2023 Q1 Form 10-K Financial Statement

#000186663323000019 Filed on March 31, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $91.45M $90.23M $362.4M
YoY Change -74.41% 603936.67%
Cost Of Revenue $17.51M $15.84M $61.95M
YoY Change 15.92% -72.69% 6.81%
Gross Profit $73.95M $74.39M $300.5M
YoY Change -2.47% -74.75% 1.97%
Gross Profit Margin 80.86% 82.45% 82.91%
Selling, General & Admin $38.05M $33.13M $138.5M
YoY Change 9.84% -70.38% 23.83%
% of Gross Profit 51.45% 44.54% 46.11%
Research & Development $1.904M $1.705M $10.02M
YoY Change -18.49% -77.72% 30.92%
% of Gross Profit 2.57% 2.29% 3.33%
Depreciation & Amortization $4.347M $3.943M $15.30M
YoY Change 17.3% 28.56% -70.47%
% of Gross Profit 5.88% 5.3% 5.09%
Operating Expenses $39.95M $34.84M $148.6M
YoY Change 8.05% -70.85% 24.28%
Operating Profit $34.00M $39.55M $151.9M
YoY Change -12.49% -77.42% -13.26%
Interest Expense $12.57M -$11.85M -$51.42M
YoY Change -5.33% -16.62% -460.31%
% of Operating Profit 36.96% -29.96% -33.85%
Other Income/Expense, Net -$844.0K -$6.324M -$1.582M
YoY Change -585.06% -4052.5% -1088.75%
Pretax Income $20.59M $21.38M $98.91M
YoY Change -20.05% -86.73% -38.6%
Income Tax $5.129M $5.178M $26.50M
% Of Pretax Income 24.91% 24.22% 26.79%
Net Earnings $15.46M $16.20M $72.41M
YoY Change -17.36% -85.14% -33.57%
Net Earnings / Revenue 16.9% 17.95% 19.98%
Basic Earnings Per Share $0.78 $3.65
Diluted Earnings Per Share $0.78 $0.81 $3.63
COMMON SHARES
Basic Shares Outstanding 19.91M shares 19.83M shares 19.86M shares
Diluted Shares Outstanding 19.88M shares 19.95M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $111.3M $94.16M $94.16M
YoY Change 18.54% 41.01% 41.01%
Cash & Equivalents $111.3M $94.16M $94.16M
Short-Term Investments
Other Short-Term Assets $14.61M $14.34M $14.34M
YoY Change 170.65% 208.28% 208.28%
Inventory
Prepaid Expenses
Receivables $29.64M $28.03M $28.03M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $155.5M $136.5M $136.5M
YoY Change 21.43% 41.84% 41.84%
LONG-TERM ASSETS
Property, Plant & Equipment $61.42M $62.83M $62.83M
YoY Change 60.14% 85.63% 52.95%
Goodwill $347.8M $346.6M
YoY Change 1.08% 2.17%
Intangibles $48.10M $49.16M
YoY Change -9.26% 12.88%
Long-Term Investments
YoY Change
Other Assets $6.392M $40.85M $40.85M
YoY Change 389.81% 4579.38% -4.36%
Total Long-Term Assets $507.8M $500.2M $500.2M
YoY Change 4.2% 7.21% 7.21%
TOTAL ASSETS
Total Short-Term Assets $155.5M $136.5M $136.5M
Total Long-Term Assets $507.8M $500.2M $500.2M
Total Assets $663.3M $636.7M $636.7M
YoY Change 7.79% 13.13% 13.13%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $54.31M $41.25M $41.25M
YoY Change -4.08% 2.59% 2.59%
Accrued Expenses $2.818M $2.793M $2.793M
YoY Change -0.11% 15.37% 15.37%
Deferred Revenue $25.34M $24.58M
YoY Change -12.03% 0.86%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change
Total Short-Term Liabilities $85.45M $71.03M $71.03M
YoY Change -22.39% -8.9% -8.9%
LONG-TERM LIABILITIES
Long-Term Debt $794.3M $793.9M $793.9M
YoY Change 0.23% 0.23% 0.23%
Other Long-Term Liabilities $321.0K $23.25M $23.25M
YoY Change -71.11% 6356.94% 19.53%
Total Long-Term Liabilities $794.7M $817.1M $817.1M
YoY Change 0.13% 3.12% 0.69%
TOTAL LIABILITIES
Total Short-Term Liabilities $85.45M $71.03M $71.03M
Total Long-Term Liabilities $794.7M $817.1M $817.1M
Total Liabilities $904.0M $891.5M $891.5M
YoY Change -2.72% -0.44% -0.44%
SHAREHOLDERS EQUITY
Retained Earnings -$235.0M -$250.4M
YoY Change -22.22% -21.47%
Common Stock $201.0K $201.0K
YoY Change 0.5% 0.5%
Preferred Stock
YoY Change
Treasury Stock (at cost) $16.79M $7.596M
YoY Change
Treasury Stock Shares 459.3K shares 189.1K shares
Shareholders Equity -$240.7M -$254.8M -$254.8M
YoY Change
Total Liabilities & Shareholders Equity $663.3M $636.7M $636.7M
YoY Change 7.79% 13.13% 13.13%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $15.46M $16.20M $72.41M
YoY Change -17.36% -85.14% -33.57%
Depreciation, Depletion And Amortization $4.347M $3.943M $15.30M
YoY Change 17.3% 28.56% -70.47%
Cash From Operating Activities $37.97M -$5.949M $83.32M
YoY Change -23.92% -115.96% -64.34%
INVESTING ACTIVITIES
Capital Expenditures $8.548M $8.985M $31.05M
YoY Change 23.62% -290.44% -5.92%
Acquisitions $0.00 $12.23M
YoY Change -100.0% -78.48%
Other Investing Activities -$4.000M $0.00 -$12.23M
YoY Change -68.88% 53.6%
Cash From Investing Activities -$12.55M -$8.985M -$43.28M
YoY Change -39.59% 90.44% 1.89%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$6.312M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$9.646M -1.728M -10.62M
YoY Change 586.55% -99.34% -95.71%
NET CHANGE
Cash From Operating Activities $37.97M -5.949M 83.32M
Cash From Investing Activities -$12.55M -8.985M -43.28M
