UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
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Item 2.02 Results of Operations and Financial Condition.
The information contained in Item 8.01 of this Current Report is incorporated herein by reference.
Item 8.01 Other Events.
Apergy Corporation ("the Company") is filing this Current Report on Form 8-K to update certain financial information included in its Annual Report on Form 10-K for the year ended December 31, 2018, and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019, and September 30, 2019, for the correction of immaterial errors related to: (i) the assessing and recording of liabilities for state sales tax and associated penalties and interest, primarily resulting in an understatement of our selling, general, and administrative expense and interest expense for the years ended December 31, 2018, 2017, and 2016, and for the three months ended March 31, 2019, three and six months ended June 30, 2019 and three and nine months ended September 30, 2019; (ii) the write-off of inventory and leased assets recorded during the third quarter of 2019, primarily resulting in an understatement of our cost of sales and services expense for the year ended December 31, 2018, and for the three months ended March 31, 2019, and three and six months ended June 30, 2019; and (iii) other previously identified amounts that the Company concluded are immaterial to our previously filed consolidated financial statements.
We evaluated the materiality of the errors in accordance with accounting principles generally accepted in the United States of America and other guidance of the U.S. Securities and Exchange Commission and concluded the errors are immaterial to all previously reported periods. The Company will correct the errors by revising prior period financial statements in our Annual Report on Form 10-K for the year ended December 31, 2019 and in each of our Quarterly Reports on Form 10-Q for the periods ending March 31, 2020, June 30, 2020 and September 30, 2020.
The impact of the corrections on the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 and the condensed consolidated financial statements included in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019 and September 30, 2019, is presented in Exhibit 99.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. | Description | |
99.1 | Unaudited Supplemental Financial Information | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Apergy Corporation | ||||
Date: February 11, 2020 | By: | /s/ JAY A. NUTT | ||
Jay A. Nutt | ||||
Senior Vice President and Chief Financial Officer | ||||
EXHIBIT INDEX
Exhibit No. | Description | |
Exhibit 99.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | ||||||||||||||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||||
Product revenue | $ | 244,651 | $ | (1,439 | ) | $ | 243,212 | $ | 283,102 | $ | 466 | $ | 283,568 | ||||||||||
Other revenue | 33,730 | (103 | ) | 33,627 | 33,366 | (763 | ) | 32,603 | |||||||||||||||
Total revenue | 278,381 | (1,542 | ) | 276,839 | 316,468 | (297 | ) | 316,171 | |||||||||||||||
Cost of goods and services | 186,862 | (2,722 | ) | 184,140 | 202,734 | 1,110 | 203,844 | ||||||||||||||||
Gross profit | 91,519 | 1,180 | 92,699 | 113,734 | (1,407 | ) | 112,327 | ||||||||||||||||
Selling, general and administrative expense | 68,813 | (408 | ) | 68,405 | 69,206 | (60 | ) | 69,146 | |||||||||||||||
