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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 8/10/20 Marcus & Millichap, Inc. 10-Q 6/30/20 96:11M Donnelley … Solutions/FA |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 1.47M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 34K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 34K 4: EX-32.1 Certification -- §906 - SOA'02 HTML 31K 11: R1 Cover Page HTML 82K 12: R2 Condensed Consolidated Balance Sheets HTML 129K 13: R3 Condensed Consolidated Balance Sheets HTML 55K (Parenthetical) 14: R4 Condensed Consolidated Statements of Net and HTML 122K Comprehensive Income 15: R5 Condensed Consolidated Statements of Net and HTML 36K Comprehensive Income (Parenthetical) 16: R6 Condensed Consolidated Statements of Stockholders' HTML 125K Equity 17: R7 Condensed Consolidated Statements of Cash Flows HTML 127K 18: R8 Description of Business and Basis of Presentation HTML 43K 19: R9 Accounting Policies and Recent Accounting HTML 58K Pronouncements 20: R10 Property and Equipment, Net HTML 42K 21: R11 Operating Leases HTML 80K 22: R12 Investments in Marketable Debt Securities HTML 189K 23: R13 Acquisitions, Goodwill and Other Intangible Assets HTML 78K 24: R14 Selected Balance Sheet Data HTML 141K 25: R15 Notes Payable to Former Stockholders HTML 32K 26: R16 Related-Party Transactions HTML 39K 27: R17 Fair Value Measurements HTML 215K 28: R18 Stockholders' Equity HTML 37K 29: R19 Stock-Based Compensation Plans HTML 96K 30: R20 Income Taxes HTML 104K 31: R21 Earnings per Share HTML 84K 32: R22 Commitments and Contingencies HTML 39K 33: R23 Description of Business and Basis of Presentation HTML 93K (Policies) 34: R24 Property and Equipment, Net (Tables) HTML 40K 35: R25 Operating Leases (Tables) HTML 84K 36: R26 Investments in Marketable Securities (Tables) HTML 191K 37: R27 Acquisitions, Goodwill and Other Intangible Assets HTML 75K (Tables) 38: R28 Selected Balance Sheet Data (Tables) HTML 140K 39: R29 Fair Value Measurements (Tables) HTML 204K 40: R30 Stock-Based Compensation Plans (Tables) HTML 56K 41: R31 Income Taxes (Tables) HTML 100K 42: R32 Earnings per Share (Tables) HTML 83K 43: R33 Description of Business and Basis of Presentation HTML 37K - Additional Information (Detail) 44: R34 Accounting Policies and Recent Accounting HTML 77K Pronouncements - Additional Information (Detail) 45: R35 Property and Equipment, Net - Schedule of Property HTML 42K and Equipment, Net (Detail) 46: R36 Property and Equipment, Net - Additional HTML 36K Information (Detail) 47: R37 Operating Leases - Additional Information (Detail) HTML 32K 48: R38 Operating Leases - Schedule of Operating Lease HTML 39K Cost, Included in Selling, General and Administrative Expense (Detail) 49: R39 Operating Leases - Maturities of lease liabilities HTML 48K (Detail) 50: R40 Operating Leases - Schedule of Supplemental Cash HTML 38K Flow Information and Noncash Activity Related to Operating Leases (Detail) 51: R41 Operating Leases - Schedule of Other Information HTML 34K Related to Operating Leases (Detail) 52: R42 Investments in Marketable Securities - Schedule of HTML 71K Amortized Cost and Fair Value of Marketable Securities, Available-for-Sale, by Type of Security (Detail) 53: R43 Investments in Marketable Securities - Amortized HTML 61K Cost and Fair Value of Investments in Available for Sale Securities (Detail) 54: R44 Investments in Marketable Securities - Additional HTML 50K Information (Detail) 55: R45 Investments in Marketable Securities - Gross HTML 33K Realized Gains and Losses from Sale of Available for Sale Securities (Detail) 56: R46 Investments in Marketable Securities - Schedule of HTML 59K Amortized Cost and Fair Value of Marketable Securities, Available-for-Sale, by Contractual Maturity (Detail) 57: R47 Acquisitions, Goodwill and Other Intangible Assets HTML 47K - Additional Information (Detail) 58: R48 Acquisitions, Goodwill and Other Intangible Assets HTML 48K - Summary of Goodwill and Intangible Assets (Detail) 59: R49 Acquisitions, Goodwill and Other Intangible Assets HTML 31K - Summary of Goodwill and Intangible Assets (Parenthetical) (Detail) 60: R50 Acquisitions, Goodwill and Other Intangible Assets HTML 37K - Summary of Net Change in Carrying Value of Goodwill (Detail) 61: R51 Acquisitions, Goodwill and Other Intangible Assets HTML 45K - Schedule of Estimated Amortization Expense for Intangible Assets (Detail) 62: R52 Selected Balance Sheet Data - Schedule of Advances HTML 47K and Loans, Net (Detail) 63: R53 Selected Balance Sheet Data - Schedule of Other HTML 43K Assets (Detail) 64: R54 Selected Balance Sheet Data - Schedule of Other HTML 31K Assets (Parenthetical) (Detail) 65: R55 Selected Balance Sheet Data - Summary of Net HTML 37K Change in Carrying Value of MSRs (Detail) 66: R56 Selected Balance Sheet Data - Additional HTML 74K Information (Detail) 67: R57 Selected Balance Sheet Data - Components of HTML 51K Deferred Compensation and Commissions (Detail) 68: R58 Selected Balance Sheet Data - Summary of Net HTML 34K Change in Carrying Value of Assets Held in Rabbi Trust and Deferred Compensation Liability (Detail) 69: R59 Selected Balance Sheet Data - Schedule of Other HTML 37K Liabilities (Detail) 70: R60 Selected Balance Sheet Data - Schedule of Other HTML 41K Liabilities (Parenthetical) (Detail) 71: R61 Notes Payable to Former Stockholders - Additional HTML 36K Information (Detail) 72: R62 Related-Party Transactions - Additional HTML 54K Information (Detail) 73: R63 Fair Value Measurements - Schedule of Assets and HTML 158K Liabilities at Fair Value on Recurring Basis (Detail) 74: R64 Fair Value Measurements - Schedule of HTML 41K Reconciliation of Contingent Consideration Measured at Fair Value on Recurring Basis (Detail) 75: R65 Fair Value Measurements - Schedule of HTML 31K Reconciliation of Contingent Consideration Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) 76: R66 Fair Value Measurements - Schedule of Fair Value HTML 61K Liabilities Measured On Recurring Basis Valuation Techniques (Detail) 77: R67 Fair Value Measurements - Schedule of Fair Value HTML 59K Liabilities Measured On Non-Recurring Basis Valuation Techniques (Detail) 78: R68 Fair Value Measurements - Schedule of Fair Value HTML 33K Liabilities Measured On Non-Recurring Basis Valuation Techniques (Parenthetical) (Detail) 79: R69 Fair Value Measurements - Additional Information HTML 41K (Detail) 80: R70 Stockholders' Equity - Additional Information HTML 47K (Detail) 81: R71 Stock-Based Compensation Plans - 2013 Omnibus HTML 36K Equity Incentive Plan - Award Limitations - Additional Information (Detail) 82: R72 Stock-Based Compensation Plans - 2013 Omnibus HTML 60K Equity Incentive Plan - Additional Information (Detail) 83: R73 Stock-Based Compensation Plans - Outstanding HTML 76K Awards Under 2013 Omnibus Equity Incentive Plan (Detail) 84: R74 Stock-Based Compensation Plans - Outstanding HTML 32K Awards Under 2013 Omnibus Equity Incentive Plan (Parenthetical) (Detail) 85: R75 Stock-Based Compensation Plans - Employee Stock HTML 52K Purchase Plan - Additional Information (Detail) 86: R76 Stock-Based Compensation Plans - Amendments to HTML 38K Restricted Stock and SARs - Additional Information (Detail) 87: R77 Stock-Based Compensation Plans - Schedule of HTML 37K Future Share Settlements (Detail) 88: R78 Stock-Based Compensation Plans - Stock-Based HTML 44K Compensation Expense (Detail) 89: R79 Earnings per Share - Computation of Basic and HTML 71K Diluted Earnings Per Share, Including Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) 90: R80 Earnings per Share - Computation of Basic and HTML 34K Diluted Earnings Per Share, Including Antidilutive Securities Excluded from Computation of Earnings Per Share (Parenthetical) (Detail) 91: R81 Commitments and Contingencies - Additional HTML 80K Information Credit Agreement (Detail) 92: R82 Commitments and Contingencies - Additional HTML 31K Information Other (Detail) 94: XML IDEA XML File -- Filing Summary XML 185K 10: XML XBRL Instance -- d101585d10q_htm XML 3.26M 93: EXCEL IDEA Workbook of Financial Reports XLSX 115K 6: EX-101.CAL XBRL Calculations -- mmi-20200630_cal XML 189K 7: EX-101.DEF XBRL Definitions -- mmi-20200630_def XML 762K 8: EX-101.LAB XBRL Labels -- mmi-20200630_lab XML 1.45M 9: EX-101.PRE XBRL Presentations -- mmi-20200630_pre XML 1.14M 5: EX-101.SCH XBRL Schema -- mmi-20200630 XSD 239K 95: JSON XBRL Instance as JSON Data -- MetaLinks 446± 693K 96: ZIP XBRL Zipped Folder -- 0001193125-20-214274-xbrl Zip 237K
