2022 Q1 Form 10-Q Financial Statement

#000161686222000017 Filed on April 26, 2022

View on sec.gov

Income Statement

Concept 2022 Q1 2021 Q4 2021 Q1
Revenue $1.174B $1.137B $1.064B
YoY Change 10.39% 5.84% 8.14%
Cost Of Revenue $837.4M $804.7M $684.5M
YoY Change 22.34% 18.72% 5.83%
Gross Profit $336.7M $332.5M $379.1M
YoY Change -11.18% -16.18% 12.59%
Gross Profit Margin 28.68% 29.24% 35.64%
Selling, General & Admin $193.5M $192.2M $179.1M
YoY Change 8.04% 10.21% -8.34%
% of Gross Profit 57.47% 57.8% 47.24%
Research & Development $16.40M $15.60M $15.60M
YoY Change 5.13% 11.43% -6.02%
% of Gross Profit 4.87% 4.69% 4.12%
Depreciation & Amortization $77.70M $81.80M $76.40M
YoY Change 1.7% 6.65% 83.65%
% of Gross Profit 23.08% 24.6% 20.15%
Operating Expenses $209.9M $235.6M $194.7M
YoY Change 7.81% 3.33% -8.16%
Operating Profit $86.30M $96.90M $52.60M
YoY Change 64.07% -40.62% -19.2%
Interest Expense $32.60M -$33.50M $33.50M
YoY Change -2.69% -9.95% -8.22%
% of Operating Profit 37.78% -34.57% 63.69%
Other Income/Expense, Net -$1.800M $1.400M $400.0K
YoY Change -550.0% -275.0% -150.0%
Pretax Income $51.90M $62.60M $19.50M
YoY Change 166.15% -32.83% -29.86%
Income Tax $11.00M $9.200M $3.800M
% Of Pretax Income 21.19% 14.7% 19.49%
Net Earnings $41.50M $53.20M $15.20M
YoY Change 173.03% -23.67% -70.88%
Net Earnings / Revenue 3.53% 4.68% 1.43%
Basic Earnings Per Share $0.18 $0.06
Diluted Earnings Per Share $0.18 $232.7K $0.06
COMMON SHARES
Basic Shares Outstanding 224.7M shares 228.4M shares 233.9M shares
Diluted Shares Outstanding 225.2M shares 234.7M shares

Balance Sheet

Concept 2022 Q1 2021 Q4 2021 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $576.2M $840.6M $1.267B
YoY Change -54.52% -38.23% 92.77%
Cash & Equivalents $576.2M $840.6M $1.267B
Short-Term Investments
Other Short-Term Assets $108.6M $91.70M $101.3M
YoY Change 7.21% -6.52% -16.76%
Inventory $764.0M $669.7M $582.2M
Prepaid Expenses $135.7M $117.2M $136.5M
Receivables $854.0M $760.4M $778.4M
Other Receivables $175.8M $177.1M $123.9M
Total Short-Term Assets $2.516B $2.576B $2.891B
YoY Change -12.95% -11.97% 32.04%
LONG-TERM ASSETS
Property, Plant & Equipment $1.184B $1.186B $1.164B
YoY Change 1.79% -0.69% 0.04%
Goodwill $1.574B $1.593B $1.257B
YoY Change 25.23% 23.0% 5.0%
Intangibles $1.238B $1.278B $1.098B
YoY Change 12.66% 11.26% -6.84%
Long-Term Investments $9.900M $10.30M
YoY Change -7.48% -30.41%
Other Assets $568.9M $584.5M $610.8M
YoY Change -6.86% -1.45% -7.72%
Total Long-Term Assets $4.565B $4.642B $4.130B
YoY Change 10.54% 9.7% -1.7%
TOTAL ASSETS
Total Short-Term Assets $2.516B $2.576B $2.891B
Total Long-Term Assets $4.565B $4.642B $4.130B
Total Assets $7.082B $7.217B $7.021B
YoY Change 0.86% 0.84% 9.86%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $748.0M $657.4M $565.0M
YoY Change 32.39% 16.48% 15.35%
Accrued Expenses $520.9M $597.8M $575.2M
YoY Change -9.44% 6.31% 27.06%
Deferred Revenue
YoY Change
Short-Term Debt $51.80M $55.40M $25.60M
YoY Change 102.34% 85.28% 61.01%
Long-Term Debt Due $24.30M $24.30M $24.30M
YoY Change 0.0% 0.0% 0.0%
Total Short-Term Liabilities $1.345B $1.335B $1.190B
YoY Change 13.02% 13.04% 18.16%
LONG-TERM LIABILITIES
Long-Term Debt $3.739B $3.750B $3.810B
YoY Change -1.86% -2.31% 9.5%
Other Long-Term Liabilities $149.2M $149.7M $212.4M
YoY Change -29.76% -36.05% 18.53%
Total Long-Term Liabilities $149.2M $149.7M $212.4M
YoY Change -29.76% -36.05% 18.53%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.345B $1.335B $1.190B
Total Long-Term Liabilities $149.2M $149.7M $212.4M
Total Liabilities $5.660B $5.679B $5.615B
YoY Change 0.81% 0.02% 11.19%
SHAREHOLDERS EQUITY
Retained Earnings $868.7M $827.2M $578.5M
YoY Change 50.16% 46.85% 17.13%
Common Stock $1.770B $1.767B $1.742B
YoY Change 1.65% 1.69% 0.76%
Preferred Stock
YoY Change
Treasury Stock (at cost) $862.3M $687.2M $507.2M
YoY Change 70.01% 54.95% 21.49%
Treasury Stock Shares
Shareholders Equity $1.375B $1.493B $1.359B
YoY Change
Total Liabilities & Shareholders Equity $7.082B $7.217B $7.021B
YoY Change 0.86% 0.84% 9.86%

