2024 Q1 Form 10-K Financial Statement

#000135761524000016 Filed on February 20, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $1.818B $1.730B $6.956B
YoY Change 6.75% 7.59% 5.97%
Cost Of Revenue $1.570B $1.493B $5.979B
YoY Change 7.68% 6.49% 4.24%
Gross Profit $248.0M $237.0M $977.0M
YoY Change 1.22% 15.05% 18.0%
Gross Profit Margin 13.64% 13.7% 14.05%
Selling, General & Admin $121.0M $118.0M $488.0M
YoY Change -2.42% 12.38% 16.19%
% of Gross Profit 48.79% 49.79% 49.95%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $36.00M $37.00M $141.0M
YoY Change 0.0% -2.63% 2.92%
% of Gross Profit 14.52% 15.61% 14.43%
Operating Expenses $118.0M $119.0M $488.0M
YoY Change -4.84% 13.33% 16.19%
Operating Profit $130.0M $118.0M $448.0M
YoY Change -9.72% 16.83% 30.61%
Interest Expense -$1.000M $6.000M $115.0M
YoY Change -103.85% -220.0% 32.18%
% of Operating Profit -0.77% 5.08% 25.67%
Other Income/Expense, Net -$6.000M -$70.00M -$5.000M
YoY Change 200.0% -600.0% -141.67%
Pretax Income $129.0M $47.00M -$166.0M
YoY Change 11.21% -56.48% -158.45%
Income Tax $35.00M $26.00M $95.00M
% Of Pretax Income 27.13% 55.32%
Net Earnings $93.00M $21.00M -$265.0M
YoY Change 8.14% -77.42% -239.47%
Net Earnings / Revenue 5.12% 1.21% -3.81%
Basic Earnings Per Share $0.69 -$1.96
Diluted Earnings Per Share $0.69 $0.16 -$1.96
COMMON SHARES
Basic Shares Outstanding 135.1M shares 135.0M shares 135.0M shares
Diluted Shares Outstanding 135.0M shares 135.0M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $314.0M $304.0M $304.0M
YoY Change -24.52% -21.85% -21.85%
Cash & Equivalents $314.0M $304.0M $304.0M
Short-Term Investments
Other Short-Term Assets $211.0M $189.0M $156.0M
YoY Change 30.25% 15.24% 11.43%
Inventory
Prepaid Expenses $83.00M
Receivables $1.209B $1.158B $1.158B
Other Receivables $0.00 $33.00M $33.00M
Total Short-Term Assets $1.734B $1.651B $1.651B
YoY Change -9.31% -5.5% -5.5%
LONG-TERM ASSETS
Property, Plant & Equipment $387.0M $377.0M $377.0M
YoY Change 9.01% 8.96% 8.96%
Goodwill $2.110B $2.109B
YoY Change 0.72% 1.05%
Intangibles $605.0M $618.0M
YoY Change -5.76% -4.19%
Long-Term Investments $178.0M $206.0M $206.0M
YoY Change 3.49% 9.57% 9.57%
Other Assets $609.0M $365.0M $604.0M
YoY Change 107.85% 37.74% 15.27%
Total Long-Term Assets $3.889B $3.914B $3.914B
YoY Change 1.7% 2.49% 2.49%
TOTAL ASSETS
Total Short-Term Assets $1.734B $1.651B $1.651B
Total Long-Term Assets $3.889B $3.914B $3.914B
Total Assets $5.623B $5.565B $5.565B
YoY Change -1.97% -0.02% -0.02%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $669.0M $593.0M $593.0M
YoY Change -11.39% -6.91% -6.91%
Accrued Expenses $301.0M $429.0M $429.0M
YoY Change -9.34% 5.93% 5.93%
Deferred Revenue $348.0M $359.0M
YoY Change 23.4% 30.55%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $22.00M $31.00M $42.00M
YoY Change -94.01% -91.48% -88.74%
Total Short-Term Liabilities $1.579B $1.572B $1.572B
YoY Change -18.1% -13.67% -13.67%
LONG-TERM LIABILITIES
Long-Term Debt $1.842B $1.801B $1.811B
YoY Change 34.06% 30.89% 30.66%
Other Long-Term Liabilities $702.0M $290.0M $682.0M
YoY Change 145.45% 32.42% 7.4%
Total Long-Term Liabilities $2.544B $2.091B $2.493B
YoY Change 53.25% 31.1% 23.35%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.579B $1.572B $1.572B
Total Long-Term Liabilities $2.544B $2.091B $2.493B
Total Liabilities $4.215B $4.171B $4.182B
YoY Change 3.33% 6.02% 5.98%
SHAREHOLDERS EQUITY
Retained Earnings $1.145B $1.072B
YoY Change -22.53% -23.97%
Common Stock $0.00 $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.279B
YoY Change 11.9%
Treasury Stock Shares
Shareholders Equity $1.408B $1.383B $1.383B
YoY Change
Total Liabilities & Shareholders Equity $5.623B $5.565B $5.565B
YoY Change -1.97% -0.02% -0.02%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $93.00M $21.00M -$265.0M
YoY Change 8.14% -77.42% -239.47%
Depreciation, Depletion And Amortization $36.00M $37.00M $141.0M
YoY Change 0.0% -2.63% 2.92%
Cash From Operating Activities $91.00M $83.00M $331.0M
YoY Change 160.0% 38.33% -16.41%
INVESTING ACTIVITIES
Capital Expenditures $25.00M $20.00M $80.00M
YoY Change 31.58% -37.5% 12.68%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities $36.00M -$7.000M $11.00M
YoY Change -58.82% 266.67%
Cash From Investing Activities $11.00M -$27.00M -$70.00M
YoY Change -73.81% -44.9% -289.19%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $133.0M
YoY Change -32.83%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -91.00M -109.0M -$359.0M
YoY Change 68.52% 0.0% -10.03%
NET CHANGE
Cash From Operating Activities 91.00M 83.00M $331.0M
Cash From Investing Activities 11.00M -27.00M -$70.00M
Cash From Financing Activities -91.00M -109.0M -$359.0M
Net Change In Cash 11.00M -53.00M -$85.00M
YoY Change -59.26% -45.92% -547.37%
FREE CASH FLOW
Cash From Operating Activities $91.00M $83.00M $331.0M
Capital Expenditures $25.00M $20.00M $80.00M
Free Cash Flow $66.00M $63.00M $251.0M
YoY Change 312.5% 125.0% -22.77%