10-Q |
i ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i Delaware |
i 35-2478370 | |
(State or Other Jurisdiction of |
(I.R.S. Employer | |
Incorporation or Organization) |
Identification No.) | |
i 23975 Park Sorrento, Suite 400 i Calabasas, i California |
i 91302 | |
(Address of Principal Executive Offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
i Common Stock, par value $0.0001 per share |
i MMI |
i New York Stock Exchange |
i Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☐ | Smaller reporting company | i ☐ | |||
Emerging growth company | i ☐ |
Page | ||||
3 | ||||
4 | ||||
5 | ||||
7 | ||||
8 | ||||
29 | ||||
43 | ||||
44 | ||||
45 | ||||
45 | ||||
46 | ||||
46 | ||||
46 | ||||
46 | ||||
46 | ||||
June 30, 2020 (Unaudited) |
December 31, 2019 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | i 154,880 | $ | i 232,670 | ||||
Commissions receivable, net |
i 4,956 | i 5,003 | ||||||
Prepaid expenses |
i 8,391 | i 10,676 | ||||||
Income tax receivable |
i 4,224 | i 4,999 | ||||||
Marketable debt securities, available-for-sale |
i 169,768 | i 150,752 | ||||||
Advances and loans, net |
i 1,830 | i 2,882 | ||||||
Other assets |
i 3,619 | i 3,185 | ||||||
|
|
|
|
|||||
Total current assets |
i 347,668 | i 410,167 | ||||||
Property and equipment, net |
i 23,429 | i 22,643 | ||||||
Operating lease right-of-use |
i 86,035 | i 90,535 | ||||||
Marketable debt securities, available-for-sale |
i 42,781 | i 60,809 | ||||||
Assets held in rabbi trust |
i 9,081 | i 9,452 | ||||||
Deferred tax assets, net |
i 17,710 | i 22,122 | ||||||
Goodwill and other intangible assets, net |
i 37,829 | i 22,312 | ||||||
Advances and loans, net |
i 101,781 | i 66,647 | ||||||
Other assets |
i 4,501 | i 4,347 | ||||||
|
|
|
|
|||||
Total assets |
$ | i 670,815 | $ | i 709,034 | ||||
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|
|
|||||
Liabilities and stockholders’ equity |
||||||||
Current liabilities: |
||||||||
Accounts payable and other liabilities |
$ | i 10,914 | $ | i 10,790 | ||||
Notes payable to former stockholders |
i — | i 6,564 | ||||||
Deferred compensation and commissions |
i 25,549 | i 44,301 | ||||||
Operating lease liabilities |
i 17,880 | i 17,762 | ||||||
Accrued bonuses and other employee related expenses |
i 4,211 | i 22,388 | ||||||
|
|
|
|
|||||
Total current liabilities |
i 58,554 | i 101,805 | ||||||
Deferred compensation and commissions |
i 31,388 | i 45,628 | ||||||
Operating lease liabilities |
i 60,262 | i 63,155 | ||||||
Other liabilities |
i 7,698 | i 3,539 | ||||||
|
|
|
|
|||||
Total liabilities |
i 157,902 | i 214,127 | ||||||
|
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|
|
|||||
Commitments and contingencies |
i — | i — | ||||||
Stockholders’ equity: |
||||||||
Preferred stock, $ i i 0.0001 /
par value: |
||||||||
Authorized shares – i i 25,000,000 / ;
issued and outstanding shares – i i i i no / / / ne
at June 30, 2020 and December 31, 2019, respectively |
i — | i — | ||||||
Common stock, $ i i 0.0001 /
par value: |
||||||||
Authorized shares – i i 150,000,000 / ;
issued and outstanding shares – i i 39,328,017 / and i i 39,153,195 /
at June 30, 2020 and December 31, 2019, respectively |
i 4 | i 4 | ||||||
Additional paid-in capital |
i 108,308 | i 104,658 | ||||||
Stock notes receivable from employees |
i — | ( i 4 | ) | |||||
Retained earnings |
i 401,414 | i 388,271 | ||||||
Accumulated other comprehensive income |
i 3,187 | i 1,978 | ||||||
|
|
|
|
|||||
Total stockholders’ equity |
i 512,913 | i 494,907 | ||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ | i 670,815 | $ | i 709,034 | ||||
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|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues: |
||||||||||||||||
Real estate brokerage commissions |
$ |
i 103,371 | $ |
i 188,680 | $ |
i 275,200 | $ |
i 333,617 | ||||||||
Financing fees |
i 12,703 | i 17,742 | i 28,054 | i 31,474 | ||||||||||||
Other revenues |
i 1,326 | i 3,171 | i 4,863 | i 5,209 | ||||||||||||
|
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|
|
|
|
|
|
|||||||||
Total revenues |
i 117,400 | i 209,593 | i 308,117 | i 370,300 | ||||||||||||
|
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|
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|
|||||||||
Operating expenses: |
||||||||||||||||
Cost of services |
i 73,743 | i 127,847 | i 187,500 | i 219,535 | ||||||||||||
Selling, general and administrative |
i 43,519 | i 52,836 | i 98,379 | i 101,754 | ||||||||||||
Depreciation and amortization |
i 2,752 | i 1,932 | i 5,216 | i 3,764 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
i 120,014 | i 182,615 | i 291,095 | i 325,053 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating (loss) income |
( i 2,614 | ) | i 26,978 | i 17,022 | i 45,247 | |||||||||||
Other income (expense), net |
i 2,975 | i 3,119 | i 2,609 | i 6,494 | ||||||||||||
Interest expense |
( i 213 | ) | ( i 340 | ) | ( i 496 | ) | ( i 689 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before provision for income taxes |
i 148 | i 29,757 | i 19,135 | i 51,052 | ||||||||||||
Provision for income taxes |
i 42 | i 8,478 | i 5,959 | i 14,135 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
i 106 | i 21,279 | i 13,176 | i 36,917 | ||||||||||||
|
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|
|
|
|
|
|
|||||||||
Other comprehensive income (loss): |
||||||||||||||||
Marketable debt securities, available-for-sale: |
||||||||||||||||
Change in unrealized gains |
i 1,214 | i 856 | i 717 | i 1,714 | ||||||||||||
Less: reclassification adjustment for net losses (gains) included in other income (expense), net |
i 13 | ( i 9 | ) | i 24 | ( i 18 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change, net of tax of $ i 421, $ i 283,
$ i 253 and $ i 571 for the three and six months ended June 30,
2020 and 2019, respectively |
i 1,227 | i 847 | i 741 | i 1,696 | ||||||||||||
Foreign currency translation (loss) gain, net of tax of $ i i i i 0 / / /
for each of the three and six months ended June 30, 2020 and 2019 |
( i 423 | ) | ( i 216 | ) | i 468 | ( i 314 | ) | |||||||||
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|
|
|||||||||
Total other comprehensive income |
i 804 | i 631 | i 1,209 | i 1,382 | ||||||||||||
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|
|
|
|||||||||
Comprehensive income |
$ | i 910 | $ | i 21,910 | $ | i 14,385 | $ | i 38,299 | ||||||||
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|
|||||||||
Earnings per share: |
||||||||||||||||
Basic |
$ | i — | $ | i 0.54 | $ | i 0.33 | $ | i 0.94 | ||||||||
Diluted |
$ | i — | $ | i 0.54 | $ | i 0.33 | $ | i 0.93 | ||||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
i 39,629 | i 39,395 | i 39,585 | i 39,353 | ||||||||||||
Diluted |
i 39,673 | i 39,527 | i 39,662 | i 39,524 |
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital |
Stock Notes Receivable From Employees |
Retained Earnings |
Accumulated Other Comprehensive Income |
Total | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at March 31, 2020 |
i — | $ | i — | i 39,272,429 | $ | i 4 | $ | i 105,601 | $ | ( i 4 | ) | $ |
i 401,308 | $ | i 2,383 | $ |
i 509,292 | |||||||||||||||||||
Net and comprehensive income |
— | i — | — | i — | i — | i — | i 106 | i 804 | i 910 | |||||||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||||||
