2015 Q3 Form 10-Q Financial Statement

#000155673915000012 Filed on August 07, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2015 Q2 2014 Q2
Revenue $364.0M $387.0M $474.0M
YoY Change -19.47% -18.35% 41.49%
Cost Of Revenue $123.0M $124.0M $146.0M
YoY Change -14.58% -15.07% 17.74%
Gross Profit $241.0M $263.0M $328.0M
YoY Change -21.75% -19.82% 55.45%
Gross Profit Margin 66.21% 67.96% 69.2%
Selling, General & Admin $136.0M $118.0M $162.0M
YoY Change 11.48% -27.16% -1.22%
% of Gross Profit 56.43% 44.87% 49.39%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $101.0M $103.0M $161.0M
YoY Change -37.27% -36.02% -16.58%
% of Gross Profit 41.91% 39.16% 49.09%
Operating Expenses $136.0M $118.0M $162.0M
YoY Change 11.48% -27.16% -1.22%
Operating Profit $4.000M $42.00M $5.000M
YoY Change -84.0% 740.0% -103.42%
Interest Expense -$88.00M -$87.00M -$90.00M
YoY Change -1.12% -3.33% 13.92%
% of Operating Profit -2200.0% -207.14% -1800.0%
Other Income/Expense, Net
YoY Change
Pretax Income -$84.00M -$44.00M -$85.00M
YoY Change 35.48% -48.24% -62.39%
Income Tax -$17.00M -$2.000M $0.00
% Of Pretax Income
Net Earnings -$67.00M -$42.00M -$85.00M
YoY Change 13.56% -50.59% 23.19%
Net Earnings / Revenue -18.41% -10.85% -17.93%
Basic Earnings Per Share
Diluted Earnings Per Share -$6.907M -$4.330M -$8.854M
COMMON SHARES
Basic Shares Outstanding 17.57M shares 17.62M shares 17.63M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q3 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $192.0M $191.0M $146.0M
YoY Change 32.41% 30.82% -40.16%
Cash & Equivalents $192.0M $191.0M $146.0M
Short-Term Investments
Other Short-Term Assets $191.0M $154.0M $221.0M
YoY Change -4.98% -30.32% 18.82%
Inventory
Prepaid Expenses
Receivables $124.0M $131.0M $168.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $507.0M $476.0M $535.0M
YoY Change 2.01% -11.03% -40.09%
LONG-TERM ASSETS
Property, Plant & Equipment $38.00M $45.00M $84.00M
YoY Change -50.0% -46.43% -34.38%
Goodwill $315.0M $315.0M $315.0M
YoY Change 0.0% 0.0% -20.45%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $2.000M $6.000M $9.000M
YoY Change -77.78% -33.33% -47.06%
Total Long-Term Assets $912.0M $1.018B $1.549B
YoY Change -34.9% -34.28% -44.84%
TOTAL ASSETS
Total Short-Term Assets $507.0M $476.0M $535.0M
Total Long-Term Assets $912.0M $1.018B $1.549B
Total Assets $1.419B $1.494B $2.084B
YoY Change -25.24% -28.31% -43.69%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $14.00M $13.00M $11.00M
YoY Change 7.69% 18.18% -42.11%
Accrued Expenses $23.00M $25.00M $37.00M
YoY Change -36.11% -32.43% -38.33%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $2.298B $124.0M $131.0M
YoY Change 1768.29% -5.34% -19.14%
Total Short-Term Liabilities $2.506B $342.0M $396.0M
YoY Change 588.46% -13.64% -25.56%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $2.211B $2.385B
YoY Change -100.0% -7.3% -14.09%
Other Long-Term Liabilities $4.000M $3.000M $1.000M
YoY Change 300.0% 200.0% 0.0%
Total Long-Term Liabilities $4.000M $2.214B $2.386B
YoY Change -99.83% -7.21% -14.08%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.506B $342.0M $396.0M
Total Long-Term Liabilities $4.000M $2.214B $2.386B
Total Liabilities $2.510B $2.556B $2.782B
YoY Change -6.52% -8.12% -15.93%
SHAREHOLDERS EQUITY
Retained Earnings -$2.759B -$2.692B -$2.387B
YoY Change 12.8% 12.78% 58.39%
Common Stock $1.556B $1.556B $1.553B
YoY Change 0.19% 0.19% 0.13%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$1.284B -$1.219B -$864.0M
YoY Change
Total Liabilities & Shareholders Equity $1.419B $1.494B $2.084B
YoY Change -25.24% -28.31% -43.69%

