2015 Q4 Form 10-Q Financial Statement

#000008908915000028 Filed on November 02, 2015

View on sec.gov

Income Statement

Concept 2015 Q4 2015 Q3 2014 Q3
Revenue $769.3M $714.5M $718.3M
YoY Change -1.81% -0.54% 18.03%
Cost Of Revenue $581.5M $572.8M $570.0M
YoY Change 0.58% 0.48% 15.68%
Gross Profit $187.8M $141.7M $148.3M
YoY Change -8.52% -4.45% 28.05%
Gross Profit Margin 24.41% 19.83% 20.64%
Selling, General & Admin $33.90M $27.90M $39.70M
YoY Change -20.98% -29.72% 17.8%
% of Gross Profit 18.05% 19.69% 26.77%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $67.70M $56.80M $58.70M
YoY Change 8.15% -3.24% 21.53%
% of Gross Profit 36.05% 40.09% 39.59%
Operating Expenses $33.80M $27.80M $39.80M
YoY Change -21.21% -30.15% 18.1%
Operating Profit $157.1M $124.5M $135.1M
YoY Change -28.7% -7.82% 62.7%
Interest Expense -$43.10M $43.92M $43.38M
YoY Change 0.47% 1.26% 13.91%
% of Operating Profit -27.44% 35.26% 32.1%
Other Income/Expense, Net -$300.0K $336.0K -$9.000K
YoY Change -250.0% -3833.33% -101.35%
Pretax Income $113.7M $74.05M $91.74M
YoY Change -35.98% -19.28% 101.03%
Income Tax -$41.25M -$26.12M -$74.93M
% Of Pretax Income -36.28% -35.27% -81.69%
Net Earnings $72.35M $47.45M $17.65M
YoY Change -17.59% 168.81% -34.09%
Net Earnings / Revenue 9.41% 6.64% 2.46%
Basic Earnings Per Share $0.37 $0.24 $0.08
Diluted Earnings Per Share $0.36 $0.23 $0.08
COMMON SHARES
Basic Shares Outstanding 196.5M shares 199.3M shares 210.8M shares
Diluted Shares Outstanding 203.4M shares 213.0M shares

Balance Sheet

Concept 2015 Q4 2015 Q3 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $135.0M $142.0M $266.0M
YoY Change -23.73% -46.62% 45.36%
Cash & Equivalents $134.6M $142.0M $266.3M
Short-Term Investments
Other Short-Term Assets $47.16M $67.46M $47.45M
YoY Change -41.62% 42.18% 63.81%
Inventory $27.84M $29.56M $32.47M
Prepaid Expenses
Receivables $90.00M $82.00M $93.00M
Other Receivables $22.64M $0.00 $0.00
Total Short-Term Assets $300.1M $320.7M $467.7M
YoY Change -24.39% -31.42% 30.65%
LONG-TERM ASSETS
Property, Plant & Equipment $1.847B $1.851B $1.872B
YoY Change -0.79% -1.12% 15.34%
Goodwill $1.796B $1.800B $1.899B
YoY Change -0.8% -5.21% 37.81%
Intangibles $370.0M
YoY Change -6.04%
Long-Term Investments $5.398B $5.306B $5.595B
YoY Change -1.69% -5.17% 18.99%
Other Assets $582.4M $628.8M $619.4M
YoY Change -6.71% 1.51% 46.44%
Total Long-Term Assets $11.38B $11.33B $11.86B
YoY Change -1.31% -4.47% 18.25%
TOTAL ASSETS
Total Short-Term Assets $300.1M $320.7M $467.7M
Total Long-Term Assets $11.38B $11.33B $11.86B
Total Assets $11.68B $11.65B $12.33B
YoY Change -2.07% -5.49% 18.68%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $423.0M $450.0M $460.0M
YoY Change -6.62% -2.17% 17.35%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $86.82M $95.05M $109.3M
YoY Change -4.52% -13.02% 198.16%
Total Short-Term Liabilities $511.0M $546.6M $585.8M
YoY Change -7.43% -6.68% 35.67%
LONG-TERM LIABILITIES
Long-Term Debt $3.038B $3.046B $2.959B
YoY Change 2.49% 2.97% 31.08%
Other Long-Term Liabilities $496.9M $503.0M $430.7M
YoY Change -1.12% 16.77% 8.47%
Total Long-Term Liabilities $3.535B $3.549B $3.389B
YoY Change 1.97% 4.73% 27.69%
TOTAL LIABILITIES
Total Short-Term Liabilities $511.0M $546.6M $585.8M
Total Long-Term Liabilities $3.535B $3.549B $3.389B
Total Liabilities $4.046B $4.096B $3.975B
YoY Change 0.68% 3.04% 28.81%
SHAREHOLDERS EQUITY
Retained Earnings -$109.4M -$151.5M -$148.1M
YoY Change 33.58% 2.3% -12.79%
Common Stock $1.092B $1.116B $1.218B
YoY Change -7.94% -8.42% -5.02%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.185B $1.178B $1.357B
YoY Change
Total Liabilities & Shareholders Equity $11.68B $11.65B $12.33B
YoY Change -2.07% -5.49% 18.68%