Stock-based compensation |
i — | i — | i — | i — | i 2,536 | i — | i — | i — | i 2,536 | |||||||||||||||||||||||||||
Shares issued pursuant to employee stock purchase plan |
i — | i — | i 15,923 | i — | i 371 | i — | i — | i — | i 371 | |||||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
i — | i — | i 27,373 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||
Issuance of common stock for unvested restricted stock awards |
i — | i — | i 19,516 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
i — | i — | ( i 7,224 | ) | i — | ( i 200 | ) | i — | i — | i — | ( i 200 | ) | ||||||||||||||||||||||||
Reduction of stock notes receivable from employees |
— | i — | — | i — | i — | i 4 | i — | i — | i 4 | |||||||||||||||||||||||||||
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Balance as of June 30, 2020 |
i — | $ | i — | i 39,328,017 | $ | i 4 | $ |
i 108,308 | $ | i — | $ | i 401,414 | $ | i 3,187 | $ | i 512,913 | ||||||||||||||||||||
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Three Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital |
Stock Notes Receivable From Employees |
Retained Earnings |
Accumulated Other Comprehensive Income |
Total | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at March 31, 2019 |
i — | $ | i — | i 39,042,434 | $ | i 4 | $ | i 97,587 | $ | ( i 4 | ) | $ |
i 326,979 | $ | i 1,526 | $ |
i 426,092 | |||||||||||||||||||
Net and comprehensive income |
— | i — | — | i — | i — | i — | i 21,279 | i 631 | i 21,910 | |||||||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||||||
Stock-based compensation |
i — | i — | i — | i — | i 2,585 | i — | i — | i — | i 2,585 | |||||||||||||||||||||||||||
Shares issued pursuant to employee stock purchase plan |
i — | i — | i 11,022 | i — | i 338 | i — | i — | i — | i 338 | |||||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
i — | i — | i 40,823 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||
Issuance of common stock for unvested restricted stock awards |
i — | i — | i 10,542 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
i — | i — | ( i 13,960 | ) | i — | ( i 412 | ) | i — | i — | i — | ( i 412 | ) | ||||||||||||||||||||||||
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Balance as of June 30, 2019 |
i — | $ | i — | i 39,090,861 | $ | i 4 | $ |
i 100,098 | $ | ( i 4 | ) | $ | i 348,258 | $ | i 2,157 | $ | i 450,513 | |||||||||||||||||||
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Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital |
Stock Notes Receivable From Employees |
Retained Earnings |
Accumulated Other Comprehensive Income |
Total | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at December 31, 2019 |
i — | $ | i — | i 39,153,195 | $ | i 4 | $ | i 104,658 | $ | ( i 4 | ) | $ |
i 388,271 | $ | i 1,978 | $ |
i 494,907 | |||||||||||||||||||
Cumulative effect of a change in accounting principle, net of tax |
i — | i — | i — | i — | i — | i — | ( i 33 | ) | i — | ( i 33 | ) | |||||||||||||||||||||||||
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Balance at January 1, 2020, as adjusted |
i — | i — | i 39,153,195 | i 4 | i 104,658 | ( i 4 | ) | i 388,238 | i 1,978 | i 494,874 | ||||||||||||||||||||||||||
Net and comprehensive income |
— | i — | — | i — | i — | i — | i 13,176 | i 1,209 | i 14,385 | |||||||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||||||
Stock-based compensation |
i — | i — | i — | i — | i 5,168 | i — | i — | i — | i 5,168 | |||||||||||||||||||||||||||
Shares issued pursuant to employee stock purchase plan |
i — | i — | i 15,923 | i — | i 371 | i — | i — | i — | i 371 | |||||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
i — | i — | i 197,479 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||
Issuance of common stock for unvested restricted stock awards |
i — | i — | i 19,516 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
i — | i — | ( i 58,096 | ) | i — | ( i 1,889 | ) | i — | i — | i — | ( i 1,889 | ) | ||||||||||||||||||||||||
Reduction of stock notes receivable from employees |
— | i — | — | i — | i — | i 4 | i — | i — | i 4 | |||||||||||||||||||||||||||
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Balance as of June 30, 2020 |
i — | $ | i — | i 39,328,017 | $ | i 4 | $ | i 108,308 | $ | i — | $ | i 401,414 | $ | i 3,187 | $ | i 512,913 | ||||||||||||||||||||
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Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital |
Stock Notes Receivable From Employees |
Retained Earnings |
Accumulated Other Comprehensive Income |
Total | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at December 31, 2018 |
i — | $ | i — | i 38,814,464 | $ | i 4 | $ | i 97,458 | $ | ( i 4 | ) |
$ |
i 311,341 | $ | i 775 | $ |
i 409,574 | |||||||||||||||||||
Net and comprehensive income |
— | i — | — | i — | i — | i — | i 36,917 | i 1,382 | i 38,299 | |||||||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||||||
Stock-based compensation |
i — | i — | i — | i — | i 4,926 | i — | i — | i — | i 4,926 | |||||||||||||||||||||||||||
Shares issued pursuant to employee stock purchase plan |
i — | i — | i 11,022 | i — | i 338 | i — | i — | i — | i 338 | |||||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
i — | i — | i 325,219 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||
Issuance of common stock for unvested restricted stock awards |
i — | i — | i 10,542 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
i — | i — | ( i 70,386 | ) | i — | ( i 2,624 | ) | i — | i — | i — | ( i 2,624 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance as of June 30, 2019 |
i — | $ | i — | i 39,090,861 | $ | i 4 | $ | i 100,098 | $ | ( i 4 | ) |
$ | i 348,258 | $ | i 2,157 | $ | i 450,513 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||
2020 | 2019 | |||||||
Cash flows from operating activities |
||||||||
Net income |
$ | i 13,176 | $ | i 36,917 | ||||
Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
Depreciation and amortization |
i 5,216 | i 3,764 | ||||||
Amortization of right-of-use |
i 11,151 | i 10,242 | ||||||
Credit loss recovery |
( i 78 | ) | ( i 13 | ) | ||||
Stock-based compensation |
i 5,168 | i 4,926 | ||||||
Deferred taxes, net |
i 4,172 | i 3,863 | ||||||
Unrealized foreign exchange loss |
i 557 | i — | ||||||
Net realized (gains) losses on marketable debt securities, available-for-sale |
( i 117 | ) | ( i 12 | ) | ||||
Other non-cash items |
i 567 | ( i 228 | ) | |||||
Changes in operating assets and liabilities: |
||||||||
Commissions receivable |
( i 5 | ) | ( i 820 | ) | ||||
Prepaid expenses |
i 2,259 | ( i 1,689 | ) | |||||
Advances and loans |
( i 34,149 | ) | ( i 17,614 | ) | ||||
Other assets |
( i 1,059 | ) | ( i 3,753 | ) | ||||
Accounts payable and other liabilities |
( i 1,204 | ) | i 14 | |||||
Income tax receivable/payable |
i 775 | ( i 9,248 | ) | |||||
Accrued bonuses and other employee related expenses |
( i 18,168 | ) | ( i 14,228 | ) | ||||
Deferred compensation and commissions |
( i 31,425 | ) | ( i 28,291 | ) | ||||
Operating lease liabilities |
( i 9,016 | ) | ( i 8,169 | ) | ||||
Other liabilities |
i 331 | ( i 24 | ) | |||||
|
|
|
|
|||||
Net cash used in operating activities |
( i 51,849 | ) | ( i 24,363 | ) | ||||
|
|
|
|
|||||
Cash flows from investing activities |
||||||||
Acquisition of businesses, net of cash received |
( i 11,821 | ) | i — | |||||
Purchases of marketable debt securities, available-for-sale |
( i 95,266 | ) | ( i 79,357 | ) | ||||
Proceeds from sales and maturities of marketable debt securities, available-for-sale |
i 95,028 | i 103,108 | ||||||
Issuances of employee notes receivable |
( i 211 | ) | i — | |||||
Payments received on employee notes receivable |
i 1 | i 1 | ||||||
Purchase of property and equipment |
( i 4,190 | ) | ( i 4,126 | ) | ||||
|
|
|
|
|||||
Net cash (used in) provided by investing activities |
