2015 Q2 Form 10-Q Financial Statement

#000006198615000042 Filed on August 07, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2014 Q2
Revenue $477.7M $1.013B
YoY Change -52.83% -2.34%
Cost Of Revenue $379.9M $742.0M
YoY Change -48.8% -2.51%
Gross Profit $97.80M $272.3M
YoY Change -64.08% -1.34%
Gross Profit Margin 20.47% 26.89%
Selling, General & Admin $79.50M $165.5M
YoY Change -51.96% 3.76%
% of Gross Profit 81.29% 60.78%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $12.90M $27.30M
YoY Change -52.75% 2.63%
% of Gross Profit 13.19% 10.03%
Operating Expenses $80.10M $174.4M
YoY Change -54.07% 3.56%
Operating Profit $17.10M $95.40M
YoY Change -82.08% -10.59%
Interest Expense $24.00M $25.10M
YoY Change -4.38% -22.05%
% of Operating Profit 140.35% 26.31%
Other Income/Expense, Net -$22.20M -$29.30M
YoY Change -24.23% -17.0%
Pretax Income -$5.100M $66.10M
YoY Change -107.72% -7.42%
Income Tax -$700.0K $19.20M
% Of Pretax Income 29.05%
Net Earnings $23.30M $46.60M
YoY Change -50.0% -14.5%
Net Earnings / Revenue 4.88% 4.6%
Basic Earnings Per Share $0.19 $0.35
Diluted Earnings Per Share $0.19 $0.34
COMMON SHARES
Basic Shares Outstanding 136.1M shares 135.0M shares
Diluted Shares Outstanding 138.0M shares 137.4M shares

Balance Sheet

Concept 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $67.70M $103.5M
YoY Change -34.59% 9.64%
Cash & Equivalents $67.70M $103.5M
Short-Term Investments
Other Short-Term Assets $129.5M $126.2M
YoY Change 2.61% 16.96%
Inventory $743.4M $830.9M
Prepaid Expenses
Receivables $251.0M $316.9M
Other Receivables $0.00 $0.00
Total Short-Term Assets $1.281B $1.492B
YoY Change -14.17% 2.3%
LONG-TERM ASSETS
Property, Plant & Equipment $569.5M $601.6M
YoY Change -5.34% 7.45%
Goodwill $1.185B $1.218B
YoY Change -2.74% 0.94%
Intangibles $687.7M $749.1M
YoY Change -8.2% -3.54%
Long-Term Investments
YoY Change
Other Assets $122.8M $126.7M
YoY Change -3.08% -15.14%
Total Long-Term Assets $2.565B $2.696B
YoY Change -4.85% 0.11%
TOTAL ASSETS
Total Short-Term Assets $1.281B $1.492B
Total Long-Term Assets $2.565B $2.696B
Total Assets $3.846B $4.188B
YoY Change -8.17% 0.88%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $435.2M $518.1M
YoY Change -16.0% 0.62%
Accrued Expenses $290.9M $279.7M
YoY Change 4.0% -6.14%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $67.50M $74.70M
YoY Change -9.64% -22.35%
Total Short-Term Liabilities $970.1M $1.047B
YoY Change -7.37% -5.66%
LONG-TERM LIABILITIES
Long-Term Debt $1.561B $1.747B
YoY Change -10.62% -2.99%
Other Long-Term Liabilities $107.2M $134.2M
YoY Change -20.12% -19.4%
Total Long-Term Liabilities $2.076B $2.295B
YoY Change -9.54% -4.43%
TOTAL LIABILITIES
Total Short-Term Liabilities $970.1M $1.047B
Total Long-Term Liabilities $2.076B $2.295B
Total Liabilities $3.046B $3.342B
YoY Change -8.86% -4.82%
SHAREHOLDERS EQUITY
Retained Earnings $501.8M $391.0M
YoY Change 28.34% 34.78%
Common Stock $550.7M $534.2M
YoY Change 3.09% 7.23%
Preferred Stock
YoY Change
Treasury Stock (at cost) $71.60M $73.90M
YoY Change -3.11% -6.1%
Treasury Stock Shares 26.59M shares 27.88M shares
Shareholders Equity $799.2M $845.4M
YoY Change
Total Liabilities & Shareholders Equity $3.846B $4.188B
YoY Change -8.17% 0.88%

