2021 Q1 Form 10-Q Financial Statement

#000161686221000023 Filed on April 26, 2021

View on sec.gov

Income Statement

Concept 2021 Q1 2020 Q1
Revenue $1.064B $983.5M
YoY Change 8.14% -12.13%
Cost Of Revenue $684.5M $646.8M
YoY Change 5.83% -13.91%
Gross Profit $379.1M $336.7M
YoY Change 12.59% -8.51%
Gross Profit Margin 35.64% 34.23%
Selling, General & Admin $179.1M $195.4M
YoY Change -8.34% -9.37%
% of Gross Profit 47.24% 58.03%
Research & Development $15.60M $16.60M
YoY Change -6.02% -8.79%
% of Gross Profit 4.12% 4.93%
Depreciation & Amortization $76.40M $41.60M
YoY Change 83.65% -8.37%
% of Gross Profit 20.15% 12.36%
Operating Expenses $194.7M $212.0M
YoY Change -8.16% -9.32%
Operating Profit $52.60M $65.10M
YoY Change -19.2% -33.98%
Interest Expense $33.50M $36.50M
YoY Change -8.22% -11.62%
% of Operating Profit 63.69% 56.07%
Other Income/Expense, Net $400.0K -$800.0K
YoY Change -150.0% -180.0%
Pretax Income $19.50M $27.80M
YoY Change -29.86% -52.32%
Income Tax $3.800M -$24.60M
% Of Pretax Income 19.49% -88.49%
Net Earnings $15.20M $52.20M
YoY Change -70.88% 20.28%
Net Earnings / Revenue 1.43% 5.31%
Basic Earnings Per Share $0.06 $0.22
Diluted Earnings Per Share $0.06 $0.22
COMMON SHARES
Basic Shares Outstanding 233.9M shares 234.9M shares
Diluted Shares Outstanding 234.7M shares 235.9M shares

Balance Sheet

Concept 2021 Q1 2020 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.267B $657.2M
YoY Change 92.77% 31.15%
Cash & Equivalents $1.267B $657.2M
Short-Term Investments
Other Short-Term Assets $101.3M $121.7M
YoY Change -16.76% -42.92%
Inventory $582.2M $596.1M
Prepaid Expenses $136.5M $155.6M
Receivables $778.4M $661.7M
Other Receivables $123.9M $115.9M
Total Short-Term Assets $2.891B $2.189B
YoY Change 32.04% -3.2%
LONG-TERM ASSETS
Property, Plant & Equipment $1.164B $1.163B
YoY Change 0.04% -8.73%
Goodwill $1.257B $1.197B
YoY Change 5.0% -1.55%
Intangibles $1.098B $1.179B
YoY Change -6.84% -10.05%
Long-Term Investments $10.30M $14.80M
YoY Change -30.41% 0.0%
Other Assets $610.8M $661.9M
YoY Change -7.72% 8.42%
Total Long-Term Assets $4.130B $4.201B
YoY Change -1.7% -4.77%
TOTAL ASSETS
Total Short-Term Assets $2.891B $2.189B
Total Long-Term Assets $4.130B $4.201B
Total Assets $7.021B $6.391B
YoY Change 9.86% -4.24%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $565.0M $489.8M
YoY Change 15.35% -7.74%
Accrued Expenses $575.2M $452.7M
YoY Change 27.06% 1.53%
Deferred Revenue
YoY Change
Short-Term Debt $25.60M $15.90M
YoY Change 61.01% -17.19%
Long-Term Debt Due $24.30M $24.30M
YoY Change 0.0% 0.0%
Total Short-Term Liabilities $1.190B $1.007B
YoY Change 18.16% -1.4%
LONG-TERM LIABILITIES
Long-Term Debt $3.810B $3.480B
YoY Change 9.5% -8.65%
Other Long-Term Liabilities $212.4M $179.2M
YoY Change 18.53% 7.18%
Total Long-Term Liabilities $212.4M $179.2M
YoY Change 18.53% 7.18%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.190B $1.007B
Total Long-Term Liabilities $212.4M $179.2M
Total Liabilities $5.615B $5.050B
YoY Change 11.19% -6.38%
SHAREHOLDERS EQUITY
Retained Earnings $578.5M $493.9M
YoY Change 17.13% 104.68%
Common Stock $1.742B $1.729B
YoY Change 0.76% 2.97%
Preferred Stock
YoY Change
Treasury Stock (at cost) $507.2M $417.5M
YoY Change 21.49% 10.45%
Treasury Stock Shares
Shareholders Equity $1.359B $1.291B
YoY Change
Total Liabilities & Shareholders Equity $7.021B $6.391B
YoY Change 9.86% -4.24%

