AVID TECHNOLOGY, INC. EXECUTIVE OVERVIEW
Business Overview
We develop, market, sell, and support software and integrated solutions for video and audio content creation, management and distribution. We are a leading technology provider that powers the media and entertainment industry. We do this by providing an open and efficient platform for digital media, along with a comprehensive set of tools and workflow solutions. Our solutions are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communications departments; and by independent video and audio creative professionals, as well as aspiring professionals. Projects produced using our tools, platform, and ecosystem include feature films, television programming, live events, news broadcasts, sports productions, commercials, music, video, and other digital media content. With over one million creative users and thousands of enterprise clients relying on our technology platforms and solutions around the world, Avid enables the industry to thrive in today's connected media and entertainment world. Our mission is to empower media creators with innovative technology and collaborative tools to entertain, inform, educate, and enlighten the world. Our clients rely on Avid to create prestigious and award-winning feature films, music recordings, television shows, live concerts, sporting events, and news broadcasts. Avid has been honored for technological innovation with 16 Emmy Awards, oneGrammy Award , two Oscars, and the first ever America Cinema Editors Technical Excellence Award. In 2018, Avid was named the recipient of the prestigiousPhilo T. Farnsworth Award by theTelevision Academy to honor Avid's 30 years of continuous, transformative technology innovations, including products that have improved and accelerated the editing and post production process for television.
Operations Overview
Our strategy for connecting creative professionals and media enterprises with audiences in a powerful, efficient, collaborative, and profitable way leverages our creative software tools, including ProTools for audio and MediaComposer for video, and Avid MediaCentral Platform - the open, extensible, and customizable foundation that streamlines and simplifies content workflows by integrating all Avid or third-party products and services that run on top of it. The platform provides secure and protected access, and enables fast and easy creation, delivery, and monetization of content. We work to ensure that we are meeting customer needs, staying ahead of industry trends, and investing in the right areas through a close and interactive relationship with our customer base.The Avid Customer Association was established to be an innovative and influential media technology community. It represents thousands of organizations and over 33,000 professionals from all levels of the industry including inspirational and award-winning thought leaders, innovators, and storytellers.The Avid Customer Association fosters collaboration between Avid, its customers, and other industry colleagues to help shape our product offerings and provide a means to shape our industry together. A key element of our strategy is our transition to a recurring revenue-based model through a combination of subscription offerings and long-term agreements. We started offering subscription licensing options for some of our products and solutions in 2014 and byMarch 31, 2020 , had approximately 218,000 paid subscriptions. These licensing options offer choices in pricing and deployment to suit our customers' needs. Our subscription offerings to date have primarily been sold to creative professionals, though we expect to increase subscription sales to media enterprises going forward as we expand offerings and move through customer upgrade cycles, which we expect will further increase recurring revenue on a longer-term basis. Our long-term agreements are comprised of multi-year agreements with large media enterprise customers to provide specified products and services, including SaaS offerings, and channel partners and resellers to purchase minimum amounts of products and service over a specified period of time. Another key aspect of our strategy has been to implement programs to increase operational efficiencies and reduce costs. We are making significant changes in business operations to better support the company's strategy and overall performance. We have implemented a number of spending control initiatives biased towards non-personnel costs to reduce the overall cost structure while still investing in key areas that will drive growth. We have also revamped our supply chain and logistics, and in 2019 completed our move to a lean model that leverages a new supplier and distribution network. We are optimizing our go-to-market 18 -------------------------------------------------------------------------------- strategy, simplifying our strategy to address specific customer markets to help maximize our commercial success, which we expect will improve effectiveness, while increasing efficiency and driving growth of our pipeline and ultimately revenue.
