2015 Q4 Form 10-K Financial Statement

#000156459016014582 Filed on March 11, 2016

View on sec.gov

Income Statement

Concept 2015 Q4 2014 Q4 2014 Q3
Revenue $324.8M $432.0M $476.5M
YoY Change -24.81% 7.97% 6.31%
Cost Of Revenue $246.8M $335.0M $360.7M
YoY Change -26.33% -2.81% -9.73%
Gross Profit $27.50M $97.00M $115.8M
YoY Change -71.65% 74.77% 138.27%
Gross Profit Margin 8.47% 22.45% 24.3%
Selling, General & Admin $41.30M $65.30M $67.40M
YoY Change -36.75% -46.3% -33.33%
% of Gross Profit 150.18% 67.32% 58.2%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $16.70M $19.60M $19.60M
YoY Change -14.8% 4.26% 4.81%
% of Gross Profit 60.73% 20.21% 16.93%
Operating Expenses $41.30M $65.30M $67.40M
YoY Change -36.75% -46.3% -33.33%
Operating Profit -$24.90M $40.50M $60.20M
YoY Change -161.48% -1064.29% -241.65%
Interest Expense -$4.200M -$7.900M -$13.80M
YoY Change -46.84% -35.77% 0.73%
% of Operating Profit -19.51% -22.92%
Other Income/Expense, Net $1.200M $2.200M $18.70M
YoY Change -45.45% -96.7% 114.94%
Pretax Income -$11.90M $25.10M $53.30M
YoY Change -147.41% -305.74% -189.13%
Income Tax $2.100M $11.40M $15.80M
% Of Pretax Income 45.42% 29.64%
Net Earnings -$29.90M $8.800M $28.70M
YoY Change -439.77% -43.95% -183.92%
Net Earnings / Revenue -9.21% 2.04% 6.02%
Basic Earnings Per Share
Diluted Earnings Per Share -$1.027M $308.8K $1.007M
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q4 2014 Q4 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $204.3M $258.5M $244.1M
YoY Change -20.97% 76.33% 110.98%
Cash & Equivalents $229.1M $255.8M $240.7M
Short-Term Investments $2.000M $2.700M $3.400M
Other Short-Term Assets $30.20M $28.20M $48.80M
YoY Change 7.09% 35.58% -11.11%
Inventory $415.1M $443.0M $435.2M
Prepaid Expenses
Receivables $208.8M $247.0M $346.5M
Other Receivables $37.80M $56.90M $10.50M
Total Short-Term Assets $896.2M $1.049B $1.085B
YoY Change -14.53% 10.5% 16.72%
LONG-TERM ASSETS
Property, Plant & Equipment $515.6M $733.6M $924.1M
YoY Change -29.72% -7.89% 22.2%
Goodwill $379.7M $379.7M
YoY Change 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments $337.8M $344.6M $344.2M
YoY Change -1.97% -3.09% -8.19%
Other Assets $256.7M $277.8M $244.6M
YoY Change -7.6% -17.64% -24.44%
Total Long-Term Assets $975.5M $1.163B $1.911B
YoY Change -16.12% -4.81% 3.43%
TOTAL ASSETS
Total Short-Term Assets $896.2M $1.049B $1.085B
Total Long-Term Assets $975.5M $1.163B $1.911B
Total Assets $2.537B $2.945B $2.996B
YoY Change -13.85% -0.22% 7.87%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $104.8M $136.2M $121.5M
YoY Change -23.05% 2.25% -3.88%
Accrued Expenses $121.1M $128.0M $126.3M
YoY Change -5.39% -15.4% -17.23%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $9.500M $9.300M $11.80M
YoY Change 2.15% -13.08% -60.27%
Total Short-Term Liabilities $286.6M $331.2M $349.4M
YoY Change -13.47% -16.09% -6.28%
LONG-TERM LIABILITIES
Long-Term Debt $951.0M $919.7M $925.0M
YoY Change 3.4% 23.98% 31.84%
Other Long-Term Liabilities $114.6M $112.7M $330.9M
YoY Change 1.69% 2.27% 3.57%
Total Long-Term Liabilities $1.724B $1.822B $1.256B
YoY Change -5.39% 15.34% 22.99%
TOTAL LIABILITIES
Total Short-Term Liabilities $286.6M $331.2M $349.4M
Total Long-Term Liabilities $1.724B $1.822B $1.256B
Total Liabilities $2.011B $2.153B $2.420B
YoY Change -6.63% -8.99% 9.86%
SHAREHOLDERS EQUITY
Retained Earnings -$155.6M $4.900M
YoY Change -3275.51% -112.37%
Common Stock $3.600M $3.600M
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $49.60M $49.60M
YoY Change 0.0% 0.0%
Treasury Stock Shares $13.20M $13.20M
Shareholders Equity $268.7M $477.6M $576.4M
YoY Change
Total Liabilities & Shareholders Equity $2.537B $2.967B $2.996B
YoY Change -14.49% 0.0% 7.87%

