2016 Q4 Form 10-Q Financial Statement

#000158773216000145 Filed on November 01, 2016

View on sec.gov

Income Statement

Concept 2016 Q4 2016 Q3 2015 Q3
Revenue $440.8M $232.2M $225.2M
YoY Change 13.29% 3.11% -6.75%
Cost Of Revenue $197.4M $52.30M $54.70M
YoY Change 25.17% -4.39% -27.16%
Gross Profit $243.4M $179.9M $170.5M
YoY Change 5.18% 5.53% 2.43%
Gross Profit Margin 55.22% 77.49% 75.71%
Selling, General & Admin $127.5M $112.8M $111.6M
YoY Change 3.57% 1.08% -3.88%
% of Gross Profit 52.38% 62.69% 65.45%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $37.30M $36.30M $34.00M
YoY Change 8.43% 6.76% 8.97%
% of Gross Profit 15.32% 20.17% 19.94%
Operating Expenses $164.8M $149.0M $145.6M
YoY Change 4.63% 2.34% -1.15%
Operating Profit $78.53M $30.89M $24.95M
YoY Change 6.27% 23.81% 30.5%
Interest Expense -$11.20M $10.81M $11.23M
YoY Change 1.82% -3.77% 0.65%
% of Operating Profit -14.26% 34.99% 45.02%
Other Income/Expense, Net -$300.0K $600.0K -$1.700M
YoY Change -62.5% -135.29% 183.33%
Pretax Income $67.00M $20.64M $12.00M
YoY Change 7.72% 71.98% 64.05%
Income Tax $24.70M $7.900M $4.629M
% Of Pretax Income 36.87% 38.28% 38.58%
Net Earnings $42.32M $12.74M $7.371M
YoY Change 7.94% 72.8% 58.41%
Net Earnings / Revenue 9.6% 5.49% 3.27%
Basic Earnings Per Share $0.81 $0.24 $0.14
Diluted Earnings Per Share $0.80 $0.24 $0.14
COMMON SHARES
Basic Shares Outstanding 52.25M shares 52.45M shares 52.41M shares
Diluted Shares Outstanding 52.94M shares 53.07M shares

Balance Sheet

Concept 2016 Q4 2016 Q3 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $14.70M $4.500M $53.00M
YoY Change 512.5% -91.51% -11.22%
Cash & Equivalents $14.66M $4.513M $52.97M
Short-Term Investments
Other Short-Term Assets $20.65M $12.46M $12.23M
YoY Change 23.02% 1.88% -69.83%
Inventory $159.5M $174.3M $193.3M
Prepaid Expenses
Receivables $290.9M $105.1M $103.4M
Other Receivables $1.400M $6.900M $23.70M
Total Short-Term Assets $568.9M $377.2M $417.3M
YoY Change 17.83% -9.63% -17.39%
LONG-TERM ASSETS
Property, Plant & Equipment $3.732B $3.680B $3.436B
YoY Change 6.26% 7.12% 6.14%
Goodwill $158.0M $158.0M $158.0M
YoY Change 0.0% 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $43.77M $47.14M $54.91M
YoY Change -5.24% -14.14% 4.01%
Total Long-Term Assets $4.374B $4.317B $4.089B
YoY Change 5.35% 5.56% 8.76%
TOTAL ASSETS
Total Short-Term Assets $568.9M $377.2M $417.3M
Total Long-Term Assets $4.374B $4.317B $4.089B
Total Assets $4.943B $4.694B $4.506B
YoY Change 6.65% 4.16% 5.66%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $132.0M $70.56M $57.24M
YoY Change 22.8% 23.27% -41.38%
Accrued Expenses $22.93M $17.81M $18.00M
YoY Change -27.13% -1.04% -13.33%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $41.00M $0.00
YoY Change -100.0%
Long-Term Debt Due $7.000K $7.000K $7.000K
YoY Change 0.0% 0.0% 16.67%
Total Short-Term Liabilities $443.9M $258.8M $233.5M
YoY Change 45.92% 10.86% -14.84%
LONG-TERM LIABILITIES
Long-Term Debt $1.192B $1.192B $1.201B
YoY Change 0.07% -0.75% 0.0%
Other Long-Term Liabilities $76.06M $77.33M $78.91M
YoY Change 3.85% -1.99% -56.92%
Total Long-Term Liabilities $1.269B $1.270B $1.280B
YoY Change 0.29% -0.83% -7.53%
TOTAL LIABILITIES
Total Short-Term Liabilities $443.9M $258.8M $233.5M
Total Long-Term Liabilities $1.269B $1.270B $1.280B
Total Liabilities $1.712B $1.528B $1.514B
YoY Change 9.13% 0.97% -8.74%
SHAREHOLDERS EQUITY
Retained Earnings $161.0M $137.2M $71.75M
YoY Change 69.41% 91.26% 288.11%
Common Stock $526.0K $526.0K $526.0K
YoY Change 0.0% 0.0% 1.15%
Preferred Stock
YoY Change
Treasury Stock (at cost) $18.13M $20.31M $19.11M
YoY Change 25.08% 6.31%
Treasury Stock Shares 314.7K shares 352.7K shares 446.7K shares
Shareholders Equity $1.888B $1.862B $1.811B
YoY Change
Total Liabilities & Shareholders Equity $4.943B $4.694B $4.506B
YoY Change 6.65% 4.16% 5.66%