Interest expense, net | 9,537 | 53 | 9,590 | 10,584 | 53 | 10,637 | |||||||||||||||||
Other (income) expense, net | (309 | ) | — | (309 | ) | 725 | 484 | 1,209 | |||||||||||||||
Income before income taxes | 13,478 | 1,535 | 15,013 | 33,219 | (1,884 | ) | 31,335 | ||||||||||||||||
Provision for income taxes | 3,059 | 366 | 3,425 | 7,723 | (403 | ) | 7,320 | ||||||||||||||||
Net income | 10,419 | 1,169 | 11,588 | 25,496 | (1,481 | ) | 24,015 | ||||||||||||||||
Net income attributable to noncontrolling interest | 194 | — | 194 | 232 | (178 | ) | 54 | ||||||||||||||||
Net income attributable to Apergy | $ | 10,225 | $ | 1,169 | $ | 11,394 | $ | 25,264 | $ | (1,303 | ) | $ | 23,961 | ||||||||||
Earnings per share attributable to Apergy: | |||||||||||||||||||||||
Basic | $ | 0.13 | $ | 0.02 | $ | 0.15 | $ | 0.33 | $ | (0.02 | ) | $ | 0.31 | ||||||||||
Diluted | $ | 0.13 | $ | 0.02 | $ | 0.15 | $ | 0.33 | $ | (0.02 | ) | $ | 0.31 | ||||||||||
Comprehensive income | $ | 7,587 | $ | 1,169 | $ | 8,756 | $ | 25,420 | $ | (1,481 | ) | $ | 23,939 | ||||||||||
Comprehensive income attributable to Apergy | $ | 7,393 | $ | 1,169 | $ | 8,562 | $ | 25,188 | $ | (1,303 | ) | $ | 23,885 | ||||||||||
1
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | ||||||||||||||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||||
Product revenue | $ | 273,513 | $ | (603 | ) | $ | 272,910 | $ | 271,758 | $ | 1,170 | $ | 272,928 | ||||||||||
Other revenue (1) | 32,541 | 719 | 33,260 | 34,092 | (1,273 | ) | 32,819 | ||||||||||||||||
Total revenue | 306,054 | 116 | 306,170 | 305,850 | (103 | ) | 305,747 | ||||||||||||||||
Cost of goods and services | 196,285 | 1,125 | 197,410 | 202,171 | (514 | ) | 201,657 | ||||||||||||||||
Gross profit | 109,769 | (1,009 | ) | 108,760 | 103,679 | 411 | 104,090 | ||||||||||||||||
Selling, general and administrative expense | 66,642 | 45 | 66,687 | 65,671 | 665 | 66,336 | |||||||||||||||||
Interest expense, net | 10,057 | 52 | 10,109 | 6,062 | 53 | 6,115 | |||||||||||||||||
Other expense, net | 2,676 | — | 2,676 | 499 | (1 | ) | 498 | ||||||||||||||||
Income before income taxes | 30,394 | (1,106 | ) | 29,288 | 31,447 | (306 | ) | 31,141 | |||||||||||||||
Provision for income taxes | 6,544 | (264 | ) | 6,280 | 9,372 | (110 | ) | 9,262 | |||||||||||||||
Net income | 23,850 | (842 | ) | 23,008 | 22,075 | (196 | ) | 21,879 | |||||||||||||||
Net income (loss) attributable to noncontrolling interest | 71 | — | 71 | (79 | ) | 142 | 63 | ||||||||||||||||
Net income attributable to Apergy | $ | 23,779 | $ | (842 | ) | $ | 22,937 | $ | 22,154 | $ | (338 | ) | $ | 21,816 | |||||||||
Earnings per share attributable to Apergy: | |||||||||||||||||||||||
Basic | $ | 0.31 | $ | (0.01 | ) | $ | 0.30 | $ | 0.29 | $ | (0.01 | ) | $ | 0.28 | |||||||||
Diluted | $ | 0.31 | $ | (0.01 | ) | $ | 0.30 | $ | 0.28 | $ | — | $ | 0.28 | ||||||||||
Comprehensive income | $ | 24,892 | $ | (842 | ) | $ | 24,050 | $ | 15,417 | $ | (196 | ) | $ | 15,221 | |||||||||
Comprehensive income attributable to Apergy | $ | 24,821 | $ | (842 | ) | $ | 23,979 | $ | 15,496 | $ | (338 | ) | $ | 15,158 | |||||||||
_______________________
(1) Includes “Service revenue” and “Lease and other revenue” as reported in the condensed consolidated statements of income for the three months ended June 30, 2019 and 2018.
