2023 Q4 Form 10-K Financial Statement

#000179466924000007 Filed on February 29, 2024

View on sec.gov

Income Statement

Concept 2023 Q4 2023
Revenue $705.4M $2.565B
YoY Change 31.19% 28.65%
Cost Of Revenue $510.2M $1.877B
YoY Change 29.62% 23.21%
Gross Profit $195.2M $687.8M
YoY Change 35.46% 46.28%
Gross Profit Margin 27.67% 26.82%
Selling, General & Admin $105.0M $377.5M
YoY Change 36.72% 33.02%
% of Gross Profit 53.79% 54.89%
Research & Development $1.200M
YoY Change 140.0%
% of Gross Profit 0.17%
Depreciation & Amortization $61.90M $214.6M
YoY Change 30.32% 43.93%
% of Gross Profit 31.71% 31.2%
Operating Expenses $147.6M $1.200M
YoY Change 33.7% 140.0%
Operating Profit $47.60M $114.8M
YoY Change 41.25% 21.22%
Interest Expense -$1.400M $32.10M
YoY Change -110.69% -1.23%
% of Operating Profit -2.94% 27.96%
Other Income/Expense, Net -$4.200M -$3.900M
YoY Change 950.0% -880.0%
Pretax Income $21.80M $119.5M
YoY Change -48.95% 37.51%
Income Tax $2.600M -$3.400M
% Of Pretax Income 11.93% -2.85%
Net Earnings $13.70M $86.20M
YoY Change -53.08% 14.78%
Net Earnings / Revenue 1.94% 3.36%
Basic Earnings Per Share
Diluted Earnings Per Share $0.21 $1.41
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $455.0M $455.0M
YoY Change -41.4% -41.4%
Cash & Equivalents $455.0M
Short-Term Investments
Other Short-Term Assets $438.1M $438.1M
YoY Change 36408.33% 3145.19%
Inventory $3.400M $3.400M
Prepaid Expenses
Receivables $256.8M $256.8M
Other Receivables $0.00 $0.00
Total Short-Term Assets $1.153B $1.153B
YoY Change 16.3% 16.3%
LONG-TERM ASSETS
Property, Plant & Equipment $28.60M $174.5M
YoY Change 28.25% 42.45%
Goodwill $1.111B
YoY Change 51.2%
Intangibles
YoY Change
Long-Term Investments $62.20M $62.20M
YoY Change 32.06% 32.06%
Other Assets $18.70M $56.40M
YoY Change 71.56% 417.43%
Total Long-Term Assets $2.235B $2.235B
YoY Change 43.03% 43.03%
TOTAL ASSETS
Total Short-Term Assets $1.153B $1.153B
Total Long-Term Assets $2.235B $2.235B
Total Assets $3.388B $3.388B
YoY Change 32.65% 32.65%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $204.6M $204.6M
YoY Change 22.74% 22.74%
Accrued Expenses $91.70M $91.70M
YoY Change 1771.43% 49.35%
Deferred Revenue $20.60M
YoY Change 26.38%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $704.4M $704.4M
YoY Change 162.54% 162.54%
LONG-TERM LIABILITIES
Long-Term Debt $1.750B $1.750B
YoY Change 0.48% 0.48%
Other Long-Term Liabilities $17.30M $36.10M
YoY Change -34.72% -19.06%
Total Long-Term Liabilities $1.768B $1.786B
YoY Change -2.08% -0.01%
TOTAL LIABILITIES
Total Short-Term Liabilities $704.4M $704.4M
Total Long-Term Liabilities $1.768B $1.786B
Total Liabilities $2.519B $2.735B
YoY Change 21.51% 23.92%
SHAREHOLDERS EQUITY
Retained Earnings -$346.7M
YoY Change -4.65%
Common Stock $985.9M
YoY Change 40.32%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $653.3M $653.3M
YoY Change
Total Liabilities & Shareholders Equity $3.388B $3.388B
YoY Change 32.65% 32.65%

Cashflow Statement

Concept 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $13.70M $86.20M
YoY Change -53.08% 14.78%
Depreciation, Depletion And Amortization $61.90M $214.6M
YoY Change 30.32% 43.93%
Cash From Operating Activities $105.3M $388.3M
YoY Change -24.52% 40.99%
INVESTING ACTIVITIES
Capital Expenditures $32.30M $13.70M
YoY Change 22.35% 71.25%
Acquisitions $169.7M
YoY Change 25.42%
Other Investing Activities -$118.5M -$164.3M
YoY Change 1501.35% -60.15%
Cash From Investing Activities -$150.8M -$301.9M
YoY Change 346.15% -41.58%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $105.4M
YoY Change -43.3%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -27.90M -$152.2M
YoY Change 771.88% -29.08%
NET CHANGE
Cash From Operating Activities 105.3M $388.3M
Cash From Investing Activities -150.8M -$301.9M
Cash From Financing Activities -27.90M -$152.2M
Net Change In Cash -73.40M -$54.70M
YoY Change -171.61% -87.98%
FREE CASH FLOW
Cash From Operating Activities $105.3M $388.3M
Capital Expenditures $32.30M $13.70M
Free Cash Flow $73.00M $374.6M
YoY Change -35.46% 40.09%

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<div style="margin-top:12pt;padding-left:18pt;text-align:justify"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Change in Presentation of Consolidated Balance Sheets</span></div><div style="margin-top:6pt;padding-left:18pt;text-align:justify"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain prior year balances have been adjusted to present “Restricted cash”</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> on its own line item rather than within “Cash and cash equivalents” on the Company’s Consolidated Balance Sheets to conform to the current period presentation.</span></div><div style="margin-top:12pt;padding-left:18pt;text-align:justify"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Change in Presentation of Consolidated Statement of Operations</span></div><div style="margin-top:6pt;padding-left:18pt;text-align:justify"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain prior year balances have been adjusted to present “Loss on extinguishment of debt”</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> within “Other (expense) income, net” on the Company’s Consolidated Statement of Operations to conform to the current period presentation.</span></div>
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<div style="margin-top:18pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Use of Estimates</span></div>The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated financial statements and accompanying notes. Significant estimates inherent in the preparation of the accompanying consolidated financial statements include estimates of fair value of acquired assets and liabilities through business combinations, fair value of contingent liabilities related to earnout payments, deferred income tax valuation allowances, amounts associated with the Company’s tax receivable agreement with Rook and certain affiliates of Searchlight Capital Partners (together, the “Continuing Equity Owners”), allowance for doubtful accounts, income taxes, and the fair value of investments. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates.
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<div style="margin-top:18pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentration Risk</span></div><div style="margin-top:6pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s merchant processing activity in the U.S. and Canada is facilitated by one vendor. The Company believes that this vendor maintains appropriate backup systems and alternative arrangements to avoid a significant disruption of the processing in the event of an unforeseen event.</span></div>A majority of the Company’s revenue is derived from the processing of card transactions. Because the Company is not a “member bank” in the U.S. and Canada, in order to process these bank card transactions, the Company has entered into a sponsorship agreement with a member bank. The agreement with the bank sponsor requires, among other things, that the Company abide by the by-laws and regulations of the credit card companies. If the Company breaches the sponsorship agreement, the bank sponsor may terminate the agreement and, under the terms of the agreement, the Company would have 180 days to identify an alternative bank sponsor.
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