2024 Q1 Form 10-K Financial Statement

#000182087224000005 Filed on March 13, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $610.0M $549.0M $2.290B
YoY Change 5.54% 4.17% 23.72%
Cost Of Revenue $238.0M $958.0M
YoY Change -2.06% 15.14%
Gross Profit $311.0M $1.332B
YoY Change 9.51% 30.72%
Gross Profit Margin 56.65% 58.17%
Selling, General & Admin $185.0M $259.0M $699.0M
YoY Change 3.35% -4.78% -32.66%
% of Gross Profit 83.28% 52.48%
Research & Development $108.0M $405.0M
YoY Change 10.2% 4.38%
% of Gross Profit 30.41%
Depreciation & Amortization $47.00M $49.00M $194.0M
YoY Change 2.17% 2.08% 6.59%
% of Gross Profit 15.76% 14.56%
Operating Expenses $594.0M $308.0M $2.298B
YoY Change 1.19% -3.75% 88.36%
Operating Profit $16.00M $3.000M -$8.000M
YoY Change -277.78% -108.33% -96.02%
Interest Expense $33.00M -$46.00M $141.0M
YoY Change -2.94% -9.8% -256.67%
% of Operating Profit 206.25% -1533.33%
Other Income/Expense, Net $7.000M $0.00 -$10.00M
YoY Change 40.0% -100.0% -1100.0%
Pretax Income $8.000M -$43.00M -$145.0M
YoY Change -122.86% -49.41% -49.48%
Income Tax $27.00M $3.000M -$9.000M
% Of Pretax Income 337.5%
Net Earnings -$19.00M -$47.00M -$136.0M
YoY Change -29.63% 80.77% 444.0%
Net Earnings / Revenue -3.11% -8.56% -5.94%
Basic Earnings Per Share -$0.04 -$0.25
Diluted Earnings Per Share -$0.04 -$0.10 -$0.30
COMMON SHARES
Basic Shares Outstanding 472.6M shares 467.0M shares 251.6M shares
Diluted Shares Outstanding 461.4M shares 458.1M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $476.0M $476.0M
YoY Change 57.1% 57.1%
Cash & Equivalents $475.0M $476.0M $476.0M
Short-Term Investments
Other Short-Term Assets $94.00M $94.00M
YoY Change -27.69% -27.69%
Inventory
Prepaid Expenses
Receivables $812.0M $726.0M $726.0M
Other Receivables $37.00M $42.00M $64.00M
Total Short-Term Assets $1.476B $1.360B $1.360B
YoY Change 1.79% 10.21% 10.21%
LONG-TERM ASSETS
Property, Plant & Equipment $232.0M $282.0M $282.0M
YoY Change 1.75% 2.17% 2.17%
Goodwill $1.206B $1.212B
YoY Change 0.67% 2.02%
Intangibles $528.0M $552.0M
YoY Change -14.29% -13.21%
Long-Term Investments $13.00M $14.00M $14.00M
YoY Change -7.14% 0.0% 0.0%
Other Assets $64.00M $50.00M $331.0M
YoY Change 45.45% -86.84% -12.89%
Total Long-Term Assets $2.359B $2.391B $2.391B
YoY Change -5.6% -4.13% -4.13%
TOTAL ASSETS
Total Short-Term Assets $1.476B $1.360B $1.360B
Total Long-Term Assets $2.359B $2.391B $2.391B
Total Assets $3.835B $3.751B $3.751B
YoY Change -2.89% 0.62% 0.62%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $386.0M $302.0M $302.0M
YoY Change 10.29% 19.37% 19.37%
Accrued Expenses $391.0M $391.0M
YoY Change -16.63% -16.63%
Deferred Revenue $30.00M $19.00M
YoY Change 7.14% 0.0%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $8.000M $7.000M $7.000M
YoY Change 100.0% 133.33% 133.33%
Total Short-Term Liabilities $982.0M $831.0M $831.0M
YoY Change 11.34% 7.5% 7.5%
LONG-TERM LIABILITIES
Long-Term Debt $1.355B $1.355B $1.355B
YoY Change 0.3% 11.16% 11.16%
Other Long-Term Liabilities $28.00M $33.00M $348.0M
YoY Change -44.0% -90.32% 2.05%
Total Long-Term Liabilities $1.383B $1.388B $1.703B
YoY Change -1.28% -11.03% 9.17%
TOTAL LIABILITIES
Total Short-Term Liabilities $982.0M $831.0M $831.0M
Total Long-Term Liabilities $1.383B $1.388B $1.703B
Total Liabilities $2.661B $2.539B $2.543B
YoY Change 2.46% -29.0% -28.89%
SHAREHOLDERS EQUITY
Retained Earnings -$1.456B -$1.437B
YoY Change 722.6% 721.14%
Common Stock $0.00 $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $0.00
YoY Change
Treasury Stock Shares
Shareholders Equity $1.171B $1.208B $1.208B
YoY Change
Total Liabilities & Shareholders Equity $3.835B $3.751B $3.751B
