2014 Q3 Form 10-Q Financial Statement

#000119312514383546 Filed on October 28, 2014

View on sec.gov

Income Statement

Concept 2014 Q3 2013 Q3
Revenue $581.7M $500.5M
YoY Change 16.22% 11.36%
Cost Of Revenue $32.50M $34.60M
YoY Change -6.07% 2.37%
Gross Profit $549.2M $465.9M
YoY Change 17.88% 12.1%
Gross Profit Margin 94.41% 93.08%
Selling, General & Admin $421.2M $381.4M
YoY Change 10.44% 6.36%
% of Gross Profit 76.69% 81.86%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $12.60M $9.800M
YoY Change 28.57% -3.92%
% of Gross Profit 2.29% 2.1%
Operating Expenses $435.5M $384.8M
YoY Change 13.18% 4.31%
Operating Profit $113.7M $81.12M
YoY Change 40.18% 73.6%
Interest Expense $15.51M $20.17M
YoY Change -23.09% -2.37%
% of Operating Profit 13.64% 24.86%
Other Income/Expense, Net $10.27M $2.484M
YoY Change 313.57% -68.26%
Pretax Income $113.7M $81.10M
YoY Change 40.2% 73.66%
Income Tax $23.79M $18.37M
% Of Pretax Income 20.93% 22.65%
Net Earnings $88.86M $60.28M
YoY Change 47.41% 81.02%
Net Earnings / Revenue 15.28% 12.04%
Basic Earnings Per Share $0.73 $0.49
Diluted Earnings Per Share $0.67 $0.45
COMMON SHARES
Basic Shares Outstanding 122.2M shares 122.2M shares
Diluted Shares Outstanding 133.6M shares 134.2M shares

Balance Sheet

Concept 2014 Q3 2013 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.106B $1.021B
YoY Change 8.31% -12.09%
Cash & Equivalents $820.6M $688.4M
Short-Term Investments
Other Short-Term Assets $44.70M $59.50M
YoY Change -24.87% -3.88%
Inventory
Prepaid Expenses
Receivables $429.5M $430.2M
Other Receivables $78.40M $106.0M
Total Short-Term Assets $1.614B $1.557B
YoY Change 3.63% -5.38%
LONG-TERM ASSETS
Property, Plant & Equipment $227.4M $249.8M
YoY Change -8.98% 15.42%
Goodwill $343.8M $350.6M
YoY Change -1.95% -3.88%
Intangibles
YoY Change
Long-Term Investments $8.518M $8.941M
YoY Change -4.73% -97.97%
Other Assets
YoY Change
Total Long-Term Assets $1.429B $1.399B
YoY Change 2.13% 3.71%
TOTAL ASSETS
Total Short-Term Assets $1.614B $1.557B
Total Long-Term Assets $1.429B $1.399B
Total Assets $3.043B $2.956B
YoY Change 2.92% -1.29%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $278.3M $289.9M
YoY Change -4.0% 10.56%
Accrued Expenses $517.6M $382.1M
YoY Change 35.46% 26.86%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $807.9M $676.7M
YoY Change 19.39% 19.47%
LONG-TERM LIABILITIES
Long-Term Debt $1.061B $1.093B
YoY Change -2.9% -0.19%
Other Long-Term Liabilities $536.1M $529.8M
YoY Change 1.19% 6.02%
Total Long-Term Liabilities $1.597B $1.623B
YoY Change -1.57% 1.76%
TOTAL LIABILITIES
Total Short-Term Liabilities $807.9M $676.7M
Total Long-Term Liabilities $1.597B $1.623B
Total Liabilities $2.405B $2.299B
YoY Change 4.6% 6.4%
SHAREHOLDERS EQUITY
Retained Earnings $333.3M $219.3M
YoY Change 51.97% -18.84%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $572.6M $582.8M
YoY Change
Total Liabilities & Shareholders Equity $3.043B $2.956B
YoY Change 2.92% -1.29%

