ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 91-1718107 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
6333 State Hwy 161, | 75038 | ||||
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | Accelerated filer | ||||||||||
Non-accelerated filer | o | Smaller reporting company | o | ||||||||
Emerging growth company | o |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.0001 per share | BCOR | NASDAQ Global Select Market |
Outstanding at | |||||
Class | |||||
Common Stock, Par Value $0.0001 |
Page | |||||||||||
Item 1. | |||||||||||
Unaudited Condensed Consolidated Statements of Stockholders' Equity | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
September 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 78,558 | $ | 51,713 | |||
Cash segregated under federal or other regulations | 313 | 2,355 | |||||
Available-for-sale investments | — | 7,101 | |||||
Accounts receivable, net of allowance | 6,952 | 10,209 | |||||
Commissions receivable | 16,432 | 16,144 | |||||
Other receivables | 592 | 4,004 | |||||
Prepaid expenses and other current assets, net | 4,777 | 6,321 | |||||
Total current assets | 107,624 | 97,847 | |||||
Long-term assets: | |||||||
Property and equipment, net | 9,552 | 10,836 | |||||
Goodwill, net | 549,064 | 548,741 | |||||
Other intangible assets, net | 336,872 | 362,178 | |||||
Other long-term assets | 2,557 | 3,057 | |||||
Total long-term assets | 898,045 | 924,812 | |||||
Total assets | $ | 1,005,669 | $ | 1,022,659 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,161 | $ | 4,536 | |||
Commissions and advisory fees payable | 16,564 | 16,587 | |||||
Accrued expenses and other current liabilities | 18,768 | 18,528 | |||||
Deferred revenue | 7,118 | 12,156 | |||||
Current portion of long-term debt, net | 2,560 | 2,560 | |||||
Total current liabilities | 48,171 | 54,367 | |||||
Long-term liabilities: | |||||||
Long-term debt, net | 344,232 | 248,221 | |||||
Convertible senior notes, net | — | 164,176 | |||||
Deferred tax liability, net | 59,118 | 111,126 | |||||
Deferred revenue | 1,031 | 1,849 | |||||
Other long-term liabilities | 8,530 | 10,205 | |||||
Total long-term liabilities | 412,911 | 535,577 | |||||
Total liabilities | 461,082 | 589,944 | |||||
Redeemable noncontrolling interests | 16,162 | 15,696 | |||||
Commitments and contingencies (Note 9) | |||||||
Stockholders’ equity: | |||||||
Common stock, par $0.0001—authorized shares, 900,000; issued and outstanding shares, | |||||||
46,077 and 41,845 | 5 | 4 | |||||
Additional paid-in capital | 1,552,609 | 1,510,152 | |||||
Accumulated deficit | (1,024,222 | ) | (1,092,756 | ) | |||
Accumulated other comprehensive income (loss) | 33 | (381 | ) | ||||
Total stockholders’ equity | 528,425 | 417,019 | |||||
Total liabilities and stockholders’ equity | $ | 1,005,669 | $ | 1,022,659 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
Wealth management services revenue | $ | 86,809 | $ | 80,088 | $ | 254,772 | $ | 233,496 | |||||||
Tax preparation services revenue | 3,362 | 3,149 | 156,936 | 135,614 | |||||||||||
Total revenue | 90,171 | 83,237 | 411,708 | 369,110 | |||||||||||
Operating expenses: | |||||||||||||||
Cost of revenue: | |||||||||||||||
Wealth management services cost of revenue | 59,607 | 54,921 | 172,444 | 158,213 | |||||||||||
Tax preparation services cost of revenue | 1,314 | 1,319 | 7,543 | 6,549 | |||||||||||
Amortization of acquired technology | 50 | 49 | 145 | 765 | |||||||||||
Total cost of revenue | 60,971 | 56,289 | 180,132 | 165,527 | |||||||||||
Engineering and technology | 5,051 | 4,588 | 14,041 | 12,842 | |||||||||||
Sales and marketing | 13,680 | 11,965 | 84,974 | 75,715 | |||||||||||
General and administrative | 12,207 | 11,638 | 39,405 | 35,899 | |||||||||||
Depreciation | 867 | 968 | 2,680 | 2,906 | |||||||||||
Amortization of other acquired intangible assets | 8,615 | 8,297 | 25,192 | 24,929 | |||||||||||
Restructuring | 106 | — | 2,726 | — | |||||||||||
Total operating expenses | 101,497 | 93,745 | 349,150 | 317,818 | |||||||||||
Operating income (loss) | (11,326 | ) | (10,508 | ) | 62,558 | 51,292 | |||||||||
Other loss, net | (5,241 | ) | (11,453 | ) | (39,149 | ) | (29,883 | ) | |||||||
Income (loss) from continuing operations before income taxes | (16,567 | ) | (21,961 | ) | 23,409 | 21,409 | |||||||||
Income tax benefit (expense) | (166 | ) | 8,537 | (5,952 | ) | (8,899 | ) | ||||||||
Income (loss) from continuing operations | (16,733 | ) | (13,424 | ) | 17,457 | 12,510 | |||||||||
Discontinued operations, net of income taxes | — | (40,528 | ) | — | (57,981 | ) | |||||||||
Net income (loss) | (16,733 | ) | (53,952 | ) | 17,457 | (45,471 | ) | ||||||||
Net income attributable to noncontrolling interests | (164 | ) | (167 | ) | (466 | ) | (426 | ) | |||||||
Net income (loss) attributable to Blucora, Inc. | $ | (16,897 | ) | $ | (54,119 | ) | $ | 16,991 | $ | (45,897 | ) | ||||
Net income (loss) per share attributable to Blucora, Inc. - basic: | |||||||||||||||
Continuing operations | $ | (0.37 | ) | $ | (0.33 | ) | $ | 0.39 | $ | 0.29 | |||||
Discontinued operations | — | (0.97 | ) | — | (1.40 | ) | |||||||||
Basic net income (loss) per share | $ | (0.37 | ) | $ | (1.30 | ) | $ | 0.39 | $ | (1.11 | ) | ||||
Net income (loss) per share attributable to Blucora, Inc. - diluted: | |||||||||||||||
Continuing operations | $ | (0.37 | ) | $ | (0.33 | ) | $ | 0.36 | $ | 0.29 | |||||
Discontinued operations | — | (0.97 | ) | — | (1.37 | ) | |||||||||
Diluted net income (loss) per share | $ | (0.37 | ) | $ | (1.30 | ) | $ | 0.36 | $ | (1.08 | ) | ||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 45,459 | 41,635 | 43,749 | 41,404 | |||||||||||
Diluted | 45,459 | 41,635 | 46,813 | 42,329 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||
Net income (loss) | $ | (16,733 | ) | $ | (53,952 | ) | $ | 17,457 | $ | (45,471 | ) | ||||
Unrealized gain on available-for-sale investments, net of tax | — | — | 1 | 10 | |||||||||||
Foreign currency translation adjustment | 223 | (77 | ) | 413 | 246 | ||||||||||
Other comprehensive income (loss) | 223 | (77 | ) | 414 | 256 | ||||||||||
Comprehensive income (loss) | (16,510 | ) | (54,029 | ) | 17,871 | (45,215 | ) | ||||||||
Comprehensive income attributable to noncontrolling interests | (164 | ) | (167 | ) | (466 | ) | (426 | ) | |||||||
Comprehensive income (loss) attributable to Blucora, Inc. | $ | (16,674 | ) | $ | (54,196 | ) | $ | 17,405 | $ | (45,641 | ) |
March 31, 2019 | December 31, 2018 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 149,762 | $ | 84,524 | |||||||
Cash segregated under federal or other regulations | 1,527 | 842 | |||||||||
Accounts receivable, net of allowance | 24,113 | 15,721 | |||||||||
Commissions receivable | 14,382 | 15,562 | |||||||||
Other receivables | 7,450 | 7,408 | |||||||||
Prepaid expenses and other current assets, net | 10,840 | 7,755 | |||||||||
Total current assets | 208,074 | 131,812 | |||||||||
Long-term assets: | |||||||||||
Property and equipment, net | 12,322 | 12,389 | |||||||||
Right-of-use assets, net | 5,942 | — | |||||||||
Goodwill, net | 548,770 | 548,685 | |||||||||
Other intangible assets, net | 286,562 | 294,603 | |||||||||
Other long-term assets | 11,047 | 10,236 | |||||||||
Total long-term assets | 864,643 | 865,913 | |||||||||
Total assets | $ | 1,072,717 | $ | 997,725 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 10,230 | $ | 3,798 | |||||||
Commissions and advisory fees payable | 13,655 | 15,199 | |||||||||
Accrued expenses and other current liabilities | 48,675 | 18,980 | |||||||||
Lease liabilities | 6,493 | 46 | |||||||||
Deferred revenue | 6,424 | 10,257 | |||||||||
Total current liabilities | 85,477 | 48,280 | |||||||||
Long-term liabilities: | |||||||||||
Long-term debt, net | 260,570 | 260,390 | |||||||||
Deferred tax liability, net | 39,422 | 40,394 | |||||||||
Deferred revenue | 7,890 | 8,581 | |||||||||
Lease liabilities | 2,118 | 100 | |||||||||
