2020 Q1 Form 10-Q Financial Statement

#000105628820000025 Filed on May 06, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2019 Q1
Revenue $359.2M $307.1M
YoY Change 16.98% 16.37%
Cost Of Revenue $13.30M $10.50M
YoY Change 26.67% 9.38%
Gross Profit $345.9M $296.6M
YoY Change 16.62% 16.68%
Gross Profit Margin 96.3% 96.6%
Selling, General & Admin $246.3M $221.0M
YoY Change 11.45% 27.82%
% of Gross Profit 71.21% 74.51%
Research & Development $14.90M $12.79M
YoY Change 16.43% 51.71%
% of Gross Profit 4.31% 4.31%
Depreciation & Amortization $6.900M $7.200M
YoY Change -4.17% 176.92%
% of Gross Profit 1.99% 2.43%
Operating Expenses $266.4M $236.2M
YoY Change 12.82% 28.22%
Operating Profit $92.74M $70.89M
YoY Change 30.83% -11.02%
Interest Expense -$15.40M $1.300M
YoY Change -1284.62% -316.67%
% of Operating Profit -16.6% 1.83%
Other Income/Expense, Net -$7.037M $1.633M
YoY Change -530.92% -316.29%
Pretax Income $85.71M $72.52M
YoY Change 18.18% -8.1%
Income Tax $22.44M $17.91M
% Of Pretax Income 26.18% 24.7%
Net Earnings $64.18M $54.55M
YoY Change 17.66% -9.59%
Net Earnings / Revenue 17.87% 17.76%
Basic Earnings Per Share $0.63
Diluted Earnings Per Share $0.63 $561.9K
COMMON SHARES
Basic Shares Outstanding 97.35M shares 96.99M shares
Diluted Shares Outstanding 97.35M shares 97.00M shares

Balance Sheet

Concept 2020 Q1 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $381.0M $162.1M
YoY Change 135.04% -57.07%
Cash & Equivalents $308.3M $134.5M
Short-Term Investments $72.70M $27.60M
Other Short-Term Assets $8.147M $2.263M
YoY Change 260.01% 13.38%
Inventory
Prepaid Expenses $18.64M $17.18M
Receivables $49.76M $48.71M
Other Receivables $46.50M $48.10M
Total Short-Term Assets $504.1M $278.4M
YoY Change 81.11% -36.88%
LONG-TERM ASSETS
Property, Plant & Equipment $51.46M $53.98M
YoY Change -4.66% 39.49%
Goodwill $789.8M $813.9M
YoY Change -2.96% 23.31%
Intangibles $458.7M $342.9M
YoY Change 33.79%
Long-Term Investments
YoY Change
Other Assets $20.48M $36.87M
YoY Change -44.45% 95.65%
Total Long-Term Assets $1.422B $1.357B
YoY Change 4.79% 70.82%
TOTAL ASSETS
Total Short-Term Assets $504.1M $278.4M
Total Long-Term Assets $1.422B $1.357B
Total Assets $1.926B $1.635B
YoY Change 17.78% 32.37%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $80.60M $61.40M
YoY Change 31.27% 13.28%
Accrued Expenses $70.90M $54.30M
YoY Change 30.57% 100.37%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $187.2M $131.7M
YoY Change 42.17% 32.17%
LONG-TERM LIABILITIES
Long-Term Debt $195.0M $130.0M
YoY Change 50.0% -21.21%
Other Long-Term Liabilities $24.82M $19.13M
YoY Change 29.77% -7.03%
Total Long-Term Liabilities $496.5M $419.5M
YoY Change 18.34% 36.47%
TOTAL LIABILITIES
Total Short-Term Liabilities $187.2M $131.7M
Total Long-Term Liabilities $496.5M $419.5M
Total Liabilities $683.7M $551.2M
YoY Change 24.03% 35.42%
SHAREHOLDERS EQUITY
Retained Earnings $949.2M $807.3M
YoY Change 17.58% 11.84%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.043B $897.7M
YoY Change
Total Liabilities & Shareholders Equity $1.926B $1.635B
YoY Change 17.78% 32.37%

