2023 Q2 Form 10-Q Financial Statement

#000161686223000019 Filed on May 02, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1
Revenue $1.294B $1.284B
YoY Change 4.78% 9.35%
Cost Of Revenue $904.4M $901.9M
YoY Change 2.03% 7.7%
Gross Profit $389.5M $382.0M
YoY Change 11.76% 13.45%
Gross Profit Margin 30.1% 29.75%
Selling, General & Admin $210.2M $206.0M
YoY Change 9.65% 6.46%
% of Gross Profit 53.97% 53.93%
Research & Development $18.60M $19.10M
YoY Change 11.38% 16.46%
% of Gross Profit 4.78% 5.0%
Depreciation & Amortization $66.20M $69.50M
YoY Change -14.36% -10.55%
% of Gross Profit 17.0% 18.19%
Operating Expenses $228.8M $225.1M
YoY Change 9.79% 7.24%
Operating Profit $137.6M $125.3M
YoY Change 32.82% 45.19%
Interest Expense $54.60M $48.20M
YoY Change 62.99% 47.85%
% of Operating Profit 39.68% 38.47%
Other Income/Expense, Net -$8.500M -$1.300M
YoY Change 18.06% -27.78%
Pretax Income $74.50M $75.80M
YoY Change 18.44% 46.05%
Income Tax $13.40M $15.30M
% Of Pretax Income 17.99% 20.18%
Net Earnings $60.90M $60.50M
YoY Change 38.1% 45.78%
Net Earnings / Revenue 4.71% 4.71%
Basic Earnings Per Share $0.27 $0.27
Diluted Earnings Per Share $0.27 $0.27
COMMON SHARES
Basic Shares Outstanding 221.5M shares 221.1M shares
Diluted Shares Outstanding 222.5M shares 222.1M shares

Balance Sheet

Concept 2023 Q2 2023 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $517.6M $512.1M
YoY Change 3.48% -11.12%
Cash & Equivalents $517.6M $512.1M
Short-Term Investments
Other Short-Term Assets $90.40M $101.3M
YoY Change -35.52% -6.72%
Inventory $766.7M $798.6M
Prepaid Expenses
Receivables $1.080B $998.8M
Other Receivables $190.7M $170.8M
Total Short-Term Assets $2.690B $2.624B
YoY Change 4.33% 4.28%
LONG-TERM ASSETS
Property, Plant & Equipment $1.197B $1.204B
YoY Change 3.81% 1.65%
Goodwill $1.527B $1.524B
YoY Change 1.9% -3.23%
Intangibles $1.077B $1.093B
YoY Change -8.17% -11.64%
Long-Term Investments
YoY Change
Other Assets $553.0M $555.7M
YoY Change 2.27% -2.32%
Total Long-Term Assets $4.354B $4.377B
YoY Change -0.25% -4.13%
TOTAL ASSETS
Total Short-Term Assets $2.690B $2.624B
Total Long-Term Assets $4.354B $4.377B
Total Assets $7.043B $7.001B
YoY Change 1.45% -1.14%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $702.3M $703.5M
YoY Change -5.96% -5.95%
Accrued Expenses $587.9M $534.6M
YoY Change 11.96% 2.63%
Deferred Revenue
YoY Change
Short-Term Debt $19.00M $21.60M
YoY Change -48.92% -58.3%
Long-Term Debt Due $20.00M $20.00M
YoY Change -17.7% -17.7%
Total Short-Term Liabilities $1.329B $1.280B
YoY Change -0.31% -4.86%
LONG-TERM LIABILITIES
Long-Term Debt $3.529B $3.606B
YoY Change -4.8% -3.58%
Other Long-Term Liabilities $131.2M $129.5M
YoY Change 4.29% -13.2%
Total Long-Term Liabilities $131.2M $129.5M
YoY Change 4.29% -13.2%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.329B $1.280B
Total Long-Term Liabilities $131.2M $129.5M
Total Liabilities $5.354B $5.385B
YoY Change -3.87% -4.86%
SHAREHOLDERS EQUITY
Retained Earnings $1.140B $1.079B
YoY Change 24.91% 24.24%
Common Stock $1.811B $1.801B
YoY Change 2.09% 1.71%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.644B $1.570B
YoY Change
Total Liabilities & Shareholders Equity $7.043B $7.001B
YoY Change 1.45% -1.14%

Cashflow Statement

Concept 2023 Q2 2023 Q1
OPERATING ACTIVITIES
Net Income $60.90M $60.50M
YoY Change 38.1% 45.78%
Depreciation, Depletion And Amortization $66.20M $69.50M
YoY Change -14.36% -10.55%
Cash From Operating Activities $131.0M -$51.80M
YoY Change 973.77% 18.0%
INVESTING ACTIVITIES
Capital Expenditures $32.50M $41.40M
YoY Change -210.17% -2.59%
Acquisitions
YoY Change
Other Investing Activities $1.000M -$900.0K
YoY Change -41.18% -10.0%
Cash From Investing Activities -$31.50M -$5.500M
YoY Change 13.31% -46.6%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $75.80M
YoY Change 1014.71%
Cash From Financing Activities -90.80M -$88.40M
YoY Change 74.28% -57.52%
NET CHANGE
Cash From Operating Activities 131.0M -$51.80M
Cash From Investing Activities -31.50M -$5.500M
Cash From Financing Activities -90.80M -$88.40M
Net Change In Cash 8.700M -$145.7M
YoY Change -112.85% -44.45%
FREE CASH FLOW
Cash From Operating Activities $131.0M -$51.80M
Capital Expenditures $32.50M $41.40M
Free Cash Flow $98.50M -$93.20M
YoY Change 136.21% 7.87%

