DELAWARE | 000-25131 | 91-1718107 | ||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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 |
Exhibit No | Description | |||||||
Press release dated May 8, 2019 | ||||||||
Supplemental financial information dated May 8, 2019 |
BLUCORA, INC. | ||||||||
By | /s/ Davinder Athwal | |||||||
Davinder Athwal | ||||||||
Chief Financial Officer | ||||||||
May 8, 2019 |
Q1 | Q1 | ||||||||||||||||
2019 | 2018 | Change | |||||||||||||||
Revenue: | |||||||||||||||||
Wealth Management | $ | 89.5 | $ | 92.1 | (3) | % | |||||||||||
Tax Preparation | $ | 136.2 | $ | 113.9 | 20 | % | |||||||||||
Total Revenue | $ | 225.8 | $ | 206.0 | 10 | % | |||||||||||
Segment Income (Loss): | |||||||||||||||||
Wealth Management | $ | 11.5 | $ | 13.1 | (12) | % | |||||||||||
Tax Preparation | $ | 79.3 | $ | 58.8 | 35 | % | |||||||||||
Total Segment Income | $ | 90.8 | $ | 71.9 | 26 | % | |||||||||||
Unallocated Corporate Operating Expenses | $ | (7.1) | $ | (5.5) | 28 | % | |||||||||||
GAAP: | |||||||||||||||||
Operating Income | $ | 70.1 | $ | 52.7 | 33 | % | |||||||||||
Net Income Attributable to Blucora, Inc. | $ | 62.2 | $ | 45.3 | 37 | % | |||||||||||
Diluted Net Income Per Share Attributable to Blucora, Inc. (EPS) | $ | 1.25 | $ | 0.93 | 34 | % | |||||||||||
Non-GAAP*: | |||||||||||||||||
Adjusted EBITDA | $ | 83.7 | $ | 66.3 | 26 | % | |||||||||||
Net Income | $ | 77.2 | $ | 58.2 | 33 | % | |||||||||||
Diluted Net Income Per Share (EPS) | $ | 1.56 | $ | 1.20 | 30 | % | |||||||||||
* See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below. |
(in thousands except %s) | Tax seasons ended | ||||||||||||||||
April 16, 2019 | April 19, 2018 | Change | |||||||||||||||
E-files: | |||||||||||||||||
Consumer | 3,115 | 3,772 | (17) | % | |||||||||||||
Professional tax preparer | 1,833 | 1,763 | 4 | % | |||||||||||||
Total e-files | 4,948 | 5,535 | (11) | % |
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 (1) | 65,575 | 67,467 | |||||||||
Engineering and technology (1) | 6,529 | 5,131 | |||||||||
Sales and marketing (1) | 55,572 | 55,253 | |||||||||
General and administrative (1) | 18,874 | 14,866 | |||||||||
Depreciation | 1,061 | 1,915 | |||||||||
Amortization of other acquired intangible assets | 8,044 | 8,307 | |||||||||
Restructuring (1) | — | 289 | |||||||||
Total operating expenses | 155,655 | 153,228 | |||||||||
Operating income | 70,113 | 52,737 | |||||||||
Other loss, net (2) | (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 |
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 stock-based compensation expense | $ | 2,443 | $ | 2,955 |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Interest income | $ | (140) | $ | (40) | |||||||
Interest expense | 3,776 | 4,181 | |||||||||
Amortization of debt issuance costs | 172 | 203 | |||||||||
Accretion of debt discounts | 38 | 47 | |||||||||
Loss on debt extinguishment | — | 776 | |||||||||
Other | 112 | 61 | |||||||||
Other loss, net | $ | 3,958 | $ | 5,228 |
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 | |||||||||
Stockholders’ equity: | |||||||||||
