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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 8/05/22 Marcus & Millichap, Inc. 10-Q 6/30/22 84:10M Donnelley … Solutions/FA |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 2.23M 2: EX-10.1 Material Contract HTML 202K 3: EX-10.2 Material Contract HTML 78K 4: EX-10.3 Material Contract HTML 78K 5: EX-31.1 Certification -- §302 - SOA'02 HTML 32K 6: EX-31.2 Certification -- §302 - SOA'02 HTML 32K 7: EX-32.1 Certification -- §906 - SOA'02 HTML 29K 13: R1 Cover Page HTML 79K 14: R2 Condensed Consolidated Balance Sheets HTML 142K 15: R3 Condensed Consolidated Balance Sheets HTML 54K (Parenthetical) 16: R4 Condensed Consolidated Statements of Net and HTML 125K Comprehensive Income 17: R5 Condensed Consolidated Statements of Net and HTML 33K Comprehensive Income (Parenthetical) 18: R6 Consolidated Statements of Stockholders' Equity HTML 102K 19: R7 Consolidated Statements of Cash Flows HTML 142K 20: R8 Description of Business, Basis of Presentation and HTML 53K Recent Accounting Pronouncements 21: R9 Property and Equipment, Net HTML 37K 22: R10 Investments in Marketable Debt Securities, HTML 168K Available-for-Sale 23: R11 Acquisitions, Goodwill and Other Intangible Assets HTML 70K 24: R12 Selected Balance Sheet Data HTML 123K 25: R13 Related-Party Transactions HTML 38K 26: R14 Fair Value Measurements HTML 219K 27: R15 Stockholders' Equity HTML 39K 28: R16 Stock-Based Compensation Plans HTML 69K 29: R17 Income Taxes HTML 64K 30: R18 Earnings per Share HTML 83K 31: R19 Commitments and Contingencies HTML 38K 32: R20 Subsequent Events HTML 32K 33: R21 Description of Business, Basis of Presentation and HTML 69K Recent Accounting Pronouncements (Policies) 34: R22 Property and Equipment, Net (Tables) HTML 35K 35: R23 Investments in Marketable Debt Securities, HTML 169K Available-for-Sale (Tables) 36: R24 Acquisitions, Goodwill and Other Intangible Assets HTML 71K (Tables) 37: R25 Selected Balance Sheet Data (Tables) HTML 119K 38: R26 Fair Value Measurements (Tables) HTML 207K 39: R27 Stock-Based Compensation Plans (Tables) HTML 59K 40: R28 Income Taxes (Tables) HTML 60K 41: R29 Earnings per Share (Tables) HTML 83K 42: R30 Description of Business, Basis of Presentation and HTML 65K Recent Accounting Pronouncements - Additional Information (Detail) 43: R31 Property and Equipment, Net - Schedule of Property HTML 39K and Equipment, Net (Detail) 44: R32 Property and Equipment, Net - Additional HTML 29K Information (Detail) 45: R33 Investments in Marketable Debt Securities, HTML 68K Available-for-Sale - Schedule of Amortized Cost and Fair Value of Marketable Securities, Available-for-Sale, by Type of Security (Detail) 46: R34 Investments in Marketable Debt Securities, HTML 45K Available-for-Sale - Additional Information (Detail) 47: R35 Investments in Marketable Debt Securities, HTML 63K Available-for-Sale - Amortized Cost and Fair Value of Investments in Available for Sale Securities Unrealized Loss Position (Detail) 48: R36 Investments in Marketable Debt Securities, HTML 31K Available-for-Sale - Gross Realized Gains and Losses from Sale of Available for Sale Securities (Detail) 49: R37 Investments in Marketable Debt Securities, HTML 57K Available-for-Sale - Schedule of Amortized Cost and Fair Value of Marketable Securities, Available-for-Sale, by Contractual Maturity (Detail) 50: R38 Acquisitions, Goodwill and Other Intangible Assets HTML 45K - Summary of Goodwill and Intangible Assets (Detail) 51: R39 Acquisitions, Goodwill and Other Intangible Assets HTML 32K - Summary of Goodwill and Intangible Assets (Parenthetical) (Detail) 52: R40 Acquisitions, Goodwill and Other Intangible Assets HTML 36K - Summary of Net Change in Carrying Value of Goodwill (Detail) 53: R41 Acquisitions, Goodwill and Other Intangible Assets HTML 42K - Schedule of Estimated Amortization Expense for Intangible Assets (Detail) 54: R42 Selected Balance Sheet Data - Schedule of Other HTML 43K Assets (Detail) 55: R43 Selected Balance Sheet Data - Schedule of Other HTML 32K Assets (Parenthetical) (Detail) 56: R44 Selected Balance Sheet Data - Summary of Net HTML 38K Change in Carrying Value of MSRs (Detail) 57: R45 Selected Balance Sheet Data - Additional HTML 75K Information (Detail) 58: R46 Selected Balance Sheet Data - Components of HTML 48K Deferred Compensation and Commissions (Detail) 59: R47 Selected Balance Sheet Data - Summary of Net HTML 31K Change in Carrying Value of Assets Held in Rabbi Trust and Deferred Compensation Liability (Detail) 60: R48 Selected Balance Sheet Data - Schedule of Other HTML 47K Liabilities (Detail) 61: R49 Related-Party Transactions - Additional HTML 56K Information (Detail) 62: R50 Fair Value Measurements - Schedule of Assets and HTML 153K Liabilities at Fair Value on Recurring Basis (Detail) 63: R51 Fair Value Measurements - Schedule of HTML 38K Reconciliation of Contingent Consideration Measured at Fair Value on Recurring Basis (Detail) 64: R52 Fair Value Measurements - Schedule of Fair Value HTML 59K Liabilities Measured On Recurring Basis Valuation Techniques (Detail) 65: R53 Fair Value Measurements - Additional Information HTML 38K (Detail) 66: R54 Stockholders' Equity - Additional Information HTML 60K (Detail) 67: R55 Stock-Based Compensation Plans - 2013 Omnibus HTML 33K Equity Incentive Plan - Award Limitations - Additional Information (Detail) 68: R56 Stock-Based Compensation Plans - 2013 Omnibus HTML 71K Equity Incentive Plan - Additional Information (Detail) 69: R57 Stock-Based Compensation Plans - Outstanding HTML 55K Awards Under 2013 Omnibus Equity Incentive Plan (Detail) 70: R58 Stock-Based Compensation Plans - Employee Stock HTML 53K Purchase Plan - Additional Information (Detail) 71: R59 Stock-Based Compensation Plans - Amendments to HTML 46K Restricted Stock and SARs - Additional Information (Detail) 72: R60 Stock-Based Compensation Plans - Stock-Based HTML 34K Compensation Expense (Detail) 73: R61 Income Taxes - Components of Provision for Income HTML 58K Taxes and Income before Provision for Income Taxes (Detail) 74: R62 Income Taxes - Additional Information (Detail) HTML 29K 75: R63 Earnings per Share - Computation of Basic and HTML 86K Diluted Earnings Per Share, Including Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) 76: R64 