Company Quick10K Filing
Axalta Coating Systems
Price30.22 EPS1
Shares236 P/E25
MCap7,126 P/FCF104
Net Debt3,088 EBIT460
TEV10,214 TEV/EBIT22
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-07-29
10-Q 2020-03-31 Filed 2020-05-06
10-K 2019-12-31 Filed 2020-02-19
10-Q 2019-09-30 Filed 2019-10-25
10-Q 2019-06-30 Filed 2019-07-25
10-Q 2019-03-31 Filed 2019-04-25
10-K 2018-12-31 Filed 2019-02-26
10-Q 2018-09-30 Filed 2018-10-25
10-Q 2018-06-30 Filed 2018-07-26
10-Q 2018-03-31 Filed 2018-04-25
10-K 2017-12-31 Filed 2018-02-22
10-Q 2017-09-30 Filed 2017-10-26
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-04-26
10-K 2016-12-31 Filed 2017-02-28
10-Q 2016-09-30 Filed 2016-10-27
10-Q 2016-06-30 Filed 2016-07-27
10-Q 2016-03-31 Filed 2016-04-28
10-K 2015-12-31 Filed 2016-02-29
10-Q 2015-09-30 Filed 2015-10-30
10-Q 2015-06-30 Filed 2015-08-04
10-Q 2015-03-31 Filed 2015-05-06
10-K 2014-12-31 Filed 2015-03-13
10-Q 2014-09-30 Filed 2014-11-14
8-K 2020-08-24 Officers, Regulation FD, Exhibits
8-K 2020-07-29 Earnings, Exhibits
8-K 2020-07-03 Officers, Regulation FD, Exhibits
8-K 2020-06-16
8-K 2020-06-15
8-K 2020-06-01
8-K 2020-06-01
8-K 2020-05-05
8-K 2020-04-29
8-K 2020-04-27
8-K 2020-03-31
8-K 2020-03-24
8-K 2020-01-30
8-K 2019-11-04
8-K 2019-10-24
8-K 2019-09-08
8-K 2019-08-07
8-K 2019-07-25
8-K 2019-06-28
8-K 2019-06-24
8-K 2019-06-19
8-K 2019-05-29
8-K 2019-05-06
8-K 2019-05-02
8-K 2019-04-30
8-K 2019-04-24
8-K 2019-04-24
8-K 2019-03-27
8-K 2019-02-27
8-K 2019-01-31
8-K 2019-01-30
8-K 2018-12-19
8-K 2018-12-10
8-K 2018-11-15
8-K 2018-10-31
8-K 2018-10-26
8-K 2018-10-25
8-K 2018-10-18
8-K 2018-10-07
8-K 2018-08-06
8-K 2018-07-25
8-K 2018-07-25
8-K 2018-05-07
8-K 2018-05-02
8-K 2018-04-25
8-K 2018-04-11
8-K 2018-03-28
8-K 2018-03-08
8-K 2018-02-22
8-K 2018-02-06

AXTA 10Q Quarterly Report

Part I Financial Information
Item 1. Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 exhibit311q2202010-q630.htm
EX-31.2 exhibit312q2202010-q630.htm
EX-32.1 exhibit321q2202010-q630.htm
EX-32.2 exhibit322q2202010-q630.htm

Axalta Coating Systems Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02013201520172020
Assets, Equity
1.30.4-0.4-1.3-2.1-3.02013201520172020
Rev, G Profit, Net Income
0.50.30.1-0.2-0.4-0.62013201520172020
Ops, Inv, Fin

Document
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2020-07-29 0001616862 srt:MaximumMember axta:GlobalRestructuringCOVID19AndSustainedGrowthMember us-gaap:SubsequentEventMember 2020-07-29 xbrli:pure iso4217:USD xbrli:shares xbrli:shares iso4217:USD axta:Employee axta:interest_rate_swap axta:Segment
 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     .
Commission File Number: 001-36733
 
