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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 5/06/22 Marcus & Millichap, Inc. 10-Q 3/31/22 92:8.4M Donnelley … Solutions/FA |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 1.03M 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 10: R1 Cover Page HTML 81K 11: R2 Condensed Consolidated Balance Sheets HTML 145K 12: R3 Condensed Consolidated Balance Sheets HTML 56K (Parenthetical) 13: R4 Condensed Consolidated Statements of Net and HTML 124K Comprehensive Income 14: R5 Condensed Consolidated Statements of Net and HTML 35K Comprehensive Income (Parenthetical) 15: R6 Consolidated Statements of Stockholders' Equity HTML 63K 16: R7 Consolidated Statements of Cash Flows HTML 128K 17: R8 Description of Business, Basis of Presentation and HTML 50K Recent Accounting Pronouncements 18: R9 Property and Equipment, Net HTML 38K 19: R10 Operating Leases HTML 55K 20: R11 Investments in Marketable Debt Securities, HTML 133K Available-for-Sale 21: R12 Acquisitions, Goodwill and Other Intangible Assets HTML 61K 22: R13 Selected Balance Sheet Data HTML 87K 23: R14 Related-Party Transactions HTML 36K 24: R15 Fair Value Measurements HTML 156K 25: R16 Stockholders' Equity HTML 38K 26: R17 Stock-Based Compensation Plans HTML 56K 27: R18 Income Taxes HTML 48K 28: R19 Earnings per Share HTML 58K 29: R20 Commitments and Contingencies HTML 37K 30: R21 Subsequent Events HTML 31K 31: R22 Description of Business, Basis of Presentation and HTML 67K Recent Accounting Pronouncements (Policies) 32: R23 Property and Equipment, Net (Tables) HTML 36K 33: R24 Operating Leases (Tables) HTML 60K 34: R25 Investments in Marketable Debt Securities, HTML 135K Available-for-Sale (Tables) 35: R26 Acquisitions, Goodwill and Other Intangible Assets HTML 61K (Tables) 36: R27 Selected Balance Sheet Data (Tables) HTML 86K 37: R28 Fair Value Measurements (Tables) HTML 150K 38: R29 Stock-Based Compensation Plans (Tables) HTML 52K 39: R30 Income Taxes (Tables) HTML 44K 40: R31 Earnings per Share (Tables) HTML 57K 41: R32 Description of Business and Basis of Presentation HTML 65K - Additional Information (Detail) 42: R33 Property and Equipment, Net - Schedule of Property HTML 41K and Equipment, Net (Detail) 43: R34 Property and Equipment, Net - Additional HTML 33K Information (Detail) 44: R35 Operating Leases - Additional Information (Detail) HTML 30K 45: R36 Operating Leases - Schedule of Operating Lease HTML 38K Cost, Included in Selling, General and Administrative Expense (Detail) 46: R37 Operating Leases - Maturities of lease liabilities HTML 48K (Detail) 47: R38 Operating Leases - Schedule of Supplemental Cash HTML 37K Flow Information and Noncash Activity Related to Operating Leases (Detail) 48: R39 Operating Leases - Schedule of Other Information HTML 33K Related to Operating Leases (Detail) 49: R40 Investments in Marketable Debt Securities, HTML 71K Available-for-Sale - Schedule of Amortized Cost and Fair Value of Marketable Securities, Available-for-Sale, by Type of Security (Detail) 50: R41 Investments in Marketable Debt Securities, HTML 50K Available-for-Sale - Additional Information (Detail) 51: R42 Investments in Marketable Debt Securities, HTML 65K Available-for-Sale - Amortized Cost and Fair Value of Investments in Available for Sale Securities Unrealized Loss Position (Detail) 52: R43 Investments in Marketable Debt Securities, HTML 33K Available-for-Sale - Gross Realized Gains and Losses from Sale of Available for Sale Securities (Detail) 53: R44 Investments in Marketable Debt Securities, HTML 59K Available-for-Sale - Schedule of Amortized Cost and Fair Value of Marketable Securities, Available-for-Sale, by Contractual Maturity (Detail) 54: R45 Acquisitions, Goodwill and Other Intangible Assets HTML 28K - Additional Information (Detail) 55: R46 Acquisitions, Goodwill and Other Intangible Assets HTML 45K - Summary of Goodwill and Intangible Assets (Detail) 56: R47 Acquisitions, Goodwill and Other Intangible Assets HTML 34K - Summary of Goodwill and Intangible Assets (Parenthetical) (Detail) 57: R48 Acquisitions, Goodwill and Other Intangible Assets HTML 37K - Summary of Net Change in Carrying Value of Goodwill (Detail) 58: R49 Acquisitions, Goodwill and Other Intangible Assets HTML 44K - Schedule of Estimated Amortization Expense for Intangible Assets (Detail) 59: R50 Selected Balance Sheet Data - Schedule of Other HTML 45K Assets (Detail) 60: R51 Selected Balance Sheet Data - Schedule of Other HTML 36K Assets (Parenthetical) (Detail) 61: R52 Selected Balance Sheet Data - Summary of Net HTML 36K Change in Carrying Value of MSRs (Detail) 62: R53 Selected Balance Sheet Data - Additional HTML 77K Information (Detail) 63: R54 Selected Balance Sheet Data - Components of HTML 50K Deferred Compensation and Commissions (Detail) 64: R55 Selected Balance Sheet Data - Summary of Net HTML 33K Change in Carrying Value of Assets Held in Rabbi Trust and Deferred Compensation Liability (Detail) 65: R56 Selected Balance Sheet Data - Schedule of Other HTML 38K Liabilities (Detail) 66: R57 Related-Party Transactions - Additional HTML 58K Information (Detail) 67: R58 Fair Value Measurements - Schedule of Assets and HTML 161K Liabilities at Fair Value on Recurring Basis (Detail) 68: R59 Fair Value Measurements - Schedule of Assets and HTML 40K Liabilities at Fair Value on Recurring Basis (Parenthetical) (Detail) 69: R60 Fair Value Measurements - Schedule of HTML 40K Reconciliation of Contingent Consideration Measured at Fair Value on Recurring Basis (Detail) 70: R61 Fair