Common stock | 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 | ||||||||||
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 |
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Revenue: | |||||||||||
Wealth Management (1) | $ | 89,532 | $ | 92,082 | |||||||
Tax Preparation (1) | 136,236 | 113,883 | |||||||||
Total revenue | 225,768 | 205,965 | |||||||||
Operating income: | |||||||||||
Wealth Management | 11,540 | 13,075 | |||||||||
Tax Preparation | 79,272 | 58,806 | |||||||||
Corporate-level activity (2) | (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 | 2018 | ||||||||||
Operating expenses | $ | (7,105) | $ | (5,541) | |||||||
Stock-based compensation | (2,443) | (2,955) | |||||||||
Acquisition-related costs | (1,797) | — | |||||||||
Depreciation | (1,310) | (2,002) | |||||||||
Amortization of acquired intangible assets | (8,044) | (8,357) | |||||||||
Restructuring | — | (289) | |||||||||
Total corporate-level activity | $ | (20,699) | $ | (19,144) |
(In thousands) | Three Months Ended March 31, | ||||||||||
2019 | 2018 | ||||||||||
Net income attributable to Blucora, Inc. (2) | $ | 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) | 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 |
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Net income attributable to Blucora, Inc. (2) | $ | 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 (1) | 3,151 | 1,398 | |||||||||
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 | 0.00 | |||||||||
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 |
Ranges for the three months ending | Ranges for the year ending | ||||||||||||||||||||||
June 30, 2019 | December 31, 2019 | ||||||||||||||||||||||
Low | High | Low | High | ||||||||||||||||||||
Net income attributable to Blucora, Inc. | $ | 23,000 | $ | 26,000 | $ | 41,000 | $ | 51,500 | |||||||||||||||
Stock-based compensation | 4,900 | 4,700 | 16,700 | 16,300 | |||||||||||||||||||
Depreciation and amortization of acquired intangible assets | 9,800 | 9,600 | 38,700 | 38,200 | |||||||||||||||||||
Other loss, net (3) | 4,300 | 4,100 | 16,600 | 16,200 | |||||||||||||||||||
Acquisition and integration costs | — | — | 1,800 | 1,800 | |||||||||||||||||||
Income tax expense | 2,000 | 2,600 | 4,200 | 5,000 | |||||||||||||||||||
Adjusted EBITDA | $ | 44,000 | $ | 47,000 | $ | 119,000 | $ | 129,000 |
Ranges for the three months ending | Ranges for the year ending | ||||||||||||||||||||||
June 30, 2019 | December 31, 2019 | ||||||||||||||||||||||
Low | High | Low | High | ||||||||||||||||||||
Net income attributable to Blucora, Inc. | $ | 23,000 | $ | 26,000 | $ | 41,000 | $ | 51,500 | |||||||||||||||
Stock-based compensation | 4,900 | 4,700 | 16,700 | 16,300 | |||||||||||||||||||
Amortization of acquired intangible assets | 8,000 | 8,000 | 32,200 | 32,100 | |||||||||||||||||||
Acquisition and integration costs | — | — | 1,800 | 1,800 | |||||||||||||||||||
Cash tax impact of adjustments to net income | (500) | (500) | (1,600) | (1,600) | |||||||||||||||||||
Non-cash income tax benefit | 100 | 300 | 900 | 1,400 | |||||||||||||||||||
Non-GAAP net income | $ | 35,500 | $ | 38,500 | $ | 91,000 | $ | 101,500 | |||||||||||||||
