2019 Q1 Form 10-Q Financial Statement

#000008136219000006 Filed on May 02, 2019

View on sec.gov

Income Statement

Concept 2019 Q1 2018 Q1
Revenue $211.2M $212.1M
YoY Change -0.4% 8.8%
Cost Of Revenue $135.4M $136.6M
YoY Change -0.85% 10.15%
Gross Profit $75.77M $75.45M
YoY Change 0.42% 6.43%
Gross Profit Margin 35.87% 35.58%
Selling, General & Admin $51.46M $50.01M
YoY Change 2.9% 4.06%
% of Gross Profit 67.91% 66.28%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $4.859M $3.194M
YoY Change 52.13% 1.17%
% of Gross Profit 6.41% 4.23%
Operating Expenses $51.46M $50.01M
YoY Change 2.9% 4.06%
Operating Profit $19.83M $20.23M
YoY Change -1.99% 47.05%
Interest Expense $1.214M $1.692M
YoY Change -28.25% 157.93%
% of Operating Profit 6.12% 8.36%
Other Income/Expense, Net -$635.0K -$369.0K
YoY Change 72.09% 251.43%
Pretax Income $18.42M $18.66M
YoY Change -1.29% 38.01%
Income Tax $4.929M $5.556M
% Of Pretax Income 26.76% 29.78%
Net Earnings $13.84M $12.73M
YoY Change 8.73% 82.09%
Net Earnings / Revenue 6.55% 6.0%
Basic Earnings Per Share $1.04 $0.96
Diluted Earnings Per Share $1.03 $0.95
COMMON SHARES
Basic Shares Outstanding 13.29M shares 13.25M shares
Diluted Shares Outstanding 13.34M shares 13.28M shares

Balance Sheet

Concept 2019 Q1 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $72.00M $92.60M
YoY Change -22.25% 2.21%
Cash & Equivalents $71.96M $92.58M
Short-Term Investments
Other Short-Term Assets $18.40M $22.40M
YoY Change -17.86% 47.37%
Inventory $92.90M $96.30M
Prepaid Expenses
Receivables $208.0M $218.1M
Other Receivables $0.00 $0.00
Total Short-Term Assets $391.3M $429.3M
YoY Change -8.85% 8.72%
LONG-TERM ASSETS
Property, Plant & Equipment $82.32M $87.83M
YoY Change -6.28% 3.05%
Goodwill $83.20M
YoY Change
Intangibles $62.52M $71.97M
YoY Change -13.13% -1.34%
Long-Term Investments $22.73M $25.03M
YoY Change -9.22% 4.03%
Other Assets $32.14M $44.70M
YoY Change -28.1% 54.99%
Total Long-Term Assets $317.2M $315.2M
YoY Change 0.64% 0.34%
TOTAL ASSETS
Total Short-Term Assets $391.3M $429.3M
Total Long-Term Assets $317.2M $315.2M
Total Assets $708.5M $744.5M
YoY Change -4.83% 5.01%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $91.15M $103.5M
YoY Change -11.96% 14.75%
Accrued Expenses $21.20M $14.90M
YoY Change 42.28% 4.2%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $700.0K $5.700M
YoY Change -87.72% 714.29%
Total Short-Term Liabilities $147.5M $157.4M
YoY Change -6.31% 13.11%
LONG-TERM LIABILITIES
Long-Term Debt $11.72M $69.65M
YoY Change -83.17% 6.09%
Other Long-Term Liabilities $73.51M $85.58M
YoY Change -14.11% 22.09%
Total Long-Term Liabilities $85.23M $155.2M
YoY Change -45.1% 14.36%
TOTAL LIABILITIES
Total Short-Term Liabilities $147.5M $157.4M
Total Long-Term Liabilities $85.23M $155.2M
Total Liabilities $262.2M $321.7M
YoY Change -18.51% 12.08%
SHAREHOLDERS EQUITY
Retained Earnings $414.0M $373.2M
YoY Change 10.93% 1.74%
Common Stock $110.2M $107.1M
YoY Change 2.91% -15.12%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $445.0M $421.5M
YoY Change
Total Liabilities & Shareholders Equity $708.5M $744.5M
YoY Change -4.83% 5.01%

Cashflow Statement

Concept 2019 Q1 2018 Q1
OPERATING ACTIVITIES
Net Income $13.84M $12.73M
YoY Change 8.73% 82.09%
Depreciation, Depletion And Amortization $4.859M $3.194M
YoY Change 52.13% 1.17%
Cash From Operating Activities $20.00K $2.746M
YoY Change -99.27% -66.92%
INVESTING ACTIVITIES
Capital Expenditures $2.537M $3.449M
YoY Change -26.44% 36.27%
Acquisitions $500.0K $500.0K
YoY Change 0.0%
Other Investing Activities -$400.0K -$500.0K
YoY Change -20.0%
Cash From Investing Activities -$2.964M -$3.901M
YoY Change -24.02% 56.04%
FINANCING ACTIVITIES
Cash Dividend Paid $4.935M $4.724M
YoY Change 4.47% 3.08%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$30.37M $1.545M
YoY Change -2065.83% -126.64%
NET CHANGE
Cash From Operating Activities $20.00K $2.746M
Cash From Investing Activities -$2.964M -$3.901M
Cash From Financing Activities -$30.37M $1.545M
Net Change In Cash -$32.31M $2.636M
YoY Change -1325.8% 70.73%
FREE CASH FLOW
Cash From Operating Activities $20.00K $2.746M
Capital Expenditures $2.537M $3.449M
Free Cash Flow -$2.517M -$703.0K
YoY Change 258.04% -112.19%

Facts In Submission

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CY2019Q1 us-gaap Other Comprehensive Income Loss Before Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossBeforeTaxPortionAttributableToParent
2073000 USD
