Interim Consolidated Financial Statements (Tables)

9 Months Ended

Sep. 30, 2013

The effects of these prior period errors on the consolidated financial statements are as follows (in thousands, except per share amounts):

Revised Consolidated Statements of Income


	Three Months Ended March 31, 2013									Three Months Ended June 30, 2013								Six Months Ended June 30, 2013
	As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Revised		As Previously Reported			Adjustments			As Revised
Revenues:
Research services	$	50,378		$	(100	)	$	50,278		$	50,512		$	800		$	51,312	$	100,890		$	700		$	101,590
Advisory services and other		21,121			(38	)		21,083			27,652			(11	)		27,641		48,773			(49	)		48,724

Total revenues		71,499			(138	)		71,361			78,164			789			78,953		149,663			651			150,314
Income from operations		3,418			(138	)		3,280			8,999			789			9,788		12,417			651			13,068
Gains (losses) on investments, net		(51	)		(149	)		(200	)		(51	)		149			98		(102	)		—			(102	)
Income before income taxes		3,743			(287	)		3,456			9,203			938			10,141		12,946			651			13,597
Income tax provision		1,402			(115	)		1,287			3,581			375			3,956		4,983			260			5,243
Net income	$	2,341		$	(172	)	$	2,169		$	5,622		$	563		$	6,185	$	7,963		$	391		$	8,354

Basic income per common share	$	0.10		$	—		$	0.10		$	0.26		$	0.03		$	0.29	$	0.37		$	0.01		$	0.38

Diluted income per common share	$	0.10		$	—		$	0.10		$	0.26		$	0.02		$	0.28	$	0.36		$	0.02		$	0.38


	Nine Months Ended September 30, 2012							Three Months Ended December 31, 2012									Full Year Ended December 31, 2012
	As Previously Reported		Adjustments			As Revised		As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments		As Revised
Revenues:
Research services	$	151,132	$	13		$	151,145	$	51,866		$	80		$	51,946		$	202,998		$	93	$	203,091
Advisory services and other		66,732		(7	)		66,725		23,200			15			23,215			89,932			8		89,940

Total revenues		217,864		6			217,870		75,066			95			75,161			292,930			101		293,031
Operating expenses:
General and administrative		26,667		457			27,124		10,199			(457	)		9,742			36,866			—		36,866
Total operating expenses		194,598		457			195,055		67,673			(457	)		67,216			262,271			—		262,271
Income from operations		23,266		(451	)		22,815		7,393			552			7,945			30,659			101		30,760
Gains (losses) on investments, net		290		608			898		(739	)		(65	)		(804	)		(449	)		543		94
Income before income taxes		24,452		157			24,609		7,058			487			7,545			31,510			644		32,154
Income tax provision		3,129		62			3,191		2,807			195			3,002			5,936			257		6,193
Net income	$	21,323	$	95		$	21,418	$	4,251		$	292		$	4,543		$	25,574		$	387	$	25,961

Basic income per common share	$	0.94	$	0.01		$	0.95	$	0.19		$	0.01		$	0.20		$	1.14		$	0.01	$	1.15

Diluted income per common share	$	0.93	$	—		$	0.93	$	0.19		$	0.01		$	0.20		$	1.12		$	0.01	$	1.13


	Three Months Ended June 30, 2012							Six Months Ended June 30, 2012							Three Months Ended September 30, 2012
	As Previously Reported		Adjustments			As Revised		As Previously Reported		Adjustments			As Revised		As Previously Reported			Adjustments			As Revised
Revenues:
Research services	$	51,072	$	(100	)	$	50,972	$	100,832	$	(196	)	$	100,636	$	50,300		$	209		$	50,509
Advisory services and other		28,021		(61	)		27,960		48,521		(60	)		48,461		18,211			53			18,264

Total revenues		79,093		(161	)		78,932		149,353		(256	)		149,097		68,511			262			68,773
Operating expenses:
General and administrative		8,645		148			8,793		18,256		148			18,404		8,411			309			8,720
Total operating expenses		67,632		148			67,780		133,264		148			133,412		61,334			309			61,643
Income from operations		11,461		(309	)		11,152		16,089		(404	)		15,685		7,177			(47	)		7,130
Gains (losses) on investments, net		84		—			84		143		—			143		147			608			755
Income before income taxes		11,675		(309	)		11,366		16,771		(404	)		16,367		7,681			561			8,242
Income tax provision		3,906		(124	)		3,782		5,821		(162	)		5,659		(2,692	)		224			(2,468	)
Net income	$	7,769	$	(185	)	$	7,584	$	10,950	$	(242	)	$	10,708	$	10,373		$	337		$	10,710