AXALTA COATING SYSTEMS LTD.
(Exact name of registrant as specified in its charter)
 
Bermuda
 
2851
 
98-1073028
(State or other jurisdiction of
incorporation or organization)
 
(Primary Standard Industrial
Classification Code Number)
 
(I.R.S. Employer
Identification No.)
Two Commerce Square
2001 Market Street
Suite 3600
Philadelphia, Pennsylvania 19103
(855) 547-1461
(Address, including zip code, and telephone number, including area code, of the registrant’s principal executive offices)
 
Securities registered pursuant to Section 12(b) of the Act:
Common Shares, $1.00 par value
 
AXTA
 
New York Stock Exchange
(Title of class)
 
(Trading symbol)
 
(Exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer Non-accelerated filer Accelerated filer
Smaller reporting company Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act

Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of July 23, 2020, there were 235,359,947 shares of the registrant’s common shares outstanding.
 
 
 
 
 




Table of Contents
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

2


PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

AXALTA COATING SYSTEMS LTD.
Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)

 
Three Months Ended June 30,
 
Six Months Ended June 30,

 
2020
 
2019
 
2020
 
2019
Net sales
 
$
652.7

 
$
1,157.5

 
$
1,636.2

 
$
2,276.8

Cost of goods sold
 
499.2

 
748.4

 
1,146.0

 
1,499.7

Selling, general and administrative expenses
 
154.2

 
202.4

 
349.6

 
418.0

Other operating charges
 
24.7

 
2.5

 
56.3

 
9.6

Research and development expenses
 
11.2

 
17.9

 
27.8

 
36.1

Amortization of acquired intangibles
 
27.9

 
28.4

 
55.9

 
56.9

(Loss) income from operations
 
(64.5
)
 
157.9

 
0.6

 
256.5

Interest expense, net
 
36.1

 
41.0

 
72.6

 
82.3

Other income, net
 
(2.2
)
 
(0.9
)
 
(1.4
)
 
(1.9
)
(Loss) income before income taxes
 
(98.4
)
 
117.8

 
(70.6
)
 
176.1

(Benefit) provision for income taxes
 
(15.2
)
 
17.9

 
(39.8
)
 
32.1

Net (loss) income
 
(83.2
)
 
99.9

 
(30.8
)
 
144.0

Less: Net (loss) income attributable to noncontrolling interests
 
(0.4
)
 
1.5

 
(0.2
)
 
2.2

Net (loss) income attributable to controlling interests
 
$
(82.8
)
 
$
98.4

 
$
(30.6
)
 
$
141.8

Basic net (loss) income per share
 
$
(0.35
)
 
$
0.42

 
$
(0.13
)
 
$
0.61

Diluted net (loss) income per share
 
$
(0.35
)
 
$
0.42

 
$
(0.13
)
 
$
0.60


The accompanying notes are an integral part of these condensed consolidated financial statements.

3


AXALTA COATING SYSTEMS LTD.
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited)
(In millions)
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2020
 
2019
 
2020
 
2019
Net (loss) income
 
$
(83.2
)
 
$
99.9

 
$
(30.8
)
 
$
144.0

Other comprehensive income (loss), before tax:
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
7.0

 
(0.9
)
 
(79.5
)
 
12.4

Unrealized loss on derivatives
 
(2.6
)
 
(20.3
)
 
(43.3
)
 
(34.9
)
Unrealized gain on pension plan obligations
 
0.2

 

 

 
0.5

Other comprehensive income (loss), before tax
 
4.6

 
(21.2
)
 
(122.8
)
 
(22.0
)
Income tax benefit related to items of other comprehensive loss
 
(0.6
)
 
(3.1
)
 
(6.4
)
 
(4.8
)
Other comprehensive income (loss), net of tax
 
5.2

 
(18.1
)
 
(116.4
)
 
(17.2
)
Comprehensive (loss) income
 
(78.0
)
 
81.8

 
(147.2
)
 
126.8

Less: Comprehensive income (loss) attributable to noncontrolling interests
 
0.5

 
3.7

 
(2.5
)
 
4.9

Comprehensive (loss) income attributable to controlling interests
 
$
(78.5
)
 
$
78.1

 
$
(144.7
)
 
$
121.9


The accompanying notes are an integral part of these condensed consolidated financial statements.

