2020 Q1 Form 10-Q Financial Statement

#000176404620000031 Filed on May 04, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2019 Q1
Revenue $240.6M $234.0M
YoY Change 2.81%
Cost Of Revenue $82.70M $89.30M
YoY Change -7.39%
Gross Profit $157.9M $144.8M
YoY Change 9.05%
Gross Profit Margin 65.63% 61.87%
Selling, General & Admin $133.1M $92.30M
YoY Change 44.16%
% of Gross Profit 84.27% 63.74%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $2.329M $2.051M
YoY Change 13.55%
% of Gross Profit 1.47% 1.42%
Operating Expenses $268.9M $259.9M
YoY Change 3.45%
Operating Profit -$28.31M -$25.92M
YoY Change 9.21%
Interest Expense $30.94M $33.10M
YoY Change -6.53%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$114.9M -$59.02M
YoY Change 94.65%
Income Tax $14.75M $240.0K
% Of Pretax Income
Net Earnings -$129.6M -$59.26M
YoY Change 118.75%
Net Earnings / Revenue -53.88% -25.32%
Basic Earnings Per Share -$0.38 -$0.27
Diluted Earnings Per Share -$0.38 -$0.27
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2020 Q1 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $308.0M $3.000M
YoY Change 10166.67%
Cash & Equivalents $308.0M $28.05M
Short-Term Investments
Other Short-Term Assets $22.10M $0.00
YoY Change
Inventory
Prepaid Expenses $52.10M
Receivables $343.2M $343.1M
Other Receivables $0.00
Total Short-Term Assets $728.2M $3.000M
YoY Change 24174.93%
LONG-TERM ASSETS
Property, Plant & Equipment $22.95M
YoY Change
Goodwill $1.823B
YoY Change
Intangibles $2.282B
YoY Change
Long-Term Investments $698.0M
YoY Change
Other Assets $22.82M
YoY Change
Total Long-Term Assets $4.271B $699.0M
YoY Change 510.99%
TOTAL ASSETS
Total Short-Term Assets $728.2M $3.000M
Total Long-Term Assets $4.271B $699.0M
Total Assets $4.999B $702.0M
YoY Change 612.12%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $28.58M $6.000M
YoY Change 376.38%
Accrued Expenses $265.0M
YoY Change
Deferred Revenue $472.1M $461.9M
YoY Change 2.2%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $12.60M
YoY Change
Total Short-Term Liabilities $778.3M $7.000M
YoY Change 11018.86%
LONG-TERM LIABILITIES
Long-Term Debt $1.915B $0.00
YoY Change
Other Long-Term Liabilities $18.55M $24.00M
YoY Change -22.7%
Total Long-Term Liabilities $1.934B $24.00M
YoY Change 7958.35%
TOTAL LIABILITIES
Total Short-Term Liabilities $778.3M $7.000M
Total Long-Term Liabilities $1.934B $24.00M
Total Liabilities $2.906B $31.00M
YoY Change 9274.08%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock $3.033B
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.926B $990.8M
YoY Change
Total Liabilities & Shareholders Equity $4.999B $702.0M
YoY Change 612.12%

Cashflow Statement

Concept 2020 Q1 2019 Q1
OPERATING ACTIVITIES
Net Income -$129.6M -$59.26M
YoY Change 118.75%
Depreciation, Depletion And Amortization $2.329M $2.051M
YoY Change 13.55%
Cash From Operating Activities $46.11M $42.45M
YoY Change 8.6%
INVESTING ACTIVITIES
Capital Expenditures $19.40M -$6.000M
YoY Change -423.25%
Acquisitions $885.3M $0.00
YoY Change
Other Investing Activities -$881.6M $0.00
YoY Change
Cash From Investing Activities -$901.0M -$5.957M
YoY Change 15024.51%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $540.6M $0.00
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $1.092B -$33.84M
YoY Change -3326.17%
NET CHANGE
Cash From Operating Activities $46.11M $42.45M
Cash From Investing Activities -$901.0M -$5.957M
Cash From Financing Activities $1.092B -$33.84M
Net Change In Cash $234.7M $2.470M
YoY Change 9403.32%
FREE CASH FLOW
Cash From Operating Activities $46.11M $42.45M
Capital Expenditures $19.40M -$6.000M
Free Cash Flow $26.71M $48.45M
YoY Change -44.87%

