2015 Q3 Form 10-Q Financial Statement

#000119312515370201 Filed on November 06, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2014 Q4 2014 Q3
Revenue $617.8M $601.5M $588.1M
YoY Change 5.05% 7.71% 9.95%
Cost Of Revenue $375.8M $359.2M $354.5M
YoY Change 6.02% 3.88% 7.65%
Gross Profit $242.0M $242.3M $233.6M
YoY Change 3.58% 13.98% 13.64%
Gross Profit Margin 39.17% 40.29% 39.73%
Selling, General & Admin $144.7M $165.0M $153.1M
YoY Change -5.5% 23.04% 30.89%
% of Gross Profit 59.8% 68.09% 65.55%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $20.60M $21.20M $20.80M
YoY Change -0.96% 14.59% 10.05%
% of Gross Profit 8.51% 8.75% 8.9%
Operating Expenses $144.7M $176.1M $153.1M
YoY Change -5.5% 24.63% 30.89%
Operating Profit $87.34M $70.87M $72.87M
YoY Change 19.87% -1.07% -15.23%
Interest Expense -$2.100M -$13.70M -$12.00M
YoY Change -82.5% 34.31% -269.01%
% of Operating Profit -2.4% -19.33% -16.47%
Other Income/Expense, Net -$1.868M $0.00 -$6.439M
YoY Change -70.99% -100.0% 86.42%
Pretax Income $86.25M $62.79M $61.79M
YoY Change 39.59% 0.35% -33.81%
Income Tax $18.20M $12.20M $15.12M
% Of Pretax Income 21.1% 19.43% 24.48%
Net Earnings $68.05M $45.75M $46.65M
YoY Change 45.86% -6.33% -33.6%
Net Earnings / Revenue 11.01% 7.61% 7.93%
Basic Earnings Per Share $0.32 $0.20 $0.22
Diluted Earnings Per Share $0.31 $0.21 $0.21
COMMON SHARES
Basic Shares Outstanding 215.3M 217.3M shares 216.5M shares
Diluted Shares Outstanding 217.6M 221.4M shares 220.5M shares

Balance Sheet

Concept 2015 Q3 2014 Q4 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $469.0M $461.8M $424.2M
YoY Change 10.56% -19.17% -14.99%
Cash & Equivalents $467.5M $461.8M $399.2M
Short-Term Investments $251.6M $130.6M $118.8M
Other Short-Term Assets $10.60M $7.772M $10.83M
YoY Change -2.14% 50.85% -95.51%
Inventory
Prepaid Expenses $18.02M $12.95M
Receivables $549.4M $525.8M $533.8M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.236B $1.189B $1.206B
YoY Change 2.44% -6.87% -0.91%
LONG-TERM ASSETS
Property, Plant & Equipment $163.8M $175.9M $176.2M
YoY Change -7.0% 1.58% 4.63%
Goodwill $1.043B $1.057B $1.056B
YoY Change -1.27% 10.84% 11.11%
Intangibles
YoY Change
Long-Term Investments $5.700M $500.0K $500.0K
YoY Change 1040.0% 25.0% 66.67%
Other Assets $162.8M $146.7M $123.8M
YoY Change 31.48% 50.68% 26.3%
Total Long-Term Assets $1.553B $1.554B $1.533B
YoY Change 1.31% 9.96% 7.45%
TOTAL ASSETS
Total Short-Term Assets $1.236B $1.189B $1.206B
Total Long-Term Assets $1.553B $1.554B $1.533B
Total Assets $2.789B $2.743B $2.739B
YoY Change 1.81% 1.98% 3.6%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $15.29M $15.54M $17.22M
YoY Change -11.19% -15.58% 12.66%
Accrued Expenses $115.7M $114.8M $107.3M
YoY Change 7.81% 15.94% -63.09%
Deferred Revenue
YoY Change
Short-Term Debt $21.50M $135.0M $165.0M
YoY Change -86.97%
Long-Term Debt Due $39.12M $4.288M $4.281M
YoY Change 813.85% 0.59% 0.59%
Total Short-Term Liabilities $586.0M $622.1M $671.5M
YoY Change -12.73% 34.75% 39.4%
LONG-TERM LIABILITIES
Long-Term Debt $747.1M $649.3M $650.4M
YoY Change 14.87% -0.66% -0.65%
Other Long-Term Liabilities $168.3M $179.3M $161.3M
YoY Change 4.33% -26.18% -45.86%
Total Long-Term Liabilities $915.4M $828.6M $811.7M
YoY Change 12.78% -7.57% -14.79%
TOTAL LIABILITIES
Total Short-Term Liabilities $586.0M $622.1M $671.5M
Total Long-Term Liabilities $915.4M $828.6M $811.7M
Total Liabilities $1.508B $1.457B $1.491B
YoY Change 1.13% 6.75% 3.34%
SHAREHOLDERS EQUITY
Retained Earnings $415.0M $398.7M $353.0M
YoY Change 17.58% -22.08% -23.74%
Common Stock $1.325B $1.299B $2.162M
YoY Change 61190.1% 56130.04% -6.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.281B $1.285B $1.249B
YoY Change
Total Liabilities & Shareholders Equity $2.789B $2.743B $2.739B
YoY Change 1.81% 1.98% 3.6%