Other long-term liabilities | 6,186 | 7,440 | |||||||||
Total long-term liabilities | 316,186 | 316,905 | |||||||||
Total liabilities | 401,663 | 365,185 | |||||||||
Redeemable noncontrolling interests | 2,517 | 24,945 | |||||||||
Commitments and contingencies (Note 7) | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, par $0.0001—authorized shares, 900,000; issued and outstanding shares, | |||||||||||
48,255 and 48,044, respectively | 5 | 5 | |||||||||
Additional paid-in capital | 1,570,026 | 1,569,725 | |||||||||
Accumulated deficit | (901,155) | (961,689) | |||||||||
Accumulated other comprehensive loss | (339) | (446) | |||||||||
Total stockholders’ equity | 668,537 | 607,595 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,072,717 | $ | 997,725 |
Three months ended March 31, | ||||||||||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
Wealth management services revenue | $ | 89,532 | $ | 92,082 | ||||||||||||||||||||||||||||
Tax preparation services revenue | 136,236 | 113,883 | ||||||||||||||||||||||||||||||
Total revenue | 225,768 | 205,965 | ||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||||||||||||
Wealth management services cost of revenue | 61,374 | 63,064 | ||||||||||||||||||||||||||||||
Tax preparation services cost of revenue | 4,201 | 4,353 | ||||||||||||||||||||||||||||||
Amortization of acquired technology | — | 50 | ||||||||||||||||||||||||||||||
Total cost of revenue | 65,575 | 67,467 | ||||||||||||||||||||||||||||||
Engineering and technology | 6,529 | 5,131 | ||||||||||||||||||||||||||||||
Sales and marketing | 55,572 | 55,253 | ||||||||||||||||||||||||||||||
General and administrative | 18,874 | 14,866 | ||||||||||||||||||||||||||||||
Depreciation | 1,061 | 1,915 | ||||||||||||||||||||||||||||||
Amortization of other acquired intangible assets | 8,044 | 8,307 | ||||||||||||||||||||||||||||||
Restructuring | — | 289 | ||||||||||||||||||||||||||||||
Total operating expenses | 155,655 | 153,228 | ||||||||||||||||||||||||||||||
Operating income | 70,113 | 52,737 | ||||||||||||||||||||||||||||||
Other loss, net | (3,958) | (5,228) | ||||||||||||||||||||||||||||||
Income before income taxes | 66,155 | 47,509 | ||||||||||||||||||||||||||||||
Income tax expense | (3,985) | (1,963) | ||||||||||||||||||||||||||||||
Net income | 62,170 | 45,546 | ||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | (205) | ||||||||||||||||||||||||||||||
Net income attributable to Blucora, Inc. | $ | 62,170 | $ | 45,341 | ||||||||||||||||||||||||||||
Net income per share attributable to Blucora, Inc.: | ||||||||||||||||||||||||||||||||
Basic | $ | 1.29 | $ | 0.97 | ||||||||||||||||||||||||||||
Diluted | $ | 1.25 | $ | 0.93 | ||||||||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 48,161 | 46,641 | ||||||||||||||||||||||||||||||
Diluted | 49,542 | 48,665 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | $ | 62,170 | $ | 45,546 | ||||||||||||||||||||||||||||
Foreign currency translation adjustment | 107 | (137) | ||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 107 | (137) | ||||||||||||||||||||||||||||||
Comprehensive income | 62,277 | 45,409 | ||||||||||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | — | (205) | ||||||||||||||||||||||||||||||
Comprehensive income attributable to Blucora, Inc. | $ | 62,277 | $ | 45,204 |
Redeemable Noncontrolling Interests | Additional- paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||||||||||||||
Common stock | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2017 | $ | 18,033 | 46,367 | $ | 5 | $ | 1,555,560 | $ | (1,014,174) | $ | (4) | $ | 541,387 | ||||||||||||||||||||||||||||||||||
Common stock issued for stock options and restricted stock units | — | 462 | — | 2,534 | — | — | 2,534 | ||||||||||||||||||||||||||||||||||||||||
Common stock issued for employee stock purchase plan | — | — | — | 703 | — | — | 703 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (137) | (137) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | 2,958 | — | — | 2,958 | ||||||||||||||||||||||||||||||||||||||||
Tax payments from shares withheld for equity awards | — | — | — | (1,493) | — | — | (1,493) | ||||||||||||||||||||||||||||||||||||||||
Impact of adoption of new revenue recognition accounting standard | — | — | — | — | 1,851 | — | 1,851 | ||||||||||||||||||||||||||||||||||||||||
Net income | 205 | — | — | — | 45,341 | — | 45,341 | ||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2018 | $ | 18,238 | 46,829 | $ | 5 | $ | 1,560,262 | $ | (966,982) | $ | (141) | $ | 593,144 |
Redeemable Noncontrolling Interests | Additional- paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||||||||||||||
Common stock | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | $ | 24,945 | 48,044 | $ | 5 | $ | 1,569,725 | $ | (961,689) | $ | (446) | $ | 607,595 | ||||||||||||||||||||||||||||||||||
Common stock issued for stock options and restricted stock units | — | 211 | — | 283 | — | — | 283 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 107 | 107 | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | 2,443 | — | — | 2,443 | ||||||||||||||||||||||||||||||||||||||||
Tax payments from shares withheld for equity awards | — | — | — | (2,425) | — | — | (2,425) | ||||||||||||||||||||||||||||||||||||||||
Reclassification of mandatorily redeemable noncontrolling interests | (22,428) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Impact of adoption of new leases accounting standard | — | — | — | — | (1,636) | — | (1,636) | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 62,170 | — | $ | 62,170 | |||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2019 | $ | 2,517 | 48,255 | $ | 5 | $ | 1,570,026 | $ | (901,155) | $ | (339) | $ | 668,537 |
Three months ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Operating Activities: | |||||||||||||||||
Net income | $ | 62,170 | $ | 45,546 | |||||||||||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||||||||
Stock-based compensation | 2,443 | 2,955 | |||||||||||||||
Depreciation and amortization of acquired intangible assets | 9,354 | 10,359 | |||||||||||||||
Reduction of right-of-use lease assets | 904 | — | |||||||||||||||
Deferred income taxes | (972) | (749) | |||||||||||||||
Amortization of premium on investments, net, and debt issuance costs | 172 | 202 | |||||||||||||||
Accretion of debt discounts | 38 | 47 | |||||||||||||||
Loss on debt extinguishment | — | 776 | |||||||||||||||
Cash provided (used) by changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | (8,395) | (1,961) | |||||||||||||||
Commissions receivable | 1,180 | (240) | |||||||||||||||
Other receivables | (42) | 2,588 | |||||||||||||||
Prepaid expenses and other current assets | (3,085) | (319) | |||||||||||||||
Other long-term assets | (841) | (1,109) | |||||||||||||||
Accounts payable | 6,432 | 3,290 | |||||||||||||||
Commissions and advisory fees payable | (1,544) | (278) | |||||||||||||||
Deferred revenue | (4,524) | (4,213) | |||||||||||||||
Accrued expenses and other current and long-term liabilities | 6,946 | 556 | |||||||||||||||
Net cash provided by operating activities | 70,236 | 57,450 | |||||||||||||||
Investing Activities: | |||||||||||||||||
Purchases of property and equipment | (1,243) | (940) | |||||||||||||||
Net cash used by investing activities | (1,243) | (940) | |||||||||||||||
Financing Activities: | |||||||||||||||||
Payments on credit facilities | — | (40,000) | |||||||||||||||
Proceeds from stock option exercises | 283 | 2,534 | |||||||||||||||
Proceeds from issuance of stock through employee stock purchase plan | — | 703 | |||||||||||||||
Tax payments from shares withheld for equity awards | (2,425) | (1,493) | |||||||||||||||
Contingent consideration payments for business acquisition | (943) | (1,313) | |||||||||||||||
Net cash used by financing activities | (3,085) | (39,569) | |||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 15 | (6) | |||||||||||||||