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<div style="text-align:justify;text-indent:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Basis of Presentation</span></div><div style="text-align:justify;text-indent:11.25pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On December 13, 2022, the Board of Directors approved a change in the fiscal year end from a calendar year ending on December 31 to a 52 – 53 week year ending on the Friday closest to December 31, effective as of the commencement of the Company's fiscal year on January 1, 2023. In a 52 week fiscal year, each of the Company’s quarterly periods will comprise 13 weeks. The additional week in a 53 week fiscal year is added to the fourth quarter, making such quarter consist of 14 weeks. The Company’s first 53 week fiscal year will occur in fiscal year 2024. The Company made the fiscal year change on a prospective basis and will not adjust operating results for prior periods. The change will impact the prior year comparability of each of the fiscal quarters and the annual period for the year ending December 29, 2023; however, the impact will not be material. The Company believes this change will improve comparability between periods by eliminating the year-over-year variability in calendar month productive days and provide a more consistent reporting cadence for operational leaders to aid in strategic decision making. </span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Due to this change in fiscal year, our fiscal year ended on December 29 in 2023 as compared to December 31 in 2022. The years ended December 29, 2023 and December 31, 2022 contained 363 days and 365 days, respectively. </span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As a result of our change in a fiscal year end, goodwill will be tested annually for possible impairment as of the first day of our fourth quarter each fiscal year, and on an interim basis when indicators of possible impairment exist.</span></div>
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<div style="text-align:justify;text-indent:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="text-align:justify;text-indent:11.25pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, the reported amounts of revenues and expenses for the periods covered and certain amounts disclosed in the notes to our consolidated financial statements. These estimates are based on information available through the date of the issuance of the financial statements and actual results could differ from those estimates. Areas requiring estimates and assumptions by our management include the following: </span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="padding-left:54pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">project revenues, costs and profits on our contracts</span></div><div style="padding-left:54pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">award fees, costs and profits on government services contracts</span></div><div style="padding-left:54pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">client claims and recoveries of costs from subcontractors, vendors and others</span></div><div style="padding-left:54pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">provisions for income taxes and related valuation allowances and tax uncertainties</span></div><div style="padding-left:54pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">evaluation of goodwill for impairment</span></div><div style="padding-left:54pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">evaluation of intangibles and long-lived assets for impairment</span></div><div style="padding-left:54pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">evaluation of equity method investments for impairment</span></div><div style="padding-left:54pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">valuation of pension obligations and pension assets</span></div><div style="padding-left:54pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">accruals for estimated liabilities, including litigation accruals</span></div>
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CY2023 us-gaap Concentration Risk Credit Risk
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<div style="text-align:justify;text-indent:11.25pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentration of Credit Risk </span></div><div style="text-align:justify;text-indent:11.25pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments which potentially subject our company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. Our cash is primarily held with major banks and financial institutions throughout the world. We believe the risk of any potential loss on deposits held in these institutions is minimal. </span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Contracts with clients usually contain standard provisions allowing the client to curtail or terminate contracts for convenience. Upon such a termination, we are generally entitled to recover costs incurred, settlement expenses and profit on work completed prior to termination and demobilization cost. </span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We have revenues and receivables from transactions with an external customer that amounts to 10% or more of our revenues (which are generally not collateralized). We generated significant revenues from transactions with the U.S. government and U.K. government within our GS business segment. No other customers represented 10% or more of consolidated revenues in any of the periods presented.</span></div>
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