2023 Q1 Form 10-K Financial Statement

#000162828023003675 Filed on February 15, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $2.194B $2.306B $8.362B
YoY Change 13.86% 11.26% 6.9%
Cost Of Revenue $1.529B $1.584B $5.822B
YoY Change 14.79% 11.93% 6.77%
Gross Profit $665.0M $722.0M $2.540B
YoY Change 11.76% 9.83% 7.22%
Gross Profit Margin 30.31% 31.31% 30.38%
Selling, General & Admin $263.0M $264.0M $1.029B
YoY Change 10.5% -1.31% -0.1%
% of Gross Profit 39.55% 36.57% 40.51%
Research & Development $51.00M $60.00M $209.0M
YoY Change 13.33% 14.29% 18.75%
% of Gross Profit 7.67% 8.31% 8.23%
Depreciation & Amortization $123.0M $120.0M $182.0M
YoY Change 0.82% -1.96% -8.08%
% of Gross Profit 18.5% 16.62% 7.17%
Operating Expenses $389.0M $397.0M $1.529B
YoY Change 9.27% 1.2% 2.41%
Operating Profit $276.0M $325.0M $1.011B
YoY Change 15.48% 22.6% 15.41%
Interest Expense -$45.00M -$36.00M -$163.0M
YoY Change 12.5% 11.8% 9.4%
% of Operating Profit -16.3% -11.08% -16.12%
Other Income/Expense, Net $5.000M -$1.000M $29.00M
YoY Change 25.0% -134.48% -23.68%
Pretax Income $233.0M $210.0M $854.0M
YoY Change 16.5% -10.56% 15.88%
Income Tax $60.00M $51.00M $213.0M
% Of Pretax Income 25.75% 24.29% 24.94%
Net Earnings $169.0M $158.0M $633.0M
YoY Change 13.42% -16.93% 13.44%
Net Earnings / Revenue 7.7% 6.85% 7.57%
Basic Earnings Per Share $0.94 $3.46
Diluted Earnings Per Share $0.93 $0.87 $3.46
COMMON SHARES
Basic Shares Outstanding 180.4M shares 181.9M shares 182.2M shares
Diluted Shares Outstanding 180.6M shares 182.8M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $417.0M $541.0M $541.0M
YoY Change -14.55% 14.38% 14.38%
Cash & Equivalents $417.0M $541.0M $541.0M
Short-Term Investments
Other Short-Term Assets $275.0M $233.0M $233.0M
YoY Change 29.11% 20.73% 20.73%
Inventory $2.228B $2.034B $2.034B
Prepaid Expenses
Receivables $956.0M $975.0M $1.519B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $4.496B $4.327B $4.327B
YoY Change 14.96% 12.92% 12.92%
LONG-TERM ASSETS
Property, Plant & Equipment $1.422B $1.429B $1.429B
YoY Change -3.13% -4.54% -4.54%
Goodwill $8.540B $8.508B
YoY Change -0.32% -0.92%
Intangibles $3.936B $3.402B
YoY Change -7.45% -21.61%
Long-Term Investments $105.0M $105.0M
YoY Change 9.38% 9.38%
Other Assets $878.0M $850.0M $583.0M
YoY Change 2.09% 2.04% -20.9%
Total Long-Term Assets $14.17B $14.19B $14.19B
YoY Change -2.44% -2.96% -2.96%
TOTAL ASSETS
Total Short-Term Assets $4.496B $4.327B $4.327B
Total Long-Term Assets $14.17B $14.19B $14.19B
Total Assets $18.67B $18.52B $18.52B
YoY Change 1.25% 0.34% 0.34%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.353B $1.301B $1.301B
YoY Change 27.88% 28.56% 28.56%
Accrued Expenses $1.140B $1.143B $1.143B
YoY Change -3.72% -9.79% -9.79%
Deferred Revenue $697.0M $772.0M
YoY Change 11.7% 22.73%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $975.0M $251.0M $251.0M
YoY Change 6864.29% 12450.0% 12450.0%
Total Short-Term Liabilities $4.165B $3.467B $3.467B
YoY Change 44.62% 19.14% 19.14%
LONG-TERM LIABILITIES
Long-Term Debt $3.189B $3.751B $3.751B
YoY Change -24.52% -7.52% -7.52%
Other Long-Term Liabilities $742.0M $721.0M $825.0M
YoY Change 2.06% -2.96% -14.15%
Total Long-Term Liabilities $3.931B $4.472B $4.576B
YoY Change -20.62% -6.81% -8.79%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.165B $3.467B $3.467B
Total Long-Term Liabilities $3.931B $4.472B $4.576B
Total Liabilities $8.535B $8.369B $8.414B
YoY Change 2.22% 1.87% 1.95%
SHAREHOLDERS EQUITY
Retained Earnings $4.715B $4.577B
YoY Change 12.91% 12.87%
Common Stock $7.942B $7.955B
YoY Change 0.29% 0.47%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $10.09B $10.10B $10.10B
YoY Change
Total Liabilities & Shareholders Equity $18.67B $18.52B $18.52B
YoY Change 1.25% 0.34% 0.34%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $169.0M $158.0M $633.0M
YoY Change 13.42% -16.93% 13.44%
Depreciation, Depletion And Amortization $123.0M $120.0M $182.0M
YoY Change 0.82% -1.96% -8.08%
Cash From Operating Activities -$25.00M $410.0M $1.038B
YoY Change -115.53% 30.7% -3.26%
INVESTING ACTIVITIES
Capital Expenditures $32.00M $67.00M $149.0M
YoY Change 60.0% -230.1% 14.62%
Acquisitions $89.00M
YoY Change -79.54%
Other Investing Activities $0.00 -$19.00M -$86.00M
YoY Change -100.0% 43.94% -79.02%
Cash From Investing Activities -$32.00M -$86.00M -$235.0M
YoY Change 77.78% 32.92% -56.48%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $473.0M
YoY Change 57.67%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$72.00M -313.0M -$708.0M
YoY Change -45.86% 42.47% 8.42%
NET CHANGE
Cash From Operating Activities -$25.00M 410.0M $1.038B
Cash From Investing Activities -$32.00M -86.00M -$235.0M
