FORM | 10-K |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TYLER TECHNOLOGIES, INC. | ||
(Exact name of registrant as specified in its charter) |
Delaware | 75-2303920 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification no.) | |||||||
5101 Tennyson Parkway | ||||||||
Plano, | Texas | 75024 | ||||||
(Address of principal executive offices) | (Zip code) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
COMMON STOCK, $0.01 PAR VALUE | TYL | New York Stock Exchange |
NONE |
Large accelerated filer | ☒ | Accelerated Filer | ☐ | |||||||||||||||||
Non-accelerated Filer (Do not check if smaller reporting company) | ☐ | Smaller Reporting Company | ☐ | |||||||||||||||||
Emerging Growth Company | ☐ | |||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
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Number of securities to be issued upon exercise of outstanding options, warrants, purchase rights and vesting of restricted stock units as of December 31, 2019 | Weighted average exercise price of outstanding options and unvested restricted stock units | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in initial column as of December 31, 2019) | Number of securities to be issued upon exercise of outstanding options, warrants, purchase rights and vesting of restricted stock units as of December 31, 2020 | Weighted average exercise price of outstanding options and unvested restricted stock units | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in initial column as of December 31, 2020) | |||||||||||||||||||||
Plan Category | Plan Category | |||||||||||||||||||||||||
Equity compensation plans approved by security shareholders: | Equity compensation plans approved by security shareholders: | |||||||||||||||||||||||||
2018 Incentive Stock Plan | 4,052,461 | $ | 155.92 | 3,097,303 | 2018 Incentive Stock Plan | 2,763,414 | $ | 203.05 | 2,480,878 | |||||||||||||||||
Employee Stock Purchase Plan | 9,681 | 255.02 | 701,837 | Employee Stock Purchase Plan | 8,186 | 371.04 | 663,502 | |||||||||||||||||||
Equity compensation plans not approved by security shareholders | — | — | — | Equity compensation plans not approved by security shareholders | — | — | — | |||||||||||||||||||
4,062,142 | $ | 156.15 | 3,799,140 | 2,771,600 | $ | 203.55 | 3,144,380 |
Period | Total number of shares repurchased | Additional number of shares authorized that may be repurchased | Average price paid per share | Maximum number of shares that may be repurchased under current authorization | ||||||||||||||||||||||
Three months ended March 31 | 58,804 | — | $ | 263.26 | 2,505,472 | |||||||||||||||||||||
Three months ended June 30 | — | — | — | 2,505,472 | ||||||||||||||||||||||
Three months ended September 30 | 7 | — | 361.19 | 2,505,465 | ||||||||||||||||||||||
October 1 through October 31 | — | — | — | 2,505,465 | ||||||||||||||||||||||
November 1 through November 30 | — | — | — | 2,505,465 | ||||||||||||||||||||||
December 1 through December 31 | — | — | — | 2,505,465 | ||||||||||||||||||||||
58,811 | — | $ | 263.27 |
Period | Total number of shares repurchased | Additional number of shares authorized that may be repurchased | Average price paid per share | Maximum number of shares that may be repurchased under current authorization | |||||||||
Three months ended March 31 | 71,793 | 1,500,000 | $ | 199.03 | 2,620,925 | ||||||||
Three months ended June 30 | — | — | — | 2,620,925 | |||||||||
Three months ended September 30 | — | — | — | 2,620,925 | |||||||||
October 1 through October 31 | — | — | — | 2,620,925 | |||||||||
November 1 through November 30 | — | — | — | 2,620,925 | |||||||||
December 1 through December 31 | — | — | — | 2,620,925 | |||||||||
71,793 | 1,500,000 | $ | 199.03 |
Company / Index | 12/31/15 | 12/31/16 | 12/31/17 | 12/31/18 | 12/31/19 | 12/31/20 | |||||||||||||||||||||||||||||
Tyler Technologies, Inc. | 100 | 81.90 | 101.57 | 106.60 | 172.11 | 250.41 | |||||||||||||||||||||||||||||
S&P 500 Stock Index | 100 | 111.96 | 136.40 | 130.42 | 171.49 | 203.04 | |||||||||||||||||||||||||||||
S&P 600 Information Technology Index | 100 | 133.85 | 147.62 | 134.43 | 187.65 | 239.83 |
Company / Index | 12/31/14 | 12/31/15 | 12/31/16 | 12/31/17 | 12/31/18 | 12/31/19 | |||||||||||
Tyler Technologies, Inc. | 100 | 159.28 | 130.46 | 161.78 | 169.79 | 274.14 | |||||||||||
S&P 500 Stock Index | 100 | 101.38 | 113.51 | 138.29 | 132.23 | 173.86 | |||||||||||
S&P 600 Information Technology Index | 100 | 104.65 | 140.08 | 154.48 | 140.68 | 196.38 |
FOR THE YEARS ENDED DECEMBER 31, | |||||||||||||||||||
2019 (a) | 2018 | 2017 (b),(c) | 2016 (b) | 2015 | |||||||||||||||
STATEMENT OF OPERATIONS DATA: | |||||||||||||||||||
Revenues | $ | 1,086,427 | $ | 935,282 | $ | 840,899 | $ | 759,880 | $ | 591,022 | |||||||||
Cost and expenses: | |||||||||||||||||||
Cost of revenues | 569,527 | 495,704 | 441,522 | 400,692 | 313,835 | ||||||||||||||
Selling, general and administrative expenses | 257,746 | 207,605 | 175,914 | 165,176 | 133,317 | ||||||||||||||
Research and development expense | 81,342 | 63,264 | 47,324 | 43,154 | 29,922 | ||||||||||||||
Amortization of customer and trade name intangibles | 21,445 | 16,217 | 13,381 | 13,202 | 5,905 | ||||||||||||||
Operating income | 156,367 | 152,492 | 162,758 | 137,656 | 108,043 | ||||||||||||||
Other income, net | 3,471 | 3,378 | 698 | (1,998 | ) | 381 | |||||||||||||
Income before income taxes | 159,838 | 155,870 | 163,456 | 135,658 | 108,424 | ||||||||||||||
Income tax (benefit) provision (c) | 13,311 | 8,408 | (6,115 | ) | 21,957 | 43,555 | |||||||||||||
Net income | 146,527 | 147,462 | 169,571 | 113,701 | 64,869 | ||||||||||||||
Net earnings per diluted share | $ | 3.65 | $ | 3.68 | $ | 4.32 | $ | 2.92 | $ | 1.77 | |||||||||
Weighted average diluted shares | 40,105 | 40,123 | 39,246 | 38,961 | 36,552 | ||||||||||||||
STATEMENT OF CASH FLOWS DATA: | |||||||||||||||||||
Cash flows provided by operating activities | $ | 254,720 | $ | 250,203 | $ | 195,755 | $ | 191,859 | $ | 134,327 | |||||||||
Cash flows used by investing activities | (245,015 | ) | (238,255 | ) | (85,395 | ) | (50,720 | ) | (398,459 | ) | |||||||||
Cash flows (used) provided by financing activities | 88,698 | (63,595 | ) | 39,415 | 138,075 | 91,052 | |||||||||||||
BALANCE SHEET DATA: | |||||||||||||||||||
Total assets | $ | 2,191,614 | $ | 1,790,963 | $ | 1,611,351 | $ | 1,378,502 | $ | 1,356,570 | |||||||||
Revolving line of credit | — | — | — | 10,000 | 66,000 | ||||||||||||||
Shareholders' equity | 1,617,058 | 1,324,846 | 1,191,736 | 934,540 | 858,857 |
Percentage of Total Revenues Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Revenues: | |||||||||||||||||
Software licenses and royalties | 6.5 | % | 9.2 | % | 10.0 | % | |||||||||||
Subscriptions | 31.4 | 27.3 | 23.6 | ||||||||||||||
Software services | 16.7 | 19.6 | 20.5 | ||||||||||||||
Maintenance | 41.9 | 39.6 | 41.1 | ||||||||||||||
Appraisal services | 1.9 | 2.2 | 2.3 | ||||||||||||||
Hardware and other | 1.6 | 2.1 | 2.5 | ||||||||||||||
Total revenues | 100.0 | 100.0 | 100.0 | ||||||||||||||
Operating expenses: | |||||||||||||||||
Cost of software licenses, royalties and acquired software | 3.2 | 3.2 | 2.9 | ||||||||||||||
Cost of subscriptions, software services and maintenance | 45.8 | 46.2 | 46.9 | ||||||||||||||
Cost of appraisal services | 1.4 | 1.4 | 1.5 | ||||||||||||||
Cost of hardware and other | 1.1 | 1.6 | 1.7 | ||||||||||||||
Selling, general and administrative expenses | 23.2 | 23.7 | 22.2 | ||||||||||||||
Research and development expense | 7.9 | 7.5 | 6.8 | ||||||||||||||
Amortization of customer and trade name intangibles | 1.9 | 2.0 | 1.7 | ||||||||||||||
Operating income | 15.5 | 14.4 | 16.3 | ||||||||||||||
Other income, net | 0.2 | 0.3 | 0.4 | ||||||||||||||
Income before income taxes | 15.7 | 14.7 | 16.7 | ||||||||||||||
Income tax (benefit) provision | (1.8) | 1.2 | 0.9 | ||||||||||||||
Net income | 17.5 | % | 13.5 | % | 15.8 | % |
Percentage of Total Revenues Years Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Revenues: | ||||||||
Software licenses and royalties | 9.2 | % | 10.0 | % | 10.3 | % | ||
Subscriptions | 27.3 | 23.6 | 20.5 | |||||
Software services | 19.6 | 20.5 | 21.5 | |||||
Maintenance | 39.6 | 41.1 | 42.6 | |||||
Appraisal services | 2.2 | 2.3 | 3.0 | |||||
Hardware and other | 2.1 | 2.5 | 2.1 | |||||
Total revenues | 100.0 | 100.0 | 100.0 | |||||
Operating expenses: | ||||||||
Cost of software licenses, royalties and acquired software | 3.2 | 2.9 | 3.0 | |||||
Cost of software services, maintenance and subscriptions | 46.2 | 46.9 | 46.1 | |||||
Cost of appraisal services | 1.4 | 1.5 | 1.9 | |||||
Cost of hardware and other | 1.6 | 1.7 | 1.5 | |||||
Selling, general and administrative expenses | 23.7 | 22.2 | 20.9 | |||||
Research and development expense | 7.5 | 6.8 | 5.6 | |||||
Amortization of customer and trade name intangibles | 2.0 | 1.7 | 1.6 | |||||
Operating income | 14.4 | 16.3 | 19.4 | |||||
Other income, net | 0.3 | 0.4 | 0.1 | |||||
Income before income taxes | 14.7 | 16.7 | 19.5 | |||||
Income tax (benefit) provision | 1.2 | 0.9 | (0.7 | ) | ||||
Net income | 13.5 | % | 15.8 | % | 20.2 | % |
2020 | 2019 | |||||||||||||
Revenues: | ||||||||||||||
Software licenses and royalties | $ | 5,206 | $ | 8,737 | ||||||||||
Subscriptions | 10,823 | 7,472 | ||||||||||||
Software services | 21,391 | 18,143 | ||||||||||||
Maintenance | 39,701 | 28,642 | ||||||||||||
Appraisal services | — | — | ||||||||||||
Hardware and other | 36 | 24 | ||||||||||||
Total revenues | $ | 77,157 | $ | 63,018 |
2019 | ||||
Revenues: | ||||
Software licenses and royalties | $ | 8,737 | ||
Subscriptions | 7,472 | |||
Software services | 18,143 | |||
Maintenance | 28,642 | |||
Appraisal services | — | |||
Hardware and other | 24 | |||
Total revenues | $ | 63,018 |
Change | ||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ | % | ||||||||||||||||||||||
ES | $ | 64,200 | $ | 90,808 | $ | (26,608) | (29) | % | ||||||||||||||||||
A&T | 8,964 | 9,397 | (433) | (5) | ||||||||||||||||||||||
Total software licenses and royalties revenue | $ | 73,164 | $ | 100,205 | $ | (27,041) | (27) | % |
Change | |||||||||||||||
($ in thousands) | 2019 | 2018 | $ | % | |||||||||||
ES | $ | 92,567 | $ | 83,735 | $ | 8,832 | 11 | % | |||||||
A&T | 7,638 | 9,706 | (2,068 | ) | (21 | ) | |||||||||
Total software licenses and royalties revenue | $ | 100,205 | $ | 93,441 | $ | 6,764 | 7 | % |
