2017 Q4 Form 10-K Financial Statement

#000139681419000008 Filed on February 28, 2019

View on sec.gov

Income Statement

Concept 2017 Q4 2017 Q3 2017 Q2
Revenue $79.08M $67.34M $70.93M
YoY Change 8.47% -1.49% 1.86%
Cost Of Revenue $21.30M $18.23M $23.81M
YoY Change -9.85% -57.76% 3.29%
Gross Profit $57.78M $49.11M $47.12M
YoY Change 17.25% 94.85% 1.15%
Gross Profit Margin 73.07% 72.93% 66.43%
Selling, General & Admin $39.20M $40.64M $39.55M
YoY Change 12.97% 11.92% -9.43%
% of Gross Profit 67.84% 82.77% 83.93%
Research & Development $10.00M $11.78M $18.86M
YoY Change -41.52% 20.72% 101.41%
% of Gross Profit 17.31% 23.98% 40.01%
Depreciation & Amortization $3.660M $3.400M $3.700M
YoY Change 12.27% 3.03% 15.63%
% of Gross Profit 6.33% 6.92% 7.85%
Operating Expenses $70.61M $70.91M $86.71M
YoY Change -6.3% -20.53% 13.97%
Operating Profit -$12.83M -$3.572M -$15.78M
YoY Change -50.81% -82.88% 144.88%
Interest Expense -$3.800M $5.127M $5.226M
YoY Change 153.33% 220.24% 201.56%
% of Operating Profit
Other Income/Expense, Net $0.00 -$3.980M -$3.933M
YoY Change -100.0% 215.12% 170.12%
Pretax Income $4.600M -$7.552M -$19.71M
YoY Change -215.0% -65.87% 149.53%
Income Tax $0.00 $45.00K $30.00K
% Of Pretax Income 0.0%
Net Earnings $4.595M -$7.597M -$19.74M
YoY Change -215.66% -65.72% 148.09%
Net Earnings / Revenue 5.81% -11.28% -27.83%
Basic Earnings Per Share -$0.19 -$0.49
Diluted Earnings Per Share $113.3K -$187.7K -$490.0K
COMMON SHARES
Basic Shares Outstanding 40.57M shares 40.46M shares 40.16M shares
Diluted Shares Outstanding 40.16M shares

Balance Sheet

Concept 2017 Q4 2017 Q3 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $311.3M $294.1M $382.4M
YoY Change 80.36% 82.56% 135.03%
Cash & Equivalents $54.13M $26.22M $53.81M
Short-Term Investments $257.2M $267.9M $328.6M
Other Short-Term Assets $6.700M $5.600M $7.500M
YoY Change -27.96% -44.55% 29.31%
Inventory $41.41M $39.11M $33.60M
Prepaid Expenses
Receivables $31.66M $27.02M $27.47M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $391.1M $365.8M $451.0M
YoY Change 60.89% 55.38% 74.81%
LONG-TERM ASSETS
Property, Plant & Equipment $107.0M $105.9M $103.2M
YoY Change 5.97% 5.54% 3.99%
Goodwill $55.20M $52.96M $50.94M
YoY Change 18.1% 18.55% 19.16%
Intangibles
YoY Change
Long-Term Investments $74.20M $80.80M
YoY Change
Other Assets $825.0K $545.0K $572.0K
YoY Change 32.21% -16.28% -15.51%
Total Long-Term Assets $237.3M $240.3M $154.8M
YoY Change 59.9% 64.89% 8.44%
TOTAL ASSETS
Total Short-Term Assets $391.1M $365.8M $451.0M
Total Long-Term Assets $237.3M $240.3M $154.8M
Total Assets $628.4M $606.1M $605.7M
YoY Change 60.52% 59.01% 51.17%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $14.66M $12.28M $10.39M
YoY Change 95.15% 68.49% 125.23%
Accrued Expenses $41.06M $39.70M $46.76M
YoY Change 11.98% 27.75% 21.98%
Deferred Revenue
YoY Change
Short-Term Debt $300.0K $0.00 $0.00
YoY Change -100.0% -100.0%
Long-Term Debt Due $300.0K $300.0K
YoY Change
Total Short-Term Liabilities $56.22M $52.34M $57.51M
YoY Change 25.38% -64.36% -61.77%
LONG-TERM LIABILITIES
Long-Term Debt $276.2M $272.7M $269.3M
YoY Change 154.09%
Other Long-Term Liabilities $16.50M $16.23M $17.86M
YoY Change -12.77% 29.27% 26.1%
Total Long-Term Liabilities $16.50M $16.23M $17.86M
YoY Change -12.77% 29.27% 26.1%
TOTAL LIABILITIES
Total Short-Term Liabilities $56.22M $52.34M $57.51M
Total Long-Term Liabilities $16.50M $16.23M $17.86M
Total Liabilities $348.9M $341.3M $344.7M
YoY Change 102.27% 104.36% 100.0%
SHAREHOLDERS EQUITY
Retained Earnings -$389.1M -$393.7M -$386.1M
YoY Change 12.39% 15.04% 20.63%
Common Stock $41.00K $41.00K $40.00K
YoY Change 10.81% 10.81% 8.11%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares 0.000 shares 0.000 shares 0.000 shares
Shareholders Equity $279.5M $264.8M $261.0M
YoY Change
Total Liabilities & Shareholders Equity $628.4M $606.1M $605.7M
YoY Change 60.52% 59.01% 51.17%