Per diluted share: | |||||||||||||||||||||||
Net income attributable to Blucora, Inc. | $ | 0.46 | $ | 0.52 | $ | 0.81 | $ | 1.02 | |||||||||||||||
Stock-based compensation | 0.10 | 0.09 | 0.33 | 0.32 | |||||||||||||||||||
Amortization of acquired intangible assets | 0.16 | 0.16 | 0.63 | 0.63 | |||||||||||||||||||
Acquisition and integration costs | — | — | 0.04 | 0.04 | |||||||||||||||||||
Cash tax impact of adjustments to net income | (0.01) | (0.01) | (0.03) | (0.03) | |||||||||||||||||||
Non-cash income tax benefit | — | 0.01 | 0.02 | 0.03 | |||||||||||||||||||
Non-GAAP net income per share | $ | 0.71 | $ | 0.77 | $ | 1.80 | $ | 2.01 | |||||||||||||||
Weighted average shares outstanding used in computing per diluted share amounts | 50,300 | 50,150 | 50,500 | 50,400 |
Financial Information | |||||
Operating Metrics | |||||
(in thousands except %s and per share amounts, rounding differences may exist) | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||
FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | |||||||||||||||||||||||||||||||||||
Segment revenue: | |||||||||||||||||||||||||||||||||||||||||
Wealth Management | $ | 348,620 | $ | 92,082 | $ | 92,015 | $ | 91,887 | $ | 97,190 | $ | 373,174 | $ | 89,532 | |||||||||||||||||||||||||||
Tax Preparation (1) | 160,937 | 113,883 | 65,833 | 3,498 | 4,068 | 187,282 | 136,236 | ||||||||||||||||||||||||||||||||||
Total | $ | 509,557 | $ | 205,965 | $ | 157,848 | $ | 95,385 | $ | 101,258 | $ | 560,456 | $ | 225,768 | |||||||||||||||||||||||||||
Segment income (loss): (2) | |||||||||||||||||||||||||||||||||||||||||
Wealth Management | $ | 50,916 | $ | 13,075 | $ | 12,954 | $ | 12,891 | $ | 14,133 | $ | 53,053 | $ | 11,540 | |||||||||||||||||||||||||||
Tax Preparation (1) | 72,921 | 58,806 | 44,121 | (6,936) | (8,742) | 87,249 | 79,272 | ||||||||||||||||||||||||||||||||||
Total | $ | 123,837 | $ | 71,881 | $ | 57,075 | $ | 5,955 | $ | 5,391 | $ | 140,302 | $ | 90,812 | |||||||||||||||||||||||||||
Segment income (loss) % of revenue: | |||||||||||||||||||||||||||||||||||||||||
Wealth Management | 15 | % | 14 | % | 14 | % | 14 | % | 15 | % | 14 | % | 13 | % | |||||||||||||||||||||||||||
Tax Preparation (1) | 45 | % | 52 | % | 67 | % | (198) | % | (215) | % | 47 | % | 58 | % | |||||||||||||||||||||||||||
Total | 24 | % | 35 | % | 36 | % | 6 | % | 5 | % | 25 | % | 40 | % | |||||||||||||||||||||||||||
Unallocated corporate operating expenses (2) | $ | 22,907 | $ | 5,541 | $ | 4,238 | $ | 4,572 | $ | 6,143 | $ | 20,494 | $ | 7,105 | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 100,930 | $ | 66,340 | $ | 52,837 | $ | 1,383 | $ | (752) | $ | 119,808 | $ | 83,707 | |||||||||||||||||||||||||||
Other unallocated operating expenses: (2) | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | $ | 11,653 | $ | 2,955 | $ | 3,730 | $ | 2,874 | $ | 3,694 | $ | 13,253 | $ | 2,443 | |||||||||||||||||||||||||||
Acquisition and integration costs | — | — | — | — | — | — | 1,797 | ||||||||||||||||||||||||||||||||||
Depreciation | 4,137 | 2,002 | 1,124 | 930 | 947 | 5,003 | 1,310 | ||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 34,002 | 8,357 | 8,855 | 8,271 | 8,103 | 33,586 | 8,044 | ||||||||||||||||||||||||||||||||||
