2023 Q1 Form 10-K Financial Statement

#000174033223000006 Filed on February 21, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $1.618B $6.370B
YoY Change 8.16% 8.96%
Cost Of Revenue $1.188B $4.604B
YoY Change 10.0% 7.44%
Gross Profit $430.0M $1.766B
YoY Change 3.37% 13.13%
Gross Profit Margin 26.58% 27.72%
Selling, General & Admin $236.0M $974.0M
YoY Change 3.06% 6.33%
% of Gross Profit 54.88% 55.15%
Research & Development $29.00M $111.0M
YoY Change 45.0% 29.07%
% of Gross Profit 6.74% 6.29%
Depreciation & Amortization $15.00M $59.00M
YoY Change -31.82% 1.72%
% of Gross Profit 3.49% 3.34%
Operating Expenses $265.0M $1.085B
YoY Change 6.43% 8.28%
Operating Profit $155.0M $611.0M
YoY Change -7.19% 9.3%
Interest Expense $15.00M -$58.00M
YoY Change 25.0% -220.83%
% of Operating Profit 9.68% -9.49%
Other Income/Expense, Net -$44.00M -$135.0M
YoY Change -24.14% -14.56%
Pretax Income $96.00M $418.0M
YoY Change -1.03% 18.41%
Income Tax $33.00M $135.0M
% Of Pretax Income 34.38% 32.3%
Net Earnings $63.00M $283.0M
YoY Change -27.59% 16.94%
Net Earnings / Revenue 3.89% 4.44%
Basic Earnings Per Share $0.43 $1.94
Diluted Earnings Per Share $0.42 $1.90
COMMON SHARES
Basic Shares Outstanding 146.6M shares 145.8M 146.0M shares
Diluted Shares Outstanding 149.2M 149.0M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $252.0M $326.0M
YoY Change -63.27% -58.15%
Cash & Equivalents $252.0M $326.0M
Short-Term Investments
Other Short-Term Assets $198.0M $199.0M
YoY Change 32.0% 36.3%
Inventory $957.0M $975.0M
Prepaid Expenses
Receivables $1.043B $1.002B
Other Receivables $0.00 $0.00
Total Short-Term Assets $2.450B $2.502B
YoY Change -3.58% -1.53%
LONG-TERM ASSETS
Property, Plant & Equipment $351.0M $557.0M
YoY Change 22.3% 30.14%
Goodwill $2.678B
YoY Change 0.64%
Intangibles $180.0M
YoY Change 50.0%
Long-Term Investments
YoY Change
Other Assets $323.0M $129.0M
YoY Change 32.38% -42.15%
Total Long-Term Assets $3.812B $3.885B
YoY Change 15.1% 17.3%
TOTAL ASSETS
Total Short-Term Assets $2.450B $2.502B
Total Long-Term Assets $3.812B $3.885B
Total Assets $6.262B $6.387B
YoY Change 6.99% 9.12%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $936.0M $894.0M
YoY Change 6.0% 1.25%
Accrued Expenses $594.0M $602.0M
YoY Change -1.16% 10.05%
Deferred Revenue $98.00M
YoY Change 4.26%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $12.00M $12.00M
YoY Change 20.0% 20.0%
Total Short-Term Liabilities $1.542B $1.546B
YoY Change 3.21% 3.48%
LONG-TERM LIABILITIES
Long-Term Debt $1.407B $1.404B
YoY Change 15.33% 15.08%
Other Long-Term Liabilities $338.0M $908.0M
YoY Change 11.92% 2.37%
Total Long-Term Liabilities $1.745B $2.312B
YoY Change 14.65% 9.73%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.542B $1.546B
Total Long-Term Liabilities $1.745B $2.312B
Total Liabilities $3.862B $3.858B
YoY Change 7.25% 7.14%
SHAREHOLDERS EQUITY
Retained Earnings $561.0M
YoY Change 76.97%
Common Stock $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $31.00M
YoY Change 47.62%
Treasury Stock Shares
Shareholders Equity $2.400B $2.529B
YoY Change
Total Liabilities & Shareholders Equity $6.262B $6.387B
YoY Change 6.99% 9.12%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $63.00M $283.0M
YoY Change -27.59% 16.94%
Depreciation, Depletion And Amortization $15.00M $59.00M
YoY Change -31.82% 1.72%
Cash From Operating Activities $37.00M $152.0M
YoY Change -64.42% -51.75%
INVESTING ACTIVITIES
Capital Expenditures -$10.00M $85.00M
YoY Change -23.08% -234.92%
Acquisitions $665.0M
YoY Change 5945.45%
Other Investing Activities -$27.00M $14.00M
YoY Change 2600.0% -255.56%
Cash From Investing Activities -$37.00M -$764.0M
YoY Change 164.29% 1075.38%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $12.00M
YoY Change -98.99%
Cash From Financing Activities -1.000M $170.0M
YoY Change -104.76% 750.0%
NET CHANGE
Cash From Operating Activities 37.00M $152.0M
Cash From Investing Activities -37.00M -$764.0M
Cash From Financing Activities -1.000M $170.0M
Net Change In Cash -1.000M -$450.0M
YoY Change -100.9% -271.76%
FREE CASH FLOW
Cash From Operating Activities $37.00M $152.0M
Capital Expenditures -$10.00M $85.00M
Free Cash Flow $47.00M $67.00M
YoY Change -59.83% -82.28%

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ReclassificationFor the purposes of comparability, certain prior period amounts have been reclassified to conform to current period classification.
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CY2022Q4 us-gaap Allowance For Doubtful Accounts Receivable Current
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CY2021Q4 us-gaap Inventory Finished Goods
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CY2021Q4 us-gaap Inventory Net
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CY2022 us-gaap Derivatives Reporting Of Derivative Activity
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Derivatives—Our interest rate swap agreements effectively modify our exposure to interest rate risk by converting floating rate debt to a fixed rate for the term of the swap agreements, reducing the impact of interest rate changes on future interest expense. These agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the agreement without an exchange of the underlying principal amount.<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Our interest rate swap agreements are designated as cash flow hedges with effectiveness of the hedges assessed at inception and quarterly thereafter. To the extent the hedging relationship is highly effective, the unrealized gains or losses on the swaps are recorded in accumulated other comprehensive loss and reclassified into earnings within interest expense, net when the payments occur. We classify our cash flows related to interest rate swap agreements as operating activities in the Consolidated Statements of Cash Flows.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%">The fair values of the interest rate swaps are reflected as an other asset or liability in the Consolidated Balance Sheets and the change in fair value is reported in accumulated other comprehensive loss. The fair values of the interest rate swaps are estimated as the net present value of projected cash flows based upon forward interest rates at the balance sheet date. We do not offset fair value amounts recognized in our Consolidated Balance Sheets for presentation purposes. Refer to </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:115%">Note 12. Derivative Financial Instruments </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%">to Consolidated Financial Statements.</span></div>
CY2022 us-gaap Guarantees Indemnifications And Warranties Policies
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Warranties and Guarantees—Expected warranty costs for products sold are recognized based on an estimate of the amount that eventually will be required to settle such obligations. These accruals are based on factors such as past <span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">experience, length of the warranty and various other considerations. Costs of product recalls, which may include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the recalled part, are accrued as part of the warranty accrual at the time an obligation becomes probable and can be reasonably estimated. We periodically adjust these provisions to reflect actual experience and other facts and circumstances that impact the status of existing claims. Refer to </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Note 15. Commitments and Contingencies</span> to Consolidated Financial Statements.
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CY2019 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
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CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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CY2020 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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Deloitte & Touche LLP
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Minneapolis, Minnesota
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