Change | Change | ||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2019 | 2018 | $ | % | ($ in thousands) | 2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||
ES | $ | 285,092 | $ | 210,740 | $ | 74,352 | 35 | % | ES | $ | 326,284 | $ | 279,282 | $ | 47,002 | 17 | % | ||||||||||||||||||||||||
A&T | 11,260 | 9,807 | 1,453 | 15 | A&T | 24,364 | 17,070 | 7,294 | 43 | ||||||||||||||||||||||||||||||||
Total subscriptions revenue | $ | 296,352 | $ | 220,547 | $ | 75,805 | 34 | % | Total subscriptions revenue | $ | 350,648 | $ | 296,352 | $ | 54,296 | 18 | % |
Change | ||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ | % | ||||||||||||||||||||||
ES | $ | 164,520 | $ | 179,865 | $ | (15,345) | (9) | % | ||||||||||||||||||
A&T | 21,889 | 33,196 | (11,307) | (34) | ||||||||||||||||||||||
Total software services revenue | $ | 186,409 | $ | 213,061 | $ | (26,652) | (13) | % |
Change | |||||||||||||||
($ in thousands) | 2019 | 2018 | $ | % | |||||||||||
ES | $ | 185,892 | $ | 166,921 | $ | 18,971 | 11 | % | |||||||
A&T | 27,169 | 24,348 | 2,821 | 12 | |||||||||||
Total software services revenue | $ | 213,061 | $ | 191,269 | $ | 21,792 | 11 | % |
Change | Change | ||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2019 | 2018 | $ | % | ($ in thousands) | 2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||
ES | $ | 405,063 | $ | 359,904 | $ | 45,159 | 13 | % | ES | $ | 429,224 | $ | 393,521 | $ | 35,703 | 9 | % | ||||||||||||||||||||||||
A&T | 25,255 | 24,617 | 638 | 3 | A&T | 38,289 | 36,797 | 1,492 | 4 | ||||||||||||||||||||||||||||||||
Total maintenance revenue | $ | 430,318 | $ | 384,521 | $ | 45,797 | 12 | % | Total maintenance revenue | $ | 467,513 | $ | 430,318 | $ | 37,195 | 9 | % |
Change | Change | ||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2019 | 2018 | $ | % | ($ in thousands) | 2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||
ES | $ | — | $ | — | $ | — | — | % | ES | $ | — | $ | — | $ | — | — | % | ||||||||||||||||||||||||
A&T | 23,479 | 21,846 | 1,633 | 7 | A&T | 21,127 | 23,479 | (2,352) | (10) | ||||||||||||||||||||||||||||||||
Total appraisal services revenue | $ | 23,479 | $ | 21,846 | $ | 1,633 | 7 | % | Total appraisal services revenue | $ | 21,127 | $ | 23,479 | $ | (2,352) | (10) | % |
Change | ||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ | % | ||||||||||||||||||||||
Software licenses and royalties | $ | 3,339 | $ | 3,938 | $ | (599) | (15) | % | ||||||||||||||||||
Acquired software | 31,962 | 30,642 | 1,320 | 4 | ||||||||||||||||||||||
Subscriptions, software services and maintenance | 510,504 | 502,138 | 8,366 | 2 | ||||||||||||||||||||||
Appraisal services | 15,945 | 15,337 | 608 | 4 | ||||||||||||||||||||||
Hardware and other | 12,401 | 17,472 | (5,071) | (29) | ||||||||||||||||||||||
Total cost of revenues | $ | 574,151 | $ | 569,527 | $ | 4,624 | 1 | % |
Change | |||||||||||||||
($ in thousands) | 2019 | 2018 | $ | % | |||||||||||
Software licenses and royalties | $ | 3,938 | $ | 3,802 | $ | 136 | 4 | % | |||||||
Acquired software | 30,642 | 22,972 | 7,670 | 33 | |||||||||||
Software services, maintenance and subscriptions | 502,138 | 438,923 | 63,215 | 14 | |||||||||||
Appraisal services | 15,337 | 14,299 | 1,038 | 7 | |||||||||||
Hardware and other | 17,472 | 15,708 | 1,764 | 11 | |||||||||||
Total cost of revenues | $ | 569,527 | $ | 495,704 | $ | 73,823 | 15 | % |
Gross margin percentage | 2019 | 2018 | Change | Gross margin percentage | 2020 | 2019 | Change | ||||||||||||||||||||||
Software licenses, royalties and acquired software | 65.5 | % | 71.3 | % | (5.8 | )% | Software licenses, royalties and acquired software | 51.8 | % | 65.5 | % | (13.7) | % | ||||||||||||||||
Software services, maintenance and subscriptions | 46.6 | 44.9 | 1.7 | ||||||||||||||||||||||||||
Subscriptions, software services and maintenance | Subscriptions, software services and maintenance | 49.2 | 46.6 | 2.6 | |||||||||||||||||||||||||
Appraisal services | 34.7 | 34.5 | 0.2 | Appraisal services | 24.5 | 34.7 | (10.2) | ||||||||||||||||||||||
Hardware and other | 24.1 | 33.6 | (9.5 | ) | Hardware and other | 30.3 | 24.1 | 6.2 | |||||||||||||||||||||
Overall gross margin | 47.6 | % | 47.0 | % | 0.6 | % | Overall gross margin | 48.6 | % | 47.6 | % | 1.0 | % |
Change | Change | ||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2019 | 2018 | $ | % | ($ in thousands) | 2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 257,746 | $ | 207,605 | $ | 50,141 | 24 | % | Selling, general and administrative expenses | $ | 259,561 | $ | 257,746 | $ | 1,815 | 1 | % |
Change | ||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ | % | ||||||||||||||||||||||
Research and development expense | $ | 88,363 | $ | 81,342 | $ | 7,021 | 9 | % |
Change | |||||||||||||||
($ in thousands) | 2019 | 2018 | $ | % | |||||||||||
Research and development expense | $ | 81,342 | $ | 63,264 | $ | 18,078 | 29 | % |
Change | |||||||||||||||
($ in thousands) | 2019 | 2018 | $ | % | |||||||||||
Amortization of customer and trade name intangibles | $ | 21,445 | $ | 16,217 | $ | 5,228 | 32 | % |
Change | ||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ | % | ||||||||||||||||||||||
Amortization of customer and trade name intangibles | $ | 21,662 | $ | 21,445 | $ | 217 | 1 | % |
2020 | $ | 21,357 | ||||||
2021 | 21,237 | 2021 | $ | 21,317 | ||||
2022 | 20,747 | 2022 | 20,827 | |||||
2023 | 20,673 | 2023 | 20,753 | |||||
2024 | 20,121 | 2024 | 20,201 | |||||
2025 | 2025 | 19,672 | ||||||
Thereafter | 135,264 | Thereafter | 116,779 |
Change | ||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ | % | ||||||||||||||||||||||
Other income, net | $ | 2,116 | $ | 3,471 | $ | (1,355) | (39)% |
Change | ||||||||||||||
($ in thousands) | 2019 | 2018 | $ | % | ||||||||||
Other income, net | $ | 3,471 | $ | 3,378 | $ | 93 | 3% |
Change | Change | ||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2019 | 2018 | $ | % | ($ in thousands) | 2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||
Income tax provision | $ | 13,311 | $ | 8,408 | $ | 4,903 | 58 | % | |||||||||||||||||||||||||||||||||
Income tax (benefit) provision | Income tax (benefit) provision | $ | (19,778) | $ | 13,311 | $ | (33,089) | (249) | % | ||||||||||||||||||||||||||||||||
Effective income tax rate | 8.3 | % | 5.4 | % | Effective income tax rate | (11.3) | % | 8.3 | % |
Change | |||||||||||||||
($ in thousands) | 2018 | 2017 | $ | % | |||||||||||
ES | $ | 83,735 | $ | 78,388 | $ | 5,347 | 7 | % | |||||||
A&T | 9,706 | 7,854 | 1,852 | 24 | |||||||||||
Total software licenses and royalties revenue | $ | 93,441 | $ | 86,242 | $ | 7,199 | 8 | % |
Change | |||||||||||||||
($ in thousands) | 2018 | 2017 | $ | % | |||||||||||
ES | $ | 210,740 | $ | 164,317 | $ | 46,423 | 28 | % | |||||||
A&T | 9,807 | 7,859 | 1,948 | 25 | |||||||||||
Total subscriptions revenue | $ | 220,547 | $ | 172,176 | $ | 48,371 | 28 | % |
Change | |||||||||||||||
($ in thousands) | 2018 | 2017 | $ | % | |||||||||||
ES | $ | 166,921 | $ | 161,245 | $ | 5,676 | 4 | % | |||||||
A&T | 24,348 | 19,215 | 5,133 | 27 | |||||||||||
Total software services revenue | $ | 191,269 | $ | 180,460 | $ | 10,809 | 6 | % |
Change | |||||||||||||||
($ in thousands) | 2018 | 2017 | $ | % | |||||||||||
ES | $ | 359,904 | $ | 337,701 | $ | 22,203 | 7 | % | |||||||
A&T | 24,617 | 21,618 | 2,999 | 14 | |||||||||||
Total maintenance revenue | $ | 384,521 | $ | 359,319 | $ | 25,202 | 7 | % |
Change | |||||||||||||||
($ in thousands) | 2018 | 2017 | $ | % | |||||||||||
ES | $ | — | $ | — | $ | — | — | % | |||||||
A&T | 21,846 | 25,023 | (3,177 | ) | (13 | ) | |||||||||
Total appraisal services revenue | $ | 21,846 | $ | 25,023 | $ | (3,177 | ) | (13 | )% |
Change | |||||||||||||||
($ in thousands) | 2018 | 2017 | $ | % | |||||||||||
Software licenses and royalties | $ | 3,802 | $ | 3,321 | $ | 481 | 14 | % | |||||||
Acquired software | 22,972 | 21,686 | 1,286 | 6 | % | ||||||||||
Software services, maintenance and subscriptions | 438,923 | 387,634 | 51,289 | 13 | |||||||||||
Appraisal services | 14,299 | 16,286 | (1,987 | ) | (12 | ) | |||||||||
Hardware and other | 15,708 | 12,595 | 3,113 | 25 | |||||||||||
Total cost of revenues | $ | 495,704 | $ | 441,522 | $ | 54,182 | 12 | % |
Gross margin percentage | 2018 | 2017 | Change | ||||||
Software licenses, royalties and acquired software | 71.3 | % | 71.0 | % | 0.3 | % | |||
Software services, maintenance and subscriptions | 44.9 | 45.6 | (0.7 | ) | |||||
Appraisal services | 34.5 | 34.9 | (0.4 | ) | |||||
Hardware and other | 33.6 | 28.8 | 4.8 | ||||||
Overall gross margin | 47.0 | % | 47.5 | % | (0.5 | )% |
Change | |||||||||||||||
($ in thousands) | 2018 | 2017 | $ | % | |||||||||||
Selling, general and administrative expenses | $ | 207,605 | $ | 175,914 | $ | 31,691 | 18 | % |
Change | |||||||||||||||
($ in thousands) | 2018 | 2017 | $ | % | |||||||||||
Research and development expense | $ | 63,264 | $ | 47,324 | $ | 15,940 | 34 | % |
Change | |||||||||||||||
($ in thousands) | 2018 | 2017 | $ | % | |||||||||||
Amortization of customer and trade name intangibles | $ | 16,217 | $ | 13,381 | $ | 2,836 | 21 | % |
Change | |||||||||||||||
($ in thousands) | 2018 | 2017 | $ | % | |||||||||||
Other income, net | $ | 3,378 | $ | 698 | $ | 2,680 | 384 | % |
Change | |||||||||||||||
($ in thousands) | 2018 | 2017 | $ | % | |||||||||||
Income tax provision (benefit) | $ | 8,408 | $ | (6,115 | ) | $ | 14,523 | (237 | )% | ||||||
Effective income tax rate | 5.4 | % | (3.7 | )% |
($ in thousands) | 2019 | 2018 | 2017 | ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||||||||||
Cash flows provided (used) by: | Cash flows provided (used) by: | |||||||||||||||||||||||||||||||
Operating activities | $ | 254,720 | $ | 250,203 | $ | 195,755 | Operating activities | $ | 355,089 | $ | 254,720 | $ | 250,203 | |||||||||||||||||||
Investing activities | (245,015 | ) | (238,255 | ) | (85,395 | ) | Investing activities | (98,320) | (245,015) | (238,255) | ||||||||||||||||||||||
Financing activities | 88,698 | (63,595 | ) | 39,415 | Financing activities | 114,172 | 88,698 | (63,595) | ||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 98,403 | $ | (51,647 | ) | $ | 149,775 | Net increase (decrease) in cash and cash equivalents | $ | 370,941 | $ | 98,403 | $ | (51,647) |
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | |||||||||||||||||||||