Net increase in cash, cash equivalents, and restricted cash | 65,923 | 16,935 | |||||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 85,366 | 62,311 | |||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 151,289 | $ | 79,246 | |||||||||||||
Cash paid for income taxes | $ | 1,031 | $ | 457 | |||||||||||||
Cash paid for interest | $ | 3,624 | $ | 4,188 |
Nine months ended September 30, | |||||||
2017 | 2016 | ||||||
Operating Activities: | |||||||
Net income (loss) | $ | 17,457 | $ | (45,471 | ) | ||
Less: Discontinued operations, net of income taxes | — | (57,981 | ) | ||||
Net income from continuing operations | 17,457 | 12,510 | |||||
Adjustments to reconcile net income from continuing operations to net cash from operating activities: | |||||||
Stock-based compensation | 8,434 | 10,616 | |||||
Depreciation and amortization of acquired intangible assets | 28,553 | 29,080 | |||||
Restructuring (non-cash) | 1,499 | — | |||||
Deferred income taxes | (473 | ) | (12,484 | ) | |||
Amortization of premium on investments, net | 10 | 164 | |||||
Amortization of debt issuance costs | 891 | 1,440 | |||||
Accretion of debt discounts | 1,893 | 3,599 | |||||
(Gain) loss on debt extinguishment | 19,764 | (641 | ) | ||||
Revaluation of acquisition-related contingent consideration liability | — | 391 | |||||
Other | — | 18 | |||||
Cash provided (used) by changes in operating assets and liabilities: | |||||||
Accounts receivable | 3,259 | 793 | |||||
Commissions receivable | (288 | ) | 1,034 | ||||
Other receivables | 2,384 | 19,656 | |||||
Prepaid expenses and other current assets | 1,720 | 6,003 | |||||
Other long-term assets | 432 | (1,174 | ) | ||||
Accounts payable | (1,375 | ) | 1,151 | ||||
Commissions and advisory fees payable | (23 | ) | (1,600 | ) | |||
Deferred revenue | (5,856 | ) | (1,805 | ) | |||
Accrued expenses and other current and long-term liabilities | 949 | 19,786 | |||||
Net cash provided by operating activities from continuing operations | 79,230 | 88,537 | |||||
Investing Activities: | |||||||
Business acquisition, net of cash acquired | — | (1,788 | ) | ||||
Purchases of property and equipment | (3,809 | ) | (2,648 | ) | |||
Proceeds from sales of investments | 249 | — | |||||
Proceeds from maturities of investments | 7,252 | 11,808 | |||||
Purchases of investments | (409 | ) | (5,147 | ) | |||
Net cash provided by investing activities from continuing operations | 3,283 | 2,225 | |||||
Financing Activities: | |||||||
Proceeds from credit facilities | 367,212 | — | |||||
Payments on convertible notes | (172,827 | ) | (20,667 | ) | |||
Payments on credit facilities | (285,000 | ) | (105,000 | ) | |||
Proceeds from stock option exercises | 38,228 | 1,141 | |||||
Proceeds from issuance of stock through employee stock purchase plan | 1,428 | 1,402 | |||||
Tax payments from shares withheld for equity awards | (6,744 | ) | (1,447 | ) | |||
Contingent consideration payments for business acquisition | (946 | ) | — | ||||
Net cash used by financing activities from continuing operations | (58,649 | ) | (124,571 | ) | |||
Net cash provided (used) by continuing operations | 23,864 | (33,809 | ) | ||||
Net cash provided by operating activities from discontinued operations | — | 12,359 | |||||
Net cash provided by investing activities from discontinued operations | 1,028 | 43,230 | |||||
Net cash used by financing activities from discontinued operations | — | (9,000 | ) | ||||
Net cash provided by discontinued operations | 1,028 | 46,589 | |||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 86 | (15 | ) | ||||
Net increase in cash, cash equivalents, and restricted cash | 24,978 | 12,765 | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 54,868 | 59,830 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ | 79,846 | $ | 72,595 | |||
Cash paid for income taxes from continuing operations | $ | 1,013 | $ | 2,079 | |||
Cash paid for interest from continuing operations | $ | 14,205 | $ | 23,455 |
March 31, | December 31, | ||||||||||||||||||||||||||||
2019 | 2018 | 2018 | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 149,762 | $ | 77,107 | $ | 84,524 | |||||||||||||||||||||||
Cash segregated under federal or other regulations | 1,527 | 1,314 | 842 | ||||||||||||||||||||||||||
Restricted cash included in "Prepaid expenses and other current assets, net" | — | 275 | — | ||||||||||||||||||||||||||
Restricted cash included in "Other long-term assets" | — | 550 | — | ||||||||||||||||||||||||||
Total cash, cash equivalents, and restricted cash | $ | 151,289 | $ | 79,246 | $ | 85,366 |
September 30, | December 31, | ||||||||||||||
2017 | 2016 | 2016 | 2015 | ||||||||||||
Cash and cash equivalents | $ | 78,558 | $ | 71,165 | $ | 51,713 | $ | 55,473 | |||||||
Cash segregated under federal or other regulations | 313 | 630 | 2,355 | 3,557 | |||||||||||
Restricted cash included in "Prepaid expenses and other current assets, net" | 425 | 100 | 250 | 100 | |||||||||||
Restricted cash included in "Other long-term assets" | 550 | 700 | 550 | 700 | |||||||||||
Total cash, cash equivalents, and restricted cash | $ | 79,846 | $ | 72,595 | $ | 54,868 | $ | 59,830 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Wealth Management | $ | 89,532 | $ | 92,082 | |||||||||||||||||||||||||
Tax Preparation | 136,236 | 113,883 | |||||||||||||||||||||||||||
Total revenue | 225,768 | 205,965 | |||||||||||||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||||||||
Wealth Management | 11,540 | 13,075 | |||||||||||||||||||||||||||
Tax Preparation | 79,272 | 58,806 | |||||||||||||||||||||||||||
Corporate-level activity | (20,699) | (19,144) | |||||||||||||||||||||||||||
Total operating income | 70,113 | 52,737 | |||||||||||||||||||||||||||
Other loss, net | (3,958) | (5,228) | |||||||||||||||||||||||||||
Income tax expense | (3,985) | (1,963) | |||||||||||||||||||||||||||
Net income | $ | 62,170 | $ | 45,546 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||
Wealth Management: | |||||||||||||||||||||||||||||
Commission | $ | 37,160 | $ | 42,870 | |||||||||||||||||||||||||
Advisory | 39,757 | 39,301 | |||||||||||||||||||||||||||
Asset-based | 9,693 | 7,172 | |||||||||||||||||||||||||||
Transaction and fee | 2,922 | 2,739 | |||||||||||||||||||||||||||
Total Wealth Management revenue | $ | 89,532 | $ | 92,082 | |||||||||||||||||||||||||
Tax Preparation: | |||||||||||||||||||||||||||||
Consumer | $ | 123,942 | $ | 101,912 | |||||||||||||||||||||||||
Professional | 12,294 | 11,971 | |||||||||||||||||||||||||||
Total Tax Preparation revenue | $ | 136,236 | $ | 113,883 |
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized Upon Transaction | Recognized Over Time | Total | Recognized Upon Transaction | Recognized Over Time | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commission revenue | $ | 15,684 | $ | 21,476 | $ | 37,160 | $ | 18,345 | $ | 24,525 | $ | 42,870 | |||||||||||||||||||||||||||||||||||||||||||||||
Advisory revenue | — | 39,757 | 39,757 | — | 39,301 | 39,301 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-based revenue | — | 9,693 | 9,693 | — | 7,172 | 7,172 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Transaction and fee revenue | 770 | 2,152 | 2,922 | 961 | 1,778 | 2,739 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 16,454 | $ | 73,078 | $ | 89,532 | $ | 19,306 | $ | 72,776 | $ | 92,082 |
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized Upon Transaction | Recognized Over Time | Total | Recognized Upon Transaction | Recognized Over Time | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | $ | 123,015 | $ | 927 | $ | 123,942 | $ | 101,912 | $ | — | $ | 101,912 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Professional | 10,842 | 1,452 | 12,294 | 10,396 | 1,575 | 11,971 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 133,857 | $ | 2,379 | $ | 136,236 | $ | 112,308 | $ | 1,575 | $ | 113,883 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Major classes of items in net income (loss): | |||||||||||||||