Earnings per Share - Computation of Basic and HTML 32K Diluted Earnings Per Share, Including Antidilutive Securities Excluded from Computation of Earnings Per Share (Parenthetical) (Detail) 77: R65 Commitments and Contingencies - Additional HTML 69K Information Credit Agreement (Detail) 78: R66 Commitments and Contingencies - Additional HTML 32K Information Other (Detail) 79: R67 Subsequent Events - Additional Information HTML 49K (Detail) 82: XML IDEA XML File -- Filing Summary XML 155K 80: XML XBRL Instance -- d357478d10q_htm XML 2.80M 81: EXCEL IDEA Workbook of Financial Reports XLSX 149K 9: EX-101.CAL XBRL Calculations -- mmi-20220630_cal XML 194K 10: EX-101.DEF XBRL Definitions -- mmi-20220630_def XML 729K 11: EX-101.LAB XBRL Labels -- mmi-20220630_lab XML 1.36M 12: EX-101.PRE XBRL Presentations -- mmi-20220630_pre XML 1.06M 8: EX-101.SCH XBRL Schema -- mmi-20220630 XSD 206K 83: JSON XBRL Instance as JSON Data -- MetaLinks 444± 715K 84: ZIP XBRL Zipped Folder -- 0001193125-22-213586-xbrl Zip 385K
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 Incorporation or Organization) |
(I.R.S. Employer 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 ☐ |
June 30, 2022 (Unaudited) |
||||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | i 211,651 | $ | i 382,140 | ||||
Commissions receivable, net |
i 14,138 | i 17,230 | ||||||
Prepaid expenses |
i 10,046 | i 13,220 | ||||||
Marketable debt securities, available-for-sale |
i 253,040 | i 183,868 | ||||||
Advances and loans, net |
i 3,605 | i 6,403 | ||||||
Other assets, current |
i 5,880 | i 5,270 | ||||||
|
|
|
|
|||||
Total current assets |
i 498,360 | i 608,131 | ||||||
Property and equipment, net |
i 25,338 | i 23,192 | ||||||
Operating lease right-of-use |
i 84,351 | i 81,528 | ||||||
Marketable debt securities, available-for-sale |
i 77,588 | i 112,610 | ||||||
Assets held in rabbi trust |
i 9,587 | i 11,508 | ||||||
Deferred tax assets, net |
i 35,233 | i 33,736 | ||||||
Goodwill and other intangible assets, net |
i 58,263 | i 48,105 | ||||||
Advances and loans, net |
i 164,469 | i 113,242 | ||||||
Other assets, non-current |
i 13,573 | i 13,146 | ||||||
|
|
|
|
|||||
Total assets |
$ | i 966,762 | $ | i 1,045,198 | ||||
|
|
|
|
|||||
Liabilities and stockholders’ equity |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued expenses |
$ | i 13,022 | $ | i 15,487 | ||||
Deferred compensation and commissions |
i 55,387 | i 114,685 | ||||||
Income tax payable |
i 2,848 | i 17,853 | ||||||
Operating lease liabilities |
i 18,632 | i 18,973 | ||||||
Accrued bonuses and other employee related expenses |
i 30,586 | i 49,848 | ||||||
Other liabilities, current |
i 7,567 | i 8,784 | ||||||
|
|
|
|
|||||
Total current liabilities |
i 128,042 | i 225,630 | ||||||
Deferred compensation and commissions |
i 48,096 | i 53,536 | ||||||
Operating lease liabilities |
i 63,366 | i 58,334 | ||||||
Other liabilities, non-current |
i 10,088 | i 11,394 | ||||||
|
|
|
|
|||||
Total liabilities |
i 249,592 | i 348,894 | ||||||
|
|
|
|
|||||
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 none / / /
at June 30, 2022 and December 31, 2021, respectively |
i — | i — | ||||||
Common stock, $ i i 0.0001 /
par value: |
||||||||
Authorized shares – i i 150,000,000 / ; issued
and outstanding shares – i i 39,964,292 / and i i 39,692,373 /
at June 30, 2022 and December 31, 2021, respectively |
i 4 | i 4 | ||||||
Additional paid-in capital |
i 123,767 | i 121,844 | ||||||
Retained earnings |
i 596,361 | i 573,546 | ||||||
Accumulated other comprehensive income (loss) |
( i 2,962 | ) | i 910 | |||||
|
|
|
|
|||||
Total stockholders’ equity |
i 717,170 | i 696,304 | ||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ | i 966,762 | $ | i 1,045,198 | ||||
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
Revenues: |
||||||||||||||||
Real estate brokerage commissions |
$ | i 354,685 | $ | i 252,903 | $ | i 641,594 | $ | i 415,699 | ||||||||
Financing fees |
i 36,811 | i 28,214 | i 63,264 | i 46,057 | ||||||||||||
Other revenues |
i 4,461 | i 3,829 | i 10,563 | i 7,167 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
i 395,957 | i 284,946 | i 715,421 | i 468,923 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating expenses: |
||||||||||||||||
Cost of services |
i 256,042 | i 178,585 | i 452,810 | i 287,688 | ||||||||||||
Selling, general and administrative |
i 79,841 | i 61,797 | i 154,376 | i 113,474 | ||||||||||||
Depreciation and amortization |
i 3,332 | i 2,959 | i 7,243 | i 5,956 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
i 339,215 | i 243,341 | i 614,429 | i 407,118 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income |
i 56,742 | i 41,605 | i 100,992 | i 61,805 | ||||||||||||
Other (expense) income, net |
( i 461 | ) | i 1,370 | ( i 11 | ) | i 2,414 | ||||||||||
Interest expense |
( i 158 | ) | ( i 146 | ) | ( i 318 | ) | ( i 292 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before provision for income taxes |
i 56,123 | i 42,829 | i 100,663 | i 63,927 | ||||||||||||
Provision for income taxes |
i 13,955 | i 11,297 | i 25,712 | i 17,383 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | i 42,168 | $ | i 31,532 | $ | i 74,951 | $ |
i 46,544 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive loss: |
||||||||||||||||
Marketable debt securities, available-for-sale: |
||||||||||||||||
Change in net unrealized gains/losses |
( i 1,558 | ) | i 146 | ( i 3,915 | ) | ( i 475 | ) | |||||||||
Less: reclassification adjustment for net gains included in other income (expense), net |
i 7 | i 3 | ( i 77 | ) | i 3 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change, net of tax of $ i 528 and $ i 1,366 for
the three and six months ended June 30, 2022, and $( i 51 ) and $ i 164 for
the three and six months ended June 30, 2021, respectively |
( i 1,551 | ) | i 149 | ( i 3,992 | ) | ( i 472 | ) | |||||||||
Foreign currency translation gain (loss), net of tax of $ i i i i 0 / / /
for each of the three and six months ended June 30, 2022 and 2021, respectively |
i 179 | ( i 217 | ) | i 120 | ( i 330 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other comprehensive loss |
( i 1,372 | ) | ( i 68 | ) | ( i 3,872 | ) | ( i 802 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income |