Revolving line of credit | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Lease obligations | 7,684 | 6,246 | 3,960 | 2,923 | 2,478 | 2,042 | 25,333 | ||||||||||||||||||||
Total future payment obligations | $ | 7,684 | $ | 6,246 | $ | 3,960 | $ | 2,923 | $ | 2,478 | $ | 2,042 | $ | 25,333 |
Headings in Proxy Statement | ||||||||
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE. | “Tyler Management” and “Corporate Governance Principles and Board Matters” |
ITEM 11. EXECUTIVE COMPENSATION. | “Executive Compensation” |
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. | “Security Ownership of Certain Beneficial Owners and Management” |
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. | "Executive Compensation" and “Certain Relationships and Related Transactions” |
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES. | ||||||||
The information required under this item may be found under the section captioned “Proposals For Consideration – Proposal Two – Ratification of Our Independent Auditors for Fiscal Year 2020” in our Proxy Statement when filed. |
(a) | The financial statements are filed as part of this Annual Report. | |||||||||||||||||||
Page | ||||||||||||||||||||
Financial statement schedules: | ||||||||||||||||||||
There are no financial statement schedules filed as part of this Annual Report, since the required information is included in the financial statements, including the notes thereto, or the circumstances requiring inclusion of such schedules are not present. | ||||||||||||||||||||
Exhibits | ||||||||||||||||||||
Certain of the exhibits to this Annual Report are hereby incorporated by reference, as specified: |
Exhibit Number | Description | |||||||
3.1 | Restated Certificate of Incorporation of Tyler Three, as amended through May 14, 1990, and Certificate of Designation of Series A Junior Participating Preferred Stock (filed as Exhibit 3.1 to our Form 10-Q for the quarter ended June 30, 1990, and incorporated by reference herein). | |||||||
3.2 | Certificate of Amendment to the Restated Certificate of Incorporation (filed as Exhibit 3.1 to our Form 8-K, dated February 19, 1998, and incorporated by reference herein). | |||||||
4.1 | Specimen of Common Stock Certificate (filed as Exhibit 4.1 to our registration statement no. 33-33505 and incorporated by reference herein). | |||||||
Agreement and Plan of Merger, dated February 9, 2021 by and among Tyler Technologies, Inc., Topos Acquisition, Inc., and NIC, Inc.(filed as Exhibit 2.1 to our Form 8-K, dated February 10, 2021, and incorporated by reference herein). | ||||||||
Exhibit Number | Description | |||||||
. | ||||||||
*101.INS | Inline XBRL Instance Document - the Instance Document does not appear in the interactive data file because its XBRL tags, including Cover Page XBRL tags, are embedded within the Inline XBRL Document. | |||||||
*101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
*101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
*101.LAB | Inline XBRL | |||||||
*101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
*101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | — Filed herewith. |
TYLER TECHNOLOGIES, INC. | ||||||||||||||
Date: February 19, | By: | /s/ H. Lynn Moore, Jr. | ||||||||||||
H. Lynn Moore, Jr. | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
(principal executive officer) |
Date: February 19, 2021 | By: | /s/ John S. Marr, Jr. | ||||||||||||
John S. Marr, Jr. | ||||||||||||||
Executive Chairman of the Board | ||||||||||||||
Director | ||||||||||||||
Date: February 19, | By: | |||||||||||||
/s/ H. Lynn Moore, Jr. | ||||||||||||||
H. Lynn Moore, Jr. | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
(principal executive officer) | ||||||||||||||
Date: February 19, | By: | /s/ | ||||||||||||
(principal financial officer) | ||||||||||||||
Date: February 19, | By: | /s/ W. Michael Smith | ||||||||||||
W. Michael Smith | ||||||||||||||
Chief Accounting Officer | ||||||||||||||
(principal accounting officer) | ||||||||||||||
Date: February 19, 2021 | By: | /s/ Donald R. Brattain | ||||||||||||
Donald R. Brattain | ||||||||||||||
Director | ||||||||||||||
Date: February 19, 2021 | By: | /s/ Glenn A. Carter | ||||||||||||
Glenn A. Carter | ||||||||||||||
Director | ||||||||||||||
Date: February 19, 2021 | By: | /s/ Brenda A. Cline | ||||||||||||
Brenda A. Cline | ||||||||||||||
Director |
Date: February 19, 2021 | By: | /s/ Mary Landrieu | ||||||||||||
Mary Landrieu | ||||||||||||||
Director | ||||||||||||||
Date: February 19, 2021 | By: | /s/ Daniel M. Pope | ||||||||||||
Daniel M. Pope | ||||||||||||||
Director | ||||||||||||||
Date: February 19, | By: | /s/ Dustin R.Womble | ||||||||||||
Dustin R. Womble | ||||||||||||||
Director |
Estimation of hours for certain progress-to-completion (POC) arrangements | |||||
Description of the Matter | As described in Note Auditing management’s estimates of total budgeted contract hours required additional audit effort due to the existence of management judgment required to make these estimates for arrangements that are completed over an extended period. These estimates require ongoing monitoring by management and may require revision over time. |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s process to review contract progress-to-date and total budgeted hours, inclusive of executed contract amendments and change orders. To test the appropriateness of management’s assessment of contract progress-to-date, our audit procedures included, among others, obtaining an understanding of any increase or decrease to budgeted hours via contract amendments or change orders, observing quarterly POC meetings where the Company discussed contract progress-to-date and evaluated the appropriateness of contract estimated hours to complete, reviewing signed Company attestations as to the contracts’ progress toward completion, performing a sensitivity analysis to assess the | ||
2020 | 2019 | 2018 | |||||||||||||||
Revenues: | |||||||||||||||||
Software licenses and royalties | $ | 73,164 | $ | 100,205 | $ | 93,441 | |||||||||||
Subscriptions | 350,648 | 296,352 | 220,547 | ||||||||||||||
Software services | 186,409 | 213,061 | 191,269 | ||||||||||||||
Maintenance | 467,513 | 430,318 | 384,521 | ||||||||||||||
Appraisal services | 21,127 | 23,479 | 21,846 | ||||||||||||||
Hardware and other | 17,802 | 23,012 | 23,658 | ||||||||||||||
Total revenues | 1,116,663 | 1,086,427 | 935,282 | ||||||||||||||
Cost of revenues: | |||||||||||||||||
Software licenses and royalties | 3,339 | 3,938 | 3,802 | ||||||||||||||
Acquired software | 31,962 | 30,642 | 22,972 | ||||||||||||||
Subscriptions, software services and maintenance | 510,504 | 502,138 | 438,923 | ||||||||||||||
Appraisal services | 15,945 | 15,337 | 14,299 | ||||||||||||||
Hardware and other | 12,401 | 17,472 | 15,708 | ||||||||||||||
Total cost of revenues | 574,151 | 569,527 | 495,704 | ||||||||||||||
Gross profit | 542,512 | 516,900 | 439,578 | ||||||||||||||
Selling, general and administrative expenses | 259,561 | 257,746 | 207,605 | ||||||||||||||
Research and development expense | 88,363 | 81,342 | 63,264 | ||||||||||||||
Amortization of customer and trade name intangibles | 21,662 | 21,445 | 16,217 | ||||||||||||||
Operating income | 172,926 | 156,367 | 152,492 | ||||||||||||||
Other income, net | 2,116 | 3,471 | 3,378 | ||||||||||||||
Income before income taxes | 175,042 | 159,838 | 155,870 | ||||||||||||||
Income tax (benefit) provision | (19,778) | 13,311 | 8,408 | ||||||||||||||
Net income | $ | 194,820 | $ | 146,527 | $ | 147,462 | |||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 4.87 | $ | 3.79 | $ | 3.84 | |||||||||||
Diluted | $ | 4.69 | $ | 3.65 | $ | 3.68 | |||||||||||
2019 | 2018 | 2017 | |||||||||
Revenues: | |||||||||||
Software licenses and royalties | $ | 100,205 | $ | 93,441 | $ | 86,242 | |||||
Subscriptions | 296,352 | 220,547 | 172,176 | ||||||||
Software services | 213,061 | 191,269 | 180,460 | ||||||||
Maintenance | 430,318 | 384,521 | 359,319 | ||||||||
Appraisal services | 23,479 | 21,846 | 25,023 | ||||||||
Hardware and other | 23,012 | 23,658 | 17,679 | ||||||||
Total revenues | 1,086,427 | 935,282 | 840,899 | ||||||||
Cost of revenues: | |||||||||||
Software licenses and royalties | 3,938 | 3,802 | 3,321 | ||||||||
Acquired software | 30,642 | 22,972 | 21,686 | ||||||||
Software services, maintenance and subscriptions | 502,138 | 438,923 | 387,634 | ||||||||
Appraisal services | 15,337 | 14,299 | 16,286 | ||||||||
Hardware and other | 17,472 | 15,708 | 12,595 | ||||||||
Total cost of revenues | 569,527 | 495,704 | 441,522 | ||||||||
Gross profit | 516,900 | 439,578 | 399,377 | ||||||||
Selling, general and administrative expenses | 257,746 | 207,605 | 175,914 | ||||||||
Research and development expense | 81,342 | 63,264 | 47,324 | ||||||||
Amortization of customer and trade name intangibles | 21,445 | 16,217 | 13,381 | ||||||||
Operating income | 156,367 | 152,492 | 162,758 | ||||||||
Other income, net | 3,471 | 3,378 | 698 | ||||||||
Income before income taxes | 159,838 | 155,870 | 163,456 | ||||||||
Income tax provision (benefit) | 13,311 | 8,408 | (6,115 | ) | |||||||
Net income | $ | 146,527 | $ | 147,462 | $ | 169,571 | |||||
Earnings per common share: | |||||||||||
Basic | $ | 3.79 | $ | 3.84 | $ | 4.55 | |||||
Diluted | $ | 3.65 | $ | 3.68 | $ | 4.32 | |||||
12/31/2020 | 12/31/2019 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 603,623 | $ | 232,682 | |||||||
Accounts receivable (less allowance for losses and sales adjustments of $9,255 in 2020 and $5,738 in 2019) | 382,319 | 374,089 | |||||||||
Short-term investments | 72,187 | 39,399 | |||||||||
Prepaid expenses | 30,864 | 24,717 | |||||||||
Income tax receivable | 21,598 | 6,482 | |||||||||
Other current assets | 2,479 | 2,328 | |||||||||
Total current assets | 1,113,070 | 679,697 | |||||||||
Accounts receivable, long-term | 21,417 | 22,432 | |||||||||
Operating lease right-of-use assets | 18,734 | 18,992 | |||||||||
Property and equipment, net | 168,004 | 171,861 | |||||||||
Other assets: | |||||||||||
Goodwill | 838,428 | 840,117 | |||||||||
Other intangibles, net | 331,189 | 378,914 | |||||||||
Non-current investments | 82,640 | 42,235 | |||||||||
Other non-current assets | 33,792 | 37,366 | |||||||||