Value Measurements - Schedule of Fair Value HTML 61K Liabilities Measured On Recurring Basis Valuation Techniques (Detail) 71: R62 Fair Value Measurements - Schedule of Fair Value HTML 60K Liabilities Measured On Non-Recurring Basis Valuation Techniques (Detail) 72: R63 Fair Value Measurements - Schedule of Fair Value HTML 32K Liabilities Measured On Non-Recurring Basis Valuation Techniques (Parenthetical) (Detail) 73: R64 Fair Value Measurements - Additional Information HTML 40K (Detail) 74: R65 Stockholders' Equity - Additional Information HTML 61K (Detail) 75: R66 Stock-Based Compensation Plans - 2013 Omnibus HTML 35K Equity Incentive Plan - Award Limitations - Additional Information (Detail) 76: R67 Stock-Based Compensation Plans - 2013 Omnibus HTML 73K Equity Incentive Plan - Additional Information (Detail) 77: R68 Stock-Based Compensation Plans - Outstanding HTML 56K Awards Under 2013 Omnibus Equity Incentive Plan (Detail) 78: R69 Stock-Based Compensation Plans - Employee Stock HTML 55K Purchase Plan - Additional Information (Detail) 79: R70 Stock-Based Compensation Plans - Amendments to HTML 43K Restricted Stock and SARs - Additional Information (Detail) 80: R71 Stock-Based Compensation Plans - Stock-Based HTML 36K Compensation Expense (Detail) 81: R72 Income Taxes - Components of Provision for Income HTML 59K Taxes and Income before Provision for Income Taxes (Detail) 82: R73 Income Taxes - Additional Information (Detail) HTML 30K 83: R74 Earnings per Share - Computation of Basic and HTML 87K Diluted Earnings Per Share, Including Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) 84: R75 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) 85: R76 Commitments and Contingencies - Additional HTML 80K Information Credit Agreement (Detail) 86: R77 Commitments and Contingencies - Additional HTML 36K Information Other (Detail) 87: R78 Subsequent Events - Additional Information HTML 34K (Detail) 90: XML IDEA XML File -- Filing Summary XML 177K 88: XML XBRL Instance -- d350636d10q_htm XML 2.25M 89: EXCEL IDEA Workbook of Financial Reports XLSX 108K 6: EX-101.CAL XBRL Calculations -- mmi-20220331_cal XML 197K 7: EX-101.DEF XBRL Definitions -- mmi-20220331_def XML 771K 8: EX-101.LAB XBRL Labels -- mmi-20220331_lab XML 1.41M 9: EX-101.PRE XBRL Presentations -- mmi-20220331_pre XML 1.13M 5: EX-101.SCH XBRL Schema -- mmi-20220331 XSD 222K 91: JSON XBRL Instance as JSON Data -- MetaLinks 468± 713K 92: ZIP XBRL Zipped Folder -- 0001193125-22-143807-xbrl Zip 198K
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 ☐ |
March 31, 2022 (Unaudited) |
December 31, 2021 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | i 315,695 | $ | i 382,140 | ||||
Commissions receivable, net |
i 13,854 | i 17,230 | ||||||
Prepaid expenses |
i 10,373 | i 13,220 | ||||||
Marketable debt securities, available-for-sale |
i 218,988 | i 183,868 | ||||||
Advances and loans, net |
i 5,889 | i 6,403 | ||||||
Other assets |
i 6,027 | i 5,270 | ||||||
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|
|
|||||
Total current assets |
i 570,826 | i 608,131 | ||||||
Property and equipment, net |
i 23,249 | i 23,192 | ||||||
Operating lease right-of-use |
i 77,928 | i 81,528 | ||||||
Marketable debt securities, available-for-sale |
i 52,980 | i 112,610 | ||||||
Assets held in rabbi trust |
i 10,916 | i 11,508 | ||||||
Deferred tax assets, net |
i 33,470 | i 33,736 | ||||||
Goodwill and other intangible assets, net |
i 59,434 | i 48,105 | ||||||
Advances and loans, net |
i 139,087 | i 113,242 | ||||||
Other assets |
i 12,273 | i 13,146 | ||||||
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Total assets |
$ | i 980,163 | $ | i 1,045,198 | ||||
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Liabilities and stockholders’ equity |
||||||||
Current liabilities: |
||||||||
Accounts payable and other liabilities |
$ | i 24,388 | $ | i 24,271 | ||||
Deferred compensation and commissions |
i 54,994 | i 114,685 | ||||||
Dividends payable |
i 50,694 | i — | ||||||
Income tax payable |
i 28,042 | i 17,853 | ||||||
Operating lease liabilities |
i 18,276 | i 18,973 | ||||||
Accrued bonuses and other employee related expenses |
i 15,863 | i 49,848 | ||||||
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|||||
Total current liabilities |
i 192,257 | i 225,630 | ||||||
Deferred compensation and commissions |
i 45,603 | i 53,536 | ||||||
Operating lease liabilities |
i 56,307 | i 58,334 | ||||||
Other liabilities |
i 10,607 | i 11,394 | ||||||
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|||||
Total liabilities |
i 304,774 | i 348,894 | ||||||
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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 none
/ / / at March 31, 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 39,795,399 / and i i 39,692,373 /
at March 31, 2022 and December 31, 2021, respectively |
i 4 | i 4 | ||||||
Additional paid-in capital |
i 122,782 | i 121,844 | ||||||
Retained earnings |
i 554,193 | i 573,546 | ||||||
Accumulated other comprehensive income (loss) |
( i 1,590 | ) | i 910 | |||||
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|
|||||
Total stockholders’ equity |
i 675,389 | i 696,304 | ||||||
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|
|||||
Total liabilities and stockholders’ equity |
$ | i 980,163 | $ | i 1,045,198 | ||||
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Three Months Ended March 31, |
||||||||
2022 | 2021 | |||||||
Revenues: |
||||||||
Real estate brokerage commissions |
$ | i 286,909 | $ | i 162,796 | ||||
Financing fees |