CY2019Q1 us-gaap Other Comprehensive Income Loss Tax Portion Attributable To Parent1
OtherComprehensiveIncomeLossTaxPortionAttributableToParent1
525000 USD
CY2019Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
1548000 USD
CY2018Q1 kwr Other Comprehensive Income Loss Before Reclassifications
OtherComprehensiveIncomeLossBeforeReclassifications
5624000 USD
CY2018Q1 kwr Reclassifications From Accumulated Comprehensive Income Loss To Income Statement
ReclassificationsFromAccumulatedComprehensiveIncomeLossToIncomeStatement
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CY2018Q1 us-gaap Other Comprehensive Income Loss Before Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossBeforeTaxPortionAttributableToParent
6235000 USD
CY2018Q1 us-gaap Other Comprehensive Income Loss Tax Portion Attributable To Parent1
OtherComprehensiveIncomeLossTaxPortionAttributableToParent1
-127000 USD
CY2018Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
6362000 USD
CY2018Q4 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
-80715000 USD
CY2018Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
436369000 USD
CY2018Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
422763000 USD
CY2019Q1 us-gaap Unrecognized Tax Benefits Income Tax Penalties Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesExpense
100000 USD
CY2018Q1 us-gaap Dividends Common Stock
DividendsCommonStock
4729000 USD
CY2018Q1 kwr Stock Issued During Period Value And Adjustments To Additional Paid In Capital Share Based Compensation And Exercise Of Stock Options
StockIssuedDuringPeriodValueAndAdjustmentsToAdditionalPaidInCapitalShareBasedCompensationAndExerciseOfStockOptions
218000 USD
CY2017Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
409618000 USD
CY2018Q1 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
-58738000 USD
CY2019Q1 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
-79167000 USD
CY2019Q1 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
13333668 shares
CY2018Q4 us-gaap Loss Contingency Accrual At Carrying Value
LossContingencyAccrualAtCarryingValue
200000 USD
CY2019Q1 us-gaap Loss Contingency Accrual At Carrying Value
LossContingencyAccrualAtCarryingValue
200000 USD
CY2019Q1 kwr Cash Surrender Value Company Owned Life Insurance Fair Value Disclosure
CashSurrenderValueCompanyOwnedLifeInsuranceFairValueDisclosure
1635000 USD
CY2019Q1 us-gaap Assets Fair Value Disclosure
AssetsFairValueDisclosure
1635000 USD
CY2018Q1 us-gaap Gross Profit
GrossProfit
75447000 USD
CY2018Q1 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
50007000 USD
CY2018Q1 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
0.355
CY2019Q1 us-gaap Gross Profit
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75767000 USD
CY2019Q1 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
51455000 USD
CY2018Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
20231000 USD
CY2019Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
19829000 USD
CY2019Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-635000 USD
CY2019Q1 us-gaap Interest Expense
InterestExpense
1214000 USD
CY2019Q1 us-gaap Investment Income Interest
InvestmentIncomeInterest
438000 USD
CY2019Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
18418000 USD
CY2019Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
4929000 USD
CY2019Q1 kwr Income Loss From Continuing Operations Before Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeMinorityInterestAndIncomeLossFromEquityMethodInvestments
13489000 USD
CY2019Q1 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
411000 USD
CY2019Q1 us-gaap Profit Loss
ProfitLoss
13900000 USD
CY2019Q1 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
56000 USD
CY2018Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-369000 USD
CY2019Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.03
CY2019Q1 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
0.37
CY2019Q1 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
55000 USD
CY2018Q1 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
150000 USD
CY2019Q1 us-gaap Pension And Other Postretirement Benefit Contributions
PensionAndOtherPostretirementBenefitContributions
1346000 USD
CY2018Q1 us-gaap Pension And Other Postretirement Benefit Contributions
PensionAndOtherPostretirementBenefitContributions
2632000 USD
CY2019Q1 us-gaap Business Combination Acquisition Related Costs
BusinessCombinationAcquisitionRelatedCosts
4483000 USD
CY2018Q1 us-gaap Business Combination Acquisition Related Costs