2
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||||||||||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||||
Product revenue | $ | 269,534 | $ | (192 | ) | $ | 269,342 | $ | 253,090 | $ | 870 | $ | 253,960 | ||||||||||
Other revenue (1) | 32,157 | (1,005 | ) | 31,152 | 30,036 | (891 | ) | 29,145 | |||||||||||||||
Total revenue | 301,691 | (1,197 | ) | 300,494 | 283,126 | (21 | ) | 283,105 | |||||||||||||||
Cost of goods and services | 196,142 | 1,341 | 197,483 | 189,511 | (398 | ) | 189,113 | ||||||||||||||||
Gross profit | 105,549 | (2,538 | ) | 103,011 | 93,615 | 377 | 93,992 | ||||||||||||||||
Selling, general and administrative expense | 65,347 | 528 | 65,875 | 59,739 | 415 | 60,154 | |||||||||||||||||
Interest expense, net | 10,474 | 53 | 10,527 | 166 | 53 | 219 | |||||||||||||||||
Other expense, net | 1,090 | 12 | 1,102 | 2,452 | 241 | 2,693 | |||||||||||||||||
Income before income taxes | 28,638 | (3,131 | ) | 25,507 | 31,258 | (332 | ) | 30,926 | |||||||||||||||
Provision for income taxes | 6,069 | (500 | ) | 5,569 | 7,064 | (88 | ) | 6,976 | |||||||||||||||
Net income | 22,569 | (2,631 | ) | 19,938 | 24,194 | (244 | ) | 23,950 | |||||||||||||||
Net income attributable to noncontrolling interest | 282 | — | 282 | 142 | 35 | 177 | |||||||||||||||||
Net income attributable to Apergy | $ | 22,287 | $ | (2,631 | ) | $ | 19,656 | $ | 24,052 | $ | (279 | ) | $ | 23,773 | |||||||||
Earnings per share attributable to Apergy: | |||||||||||||||||||||||
Basic | $ | 0.29 | $ | (0.04 | ) | $ | 0.25 | $ | 0.31 | $ | — | $ | 0.31 | ||||||||||
Diluted | $ | 0.29 | $ | (0.04 | ) | $ | 0.25 | $ | 0.31 | $ | — | $ | 0.31 | ||||||||||
Comprehensive income | $ | 23,758 | $ | (2,631 | ) | $ | 21,127 | $ | 22,552 | $ | (244 | ) | $ | 22,308 | |||||||||
Comprehensive income attributable to Apergy | $ | 23,476 | $ | (2,631 | ) | $ | 20,845 | $ | 22,410 | $ | (279 | ) | $ | 22,131 | |||||||||
_______________________
(1) Includes “Service revenue” and “Lease and other revenue” as reported in the condensed consolidated statements of income for the three months ended March 31, 2019 and 2018.
3
Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | ||||||||||||||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||||
Product revenue | $ | 787,698 | $ | (2,234 | ) | $ | 785,464 | $ | 807,949 | $ | 2,507 | $ | 810,456 | ||||||||||
Other revenue | 98,428 | (389 | ) | 98,039 | 97,495 | (2,928 | ) | 94,567 | |||||||||||||||
Total revenue | 886,126 | (2,623 | ) | 883,503 | 905,444 | (421 | ) | 905,023 | |||||||||||||||
Cost of goods and services | 579,289 | (256 | ) | 579,033 | 594,416 | 198 | 594,614 | ||||||||||||||||
Gross profit | 306,837 | (2,367 | ) | 304,470 | 311,028 | (619 | ) | 310,409 | |||||||||||||||
Selling, general and administrative expense | 200,790 | 177 | 200,967 | 194,374 | 1,262 | 195,636 | |||||||||||||||||
Interest expense, net | 30,068 | 158 | 30,226 | 16,813 | 158 | 16,971 | |||||||||||||||||
Other expense, net | 3,469 | — | 3,469 | 3,917 | 483 | 4,400 | |||||||||||||||||
Income before income taxes | 72,510 | (2,702 | ) | 69,808 | 95,924 | (2,522 | ) | 93,402 | |||||||||||||||