Restructuring | 3,101 | 289 | 2 | — | (3) | 288 | — | ||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 48,037 | $ | 52,737 | $ | 39,126 | $ | (10,692) | $ | (13,493) | $ | 67,678 | $ | 70,113 | |||||||||||||||||||||||||||
Unallocated other income/loss: (2) | |||||||||||||||||||||||||||||||||||||||||
Interest income | $ | (110) | $ | (40) | $ | (58) | $ | (119) | $ | (132) | $ | (349) | $ | (140) | |||||||||||||||||||||||||||
Interest expense | 21,211 | 4,181 | 3,847 | 3,744 | 3,838 | 15,610 | 3,776 | ||||||||||||||||||||||||||||||||||
Amortization of debt issuance costs | 1,089 | 203 | 284 | 172 | 174 | 833 | 172 | ||||||||||||||||||||||||||||||||||
Accretion of debt discounts | 1,947 | 47 | 40 | 38 | 38 | 163 | 38 | ||||||||||||||||||||||||||||||||||
Loss on debt extinguishment and modification expense | 20,445 | 776 | 758 | — | — | 1,534 | — | ||||||||||||||||||||||||||||||||||
Other (income) loss, net | (31) | 61 | (2,112) | 28 | 29 | (1,994) | 112 | ||||||||||||||||||||||||||||||||||
Total | $ | 44,551 | $ | 5,228 | $ | 2,759 | $ | 3,863 | $ | 3,947 | $ | 15,797 | $ | 3,958 | |||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 3,486 | $ | 47,509 | $ | 36,367 | $ | (14,555) | $ | (17,440) | $ | 51,881 | $ | 66,155 | |||||||||||||||||||||||||||
Income tax (benefit) expense: (3) | |||||||||||||||||||||||||||||||||||||||||
Cash | $ | 963 | $ | 565 | $ | 325 | $ | 515 | $ | 1,309 | $ | 2,714 | $ | 834 | |||||||||||||||||||||||||||
Non-cash (4) | (26,853) | 1,398 | 582 | (1,333) | (3,050) | (2,403) | 3,151 | ||||||||||||||||||||||||||||||||||
Total | $ | (25,890) | $ | 1,963 | $ | 907 | $ | (818) | $ | (1,741) | $ | 311 | $ | 3,985 | |||||||||||||||||||||||||||
GAAP income (loss) | $ | 29,376 | $ | 45,546 | $ | 35,460 | $ | (13,737) | $ | (15,699) | $ | 51,570 | $ | 62,170 | |||||||||||||||||||||||||||
GAAP income (loss) per share - diluted | $ | 0.57 | $ | 0.93 | $ | 0.71 | $ | (0.37) | $ | (0.38) | $ | 0.90 | $ | 1.25 | |||||||||||||||||||||||||||
GAAP impact of noncontrolling interests (5) | (2,337) | (205) | (222) | (227) | (281) | (935) | — | ||||||||||||||||||||||||||||||||||
GAAP net income (loss) attributable to Blucora, Inc. | $ | 27,039 | $ | 45,341 | $ | 35,238 | $ | (13,964) | $ | (15,980) | $ | 50,635 | $ | 62,170 | |||||||||||||||||||||||||||
Non-GAAP net income (loss) | $ | 69,148 | $ | 58,232 | $ | 47,726 | $ | (4,430) | $ | (7,492) | $ | 94,036 | $ | 77,194 |
(in thousands except %s and per share amounts, rounding differences may exist) | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||
FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | |||||||||||||||||||||||||||||||||||
Non-GAAP net income (loss) per share - diluted | $ | 1.46 | (6) | $ | 1.20 | $ | 0.97 | $ | (0.09) | $ | (0.16) | $ | 1.90 | (7) | $ | 1.56 | |||||||||||||||||||||||||
Outstanding Shares | 46,366 | 46,828 | 47,494 | 47,816 | 48,044 | 48,044 | 48,255 | ||||||||||||||||||||||||||||||||||
Basic shares - GAAP | 44,370 | 46,641 | 47,221 | 47,712 | 48,002 | 47,394 | 48,161 | ||||||||||||||||||||||||||||||||||