Cashflow Statement

Concept 2015 Q4 2015 Q3 2014 Q3
OPERATING ACTIVITIES
Net Income $72.35M $47.45M $17.65M
YoY Change -17.59% 168.81% -34.09%
Depreciation, Depletion And Amortization $67.70M $56.80M $58.70M
YoY Change 8.15% -3.24% 21.53%
Cash From Operating Activities $75.60M $114.1M $85.50M
YoY Change 23.73% 33.45% -14.33%
INVESTING ACTIVITIES
Capital Expenditures -$46.30M -$40.00M -$37.80M
YoY Change -6.09% 5.82% 31.71%
Acquisitions
YoY Change
Other Investing Activities $5.600M -$1.600M $244.5M
YoY Change -75.22% -100.65% -49000.0%
Cash From Investing Activities -$40.60M -$41.70M $206.7M
YoY Change 51.49% -120.17% -805.46%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -40.10M -123.1M -166.2M
YoY Change -67.02% -25.93% 51.5%
NET CHANGE
Cash From Operating Activities 75.60M 114.1M 85.50M
Cash From Investing Activities -40.60M -41.70M 206.7M
Cash From Financing Activities -40.10M -123.1M -166.2M
Net Change In Cash -5.100M -50.70M 126.0M
YoY Change -94.16% -140.24% -421.43%
FREE CASH FLOW
Cash From Operating Activities $75.60M $114.1M $85.50M
Capital Expenditures -$46.30M -$40.00M -$37.80M
Free Cash Flow $121.9M $154.1M $123.3M
YoY Change 10.42% 24.98% -4.05%

Facts In Submission

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us-gaap Excess Tax Benefit From Share Based Compensation Operating Activities
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us-gaap Gross Profit
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us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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us-gaap Income Tax Expense Benefit
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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us-gaap Profit Loss
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us-gaap Profit Loss
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Revenues
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CY2015Q3 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
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us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
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CY2014Q3 us-gaap Sales Revenue Net
SalesRevenueNet
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us-gaap Sales Revenue Net
SalesRevenueNet
2210569000 USD
CY2015Q3 us-gaap Sales Revenue Net
SalesRevenueNet
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us-gaap Sales Revenue Net
SalesRevenueNet
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CY2014Q3 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
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us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
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CY2015Q3 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
327381000 USD
us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
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CY2014Q4 us-gaap Self Insurance Reserve
SelfInsuranceReserve
74000000 USD
CY2015Q3 us-gaap Self Insurance Reserve
SelfInsuranceReserve
76800000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
9742000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
10717000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice
20.59
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
-761000 shares
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
0 shares
us-gaap Stock Issued During Period Value Restricted Stock Award Net Of Forfeitures
StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures
0 USD
us-gaap Stock Issued During Period Value Restricted Stock Award Net Of Forfeitures
StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures
0 USD
us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
28370000 USD
us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
30491000 USD
CY2015Q3 us-gaap Stock Repurchase Program Authorized Amount1
StockRepurchaseProgramAuthorizedAmount1
400000000 USD
CY2015Q3 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1
321600000 USD
us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
761000 shares
us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
0 shares
us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
130923000 USD
us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
305488000 USD
CY2014Q4 us-gaap Stockholders Equity
StockholdersEquity
1368726000 USD
CY2015Q3 us-gaap Stockholders Equity
StockholdersEquity
1177874000 USD
CY2013Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1424378000 USD
CY2014Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1365936000 USD
CY2014Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1377378000 USD
CY2015Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1187504000 USD
us-gaap Stockholders Equity Other
StockholdersEquityOther
1564000 USD
us-gaap Stockholders Equity Other
StockholdersEquityOther
1725000 USD
us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
27.75
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
0 shares
CY2015Q3 us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
11008576 shares
us-gaap Treasury Stock Value Acquired Par Value Method
TreasuryStockValueAcquiredParValueMethod
305500000 USD
CY2015Q3 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
191700000 USD
CY2015Q3 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
50400000 USD
CY2014Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
213010000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
215365000 shares
CY2015Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
203444000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
205950000 shares
CY2014Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
210820000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
212009000 shares
CY2015Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
199310000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
201729000 shares
us-gaap Nature Of Operations
NatureOfOperations
<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;">Nature of Operations</font></div><div style="line-height:120%;padding-top:9px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are North America&#8217;s largest provider of deathcare products and services, with a network of funeral service locations and cemeteries operating in the United States and Canada. We are best known for our Dignity Memorial&#174; brand, North America's first transcontinental brand of deathcare products and services. Our other brands are Dignity Planning&#8482;, National Cremation Society&#174;, Advantage&#174; Funeral and Cremation Services, Funeraria del Angel&#8482;, Making Everlasting Memories&#174;, Neptune Society&#8482;, and Trident Society&#8482;. Our funeral and cemetery operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and related businesses, which enable us to serve a wide array of customer needs. We sell cemetery property and funeral and cemetery merchandise and services at the time of need and on a preneed basis.</font></div><div style="line-height:120%;padding-top:9px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Funeral service locations provide all professional services relating to funerals and cremations, including the use of funeral facilities and motor vehicles, arranging and directing services, removal, preparation, embalming, cremations, memorialization, and catering. Funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, on-line and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise, is sold at funeral service locations.</font></div><div style="line-height:120%;padding-top:9px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our cemeteries provide cemetery property interment rights, including developed lots, lawn crypts, mausoleum spaces, niches, and other cremation memorialization and interment options. Cemetery merchandise and services, including memorial markers and bases, outer burial containers, flowers and floral placement, other ancillary merchandise, graveside services, merchandise installation, and burial openings and closings, are sold at our cemeteries.</font></div></div>
us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">These earnings are recorded in </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Deferred preneed funeral revenue</font><font style="font-family:inherit;font-size:10pt;"> until the merchandise is delivered or the service is performed.</font></div></div><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">These earnings are recorded in </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Deferred preneed cemetery revenue</font><font style="font-family:inherit;font-size:10pt;"> until the merchandise is delivered or the service is performed.</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-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates in the Preparation of Financial Statements</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of the unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions as described in our Annual Report on Form 10-K for the year ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;">. These estimates and assumptions may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. As a result, actual results could differ from these estimates.</font></div></div>

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