2022 Q4 Form 10-Q Financial Statement

#000161686222000041 Filed on October 25, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3
Revenue $1.237B $1.239B
YoY Change 8.75% 13.79%
Cost Of Revenue $865.2M $876.6M
YoY Change 7.52% 17.62%
Gross Profit $371.5M $362.1M
YoY Change 11.73% 5.48%
Gross Profit Margin 30.04% 29.23%
Selling, General & Admin $200.8M $186.4M
YoY Change 4.47% 2.98%
% of Gross Profit 54.05% 51.48%
Research & Development $16.80M $16.50M
YoY Change 7.69% 7.14%
% of Gross Profit 4.52% 4.56%
Depreciation & Amortization $73.60M $74.50M
YoY Change -10.02% -6.05%
% of Gross Profit 19.81% 20.57%
Operating Expenses $261.7M $202.9M
YoY Change 11.08% 3.31%
Operating Profit $109.8M $123.5M
YoY Change 13.31% -0.96%
Interest Expense -$38.70M $35.00M
YoY Change 15.52% 3.55%
% of Operating Profit -35.25% 28.34%
Other Income/Expense, Net -$13.70M -$3.400M
YoY Change -1078.57% -241.67%
Pretax Income $57.40M $85.10M
YoY Change -8.31% -8.79%
Income Tax $13.50M $21.80M
% Of Pretax Income 23.52% 25.62%
Net Earnings $43.60M $62.40M
YoY Change -18.05% -9.7%
Net Earnings / Revenue 3.53% 5.04%
Basic Earnings Per Share $0.28
Diluted Earnings Per Share $196.8K $0.28
COMMON SHARES
Basic Shares Outstanding 220.6M shares 220.5M shares
Diluted Shares Outstanding 221.2M shares

Balance Sheet

Concept 2022 Q4 2022 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $645.2M $517.4M
YoY Change -23.25% -17.57%
Cash & Equivalents $645.2M $517.4M
Short-Term Investments
Other Short-Term Assets $150.5M $173.7M
YoY Change 64.12% 46.58%
Inventory $829.6M $829.4M
Prepaid Expenses $140.8M $205.4M
Receivables $1.067B $952.2M
Other Receivables $0.00 $154.7M
Total Short-Term Assets $2.693B $2.668B
YoY Change 4.55% 6.15%
LONG-TERM ASSETS
Property, Plant & Equipment $1.190B $1.122B
YoY Change 0.34% -6.03%
Goodwill $1.498B $1.390B
YoY Change -5.95% -14.16%
Intangibles $1.112B $1.094B
YoY Change -12.98% -17.35%
Long-Term Investments $10.30M
YoY Change 4.04%
Other Assets $566.0M $545.2M
YoY Change -3.17% -6.47%
Total Long-Term Assets $4.367B $4.151B
YoY Change -5.93% -12.05%
TOTAL ASSETS
Total Short-Term Assets $2.693B $2.668B
Total Long-Term Assets $4.367B $4.151B
Total Assets $7.059B $6.819B
YoY Change -2.19% -5.72%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $733.5M $746.6M
YoY Change 11.58% 19.94%
Accrued Expenses $620.2M $536.4M
YoY Change 3.75% -12.18%
Deferred Revenue
YoY Change
Short-Term Debt $16.00M $42.40M
YoY Change -71.12% 123.16%
Long-Term Debt Due $40.10M $24.30M
YoY Change 65.02% 0.0%
Total Short-Term Liabilities $1.394B $1.350B
YoY Change 4.41% 5.73%
LONG-TERM LIABILITIES
Long-Term Debt $3.664B $3.663B
YoY Change -2.29% -3.58%
Other Long-Term Liabilities $339.6M $119.8M
YoY Change 126.85% -41.33%
Total Long-Term Liabilities $4.004B $119.8M
YoY Change 2574.55% -41.33%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.394B $1.350B
Total Long-Term Liabilities $4.004B $119.8M
Total Liabilities $5.606B $5.500B
YoY Change -1.28% -4.29%
SHAREHOLDERS EQUITY
Retained Earnings $1.019B $975.2M
YoY Change 23.16% 25.99%
Common Stock $1.789B $1.779B
YoY Change 1.22% 0.96%
Preferred Stock
YoY Change
Treasury Stock (at cost) $887.3M
YoY Change 29.12%
Treasury Stock Shares
Shareholders Equity $1.454B $1.273B
YoY Change
Total Liabilities & Shareholders Equity $7.059B $6.819B
YoY Change -2.19% -5.72%

Cashflow Statement

Concept 2022 Q4 2022 Q3
OPERATING ACTIVITIES
Net Income $43.60M $62.40M
YoY Change -18.05% -9.7%
Depreciation, Depletion And Amortization $73.60M $74.50M
YoY Change -10.02% -6.05%
Cash From Operating Activities $245.6M $79.90M
YoY Change -8.56% -44.09%
INVESTING ACTIVITIES
Capital Expenditures -$43.40M -$35.50M
YoY Change 89.52% -7.55%
Acquisitions
YoY Change
Other Investing Activities $4.900M $5.700M
YoY Change -81.72% -100.97%
Cash From Investing Activities -$38.50M -$29.80M
YoY Change -1087.18% -95.26%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -94.00M -14.70M
YoY Change 70.91% -86.59%
NET CHANGE
Cash From Operating Activities 245.6M 79.90M
Cash From Investing Activities -38.50M -29.80M
Cash From Financing Activities -94.00M -14.70M
Net Change In Cash 113.1M 35.40M
YoY Change -48.0% -105.95%
FREE CASH FLOW
Cash From Operating Activities $245.6M $79.90M
Capital Expenditures -$43.40M -$35.50M
Free Cash Flow $289.0M $115.4M
YoY Change -0.86% -36.35%

Facts In Submission

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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 September 30, 2022, the results of operations, comprehensive (loss) income and changes in shareholders' equity for the three and nine months ended September 30, 2022 and 2021 and cash flows for the nine months then ended. 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 and nine months ended September 30, 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%">Summary of Significant Accounting Policies Updates</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%">Accounting Guidance Issued But Not Yet Adopted</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 September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Liabilities – Supplier Finance Programs</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. The ASU codifies disclosure requirements for supplier financing programs. The new standard is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We are currently evaluating the impact of ASU 2022-04 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>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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