2024 Q4 Form 10-Q Financial Statement

#000094539424000054 Filed on November 06, 2024

View on sec.gov

Income Statement

Concept 2024 Q4 2024 Q3 2024 Q2
Revenue $491.2M $512.9M
YoY Change -1.14% 1.82%
Cost Of Revenue $328.5M $328.2M
YoY Change 3.38% 6.19%
Gross Profit $162.6M $184.7M
YoY Change -9.19% -5.13%
Gross Profit Margin 33.11% 36.01%
Selling, General & Admin $10.47M $10.68M
YoY Change -3.04% -14.0%
% of Gross Profit 6.44% 5.78%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $89.01M $95.67M
YoY Change -5.81% 1.17%
% of Gross Profit 54.73% 51.8%
Operating Expenses $104.3M $111.3M
YoY Change -5.3% -0.04%
Operating Profit $58.37M $73.39M
YoY Change -15.41% -11.92%
Interest Expense -$98.59M -$93.03M
YoY Change -219.82% -212.76%
% of Operating Profit -168.91% -126.77%
Other Income/Expense, Net
YoY Change
Pretax Income -$49.94M -$70.61M
YoY Change 506.52% 978.34%
Income Tax -$77.00K $524.0K
% Of Pretax Income
Net Earnings -$46.90M -$73.85M
YoY Change 1036.17% 554.81%
Net Earnings / Revenue -9.55% -14.4%
Basic Earnings Per Share -$0.28 -$0.45
Diluted Earnings Per Share -$0.28 -$0.45
COMMON SHARES
Basic Shares Outstanding 166.6M shares 165.9M shares 165.8M shares
Diluted Shares Outstanding 165.4M shares 165.2M shares

Balance Sheet

Concept 2024 Q4 2024 Q3 2024 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $48.59M $14.63M
YoY Change -88.38% -96.64%
Cash & Equivalents $48.59M $14.63M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables $20.14M $28.96M
Other Receivables $76.06M $70.48M
Total Short-Term Assets $144.8M $114.1M
YoY Change -70.79% -77.45%
LONG-TERM ASSETS
Property, Plant & Equipment $6.385B $6.413B
YoY Change -3.11% -3.06%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $110.8M $108.1M
YoY Change 0.23% -0.74%
Other Assets $101.4M $131.8M
YoY Change 228.06% 341.77%
Total Long-Term Assets $6.942B $7.008B
YoY Change -2.34% -1.91%
TOTAL ASSETS
Total Short-Term Assets $144.8M $114.1M
Total Long-Term Assets $6.942B $7.008B
Total Assets $7.087B $7.122B
YoY Change -6.81% -6.9%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $603.5M $565.1M
YoY Change 3.77% -5.05%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $603.5M $565.1M
YoY Change 3.77% -5.05%
LONG-TERM LIABILITIES
Long-Term Debt $5.554B $5.548B
YoY Change -2.91% -2.93%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $5.554B $5.548B
YoY Change -2.91% -2.93%
TOTAL LIABILITIES
Total Short-Term Liabilities $603.5M $565.1M
Total Long-Term Liabilities $5.554B $5.548B
Total Liabilities $6.158B $6.113B
YoY Change -2.29% -3.13%
SHAREHOLDERS EQUITY
Retained Earnings $2.271B $2.318B
YoY Change -9.64% -7.93%
Common Stock $1.666M $1.659M
YoY Change 0.48% 0.24%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $929.0M $1.009B
YoY Change
Total Liabilities & Shareholders Equity $7.087B $7.122B
YoY Change -6.81% -6.9%

Cashflow Statement

Concept 2024 Q4 2024 Q3 2024 Q2
OPERATING ACTIVITIES
Net Income -$46.90M -$73.85M
YoY Change 1036.17% 554.81%
Depreciation, Depletion And Amortization $89.01M $95.67M
YoY Change -5.81% 1.17%
Cash From Operating Activities $106.2M $43.82M
YoY Change 44.42% -86.14%
INVESTING ACTIVITIES
Capital Expenditures $82.00M $66.12M
YoY Change 48.28% -67.05%
Acquisitions
YoY Change
Other Investing Activities $44.68M -$1.849M
YoY Change 1761.62% -100.97%
Cash From Investing Activities -$37.32M -$67.97M
YoY Change -29.58% 560.42%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -35.44M -33.72M
YoY Change -0.17% -33.95%
NET CHANGE
Cash From Operating Activities 106.2M 43.82M
Cash From Investing Activities -37.32M -67.97M
Cash From Financing Activities -35.44M -33.72M
Net Change In Cash 33.39M -57.87M
YoY Change -322.6% -122.71%
FREE CASH FLOW
Cash From Operating Activities $106.2M $43.82M
Capital Expenditures $82.00M $66.12M
Free Cash Flow $24.15M -$22.30M
YoY Change 32.69% -119.32%