Diluted shares - GAAP | 47,211 | 48,665 | 49,434 | 47,712 | 48,002 | 49,381 | 49,542 |
2017 | 2018 | 2019 | |||||||||||||||||||||||||||||||||||||||
(in thousands except per share amounts, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Blucora, Inc. (1) (2) | $ | 27,039 | $ | 45,341 | $ | 35,238 | $ | (13,964) | $ | (15,981) | $ | 50,634 | $ | 62,170 | |||||||||||||||||||||||||||
Stock-based compensation | 11,653 | 2,955 | 3,730 | 2,874 | 3,694 | 13,253 | 2,443 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization of acquired intangible assets | 38,139 | 10,359 | 9,979 | 9,201 | 9,050 | 38,590 | 9,354 | ||||||||||||||||||||||||||||||||||
Restructuring | 3,101 | 289 | 2 | — | (3) | 288 | — | ||||||||||||||||||||||||||||||||||
Other loss, net | 44,551 | 5,228 | 2,759 | 3,863 | 3,947 | 15,797 | 3,958 | ||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 2,337 | 205 | 222 | 227 | 281 | 935 | — | ||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | (25,890) | 1,963 | 907 | (818) | (1,741) | 311 | 3,985 | ||||||||||||||||||||||||||||||||||
Acquisition and integration costs | — | — | — | — | — | — | 1,797 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 100,930 | $ | 66,340 | $ | 52,837 | $ | 1,383 | $ | (753) | $ | 119,808 | $ | 83,707 | |||||||||||||||||||||||||||
Non-GAAP Net Income (Loss) | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Blucora, Inc. (1) (2) (3) | $ | 27,039 | $ | 45,341 | $ | 35,238 | $ | (13,964) | $ | (15,981) | $ | 50,634 | $ | 62,170 | |||||||||||||||||||||||||||
Stock-based compensation | 11,653 | 2,955 | 3,730 | 2,874 | 3,694 | 13,253 | 2,443 | ||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 34,002 | 8,357 | 8,855 | 8,271 | 8,103 | 33,586 | 8,044 | ||||||||||||||||||||||||||||||||||
Accretion and write-off of debt discount and debt issuance costs on previous debt | 17,875 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Acquisition and integration costs | — | — | — | — | — | — | 1,797 | ||||||||||||||||||||||||||||||||||
Restructuring | 3,101 | 289 | 2 | — | (3) | 288 | — | ||||||||||||||||||||||||||||||||||
Impact of noncontrolling interests | 2,337 | 205 | 222 | 227 | 281 | 935 | — | ||||||||||||||||||||||||||||||||||
Cash tax impact of adjustments to GAAP net income | (6) | (313) | (903) | (505) | (536) | (2,257) | (411) | ||||||||||||||||||||||||||||||||||
Non-cash income tax (benefit) expense | (26,853) | 1,398 | 582 | (1,333) | (3,050) | (2,403) | 3,151 | ||||||||||||||||||||||||||||||||||
Non-GAAP net income (loss) | $ | 69,148 | $ | 58,232 | $ | 47,726 | $ | (4,430) | $ | (7,492) | $ | 94,036 | $ | 77,194 | |||||||||||||||||||||||||||
Non-GAAP net income (loss) per share | $ | 1.06 | $ | 1.20 | $ | 0.97 | $ | (0.09) | $ | (0.16) | $ | 1.90 | $ | 1.56 | |||||||||||||||||||||||||||
Diluted shares | 47,211 | 48,665 | 49,434 | 47,712 | 48,002 | 49,381 | 49,542 |
2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
(in thousands except ratio, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | |||||||||||||||||||||||||||||||||||||