Basic income per common share	$	0.34	$	—		$	0.34	$	0.48	$	(0.01	)	$	0.47	$	0.46		$	0.02		$	0.48

Diluted income per common share	$	0.34	$	(0.01	)	$	0.33	$	0.47	$	(0.01	)	$	0.46	$	0.45		$	0.02		$	0.47


	Three Months Ended March 31, 2012							Full Year Ended December 31, 2011
	As Previously Reported		Adjustments			As Revised		As Previously Reported		Adjustments			As Revised
Revenues:
Research services	$	49,760	$	(96	)	$	49,664	$	191,648	$	(153	)	$	191,495
Advisory services and other		20,500		1			20,501		91,968		(128	)		91,840

Total revenues		70,260		(95	)		70,165		283,616		(281	)		283,335
Income from operations		4,628		(95	)		4,533		36,997		(281	)		36,716
Gains (losses) on investments, net		59		—			59		1,018		(1,417	)		(399	)
Income before income taxes		5,096		(95	)		5,001		38,645		(1,698	)		36,947
Income tax provision		1,915		(38	)		1,877		15,635		(679	)		14,956
Net income	$	3,181	$	(57	)	$	3,124	$	23,010	$	(1,019	)	$	21,991

Basic income per common share	$	0.14	$	—		$	0.14	$	1.02	$	(0.05	)	$	0.97

Diluted income per common share	$	0.14	$	(0.01	)	$	0.13	$	0.99	$	(0.04	)	$	0.95

Revised Consolidated Statements of Comprehensive Income

The consolidated statements of comprehensive income for all periods is impacted by the same amount as net income for the respective period.

Revised Consolidated Balance Sheet


	As of December 31, 2012
	As Previously Reported		Adjustments			As Revised
Current Assets:
Prepaid expenses and other current assets	$	18,846	$	132		$	18,978
Total current assets		336,565		132			336,697
Other assets		9,123		(314	)		8,809
Total assets	$	487,832	$	(182	)	$	487,650

Current Liabilities:
Deferred revenue	$	150,479	$	16		$	150,495
Total current liabilities		181,329		16			181,345
Total liabilities		190,762		16			190,778
Retained earnings		117,648		(198	)		117,450
Total stockholders’ equity		297,070		(198	)		296,872
Total liabilities and stockholders’ equity	$	487,832	$	(182	)	$	487,650

Revised Consolidated Statements of Cash Flows


	Three Months Ended March 31, 2013							Six Months Ended June 30, 2013
	As Previously Reported		Adjustments			As Revised		As Previously Reported			Adjustments			As Revised
Cash flows from operating activities:
Net income	$	2,341	$	(172	)	$	2,169	$	7,963		$	391		$	8,354
Net (gains) losses from investments		51		149			200		102			—			102
Prepaid expenses and other current assets		1,271		(115	)		1,156		4,619			260			4,879
Deferred revenue		2,709		138			2,847		(12,955	)		(651	)		(13,606	)
Net cash provided by operating activities		35,453		—			35,453		37,231			—			37,231


	Nine Months Ended September 30, 2012									Year Ended December 31, 2012									Year Ended December 31, 2011
	As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Revised
Cash flows from operating activities:
Net income	$	21,323		$	95		$	21,418		$	25,574		$	387		$	25,961		$	23,010		$	(1,019	)	$	21,991
Net (gains) losses from investments		(290	)		(608	)		(898	)		449			(543	)		(94	)		(1,018	)		1,417			399
Prepaid expenses and other current assets		3,929			62			3,991			6,279			257			6,536			(7,805	)		(679	)		(8,484	)
Deferred revenue		(23,302	)		(6	)		(23,308	)		1,807			(101	)		1,706			16,364			281			16,645
Net cash provided by operating activities		43,223			(457	)		42,766			53,147			—			53,147			55,444			—			55,444
Purchases of property and equipment		(4,845	)		457			(4,388	)		(5,103	)		—			(5,103	)		(39,776	)		—			(39,776	)
Net cash provided by (used in) investing activities		(15,989	)		457			(15,532	)		(4,076	)		—			(4,076	)		(53,036	)		—			(53,036	)