( i 16,459 | ) | i 19,626 | |||||
|
|
|
|
|||||
Cash flows from financing activities |
||||||||
Taxes paid related to net share settlement of stock-based awards |
( i 1,889 | ) | ( i 2,624 | ) | ||||
Proceeds from issuance of shares pursuant to employee stock purchase plan |
i 371 | i 338 | ||||||
Principal payments on notes payable to former stockholders |
( i 6,563 | ) | ( i 1,087 | ) | ||||
Principal payments on stock appreciation rights liability |
( i 1,251 | ) | i 185 | |||||
|
|
|
|
|||||
Net cash used in financing activities |
( i 9,332 | ) | ( i 3,188 | ) | ||||
|
|
|
|
|||||
Effect of currency exchange rate changes on cash and cash equivalents |
( i 150 | ) | i — | |||||
|
|
|
|
|||||
Net decrease in cash and cash equivalents |
( i 77,790 | ) | ( i 7,925 | ) | ||||
Cash and cash equivalents at beginning of period |
i 232,670 | i 214,683 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ |
i 154,880 | $ |
i 206,758 | ||||
|
|
|
|
|||||
Supplemental disclosures of cash flow information |
||||||||
Interest paid during the period |
$ | i 1,193 | $ | i 1,967 | ||||
|
|
|
|
|||||
Income taxes paid, net |
$ | i 1,013 | $ | i 19,520 | ||||
|
|
|
|
1. |
Description of Business and Basis of Presentation |
2. |
Accounting Policies and Recent Accounting Pronouncements |
3. |
Property and Equipment, Net |
June 30, 2020 |
December 31, 2019 |
|||||||
Computer software and hardware equipment |
$ | i 28,445 | $ | i 25,252 | ||||
Furniture, fixtures, and equipment |
i 23,114 | i 23,468 | ||||||
Less: accumulated depreciation and amortization |
( i 28,130 | ) | ( i 26,077 | ) | ||||
|
|
|
|
|||||
$ | i 23,429 | $ | i 22,643 | |||||
|
|
|
|
4. |
Operating Leases |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating lease cost: |
||||||||||||||||
Lease cost (1) |
$ | i 6,341 | $ | i 6,106 | $ | i 12,604 | $ | i 12,015 | ||||||||
Variable lease cost (2) |
i 1,215 | i 1,284 | i 2,611 | i 2,490 | ||||||||||||
Sublease income |
( i 89 | ) | ( i 43 | ) | ( i 166 | ) | ( i 131 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
$ |
i 7,467 | $ |
i 7,347 | $ | i 15,049 | $ | i 14,374 | |||||||||
|
|
|
|
|
|
|
|
(1) |
Includes short-term lease cost and ROU asset amortization. |
(2) |
Primarily relates to common area maintenance, property taxes, insurance, utilities and parking. |
June 30, 2020 | ||||
Remainder of 2020 |
$ | i 10,505 | ||
2021 |
i 20,891 | |||
2022 |
i 15,681 | |||
2023 |
i 12,286 | |||
2024 |
i 10,081 | |||
Thereafter |
i 15,368 | |||
|
|
|||
Total future minimum lease payments |
i 84,812 | |||
Less imputed interest |
( i 6,670 | ) | ||
|
|
|||
Present value of operating lease liabilities |
$ | i 78,142 | ||
|
|
Six Months Ended June 30, |
||||||||
2020 | 2019 | |||||||
Operating cash flow information: |
||||||||
Cash paid for amounts included in the measurement of operating lease liabilities |
$ |
i 10,456 | $ | i 9,973 | ||||
Noncash activity: |
||||||||
ROU assets obtained in exchange for operating lease liabilities |
$ | i 6,334 | $ | i 16,264 | ||||
Tenant improvements owned by lessor related to ROU assets (1) |
$ | i 317 | $ | i 2,532 |
(1) |
Reclassification from other assets current. |
June 30, 2020 | December 31, 2019 | |||
Weighted average remaining operating lease term |
i 4.87 years | i 5.04 years | ||
Weighted average discount rate |
i 3.3% | i 3.8% |
5. |
Investments in Marketable Debt Securities |
June 30, 2020 | ||||||||||||||||||||
Amortized Cost |
Allowance for Credit Losses |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
||||||||||||||||
Short-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ |
i 108,982 | $ | i — | $ | i 498 | $ | ( i 1 | ) | $ | i 109,479 | |||||||||
U.S. government sponsored entities |
i 37,699 | i — | i 14 | i — | i 37,713 | |||||||||||||||
Corporate debt |
i 22,514 | i — | i 62 | i — | i 22,576 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | i 169,195 | $ | i — | $ | i 574 | $ | ( i 1 | ) | $ | i 169,768 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Long-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ | i 3,892 | $ | i — | $ | i 319 | $ | i — | $ | i 4,211 | ||||||||||
U.S. government sponsored entities |
i 1,218 | i — | i 36 | i — | i 1,254 | |||||||||||||||
Corporate debt |
i 28,139 | i — | i 1,758 | ( i 181 | ) | i 29,716 | ||||||||||||||
ABS and other |
i 7,559 | i — | i 128 | ( i 87 | ) | i 7,600 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | i 40,808 | $ | i — | $ | i 2,241 | $ | ( i 268 | ) | $ | i 42,781 | ||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2019 | ||||||||||||||||
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
|||||||||||||
Short-term investments: |
||||||||||||||||
U.S. treasuries |
$ |
i 124,389 | $ | i 196 | $ | ( i 5 | ) | $ |
i 124,580 | |||||||
U.S. government sponsored entities |
i — | i — | i — | i — | ||||||||||||
Corporate debt |
i 26,128 | i 44 | i — | i 26,172 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | i 150,517 | $ | i 240 | $ | ( i 5 | ) | $ | i 150,752 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Long-term investments: |
||||||||||||||||
U.S. treasuries |
$ | i 24,188 | $ | i 235 | $ | i — | $ | i 24,423 | ||||||||
U.S. government sponsored entities |
i 1,353 | i 3 | ( i 1 | ) | i 1,355 | |||||||||||
Corporate debt |
i 25,447 | i 1,027 | ( i 3 | ) | i 26,471 | |||||||||||
ABS and other |
i 8,480 | i 93 | ( i 13 | ) | i 8,560 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | i 59,468 | $ | i 1,358 | $ | ( i 17 | ) | $ | i 60,809 | ||||||||
|
|
|
|
|
|
|
|
June 30, 2020 | ||||||||||||||||||||||||
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||
Fair Value |
Gross Unrealized Losses |
Fair Value |
Gross Unrealized Losses |
Fair Value |
Gross Unrealized Losses |
|||||||||||||||||||
U.S. treasuries |
$ | i 16,889 | $ | ( i 1 | ) | $ | i — | $ | i — | $ | i 16,889 | $ | ( i 1 | ) | ||||||||||
Corporate debt |
i 2,073 | ( i 181 | ) | i — | i — | i 2,073 | ( i 181 | ) | ||||||||||||||||
ABS and other |
i 2,256 | ( i 87 | ) | i — | i — | i 2,256 | ( i 87 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | i 21,218 | $ | ( i 269 | ) | $ | i — | $ | i — | $ | i 21,218 | $ | ( i 269 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 | ||||||||||||||||||||||||
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||
Fair Value |
Gross Unrealized Losses |
Fair Value |
Gross Unrealized Losses |
Fair Value |
Gross Unrealized Losses |
|||||||||||||||||||
U.S. treasuries |
$ | i 39,823 | $ | ( i 5 | ) | $ | i — | $ | i — | $ | i 39,823 | $ | ( i 5 | ) | ||||||||||
U.S. government sponsored entities |
i — | i — | i 566 | ( i 1 | ) | i 566 | ( i 1 | ) | ||||||||||||||||
Corporate debt |
i 6,029 | ( i 3 | ) | i — | i — | i 6,029 | ( i 3 | ) | ||||||||||||||||
ABS and other |
i 1,971 | ( i 13 | ) | i — | i — | i 1,971 | ( i 13 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | i 47,823 | $ | ( i 21 | ) | $ | i 566 | $ | ( i 1 | ) | $ | i 48,389 | $ | ( i 22 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Gross realized gains (1) |
$ | i 79 | $ | i 24 | $ | i 132 | $ | i 59 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross realized losses (1) |
$ | ( i 15 | ) | $ | i — | $ | ( i 15 | ) | $ | ( i 47 | ) | |||||
|
|
|
|
|
|
|
|
(1) |
Recorded in other income (expense), net in the condensed consolidated statements of net and comprehensive income. The cost basis of securities sold were determined based on the specific identification method. |
June 30, 2020 | December 31, 2019 | |||||||||||||||
Amortized Cost |
Fair Value | Amortized Cost |
Fair Value | |||||||||||||
Due in one year or less |
$ | i 169,195 | $ | i 169,768 | $ | i 150,517 | $ | i 150,752 | ||||||||
Due after one year through five years |
i 25,166 | i 26,426 | i 41,123 | i 41,794 | ||||||||||||
Due after five years through ten years |
i 10,709 | i 11,395 | i 12,813 | i 13,467 | ||||||||||||
Due after ten years |