Cashflow Statement

Concept 2015 Q3 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income -$67.00M -$42.00M -$85.00M
YoY Change 13.56% -50.59% 23.19%
Depreciation, Depletion And Amortization $101.0M $103.0M $161.0M
YoY Change -37.27% -36.02% -16.58%
Cash From Operating Activities $63.00M $90.00M $102.0M
YoY Change -38.83% -11.76% -26.62%
INVESTING ACTIVITIES
Capital Expenditures -$2.000M -$6.000M -$6.000M
YoY Change -66.67% 0.0% -50.0%
Acquisitions
YoY Change
Other Investing Activities $0.00 $5.000M $0.00
YoY Change -100.0%
Cash From Investing Activities -$2.000M -$1.000M -$6.000M
YoY Change -66.67% -83.33% -104.23%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -60.00M -69.00M -129.0M
YoY Change -38.78% -46.51% -38.28%
NET CHANGE
Cash From Operating Activities 63.00M 90.00M 102.0M
Cash From Investing Activities -2.000M -1.000M -6.000M
Cash From Financing Activities -60.00M -69.00M -129.0M
Net Change In Cash 1.000M 20.00M -33.00M
YoY Change -200.0% -160.61% -145.83%
FREE CASH FLOW
Cash From Operating Activities $63.00M $90.00M $102.0M
Capital Expenditures -$2.000M -$6.000M -$6.000M
Free Cash Flow $65.00M $96.00M $108.0M
YoY Change -40.37% -11.11% -28.48%

