2017 Q1 Form 10-Q Financial Statement

#000087688317000007 Filed on May 02, 2017

View on sec.gov

Income Statement

Concept 2017 Q1 2016 Q1
Revenue $344.7M $309.0M
YoY Change 11.54% 2.26%
Cost Of Revenue $237.6M $211.4M
YoY Change 12.35% 0.49%
Gross Profit $107.1M $97.60M
YoY Change 9.78% 6.31%
Gross Profit Margin 31.08% 31.58%
Selling, General & Admin $87.80M $77.80M
YoY Change 12.85% 4.71%
% of Gross Profit 81.95% 79.72%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $5.600M $5.028M
YoY Change 11.38% 10.82%
% of Gross Profit 5.23% 5.15%
Operating Expenses $98.70M $89.10M
YoY Change 10.77% 2.89%
Operating Profit $8.399M $8.548M
YoY Change -1.74% 64.54%
Interest Expense -$14.10M -$33.20M
YoY Change -57.53% -0.9%
% of Operating Profit -167.88% -388.39%
Other Income/Expense, Net -$13.97M -$33.18M
YoY Change -57.89% 0.5%
Pretax Income -$5.575M -$24.64M
YoY Change -77.37% -11.45%
Income Tax $3.969M -$1.972M
% Of Pretax Income
Net Earnings -$10.57M -$23.63M
YoY Change -55.29% -26.36%
Net Earnings / Revenue -3.07% -7.65%
Basic Earnings Per Share -$0.21 -$0.47
Diluted Earnings Per Share -$0.21 -$0.47
COMMON SHARES
Basic Shares Outstanding 53.00M shares 50.00M shares
Diluted Shares Outstanding 53.00M shares 50.00M shares

Balance Sheet

Concept 2017 Q1 2016 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $23.20M $21.80M
YoY Change 6.42% 23.86%
Cash & Equivalents $23.19M $21.84M
Short-Term Investments
Other Short-Term Assets $38.61M $49.80M
YoY Change -22.48% 1.87%
Inventory
Prepaid Expenses
Receivables $428.2M $392.6M
Other Receivables $0.00 $0.00
Total Short-Term Assets $532.4M $491.9M
YoY Change 8.23% -13.04%
LONG-TERM ASSETS
Property, Plant & Equipment $82.23M $64.76M
YoY Change 26.98% 8.65%
Goodwill $846.1M $877.2M
YoY Change -3.54% 4.57%
Intangibles $80.97M $67.49M
YoY Change 19.97% -12.76%
Long-Term Investments $4.606M $6.632M
YoY Change -30.55% -25.38%
Other Assets $38.75M $42.98M
YoY Change -9.83% -35.01%
Total Long-Term Assets $1.094B $1.080B
YoY Change 1.35% 1.86%
TOTAL ASSETS
Total Short-Term Assets $532.4M $491.9M
Total Long-Term Assets $1.094B $1.080B
Total Assets $1.627B $1.572B
YoY Change 3.51% -3.33%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $252.1M $313.2M
YoY Change -19.49% 24.33%
Accrued Expenses $294.3M $212.9M
YoY Change 38.23% -34.29%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $260.0K $415.0K
YoY Change -37.35% -21.99%
Total Short-Term Liabilities $812.4M $766.0M
YoY Change 6.06% -9.85%
LONG-TERM LIABILITIES
Long-Term Debt $887.3M $896.7M
YoY Change -1.05% 17.71%
Other Long-Term Liabilities $54.61M $44.78M
YoY Change 21.96% -2.26%
Total Long-Term Liabilities $941.9M $941.5M
YoY Change 0.04% 16.57%
TOTAL LIABILITIES
Total Short-Term Liabilities $812.4M $766.0M
Total Long-Term Liabilities $941.9M $941.5M
Total Liabilities $1.983B $2.026B
YoY Change -2.09% 10.29%
SHAREHOLDERS EQUITY
Retained Earnings -$585.5M -$550.3M
YoY Change 6.4% 5.47%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$483.1M -$605.9M
YoY Change
Total Liabilities & Shareholders Equity $1.627B $1.572B
YoY Change 3.51% -4.18%