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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Repayments Of Secured Debt
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us-gaap Repayments Of Senior Debt
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<div style="margin-bottom:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in our condensed consolidated financial statements include the allowance for credit losses, purchase price allocations, useful lives of fixed assets and impairment of real estate and related intangibles.</span></div>
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us-gaap Straight Line Rent Adjustments
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us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2023Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2024Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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FinancingReceivableAllowanceForCreditLossesPeriodIncreaseDecrease
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CommonStockDividendsPerShareDeclared
0.20
CY2024Q1 us-gaap Dividends Common Stock Cash
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33154000 usd
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CommonStockDividendsPerShareDeclared
0.20
CY2024Q2 us-gaap Dividends Common Stock Cash
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CommonStockDividendsPerShareDeclared
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us-gaap Nature Of Operations
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<div style="margin-bottom:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Note 10. Business and Property Management Agreements with RMR</span></div><div style="margin-bottom:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We have no employees. The personnel and various services we require to operate our business are provided to us by RMR. We have two agreements with RMR to provide management services to us: (1) a business management agreement, which relates to our business generally, and (2) a property management agreement, which relates to our property level operations of our net lease portfolio, the office building component of one of our hotels and major renovation or repositioning activities at our hotels that we may request RMR to manage from time to time. </span></div><div style="margin-bottom:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Pursuant to our business management agreement with RMR, we recognized net business management fees of $7,411 and $8,287 for the three months ended September 30, 2024 and 2023, respectively, and $22,608 and $24,959 for the nine months ended September 30, 2024 and 2023, respectively. Based on our common share total return, as defined in our business management agreement, as of each of September 30, 2024 and 2023, no incentive fees are included in the net business management fees we recognized for the three and nine months ended September 30, 2024 or 2023. The actual amount of annual incentive fees for 2024, if any, will be based on our common share total return, as defined in our business management agreement, for the three-year period ending December 31, 2024, and will be payable in January 2025. We did not incur an incentive fee payable to RMR for the year ended December 31, 2023. We include business management fee amounts in general and administrative expenses in our condensed consolidated statements of comprehensive income (loss). </span></div><div style="margin-bottom:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Pursuant to our property management agreement with RMR, we recognized aggregate property management and construction supervision fees of $3,054 and $2,031 for the three months ended September 30, 2024 and 2023, respectively, and $9,073 and $5,289 for the nine months ended September 30, 2024 and 2023, respectively. Of those amounts, for the three months ended September 30, 2024 and 2023, $1,514 and $923, respectively, were expensed to net lease operating expenses in our condensed consolidated statements of comprehensive income (loss) and $1,540 and $1,108, respectively, were capitalized as building improvements in our condensed consolidated balance sheets. Of the amounts for the nine months ended September 30, 2024 and 2023, $4,503 and $2,805, respectively, were expensed to net lease operating expenses in our condensed consolidated statements of comprehensive income (loss) and $4,570 and $2,484, respectively, were capitalized as building improvements in our condensed consolidated balance sheets. The amounts capitalized are being depreciated over the estimated useful lives of the related capital assets.</span></div><div style="margin-bottom:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We are generally responsible for all of our operating expenses, including certain expenses incurred or arranged by RMR on our behalf. We are generally not responsible for payment of RMR’s employment, office or administrative expenses incurred to provide management services to us, except for the employment and related expenses of RMR employees assigned to work exclusively or partly at our net lease properties and the office building component of one of our hotels, our share of the wages, benefits and other related costs of RMR’s centralized accounting personnel, our share of RMR’s costs for providing our internal audit function, and as otherwise agreed. Our property level operating expenses are generally incorporated into rents charged to our tenants, including certain payroll and related costs incurred by RMR. We reimbursed RMR $1,080 and $1,182 for these expenses and costs for the three months ended September 30, 2024 and 2023, respectively, and $3,206 and $3,301 for these expenses and costs for the nine months ended September 30, 2024 and 2023, respectively. We included these amounts in net lease operating expenses and general and administrative expenses, as applicable, in our condensed consolidated statements of comprehensive income (loss).</span></div>