CASH: | ||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 59,965 | $ | 77,107 | $ | 89,840 | $ | 88,274 | $ | 84,524 | $ | 84,524 | $ | 149,762 | ||||||||||||||||||||||||||||||
DEBT: | ||||||||||||||||||||||||||||||||||||||||||||
Senior secured credit facility | $ | 345,000 | $ | 305,000 | $ | 265,000 | $ | 265,000 | $ | 265,000 | $ | 265,000 | $ | 265,000 | ||||||||||||||||||||||||||||||
NET DEBT (1) (2) | $ | (285,035) | $ | (227,893) | $ | (175,160) | $ | (176,726) | $ | (180,476) | $ | (180,476) | $ | (115,238) | ||||||||||||||||||||||||||||||
Last twelve months: | ||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INCOME: | ||||||||||||||||||||||||||||||||||||||||||||
Wealth Management | $ | 50,916 | $ | 52,138 | $ | 52,686 | $ | 53,152 | $ | 53,053 | $ | 53,053 | $ | 51,518 | ||||||||||||||||||||||||||||||
Tax Preparation | 72,921 | 78,594 | 86,200 | 85,502 | 87,249 | 87,249 | 107,715 | |||||||||||||||||||||||||||||||||||||
$ | 123,837 | $ | 130,732 | $ | 138,886 | $ | 138,654 | $ | 140,302 | $ | 140,302 | $ | 159,233 | |||||||||||||||||||||||||||||||
Unallocated corporate operating expenses | (22,907) | (21,675) | (19,450) | (19,435) | (20,494) | (20,494) | (22,058) | |||||||||||||||||||||||||||||||||||||
ADJUSTED EBITDA (1) | $ | 100,930 | $ | 109,057 | $ | 119,436 | $ | 119,219 | $ | 119,808 | $ | 119,808 | $ | 137,175 | ||||||||||||||||||||||||||||||
LEVERAGE RATIO (1) (3) | 2.8 | x | 2.1 | x | 1.5 | x | 1.5 | x | 1.5 | x | 1.5 | x | 0.8 | x | ||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | |||||||||||||||||||||||||||||||||||||||
(in thousands, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | ||||||||||||||||||||||||||||||||||
Net cash provided (used) by operating activities from continuing operations | $ | 72,846 | $ | 57,450 | $ | 49,107 | $ | (974) | $ | (35) | $ | 105,548 | $ | 70,236 | |||||||||||||||||||||||||||
Purchases of property and equipment | (5,039) | (940) | (1,662) | (2,738) | (2,293) | (7,633) | (1,243) | ||||||||||||||||||||||||||||||||||
Operating free cash flow from continuing operations | $ | 67,807 | $ | 56,510 | $ | 47,445 | $ | (3,712) | $ | (2,328) | $ | 97,915 | $ | 68,993 |
2017 | 2018 | 2019 | |||||||||||||||||||||||||||||||||||||||
(in thousands except %s, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | ||||||||||||||||||||||||||||||||||
Segment revenue | $ | 348,620 | $ | 92,082 | $ | 92,015 | $ | 91,887 | $ | 97,190 | $ | 373,174 | $ | 89,532 | |||||||||||||||||||||||||||
Segment net revenue (1) | $ | 113,417 | $ | 29,256 | $ | 29,822 | $ | 29,994 | $ | 31,745 | $ | 120,817 | $ | 28,672 | |||||||||||||||||||||||||||
Segment income (2) | $ | 50,916 | $ | 13,075 | $ | 12,954 | $ | 12,891 | $ | 14,133 | $ | 53,053 | $ | 11,540 | |||||||||||||||||||||||||||
Segment income % of revenue | 15 | % | 14 | % | 14 | % | 14 | % | 15 | % | 14 | % | 13 | % | |||||||||||||||||||||||||||
Segment income % of net revenue | 45 | % | 45 | % | 43 | % | 43 | % | 45 | % | 44 | % | 40 | % |
(in thousands except %s, rounding differences may exist) | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Sources of Revenue | Primary Drivers | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | |||||||||||||||||||||||||||||||||||||||
