2015 Q1 Form 10-Q Financial Statement

#000105628815000010 Filed on April 24, 2015

View on sec.gov

Income Statement

Concept 2015 Q1 2014 Q1
Revenue $220.5M $211.5M
YoY Change 4.27% -7.23%
Cost Of Revenue $7.900M $8.400M
YoY Change -5.95% -4.55%
Gross Profit $212.6M $203.1M
YoY Change 4.68% -7.3%
Gross Profit Margin 96.41% 96.03%
Selling, General & Admin $149.9M $142.6M
YoY Change 5.12% -1.18%
% of Gross Profit 70.51% 70.21%
Research & Development $6.870M $6.404M
YoY Change 7.28% -3.31%
% of Gross Profit 3.23% 3.15%
Depreciation & Amortization $2.500M $2.700M
YoY Change -7.41% 8.0%
% of Gross Profit 1.18% 1.33%
Operating Expenses $6.870M $6.404M
YoY Change 7.28% -3.31%
Operating Profit $59.04M $56.65M
YoY Change 4.22% -16.94%
Interest Expense -$500.0K $800.0K
YoY Change -162.5% -33.33%
% of Operating Profit -0.85% 1.41%
Other Income/Expense, Net -$496.0K $796.0K
YoY Change -162.31% -29.87%
Pretax Income $58.54M $57.44M
YoY Change 1.92% -17.15%
Income Tax $22.12M $21.80M
% Of Pretax Income 37.79% 37.95%
Net Earnings $36.31M $35.19M
YoY Change 3.16% -18.14%
Net Earnings / Revenue 16.46% 16.64%
Basic Earnings Per Share
Diluted Earnings Per Share $360.8K $340.1K
COMMON SHARES
Basic Shares Outstanding 100.6M shares 100.7M shares
Diluted Shares Outstanding 100.6M shares 100.7M shares

Balance Sheet

Concept 2015 Q1 2014 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $279.6M $256.7M
YoY Change 8.92% 34.82%
Cash & Equivalents $91.83M $71.58M
Short-Term Investments $187.8M $185.1M
Other Short-Term Assets $3.649M $4.597M
YoY Change -20.62% 1.46%
Inventory
Prepaid Expenses $11.00M $10.40M
Receivables $28.61M $28.65M
Other Receivables $0.00 $0.00
Total Short-Term Assets $322.9M $300.4M
YoY Change 7.5% -13.25%
LONG-TERM ASSETS
Property, Plant & Equipment $37.35M $38.59M
YoY Change -3.2% -5.27%
Goodwill $658.8M $658.7M
YoY Change 0.01% 1.53%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $25.46M $21.12M
YoY Change 20.58% -8.67%
Total Long-Term Assets $796.2M $794.5M
YoY Change 0.21% 0.44%
TOTAL ASSETS
Total Short-Term Assets $322.9M $300.4M
Total Long-Term Assets $796.2M $794.5M
Total Assets $1.119B $1.095B
YoY Change 2.21% -3.73%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $39.20M $37.40M
YoY Change 4.81% -16.52%
Accrued Expenses $27.80M $26.00M
YoY Change 6.92% 11.11%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $25.50M $95.60M
YoY Change -73.33% 124.94%
Total Short-Term Liabilities $114.3M $186.2M
YoY Change -38.58% 35.36%
LONG-TERM LIABILITIES
Long-Term Debt $210.4M $170.0M
YoY Change 23.76% -35.99%
Other Long-Term Liabilities $16.01M $17.39M
YoY Change -7.97% -28.56%
Total Long-Term Liabilities $375.8M $316.2M
YoY Change 18.84% -21.1%
TOTAL LIABILITIES
Total Short-Term Liabilities $114.3M $186.2M
Total Long-Term Liabilities $375.8M $316.2M
Total Liabilities $490.1M $502.4M
YoY Change -2.44% -6.68%
SHAREHOLDERS EQUITY
Retained Earnings $503.3M $1.018B
YoY Change -50.58% 2.77%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $162.9M $745.1M
YoY Change -78.14% -0.84%
Treasury Stock Shares 4.516M shares 24.41M shares
Shareholders Equity $620.1M $575.8M
YoY Change
Total Liabilities & Shareholders Equity $1.119B $1.095B
YoY Change 2.21% -3.73%

Cashflow Statement

Concept 2015 Q1 2014 Q1
OPERATING ACTIVITIES
Net Income $36.31M $35.19M
YoY Change 3.16% -18.14%
Depreciation, Depletion And Amortization $2.500M $2.700M
YoY Change -7.41% 8.0%
Cash From Operating Activities $14.66M $17.75M
YoY Change -17.39% -10.23%
INVESTING ACTIVITIES
Capital Expenditures $1.008M $1.212M
YoY Change -16.83% -60.69%
Acquisitions $0.00 $9.229M
YoY Change -100.0% 174.26%
Other Investing Activities -$900.0K -$5.900M
YoY Change -84.75% -178.67%
Cash From Investing Activities -$1.951M -$7.087M
YoY Change -72.47% -259.22%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $10.28M $8.709M
YoY Change 17.99% 252.16%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$36.15M -$43.53M
YoY Change -16.96% 23.03%
NET CHANGE
Cash From Operating Activities $14.66M $17.75M
Cash From Investing Activities -$1.951M -$7.087M
Cash From Financing Activities -$36.15M -$43.53M
Net Change In Cash -$23.43M -$32.87M
YoY Change -28.7% 194.57%
FREE CASH FLOW
Cash From Operating Activities $14.66M $17.75M
Capital Expenditures $1.008M $1.212M
Free Cash Flow $13.66M $16.54M
YoY Change -17.43% -0.91%

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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, 2014</font><font style="font-family:inherit;font-size:10pt;">. Certain items previously reported have been reclassified to conform with the current period&#8217;s presentation.</font></div></div>
CY2015Q1 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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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;"></font><font style="font-family:inherit;font-size:10pt;">Consolidation</font><font style="font-family:inherit;font-size:10pt;"> </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;">On February&#160;18, 2015, the FASB issued as final, ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which affects reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The update is effective for interim and annual reporting periods in fiscal years beginning after December&#160;15, 2015. Early adoption is permitted, including adoption in an interim period. The update allows for the use of either a full retrospective or a modified retrospective adoption approach. Management is currently evaluating the available transition methods and the potential impact of adoption on Federated's Consolidated Financial Statements.</font></div></div><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;"></font><font style="font-family:inherit;font-size:10pt;">Accounting for Fees Paid in a Cloud Computing Arrangement</font><font style="font-family:inherit;font-size:10pt;"> </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;">On April 15, 2015, the FASB issued as final, ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer&#8217;s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance about whether a cloud computing arrangement includes a software license. The update is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The update allows for the use of either a prospective or retrospective adoption approach. Management is currently evaluating the available transition methods and the potential impact of adoption on Federated's Consolidated Financial Statements.</font></div></div><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;"></font><font style="font-family:inherit;font-size:10pt;">Revenue Recognition</font><font style="font-family:inherit;font-size:10pt;"> </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;">On May 28, 2014, the FASB issued as final, Accounting Standards Update (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 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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