2024 Q2 Form 10-K Financial Statement

#000084939924000036 Filed on May 16, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2024
Revenue $965.0M $967.0M $3.812B
YoY Change 2.01% 2.11% 14.2%
Cost Of Revenue $190.0M $190.0M $731.0M
YoY Change 6.15% 0.0% 24.11%
Gross Profit $775.0M $777.0M $3.081B
YoY Change 1.04% 2.64% 12.08%
Gross Profit Margin 80.31% 80.35% 80.82%
Selling, General & Admin $235.0M $226.0M $1.337B
YoY Change -0.84% -4.64% 38.12%
% of Gross Profit 30.32% 29.09% 43.4%
Research & Development $81.00M $80.00M $332.0M
YoY Change -10.0% -9.09% 6.07%
% of Gross Profit 10.45% 10.3% 10.78%
Depreciation & Amortization $106.0M $111.0M $485.0M
YoY Change -15.2% -11.9% 47.42%
% of Gross Profit 13.68% 14.29% 15.74%
Operating Expenses $358.0M $356.0M $1.902B
YoY Change -11.6% -7.77% 24.97%
Operating Profit $417.0M $421.0M $1.179B
YoY Change 15.19% 13.48% -3.91%
Interest Expense -$141.0M -$161.0M -$669.0M
YoY Change -13.5% -1.23% 69.8%
% of Operating Profit -33.81% -38.24% -56.74%
Other Income/Expense, Net $12.00M -$24.00M $6.000M
YoY Change 0.0% -20.0% -127.27%
Pretax Income $276.0M $215.0M $459.0M
YoY Change 35.29% 31.1% -42.91%
Income Tax $95.00M $81.00M -$157.0M
% Of Pretax Income 34.42% 37.67% -34.2%
Net Earnings $181.0M $134.0M $616.0M
YoY Change -4.23% -85.36% -54.34%
Net Earnings / Revenue 18.76% 13.86% 16.16%
Basic Earnings Per Share $0.29 $0.97
Diluted Earnings Per Share $0.29 $0.21 $0.96
COMMON SHARES
Basic Shares Outstanding 626.1M shares 636.9M shares 637.0M shares
Diluted Shares Outstanding 627.0M shares 642.0M shares