Cashflow Statement

Concept 2022 Q1 2021 Q4 2021 Q1
OPERATING ACTIVITIES
Net Income $41.50M $53.20M $15.20M
YoY Change 173.03% -23.67% -70.88%
Depreciation, Depletion And Amortization $77.70M $81.80M $76.40M
YoY Change 1.7% 6.65% 83.65%
Cash From Operating Activities -$43.90M $268.6M $39.60M
YoY Change -210.86% -3.52% -5050.0%
INVESTING ACTIVITIES
Capital Expenditures $42.50M -$22.90M $31.80M
YoY Change 33.65% -11.58% 40.09%
Acquisitions
YoY Change
Other Investing Activities -$1.000M $26.80M -$500.0K
YoY Change 100.0% 624.32% 25.0%
Cash From Investing Activities -$10.30M $3.900M -$27.80M
YoY Change -62.95% -117.57% 49.46%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $175.1M $63.70M
YoY Change 174.88%
Debt Paid & Issued, Net $6.800M $6.700M
YoY Change 1.49% -97.82%
Cash From Financing Activities -$208.1M -55.00M -$92.50M
YoY Change 124.97% -79.45% -71.21%
NET CHANGE
Cash From Operating Activities -$43.90M 268.6M $39.60M
Cash From Investing Activities -$10.30M 3.900M -$27.80M
Cash From Financing Activities -$208.1M -55.00M -$92.50M
Net Change In Cash -$262.3M 217.5M -$80.70M
YoY Change 225.03% -1991.3% -76.31%
FREE CASH FLOW
Cash From Operating Activities -$43.90M $268.6M $39.60M
Capital Expenditures $42.50M -$22.90M $31.80M
Free Cash Flow -$86.40M $291.5M $7.800M
YoY Change -1207.69% -4.21% -133.19%

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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 and shareholders' equity 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, 2022, the results of operations, comprehensive income (loss), changes in shareholders' equity and cash flows for the three months ended March 31, 2022 and 2021. 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, 2021. 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 entities 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, 2022 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%">Risks and Uncertainties</span></div>After experiencing significant impacts to our results of operations, financial condition and cash flows in 2020 from the coronavirus ("COVID-19") pandemic, we have seen a return to more stable quarter-over-quarter demand for our products and services during 2021 and into 2022, though 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 2022, 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.
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CY2022Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Gain Loss Included In Earnings
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CY2022Q1 us-gaap Number Of Reportable Segments
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2 Segment
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CY2022Q1 axta Adjusted Earnings Before Interestand Tax
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95100000 USD
CY2022Q1 axta Strategicreviewandretentioncosts
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0 USD
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CY2022Q1 us-gaap Interest Expense
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32600000 USD
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CY2022Q1 axta Employee Termination And Other Related Costs
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2400000 USD
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2800000 USD
CY2021Q1 axta Strategicreviewandretentioncosts
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5400000 USD
CY2022Q1 axta Acquisition And Divestiture Related Costs
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400000 USD
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200000 USD
CY2022Q1 us-gaap Asset Impairment Charges
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300000 USD
CY2021Q1 us-gaap Asset Impairment Charges
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CY2022Q1 axta Indemnity Gains Losses
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CY2022Q1 axta Expenses Related To Russian Sanctions
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51900000 USD
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19500000 USD
CY2022Q1 axta Cumulative Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Income Tax Expense Benefit
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-7500000 USD

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