i 4,933 | i 4,960 | i 5,532 | i 5,548 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | i 210,003 | $ | i 212,549 | $ | i 209,985 | $ | i 211,561 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average contractual maturity |
i 1.7 |
i 1.7 years |
6. |
Acquisitions, Goodwill and Other Intangible Assets |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Net Book Value |
Gross Carrying Amount |
Accumulated Amortization |
Net Book Value |
|||||||||||||||||||
Goodwill and intangible assets: |
||||||||||||||||||||||||
Goodwill |
$ | i 24,319 | $ | i — | $ | i 24,319 | $ | i 15,072 | $ | i — | $ | i 15,072 | ||||||||||||
Intangible assets (1) |
i 17,291 | ( i 3,781 | ) | i 13,510 | i 9,050 | ( i 1,810 | ) | i 7,240 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | i 41,610 | $ | ( i 3,781 | ) | $ | i 37,829 | $ | i 24,122 | $ | ( i 1,810 | ) | $ | i 22,312 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Total weighted average amortization period was i 5.08 years and i 4.37 years as of June 30, 2020 and
December 31, 2019, respectively. |
Six Months Ended June 30, |
||||||||
2020 | 2019 | |||||||
Beginning balance |
$ |
i 15,072 | $ |
i 11,459 | ||||
Additions from acquisitions |
i 9,247 | i — | ||||||
Impairment losses |
i — | i — | ||||||
|
|
|
|
|||||
Ending balance |
$ | i 24,319 | $ | i 11,459 | ||||
|
|
|
|
June 30, 2020 | ||||
Remainder of 2020 |
$ | i 1,924 | ||
2021 |
i 2,972 | |||
2022 |
i 2,585 | |||
2023 |
i 2,582 | |||
2024 |
i 2,013 | |||
Thereafter |
i 1,434 | |||
|
|
|||
$ | i 13,510 | |||
|
|
7. |
Selected Balance Sheet Data |
Advances and Loans |
Commissions Receivable |
Total | ||||||||||
Beginning balance as of January 1, 2020 |
$ | i 512 | $ | i 32 | $ | i 544 | ||||||
Credit loss (recovery) expense |
( i 79 | ) | i 1 | ( i 78 | ) | |||||||
Write-offs |
( i 32 | ) | i — | ( i 32 | ) | |||||||
|
|
|
|
|
|
|||||||
Ending balance as of June 30, 2020 |
$ | i 401 | $ | i 33 | $ | i 434 | ||||||
|
|
|
|
|
|
Advances and Loans |
Commissions Receivable |
Total | ||||||||||
Beginning balance as of January 1, 2019 |
$ | i 514 | $ | i — | $ | i 514 | ||||||
Credit loss recovery |
( i 13 | ) | i — | ( i 13 | ) | |||||||
Write-offs |
( i 103 | ) | i — | ( i 103 | ) | |||||||
|
|
|
|
|
|
|||||||
Ending balance as of June 30, 2019 |
$ | i 398 | $ | i — | $ | i 398 | ||||||
|
|
|
|
|
|
Current | Non-Current |
|||||||||||||||
June 30, 2020 |
December 31, 2019 |
June 30, 2020 |
December 31, 2019 |
|||||||||||||
Mortgage servicing rights (“MSRs”), net of amortization |
$ | i — | $ | i — | $ |
i 2,133 | $ | i 2,002 | ||||||||
Security deposits |
i — | i — | i 1,388 | i 1,345 | ||||||||||||
Employee notes receivable (1) |
i 170 | i 65 | i 406 | i 323 | ||||||||||||
Customer trust accounts and other |
i 3,449 | i 3,120 | i 574 | i 677 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | i 3,619 | $ | i 3,185 | $ | i 4,501 | $ | i 4,347 | |||||||||
|
|
|
|
|
|
|
|
(1) |
Reduction of accrued bonuses and other employee related expenses in settlement of employee notes receivable were $ i 0 and $ i 60
for the six months ended June 30, 2020 and 2019, respectively. See Note 9 – “Related-Party Transactions” for additional information. |
Six Months Ended June 30, |
||||||||
2020 | 2019 | |||||||
Beginning balance |
$ | i 2,002 | $ | i 2,209 | ||||
Additions |
i 384 | i 165 | ||||||
Amortization |
( i 253 | ) | ( i 275 | ) | ||||
|
|
|
|
|||||
Ending balance |
$ | i 2,133 | $ | i 2,099 | ||||
|
|
|
|
Current | Non-Current |
|||||||||||||||
June 30, 2020 |
December 31, 2019 |
June 30, 2020 |
December 31, 2019 |
|||||||||||||
Stock appreciation rights (“SARs”) liability (1) |
$ | i 2,162 | $ | i 2,080 | $ | i 16,316 | $ | i 18,122 | ||||||||
Commissions payable to investment sales and financing professionals |
i 21,693 | i 40,235 | i 8,641 | i 20,818 | ||||||||||||
Deferred compensation liability (1) |
i 1,433 | i 1,553 | i 6,431 | i 6,688 | ||||||||||||
Other |
i 261 | i 433 | i — | i — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | i 25,549 | $ | i 44,301 | $ | i 31,388 | $ | i 45,628 | |||||||||
|
|
|
|
|
|
|
|
(1) |
The SARs and deferred compensation liability become subject to payout as a result of a participant no longer being considered as a service provider. As a result of the retirement of certain participants, estimated amounts to be paid to the participants within the next twelve months have been classified as current. |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Increase (decrease) in the carrying value of the assets held in the rabbi trust (1) |
$ | i 1,124 | $ | i 225 | $ | ( i 264 | ) | $ | i 928 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Increase (decrease) in the net carrying value of the deferred compensation obligation (2) |
$ | i 973 | $ | i 227 | $ | ( i 300 | ) | $ | i 912 | |||||||
|
|
|
|
|
|
|
|
(1) |
Recorded in other income (expense), net in the condensed consolidated statements of net and comprehensive income. |
(2) |
Recorded in selling, general and administrative expense in the condensed consolidated statements of net and comprehensive income. |
Non-Current |
||||||||
June 30, 2020 |
December 31, 2019 |
|||||||
Deferred consideration (1) (2) |
$ | i 3,372 | $ | i 830 | ||||
Contingent consideration (1) (2) |
i 3,805 | i 2,709 | ||||||
Other |
i 521 | i — | ||||||
|
|
|
|
|||||
$ | i 7,698 | $ | i 3,539 | |||||
|
|
|
|
(1) |
The current portions of deferred consideration in the amounts of $ i 1,845 and $ i 560
as of June 30, 2020 and December 31, 2019, respectively, are included in accounts payable and other liabilities in the condensed consolidated balance sheets. The current portions of contingent consideration in the amounts of $ i 1,403 and $ i 678
as of June 30, 2020 and December 31, 2019, respectively, are included in accounts payable and other liabilities in the condensed consolidated balance sheets. |
(2) |
Deferred consideration in the aggregate amount of $ i 1,401 as of December 31, 2019 was reclassified from contingent consideration during the six months ended June 30, 2020 and of this amount, $ i 560
and $ i 841 pertained to the current and non-current portions, respectively. |
8. |
Notes Payable to Former Stockholders |
9. |
Related-Party Transactions |
10. |
Fair Value Measurements |
• |
Level 1: |
• | Level 2: |
• | Level 3: |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||
Assets held in rabbi trust |
$ | i 9,081 | $ | i — | $ | i 9,081 | $ | i — | $ | i 9,452 | $ | i — | $ | i 9,452 | $ | i — | ||||||||||||||||
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cash equivalents (1) : |
||||||||||||||||||||||||||||||||
Commercial paper and other |
$ | i 5,751 | $ | i — | $ | i 5,751 | $ | i — | $ | i 5,087 | $ | i — | $ | i 5,087 | $ | i — | ||||||||||||||||
Money market funds |
i 114,909 | i 114,909 | i — | i — | i 185,513 | i 185,513 | i — | i — | ||||||||||||||||||||||||
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|
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|
|||||||||||||||||
$ | i 120,660 | $ | i 114,909 | $ | i 5,751 | $ | i — | $ | i 190,600 | $ | i 185,513 | $ | i 5,087 | $ | i — | |||||||||||||||||
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|
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|
|
|
|
|
|||||||||||||||||
Marketable debt securities, available-for-sale: |
||||||||||||||||||||||||||||||||
Short-term investments: |
||||||||||||||||||||||||||||||||
U.S. treasuries |
$ | i 109,479 | $ | i 109,479 | $ | i — | $ | i — | $ | i 124,580 | $ | i 124,580 | $ | i — | $ | i — | ||||||||||||||||
U.S. government sponsored entities |
i 37,713 | i — | i 37,713 | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
Corporate debt |
i 22,576 | i — | i 22,576 | i — | i 26,172 | i — | i 26,172 | i — | ||||||||||||||||||||||||
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|
|||||||||||||||||
$ | i 169,768 | $ | i 109,479 | $ | i 60,289 | $ | i — | $ | i 150,752 | $ | i 124,580 | $ | i 26,172 | $ | i — | |||||||||||||||||
