Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Cash flows from operating activities    
Net income $ 15,638 $ 18,011
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation and amortization expense 1,832 1,375
Recovery for bad debt expense (104) (106)
Stock-based compensation 2,341 2,613
Deferred taxes, net 2,243 1,750
Net realized losses on marketable securities, available-for-sale 12 0
Other non-cash items (48) 55
Changes in operating assets and liabilities:    
Commissions receivable (1,171) 6,735
Prepaid expenses (929) 2,229
Prepaid rent 0 199
Other assets, net (8,812) (2,109)
Accounts payable and other liabilities 2,067 (2,682)
Income tax payable 3,117 4,439
Accrued bonuses and other employee related expenses (20,060) (12,970)
Deferred compensation and commissions (35,838) (32,659)
Operating lease liabilities and right-of-use assets 1,047 0
Deferred rent and other liabilities 67 131
Net cash used in operating activities (38,598) (12,989)
Cash flows from investing activities    
Purchases of marketable securities, available-for-sale (30,117) (35,360)
Proceeds from sales and maturities of marketable securities, available-for-sale 55,833 30,067
Issuances of employee notes receivable 0 (125)
Payments received on employee notes receivable 1 3
Purchase of property and equipment (1,644) (1,362)
Net cash provided by (used in) investing activities 24,073 (6,777)
Cash flows from financing activities    
Taxes paid related to net share settlement of stock-based awards (2,212) (1,650)
Principal payments on stock appreciation rights 186 0
Net cash used in financing activities (2,026) (1,650)
Net decrease in cash and cash equivalents (16,551) (21,416)
Cash and cash equivalents at beginning of period 214,683 220,786
Cash and cash equivalents at end of period 198,132 199,370
Supplemental disclosures of cash flow information    
Interest paid during the period 1,751 1,553
Income taxes paid, net $ 296 $ 113