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CY2020Q1 us-gaap Nature Of Operations
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Background and Nature of Operations<div style="line-height:120%;padding-bottom:8px;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Clarivate Analytics Plc (“Clarivate,” “us,” “we,” “our,” or the “Company”), a public limited company organized under the laws of Jersey, Channel Islands, was incorporated as a Jersey limited company on January 7, 2019. Pursuant to the definitive agreement entered into to effect a merger between Camelot Holdings (Jersey) Limited ("Jersey") and Churchill Capital Corp, a Delaware corporation, ("Churchill") (the “2019 Transaction”), the Company was formed for the purposes of completing the 2019 Transaction and related transitions and carrying on the business of Jersey, and its subsidiaries.</span></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The Company is a provider of proprietary and comprehensive content, analytics, professional services and workflow solutions that enables users across government and academic institutions, life science companies and research and development (“R&amp;D”) intensive corporations to discover, protect and commercialize their innovations. Our Science Product Group consists of our Web of Science and Life Science Product Lines. Both Product Lines provide curated, high-value, structured information that is delivered and embedded into the workflows of our customers, which include research intensive corporations, life science organizations and universities world-wide. Our Intellectual Property ("IP") Product Group consists of our Derwent, CompuMark and MarkMonitor Product Lines. These Product Lines help manage customer’s end-to-end portfolios of intellectual property from patents to trademarks to corporate website domains.</span></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">In January 2019, we entered into an Agreement and Plan of Merger (as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated February 26, 2019, and Amendment No. 2 to the Agreement and Plan of Merger, dated March 29, 2019, collectively, the “Merger Agreement”) by and among Churchill, Jersey, CCC Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of Clarivate (“Delaware Merger Sub”), Camelot Merger Sub (Jersey) Limited, a private limited company organized under the laws of Jersey, Channel Islands and wholly owned subsidiary of Clarivate (“Jersey Merger Sub”), and the Company, which, among other things, provided for (i) Jersey Merger Sub to be merged with and into Jersey with Jersey being the surviving company in the merger (the “Jersey Merger”) and (ii) Delaware Merger Sub to be merged with and into Churchill with Churchill being the surviving corporation in the merger (the “Delaware Merger”), and together with the Jersey Merger, the “Mergers”.</span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">On May 13, 2019, the 2019 Transaction was consummated, and Clarivate became the sole managing member of Jersey, operating and controlling all of the business and affairs of Jersey, through Jersey and its subsidiaries. Following the consummation of the 2019 Transaction on May 13, 2019, the Company’s ordinary shares and warrants began trading on the New York Stock Exchange. </span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The 2019 Transaction was accounted for as a reverse recapitalization in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Under this method of accounting Churchill was treated as the "acquired" company for financial reporting purposes. This determination was primarily based on post 2019 Transaction relative voting rights, composition of the governing board, size of the two entities pre-merger, and intent of the 2019 Transaction. Accordingly, for accounting purposes, the 2019 Transaction was treated as the equivalent of the Company issuing stock for the net assets of Churchill. The net assets of Churchill, were stated at historical cost, with no goodwill or other intangible assets resulting from the 2019 Transaction. Reported amounts from operations included herein prior to the 2019 Transaction are those of Jersey.</span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;padding-bottom:12px;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">In February 2020, the Company consummated a public offering of </span><span style="font-family:inherit;font-size:10pt;"><span>27,600,000</span></span><span style="font-family:inherit;font-size:10pt;"> ordinary shares at $</span><span style="font-family:inherit;font-size:10pt;"><span>20.25</span></span><span style="font-family:inherit;font-size:10pt;"> per share. After this offering, Onex Corporation and Baring Private Equity Asia Limited ("BPEA") continue to beneficially own approximately </span><span style="font-family:inherit;font-size:10pt;"><span>38.3%</span></span><span style="font-family:inherit;font-size:10pt;"> of the Company’s ordinary shares, down from approximately </span><span style="font-family:inherit;font-size:10pt;"><span>70.8%</span></span><span style="font-family:inherit;font-size:10pt;"> of the ordinary shares beneficially owned by Onex and BPEA immediately after the closing of our merger with Churchill Capital Corp in 2019.</span></div><div style="line-height:120%;padding-bottom:12px;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Risks and Uncertainties</span></div><div style="line-height:120%;padding-bottom:12px;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">In March 2020, the World Health Organization characterized COVID-19 as a pandemic. The rapid spread of COVID-19 and the continuously evolving responses to combat it have had an increasingly negative impact on the global economy. In view of the rapidly changing business environment, market volatility and heightened degree of uncertainty resulting from COVID-19, we are currently unable to fully determine its future impact on our business. </span></div><div style="line-height:120%;padding-bottom:12px;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">However, we continue to assess the potential effect on our financial position, results of operations, and cash flows. If the global pandemic continues to evolve into a prolonged crisis, the effects could have an adverse impact on the Company's results of operations, financial condition and cash flows.</span></div>
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CY2019Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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-59020000 USD
CY2020Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
38149453 shares
CY2019Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
24323190 shares
CY2019 us-gaap Stockholders Equity Note Stock Split Conversion Ratio1
StockholdersEquityNoteStockSplitConversionRatio1
132.13667
CY2019Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
217526426 shares
CY2020Q1 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.22
CY2019Q1 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.27
CY2020Q1 us-gaap Related Party Transaction Expenses From Transactions With Related Party
RelatedPartyTransactionExpensesFromTransactionsWithRelatedParty
0 USD
CY2019Q1 us-gaap Related Party Transaction Expenses From Transactions With Related Party
RelatedPartyTransactionExpensesFromTransactionsWithRelatedParty
231000 USD
CY2019Q4 us-gaap Restructuring Reserve
RestructuringReserve
9506000 USD
CY2020Q1 us-gaap Restructuring Charges
RestructuringCharges
7754000 USD
CY2020Q1 us-gaap Payments For Restructuring
PaymentsForRestructuring
6647000 USD
CY2020Q1 us-gaap Restructuring Reserve
RestructuringReserve
10613000 USD
CY2020Q1 us-gaap Severance Costs1
SeveranceCosts1
6574000 USD
CY2020Q1 us-gaap Business Exit Costs1
BusinessExitCosts1
508000 USD
CY2020Q1 ccc Restructuring Legal Fees
RestructuringLegalFees
666000 USD

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