Provision for income taxes | 15,672 | (398 | ) | 15,274 | 24,159 | (601 | ) | 23,558 | |||||||||||||||
Net income | 56,838 | (2,304 | ) | 54,534 | 71,765 | (1,921 | ) | 69,844 | |||||||||||||||
Net income attributable to noncontrolling interest | 547 | — | 547 | 295 | (1 | ) | 294 | ||||||||||||||||
Net income attributable to Apergy | $ | 56,291 | $ | (2,304 | ) | $ | 53,987 | $ | 71,470 | $ | (1,920 | ) | $ | 69,550 | |||||||||
Earnings per share attributable to Apergy: | |||||||||||||||||||||||
Basic | $ | 0.73 | $ | (0.03 | ) | $ | 0.70 | $ | 0.92 | $ | (0.02 | ) | $ | 0.90 | |||||||||
Diluted | $ | 0.73 | $ | (0.03 | ) | $ | 0.70 | $ | 0.92 | $ | (0.03 | ) | $ | 0.89 | |||||||||
Comprehensive income | $ | 56,237 | $ | (2,304 | ) | $ | 53,933 | $ | 63,389 | $ | (1,921 | ) | $ | 61,468 | |||||||||
Comprehensive income attributable to Apergy | $ | 55,690 | $ | (2,304 | ) | $ | 53,386 | $ | 63,094 | $ | (1,920 | ) | $ | 61,174 | |||||||||
4
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||||||||||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||||
Product revenue | $ | 543,047 | $ | (795 | ) | $ | 542,252 | $ | 524,847 | $ | 2,041 | $ | 526,888 | ||||||||||
Other revenue (1) | 64,698 | (286 | ) | 64,412 | 64,129 | (2,165 | ) | 61,964 | |||||||||||||||
Total revenue | 607,745 | (1,081 | ) | 606,664 | 588,976 | (124 | ) | 588,852 | |||||||||||||||
Cost of goods and services | 392,427 | 2,466 | 394,893 | 391,682 | (912 | ) | 390,770 | ||||||||||||||||
Gross profit | 215,318 | (3,547 | ) | 211,771 | 197,294 | 788 | 198,082 | ||||||||||||||||
Selling, general and administrative expense | 131,977 | 585 | 132,562 | 125,168 | 1,322 | 126,490 | |||||||||||||||||
Interest expense, net | 20,531 | 105 | 20,636 | 6,229 | 105 | 6,334 | |||||||||||||||||
Other expense, net | 3,778 | — | 3,778 | 3,192 | (1 | ) | 3,191 | ||||||||||||||||
Income before income taxes | 59,032 | (4,237 | ) | 54,795 | 62,705 | (638 | ) | 62,067 | |||||||||||||||
Provision for income taxes | 12,613 | (764 | ) | 11,849 | 16,436 | (198 | ) | 16,238 | |||||||||||||||
Net income | 46,419 | (3,473 | ) | 42,946 | 46,269 | (440 | ) | 45,829 | |||||||||||||||
Net income attributable to noncontrolling interest | 353 | — | 353 | 63 | 177 | 240 | |||||||||||||||||
Net income attributable to Apergy | $ | 46,066 | $ | (3,473 | ) | $ | 42,593 | $ | 46,206 | $ | (617 | ) | $ | 45,589 | |||||||||
Earnings per share attributable to Apergy: | |||||||||||||||||||||||
Basic | $ | 0.60 | $ | (0.05 | ) | $ | 0.55 | $ | 0.60 | $ | (0.01 | ) | $ | 0.59 | |||||||||
Diluted | $ | 0.59 | $ | (0.04 | ) | $ | 0.55 | $ | 0.59 | $ | — | $ | 0.59 | ||||||||||
Comprehensive income | $ | 48,650 | $ | (3,473 | ) | $ | 45,177 | $ | 37,969 | $ | (440 | ) | $ | 37,529 | |||||||||
Comprehensive income attributable to Apergy | $ | 48,297 | $ | (3,473 | ) | $ | 44,824 | $ | 37,906 | $ | (617 | ) | $ | 37,289 | |||||||||
_______________________
(1) Includes “Service revenue” and “Lease and other revenue” as reported in the condensed consolidated statements of income for the six months ended June 30, 2019 and 2018.