$ | i 40,796 | $ | i 31,464 | $ | i 71,079 | $ | i 45,742 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Earnings per share: |
||||||||||||||||
Basic |
$ | i 1.05 | $ | i 0.79 | $ | i 1.87 | $ | i 1.17 | ||||||||
Diluted |
$ | i 1.04 | $ | i 0.78 | $ | i 1.85 | $ | i 1.16 | ||||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
i 40,048 | i 39,877 | i 40,018 | i 39,817 | ||||||||||||
Diluted |
i 40,342 | i 40,139 | i 40,390 | i 40,112 |
Three Months Ended June 30, 2022 |
||||||||||||||||||||||||||||||||
Preferred Stock |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
|||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||
Balance at March 31, 2022 |
i — | $ | i — | i 39,795,399 | $ | i 4 | $ | i 122,782 | $ | i 554,193 | $ | ( i 1,590 | ) | $ | i 675,389 | |||||||||||||||||
Net and comprehensive income (loss) |
— | i — | — | i — | i — | i 42,168 | ( i 1,372 | ) | i 40,796 | |||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||
Stock-based compensation |
i — | i — | i — | i — | i 4,275 | i — | i — | i 4,275 | ||||||||||||||||||||||||
Shares issued pursuant to employee stock purchase plan |
i — | i — | i 11,089 | i — | i 414 | i — | i — | i 414 | ||||||||||||||||||||||||
Issuance of common stock for settlement of deferred stock units |
i — | i — | i 166,449 | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
i — | i — | i 44,971 | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
Issuance of common stock for stock settled deferred consideration |
i — | i — | i 28,673 | i — | i 1,417 | i — | i — | i 1,417 | ||||||||||||||||||||||||
Issuance of common stock for unvested restricted stock awards |
i — | i — | i 11,494 | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
i — | i — | ( i 93,783 | ) | i — | ( i 5,121 | ) | i — | i — | ( i 5,121 | ) | |||||||||||||||||||||
Balance as of June 30, 2022 |
i — | $ | i — | i 39,964,292 | $ | i 4 | $ | i 123,767 | $ | i 596,361 | $ | ( i 2,962 | ) | $ | i 717,170 | |||||||||||||||||
Three Months Ended June 30, 2021 |
||||||||||||||||||||||||||||||||
Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
|||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||
Balance at Mach 31, 2021 |
i — | $ | i — | i 39,500,966 | $ | i 4 | $ | i 113,737 | $ | i 446,088 | $ | i 1,840 | $ | i 561,669 | ||||||||||||||||||
Net and comprehensive income (loss) |
— | i — | — | i — | i — | i 31,532 | ( i 68 | ) | i 31,464 | |||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||
Stock-based compensation |
i — | i — | i — | i — | i 2,662 | i — | i — | i 2,662 | ||||||||||||||||||||||||
Shares issued pursuant to employee stock purchase plan |
i — | i — | i 11,635 | i — | i 369 | i — | i — | i 369 | ||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
i — | i — | i 34,198 | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
Issuance of common stock for unvested restricted stock awards |
i — | i — | i 12,492 | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
Issuance of common stock for stock settled deferred consideration |
i — | i — | i 27,481 | i — | i 1000 | i — | i — | i 1,000 | ||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
i — | i — | ( i 8,412 | ) | i — | ( i 311 | ) | i — | i — | ( i 311 | ) | |||||||||||||||||||||
Balance as of June 30, 2021 |
i — | $ | i — | i 39,578,360 | $ | i 4 | $ | i 117,457 | $ | i 477,620 | $ | i 1,772 | $ | i 596,853 | ||||||||||||||||||
Six Months Ended June 30, 2022 |
||||||||||||||||||||||||||||||||
Preferred Stock |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
|||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||
Balance at December 31, 2021 |
i — | $ | i — | i 39,692,373 | $ | i 4 | $ | i 121,844 | $ | i 573,546 | $ | i 910 | $ | i 696,304 | ||||||||||||||||||
Net and comprehensive income (loss) |
— | i — | — | i — | i — | i 74,951 | ( i 3,872 | ) | i 71,079 | |||||||||||||||||||||||
Dividends |
— | — | — | — | ( i 52,136 | ) | — | ( i 52,136 | ) | |||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||
Stock-based compensation |
i — | i — | i — | i — | i 8,131 | i — | i — | i 8,131 | ||||||||||||||||||||||||
Shares issued pursuant to employee stock purchase plan |
i — | i — | i 11,089 | i — | i 414 | i — | i — | i 414 | ||||||||||||||||||||||||
Issuance of common stock for settlement of deferred stock units |
i — | i — | i 166,449 | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
i — | i — | i 212,234 | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
Issuance of common stock for stock settled deferred consideration |
i — | i — | i 28,673 | i — | i 1,417 | i — | i — | i 1,417 | ||||||||||||||||||||||||
Issuance of common stock for unvested restricted stock awards |
i — | i — | i 11,494 | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
i — | i — | ( i 158,020 | ) | i — | ( i 8,039 | ) | i — | i — | ( i 8,039 | ) | |||||||||||||||||||||
Balance as of June 30, 2022 |
i — | $ | i — | i 39,964,292 | $ | i 4 | $ | i 123,767 | $ | i 596,361 | $ | ( i 2,962 | ) | $ | i 717,170 | |||||||||||||||||
Six Months Ended June 30, 2021 |
||||||||||||||||||||||||||||||||
Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
|||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||
Balance at December 31, 2020 |
i — | $ | i — | i 39,401,976 | $ | i 4 | $ | i 113,182 | $ | i 431,076 | $ | i 2,574 | $ | i 546,836 | ||||||||||||||||||
Net and comprehensive income (loss) |
— | i — | — | i — | i — | i 46,544 | ( i 802 | ) | i 45,742 | |||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||
Stock-based compensation |
i — | i — | i — | i — | i 4,950 | i — | i — | i 4,950 | ||||||||||||||||||||||||
Shares issued pursuant to employee stock purchase plan |
i — | i — | i 11,635 | i — | i 369 | i — | i — | i 369 | ||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
i — | i — | i 183,315 | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
Issuance of common stock for unvested restricted stock awards |
i — | i — | i 12,492 | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
Issuance of common stock for stock settled deferred consideration |
i — | i — | i 27,481 | i — | i 1,000 | i — | i — | i 1,000 | ||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
i — | i — | ( i 58,539 | ) | i — | ( i 2,044 | ) | i — | i — | ( i 2,044 | ) | |||||||||||||||||||||
Balance as of June 30, 2021 |
