2015 Q1 Form 10-Q Financial Statement

#000162828015002875 Filed on April 23, 2015

View on sec.gov

Income Statement

Concept 2015 Q1 2014 Q1
Revenue $240.5M $239.3M
YoY Change 0.51% 60.77%
Cost Of Revenue $172.8M $147.8M
YoY Change 16.93% 52.44%
Gross Profit $67.66M $91.46M
YoY Change -26.03% 76.35%
Gross Profit Margin 28.13% 38.23%
Selling, General & Admin $52.41M $43.53M
YoY Change 20.38% 133.05%
% of Gross Profit 77.46% 47.6%
Research & Development $11.89M $8.841M
YoY Change 34.52% 61.01%
% of Gross Profit 17.58% 9.67%
Depreciation & Amortization $17.70M $15.70M
YoY Change 12.74% 166.1%
% of Gross Profit 26.16% 17.17%
Operating Expenses $64.30M $52.38M
YoY Change 22.77% 116.69%
Operating Profit $15.25M $47.93M
YoY Change -68.18% 44.43%
Interest Expense $7.160M $4.776M
YoY Change 49.92% 48.69%
% of Operating Profit 46.95% 9.96%
Other Income/Expense, Net -$10.44M -$4.729M
YoY Change 120.81% 88.63%
Pretax Income $4.808M $43.20M
YoY Change -88.87% 40.82%
Income Tax $400.0K $3.055M
% Of Pretax Income 8.32% 7.07%
Net Earnings $4.408M $40.15M
YoY Change -89.02% 40.73%
Net Earnings / Revenue 1.83% 16.78%
Basic Earnings Per Share $0.18 $1.76
Diluted Earnings Per Share $0.18 $1.61
COMMON SHARES
Basic Shares Outstanding 20.17M shares 22.51M shares
Diluted Shares Outstanding 21.00M shares 24.66M shares

Balance Sheet

Concept 2015 Q1 2014 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $105.6M $116.4M
YoY Change -9.28% 50.58%
Cash & Equivalents $105.6M $116.4M
Short-Term Investments
Other Short-Term Assets $4.849M $1.734M
YoY Change 179.64% 1520.56%
Inventory
Prepaid Expenses $4.453M $4.740M
Receivables $126.7M $122.1M
Other Receivables $6.200M $1.900M
Total Short-Term Assets $285.2M $254.6M
YoY Change 12.01% 21.19%
LONG-TERM ASSETS
Property, Plant & Equipment $126.5M $94.54M
YoY Change 33.83% 77.23%
Goodwill $90.85M $99.41M
YoY Change -8.61% 566.54%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $21.79M $18.35M
YoY Change 18.75% 38.51%
Total Long-Term Assets $475.5M $479.5M
YoY Change -0.82% 116.6%
TOTAL ASSETS
Total Short-Term Assets $285.2M $254.6M
Total Long-Term Assets $475.5M $479.5M
Total Assets $760.7M $734.1M
YoY Change 3.63% 70.14%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $13.92M $22.99M
YoY Change -39.42% 126.95%
Accrued Expenses $31.47M $25.21M
YoY Change 24.85% 31.55%
Deferred Revenue
YoY Change
Short-Term Debt $4.600M $3.700M
YoY Change 24.32% 27.59%
Long-Term Debt Due $5.945M $3.975M
YoY Change 49.56% 98.75%
Total Short-Term Liabilities $113.5M $134.5M
YoY Change -15.62% 100.9%
LONG-TERM LIABILITIES
Long-Term Debt $581.3M $390.3M
YoY Change 48.93% 99.53%
Other Long-Term Liabilities $21.33M $46.70M
YoY Change -54.31% 2642.04%
Total Long-Term Liabilities $602.6M $437.0M
YoY Change 37.9% 121.48%
TOTAL LIABILITIES
Total Short-Term Liabilities $113.5M $134.5M
Total Long-Term Liabilities $602.6M $437.0M
Total Liabilities $716.1M $571.5M
YoY Change 25.3% 116.26%
SHAREHOLDERS EQUITY
Retained Earnings $370.0M $277.5M
YoY Change 33.34% 83.21%
Common Stock $117.4M $115.3M
YoY Change 1.75% 1.44%
Preferred Stock
YoY Change
Treasury Stock (at cost) $446.6M $231.2M
YoY Change 93.16% 132.83%
Treasury Stock Shares 5.281M shares 3.076M shares
Shareholders Equity $40.78M $161.6M
YoY Change
Total Liabilities & Shareholders Equity $760.7M $734.1M
YoY Change 3.63% 70.14%