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|
|||||||||||||||||
Long-term investments: |
||||||||||||||||||||||||||||||||
U.S. treasuries |
$ | i 4,211 | $ | i 4,211 | $ | i — | $ | i — | $ | i 24,423 | $ | i 24,423 | $ | i — | $ | i — | ||||||||||||||||
U.S. government sponsored entities |
i 1,254 | i — | i 1,254 | i — | i 1,355 | i — | i 1,355 | i — | ||||||||||||||||||||||||
Corporate debt |
i 29,716 | i — | i 29,716 | i — | i 26,471 | i — | i 26,471 | i — | ||||||||||||||||||||||||
ABS and other |
i 7,600 | i — | i 7,600 | i — | i 8,560 | i — | i 8,560 | i — | ||||||||||||||||||||||||
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|
|||||||||||||||||
$ | i 42,781 | $ | i 4,211 | $ | i 38,570 | $ | i — | $ | i 60,809 | $ | i 24,423 | $ | i 36,386 | $ | i — | |||||||||||||||||
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|
|||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||
Contingent consideration |
$ | i 5,208 | $ | i — | $ | i — | $ | i 5,208 | $ | i 3,387 | $ | i — | $ | i — | $ | i 3,387 | ||||||||||||||||
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|
|||||||||||||||||
Deferred consideration |
$ | i 5,217 | $ | i — | $ | i 5,217 | $ | i — | $ | i 1,390 | $ | i — | $ | i 1,390 | $ | i — | ||||||||||||||||
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|
|||||||||||||||||
Deferred compensation liability |
$ | i 7,864 | $ | i 7,864 | $ | i — | $ | i — | $ | i 8,241 | $ | i 8,241 | $ | i — | $ | i — | ||||||||||||||||
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|
(1) |
Included in cash and cash equivalents on the accompanying condensed consolidated balance sheets. |
Six Months Ended June 30, |
||||||||
2020 | 2019 | |||||||
Beginning balance (1) |
$ | i 3,387 | $ | i 2,875 | ||||
Contingent consideration in connection with acquisitions (2) |
i 1,800 | i — | ||||||
Change in fair value of contingent consideration |
i 21 | ( i 16 | ) | |||||
Payments of contingent consideration |
i — | i — | ||||||
|
|
|
|
|||||
Ending balance |
$ |
i 5,208 | $ |
i 2,859 | ||||
|
|
|
|
(1) |
Beginning balance for 2020 reflects the reclassification of $ i 1,401 from contingent consideration related to deferred consideration. See Note 7 – “Selected Balance Sheet Data – Other Liabilities” for additional information. |
(2) |
Contingent consideration in connections with acquisitions represents a noncash investing activity. |
Fair Value at June 30, 2020 |
Valuation Technique | Unobservable inputs |
Range (Weighted Average) (1) | |||||||||||
Contingent consideration |
$ | i 5,208 | Discounted cash flow | Expected life of cash flows | i 0.3- i 5.3 years |
( i 2.1 years) | ||||||||
Discount rate | 4.8%-5.0% |
(4.9%) | ||||||||||||
Probability of achievement | 0%-100.0% |
(86.7%) | ||||||||||||
Fair Value at December 31, 2019 |
Valuation Technique | Unobservable inputs |
Range (Weighted Average) (1) | |||||||||||
Contingent consideration |
$ | i 3,387 | Discounted cash flow | Expected life of cash flows | i 0.4- i 5.8 years |
( i 2.4 years) | ||||||||
Discount rate | 3.6%-4.9% |
(4.1%) | ||||||||||||
Probability of achievement | 33.0%-100.0% |
(74.3%) |
(1) |
Unobservable inputs were weighted by the relative fair value of the instruments. |
Fair Value at June 30, 2020 |
Valuation Technique | Unobservable inputs | Range (Weighted (1) | |||||||||||
MSRs |
$ | i 2,316 | Discounted cash flow | Constant prepayment rates | i 0.0%- i 20.0% ( i 10.0%) |
|||||||||
Constant default rate | i 0.4%- i 5.0%
( i 1.5%) | |||||||||||||
Loss severity | i 24.2%- i 50.0% ( i 30.1%) |
|||||||||||||
Discount rate | i 10.0%- i 10.0%
( i 10.0%) | |||||||||||||
Fair Value at December 31, 2019 |
Valuation Technique | Unobservable inputs | Range (Weighted (1) | |||||||||||
MSRs |
$ | i 2,204 | Discounted cash flow | Constant prepayment rates | i 0.0%- i 20.0% ( i 10.0%) |
|||||||||
Constant default rate | i 2.0%- i 2.0%
( i 2.0%) | |||||||||||||
Loss severity | i 40.0%- i 40.0% ( i 40.0%) |
|||||||||||||
Discount rate | i 9.5%- i 9.7%
( i 9.7%) |
(1) |
Weighted average is based on the 10 % constant prepayment rate scenario which the Company uses as the reported fair value. |
11. |
Stockholders’ Equity |
12. |
Stock-Based Compensation Plans |
RSA Grants to Non-employee Directors |
RSU Grants to Employees |
RSU Grants to Independent Contractors |
Total | Weighted- Average Grant Date Fair Value Per Share |
||||||||||||||||
Nonvested shares at December 31, 2019 |
i 17,480 | i 525,115 | i 257,480 | i 800,075 | $ | i 33.91 | ||||||||||||||
Granted |
i 19,516 | i 282,104 | i 32,462 | i 334,082 | i 34.25 | |||||||||||||||
Vested |
( i 18,004 | ) | ( i 158,007 | ) | ( i 39,472 | ) | ( i 215,483 | ) | i 32.48 | |||||||||||
Transferred |
i — | ( i 19,059 | ) | i 19,059 | i — | i 33.37 | ||||||||||||||
Forfeited/canceled |
i — | ( i 12,874 | ) | ( i 1,575 | ) | ( i 14,449 | ) | i 36.16 | ||||||||||||
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|
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|
|
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|
|
|
|||||||||||
Nonvested shares at June 30, 2020 |
i 18,992 | i 617,279 | i 267,954 | i 904,225 | $ | i 34.35 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Unrecognized stock-based compensation expense as of June 30, 2020 (1) |
$ | i 386 | $ | i 19,687 | $ | i 7,778 | $ | i 27,851 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Weighted average remaining vesting period (years) as of June 30, 2020 |
i 0.84 | i 3.92 | i 3.20 | i 3.68 | ||||||||||||||||
|
|
|
|
|
|
|
|
(1) |
The total unrecognized compensation expense is expected to be recognized over a weighted-average period of approximately i 3.68 years. |
June 30, 2020 | ||||
2021 |
i 60,373 | |||
2022 |
i 281,193 | |||
|
|
|||
i 341,566 | ||||
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
ESPP |
$ | i 36 | $ | i 38 | $ | i 83 | $ | i 68 | ||||||||
RSAs – non-employee directors |
i 213 | i 154 | i 373 | i 324 | ||||||||||||
RSUs – employees |
i 1,514 | i 1,622 | i 3,170 | i 2,967 | ||||||||||||
RSUs – independent contractors |
i 773 | i 771 | i 1,542 | i 1,567 | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
$ | i 2,536 | $ | i 2,585 | $ | i 5,168 | $ | i 4,926 | |||||||||
|
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|
|
|
13. |
Income Taxes |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||||||||||||||||||
2019 |
2020 |
2019 |
||||||||||||||||||||||||||||||
Amount |
Rate |
Amount |
Rate |
Amount |
Rate |
Amount |
Rate |
|||||||||||||||||||||||||
Income tax expense at the federal statutory rate |
$ |
31 |
21.0 |
% |
$ |
6,249 |
21.0 |
% |
$ |
4,018 |
21.0 |
% |
$ |
10,721 |
21.0 |
% | ||||||||||||||||
State income tax expense, net of federal benefit |
(69 |
) |
(46.8 |
)% |
1,346 |
4.5 |
% |
950 |
5.0 |
% |
2,240 |
4.4 |
% | |||||||||||||||||||
Shortfall (windfall) tax benefits, net related to stock-based compensation |
90 |
61.2 |
% |
11 |
— |
73 |
0.4 |
% |
(254 |
) |
(0.5 |
)% | ||||||||||||||||||||
Change in valuation allowance |
96 |
65.4 |
% |
200 |
0.7 |
% |
460 |
2.4 |
% |
466 |
0.9 |
% | ||||||||||||||||||||
Permanent and other items (1) |
(106 |
) |
(72.4 |
)% |
672 |
2.3 |
% |
458 |
2.3 |
% |
962 |
1.9 |
% | |||||||||||||||||||
|
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|
|
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|
|
|
|
|||||||||||||||||
$ |
42 |
28.4 |
% |
$ |
8,478 |
28.5 |
% |
$ |
5,959 |
31.1 |
% |
$ |
14,135 |
27.7 |
% | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Permanent items relate principally to compensation charges, qualified transportation fringe benefits, meals and entertainment and our tax-exempt deferred compensation plan assets. |
14. |
Earnings per Share |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Numerator (Basic and Diluted): |
||||||||||||||||
Net income |
$ | i 106 | $ | i 21,279 | $ | i 13,176 | $ | i 36,917 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Denominator: |