Cashflow Statement

Concept 2015 Q4 2014 Q4 2014 Q3
OPERATING ACTIVITIES
Net Income -$29.90M $8.800M $28.70M
YoY Change -439.77% -43.95% -183.92%
Depreciation, Depletion And Amortization $16.70M $19.60M $19.60M
YoY Change -14.8% 4.26% 4.81%
Cash From Operating Activities -$11.00M $51.70M $12.30M
YoY Change -121.28% -24.75% -81.08%
INVESTING ACTIVITIES
Capital Expenditures -$18.20M -$23.00M -$14.50M
YoY Change -20.87% 13.86% -18.54%
Acquisitions
YoY Change
Other Investing Activities $2.100M -$14.40M -$1.900M
YoY Change -114.58% -227.43% -272.73%
Cash From Investing Activities -$16.10M -$37.40M -$16.40M
YoY Change -56.95% 320.22% -1.8%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.600M -13.00M -6.000M
YoY Change -112.31% -61.31% -94.74%
NET CHANGE
Cash From Operating Activities -11.00M 51.70M 12.30M
Cash From Investing Activities -16.10M -37.40M -16.40M
Cash From Financing Activities 1.600M -13.00M -6.000M
Net Change In Cash -25.50M 1.300M -10.10M
YoY Change -2061.54% -95.04% -84.63%
FREE CASH FLOW
Cash From Operating Activities -$11.00M $51.70M $12.30M
Capital Expenditures -$18.20M -$23.00M -$14.50M
Free Cash Flow $7.200M $74.70M $26.80M
YoY Change -90.36% -15.97% -67.63%