Cashflow Statement

Concept 2017 Q4 2017 Q3 2017 Q2
OPERATING ACTIVITIES
Net Income $4.595M -$7.597M -$19.74M
YoY Change -215.66% -65.72% 148.09%
Depreciation, Depletion And Amortization $3.660M $3.400M $3.700M
YoY Change 12.27% 3.03% 15.63%
Cash From Operating Activities $16.94M -$2.810M $3.650M
YoY Change -2.36% -124.06% -51.59%
INVESTING ACTIVITIES
Capital Expenditures -$5.080M -$5.420M -$5.150M
YoY Change 4.1% 38.62% -41.94%
Acquisitions $15.00M
YoY Change
Other Investing Activities $13.77M -$22.05M -$56.00M
YoY Change -775.0% 134.33% 419.48%
Cash From Investing Activities $8.690M -$27.47M -$61.15M
YoY Change -225.76% 106.23% 211.35%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.280M 2.690M 2.330M
YoY Change 113.08% 249.35% -2.1%
NET CHANGE
Cash From Operating Activities 16.94M -2.810M 3.650M
Cash From Investing Activities 8.690M -27.47M -61.15M
Cash From Financing Activities 2.280M 2.690M 2.330M
Net Change In Cash 27.91M -27.59M -55.17M
YoY Change 142.48% 3071.26% 467.59%
FREE CASH FLOW
Cash From Operating Activities $16.94M -$2.810M $3.650M
Capital Expenditures -$5.080M -$5.420M -$5.150M
Free Cash Flow $22.02M $2.610M $8.800M
YoY Change -0.94% -83.26% -46.37%