Cashflow Statement

Concept 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income $23.30M $46.60M
YoY Change -50.0% -14.5%
Depreciation, Depletion And Amortization $12.90M $27.30M
YoY Change -52.75% 2.63%
Cash From Operating Activities $55.50M $72.20M
YoY Change -23.13% 58.33%
INVESTING ACTIVITIES
Capital Expenditures -$14.00M -$18.30M
YoY Change -23.5% -28.52%
Acquisitions
YoY Change
Other Investing Activities $2.600M $1.100M
YoY Change 136.36% 120.0%
Cash From Investing Activities -$11.40M -$17.20M
YoY Change -33.72% -31.47%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -47.40M -30.30M
YoY Change 56.44% 8.6%
NET CHANGE
Cash From Operating Activities 55.50M 72.20M
Cash From Investing Activities -11.40M -17.20M
Cash From Financing Activities -47.40M -30.30M
Net Change In Cash -3.300M 24.70M
YoY Change -113.36% -433.78%
FREE CASH FLOW
Cash From Operating Activities $55.50M $72.20M
Capital Expenditures -$14.00M -$18.30M
Free Cash Flow $69.50M $90.50M
YoY Change -23.2% 27.11%

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us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Recent Accounting Changes and Pronouncements</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2015, the FASB issued Accounting Standards Update (&#8220;ASU&#8221;) No. 2015-05, &#8220;Customer&#8217;s Accounting for Fees Paid in a Cloud Computing Arrangement.&#8221; This update provides guidance on accounting for a software license in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. Further, all software licenses are within the scope of Accounting Standards Codification Subtopic 350-40 and will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The company believes the adoption of this ASU will not have a material impact on its consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2015, the FASB issued ASU No. 2015-03, &#8220;Simplifying the Presentation of Debt Issuance Costs.&#8221; To simplify the presentation of debt issuance costs, this update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, rather than as a deferred asset. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early application permitted. The guidance will be applied on a retrospective basis. The company is evaluating the impact that the adoption of this ASU will have on the company's consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2015, the FASB issued ASU No. 2015-02, &#8220;Consolidation (Topic 820)&#8212;Amendments to the Consolidation Analysis.&#8221; This update amends the current consolidation guidance for both the variable interest entity (VIE) and voting interest entity (VOE) consolidation models. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The company believes the adoption of this ASU will not have a material impact on its consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2015, the FASB issued ASU No. 2015-01, &#8220;Income Statement&#8212;Extraordinary and Unusual Items.&#8221; This update eliminates from GAAP the concept of extraordinary items. ASU 2015-01 is effective for the first interim period within fiscal years beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. The company believes the adoption of this ASU will not have a material impact on its consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In August 2014, the FASB issued ASU No. 2014-15, &#8220;Presentation of Financial Statements&#8212;Going Concern.&#8221; This update provided guidance on management&#8217;s responsibility in evaluating whether there is substantial doubt about a company&#8217;s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective in the first annual period ending after December 15, 2016, with early adoption permitted. The company believes the adoption of this ASU will not have a material impact on the its consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;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 provided a principles-based approach to revenue recognition to depict the transfer of 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. This ASU provides a five-step model to be applied to all contracts with customers. The five steps are to identify the contract(s) with the customer, identify the performance obligations in the contact, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when each performance obligation is satisfied. The revenue standard is expected to be effective for the first interim period within fiscal years beginning after December 15, 2017 (as proposed by the FASB in July 2015), and can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of initial application along with additional disclosures. Early adoption is permitted as of the original effective date&#8212;the first interim period within fiscal years beginning after December 15, 2016. The company is evaluating the impact, if any, the adoption of this ASU will have on the company&#8217;s consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 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 ASU changes the requirements for reporting discontinued operations in Accounting Standards Codification Subtopic 205-20, and now requires a disposal of a component of an entity or a group of components of an entity to be reported in discontinued operations only if the disposal represents a strategic shift that has (or will have) a major effect on an entity&#8217;s operations and financial results. There will also be additional disclosures required. The amendments in this ASU are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2014. The significance of this guidance for the company is dependent on any future disposals. &#160;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>

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