2017 Q1 Form 10-Q Financial Statement

#000103544317000086 Filed on May 02, 2017

View on sec.gov

Income Statement

Concept 2017 Q1 2016 Q1
Revenue $270.9M $216.1M
YoY Change 25.35% 9.83%
Cost Of Revenue $77.10M $65.80M
YoY Change 17.17% 7.52%
Gross Profit $193.8M $150.3M
YoY Change 28.94% 10.92%
Gross Profit Margin 71.55% 69.55%
Selling, General & Admin $19.20M $15.20M
YoY Change 26.32% 5.56%
% of Gross Profit 9.91% 10.11%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $97.20M $70.90M
YoY Change 37.09% 20.33%
% of Gross Profit 50.15% 47.17%
Operating Expenses $116.4M $86.10M
YoY Change 35.19% 17.46%
Operating Profit $77.40M $64.20M
YoY Change 20.56% 3.22%
Interest Expense $29.78M $24.86M
YoY Change 19.83% 6.97%
% of Operating Profit 38.48% 38.71%
Other Income/Expense, Net
YoY Change
Pretax Income $47.60M $10.00M
YoY Change 376.0% -60.16%
Income Tax
% Of Pretax Income
Net Earnings $41.71M $5.936M
YoY Change 602.68% -75.79%
Net Earnings / Revenue 15.4% 2.75%
Basic Earnings Per Share $0.29
Diluted Earnings Per Share $0.29 $81.27K
COMMON SHARES
Basic Shares Outstanding 88.15M shares 72.58M shares
Diluted Shares Outstanding 88.20M shares 72.58M shares

Balance Sheet

Concept 2017 Q1 2016 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $545.7M $572.2M
YoY Change -4.63% 53.11%
Cash & Equivalents $151.2M $256.0M
Short-Term Investments $394.5M $316.2M
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables $10.00M $10.00M
Other Receivables $0.00 $0.00
Total Short-Term Assets $161.0M $156.0M
YoY Change 3.21% 52.94%
LONG-TERM ASSETS
Property, Plant & Equipment $12.30M $14.19M
YoY Change -13.26% -99.8%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $445.0M $443.0M
YoY Change 0.45% 269.08%
Other Assets $585.0M $500.0M
YoY Change 17.0% 0.0%
Total Long-Term Assets $10.71B $8.816B
YoY Change 21.46% 6.17%
TOTAL ASSETS
Total Short-Term Assets $161.0M $156.0M
Total Long-Term Assets $10.71B $8.816B
Total Assets $10.87B $8.972B
YoY Change 21.15% 6.74%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $391.0M $266.0M
YoY Change 46.99% -31.44%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $470.0M $330.0M
YoY Change 42.42% -38.09%
LONG-TERM LIABILITIES
Long-Term Debt $4.561B $4.091B
YoY Change 11.49% 4.79%
Other Long-Term Liabilities $392.0M $362.0M
YoY Change 8.29% 110.47%
Total Long-Term Liabilities $4.953B $4.453B
YoY Change 11.23% 9.25%
TOTAL LIABILITIES
Total Short-Term Liabilities $470.0M $330.0M
Total Long-Term Liabilities $4.953B $4.453B
Total Liabilities $5.422B $4.784B
YoY Change 13.34% 3.82%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock $899.0K $729.0K
YoY Change 23.32% 1.82%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $4.952B $3.866B
YoY Change
Total Liabilities & Shareholders Equity $10.87B $8.972B
YoY Change 21.15% 6.74%