Adviser-driven | Commission | - Transactions - Asset levels | $ | 160,241 | $ | 42,870 | $ | 40,384 | $ | 41,015 | $ | 39,932 | $ | 164,201 | $ | 37,160 | |||||||||||||||||||||||||||||||
Advisory | - Advisory asset levels | 145,694 | 39,301 | 40,058 | 41,443 | 43,551 | 164,353 | 39,757 | |||||||||||||||||||||||||||||||||||||||
Other revenue | Asset-based | - Cash balances - Interest rates - Number of accounts - Client asset levels | 26,297 | 7,172 | 7,306 | 6,979 | 9,999 | 31,456 | 9,693 | ||||||||||||||||||||||||||||||||||||||
Transaction and fee | - Account activity - Number of clients - Number of advisors - Number of accounts | 16,388 | 2,739 | 4,267 | 2,450 | 3,708 | 13,164 | 2,922 | |||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 348,620 | $ | 92,082 | $ | 92,015 | $ | 91,887 | $ | 97,190 | $ | 373,174 | $ | 89,532 | |||||||||||||||||||||||||||||||||
Total recurring revenue (3) | $ | 277,546 | $ | 72,962 | $ | 75,369 | $ | 74,228 | $ | 80,558 | $ | 303,117 | $ | 73,241 | |||||||||||||||||||||||||||||||||
Recurring revenue rate (3) | 79.6 | % | 79.2 | % | 81.9 | % | 80.8 | % | 82.9 | % | 81.2 | % | 81.8 | % |
(in thousands except %s and as otherwise indicated, rounding differences may exist) | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||
FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | |||||||||||||||||||||||||||||||||||
Total Client Assets | $ | 44,178,710 | $ | 44,383,024 | $ | 45,016,993 | $ | 46,413,409 | $ | 42,249,055 | $ | 42,249,055 | $ | 46,164,603 | |||||||||||||||||||||||||||
Brokerage Assets | $ | 31,648,545 | $ | 31,665,899 | $ | 32,069,800 | $ | 32,897,081 | $ | 29,693,650 | $ | 29,693,650 | $ | 32,176,414 | |||||||||||||||||||||||||||
Advisory Assets | $ | 12,530,165 | $ | 12,717,125 | $ | 12,947,193 | $ | 13,516,328 | $ | 12,555,405 | $ | 12,555,405 | $ | 13,988,189 | |||||||||||||||||||||||||||
% of total Total Client Assets | 28.4 | % | 28.7 | % | 28.8 | % | 29.1 | % | 29.7 | % | 29.7 | % | 30.3 | % | |||||||||||||||||||||||||||
Number of advisors (in ones) | 3,999 | 3,920 | 3,709 | 3,687 | 3,593 | 3,593 | 3,553 | ||||||||||||||||||||||||||||||||||
Adviser-driven revenue per adviser (4) | $ | 76.5 | $ | 21.0 | $ | 21.7 | $ | 22.4 | $ | 23.2 | $ | 91.4 | $ | 21.6 |
(in thousands except %s, rounding differences may exist) | U.S. tax seasons ended | Three months ended March 31, | |||||||||||||||||||||||||||||||||
Consumers | April 16, 2019 | April 19, 2018 | % change | 2019 | 2018 | % change | |||||||||||||||||||||||||||||
E-files | 3,115 | 3,772 | (17) | % | 2,244 | 2,742 | (18) | % |
(in thousands except %s and as otherwise indicated, rounding differences may exist) | U.S. tax seasons ended | Three months ended March 31, | |||||||||||||||||||||||||||||||||
Preparers | April 16, 2019 | April 19, 2018 | % change | 2019 | 2018 | % change | |||||||||||||||||||||||||||||
E-files | 1,833 | 1,763 | 4 | % | 1,381 | 1,324 | 4 | % | |||||||||||||||||||||||||||
Units sold (in ones) | 20,502 | 20,588 | — | % | 20,024 | 20,191 | (1) | % | |||||||||||||||||||||||||||
E-files per unit sold (in ones) | 89.4 | 85.6 | 4 | % | 69.0 | 65.6 | 5 | % |