2014 Q2 Form 10-Q Financial Statement

#000110465914054411 Filed on July 29, 2014

View on sec.gov

Income Statement

Concept 2014 Q2 2013 Q2
Revenue $296.1M $186.1M
YoY Change 59.08% 29.06%
Cost Of Revenue $184.0M $117.0M
YoY Change 57.3% 26.13%
Gross Profit $112.1M $69.14M
YoY Change 62.1% 34.33%
Gross Profit Margin 37.85% 37.15%
Selling, General & Admin $49.02M $29.83M
YoY Change 64.35% 56.84%
% of Gross Profit 43.74% 43.14%
Research & Development $11.85M $7.060M
YoY Change 67.83% 20.35%
% of Gross Profit 10.57% 10.21%
Depreciation & Amortization $17.30M $13.60M
YoY Change 27.21% 223.81%
% of Gross Profit 15.44% 19.67%
Operating Expenses $60.87M $36.89M
YoY Change 65.01% 48.24%
Operating Profit $63.05M $39.31M
YoY Change 60.4% 21.14%
Interest Expense $4.784M $4.902M
YoY Change -2.41% 34914.29%
% of Operating Profit 7.59% 12.47%
Other Income/Expense, Net -$4.827M -$4.825M
YoY Change 0.04% 1403.12%
Pretax Income $58.23M $34.49M
YoY Change 68.84% 7.34%
Income Tax $3.493M $2.417M
% Of Pretax Income 6.0% 7.01%
Net Earnings $54.73M $32.07M
YoY Change 70.67% 9.25%
Net Earnings / Revenue 18.49% 17.23%
Basic Earnings Per Share $2.45 $1.34
Diluted Earnings Per Share $2.24 $1.25
COMMON SHARES
Basic Shares Outstanding 22.09M shares 23.16M shares
Diluted Shares Outstanding 24.17M shares 24.82M shares

Balance Sheet

Concept 2014 Q2 2013 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $127.9M $177.8M
YoY Change -28.07% 293.36%
Cash & Equivalents $127.9M $177.8M
Short-Term Investments
Other Short-Term Assets $2.210M $150.0K
YoY Change 1373.33% 233.33%
Inventory
Prepaid Expenses $4.212M $2.674M
Receivables $125.0M $99.32M
Other Receivables $2.600M $12.50M
Total Short-Term Assets $271.8M $299.1M
YoY Change -9.12% 141.19%
LONG-TERM ASSETS
Property, Plant & Equipment $101.0M $57.20M
YoY Change 76.49% 38.97%
Goodwill $61.94M $14.92M
YoY Change 315.29%
Intangibles
YoY Change
Long-Term Investments $0.00
YoY Change -100.0%
Other Assets $19.26M $15.11M
YoY Change 27.43% 73.51%
Total Long-Term Assets $439.2M $344.1M
YoY Change 27.66% 139.42%
TOTAL ASSETS
Total Short-Term Assets $271.8M $299.1M
Total Long-Term Assets $439.2M $344.1M
Total Assets $711.0M $643.1M
YoY Change 10.55% 140.24%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $22.59M $6.518M
YoY Change 246.62% 55.19%
Accrued Expenses $27.87M $39.80M
YoY Change -29.98% 17.75%
Deferred Revenue
YoY Change
Short-Term Debt $5.300M $5.200M
YoY Change 1.92% -7.14%
Long-Term Debt Due $3.975M $4.000M
YoY Change -0.63% 700.0%
Total Short-Term Liabilities $137.4M $76.70M
YoY Change 79.13% 24.72%
LONG-TERM LIABILITIES
Long-Term Debt $389.4M $393.7M
YoY Change -1.09%
Other Long-Term Liabilities $11.73M $1.340M
YoY Change 775.6% -46.4%
Total Long-Term Liabilities $401.1M $395.0M
YoY Change 1.54% 15700.76%
TOTAL LIABILITIES
Total Short-Term Liabilities $137.4M $76.70M
Total Long-Term Liabilities $401.1M $395.0M
Total Liabilities $538.5M $471.7M
YoY Change 14.16% 620.19%
SHAREHOLDERS EQUITY
Retained Earnings $330.4M $178.9M
YoY Change 84.62%
Common Stock $115.8M $113.8M
YoY Change 1.77%
Preferred Stock
YoY Change
Treasury Stock (at cost) $274.7M $123.0M
YoY Change 123.36%
Treasury Stock Shares 3.472M shares 2.418M shares
Shareholders Equity $171.5M $169.8M
YoY Change
Total Liabilities & Shareholders Equity $711.0M $643.1M
YoY Change 10.55% 140.24%