4


AXALTA COATING SYSTEMS LTD.
Condensed Consolidated Balance Sheets (Unaudited)
(In millions, except per share data)

 
June 30, 2020
 
December 31, 2019
Assets
 

 

Current assets:
 

 

Cash and cash equivalents
 
$
1,123.6

 
$
1,017.5

Restricted cash
 
2.9

 
3.0

Accounts and notes receivable, net
 
664.0

 
830.1

Inventories
 
539.3

 
591.6

Prepaid expenses and other current assets
 
150.4

 
131.2

Total current assets
 
2,480.2

 
2,573.4

Property, plant and equipment, net
 
1,158.2

 
1,223.0

Goodwill
 
1,209.3

 
1,208.9

Identifiable intangibles, net
 
1,158.1

 
1,223.9

Other assets
 
662.8

 
588.8

Total assets
 
$
6,668.6

 
$
6,818.0

Liabilities, Shareholders’ Equity
 

 

Current liabilities:
 

 

Accounts payable
 
$
331.9

 
$
483.7

Current portion of borrowings
 
41.3

 
43.9

Other accrued liabilities
 
487.7

 
545.3

Total current liabilities
 
860.9

 
1,072.9

Long-term borrowings
 
3,980.0

 
3,790.2

Accrued pensions
 
278.3

 
285.2

Deferred income taxes
 
108.7

 
115.5

Other liabilities
 
182.1

 
144.6

Total liabilities
 
5,410.0

 
5,408.4

Commitments and contingencies (Note 5)
 

 

Shareholders’ equity:
 

 

Common shares, $1.00 par, 1,000.0 shares authorized, 250.6 and 250.1 shares issued at June 30, 2020 and December 31, 2019, respectively
 
250.5

 
249.9

Capital in excess of par
 
1,479.5

 
1,474.1

Retained earnings
 
411.1

 
443.2

Treasury shares, at cost, 15.2 shares at June 30, 2020 and December 31, 2019
 
(418.4
)
 
(417.5
)
Accumulated other comprehensive loss
 
(509.6
)
 
(395.5
)
Total Axalta shareholders’ equity
 
1,213.1

 
1,354.2

Noncontrolling interests
 
45.5

 
55.4

Total shareholders’ equity
 
1,258.6

 
1,409.6

Total liabilities and shareholders’ equity
 
$
6,668.6

 
$
6,818.0


The accompanying notes are an integral part of these condensed consolidated financial statements.

5


AXALTA COATING SYSTEMS LTD.
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
(In millions)
 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Shares
 
Par/Stated Value
 
Capital In Excess Of Par
 
Retained Earnings
 
Treasury Shares, at cost
 
Accumulated Other Comprehensive Loss
 
Non controlling Interests
 
Total
Balance at December 31, 2019
234.9

 
$
249.9

 
$
1,474.1

 
$
443.2

 
$
(417.5
)
 
$
(395.5
)
 
$
55.4

 
$
1,409.6

Comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income

 

 

 
52.2

 

 

 
0.2

 
52.4

Net realized and unrealized loss on derivatives, net of tax benefit of $6.0 million

 

 

 

 

 
(34.7
)
 

 
(34.7
)
Long-term employee benefit plans, net of tax benefit of $0.2 million

 

 

 

 

 
(0.4
)
 

 
(0.4
)
Foreign currency translation, net of tax of $0.0 million

 

 

 

 

 
(83.3
)
 
(3.2
)
 
(86.5
)
Total comprehensive income (loss)