i 26,453 | i 17,843 | ||||||
Other revenues |
i 6,102 | i 3,338 | ||||||
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|||||
Total revenues |
i 319,464 | i 183,977 | ||||||
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|||||
Operating expenses: |
||||||||
Cost of services |
i 196,768 | i 109,103 | ||||||
Selling, general and administrative |
i 74,535 | i 51,677 | ||||||
Depreciation and amortization |
i 3,911 | i 2,997 | ||||||
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|||||
Total operating expenses |
i 275,214 | i 163,777 | ||||||
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|
|||||
Operating income |
i 44,250 | i 20,200 | ||||||
Other income, net |
i 450 | i 1,044 | ||||||
Interest expense |
( i 160 | ) | ( i 146 | ) | ||||
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|
|||||
Income before provision for income taxes |
i 44,540 | i 21,098 | ||||||
Provision for income taxes |
i 11,757 | i 6,086 | ||||||
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|
|||||
Net income |
$ | i 32,783 | $ | i 15,012 | ||||
Other comprehensive (loss) income: |
||||||||
Marketable debt securities, available-for-sale: |
||||||||
Change in net unrealized gains/losses |
( i 2,357 | ) | ( i 621 | ) | ||||
Less: reclassification adjustment for net gains included in other income, net |
( i 84 | ) | i — | |||||
|
|
|
|
|||||
Net change, net of tax of $ i 838 and $( i 215)
for the three months ended March 31, 2022 and 2021, respectively |
( i 2,441 | ) | ( i 621 | ) | ||||
Foreign currency translation gain (loss), net of tax of $ i i 0
/ for each of the three months ended March 31, 2022 and 2021, respectively |
( i 59 | ) | ( i 113 | ) | ||||
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|
|
|||||
Total other comprehensive (loss) income |
( i 2,500 | ) | ( i 734 | ) | ||||
|
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|
|||||
Comprehensive income |
$ | i 30,283 | $ | i 14,278 | ||||
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Earnings per share: |
||||||||
Basic |
$ | i 0.82 | $ | i 0.38 | ||||
Diluted |
$ | i 0.81 | $ | i 0.37 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
i 39,989 | i 39,757 | ||||||
Diluted |
i 40,474 | i 40,124 |
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital |
Stock Notes Receivable From Employees |
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 — | $ | i 573,546 | $ | i 910 | $ | i 696,304 | ||||||||||||||||||||
Net and comprehensive income (loss) |
— | i — | — | i — | i — | i — | i 32,783 | ( i 2,500 | ) | i 30,283 | ||||||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||||||
Stock-based compensation |
i — | i — | i — | i — | i 3,856 | i — | i — | i — | i 3,856 | |||||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
i — | i — | i 167,263 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
i — | i — | ( i 64,237 | ) | i — | ( i 2,918 | ) | i — | i — | i — | ( i 2,918 | ) | ||||||||||||||||||||||||
Dividends on common stock |
— | — | — | — | — | — | ( i 52,136 | ) | — | ( i 52,136 | ) | |||||||||||||||||||||||||
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Balance as of March 31, 2022 |
i — | $ | i — | i 39,795,399 | $ | i 4 | $ | i 122,782 | $ | i — | $ | i 554,193 | $ | ( i 1,590 | ) | $ | i 675,389 | |||||||||||||||||||
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Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||
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, 2020 |
i — | $ | i — | i 39,401,976 | $ | i 4 | $ | i 113,182 | $ | i — | $ | i 431,076 | $ | i 2,574 | $ | i 546,836 | ||||||||||||||||||||
Net and comprehensive income |
— | i — | — | i — | i — | i — | i 15,012 | ( i 734 | ) | i 14,278 | ||||||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||||||
Stock-based compensation |
i — | i — | i — | i — | i 2,288 | i — | i — | i — | i 2,288 | |||||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
i — | i — | i 149,117 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
i — | i — | ( i 50,127 | ) | i — | ( i 1,733 | ) | i — | i — | i — | ( i 1,733 | ) | ||||||||||||||||||||||||
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Balance as of March 31, 2021 |
i — | $ | i — | i 39,500,966 | $ | i 4 | $ | i 113,737 | $ | i — | $ | i 446,088 | $ | i 1,840 | $ | i 561,669 | ||||||||||||||||||||
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Three Months Ended March 31, |
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2022 | 2021 | |||||||
Cash flows from operating activities |
||||||||
Net income |
$ | i 32,783 | $ | i 15,012 | ||||
Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
Depreciation and amortization |
i 3,911 | i 2,997 | ||||||
Noncash lease expense |
i 5,961 | i 6,009 | ||||||
Credit loss recovery |
( i 167 | ) | ( i 146 | ) | ||||
Stock-based compensation |
i 3,856 | i 2,288 | ||||||
Deferred taxes, net |
i 1,104 | i 909 | ||||||
Unrealized foreign exchange (gains) losses |
( i 151 | ) | ( i 157 | ) | ||||
Net realized gains on marketable debt securities, available-for-sale |
( i 113 | ) | ( i 1 | ) | ||||
Other non-cash items |
i 11 | ( i 49 | ) | |||||
Changes in operating assets and liabilities: |
||||||||
Commissions receivable |
i 3,430 | i 1,776 | ||||||
Prepaid expenses |
i 2,850 | i 74 | ||||||
Advances and loans |
( i 25,084 | ) | ( i 4,440 | ) | ||||
Other assets |
( i 794 | ) | ( i 1,187 | ) | ||||
Accounts payable and other liabilities |
i 1,308 | i 2,071 | ||||||
Income tax receivable/payable |
i 10,189 | i 4,786 | ||||||
Accrued bonuses and other employee related expenses |
( i 33,990 | ) | ( i 9,362 | ) | ||||