i — | $ | i — | i 39,578,360 | $ | i 4 | $ | i 117,457 | $ | i 477,620 | $ | i 1,772 | $ | i 596,853 | ||||||||||||||||||
Six Months E nded June 30, |
||||||||
2021 |
||||||||
Cash flows from operating activities |
||||||||
Net income |
$ | i 74,951 | $ | i 46,544 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
||||||||
Depreciation and amortization |
i 7,243 | i 5,956 | ||||||
Noncash lease expense |
i 11,944 | i 11,850 | ||||||
Credit loss recovery |
( i 28 | ) | ( i 137 | ) | ||||
Stock-based compensation |
i 8,131 | i 4,950 | ||||||
Deferred taxes, net |
( i 130 | ) | i 780 | |||||
Unrealized foreign exchange losses (gains) |
i 403 | ( i 560 | ) | |||||
Net realized gains on marketable debt securities, available-for-sale |
( i 96 | ) | ( i 10 | ) | ||||
Other non-cash items |
( i 22 | ) | i 196 | |||||
Changes in operating assets and liabilities: |
||||||||
Commissions receivable |
i 2,922 | ( i 4,781 | ) | |||||
Prepaid expenses |
i 3,177 | ( i 239 | ) | |||||
Advances and loans |
( i 48,539 | ) | ( i 7,086 | ) | ||||
Other assets |
( i 2,818 | ) | ( i 2,138 | ) | ||||
Accounts payable and accrued expenses |
( i 2,684 | ) | i 4,988 | |||||
Income tax receivable/payable |
( i 15,005 | ) | ( i 1,345 | ) | ||||
Accrued bonuses and other employee related expenses |
( i 19,260 | ) | i 3,005 | |||||
Deferred compensation and commissions |
( i 61,047 | ) | ( i 15,968 | ) | ||||
Operating lease liabilities |
( i 9,759 | ) | ( i 10,557 | ) | ||||
Other liabilities |
( i 1,223 | ) | ( i 1,982 | ) | ||||
|
|
|
|
|||||
Net cash (used in) provided by operating activities |
( i 51,840 | ) | i 33,466 | |||||
Cash flows from investing activities |
||||||||
Acquisition of businesses, net of cash received |
( i 12,500 | ) | i 229 | |||||
Purchases of marketable debt securities, available-for-sale |
( i 174,259 | ) | ( i 199,513 | ) | ||||
Proceeds from sales and maturities of marketable debt securities, available-for-sale |
i 135,206 | i 159,968 | ||||||
Issuances of employee notes receivable |
( i 71 | ) | ( i 40 | ) | ||||
Payments received on employee notes receivable |
i 71 | i 276 | ||||||
Purchase of property and equipment |
( i 5,022 | ) | ( i 2,770 | ) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
( i 56,575 | ) | ( i 41,850 | ) | ||||
Cash flows from financing activities |
||||||||
Taxes paid related to net share settlement of stock-based awards |
( i 8,039 | ) | ( i 2,044 | ) | ||||
Proceeds from issuance of shares pursuant to employee stock purchase plan |
i 414 | i 369 | ||||||
Dividends paid |
( i 50,082 | ) | i — | |||||
Principal payments on stock appreciation rights liability |
( i 1,761 | ) | ( i 1,481 | ) | ||||
Principal payments on deferred and contingent consideration |
( i 2,431 | ) | ( i 1,302 | ) | ||||
|
|
|
|
|||||
Net cash used in financing activities |
( i 61,899 | ) | ( i 4,458 | ) | ||||
|
|
|
|
|||||
Effect of currency exchange rate changes on cash and cash equivalents |
( i 175 | ) | i 104 | |||||
|
|
|
|
|||||
Net decrease in cash and cash equivalents |
( i 170,489 | ) | ( i 12,738 | ) | ||||
Cash and cash equivalents at beginning of period |
i 382,140 | i 243,152 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | i 211,651 | $ | i 230,414 | ||||
|
|
|
|
|||||
Supplemental cash flow disclosures: |
||||||||
Interest paid during the period |
$ | i 514 | $ | i 714 | ||||
Income taxes paid, net |
$ | i 40,046 | $ | i 17,897 | ||||
Supplemental disclosures of noncash investing and financing activities: |
||||||||
Unpaid purchases of property and equipment |
$ | i 1,196 | $ | i 250 | ||||
Right-of-use |
$ | i 15,169 | $ | i 14,254 | ||||
Issuance of stock for the settlement of deferred consideration |
$ | i 1,417 | $ | i 1,000 | ||||
Measurement period adjustment of acquisition related contingent consideration |
$ | i — | $ | ( i 100 | ) |
2. |
Property and Equipment, Net |
June 30, 2022 |
December 31, 2021 |
|||||||
Computer software and hardware equipment |
$ | i 38,204 | $ | i 33,819 | ||||
Furniture, fixtures and equipment |
i 25,613 | i 24,511 | ||||||
Less: accumulated depreciation and amortization |
( i 38,479 | ) | ( i 35,138 | ) | ||||
|
|
|
|
|||||
$ | i 25,338 | $ | i 23,192 | |||||
|
|
|
|
3. |
Investments in Marketable Debt Securities, Available for Sale |
Amortized Cost |
Allowance for Credit Losses |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
||||||||||||||||
Short-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ | i 123,715 | $ | i — | $ | i — | $ | ( i 1,233 | ) | $ | i 122,482 | |||||||||
Corporate debt |
i 129,913 | i — | i — | ( i 206 | ) | i 129,707 | ||||||||||||||
Asset-backed securities (“ABS”) and other |
i 859 | i — | i 1 | ( i 9 | ) | i 851 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | i 254,487 | $ | i — | $ | i 1 | $ | ( i 1,448 | ) | $ | i 253,040 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Long-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ | i 40,827 | $ | i — | $ | i — | $ | ( i 619 | ) | $ | i 40,208 | |||||||||
U.S. government sponsored entities |
i 646 | i — | i — | ( i 42 | ) | i 604 | ||||||||||||||
Corporate debt |
i 31,956 | i — | i 1 | ( i 2,100 | ) | i 29,857 | ||||||||||||||
ABS and other |
i 7,338 | i — | i 3 | ( i 422 | ) | i 6,919 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | i 80,767 | $ | i — | $ | i 4 | $ | ( i 3,183 | ) | $ | i 77,588 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Amortized Cost |
Allowance for Credit Losses |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
||||||||||||||||
Short-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ | i 35,767 | $ | i — | $ | i — | $ | ( i 34 | ) | $ | i 35,733 | |||||||||
Corporate debt |
i 148,148 | i — | i 22 | ( i 35 | ) | i 148,135 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | i 183,915 | $ | i — | $ | i 22 | $ | ( i 69 | ) | $ | i 183,868 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Long-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ | i 70,902 | $ | i — | $ | i 128 | $ | ( i 263 | ) | $ | i 70,767 | |||||||||
U.S. government sponsored entities |
i 726 | i — | i 22 | ( i 3 | ) | i 745 | ||||||||||||||
Corporate debt |
i 33,197 | i — | i 962 | ( i 146 | ) | i 34,013 | ||||||||||||||
ABS and other |
i 7,033 | i — | i 82 | ( i 30 | ) | i 7,085 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | i 111,858 | $ | i — | $ | i 1,194 | $ | ( i 442 | ) | $ | i 112,610 | ||||||||||