 

 

 
52.2

 

 
(118.4
)
 
(3.0
)
 
(69.2
)
Cumulative effect of an accounting change

 

 

 
(1.5
)
 

 

 

 
(1.5
)
Recognition of stock-based compensation

 

 
5.1

 

 

 

 

 
5.1

Shares issued under compensation plans
0.4

 
0.5

 
(1.6
)
 

 

 

 

 
(1.1
)
Ownership changes relating to noncontrolling interests

 

 
0.5

 

 

 

 
(2.1
)
 
(1.6
)
Dividends declared to noncontrolling interests

 

 

 

 

 

 
(0.5
)
 
(0.5
)
Balance at March 31, 2020
235.3

 
250.4

 
1,478.1

 
493.9

 
(417.5
)
 
(513.9
)
 
49.8

 
1,340.8

Comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss

 

 

 
(82.8
)
 

 

 
(0.4
)
 
(83.2
)
Net realized and unrealized loss on derivatives, net of tax benefit of $0.4 million

 

 

 

 

 
(2.2
)
 

 
(2.2
)
Long-term employee benefit plans, net of tax of $0.2 million

 

 

 

 

 
0.4

 

 
0.4

Foreign currency translation, net of tax of $0.0 million

 

 

 

 

 
6.1

 
0.9

 
7.0

Total comprehensive income (loss)

 

 

 
(82.8
)
 

 
4.3

 
0.5

 
(78.0
)
Recognition of stock-based compensation

 

 
6.1

 

 

 

 

 
6.1

Shares issued under compensation plans
0.1

 
0.1

 
1.1

 

 

 

 

 
1.2

Changes in redeemable noncontrolling interest

 

 
(5.8
)
 

 

 

 
(4.8
)
 
(10.6
)
Common stock purchases

 

 

 

 
(0.9
)
 

 

 
(0.9
)
Balance at June 30, 2020
235.4

 
$
250.5

 
$
1,479.5

 
$
411.1

 
$
(418.4
)
 
$
(509.6
)
 
$
45.5

 
$
1,258.6


The accompanying notes are an integral part of these condensed consolidated financial statements.

6



AXALTA COATING SYSTEMS LTD.
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
(In millions)

 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Shares
 
Par/Stated Value
 
Capital In Excess Of Par
 
Retained earnings
 
Treasury Shares, at cost
 
Accumulated Other Comprehensive Loss
 
Non controlling Interests
 
Total
Balance at December 31, 2018
235.6

 
$
245.3

 
$
1,409.5

 
$
198.6

 
$
(312.2
)
 
$
(336.1
)
 
$
105.4

 
$
1,310.5

Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income

 

 

 
43.4

 

 

 
0.7

 
44.1

Net realized and unrealized loss on derivatives, net of tax benefit of $2.2 million

 

 

 

 

 
(12.4
)
 

 
(12.4
)
Long-term employee benefit plans, net of tax of $0.5 million

 

 

 

 

 

 

 

Foreign currency translation, net of tax of $0.0 million

 

 

 

 

 
12.8

 
0.5

 
13.3

Total comprehensive income

 

 

 
43.4

 

 
0.4

 
1.2

 
45.0

Cumulative effect of an accounting change

 

 

 
(0.7
)
 

 

 

 
(0.7
)
Recognition of stock-based compensation

 

 
6.7

 

 

 

 

 
6.7

Shares issued under compensation plans
1.1

 
1.7

 
9.7

 

 

 

 

 
11.4

Ownership changes relating to noncontrolling interests

 

 
5.7

 

 

 

 
(32.1
)
 
(26.4
)
Common stock purchases
(2.5
)
 

 

 

 
(65.8
)
 

 

 
(65.8
)
Dividends declared to noncontrolling interests

 

 

 

 

 

 
(1.1
)
 
(1.1
)
Balance at March 31, 2019
234.2

 
247.0

 
1,431.6

 
241.3

 
(378.0
)
 
