2018 Q3 Form 10-Q Financial Statement

#000171754718000014 Filed on November 09, 2018

View on sec.gov

Income Statement

Concept 2018 Q3 2017 Q3
Revenue $141.7M $45.84M
YoY Change 209.01% 28.41%
Cost Of Revenue $11.88M $3.000M
YoY Change 295.9% 500.0%
Gross Profit $129.8M $39.80M
YoY Change 226.09% 13.07%
Gross Profit Margin 91.62% 86.82%
Selling, General & Admin $6.800M $2.900M
YoY Change 134.48% -19.44%
% of Gross Profit 5.24% 7.29%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $30.50M $2.600M
YoY Change 1073.08% 2500.0%
% of Gross Profit 23.5% 6.53%
Operating Expenses $73.30M $5.400M
YoY Change 1257.41% 38.46%
Operating Profit $56.48M $34.40M
YoY Change 64.2% 9.9%
Interest Expense $13.15M $4.694M
YoY Change 180.1% -435.29%
% of Operating Profit 23.28% 13.65%
Other Income/Expense, Net
YoY Change
Pretax Income -$69.45M $27.91M
YoY Change -348.87% -6.67%
Income Tax -$2.456M -$535.0K
% Of Pretax Income -1.92%
Net Earnings -$52.70M $21.25M
YoY Change -347.99% -27.96%
Net Earnings / Revenue -37.2% 46.36%
Basic Earnings Per Share
Diluted Earnings Per Share -$0.41 $0.48
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $56.30M $55.60M
YoY Change 1.26%
Cash & Equivalents $56.29M $55.62M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables $37.80M
Other Receivables $0.00
Total Short-Term Assets $94.10M $55.60M
YoY Change 69.24%
LONG-TERM ASSETS
Property, Plant & Equipment $1.980B $209.5M
YoY Change 845.2%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $559.7M $233.3M
YoY Change 139.89%
Other Assets $320.4M $64.20M
YoY Change 399.07%
Total Long-Term Assets $8.554B $2.064B
YoY Change 314.39%
TOTAL ASSETS
Total Short-Term Assets $94.10M $55.60M
Total Long-Term Assets $8.554B $2.064B
Total Assets $8.648B $2.120B
YoY Change 307.96%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses $101.6M $57.40M
YoY Change 77.0%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $196.5M $57.40M
YoY Change 242.33%
LONG-TERM LIABILITIES
Long-Term Debt $5.383B $486.4M
YoY Change 1006.66%
Other Long-Term Liabilities $16.60M
YoY Change
Total Long-Term Liabilities $5.399B $486.4M
YoY Change 1010.07%
TOTAL LIABILITIES
Total Short-Term Liabilities $196.5M $57.40M
Total Long-Term Liabilities $5.399B $486.4M
Total Liabilities $5.596B $553.9M
YoY Change 910.28%
SHAREHOLDERS EQUITY
Retained Earnings -$10.62M
YoY Change
Common Stock $2.898B
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.891B $1.566B
YoY Change
Total Liabilities & Shareholders Equity $8.648B $2.120B
YoY Change 307.96%

Cashflow Statement

Concept 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income -$52.70M $21.25M
YoY Change -347.99% -27.96%
Depreciation, Depletion And Amortization $30.50M $2.600M
YoY Change 1073.08% 2500.0%
Cash From Operating Activities $35.50M $27.00M
YoY Change 31.48% -58.53%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities -$451.0M $127.2M
YoY Change -454.56% 21.26%
Cash From Investing Activities -$451.0M $127.2M
YoY Change -454.56% 21.26%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 316.0M -130.1M
YoY Change -342.89% -19.69%
NET CHANGE
Cash From Operating Activities 35.50M 27.00M
Cash From Investing Activities -451.0M 127.2M
Cash From Financing Activities 316.0M -130.1M
Net Change In Cash -99.50M 24.10M
YoY Change -512.86% 201.25%
FREE CASH FLOW
Cash From Operating Activities $35.50M $27.00M
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