Revenues | $ | — | $ | 53,721 | $ | — | $ | 209,108 | |||||||
Operating expenses | — | (50,952 | ) | — | (192,874 | ) | |||||||||
Other loss, net | — | (415 | ) | — | (844 | ) | |||||||||
Income from discontinued operations before income taxes | — | 2,354 | — | 15,390 | |||||||||||
Loss on sale of discontinued operations before income taxes | — | (29,509 | ) | — | (68,034 | ) | |||||||||
Discontinued operations, before income taxes | — | (27,155 | ) | — | (52,644 | ) | |||||||||
Income tax expense | — | (13,373 | ) | — | (5,337 | ) | |||||||||
Discontinued operations, net of income taxes | $ | — | $ | (40,528 | ) | $ | — | $ | (57,981 | ) |
Employee-Related Termination Costs | Contract Termination Costs | Fixed Asset Impairments | Stock-Based Compensation | Other Costs | Total | ||||||||||||||||||
Balance as of December 31, 2016 | $ | 4,234 | $ | — | $ | — | $ | — | $ | — | $ | 4,234 | |||||||||||
Restructuring charges | (30 | ) | (241 | ) | 1,878 | 981 | 32 | 2,620 | |||||||||||||||
Payments | (434 | ) | (161 | ) | — | — | (32 | ) | (627 | ) | |||||||||||||
Non-cash | — | 1,457 | (1,878 | ) | (981 | ) | — | (1,402 | ) | ||||||||||||||
Balance as of June 30, 2017 | 3,770 | 1,055 | — | — | — | 4,825 | |||||||||||||||||
Restructuring charges | (3 | ) | 97 | 12 | 106 | ||||||||||||||||||
Payments | (2,447 | ) | (256 | ) | — | — | (12 | ) | (2,715 | ) | |||||||||||||
Non-cash | — | — | — | (97 | ) | — | (97 | ) | |||||||||||||||
Balance as of September 30, 2017 | $ | 1,320 | $ | 799 | $ | — | $ | — | $ | — | $ | 2,119 |
Fair value measurements at the reporting date using | |||||||||||||||||||||||||||||||||||
March 31, 2019 | Quoted prices in active markets using identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||||||||||||||||||||||
Cash equivalents: money market and other funds | $ | 23,317 | $ | 23,317 | $ | — | $ | — | |||||||||||||||||||||||||||
Total assets at fair value | $ | 23,317 | $ | 23,317 | $ | — | $ | — |
Fair value measurements at the reporting date using | |||||||||||||||
September 30, 2017 | Quoted prices in active markets using identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Cash equivalents: money market and other funds | $ | 10,827 | $ | — | $ | 10,827 | $ | — | |||||||
Total assets at fair value | $ | 10,827 | $ | — | $ | 10,827 | $ | — | |||||||
Acquisition-related contingent consideration liability | $ | 2,704 | $ | — | $ | — | $ | 2,704 | |||||||
Total liabilities at fair value | $ | 2,704 | $ | — | $ | — | $ | 2,704 |
Fair value measurements at the reporting date using | |||||||||||||||
December 31, 2016 | Quoted prices in active markets using identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Cash equivalents: | |||||||||||||||
U.S government securities | $ | 2,749 | $ | — | $ | 2,749 | $ | — | |||||||
Money market and other funds | 4,090 | — | 4,090 | — | |||||||||||
Commercial paper | 1,999 | — | 1,999 | — | |||||||||||
Taxable municipal bonds | 1,301 | — | 1,301 | — | |||||||||||
Total cash equivalents | 10,139 | — | 10,139 | — | |||||||||||
Available-for-sale investments: | |||||||||||||||
Debt securities: | |||||||||||||||
U.S. government securities | 2,000 | — | 2,000 | — | |||||||||||
Commercial paper | 1,998 | — | 1,998 | — | |||||||||||
Time deposits | 807 | — | 807 | — | |||||||||||
Taxable municipal bonds | 2,296 | — | 2,296 | — | |||||||||||
Total debt securities | 7,101 | — | 7,101 | — | |||||||||||
Total assets at fair value | $ | 17,240 | $ | — | $ | 17,240 | $ | — | |||||||
Acquisition-related contingent consideration liability | $ | 3,421 | $ | — | $ | — | $ | 3,421 | |||||||
Total liabilities at fair value | $ | 3,421 | $ | — | $ | — | $ | 3,421 |
Fair value measurements at the reporting date using | |||||||||||||||||||||||||||||||||||
December 31, 2018 | Quoted prices in active markets using identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||||||||||||||||||||||
Cash equivalents: money market and other funds | $ | 23,181 | $ | 23,181 | $ | — | $ | — | |||||||||||||||||||||||||||
Total assets at fair value | $ | 23,181 | $ | 23,181 | $ | — | $ | — | |||||||||||||||||||||||||||
Acquisition-related contingent consideration liability | $ | 1,275 | $ | — | $ | — | $ | 1,275 | |||||||||||||||||||||||||||
Total liabilities at fair value | $ | 1,275 | $ | — | $ | — | $ | 1,275 |
Acquisition-related contingent consideration liability: | |||||||||||
Balance as of December 31, 2018 | $ | 1,275 | |||||||||
Payment | (1,331) | ||||||||||
Foreign currency transaction loss | 56 | ||||||||||
Balance as of March 31, 2019 | $ | — |
Acquisition-related contingent consideration liability: | |||
Balance as of December 31, 2016 | $ | 3,421 | |
Payment | (946 | ) | |
Foreign currency transaction loss | 229 | ||
Balance as of September 30, 2017 | $ | 2,704 |
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||
Balance as of December 31, 2016 | $ | 7,102 | $ | — | $ | (1 | ) | $ | 7,101 |
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal amount | Discount | Debt issuance costs | Net carrying value | Principal amount | Discount | Debt issuance costs | Net carrying value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior secured credit facilities | $ | 265,000 | $ | (932) | $ | (3,498) | $ | 260,570 | $ | 265,000 | $ | (970) | $ | (3,640) | $ | 260,390 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||||
Principal amount | Discount | Debt issuance costs | Net carrying value | Principal amount | Discount | Debt issuance costs | Net carrying value | ||||||||||||||||||||||||
Senior secured credit facility | $ | 350,000 | $ | (1,681 | ) | $ | (4,727 | ) | $ | 343,592 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
TaxAct - HD Vest 2015 credit facility | — | — | — | — | 260,000 | (7,124 | ) | (5,295 | ) | 247,581 | |||||||||||||||||||||
Convertible Senior Notes | — | — | — | — | 172,859 | (6,913 | ) | (1,770 | ) | 164,176 | |||||||||||||||||||||
Note payable, related party | 3,200 | — | — | 3,200 | 3,200 | — | — | 3,200 | |||||||||||||||||||||||
Total debt | $ | 353,200 | $ | (1,681 | ) | $ | (4,727 | ) | $ | 346,792 | $ | 436,059 | $ | (14,037 | ) | $ | (7,065 | ) | $ | 414,957 |
Loss on debt extinguishment - TaxAct - HD Vest 2015 credit facility | $ | 9,593 | |
Loss on debt extinguishment - Convertible Senior Notes | 6,715 | ||
Total loss on debt extinguishment | $ | 16,308 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Contractual interest expense (Cash) | $ | — | $ | 1,836 | $ | 3,141 | $ | 5,782 | |||||||
Amortization of debt issuance costs (Non-cash) | — | 231 | 401 | 704 | |||||||||||
Accretion of debt discount (Non-cash) | — | 901 | 1,567 | 2,749 | |||||||||||
Total interest expense | $ | — | $ | 2,968 | $ | 5,109 | $ | 9,235 |
Balance as of December 31, 2016 | $ | 15,696 | |
Net income attributable to noncontrolling interests | 466 | ||
Balance as of September 30, 2017 | $ | 16,162 |
Three months ended March 31, | |||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||
Cost of revenue | $ | 520 | $ | 256 | |||||||||||||||||||||||||
Engineering and technology | 176 | 210 | |||||||||||||||||||||||||||
Sales and marketing | (193) | 516 | |||||||||||||||||||||||||||
General and administrative | 1,940 | 1,973 | |||||||||||||||||||||||||||
Total | $ | 2,443 | $ | 2,955 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of revenue | $ | 412 | $ | 52 | $ | 546 | $ | 117 | |||||||
Engineering and technology | 225 | 434 | 734 | 1,167 | |||||||||||
Sales and marketing | 529 | 661 | 1,801 | 1,688 | |||||||||||
General and administrative | 1,966 | 2,217 | 5,353 | 7,644 | |||||||||||
Restructuring | 97 | — | 1,078 | — | |||||||||||
Total in continuing operations | 3,229 | 3,364 | 9,512 | 10,616 | |||||||||||
Discontinued operations | — | (727 | ) | — | 2,014 | ||||||||||
Total | $ | 3,229 | $ | 2,637 | $ | 9,512 | $ | 12,630 |
Three months ended March 31, | |||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||