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<div> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Note 20&#8212;Recent accounting pronouncements: </p> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;;font-size:6pt;">&nbsp;</p> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Adopted</p> <p style="text-align:justify;margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In April 2015, the FASB issued ASU 2015-03<font style="font-style:italic;">, Interest - Imputation of Interest (Subtopic 835-30):&nbsp;&nbsp;Simplifying the Presentation of Debt Issuance Costs</font>, which requires unamortized debt issuance costs (or deferred financing costs) to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount.&#160; Previously, such unamortized debt issue costs were generally presented as a noncurrent asset.&nbsp;&nbsp;&nbsp;&nbsp;ASU 2015-15, issued by the FASB in August 2015, clarified that the scope of ASU 2015-03 does not include deferred financing costs related to revolving credit facilities.&nbsp;&nbsp;The guidance in the new standard is limited to the presentation of debt issuance costs within its scope and does not affect the recognition, measurement or amortization of debt issuance costs.&#160; The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years and is applied on a retrospective basis.&nbsp;&nbsp;Early adoption is permitted, and we have adopted this ASU in this Annual Report.&nbsp;&nbsp;As a result of adopting this ASU, deferred financing costs of $5.1 million at December 31, 2014, previously recognized as an asset, are now classified as a direct deduction from the carrying value of such term loan in our Consolidated Balance Sheet at such date.&nbsp;&nbsp;All of our other deferred financing costs at December 31, 2014 and 2015 (see Note 9) relate to Kronos&#8217; revolving credit facilities in North America and Europe, and continue to be recognized as an asset under the guidance of the ASU. </p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In November 2015, the FASB issued ASU 2015-17, <font style="font-style:italic;">Income Taxes (Topic 740):&nbsp;&nbsp;Balance Sheet Classification of Deferred Taxes</font>, which eliminates the requirement to separate deferred income tax assets and liabilities into current and noncurrent amounts.&nbsp;&nbsp;Under the ASU all deferred income tax assets and liabilities will be classified as noncurrent.&nbsp;&nbsp;The current requirement that deferred income tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this ASU.&nbsp;&nbsp;This amendment is effective for us beginning in the first quarter of 2017; however early adoption is permitted.&nbsp;&nbsp;In addition, prospective or retrospective application is permitted.&nbsp;&nbsp;We have elected to adopt this ASU retrospectively beginning with this Annual Report and accordingly we have presented all deferred income tax assets and liabilities as noncurrent in our Consolidated Balance Sheets and related Footnotes.&nbsp;&nbsp;At December 31, 2014, we had previously recognized a current deferred income tax asset and liability of $13.4 million and $3.9 million, respectively, and a noncurrent deferred income tax asset and liability of $164.4 million and $412.8 million, respectively.&nbsp;&nbsp;As a result of the retrospective application of this ASU, we no longer have a current deferred income tax asset or liability recognized at December 31, 2014, and the noncurrent deferred income tax asset and liability we now have recognized at December 31, 2014 is $160.9 million and $399.8 million, respectively.&nbsp;&nbsp;See Note 12.</p> <p style="text-align:justify;margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Pending Adoption</p> <p style="text-align:justify;margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In May 2014, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;) No. 2014-09, <font style="font-style:italic;">Revenue from Contracts with Customers (Topic 606)</font>.&#160; This standard replaces existing revenue recognition guidance, which in many cases was tailored for specific industries, with a uniform accounting standard applicable to all industries and transactions.&#160; The new standard, as amended, is currently effective for us beginning with the first quarter of 2018.&#160; Entities may elect to adopt ASU No. 2014-09 retrospectively for all periods for all contracts and transactions which occurred during the period (with a few exceptions for practical expediency) or retrospectively with a cumulative effect recognized as of the date of adoption.&#160; ASU No. 2014-09 is a fundamental rewriting of existing GAAP with respect to revenue recognition, and we are still evaluating the effect the Standard will have on our Consolidated Financial Statements.&#160; We currently expect to adopt the standard in the first quarter of 2018.&nbsp;&nbsp;In addition, we have not yet determined the method we will use to adopt the Standard.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In January 2016, the FASB issued ASU 2016-01, <font style="font-style:italic;">Financial Instruments-Overall (Subtopic 825-10):&nbsp;&nbsp;Recognition and Measurement of Financial Assets and Financial Liabilities</font>, which addresses certain aspects related to the recognition, measurement, presentation and disclosure of financial instruments.