Cash From Financing Activities -$72.00M -313.0M -$708.0M
Net Change In Cash -$124.0M 11.00M $68.00M
YoY Change -926.67% -62.46% -153.97%
FREE CASH FLOW
Cash From Operating Activities -$25.00M $410.0M $1.038B
Capital Expenditures $32.00M $67.00M $149.0M
Free Cash Flow -$57.00M $343.0M $889.0M
YoY Change -140.43% -6.08% -5.73%

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BUSINESS<div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Wabtec is one of the world’s largest providers of value-added, technology-based locomotives, equipment, systems, and services for the global freight rail and passenger transit industries as well as the mining, marine and industrial markets. Our highly engineered products, which are intended to enhance safety, improve productivity and reduce maintenance costs for customers, can be found on most locomotives, freight cars, passenger transit cars and buses around the world. Our core products and services are essential in the safe and efficient operation of freight rail and passenger transit vehicles. Wabtec is a global company with operations in over 50 countries and our products can be found in more than 100 countries throughout the world. In 2022, approximately 55% of the Company’s net sales came from customers outside the United States.</span></div><div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The unfavorable global economic conditions driven by the impacts of the pandemic, supply chain disruptions and labor shortages, and the Russian invasion of Ukraine continue to have an adverse impact on our operations and business results. During 2020, the pandemic caused temporary plant closures in China, India, Italy, and other countries where outbreaks and stay-at-home orders were most prevalent, which had an adverse impact on our operations and business results. Supply chain disruptions and labor availability have caused component, raw material and chip shortages resulting in an adverse effect on the timing of the Company’s revenue generation. Additionally, broad-based inflation, escalation of diesel, utilities, energy, metals and other commodity costs, transportation and logistics costs, labor costs, and foreign currency exchange rate fluctuations all continue to impact our results. The Company has implemented various mitigating actions to lessen the impact of these unfavorable economic conditions including price escalations in long-term contracts, price surcharges, operational efficiencies, cost mitigation efforts and discretionary spend management, strategic sourcing alignments, and accelerating integration synergies where possible, including Integration 2.0 discussed in Note 21. Additionally, the Company has proactively built-up inventory ahead of expected growth, including from new orders signed in 2022, and in response to supply chain challenges to minimize further interruption on customer orders. </span></div><div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> For the year ended December 31, 2021, prior to the Russian invasion of Ukraine and the resulting imposition of various sanctions against Russia and Belarus, Wabtec had earnings of approximately $40 million attributable to customers in Russia, while earnings from customers in Ukraine and Belarus were not significant. As of December 31, 2022 and 2021, Wabtec had approximately $14 million and $20 million of assets, respectively, related to Russian operations, which were primarily cash and inventory that are expected to be recoverable. Assets related to Ukraine and Belarus operations are not significant.</span></div>
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<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Significant Customers and Concentrations of Credit Risk </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s trade receivables are primarily from rail and transit industry original equipment manufacturers, Class I railroads, railroad carriers and commercial companies that utilize rail cars in their operations, such as utility and chemical companies, as well as companies in the mining, marine and industrial markets. No one customer accounted for more than 10% of the Company’s consolidated net sales in 2022, 2021 or 2020.</span>
CY2022 us-gaap Prior Period Reclassification Adjustment Description
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<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Reclassifications </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain prior year amounts have been reclassified, where necessary, to conform to the current year presentation.</span>