BusinessCombinationAcquisitionRelatedCosts
5209000 USD
CY2019Q1 kwr Pension And Post Retirement Benefit Costs Nonservice Components
PensionAndPostRetirementBenefitCostsNonserviceComponents
896000 USD
CY2018Q1 kwr Pension And Post Retirement Benefit Costs Nonservice Components
PensionAndPostRetirementBenefitCostsNonserviceComponents
576000 USD
CY2018Q4 us-gaap Finite Lived Customer Lists Gross
FiniteLivedCustomerListsGross
74989000 USD
CY2018Q4 us-gaap Other Finite Lived Intangible Assets Gross
OtherFiniteLivedIntangibleAssetsGross
5840000 USD
CY2018Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
114104000 USD
CY2018Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
51622000 USD
CY2019Q1 kwr Combinationrelatedexpensesnetofpayements
Combinationrelatedexpensesnetofpayements
-1012000 USD
CY2018Q1 kwr Combinationrelatedexpensesnetofpayements
Combinationrelatedexpensesnetofpayements
2161000 USD
CY2019Q1 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1004000 USD
CY2018Q1 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
2246000 USD
CY2019Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-32312000 USD
CY2018Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
2636000 USD
CY2019Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
71960000 USD
CY2018Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
104147000 USD
CY2019Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
92113000 USD
CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
124425000 USD
CY2018Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
113686000 USD
CY2017Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
111050000 USD
CY2019Q1 us-gaap Payments Of Dividends Minority Interest
PaymentsOfDividendsMinorityInterest
0 USD
CY2018Q1 us-gaap Payments Of Dividends Minority Interest
PaymentsOfDividendsMinorityInterest
834000 USD
CY2019Q1 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div><p style='text-align:left;margin-top:0pt;margin-bottom:5pt;line-height:13.8pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0pt;color:#000000;' >Note </font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >3</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' > &#8211; </font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Recently Issued Accounting Standards</font></p><p style='text-align:left;margin-top:5pt;margin-bottom:5pt;line-height:12pt;' ></p></div><p style='line-height:20pt;' /><div><p style='text-align:left;margin-top:5pt;margin-bottom:5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The Financial Accounting Standards Board (&#8220;FASB&#8221;) issued an accounting standard update in August 2018 that modifies certain disclosure requirements for employers that sponsor defined benefit pension or </font><font style='font-family:Times New Roman;font-size:10pt;' >other postretirement plans. The amendments in this accounting standard update remove disclosures that are no longer considered cost beneficial, clarify the specific requirements of certain disclosures, and add new disclosure requirements as relevant. The</font><font style='font-family:Times New Roman;font-size:10pt;' > guidance within this accounting standard update is effective for annual periods beginning after December 15, 2020, and should be applied retrospectively to all periods presented. Early adoption is permitted. The Company has not early adopted the guidanc</font><font style='font-family:Times New Roman;font-size:10pt;' >e and is currently evaluating its implementation.</font></p><p style='text-align:left;margin-top:5pt;margin-bottom:5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in August 2018 that clarifies the accounting for implementation costs incurred in a cloud computing arrangement under a service contract. This guidance general</font><font style='font-family:Times New Roman;font-size:10pt;' >ly aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement under a service contract with the requirements for capitalizing implementation costs related to internal-use software. The guidance within this accounting s</font><font style='font-family:Times New Roman;font-size:10pt;' >tandard update is effective for annual periods beginning after December 15, 2019 and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. The Company has n</font><font style='font-family:Times New Roman;font-size:10pt;' >ot early adopted the guidance and is currently evaluating its implementation.