QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) | |
(Address of Principal Executive Offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ | Accelerated filer |
☐ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
Page |
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3 |
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3 |
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4 |
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5 |
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7 |
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8 |
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25 |
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37 |
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38 |
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39 |
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39 |
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39 |
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39 |
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39 |
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39 |
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40 |
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June 30, 2022 (Unaudited) |
December 31, 2021 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ | $ | ||||||
Commissions receivable, net |
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Prepaid expenses |
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Marketable debt securities, available-for-sale |
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Advances and loans, net |
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Other assets, current |
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Total current assets |
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Property and equipment, net |
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Operating lease right-of-use |
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Marketable debt securities, available-for-sale |
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Assets held in rabbi trust |
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Deferred tax assets, net |
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Goodwill and other intangible assets, net |
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Advances and loans, net |
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Other assets, non-current |
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Total assets |
$ | $ | ||||||
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Accounts payable and accrued expenses |
$ | $ | ||||||
Deferred compensation and commissions |
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Income tax payable |
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Operating lease liabilities |
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Accrued bonuses and other employee related expenses |
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Other liabilities, current |
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Total current liabilities |
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Deferred compensation and commissions |
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Operating lease liabilities |
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Other liabilities, non-current |
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Total liabilities |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, $ |
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Authorized shares – |
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Common stock, $ |
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Authorized shares – |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive income (loss) |
( |
) | ||||||
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ | $ | ||||||
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2022 |
2021 |
2022 |
2021 |
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Revenues: |
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Real estate brokerage commissions |
$ | $ | $ | $ | ||||||||||||
Financing fees |
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Other revenues |
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Total revenues |
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Operating expenses: |
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Cost of services |
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Selling, general and administrative |
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Depreciation and amortization |
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Total operating expenses |
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Operating income |
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Other (expense) income, net |
( |
) | ( |
) | ||||||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
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Income before provision for income taxes |
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Provision for income taxes |
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Net income |
$ | $ | $ | $ |
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Other comprehensive loss: |
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Marketable debt securities, available-for-sale: |
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Change in net unrealized gains/losses |
( |
) | ( |
) | ( |
) | ||||||||||
Less: reclassification adjustment for net gains included in other income (expense), net |
( |
) | ||||||||||||||
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Net change, net of tax of $ ) and $ |
( |
) | ( |
) | ( |
) | ||||||||||
Foreign currency translation gain (loss), net of tax of $ |
( |
) | ( |
) | ||||||||||||
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Total other comprehensive loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
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Comprehensive income |
$ | $ | $ | $ | ||||||||||||
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Earnings per share: |
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Basic |
$ | $ | $ | $ | ||||||||||||
Diluted |
$ | $ | $ | $ | ||||||||||||
Weighted average common shares outstanding: |
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Basic |
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Diluted |
Three Months Ended June 30, 2022 |
||||||||||||||||||||||||||||||||
Preferred Stock |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
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Shares |
Amount |
Shares |
Amount |
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Balance at March 31, 2022 |
$ | |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||||||||
Net and comprehensive income (loss) |
— | — | ( |
) | ||||||||||||||||||||||||||||
Stock-based award activity |
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Stock-based compensation |
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Shares issued pursuant to employee stock purchase plan |
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Issuance of common stock for settlement of deferred stock units |
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Issuance of common stock for vesting of restricted stock units |
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Issuance of common stock for stock settled deferred consideration |
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Issuance of common stock for unvested restricted stock awards |
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Shares withheld related to net share settlement of stock-based awards |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Balance as of June 30, 2022 |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||||||||||
Three Months Ended June 30, 2021 |
||||||||||||||||||||||||||||||||
Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
|||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||
Balance at Mach 31, 2021 |
$ | |
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
Net and comprehensive income (loss) |
— | — | ( |
) | ||||||||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Shares issued pursuant to employee stock purchase plan |
