2015 Q2 Form 10-Q Financial Statement

#000105628815000015 Filed on July 24, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2014 Q2
Revenue $228.1M $213.0M
YoY Change 7.11% -4.84%
Cost Of Revenue $7.300M $8.200M
YoY Change -10.98% -11.83%
Gross Profit $220.8M $204.8M
YoY Change 7.81% -4.52%
Gross Profit Margin 96.79% 96.16%
Selling, General & Admin $145.7M $142.9M
YoY Change 1.96% 0.78%
% of Gross Profit 65.99% 69.78%
Research & Development $6.979M $6.225M
YoY Change 12.11% 2.27%
% of Gross Profit 3.16% 3.04%
Depreciation & Amortization $2.400M $2.700M
YoY Change -11.11% 8.0%
% of Gross Profit 1.09% 1.32%
Operating Expenses $158.8M $6.225M
YoY Change 2451.78% 2.27%
Operating Profit $69.28M $58.84M
YoY Change 17.74% -10.88%
Interest Expense -$600.0K $1.500M
YoY Change -140.0% 66.67%
% of Operating Profit -0.87% 2.55%
Other Income/Expense, Net -$579.0K $1.457M
YoY Change -139.74% 63.34%
Pretax Income $68.70M $60.30M
YoY Change 13.93% -9.89%
Income Tax $26.44M $22.99M
% Of Pretax Income 38.48% 38.12%
Net Earnings $41.76M $36.87M
YoY Change 13.26% -8.76%
Net Earnings / Revenue 18.31% 17.31%
Basic Earnings Per Share
Diluted Earnings Per Share $411.8K $366.1K
COMMON SHARES
Basic Shares Outstanding 100.7M shares 100.8M shares
Diluted Shares Outstanding 100.7M shares 100.8M shares

Balance Sheet

Concept 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $299.9M $263.6M
YoY Change 13.77% -12.97%
Cash & Equivalents $109.1M $61.08M
Short-Term Investments $190.8M $202.5M
Other Short-Term Assets $3.637M $4.891M
YoY Change -25.64% -1.37%
Inventory
Prepaid Expenses $12.78M $12.27M
Receivables $29.88M $27.97M
Other Receivables $0.00 $0.00
Total Short-Term Assets $346.2M $308.7M
YoY Change 12.13% -12.1%
LONG-TERM ASSETS
Property, Plant & Equipment $37.43M $37.21M
YoY Change 0.62% -9.08%
Goodwill $659.2M $658.8M
YoY Change 0.06% 1.54%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $24.47M $24.45M
YoY Change 0.09% 3.85%
Total Long-Term Assets $796.6M $796.4M
YoY Change 0.03% 0.69%
TOTAL ASSETS
Total Short-Term Assets $346.2M $308.7M
Total Long-Term Assets $796.6M $796.4M
Total Assets $1.143B $1.105B
YoY Change 3.41% -3.25%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $39.80M $37.20M
YoY Change 6.99% -8.37%
Accrued Expenses $42.90M $41.80M
YoY Change 2.63% 4.5%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $25.50M $25.50M
YoY Change 0.0% -40.0%
Total Short-Term Liabilities $123.8M $118.7M
YoY Change 4.29% -18.86%
LONG-TERM LIABILITIES
Long-Term Debt $204.0M $229.5M
YoY Change -11.11% -10.0%
Other Long-Term Liabilities $18.24M $18.82M
YoY Change -3.11% -19.32%
Total Long-Term Liabilities $374.8M $381.6M
YoY Change -1.79% -2.46%
TOTAL LIABILITIES
Total Short-Term Liabilities $123.8M $118.7M
Total Long-Term Liabilities $374.8M $381.6M
Total Liabilities $498.6M $500.3M
YoY Change -0.35% -6.93%
SHAREHOLDERS EQUITY
Retained Earnings $518.6M $1.029B
YoY Change -49.6% 2.26%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $173.3M $751.0M
YoY Change -76.93% -0.42%
Treasury Stock Shares 4.828M shares 24.62M shares
Shareholders Equity $631.0M $587.2M
YoY Change
Total Liabilities & Shareholders Equity $1.143B $1.105B
YoY Change 3.41% -3.25%