Stock options exercised | 79 | 320 | |||||||||||||||||||||||||||
RSUs vested | 132 | 106 | |||||||||||||||||||||||||||
Shares purchased pursuant to ESPP | — | 36 | |||||||||||||||||||||||||||
Total | 211 | 462 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Stock options exercised | 1,243 | — | 3,651 | 140 | |||||||
RSUs vested | 91 | 102 | 442 | 426 | |||||||
Shares purchased pursuant to ESPP | 62 | 114 | 138 | 191 | |||||||
Total | 1,396 | 216 | 4,231 | 757 |
(in thousands, except percentages) | |||||||||||||||||
Undiscounted cash flows: | |||||||||||||||||
2019 (for the nine months remaining in 2019) | $ | 5,747 | |||||||||||||||
2020 | 2,766 | ||||||||||||||||
2021 | 306 | ||||||||||||||||
Total undiscounted cash flows | 8,819 | ||||||||||||||||
Imputed interest | (343) | ||||||||||||||||
Present value of cash flows | $ | 8,476 | |||||||||||||||
Short-term operating lease liabilities | $ | 6,446 | |||||||||||||||
Long-term operating lease liabilities | 2,030 | ||||||||||||||||
Total operating lease liabilities | $ | 8,476 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
Wealth Management | $ | 86,809 | $ | 80,088 | $ | 254,772 | $ | 233,496 | |||||||
Tax Preparation | 3,362 | 3,149 | 156,936 | 135,614 | |||||||||||
Total revenue | 90,171 | 83,237 | 411,708 | 369,110 | |||||||||||
Operating income (loss): | |||||||||||||||
Wealth Management | 12,425 | 11,628 | 36,684 | 32,458 | |||||||||||
Tax Preparation | (6,238 | ) | (4,382 | ) | 83,410 | 72,987 | |||||||||
Corporate-level activity | (17,513 | ) | (17,754 | ) | (57,536 | ) | (54,153 | ) | |||||||
Total operating income (loss) | (11,326 | ) | (10,508 | ) | 62,558 | 51,292 | |||||||||
Other loss, net | (5,241 | ) | (11,453 | ) | (39,149 | ) | (29,883 | ) | |||||||
Income tax benefit (expense) | (166 | ) | 8,537 | (5,952 | ) | (8,899 | ) | ||||||||
Discontinued operations, net of income taxes | — | (40,528 | ) | — | (57,981 | ) | |||||||||
Net income (loss) | $ | (16,733 | ) | $ | (53,952 | ) | $ | 17,457 | $ | (45,471 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Wealth Management: | |||||||||||||||
Commission | $ | 39,432 | $ | 38,962 | $ | 117,181 | $ | 111,070 | |||||||
Advisory | 37,588 | 32,705 | 107,078 | 95,759 | |||||||||||
Asset-based | 6,526 | 5,476 | 19,276 | 16,689 | |||||||||||
Transaction and fee | 3,263 | 2,945 | 11,237 | 9,978 | |||||||||||
Total Wealth Management revenue | $ | 86,809 | $ | 80,088 | $ | 254,772 | $ | 233,496 | |||||||
Tax Preparation: | |||||||||||||||
Consumer | $ | 3,149 | $ | 2,950 | $ | 143,239 | $ | 122,678 | |||||||
Professional | 213 | 199 | 13,697 | 12,936 | |||||||||||
Total Tax Preparation revenue | $ | 3,362 | $ | 3,149 | $ | 156,936 | $ | 135,614 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Numerator: | |||||||||||||||
Income (loss) from continuing operations | $ | (16,733 | ) | $ | (13,424 | ) | $ | 17,457 | $ | 12,510 | |||||
Net income attributable to noncontrolling interests | (164 | ) | (167 | ) | (466 | ) | (426 | ) | |||||||
Income (loss) from continuing operations attributable to Blucora, Inc. | (16,897 | ) | (13,591 | ) | 16,991 | 12,084 | |||||||||
Loss from discontinued operations attributable to Blucora, Inc. | — | (40,528 | ) | — | (57,981 | ) | |||||||||
Net income (loss) attributable to Blucora, Inc. | $ | (16,897 | ) | $ | (54,119 | ) | $ | 16,991 | $ | (45,897 | ) | ||||
Denominator: | |||||||||||||||
Weighted average common shares outstanding, basic | 45,459 | 41,635 | 43,749 | 41,404 | |||||||||||
Dilutive potential common shares | — | — | 3,064 | 925 | |||||||||||
Weighted average common shares outstanding, diluted | 45,459 | 41,635 | 46,813 | 42,329 | |||||||||||
Net income (loss) per share attributable to Blucora, Inc. - basic: | |||||||||||||||
Continuing operations | $ | (0.37 | ) | $ | (0.33 | ) | $ | 0.39 | $ | 0.29 | |||||
Discontinued operations | — | (0.97 | ) | — | (1.40 | ) | |||||||||
Basic net income (loss) per share | $ | (0.37 | ) | $ | (1.30 | ) | $ | 0.39 | $ | (1.11 | ) | ||||
Net income (loss) per share attributable to Blucora, Inc. - diluted: | |||||||||||||||
Continuing operations | $ | (0.37 | ) | $ | (0.33 | ) | $ | 0.36 | $ | 0.29 | |||||
Discontinued operations | — | (0.97 | ) | — | (1.37 | ) | |||||||||
Diluted net income (loss) per share | $ | (0.37 | ) | $ | (1.30 | ) | $ | 0.36 | $ | (1.08 | ) | ||||
Shares excluded | 5,798 | 10,246 | 1,160 | 6,317 |
Three months ended March 31, | |||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Income | $ | 62,170 | $ | 45,546 | |||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | (205) | |||||||||||||||||||||||||||
Net income attributable to Blucora, Inc. | $ | 62,170 | $ | 45,341 | |||||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Weighted average common shares outstanding, basic | 48,161 | 46,641 | |||||||||||||||||||||||||||
Dilutive potential common shares | 1,381 | 2,024 | |||||||||||||||||||||||||||
Weighted average common shares outstanding, diluted | 49,542 | 48,665 | |||||||||||||||||||||||||||
Net income per share attributable to Blucora, Inc.: | |||||||||||||||||||||||||||||
Basic | $ | 1.29 | $ | 0.97 | |||||||||||||||||||||||||
Diluted | $ | 1.25 | $ | 0.93 | |||||||||||||||||||||||||
Shares excluded | 256 | 902 |
(In thousands, except percentages) | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Change | |||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 225,768 | $ | 205,965 | 10 | % | |||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 70,113 | $ | 52,737 | 33 | % |
(In thousands, except percentages) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
2017 | 2016 | Percentage Change | 2017 | 2016 | Percentage Change | ||||||||||||||||
Revenue | $ | 90,171 | $ | 83,237 | 8 | % | $ | 411,708 | $ | 369,110 | 12 | % | |||||||||
Operating income (loss) | $ | (11,326 | ) | $ | (10,508 | ) | 8 | % | $ | 62,558 | $ | 51,292 | 22 | % |
(In thousands, except percentages) | Three months ended September 30, | Nine months ended September 30, | (In thousands, except percentages) | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Percentage Change | 2017 | 2016 | Percentage Change | 2019 | 2018 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 86,809 | $ | 80,088 | 8 | % | $ | 254,772 | $ | 233,496 | 9 | % | Revenue | $ | 89,532 | $ | 92,082 | (3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 12,425 | $ | 11,628 | 7 | % | $ | 36,684 | $ | 32,458 | 13 | % | Operating income | $ | 11,540 | $ | 13,075 | (12) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment margin | 14 | % | 15 | % | 14 | % | 14 | % | Segment margin | 14 | % | 14 | % |
(In thousands, except percentages) | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sources of Revenue | Primary Drivers | 2019 | 2018 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advisor-driven | Commission | - Transactions - Asset levels | $ | 37,160 | $ | 42,870 | (13) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Advisory | - Advisory asset levels | 39,757 | 39,301 | 1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenue | Asset-based | - Cash balances - Interest rates - Number of accounts - Client asset levels | 9,693 | 7,172 | 35 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Transaction and fee | - Account activity - Number of clients - Number of advisors - Number of accounts | 2,922 | 2,739 | 7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 89,532 | $ | 92,082 | (3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total recurring revenue | $ | 73,241 | $ | 72,962 | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Recurring revenue rate | 81.8 | % | 79.2 | % |
(In thousands, except percentages) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
Sources of Revenue | Primary Drivers | 2017 | 2016 | Percentage Change | 2017 | 2016 | Percentage Change | ||||||||||||||||
Advisor-driven | Commission | - Transactions - Asset levels | $ | 39,432 | $ | 38,962 | 1 | % | $ | 117,181 | $ | 111,070 | 6 | % | |||||||||
