2014 Q3 Form 10-Q Financial Statement

#000105628814000027 Filed on October 24, 2014

View on sec.gov

Income Statement

Concept 2014 Q3 2013 Q3
Revenue $216.9M $211.9M
YoY Change 2.38% -11.16%
Cost Of Revenue $7.900M $9.700M
YoY Change -18.56% -222.78%
Gross Profit $209.0M $202.2M
YoY Change 3.36% -17.9%
Gross Profit Margin 96.35% 95.44%
Selling, General & Admin $141.8M $136.9M
YoY Change 3.58% -7.75%
% of Gross Profit 67.85% 67.71%
Research & Development $6.392M $6.464M
YoY Change -1.11% -1.04%
% of Gross Profit 3.06% 3.2%
Depreciation & Amortization $2.600M $2.700M
YoY Change -3.7% 3.85%
% of Gross Profit 1.24% 1.34%
Operating Expenses $6.392M $6.464M
YoY Change -1.11% -1.04%
Operating Profit $60.83M $57.76M
YoY Change 5.32% -35.85%
Interest Expense -$1.400M $3.900M
YoY Change -135.9% 1850.0%
% of Operating Profit -2.3% 6.75%
Other Income/Expense, Net -$1.372M $788.0K
YoY Change -274.11% 451.05%
Pretax Income $59.46M $58.55M
YoY Change 1.55% -35.08%
Income Tax $22.20M $20.92M
% Of Pretax Income 37.33% 35.73%
Net Earnings $37.56M $37.70M
YoY Change -0.38% -32.4%
Net Earnings / Revenue 17.32% 17.8%
Basic Earnings Per Share
Diluted Earnings Per Share $373.4K $374.4K
COMMON SHARES
Basic Shares Outstanding 100.7M shares 100.7M shares
Diluted Shares Outstanding 100.7M shares 100.7M shares

Balance Sheet

Concept 2014 Q3 2013 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $352.3M $350.5M
YoY Change 0.51% 56.26%
Cash & Equivalents $90.47M $78.26M
Short-Term Investments $261.8M $272.3M
Other Short-Term Assets $5.450M $5.190M
YoY Change 5.01% 207.28%
Inventory
Prepaid Expenses $8.827M $12.15M
Receivables $28.64M $27.02M
Other Receivables $0.00 $0.00
Total Short-Term Assets $395.2M $394.9M
YoY Change 0.08% -4.63%
LONG-TERM ASSETS
Property, Plant & Equipment $36.63M $41.00M
YoY Change -10.65% 4.92%
Goodwill $658.8M $649.0M
YoY Change 1.51% 0.55%
Intangibles
YoY Change
Long-Term Investments $600.0K
YoY Change -91.3%
Other Assets $25.50M $21.03M
YoY Change 21.23% -20.88%
Total Long-Term Assets $796.4M $788.2M
YoY Change 1.04% -0.34%
TOTAL ASSETS
Total Short-Term Assets $395.2M $394.9M
Total Long-Term Assets $796.4M $788.2M
Total Assets $1.192B $1.183B
YoY Change 0.72% -1.82%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $37.70M $40.70M
YoY Change -7.37% -8.33%
Accrued Expenses $58.50M $54.00M
YoY Change 8.33% -3.05%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $25.50M $60.20M
YoY Change -57.64% 41.65%
Total Short-Term Liabilities $137.6M $176.2M
YoY Change -21.93% 5.99%
LONG-TERM LIABILITIES
Long-Term Debt $223.1M $226.7M
YoY Change -1.59% -20.98%
Other Long-Term Liabilities $19.98M $22.78M
YoY Change -12.32% -32.35%
Total Long-Term Liabilities $380.0M $366.5M
YoY Change 3.68% -11.73%
TOTAL LIABILITIES
Total Short-Term Liabilities $137.6M $176.2M
Total Long-Term Liabilities $380.0M $366.5M
Total Liabilities $517.6M $542.7M
YoY Change -4.64% -6.67%
SHAREHOLDERS EQUITY
Retained Earnings $1.040B $1.018B
YoY Change 2.21% -9.6%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $758.1M $755.9M
YoY Change 0.3% -1.85%
Treasury Stock Shares 24.86M shares 24.92M shares
Shareholders Equity $595.1M $550.2M
YoY Change
Total Liabilities & Shareholders Equity $1.192B $1.183B
YoY Change 0.72% -1.82%

