2018 Q1 Form 10-Q Financial Statement

#000105628818000013 Filed on April 27, 2018

View on sec.gov

Income Statement

Concept 2018 Q1 2017 Q1
Revenue $263.9M $273.5M
YoY Change -3.53% 0.51%
Cost Of Revenue $9.600M $6.700M
YoY Change 43.28% -24.72%
Gross Profit $254.2M $266.8M
YoY Change -4.72% 1.37%
Gross Profit Margin 96.34% 97.55%
Selling, General & Admin $172.9M $185.2M
YoY Change -6.64% -0.59%
% of Gross Profit 68.02% 69.42%
Research & Development $8.433M $8.225M
YoY Change 2.53% 4.58%
% of Gross Profit 3.32% 3.08%
Depreciation & Amortization $2.600M $2.600M
YoY Change 0.0% 8.33%
% of Gross Profit 1.02% 0.97%
Operating Expenses $184.2M $195.7M
YoY Change -5.9% -0.92%
Operating Profit $79.67M $77.77M
YoY Change 2.44% 4.32%
Interest Expense -$600.0K $3.100M
YoY Change -119.35% 93.75%
% of Operating Profit -0.75% 3.99%
Other Income/Expense, Net -$755.0K $3.112M
YoY Change -124.26% 94.5%
Pretax Income $78.92M $80.89M
YoY Change -2.43% 6.21%
Income Tax $18.91M $29.86M
% Of Pretax Income 23.96% 36.91%
Net Earnings $60.33M $49.64M
YoY Change 21.53% 9.24%
Net Earnings / Revenue 22.87% 18.15%
Basic Earnings Per Share
Diluted Earnings Per Share $620.4K $506.6K
COMMON SHARES
Basic Shares Outstanding 97.19M shares 97.86M shares
Diluted Shares Outstanding 97.19M shares 97.86M shares

Balance Sheet

Concept 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $377.6M $277.7M
YoY Change 35.97% -18.8%
Cash & Equivalents $325.6M $94.63M
Short-Term Investments $51.90M $183.0M
Other Short-Term Assets $1.996M $2.249M
YoY Change -11.25% -46.2%
Inventory
Prepaid Expenses $11.40M $10.85M
Receivables $50.06M $44.73M
Other Receivables $0.00 $0.00
Total Short-Term Assets $441.0M $335.5M
YoY Change 31.46% -15.83%
LONG-TERM ASSETS
Property, Plant & Equipment $38.70M $38.74M
YoY Change -0.1% 3.53%
Goodwill $660.0M $660.0M
YoY Change 0.0% 0.11%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $18.84M $21.66M
YoY Change -13.0% 6.08%
Total Long-Term Assets $794.3M $797.7M
YoY Change -0.43% 0.72%
TOTAL ASSETS
Total Short-Term Assets $441.0M $335.5M
Total Long-Term Assets $794.3M $797.7M
Total Assets $1.235B $1.133B
YoY Change 9.01% -4.82%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $54.20M $48.80M
YoY Change 11.07% -7.92%
Accrued Expenses $27.10M $24.90M
YoY Change 8.84% -9.12%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $25.50M
YoY Change 0.0%
Total Short-Term Liabilities $99.64M $127.6M
YoY Change -21.9% -3.08%
LONG-TERM LIABILITIES
Long-Term Debt $165.0M $159.4M
YoY Change 3.51% -13.79%
Other Long-Term Liabilities $20.58M $20.40M
YoY Change 0.86% 18.67%
Total Long-Term Liabilities $307.4M $362.8M
YoY Change -15.26% -2.02%
TOTAL LIABILITIES
Total Short-Term Liabilities $99.64M $127.6M
Total Long-Term Liabilities $307.4M $362.8M
Total Liabilities $407.1M $490.3M
YoY Change -16.98% -2.3%
SHAREHOLDERS EQUITY
Retained Earnings $721.8M $540.2M
YoY Change 33.62% -2.18%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $255.2M
YoY Change 31.78%
Treasury Stock Shares 7.515M shares
Shareholders Equity $799.6M $612.7M
YoY Change
Total Liabilities & Shareholders Equity $1.235B $1.133B
YoY Change 9.01% -4.82%