Cashflow Statement

Concept 2015 Q1 2014 Q1
OPERATING ACTIVITIES
Net Income $4.408M $40.15M
YoY Change -89.02% 40.73%
Depreciation, Depletion And Amortization $17.70M $15.70M
YoY Change 12.74% 166.1%
Cash From Operating Activities -$15.90M $36.30M
YoY Change -143.8% 278.13%
INVESTING ACTIVITIES
Capital Expenditures $3.931M $12.95M
YoY Change -69.63% 85.99%
Acquisitions
YoY Change
Other Investing Activities $4.000K $300.0K
YoY Change -98.67% 500.0%
Cash From Investing Activities -$33.90M -$13.20M
YoY Change 156.82% 69.23%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $3.959M $35.77M
YoY Change -88.93% 62.59%
Debt Paid & Issued, Net $994.0K
YoY Change 98.8%
Cash From Financing Activities -5.900M -37.00M
YoY Change -84.05% 58.8%
NET CHANGE
Cash From Operating Activities -15.90M 36.30M
Cash From Investing Activities -33.90M -13.20M
Cash From Financing Activities -5.900M -37.00M
Net Change In Cash -55.70M -13.90M
YoY Change 300.72% -35.35%
FREE CASH FLOW
Cash From Operating Activities -$15.90M $36.30M
Capital Expenditures $3.931M $12.95M
Free Cash Flow -$19.83M $23.36M
YoY Change -184.91% 784.66%

Facts In Submission

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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;">As previously disclosed, during 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. We corrected the previously presented disclosures of related party expenses in </font><font style="font-family:inherit;font-size:10pt;">Note 2</font><font style="font-family:inherit;font-size:10pt;"> - </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Transactions with Related Parties </font><font style="font-family:inherit;font-size:10pt;">and on the face of the condensed consolidated statements of operations for the three months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;">. The impact of correcting these items in the notes to the condensed consolidated financial statements had the effect of:</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" 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:24px;"><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%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">increasing the amounts disclosed as related party cost of revenue from Ocwen Financial Corporation and its subsidiaries (&#8220;Ocwen&#8221;) by </font><font style="font-family:inherit;font-size:10pt;">$7.3 million</font><font style="font-family:inherit;font-size:10pt;"> for the three months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;">;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" 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:24px;"><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%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">increasing the amounts disclosed as selling, general and administrative expenses from Ocwen billings to Altisource by </font><font style="font-family:inherit;font-size:10pt;">$0.4 million</font><font style="font-family:inherit;font-size:10pt;"> for the three months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;">;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" 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:24px;"><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%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">decreasing the amounts disclosed as selling, general and administrative expenses from Altisource billings to Ocwen by </font><font style="font-family:inherit;font-size:10pt;">$0.2 million</font><font style="font-family:inherit;font-size:10pt;"> for the three months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;">; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" 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:24px;"><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%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">decreasing the amounts disclosed as selling, general and administrative expenses from Altisource billings to Altisource Asset Management Corporation (&#8220;AAMC&#8221;) by </font><font style="font-family:inherit;font-size:10pt;">$0.3 million</font><font style="font-family:inherit;font-size:10pt;"> for the three months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;">.</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-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Correcting these items on the face of the condensed consolidated statements of operations resulted in the disclosure of related party cost of revenue of </font><font style="font-family:inherit;font-size:10pt;">$7.3 million</font><font style="font-family:inherit;font-size:10pt;"> and a decrease in previously disclosed related party selling, general and administrative expenses by </font><font style="font-family:inherit;font-size:10pt;">$1.1 million</font><font style="font-family:inherit;font-size:10pt;"> for the three months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;">.</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-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In accordance with the Financial Accounting Standards Board (&#8220;FASB&#8221;) Accounting Standards Codification (&#8220;ASC&#8221;) Topic 250, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Accounting Changes and Error Corrections</font><font style="font-family:inherit;font-size:10pt;">, 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></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>

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