Deferred compensation and commissions |
( i 65,384 | ) | ( i 33,781 | ) | ||||
Operating lease liabilities |
( i 5,031 | ) | ( i 5,275 | ) | ||||
Other liabilities |
( i 2,224 | ) | ( i 1,626 | ) | ||||
Net cash flows used in operating activities |
( i 67,535 | ) | ( i 20,102 | ) | ||||
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 40,551 | ) | ( i 81,264 | ) | ||||
Proceeds from sales and maturities of marketable debt securities, available-for-sale |
i 61,970 | i 85,065 | ||||||
Issuances of employee notes receivable |
( i 71 | ) | ( i 40 | ) | ||||
Payments received on employee notes receivable |
i 18 | i 250 | ||||||
Purchase of property and equipment |
( i 1,883 | ) | ( i 1,099 | ) | ||||
Net cash flows provided by investing activities |
i 6,983 | i 3,141 | ||||||
Cash flows from financing activities |
||||||||
Taxes paid related to net share settlement of stock-based awards |
( i 2,918 | ) | ( i 1,733 | ) | ||||
Principal payments on stock appreciation rights liability |
( i 1,761 | ) | ( i 1,481 | ) | ||||
Principal payments on contingent and deferred consideration |
( i 1,264 | ) | ( i 1,302 | ) | ||||
Net cash flows used in financing activities |
( i 5,943 | ) | ( i 4,516 | ) | ||||
Effect of currency exchange rate changes on cash and cash equivalents |
i 50 | i 33 | ||||||
Net (decrease) in cash and cash equivalents |
( i 66,445 | ) | ( i 21,444 | ) | ||||
Cash and cash equivalents at beginning of period |
i 382,140 | i 243,152 | ||||||
Cash and cash equivalents at end of period |
$ | i 315,695 | $ | i 221,708 | ||||
Supplemental disclosures of cash flow information |
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Interest paid during the period |
$ | i 499 | $ | i 697 | ||||
Income taxes paid, net |
$ | i 464 | $ | i 339 | ||||
1. |
Description of Business, Basis of Presentation and Recent Accounting Pronouncements |
2. |
Property and Equipment, Net |
March 31, 2022 |
December 31, 2021 |
|||||||
Computer software and hardware equipment |
$ | i 35,404 | $ | i 33,819 | ||||
Furniture, fixtures and equipment |
i 24,817 | i 24,511 | ||||||
Less: accumulated depreciation and amortization |
( i 36,972 | ) | ( i 35,138 | ) | ||||
$ | i 23,249 | $ | i 23,192 | |||||
3. |
Operating Leases |
Three Months Ended March 31, |
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2022 | 2021 | |||||||
Operating lease cost: |
||||||||
Lease cost (1) |
$ | i 6,544 | $ | i 6,589 | ||||
Variable lease cost (2) |
i 1,363 | i 1,400 | ||||||
Sublease income |
( i 234 | ) | ( i 33 | ) | ||||
$ | i 7,673 | $ | i 7,956 | |||||
(1) |
Includes short-term lease cost and ROU asset amortization. |
(2) |
Primarily relates to common area maintenance, property taxes, insurance, utilities and parking. |
March 31, 2022 | ||||
Remainder of 2022 |
$ | i 15,484 | ||
2023 |
i 18,311 | |||
2024 |
i 15,829 | |||
2025 |
i 13,320 | |||
2026 |
i 9,716 | |||
Thereafter |
i 7,027 | |||
Total future minimum lease payments |
i 79,687 | |||
Less imputed interest |
( i 5,104 | ) | ||
Present value of operating lease liabilities |
$ | i 74,583 | ||
Three Months Ended March 31, |
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2022 | 2021 | |||||||
Operating cash flow information: |
||||||||
Cash paid for amounts included in the measurement of operating lease liabilities |
$ | i 5,589 | $ | i 5,862 | ||||
Noncash activity: |
||||||||
ROU assets obtained in exchange for operating lease liabilities |
$ | i 2,435 | $ | i 3,004 | ||||
Tenant improvements owned by lessor related to ROU assets (1) |
$ | i 66 | $ | i 55 |
(1) |
Reclassification from other assets current. |
March 31, 2022 | December 31, 2021 | |||||||
Weighted average remaining operating lease term |
i 4.44 years | i 4.57 years | ||||||
Weighted average discount rate |
i 2.9 | % | i 2.9 | % |
4. |
Investments in Marketable Debt Securities, Available for Sale |
March 31, 2022 | ||||||||||||||||||||
Amortized Cost |
Allowance for Credit Losses |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
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Short-term investments: |
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U.S. treasuries |
$ | i 101,141 | $ | i — | $ | i — | $ | ( i 849 | ) | $ | i 100,292 | |||||||||
Corporate debt |
i 118,271 | i — | i 7 | ( i 193 | ) | i 118,085 | ||||||||||||||
Asset-backed securities (“ABS”) and other |
i 603 | i — | i 8 | i — | i 611 | |||||||||||||||
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|||||||||||
$ |
i 220,015 |
|
$ | i — | $ | i 15 | $ | ( i 1,042 | ) | $ | i 218,988 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Long-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ | i 12,420 | $ | i — | $ | i 9 | $ | ( i 311 | ) | $ | i 12,118 | |||||||||
U.S. government sponsored entities |
i 674 | i — | i — | ( i 18 | ) | i 656 | ||||||||||||||
Corporate debt |
i 34,300 | i — | i 147 | ( i 1,141 | ) | i 33,306 | ||||||||||||||
Asset-backed securities (“ABS”) and other |
i 7,125 | i — | i 5 | ( i 230 | ) | i 6,900 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | i 54,519 | $ | i — | $ | i 161 | $ | ( i 1,700 | ) | $ | i 52,980 | ||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2021 | ||||||||||||||||||||
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 | ||||||||||
|
|
|
|
|
|
|
|
|
|
March 31, 2022 | ||||||||||||||||||||||||
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 111,232 | $ | ( i 1,160 | ) | i — | i — | $ | i 111,232 | $ | ( i 1,160 | ) | ||||||||||||
U.S. government sponsored entities |
i 549 | ( i 8 | ) | i 105 | ( i 10 | ) | i 654 | ( i 18 | ) | |||||||||||||||