Cashflow Statement

Concept 2014 Q3 2013 Q3
OPERATING ACTIVITIES
Net Income $37.56M $37.70M
YoY Change -0.38% -32.4%
Depreciation, Depletion And Amortization $2.600M $2.700M
YoY Change -3.7% 3.85%
Cash From Operating Activities $46.50M $54.70M
YoY Change -14.99% -65.07%
INVESTING ACTIVITIES
Capital Expenditures -$1.900M -$2.800M
YoY Change -32.14% 0.0%
Acquisitions
YoY Change
Other Investing Activities $14.60M -$33.30M
YoY Change -143.84% 113.46%
Cash From Investing Activities $12.60M -$36.10M
YoY Change -134.9% 95.14%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -29.70M -27.70M
YoY Change 7.22% -30.58%
NET CHANGE
Cash From Operating Activities 46.50M 54.70M
Cash From Investing Activities 12.60M -36.10M
Cash From Financing Activities -29.70M -27.70M
Net Change In Cash 29.40M -9.100M
YoY Change -423.08% -109.27%
FREE CASH FLOW
Cash From Operating Activities $46.50M $54.70M
Capital Expenditures -$1.900M -$2.800M
Free Cash Flow $48.40M $57.50M
YoY Change -15.83% -63.93%

Facts In Submission

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-style:italic;"></font><font style="font-family:inherit;font-size:12pt;color:#000000;font-style:italic;text-decoration:none;">Basis of Presentation</font><font style="font-family:inherit;font-size:12pt;font-style:italic;"> </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The interim Consolidated Financial Statements of Federated Investors, Inc. and its consolidated subsidiaries (collectively, Federated) included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). In the opinion of management, the financial statements reflect all adjustments that are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods presented.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In preparing the financial statements, management is required to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates, and such differences may be material to the Consolidated Financial Statements. </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">These financial statements should be read in conjunction with Federated&#8217;s Annual Report on Form 10-K for the year ended </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">December&#160;31, 2013</font><font style="font-family:inherit;font-size:10pt;">. Certain items previously reported have been reclassified to conform to the current period&#8217;s presentation, including, but not limited to, the combination of certain line items on the Consolidated Statements of Income and the combination/expansion of certain line items on the Consolidated Statements of Cash Flows.</font></div></div>
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On May&#160;28, 2014, the FASB issued as final, ASU 2014-09, Revenue from Contracts with Customers (Topic 606) which supersedes virtually all existing revenue recognition guidance under GAAP. The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update is effective for interim and annual reporting periods in fiscal years beginning after December&#160;15, 2016 and prohibits early adoption. The update allows for the use of either the retrospective or modified retrospective approach of adoption. Management is currently evaluating the available transition methods and the potential impact of adoption on Federated's Consolidated Financial Statements.</font></div></div>
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us-gaap Interest Rate Cash Flow Hedge Gain Loss Reclassified To Earnings Net
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Effective January 1, 2014, Federated adopted the Financial Accounting Standards Board (FASB) accounting standards update (ASU) 2013-08, Financial Services-Investment Companies (Topic 946) amending the criteria for an entity to qualify as an investment company under GAAP. Any entity regulated under the Investment Company Act of 1940 (1940 Act) is automatically an investment company under the new definition. The update also amends certain disclosure requirements and measurement criteria. The adoption of the update did not have a material impact on Federated's Consolidated Financial Statements.
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2000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
100749000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