Cashflow Statement

Concept 2017 Q1 2016 Q1
OPERATING ACTIVITIES
Net Income -$10.57M -$23.63M
YoY Change -55.29% -26.36%
Depreciation, Depletion And Amortization $5.600M $5.028M
YoY Change 11.38% 10.82%
Cash From Operating Activities -$33.22M -$122.4M
YoY Change -72.86% 7.69%
INVESTING ACTIVITIES
Capital Expenditures $9.413M $5.539M
YoY Change 69.94% -2.07%
Acquisitions $0.00 $1.774M
YoY Change -100.0% 35.42%
Other Investing Activities $50.00K $815.0K
YoY Change -93.87% -64.84%
Cash From Investing Activities -$11.09M -$8.128M
YoY Change 36.44% -10.35%
FINANCING ACTIVITIES
Cash Dividend Paid $22.00K $10.64M
YoY Change -99.79% 0.0%
Common Stock Issuance & Retirement, Net $51.00K $902.0K
YoY Change -94.35% 2.97%
Debt Paid & Issued, Net $135.0K $156.0K
YoY Change -13.46% 23.81%
Cash From Financing Activities $39.63M $92.44M
YoY Change -57.13% 254.92%
NET CHANGE
Cash From Operating Activities -$33.22M -$122.4M
Cash From Investing Activities -$11.09M -$8.128M
Cash From Financing Activities $39.63M $92.44M
Net Change In Cash -$4.677M -$38.10M
YoY Change -87.72% -60.6%
FREE CASH FLOW
Cash From Operating Activities -$33.22M -$122.4M
Capital Expenditures $9.413M $5.539M
Free Cash Flow -$42.63M -$128.0M
YoY Change -66.68% 7.23%

