2015 Q2 Form 10-Q Financial Statement

#000162828015004177 Filed on May 14, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2014 Q1
Revenue $406.6M $372.5M
YoY Change -4.28% 13.75%
Cost Of Revenue $249.0M $229.5M
YoY Change -3.7% 11.31%
Gross Profit $157.6M $143.0M
YoY Change -5.18% 17.9%
Gross Profit Margin 38.75% 38.39%
Selling, General & Admin $86.38M $87.04M
YoY Change -4.48% 10.08%
% of Gross Profit 54.82% 60.88%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $11.23M $10.52M
YoY Change 4.07% -24.97%
% of Gross Profit 7.13% 7.36%
Operating Expenses $86.38M $87.04M
YoY Change -4.48% 10.08%
Operating Profit $66.58M $55.93M
YoY Change -12.09% 32.56%
Interest Expense -$3.700M -$4.000M
YoY Change -11.9% 17.65%
% of Operating Profit -5.56% -7.15%
Other Income/Expense, Net -$4.561M -$865.0K
YoY Change 2238.97% 306.1%
Pretax Income $58.27M $51.08M
YoY Change -18.36% 32.51%
Income Tax $20.04M $17.64M
% Of Pretax Income 34.39% 34.53%
Net Earnings $38.23M $33.45M
YoY Change -21.02% 29.12%
Net Earnings / Revenue 9.4% 8.98%
Basic Earnings Per Share $0.67 $0.59
Diluted Earnings Per Share $0.67 $0.59
COMMON SHARES
Basic Shares Outstanding 56.92M shares 56.46M shares
Diluted Shares Outstanding 56.92M shares 56.46M shares

Balance Sheet

Concept 2015 Q2 2014 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $54.30M $39.10M
YoY Change 68.11% -10.73%
Cash & Equivalents $54.26M $39.05M
Short-Term Investments
Other Short-Term Assets $92.00M $105.6M
YoY Change 3.02% 52.16%
Inventory $276.4M $260.5M
Prepaid Expenses
Receivables $239.3M $224.2M
Other Receivables $0.00 $0.00
Total Short-Term Assets $662.0M $629.3M
YoY Change 8.29% 28.38%
LONG-TERM ASSETS
Property, Plant & Equipment $142.1M $127.2M
YoY Change 8.73% -8.67%
Goodwill $819.3M $701.8M
YoY Change 13.9% 5.13%
Intangibles $494.4M $445.8M
YoY Change 11.99% 17.49%
Long-Term Investments
YoY Change
Other Assets $21.40M $8.805M
YoY Change 6.89% -58.55%
Total Long-Term Assets $274.3M $138.9M
YoY Change 78.06% -13.48%
TOTAL ASSETS
Total Short-Term Assets $662.0M $629.3M
Total Long-Term Assets $274.3M $138.9M
Total Assets $2.143B $1.916B
YoY Change 11.25% 12.85%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $111.4M $100.7M
YoY Change 5.79% 13.3%
Accrued Expenses $213.4M $193.2M
YoY Change 5.34% -3.13%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $8.926M $6.900M
YoY Change 8.72% 313.42%
Total Short-Term Liabilities $333.7M $300.8M
YoY Change 5.58% 3.73%
LONG-TERM LIABILITIES
Long-Term Debt $630.1M $648.5M
YoY Change 7.81% 1.85%
Other Long-Term Liabilities $58.31M $38.48M
YoY Change 38.74% -27.32%
Total Long-Term Liabilities $688.4M $687.0M
YoY Change 9.88% -0.39%
TOTAL LIABILITIES
Total Short-Term Liabilities $333.7M $300.8M
Total Long-Term Liabilities $688.4M $687.0M
Total Liabilities $1.022B $987.9M
YoY Change 8.44% 0.83%
SHAREHOLDERS EQUITY
Retained Earnings $961.9M $763.8M
YoY Change 18.43% 26.81%
Common Stock $144.0K $144.0K
YoY Change 0.0% 2.13%
Preferred Stock
YoY Change
Treasury Stock (at cost) $200.9M $196.0M
YoY Change 2.47% 32.05%
Treasury Stock Shares 4.862M shares 4.817M shares
Shareholders Equity $1.028B $856.3M
YoY Change
Total Liabilities & Shareholders Equity $2.143B $1.916B
YoY Change 11.25% 12.85%

Cashflow Statement

Concept 2015 Q2 2014 Q1
OPERATING ACTIVITIES
Net Income $38.23M $33.45M
YoY Change -21.02% 29.12%
Depreciation, Depletion And Amortization $11.23M $10.52M
YoY Change 4.07% -24.97%
Cash From Operating Activities $23.76M -$13.56M
YoY Change -68.45% -200.2%
INVESTING ACTIVITIES
Capital Expenditures $6.117M $3.231M
YoY Change -260.97% -17.64%
Acquisitions $15.00M
YoY Change
Other Investing Activities -$46.50M -$45.70M
YoY Change 210.0% -87.9%
Cash From Investing Activities -$52.62M -$48.96M
YoY Change 181.36% -87.18%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $4.836M $44.28M
YoY Change 4007.88%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $39.49M $64.62M
YoY Change -162.88% -82.93%
NET CHANGE
Cash From Operating Activities $23.76M -$13.56M
Cash From Investing Activities -$52.62M -$48.96M
Cash From Financing Activities $39.49M $64.62M
Net Change In Cash $10.63M $2.101M
YoY Change -271.45% -79.44%
FREE CASH FLOW
Cash From Operating Activities $23.76M -$13.56M
Capital Expenditures $6.117M $3.231M
Free Cash Flow $17.64M -$16.79M
YoY Change -77.7% -274.74%