Cashflow Statement

Concept 2020 Q1 2019 Q1
OPERATING ACTIVITIES
Net Income $64.18M $54.55M
YoY Change 17.66% -9.59%
Depreciation, Depletion And Amortization $6.900M $7.200M
YoY Change -4.17% 176.92%
Cash From Operating Activities $29.25M $16.76M
YoY Change 74.54% -65.16%
INVESTING ACTIVITIES
Capital Expenditures $1.557M $5.060M
YoY Change -69.23% 62.91%
Acquisitions $4.744M $0.00
YoY Change
Other Investing Activities -$6.600M -$400.0K
YoY Change 1550.0%
Cash From Investing Activities -$8.157M -$5.441M
YoY Change 49.92% 76.14%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $15.00M $1.485M
YoY Change 910.1% -63.1%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $50.40M -$35.92M
YoY Change -240.31% 0.9%
NET CHANGE
Cash From Operating Activities $29.25M $16.76M
Cash From Investing Activities -$8.157M -$5.441M
Cash From Financing Activities $50.40M -$35.92M
Net Change In Cash $65.01M -$22.34M
YoY Change -391.02% -337.46%
FREE CASH FLOW
Cash From Operating Activities $29.25M $16.76M
Capital Expenditures $1.557M $5.060M
Free Cash Flow $27.69M $11.70M
YoY Change 136.72% -74.0%