</font></p><p style='text-align:left;margin-top:5pt;margin-bottom:5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in August 2018 that modifies certain disclosure requirements for fair value measurements.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' > The guidance removes certain disclosure re</font><font style='font-family:Times New Roman;font-size:10pt;' >quirements regarding transfers between levels of the fair value hierarchy as well as certain disclosures related to the valuation processes for certain fair value measurements. Further, the guidance added certain disclosure requirements including unrealiz</font><font style='font-family:Times New Roman;font-size:10pt;' >ed gains and losses and significant unobservable inputs used to develop certain fair value measurements. The guidance within this accounting standard update is effective for annual and interim periods beginning after December 15, 2019, and should be appli</font><font style='font-family:Times New Roman;font-size:10pt;' >ed prospectively in the initial year of adoption or prospectively to all periods presented, depending on the amended disclosure requirement. Early adoption is permitted. The Company has not early adopted the guidance and is currently evaluating its imple</font><font style='font-family:Times New Roman;font-size:10pt;' >mentation.</font></p><p style='text-align:left;margin-top:5pt;margin-bottom:5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in February 2018 that allows a reclassification from accumulated other comprehensive (loss) income (&#8220;AOCI&#8221;) to retained earnings for stranded tax effects resulting from U.S. Tax Reform enacted in Dec</font><font style='font-family:Times New Roman;font-size:10pt;' >ember 2017. The guidance within this accounting standard update is effective for annual and interim periods beginning after December 15, 2018, and should be applied either in the period of adoption or retrospectively to each period in which the effect of </font><font style='font-family:Times New Roman;font-size:10pt;' >the change in the U.S. federal corporate income tax rate in U.S. Tax Reform is recognized. Early adoption was permitted. The Company adopted this guidance in the first quarter of 2019, as required, but elected not to reclassify any stranded tax effects r</font><font style='font-family:Times New Roman;font-size:10pt;' >esulting from U.S. Tax Reform, therefore adoption of this guidance did not have an impact on its financial statements.</font></p><p style='text-align:left;margin-top:5pt;margin-bottom:5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in June 2016 related to the accounting for and disclosure of credit losses.&#160; The guidance i</font><font style='font-family:Times New Roman;font-size:10pt;' >ntroduces a new model for recognizing credit losses on financial instruments, including customer accounts receivable, based on an estimate of current expected credit losses.&#160; The guidance within this accounting standard update is effective for annual and </font><font style='font-family:Times New Roman;font-size:10pt;' >interim periods beginning after December 15, 2019, and aspects of the guidance which may be applicable to Quaker should be applied on a modified retrospective basis.&#160; Early adoption is permitted.&#160; The Company has not early adopted the guidance and is curre</font><font style='font-family:Times New Roman;font-size:10pt;' >ntly evaluating its implementation.</font></p><p style='text-align:left;margin-top:5pt;margin-bottom:5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in February 2016 regarding the accounting and disclosure for leases.&#160; During 2018 and 2019, the FASB issued a series of accounting standard updates to clarify and expand on t</font><font style='font-family:Times New Roman;font-size:10pt;' >he original 2016 implementation guidance, including providing an accounting policy election for lessors, certain targeted improvements around comparative reporting requirements and accounting for lease and non-lease components by lessors as well as other t</font><font style='font-family:Times New Roman;font-size:10pt;' >echnical corrections and improvements.&#160; The amendments in these 2018 and 2019 updates did not change the core principles of the guidance previously issued in February 2016.