Facts In Submission

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CY2015Q2 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
-472000 USD
CY2015Q1 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
53492000 USD
CY2015Q2 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
58313000 USD
CY2015Q1 us-gaap Other Long Term Debt
OtherLongTermDebt
283000 USD
CY2015Q2 us-gaap Other Long Term Debt
OtherLongTermDebt
274000 USD
CY2014Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-865000 USD
CY2015Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-4561000 USD
CY2014Q1 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
44283000 USD
CY2015Q2 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
4836000 USD
CY2015Q2 us-gaap Payments For Restructuring
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422000 USD
CY2014Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
3231000 USD
CY2015Q2 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
6117000 USD
CY2015Q1 us-gaap Percentage Of Lifo Inventory
PercentageOfLIFOInventory
0.118
CY2015Q2 us-gaap Percentage Of Lifo Inventory
PercentageOfLIFOInventory
0.114
CY2015Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
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0.01
CY2015Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2015Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
2000000 shares
CY2015Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
2000000 shares
CY2015Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
shares
CY2015Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
shares
CY2015Q1 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
27980000 USD
CY2015Q2 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
30286000 USD
CY2015Q1 us-gaap Prepaid Taxes
PrepaidTaxes
5538000 USD
CY2015Q2 us-gaap Prepaid Taxes
PrepaidTaxes
10023000 USD
CY2014Q1 us-gaap Proceeds From Repayments Of Notes Payable
ProceedsFromRepaymentsOfNotesPayable
-9000 USD
CY2015Q2 us-gaap Proceeds From Repayments Of Notes Payable
ProceedsFromRepaymentsOfNotesPayable
-9000 USD
CY2014Q1 us-gaap Proceeds From Repayments Of Other Debt
ProceedsFromRepaymentsOfOtherDebt
5463000 USD
CY2015Q2 us-gaap Proceeds From Repayments Of Other Debt
ProceedsFromRepaymentsOfOtherDebt
432000 USD
CY2015Q1 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
28786000 USD
CY2015Q2 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
29541000 USD
CY2015Q2 us-gaap Product Warranty Accrual Additions From Business Acquisition
ProductWarrantyAccrualAdditionsFromBusinessAcquisition
0 USD
CY2015Q1 us-gaap Product Warranty Accrual Classified Current
ProductWarrantyAccrualClassifiedCurrent
28786000 USD
CY2015Q2 us-gaap Product Warranty Accrual Classified Current
ProductWarrantyAccrualClassifiedCurrent
29541000 USD
CY2015Q2 us-gaap Product Warranty Accrual Payments
ProductWarrantyAccrualPayments
10313000 USD
CY2015Q2 us-gaap Product Warranty Accrual Warranties Issued
ProductWarrantyAccrualWarrantiesIssued
11068000 USD
CY2015Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
129697000 USD
CY2015Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
142080000 USD
CY2015Q2 us-gaap Ratio Of Indebtedness To Net Capital1
RatioOfIndebtednessToNetCapital1
0
CY2015Q2 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
-943000 USD
CY2015Q1 us-gaap Restructuring Reserve
RestructuringReserve
184000 USD
CY2015Q2 us-gaap Restructuring Reserve
RestructuringReserve
4362000 USD
CY2015Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
923664000 USD
CY2015Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
961895000 USD
CY2015Q1 us-gaap Sales And Excise Tax Payable Current
SalesAndExciseTaxPayableCurrent
7660000 USD
CY2015Q2 us-gaap Sales And Excise Tax Payable Current
SalesAndExciseTaxPayableCurrent
7032000 USD
CY2014Q1 us-gaap Sales Revenue Net
SalesRevenueNet
372478000 USD
CY2015Q2 us-gaap Sales Revenue Net
SalesRevenueNet
406596000 USD
CY2014Q1 us-gaap Selling Expense
SellingExpense
46970000 USD
CY2015Q2 us-gaap Selling Expense
SellingExpense
47109000 USD
CY2014Q1 us-gaap Share Based Compensation
ShareBasedCompensation
1938000 USD
CY2015Q2 us-gaap Share Based Compensation
ShareBasedCompensation
2029000 USD
CY2015Q2 us-gaap Significant Change In Unrecognized Tax Benefits Is Reasonably Possible Amount Of Unrecorded Benefit
SignificantChangeInUnrecognizedTaxBenefitsIsReasonablyPossibleAmountOfUnrecordedBenefit
500000 USD
CY2015Q1 us-gaap Stockholders Equity
StockholdersEquity
1006760000 USD
CY2015Q2 us-gaap Stockholders Equity
StockholdersEquity
1028437000 USD
CY2015Q1 us-gaap Treasury Stock Shares
TreasuryStockShares
4816912 shares
CY2015Q2 us-gaap Treasury Stock Shares
TreasuryStockShares
4862264 shares
CY2015Q1 us-gaap Treasury Stock Value
TreasuryStockValue
196026000 USD
CY2015Q2 us-gaap Treasury Stock Value
TreasuryStockValue
200862000 USD
CY2015Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
12500000 USD
CY2015Q1 us-gaap Unrecognized Tax Benefits Income Tax Penalties Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAccrued
3000000 USD
CY2015Q1 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
UnrecognizedTaxBenefitsInterestOnIncomeTaxesAccrued
1700000 USD
CY2015Q1 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
12200000 USD
CY2014Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
2000 shares
CY2015Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1000 shares
CY2014Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
56459000 shares
CY2015Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
56918000 shares
CY2014Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
56457000 shares
CY2015Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
56917000 shares