$ | 2,607,274 | $ | 2,191,614 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 14,011 | $ | 14,977 | |||||||
Accrued liabilities | 83,084 | 75,234 | |||||||||
Operating lease liabilities | 5,904 | 6,387 | |||||||||
Deferred revenue | 461,278 | 412,495 | |||||||||
Total current liabilities | 564,277 | 509,093 | |||||||||
Revolving line of credit | 0 | 0 | |||||||||
Deferred revenue, long-term | 100 | 199 | |||||||||
Deferred income taxes | 40,507 | 48,442 | |||||||||
Operating lease liabilities, long-term | 16,279 | 16,822 | |||||||||
Commitments and contingencies | 0 | 0 | |||||||||
Shareholders' equity: | |||||||||||
Preferred stock, $10.00 par value; 1,000,000 shares authorized; NaN issued | 0 | 0 | |||||||||
Common stock, $0.01 par value; 100,000,000 shares authorized; 48,147,969 shares issued in 2020 and 2019 | 481 | 481 | |||||||||
Additional paid-in capital | 905,332 | 739,478 | |||||||||
Accumulated other comprehensive loss, net of tax | (46) | (46) | |||||||||
Retained earnings | 1,112,156 | 917,336 | |||||||||
Treasury stock, at cost; 7,608,627 and 8,839,352 shares in 2020 and 2019, respectively | (31,812) | (40,191) | |||||||||
Total shareholders' equity | 1,986,111 | 1,617,058 | |||||||||
$ | 2,607,274 | $ | 2,191,614 | ||||||||
12/31/2019 | 12/31/2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 232,682 | $ | 134,279 | |||
Accounts receivable (less allowance for losses and sales adjustments of $5,738 in 2019 and $4,647 in 2018) | 374,089 | 298,912 | |||||
Short-term investments | 39,399 | 44,306 | |||||
Prepaid expenses | 24,717 | 33,258 | |||||
Income tax receivable | 6,482 | 4,697 | |||||
Other current assets | 2,328 | 3,406 | |||||
Total current assets | 679,697 | 518,858 | |||||
Accounts receivable, long-term | 22,432 | 16,020 | |||||
Operating lease right-of-use assets | 18,992 | — | |||||
Property and equipment, net | 171,861 | 155,177 | |||||
Other assets: | |||||||
Goodwill | 840,117 | 753,718 | |||||
Other intangibles, net | 378,914 | 276,852 | |||||
Non-current investments and other assets | 79,601 | 70,338 | |||||
$ | 2,191,614 | $ | 1,790,963 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 14,977 | $ | 6,910 | |||
Accrued liabilities | 75,234 | 66,480 | |||||
Operating lease liabilities | 6,387 | — | |||||
Deferred revenue | 412,495 | 350,512 | |||||
Total current liabilities | 509,093 | 423,902 | |||||
Revolving line of credit | — | — | |||||
Deferred revenue, long-term | 199 | 424 | |||||
Deferred income taxes | 48,442 | 41,791 | |||||
Operating lease liabilities, long-term | 16,822 | — | |||||
Commitments and contingencies | |||||||
Shareholders' equity: | |||||||
Preferred stock, $10.00 par value; 1,000,000 shares authorized; none issued | — | — | |||||
Common stock, $0.01 par value; 100,000,000 shares authorized; 48,147,969 shares issued in 2019 and 2018 | 481 | 481 | |||||
Additional paid-in capital | 739,478 | 731,435 | |||||
Accumulated other comprehensive loss, net of tax | (46 | ) | (46 | ) | |||
Retained earnings | 917,336 | 771,925 | |||||
Treasury stock, at cost; 8,839,352 and 9,872,505 shares in 2019 and 2018, respectively | (40,191 | ) | (178,949 | ) | |||
Total shareholders' equity | 1,617,058 | 1,324,846 | |||||
$ | 2,191,614 | $ | 1,790,963 |
2019 | 2018 | 2017 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 146,527 | $ | 147,462 | $ | 169,571 | |||||
Adjustments to reconcile net income to cash provided by operations: | |||||||||||
Depreciation and amortization | 76,672 | 61,759 | 53,395 | ||||||||
Share-based compensation expense | 59,967 | 52,740 | 37,348 | ||||||||
Provision for losses and sales adjustments - accounts receivable | 1,636 | (569 | ) | 2,031 | |||||||
Operating lease right-of-use assets - non cash | 5,397 | — | — | ||||||||
Deferred income tax benefit | (6,088 | ) | (5,069 | ) | (33,664 | ) | |||||
Changes in operating assets and liabilities, exclusive of effects of acquired companies: | |||||||||||
Accounts receivable | (65,738 | ) | (50,916 | ) | (33,091 | ) | |||||
Income tax receivable | (1,925 | ) | 6,642 | (8,444 | ) | ||||||
Prepaid expenses and other current assets | (8,976 | ) | (588 | ) | (6,958 | ) | |||||
Accounts payable | 7,403 | (2,416 | ) | 878 | |||||||
Operating lease liabilities | (6,113 | ) | — | — | |||||||
Accrued liabilities | 1,516 | (2,445 | ) | 6,050 | |||||||
Deferred revenue | 44,442 | 43,603 | 8,639 | ||||||||
Net cash provided by operating activities | 254,720 | 250,203 | 195,755 | ||||||||
Cash flows from investing activities: | |||||||||||
Additions to property and equipment | (37,236 | ) | (27,424 | ) | (43,057 | ) | |||||
Purchase of marketable security investments | (54,742 | ) | (115,625 | ) | (59,779 | ) | |||||
Proceeds from marketable security investments | 70,796 | 81,205 | 28,786 | ||||||||
Capitalized software development costs | (4,804 | ) | — | — | |||||||
Cost of acquisitions, net of cash acquired | (218,734 | ) | (178,093 | ) | (11,344 | ) | |||||
(Increase) decrease in other | (295 | ) | 1,682 | (1 | ) | ||||||
Net cash used by investing activities | (245,015 | ) | (238,255 | ) | (85,395 | ) | |||||
Cash flows from financing activities: | |||||||||||
Decrease in net borrowings on revolving line of credit | — | — | (10,000 | ) | |||||||
Purchase of treasury shares | (17,786 | ) | (146,553 | ) | (7,474 | ) | |||||
Proceeds from exercise of stock options | 96,908 | 74,907 | 49,845 | ||||||||
Contributions from employee stock purchase plan | 9,576 | 8,051 | 7,044 | ||||||||
Net cash provided (used) by financing activities | 88,698 | (63,595 | ) | 39,415 | |||||||
Net increase (decrease) in cash and cash equivalents | 98,403 | (51,647 | ) | 149,775 | |||||||
Cash and cash equivalents at beginning of period | 134,279 | 185,926 | 36,151 | ||||||||
Cash and cash equivalents at end of period | $ | 232,682 | $ | 134,279 | $ | 185,926 |
2020 | 2019 | 2018 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 194,820 | $ | 146,527 | $ | 147,462 | |||||||||||
Adjustments to reconcile net income to cash provided by operations: | |||||||||||||||||
Depreciation and amortization | 81,657 | 76,672 | 61,759 | ||||||||||||||
Share-based compensation expense | 67,365 | 59,967 | 52,740 | ||||||||||||||
Provision for losses and sales adjustments - accounts receivable | 3,517 | 1,636 | (569) | ||||||||||||||
Operating lease right-of-use assets - non cash | 5,782 | 5,397 | 0 | ||||||||||||||
Deferred income tax benefit | (7,936) | (6,088) | (5,069) | ||||||||||||||
Changes in operating assets and liabilities, exclusive of effects of acquired companies: | |||||||||||||||||
Accounts receivable | (10,733) | (65,738) | (50,916) | ||||||||||||||
Income tax receivable | (15,117) | (1,925) | 6,642 | ||||||||||||||
Prepaid expenses and other current assets | (8,304) | (8,976) | (588) | ||||||||||||||
Accounts payable | (967) | 7,403 | (2,416) | ||||||||||||||
Operating lease liabilities | (6,549) | (6,113) | 0 | ||||||||||||||
Accrued liabilities | 2,870 | 1,516 | (2,445) | ||||||||||||||
Deferred revenue | 48,684 | 44,442 | 43,603 | ||||||||||||||
Net cash provided by operating activities | 355,089 | 254,720 | 250,203 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Additions to property and equipment | (22,690) | (37,236) | (27,424) | ||||||||||||||
Purchase of marketable security investments | (156,618) | (54,742) | (115,625) | ||||||||||||||
Proceeds from marketable security investments | 82,742 | 70,796 | 81,205 | ||||||||||||||
Purchase of equity investment in common shares | (10,000) | 0 | 0 | ||||||||||||||
Proceeds from the sale of equity investment in preferred shares | 15,000 | 0 | 0 | ||||||||||||||
Capitalized software development costs | (5,776) | (4,804) | 0 | ||||||||||||||
Cost of acquisitions, net of cash acquired | (1,292) | (218,734) | (178,093) | ||||||||||||||
Decrease (increase) in other | 314 | (295) | 1,682 | ||||||||||||||
Net cash used by investing activities | (98,320) | (245,015) | (238,255) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Decrease in net borrowings on revolving line of credit | 0 | 0 | 0 | ||||||||||||||
Purchase of treasury shares | (15,484) | (17,786) | (146,553) | ||||||||||||||
Payment of contingent consideration | (5,619) | 0 | 0 | ||||||||||||||
Proceeds from exercise of stock options | 124,363 | 96,908 | 74,907 | ||||||||||||||
Contributions from employee stock purchase plan | 10,912 | 9,576 | 8,051 | ||||||||||||||
Net cash provided (used) by financing activities | 114,172 | 88,698 | (63,595) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 370,941 | 98,403 | (51,647) | ||||||||||||||
Cash and cash equivalents at beginning of period | 232,682 | 134,279 | 185,926 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 603,623 | $ | 232,682 | $ | 134,279 |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Balance at December 31, 2016 | 48,148 | $ | 481 | $ | 556,663 | $ | (46 | ) | $ | 454,892 | (11,382 | ) | $ | (77,449 | ) | $ | 934,541 | ||||||||||||
Net income | — | — | — | — | 169,571 | — | — | 169,571 | |||||||||||||||||||||
Issuance of shares pursuant to stock compensation plan | — | — | 28,174 | — | — | 1,113 | 21,671 | 49,845 | |||||||||||||||||||||
Stock compensation | — | — | 37,348 | — | — | — | — | 37,348 | |||||||||||||||||||||
Issuance of shares pursuant to employee stock purchase plan | — | — | 4,682 | — | — | 51 | 2,362 | 7,044 | |||||||||||||||||||||
Treasury stock purchases | — | — | — | — | — | (44 | ) | (6,613 | ) | (6,613 | ) | ||||||||||||||||||
Balance at December 31, 2017 | 48,148 | 481 | 626,867 | (46 | ) | 624,463 | (10,262 | ) | (60,029 | ) | 1,191,736 | ||||||||||||||||||
Net income | — | — | — | — | 147,462 | — | — | 147,462 | |||||||||||||||||||||
Issuance of shares pursuant to stock compensation plan | — | — | 44,458 | — | — | 1,126 | 30,449 | 74,907 | |||||||||||||||||||||
Stock compensation | — | — | 52,740 | — | — | — | — | 52,740 | |||||||||||||||||||||
Issuance of shares pursuant to employee stock purchase plan | — | — | 7,370 | — | — | 45 | 681 | 8,051 | |||||||||||||||||||||
Treasury stock purchases | — | — | — | — | — | (781 | ) | (150,050 | ) | (150,050 | ) | ||||||||||||||||||
Balance at December 31, 2018 | 48,148 | 481 | 731,435 | (46 | ) | 771,925 | (9,872 | ) | (178,949 | ) | 1,324,846 | ||||||||||||||||||
Net income | — | — | — | — | 146,527 | — | — | 146,527 | |||||||||||||||||||||
Retained earnings adjustment-adoption of Topic 842 Leases, net of taxes | — | — | — | — | (1,116 | ) | — | — | (1,116 | ) | |||||||||||||||||||