5
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2019 | |||||||||||
(in thousands) | As Reported | Adjustments | As Revised | ||||||||
Assets | |||||||||||
Receivables, net | $ | 236,381 | $ | (428 | ) | $ | 235,953 | ||||
Inventories, net | 219,614 | (675 | ) | 218,939 | |||||||
Prepaid expenses and other current assets | 34,516 | (2,143 | ) | 32,373 | |||||||
Total current assets | 531,138 | (3,246 | ) | 527,892 | |||||||
Property, plant and equipment, net | 249,385 | (340 | ) | 249,045 | |||||||
Other non-current assets | 29,626 | 429 | 30,055 | ||||||||
Total assets | 1,972,253 | (3,157 | ) | 1,969,096 | |||||||
Liabilities and Equity | |||||||||||
Accounts payable | 114,185 | 7,738 | 121,923 | ||||||||
Accrued expenses and other current liabilities | 51,852 | (2,035 | ) | 49,817 | |||||||
Total current liabilities | 206,453 | 5,703 | 212,156 | ||||||||
Deferred income taxes | 97,588 | (2,674 | ) | 94,914 | |||||||
Total liabilities | 930,447 | 3,029 | 933,476 | ||||||||
Stockholders’ equity: | |||||||||||
Capital in excess of par value of common stock | 971,075 | (4,599 | ) | 966,476 | |||||||
Retained earnings | 110,458 | (1,587 | ) | 108,871 | |||||||
Total stockholders’ equity | 1,038,801 | (6,186 | ) | 1,032,615 | |||||||
Total equity | 1,041,806 | (6,186 | ) | 1,035,620 | |||||||
Total liabilities and equity | 1,972,253 | (3,157 | ) | 1,969,096 | |||||||
June 30, 2019 | |||||||||||
(in thousands) | As Reported | Adjustments | As Revised | ||||||||
Assets | |||||||||||
Receivables, net | $ | 256,379 | $ | 532 | $ | 256,911 | |||||
Inventories, net | 234,254 | (2,217 | ) | 232,037 | |||||||
Prepaid expenses and other current assets | 14,576 | 4,109 | 18,685 | ||||||||
Total current assets | 529,545 | 2,424 | 531,969 | ||||||||
Property, plant and equipment, net | 250,573 | (1,578 | ) | 248,995 | |||||||
Other non-current assets | 31,513 | 461 | 31,974 | ||||||||
Total assets | 1,975,438 | 1,307 | 1,976,745 | ||||||||
Liabilities and Equity | |||||||||||
Accounts payable | 128,664 | 7,485 | 136,149 | ||||||||
Accrued compensation and employee benefits | 30,566 | 2,581 | 33,147 | ||||||||
Accrued expenses and other current liabilities | 41,874 | (2,461 | ) | 39,413 | |||||||
Total current liabilities | 201,104 | 7,605 | 208,709 | ||||||||
Deferred income taxes | 91,022 | 3,639 | 94,661 | ||||||||
Other long-term liabilities | 38,274 | (2,582 | ) | 35,692 | |||||||
Total liabilities | 943,701 | 8,662 | 952,363 | ||||||||
Stockholders’ equity: | |||||||||||
Capital in excess of par value of common stock | 968,593 | (4,599 | ) | 963,994 | |||||||
Retained earnings | 100,233 | (2,756 | ) | 97,477 | |||||||
Total stockholders’ equity | 1,028,926 | (7,355 | ) | 1,021,571 | |||||||
Total equity | 1,031,737 | (7,355 | ) | 1,024,382 | |||||||
Total liabilities and equity | 1,975,438 | 1,307 | 1,976,745 | ||||||||
6
March 31, 2019 | |||||||||||
(in thousands) | As Reported | Adjustments | As Revised | ||||||||
Assets | |||||||||||
Receivables, net | $ | 258,650 | $ | 285 | $ | 258,935 | |||||
Inventories, net | 232,933 | (1,792 | ) | 231,141 | |||||||
Prepaid expenses and other current assets | 17,861 | (1,672 | ) | 16,189 | |||||||
Total current assets | 537,798 | (3,179 | ) | 534,619 | |||||||
Property, plant and equipment, net | 244,886 | (959 | ) | 243,927 | |||||||
Other non-current assets | 29,931 | 471 | 30,402 | ||||||||
Total assets | 1,988,609 | (3,667 | ) | 1,984,942 | |||||||