Cashflow Statement

Concept 2021 Q1 2020 Q1
OPERATING ACTIVITIES
Net Income $15.20M $52.20M
YoY Change -70.88% 20.28%
Depreciation, Depletion And Amortization $76.40M $41.60M
YoY Change 83.65% -8.37%
Cash From Operating Activities $39.60M -$800.0K
YoY Change -5050.0% -98.62%
INVESTING ACTIVITIES
Capital Expenditures $31.80M $22.70M
YoY Change 40.09% 10.73%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities -$500.0K -$400.0K
YoY Change 25.0% -500.0%
Cash From Investing Activities -$27.80M -$18.60M
YoY Change 49.46% -1.06%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $63.70M $0.00
YoY Change -100.0%
Debt Paid & Issued, Net $6.700M $307.2M
YoY Change -97.82% 4108.22%
Cash From Financing Activities -$92.50M -$321.3M
YoY Change -71.21% 215.62%
NET CHANGE
Cash From Operating Activities $39.60M -$800.0K
Cash From Investing Activities -$27.80M -$18.60M
Cash From Financing Activities -$92.50M -$321.3M
Net Change In Cash -$80.70M -$340.7M
YoY Change -76.31% 90.87%
FREE CASH FLOW
Cash From Operating Activities $39.60M -$800.0K
Capital Expenditures $31.80M $22.70M
Free Cash Flow $7.800M -$23.50M
YoY Change -133.19% -70.03%

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES<div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The interim condensed consolidated financial statements included herein are unaudited. In the opinion of management, these statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair statement of the financial position of Axalta Coating Systems Ltd., a Bermuda exempted company limited by shares, and its consolidated subsidiaries ("Axalta," the "Company," "we," "our" and "us") at March 31, 2021 and December 31, 2020, the results of operations, comprehensive loss, changes in shareholders' equity and cash flows for the three months ended March 31, 2021 and 2020. All intercompany balances and transactions have been eliminated. </span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">These interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.</span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The interim unaudited condensed consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. Certain of our joint ventures are accounted for on a one-month lag basis, the effect of which is not material.</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for a full year.</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Summary of Significant Accounting Policies</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Recently Adopted Accounting Guidance</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In March 2020, we adopted ASU 2020-04, "Reference Rate Reform" which provides optional expedients exercisable through December 31, 2022 to ease the potential burden in accounting for the effects of reference rate reform on financial reporting.      In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope,” which clarified the scope and application of the original guidance. As of March 31, 2021, the expedients provided in this standard do not impact the Company. We will continue to monitor for potential impacts on our financial statements.</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In December 2020, we adopted ASU 2019-12, "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and updating provisions related to accounting for franchise (or similar) tax partially based on income and interim recognition of enactment of tax law changes. The adoption of this standard did not have a material impact on our financial statements.</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Risks and Uncertainties</span></div>In March 2020, the World Health Organization characterized the coronavirus ("COVID-19") a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The rapid spread of the pandemic and the continuously evolving responses to combat it have had a negative impact on the global economy. The Company's results of operations, financial condition and cash flows were significantly impacted during 2020 as a result of the pandemic and we continue to see impacts to our business given the continued significant presence, and actual or potential spread, of the virus globally, as well as preventative measures enacted in certain regions of the world. We are currently unable to fully determine the future impact of COVID-19 on our business, though we believe the pandemic will continue to have a negative effect on our business during 2021, and potentially longer. We are monitoring the progression of the pandemic and its ongoing and potential effect on our financial position, results of operations, and cash flows, which effects could be materially adverse in a particular quarterly reporting period as well as on an annual basis for 2021, and potentially longer.
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CY2020Q1 us-gaap Depreciation
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42400000 USD
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CY2021Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
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531900000 USD
CY2021Q1 axta Long Term Debt Maturity After Year Four
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CY2021Q1 us-gaap Number Of Reportable Segments
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2 Segment
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2 Segment
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10300000 USD
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CY2021Q1 axta Intercompanysalesbetweensegments
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33500000 USD
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36500000 USD
CY2021Q1 axta Refinancing Costsand Gains Losseson Extinguishmentof Debt
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0 USD
CY2020Q1 axta Refinancing Costsand Gains Losseson Extinguishmentof Debt
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2400000 USD
CY2021Q1 axta Employee Termination And Other Related Costs
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2800000 USD
CY2020Q1 axta Employee Termination And Other Related Costs
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19500000 USD
CY2021Q1 axta Strategicreviewandretentioncosts
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5400000 USD
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11500000 USD
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200000 USD
CY2020Q1 axta Offeringandtransactionalcosts
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100000 USD
CY2021Q1 us-gaap Asset Impairment Charges
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CY2020Q1 us-gaap Asset Impairment Charges
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500000 USD
CY2021Q1 axta Pensionspecialevent
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CY2020Q1 axta Pensionspecialevent
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CY2021Q1 us-gaap Restructuring Reserve Accelerated Depreciation
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600000 USD
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CY2021Q1 us-gaap Loss Contingency Loss In Period
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CY2020Q1 us-gaap Loss Contingency Loss In Period
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CY2021Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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19500000 USD
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27800000 USD
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CY2021Q1 axta Cumulative Other Comprehensive Income Loss Gain Losson Derivatives Income Tax Expense Benefit
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CY2020Q1 us-gaap Other Comprehensive Income Loss Finalization Of Pension And Non Pension Postretirement Plan Valuation Net Of Tax
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1200000 USD
CY2020Q1 axta Cumulative Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Income Tax Expense Benefit
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-26800000 USD
CY2020Q1 axta Cumulative Other Comprehensive Income Loss Gain Losson Derivatives Income Tax Expense Benefit
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-10300000 USD

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