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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, 2023, the results of operations, comprehensive income, changes in shareholders' equity and cash flows for the three months ended March 31, 2023 and 2022. 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, 2022. 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 ("GAAP").</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, 2023 are not necessarily indicative of the results to be expected for the full year ended December 31, 2023 or any future period(s).</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%">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 January 2023, we adopted 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%">, which codifies disclosure requirements for supplier financing programs. This ASU does not affect the recognition, measurement or financial statement presentation of obligations covered by supplier finance programs. Upon adoption of this ASU, we incorporated the required disclosures in Note 14. In addition to the disclosures included in Note 14, ASU 2022-04 requires a rollforward of activity for each supplier financing program beginning with reporting for the year ended December 31, 2024, at which time we will incorporate the required rollforward disclosure.</span></div>
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CY2023Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2023Q1 us-gaap Inventory Finished Goods Net Of Reserves
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CY2023Q1 us-gaap Inventory Work In Process Net Of Reserves
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CY2023Q1 us-gaap Inventory Supplies Net Of Reserves
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CY2022Q4 us-gaap Inventory Supplies Net Of Reserves
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CY2023Q1 us-gaap Inventory Net
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CY2023Q1 axta Shorttermand Other Borrowings
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CY2023Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
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CY2023Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
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CY2023Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Three
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CY2023Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Four
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CY2023Q1 axta Long Term Debt Maturity After Year Four
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CY2022Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
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CY2023Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Settlements
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CY2023Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Gain Loss Included In Earnings
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CY2023Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
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CY2023Q1 us-gaap Proceeds From Hedge Investing Activities
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29400000 usd
CY2023Q1 us-gaap Cash Flow Hedge Gain Loss To Be Reclassified Within Twelve Months
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600000 usd
CY2022Q1 us-gaap Interest Expense
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32600000 usd
CY2023Q1 axta Refinancing Costsand Gains Losseson Extinguishmentof Debt
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1800000 usd
CY2023Q1 us-gaap Number Of Operating Segments
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2 segment
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CY2023Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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1283900000 usd
CY2022Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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1174100000 usd
CY2023Q1 us-gaap Depreciation Depletion And Amortization
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69500000 usd
CY2022Q1 us-gaap Depreciation Depletion And Amortization
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CY2023Q1 axta Intercompanysalesbetweensegments
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CY2022Q1 axta Intercompanysalesbetweensegments
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CY2023Q1 axta Adjusted Earnings Before Interestand Tax
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132800000 usd
CY2022Q1 axta Adjusted Earnings Before Interestand Tax
AdjustedEarningsBeforeInterestandTax
95100000 usd
CY2023Q1 us-gaap Interest Expense
InterestExpense
48200000 usd
CY2022Q1 axta Refinancing Costsand Gains Losseson Extinguishmentof Debt
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CY2023Q1 axta Employee Termination And Other Related Costs
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CY2022Q1 axta Employee Termination And Other Related Costs
EmployeeTerminationAndOtherRelatedCosts
2400000 usd
CY2023Q1 axta Acquisition And Divestiture Related Benefits Costs
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500000 usd
CY2022Q1 axta Acquisition And Divestiture Related Benefits Costs
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400000 usd
CY2023Q1 us-gaap Asset Impairment Charges
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7100000 usd
CY2022Q1 us-gaap Asset Impairment Charges
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300000 usd
CY2023Q1 us-gaap Restructuring Reserve Accelerated Depreciation
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1100000 usd
CY2022Q1 us-gaap Restructuring Reserve Accelerated Depreciation
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1300000 usd
CY2023Q1 axta Expenses Related To Russian Sanctions
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-1400000 usd
CY2022Q1 axta Expenses Related To Russian Sanctions
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5800000 usd
CY2023Q1 axta Gain Loss In Other Adjustments
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100000 usd
CY2022Q1 axta Gain Loss In Other Adjustments
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CY2023Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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75800000 usd
CY2022Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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51900000 usd
CY2023Q1 axta Divestiture Related Costs Due Diligence Cost
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800000 usd
CY2023Q1 axta Cumulative Other Comprehensive Income Loss Foreign Exchange Adjustments Income Tax Expense Benefit
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CY2023Q1 axta Cumulative Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Income Tax Expense Benefit
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CY2023Q1 axta Cumulative Other Comprehensive Income Loss Gain Losson Derivatives Income Tax Expense Benefit
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400000 usd
CY2022Q1 axta Cumulative Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Income Tax Expense Benefit
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-24400000 usd
CY2022Q1 axta Cumulative Other Comprehensive Income Loss Gain Losson Derivatives Income Tax Expense Benefit
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-1000000 usd

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