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 |
(I.R.S. Employer | |
Incorporation or Organization) |
Identification No.) | |
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(Address of Principal Executive Offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
per share |
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
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29 | ||||
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46 | ||||
46 | ||||
June 30, 2020 (Unaudited) |
December 31, 2019 |
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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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Income tax receivable |
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Marketable debt securities, available-for-sale at June 30, 2020 and December 31, 2019, respectively, and $ |
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Advances and loans, net |
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Other assets |
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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 at June 30, 2020 and December 31, 2019, respectively, and $ |
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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 |
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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 other liabilities |
$ | $ | ||||||
Notes payable to former stockholders |
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Deferred compensation and commissions |
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Operating lease liabilities |
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Accrued bonuses and other employee related expenses |
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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 |
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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 – and December 31, 2019, respectively |
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Common stock, $ |
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Authorized shares – |
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Additional paid-in capital |
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Stock notes receivable from employees |
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Retained earnings |
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Accumulated other comprehensive income |
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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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2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues: |
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Real estate brokerage commissions |
$ |
$ |
$ |
$ |
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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 (loss) income |
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Other income (expense), net |
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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 income (loss): |
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Marketable debt securities, available-for-sale: |
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Change in unrealized gains |
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Less: reclassification adjustment for net losses (gains) included in other income (expense), net |
( |
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Net change, net of tax of $ |
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Foreign currency translation (loss) gain, net of tax of $ |
( |
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) | ( |
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Total other comprehensive income |
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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, 2020 | ||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital |
Stock Notes Receivable From Employees |
Retained Earnings |
Accumulated Other Comprehensive Income |
Total | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at March 31, 2020 |
$ | $ | $ | $ | ( |
) | $ |
$ | $ |
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Net and comprehensive income |
— | — | ||||||||||||||||||||||||||||||||||
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 vesting of restricted stock units |
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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 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Reduction of stock notes receivable from employees |
— | — | ||||||||||||||||||||||||||||||||||
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Balance as of June 30, 2020 |
$ | $ | $ |
$ | $ | $ | $ | |||||||||||||||||||||||||||||
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Three Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital |
Stock Notes Receivable From Employees |
Retained Earnings |
Accumulated Other Comprehensive Income |
Total | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at March 31, 2019 |
$ | $ | $ | $ | ( |
) | $ |
$ | $ |
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Net and comprehensive income |
— | — | ||||||||||||||||||||||||||||||||||
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 vesting of restricted stock units |
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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 |
( |
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Balance as of June 30, 2019 |
$ | $ | $ |
$ | ( |
) | $ | $ | $ | |||||||||||||||||||||||||||
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Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital |
Stock Notes Receivable From Employees |
Retained Earnings |
Accumulated Other Comprehensive Income |
Total | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at December 31, 2019 |
$ | $ | $ | $ | ( |
) | $ |
$ | $ |
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Cumulative effect of a change in accounting principle, net of tax |
( |
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Balance at January 1, 2020, as adjusted |
( |
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Net and comprehensive income |
— | — | ||||||||||||||||||||||||||||||||||
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 vesting of restricted stock units |
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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 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Reduction of stock notes receivable from employees |
— | — | ||||||||||||||||||||||||||||||||||
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Balance as of June 30, 2020 |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
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Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital |
Stock Notes Receivable From Employees |
Retained Earnings |
Accumulated Other Comprehensive Income |
Total | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at December 31, 2018 |
$ | $ | $ | $ | ( |
) |
$ |
$ | $ |
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Net and comprehensive income |
— | — | ||||||||||||||||||||||||||||||||||
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 vesting of restricted stock units |
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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 |
( |
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Balance as of June 30, 2019 |
$ | $ | $ | $ | ( |
) |
$ | $ | $ | |||||||||||||||||||||||||||
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Six Months Ended June 30, |
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2020 | 2019 | |||||||
Cash flows from operating activities |
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Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash used in operating activities: |
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Depreciation and amortization |
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Amortization of right-of-use |
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Credit loss recovery |
( |
) | ( |
) | ||||
Stock-based compensation |
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Deferred taxes, net |
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Unrealized foreign exchange loss |
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Net realized (gains) losses on marketable debt securities, available-for-sale |
( |
) | ( |
) | ||||
Other non-cash items |
( |
) | ||||||
Changes in operating assets and liabilities: |
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Commissions receivable |
( |
) | ( |
) | ||||
Prepaid expenses |
( |
) | ||||||
Advances and loans |
( |
) | ( |
) | ||||
Other assets |
( |
) | ( |
) | ||||
Accounts payable and other liabilities |
( |
) | ||||||
Income tax receivable/payable |
( |
) | ||||||
Accrued bonuses and other employee related expenses |
( |
) | ( |
) | ||||
Deferred compensation and commissions |
( |
) | ( |
) | ||||
Operating lease liabilities |
( |
) | ( |
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Other liabilities |
( |
) | ||||||
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Net cash used in operating activities |
( |
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Cash flows from investing activities |
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Acquisition of businesses, net of cash received |
( |
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Purchases of marketable debt securities, available-for-sale |
( |
) | ( |
) | ||||
Proceeds from sales and maturities of marketable debt securities, available-for-sale |
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Issuances of employee notes receivable |
( |
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Payments received on employee notes receivable |
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Purchase of property and equipment |
( |
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Net cash (used in) provided by investing activities |
( |
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Cash flows from financing activities |
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Taxes paid related to net share settlement of stock-based awards |
( |
) | ( |
) | ||||
Proceeds from issuance of shares pursuant to employee stock purchase plan |
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Principal payments on notes payable to former stockholders |
( |
) | ( |
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Principal payments on stock appreciation rights liability |
( |
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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 |
( |
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Cash and cash equivalents at beginning of period |
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Cash and cash equivalents at end of period |
$ |
$ |
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Supplemental disclosures of cash flow information |
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Interest paid during the period |
$ | $ | ||||||
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Income taxes paid, net |
$ | $ | ||||||
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1. |
Description of Business and Basis of Presentation |
2. |
Accounting Policies and Recent Accounting Pronouncements |
3. |
Property and Equipment, Net |
June 30, 2020 |
December 31, 2019 |
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Computer software and hardware equipment |
$ | $ | ||||||
Furniture, fixtures, and equipment |