||||||||||||||||
Basic |
||||||||||||||||
Weighted average common shares issued and outstanding |
i 39,306 | i 39,073 | i 39,261 | i 39,035 | ||||||||||||
Deduct: Unvested RSAs (1) |
( i 19 | ) | ( i 20 | ) | ( i 18 | ) | ( i 24 | ) | ||||||||
Add: Fully vested DSUs (2) |
i 342 | i 342 | i 342 | i 342 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted Average Common Shares Outstanding |
i 39,629 | i 39,395 | i 39,585 | i 39,353 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic earnings per common share |
$ | i — | $ | i 0.54 | $ | i 0.33 | $ | i 0.94 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted |
||||||||||||||||
Weighted Average Common Shares Outstanding from above |
i 39,629 | i 39,395 | i 39,585 | i 39,353 | ||||||||||||
Add: Dilutive effect of RSUs, RSAs & ESPP |
i 44 | i 132 | i 77 | i 171 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted Average Common Shares Outstanding |
i 39,673 | i 39,527 | i 39,662 | i 39,524 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted earnings per common share |
$ | i — | $ | i 0.54 | $ | i 0.33 | $ | i 0.93 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Antidilutive shares excluded from diluted earnings per common share (3) |
i 738 | i 272 | i 636 | i 260 | ||||||||||||
|
|
|
|
|
|
|
|
(1) |
RSAs were issued and outstanding to the non-employee directors and have a one-year vesting term subject to service requirements. See Note 12 – “Stock-Based Compensation Plans” for additional information. |
(2) |
Shares are included in weighted average common shares outstanding as the shares are fully vested but have not yet been delivered. See Note 12 – “Stock-Based Compensation Plans” for additional information. |
(3) |
Primarily pertaining to RSU grants to the Company’s employees and independent contractors. |
15. |
Commitments and Contingencies |
• |
Properties priced less than $1 million; |
• |
Private client market: |
• |
Middle market: |
• |
Larger transaction market: |
Three Months Ended June 30, |
||||||||||||||||||||||||||||||||||||
2019 |
Change |
|||||||||||||||||||||||||||||||||||
Real Estate Brokerage |
Number |
Volume |
Revenues |
Number |
Volume |
Revenues |
Number |
Volume |
Revenues |
|||||||||||||||||||||||||||
(in millions) |
(in thousands) |
(in millions) |
(in thousands) |
(in millions) |
(in thousands) |
|||||||||||||||||||||||||||||||
<$1 million |
192 |
$ |
118 |
$ |
4,518 |
258 |
$ |
170 |
$ |
7,137 |
(66 |
) |
$ |
(52 |
) |
$ |
(2,619 |
) | ||||||||||||||||||
Private client market ($1—$10 million) |
793 |
2,614 |
70,817 |
1,392 |
4,582 |
128,526 |
(599 |
) |
(1,968 |
) |
(57,709 |
) | ||||||||||||||||||||||||
Middle market ( ³ $10—$20 million) |
43 |
618 |
11,591 |
111 |
1,523 |
26,944 |
(68 |
) |
(905 |
) |
(15,353 |
) | ||||||||||||||||||||||||
Larger transaction market ( ³ $20 million) |
47 |
2,074 |
16,445 |
73 |
2,958 |
26,073 |
(26 |
) |
(884 |
) |
(9,628 |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
1,075 |
$ |
5,424 |
$ |
103,371 |
1,834 |
$ |
9,233 |
$ |
188,680 |
(759 |
) |
$ |
(3,809 |
) |
$ |
(85,309 |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||||||||||||||||||||||||||||||
2019 |
Change |
|||||||||||||||||||||||||||||||||||
Real Estate Brokerage |
Number |
Volume |
Revenues |
Number |
Volume |
Revenues |
Number |
Volume |
Revenues |
|||||||||||||||||||||||||||
(in millions) |
(in thousands) |
(in millions) |
(in thousands) |
(in millions) |
(in thousands) |
|||||||||||||||||||||||||||||||
<$1 million |
408 |
$ |
254 |
$ |
10,260 |
459 |
$ |
301 |
$ |
12,425 |
(51 |
) |
$ |
(47 |
) |
$ |
(2,165 |
) | ||||||||||||||||||
Private client market ($1—$10 million) |
2,035 |
6,615 |
185,081 |
2,452 |
7,902 |
224,584 |
(417 |
) |
(1,287 |
) |
(39,503 |
) | ||||||||||||||||||||||||
Middle market ( ³ $10—$20 million) |
134 |
1,840 |
34,259 |
203 |
2,768 |
50,524 |
(69 |
) |
(928 |
) |
(16,265 |
) | ||||||||||||||||||||||||
Larger transaction market ( ³ $20 million) |
113 |
5,157 |
45,600 |
125 |
5,365 |
46,084 |
(12 |
) |
(208 |
) |
(484 |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
2,690 |
$ |
13,866 |
$ |
275,200 |
3,239 |
$ |
16,336 |
$ |
333,617 |
(549 |
) |
$ |
(2,470 |
) |
$ |
(58,417 |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
Real Estate Brokerage |
2020 | 2019 | 2020 | 2019 | ||||||||||||
Average Number of Investment Sales Professionals |
1,926 | 1,834 | 1,908 | 1,826 | ||||||||||||
Average Number of Transactions per Investment Sales Professional |
0.56 | 1.00 | 1.41 | 1.77 | ||||||||||||
Average Commission per Transaction |
$ | 96,159 | $ | 102,879 | $ | 102,305 | $ | 103,000 | ||||||||
Average Commission Rate |
1.91 | % | 2.04 | % | 1.98 | % | 2.04 | % | ||||||||
Average Transaction Size (in thousands) |
$ | 5,045 | $ | 5,034 | $ | 5,155 | $ | 5,044 | ||||||||
Total Number of Transactions |
1,075 | 1,834 | 2,690 | 3,239 | ||||||||||||
Total Sales Volume (in millions) |
$ | 5,423 | $ | 9,233 | $ | 13,866 | $ | 16,336 | ||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
Financing (1) |
2020 | 2019 | 2020 | 2019 | ||||||||||||
Average Number of Financing Professionals |
87 | 104 | 88 | 106 | ||||||||||||
Average Number of Transactions per Financing Professional |
4.38 | 4.65 | 9.76 | 8.23 | ||||||||||||
Average Fee per Transaction |
$ | 30,260 | $ | 35,406 | $ | 30,616 | $ | 34,576 | ||||||||
Average Fee Rate |
1.00 | % | 0.92 | % | 0.91 | % | 0.91 | % | ||||||||
Average Transaction Size (in thousands) |
$ | 3,021 | $ | 3,851 | $ | 3,382 | $ | 3,812 | ||||||||
Total Number of Transactions |
381 | 484 | 859 | 872 | ||||||||||||
Total Financing Volume (in millions) |
$ | 1,151 | $ | 1,864 | $ | 2,905 | $ | 3,324 |
(1) |
Operating metrics calculated excluding certain financing fees not directly associated with transactions. |
Three Months Ended June 30, 2020 |
Percentage of Revenue |
Three Months Ended June 30, 2019 |
Percentage of Revenue |
Change | ||||||||||||||||||||
Dollar |
Percentage |
|||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Real estate brokerage commissions |
$ | 103,371 | 88.1 | % | $ | 188,680 | 90.0 | % | $ | (85,309 | ) | (45.2 | )% | |||||||||||
Financing fees |
12,703 | 10.8 | 17,742 | 8.5 | (5,039 | ) | (28.4 | )% | ||||||||||||||||
Other revenues |
1,326 | 1.1 | 3,171 | 1.5 | (1,845 | ) | (58.2 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues |
117,400 | 100.0 | 209,593 | 100.0 | (92,193 | ) | (44.0 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Cost of services |
73,743 | 62.8 | 127,847 | 61.0 | (54,104 | ) | (42.3 | )% | ||||||||||||||||
Selling, general and administrative |
43,519 | 37.1 | 52,836 | 25.2 | (9,317 | ) | (17.6 | )% | ||||||||||||||||
Depreciation and amortization |
2,752 | 2.3 | 1,932 | 0.9 | 820 | 42.4 | % | |||||||||||||||||
|
|
|
|
|
|
|
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|
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Total operating expenses |
120,014 | 102.2 | 182,615 | 87.1 | (62,601 | ) | (34.3 | )% | ||||||||||||||||
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Operating (loss) income |
(2,614 | ) | (2.2 | ) | 26,978 | 12.9 | (29,592 | ) | (109.7 | )% | ||||||||||||||
Other income (expense), net |
2,975 | 2.5 | 3,119 | 1.5 | (144 | ) | (4.6 | )% | ||||||||||||||||
Interest expense |
(213 | ) | (0.2 | ) | (340 | ) | (0.2 | ) | 127 | (37.4 | )% | |||||||||||||
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Income before provision for income taxes |
148 | 0.1 | 29,757 | 14.2 | (29,609 | ) | (99.5 | )% | ||||||||||||||||
Provision for income taxes |
42 | 0.0 | 8,478 | 4.0 | (8,436 | ) | (99.5 | )% | ||||||||||||||||
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Net income |
$ | 106 | 0.1 | % | $ | 21,279 | 10.2 | % | $ | (21,173 | ) | (99.5 | )% | |||||||||||
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Adjusted EBITDA (1) |
$ | 4,150 | 3.5 | % | $ | 32,016 | 15.3 | % | $ | (27,866 | ) | (87.0 | )% | |||||||||||