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<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates </span><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 generally accepted accounting principles in the United States requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual amounts could differ materially from the estimates. On an ongoing basis, Management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates.</span>
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CY2020 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
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CY2020 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeitures Weighted Average Grant Date Fair Value
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CY2020Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value
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ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
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CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Weighted Average Grant Date Fair Value
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CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeitures Weighted Average Grant Date Fair Value
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CY2021Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value
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CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value
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CY2021Q4 us-gaap Product Warranty Accrual
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CY2021 us-gaap Operating Income Loss
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CY2021 us-gaap Depreciation And Amortization
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CY2020 us-gaap Operating Income Loss
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CY2020 us-gaap Depreciation And Amortization
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CY2020 us-gaap Payments To Acquire Property Plant And Equipment
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CY2022 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2021 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2020 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2022Q4 us-gaap Property Plant And Equipment Net
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CY2021Q4 us-gaap Property Plant And Equipment Net
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CY2022 us-gaap Foreign Currency Transaction Gain Loss Realized
ForeignCurrencyTransactionGainLossRealized
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CY2021 us-gaap Foreign Currency Transaction Gain Loss Realized
ForeignCurrencyTransactionGainLossRealized
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CY2020 us-gaap Foreign Currency Transaction Gain Loss Realized
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CY2022 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
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CY2020 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
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CY2022 wab Periodic Defined Benefits Expense Reversalof Expense Excluding Interest Cost And Service Cost Component
PeriodicDefinedBenefitsExpenseReversalofExpenseExcludingInterestCostAndServiceCostComponent
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CY2021 wab Periodic Defined Benefits Expense Reversalof Expense Excluding Interest Cost And Service Cost Component
PeriodicDefinedBenefitsExpenseReversalofExpenseExcludingInterestCostAndServiceCostComponent
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CY2020 wab Periodic Defined Benefits Expense Reversalof Expense Excluding Interest Cost And Service Cost Component
PeriodicDefinedBenefitsExpenseReversalofExpenseExcludingInterestCostAndServiceCostComponent
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CY2022 us-gaap Other Nonoperating Income Expense
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CY2021 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
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CY2020 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
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CY2022 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
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CY2021 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
38000000 usd
CY2020 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
11000000 usd
CY2022 dei Auditor Firm
AuditorFirmId
42
CY2022 dei Auditor Location
AuditorLocation
Pittsburgh, Pennsylvania

Files In Submission

Name View Source Status
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