&#160; The guidance within all of the leasing accounting standard updates are effective f</font><font style='font-family:Times New Roman;font-size:10pt;' >or annual and interim periods beginning after December 15, 2018, and should be applied on a modified retrospective basis, applying the transition requirements either (a) at the beginning of the earliest period presented in the financial statements in the y</font><font style='font-family:Times New Roman;font-size:10pt;' >ear of adoption (January 1, 2017) or (b) in the period of adoption (January 1, 2019).&#160; Early adoption was permitted. </font></p><p style='text-align:left;margin-top:5pt;margin-bottom:5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >As part of the Company&#8217;s implementation planning and its impact assessment related to the new lease accounting guidance, the Company deve</font><font style='font-family:Times New Roman;font-size:10pt;' >loped a detailed project plan, identified and established a cross-functional implementation team and developed pre-adoption internal controls.&#160; In addition, the Company gathered an inventory of the Company&#8217;s outstanding leases globally, performed certain r</font><font style='font-family:Times New Roman;font-size:10pt;' >eview procedures to ensure completeness of its lease population and abstracted required information from its lease population for inclusion within the Company&#8217;s leasing software. Also, the Company is considering how the new lease accounting guidance may i</font><font style='font-family:Times New Roman;font-size:10pt;' >mpact Houghton and the pending Combination.&#160; </font></p><p style='text-align:left;margin-top:5pt;margin-bottom:5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The Company adopted the guidance in the first quarter of 2019, as required, electing to use a modified retrospective transition approach and applied transition requirements as of January 1, 2019, as permitted.&#160;</font><font style='font-family:Times New Roman;font-size:10pt;' > Comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. In addition, the Company elected to apply certain of the permitted transition practical expedients within the new lease</font><font style='font-family:Times New Roman;font-size:10pt;' > accounting related to lease identification, lease classification, and initial direct costs. The Company made certain accounting policy elections as a result of adopting the new lease accounting guidance which include not separating lease and non-lease co</font><font style='font-family:Times New Roman;font-size:10pt;' >mponents, applying a portfolio approach in the development of the Company&#8217;s discount rates, applying the short-term lease exemption and establishing a capitalization threshold policy.</font></p><p style='text-align:left;margin-top:5pt;margin-bottom:5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >Adoption of the lease accounting guidance did not have a material impact</font><font style='font-family:Times New Roman;font-size:10pt;' > on the Company&#8217;s reported earnings or cash flows, however, adoption did result in a material impact to the Company&#8217;s balance sheet to establish the right of use lease assets and associated lease liabilities. Specifically, the Company recorded a cumulativ</font><font style='font-family:Times New Roman;font-size:10pt;' >e effect of an accounting change that resulted in an increase to its right of use lease assets of $27.3 million, an increase of $5.3 million of short-term lease liabilities and $21.4 million of long-term lease liabilities, a decrease in property, plant and</font><font style='font-family:Times New Roman;font-size:10pt;' > equipment, net of $1.1 million, a decrease in other current liabilities of $0.4 million and a decrease to retained earnings of less than $0.1 million.</font><font style='font-family:Times New Roman;font-size:10pt;' > See Note 5 of Notes to Condensed Consolidated Financial Statements.</font></p></div>
CY2018Q4 us-gaap Deferred Revenue
DeferredRevenue
1300000 USD
CY2019Q1 kwr Net Reporting Amount
NetReportingAmount
10400000 USD
CY2018Q1 kwr Net Reporting Amount
NetReportingAmount
11600000 USD
CY2019Q1 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
13333668 shares
CY2019Q1 us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders
0 USD
CY2018Q4 us-gaap Business Combination Separately Recognized Transactions Liabilities Recognized
BusinessCombinationSeparatelyRecognizedTransactionsLiabilitiesRecognized
8200000 USD
CY2019Q1 us-gaap Business Combination Separately Recognized Transactions Liabilities Recognized