Corporate debt |
i 137,510 | ( i 1,277 | ) | i 618 | ( i 57 | ) | i 138,128 | ( i 1,334 | ) | |||||||||||||||
ABS and other |
i 6,181 | ( i 230 | ) | i — | i — | i 6,181 | ( i 230 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | i 255,472 | $ | ( i 2,675 | ) | $ | i 723 | $ | ( i 67 | ) | $ | i 256,195 | $ | ( i 2,742 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 | ||||||||||||||||||||||||
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 March 31, |
||||||||
2022 | 2021 | |||||||
Gross realized gains (1) |
$ | i 113 | $ | i 1 | ||||
|
|
|
|
|||||
Gross realized losses (1) |
$ | i — | $ | i — | ||||
|
|
|
|
(1) |
Recorded in other income, 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. |
March 31, 2022 | December 31, 2021 | |||||||||||||||
Amortized Cost |
Fair Value | Amortized Cost |
Fair Value | |||||||||||||
Due in one year or less |
$ | i 220,015 | $ | i 218,988 | $ | i 183,915 | $ | i 183,868 | ||||||||
Due after one year through five years |
i 36,442 | i 35,478 | i 96,035 | i 96,257 | ||||||||||||
Due after five years through ten years |
i 12,978 | i 12,582 | i 11,129 | i 11,601 | ||||||||||||
Due after ten years |
i 5,099 | i 4,920 | i 4,694 | i 4,752 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | i 274,534 | $ | i 271,968 | $ | i 295,773 | $ | i 296,478 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average contractual maturity |
i 1.4 years | i 1.5 years |
5. |
Acquisitions, Goodwill and Other Intangible Assets |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||
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 11,111 | ) | i 21,333 | i 23,974 | ( i 9,940 | ) | i 14,034 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | i 70,545 | $ | ( i 11,111 | ) | $ | i 59,434 | $ | i 58,045 | $ | ( i 9,940 | ) | $ | i 48,105 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Total weighted average amortization period was i 5.2 years and i 4.4 years as of March 31, 2022 and December 31,
2021, respectively. |
Three Months Ended March 31, |
||||||||
2022 | 2021 | |||||||
Beginning balance |
$ | i 34,071 | $ | i 33,375 | ||||
Additions from acquisitions (1) |
i 4,030 | i 671 | ||||||
Impairment losses |
i — | i — | ||||||
|
|
|
|
|||||
Ending balance |
$ | i 38,101 | $ | i 34,046 | ||||
|
|
|
|
(1) |
The 2021 addition represents a measurement period adjustment for an acquisition made in 2020. |
March 31, 2022 | ||||
Remainder of 2022 |
$ | i 3,512 | ||
2023 |
i 4,617 | |||
2024 |
i 4,101 | |||
2025 |
i 3,881 | |||
2026 |
i 2,156 | |||
Thereafter |
i 3,066 | |||
|
|
|||
$ | i 21,333 | |||
|
|
6. |
Selected Balance Sheet Data |
Current | Non-Current |
|||||||||||||||
March 31, 2022 |
December 31, 2021 |
March 31, 2022 |
December 31, 2021 |
|||||||||||||
Mortgage servicing rights (“MSRs”), net of amortization |
$ | i — | $ | i — | $ | i 951 | $ | i 1,855 | ||||||||
Security deposits |
i — | i — | i 1,484 | i 1,395 | ||||||||||||
Employee notes receivable (1) |
i 67 | i 40 | i — | i — | ||||||||||||
Securities, held-to-maturity (2) |
i — | i — | i 9,500 | i 9,500 | ||||||||||||
Customer trust accounts and other |
i 5,960 | i 5,230 | i 338 | i 396 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | i 6,027 | $ | i 5,270 | $ | i 12,273 | $ | i 13,146 | |||||||||
|
|
|
|
|
|
|
|
(1) |
Reduction of accrued bonuses and other employee related expenses in settlement of employee notes receivable were $ i 0 and $ i 10
for the three months ended March 31, 2022 and March 31, 2021, respectively. See Note 7 – “Related-Party Transactions” for additional information. |
(2) |
Securities,
held-to-maturity, i 1-year treasury rate. |
Three Months Ended March 31, |
||||||||
2022 | 2021 | |||||||
Beginning balance |
$ | i 1,855 | $ | i 1,897 | ||||
Additions |
i — | i 303 | ||||||
Amortization |
( i 904 | ) | ( i 138 | ) | ||||
|
|
|
|
|||||
Ending balance |
$ | i 951 | $ | i 2,062 | ||||
|
|
|
|
Current | Non-Current |
|||||||||||||||
March 31, 2022 |
December 31, 2021 |
March 31, 2022 |
December 31, 2021 |
|||||||||||||
Stock appreciation rights (“SARs”) liability (1) |
$ | i 2,323 | $ | i 2,241 | $ | i 12,731 | $ | i 14,918 | ||||||||
Commissions payable to investment sales and financing professionals |
i 51,195 | i 110,769 | i 25,082 | i 31,697 | ||||||||||||
Deferred compensation liability (1) |
i 749 | i 1,080 | i 7,790 | i 6,921 | ||||||||||||
Other |
i 727 | i 595 | i — | i — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | i 54,994 | $ | i 114,685 | $ | i 45,603 | $ | i 53,536 | |||||||||
|
|
|
|
|
|
|
|
(1) |
The SARs and deferred compensation liability become subject to payout as a result of a participant no longer being considered 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 March 31, |
||||||||
2022 | 2021 | |||||||
Increase (Decrease) in the carrying value of the assets held in the rabbi trust (1) |
$ | ( i 525 | ) | $ | i 333 | |||
|
|
|
|
|||||
Increase (Decrease) in the net carrying value of the deferred compensation obligation (2) |
$ | ( i 532 | ) | $ | i 260 | |||
|
|
|
|
(1) |
Recorded in other 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. |
Non-Current |
||||||||
March 31, 2022 |
December 31, 2021 |
|||||||
Deferred consideration (1) |
$ | i 3,300 | $ | i 4,689 | ||||
Contingent consideration (1) |
i 5,782 | i 6,631 | ||||||
Dividends Payable |
i 1,443 | i — | ||||||
Other |
i 82 | i 74 | ||||||
|
|
|
|
|||||
$ | i 10,607 | $ | i 11,394 | |||||
|
|
|
|
(1) |