A summary of our revenue sources for the three months ended
Three Months Ended March 31,
2020 2019
Software licenses $ 19,331 $ 17,412
Maintenance 31,794 32,019
Software licenses and maintenance 51,125 49,431
% of total revenue 59 % 48 %
Integrated solutions 29,338 46,265
Professional services & training 5,990 7,623
Total revenue $ 86,453 $ 103,319 Impact of COVID-19 on Our Business
We have operations in a number of countries, which exposes us to risks associated with public health crises such as the novel coronavirus (COVID-19) that was declared a pandemic by theWorld Health Organization . COVID-19 adversely impacted our business operations and results of operations for the first quarter of 2020, as described in more detail under the Results of Operations below. We expect the evolving COVID-19 pandemic to continue to have an adverse impact on our business and results of operations, as the ongoing pandemic is likely to continue to depress economic activity and reduce the demand for our products and services, as well as disrupt supply chains. Although the duration and severity of the COVID-19 pandemic, and resulting economic impacts, are highly uncertain, we expect that our business operations and results of operations, including our net revenues, earnings and cash flows, will be adversely impacted for at least the balance of 2020. These economic impacts are the result of, but not limited to,:
• the postponement or cancellation of film and television productions,
major sporting events, and music festivals;
• delays in purchasing and projects by our enterprise customers and
channel partners;
• disruption to the supply chain caused by distribution and other
logistical issues, including disruptions arising from government
restrictions; and
• decreased productivity due to travel ban, work-from-home policies or
shelter-in-place orders.
We are focused on navigating these recent challenges presented by COVID-19 through preserving our liquidity and managing our cash flow through taking preemptive action to enhance our ability to meet our short-term liquidity needs. Such actions include, but are not limited to, reducing our discretionary spending, revisiting our investment strategies, and reducing payroll costs, including through temporary employee furloughs and pay cuts. We may be required to take additional steps to preserve our liquidity depending on the duration and severity of the pandemic and its impact on our operations and cash flows.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our condensed consolidated financial statements have been prepared in accordance
with GAAP. The preparation of these financial statements requires us to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosures of contingent assets and liabilities as of the
date of the financial statements, and the reported amounts of revenues and
expenses during the reporting period. We base our estimates and judgments on
historical experience and various other factors we believe to be reasonable
under the circumstances, the results of which form the basis for judgments about
the carrying values of assets and liabilities and the amounts of revenues and
expenses. Actual results may differ from these estimates.
We believe that our critical accounting policies and estimates are those related
to revenue recognition and allowances for sales returns and exchanges, discount
rates used for lease liabilities, stock-based compensation, income tax assets
and liabilities, and restructuring charges and accruals. We believe these
policies and estimates are critical because they most significantly affect the
portrayal of our financial condition and results of operations and involve our
most complex and subjective estimates and judgments. A discussion of our
critical accounting policies and estimates may be found in our Annual Report on
Form 10-K for
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the year ended
Revenue Recognition
We enter into contracts with customers that include various combinations of products and services, which are typically capable of being distinct and are accounted for as separate performance obligations. We account for a contract when (i) it has approval and commitment from both parties, (ii) the rights of the parties have been identified, (iii) payment terms have been identified, (iv) the contract has commercial substance, and (v) collectibility is probable. We recognize revenue upon transfer of control of promised products or services to customers, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts, in an amount that reflects the consideration we expect to receive in exchange for those products or services. We often enter into contractual arrangements that have multiple performance obligations, one or more of which may be delivered subsequent to the delivery of other performance obligations. These arrangements may include a combination of products, support, training, and professional services. We allocate the transaction price of the arrangement based on the relative estimated standalone selling price of each distinct performance obligation.
See Note 9 for disaggregated revenue schedules and further discussion on revenue and deferred revenue performance obligations and the timing of revenue recognition.
Leases
We have operating leases for facilities and certain equipment inNorth America ,Europe , andAsia . Our operating lease right-of-use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases generally do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. An average incremental borrowing rate of 6% as ofJanuary 1, 2019 , the adoption date of ASC 842, was used for our leases that commenced prior to that date. We determined that the rate of 6% is appropriate for our operating leases after we considered an estimated incremental borrowing rate provided by our bank, the interest rate of our Term Loan, and the terms and geographic locations of our facilities. See Note 5 for further discussion on our leases.