100638000 shares
CY2014Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
100731000 shares
CY2013Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
100678000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
100748000 shares
CY2013Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
100677000 shares
CY2014Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
100729000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
100637000 shares
fii Advances Of Deferred Sales Commissions
AdvancesOfDeferredSalesCommissions
9353000 USD
fii Advances Of Deferred Sales Commissions
AdvancesOfDeferredSalesCommissions
12577000 USD
CY2014Q3 fii Amortizationofthe Swap
AmortizationoftheSwap
63800000 USD
fii Comprehensive Income Net Of Tax Attributable To Redeemable Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToRedeemableNoncontrollingInterest
599000 USD
CY2013Q3 fii Comprehensive Income Net Of Tax Attributable To Redeemable Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToRedeemableNoncontrollingInterest
128000 USD
CY2014Q3 fii Comprehensive Income Net Of Tax Attributable To Redeemable Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToRedeemableNoncontrollingInterest
-195000 USD
fii Comprehensive Income Net Of Tax Attributable To Redeemable Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToRedeemableNoncontrollingInterest
381000 USD
fii Consolidation Deconsolidationof Investment Companies
ConsolidationDeconsolidationofInvestmentCompanies
-21484000 USD
fii Consolidation Deconsolidationof Investment Companies
ConsolidationDeconsolidationofInvestmentCompanies
3782000 USD
fii Contingent Deferred Sales Charges Received
ContingentDeferredSalesChargesReceived
1408000 USD
fii Contingent Deferred Sales Charges Received
ContingentDeferredSalesChargesReceived
1306000 USD
fii Decrease In Distribution Expenses
DecreaseInDistributionExpenses
-213200000 USD
fii Decrease In Distribution Expenses
DecreaseInDistributionExpenses
-203800000 USD
CY2013Q3 fii Decrease In Distribution Expenses
DecreaseInDistributionExpenses
-72100000 USD
CY2014Q3 fii Decrease In Distribution Expenses
DecreaseInDistributionExpenses
-68700000 USD
fii Decrease In Net Income Attributable To Noncontrolling Interests
DecreaseInNetIncomeAttributableToNoncontrollingInterests
-4800000 USD
CY2013Q3 fii Decrease In Net Income Attributable To Noncontrolling Interests
DecreaseInNetIncomeAttributableToNoncontrollingInterests
-2700000 USD
fii Decrease In Net Income Attributable To Noncontrolling Interests
DecreaseInNetIncomeAttributableToNoncontrollingInterests
-8000000 USD
CY2014Q3 fii Decrease In Net Income Attributable To Noncontrolling Interests
DecreaseInNetIncomeAttributableToNoncontrollingInterests
-2800000 USD
CY2014Q3 fii Decrease In Operating Income
DecreaseInOperatingIncome
-33000000 USD
CY2013Q3 fii Decrease In Operating Income
DecreaseInOperatingIncome
-33000000 USD
fii Decrease In Operating Income
DecreaseInOperatingIncome
-80600000 USD
fii Decrease In Operating Income
DecreaseInOperatingIncome
-97500000 USD
CY2013Q3 fii Decrease In Pre Tax Income
DecreaseInPreTaxIncome
-30300000 USD
CY2014Q3 fii Decrease In Pre Tax Income
DecreaseInPreTaxIncome
-30200000 USD
fii Decrease In Pre Tax Income
DecreaseInPreTaxIncome
-89500000 USD
fii Decrease In Pre Tax Income
DecreaseInPreTaxIncome
-75800000 USD
fii Dividends Declared Distributions To Noncontrolling Interest In Subsidiaries
DividendsDeclaredDistributionsToNoncontrollingInterestInSubsidiaries
78729000 USD
fii Dividends Declared Distributions To Noncontrolling Interest In Subsidiaries
DividendsDeclaredDistributionsToNoncontrollingInterestInSubsidiaries
80491000 USD
CY2014Q3 fii Employee Incentive Compensation Fund Bonus Payable Succeeding Fiscal Year
EmployeeIncentiveCompensationFundBonusPayableSucceedingFiscalYear
2000000 USD
CY2014Q3 fii Employee Incentive Compensation Maximum Bonus Payable Over Remaining Terms
EmployeeIncentiveCompensationMaximumBonusPayableOverRemainingTerms
29000000 USD
fii Equity Profit Loss
EquityProfitLoss
123762000 USD
fii Equity Profit Loss
EquityProfitLoss
109619000 USD
CY2014Q4 fii Expected Net Operating Expenses Of Consolidated Investment Company
ExpectedNetOperatingExpensesOfConsolidatedInvestmentCompany