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us-gaap Current State And Local Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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CurrentStateAndLocalTaxExpenseBenefit
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us-gaap Current Foreign Tax Expense Benefit
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411000 usd
us-gaap Number Of Reportable Segments
NumberOfReportableSegments
2 segment
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390935000 usd
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OperatingLeaseLeaseIncomeLeasePayments
100236000 usd
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Revenues
491171000 usd
CY2024Q3 us-gaap Cost Of Goods And Service Excluding Depreciation Depletion And Amortization
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328535000 usd
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4791000 usd
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CY2024Q3 us-gaap Interest And Other Income
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537000 usd
CY2024Q3 us-gaap Interest Expense Nonoperating
InterestExpenseNonoperating
99126000 usd
CY2024Q3 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
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CY2024Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
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CY2024Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-77000 usd
CY2024Q3 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
2963000 usd
CY2024Q3 us-gaap Net Income Loss
NetIncomeLoss
-46901000 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1139657000 usd
us-gaap Operating Lease Lease Income Lease Payments
OperatingLeaseLeaseIncomeLeasePayments
300712000 usd
us-gaap Revenues
Revenues
1440369000 usd
us-gaap Cost Of Goods And Service Excluding Depreciation Depletion And Amortization
CostOfGoodsAndServiceExcludingDepreciationDepletionAndAmortization
961868000 usd
us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
14472000 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
277786000 usd
us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
31659000 usd
us-gaap Asset Impairment Charges
AssetImpairmentCharges
51030000 usd
us-gaap Costs And Expenses
CostsAndExpenses
1336815000 usd
us-gaap Gain Loss On Sale Of Properties
GainLossOnSaleOfProperties
1110000 usd
us-gaap Interest And Other Income
InterestAndOtherIncome
3318000 usd
us-gaap Interest Expense Nonoperating
InterestExpenseNonoperating
284390000 usd
us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-16181000 usd
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1454000 usd
us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
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us-gaap Net Income Loss
NetIncomeLoss
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CY2024Q3 us-gaap Assets
Assets
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CY2023Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
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CY2023Q3 us-gaap Operating Lease Lease Income Lease Payments
OperatingLeaseLeaseIncomeLeasePayments
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CY2023Q3 us-gaap Revenues
Revenues
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CY2023Q3 us-gaap Cost Of Goods And Service Excluding Depreciation Depletion And Amortization
CostOfGoodsAndServiceExcludingDepreciationDepletionAndAmortization
317752000 usd
CY2023Q3 us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
4802000 usd
CY2023Q3 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
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CY2023Q3 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
10849000 usd
CY2023Q3 us-gaap Business Combination Acquisition Related Costs
BusinessCombinationAcquisitionRelatedCosts
115000 usd
CY2023Q3 us-gaap Asset Impairment Charges
AssetImpairmentCharges
512000 usd
CY2023Q3 us-gaap Costs And Expenses
CostsAndExpenses
428528000 usd
CY2023Q3 us-gaap Gain Loss On Sale Of Properties
GainLossOnSaleOfProperties
123000 usd
CY2023Q3 us-gaap Interest And Other Income
InterestAndOtherIncome
5626000 usd
CY2023Q3 us-gaap Interest Expense Nonoperating
InterestExpenseNonoperating
82280000 usd
CY2023Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
-8234000 usd
CY2023Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-2242000 usd
CY2023Q3 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
1864000 usd
CY2023Q3 us-gaap Net Income Loss
NetIncomeLoss
-4128000 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1134649000 usd
us-gaap Operating Lease Lease Income Lease Payments
OperatingLeaseLeaseIncomeLeasePayments
295164000 usd
us-gaap Revenues
Revenues
1429813000 usd
us-gaap Cost Of Goods And Service Excluding Depreciation Depletion And Amortization
CostOfGoodsAndServiceExcludingDepreciationDepletionAndAmortization
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us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
13079000 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
289108000 usd
us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
34180000 usd
us-gaap Business Combination Acquisition Related Costs
BusinessCombinationAcquisitionRelatedCosts
1933000 usd
us-gaap Asset Impairment Charges
AssetImpairmentCharges
9517000 usd
us-gaap Costs And Expenses
CostsAndExpenses
1274235000 usd
us-gaap Gain Loss On Sale Of Properties
GainLossOnSaleOfProperties
41959000 usd
us-gaap Equity Securities Fv Ni Unrealized Gain Loss
EquitySecuritiesFvNiUnrealizedGainLoss
48837000 usd
us-gaap Interest And Other Income
InterestAndOtherIncome
11880000 usd
us-gaap Interest Expense Nonoperating
InterestExpenseNonoperating
246363000 usd
us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-282000 usd
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
11609000 usd
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-775000 usd
us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
-1840000 usd
us-gaap Net Income Loss
NetIncomeLoss
10544000 usd
CY2023Q4 us-gaap Assets
Assets
7356116000 usd

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