RESULTS OF OPERATIONS
The following table sets forth certain items from our condensed consolidated statements of operations as a percentage of net revenues for the three months endedMarch 31, 2020 and 2019: 20 --------------------------------------------------------------------------------
Three Months Ended March 31,
2020 2019
Net revenues:
Product 40.2 % 52.6 %
Services 59.8 % 47.4 %
Total net revenues 100.0 % 100.0 %
Cost of revenues 38.5 % 40.7 %
Gross margin 61.5 % 59.3 %
Operating expenses:
Research and development 17.8 % 15.8 %
Marketing and selling 29.3 % 24.1 %
General and administrative 14.7 % 13.3 %
Amortization of intangible assets - % 0.4 %
Restructuring costs, net 0.2 % 0.5 %
Total operating expenses 62.0 % 54.1 %
Operating (loss) income (0.5 )% 5.2 %
Interest and other expense, net (6.1 )% (5.0 )%
(Loss) income before income taxes (6.6 )% 0.2 %
Provision for income taxes 0.1 % 0.4 %
Net loss (6.7 )% (0.2 )%
Net Revenues
Our net revenues are derived mainly from sales of products and solutions for
digital media content production, management and distribution, and related
professional services and maintenance contracts. We also sell individual
licenses for our software products through our webstore. We commonly sell large,
complex solutions to our customers that, due to their strategic nature, have
long lead times where the timing of order execution and fulfillment can be
difficult to predict. In addition, the rapid evolution of the media industry is
changing our customers' needs, businesses, and revenue models, which is
influencing their short-term and long-term purchasing decisions. As a result of
these factors, the timing and amount of product revenue recognized each quarter
related to these large orders, as well as the services associated with them, can
fluctuate from quarter to quarter and cause significant volatility in our
quarterly operating results. For a discussion of these factors, see the risk
factors discussed in Part I - Item 1A under the heading "Risk Factors" in our
Annual Report on Form 10-K for the year ended December 31, 2019 .
Net Revenues for the Three Months Ended March 31, 2020 and 2019
(dollars in thousands)
2020 Change 2019
Net Revenues $ % Net Revenues
Products and solutions 34,711 (19,685 ) (36.2)% 54,396
Services 51,742 2,819 5.8% 48,923
Total net revenues $ 86,453 $ (16,866 ) (16.3)% $ 103,319
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The following table sets forth the percentage of our net revenues attributable
to geographic regions for the three months ended
Three Months Ended March 31,
2020 2019
United States 42% 38%
Other Americas 6% 7%
Europe, Middle East and Africa 38% 36%
Asia-Pacific 14% 19%
Products and Solutions Revenues
Our products and solutions revenues are derived primarily from sales of our storage and workflow solutions, media management solutions, video creative tools, digital audio software and workstation solutions, and our control surfaces, consoles, and live-sound systems. Products and solutions revenues decreased$19.7 million , or 36.2%, for the three months endedMarch 31, 2020 , compared to the same period in 2019. The decrease for the three months endedMarch 31, 2020 was primarily due to lower sales as a result of COVID-19.
Services Revenues
Services revenues are derived primarily from maintenance contracts, as well as professional services and training. Services revenues increased$2.8 million , or 5.8%, for the three months endedMarch 31, 2020 , compared to the same period in 2019. The increase for the three months endedMarch 31, 2020 was primarily due to strong growth in our subscription services, partially offset by lower professional services revenue as delivery was limited due to COVID-19.
Cost of Revenues, Gross Profit and Gross Margin Percentage
Cost of revenues consists primarily of costs associated with:
• procurement of components and finished goods;
• assembly, testing and distribution of finished products;
• warehousing;
• customer support related to maintenance;
• royalties for third-party software and hardware included in our products;
• amortization of technology; and
• providing professional services and training.
Amortization of technology represents the amortization of developed technology assets acquired as part of acquisitions.
Costs of Revenues and Gross Profit for the Three Months Ended March 31, 2020 and 2019
(dollars in thousands)
2020 Change 2019
Costs $ % Costs
Products $ 20,962 $ (6,638 ) (24.1)% $ 27,600
Services 12,340 (147 ) (1.2)% 12,487
Amortization of intangible assets - (1,950 ) (100.0)% 1,950
Total cost of revenues $ 33,302 $ (8,735 ) (20.8)% $ 42,037
Gross profit $ 53,151 $ (8,131 ) (13.3)% $ 61,282
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Gross Margin Percentage
Gross margin percentage, which is net revenues less costs of revenues divided by net revenues, fluctuates based on factors such as the mix of products sold, the cost and proportion of third-party hardware and software included in the systems sold, the offering of product upgrades, price discounts and other sales-promotion programs, the distribution channels through which products are sold, the timing of new product introductions, sales of aftermarket hardware products, and currency exchange-rate fluctuations. For a discussion of these factors, see the risk factors discussed in Part I - Item 1A under the heading "Risk Factors" in our Annual Report on Form 10-K for the year endedDecember 31, 2019 . Our gross margin percentage for the three months endedMarch 31, 2020 increased to 61.5% from 59.3% for the same period in 2019. This increase was primarily due to subscription margin improvement, offset by lower gross margin percentage in all other areas of the business due to lower volumes.