Cashflow Statement

Concept 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income $41.76M $36.87M
YoY Change 13.26% -8.76%
Depreciation, Depletion And Amortization $2.400M $2.700M
YoY Change -11.11% 8.0%
Cash From Operating Activities $57.90M $47.40M
YoY Change 22.15% -0.63%
INVESTING ACTIVITIES
Capital Expenditures -$2.200M -$1.200M
YoY Change 83.33% -58.62%
Acquisitions
YoY Change
Other Investing Activities -$1.000M -$14.20M
YoY Change -92.96% -161.21%
Cash From Investing Activities -$3.100M -$15.30M
YoY Change -79.74% -175.74%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -37.50M -42.70M
YoY Change -12.18% 15.41%
NET CHANGE
Cash From Operating Activities 57.90M 47.40M
Cash From Investing Activities -3.100M -15.30M
Cash From Financing Activities -37.50M -42.70M
Net Change In Cash 17.30M -10.60M
YoY Change -263.21% -134.3%
FREE CASH FLOW
Cash From Operating Activities $57.90M $47.40M
Capital Expenditures -$2.200M -$1.200M
Free Cash Flow $60.10M $48.60M
YoY Change 23.66% -3.95%

Facts In Submission

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CY2015Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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us-gaap Temporary Equity Stock Issued During Period Value New Issues
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0 USD
us-gaap Temporary Equity Stock Issued During Period Value New Issues
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0 USD
CY2014Q4 us-gaap Trading Securities
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38900000 USD
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TradingSecurities
45300000 USD
us-gaap Travel And Entertainment Expense
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6291000 USD
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CY2014Q2 us-gaap Travel And Entertainment Expense
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CY2015Q2 us-gaap Travel And Entertainment Expense
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4827988 shares
us-gaap Treasury Stock Shares Acquired
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600000 shares
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165258000 USD
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173272000 USD
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13438000 USD
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
20492000 USD
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2700000 USD
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3900000 USD
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27700000 USD
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26400000 USD
CY2014Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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1000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
2000 shares
CY2015Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
2000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
2000 shares
CY2014Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
100790000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
100759000 shares
CY2015Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
100734000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
100688000 shares
CY2014Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
100789000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
100757000 shares
CY2015Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
100732000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
100686000 shares
us-gaap Basis Of Accounting
BasisOfAccounting
<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>
us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"></font><font style="font-family:inherit;font-size:11pt;">Revenue Recognition</font><font style="font-family:inherit;font-size:11pt;"> </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 Financial Accounting Standards Board (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. On July 9, 2015, the FASB approved a one-year deferral of the effective date of the update. The update is effective for interim and annual reporting periods in fiscal years beginning after December&#160;15, 2017. Early adoption is now permitted as of the original effective date (interim and annual reporting periods in fiscal years beginning after December&#160;15, 2016). 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><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"></font><font style="font-family:inherit;font-size:11pt;">Consolidation</font><font style="font-family:inherit;font-size:11pt;"> </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' evaluation of 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:11pt;"><font style="font-family:inherit;font-size:11pt;"></font><font style="font-family:inherit;font-size:11pt;">Accounting for Fees Paid in a Cloud Computing Arrangement</font><font style="font-family:inherit;font-size:11pt;"> </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&#160;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&#160;15, 2015. Early adoption is permitted. The update allows for the use of either a prospective or retrospective adoption approach. Management anticipates electing the prospective method of adoption and is currently evaluating the potential impact of adoption on Federated's 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:11pt;"><font style="font-family:inherit;font-size:11pt;">(d)</font><font style="font-family:inherit;font-size:11pt;"> </font><font style="font-family:inherit;font-size:11pt;">Disclosure of Investments in Certain Entities that Calculate Net Asset Value per Share</font><font style="font-family:inherit;font-size:11pt;"> </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&#160;1, 2015, the FASB issued as final, ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value (NAV) per Share (or Its Equivalent). This update requires that all investments for which fair value is measured using the net asset value per share practical expedient be excluded from the fair value hierarchy and modifies certain disclosure requirements. The update is effective for interim and annual reporting periods in fiscal years beginning after December&#160;15, 2015, and early adoption is permitted. The update requires the retrospective adoption approach. Management does not expect this update to have a material impact on Federated's Consolidated Financial Statements.</font></div></div>

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