Cashflow Statement

Concept 2015 Q3 2014 Q4 2014 Q3
OPERATING ACTIVITIES
Net Income $68.05M $45.75M $46.65M
YoY Change 45.86% -6.33% -33.6%
Depreciation, Depletion And Amortization $20.60M $21.20M $20.80M
YoY Change -0.96% 14.59% 10.05%
Cash From Operating Activities $139.0M $93.00M $85.70M
YoY Change 62.19% 18.62% -31.71%
INVESTING ACTIVITIES
Capital Expenditures -$14.70M -$14.40M -$18.50M
YoY Change -20.54% 22.03% 60.87%
Acquisitions
YoY Change
Other Investing Activities -$6.600M $18.00M -$24.60M
YoY Change -73.17% -14.29% 564.86%
Cash From Investing Activities -$21.40M $3.500M -$43.10M
YoY Change -50.35% -62.37% 183.55%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $77.64M $302.6M
YoY Change -74.35%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -86.10M -24.80M -10.80M
YoY Change 697.22% -616.67% -90.33%
NET CHANGE
Cash From Operating Activities 139.0M 93.00M 85.70M
Cash From Investing Activities -21.40M 3.500M -43.10M
Cash From Financing Activities -86.10M -24.80M -10.80M
Net Change In Cash 31.50M 71.70M 31.80M
YoY Change -0.94% -22.49% -2371.43%
FREE CASH FLOW
Cash From Operating Activities $139.0M $93.00M $85.70M
Capital Expenditures -$14.70M -$14.40M -$18.50M
Free Cash Flow $153.7M $107.4M $104.2M
YoY Change 47.5% 19.07% -23.94%

