2024 Q1 Form 10-K Financial Statement

#000193485024000018 Filed on February 29, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $1.569B $1.497B $4.500B
YoY Change 80.55% 140.29% 92.31%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $66.00M $65.00M $232.0M
YoY Change 24.53% 38.3% 47.77%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $123.0M $110.0M $412.0M
YoY Change 36.67% -600.0% 25.23%
% of Gross Profit
Operating Expenses $1.397B $1.846B $4.343B
YoY Change 40.97% 132.79% 153.53%
Operating Profit
YoY Change
Interest Expense $30.00M -$26.00M $97.00M
YoY Change 36.36% 333.33% 234.48%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $142.0M -$375.0M -$35.00M
YoY Change -169.95% 113.07% -105.85%
Income Tax $26.00M -$76.00M $23.00M
% Of Pretax Income 18.31%
Net Earnings $115.0M -$299.0M -$58.00M
YoY Change -158.97% 199.0% -112.06%
Net Earnings / Revenue 7.33% -19.97% -1.29%
Basic Earnings Per Share $0.90 -$0.47
Diluted Earnings Per Share $0.88 -$2.41 -$0.47
COMMON SHARES
Basic Shares Outstanding 126.3M shares 125.5M shares 124.0M shares
Diluted Shares Outstanding 130.0M shares 124.0M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $2.372B $1.563B $1.563B
Short-Term Investments
Other Short-Term Assets $980.0M $931.0M $931.0M
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $980.0M $1.452B $1.452B
YoY Change -88.76% -82.09% -82.09%
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill $2.017B $1.749B
YoY Change 15.32% -0.4%
Intangibles $4.207B
YoY Change 15.2%
Long-Term Investments $3.367B $3.071B $48.96B
YoY Change 26.15% 26.53% 27.84%
Other Assets $608.0M $1.840B $1.840B
YoY Change
Total Long-Term Assets $73.45B $68.75B $68.75B
YoY Change 44.9% 46.37% 46.37%
TOTAL ASSETS
Total Short-Term Assets $980.0M $1.452B $1.452B
Total Long-Term Assets $73.45B $68.75B $68.75B
Total Assets $74.43B $70.20B $70.20B
YoY Change 25.28% 27.47% 27.47%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $176.0M $2.011B $2.011B
YoY Change -90.1% 85.69% 85.69%
Accrued Expenses $1.760B $1.714B $1.714B
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $2.237B $2.011B $2.011B
YoY Change 25.89% 56.38% 56.38%
LONG-TERM LIABILITIES
Long-Term Debt $1.748B $1.754B $1.754B
YoY Change 11.2% 57.45% 57.45%
Other Long-Term Liabilities $403.0M $403.0M
YoY Change
Total Long-Term Liabilities $1.748B $2.157B $2.157B
YoY Change 11.2% 93.63% 93.63%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.237B $2.011B $2.011B
Total Long-Term Liabilities $1.748B $2.157B $2.157B
Total Liabilities $70.75B $67.10B $67.10B
YoY Change 24.28% 25.99% 25.99%
SHAREHOLDERS EQUITY
Retained Earnings $2.011B $1.926B
YoY Change 7.77% 32.19%
Common Stock $3.442B $3.185B
YoY Change 8.68% 0.73%
Preferred Stock
YoY Change
Treasury Stock (at cost) $24.00M $18.00M
YoY Change
Treasury Stock Shares
Shareholders Equity $3.546B $3.103B $3.103B
YoY Change
Total Liabilities & Shareholders Equity $74.43B $70.20B $70.20B
YoY Change 25.28% 27.47% 27.47%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $115.0M -$299.0M -$58.00M
YoY Change -158.97% 199.0% -112.06%
Depreciation, Depletion And Amortization $123.0M $110.0M $412.0M
YoY Change 36.67% -600.0% 25.23%
Cash From Operating Activities $1.534B $2.222B $5.834B
YoY Change 6.75% 73.05% 83.98%
INVESTING ACTIVITIES
Capital Expenditures $7.000M $6.000M $27.00M
YoY Change 16.67% 0.0% -15.63%
Acquisitions
YoY Change
Other Investing Activities -$1.377B -$3.258B -$8.891B
YoY Change -42.67% 3.13% -4.79%
Cash From Investing Activities -$1.384B -$3.264B -$8.918B
YoY Change -42.52% 3.13% -4.82%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $18.00M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $659.0M 863.0M $3.687B
YoY Change -58.68% -40.77% -34.46%
NET CHANGE
Cash From Operating Activities $1.534B 2.222B $5.834B
Cash From Investing Activities -$1.384B -3.264B -$8.918B
Cash From Financing Activities $659.0M 863.0M $3.687B
Net Change In Cash $809.0M -179.0M $603.0M
YoY Change 29.65% -57.78% -205.24%
FREE CASH FLOW
Cash From Operating Activities $1.534B $2.222B $5.834B
Capital Expenditures $7.000M $6.000M $27.00M
Free Cash Flow $1.527B $2.216B $5.807B
YoY Change 6.71% 73.4% 85.0%

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<div style="margin-bottom:9pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Management Estimates</span></div><div style="margin-bottom:5pt;text-align:justify;text-indent:18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of these Consolidated Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</span></div><div style="margin-bottom:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Periodically, and at least annually, typically in the third quarter, we review the assumptions associated with reserves for policy benefits and product guarantees. During the third quarter of 2023 and for the year ended December 31, 2023, based on increases in interest rates and pricing changes, we updated certain FIA assumptions to calculate the fair value of the embedded derivative component within the contractholder funds and also aligned reserves to actual policyholder behavior. These changes resulted in an increase in total benefits and other changes in policy reserves of approximately $73 million.</span></div><div style="margin-bottom:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">During the fourth quarter of 2022, based on increases in interest rates and pricing changes during 2022, we updated certain FIA assumptions used </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">to</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> calculate the fair value of the embedded derivative component within contractholder funds and the fair value of market risk benefits. These changes, taken together, resulted in an increase in contractholder funds and market risk benefits of </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">$99 million</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. </span></div><div style="margin-bottom:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">During the third quarter of 2021, we implemented a new actuarial valuation system. As a result, our third quarter 2021 assumption updates include model refinements and assumption updates resulting from the </span></div><div style="margin-bottom:5pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">implementation. The system implementation and assumption review process that occurred in the third quarter of 2021, included refinements in the calculation of the fair value of the embedded derivative component of our FIAs within contractholder funds and updates to the surrender rates, GMWB utilization and earned rate assumptions to reflect our current and expected future experience. These changes, taken together, resulted in a decrease in contractholder funds and future policy reserves of $435 million. The majority of the changes represent one-time adjustments in the third quarter of 2021 related to the cumulative impact of the system implementation and are not expected to re-occur in the future.</span></div>
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