Cashflow Statement

Concept 2014 Q2 2013 Q2
OPERATING ACTIVITIES
Net Income $54.73M $32.07M
YoY Change 70.67% 9.25%
Depreciation, Depletion And Amortization $17.30M $13.60M
YoY Change 27.21% 223.81%
Cash From Operating Activities $75.20M $57.90M
YoY Change 29.88% 120.99%
INVESTING ACTIVITIES
Capital Expenditures -$17.60M -$6.400M
YoY Change 175.0% 30.61%
Acquisitions
YoY Change
Other Investing Activities $0.00 -$127.2M
YoY Change -100.0%
Cash From Investing Activities -$17.60M -$133.7M
YoY Change -86.84% 2628.57%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -46.30M 169.6M
YoY Change -127.3% -6157.14%
NET CHANGE
Cash From Operating Activities 75.20M 57.90M
Cash From Investing Activities -17.60M -133.7M
Cash From Financing Activities -46.30M 169.6M
Net Change In Cash 11.30M 93.80M
YoY Change -87.95% 407.03%
FREE CASH FLOW
Cash From Operating Activities $75.20M $57.90M
Capital Expenditures -$17.60M -$6.400M
Free Cash Flow $92.80M $64.30M
YoY Change 44.32% 106.75%

Facts In Submission

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<div style="font-size:10.0pt;font-family:Times New Roman;FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;"> <p style="MARGIN: 0in 0in 0pt;"><b><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold;" size="2">Correction of Immaterial Errors</font></b></p> <p style="MARGIN: 0in 0in 0pt;">&#160;</p> <p style="MARGIN: 0in 0in 0pt;"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2">During the second quarter of 2014, we determined that while we properly identified our related parties in previously issued financial statements, disclosures of certain immaterial related party expenses were omitted.&#160; We have corrected the previously presented disclosures of related party expenses in Note 2 &#8212; <i>Transactions with Related Parties</i> and on the face of the condensed consolidated statements of operations for the three and six months ended June&#160;30, 2013.&#160; The impact of correcting these items in the notes to the condensed consolidated financial statements had the effect of increasing the amounts disclosed as related party cost of revenue from Ocwen Financial Corporation, together with its subsidiaries (&#8220;Ocwen&#8221;), by $8.9 million for the six months ended June&#160;30, 2013 ($5.1 million for the second quarter of 2013), increasing the amounts disclosed as selling, general and administrative expenses from Ocwen billings to Altisource by $0.2 million for the six months ended June&#160;30, 2013 ($0.1 million for the second quarter of 2013), decreasing the amounts disclosed as selling, general and administrative expenses from Altisource billings to Ocwen by $0.1 million for the six months ended June&#160;30, 2013 ($0.1 million for the second quarter of 2013) and decreasing the amounts disclosed as selling, general and administrative expenses from Altisource billings to Altisource Asset Management Corporation (&#8220;AAMC&#8221;) by $0.2 million ($0.1 million for the second quarter of 2013).&#160; Correcting these items on the face of the condensed consolidated statements of operations&#160;resulted in the&#160;disclosure of related party cost of revenue&#160;of $8.9 million for the six months ended June&#160;30, 2013 ($5.1 million for the second quarter of 2013) and a decrease in previously disclosed related party selling, general and administrative expenses by $1.7 million for the six months ended June&#160;30, 2013 ($0.8 million for the second quarter of 2013).</font></p> <p style="MARGIN: 0in 0in 0pt;">&#160;</p> <p style="MARGIN: 0in 0in 0pt;"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2">In accordance with Accounting Standards Codification (&#8220;ASC&#8221;) Topic 250, <i>Accounting Changes and Error Corrections</i>, the Company evaluated the effect of the disclosure and presentation errors on its previously issued annual and quarterly financial statements, both qualitatively and quantitatively, and concluded that the related party disclosures in the Company&#8217;s previously issued annual and quarterly financial statements are not materially misstated.</font></p></div>

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