Facts In Submission

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<div> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2"><i>(b) Use of estimates</i></font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, the carrying amount of property, plant and equipment, intangibles and goodwill, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management&#x2019;s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company&#x2019;s consolidated financial statements.</font></p> </div>
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<div> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2"><b>1. Organization</b></font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">The Company is a former division of the General Electric Company and has served GE businesses since 1997.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">Prior to December&#xA0;30, 2004, the business of the Company was conducted through various entities and divisions of GE. On December&#xA0;30, 2004, in a series of transactions referred to as the &#x201C;2004 Reorganization,&#x201D; GE transferred such operations to the Company. In August 2007, the Company completed an initial public offering of its common shares, pursuant to which the Company and certain of its shareholders each sold 17,647,059 common shares. On March&#xA0;24, 2010, the Company completed a secondary offering of its common shares pursuant to which GE&#x2019;s shareholding in the Company decreased to 9.1% and it ceased to be a significant shareholder, although it continued to be a related party. During the year ended December&#xA0;31, 2012, GE&#x2019;s shareholding declined to less than 5.0%, as a result of which GE is no longer considered a related party.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2"><i>2012 Recapitalization</i></font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">On August&#xA0;1, 2012, affiliates of General Atlantic (&#x201C;GA&#x201D;) and Oak Hill Capital Partners (&#x201C;OH&#x201D;) entered into an agreement to sell 67,750,678 common shares of the Company to Glory Investments A Limited, formerly known as South Asia Private Investments, an affiliate of Bain Capital Investors, LLC (&#x201C;Bain Capital&#x201D;). On October&#xA0;25, 2012, Bain Capital and its affiliated assignees, along with two additional co-investors (RGIP, LLC, an investor in certain investment funds which are affiliated with Bain Capital, and Twickenham Investment Private Limited, an affiliate of the Government of Singapore Investment Corporation Private Limited), completed the purchase of the Company&#x2019;s common shares covered by the share purchase agreement.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">On December&#xA0;14, 2012, a secondary offering of the Company&#x2019;s common shares by affiliates of GA and OH was completed. Upon the completion of the secondary offering, GA and OH each owned approximately 2.4% of the Company&#x2019;s common shares outstanding, and they ceased to be significant shareholders and related parties.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">On August&#xA0;30, 2012, the Company terminated its previous credit facility of $380,000 and entered into a new credit facility of $925,000. Net proceeds from the credit facility along with cash on hand were partially used to fund the payment of a special cash dividend in the amount of $2.24 per share in the third quarter of 2012. The share purchase transaction described above, the entry into a new credit facility and the payment of the special cash dividend are referred to collectively as the &#x201C;2012 Recapitalization.&#x201D; The 2012 credit facility was amended in 2013, and in June 2015 the Company entered into a new credit facility as described in Note 12.</font></p> </div>
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68050000
CY2015Q3 us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
4210000
CY2015Q3 us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Before Tax
OtherComprehensiveIncomeLossDerivativesQualifyingAsHedgesBeforeTax
66000
CY2015Q3 us-gaap Defined Benefit Plan Expected Return On Plan Assets
DefinedBenefitPlanExpectedReturnOnPlanAssets
521000
CY2015Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
89685000
CY2015Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
999000
CY2015Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
87343000
CY2015Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesTax
-6061000
CY2015Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
86253000
CY2015Q3 us-gaap Revenues
Revenues
617831000
CY2015Q3 us-gaap Derivative Instruments Gain Loss Reclassified From Accumulated Oci Into Income Effective Portion Net
DerivativeInstrumentsGainLossReclassifiedFromAccumulatedOCIIntoIncomeEffectivePortionNet
-16096000
CY2015Q3 us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax
OtherComprehensiveIncomeLossDerivativesQualifyingAsHedgesNetOfTax
-507000
CY2015Q3 us-gaap Profit Loss
ProfitLoss
68050000
CY2015Q3 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
-3432000
CY2015Q3 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-1868000
CY2015Q3 us-gaap Gain Loss On Foreign Currency Derivative Instruments Not Designated As Hedging Instruments
GainLossOnForeignCurrencyDerivativeInstrumentsNotDesignatedAsHedgingInstruments
723000
CY2015Q3 us-gaap Derivative Instruments Gain Loss Recognized In Income Ineffective Portion And Amount Excluded From Effectiveness Testing Net
DerivativeInstrumentsGainLossRecognizedInIncomeIneffectivePortionAndAmountExcludedFromEffectivenessTestingNet
0
CY2015Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Before Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodBeforeTax
-16030000
CY2015Q3 us-gaap Net Income Loss
NetIncomeLoss
68050000
CY2015Q3 us-gaap Gross Profit
GrossProfit
242001000
CY2015Q3 us-gaap Defined Benefit Plan Amortization Of Gains Losses
DefinedBenefitPlanAmortizationOfGainsLosses
-61000
CY2015Q3 us-gaap Other Operating Income Expense Net
OtherOperatingIncomeExpenseNet
-2716000
CY2015Q3 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
77636000
CY2015Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
-10542000
CY2015Q3 us-gaap Interest And Debt Expense
InterestAndDebtExpense
5210000
CY2015Q3 us-gaap Defined Benefit Plan Service Cost
DefinedBenefitPlanServiceCost
1327000
CY2015Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
7219000
CY2015Q3 us-gaap Cost Of Revenue
CostOfRevenue
375830000
CY2015Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
18203000
CY2015Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesBeforeTax
-16096000
CY2015Q3 us-gaap Asset Impairment Charges
AssetImpairmentCharges
10714000
CY2015Q3 us-gaap Defined Benefit Plan Net Periodic Benefit Cost
DefinedBenefitPlanNetPeriodicBenefitCost
1527000
CY2015Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesNetOfTax
-10035000
CY2015Q3 us-gaap Defined Benefit Plan Interest Cost
DefinedBenefitPlanInterestCost
660000
CY2015Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
6124000
CY2015Q3 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
11591000
CY2015Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
144723000
CY2015Q3 us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Tax
OtherComprehensiveIncomeLossDerivativesQualifyingAsHedgesTax
573000
CY2015Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodTax
-5488000
CY2015Q3 us-gaap Cost Of Services
CostOfServices
375830000
CY2015Q3 g Business Combination Contingent And Deferred Consideration Arrangements Change In Amount Of Contingent And Deferred Consideration Liability
BusinessCombinationContingentAndDeferredConsiderationArrangementsChangeInAmountOfContingentAndDeferredConsiderationLiability
7342000
CY2015Q3 g Investment Interest Income
InvestmentInterestIncome
2343000
CY2015Q3 g Other Operating Income Expense
OtherOperatingIncomeExpense
656000
CY2015Q3 g Share Repurchases Price Paid Per Share
ShareRepurchasesPricePaidPerShare
22.30

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