Liabilities and Equity | |||||||||||
Accounts payable | 124,100 | 7,186 | 131,286 | ||||||||
Accrued compensation and employee benefits | 28,882 | 2,243 | 31,125 | ||||||||
Accrued expenses and other current liabilities | 59,291 | (1,897 | ) | 57,394 | |||||||
Total current liabilities | 212,273 | 7,532 | 219,805 | ||||||||
Deferred income taxes | 96,469 | (2,443 | ) | 94,026 | |||||||
Other long-term liabilities | 37,017 | (2,243 | ) | 34,774 | |||||||
Total liabilities | 983,406 | 2,846 | 986,252 | ||||||||
Stockholders’ equity: | |||||||||||
Capital in excess of par value of common stock | 966,938 | (4,599 | ) | 962,339 | |||||||
Retained earnings | 76,454 | (1,914 | ) | 74,540 | |||||||
Total stockholders’ equity | 1,002,449 | (6,513 | ) | 995,936 | |||||||
Total equity | 1,005,203 | (6,513 | ) | 998,690 | |||||||
Total liabilities and equity | 1,988,609 | (3,667 | ) | 1,984,942 | |||||||
7
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(in thousands) | As Reported | Adjustments | As Revised | ||||||||
December 31, 2017 | $ | 1,640,385 | $ | (4,876 | ) | $ | 1,635,509 | ||||
Net income | 24,194 | (244 | ) | 23,950 | |||||||
March 31, 2018 | 1,661,302 | (5,120 | ) | 1,656,182 | |||||||
Net income | 22,075 | (196 | ) | 21,879 | |||||||
June 30, 2018 | 935,527 | (5,316 | ) | 930,211 | |||||||
Net income | 25,496 | (1,481 | ) | 24,015 | |||||||
September 30, 2018 | 964,762 | (6,797 | ) | 957,965 | |||||||
(in thousands) | As Reported | Adjustments | As Revised | ||||||||
December 31, 2018 | $ | 981,527 | $ | (5,544 | ) | $ | 975,983 | ||||
Cumulative effect of accounting changes | (1,662 | ) | 1,662 | — | |||||||
Net income | 22,569 | (2,631 | ) | 19,938 | |||||||
March 31, 2019 | 1,005,203 | (6,513 | ) | 998,690 | |||||||
Net income | 23,850 | (842 | ) | 23,008 | |||||||
June 30, 2019 | 1,031,737 | (7,355 | ) | 1,024,382 | |||||||
Net income | 10,419 | 1,169 | 11,588 | ||||||||
September 30, 2019 | 1,041,806 | (6,186 | ) | 1,035,620 | |||||||
8
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Year Ended December 31, 2018 | |||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | ||||||||
Product revenue | $ | 1,085,471 | $ | 4,747 | $ | 1,090,218 | |||||
Other revenue (1) | 131,175 | (3,237 | ) | 127,938 | |||||||
Total revenue | 1,216,646 | 1,510 | 1,218,156 | ||||||||
Cost of goods and services | 800,347 | 805 | 801,152 | ||||||||
Gross profit | 416,299 | 705 | 417,004 | ||||||||
Selling, general and administrative expense | 262,625 | 2,322 | 264,947 | ||||||||
Interest expense, net | 27,440 | 208 | 27,648 | ||||||||
Other expense, net | 2,943 | 113 | 3,056 | ||||||||
Income before income taxes | 123,291 | (1,938 | ) | 121,353 | |||||||
Provision for income taxes | 28,796 | (634 | ) | 28,162 | |||||||
Net income | 94,495 | (1,304 | ) | 93,191 | |||||||
Net income attributable to noncontrolling interest | 454 | — | 454 | ||||||||
Net income attributable to Apergy | $ | 94,041 | $ | (1,304 | ) | $ | 92,737 | ||||
Earnings per share attributable to Apergy: | |||||||||||
Basic | $ | 1.22 | $ | (0.02 | ) | $ | 1.20 | ||||
Diluted | $ | 1.21 | $ | (0.02 | ) | $ | 1.19 | ||||
Comprehensive income | $ | 81,741 | $ | (1,304 | ) | $ | 80,437 | ||||
Comprehensive income attributable to Apergy | $ | 81,287 | $ | (1,304 | ) | $ | 79,983 | ||||
_______________________
(1) Includes “Service revenue” and “Lease and other revenue” as reported in the consolidated statement of income for the year ended December 31, 2018.