CY2015Q2 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Recently Issued Accounting Standards</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the FASB issued ASU No. 2014-08, &#8220;Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity&#8221;. This update changes the criteria for determining which disposals can be presented as discontinued operations and requires expanded disclosures. Under ASU No. 2014-08, a disposal of a component of an entity or group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on the entity&#8217;s operations and financial results. This update is effective for annual and corresponding interim reporting periods beginning on or after December 15, 2014. The adoption of this guidance did not have an impact on the company's financial position, results of operations or cash flows.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the FASB issued ASU No. 2014-09, &#8220;Revenue from Contracts with Customers&#8221;. This update amends the current guidance on revenue recognition related to contracts with customers. Under ASU No. 2014-09, an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This update is effective for annual and corresponding interim reporting periods beginning on or after December 15, 2016. This update provides for two transition methods to the new guidance: a full retrospective or a modified retrospective adoption. On April 1, 2015, the FASB proposed deferring the effective date of ASU No. 2014-09, "Revenue from Contracts with Customers" by one year to December 15, 2017 for annual reporting periods beginning after that date and permitting early adoption of the standard but not before the original effective date of December 15, 2016. The company is evaluating the transition methods and the impact the application of this ASU will have, if any, on the company&#8217;s financial position, results of operations and cash flows.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In June 2014, the FASB issued ASU No. 2014-12, &#8220;Compensation - Stock Compensation&#8221;. This update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update is effective for annual and corresponding interim reporting periods beginning on or after December 15, 2015. Early adoption is permitted. The company is evaluating the impact the application of this ASU will have, if any, on the company&#8217;s financial position, results of operations and cash flows.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2015, the FASB issued ASU No. 2015-01, "Income Statement - Extraordinary and Unusual Items". This update eliminates the concept of extraordinary items from the current guidance. This update is effective for annual and corresponding interim reporting periods beginning after December 15, 2015. Early adoption is permitted provided the guidance is applied from the beginning of the fiscal year of adoption. Retrospective application is encouraged for all prior periods presented in the financial statements. The company is evaluating the impact the application of this ASU will have, if any, on the company&#8217;s financial position, results of operations and cash flows.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs," which requires debt issuance costs to be recorded as a direct reduction of the debt liability on the balance sheet rather than as an asset. The standard is effective for fiscal years beginning after December 15, 2015 and early adoption is permitted. The company is evaluating the impact the application of this ASU will have, if any, on the company&#8217;s financial position, results of operations and cash flows.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2015, the FASB issued ASU 2015-04, "Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets." This ASU is intended to provide a practical expedient for the measurement date of defined benefit plan assets and obligations. The practical expedient allows employers with fiscal year-end dates that do no fall on a calendar month-end (e.g., companies with a 52/53-week fiscal year) to measure pension and post-retirement benefit plan assets and obligations as of the calendar month-end date closest to the fiscal year-end. The FASB also provided a similar practical expedient for interim remeasurements for significant events. This ASU requires perspective application and is effective for annual reporting periods beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption is permitted. The company is evaluating the impact the application of this ASU will have, if any, on the company&#8217;s financial position, results of operations and cash flows.</font></div></div>
CY2015Q2 us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Litigation Matters</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">From time to time, the company is subject to proceedings, lawsuits and other claims related to products, suppliers, employees, customers and competitors. The company maintains insurance to partially cover product liability, workers compensation, property and casualty, and general liability matters.&#160; The company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses.&#160; A determination of the amount of accrual required, if any, for these contingencies is made after assessment of each matter and the related insurance coverage.&#160; The required accrual may change in the future due to new developments or changes in approach such as a change in settlement strategy in dealing with these matters.&#160; The company does not believe that any pending litigation will have a material effect on its financial condition, results of operations or cash flows.</font></div></div>
CY2015Q2 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates </font></div><div style="line-height:120%;text-align:left;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses. Significant estimates and assumptions are used for, but are not limited to, allowances for doubtful accounts, reserves for excess and obsolete inventories, long lived and intangible assets, warranty reserves, insurance reserves, income tax reserves and post-retirement obligations. Actual results could differ from the company's estimates. </font></div></div>

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