Gross Margin % for the Three Months Ended
2020 Gross 2019 Gross
Margin % Change Margin %
Products 39.6% (9.7)% 49.3%
Services 76.2% 1.7% 74.5%
Total 61.5% 2.2% 59.3%
Operating Expenses and Operating Income (Loss)
Operating Expenses and Operating Income (Loss) for the Three Months Ended
(dollars in thousands)
2020 Change 2019
Expenses $ % Expenses
Research and development $ 15,425 $ (860 ) (5.3)% $ 16,285
Marketing and selling 25,289 411 1.7% 24,878
General and administrative 12,744 (1,044 ) (7.6)% 13,788
Amortization of intangible assets - (363 ) (100.0)% 363
Restructuring costs, net 145 (413 ) (74.0)% 558
Total operating expenses $ 53,603 $ (2,269 ) (4.1)% $ 55,872
Operating (loss) income $ (452 ) $ (5,862 ) (108.4)% $ 5,410 Research and Development Expenses
Research and development ("R&D") expenses include costs associated with the
development of new products and the enhancement of existing products, and
consist primarily of employee compensation and benefits, facilities costs,
depreciation, costs for consulting and temporary employees, and prototype and
other development expenses. R&D expenses decreased $0.9 million , or 5.3%, for
the three months ended March 31, 2020 , compared to the same period in 2019. The
table below provides further details regarding the changes in components of R&D
expenses.
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Change in R&D Expenses for the Three Months Ended March 31, 2020 and 2019
(dollars in thousands)
2020 Increase (Decrease)
From 2019
$ %
Personnel-related $ (813 ) (7.8 )%
Facilities and information technology (264 ) (8.6 )%
Consulting and outside services 78 14.0 %
Other 139 26.2 %
Total R&D expenses decrease $ (860 ) (5.3 )%
The decrease in personnel-related expenses for the three months ended March 31,
2020 , compared to the same period in 2019, was primarily due to a decrease in
incentive-based compensation accrual and reduced travel and expenses as a result
of COVID-19. The decrease in facilities and information technology expenses for
the three months ended March 31, 2020 , compared to the same period in 2019, was
primarily due to our programs to increase operational efficiencies and reduce
costs. The increase in consulting and outside services for 2020 compared
to 2019 was primarily the result of increased webstore fees due to higher
transactions on our webstore.
Marketing and Selling Expenses
Marketing and selling expenses consist primarily of employee compensation and benefits for selling, marketing and pre-sales customer support personnel, commissions, travel expenses, advertising and promotional expenses, web design costs, and facilities costs. Marketing and selling expenses increased$0.4 million , or 1.7%, for the three months endedMarch 31, 2020 , compared to the same period in 2019. The table below provides further details regarding the changes in components of marketing and selling expenses. Change in Marketing and Selling Expenses for the Three Months EndedMarch 31, 2020 and 2019 (dollars in thousands) 2020 Increase (Decrease) From 2019 $ % Personnel-related$ (464 ) (1.9 )% Advertising and promotions (278 ) (23.8 )% Foreign exchange (gains) and losses 457 3,126.4 % Other 696 3.0 % Total marketing and selling expenses increase $ 411 1.7 % The decrease in personnel-related expenses and advertising and promotions expenses for the three months endedMarch 31, 2020 , compared to the same period in 2019, were primarily the result of our programs to increase operational efficiencies and reduce costs and reduced travel and expenses as a result of COVID-19. The increase in foreign exchange translations for the three months endedMarch 31, 2020 , compared to the same periods in 2019, was due to more foreign exchange losses resulted from foreign currency denominated transactions and the revaluation of foreign currency denominated assets and liabilities. The change was primarily due to the euro-dollar exchange rate volatility. The decrease in advertising and promotions expenses for 2020 compared to 2019 was primarily the result of our programs to increase operational efficiencies and reduce costs.