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Year Ended December 31, 2017 | |||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | ||||||||
Product revenue | $ | 919,669 | $ | 3,023 | $ | 922,692 | |||||
Other revenue (1) | 90,797 | (3,023 | ) | 87,774 | |||||||
Total revenue | 1,010,466 | — | 1,010,466 | ||||||||
Cost of goods and services | 689,990 | 408 | 690,398 | ||||||||
Gross profit | 320,476 | (408 | ) | 320,068 | |||||||
Selling, general and administrative expense | 218,558 | 2,849 | 221,407 | ||||||||
Interest expense, net | 753 | 110 | 863 | ||||||||
Other expense, net | 10,377 | (934 | ) | 9,443 | |||||||
Income before income taxes | 90,788 | (2,433 | ) | 88,355 | |||||||
Benefit from income taxes | (21,876 | ) | (288 | ) | (22,164 | ) | |||||
Net income | 112,664 | (2,145 | ) | 110,519 | |||||||
Net income attributable to noncontrolling interest | 930 | — | 930 | ||||||||
Net income attributable to Apergy | $ | 111,734 | $ | (2,145 | ) | $ | 109,589 | ||||
Earnings per share attributable to Apergy: | |||||||||||
Basic | $ | 1.44 | $ | (0.02 | ) | $ | 1.42 | ||||
Diluted | $ | 1.43 | $ | (0.02 | ) | $ | 1.41 | ||||
Comprehensive income | $ | 119,905 | $ | (2,145 | ) | $ | 117,760 | ||||
Comprehensive income attributable to Apergy | $ | 118,975 | $ | (2,145 | ) | $ | 116,830 | ||||
(1) Includes “Service revenue” and “Lease and other revenue” as reported in the consolidated statement of income for the year ended December 31, 2017.
Year Ended December 31, 2016 | |||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | ||||||||
Product revenue | $ | 673,447 | $ | 2,525 | $ | 675,972 | |||||
Other revenue (1) | 77,890 | (2,525 | ) | 75,365 | |||||||
Total revenue | 751,337 | — | 751,337 | ||||||||
Cost of goods and services | 556,066 | 180 | 556,246 | ||||||||
Gross profit | 195,271 | (180 | ) | 195,091 | |||||||
Selling, general and administrative expense | 204,383 | 1,266 | 205,649 | ||||||||
Interest expense, net | 477 | 51 | 528 | ||||||||
Other expense, net | 9,354 | (366 | ) | 8,988 | |||||||
Loss before income taxes | (18,943 | ) | (1,131 | ) | (20,074 | ) | |||||
Benefit from income taxes | (8,043 | ) | (416 | ) | (8,459 | ) | |||||
Net loss | (10,900 | ) | (715 | ) | (11,615 | ) | |||||
Net income attributable to noncontrolling interest | 1,851 | — | 1,851 | ||||||||
Net loss attributable to Apergy | $ | (12,751 | ) | $ | (715 | ) | $ | (13,466 | ) | ||
Loss per share attributable to Apergy: | |||||||||||
Basic | $ | (0.16 | ) | $ | (0.01 | ) | $ | (0.17 | ) | ||
Diluted | $ | (0.16 | ) | $ | (0.01 | ) | $ | (0.17 | ) | ||
Comprehensive loss | $ | (9,863 | ) | $ | (715 | ) | $ | (10,578 | ) | ||
Comprehensive loss attributable to Apergy | $ | (11,714 | ) | $ | (715 | ) | $ | (12,429 | ) | ||
(1) Includes “Service revenue” and “Lease and other revenue” as reported in the consolidated statement of loss for the year ended December 31, 2016.