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CY2016Q1 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2017Q1 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2016Q1 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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CY2016Q4 us-gaap Intangible Assets Net Excluding Goodwill
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CY2017Q1 us-gaap Intangible Assets Net Excluding Goodwill
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CY2016Q1 us-gaap Intangible Assets Net Including Goodwill
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CY2017Q1 us-gaap Intangible Assets Net Including Goodwill
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CY2016Q1 us-gaap Interest And Debt Expense
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CY2016Q1 us-gaap Interest Paid
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CY2017Q1 us-gaap Letters Of Credit Outstanding Amount
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CY2016Q4 us-gaap Liabilities
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2019758000 USD
CY2017Q1 us-gaap Liabilities
Liabilities
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CY2016Q4 us-gaap Liabilities And Stockholders Equity
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CY2017Q1 us-gaap Liabilities And Stockholders Equity
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CY2016Q4 us-gaap Liabilities Current
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CY2017Q1 us-gaap Liabilities Current
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CY2016Q4 us-gaap Long Term Debt Current
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CY2017Q1 us-gaap Long Term Debt Current
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CY2016Q4 us-gaap Long Term Debt Noncurrent
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CY2017Q1 us-gaap Long Term Debt Noncurrent
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CY2016Q4 us-gaap Long Term Line Of Credit
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CY2017Q1 us-gaap Long Term Line Of Credit
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CY2017Q1 us-gaap Minority Interest Ownership Percentage By Parent
MinorityInterestOwnershipPercentageByParent
1
CY2016Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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CY2017Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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CY2016Q1 us-gaap Net Cash Provided By Used In Investing Activities
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CY2017Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
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CY2016Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
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CY2017Q1 us-gaap Net Cash Provided By Used In Operating Activities
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CY2016Q1 us-gaap Net Income Loss
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CY2017Q1 us-gaap Net Income Loss
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CY2016Q1 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
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CY2016 us-gaap Net Income Loss Attributable To Noncontrolling Interest
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CY2017Q1 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
883000 USD
CY2016Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2017Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2017Q1 us-gaap Noncontrolling Interest Increase From Business Combination
NoncontrollingInterestIncreaseFromBusinessCombination
63000 USD
CY2016Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-33183000 USD
CY2017Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
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CY2017Q1 us-gaap Number Of Businesses Acquired
NumberOfBusinessesAcquired
0
CY2017Q1 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1 segment
CY2016Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
8548000 USD
CY2017Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
8399000 USD
CY2016Q4 us-gaap Other Assets Current
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34862000 USD
CY2017Q1 us-gaap Other Assets Current
OtherAssetsCurrent
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CY2016Q4 us-gaap Other Assets Noncurrent
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CY2017Q1 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
38753000 USD
CY2016Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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-8825000 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
68000 USD
CY2016Q1 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
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CY2017Q1 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
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CY2016Q1 us-gaap Other Expense Disclosure Nonoperating
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58
CY2017Q1 us-gaap Other Expense Disclosure Nonoperating
OtherExpenseDisclosureNonoperating
128
CY2016Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
56012000 USD
CY2017Q1 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
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CY2016Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
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CY2017Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
2567000 USD
CY2016Q1 us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
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CY2017Q1 us-gaap Payments For Proceeds From Other Investing Activities
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CY2016Q1 us-gaap Payments For Proceeds From Previous Acquisition
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CY2017Q1 us-gaap Payments For Proceeds From Previous Acquisition
PaymentsForProceedsFromPreviousAcquisition
5183000 USD
CY2016Q1 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
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CY2017Q1 us-gaap Payments For Repurchase Of Common Stock
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CY2016Q1 us-gaap Payments Of Dividends
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CY2017Q1 us-gaap Payments Of Dividends
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CY2016Q1 us-gaap Payments Of Financing Costs
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CY2017Q1 us-gaap Payments Of Financing Costs
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CY2016Q1 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
1774000 USD
CY2017Q1 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
0 USD
CY2016Q1 us-gaap Payments To Acquire Property Plant And Equipment
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5539000 USD
CY2017Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
9413000 USD
CY2016Q1 us-gaap Payments To Minority Shareholders
PaymentsToMinorityShareholders
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CY2016 us-gaap Payments To Minority Shareholders
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CY2017Q1 us-gaap Payments To Minority Shareholders
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CY2016Q1 us-gaap Profit Loss
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CY2017Q1 us-gaap Profit Loss
ProfitLoss
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CY2016Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
78377000 USD
CY2017Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
82228000 USD
CY2016Q4 us-gaap Redeemable Noncontrolling Interest Equity Fair Value
RedeemableNoncontrollingInterestEquityFairValue
60180000 USD
CY2017Q1 us-gaap Redeemable Noncontrolling Interest Equity Fair Value
RedeemableNoncontrollingInterestEquityFairValue
60383000 USD
CY2016Q1 us-gaap Repayments Of Long Term Debt
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156000 USD
CY2017Q1 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
135000 USD
CY2016Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-574932000 USD
CY2017Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-585498000 USD
CY2016Q1 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
309042000 USD
CY2017Q1 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
344700000 USD
CY2016Q1 us-gaap Share Based Compensation
ShareBasedCompensation
4685000 USD
CY2017Q1 us-gaap Share Based Compensation
ShareBasedCompensation
4950000 USD
CY2017Q1 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
4153000 USD
CY2017Q1 us-gaap Stock Issued During Period Value Restricted Stock Award Net Of Forfeitures
StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures
0 USD
CY2017Q1 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
51000 USD
CY2016Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-502560000 USD
CY2017Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-417186000 USD
CY2017Q1 us-gaap Temporary Equity Accretion To Redemption Value
TemporaryEquityAccretionToRedemptionValue
-195000 USD
CY2016Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2017Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2016Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
50002552 shares
CY2017Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
52998244 shares
CY2016Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
50002552 shares
CY2017Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
52998244 shares
CY2016Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
50002552 shares
CY2017Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
52998244 shares
CY2017Q1 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Concentration of Credit Risk.</font><font style="font-family:inherit;font-size:10pt;"> The Company provides marketing communications services to clients who operate in most industry sectors. Credit is granted to qualified clients in the ordinary course of business. Due to the diversified nature of the Company&#8217;s client base, the Company does not believe that it is exposed to a concentration of credit risk. </font><font style="font-family:inherit;font-size:10pt;">No</font><font style="font-family:inherit;font-size:10pt;"> client accounted for more than </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> of the Company&#8217;s consolidated accounts receivable at </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">. </font><font style="font-family:inherit;font-size:10pt;">No</font><font style="font-family:inherit;font-size:10pt;"> client accounted for </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> of the Company&#8217;s revenue for the </font><font style="font-family:inherit;font-size:10pt;">three months ended March 31, 2017</font><font style="font-family:inherit;font-size:10pt;"> or for the </font><font style="font-family:inherit;font-size:10pt;">three months ended March 31, 2016</font><font style="font-family:inherit;font-size:10pt;">.</font></div></div>
CY2017Q1 us-gaap Guarantees Indemnifications And Warranties Policies
GuaranteesIndemnificationsAndWarrantiesPolicies
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Guarantees</font><font style="font-family:inherit;font-size:10pt;">.&#160;&#160;Guarantees issued or modified by the Company to third parties after January 1, 2003 are generally recognized at the inception or modification of the guarantee as a liability for the obligations it has undertaken in issuing the guarantee, including its ongoing obligation to stand ready to perform over the term of the guarantee in the event that the specified triggering events or conditions occur. The initial measurement of that liability is the fair value of the guarantee. The recognition of a liability is required even if it is not probable that payments will be required under a guarantee. The Company&#8217;s liability associated with guarantees is not significant. See Note </font><font style="font-family:inherit;font-size:10pt;">12</font><font style="font-family:inherit;font-size:10pt;">.</font></div></div>
CY2017Q1 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Reclassifications</font><font style="font-family:inherit;font-size:10pt;">. Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. During the three months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">, the Company changed the presentation of book overdrafts on its statement of cash flows to classify the associated cash flows as operating activities. Book overdrafts were previously presented within financing activities. This resulted in cash inflows of </font><font style="font-family:inherit;font-size:10pt;">$6,271</font><font style="font-family:inherit;font-size:10pt;"> being reclassified from financing activities to operating activities for the three months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">. There was no impact on the Company&#8217;s consolidated statements operations, comprehensive income (loss), or balance sheets.</font></div></div>
CY2017Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates.</font><font style="font-family:inherit;font-size:10pt;"> The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities including goodwill, intangible assets, contingent deferred acquisition consideration, valuation allowances for receivables, deferred tax assets and the amounts of revenue and expenses reported during the period. These estimates are evaluated on an ongoing basis and are based on historical experience, current conditions and various other assumptions believed to be reasonable under the circumstances. Actual results could differ from these estimates.</font></div></div>

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