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CY2019Q1 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2020Q1 us-gaap Basis Of Accounting
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<span style="font-family:inherit;font-size:12pt;color:#000000;font-style:italic;text-decoration:none;">Basis of Presentation</span><span style="font-family:inherit;font-size:12pt;font-style:italic;"> </span><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Federated Hermes, Inc. and its consolidated subsidiaries (collectively, </span><span style="font-family:inherit;font-size:10pt;">Federated Hermes</span><span style="font-family:inherit;font-size:10pt;">) provides investment advisory, administrative, distribution and other services to various investment products, including sponsored investment companies and other funds (</span><span style="font-family:inherit;font-size:10pt;">Federated Hermes Funds</span><span style="font-family:inherit;font-size:10pt;">) and </span><span style="font-family:inherit;font-size:10pt;">Separate Accounts</span><span 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, as well as </span><span style="font-family:inherit;font-size:10pt;">stewardship services</span><span style="font-family:inherit;font-size:10pt;"> to various companies and </span><span style="font-family:inherit;font-size:10pt;">real estate development services</span><span style="font-family:inherit;font-size:10pt;">. The interim Consolidated Financial Statements of </span><span style="font-family:inherit;font-size:10pt;">Federated Hermes</span><span style="font-family:inherit;font-size:10pt;"> included herein have been prepared in accordance with </span><span style="font-family:inherit;font-size:10pt;">U.S.</span><span style="font-family:inherit;font-size:10pt;"> generally accepted accounting principles (</span><span style="font-family:inherit;font-size:10pt;">GAAP</span><span 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.</span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span 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. </span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><span style="font-family:inherit;font-size:10pt;">These financial statements should be read in conjunction with </span><span style="font-family:inherit;font-size:10pt;">Federated Hermes</span><span style="font-family:inherit;font-size:10pt;">' Annual Report on Form 10-K for the year ended </span><span style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">December 31, 2019</span>. Certain items previously reported have been reclassified to conform to the current period's presentation.
CY2020Q1 us-gaap Use Of Estimates
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<div style="line-height:120%;font-size:10pt;"><span 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. </span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div>
CY2020Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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359183000 USD
CY2019Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2020Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2019Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2020Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2020Q1 us-gaap Revenue Performance Obligation Description Of Timing
RevenuePerformanceObligationDescriptionOfTiming
Generally, contracts are billed in arrears on a quarterly basis and have a three year duration, after which the customer can terminate the agreement with notice, generally from three to twelve months.
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CY2020Q1 us-gaap Revenue Remaining Performance Obligation
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3695000 USD
CY2020Q1 us-gaap Revenue Remaining Performance Obligation
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1691000 USD
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1292000 USD
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98800000 USD
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5800000 USD
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5900000 USD
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CY2020Q1 us-gaap Goodwill Period Increase Decrease
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CY2017Q2 fhi Number Of Banks As Lenders
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CY2020Q1 us-gaap Line Of Credit
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CY2019Q4 us-gaap Line Of Credit Facility Interest Rate At Period End
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CY2020Q1 us-gaap Line Of Credit Facility Unused Capacity Commitment Fee Percentage
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CY2020Q1 us-gaap Line Of Credit Facility Remaining Borrowing Capacity
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180000000 USD
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
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CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
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CY2020Q1 fhi Treasury Stock Value Acquired Current Liability
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CY2019Q4 us-gaap Treasury Stock Common Shares
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CY2018Q4 us-gaap Treasury Stock Common Shares
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CY2020Q1 us-gaap Stock Issued During Period Shares Treasury Stock Reissued
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CY2019Q1 us-gaap Stock Issued During Period Shares Treasury Stock Reissued
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CY2020Q1 us-gaap Treasury Stock Common Shares
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CY2019Q1 us-gaap Treasury Stock Common Shares
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CY2020Q1 us-gaap Participating Securities Distributed And Undistributed Earnings Loss Basic
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CY2019Q1 us-gaap Participating Securities Distributed And Undistributed Earnings Loss Basic
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2135000 USD
CY2020Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2019Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
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52411000 USD
CY2020Q1 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Diluted
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33000 USD
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52378000 USD
CY2020Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2019Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2020Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2019Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1000 shares
CY2020Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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97345000 shares
CY2019Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2020Q1 us-gaap Earnings Per Share Basic And Diluted
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0.63
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0.54
CY2020Q1 fhi Carried Interest Subject To Clawback Provisions
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9000000 USD
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212086000 USD
CY2020Q1 us-gaap Temporary Equity Net Income
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CY2020Q1 us-gaap Temporary Equity Foreign Currency Translation Adjustments
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CY2020Q1 us-gaap Temporary Equity Stock Issued During Period Value New Issues
TemporaryEquityStockIssuedDuringPeriodValueNewIssues
5577000 USD
CY2020Q1 fhi Temporary Equity Consolidation Deconsolidation
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CY2020Q1 fhi Temporary Equity Stock Issued During Period Value Share Based Compensation Net Of Forfeitures
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2153000 USD
CY2020Q1 fhi Temporary Equity Decreasefrom Distributionsto Noncontrolling Interest Holders
TemporaryEquityDecreasefromDistributionstoNoncontrollingInterestHolders
6039000 USD
CY2020Q1 fhi Temporary Equity Change In Redemption Value
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1870000 USD
CY2020Q1 us-gaap Temporary Equity Carrying Amount Including Portion Attributable To Noncontrolling Interests
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199261000 USD
CY2018Q4 us-gaap Temporary Equity Carrying Amount Including Portion Attributable To Noncontrolling Interests
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182513000 USD
CY2019Q1 us-gaap Temporary Equity Net Income
TemporaryEquityNetIncome
65000 USD
CY2019Q1 us-gaap Temporary Equity Foreign Currency Translation Adjustments
TemporaryEquityForeignCurrencyTranslationAdjustments
3714000 USD
CY2019Q1 us-gaap Temporary Equity Stock Issued During Period Value New Issues
TemporaryEquityStockIssuedDuringPeriodValueNewIssues
42000 USD
CY2019Q1 fhi Temporary Equity Stock Issued During Period Value Share Based Compensation Net Of Forfeitures
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2126000 USD
CY2019Q1 fhi Temporary Equity Decreasefrom Distributionsto Noncontrolling Interest Holders
TemporaryEquityDecreasefromDistributionstoNoncontrollingInterestHolders
2260000 USD
CY2019Q1 us-gaap Temporary Equity Carrying Amount Including Portion Attributable To Noncontrolling Interests
TemporaryEquityCarryingAmountIncludingPortionAttributableToNoncontrollingInterests
186200000 USD

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