Advisory | - Advisory asset levels | 37,588 | 32,705 | 15 | % | 107,078 | 95,759 | 12 | % | ||||||||||||||
Other revenue | Asset-based | - Cash balances - Interest rates - Number of accounts - Client asset levels | 6,526 | 5,476 | 19 | % | 19,276 | 16,689 | 16 | % | |||||||||||||
Transaction and fee | - Account activity - Number of clients - Number of advisors - Number of accounts | 3,263 | 2,945 | 11 | % | 11,237 | 9,978 | 13 | % | ||||||||||||||
Total revenue | $ | 86,809 | $ | 80,088 | 8 | % | $ | 254,772 | $ | 233,496 | 9 | % | |||||||||||
Total recurring revenue | $ | 70,539 | $ | 62,543 | 13 | % | $ | 203,417 | $ | 183,772 | 11 | % | |||||||||||
Recurring revenue rate | 81.3 | % | 78.1 | % | 79.8 | % | 78.7 | % |
(In thousands, except percentages and as otherwise indicated) | March 31, | ||||||||||||||||||||||||||||
2019 | 2018 | Change | |||||||||||||||||||||||||||
Total Client Assets | $ | 46,164,603 | $ | 44,383,024 | 4 | % | |||||||||||||||||||||||
Brokerage Assets | $ | 32,176,414 | $ | 31,665,899 | 2 | % | |||||||||||||||||||||||
Advisory Assets | $ | 13,988,189 | $ | 12,717,125 | 10 | % | |||||||||||||||||||||||
Percentage of Total Client Assets | 30.3 | % | 28.7 | % | |||||||||||||||||||||||||
Number of advisors (in ones) | 3,553 | 3,920 | (9) | % | |||||||||||||||||||||||||
Advisor-driven revenue per advisor | $ | 21.6 | $ | 21.0 | 3 | % |
(In thousands, except percentages and as otherwise indicated) | September 30, | |||||||||
2017 | 2016 | Percentage Change | ||||||||
Total Assets Under Administration ("AUA") | $ | 42,696,862 | $ | 38,482,620 | 11 | % | ||||
Advisory Assets Under Management ("AUM") | $ | 11,984,320 | $ | 10,204,448 | 17 | % | ||||
Percentage of total AUA | 28.1 | % | 26.5 | % | ||||||
Number of advisors (in ones) | 4,392 | 4,568 | (4 | )% | ||||||
Advisor-driven revenue per advisor | $ | 17.5 | $ | 15.7 | 11 | % |
(In thousands, except percentages) | Three months ended September 30, | Nine months ended September 30, | (In thousands, except percentages) | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Percentage Change | 2017 | 2016 | Percentage Change | 2019 | 2018 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
By product category: | By product category: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mutual funds | $ | 21,128 | $ | 20,196 | 5 | % | $ | 62,371 | $ | 59,021 | 6 | % | Mutual funds | $ | 19,241 | $ | 22,964 | (16) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Variable annuities | 12,879 | 12,395 | 4 | % | 36,820 | 35,725 | 3 | % | Variable annuities | 11,358 | 13,464 | (16) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance | 3,037 | 3,689 | (18 | )% | 9,715 | 8,836 | 10 | % | Insurance | 3,730 | 3,387 | 10 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
General securities | 2,388 | 2,682 | (11 | )% | 8,275 | 7,488 | 11 | % | General securities | 2,831 | 3,055 | (7) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commission revenue | $ | 39,432 | $ | 38,962 | 1 | % | $ | 117,181 | $ | 111,070 | 6 | % | Total commission revenue | $ | 37,160 | $ | 42,870 | (13) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
By sales-based and trailing: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
By type of commission: | By type of commission: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales-based | $ | 15,590 | $ | 16,925 | (8 | )% | $ | 49,190 | $ | 47,703 | 3 | % | Sales-based | $ | 15,684 | $ | 18,345 | (15) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Trailing | 23,842 | 22,037 | 8 | % | 67,991 | 63,367 | 7 | % | Trailing | 21,476 | 24,525 | (12) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commission revenue | $ | 39,432 | $ | 38,962 | 1 | % | $ | 117,181 | $ | 111,070 | 6 | % | Total commission revenue | $ | 37,160 | $ | 42,870 | (13) | % |
(In thousands) | Three months ended September 30, | Nine months ended September 30, | (In thousands) | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||
Balance, beginning of the period | $ | 11,551,288 | $ | 9,814,232 | $ | 10,397,071 | $ | 9,692,244 | Balance, beginning of the period | $ | 12,555,405 | $ | 12,530,165 | |||||||||||||||||||||||||||||||
Net increase (decrease) in new advisory assets | 94,408 | 131,982 | 613,848 | (1,357 | ) | |||||||||||||||||||||||||||||||||||||||
Net increase in new advisory assets | Net increase in new advisory assets | 269,152 | 318,565 | |||||||||||||||||||||||||||||||||||||||||
Market impact and other | 338,624 | 258,234 | 973,401 | 513,561 | Market impact and other | 1,163,631 | (131,605) | |||||||||||||||||||||||||||||||||||||
Balance, end of the period | $ | 11,984,320 | $ | 10,204,448 | $ | 11,984,320 | $ | 10,204,448 | Balance, end of the period | $ | 13,988,188 | $ | 12,717,125 |
(In thousands, except percentages) | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Change | |||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 136,236 | $ | 113,883 | 20 | % | |||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 79,272 | $ | 58,806 | 35 | % | |||||||||||||||||||||||||||||||||||||||||
Segment margin | 58 | % | 52 | % |
(In thousands, except percentages) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
2017 | 2016 | Percentage Change | 2017 | 2016 | Percentage Change | ||||||||||||||||
Revenue | $ | 3,362 | $ | 3,149 | 7 | % | $ | 156,936 | $ | 135,614 | 16 | % | |||||||||
Operating income (loss) | $ | (6,238 | ) | $ | (4,382 | ) | 42 | % | $ | 83,410 | $ | 72,987 | 14 | % | |||||||
Segment margin | (186 | )% | (139 | )% | 53 | % | 54 | % |
(In thousands, except percentages) | Three months ended March 31, | ||||||||||||||||||||||||||||
2019 | 2018 | Change | |||||||||||||||||||||||||||
Consumer | $ | 123,942 | $ | 101,912 | 22 | % | |||||||||||||||||||||||
Professional | 12,294 | 11,971 | 3 | % | |||||||||||||||||||||||||
Total revenue | $ | 136,236 | $ | 113,883 | 20 | % |
(In thousands, except percentages) | Three months ended March 31, | Tax seasons ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | Change | 2018 | 2019 | Change | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer e-files | 2,244 | (18) | % | 2,742 | 3,115 | (17) | % | 3,772 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except percentages and as otherwise indicated) | Three months ended March 31, | Tax seasons ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | Change | 2018 | 2019 | Change | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
E-files | 1,381 | 4 | % | 1,324 | 1,833 | 4 | % | 1,763 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Units sold (ones) | 20,024 | (1) | % | 20,191 | 20,502 | — | % | 20,588 | |||||||||||||||||||||||||||||||||||||||||||||||||||
E-files per unit sold (in ones) | 69.0 | 5 | % | 65.6 | 89.4 | 4 | % | 85.6 |
(In thousands) | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Change | |||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | $ | 7,105 | $ | 5,541 | $ | 1,564 | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 2,443 | 2,955 | (512) | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related costs | 1,797 | — | 1,797 | ||||||||||||||||||||||||||||||||||||||||||||
Depreciation | 1,310 | 2,002 | (692) | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 8,044 | 8,357 | (313) | ||||||||||||||||||||||||||||||||||||||||||||
Restructuring | — | 289 | (289) | ||||||||||||||||||||||||||||||||||||||||||||
Total corporate-level activity | $ | 20,699 | $ | 19,144 | $ | 1,555 |
(In thousands) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
Operating expenses | $ | 4,587 | $ | 4,907 | $ | (320 | ) | $ | 17,823 | $ | 14,066 | $ | 3,757 | ||||||||||
Stock-based compensation | 3,132 | 3,364 | (232 | ) | 8,434 | 10,616 | (2,182 | ) | |||||||||||||||
Acquisition-related costs | — | — | — | — | 391 | (391 | ) | ||||||||||||||||
Depreciation | 1,023 | 1,137 | (114 | ) | 3,216 | 3,386 | (170 | ) | |||||||||||||||