Cashflow Statement

Concept 2016 Q4 2016 Q3 2015 Q3
OPERATING ACTIVITIES
Net Income $42.32M $12.74M $7.371M
YoY Change 7.94% 72.8% 58.41%
Depreciation, Depletion And Amortization $37.30M $36.30M $34.00M
YoY Change 8.43% 6.76% 8.97%
Cash From Operating Activities $9.200M $14.10M $6.900M
YoY Change -84.25% 104.35% -158.97%
INVESTING ACTIVITIES
Capital Expenditures -$77.80M -$86.50M -$74.30M
YoY Change -17.76% 16.42% -2.24%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change
Cash From Investing Activities -$77.80M -$86.50M -$74.30M
YoY Change -17.76% 16.42% -2.24%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 78.70M 22.70M -15.60M
YoY Change -650.35% -245.51% 11.43%
NET CHANGE
Cash From Operating Activities 9.200M 14.10M 6.900M
Cash From Investing Activities -77.80M -86.50M -74.30M
Cash From Financing Activities 78.70M 22.70M -15.60M
Net Change In Cash 10.10M -49.70M -83.00M
YoY Change -120.0% -40.12% -18.39%
FREE CASH FLOW
Cash From Operating Activities $9.200M $14.10M $6.900M
Capital Expenditures -$77.80M -$86.50M -$74.30M
Free Cash Flow $87.00M $100.6M $81.20M
YoY Change -43.14% 23.89% 26.28%