BusinessCombinationSeparatelyRecognizedTransactionsLiabilitiesRecognized
7200000 USD
CY2018Q1 us-gaap Business Combination Separately Recognized Transactions Additional Disclosures Acquisition Cost Expensed
BusinessCombinationSeparatelyRecognizedTransactionsAdditionalDisclosuresAcquisitionCostExpensed
6100000 USD
CY2019Q1 us-gaap Business Combination Separately Recognized Transactions Additional Disclosures Acquisition Cost Expensed
BusinessCombinationSeparatelyRecognizedTransactionsAdditionalDisclosuresAcquisitionCostExpensed
5300000 USD
CY2018Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
92581000 USD
CY2017Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
89879000 USD
CY2019Q1 us-gaap Restricted Cash
RestrictedCash
20153000 USD
CY2018Q4 us-gaap Restricted Cash
RestrictedCash
20278000 USD
CY2018Q1 us-gaap Restricted Cash
RestrictedCash
21105000 USD
CY2017Q4 us-gaap Restricted Cash
RestrictedCash
21171000 USD
CY2018Q4 kwr Finite Lived Trademarks Formulations And Product Technology
FiniteLivedTrademarksFormulationsAndProductTechnology
33275000 USD
CY2019Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period1
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardRequisiteServicePeriod1
P3Y
CY2018Q1 us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders
834000 USD
CY2018Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
212055000 USD
CY2019Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
211210000 USD
CY2018Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
2862 shares
CY2018Q1 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Expense
UnrecognizedTaxBenefitsInterestOnIncomeTaxesExpense
100000 USD
CY2019Q1 dei Document Type
DocumentType
10-Q
CY2019Q1 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q1
CY2019Q1 dei Entity Central Index Key
EntityCentralIndexKey
0000081362
CY2019Q1 dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
CY2019Q1 dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
CY2019Q1 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
220000 USD
CY2018Q1 us-gaap Cost Of Goods And Services Sold
CostOfGoodsAndServicesSold
136608000 USD
CY2019Q1 us-gaap Cost Of Goods And Services Sold
CostOfGoodsAndServicesSold
135443000 USD
CY2018Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
0 USD
CY2019Q1 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
26069000 USD
CY2019Q1 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
20231000 USD
CY2018Q4 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
0 USD
CY2019Q1 us-gaap Finite Lived Customer Lists Gross
FiniteLivedCustomerListsGross
74574000 USD
CY2019Q1 kwr Finite Lived Trademarks Formulations And Product Technology
FiniteLivedTrademarksFormulationsAndProductTechnology
33128000 USD
CY2019Q1 us-gaap Other Finite Lived Intangible Assets Gross
OtherFiniteLivedIntangibleAssetsGross
5826000 USD
CY2019Q1 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
113528000 USD
CY2019Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
53207000 USD
CY2019Q1 us-gaap Other Depreciation And Amortization
OtherDepreciationAndAmortization
1888000 USD
CY2018Q1 us-gaap Other Depreciation And Amortization
OtherDepreciationAndAmortization
1956000 USD
CY2019Q1 us-gaap Adjustment For Amortization
AdjustmentForAmortization
1812000 USD
CY2018Q1 us-gaap Adjustment For Amortization
AdjustmentForAmortization
1853000 USD
CY2019Q1 kwr Inflationary Percentage
InflationaryPercentage
1 pure
CY2019Q1 us-gaap New Accounting Pronouncement Or Change In Accounting Principle Description Of Priorperiod Information Retrospectively Adjusted
NewAccountingPronouncementOrChangeInAccountingPrincipleDescriptionOfPriorperiodInformationRetrospectivelyAdjusted
Adoption of the lease accounting guidance did not have a material impact on the Company’s reported earnings or cash flows, however, adoption did result in a material impact to the Company’s balance sheet to establish the right of use lease assets and associated lease liabilities. Specifically, the Company recorded a cumulative effect of an accounting change that resulted in an increase to its right of use lease assets of $27.3 million, an increase of $5.3 million of short-term lease liabilities and $21.4 million of long-term lease liabilities, a decrease in property, plant and equipment, net of $1.1 million, a decrease in other current liabilities of $0.4 million and a decrease to retained earnings of less than $0.1 million.