(335.7
)
 
73.4

 
1,279.6

Comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income

 

 

 
98.4

 

 

 
1.5

 
99.9

Net realized and unrealized loss on derivatives, net of tax of $2.7 million

 

 

 

 

 
(17.6
)
 

 
(17.6
)
Long-term employee benefit plans, net of tax of $0.4 million

 

 

 

 

 
0.4

 

 
0.4

Foreign currency translation, net of tax of $0.0 million

 

 

 

 

 
(3.1
)
 
2.2

 
(0.9
)
Total comprehensive income (loss)

 

 

 
98.4

 

 
(20.3
)
 
3.7

 
81.8

Correction to previous cumulative effect upon adoption of ASU 2014-09

 

 

 
(3.7
)
 

 

 

 
(3.7
)
Recognition of stock-based compensation

 

 
(1.4
)
 

 

 

 

 
(1.4
)
Shares issued under compensation plans
0.7

 
1.2

 
13.3

 

 

 

 

 
14.5

Ownership changes relating to noncontrolling interests

 

 
(1.7
)
 

 

 

 
(22.5
)
 
(24.2
)
Common stock purchases
(1.6
)
 

 

 

 
(39.5
)
 

 

 
(39.5
)
Balance at June 30, 2019
233.3

 
$
248.2

 
$
1,441.8

 
$
336.0

 
$
(417.5
)
 
$
(356.0
)
 
$
54.6

 
$
1,307.1


The accompanying notes are an integral part of these condensed consolidated financial statements.


7


AXALTA COATING SYSTEMS LTD.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)

 
Six Months Ended June 30,

 
2020
 
2019
Operating activities:
 

 

Net (loss) income
 
$
(30.8
)

$
144.0

Adjustment to reconcile net income to cash (used for) provided by operating activities:
 

 

Depreciation and amortization
 
163.2

 
180.3

Amortization of deferred financing costs and original issue discount
 
4.1

 
4.4

Debt extinguishment and refinancing related costs
 
2.4

 
0.2

Deferred income taxes
 
(61.2
)
 
(1.6
)
Realized and unrealized foreign exchange losses, net
 
2.8

 
2.8

Stock-based compensation
 
11.2

 
5.3

Divestitures and impairment charges
 
3.2

 
3.9

Interest income on swaps designated as net investment hedges
 
(7.3
)
 
(7.2
)
Other non-cash, net
 
8.3

 
(0.6
)
Changes in operating assets and liabilities:
 

 

Trade accounts and notes receivable
 
136.8

 
(152.9
)
Inventories
 
32.5

 
(1.4
)
Prepaid expenses and other assets
 
(60.3
)
 
(81.6
)
Accounts payable
 
(131.0
)
 
20.7

Other accrued liabilities
 
(87.9
)
 
(54.0
)
Other liabilities
 
11.5

 
6.5

Cash (used for) provided by operating activities
 
(2.5
)
 
68.8

Investing activities:
 

 

Acquisitions, net of cash acquired
 

 
(1.9
)
Purchase of property, plant and equipment
 
(42.4
)
 
(47.2
)
Proceeds from sale of consolidated joint venture, net of cash divested
 

 
8.2

Interest proceeds on swaps designated as net investment hedges
 
7.3

 
7.2

Other investing activities, net
 
0.8

 

Cash used for investing activities
 
(34.3
)
 
(33.7
)
Financing activities:
 


 


Proceeds from long-term borrowings
 
500.0

 

Payments on short-term borrowings
 
(18.6
)
 
(20.5
)
Payments on long-term borrowings
 
(313.1
)
 
(13.7
)
Financing-related costs
 
(6.0
)
 
(2.1
)
Purchases of common stock
 
(0.9
)
 
(105.3
)
Net cash flows associated with stock-based awards
 
0.3

 
25.9

Purchase of noncontrolling interests
 
(1.6