2016 Q3 Form 10-Q Financial Statement

#000105628816000043 Filed on October 28, 2016

View on sec.gov

Income Statement

Concept 2016 Q3 2015 Q3
Revenue $294.6M $234.3M
YoY Change 25.73% 8.02%
Cost Of Revenue $7.400M $7.800M
YoY Change -5.13% -1.27%
Gross Profit $287.3M $226.5M
YoY Change 26.84% 8.37%
Gross Profit Margin 97.52% 96.66%
Selling, General & Admin $195.4M $149.2M
YoY Change 30.97% 5.22%
% of Gross Profit 68.01% 65.87%
Research & Development $7.763M $6.684M
YoY Change 16.14% 4.57%
% of Gross Profit 2.7% 2.95%
Depreciation & Amortization $2.200M $2.300M
YoY Change -4.35% -11.54%
% of Gross Profit 0.77% 1.02%
Operating Expenses $206.0M $160.1M
YoY Change 28.68% 2404.33%
Operating Profit $88.64M $74.24M
YoY Change 19.38% 22.06%
Interest Expense $2.900M -$4.000M
YoY Change -172.5% 185.71%
% of Operating Profit 3.27% -5.39%
Other Income/Expense, Net $2.869M -$4.036M
YoY Change -171.09% 194.17%
Pretax Income $91.51M $70.21M
YoY Change 30.33% 18.08%
Income Tax $32.60M $26.07M
% Of Pretax Income 35.62% 37.14%
Net Earnings $54.93M $44.13M
YoY Change 24.46% 17.49%
Net Earnings / Revenue 18.64% 18.83%
Basic Earnings Per Share
Diluted Earnings Per Share $555.7K $438.8K
COMMON SHARES
Basic Shares Outstanding 98.81M shares 100.4M shares
Diluted Shares Outstanding 98.81M shares 100.5M shares

Balance Sheet

Concept 2016 Q3 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $380.5M $321.8M
YoY Change 18.24% -8.66%
Cash & Equivalents $185.1M $141.2M
Short-Term Investments $195.4M $180.6M
Other Short-Term Assets $3.225M $3.416M
YoY Change -5.59% -37.32%
Inventory
Prepaid Expenses $9.718M $9.309M
Receivables $39.04M $28.41M
Other Receivables $0.00 $0.00
Total Short-Term Assets $432.5M $362.9M
YoY Change 19.18% -8.17%
LONG-TERM ASSETS
Property, Plant & Equipment $39.74M $36.46M
YoY Change 9.0% -0.48%
Goodwill $659.2M $659.3M
YoY Change -0.02% 0.07%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $24.96M $22.54M
YoY Change 10.75% -11.6%
Total Long-Term Assets $798.0M $793.8M
YoY Change 0.53% -0.33%
TOTAL ASSETS
Total Short-Term Assets $432.5M $362.9M
Total Long-Term Assets $798.0M $793.8M
Total Assets $1.231B $1.157B
YoY Change 6.38% -2.93%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $54.40M $39.50M
YoY Change 37.72% 4.77%
Accrued Expenses $61.80M $60.80M
YoY Change 1.64% 3.93%
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% 0.0%
Total Short-Term Liabilities $152.3M $141.7M
YoY Change 7.53% 2.97%
LONG-TERM LIABILITIES
Long-Term Debt $172.1M $197.6M
YoY Change -12.9% -11.43%
Other Long-Term Liabilities $22.37M $19.05M
YoY Change 17.4% -4.62%
Total Long-Term Liabilities $367.3M $368.9M
YoY Change -0.42% -2.92%
TOTAL LIABILITIES
Total Short-Term Liabilities $152.3M $141.7M
Total Long-Term Liabilities $367.3M $368.9M
Total Liabilities $519.7M $510.5M
YoY Change 1.79% -1.36%
SHAREHOLDERS EQUITY
Retained Earnings $607.2M $536.6M
YoY Change 13.15% -48.42%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $242.7M $189.6M
YoY Change 28.0% -74.99%
Treasury Stock Shares 7.223M shares 5.362M shares
Shareholders Equity $679.7M $635.6M
YoY Change
Total Liabilities & Shareholders Equity $1.231B $1.157B
YoY Change 6.38% -2.93%

Cashflow Statement

Concept 2016 Q3 2015 Q3
OPERATING ACTIVITIES
Net Income $54.93M $44.13M
YoY Change 24.46% 17.49%
Depreciation, Depletion And Amortization $2.200M $2.300M
YoY Change -4.35% -11.54%
Cash From Operating Activities $86.30M $79.60M
YoY Change 8.42% 71.18%
INVESTING ACTIVITIES
Capital Expenditures -$3.300M -$1.400M
YoY Change 135.71% -26.32%
Acquisitions
YoY Change
Other Investing Activities $7.100M -$800.0K
YoY Change -987.5% -105.48%
Cash From Investing Activities $3.800M -$2.200M
YoY Change -272.73% -117.46%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -58.90M -45.40M
YoY Change 29.74% 52.86%
NET CHANGE
Cash From Operating Activities 86.30M 79.60M
Cash From Investing Activities 3.800M -2.200M
Cash From Financing Activities -58.90M -45.40M
Net Change In Cash 31.20M 32.00M
YoY Change -2.5% 8.84%
FREE CASH FLOW
Cash From Operating Activities $86.30M $79.60M
Capital Expenditures -$3.300M -$1.400M
Free Cash Flow $89.60M $81.00M
YoY Change 10.62% 67.36%

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us-gaap Repayments Of Bank Debt
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0 USD
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WeightedAverageNumberOfDilutedSharesOutstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
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CY2016Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Basis Of Accounting
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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'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, 2015</font><font style="font-family:inherit;font-size:10pt;">. Certain items previously reported have been reclassified to conform with the current period'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:10pt;text-decoration:underline;">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;">On May&#160;28, 2014, the FASB issued 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&#160;9, 2015, the FASB approved a one-year deferral of the effective date of the update, and issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, on August&#160;12, 2015. As a result of the deferral, the update is effective for Federated on January&#160;1, 2018, with early adoption permitted on January&#160;1, 2017. During 2016, the FASB issued ASU 2016-08, which clarifies principal versus agent considerations, ASU 2016-10, which clarifies identifying performance obligations and the licensing implementation guidance and ASU 2016-12, which addresses implementation issues and provides additional practical expedients. ASU 2014-09 allows for the use of either the retrospective or modified retrospective adoption method. Management is currently evaluating the available transition methods and the potential impact of adoption on Federated's Consolidated Financial Statements. </font></div><div style="line-height:120%;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Deferred Taxes</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;">On November&#160;20, 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in this update require that deferred tax liabilities and assets be classified as noncurrent on the balance sheet. The update is effective for Federated on January&#160;1, 2017, with early adoption permitted. The update allows for the use of either a prospective or retrospective adoption approach. Management has elected the prospective transition method and does not expect this update to have a material impact 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:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Financial Instruments</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;">On January&#160;5, 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU significantly revises an entity's accounting related to (1)&#160;the classification and measurement of investments in equity securities and (2)&#160;the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. The update is effective for Federated on January&#160;1, 2018, and, except for certain provisions, does not permit early adoption. An entity should apply the amendments, with certain exceptions, by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. Management 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:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Leases</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On February&#160;25, 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases on the balance sheet, but retains a distinction between finance and operating leases. The update is effective for Federated on January&#160;1, 2019, with early adoption permitted. The update requires the modified retrospective adoption approach. Management is currently evaluating the potential impact of adoption on Federated's Consolidated Financial Statements.</font></div></div>

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