Amortization of acquired intangible assets | 8,665 | 8,346 | 319 | 25,337 | 25,694 | (357 | ) | ||||||||||||||||
Restructuring | 106 | — | 106 | 2,726 | — | 2,726 | |||||||||||||||||
Total corporate-level activity | $ | 17,513 | $ | 17,754 | $ | (241 | ) | $ | 57,536 | $ | 54,153 | $ | 3,383 |
(In thousands, except percentages) | Three months ended September 30, | Nine months ended September 30, | (In thousands, except percentages) | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wealth management services cost of revenue | $ | 59,607 | $ | 54,921 | $ | 4,686 | $ | 172,444 | $ | 158,213 | $ | 14,231 | Wealth management services cost of revenue | $ | 61,374 | $ | 63,064 | $ | (1,690) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tax preparation services cost of revenue | 1,314 | 1,319 | (5 | ) | 7,543 | 6,549 | 994 | Tax preparation services cost of revenue | 4,201 | 4,353 | (152) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired technology | 50 | 49 | 1 | 145 | 765 | (620 | ) | Amortization of acquired technology | — | 50 | (50) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenue | $ | 60,971 | $ | 56,289 | $ | 4,682 | $ | 180,132 | $ | 165,527 | $ | 14,605 | Total cost of revenue | $ | 65,575 | $ | 67,467 | $ | (1,892) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of revenue | 68 | % | 68 | % | 44 | % | 45 | % | Percentage of revenue | 29 | % | 33 | % |
(In thousands, except percentages) | Three months ended September 30, | Nine months ended September 30, | (In thousands, except percentages) | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Engineering and technology | $ | 5,051 | $ | 4,588 | $ | 463 | $ | 14,041 | $ | 12,842 | $ | 1,199 | Engineering and technology | $ | 6,529 | $ | 5,131 | $ | 1,398 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of revenue | 6 | % | 6 | % | 3 | % | 3 | % | Percentage of revenue | 3 | % | 2 | % |
(In thousands, except percentages) | Three months ended September 30, | Nine months ended September 30, | (In thousands, except percentages) | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | $ | 13,680 | $ | 11,965 | $ | 1,715 | $ | 84,974 | $ | 75,715 | $ | 9,259 | Sales and marketing | $ | 55,572 | $ | 55,253 | $ | 319 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of revenue | 15 | % | 14 | % | 21 | % | 21 | % | Percentage of revenue | 25 | % | 27 | % |
(In thousands, except percentages) | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Change | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative | $ | 18,874 | $ | 14,866 | $ | 4,008 | |||||||||||||||||||||||||||||||||||||||||
Percentage of revenue | 8 | % | 7 | % |
(In thousands, except percentages) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
General and administrative | $ | 12,207 | $ | 11,638 | $ | 569 | $ | 39,405 | $ | 35,899 | $ | 3,506 | |||||||||||
Percentage of revenue | 14 | % | 14 | % | 10 | % | 10 | % |
(In thousands, except percentages) | Three months ended September 30, | Nine months ended September 30, | (In thousands, except percentages) | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | $ | 867 | $ | 968 | $ | (101 | ) | $ | 2,680 | $ | 2,906 | $ | (226 | ) | Depreciation | $ | 1,061 | $ | 1,915 | $ | (854) | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 8,615 | 8,297 | 318 | 25,192 | 24,929 | 263 | Amortization of acquired intangible assets | 8,044 | 8,307 | (263) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 9,482 | $ | 9,265 | $ | 217 | $ | 27,872 | $ | 27,835 | $ | 37 | Total | $ | 9,105 | $ | 10,222 | $ | (1,117) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of revenue | 11 | % | 11 | % | 7 | % | 8 | % | Percentage of revenue | 4 | % | 5 | % |
(In thousands, except percentages) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
Restructuring | $ | 106 | $ | — | $ | 106 | $ | 2,726 | $ | — | $ | 2,726 | |||||||||||
Percentage of revenue | — | % | — | % | 1 | % | — | % |
(In thousands) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
Interest income | $ | (31 | ) | $ | (18 | ) | $ | (13 | ) | $ | (76 | ) | $ | (54 | ) | $ | (22 | ) | |||||
Interest expense | 4,781 | 7,824 | (3,043 | ) | 16,746 | 25,396 | (8,650 | ) | |||||||||||||||
Amortization of debt issuance costs | 177 | 413 | (236 | ) | 891 | 1,440 | (549 | ) | |||||||||||||||
Accretion of debt discounts | 53 | 1,099 | (1,046 | ) | 1,893 | 3,599 | (1,706 | ) | |||||||||||||||
(Gain) loss on debt extinguishment | 183 | 2,205 | (2,022 | ) | 19,764 | (641 | ) | 20,405 | |||||||||||||||
Other | 78 | (70 | ) | 148 | (69 | ) | 143 | (212 | ) | ||||||||||||||
Other loss, net | $ | 5,241 | $ | 11,453 | $ | (6,212 | ) | $ | 39,149 | $ | 29,883 | $ | 9,332 |
(In thousands) | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Change | |||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | (140) | $ | (40) | $ | (100) | |||||||||||||||||||||||||||||||||||||||||
Interest expense | 3,776 | 4,181 | (405) | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of debt issuance costs | 172 | 203 | (31) | ||||||||||||||||||||||||||||||||||||||||||||
Accretion of debt discounts | 38 | 47 | (9) | ||||||||||||||||||||||||||||||||||||||||||||
Loss on debt extinguishment | — | 776 | (776) | ||||||||||||||||||||||||||||||||||||||||||||
Other | 112 | 61 | 51 | ||||||||||||||||||||||||||||||||||||||||||||
Other loss, net | $ | 3,958 | $ | 5,228 | $ | (1,270) |
(In thousands) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
Write-off of debt discount and debt issuance costs on TaxAct - HD Vest 2015 credit facility (related to closure) | $ | — | $ | — | $ | — | $ | 9,593 | $ | — | $ | 9,593 | |||||||||||
Write-off of debt discount and debt issuance costs on the Notes (related to termination) | — | — | — | 6,715 | — | 6,715 | |||||||||||||||||
Accelerated accretion of debt discount and amortization of debt issuance costs on credit facilities (related to prepayments) | 183 | 2,205 | (2,022 | ) | 3,456 | 5,039 | (1,583 | ) | |||||||||||||||
Gain on the Notes repurchased | — | — | — | — | (7,724 | ) | 7,724 | ||||||||||||||||
Accelerated accretion of debt discount on the Notes (related to repurchase) | — | — | — | — | 1,628 | (1,628 | ) | ||||||||||||||||
Accelerated amortization of debt issuance costs on the Notes (related to repurchase) | — | — | — | — | 416 | (416 | ) | ||||||||||||||||
Total (gain) loss on debt extinguishment | $ | 183 | $ | 2,205 | $ | (2,022 | ) | $ | 19,764 | $ | (641 | ) | $ | 20,405 |
(In thousands) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
Discontinued operations, net of income taxes | $ | — | $ | (40,528 | ) | $ | 40,528 | $ | — | $ | (57,981 | ) | $ | 57,981 |
(In thousands) | Three months ended March 31, | ||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||
Net income attributable to Blucora, Inc. | $ | 62,170 | $ | 45,341 | |||||||||||||||||||||||||
Stock-based compensation | 2,443 | 2,955 | |||||||||||||||||||||||||||
Depreciation and amortization of acquired intangible assets | 9,354 | 10,359 | |||||||||||||||||||||||||||
Restructuring | — | 289 | |||||||||||||||||||||||||||
Other loss, net | 3,958 | 5,228 | |||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | 205 | |||||||||||||||||||||||||||
Acquisition and integration costs | 1,797 | — | |||||||||||||||||||||||||||
Income tax expense | 3,985 | 1,963 | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 83,707 | $ | 66,340 |
(In thousands) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) attributable to Blucora, Inc. | $ | (16,897 | ) | $ | (54,119 | ) | $ | 16,991 | $ | (45,897 | ) | ||||
Stock-based compensation | 3,132 | 3,364 | 8,434 | 10,616 | |||||||||||
Depreciation and amortization of acquired intangible assets | 9,688 | 9,483 | 28,553 | 29,080 | |||||||||||
Restructuring | 106 | — | 2,726 | — | |||||||||||
Other loss, net | 5,241 | 11,453 | 39,149 | 29,883 | |||||||||||
Net income attributable to noncontrolling interests | 164 | 167 | 466 | 426 | |||||||||||
Income tax expense (benefit) | 166 | (8,537 | ) | 5,952 | 8,899 | ||||||||||