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dei Document Period End Date
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us-gaap Amortization Of Below Market Lease
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us-gaap Amortization Of Below Market Lease
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196000 USD
us-gaap Amortization Of Deferred Leasing Fees
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529000 USD
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2840000 USD
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3051000 USD
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2000 USD
us-gaap Amortization Of Intangible Assets
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6000 USD
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2000 USD
us-gaap Amortization Of Intangible Assets
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6000 USD
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15000 USD
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3117000 USD
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283000 USD
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2417000 USD
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3850000 USD
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4055000 USD
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4500000 USD
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51000 USD
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36000 USD
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25204000 USD
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41640000 USD
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31085000 USD
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CY2018Q3 us-gaap Common Stock Dividends Per Share Declared
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0.00
us-gaap Common Stock Dividends Per Share Declared
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0.00
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1.16
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6590000 USD
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278000 USD
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278000 USD
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44000 USD
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234000 USD
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437000 USD
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127000 USD
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543000 USD
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151000 USD
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128000 USD
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P2Y5M0D
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12010000 USD
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us-gaap Fair Value Option Changes In Fair Value Gain Loss1
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5272000 USD
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20291000 USD
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2027-12-31
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1839402000 USD
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36294000 USD
us-gaap Investment Income Investment Expense
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97031000 USD
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203720000 USD
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770102000 USD
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us-gaap Lease And Rental Expense
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1400000 USD
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700000 USD
us-gaap Lease And Rental Expense
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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;font-weight:bold;">Business and Organization</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Colony Credit Real Estate, Inc. (the &#8220;Company&#8221;) is a commercial real estate (&#8220;CRE&#8221;) credit real estate investment trust (&#8220;REIT&#8221;) focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE senior mortgage loans, mezzanine loans, preferred equity, debt securities and net leased properties predominantly in the United States. CRE debt investments include senior mortgage loans, mezzanine loans, preferred equity, and participations in such loans and preferred equity interests. CRE debt securities consist of commercial mortgage-backed securities (&#8220;CMBS&#8221;) (including &#8220;B-pieces&#8221; of a CMBS securitization pool). Net leased properties consist of CRE properties with long-term leases to tenants on a net-lease basis, where such tenants generally will be responsible for property operating expenses such as insurance, utilities, maintenance capital expenditures and real estate taxes. </font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company was organized in the state of Maryland on August 23, 2017. On September 15, 2017, Colony Capital, Inc., formerly Colony NorthStar, Inc. (&#8220;Colony Capital&#8221;), a publicly traded REIT listed on the New York Stock Exchange (&#8220;NYSE&#8221;) under the ticker symbol &#8220;CLNY,&#8221; made an initial capital contribution of </font><font style="font-family:inherit;font-size:10pt;">$1,000</font><font style="font-family:inherit;font-size:10pt;"> to the Company. On January 31, 2018, the Company completed the transactions contemplated by that certain Master Combination Agreement, dated as of August 25, 2017, as amended and restated on November 20, 2017 (the &#8220;Combination Agreement,&#8221; as further discussed below). The Company intends to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the &#8220;Code&#8221;), beginning with its taxable year ending </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;">. Effective </font><font style="font-family:inherit;font-size:10pt;">June&#160;25, 2018</font><font style="font-family:inherit;font-size:10pt;">, the Company changed its name from Colony NorthStar Credit Real Estate, Inc. to Colony Credit Real Estate, Inc. Also on </font><font style="font-family:inherit;font-size:10pt;">June&#160;25, 2018</font><font style="font-family:inherit;font-size:10pt;">, Colony NorthStar, Inc. changed its name to Colony Capital, Inc. The Company conducts all of its activities and holds substantially all of its assets and liabilities through its operating subsidiary, Credit RE Operating Company, LLC (the &#8220;Operating Partnership&#8221; or &#8220;OP&#8221;). At </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">, the Company owned </font><font style="font-family:inherit;font-size:10pt;">97.6%</font><font style="font-family:inherit;font-size:10pt;"> of the OP, as its sole managing member. The remaining </font><font style="font-family:inherit;font-size:10pt;">2.4%</font><font style="font-family:inherit;font-size:10pt;"> is owned by an affiliate of the Company as noncontrolling interests.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company is externally managed and has no employees. The Company is managed by CLNC Manager, LLC (the &#8220;Manager&#8221;), a Delaware limited liability company and a wholly-owned and indirect subsidiary of Colony Capital Operating Company, LLC (&#8220;CLNY OP&#8221;), a Delaware limited liability company and the operating company of Colony Capital. Colony Capital manages capital on behalf of its stockholders, as well as institutional and retail investors in private funds, non-traded and traded REITs and registered investment companies.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">The Combination</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Pursuant to the Combination Agreement, (i) CLNY OP contributed and conveyed to the Company a select portfolio of assets and liabilities (the &#8220;CLNY OP Contributed Portfolio&#8221;) of CLNY OP (the &#8220;CLNY OP Contribution&#8221;), (ii) NRF RED REIT Corp., a Maryland corporation and indirect subsidiary of CLNY OP (&#8220;RED REIT&#8221;) contributed and conveyed to the OP a select portfolio of assets and liabilities (the &#8220;RED REIT Contributed Portfolio&#8221; and, together with the CLNY OP Contributed Portfolio, the &#8220;CLNY Contributed Portfolio&#8221;) of RED REIT (the &#8220;RED REIT Contribution&#8221; and, together with the CLNY OP Contribution, the &#8220;CLNY Contributions&#8221;), (iii) NorthStar Real Estate Income Trust, Inc. (&#8220;NorthStar I&#8221;), a publicly registered non-traded REIT sponsored and managed by a subsidiary of Colony Capital, merged with and into the Company, with the Company surviving the merger (the &#8220;NorthStar I Merger&#8221;), (iv) NorthStar Real Estate Income II, Inc. (&#8220;NorthStar II&#8221;), a publicly registered non-traded REIT sponsored and managed by a subsidiary of Colony Capital, merged with and into the Company, with the Company surviving the merger (the &#8220;NorthStar II Merger&#8221; and, together with the NorthStar I Merger, the &#8220;Mergers&#8221;), and (v) immediately following the Mergers, the Company contributed and conveyed to the OP the CLNY OP Contributed Portfolio and the equity interests of each of NorthStar Real Estate Income Trust Operating Partnership, LP, a Delaware limited partnership and the operating partnership of NorthStar I, and NorthStar Real Estate Income Operating Partnership II, LP, a Delaware limited partnership and the operating partnership of NorthStar II, then-owned by the Company in exchange for units of membership interest in the OP (the &#8220;Company Contribution&#8221; and, collectively with the Mergers and the CLNY Contributions, the &#8220;Combination&#8221;). </font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On </font><font style="font-family:inherit;font-size:10pt;">January&#160;18, 2018</font><font style="font-family:inherit;font-size:10pt;">, the Combination was approved by the stockholders of NorthStar I and NorthStar II. The Combination closed on </font><font style="font-family:inherit;font-size:10pt;">January&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;"> (the &#8220;Closing Date&#8221;) and the Company&#8217;s Class A common stock, par value </font><font style="font-family:inherit;font-size:10pt;">$0.01</font><font style="font-family:inherit;font-size:10pt;"> per share (the &#8220;Class A common stock&#8221;), began trading on the NYSE on </font><font style="font-family:inherit;font-size:10pt;">February&#160;1, 2018</font><font style="font-family:inherit;font-size:10pt;"> under the symbol &#8220;CLNC.&#8221;</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Combination is accounted for under the acquisition method for business combinations pursuant to Accounting Standards Codification (&#8220;ASC&#8221;) Topic 805, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Business Combinations</font><font style="font-family:inherit;font-size:10pt;">, with the Company as the accounting acquirer. </font></div><div style="line-height:120%;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Details of the Combination are described more fully in Note 3, &#8220;Business Combinations&#8221; and the accounting treatment thereof in Note 2, &#8220;Summary of Significant Accounting Policies.&#8221;</font></div></div>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Reclassifications</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior period amounts have been reclassified in the consolidated financial statements to conform to current period presentation.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates and assumptions.</font></div></div>

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