Exercise of stock options and vesting of restricted stock units | — | — | (52,833 | ) | — | — | 1,075 | 149,741 | 96,908 | ||||||||||||||||||||
Employee taxes paid for withheld shares for taxes upon equity award | — | — | — | — | — | (23 | ) | (5,361 | ) | (5,361 | ) | ||||||||||||||||||
Stock compensation | — | — | 59,967 | — | — | — | — | 59,967 | |||||||||||||||||||||
Issuance of shares pursuant to employee stock purchase plan | — | — | 909 | — | — | 53 | 8,667 | 9,576 | |||||||||||||||||||||
Treasury stock purchases | — | — | — | — | — | (72 | ) | (14,289 | ) | (14,289 | ) | ||||||||||||||||||
Balance at December 31, 2019 | 48,148 | $ | 481 | $ | 739,478 | $ | (46 | ) | $ | 917,336 | (8,839 | ) | $ | (40,191 | ) | $ | 1,617,058 |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 48,148 | $ | 481 | $ | 626,867 | $ | (46) | $ | 624,463 | (10,262) | $ | (60,029) | $ | 1,191,736 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 147,462 | — | — | 147,462 | |||||||||||||||||||||||||||||||||||||||
Issuance of shares pursuant to stock compensation plan | — | — | 44,458 | — | — | 1,126 | 30,449 | 74,907 | |||||||||||||||||||||||||||||||||||||||
Stock compensation | — | — | 52,740 | — | — | — | — | 52,740 | |||||||||||||||||||||||||||||||||||||||
Issuance of shares pursuant to employee stock purchase plan | — | — | 7,370 | — | — | 45 | 681 | 8,051 | |||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | — | — | — | — | — | (781) | (150,050) | (150,050) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 48,148 | 481 | 731,435 | (46) | 771,925 | (9,872) | (178,949) | 1,324,846 | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 146,527 | — | — | 146,527 | |||||||||||||||||||||||||||||||||||||||
Retained earnings adjustment-adoption of Topic 842 Leases, net of taxes | — | — | — | — | (1,116) | — | — | (1,116) | |||||||||||||||||||||||||||||||||||||||
Exercise of stock options and vesting of restricted stock units | — | — | (52,833) | — | — | 1,075 | 149,741 | 96,908 | |||||||||||||||||||||||||||||||||||||||
Employee taxes paid for withheld shares for taxes upon equity award settlement | — | — | — | — | — | (23) | (5,361) | (5,361) | |||||||||||||||||||||||||||||||||||||||
Stock compensation | — | — | 59,967 | — | — | — | — | 59,967 | |||||||||||||||||||||||||||||||||||||||
Issuance of shares pursuant to employee stock purchase plan | — | — | 909 | — | — | 53 | 8,667 | 9,576 | |||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | — | — | — | — | — | (72) | (14,289) | (14,289) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 48,148 | 481 | 739,478 | (46) | 917,336 | (8,839) | (40,191) | 1,617,058 | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 194,820 | — | — | 194,820 | |||||||||||||||||||||||||||||||||||||||
Exercise of stock options and vesting of restricted stock units | — | — | 90,636 | — | — | 1,283 | 33,727 | 124,363 | |||||||||||||||||||||||||||||||||||||||
Employee taxes paid for withheld shares for taxes upon equity award settlement | — | — | — | — | — | (34) | (12,923) | (12,923) | |||||||||||||||||||||||||||||||||||||||
Stock compensation | — | — | 67,365 | — | — | — | — | 67,365 | |||||||||||||||||||||||||||||||||||||||
Issuance of shares pursuant to employee stock purchase plan | — | — | 7,853 | — | — | 40 | 3,059 | 10,912 | |||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | — | — | — | — | — | (59) | (15,484) | (15,484) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 48,148 | $ | 481 | $ | 905,332 | $ | (46) | $ | 1,112,156 | (7,609) | $ | (31,812) | $ | 1,986,111 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Balance at beginning of year | $ | 4,647 | $ | 5,427 | $ | 3,396 | |||||
Provisions for losses and sales adjustments - accounts receivable | 1,636 | (569 | ) | 2,031 | |||||||
Collection of accounts previously written off | (545 | ) | (211 | ) | — | ||||||
Balance at end of year | $ | 5,738 | $ | 4,647 | $ | 5,427 |
Years ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Balance at beginning of year | $ | 5,738 | $ | 4,647 | $ | 5,427 | |||||||||||
Provisions for losses and sales adjustments - accounts receivable | 3,517 | 1,636 | (569) | ||||||||||||||
Collections of accounts previously written off | 0 | (545) | (211) | ||||||||||||||
Balance at end of year | $ | 9,255 | $ | 5,738 | $ | 4,647 |
Operating lease right-of-use assets | $ | 15,633 | ||
Operating lease liabilities | (4,344 | ) | ||
Operating lease liabilities, long-term | (12,405 | ) | ||
Retained earnings | $ | (1,116 | ) |
(In thousands) | ||||
Cash | $ | 1,983 | ||
Accounts receivable | 10,535 | |||
Other current assets | 8,979 | |||
Other noncurrent assets | 10,417 | |||
Identifiable intangible assets | 136,143 | |||
Goodwill | 76,319 | |||
Accounts payable | (602 | ) | ||
Accrued expenses | (4,092 | ) | ||
Other noncurrent liabilities | (8,879 | ) | ||
Deferred revenue | (13,510 | ) | ||
Deferred tax liabilities, net | (13,125 | ) | ||
Total consideration | $ | 204,168 |
Twelve Months Ended December 31,(unaudited) | ||||||||
2019 | 2018 | |||||||
Revenues | $ | 1,098,226 | $ | 1,009,427 | ||||
Net income | 146,200 | 146,998 | ||||||
Basic earnings per share | $ | 3.78 | $ | 3.82 | ||||
Diluted earnings per share | $ | 3.65 | $ | 3.66 |
Useful Lives (years) | 2019 | 2018 | ||||||||
Land | — | $ | 18,653 | $ | 9,958 | |||||
Building and leasehold improvements | 5-39 | 137,448 | 122,241 | |||||||
Computer equipment and purchased software | 3-5 | 99,435 | 84,649 | |||||||
Furniture and fixtures | 5 | 28,506 | 27,238 | |||||||
Transportation equipment | 5 | 402 | 438 | |||||||
284,444 | 244,524 | |||||||||
Accumulated depreciation and amortization | (112,583 | ) | (89,347 | ) | ||||||
Property and equipment, net | $ | 171,861 | $ | 155,177 |
Useful Lives (years) | 2020 | 2019 | |||||||||||||||
Land | — | $ | 18,653 | $ | 18,653 | ||||||||||||
Building and leasehold improvements | 5-39 | 147,729 | 137,448 | ||||||||||||||
Computer equipment and purchased software | 3-5 | 108,571 | 99,435 | ||||||||||||||
Furniture and fixtures | 5 | 30,666 | 28,506 | ||||||||||||||
Transportation equipment | 5 | 295 | 402 | ||||||||||||||
305,914 | 284,444 | ||||||||||||||||
Accumulated depreciation and amortization | (137,910) | (112,583) | |||||||||||||||
Property and equipment, net | $ | 168,004 | $ | 171,861 |
Enterprise Software | Appraisal and Tax | Total | |||||||||
Balance as of 12/31/2017 | $ | 651,430 | $ | 6,557 | $ | 657,987 | |||||
Goodwill acquired related to the purchase of Socrata | 75,657 | — | 75,657 | ||||||||
Goodwill acquired related to other acquisitions | 20,074 | — | 20,074 | ||||||||
Balance as of 12/31/2018 | 747,161 | 6,557 | 753,718 | ||||||||
Goodwill acquired related to the purchase of MicroPact | 76,319 | — | 76,319 | ||||||||
Goodwill acquired related to other acquisitions | 10,080 | — | 10,080 | ||||||||
Balance as of 12/31/2019 | $ | 833,560 | $ | 6,557 | $ | 840,117 |
Enterprise Software | Appraisal and Tax | Total | |||||||||||||||
Balance as of 12/31/2018 | $ | 739,550 | $ | 14,168 | $ | 753,718 | |||||||||||
Goodwill acquired related to the purchase of MicroPact | 76,319 | 0 | 76,319 | ||||||||||||||
Goodwill acquired related to other acquisitions | 10,080 | 0 | 10,080 | ||||||||||||||
Balance as of 12/31/2019 | 825,949 | 14,168 | 840,117 | ||||||||||||||
Purchase price adjustments related to CHT acquisition | (1,689) | 0 | (1,689) | ||||||||||||||
Balance as of 12/31/2020 | $ | 824,260 | $ | 14,168 | $ | 838,428 |
2019 | 2018 | ||||||
Gross carrying amount of other intangibles: | |||||||
Customer related intangibles | $ | 321,019 | $ | 238,219 | |||
Acquired software | 262,286 | 202,416 | |||||
Trade names | 22,905 | 16,905 | |||||
Capitalized software development costs | 4,804 | — | |||||
Leases acquired | 5,037 | 3,694 | |||||
616,051 | 461,234 | ||||||
Accumulated amortization | (237,137 | ) | (184,382 | ) | |||
Total other intangibles, net | $ | 378,914 | $ | 276,852 |
2020 | 2019 | ||||||||||
Gross carrying amount of other intangibles: | |||||||||||
Customer related intangibles | $ | 322,619 | $ | 321,019 | |||||||
Acquired software | 262,286 | 262,286 | |||||||||
Trade names | 22,905 | 22,905 | |||||||||
Capitalized software development costs | 10,581 | 4,804 | |||||||||
Leases acquired | 5,037 | 5,037 | |||||||||
623,428 | 616,051 | ||||||||||
Accumulated amortization | (292,239) | (237,137) | |||||||||
Total other intangibles, net | $ | 331,189 | $ | 378,914 |
December 31, 2019 | December 31, 2018 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Weighted Average Amortization Period | Accumulated Amortization | Gross Carrying Amount | Weighted Average Amortization Period | Accumulated Amortization | Gross Carrying Amount | Weighted Average Amortization Period | Accumulated Amortization | Gross Carrying Amount | Weighted Average Amortization Period | Accumulated Amortization | |||||||||||||||||||||||||||||||||||||||||||||
Non-amortizable intangibles: | Non-amortizable intangibles: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | $ | 840,117 | — | $ | — | $ | 753,718 | — | $ | — | Goodwill | $ | 838,428 | — | $ | — | $ | 840,117 | — | $ | — | |||||||||||||||||||||||||||||||||||
Amortizable intangibles: | Amortizable intangibles: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer related intangibles | 321,019 | 16 years | 97,320 | 238,219 | 15 years | 78,120 | Customer related intangibles | $ | 322,619 | 16 years | $ | 116,609 | $ | 321,019 | 16 years | $ | 97,320 | |||||||||||||||||||||||||||||||||||||||
Acquired software | 262,286 | 7 years | 130,416 | 202,416 | 7 years | 99,772 | Acquired software | 262,286 | 7 years | 162,378 | 262,286 | 7 years | 130,416 | |||||||||||||||||||||||||||||||||||||||||||
Trade names | 22,905 | 11 years | 7,205 | 16,905 | 11 years | 5,139 | Trade names | 22,905 | 11 years | 9,366 | 22,905 | 11 years | 7,205 | |||||||||||||||||||||||||||||||||||||||||||
Capitalized software development costs | $ | 4,804 | 5 years | $ | 296 | $ | — | — | $ | — | Capitalized software development costs | 10,581 | 5 years | 1,460 | 4,804 | 5 years | 296 | |||||||||||||||||||||||||||||||||||||||
Leases acquired | 5,037 | 9 years | 1,900 | 3,694 | 10 years | 1,351 | Leases acquired | 5,037 | 9 years | 2,426 | 5,037 | 9 years | 1,900 |
2020 | $ | 54,045 | |
2021 | 53,687 | ||