Cashflow Statement

Concept 2014 Q3 2013 Q3
OPERATING ACTIVITIES
Net Income $88.86M $60.28M
YoY Change 47.41% 81.02%
Depreciation, Depletion And Amortization $12.60M $9.800M
YoY Change 28.57% -3.92%
Cash From Operating Activities $285.8M $154.3M
YoY Change 85.22% -24.84%
INVESTING ACTIVITIES
Capital Expenditures -$8.400M -$13.00M
YoY Change -35.38% -42.98%
Acquisitions
YoY Change
Other Investing Activities $600.0K $100.0K
YoY Change 500.0% 0.0%
Cash From Investing Activities -$7.600M -$12.90M
YoY Change -41.09% -43.17%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -112.1M -66.60M
YoY Change 68.32% -38.62%
NET CHANGE
Cash From Operating Activities 285.8M 154.3M
Cash From Investing Activities -7.600M -12.90M
Cash From Financing Activities -112.1M -66.60M
Net Change In Cash 166.1M 74.80M
YoY Change 122.06% 0.94%
FREE CASH FLOW
Cash From Operating Activities $285.8M $154.3M
Capital Expenditures -$8.400M -$13.00M
Free Cash Flow $294.2M $167.3M
YoY Change 75.85% -26.65%

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<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px"><font style="FONT-FAMILY: Times New Roman" size="2"><b><i>Organization</i></b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">Lazard Ltd, a Bermuda holding company, and its subsidiaries (collectively referred to as &#x201C;Lazard Ltd&#x201D;, &#x201C;Lazard&#x201D;, &#x201C;we&#x201D; or the &#x201C;Company&#x201D;), including Lazard Ltd&#x2019;s indirect investment in Lazard Group LLC, a Delaware limited liability company (collectively referred to, together with its subsidiaries, as &#x201C;Lazard Group&#x201D;), is one of the world&#x2019;s preeminent financial advisory and asset management firms and has long specialized in crafting solutions to the complex financial and strategic challenges of our clients. We serve a diverse set of clients around the world, including corporations, governments, institutions, partnerships and individuals.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">Lazard Ltd indirectly held 100% and approximately 99.5% of all outstanding Lazard Group common membership interests as of September 30, 2014 and December 31, 2013, respectively. Lazard Ltd, through its control of the managing members of Lazard Group, controls Lazard Group, which is governed by an Operating Agreement dated as of May 10, 2005, as amended (the &#x201C;Operating Agreement&#x201D;). LAZ-MD Holdings LLC (&#x201C;LAZ-MD Holdings&#x201D;), an entity formerly owned by Lazard Group&#x2019;s current and former managing directors, held approximately 0.5% of the outstanding Lazard Group common membership interests as of December 31, 2013. Additionally, <font style="WHITE-SPACE: nowrap">LAZ-MD</font> Holdings was the sole owner of the one issued and outstanding share of Lazard Ltd&#x2019;s Class B common stock (the &#x201C;Class B common stock&#x201D;), which provided LAZ-MD Holdings with approximately 0.6% of the voting power, but no economic rights, in the Company as of December&#xA0;31, 2013. In May 2014, the remaining outstanding Lazard Group common membership interests held by LAZ-MD Holdings were exchanged for shares of the Company&#x2019;s Class A common stock, par value $0.01 per share (&#x201C;Class A common stock&#x201D;), and the sole issued and outstanding share of the Company&#x2019;s Class B common stock was automatically converted into one share of the Company&#x2019;s Class A common stock pursuant to the provisions of the Company&#x2019;s bye-laws, resulting in only one outstanding class of common stock (the &#x201C;Final Exchange of <font style="WHITE-SPACE: nowrap">LAZ-MD</font> Interests&#x201D;). Following the Final Exchange of LAZ-MD Interests, Lazard Group became a wholly-owned indirect subsidiary of Lazard Ltd.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">Our sole operating asset is our indirect ownership of the common membership interests of Lazard Group and our managing member interest of Lazard Group, whose principal operating activities are included in two business segments:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">Financial Advisory, which offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of financial advisory services regarding mergers and acquisitions (&#x201C;M&amp;A&#x201D;) and other strategic matters, restructurings, capital structure, capital raising and various other financial matters, and</font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">Asset Management, which offers a broad range of global investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients.</font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">In addition, we record selected other activities in our Corporate segment, including management of cash, investments and outstanding indebtedness, as well as certain commercial banking activities of Lazard Group&#x2019;s Paris-based subsidiary Lazard Fr&#xE8;res Banque SA (&#x201C;LFB&#x201D;).</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">LFB is a registered bank regulated by the Autorit&#xE9; de Contr&#xF4;le Prudentiel et de R&#xE9;solution (&#x201C;ACPR&#x201D;). 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