35000 USD
fii Fees And Commissions Other Affiliates
FeesAndCommissionsOtherAffiliates
49796000 USD
fii Fees And Commissions Other Affiliates
FeesAndCommissionsOtherAffiliates
54695000 USD
CY2013Q3 fii Fees And Commissions Other Affiliates
FeesAndCommissionsOtherAffiliates
16862000 USD
CY2014Q3 fii Fees And Commissions Other Affiliates
FeesAndCommissionsOtherAffiliates
19082000 USD
CY2014Q3 fii Investment Advisory Fees From Affiliates
InvestmentAdvisoryFeesFromAffiliates
116122000 USD
CY2013Q3 fii Investment Advisory Fees From Affiliates
InvestmentAdvisoryFeesFromAffiliates
112067000 USD
fii Investment Advisory Fees From Affiliates
InvestmentAdvisoryFeesFromAffiliates
342752000 USD
fii Investment Advisory Fees From Affiliates
InvestmentAdvisoryFeesFromAffiliates
371092000 USD
CY2014Q3 fii Investmentsothertrading
Investmentsothertrading
4924000 USD
CY2013Q4 fii Investmentsothertrading
Investmentsothertrading
4846000 USD
CY2014Q3 fii Line Of Credit Facility Facility Fee Basis Points
LineOfCreditFacilityFacilityFeeBasisPoints
12.5
fii Other Comprehensive Income Loss Before Reclassifications Tax Total
OtherComprehensiveIncomeLossBeforeReclassificationsTaxTotal
-29000 USD
fii Other Comprehensive Income Loss Before Reclassifications Tax Total
OtherComprehensiveIncomeLossBeforeReclassificationsTaxTotal
-2454000 USD
fii Other Comprehensive Income Loss Net Of Tax Stmt Of Shareholders Equity
OtherComprehensiveIncomeLossNetOfTaxStmtOfShareholdersEquity
-117000 USD
fii Other Comprehensive Income Loss Net Of Tax Stmt Of Shareholders Equity
OtherComprehensiveIncomeLossNetOfTaxStmtOfShareholdersEquity
936000 USD
fii Other Comprehensive Income Loss Reclassifications Tax Total
OtherComprehensiveIncomeLossReclassificationsTaxTotal
95000 USD
fii Other Comprehensive Income Loss Reclassifications Tax Total
OtherComprehensiveIncomeLossReclassificationsTaxTotal
2185000 USD
CY2008Q4 fii Prior Business Acquisition Required Compound Annual Growth Rate
PriorBusinessAcquisitionRequiredCompoundAnnualGrowthRate
0.30
CY2014Q3 fii Renewable Investment Advisory Rights
RenewableInvestmentAdvisoryRights
68970000 USD
CY2013Q4 fii Renewable Investment Advisory Rights
RenewableInvestmentAdvisoryRights
68595000 USD
CY2014Q3 fii Revolving Credit Facility Spread Basis Points
RevolvingCreditFacilitySpreadBasisPoints
100
CY2014Q2 fii Sharesof Federated Class B Common Stockto Non Management Directors
SharesofFederatedClassBCommonStocktoNonManagementDirectors
5100 shares
CY2013Q2 fii Sharesof Federated Class B Common Stockto Non Management Directors
SharesofFederatedClassBCommonStocktoNonManagementDirectors
5100 shares
CY2014Q3 fii Term Loan Spread Basis Points
TermLoanSpreadBasisPoints
112.5
CY2014Q3 fii Variable Interest Entity Consolidated Carrying Amount Investments
VariableInterestEntityConsolidatedCarryingAmountInvestments
114729000 USD
CY2013Q4 fii Variable Interest Entity Consolidated Carrying Amount Investments
VariableInterestEntityConsolidatedCarryingAmountInvestments
53476000 USD
CY2013Q3 fii Voluntary Waiver Of Fees To Maintain Positive Or Zero Net Yields
VoluntaryWaiverOfFeesToMaintainPositiveOrZeroNetYields
-105100000 USD
fii Voluntary Waiver Of Fees To Maintain Positive Or Zero Net Yields
VoluntaryWaiverOfFeesToMaintainPositiveOrZeroNetYields
-310700000 USD
fii Voluntary Waiver Of Fees To Maintain Positive Or Zero Net Yields
VoluntaryWaiverOfFeesToMaintainPositiveOrZeroNetYields
-284400000 USD
CY2014Q3 fii Voluntary Waiver Of Fees To Maintain Positive Or Zero Net Yields
VoluntaryWaiverOfFeesToMaintainPositiveOrZeroNetYields
-101700000 USD
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2014
dei Document Period End Date
DocumentPeriodEndDate
2014-09-30
dei Document Type
DocumentType
10-Q
dei Entity Central Index Key
EntityCentralIndexKey
0001056288
dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
dei Trading Symbol
TradingSymbol
FII
dei Entity Registrant Name
EntityRegistrantName
FEDERATED INVESTORS INC /PA/

Files In Submission

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0001056288-14-000027.txt Edgar Link pending
0001056288-14-000027-xbrl.zip Edgar Link pending
exhibit101-2014930.htm Edgar Link pending
exhibit311-2014930.htm Edgar Link pending
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