&nbsp;&nbsp;The ASU requires equity investments (except for those accounted for under the equity method of accounting or those that result in the consolidation of the investee) to generally be measured at fair value with changes in fair value recognized in net income.&nbsp;&nbsp;The amendment also requires a number of other changes, including among others:&nbsp;&nbsp;simplifying the impairment assessment for equity instruments without readily determinable fair values; eliminating the requirement for public business entities to disclose methods and assumptions used to determine fair value for financial instruments measured at amortized cost; requiring an exit price notion when measuring the fair value of financial instruments for disclosure purposes; and requiring separate presentation of financial assets and liabilities by measurement category and form of asset.&nbsp;&nbsp;The changes indicated above will be effective for us beginning in the first quarter of 2018, with prospective application required, and early adoption is not permitted.&nbsp;&nbsp;The most significant aspect of adopting this ASU will be the requirement to recognize changes in fair value of our available-for-sale marketable equity securities in net income (currently changes in fair value of such securities are recognized in other comprehensive income). </p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In February 2016, the FASB issued ASU 2016-02, <font style="font-style:italic;">Leases (Topic 842)</font>, which is a comprehensive rewriting of the lease accounting guidance which aims to increase comparability and transparency with regard to lease transactions.&#160;&#160; The primary change will be the recognition of lease assets for the right-of &#8211;use of the underlying asset and lease liabilities for the obligation to make payments by lessees on the balance sheet for leases currently classified as operating leases.&#160;&#160; The ASU also requires increased qualitative disclosure about leases in addition to quantitative disclosures currently required.&#160; Companies are required to use a modified retrospective approach to adoption with a practical expedient which will allow companies to continue to account for existing leases under the prior guidance unless a lease is modified, other than the requirement to recognize the right-of-use asset and lease liability for all operating leases. The changes indicated above will be effective for us beginning in the first quarter of 2019, with early adoption is permitted.&#160; We have not yet evaluated the effect this ASU will have on our Consolidated Financial Statements, but given the material amount of our future minimum payments under non-cancellable operating leases at December 31, 2015 discussed in Note 17, we expect to recognize a material right-of-use lease asset and lease liability upon adoption of the ASU.</p></div>
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CY2014Q4 us-gaap Profit Loss
ProfitLoss
13700000
CY2014Q1 us-gaap Net Income Loss
NetIncomeLoss
800000
CY2015Q4 us-gaap Interest Rate Derivative Liabilities At Fair Value
InterestRateDerivativeLiabilitiesAtFairValue
3500000
CY2014Q4 us-gaap Deferred Tax Assets Net Current
DeferredTaxAssetsNetCurrent
0
CY2014Q4 us-gaap Deferred Tax Liabilities Gross Current
DeferredTaxLiabilitiesGrossCurrent
0
CY2014Q4 us-gaap Deferred Tax Liabilities Gross Noncurrent
DeferredTaxLiabilitiesGrossNoncurrent
399800000
CY2014Q1 us-gaap Sales Revenue Net
SalesRevenueNet
462400000
CY2014Q2 us-gaap Sales Revenue Net
SalesRevenueNet
491700000
CY2014Q3 us-gaap Sales Revenue Net
SalesRevenueNet
476500000
CY2014Q4 us-gaap Sales Revenue Net
SalesRevenueNet
432000000
CY2014Q1 us-gaap Gross Profit
GrossProfit
85800000
CY2014Q2 us-gaap Gross Profit
GrossProfit
104200000
CY2014Q3 us-gaap Gross Profit
GrossProfit
115800000
CY2015Q4 us-gaap Gross Profit
GrossProfit
27500000
CY2015Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
34600000
CY2015Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-10100000
CY2015Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-5000000
CY2015Q4 us-gaap Operating Income Loss
OperatingIncomeLoss
-24900000
CY2015Q1 us-gaap Profit Loss
ProfitLoss
17300000
CY2015Q2 us-gaap Profit Loss
ProfitLoss
-139400000
CY2015Q3 us-gaap Profit Loss
ProfitLoss
-13300000
CY2015Q4 us-gaap Profit Loss
ProfitLoss
-35700000
CY2015Q2 us-gaap Net Income Loss
NetIncomeLoss
-103900000
CY2015Q3 us-gaap Net Income Loss
NetIncomeLoss
-11700000
CY2015Q4 us-gaap Net Income Loss
NetIncomeLoss
-29900000
CY2015Q1 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
0.04
CY2015Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.30
CY2015Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.03
CY2014Q2 us-gaap Tax Adjustments Settlements And Unusual Provisions
TaxAdjustmentsSettlementsAndUnusualProvisions
-3200000
CY2014Q3 us-gaap Income Tax Reconciliation Prior Year Income Taxes
IncomeTaxReconciliationPriorYearIncomeTaxes
1200000

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