|
|
|
|
|
|
|
|
|
|
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 162,281 | $ | ( i 1,852 | ) | $ | i — | $ | i — | $ | i 162,281 | $ | ( i 1,852 | ) | ||||||||||
U.S. government sponsored entities |
i 506 | ( i 27 | ) | i 96 | ( i 16 | ) | i 602 | ( i 43 | ) | |||||||||||||||
Corporate debt |
i 157,965 | ( i 2,225 | ) | i 592 | ( i 80 | ) | i 158,557 | ( i 2,305 | ) | |||||||||||||||
ABS and other |
i 6,342 | ( i 431 | ) | i — | i — | i 6,342 | ( i 431 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | i 327,094 | $ | ( i 4,535 | ) | $ | i 688 | $ | ( i 96 | ) | $ | i 327,782 | $ | ( i 4,631 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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 103,019 | $ | ( i 297 | ) | $ | i — | $ | i — | $ | i 103,019 | $ | ( i 297 | ) | ||||||||||
U.S. government sponsored entities |
i 115 | ( i 3 | ) | i — | i — | i 115 | ( i 3 | ) | ||||||||||||||||
Corporate debt |
i 115,908 | ( i 173 | ) | i 146 | ( i 8 | ) | i 116,054 | ( i 181 | ) | |||||||||||||||
ABS and other |
i 2,915 | ( i 30 | ) | i — | i — | i 2,915 | ( i 30 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | i 221,957 | $ | ( i 503 | ) | $ | i 146 | $ | ( i 8 | ) | $ | i 222,103 | $ | ( i 511 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
Gross realized gains (1) |
$ | i 1 | $ | i 9 | $ | i 114 | $ | i 10 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross realized losses (1) |
$ | ( i 17 | ) | $ | i — | $ | ( i 17 | ) | $ | i — | ||||||
|
|
|
|
|
|
|
|
(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, 2022 | December 31, 2021 | |||||||||||||||
Amortized Cost |
Fair Value | Amortized Cost |
Fair Value | |||||||||||||
Due in one year or less |
$ | i 254,487 | $ | i 253,040 | $ | i 183,915 | $ | i 183,868 | ||||||||
Due after one year through five years |
i 64,064 | i 62,267 | i 96,035 | i 96,257 | ||||||||||||
Due after five years through ten years |
i 11,588 | i 10,546 | i 11,129 | i 11,601 | ||||||||||||
Due after ten years |
i 5,115 | i 4,775 | i 4,694 | i 4,752 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | i 335,254 | $ | i 330,628 | $ | i 295,773 | $ | i 296,478 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average contractual maturity |
i 1.3 years | i 1.5 years |
4. |
Acquisitions, Goodwill and Other Intangible Assets |
Gross Carrying Amount |
Accumulated Amortization |
Net Book Value |
Gross Carrying Amount |
Accumulated Amortization |
Net Book Value |
|||||||||||||||||||
Goodwill and intangible assets: |
||||||||||||||||||||||||
Goodwill |
$ | i 38,101 | $ | — | $ | i 38,101 | $ | i 34,071 | $ | — | $ | i 34,071 | ||||||||||||
Intangible assets (1) |
i 32,444 | ( i 12,282 | ) | i 20,162 | i 23,974 | ( i 9,940 | ) | i 14,034 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | i 70,545 | $ | ( i 12,282 | ) | $ | i 58,263 | $ | i 58,045 | $ | ( i 9,940 | ) | $ | i 48,105 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Total weighted average amortization period was i 4.9 years and i 4.4 years as of June 30, 2022 and December 31,
2021, respectively. |
Six Months Ended June 30, |
||||||||
2021 |
||||||||
Beginning balance |
$ | i 34,071 | $ | i 33,375 | ||||
Additions from acquisitions (1) |
i 4,030 | i 696 | ||||||
Impairment losses |
i — | i — | ||||||
|
|
|
|
|||||
Ending balance |
$ | i 38,101 | $ | i 34,071 | ||||
|
|
|
|
(1) |
The 2021 addition represents a measurement period adjustment for an acquisition made in 2020. |
June 30, 2022 | ||||
Remainder of 2022 |
$ | i 2,341 | ||
2023 |
i 4,617 | |||
2024 |
i 4,101 | |||
2025 |
i 3,881 | |||
2026 |
i 2,156 | |||
Thereafter |
i 3,066 | |||
|
|
|||
$ | i 20,162 | |||
|
|
5. |
Selected Balance Sheet Data |
Current |
Non-Current |
|||||||||||||||
Mortgage servicing rights (“MSRs”), net of amortization |
$ | i — | $ | i — | $ | i — | $ | i 1,855 | ||||||||
Security deposits |
i — | i — | i 1,681 | i 1,395 | ||||||||||||
Employee notes receivable |
i 16 | i 40 | i — | i — | ||||||||||||
Securities, held-to-maturity (1) |
i — | i — | i 9,500 | i 9,500 | ||||||||||||
Customer trust accounts and other |
|
i 5,864 | |
i 5,230 | |
i 2,392 | |
i 396 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | i 5,880 | $ | i 5,270 | $ | i 13,573 | $ | i 13,146 | |||||||||
|
|
|
|
|
|
|
|
(1) |
Securities, held-to-maturity, i 1-year treasury
rate. |
Six Months Ended June 30, |
||||||||
2021 |
||||||||
Beginning balance |
$ | i 1,855 | $ | i 1,897 | ||||
Additions |
i — | i 366 | ||||||
Amortization |
( i 1,275 | ) | ( i 270 | ) | ||||
Reclassification to assets held for sale |
( i 280 | ) | i — | |||||
Loss on sale |
( i 300 | ) | i — | |||||
|
|
|
|
|||||
Ending balance |
$ | i — | $ |
i 1,993 | ||||
|
|
|
|
Current |
Non-Current |
|||||||||||||||
Stock appreciation rights (“SARs”) liability (1) |
$ | i 2,323 | $ | i 2,241 | $ | i 12,866 | $ | i 14,918 | ||||||||
Commissions payable to investment sales and financing professionals |
|
i 52,316 | |
i 110,769 | |
i 28,813 | |
i 31,697 | ||||||||
Deferred compensation liability ( 1 ) |
i 622 | i 1,080 | i 6,417 | i 6,921 | ||||||||||||
Other |
i 126 | i 595 | i — | i — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | i 55,387 | $ | i 114,685 | $ | i 48,096 | $ | i 53,536 | |||||||||
|
|
|
|
|
|
|
|
(1) |
The SARs and deferred compensation liabilities become subject to payout at the time the participant is no longer considered a service provider. As a result of the retirement of certain participants, estimated amounts to be paid to participants within the next twelve months have been classified as current. |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
(Decrease) increase in the carrying value of the assets held in the rabbi trust (1) |
$ | ( i 1,259 | ) | $ | i 657 | $ | ( i 1,784 | ) | $ | i 990 | ||||||
|
|
|
|
|
|
|
|
|||||||||
Decrease (increase) in the net carrying value of the deferred compensation obligation (2) |
$ | i 1,259 | $ | ( i 503 | ) |
$ | i 1,791 | $ | ( i 763 | ) | ||||||
|
|
|
|
|
|
|
|
(1) |
Recorded in other (expense) income, 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. |
Current |
Non-Current |
|||||||||||||||
Deferred consideration |
$ |
i 2,863 |
$ |
i 5,112 |
$ |
i 3,300 |
$ |
i 4,689 |
||||||||
Contingent consideration |
i 2,466 |
i 2,681 |
i 5,313 |
i 6,631 |
||||||||||||