General and Administrative Expenses
General and administrative ("G&A") expenses consist primarily of employee
compensation and benefits for administrative, executive, finance and legal
personnel, audit, legal and strategic consulting fees, and insurance,
information systems and facilities costs. Information systems and facilities
costs reported within general and administrative expenses are net of allocations
to other expenses categories. G&A expenses decreased $1.0 million , or 7.6%, for
the three months ended March 31, 2020 ,
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Change in G&A Expenses for the Three Months Ended March 31, 2020 and 2019
(dollars in thousands)
2020 Decrease
From 2019
$ %
Personnel-related $ (495 ) (8.0 )%
Consulting and outside services (206 ) (4.8 )%
Other (343 ) (10.6 )%
Total G&A expenses decrease $ (1,044 ) (7.6 )%
The decrease in personnel-related expenses for the three months ended March 31,
2020 , compared to the same period in 2019, was primarily the result of our
spending control initiatives, a decrease in incentive-based compensation
accrual, and reduced travel and expenses as a result of COVID-19. The decrease
in consulting and outside services for the three months ended March 31, 2020 ,
compared to the same period in 2019, was primarily due to lower audit and legal
fees.
Provision for Income Taxes
Provision for Income Taxes for the Three Months Ended March 31, 2020 and 2019
(dollars in thousands)
2020 Change 2019
$ %
Provision for income taxes $ 122 $ (316 ) (72.1)% $ 438
The decrease in our income tax provision for the three months ended March 31,
2020 compared to the same period in 2019 was primarily driven by an overall
reduction in pre-tax income and a related $0.3 million deferred tax benefit
recognized in our Irish branch. The Irish benefit was partially offset by a
deferred tax provision in our German subsidiary and other changes in the
jurisdictional mix of earnings. No benefit was provided for the tax loss
generated in the United States due to a full valuation on the deferred tax
asset. In addition, the estimated annual effective tax rate excluded the United
States due to its pre-tax loss position.
The Coronavirus Aid, Relief and Economic Security ("CARES") Act was enacted in
the United States on March 27, 2020 . The CARES Act includes several income tax
provisions such as net operating loss ("NOL") carryback and carryforward
benefits and other tax deduction benefits. As noted previously, the U.S.
deferred tax asset has a full valuation; accordingly these NOL and other benefit
provisions had no impact on our financial statements for the period ended March
31, 2020 . The CARES Act accelerates the alternative minimum tax ("AMT") credit
refund originally enacted by the Tax Cut and Jobs Act in 2017. Accordingly, we
have reclassified our $0.4 million receivable related to the AMT credit refund
from long-term assets to current assets at March 31, 2020 .
LIQUIDITY AND CAPITAL RESOURCES
Liquidity and Sources of Cash
Our principal sources of liquidity include cash and cash equivalents totaling$81.2 million as ofMarch 31, 2020 . We have generally funded operations in recent years through the use of existing cash balances, supplemented from time to time with the proceeds of long-term debt and borrowings under our credit facilities. OnApril 8, 2019 , we entered into an amendment to the Financing Agreement. The amendment provided for an additional delayed draw term loan commitment in the aggregate principal amount of$100.0 million (the "Delayed Draw Funds") for the 25 -------------------------------------------------------------------------------- purpose of funding the purchase of a portion of Notes in the Offer described in Note 10 to our financial statements in Item 1 above. OnMay 2, 2019 , we received the Delayed Draw Funds under the Financing Agreement. We used$72.7 million of the Delayed Draw Funds for the purchase of a portion of our Notes,$0.6 million for the Notes interest payment, and$6.0 million for the payment of refinancing fees. OnJune 18, 2019 , we repaid$20.7 million of the Delayed Draw Funds. The$79.3 million Delayed Draw Funds borrowed and that remain outstanding will mature onMay 10, 2023 under the terms of the Financing Agreement. The amendment also modified the covenant that requires us to maintain a leverage ratio (defined to mean the ratio of (a) the sum of indebtedness under the Term Loan and Credit Facility and non-cash collateralized letters of credit to (b) consolidated EBITDA under the Term Loan and Credit Facility) based on the level of availability of our Credit Facility plus unrestricted cash on-hand (the "Leverage Ratio Covenant"). As ofMarch 31, 2020 , we were in compliance with all covenants under the Financing Agreement.