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CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2018 | |||||||||||
(in thousands) | As Reported | Adjustments | As Revised | ||||||||
Assets | |||||||||||
Receivables, net | $ | 249,948 | $ | 1,488 | $ | 251,436 | |||||
Inventories, net | 218,319 | 1,102 | 219,421 | ||||||||
Prepaid expenses and other current assets | 20,211 | (1,677 | ) | 18,534 | |||||||
Total current assets | 530,310 | 913 | 531,223 | ||||||||
Other non-current assets | 8,445 | 447 | 8,892 | ||||||||
Total assets | 1,971,756 | 1,360 | 1,973,116 | ||||||||
Liabilities and Equity | |||||||||||
Accounts payable | 131,058 | 9,067 | 140,125 | ||||||||
Accrued expenses and other current liabilities | 30,391 | 2,690 | 33,081 | ||||||||
Total current liabilities | 201,995 | 11,757 | 213,752 | ||||||||
Long-term debt | 666,108 | (2,901 | ) | 663,207 | |||||||
Deferred income taxes | 101,724 | (1,952 | ) | 99,772 | |||||||
Total liabilities | 990,229 | 6,904 | 997,133 | ||||||||
Stockholders’ equity: | |||||||||||
Capital in excess of par value of common stock | 965,372 | (4,599 | ) | 960,773 | |||||||
Retained earnings | 55,829 | (945 | ) | 54,884 | |||||||
Total stockholders’ equity | 979,069 | (5,544 | ) | 973,525 | |||||||
Total equity | 981,527 | (5,544 | ) | 975,983 | |||||||
Total liabilities and equity | 1,971,756 | 1,360 | 1,973,116 | ||||||||
December 31, 2017 | |||||||||||
(in thousands) | As Reported | Adjustments | As Revised | ||||||||
Assets | |||||||||||
Inventories, net | $ | 201,402 | $ | (207 | ) | $ | 201,195 | ||||
Total current assets | 441,475 | (207 | ) | 441,268 | |||||||
Total assets | 1,906,615 | (207 | ) | 1,906,408 | |||||||
Liabilities and Equity | |||||||||||
Accounts payable | 98,826 | 3,859 | 102,685 | ||||||||
Accrued expenses and other current liabilities | 21,375 | 1,731 | 23,106 | ||||||||
Total current liabilities | 150,490 | 5,590 | 156,080 | ||||||||
Deferred income taxes | 96,985 | (921 | ) | 96,064 | |||||||
Total liabilities | 266,230 | 4,669 | 270,899 | ||||||||
Stockholders’ equity: | |||||||||||
Net parent investment in Apergy | 1,662,052 | (4,876 | ) | 1,657,176 | |||||||
Total stockholders’ equity | 1,635,636 | (4,876 | ) | 1,630,760 | |||||||
Total equity | 1,640,385 | (4,876 | ) | 1,635,509 | |||||||
Total liabilities and equity | 1,906,615 | (207 | ) | 1,906,408 | |||||||
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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(in thousands) | As Reported | Adjustments | As Revised | ||||||||
December 31, 2015 | $ | 1,644,993 | $ | (2,028 | ) | $ | 1,642,965 | ||||
Net loss | (10,900 | ) | (715 | ) | (11,615 | ) | |||||
Net transfer to Dover | (81,964 | ) | 29 | (81,935 | ) | ||||||
December 31, 2016 | 1,551,218 | (2,714 | ) | 1,548,504 | |||||||
Net income | 112,664 | (2,145 | ) | 110,519 | |||||||
Net transfers to Dover | (29,526 | ) | (17 | ) | (29,543 | ) | |||||
December 31, 2017 | 1,640,385 | (4,876 | ) | 1,635,509 | |||||||
Net income | 94,495 | (1,304 | ) | 93,191 | |||||||
Net transfers to/from Dover | (742,690 | ) | 636 | (742,054 | ) | ||||||
December 31, 2018 | 981,527 | (5,544 | ) | 975,983 | |||||||
12