YoY Change
Other Investing Activities $83.00M -$5.000M $13.00M
YoY Change 118.42% -138.46% -61.76%
Cash From Investing Activities -$521.0M -$427.0M -$622.0M
YoY Change -22.7% -31.35% 89.63%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 60.00M 76.00M 217.0M
YoY Change -75.51% -64.98% -211.86%
NET CHANGE
Cash From Operating Activities 464.0M 334.0M 397.0M
Cash From Investing Activities -521.0M -427.0M -622.0M
Cash From Financing Activities 60.00M 76.00M 217.0M
Net Change In Cash 3.000M -17.00M -8.000M
YoY Change -75.0% 112.5% -96.3%
FREE CASH FLOW
Cash From Operating Activities $464.0M $334.0M $397.0M
Capital Expenditures -$604.0M -$422.0M -$635.0M
Free Cash Flow $1.068B $756.0M $1.032B
YoY Change -7.37% -26.74% 54.49%

Facts In Submission

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us-gaap Number Of Reportable Segments
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us-gaap Operating Income Loss
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Basis of Presentation</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The accompanying notes should be read in conjunction with the notes to the consolidated financial statements of Avangrid, Inc. and subsidiaries as of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;"> and 2016 and for the three years ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;"> included in AVANGRID&#8217;s Annual Report on Form 10-K for the fiscal year ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The accompanying unaudited financial statements are prepared on a consolidated basis and include the accounts of AVANGRID and its consolidated subsidiaries, Networks and ARHI. Intercompany accounts and transactions have been eliminated in consolidation. The year-end balance sheet data was derived from audited financial statements. The unaudited condensed consolidated financial statements for the interim periods have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the interim condensed consolidated financial statements do not include all the information and note disclosures required by U.S.&#160;GAAP for complete financial statements.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We believe the disclosures made are adequate to make the information presented not misleading. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary to present fairly our condensed consolidated balance sheets, condensed consolidated statements of income, comprehensive income, cash flows and changes in equity for the interim periods described herein. All such adjustments are of a normal and recurring nature, except as otherwise disclosed. The results for the </font><font style="font-family:inherit;font-size:10pt;">three and nine months ended September&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">, are not necessarily indicative of the results for the entire fiscal year ending December&#160;31, 2018.</font></div></div>
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Background and Nature of Operations</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Avangrid, Inc., formerly Iberdrola USA, Inc. (AVANGRID, we or the Company), is an energy services holding company engaged in the regulated energy distribution business through its principal subsidiary Avangrid Networks, Inc. (Networks) and in the renewable energy generation business through its principal subsidiary, Avangrid Renewables Holding, Inc. (ARHI). ARHI in turn holds subsidiaries including Avangrid Renewables, LLC (Renewables). Iberdrola, S.A. (Iberdrola), a corporation organized under the laws of the Kingdom of Spain, owns </font><font style="font-family:inherit;font-size:10pt;">81.5%</font><font style="font-family:inherit;font-size:10pt;"> the outstanding common stock of AVANGRID. The remaining outstanding shares are publicly traded on the New York Stock Exchange and owned by various shareholders.&#160;&#160;</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In December 2017, management committed to a plan to sell the gas storage and trading businesses because they represented non-core businesses that were not aligned with our strategic objectives. At that time, we determined that the assets and liabilities associated with our gas trading and storage businesses met the criteria for classification as assets held for sale, but did not meet the criteria for classification as discontinued operations. On </font><font style="font-family:inherit;font-size:10pt;">March&#160;1, 2018</font><font style="font-family:inherit;font-size:10pt;">, the Company closed a transaction to sell Enstor Energy Services, LLC, which operated AVANGRID&#8217;s gas trading business, to CCI U.S. Asset Holdings LLC, a subsidiary of Castleton Commodities International, LLC (CCI). On </font><font style="font-family:inherit;font-size:10pt;">May&#160;1, 2018</font><font style="font-family:inherit;font-size:10pt;">, the Company closed a transaction to sell Enstor Gas, LLC, which operated AVANGRID&#8217;s gas storage business, to Amphora Gas Storage USA, LLC.</font></div></div>

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