Includes a measurement period adjustment in 2021 and a settlement of deferred consideration made during the three months ended March 31, 2022 and 2021, which represents a noncash investing activity. See Note 5 – “Acquisitions, Goodwill and Other Intangible Assets” for additional information. |
7 . |
Related-Party Transactions |
8. |
Fair Value Measurements |
• | Level 1: |
• | Level 2: |
• | Level 3: |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||
Assets held in rabbi trust |
$ | i 10,916 | $ | i — | $ | i 10,916 | $ | i — | $ | i 11,508 | $ | i — | $ | i 11,508 | $ | i — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cash equivalents (1) |
||||||||||||||||||||||||||||||||
Commercial paper |
$ | i 32,223 | $ | i — | $ | i 32,223 | $ | i — | $ | i 8,948 | $ | i — | $ | i 8,948 | $ | i — | ||||||||||||||||
Money market funds |
i 51,403 | i 51,403 | i — | i — | i 210,985 | i 210,985 | i — | i — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
$ | i 83,626 | $ | i 51,403 | $ | i 32,223 | $ | i — | $ | i 219,933 | $ | i 210,985 | $ | i 8,948 | $ | i — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Marketable debt securities, available-for-sale: |
||||||||||||||||||||||||||||||||
Short-term investments: |
||||||||||||||||||||||||||||||||
U.S. treasuries |
$ | i 100,292 | $ | i 100,292 | $ | i — | $ | i — | $ | i 35,733 | $ | i 35,733 | $ | i — | $ | i — | ||||||||||||||||
U.S. government sponsored entities |
i — | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
Corporate debt |
i 118,085 | i — | i 118,085 | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
ABS and other |
i 611 | i — | i 611 | i — | i 148,135 | i — | i 148,135 | i — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
$ | i 218,988 | $ | i 100,292 | $ | i 118,696 | $ | i — | $ | i 183,868 | $ | i 35,733 | $ | i 148,135 | $ | i — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Long-term investments: |
||||||||||||||||||||||||||||||||
U.S. treasuries |
$ | i 12,118 | $ | i 12,118 | $ | i — | $ | i — | $ | i 70,767 | $ | i 70,767 | $ | i — | $ | i — | ||||||||||||||||
U.S. government sponsored entities |
i 656 | i — | i 656 | i — | i 745 | i — | i 745 | i — | ||||||||||||||||||||||||
Corporate debt |
i 33,306 | i — | i 33,306 | i — | i 34,013 | i — | i 34,013 | i — | ||||||||||||||||||||||||
ABS and other |
i 6,900 | i — | i 6,900 | i — | i 7,085 | i — | i 7,085 | i — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
$ | i 52,980 | i 12,118 | $ | i 40,862 | $ | i — | $ | i 112,610 | $ | i 70,767 | $ | i 41,843 | $ | i — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||
Contingent consideration (2) |
$ | i 9,363 | $ | i — | $ | i — | $ | i 9,363 | $ | i 9,312 | $ | i — | $ | i — | $ | i 9,312 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Deferred consideration (2) |
$ | i 8,371 | $ | i — | $ | i 8,371 | $ | i — | $ | i 9,801 | $ | i — | $ | i 9,801 | $ | i — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Deferred compensation liability |
$ | i 8,539 | $ | i 8,539 | $ | i — | $ | i — | $ | i 8,001 | $ | i 8,001 | $ | i — | $ | i — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Included in cash and cash equivalents on the accompanying condensed consolidated balance sheets. |
(2) |
$ i 3,581 and $ i 2,681
of Contingent consideration and $ i 5,071 and $ i 5,112
of Deferred consideration are included in Accounts payable and other liabilities as of March 31, 2022 and December 31, 2021, respectively. |
Three Months Ended March 31, |
||||||||
2022 | 2021 | |||||||
Beginning balance |
$ | i 9,312 | $ | i 5,572 | ||||
Contingent consideration in connection with acquisitions (1) |
i — | ( i 100 | ) | |||||
Change in fair value of contingent consideration |
i 51 | ( i 171 | ) | |||||
Payments of contingent consideration |
i — | i — | ||||||
|
|
|
|
|||||
Ending balance |
$ | i 9,363 | $ | i 5,301 | ||||
|
|
|
|
(1) |
Contingent consideration in connection with acquisitions represents a noncash investing activity. Three months ended March 31, 2021 relates to a measurement period adjustment. See Note 5 – “Acquisitions, Goodwill and Other Intangible Assets” for additional information. |
Fair Value at March 31, 2022 |
Valuation Technique |
Unobservable inputs |
Range (Weighted Average) (1) |
|||||||||
Contingent consideration |
$ | i 9,363 | Discounted cash flow | Expected life of cash flows | i 1.2- i 5.6 years ( i 3.1 y ears) |
|||||||
Discount rate | i 4.0%- i 4.6% ( i 4.3%) |
|||||||||||
Probability of achievement | i 22.2%- i 100.0% ( i 96.6%) |
|||||||||||
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. |
Fair Value at March 31, 2022 |
Valuation Technique |
Unobservable inputs |
Range (Weighted Average) (1) |
|||||||||
MSRs |
$ | i 1,967 | Discounted cash flow | Constant prepayment rates | i 0.0%- i 20.0% ( i 10.0%) |
|||||||
Constant default rate | i 0.28%- i 5.08% ( i 1.28%) |
|||||||||||
Loss severity | i 26.2%- i 31.4% ( i 27.95%) |
|||||||||||
Discount rate | i 10.0%- i 10.0%
( i 10.0%) |
|||||||||||
Fair Value at December 31, 2021 |
Valuation Technique |
Unobservable inputs |
Range (Weighted Average) (1) |
|||||||||
MSRs |
$ | i 2,332 | Discounted cash flow | Constant prepayment rates | i 0.0%- i 20.0%
( i 10.0%) |
|||||||
Constant default rate | i 0.3%- i 4.9% ( i 1.2%) |
|||||||||||
Loss severity | i 26.2%- i 31.4%
( i 28.0%) |
|||||||||||
Discount rate | i 10.0%- i 10.0%
( i 10.0%) |
(1) |
Weighted average is based on the i i 10 / %
constant prepayment rate scenario which the Company uses as the reported fair value. |
9. |
Stockholders’ Equity |
10. |
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 780,997 | $ | i 47.29 | |||||
Vested (2) |
( i 176,227 | ) | $ | i 36.84 | ||||
Forfeited/canceled |