Cashflow Statement

Concept 2017 Q1 2016 Q1
OPERATING ACTIVITIES
Net Income $41.71M $5.936M
YoY Change 602.68% -75.79%
Depreciation, Depletion And Amortization $97.20M $70.90M
YoY Change 37.09% 20.33%
Cash From Operating Activities $107.6M $101.8M
YoY Change 5.76% -4.74%
INVESTING ACTIVITIES
Capital Expenditures -$436.1M -$159.5M
YoY Change 173.42% -19.69%
Acquisitions $218.5M
YoY Change
Other Investing Activities -$32.20M -$11.60M
YoY Change 177.59% -140.7%
Cash From Investing Activities -$468.4M -$171.1M
YoY Change 173.7% 0.63%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $217.8M $25.28M
YoY Change 761.46%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $388.7M $90.78M
YoY Change 328.17% 34.15%
NET CHANGE
Cash From Operating Activities $107.6M $101.8M
Cash From Investing Activities -$468.4M -$171.1M
Cash From Financing Activities $388.7M $90.78M
Net Change In Cash $27.98M $21.44M
YoY Change 30.49% 380.72%
FREE CASH FLOW
Cash From Operating Activities $107.6M $101.8M
Capital Expenditures -$436.1M -$159.5M
Free Cash Flow $543.7M $261.3M
YoY Change 108.11% -14.46%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Background</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As used in this quarterly report on Form 10-Q, references to the &#8220;Company,&#8221; &#8220;Alexandria,&#8221; &#8220;ARE,&#8221; &#8220;we,&#8221; &#8220;us,&#8221; and &#8220;our&#8221; refer to Alexandria Real Estate Equities, Inc. and its consolidated subsidiaries.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:115%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&amp;P 500</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> company, is an urban office REIT uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations with a total market capitalization of </font><font style="font-family:inherit;font-size:10pt;">$14.5 billion</font><font style="font-family:inherit;font-size:10pt;"> and an asset base in North America of </font><font style="font-family:inherit;font-size:10pt;">28.2 million</font><font style="font-family:inherit;font-size:10pt;"> square feet, as of </font><font style="font-family:inherit;font-size:10pt;">March 31, 2017</font><font style="font-family:inherit;font-size:10pt;">. The asset base in North America includes </font><font style="font-family:inherit;font-size:10pt;">20.1 million</font><font style="font-family:inherit;font-size:10pt;"> RSF of operating properties, including </font><font style="font-family:inherit;font-size:10pt;">1.6 million</font><font style="font-family:inherit;font-size:10pt;"> RSF of development and redevelopment of new Class A properties currently undergoing construction. Additionally, the asset base in North America includes </font><font style="font-family:inherit;font-size:10pt;">8.1 million</font><font style="font-family:inherit;font-size:10pt;"> SF of future development projects, including </font><font style="font-family:inherit;font-size:10pt;">1.5 million</font><font style="font-family:inherit;font-size:10pt;"> SF of near-term projects undergoing marketing for lease and preconstruction activities and </font><font style="font-family:inherit;font-size:10pt;">2.0 million</font><font style="font-family:inherit;font-size:10pt;"> SF of other near-term development projects. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland, and Research Triangle Park. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science and technology campuses that provide its innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. We believe these advantages result in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of </font><font style="font-family:inherit;font-size:10pt;">March 31, 2017</font><font style="font-family:inherit;font-size:10pt;">:</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:60px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Investment-grade tenants represented </font><font style="font-family:inherit;font-size:10pt;">51%</font><font style="font-family:inherit;font-size:10pt;"> of our total annual rental revenue;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:60px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Approximately </font><font style="font-family:inherit;font-size:10pt;">97%</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">of our leases (on an RSF basis) were triple net leases, requiring tenants to pay substantially all real estate taxes, insurance, utilities, common area expenses, and other operating expenses (including increases thereto) in addition to base rent;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:60px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Approximately </font><font style="font-family:inherit;font-size:10pt;">96%</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">of our leases (on an RSF basis) contained effective annual rent escalations that were either fixed (generally ranging from </font><font style="font-family:inherit;font-size:10pt;">3%</font><font style="font-family:inherit;font-size:10pt;"> to </font><font style="font-family:inherit;font-size:10pt;">3.5%</font><font style="font-family:inherit;font-size:10pt;">) </font><font style="font-family:inherit;font-size:10pt;">or indexed based on a consumer price index or other index; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:60px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Approximately </font><font style="font-family:inherit;font-size:10pt;">95%</font><font style="font-family:inherit;font-size:10pt;"> of our leases (on an RSF basis) </font><font style="font-family:inherit;font-size:10pt;">provided for the recapture of certain capital expenditures (such as HVAC systems maintenance and/or replacement, roof replacement, and parking lot resurfacing) that we believe would typically be borne by the landlord in traditional office leases.</font></div></td></tr></table><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Any references to our market capitalization, number or quality of buildings, quality of location, square footage, number of leases, occupancy percentage, and tenants, and any amounts derived from these values in the notes to consolidated financial statements, are unaudited.</font></div></div>
CY2017Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Use of estimates</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, and equity; the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements; and the amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.</font></div></div>

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