Dividends payable |
i 612 |
i — |
i 1,443 |
i — |
||||||||||||
Other |
i 1,626 |
i 991 |
i 32 |
i 74 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ |
i 7,567 |
$ |
i 8,784 |
$ |
i 10,088 |
$ |
i 11,394 |
|||||||||
|
|
|
|
|
|
|
|
6. |
Related-Party Transactions |
7. |
Fair Value Measurements |
• |
Level 1 |
• |
Level 2 |
• |
Level 3 |
Fair Value |
Level 1 |
Level 2 |
Level 3 |
Fair Value |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||
Assets held in rabbi trust |
$ | i 9,587 | $ | i — | $ | i 9,587 | $ | i — | $ | i 11,508 | $ | i — | $ | i 11,508 | $ | i — | ||||||||||||||||
Cash equivalents (1) : |
||||||||||||||||||||||||||||||||
Commercial paper |
$ | i 35,932 | $ | i — | $ | i 35,932 | $ | i — | $ | i 8,948 | $ | i — | $ | i 8,948 | $ | i — | ||||||||||||||||
Money market funds |
i 80,910 | i 80,910 | i — | i — | i 210,985 | i 210,985 | i — | i — | ||||||||||||||||||||||||
$ | i 116,842 | $ | i 80,910 | $ | i 35,932 | $ | i — | $ | i 219,933 | $ | i 210,985 | $ | i 8,948 | $ | i — | |||||||||||||||||
Marketable debt securities, available-for-sale: |
||||||||||||||||||||||||||||||||
Short-term investments: |
||||||||||||||||||||||||||||||||
U.S. treasuries |
$ | i 122,482 | $ | i 122,482 | $ | i — | $ | i — | $ | i 35,733 | $ | i 35,733 | $ | i — | $ | i — | ||||||||||||||||
Corporate debt |
i 129,707 | i — | i 129,707 | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
ABS and other |
i 851 | i — | i 851 | i — | i 148,135 | i — | i 148,135 | i — | ||||||||||||||||||||||||
$ | i 253,040 | $ | i 122,482 | $ | i 130,558 | $ | i — | $ | i 183,868 | $ | i 35,733 | $ | i 148,135 | $ | i — | |||||||||||||||||
Long-term investments: |
||||||||||||||||||||||||||||||||
U.S. treasuries |
$ | i 40,208 | $ | i 40,208 | $ | i — | $ | i — | $ | i 70,767 | $ | i 70,767 | $ | i — | $ | i — | ||||||||||||||||
U.S. government sponsored entities |
i 604 | i — | i 604 | i — | i 745 | i — | i 745 | i — | ||||||||||||||||||||||||
Corporate debt |
i 29,857 | i — | i 29,857 | i — | i 34,013 | i — | i 34,013 | i — | ||||||||||||||||||||||||
ABS and other |
i 6,919 | i — | i 6,919 | i — | i 7,085 | i — | i 7,085 | i — | ||||||||||||||||||||||||
$ | i 77,588 | $ | i 40,208 | $ | i 37,380 | $ | i — | $ | i 112,610 | $ | i 70,767 | $ | i 41,843 | $ | i — | |||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||
Contingent consideration |
$ | i 7,779 | $ | i — | $ | i — | $ | i 7,779 | $ | i 9,312 | $ | i — | $ | i — | $ | i 9,312 | ||||||||||||||||
Deferred consideration |
$ | i 6,163 | $ | i — | $ | i 6,163 | $ | i — | $ | i 9,801 | $ | i — | $ | i 9,801 | $ | i — | ||||||||||||||||
Deferred compensation liability |
$ | i 7,039 | $ | i 7,039 | $ | i — | $ | i — | $ | i 8,001 | $ | i 8,001 | $ | i — | $ | i — | ||||||||||||||||
(1) |
Included in cash and cash equivalents on the accompanying condensed consolidated balance sheets. |
Six Months Ended June 30, |
||||||||
2021 |
||||||||
Beginning balance |
$ | i 9,312 | $ | i 5,572 | ||||
Contingent consideration in connection with acquisitions |
i — | ( i 100 | ) | |||||
Change in fair value of contingent consideration |
( i 493 | ) | i 1,345 | |||||
Payments of contingent consideration |
( i 1,040 | ) | i — | |||||
Ending balance |
$ | i 7,779 | $ | i 6,817 | ||||
Fair Value at June 30, 2022 |
Valuation Technique |
Unobservable inputs |
Range (Weighted Average) (1) |
|||||||||
Contingent consideration |
$ | i 7,779 | Discounted cash flow |
Expected life of cash flows | i 0.9- i 5.3 years ( i 3.0 years) |
|||||||
Discount rate | i 5.8%- i 6.3%
( i 6.0%) |
|||||||||||
Probability of achievement | i 0.0%- i 100.0% ( i 98.1%) |
|||||||||||
Fair Value at December 31, 2021 |
Valuation Technique |
Unobservable inputs |
Range (Weighted Average) (1) |
|||||||||
Contingent consideration |
$ | i 9,312 | Discounted cash flow |
Expected life of cash flows | i 1.4- i 5.8
years ( i 3.4 years) |
|||||||
Discount rate | i 2.2%- i 3.5% ( i 2.9%) |
|||||||||||
Probability of achievement | i 29.0%- i 100.0% ( i 95.2%) |
(1) |
Unobservable inputs were weighted by the relative fair value of the instruments. |
8. |
Stockholders’ Equity |
9. |
Stock-Based Compensation Plans |
Shares |
Weighted- Average Grant Date Fair Value Per Share |
|||||||
Nonvested shares at December 31, 2021 (1) |
i 980,936 | $ | i 36.58 | |||||
Granted |
i 848,629 | i 47.16 | ||||||
Vested |
( i 225,557 | ) | i 36.44 | |||||
Forfeited/canceled |
( i 14,050 | ) | i 36.79 | |||||
|
|
|||||||
Nonvested shares at June 30, 2022 (1) |
i 1,589,958 | $ | i 42.45 | |||||
|
|
|||||||
Unrecognized stock-based compensation expense as of June 30, 2022 |
$ | i 60,111 | ||||||
|
|
|||||||
Unrecognized compensation expense is expected to be recognized over a weighted-average period (years) of approximately |
i 4.03 | |||||||
|
|
|||||||
Weighted average remaining vesting period (years) as of June 30, 2022 |
i 4.03 | |||||||
|
|
(1) |
Nonvested RSUs will be settled through the issuance of new shares of common stock. |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
ESPP |
$ | i 29 | $ | i 24 | $ | i 85 | $ | i 74 | ||||||||
RSUs and RSAs |
i 4,246 | i 2,638 | i 8,046 | i 4,876 | ||||||||||||
$ | i 4,275 | $ | i 2,662 | $ | i 8,131 | $ | i 4,950 | |||||||||
10. |
Income Taxes |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||||||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||||||||||||||||||
Amount |
Rate |
Amount |
Rate |
Amount |
Rate |
Amount |
Rate |
|||||||||||||||||||||||||
Income tax expense at the federal statutory rate |
$ | i 11,786 | i 21.0 | % | $ | i 8,994 | i 21.0 | % | $ | i 21,139 | i 21.0 | % | $ | i 13,425 | i 21.0 | % | ||||||||||||||||
State income tax expense, net of federal benefit |
i 2,389 | i 4.3 | % | i 1,999 | i 4.7 | % | i 4,422 | i 4.4 | % | i 3,046 | i 4.8 | % | ||||||||||||||||||||
(Windfall) shortfall tax benefits, net related to stock-based compensation |
( i 1,758 | ) | ( i 3.1 | )% | ( i 52 | ) | ( i 0.1 | )% | ( i 2,064 | ) | ( i 2.1 | )% | ( i 79 | ) | ( i 0.1 | )% | ||||||||||||||||
Change in valuation allowance |
i 23 | i 0.0 | % | i 17 | i 0.0 | % | ( i 81 | ) | ( i 0.1 | )% | i 188 | i 0.3 | % | |||||||||||||||||||
Permanent and other items (1) |
i 1,515 | i 2.7 | % | i 339 | i 0.8 | % | i 2,296 | i 2.3 | % | i 803 | i 1.2 | % | ||||||||||||||||||||