Facts In Submission

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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Tax
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CY2016Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Tax
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us-gaap Other Nonoperating Expense
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CY2016Q3 us-gaap Other Nonoperating Expense
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us-gaap Other Nonoperating Expense
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us-gaap Other Nonoperating Income
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments To Acquire Property Plant And Equipment
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us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Derivatives Reporting Of Derivative Activity
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Accounting Treatment</font><font style="font-family:inherit;font-size:10pt;"> - We record all derivative instruments at fair value, with the exception of normal purchases and normal sales that are expected to result in physical delivery. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it, or if regulatory rulings require a different accounting treatment.</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;">If certain conditions are met, we may elect to designate a derivative instrument as a hedge to mitigate the risk of exposure to changes in fair values or cash flows.</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;">The table below summarizes the various ways in which we account for our derivative instruments and the impact on our financial statements:</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="5" rowspan="1"></td></tr><tr><td style="width:23%;" rowspan="1" colspan="1"></td><td style="width:3%;" rowspan="1" colspan="1"></td><td style="width:35%;" rowspan="1" colspan="1"></td><td style="width:3%;" rowspan="1" colspan="1"></td><td style="width:36%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Recognition and Measurement</font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Accounting Treatment</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Balance Sheet</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Income Statement</font></div></td></tr><tr><td style="vertical-align:top;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="vertical-align:top;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;vertical-align:top;">Normal purchases and</font></div><div style="vertical-align:top;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;vertical-align:top;">normal sales</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Recorded at historical cost</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Change in fair value not recognized in earnings</font></div></td></tr><tr><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Mark-to-market</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Recorded at fair value</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Change in fair value recognized in, and</font></div><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">recoverable through, the purchased-gas cost adjustment mechanisms</font></div></td></tr></table></div></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;">We have not elected to designate any of our derivative instruments as hedges. Premiums paid and any cash settlements received associated with the commodity derivative instruments entered into by us are included in, and recoverable through, the purchased-gas cost adjustment mechanisms.</font></div></div>
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%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Recently Issued Accounting Standards Update </font><font style="font-family:inherit;font-size:10pt;">- In March 2016, the FASB issued ASU 2016-09, &#8220;Improvements to Employee Share-Based Payment Accounting,&#8221; which includes various new aspects to simplify how share-based payments are accounted for and presented in the financial statements. The new standard will modify several aspects of the accounting and reporting for employee share-based payments and related tax accounting impacts, including the presentation in the statements of operations and cash flows. This new guidance is required to be adopted for our interim and annual reports for periods beginning after December 15, 2016, but may be adopted early. We are evaluating the impact of this guidance and the timing of adoption.<br clear="none"/> <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 2016, the FASB issued ASU 2016-02, &#8220;Leases (Topic 842),&#8221; which prescribes recognizing lease assets and liabilities on the balance sheet and includes disclosure of key information about leasing arrangements. &#160;A modified retrospective transition approach is required for leases existing at the time of adoption. We are evaluating our population of leases, analyzing lease agreements, and holding meetings with cross-divisional teams to determine the potential impact of this accounting standard on our financial position, results of operations and cash flows and the transition approach we will utilize. This new guidance is required for our interim and annual reports for periods beginning after December 15, 2018, and early adoption is permitted.<br clear="none"/> <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 2015, the FASB issued ASU 2015-15, &#8220;Interest-Imputation of Interest (Subtopic 835-30),&#8221; which addresses the presentation and subsequent measurement of debt issuance costs associated with line of credit arrangements. We adopted this guidance in the first quarter 2016, and it did not have an impact on our financial position or results of operations. </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 2015-03, &#8220;Interest-Imputation of Interest,&#8221; which 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. We adopted this guidance in the first quarter of 2016, and have applied the changes retrospectively to all periods presented. We have presented such amounts as a direct deduction from the face amount of our long-term debt, rather than in other assets as a deferred charge in our Balance Sheets. Amortization of the debt issuance costs continues to be reported as interest expense in our Statements of Income.&#160;&#160;&#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%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2015, the FASB issued ASU 2015-05, &#8220;Intangibles-Goodwill and Other-Internal-Use Software,&#8221; which helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. We adopted this guidance prospectively in the first quarter of 2016, and it did not have a material impact on our financial position or results of operations.<br clear="none"/> <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 2014-09, &#8220;Revenue from Contracts with Customers,&#8221; which clarifies and converges the revenue recognition principles under GAAP and International Financial Reporting Standards. In July 2015, FASB delayed the effective date for one year. We are evaluating all of our sources of revenue to determine the potential effect on our financial position, results of operations and cash flows and the transition approach we will utilize. We are monitoring the FASB for additional implementation guidance that may impact the final conclusions of our evaluation. We are required to adopt this guidance for our interim and annual reports beginning with the first quarter 2018.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font><font style="font-family:inherit;font-size:10pt;"> - The preparation of our financial statements and related disclosures in accordance with GAAP requires us to make estimates and assumptions with respect to values or conditions that cannot be known with certainty that affect the reported amount of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions also affect the reported amounts of revenue and expenses during the reporting period. Items that may be estimated include, but are not limited to, the economic useful life of assets, fair value of assets and liabilities, provision for doubtful accounts, unbilled revenues for natural gas delivered but for which meters have not been read, natural gas purchased but for which no invoice has been received, provision for income taxes, including any deferred tax valuation allowances, the results of litigation and various other recorded or disclosed amounts.</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;">We evaluate these estimates on an ongoing basis using historical experience and other methods we consider reasonable based on the particular circumstances. Nevertheless, actual results may differ significantly from the estimates. Any effects on our financial position or results of operations from revisions to these estimates are recorded in the period when the facts that give rise to the revision become known.</font></div></div>

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