2022 | 49,989 | ||
2023 | 31,838 | ||
2024 | 31,213 | ||
Thereafter | $ | 155,005 |
2021 | $ | 54,411 | |||
2022 | 50,713 | ||||
2023 | 32,562 | ||||
2024 | 31,978 | ||||
2025 | 30,622 | ||||
Thereafter | 123,805 | ||||
$ | 324,091 |
2019 | 2018 | ||||||
Accrued wages, bonuses and commissions | $ | 49,126 | $ | 40,100 | |||
Other accrued liabilities | 26,108 | 26,380 | |||||
$ | 75,234 | $ | 66,480 |
2020 | 2019 | ||||||||||
Accrued wages, bonuses and commissions | $ | 63,814 | $ | 49,126 | |||||||
Other accrued liabilities | 19,270 | 26,108 | |||||||||
$ | 83,084 | $ | 75,234 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Current: | |||||||||||
Federal | $ | 12,814 | $ | 9,110 | $ | 22,883 | |||||
State | 6,585 | 4,367 | 4,666 | ||||||||
19,399 | 13,477 | 27,549 | |||||||||
Deferred | (6,088 | ) | (5,069 | ) | (33,664 | ) | |||||
$ | 13,311 | $ | 8,408 | $ | (6,115 | ) |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Current: | |||||||||||||||||
Federal | $ | (10,538) | $ | 12,814 | $ | 9,110 | |||||||||||
State | (1,304) | 6,585 | 4,367 | ||||||||||||||
(11,842) | 19,399 | 13,477 | |||||||||||||||
Deferred | (7,936) | (6,088) | (5,069) | ||||||||||||||
$ | (19,778) | $ | 13,311 | $ | 8,408 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Federal income tax expense at statutory rate | $ | 36,759 | $ | 33,566 | $ | 32,733 | |||||||||||
State income tax, net of federal income tax benefit | 6,677 | 6,999 | 7,953 | ||||||||||||||
Net operating loss carryback | (3,445) | 0 | 0 | ||||||||||||||
Excess tax benefits of share-based compensation | (60,190) | (29,819) | (32,487) | ||||||||||||||
Adjustments from the 2017 Tax Cuts and Jobs Act | 0 | 0 | (1,750) | ||||||||||||||
Tax credits | (3,867) | (3,446) | (3,715) | ||||||||||||||
Non-deductible business expenses | 4,199 | 6,011 | 5,655 | ||||||||||||||
Other, net | 89 | 0 | 19 | ||||||||||||||
$ | (19,778) | $ | 13,311 | $ | 8,408 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Federal income tax expense at statutory rate | $ | 33,566 | $ | 32,733 | $ | 57,209 | |||||
State income tax, net of federal income tax benefit | 6,999 | 7,953 | 4,754 | ||||||||
Domestic production activities deduction | — | — | (2,617 | ) | |||||||
Excess tax benefits related to stock option exercises | (29,819 | ) | (32,487 | ) | (40,624 | ) | |||||
Tax Act adjustments | — | (1,750 | ) | (25,992 | ) | ||||||
Tax credits | (3,446 | ) | (3,715 | ) | (3,578 | ) | |||||
Non-deductible business expenses | 6,011 | 5,655 | 4,573 | ||||||||
Other, net | — | 19 | 160 | ||||||||
$ | 13,311 | $ | 8,408 | $ | (6,115 | ) |
2019 | 2018 | ||||||
Deferred income tax assets: | |||||||
Operating expenses not currently deductible | $ | 10,214 | $ | 8,989 | |||
Stock option and other employee benefit plans | 19,308 | 19,496 | |||||
Loss and credit carryforwards | 23,841 | 17,999 | |||||
Total deferred income tax assets | 53,363 | 46,484 | |||||
Valuation allowance | (1,923 | ) | (1,049 | ) | |||
Total deferred income tax assets, net of valuation allowance | 51,440 | 45,435 | |||||
Deferred income tax liabilities: | |||||||
Intangible assets | (84,019 | ) | (70,752 | ) | |||
Property and equipment | (9,265 | ) | (8,455 | ) | |||
Prepaid expenses | (4,922 | ) | (4,079 | ) | |||
Deferred revenue | (1,676 | ) | (3,940 | ) | |||
Total deferred income tax liabilities | (99,882 | ) | (87,226 | ) | |||
Net deferred income tax liabilities | $ | (48,442 | ) | $ | (41,791 | ) |
2020 | 2019 | ||||||||||
Deferred income tax assets: | |||||||||||
Operating expenses not currently deductible | $ | 9,084 | $ | 10,214 | |||||||
Stock option and other employee benefit plans | 17,446 | 19,308 | |||||||||
Loss and credit carryforwards | 27,199 | 23,841 | |||||||||
Total deferred income tax assets | 53,729 | 53,363 | |||||||||
Valuation allowance | (1,490) | (1,923) | |||||||||
Total deferred income tax assets, net of valuation allowance | 52,239 | 51,440 | |||||||||
Deferred income tax liabilities: | |||||||||||
Intangible assets | (76,766) | (84,019) | |||||||||
Property and equipment | (9,918) | (9,265) | |||||||||
Prepaid expenses | (6,869) | (4,922) | |||||||||
Deferred revenue | 807 | (1,676) | |||||||||
Total deferred income tax liabilities | (92,746) | (99,882) | |||||||||
Net deferred income tax liabilities | $ | (40,507) | $ | (48,442) |
Years Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||
Stock option exercises | 999 | $ | 96,908 | 1,126 | $ | 74,907 | 1,113 | $ | 49,845 | |||||||||||
Purchases of common stock | (72 | ) | (14,289 | ) | (781 | ) | (150,050 | ) | (44 | ) | (6,613 | ) | ||||||||
Employee stock plan purchases | 53 | 9,576 | 45 | 8,051 | 51 | 7,044 | ||||||||||||||
Restricted stock units vested, net of withheld shares upon award settlement | 53 | (5,361 | ) | — | — | — | — |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||
Stock option exercises | 1,174 | $ | 124,363 | 999 | $ | 96,908 | 1,126 | $ | 74,907 | ||||||||||||||||||||||||||
Purchases of common stock | (59) | (15,484) | (72) | (14,289) | (781) | (150,050) | |||||||||||||||||||||||||||||
Employee stock plan purchases | 40 | 10,912 | 53 | 9,576 | 45 | 8,051 | |||||||||||||||||||||||||||||
Restricted stock units vested, net of withheld shares upon award settlement | 76 | (12,923) | 53 | (5,361) | 0 | 0 |
Years Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Expected life (in years) | 6.0 | 6.0 | 6.0 | |||||
Expected volatility | 26.6 | % | 26.7 | % | 28.1 | % | ||
Risk-free interest rate | 1.8 | % | 2.7 | % | 2.0 | % | ||
Expected forfeiture rate | — | % | — | % | — | % |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Expected life (in years) | 5.0 | 6.0 | 6.0 | ||||||||||||||
Expected volatility | 27.0 | % | 26.6 | % | 26.7 | % | |||||||||||
Risk-free interest rate | 0.4 | % | 1.8 | % | 2.7 | % | |||||||||||
Expected forfeiture rate | 0 | % | 0 | % | 0 | % |
Number of Shares | Weighted Average Grant Date Fair Value per Share | ||||||
Unvested at January 1, 2018 | — | $ | — | ||||
Granted | 336 | 221.29 | |||||
Vested | — | — | |||||
Forfeited | (2 | ) | 229.75 | ||||
Unvested at December 31, 2018 | 334 | 221.25 | |||||
Granted | 256 | 241.19 | |||||
Vested | (76 | ) | 221.15 | ||||
Forfeited | (14 | ) | 229.75 | ||||
Unvested at December 31, 2019 | 500 | $ | 231.57 |
Number of Shares | Weighted Average Grant Date Fair Value per Share | |||||||||||||
Unvested at January 1, 2019 | 334 | $ | 221.25 | |||||||||||
Granted | 256 | 241.19 | ||||||||||||
Vested | (76) | 221.15 | ||||||||||||
Forfeited | (14) | 229.75 | ||||||||||||
Unvested at December 31, 2019 | 500 | 231.57 | ||||||||||||
Granted | 204 | 379.94 | ||||||||||||
Vested | (110) | 232.59 | ||||||||||||
Forfeited | (7) | 266.94 | ||||||||||||
Unvested at December 31, 2020 | 587 | $ | 282.45 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding at December 31, 2016 | 5,156 | $ | 83.64 | |||||||||
Granted | 824 | 176.26 | ||||||||||
Exercised | (1,113 | ) | 44.80 | |||||||||
Forfeited | (50 | ) | 134.83 | |||||||||
Outstanding at December 31, 2017 | 4,817 | 107.91 | ||||||||||
Granted | 432 | 208.21 | ||||||||||
Exercised | (1,126 | ) | 66.53 | |||||||||
Forfeited | (31 | ) | 158.80 | |||||||||
Outstanding at December 31, 2018 | 4,092 | 129.51 | ||||||||||
Granted | 162 | 251.58 | ||||||||||
Exercised | (999 | ) | 96.92 | |||||||||
Forfeited | (29 | ) | 174.54 | |||||||||
Outstanding at December 31, 2019 | 3,226 | $ | 145.27 | 6 | $ | 499,124 | ||||||
Exercisable at December 31, 2019 | 2,067 | $ | 121.07 | 6 | $ | 369,938 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Outstanding at December 31, 2017 | 4,817 | $ | 107.91 | ||||||||||||||||||||
Granted | 432 | 208.21 | |||||||||||||||||||||
Exercised | (1,126) | 66.53 | |||||||||||||||||||||
Forfeited | (31) | 158.80 | |||||||||||||||||||||
Outstanding at December 31, 2018 | 4,092 | 129.51 | |||||||||||||||||||||
Granted | 162 | 251.58 | |||||||||||||||||||||
Exercised | (999) | 96.92 | |||||||||||||||||||||
Forfeited | (29) | 174.54 | |||||||||||||||||||||
Outstanding at December 31, 2019 | 3,226 | 145.27 | |||||||||||||||||||||
Granted | 128 | 403.99 | |||||||||||||||||||||
Exercised | (1,174) | 105.97 | |||||||||||||||||||||
Forfeited | (3) | 165.93 | |||||||||||||||||||||
Outstanding at December 31, 2020 | 2,177 | $ | 181.63 | 6 | $ | 554,709 | |||||||||||||||||
Exercisable at December 31, 2020 | 1,424 | $ | 155.06 | 6 | $ | 400,814 |
2019 | 2018 | 2017 | |||||||||
Weighted average grant-date fair value of stock options granted | $ | 74.54 | $ | 66.52 | $ | 55.56 | |||||
Total intrinsic value of stock options exercised | $ | 155,899 | $ | 176,716 | $ | 137,699 |
2020 | 2019 | 2018 | |||||||||||||||
Weighted average grant-date fair value of stock options granted | $ | 98.69 | $ | 74.54 | $ | 66.52 | |||||||||||
Total intrinsic value of stock options exercised | $ | 292,394 | $ | 155,899 | $ | 176,716 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Cost of software services, maintenance and subscriptions | $ | 15,002 | $ | 13,588 | $ | 9,415 | |||||
Selling, general and administrative expenses | 44,965 | 39,152 | 27,933 | ||||||||
Total share-based compensation expenses | 59,967 | 52,740 | 37,348 | ||||||||
Excess tax benefit | (29,819 | ) | (32,487 | ) | (40,624 | ) | |||||
Net decrease (increase) in net income | $ | 30,148 | $ | 20,253 | $ | (3,276 | ) |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cost of subscriptions, software services and maintenance | $ | 18,125 | $ | 15,002 | $ | 13,588 | |||||||||||
Selling, general and administrative expenses | 49,240 | 44,965 | 39,152 | ||||||||||||||
Total share-based compensation expenses | 67,365 | 59,967 | 52,740 | ||||||||||||||
Excess tax benefit | (60,190) | (29,819) | (32,487) | ||||||||||||||
Net decrease in net income | $ | 7,175 | $ | 30,148 | $ | 20,253 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Numerator for basic and diluted earnings per share: | |||||||||||
Net income | $ | 146,527 | $ | 147,462 | $ | 169,571 | |||||
Denominator: | |||||||||||
Weighted-average basic common shares outstanding | 38,640 | 38,445 | 37,273 | ||||||||
Assumed conversion of dilutive securities: | |||||||||||
Stock options | 1,465 | 1,678 | 1,973 | ||||||||
Denominator for diluted earnings per share - Adjusted weighted-average shares | 40,105 | 40,123 | 39,246 | ||||||||
Earnings per common share: | |||||||||||
Basic | $ | 3.79 | $ | 3.84 | $ | 4.55 | |||||