$ | i 13,955 | i 24.9 | % | $ | i 11,297 | i 26.4 | % | $ | i 25,712 | i 25.5 | % | $ | i 17,383 | i 27.2 | % | |||||||||||||||||
(1) |
Permanent items relate principally to compensation charges, qualified transportation fringe benefits and meals and entertainment. |
11. |
Earnings per Share |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
Numerator (Basic and Diluted): |
||||||||||||||||
Net income |
$ | i 42,168 | $ | i 31,532 | $ | i 74,951 | $ | i 46,544 | ||||||||
Change in value for stock settled consideration |
( i 24 | ) | ( i 42 | ) | ( i 38 | ) | i 10 | |||||||||
Adjusted net income |
$ | i 42,144 | $ | i 31,490 | $ | i 74,913 | $ | i 46,554 | ||||||||
Denominator: |
||||||||||||||||
Basic |
||||||||||||||||
Weighted average common shares issued and outstanding |
i 39,936 | i 39,549 | i 39,829 | i 39,491 | ||||||||||||
Deduct: Unvested RSAs (1) |
( i 12 | ) | ( i 14 | ) | ( i 13 | ) | ( i 16 | ) | ||||||||
Add: Fully vested DSUs (2) |
i 124 | i 342 | i 202 | i 342 | ||||||||||||
Weighted average common shares outstanding |
i 40,048 | i 39,877 | i 40,018 | i 39,817 | ||||||||||||
Basic earnings per common share |
$ | i 1.05 | $ | i 0.79 | $ | i 1.87 | $ | i 1.17 | ||||||||
Diluted |
||||||||||||||||
Weighted average common shares outstanding from above |
i 40,048 | i 39,877 | i 40,018 | i 39,817 | ||||||||||||
Add: Dilutive effect of RSUs, RSAs & ESPP |
i 213 | i 149 | i 291 | i 182 | ||||||||||||
Add: Contingently issuable shares (3) |
i 81 | i 113 | i 81 | i 113 | ||||||||||||
Weighted average common shares outstanding |
i 40,342 | i 40,139 | i 40,390 | i 40,112 | ||||||||||||
Diluted earnings per common share |
$ | i 1.04 | $ | i 0.78 | $ | i 1.85 | $ | i 1.16 | ||||||||
Antidilutive shares excluded from diluted earnings per common share (4) |
i 843 | i 48 | i 843 | i 275 | ||||||||||||
(1) |
RSAs were issued and outstanding to the non-employee directors and have a i one-year vesting term subject to service requirements. See Note 9 – “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 9 – “Stock-Based Compensation Plans” for additional information. |
(3) |
Relates to contingently issuable stock settled consideration. |
(4) |
Primarily pertaining to RSU grants to the Company’s employees and independent contractors. |
12. |
Commitments and Contingencies |
13. |
Subsequent Events |
• | Properties priced less than $1 million; |
• | Private client market: properties priced from $1 million to up to but less than $10 million; |
• | Middle market: properties priced from $10 million to up to but less than $20 million; and |
• | Larger transaction market: properties priced from $20 million and above. |
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
2022 | 2021 | 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 |
279 | $ | 168 | $ | 6,672 | 297 | $ | 200 | $ | 7,618 | (18 | ) | $ | (32) | $ | (946) | ||||||||||||||||||||
Private Client Market ($1 – <$10 million) |
2,021 | 7,348 | 209,868 | 1,767 | 5,675 | 158,136 | 254 | 1,673 | 51,732 | |||||||||||||||||||||||||||
Middle Market ($10 – <$20 million) |
209 | 2,819 | 56,456 | 156 | 2,134 | 41,745 | 53 | 685 | 14,711 | |||||||||||||||||||||||||||
Larger Transaction Market (≥$20 million) |
176 | 9,533 | 81,689 | 110 | 5,551 | 45,404 | 66 | 3,982 | 36,285 | |||||||||||||||||||||||||||
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|
|||||||||||||||||||
2,685 | $ | 19,868 | $ | 354,685 | 2,330 | $ | 13,560 | $ | 252,903 | 355 | $ | 6,308 | $ | 101,782 | ||||||||||||||||||||||
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|
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
2022 | 2021 | 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 |
485 | $ | 296 | $ | 12,459 | 524 | $ | 349 | $ | 13,756 | (39 | ) | $ | (53) | $ | (1,297) | ||||||||||||||||||||
Private Client Market ($1 – <$10 million) |
3,627 | 13,044 | 370,899 | 2,967 | 9,343 | 263,559 | 660 | 3,701 | 107,340 | |||||||||||||||||||||||||||
Middle Market ($10 – <$20 million) |
393 | 5,322 | 103,216 | 234 | 3,201 | 62,346 | 159 | 2,121 | 40,870 | |||||||||||||||||||||||||||
Larger Transaction Market (≥$20 million) |
317 | 18,411 | 155,020 | 193 | 9,531 | 76,038 | 124 | 8,880 | 78,982 | |||||||||||||||||||||||||||
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|
|||||||||||||||||||
4,822 | $ | 37,073 | $ | 641,594 | 3,918 | $ | 22,424 | $ | 415,699 | 904 | $ | 14,649 | $ | 225,895 | ||||||||||||||||||||||
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Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
Real Estate Brokerage |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Average Number of Investment Sales Professionals |
1,822 | 1,934 | 1,839 | 1,946 | ||||||||||||
Average Number of Transactions per Investment Sales Professional |
1.47 | 1.20 | 2.62 | 2.01 | ||||||||||||
Average Commission per Transaction |
$ | 132,099 | $ | 108,542 | $ | 133,056 | $ | 106,100 | ||||||||
Average Commission Rate |
1.79 | % | 1.87 | % | 1.73 | % | 1.85 | % | ||||||||
Average Transaction Size (in thousands) |
$ | 7,399 | $ | 5,820 | $ | 7,688 | $ | 5,723 | ||||||||
Total Number of Transactions |
2,685 | 2,330 | 4,822 | 3,918 | ||||||||||||
Total Sales Volume (in millions) |
$ | 19,868 | $ | 13,560 | $ | 37,073 | $ | 22,424 | ||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
Financing (1) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Average Number of Financing Professionals |
87 | 85 | 86 | 86 | ||||||||||||
Average Number of Transactions per Financing Professional |
8.01 | 8.05 | 14.15 | 13.70 | ||||||||||||
Average Fee per Transaction |
$ | 44,985 | $ | 34,783 | $ | 44,198 | $ | 32,972 | ||||||||
Average Fee Rate |
0.70 | % | 0.82 | % | 0.75 | % | 0.86 | % | ||||||||
Average Transaction Size (in thousands) |
$ | 6,453 | $ | 4,228 | $ | 5,882 | $ | 3,824 | ||||||||
Total Number of Transactions |
697 | 684 | 1,217 | 1,178 | ||||||||||||
Total Financing Volume (in millions) |
$ | 4,498 | $ | 2,892 | $ | 7,158 | $ | 4,504 |
(1) |
Operating metrics exclude certain financing fees not directly associated to transactions. |
Three Months Ended June 30, 2022 |
Percentage of Revenue |
Three Months Ended June 30, 2021 |
Percentage of Revenue |
Change | ||||||||||||||||||||
Dollar | Percentage | |||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Real estate brokerage commissions |