CY2019Q1 us-gaap Deferred Revenue
DeferredRevenue
1300000 USD
CY2019Q1 us-gaap Deferred Revenue Revenue Recognized1
DeferredRevenueRevenueRecognized1
1300000 USD
CY2019Q1 kwr Definedbenefitplandescriptionofnatureofeventresultingincontractualterminationbenefitstoberecognizedinfutureperiod
Definedbenefitplandescriptionofnatureofeventresultingincontractualterminationbenefitstoberecognizedinfutureperiod
The Company previously disclosed in its Annual Report filed on Form 10-K for the year ended December 31, 2018 that the Company began the process of terminating the Company’s primary non-contributory U.S. pension plan (the “U.S. Pension Plan”) during the fourth quarter of 2018. As part of this process, and considering the fully funded status of the U.S. Pension Plan, the asset allocation of the U.S. Pension Plan was adjusted modeling a glide path that is more heavily allocated to fixed income securities with lengthened durations to match the projected liabilities. As a result, the expected return on plan assets declined during the three months ended March 31, 2019 compared to the three months ended March 31, 2018. In order to terminate the U.S. Pension Plan in accordance with IRS and Pension Benefit Guaranty Corporation requirements, the Company will be required to fully fund the U.S. Pension Plan on a termination basis and will commit to contribute additional assets if necessary, to do so. The amount necessary to do so is not yet known but is currently estimated to be between $0 and $10 million. In addition, the Company expects to record a pension settlement charge at plan termination. This settlement charge will include the immediate recognition into expense of the related unrecognized losses within AOCI on the balance sheet as of the plan termination date. The Company does not have a current estimate for this future settlement charge, however, the gross AOCI related to the U.S. Pension Plan was approximately $19 million as of March 31, 2019. The Company currently estimates that the U.S. Pension Plan termination will be completed during 2020.
CY2019Q1 us-gaap Decrease In Unrecognized Tax Benefits Is Reasonably Possible
DecreaseInUnrecognizedTaxBenefitsIsReasonablyPossible
1000000 USD
CY2019Q1 kwr Ustaxreformact
Ustaxreformact
As previously disclosed in its Annual Report filed on Form 10-K for the year ended December 31, 2018, the Company recognized a deferred tax liability of $7.9 million in the fourth quarter of 2018 related to the Company’s estimate of non-U.S. taxes it will incur to repatriate certain foreign earnings. The Company incurred tax payments related to the repatriation of a portion of these foreign earnings during the first quarter of 2019 and reduced this deferred tax liability by approximately $3.2 million.
CY2019Q1 kwr Statutory Tax Rate
StatutoryTaxRate
0.25 pure
CY2018Q1 kwr Statutory Tax Rate
StatutoryTaxRate
0.15 pure
CY2019Q1 us-gaap Operating Lease Cost
OperatingLeaseCost
1800000 USD
CY2019Q1 us-gaap Short Term Lease Cost
ShortTermLeaseCost
100000 USD
CY2019Q1 us-gaap Operating Lease Payments
OperatingLeasePayments
1700000 USD
CY2019Q1 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
300000 USD
CY2019Q1 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
5258000 USD
CY2019Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
25489000 USD
CY2019Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P6Y1M6D
CY2019Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0465 pure
CY2019Q1 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
4017000 USD
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
29506000 USD
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
8419000 USD
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
2758000 USD
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
3534000 USD
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
4486000 USD
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
5465000 USD
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
4844000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due Current
OperatingLeasesFutureMinimumPaymentsDueCurrent
7068000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
5635000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
4509000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Four Years
OperatingLeasesFutureMinimumPaymentsDueInFourYears
3523000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Five Years
OperatingLeasesFutureMinimumPaymentsDueInFiveYears
2659000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
7779000 USD
CY2019Q1 us-gaap Cumulative Effect Of New Accounting Principle In Period Of Adoption
CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption
-44000 USD
CY2018Q1 us-gaap Cumulative Effect Of New Accounting Principle In Period Of Adoption
CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption
-754000 USD
CY2019Q1 us-gaap Business Combination Separately Recognized Transactions Description
BusinessCombinationSeparatelyRecognizedTransactionsDescription