YoY Change -2.89% 0.62% 0.62%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$19.00M -$47.00M -$136.0M
YoY Change -29.63% 80.77% 444.0%
Depreciation, Depletion And Amortization $47.00M $49.00M $194.0M
YoY Change 2.17% 2.08% 6.59%
Cash From Operating Activities $49.00M $58.00M $162.0M
YoY Change -163.64% -1550.0% -141.12%
INVESTING ACTIVITIES
Capital Expenditures $25.00M $26.00M $113.0M
YoY Change -21.88% 23.81% 20.21%
Acquisitions
YoY Change
Other Investing Activities $6.000M
YoY Change -700.0%
Cash From Investing Activities -$25.00M -$26.00M -$119.0M
YoY Change -21.88% 18.18% 25.26%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $1.000M $3.000M
YoY Change 0.0% 0.0%
Cash From Financing Activities -$10.00M -1.000M $120.0M
YoY Change -108.2% 0.0% -58.9%
NET CHANGE
Cash From Operating Activities $49.00M 58.00M $162.0M
Cash From Investing Activities -$25.00M -26.00M -$119.0M
Cash From Financing Activities -$10.00M -1.000M $120.0M
Net Change In Cash $9.000M 31.00M $173.0M
YoY Change -47.06% -214.81% -187.82%
FREE CASH FLOW
Cash From Operating Activities $49.00M $58.00M $162.0M
Capital Expenditures $25.00M $26.00M $113.0M
Free Cash Flow $24.00M $32.00M $49.00M
YoY Change -122.02% -228.0% -110.04%

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<div style="margin-top:12pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:115%">Use of Estimates</span></div><div style="margin-top:12pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%">The preparation of consolidated financial statements in conformity with U.S. GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures in the </span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%">consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, supplier revenue, allowance for credit losses, depreciable lives of property and equipment, acquisition purchase price allocations including valuation of acquired intangible assets and goodwill and contingent consideration, valuation of operating lease right-of-use (“ROU”) assets, impairment of goodwill, other intangible assets, long-lived assets, capitalized client incentives and investments in equity method investments, valuation allowances on deferred income taxes, valuation of pensions, interest rate swaps and earnout shares and accrual of contingent liabilities. Actual results could differ materially from those estimates.</span></div>
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<div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:115%">Certain Risks and Concentrations</span></div><div style="margin-top:12pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash, cash equivalents and restricted cash and accounts receivable.</span></div><div style="margin-top:12pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%">The Company maintains cash, cash equivalents and restricted cash balances with financial institutions that are in excess of Federal Deposit Insurance Corporation (or equivalent) insurance limits. The Company’s cash, cash equivalents and restricted cash are primarily composed of current account balances in banks, are mainly non-interest bearing and are primarily denominated in U.S. dollar, British pound sterling and Euro currencies. As of December 31, 2023, approximately 33% of our cash, cash equivalents and restricted cash balance is with a single bank.</span></div><div style="margin-top:12pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Concentrations of credit risk associated with accounts receivable are considered minimal due to the Company’s diverse customer base spread across different countries.</span></div>
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