( i 7,166 | ) | $ | i 36.38 | ||||
|
|
|||||||
Nonvested shares at March 31, 2022 (1) |
i 1,578,540 | $ | i 41.85 | |||||
|
|
|||||||
Unrecognized stock-based compensation expense as of March 31, 2022 |
$ | i 61,517 | ||||||
|
|
|||||||
Unrecognized compensation expense is expected to be recognized over a weighted-average period (years) of approximately |
i 4.22 | |||||||
|
|
|||||||
Weighted average remaining vesting period (years) as of March 31, 2022 |
i 4.22 | |||||||
|
|
(1) |
Nonvested RSUs will be settled through the issuance of new shares of common stock. |
(2) |
Includes vested shares delivered subsequent to March 31, 2022. |
Three Months Ended March 31, |
||||||||
2022 | 2021 | |||||||
ESPP |
$ | i 56 | $ | i 50 | ||||
RSUs and RSAs |
i 3,800 | i 2,238 | ||||||
|
|
|
|
|||||
$ | i 3,856 | $ | i 2,288 | |||||
|
|
|
|
11. |
Income Taxes |
Three Months Ended March 31, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
Amount | Rate | Amount | Rate | |||||||||||||
Income tax expense at the federal statutory rate |
$ | i 9,353 | i 21.0 | % | $ | i 4,431 | i 21.0 | % | ||||||||
State income tax expense, net of federal benefit |
i 2,033 | i 4.6 | % | i 1,048 | i 5.0 | % | ||||||||||
(Windfall) shortfall tax benefits, net related to stock-based compensation |
( i 306 | ) | ( i 0.7 | )% | ( i 27 | ) | ( i 0.1 | )% | ||||||||
Change in valuation allowance |
( i 104 | ) | ( i 0.2 | )% | i 180 | i 0.9 | % | |||||||||
Permanent and other items (1) |
i 781 | i 1.7 | % | i 454 | i 2.0 | % | ||||||||||
|
|
|
|
|
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$ | i 11,757 | i 26.4 | % | $ | i 6,086 | i 28.8 | % | |||||||||
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(1) |
Permanent items relate principally to compensation charges, qualified transportation fringe benefits and meals and entertainment. |
12. |
Earnings per Share |
Three Months Ended March 31, |
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2022 | 2021 | |||||||
Numerator (Basic and Diluted): |
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Net income |
$ | i 32,783 | $ | i 15,012 | ||||
Change in value for stock settled consideration |
( i 63 | ) | i 12 | |||||
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Adjusted net income |
$ | i 32,720 | $ | i 15,024 | ||||
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Denominator: |
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Basic |
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Weighted average common shares issued and outstanding |
i 39,721 | i 39,432 | ||||||
Deduct: Unvested RSAs (1) |
( i 13 | ) | ( i 17 | ) | ||||
Add: Fully vested DSUs (2) |
i 281 | i 342 | ||||||
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Weighted average common shares outstanding |
i 39,989 | i 39,757 | ||||||
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Basic earnings per common share |
$ | i 0.82 | $ | i 0.38 | ||||
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Diluted |
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Weighted average common shares outstanding from above |
i 39,989 | i 39,757 | ||||||
Add: Dilutive effect of RSUs, RSAs & ESPP |
i 396 | i 208 | ||||||
Add: Contingently issuable shares (3) |
i 89 | i 159 | ||||||
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Weighted average common shares outstanding |
i 40,474 | i 40,124 | ||||||
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Diluted earnings per common share |
$ | i 0.81 | $ | i 0.37 | ||||
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Antidilutive shares excluded from diluted earnings per common share (4) |
i 778 | i 230 | ||||||
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(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 10 – “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 10 – “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. |
13. |
Commitments and Contingencies |
14. |
Subsequent Events |
• | Properties priced less than $1 million; |
• | Private client market: |
• | Middle market: |
• | Larger transaction market: |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||
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 |
206 | $ | 128 | $ | 5,787 | 227 | $ | 149 | $ | 6,138 | (21 | ) | $ | (21 | ) | $ | (351 | ) | ||||||||||||||||||
Private Client Market ($1 - <$10 million) |
1,606 | 5,696 | 161,031 | 1,200 | 3,668 | 105,423 | 406 | 2,028 | 55,608 | |||||||||||||||||||||||||||
Middle Market ($10 - <$20 million) |
184 | 2,503 | 46,760 | 78 | 1,067 | 20,601 | 106 | 1,436 | 26,159 | |||||||||||||||||||||||||||
Larger Transaction Market (≥$20 million) |
141 | 8,878 | 73,331 | 83 | 3,980 | 30,634 | 58 | 4,898 | 42,697 | |||||||||||||||||||||||||||
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2,137 | $ | 17,205 | $ | 286,909 | 1,588 | $ | 8,864 | $ | 162,796 | 549 | $ | 8,341 | $ | 124,113 | ||||||||||||||||||||||
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Three Months Ended March 31, |
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Real Estate Brokerage |
2022 | 2021 | ||||||
Average Number of Investment Sales Professionals |
1,856 | 1,959 | ||||||
Average Number of Transactions per Investment Sales Professional |
1.15 | 0.81 | ||||||
Average Commission per Transaction |
$ | 134,258 | $ | 102,517 | ||||
Average Commission Rate |
1.67 | % | 1.84 | % | ||||
Average Transaction Size (in thousands) |
$ | 8,051 | $ | 5,582 | ||||
Total Number of Transactions |
2,137 | 1,588 | ||||||
Total Sales Volume (in millions) |
$ | 17,205 | $ | 8,864 | ||||
Three Months Ended March 31, |