Diluted | $ | 3.65 | $ | 3.68 | $ | 4.32 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Numerator for basic and diluted earnings per share: | |||||||||||||||||
Net income | $ | 194,820 | $ | 146,527 | $ | 147,462 | |||||||||||
Denominator: | |||||||||||||||||
Weighted-average basic common shares outstanding | 40,035 | 38,640 | 38,445 | ||||||||||||||
Assumed conversion of dilutive securities: | |||||||||||||||||
Share-based awards | 1,491 | 1,465 | 1,678 | ||||||||||||||
Denominator for diluted earnings per share - Adjusted weighted-average shares | 41,526 | 40,105 | 40,123 | ||||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 4.87 | $ | 3.79 | $ | 3.84 | |||||||||||
Diluted | $ | 4.69 | $ | 3.65 | $ | 3.68 |
Lease Costs | Financial Statement Classification | For the year ended | ||||
2019 | ||||||
Operating lease cost | Selling, general and administrative expenses | $ | 6,379 | |||
Short-term lease cost | Selling, general and administrative expenses | 2,269 | ||||
Variable lease cost | Selling, general and administrative expenses | 1,274 | ||||
Net lease cost | $ | 9,922 |
Lease Costs | Financial Statement Classification | For the year ended | For the year ended | |||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Operating lease cost | Selling, general and administrative expenses | $ | 6,524 | $ | 6,379 | |||||||||||||||
Short-term lease cost | Selling, general and administrative expenses | 1,940 | 2,269 | |||||||||||||||||
Variable lease cost | Selling, general and administrative expenses | 1,760 | 1,274 | |||||||||||||||||
Net lease cost | $ | 10,224 | $ | 9,922 |
December 31, 2019 | ||||
Assets: | ||||
Operating lease right-of-use assets | $ | 18,992 | ||
Liabilities: | ||||
Operating leases, short-term | 6,387 | |||
Operating leases, long-term | 16,822 | |||
Total lease liabilities | $ | 23,209 |
2020 | 2019 | |||||||||||||
Assets: | ||||||||||||||
Operating lease right-of-use assets | $ | 18,734 | $ | 18,992 | ||||||||||
Liabilities: | ||||||||||||||
Operating leases, short-term | 5,904 | 6,387 | ||||||||||||
Operating leases, long-term | 16,279 | 16,822 | ||||||||||||
Total lease liabilities | $ | 22,183 | $ | 23,209 |
Other Information | For the year ended | For the year ended | ||||||||||||
2020 | 2019 | |||||||||||||
Cash Flows (in thousands): | ||||||||||||||
Cash paid amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash outflows from operating leases | $ | 8,131 | $ | 7,267 | ||||||||||
Right-of-use assets obtained in exchange for lease obligations (non-cash): | ||||||||||||||
Operating leases | $ | 5,524 | $ | 3,466 | ||||||||||
Lease Term and Discount Rate: | ||||||||||||||
Weighted average remaining lease term (years) | 3 | 4 | ||||||||||||
Weighted average discount rate | 3.28 | % | 4.00 | % |
Other Information | For the year ended | |||
2019 | ||||
Cash Flows (in thousands): | ||||
Cash paid amounts included in the measurement of lease liabilities: | ||||
Operating cash outflows from operating leases | $ | 7,267 | ||
Right-of-use assets obtained in exchange for lease obligations (non-cash): | ||||
Operating leases | $ | 3,466 | ||
Lease Term and Discount Rate: | ||||
Weighted average remaining lease term (years) | 4 | |||
Weighted average discount rate | 4.00 | % |
Year ending December 31, | Amount | |||||||
2021 | $ | 7,015 | ||||||
2022 | 4,853 | |||||||
2023 | 3,826 | |||||||
2024 | 3,337 | |||||||
2025 | 2,198 | |||||||
Thereafter | 2,537 | |||||||
Total lease payments | 23,766 | |||||||
Less: Interest | (1,583) | |||||||
Present value of operating lease liabilities | $ | 22,183 |
Year ending December 31, | Amount | |||
2020 | $ | 7,684 | ||
2021 | 6,246 | |||
2022 | 3,960 | |||
2023 | 2,923 | |||
2024 | 2,478 | |||
Thereafter | 2,042 | |||
Total lease payments | 25,333 | |||
Less: Interest | (2,124 | ) | ||
Present value of operating lease liabilities | $ | 23,209 |
Year ending December 31, | Amount | |||
2019 | $ | 5,994 | ||
2020 | 5,146 | |||
2021 | 3,976 | |||
2022 | 1,925 | |||
2023 | 1,164 | |||
Thereafter | 2,132 | |||
Total | $ | 20,337 |
Year ending December 31, | Amount | |||
2020 | $ | 1,341 | ||
2021 | 1,372 | |||
2022 | 1,402 | |||
2023 | 1,432 | |||
2024 | 1,462 | |||
Thereafter | 857 | |||
Total | $ | 7,866 |
Year ending December 31, | Amount | |||||||
2021 | $ | 1,372 | ||||||
2022 | 1,402 | |||||||
2023 | 1,432 | |||||||
2024 | 1,462 | |||||||
2025 | 858 | |||||||
Thereafter | 0 | |||||||
Total | $ | 6,526 |
For the year ended December 31, 2020 | Enterprise Software | Appraisal and Tax | Corporate | Totals | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
Software licenses and royalties | $ | 64,200 | $ | 8,964 | $ | 0 | $ | 73,164 | |||||||||||||||
Subscriptions | 326,284 | 24,364 | 0 | 350,648 | |||||||||||||||||||
Software services | 164,520 | 21,889 | 0 | 186,409 | |||||||||||||||||||
Maintenance | 429,224 | 38,289 | 0 | 467,513 | |||||||||||||||||||
Appraisal services | 0 | 21,127 | 0 | 21,127 | |||||||||||||||||||
Hardware and other | 17,670 | 121 | 11 | 17,802 | |||||||||||||||||||
Intercompany | 19,061 | 70 | (19,131) | — | |||||||||||||||||||
Total revenues | $ | 1,020,959 | $ | 114,824 | $ | (19,120) | $ | 1,116,663 | |||||||||||||||
Depreciation and amortization expense | 67,411 | 1,055 | 13,191 | 81,657 | |||||||||||||||||||
Segment operating income | 285,271 | 27,383 | (86,104) | 226,550 | |||||||||||||||||||
Capital expenditures | 11,099 | 3,823 | 6,826 | 21,748 | |||||||||||||||||||
Segment assets | $ | 847,672 | $ | 94,149 | $ | 1,665,453 | $ | 2,607,274 |
For the year ended December 31, 2019 | Enterprise Software | Appraisal and Tax | Corporate | Totals | |||||||||||
Revenues | |||||||||||||||
Software licenses and royalties | $ | 92,567 | $ | 7,638 | $ | — | $ | 100,205 | |||||||
Subscriptions | 285,092 | 11,260 | — | 296,352 | |||||||||||
Software services | 185,892 | 27,169 | — | 213,061 | |||||||||||
Maintenance | 405,063 | 25,255 | — | 430,318 | |||||||||||
Appraisal services | — | 23,479 | — | 23,479 | |||||||||||
Hardware and other | 16,735 | 21 | 6,256 | 23,012 | |||||||||||
Intercompany | 15,496 | — | (15,496 | ) | — | ||||||||||
Total revenues | $ | 1,000,845 | $ | 94,822 | $ | (9,240 | ) | $ | 1,086,427 | ||||||
Depreciation and amortization expense | 64,289 | 926 | 11,457 | 76,672 | |||||||||||
Segment operating income | 261,494 | 20,789 | (73,829 | ) | 208,454 | ||||||||||
Capital expenditures | 19,335 | 8,384 | 10,379 | 38,098 | |||||||||||
Segment assets | $ | 834,010 | $ | 90,536 | $ | 1,267,068 | $ | 2,191,614 |
For the year ended December 31, 2018 | Enterprise Software | Appraisal and Tax | Corporate | Totals | |||||||||||
Revenues | |||||||||||||||
Software licenses and royalties | $ | 83,735 | $ | 9,706 | $ | — | $ | 93,441 | |||||||
Subscriptions | 210,740 | 9,807 | — | 220,547 | |||||||||||
Software services | 166,921 | 24,348 | — | 191,269 | |||||||||||
Maintenance | 359,904 | 24,617 | — | 384,521 | |||||||||||
Appraisal services | — | 21,846 | — | 21,846 | |||||||||||
Hardware and other | 18,745 | 32 | 4,881 | 23,658 | |||||||||||
Intercompany | 13,155 | — | (13,155 | ) | — | ||||||||||
Total revenues | $ | 853,200 | $ | 90,356 | $ | (8,274 | ) | $ | 935,282 | ||||||
Depreciation and amortization expense | 50,130 | 914 | 10,715 | 61,759 | |||||||||||
Segment operating income | 237,159 | 23,094 | (68,572 | ) | 191,681 | ||||||||||
Capital expenditures | 13,973 | 782 | 10,377 | 25,132 | |||||||||||
Segment assets | $ | 556,100 | $ | 63,670 | $ | 1,171,193 | $ | 1,790,963 |
For the year ended December 31, 2017 | Enterprise Software | Appraisal and Tax | Corporate | Totals | |||||||||||
Revenues | |||||||||||||||
Software licenses and royalties | $ | 78,388 | $ | 7,854 | $ | — | $ | 86,242 | |||||||
Subscriptions | 164,317 | 7,859 | — | 172,176 | |||||||||||
Software services | 161,245 | 19,215 | — | 180,460 | |||||||||||
Maintenance | 337,701 | 21,618 | — | 359,319 | |||||||||||
Appraisal services | — | 25,023 | — | 25,023 | |||||||||||
Hardware and other | 13,057 | 10 | 4,612 | 17,679 | |||||||||||
Intercompany | 10,425 | — | (10,425 | ) | — | ||||||||||
Total revenues | $ | 765,133 | $ | 81,579 | $ | (5,813 | ) | $ | 840,899 | ||||||
Depreciation and amortization expense | 43,987 | 760 | 8,648 | 53,395 | |||||||||||
Segment operating income | 229,001 | 20,788 | (51,964 | ) | 197,825 | ||||||||||
Capital expenditures | 28,096 | 1,181 | 16,341 | 45,618 | |||||||||||
Segment assets | $ | 365,736 | $ | 46,279 | $ | 1,199,336 | $ | 1,611,351 |
For the year ended December 31, 2019 | Enterprise Software | Appraisal and Tax | Corporate | Totals | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
Software licenses and royalties | $ | 90,808 | $ | 9,397 | $ | 0 | $ | 100,205 | |||||||||||||||
Subscriptions | 279,282 | 17,070 | 0 | 296,352 | |||||||||||||||||||
Software services | 179,865 | 33,196 | 0 | 213,061 | |||||||||||||||||||
Maintenance | 393,521 | 36,797 | 0 | 430,318 | |||||||||||||||||||
Appraisal services | 0 | 23,479 | 0 | 23,479 | |||||||||||||||||||
Hardware and other | 16,553 | 203 | 6,256 | 23,012 | |||||||||||||||||||
Intercompany | 15,290 | 206 | (15,496) | — | |||||||||||||||||||
Total revenues | $ | 975,319 | $ | 120,348 | $ | (9,240) | $ | 1,086,427 | |||||||||||||||
Depreciation and amortization expense | 64,245 | 970 | 11,457 | 76,672 | |||||||||||||||||||
Segment operating income | 255,365 | 26,918 | (73,829) | 208,454 | |||||||||||||||||||
Capital expenditures | 19,283 | 8,436 | 10,379 | 38,098 | |||||||||||||||||||
Segment assets | $ | 833,203 | $ | 91,343 | $ | 1,267,068 | $ | 2,191,614 |
For the year ended December 31, 2018 | Enterprise Software | Appraisal and Tax | Corporate | Totals | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
Software licenses and royalties | $ | 81,299 | $ | 12,142 | $ | 0 | $ | 93,441 | |||||||||||||||
Subscriptions | 205,193 | 15,354 | 0 | 220,547 | |||||||||||||||||||
Software services | 161,612 | 29,657 | 0 | 191,269 | |||||||||||||||||||
Maintenance | 349,387 | 35,134 | 0 | 384,521 | |||||||||||||||||||
Appraisal services | 0 | 21,846 | 0 | 21,846 | |||||||||||||||||||
Hardware and other | 18,387 | 390 | 4,881 | 23,658 | |||||||||||||||||||
Intercompany | 12,764 | 391 | (13,155) | — | |||||||||||||||||||
Total revenues | $ | 828,642 | $ | 114,914 | $ | (8,274) | $ | 935,282 | |||||||||||||||