Cashflow Statement

Concept 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income $60.33M $49.64M
YoY Change 21.53% 9.24%
Depreciation, Depletion And Amortization $2.600M $2.600M
YoY Change 0.0% 8.33%
Cash From Operating Activities $48.10M $33.22M
YoY Change 44.78% 26.59%
INVESTING ACTIVITIES
Capital Expenditures $3.106M $2.133M
YoY Change 45.62% -34.51%
Acquisitions $0.00 $4.352M
YoY Change -100.0%
Other Investing Activities $0.00 $7.300M
YoY Change -100.0% -1012.5%
Cash From Investing Activities -$3.089M $5.122M
YoY Change -160.31% -227.1%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $4.024M $14.87M
YoY Change -72.94% 8.33%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$35.60M -$48.55M
YoY Change -26.67% 3.12%
NET CHANGE
Cash From Operating Activities $48.10M $33.22M
Cash From Investing Activities -$3.089M $5.122M
Cash From Financing Activities -$35.60M -$48.55M
Net Change In Cash $9.407M -$10.21M
YoY Change -192.16% -58.95%
FREE CASH FLOW
Cash From Operating Activities $48.10M $33.22M
Capital Expenditures $3.106M $2.133M
Free Cash Flow $44.99M $31.09M
YoY Change 44.73% 35.25%

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CY2018Q1 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;">Federated provides investment advisory, administrative, distribution and other services to various investment products, including sponsored investment companies and other funds (</font><font style="font-family:inherit;font-size:10pt;">Federated Funds</font><font style="font-family:inherit;font-size:10pt;">) and </font><font style="font-family:inherit;font-size:10pt;">Separate Accounts</font><font style="font-family:inherit;font-size:10pt;"> (which include separately managed accounts, institutional accounts, sub-advised funds and other managed products) in both domestic and international markets. The interim Consolidated Financial Statements of Federated Investors, Inc. and its consolidated subsidiaries (collectively, </font><font style="font-family:inherit;font-size:10pt;">Federated</font><font style="font-family:inherit;font-size:10pt;">) included herein have been prepared in accordance with United States (</font><font style="font-family:inherit;font-size:10pt;">U.S.</font><font style="font-family:inherit;font-size:10pt;">) generally accepted accounting principles (</font><font style="font-family:inherit;font-size:10pt;">GAAP</font><font style="font-family:inherit;font-size:10pt;">). 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, 2017</font><font style="font-family:inherit;font-size:10pt;">. Certain items previously reported have been reclassified to conform to the current period's presentation.</font></div></div>
CY2018Q1 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:11pt;"><font style="font-family:inherit;font-size:11pt;"></font><font style="font-family:inherit;font-size:11pt;">Recently Issued Accounting Guidance Not Yet Adopted</font></div><div style="line-height:120%;font-size:6pt;"><font style="font-family:inherit;font-size:6pt;">&#160;</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%;padding-bottom:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On February&#160;25, 2016, the FASB issued ASU 2016-02, Leases (</font><font style="font-family:inherit;font-size:10pt;">Topic 842</font><font style="font-family:inherit;font-size:10pt;">). The core principle is that a lessee should recognize the assets and liabilities that arise from leases on the balance sheet, while retaining a distinction between finance and operating leases. The update is effective for Federated on January&#160;1, 2019. While early adoption is permitted, Federated does not plan to early adopt. The update requires the modified retrospective adoption method. Management continues to identify the population of contracts for testing to determine if a lease exists, and is currently evaluating the potential impact of adoption to Federated's Consolidated Financial Statements.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Goodwill Impairment</font></div><div style="line-height:120%;padding-bottom:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On January&#160;26, 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. Under this ASU, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. However, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, the ASU retains the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The update is effective for Federated on January&#160;1, 2020, with early adoption permitted, and requires the prospective adoption method. Management is currently evaluating the potential impact of adoption to Federated's Consolidated Financial Statements.</font></div></div>

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