After completing the Offer, we have
Our ability to satisfy the Leverage Ratio Covenant in the future is dependent on our ability to maintain profitability at or above levels experienced over the last 12 months. In recent quarters, we have experienced volatility in revenues resulting from, among other things, (i) our transition towards subscription and recurring revenue streams and the resulting decline in traditional upfront product sales, (ii) dramatic changes in the media industry and the impact it has on our customers, (iii) the impact of new and anticipated product launches and features, (iv) volatility in currency rates, and (v) in the most recent quarter, the economic impacts of the COVID-19 pandemic. If revenues were to decrease from the levels of the last twelve months, we would need to reduce expenses to maintain the required level of profitability. In light of the COVID-19 pandemic, we are closely monitoring our covenant compliance going forward. As discussed above, while the duration and severity of the COVID-19 pandemic, and resulting economic impacts, are highly uncertain, we expect that our business operations and results of operations, including our net revenues, earnings and cash flows, will be adversely impacted by these developments for at least the balance of 2020. To address expected reductions in net revenues and cash flows, we have already taken steps to reduce our discretionary spending and reduce payroll costs, including through temporary employee furloughs and pay cuts. We may be required to take additional remedial steps, depending on the duration and severity of the pandemic and its impact on our operations and cash flows, which could include, among other things (and where allowed by the lenders), (i) further cost reductions, (ii) seeking replacement financing, (iii) raising funds through the issuance of additional equity or debt securities or the incurrence of additional borrowings, (iv) disposing of certain assets or businesses, or (v) applying for various programs that have been implemented by theU.S. government in response to the COVID-19 pandemic. Such remedial actions, which may not be available on favorable terms or at all, could have a material adverse impact on our business. If we are not in compliance with the Leverage Ratio Covenant and are unable to obtain an amendment or waiver, such noncompliance may result in an event of default under the Financing Agreement, which could permit acceleration of the outstanding indebtedness under the Financing Agreement and require us to repay such indebtedness before the scheduled due date. If an event of default were to occur, we might not have sufficient funds available to make the payments required. If we are unable to repay amounts owed, the lenders may be entitled to foreclose on and sell substantially all of our assets, which secure our borrowings under the Financing Agreement. Our cash requirements vary depending on factors such as the growth of the business, changes in working capital, capital expenditures, and obligations under our cost efficiency program. We must repay the remaining amount due under the Notes of$28.9 million onJune 15, 2020 , the maturity date. We expect to fund such amount and meet our other obligations in connection with the operation of our business and the execution of our strategic initiatives principally with funds generated from operations, remaining net proceeds from the term loan borrowings under the Financing Agreement, and draws of up to a maximum of$22.5 million under the Financing Agreement's revolving credit facility, which, as stated above, we have drawn down$22.0 million as ofMarch 31, 2020 . We anticipate that we will have sufficient internal and external sources of liquidity to fund operations and anticipated working capital and other expected cash needs for at least the next 12 months as well as for the foreseeable future. We also believe that our financial resources will allow us to manage the anticipated impact of COVID-19 on our business operations for the foreseeable future, which could include reductions in revenue and delays in payments from customers and partners. The challenges posed by COVID-19 on our business are expected to evolve rapidly. Consequently, we will continue to evaluate our financial position in light of future developments, particularly those relating to COVID-19. 26
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Cash Flows
The following table summarizes our cash flows for the periods presented (in
thousands):
Three Months Ended March 31,
2020 2019
Net cash (used in) provided by operating activities
$ 6,376 Net cash used in investing activities (1,479 ) (1,767 ) Net cash provided by (used in) financing activities 19,831
(5,331 ) Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash
(402 ) (55 )
Net increase (decrease) in cash, cash equivalents and
restricted cash $ 12,345 $ (777 ) Cash Flows from Operating Activities
Cash used in operating activities aggregated$5.6 million for the three months endedMarch 31, 2020 . The decrease in cash provided by operations compared to the three months endedMarch 31, 2019 was primarily due to decreased revenues and a change in working capital.
Cash Flows from Investing Activities
For the three months ended
Cash Flows from Financing Activities
For the three months ended
RECENT ACCOUNTING PRONOUNCEMENTS
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements To Be Adopted
Our recently adopted and to be adopted accounting pronouncements are set forth in Note 1 "Financial Information" of our Notes to Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q.
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