2018 Q3 Form 10-Q Financial Statement

#000089110318000016 Filed on November 09, 2018

View on sec.gov

Income Statement

Concept 2018 Q3 2017 Q3
Revenue $1.105B $828.4M
YoY Change 33.33% 8.42%
Cost Of Revenue $237.2M $166.3M
YoY Change 42.67% -7.17%
Gross Profit $867.4M $662.1M
YoY Change 30.99% 13.19%
Gross Profit Margin 78.52% 79.93%
Selling, General & Admin $577.7M $588.5M
YoY Change -1.83% 40.96%
% of Gross Profit 66.61% 88.87%
Research & Development $77.74M $70.65M
YoY Change 10.04% 42.13%
% of Gross Profit 8.96% 10.67%
Depreciation & Amortization $9.000M $17.26M
YoY Change -47.87% -3.83%
% of Gross Profit 1.04% 2.61%
Operating Expenses $655.4M $659.1M
YoY Change -0.56% 41.08%
Operating Profit $172.8M -$18.59M
YoY Change -1029.75% -121.72%
Interest Expense $27.61M $25.04M
YoY Change 10.28% -7.68%
% of Operating Profit 15.98%
Other Income/Expense, Net $8.113M -$10.22M
YoY Change -179.41% -187.32%
Pretax Income $153.3M -$53.84M
YoY Change -384.79% -176.73%
Income Tax -$18.24M $257.0M
% Of Pretax Income -11.9%
Net Earnings $145.8M $179.6M
YoY Change -18.85% 316.21%
Net Earnings / Revenue 13.2% 21.68%
Basic Earnings Per Share $1.75 $2.22
Diluted Earnings Per Share $1.49 $1.79
COMMON SHARES
Basic Shares Outstanding 83.43M shares 80.82M shares
Diluted Shares Outstanding 91.98M shares 87.20M shares

Balance Sheet

Concept 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.880B $157.6M
YoY Change 1092.6% -88.48%
Cash & Equivalents $1.671B $1.255B
Short-Term Investments $208.6M
Other Short-Term Assets $246.2M $200.4M
YoY Change 22.87% -13.84%
Inventory
Prepaid Expenses
Receivables $347.2M $271.2M
Other Receivables $0.00 $0.00
Total Short-Term Assets $2.473B $1.727B
YoY Change 43.2% -4.04%
LONG-TERM ASSETS
Property, Plant & Equipment $308.5M $320.3M
YoY Change -3.69% 0.95%
Goodwill $2.572B $2.502B
YoY Change 2.82% 28.78%
Intangibles $624.1M $660.1M
YoY Change -5.45% 72.67%
Long-Term Investments $0.00 $0.00
YoY Change
Other Assets $92.23M $81.40M
YoY Change 13.31% -20.7%
Total Long-Term Assets $3.899B $3.814B
YoY Change 2.24% 32.82%
TOTAL ASSETS
Total Short-Term Assets $2.473B $1.727B
Total Long-Term Assets $3.899B $3.814B
Total Assets $6.372B $5.541B
YoY Change 15.0% 18.62%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $12.10M $18.30M
YoY Change -33.88% -9.41%
Accrued Expenses $422.2M $387.3M
YoY Change 9.0% 11.91%
Deferred Revenue $381.4M
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $13.75M $0.00
YoY Change
Total Short-Term Liabilities $893.5M $835.5M
YoY Change 6.94% 18.92%
LONG-TERM LIABILITIES
Long-Term Debt $1.984B $1.649B
YoY Change 20.3% 0.49%
Other Long-Term Liabilities $36.63M $37.17M
YoY Change -1.45% -5.3%
Total Long-Term Liabilities $2.021B $1.686B
YoY Change 19.82% 0.35%
TOTAL LIABILITIES
Total Short-Term Liabilities $893.5M $835.5M
Total Long-Term Liabilities $2.021B $1.686B
Total Liabilities $2.914B $2.522B
YoY Change 15.55% 5.83%
SHAREHOLDERS EQUITY
Retained Earnings $1.067B $562.2M
YoY Change 89.79% 198.96%
Common Stock $11.96B $12.19B
YoY Change -1.94% 2.4%
Preferred Stock
YoY Change
Treasury Stock (at cost) $10.31B $10.23B
YoY Change 0.81% 1.17%
Treasury Stock Shares 194.7M shares 194.2M shares
Shareholders Equity $2.600B $2.429B
YoY Change
Total Liabilities & Shareholders Equity $6.372B $5.541B
YoY Change 15.0% 18.62%