Cash From Financing Activities -$9.646M -1.728M -10.62M
Net Change In Cash $17.10M -16.66M 29.43M
YoY Change -36.86% -92.74% -147.91%
FREE CASH FLOW
Cash From Operating Activities $37.97M -$5.949M $83.32M
Capital Expenditures $8.548M $8.985M $31.05M
Free Cash Flow $29.42M -$14.93M $52.28M
YoY Change -31.56% -135.55% -73.95%

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CY2022 us-gaap Nature Of Operations
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The Company<div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Consensus Cloud Solutions, Inc., together with its subsidiaries (“Consensus Cloud Solutions”, “Consensus”, the “Company”, “our”, “us” or “we”), is a provider of secure information delivery services with a scalable Software-as-a-Service (“SaaS”) platform. Consensus serves approximately 1 million customers of all sizes, from enterprises to individuals, across approximately 50 countries and multiple industry verticals including healthcare, government, financial services, law and education. Beginning as an online fax company over two decades ago, Consensus has evolved into a global provider of enterprise secure communication solutions. Our communication and digital signature solutions enable our customers to securely and cooperatively access, exchange and use information across organizational, regional and national boundaries. </span></div><div style="text-align:justify;text-indent:36pt"><span><br/></span></div><div style="margin-bottom:12pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Consensus Cloud Solutions, Inc. Spin-Off</span></div><div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On September 21, 2021, J2 Global, Inc., known since October 7, 2021 as Ziff Davis, Inc. (“Ziff Davis” or the “Former Parent”) announced that its Board of Directors approved its separation of the cloud fax business (the “Separation” or the “Spin-Off”), into an independent publicly traded company, Consensus Cloud Solutions, Inc. On October 7, 2021, the Separation was completed and the Former Parent transferred certain assets and liabilities associated with its Cloud Fax business to Consensus, including the equity interests in J2 Cloud Services, LLC (“J2 Cloud Services”), in exchange for approximately $259.1 million in cash, an asset related to $500.0 million in aggregate principal amount of the 6.5% Senior Notes due 2028, and the return of the assets and liabilities related to the non-fax business back to Ziff Davis. On October 8, 2021, Consensus began trading on the Nasdaq Stock Market LLC (“Nasdaq”) under the stock symbol “CCSI”. Ziff Davis retained a 19.9% interest in Consensus following the Separation. Subsequently Ziff Davis has sold, or otherwise disposed of, a portion of its Consensus shares, reducing its beneficial ownership in the Company to under 10% as of December 31, 2022 (see Note 21 - Related Party Transactions).</span></div>
CY2022Q4 us-gaap Number Of Countries In Which Entity Operates
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CY2022 us-gaap Use Of Estimates
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Use of EstimatesThe preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, including judgments about the reported amounts of net revenue and expenses during the reporting period. The Company believes that its most significant estimates are those related to revenue recognition, share-based compensation expense, impairment or disposal of long-lived and intangible assets, fair value of assets acquired and liabilities assumed in connection with business combinations, income taxes, contingencies and allowances for doubtful accounts. On an ongoing basis, management evaluates its estimates based on historical experience and on various other factors that the Company believes to be reasonable under the circumstances. Actual results could materially differ from those estimates due to risks and uncertainties, including uncertainty in the current economic environment due to the novel coronavirus pandemic (“COVID-19”).
CY2021 us-gaap Operating Lease Payments
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CY2022 us-gaap Concentration Risk Credit Risk
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Concentration of Credit RiskAll of the Company’s cash and cash equivalents are invested at major financial institutions primarily within the United States, the United Kingdom and Canada. These institutions are required to invest the Company’s cash in accordance with the Company’s investment policy with the principal objectives being preservation of capital, fulfillment of liquidity needs and above market returns commensurate with preservation of capital.