Balance Sheet

Concept 2024 Q2 2024 Q1 2024
SHORT-TERM ASSETS
Cash & Short-Term Investments $644.0M $846.0M $846.0M
YoY Change 3.37% 12.8% 12.8%
Cash & Equivalents $644.0M $846.0M $438.0M
Short-Term Investments
Other Short-Term Assets $300.0M $334.0M $174.0M
YoY Change 1.01% 17.61% -1.14%
Inventory
Prepaid Expenses $143.0M $142.0M
Receivables $152.0M $163.0M $163.0M
Other Receivables $140.0M $175.0M $175.0M
Total Short-Term Assets $1.111B $1.358B $1.358B
YoY Change 2.21% 10.14% 10.14%
LONG-TERM ASSETS
Property, Plant & Equipment $69.00M $72.00M $117.0M
YoY Change -5.48% -5.26% -1.68%
Goodwill $10.21B $10.21B
YoY Change -0.35% -0.07%
Intangibles $2.537B $2.638B
YoY Change -14.92% -14.82%
Long-Term Investments $136.0M $136.0M $136.0M
YoY Change -22.73% -22.73% -22.73%
Other Assets $1.506B $1.494B $1.302B
YoY Change 10.25% 16.63% 198.62%
Total Long-Term Assets $14.32B $14.41B $14.41B
YoY Change -2.61% -2.04% -2.04%
TOTAL ASSETS
Total Short-Term Assets $1.111B $1.358B $1.358B
Total Long-Term Assets $14.32B $14.41B $14.41B
Total Assets $15.43B $15.77B $15.77B
YoY Change -2.27% -1.1% -1.1%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $83.00M $66.00M $66.00M
YoY Change 27.69% -14.29% -14.29%
Accrued Expenses $306.0M $396.0M $396.0M
YoY Change -42.16% -39.91% -39.91%
Deferred Revenue $1.745B $1.730B
YoY Change 6.99% 1.29%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $1.332B $175.0M $175.0M
YoY Change 471.67% -24.89% -24.89%
Total Short-Term Liabilities $3.752B $2.648B $2.648B
YoY Change 36.54% -7.06% -7.06%
LONG-TERM LIABILITIES
Long-Term Debt $7.190B $8.429B $8.429B
YoY Change -22.91% -11.54% -11.54%
Other Long-Term Liabilities $685.0M $671.0M $2.237B
YoY Change 1456.82% 1460.47% 129.67%
Total Long-Term Liabilities $7.875B $9.100B $10.67B
YoY Change -15.96% -4.93% 1.55%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.752B $2.648B $2.648B
Total Long-Term Liabilities $7.875B $9.100B $10.67B
Total Liabilities $13.46B $13.58B $13.58B
YoY Change 0.06% -1.25% -1.25%
SHAREHOLDERS EQUITY
Retained Earnings $5.000M -$41.00M
YoY Change -101.26% -92.99%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.970B $2.197B $2.197B
YoY Change
Total Liabilities & Shareholders Equity $15.43B $15.77B $15.77B
YoY Change -2.27% -1.1% -1.1%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2024
OPERATING ACTIVITIES
Net Income $181.0M $134.0M $616.0M
YoY Change -4.23% -85.36% -54.34%
Depreciation, Depletion And Amortization $106.0M $111.0M $485.0M
YoY Change -15.2% -11.9% 47.42%
Cash From Operating Activities $264.0M $1.398B $2.064B
YoY Change 16.81% 331.48% 172.66%
INVESTING ACTIVITIES
Capital Expenditures $2.000M $3.000M $20.00M
YoY Change -50.0% 200.0% 233.33%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities $0.00 $1.000M $22.00M
YoY Change -100.0% -1200.0%
Cash From Investing Activities -$2.000M -$2.000M $2.000M
YoY Change -66.67% 100.0% -100.03%
FINANCING ACTIVITIES
Cash Dividend Paid $82.00M $323.0M
YoY Change -1.2% 2.87%
Common Stock Issuance & Retirement, Net -$429.0M
YoY Change -147.46%
Debt Paid & Issued, Net $88.00M
YoY Change -57.69%
Cash From Financing Activities -$466.0M -1.031B -1.961B
YoY Change 33.14% 169.19% -141.89%
NET CHANGE
Cash From Operating Activities $264.0M 1.398B 2.064B
Cash From Investing Activities -$2.000M -2.000M 2.000M
Cash From Financing Activities -$466.0M -1.031B -1.961B
Net Change In Cash -$202.0M 365.0M 105.0M
YoY Change 59.06% -708.33% -109.23%
FREE CASH FLOW
Cash From Operating Activities $264.0M $1.398B $2.064B
Capital Expenditures $2.000M $3.000M $20.00M
Free Cash Flow $262.0M $1.395B $2.044B
YoY Change 18.02% 331.89% 172.17%

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<div style="margin-bottom:5pt;margin-top:5pt;text-indent:13.5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:120%">We have a 52/53-week fiscal year ending on the Friday closest to March 31. Fiscal 2024, 2023 and 2022 in this report refers to fiscal years ended March 29, 2024, March 31, 2023 and April 1, 2022, respectively, each of which was a 52-week year.</span></div>
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<div style="margin-bottom:5pt;margin-top:5pt;text-indent:13.5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:120%">The preparation of Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. Such estimates include, but are not limited to, valuation of business combinations including acquired intangible assets and goodwill, loss contingencies, the recognition and measurement of current and deferred income taxes, including assessing of unrecognized tax benefits, and valuation of assets and liabilities. On an ongoing basis, management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Third-party valuation specialists are also utilized for certain estimates. Actual results could differ from such estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment as a result of macroeconomic factors such as inflation, fluctuations in foreign currency exchange rates relative to the U.S. dollars, our reporting currency, changes in interest rates, Russia’s invasion of Ukraine, and the Israel-Hamas conflict, and such differences may be material to the Consolidated Financial Statements.</span></div>
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<div style="margin-bottom:5pt;margin-top:5pt;text-indent:13.5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:120%">A significant portion of our revenue is derived from international sales. Fluctuations of the U.S. dollar against foreign currencies, changes in local regulatory or economic conditions, or piracy could adversely affect our operating results.</span></div>Financial instruments that potentially subject us to concentrations of risk consist principally of cash and cash equivalents and trade accounts receivable. Our investment policy limits the amount of credit risk exposure to any one issuer and to any one country. A majority of our trade receivables are derived from sales to E-commerce partners and retailers. The credit risk in our trade accounts receivable is substantially mitigated by our credit evaluation process, reasonably short collection terms and the geographical dispersion of sales transactions.
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