Cashflow Statement

Concept 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income $145.8M $179.6M
YoY Change -18.85% 316.21%
Depreciation, Depletion And Amortization $9.000M $17.26M
YoY Change -47.87% -3.83%
Cash From Operating Activities $181.7M $76.40M
YoY Change 137.83% 0.92%
INVESTING ACTIVITIES
Capital Expenditures -$6.500M -$6.800M
YoY Change -4.41% -62.22%
Acquisitions
YoY Change
Other Investing Activities $0.00 -$4.000M
YoY Change -100.0% 300.0%
Cash From Investing Activities -$6.500M -$10.80M
YoY Change -39.81% -43.16%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -82.30M -405.6M
YoY Change -79.71% 17534.78%
NET CHANGE
Cash From Operating Activities 181.7M 76.40M
Cash From Investing Activities -6.500M -10.80M
Cash From Financing Activities -82.30M -405.6M
Net Change In Cash 92.90M -340.0M
YoY Change -127.32% -725.0%
FREE CASH FLOW
Cash From Operating Activities $181.7M $76.40M
Capital Expenditures -$6.500M -$6.800M
Free Cash Flow $188.2M $83.20M
YoY Change 126.2% -11.21%

Facts In Submission

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352879000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
1023394000 USD
CY2018Q3 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
386802000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
1159294000 USD
us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
34903000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
2430028000 USD
CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
2600482000 USD
CY2017Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
2946823000 USD
CY2018Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
3328592000 USD
us-gaap Stockholders Equity Other
StockholdersEquityOther
-2652000 USD
CY2017Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
194163000 shares
CY2018Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
194708000 shares
us-gaap Unrealized Gain Loss On Investments
UnrealizedGainLossOnInvestments
126444000 USD
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
82891000 USD
CY2017Q4 us-gaap Treasury Stock Value
TreasuryStockValue
10226721000 USD
CY2018Q3 us-gaap Treasury Stock Value
TreasuryStockValue
10309612000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
39700000 USD
CY2018Q3 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
43700000 USD
CY2018Q3 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
149000000 USD
CY2017Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
6379000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
5133000 shares
CY2018Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
8542000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
8076000 shares
CY2017Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
87196000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
84502000 shares
CY2018Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
91975000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
91418000 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
80817000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
79369000 shares
CY2018Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
83433000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
83342000 shares
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">A meaningful portion of the Company's revenue is derived from online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or changes in advertising spending behavior or in customer buying behavior could adversely affect our operating results. Most of the Company's online advertising revenue is attributable to a services agreement with Google&#160;Inc. ("Google"). </font></div><div style="line-height:120%;padding-bottom:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The services agreement became effective on April&#160;1, 2016, following the expiration of the previous services agreement, and expires on March 31, 2020; however, the Company may choose to terminate the agreement effective March 31, 2019. The services agreement requires that the Company comply with certain guidelines promulgated by Google. Google may generally unilaterally update its policies and guidelines without advance notice, which could in turn require modifications to, or prohibit and/or render obsolete certain of our products, services and/or business practices, which could be costly to address or otherwise have an adverse effect on our business, financial condition and results of operations.</font></div></div>
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">CONTINGENCIES</font></div><div style="line-height:120%;padding-bottom:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In the ordinary course of business, the Company is a party to various lawsuits. The Company establishes reserves for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Management has also identified certain other legal matters where we believe an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that resolving claims against us, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent uncertainties and management's view of these matters may change in the future. The Company also evaluates other contingent matters, including income and non-income tax contingencies, to assess the likelihood of an unfavorable outcome and estimated extent of potential loss. It is possible that an unfavorable outcome of </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> or more of these lawsuits or other contingencies could have a material impact on the liquidity, results of operations, or financial condition of the Company. See "</font><a style="font-family:inherit;font-size:10pt;" href="#s95981E09616A90336C113E70193FFB57"><font style="font-family:inherit;font-size:10pt;">Note 3&#8212;Income Taxes</font></a><font style="font-family:inherit;font-size:10pt;">" for additional information related to income tax contingencies.</font></div></div>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior year amounts have been reclassified to conform to the current year presentation.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates.</font></div><div style="line-height:120%;padding-bottom:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On an ongoing basis, the Company evaluates its estimates and judgments, including those related to: the recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recoverability of definite-lived intangible assets and property and equipment; the fair values of marketable debt securities and equity securities without readily determinable fair values; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts; the determination of revenue reserves; the fair value of acquisition-related contingent consideration arrangements; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant.</font></div><div style="line-height:120%;padding-bottom:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;"></font></div></div>

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