$ | 354,685 | 89.6 | % | $ | 252,903 | 88.8 | % | $ | 101,782 | 40.2 | % | ||||||||||||
Financing fees |
36,811 | 9.3 | 28,214 | 9.9 | 8,597 | 30.5 | % | |||||||||||||||||
Other revenues |
4,461 | 1.1 | 3,829 | 1.3 | 632 | 16.5 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues |
395,957 | 100.0 | 284,946 | 100.0 | 111,011 | 39.0 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Cost of services |
256,042 | 64.7 | 178,585 | 62.7 | 77,457 | 43.4 | % | |||||||||||||||||
Selling, general and administrative |
79,841 | 20.2 | 61,797 | 21.7 | 18,044 | 29.2 | % | |||||||||||||||||
Depreciation and amortization |
3,332 | 0.8 | 2,959 | 1.0 | 373 | 12.6 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total operating expenses |
339,215 | 85.7 | 243,341 | 85.4 | 95,874 | 39.4 | % | |||||||||||||||||
|
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|
|
|
|
|
|
|
|
|||||||||||||||
Operating income |
56,742 | 14.3 | 41,605 | 14.6 | 15,137 | 36.4 | % | |||||||||||||||||
Other (expense) income, net |
(461 | ) | (0.1 | ) | 1,370 | 0.5 | (1,831 | ) | (133.6 | )% | ||||||||||||||
Interest expense |
(158 | ) | 0.0 | (146 | ) | 0.0 | (12 | ) | 8.2 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income before provision for income taxes |
56,123 | 14.2 | 42,829 | 15.1 | 13,294 | 31.0 | % | |||||||||||||||||
Provision for income taxes |
13,955 | 3.5 | 11,297 | 4.0 | 2,658 | 23.5 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income |
$ | 42,168 | 10.6 | % | $ | 31,532 | 11.1 | % | $ | 10,636 | 33.7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Adjusted EBITDA (1) |
$ | 62,909 | 15.9 | % | $ | 48,110 | 16.9 | % | $ | 14,799 | 30.8 | % | ||||||||||||
|
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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, 2022 |
Percentage of Revenue |
Six Months Ended June 30, 2021 |
Percentage of Revenue |
Change | ||||||||||||||||||||
Dollar | Percentage | |||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Real estate brokerage commissions |
$ | 641,594 | 89.7 | % | $ | 415,699 | 88.7 | % | $ | 225,895 | 54.3 | % | ||||||||||||
Financing fees |
63,264 | 8.8 | 46,057 | 9.8 | 17,207 | 37.4 | % | |||||||||||||||||
Other revenues |
10,563 | 1.5 | 7,167 | 1.5 | 3,396 | 47.4 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues |
715,421 | 100.0 | 468,923 | 100.0 | 246,498 | 52.6 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Cost of services |
452,810 | 63.3 | 287,688 | 61.4 | 165,122 | 57.4 | % | |||||||||||||||||
Selling, general and administrative |
154,376 | 21.6 | 113,474 | 24.2 | 40,902 | 36.0 | % | |||||||||||||||||
Depreciation and amortization |
7,243 | 1.0 | 5,956 | 1.3 | 1,287 | 21.6 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total operating expenses |
614,429 | 85.9 | 407,118 | 86.9 | 207,311 | 50.9 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating income |
100,992 | 14.1 | 61,805 | 13.1 | 39,187 | 63.4 | % | |||||||||||||||||
Other (expense) income, net |
(11 | ) | 0.0 | 2,414 | 0.5 | (2,425 | ) | (100.5 | )% | |||||||||||||||
Interest expense |
(318 | ) | 0.0 | (292 | ) | 0.0 | (26 | ) | 8.9 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income before provision for income taxes |
100,663 | 14.1 | 63,927 | 13.6 | 36,736 | 57.5 | % | |||||||||||||||||
Provision for income taxes |
25,712 | 3.6 | 17,383 | 3.7 | 8,329 | 47.9 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income |
$ | 74,951 | 10.5 | % | $ | 46,544 | 9.9 | % | $ | 28,407 | 61.0 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Adjusted EBITDA |
$ | 114,761 | 16.0 | % | $ | 73,805 | 15.7 | % | $ | 40,956 | 55.5 | % | ||||||||||||
|
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|
|
|
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|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net income |
$ | 42,168 | $ | 31,532 | $ | 74,951 | $ | 46,544 | ||||||||
Adjustments: |
||||||||||||||||
Interest income and other (1) |
(979 | ) | (436 | ) | (1,594 | ) | (967 | ) | ||||||||
Interest expense |
158 | 146 | 318 | 292 | ||||||||||||
Provision for income taxes |
13,955 | 11,297 | 25,712 | 17,383 | ||||||||||||
Depreciation and amortization |
3,332 | 2,959 | 7,243 | 5,956 | ||||||||||||
Stock-based compensation |
4,275 | 2,662 | 8,131 | 4,950 | ||||||||||||
Non-cash MSR activity (2) |
— | (50 | ) | — | (353 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA |
$ | 62,909 | $ | 48,110 | $ | 114,761 | $ | 73,805 | ||||||||
|
|
|
|
|
|
|
|
(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. |
Six Months Ended June 30, |
||||||||
2022 | 2021 | |||||||
Net cash flows (used in) provided by operating activities |
$ | (51,840 | ) | $ | 33,466 | |||
Net cash flows used in investing activities |
(56,575 | ) | (41,850 | ) | ||||
Net cash flows used in financing activities |
(61,899 | ) | (4,458 | ) | ||||
|
|
|
|
|||||
Effect of currency exchange rate changes on cash and cash equivalents |
(175 | ) | 104 | |||||
|
|
|
|
|||||
Net decrease in cash and cash equivalents |
(170,489 | ) | (12,738 | ) | ||||
Cash and cash equivalents at beginning of period |
382,140 | 243,152 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | 211,651 | $ | 230,414 | ||||
|
|
|
|
Change in Interest Rates |
Approximate Change in Fair Value of Investments Increase (Decrease) |
|||
2% Decrease |
$ | 5,729 | ||
1% Decrease |
$ | 2,873 | ||
1% Increase |
$ | (2,872 | ) | |
2% Increase |
$ | (5,743 | ) |
* |
** |
Furnished, not filed. |
Marcus & Millichap, Inc | ||||||||
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 | ||
---|---|---|---|---|
6/1/25 | ||||
9/1/24 | ||||
12/31/22 | ||||
10/6/22 | ||||
9/15/22 | ||||
Filed on: | 8/5/22 | 8-K | ||
8/2/22 | ||||
8/1/22 | ||||
7/28/22 | ||||
7/21/22 | ||||
For Period end: | 6/30/22 | |||
5/31/22 | 4 | |||
4/30/22 | ||||
4/4/22 | 4 | |||
3/31/22 | 10-Q, 4 | |||
3/8/22 | ||||
3/1/22 | 10-K | |||
2/16/22 | 4 | |||
1/1/22 | ||||
12/31/21 | 10-K | |||
6/30/21 | 10-Q | |||
1/1/21 | ||||
12/31/20 | 10-K | |||
6/18/14 | 8-K | |||
1/1/14 | ||||
3/31/13 | ||||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/28/24 Marcus & Millichap, Inc. 10-K/A 12/31/23 5:97K 2/27/24 Marcus & Millichap, Inc. 10-K 12/31/23 97:17M 2/28/23 Marcus & Millichap, Inc. 10-K 12/31/22 97:17M 11/04/22 Marcus & Millichap, Inc. 10-Q 9/30/22 79:9.6M |