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CY2022 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
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CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
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CY2020 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
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CY2022 us-gaap Advertising Expense
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55400000 usd
CY2021 us-gaap Advertising Expense
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45700000 usd
CY2020 us-gaap Advertising Expense
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CY2022 us-gaap Prior Period Reclassification Adjustment Description
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<div style="margin-bottom:12pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">(w) Adjustments related to the Spin-off</span></div><div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">During 2022, the Company identified certain improper classifications related to executive bonuses, other corporate charges incurred prior to the Separation that were incorrectly treated as equity contributions at the time of the Spin-off rather than liabilities, and certain intangible assets post Separation that were incorrectly included in the opening balance at the time of the Spin-off which belonged to the Former Parent. The Company recorded a reclassification of $0.6 million from equity to accrued expenses to correct the prior period classification and $0.8 million from intangible assets to equity to correct the opening balance on the balance sheet for the year ended December 31, 2022. The Company determined that the impact of these reclassifications were not material to the current or prior period financial statements.</span></div><div style="text-align:justify;text-indent:36pt"><span><br/></span></div><div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Additionally, on September 27, 2022, the Company reached a settlement agreement with the Former Parent and agreed to pay $2.6 million during the third quarter of 2022 to close out transaction fees related to the Spin-Off. This payment to the Former Parent as part of the Spin-off and a related adjustment of $0.3 million was recorded as an adjustment to equity during year ended December 31, 2022.</span></div>
CY2022 ccs Stockholders Equity Reclassifications Related To Bonuses And Other Corporate Accruals Prior To The Separation Correction
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CY2022 ccs Stockholders Equity Spin Off Adjustment
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CY2021 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2020 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2021Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2021Q4 us-gaap Property Plant And Equipment Net
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CY2020 us-gaap Operating Lease Impairment Loss
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CY2022Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
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CY2022Q4 us-gaap Finite Lived Intangible Assets Amortization Expense After Year Five
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CY2022Q4 us-gaap Deferred Finance Costs Net
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CY2022Q4 us-gaap Operating Lease Right Of Use Asset
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CY2021Q4 us-gaap Operating Lease Right Of Use Asset
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CY2022Q4 us-gaap Finance Lease Right Of Use Asset
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CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
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CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
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3.65
CY2021 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
6.07
CY2020 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
6.15
CY2022 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
3.64
CY2021 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
6.04
CY2020 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
6.15
CY2022 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
509280 shares
CY2021 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
191076 shares
CY2022 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1 segment
CY2022 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
362422000 usd
CY2021 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
352664000 usd
CY2020 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
331168000 usd
CY2022Q4 us-gaap Noncurrent Assets
NoncurrentAssets
62833000 usd
CY2021Q4 us-gaap Noncurrent Assets
NoncurrentAssets
41082000 usd
CY2022 us-gaap Interest Paid Net
InterestPaidNet
51900000 usd
CY2021 us-gaap Interest Paid Net
InterestPaidNet
0 usd
CY2020 us-gaap Interest Paid Net
InterestPaidNet
54400000 usd
CY2022Q4 us-gaap Accumulated Capitalized Interest Costs
AccumulatedCapitalizedInterestCosts
1400000 usd
CY2021Q4 us-gaap Accumulated Capitalized Interest Costs
AccumulatedCapitalizedInterestCosts
0 usd
CY2020Q4 us-gaap Accumulated Capitalized Interest Costs
AccumulatedCapitalizedInterestCosts
0 usd
CY2022 us-gaap Employee Service Share Based Compensation Allocation Of Recognized Period Costs Capitalized Amount
EmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsCapitalizedAmount
1500000 usd
CY2020 us-gaap Employee Service Share Based Compensation Allocation Of Recognized Period Costs Capitalized Amount
EmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsCapitalizedAmount
0 usd
CY2021 us-gaap Employee Service Share Based Compensation Allocation Of Recognized Period Costs Capitalized Amount
EmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsCapitalizedAmount
0 usd
CY2022 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
36500000 usd
CY2021 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
3100000 usd
CY2020 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
1700000 usd
CY2021 ccs Adjustments To Additional Paid In Capital Transfer Of Business Assets
AdjustmentsToAdditionalPaidInCapitalTransferOfBusinessAssets
837300000 usd
CY2020 us-gaap Reclassification From Aoci Current Period Net Of Tax Attributable To Parent
ReclassificationFromAociCurrentPeriodNetOfTaxAttributableToParent
0 usd
CY2022 us-gaap Reclassification From Aoci Current Period Net Of Tax Attributable To Parent
ReclassificationFromAociCurrentPeriodNetOfTaxAttributableToParent
0 usd
CY2021 us-gaap Reclassification From Aoci Current Period Net Of Tax Attributable To Parent
ReclassificationFromAociCurrentPeriodNetOfTaxAttributableToParent
0 usd
CY2022 dei Auditor Firm
AuditorFirmId
243

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