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CY2018 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%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Recent Accounting Pronouncements Not Adopted as of December 31, 2018</font></div><div style="line-height:120%;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:13px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued ASU 2016-02,&#160;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Leases (Topic 842)</font><font style="font-family:inherit;font-size:10pt;">&#160;and subsequently issued clarifications and corrections to the update by issuing ASU 2018-10 in July 2018.&#160;This update requires lessees to recognize lease assets and lease liabilities on the consolidated balance sheet for those leases classified as operating leases under previous authoritative guidance. Upon adoption, the lease liability will be equal to the present value of future lease payments and a right-of-use, or ROU, asset will be based on the lease liability, subject to adjustment for items such as initial direct costs. For income statement purposes, the new standard retains a dual model similar to ASC 840, requiring leases to be classified as either operating or financing. Operating leases will continue to result in straight-line expense while financing leases will result in a front-loaded expense pattern (similar to current accounting guidance by lessees for operating and capital leases, respectively, under ASC 840). </font></div><div style="line-height:120%;padding-bottom:13px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">There are a number of practical expedients available to the Company at transition. The transition practical expedients are that the Company may elect to not re-assess: (i) whether its contracts contain a lease under the new definition, (ii) the classification of those leases and (iii) the accounting for any initial direct costs previously incurred. In addition, the Company may apply hindsight in determining the lease terms and in assessing a purchase option on its existing leases and any potential impairments that may exist on the ROU assets to be recognized at adoption. The Company may also elect to not recognize an ROU asset and lease liability for those leases with a remaining lease term of 12 months or less. The Company will apply these practical expedients upon adoption.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Upon adoption, ROU assets and lease liabilities are being recognized on the Company&#8217;s consolidated balance sheets. The lease liability recognized upon adoption is based upon the present value of the sum of the remaining minimum lease payments (as previously identified under ASC 840) and any amounts probable of being owed under a residual value guarantee (if applicable), to be determined using the discount rate then in effect. The interest rate is based on the Company&#8217;s ability to borrow on a collateralized basis over a similar remaining term and in a similar economic environment. The ROU asset to be recorded is based on the lease liability and adjusted for any prepaid or accrued lease payments, the remaining balance of any lease incentives, initial indirect costs and impairments (if applicable). </font></div><div style="line-height:120%;padding-bottom:13px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The standard is effective for the Company beginning January 1, 2019. The Company elected to adopt the new standard at the beginning of the period of adoption through a cumulative-effect adjustment. The Company will reflect its ROU assets, lease liabilities and any cumulative-effect adjustment to retained earnings in its consolidated financial statements beginning on January 1, 2019.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company continues to evaluate the impact of ASU 2016-02 on its consolidated financial statements. The recognition of lease liabilities and corresponding ROU assets is expected to have a material impact on the Company&#8217;s consolidated balance sheet. The Company estimates that it will record approximately </font><font style="font-family:inherit;font-size:10pt;">$35.0 million</font><font style="font-family:inherit;font-size:10pt;"> to </font><font style="font-family:inherit;font-size:10pt;">$38.0 million</font><font style="font-family:inherit;font-size:10pt;"> of lease liabilities and </font><font style="font-family:inherit;font-size:10pt;">$26.0 million</font><font style="font-family:inherit;font-size:10pt;"> to </font><font style="font-family:inherit;font-size:10pt;">$29.0 million</font><font style="font-family:inherit;font-size:10pt;"> of ROU assets as of January 1, 2019, the difference representing previously recorded lease-related assets and liabilities. The Company does not believe the adoption of this standard will have a material impact on its consolidated statements of operations, stockholders&#8217; equity or cash flows. Refer to Note&#160;18,&#160;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Commitments and Contingencies</font><font style="font-family:inherit;font-size:10pt;">, for further information on the Company&#8217;s existing leases.</font></div><div style="line-height:120%;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In June 2016, the FASB issued ASU 2016-13, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Financial Instruments&#8212;Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments</font><font style="font-family:inherit;font-size:10pt;">, which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. This update also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity&#8217;s portfolio. This standard will become effective for the Company beginning January 1, 2020, with early adoption permitted. The Company is currently evaluating the impact of ASU 2016-13 on its consolidated financial statements.</font></div><div style="line-height:120%;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In August 2018, the FASB issued ASU 2018-13, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Fair Value Measurement (Topic 820): Disclosure Framework. </font><font style="font-family:inherit;font-size:10pt;">The purpose of the update is to improve the effectiveness of the fair value measurement disclosures that allows for clear communication of information that is most important to the users of financial statements. There were certain required disclosures that have been removed or modified. In addition, the update added the following disclosures: (i) changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and (ii) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The standard will become effective for the Company beginning January 1, 2020, with early adoption permitted. The Company is currently evaluating the impact of ASU 2018-13 on its consolidated financial statements.</font></div><div style="line-height:120%;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:13px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In August 2018, the FASB issued ASU 2018-15, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Intangibles&#8212;Goodwill and Other Internal-Use Software (Subtopic 350-40: Customer&#8217;s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract</font><font style="font-family:inherit;font-size:10pt;">, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update provides guidance to determine which implementation costs to capitalize as they relate to the service contract and which costs to expense. In addition, the update further defines the term of the hosting arrangement to include the non-cancelable period of the arrangement plus periods covered by (i) an option to extend the arrangement if the customer is reasonably certain to exercise that option; (ii) an option to terminate the arrangement if the customer is reasonably certain not to exercise the termination option and (iii) an option to extend (or not to terminate) the arrangement in which exercise of the option is in the control of the vendor. Any expense related to the capitalized implementation costs should be recorded in the same financial statement line item in the consolidated statements of operations as the fees associated with the hosting element of the arrangement, and the payments for capitalized implementation costs should be classified in the same manner as payments made for fees associated with the hosting element in the consolidated statements of cash flows. This standard will become effective for the Company beginning January 1, 2020. The amendments may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the impact of ASU 2018-15 on its consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:10px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or not significant to the consolidated financial statements of the Company.</font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and contingent liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, among other things, revenue recognition, inventory costs, impairments of equity investments, long-lived assets, goodwill, liabilities and accruals and the valuation of deferred tax assets. The Company&#8217;s critical accounting policies are those that are both most important to the Company&#8217;s consolidated financial condition and results of operations and require the most difficult, subjective or complex judgments on the part of management in their application, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Because of the uncertainty of factors surrounding the estimates or judgments used in the preparation of the consolidated financial statements, actual results could differ from these estimates.</font></div></div>

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