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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Tax
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us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
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us-gaap Loss Contingency Disclosures
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Contingencies </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Litigation</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company is subject to various lawsuits and other claims in the normal course of business. In addition, from time to time, the Company receives communications from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdictions in which the Company operates.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company establishes reserves for the estimated losses on specific contingent liabilities, for regulatory and legal actions where the Company deems a loss to be probable and the amount of the loss can be reasonably estimated. In other instances, the Company is not able to make a reasonable estimate of liability because of the uncertainties related to the outcome or the amount or range of potential loss. The Company does not expect that the ultimate resolution of pending regulatory and legal matters in future periods, including the matters described below, will have a material adverse effect on its consolidated statements of comprehensive (loss). &#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Murphy, Noe &amp; Palmer v. Verizon Communications, et.al.; Civil Action No.3:09-cv-2262-G.</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> -</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;"> </font><font style="font-family:inherit;font-size:10pt;">On November 25, 2009, </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> retirees, Philip A., Murphy, Jr., Sandra R. Noe, and Claire M. Palmer, brought a putative class action lawsuit in the U.S. District Court for the Northern District of Texas (Dallas Division), against both the Employee Benefits Committee and pension plans of Verizon and the Employee Benefits Committee ("EBC") and pension plans of SuperMedia.&#160; All three named plaintiffs are receiving the single life monthly annuity pension benefits. Plaintiffs allege that Verizon transferred them against their will from the Verizon pension plans to SuperMedia pension plans at or near the time of SuperMedia's spin-off from Verizon.&#160; They allege that both the Verizon and SuperMedia defendants failed to provide requested plan documents, which would entitle the Plaintiffs to statutory penalties under ERISA, that both the Verizon and SuperMedia defendants breached their fiduciary duty for refusal to disclose pension plan information, and other class action counts aimed solely at the Verizon defendants. Plaintiffs sought class action status, statutory penalties, damages and a reversal of the employee transfers.&#160; The SuperMedia Defendants filed their Motion to Dismiss the entire Complaint on March 10, 2010. On October 18, 2010, the Court dismissed all claims against the SuperMedia pension plans and all the claims against SuperMedia's EBC relating to the production of documents and statutory penalties for failure to produce same. The only claims that remained against SuperMedia were procedural ERISA claims against SuperMedia's EBC. On November 1, 2010, SuperMedia's EBC filed its answer to the Complaint. On November 4, 2010, SuperMedia's EBC filed a Motion to Dismiss </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> of the </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> remaining procedural ERISA claims against the EBC. Pursuant to an agreed Order, Plaintiffs obtained class certification against the Verizon defendants. After obtaining permission from the Court, the Plaintiffs filed another amendment to the Complaint, alleging a new count against SuperMedia's EBC. SuperMedia's EBC filed another motion to dismiss the amended complaint and filed a summary judgment motion before the deadline set by the scheduling order. On March 26, 2012, the Court denied SuperMedia's EBC's motion to dismiss. On September 16, 2013, the Court granted the Defendants&#8217; summary judgments, denied the Plaintiffs&#8217; Summary Judgment, and entered a take nothing judgment in favor of the SuperMedia EBC. Plaintiffs filed an appeal to the Circuit Court of Appeals for the Fifth Circuit, Oral argument was held on September 4, 2014. On October 14, 2014, the appellate court affirmed the decision of the District Court. Plaintiffs filed a Petition for Writ for Certiorari to the U.S. Supreme Court on February 17, 2015, which was denied on June 1, 2015. This matter is now concluded. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Bruce Fulmer, et. al. v. Scott W. Klein, Donald B. Reed, Stephen L. Robertson, Thomas S. Rogers, Paul E. Weaver, John J. Mueller, Jerry V. Elliott, Samuel D. Jones, Katherine J. Harless, The Employee Benefits Committee, Georgia Scaife, William Gist, Steven Garberich, Clifford Wilson, Bill Mundy, Andrew Coticchio, the Human Resources Committee and John Does 1-20; Case No. 3:09-cv-2354-N </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">- </font><font style="font-family:inherit;font-size:10pt;">On December 10, 2009, Bruce Fulmer, a former Idearc Media employee who has a history of litigation against the Company, individually and behalf of others allegedly similarly situated (&#8220;Plaintiff&#8221;), filed a putative class action in the United States District Court for the Northern District of Texas (Dallas Division), against certain officers, directors and members of the Company&#8217;s Executive Benefits Committee (&#8220;Defendants&#8221;). Plaintiff claims Defendants breached fiduciary duties in violation of ERISA in administrating various savings plans from November 17, 2006 to March 31, 2009 and seeks to recover losses to the plans. On April 1, 2010, Randy Kopp, another former Idearc Media employee filed a similar case, which has been consolidated with the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Fulmer </font><font style="font-family:inherit;font-size:10pt;">matter. Plaintiffs originally alleged, among other claims, that Defendants breached a duty of prudence, duty of loyalty, and duty to monitor by wrongfully allowing all the plans to invest in Idearc&#8217;s common stock. On March 16, 2011, the Court granted the Defendants&#8217; Motion to Dismiss the consolidated Complaint, and on March 15, 2012, following amendment, the Court again granted the Defendants&#8217; Motion to Dismiss. On July 9, 2013, the U.S. Court of Appeals for the Fifth Circuit affirmed the dismissal. On July 1, 2014, the U.S. Supreme Court granted Plaintiffs&#8217; petition for certiorari, vacated the judgment, and remanded for further consideration. On August 7, 2014, the Court of Appeals for the Fifth Circuit remanded to the District Court. On February 17, 2015, Plaintiffs filed a Second Amended Consolidated Complaint, reasserting claims based on allowing plans to invest in Idearc common stock. Plaintiffs seek unspecified compensatory damages and reimbursement for litigation expenses. On April 1, 2015, Defendants moved to dismiss the Amended Complaint, which is currently pending before the District Court. SuperMedia intends to honor its indemnification obligations and vigorously defend the allegations on behalf of Defendants. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">U.S. Bank National Association v. Andrew Coticchio and Verizon Communications, Inc.</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> - </font><font style="font-family:inherit;font-size:10pt;">On March 29, 2013, a former unsecured note holder that was impacted by the bankruptcy of SuperMedia in 2009, filed suit against Verizon Communications and SuperMedia&#8217;s former Chief Financial Officer (&#8220;Defendants&#8221;) in the Supreme Court of the State of New York, New York County. Plaintiff alleges that Verizon Communications improperly formed SuperMedia prior to the spin-off from Verizon by not having the requisite number of directors under Delaware law and that since SuperMedia was improperly formed, the former CFO did not have authority to execute its note on behalf of SuperMedia. Plaintiff seeks unpaid principal and interest from when the notes were impacted by the bankruptcy. SuperMedia plans to honor its indemnification obligation and vigorously defend the allegations on behalf of the Defendants.</font></div></div>

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