Depreciation and amortization expense | 49,921 | 1,123 | 10,715 | 61,759 | |||||||||||||||||||
Segment operating income | 231,819 | 28,434 | (68,572) | 191,681 | |||||||||||||||||||
Capital expenditures | 9,918 | 1,241 | 13,973 | 25,132 | |||||||||||||||||||
Segment assets | $ | 554,960 | $ | 64,810 | $ | 1,171,193 | $ | 1,790,963 |
Reconciliation of reportable segment operating | Years Ended December 31, | |||||||||||||||||||
income to the Company's consolidated totals: | 2020 | 2019 | 2018 | |||||||||||||||||
Total segment operating income | $ | 226,550 | $ | 208,454 | $ | 191,681 | ||||||||||||||
Amortization of acquired software | (31,962) | (30,642) | (22,972) | |||||||||||||||||
Amortization of customer and trade name intangibles | (21,662) | (21,445) | (16,217) | |||||||||||||||||
Other income, net | 2,116 | 3,471 | 3,378 | |||||||||||||||||
Income before income taxes | $ | 175,042 | $ | 159,838 | $ | 155,870 |
Reconciliation of reportable segment operating | Years Ended December 31, | |||||||||||
income to the Company's consolidated totals: | 2019 | 2018 | 2017 | |||||||||
Total segment operating income | $ | 208,454 | $ | 191,681 | $ | 197,825 | ||||||
Amortization of acquired software | (30,642 | ) | (22,972 | ) | (21,686 | ) | ||||||
Amortization of customer and trade name intangibles | (21,445 | ) | (16,217 | ) | (13,381 | ) | ||||||
Other income (expense), net | 3,471 | 3,378 | 698 | |||||||||
Income before income taxes | $ | 159,838 | $ | 155,870 | $ | 163,456 |
For the year ended December 31, 2020 | Products and services transferred at a point in time | Products and services transferred over time | Total | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Software licenses and royalties | $ | 62,029 | $ | 11,135 | $ | 73,164 | ||||||||||||||
Subscriptions | 0 | 350,648 | 350,648 | |||||||||||||||||
Software services | 0 | 186,409 | 186,409 | |||||||||||||||||
Maintenance | 0 | 467,513 | 467,513 | |||||||||||||||||
Appraisal services | 0 | 21,127 | 21,127 | |||||||||||||||||
Hardware and other | 17,802 | 0 | 17,802 | |||||||||||||||||
Total | $ | 79,831 | $ | 1,036,832 | $ | 1,116,663 |
For the year ended December 31, 2019 | Products and services transferred at a point in time | Products and services transferred over time | Total | For the year ended December 31, 2019 | Products and services transferred at a point in time | Products and services transferred over time | Total | |||||||||||||||||||||||||
Revenues: | Revenues: | |||||||||||||||||||||||||||||||
Software licenses and royalties | $ | 84,900 | $ | 15,305 | $ | 100,205 | Software licenses and royalties | $ | 84,900 | $ | 15,305 | $ | 100,205 | |||||||||||||||||||
Subscriptions | — | 296,352 | 296,352 | Subscriptions | 0 | 296,352 | 296,352 | |||||||||||||||||||||||||
Software services | — | 213,061 | 213,061 | Software services | 0 | 213,061 | 213,061 | |||||||||||||||||||||||||
Maintenance | — | 430,318 | 430,318 | Maintenance | 0 | 430,318 | 430,318 | |||||||||||||||||||||||||
Appraisal services | — | 23,479 | 23,479 | Appraisal services | 0 | 23,479 | 23,479 | |||||||||||||||||||||||||
Hardware and other | 23,012 | — | 23,012 | Hardware and other | 23,012 | 0 | 23,012 | |||||||||||||||||||||||||
Total | $ | 107,912 | $ | 978,515 | $ | 1,086,427 | Total | $ | 107,912 | $ | 978,515 | $ | 1,086,427 |
For the year ended December 31, 2018 | Products and services transferred at a point in time | Products and services transferred over time | Total | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Software licenses and royalties | $ | 75,188 | $ | 18,253 | $ | 93,441 | ||||||||||||||
Subscriptions | 0 | 220,547 | 220,547 | |||||||||||||||||
Software services | 0 | 191,269 | 191,269 | |||||||||||||||||
Maintenance | 0 | 384,521 | 384,521 | |||||||||||||||||
Appraisal services | 0 | 21,846 | 21,846 | |||||||||||||||||
Hardware and other | 23,658 | 0 | 23,658 | |||||||||||||||||
Total | $ | 98,846 | $ | 836,436 | $ | 935,282 |
For the year ended December 31, 2018 | Products and services transferred at a point in time | Products and services transferred over time | Total | |||||||||
Revenues: | ||||||||||||
Software licenses and royalties | $ | 75,188 | $ | 18,253 | $ | 93,441 | ||||||
Subscriptions | — | 220,547 | 220,547 | |||||||||
Software services | — | 191,269 | 191,269 | |||||||||
Maintenance | — | 384,521 | 384,521 | |||||||||
Appraisal services | — | 21,846 | 21,846 | |||||||||
Hardware and other | 23,658 | — | 23,658 | |||||||||
Total | $ | 98,846 | $ | 836,436 | $ | 935,282 |
For the year ended December 31, 2017 | Products and services transferred at a point in time | Products and services transferred over time | Total | |||||||||
Revenues: | ||||||||||||
Software licenses and royalties | $ | 69,167 | $ | 17,075 | $ | 86,242 | ||||||
Subscriptions | — | 172,176 | 172,176 | |||||||||
Software services | — | 180,460 | 180,460 | |||||||||
Maintenance | — | 359,319 | 359,319 | |||||||||
Appraisal services | — | 25,023 | 25,023 | |||||||||
Hardware and other | 17,679 | — | 17,679 | |||||||||
Total | $ | 86,846 | $ | 754,053 | $ | 840,899 |
For the year ended December 31, 2020 | Enterprise Software | Appraisal and Tax | Corporate | Totals | ||||||||||||||||||||||
Recurring revenues | $ | 755,508 | $ | 62,652 | $ | 0 | $ | 818,160 | ||||||||||||||||||
Non-recurring revenues | 246,390 | 52,102 | 11 | 298,503 | ||||||||||||||||||||||
Intercompany | 19,061 | 70 | (19,131) | — | ||||||||||||||||||||||
Total revenues | $ | 1,020,959 | $ | 114,824 | $ | (19,120) | $ | 1,116,663 |
For the year ended December 31, 2019 | Enterprise Software | Appraisal and Tax | Corporate | Totals | ||||||||||||||||||||||
Recurring revenues | $ | 672,804 | $ | 53,866 | $ | 0 | $ | 726,670 | ||||||||||||||||||
Non-recurring revenues | 287,225 | 66,276 | 6,256 | 359,757 | ||||||||||||||||||||||
Intercompany | 15,290 | 206 | (15,496) | — | ||||||||||||||||||||||
Total revenues | $ | 975,319 | $ | 120,348 | $ | (9,240) | $ | 1,086,427 |
For the year ended December 31, 2018 | Enterprise Software | Appraisal and Tax | Corporate | Totals | ||||||||||||||||||||||
Recurring revenues | $ | 554,581 | $ | 50,488 | $ | 0 | $ | 605,069 | ||||||||||||||||||
Non-recurring revenues | 261,297 | 64,035 | 4,881 | 330,213 | ||||||||||||||||||||||
Intercompany | 12,764 | 391 | (13,155) | — | ||||||||||||||||||||||
Total revenues | $ | 828,642 | $ | 114,914 | $ | (8,274) | $ | 935,282 |
For the year ended December 31, 2019 | Enterprise Software | Appraisal and Tax | Corporate | Totals | ||||||||||||
Recurring revenues | $ | 690,156 | $ | 36,514 | $ | — | $ | 726,670 | ||||||||
Non-recurring revenues | 295,193 | 58,308 | 6,256 | 359,757 | ||||||||||||
Intercompany | 15,496 | — | (15,496 | ) | — | |||||||||||
Total revenues | $ | 1,000,845 | $ | 94,822 | $ | (9,240 | ) | $ | 1,086,427 |
For the year ended December 31, 2018 | Enterprise Software | Appraisal and Tax | Corporate | Totals | ||||||||||||
Recurring revenues | $ | 570,645 | $ | 34,424 | $ | — | $ | 605,069 | ||||||||
Non-recurring revenues | 269,400 | 55,932 | 4,881 | 330,213 | ||||||||||||
Intercompany | 13,155 | — | (13,155 | ) | — | |||||||||||
Total revenues | $ | 853,200 | $ | 90,356 | $ | (8,274 | ) | $ | 935,282 |
For the year ended December 31, 2017 | Enterprise Software | Appraisal and Tax | Corporate | Totals | ||||||||||||
Recurring revenues | $ | 502,018 | $ | 29,477 | $ | — | $ | 531,495 | ||||||||
Non-recurring revenues | 252,690 | 52,102 | 4,612 | 309,404 | ||||||||||||
Intercompany | 10,425 | — | (10,425 | ) | — | |||||||||||
Total revenues | $ | 765,133 | $ | 81,579 | $ | (5,813 | ) | $ | 840,899 |
December 31, 2019 | December 31, 2018 | |||||||
Enterprise Software | $ | 386,115 | $ | 327,521 | ||||
Appraisal and Tax | 25,210 | 20,018 | ||||||
Corporate | 1,369 | 3,397 | ||||||
Totals | $ | 412,694 | $ | 350,936 |
December 31, 2020 | December 31, 2019 | |||||||||||||
Enterprise Software | $ | 422,742 | $ | 375,838 | ||||||||||
Appraisal and Tax | 36,945 | 35,487 | ||||||||||||
Corporate | 1,691 | 1,369 | ||||||||||||
Totals | $ | 461,378 | $ | 412,694 |
2019 | ||||
Balance at beginning of year | $ | 350,936 | ||
Deferral of revenue | 993,109 | |||
Recognition of deferred revenue | (931,351 | ) | ||
Balance at end of year | $ | 412,694 |
2020 | ||||||||
Balance at beginning of year | $ | 412,694 | ||||||
Deferral of revenue | 1,094,185 | |||||||
Recognition of deferred revenue | (1,045,501) | |||||||
Balance at end of year | $ | 461,378 |
Quarters Ended | |||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||
Dec. 31 | Sept. 30 | June 30 | Mar. 31 | Dec. 31 | Sept. 30 | June 30 | Mar. 31 | ||||||||||||||||||||||||
Revenues | $ | 288,837 | $ | 275,400 | $ | 275,124 | $ | 247,066 | $ | 241,981 | $ | 236,067 | $ | 236,060 | $ | 221,174 | |||||||||||||||
Gross profit | 142,275 | 130,717 | 127,860 | 116,048 | 115,871 | 111,626 | 109,276 | 102,805 | |||||||||||||||||||||||
Income before income taxes | 47,790 | 40,552 | 36,419 | 35,077 | 40,107 | 38,626 | 37,700 | 39,437 | |||||||||||||||||||||||
Net income | 46,790 | 40,390 | 31,999 | 27,348 | 31,552 | 38,924 | 39,161 | 37,825 | |||||||||||||||||||||||
Earnings per diluted share | $ | 1.15 | $ | 1.00 | $ | 0.80 | $ | 0.69 | $ | 0.79 | $ | 0.96 | $ | 0.97 | $ | 0.95 | |||||||||||||||
Shares used in computing diluted earnings per share | 40,736 | 40,280 | 39,813 | 39,585 | 39,891 | 40,528 | 40,224 | 39,836 |
Quarters Ended | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31 | Sept. 30 | June 30 | Mar. 31 | Dec. 31 | Sept. 30 | June 30 | Mar. 31 | ||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 283,285 | $ | 285,746 | $ | 271,091 | $ | 276,541 | $ | 288,837 | $ | 275,400 | $ | 275,124 | $ | 247,066 | |||||||||||||||||||||||||||||||
Gross profit | 138,669 | 143,509 | 131,203 | 129,131 | 142,275 | 130,717 | 127,860 | 116,048 | |||||||||||||||||||||||||||||||||||||||
Income before income taxes | 48,412 | 49,936 | 41,811 | 34,883 | 47,790 | 40,552 | 36,419 | 35,077 | |||||||||||||||||||||||||||||||||||||||
Net income | 54,094 | 39,284 | 53,892 | 47,550 | 46,790 | 40,390 | 31,999 | 27,348 | |||||||||||||||||||||||||||||||||||||||
Earnings per diluted share | $ | 1.29 | $ | 0.94 | $ | 1.30 | $ | 1.16 | $ | 1.15 | $ | 1.00 | $ | 0.80 | $ | 0.69 | |||||||||||||||||||||||||||||||
Shares used in computing diluted earnings per share | 41,925 | 41,606 | 41,416 | 41,144 | 40,736 | 40,280 | 39,813 | 39,585 |