On April 4, 2017, Quaker entered into a share purchase agreement with Gulf Houghton Lubricants, Ltd. to purchase the entire issued and outstanding share capital of Houghton International, Inc. (“Houghton”) (herein referred to as “the Combination”). The shares will be bought for aggregate purchase consideration consisting of: (i) $172.5 million in cash; (ii) a number of shares of common stock, $1.00 par value per share, of the Company comprising 24.5% of the common stock outstanding upon the closing of the Combination; and (iii) the Company’s assumption of Houghton’s net indebtedness as of the closing of the Combination, which was approximately $690 million at signing. At closing, the total aggregate purchase consideration is dependent on the Company’s stock price and the level of Houghton’s indebtedness. The Company secured $1.15 billion in commitments from Bank of America Merrill Lynch and Deutsche Bank to fund the Combination and to provide additional liquidity, and has since replaced these commitments with a syndicated bank agreement (“the New Credit Facility”) with a group of lenders for $1.15 billion. The New Credit Facility is contingent upon and will not be effective until the closing of the Combination. During the first quarter of 2019, the Company extended the bank commitment for the New Credit Facility through July 15, 2019. The New Credit Facility is comprised of a $400.0 million multicurrency revolver, a $600.0 million USD term loan and a $150.0 million EUR equivalent term loan, each with a five-year term from the date the New Credit Facility becomes effective. The maximum amount available under the New Credit Facility can be increased by $200.0 million at the Company’s option if the lenders agree and the Company satisfies certain conditions. Borrowings under the New Credit Facility will bear interest at a base rate or LIBOR rate plus a margin. The Company currently estimates the annual floating rate cost will be in the 3.75% to 4.0% range based on current market interest rates. The New Credit Facility will be subject to certain financial and other covenants, including covenants that the Company’s consolidated net debt to adjusted EBITDA ratio cannot exceed 4.25 to 1 and the Company’s consolidated adjusted EBITDA to interest expense ratio cannot be less than 3.0 to 1. Both the USD and EUR equivalent term loans will have quarterly principal amortization during their respective five-year terms, with 5.0% amortization of the principal balance due in years 1 and 2, 7.5% in year 3, and 10.0% in years 4 and 5, with the remaining principal amounts due at maturity. Until closing, the Company will incur certain interest costs paid to maintain the bank commitment (“ticking fees”), which began to accrue on September 29, 2017 and bear an interest rate of 0.30% per annum. The Company received regulatory approval for the Combination from China and Australia in 2017. In addition, at a shareholder meeting held during 2017, the Company’s shareholders overwhelmingly approved the issuance of the new shares of the Company’s common stock at closing of the Combination. The European Commission (“EC”) conditionally approved the Combination in December 2018, including the remedy proposed by Quaker and Houghton. The Company expects to receive final approval from the EC once certain conditions are met, including their review and approval of the final purchase agreement between Quaker, Houghton, and the buyer of the divested product lines, which was finalized and signed at the end of March 2019. The Company continues to be in productive discussions with the U.S. Federal Trade Commission (“FTC”). Given the time lapse since the Company’s initial filing, the FTC requested updated information as part of their approval process late in the fourth quarter of 2018. In addition, the government shutdown in the U.S. late in the fourth quarter of 2018 and early in 2019 extended the timeline to receive the final approval. Given current information, the Company expects that final approval from the FTC and EC and closing of the combination will occur in the next couple of months.
CY2019Q1 dei Entity Emerging Growth Company
EntityEmergingGrowthCompany
false
CY2019Q1 dei Entity Small Business
EntitySmallBusiness
false
CY2019Q1 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
100000 USD
CY2018Q1 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
100000 USD
CY2019Q1 us-gaap Other Long Term Debt
OtherLongTermDebt
12400000 USD
CY2018Q4 us-gaap Other Long Term Debt
OtherLongTermDebt
12600000 USD
CY2019Q1 us-gaap Loss Contingency Settlement Agreement Terms
LossContingencySettlementAgreementTerms
The Company has restricted cash recorded in other assets related to proceeds from an inactive subsidiary of the Company which previously executed separate settlement and release agreements with two of its insurance carriers for an original total value of $35.0 million. The proceeds of both settlements are restricted and can only be used to pay claims and costs of defense associated with the subsidiary’s asbestos litigation. The proceeds of the settlement and release agreements have been deposited into interest bearing accounts which earned $0.1 million and less than $0.1 million in the three months ended March 31, 2019 and 2018, respectively, offset by $0.2 million and less than $0.1 million of net payments during the three months ended March 31, 2019 and 2018 respectively. Due to the restricted nature of the proceeds, a corresponding deferred credit was established in other non-current liabilities for an equal and offsetting amount, and will remain until the restrictions lapse or the funds are exhausted via payments of claims and costs of defense.
CY2019Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest Adjusted Balance1
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1
436325000 USD
CY2018Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest Adjusted Balance1
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1
408864000 USD

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