||||||||||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
||||||||||||||||||||||||||||||||
Issuance of common stock for unvested restricted stock awards |
||||||||||||||||||||||||||||||||
Issuance of common stock for stock settled deferred consideration |
||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Balance as of June 30, 2021 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Six Months Ended June 30, 2022 |
||||||||||||||||||||||||||||||||
Preferred Stock |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
|||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||
Balance at December 31, 2021 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Net and comprehensive income (loss) |
— | — | ( |
) | ||||||||||||||||||||||||||||
Dividends |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Shares issued pursuant to employee stock purchase plan |
||||||||||||||||||||||||||||||||
Issuance of common stock for settlement of deferred stock units |
||||||||||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
||||||||||||||||||||||||||||||||
Issuance of common stock for stock settled deferred consideration |
||||||||||||||||||||||||||||||||
Issuance of common stock for unvested restricted stock awards |
||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Balance as of June 30, 2022 |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||||||||||
Six Months Ended June 30, 2021 |
||||||||||||||||||||||||||||||||
Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
|||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||
Balance at December 31, 2020 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Net and comprehensive income (loss) |
— | — | ( |
) | ||||||||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Shares issued pursuant to employee stock purchase plan |
||||||||||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
||||||||||||||||||||||||||||||||
Issuance of common stock for unvested restricted stock awards |
||||||||||||||||||||||||||||||||
Issuance of common stock for stock settled deferred consideration |
||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Balance as of June 30, 2021 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Six Months E nded June 30, |
||||||||
2022 |
2021 |
|||||||
Cash flows from operating activities |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
||||||||
Depreciation and amortization |
||||||||
Noncash lease expense |
||||||||
Credit loss recovery |
( |
) | ( |
) | ||||
Stock-based compensation |
||||||||
Deferred taxes, net |
( |
) | ||||||
Unrealized foreign exchange losses (gains) |
( |
) | ||||||
Net realized gains on marketable debt securities, available-for-sale |
( |
) | ( |
) | ||||
Other non-cash items |
( |
) | ||||||
Changes in operating assets and liabilities: |
||||||||
Commissions receivable |
( |
) | ||||||
Prepaid expenses |
( |
) | ||||||
Advances and loans |
( |
) | ( |
) | ||||
Other assets |
( |
) | ( |
) | ||||
Accounts payable and accrued expenses |
( |
) | ||||||
Income tax receivable/payable |
( |
) | ( |
) | ||||
Accrued bonuses and other employee related expenses |
( |
) | ||||||
Deferred compensation and commissions |
( |
) | ( |
) | ||||
Operating lease liabilities |
( |
) | ( |
) | ||||
Other liabilities |
( |
) | ( |
) | ||||
|
|
|
|
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Net cash (used in) provided by operating activities |
( |
) | ||||||
Cash flows from investing activities |
||||||||
Acquisition of businesses, net of cash received |
( |
) | ||||||
Purchases of marketable debt securities, available-for-sale |
( |
) | ( |
) | ||||
Proceeds from sales and maturities of marketable debt securities, available-for-sale |
||||||||
Issuances of employee notes receivable |
( |
) | ( |
) | ||||
Payments received on employee notes receivable |
||||||||
Purchase of property and equipment |
( |
) | ( |
) | ||||
|
|
|
|
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Net cash used in investing activities |
( |
) | ( |
) | ||||
Cash flows from financing activities |
||||||||
Taxes paid related to net share settlement of stock-based awards |
( |
) | ( |
) | ||||
Proceeds from issuance of shares pursuant to employee stock purchase plan |
||||||||
Dividends paid |
( |
) | ||||||
Principal payments on stock appreciation rights liability |
( |
) | ( |
) | ||||
Principal payments on deferred and contingent consideration |
( |
) | ( |
) | ||||
|
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|
|||||
Net cash used in financing activities |
( |
) | ( |
) | ||||
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|
|||||
Effect of currency exchange rate changes on cash and cash equivalents |
( |
) | ||||||
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Net decrease in cash and cash equivalents |
( |
) | ( |
) | ||||
Cash and cash equivalents at beginning of period |
||||||||
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Cash and cash equivalents at end of period |
$ | $ | ||||||
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|
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Supplemental cash flow disclosures: |
||||||||
Interest paid during the period |
$ | $ | ||||||
Income taxes paid, net |
$ | $ | ||||||
Supplemental disclosures of noncash investing and financing activities: |
||||||||
Unpaid purchases of property and equipment |
$ | $ | ||||||
Right-of-use |
$ | $ | ||||||
Issuance of stock for the settlement of deferred consideration |
$ | $ | ||||||
Measurement period adjustment of acquisition related contingent consideration |
$ | $ | ( |
) |
1. |
Description of Business, Basis of Presentation and Recent Accounting Pronouncements |
2. |
Property and Equipment, Net |
June 30, 2022 |
December 31, 2021 |
|||||||
Computer software and hardware equipment |
$ | $ | ||||||
Furniture, fixtures and equipment |
||||||||
Less: accumulated depreciation and amortization |
( |
) | ( |
) | ||||
|
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|
|
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$ | $ | |||||||
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|
|
3. |
Investments in Marketable Debt Securities, Available for Sale |
June 30, 2022 |
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Amortized Cost |
Allowance for Credit Losses |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
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Short-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||
Corporate debt |
( |
) | ||||||||||||||||||
Asset-backed securities (“ABS”) and other |
( |
) | ||||||||||||||||||
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|
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$ | $ | $ | $ | ( |
) | $ | ||||||||||||||
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Long-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||
U.S. government sponsored entities |
( |
) | ||||||||||||||||||
Corporate debt |
( |
) | ||||||||||||||||||
ABS and other |
( |
) | ||||||||||||||||||
|
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|
|
|
|
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|
|
|
|||||||||||
$ | $ | $ | $ | ( |
) | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
||||||||||||||||||||
Amortized Cost |
Allowance for Credit Losses |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
||||||||||||||||
Short-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||
Corporate debt |
( |
) | ||||||||||||||||||
|
|
|
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|
|
|
|
|
|||||||||||
$ | $ | $ | $ | ( |
) | $ | ||||||||||||||
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Long-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||
U.S. government sponsored entities |
( |
) | ||||||||||||||||||
Corporate debt |
( |
) | ||||||||||||||||||
ABS and other |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | $ | $ | $ | ( |
) | $ | ||||||||||||||
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|
|
June 30, 2022 |
||||||||||||||||||||||||
Less than 12 months |
12 months or greater |
Total |
||||||||||||||||||||||
Fair Value |
Gross Unrealized Losses |
Fair Value |
Gross Unrealized Losses |
Fair Value |
Gross Unrealized Losses |
|||||||||||||||||||
U.S. treasuries |
$ | $ | ( |
) | $ |