Discontinued operations, net of income taxes | — | 40,528 | — | 57,981 | |||||||||||
Acquisition-related costs | — | — | — | 391 | |||||||||||
Adjusted EBITDA | $ | 1,600 | $ | 2,339 | $ | 102,271 | $ | 91,379 |
(In thousands, except per share amounts) | Three months ended March 31, | ||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||
Net income attributable to Blucora, Inc. | $ | 62,170 | $ | 45,341 | |||||||||||||||||||||||||
Stock-based compensation | 2,443 | 2,955 | |||||||||||||||||||||||||||
Amortization of acquired intangible assets | 8,044 | 8,357 | |||||||||||||||||||||||||||
Restructuring | — | 289 | |||||||||||||||||||||||||||
Impact of noncontrolling interests | — | 205 | |||||||||||||||||||||||||||
Acquisition and integration costs | 1,797 | — | |||||||||||||||||||||||||||
Cash tax impact of adjustments to GAAP net income | (411) | (313) | |||||||||||||||||||||||||||
Non-cash income tax expense | 3,151 | 1398 | |||||||||||||||||||||||||||
Non-GAAP net income | $ | 77,194 | $ | 58,232 | |||||||||||||||||||||||||
Per diluted share: | |||||||||||||||||||||||||||||
Net income attributable to Blucora, Inc. | $ | 1.25 | $ | 0.93 | |||||||||||||||||||||||||
Stock-based compensation | 0.05 | 0.06 | |||||||||||||||||||||||||||
Amortization of acquired intangible assets | 0.17 | 0.18 | |||||||||||||||||||||||||||
Restructuring | — | 0.01 | |||||||||||||||||||||||||||
Impact of noncontrolling interests | — | 0.00 | |||||||||||||||||||||||||||
Acquisition and integration costs | 0.04 | — | |||||||||||||||||||||||||||
Cash tax impact of adjustments to GAAP net income | (0.01) | (0.01) | |||||||||||||||||||||||||||
Non-cash income tax expense | 0.06 | 0.03 | |||||||||||||||||||||||||||
Non-GAAP net income per share | $ | 1.56 | $ | 1.20 | |||||||||||||||||||||||||
Weighted average shares outstanding used in computing per diluted share amounts | 49,542 | 48,665 |
(In thousands, except per share amounts) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) attributable to Blucora, Inc. | $ | (16,897 | ) | $ | (54,119 | ) | $ | 16,991 | $ | (45,897 | ) | ||||
Discontinued operations, net of income taxes | — | 40,528 | — | 57,981 | |||||||||||
Stock-based compensation | 3,132 | 3,364 | 8,434 | 10,616 | |||||||||||
Amortization of acquired intangible assets | 8,665 | 8,346 | 25,337 | 25,694 | |||||||||||
Impairment of goodwill and intangible assets | — | — | — | — | |||||||||||
Accretion of debt discount on the Notes | — | 901 | 1,567 | 2,749 | |||||||||||
Accelerated accretion of debt discount on the Notes repurchased | — | — | — | 1,628 | |||||||||||
Gain on the Notes repurchased | — | — | — | (7,724 | ) | ||||||||||
Write-off of debt discount and debt issuance costs on terminated Notes | — | — | 6,715 | — | |||||||||||
Write-off of debt discount and debt issuance costs on terminated TaxAct - HD Vest 2015 credit facility | — | — | 9,593 | — | |||||||||||
Acquisition-related costs | — | — | — | 391 | |||||||||||
Restructuring | 106 | — | 2,726 | — | |||||||||||
Impact of noncontrolling interests | 164 | 167 | 466 | 426 | |||||||||||
Cash tax impact of adjustments to GAAP net income | (928 | ) | (17 | ) | (3,334 | ) | 244 | ||||||||
Non-cash income tax (benefit) expense | 224 | (9,312 | ) | 6,325 | 6,460 | ||||||||||
Non-GAAP net income (loss) | $ | (5,534 | ) | $ | (10,142 | ) | $ | 74,820 | $ | 52,568 | |||||
Per diluted share: | |||||||||||||||
Net income (loss) attributable to Blucora, Inc. | $ | (0.37 | ) | $ | (1.30 | ) | $ | 0.36 | $ | (1.08 | ) | ||||
Discontinued operations, net of income taxes | — | 0.97 | — | 1.37 | |||||||||||
Stock-based compensation | 0.07 | 0.08 | 0.18 | 0.25 | |||||||||||
Amortization of acquired intangible assets | 0.20 | 0.21 | 0.55 | 0.60 | |||||||||||
Accretion of debt discount on the Notes | — | 0.02 | 0.03 | 0.06 | |||||||||||
Accelerated accretion of debt discount on the Notes repurchased | — | — | — | 0.04 | |||||||||||
Gain on the Notes repurchased | — | — | — | (0.18 | ) | ||||||||||
Write-off of debt discount and debt issuance costs on terminated Notes | — | — | 0.14 | — | |||||||||||
Write-off of debt discount and debt issuance costs on closed TaxAct - HD Vest 2015 credit facility | — | — | 0.20 | — | |||||||||||
Acquisition-related costs | — | — | — | 0.01 | |||||||||||
Restructuring | — | — | 0.06 | — | |||||||||||
Impact of noncontrolling interests | 0.00 | 0.00 | 0.01 | 0.01 | |||||||||||
Cash tax impact of adjustments to GAAP net income | (0.02 | ) | (0.00 | ) | (0.07 | ) | 0.01 | ||||||||
Non-cash income tax (benefit) expense | 0.00 | (0.22 | ) | 0.14 | 0.15 | ||||||||||
Non-GAAP net income (loss) | $ | (0.12 | ) | $ | (0.24 | ) | $ | 1.60 | $ | 1.24 | |||||
Weighted average shares outstanding used in computing per diluted share amounts | 45,459 | 41,635 | 46,813 | 42,329 |
(In thousands) | Three months ended March 31, | ||||||||||||||||
2019 | 2018 | ||||||||||||||||
Net cash provided by operating activities | $ | 70,236 | $ | 57,450 | |||||||||||||
Net cash used by investing activities | (1,243) | (940) | |||||||||||||||
Net cash used by financing activities | (3,085) | (39,569) | |||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 15 | (6) | |||||||||||||||
Net increase in cash, cash equivalents, and restricted cash | $ | 65,923 | $ | 16,935 |
(In thousands) | Nine months ended September 30, | ||||||
2017 | 2016 | ||||||
Net cash provided by operating activities from continuing operations | $ | 79,230 | $ | 88,537 | |||
Net cash provided by investing activities from continuing operations | 3,283 | 2,225 | |||||
Net cash used by financing activities from continuing operations | (58,649 | ) | (124,571 | ) | |||
Net cash provided (used) by continuing operations | 23,864 | (33,809 | ) | ||||
Net cash provided by discontinued operations | 1,028 | 46,589 | |||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 86 | (15 | ) | ||||
Net increase in cash, cash equivalents, and restricted cash | $ | 24,978 | $ | 12,765 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) (1) | |||||||||||||||||||
January 1, 2019 - January 31, 2019 | — | $ | — | — | $ | 100.0 | |||||||||||||||||
February 1, 2019 - February 28, 2019 | — | — | — | $ | 100.0 | ||||||||||||||||||
March 1, 2019 - March 31, 2019 | — | — | — | $ | 100.0 | ||||||||||||||||||
Total | — | $ | — | — |
Exhibit Number | Exhibit Description | Form | Date of First Filing | Exhibit Number | Filed Herewith | |||||||||||||||||||||||||||
2.1# | 8-K | March 19, 2019 | 2.1 | |||||||||||||||||||||||||||||
10.1 | 8-K | May 6, 2019 | 10.1 | |||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||
32.1* | X | |||||||||||||||||||||||||||||||
32.2* | X | |||||||||||||||||||||||||||||||
101 | The following financial statements from the Company's 10-Q for the fiscal quarter ended March 31, 2019, formatted in XBRL: (i) Unaudited Condensed Consolidated Balance Sheets, (ii) Unaudited Condensed Consolidated Statements of Operations, (iii) Unaudited Condensed Consolidated Statements of Cash Flows, and (iv) Notes to Unaudited Condensed Consolidated Financial Statements | X | ||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | Date of First Filing | Exhibit Number | Filed Herewith | |||||
10.1 | 8-K | September 5, 2017 | 10.1 | |||||||
10.2 | X | |||||||||
31.1 | X | |||||||||
31.2 | X | |||||||||
32.1 | X | |||||||||
32.2 | X | |||||||||
101 | The following financial statements from the Company's 10-Q for the fiscal quarter ended September 30, 2017, formatted in XBRL: (i) Unaudited Condensed Consolidated Balance Sheets, (ii) Unaudited Condensed Consolidated Statements of Operations, (iii) Unaudited Condensed Consolidated Statements of Cash Flows, and (iv) Notes to Unaudited Condensed Consolidated Financial Statements | X |
BLUCORA, INC. | |||||||||||
/s/ Davinder Athwal | |||||||||||
Davinder Athwal Chief Financial Officer (On behalf of the Registrant and as Principal Financial Officer) | |||||||||||
Date: |