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Financing (1) |
2022 | 2021 | ||||||
Average Number of Financing Professionals |
84 | 86 | ||||||
Average Number of Transactions per Financing Professional |
6.19 | 5.74 | ||||||
Average Fee per Transaction |
$ | 43,144 | $ | 30,464 | ||||
Average Fee Rate |
0.84 | % | 0.93 | % | ||||
Average Transaction Size (in thousands) |
$ | 5,115 | $ | 3,263 | ||||
Total Number of Transactions |
520 | 494 | ||||||
Total Financing Volume (in millions) |
$ | 2,660 | $ | 1,612 |
(1) |
Operating metrics exclude certain financing fees not directly associated to transactions. |
Three Months Ended March 31, 2022 |
Percentage of Revenue |
Three Months Ended March 31, 2021 |
Percentage of Revenue |
Change | ||||||||||||||||||||
Dollar | Percentage | |||||||||||||||||||||||
Revenues: |
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Real estate brokerage commissions |
$ | 286,909 | 89.8 | % | $ | 162,796 | 88.5 | % | $ | 124,113 | 76.2 | % | ||||||||||||
Financing fees |
26,453 | 8.3 | 17,843 | 9.7 | 8,610 | 48.3 | % | |||||||||||||||||
Other revenues |
6,102 | 1.9 | 3,338 | 1.8 | 2,764 | 82.8 | % | |||||||||||||||||
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Total revenues |
319,464 | 100.0 | 183,977 | 100.0 | 135,487 | 73.6 | % | |||||||||||||||||
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Operating expenses: |
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Cost of services |
196,768 | 61.6 | 109,103 | 59.3 | 87,665 | 80.4 | % | |||||||||||||||||
Selling, general and administrative |
74,535 | 23.3 | 51,677 | 28.1 | 22,858 | 44.2 | % | |||||||||||||||||
Depreciation and amortization |
3,911 | 1.2 | 2,997 | 1.6 | 914 | 30.5 | % | |||||||||||||||||
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Total operating expenses |
275,214 | 86.1 | 163,777 | 89.0 | 111,437 | 68.0 | % | |||||||||||||||||
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Operating income |
44,250 | 13.8 | 20,200 | 11.0 | 24,050 | 119.1 | % | |||||||||||||||||
Other income, net |
450 | 0.1 | 1,044 | 0.6 | (594 | ) | (56.9 | )% | ||||||||||||||||
Interest expense |
(160 | ) | 0.0 | (146 | ) | (0.1 | ) | (14 | ) | 9.6 | % | |||||||||||||
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Income before provision for income taxes |
44,540 | 13.9 | 21,098 | 11.5 | 23,442 | 111.1 | % | |||||||||||||||||
Provision for income taxes |
11,757 | 3.7 | 6,086 | 3.3 | 5,671 | 93.2 | % | |||||||||||||||||
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Net income |
$ | 32,783 | 10.3 | % | $ | 15,012 | 8.2 | % | $ | 17,771 | 118.4 | % | ||||||||||||
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Adjusted EBITDA (1) |
$ | 51,852 | 16.2 | % | $ | 25,695 | 14.0 | % | $ | 26,157 | 101.8 | % | ||||||||||||
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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.” |
Three Months Ended March 31, |
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2022 | 2021 | |||||||
Net income |
$ | 32,783 | $ | 15,012 | ||||
Adjustments: |
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Interest income and other (1) |
(615 | ) | (531 | ) | ||||
Interest expense |
160 | 146 | ||||||
Provision for income taxes |
11,757 | 6,086 | ||||||
Depreciation and amortization |
3,911 | 2,997 | ||||||
Stock-based compensation |
3,856 | 2,288 | ||||||
Non-cash MSR activity (2) |
— | (303 | ) | |||||
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Adjusted EBITDA (3) |
$ | 51,852 | $ | 25,695 | ||||
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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 increase in Adjusted EBITDA for the three months ended March 31, 2022 compared to the same period in 2021 is primarily due to a lower proportion of operating expenses compared to total revenues. |
Three Months Ended March 31, |
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2022 | 2021 | |||||||
Net cash flows from operating activities |
$ | (67,535 | ) | $ | (20,102) | |||
Net cash flows from investing activities |
6,983 | 3,141 | ||||||
Net cash flows from financing activities |
(5,943 | ) | (4,516 | ) | ||||
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Effect of currency exchange rate changes on cash and cash equivalents |
50 | 33 | ||||||
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Net increase (decrease) in cash and cash equivalents |
(66,445 | ) | (21,444 | ) | ||||
Cash and cash equivalents at beginning of period |
382,140 | 243,152 | ||||||
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Cash and cash equivalents at end of period |
$ | 315,695 | $ | 221,708 | ||||
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Change in Interest Rates |
Approximate Change in Fair Value of Investments Increase (Decrease) |
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2% Decrease |
$ | 4,585 | ||
1% Decrease |
$ | 2,574 | ||
1% Increase |
$ | (2,615) | ||
2% Increase |
$ | (5,229) |
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 March 31, 2022, 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. |
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 | ||
---|---|---|---|---|
9/1/24 | ||||
12/31/22 | ||||
6/1/22 | ||||
5/31/22 | 4 | |||
Filed on: | 5/6/22 | 8-K | ||
4/4/22 | 4 | |||
For Period end: | 3/31/22 | 4 | ||
3/8/22 | ||||
3/1/22 | 10-K | |||
2/16/22 | 4 | |||
1/1/22 | ||||
12/31/21 | 10-K | |||
3/31/21 | 10-Q, 4 | |||
2/9/21 | ||||
1/1/21 | ||||
12/31/20 | 10-K | |||
11/27/19 | ||||
5/28/19 | 8-K | |||
6/18/14 | 8-K | |||
1/1/14 | ||||
3/31/13 | ||||
List all Filings |