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(1) |
Adjusted EBITDA is not a measurement of our financial performance under U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered as an alternative to net income, operating income or any other measures derived in accordance with U.S. GAAP. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, see “Non-GAAP Financial Measure.” |
Six Months Ended June 30, 2020 |
Percentage of Revenue |
Six Months Ended June 30, 2019 |
Percentage of Revenue |
Change | ||||||||||||||||||||
Dollar | Percentage | |||||||||||||||||||||||
Revenues: |
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Real estate brokerage commissions |
$ | 275,200 | 89.3 | % | $ | 333,617 | 90.1 | % | $ | (58,417 | ) | (17.5 | )% | |||||||||||
Financing fees |
28,054 | 9.1 | 31,474 | 8.5 | (3,420 | ) | (10.9 | )% | ||||||||||||||||
Other revenues |
4,863 | 1.6 | 5,209 | 1.4 | (346 | ) | (6.6 | )% | ||||||||||||||||
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Total revenues |
308,117 | 100.0 | 370,300 | 100.0 | (62,183 | ) | (16.8 | )% | ||||||||||||||||
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Operating expenses: |
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Cost of services |
187,500 | 60.9 | 219,535 | 59.3 | (32,035 | ) | (14.6 | )% | ||||||||||||||||
Selling, general and administrative |
98,379 | 31.9 | 101,754 | 27.5 | (3,375 | ) | (3.3 | )% | ||||||||||||||||
Depreciation and amortization |
5,216 | 1.7 | 3,764 | 1.0 | 1,452 | 38.6 | % | |||||||||||||||||
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Total operating expenses |
291,095 | 94.5 | 325,053 | 87.8 | (33,958 | ) | (10.4 | )% | ||||||||||||||||
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Operating income |
17,022 | 5.5 | 45,247 | 12.2 | (28,225 | ) | (62.4 | )% | ||||||||||||||||
Other income (expense), net |
2,609 | 0.8 | 6,494 | 1.8 | (3,885 | ) | (59.8 | )% | ||||||||||||||||
Interest expense |
(496 | ) | (0.1 | ) | (689 | ) | (0.2 | ) | 193 | (28.0 | )% | |||||||||||||
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Income before provision for income taxes |
19,135 | 6.2 | 51,052 | 13.8 | (31,917 | ) | (62.5 | )% | ||||||||||||||||
Provision for income taxes |
5,959 | 1.9 | 14,135 | 3.8 | (8,176 | ) | (57.8 | )% | ||||||||||||||||
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Net income |
$ | 13,176 | 4.3 | % | 36,917 | 10.0 | % | $ | (23,741 | ) | (64.3 | )% | ||||||||||||
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Adjusted EBITDA (1) |
$ | 26,528 | 8.6 | % | $ | 55,175 | 14.9 | % | $ | (28,647 | ) | (51.9 | )% | |||||||||||
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(1) |
Adjusted EBITDA is not a measurement of our financial performance under U.S. GAAP and should not be considered as an alternative to net income, operating income or any other measures derived in accordance with U.S. GAAP. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, see “Non-GAAP Financial Measure.” |
Three Months Ended June 30, |
Six Months Ended June 30, |
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2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income |
$ | 106 | $ | 21,279 | $ | 13,176 | $ | 36,917 | ||||||||
Adjustments: |
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Interest income and other (1) |
(1,198 | ) | (2,562 | ) | (3,201 | ) | (5,103 | ) | ||||||||
Interest expense |
213 | 340 | 496 | 689 | ||||||||||||
Provision for income taxes |
42 | 8,478 | 5,959 | 14,135 | ||||||||||||
Depreciation and amortization |
2,752 | 1,932 | 5,216 | 3,764 | ||||||||||||
Stock-based compensation |
2,536 | 2,585 | 5,168 | 4,926 | ||||||||||||
Non-cash MSR activity (2) |
(301 | ) | (36 | ) | (286 | ) | (153 | ) | ||||||||
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Adjusted EBITDA (3) |
$ | 4,150 | $ | 32,016 | $ | 26,528 | $ | 55,175 | ||||||||
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(1) |
Other includes net realized gains (losses) on marketable debt securities available-for-sale. |
(2) |
Non-cash MSR activity includes the assumption of servicing obligations. |
(3) |
The decrease in Adjusted EBITDA for the three and six months ended June 30, 2020 compared to the same periods in 2019 is primarily due to a decrease in total revenues and a higher proportion of operating expenses compared to total revenues. |
Six Months Ended June 30, |
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2020 | 2019 | |||||||
Net cash used in operating activities |
$ | (51,849 | ) | $ | (24,363 | ) | ||
Net cash (used in) provided by investing activities |
(16,459 | ) | 19,626 | |||||
Net cash used in financing activities |
(9,332 | ) | (3,188 | ) | ||||
Effect of currency exchange rate changes on cash and cash equivalents |
(150 | ) | — | |||||
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Net decrease in cash and cash equivalents |
(77,790 | ) | (7,925 | ) | ||||
Cash and cash equivalents at beginning of period |
232,670 | 214,683 | ||||||
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Cash and cash equivalents at end of period |
$ | 154,880 | $ | 206,758 | ||||
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Change in Interest Rates | Approximate Change in Fair Value of Investments Increase (Decrease) |
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2% Decrease |
$ | 2,502 | ||
1% Decrease |
$ | 1,626 | ||
1% Increase |
$ | (2,330 | ) | |
2% Increase |
$ | (4,658 | ) |
• | Any impairment in value of our investments in marketable debt securities, available-for-sale, |
• | A potential negative impact on the health of our employees and investment sales and financing professionals, particularly if a significant number of them are impacted, could result in a deterioration in our ability to ensure business continuity during a disruption. |
• | If significant portions of our workforce are unable to work effectively, including because of quarantines, facility closures, ineffective remote work arrangements or technology failures or limitations, our operations would be adversely impacted. |
• | If we need to raise additional capital through public or private debt or equity financings, strategic relationships or other arrangements, this capital might not be available to us in a timely manner, on acceptable terms, or at all due to various risks and uncertainties. Our failure to raise sufficient capital when needed could prevent us from, among other factors, to fund acquisitions or to otherwise finance our growth or operations. If we are not able to respond to and manage the impact of such events effectively, our business will be harmed. |
Exhibit No. |
Description | |
31.1* | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2* | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1** | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) under the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101 | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Net and Comprehensive Income, (iii) Condensed Consolidated Statements of Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and including detailed tags. | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* |
** |
Furnished, not filed. |
Date: |
By: | /s/Hessam Nadji | ||||
President and Chief Executive Officer (Principal Executive Officer) |
Date: |
By: | |||||
Chief Financial Officer (Principal Financial Officer) |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/31/22 | ||||
6/1/22 | ||||
5/31/22 | ||||
1/1/21 | ||||
12/31/20 | 10-K | |||
12/15/20 | ||||
Filed on: | 8/10/20 | |||
8/4/20 | 4, 8-K | |||
For Period end: | 6/30/20 | |||
6/8/20 | 4 | |||
3/31/20 | 10-Q | |||
3/2/20 | 10-K | |||
1/1/20 | ||||
12/31/19 | 10-K | |||
11/27/19 | ||||
6/30/19 | 10-Q | |||
5/28/19 | 8-K | |||
3/31/19 | 10-Q, 4 | |||
1/1/19 | ||||
12/31/18 | 10-K | |||
6/18/14 | 8-K | |||
1/1/14 | ||||
3/31/13 | ||||
List all Filings |