Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

Provision for income taxes consisted of the following (in thousands):

	Years ended December 31,
	2021		2020		2019
Current
Federal	$	22,801	$	43,572	$	9,035
State	11,605		19,155		5,925
	34,406		62,727		14,960
Deferred
Federal	(3,794)		(4,963)		(3,508)
State	(2,158)		(1,657)		(3,285)
	(5,952)		(6,620)		(6,793)
Total provision for income taxes	$	28,454	$	56,107	$	8,167

Schedule of Components of Deferred Tax Assets (Liabilities)

Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2021 and 2020 are shown below (in thousands). A valuation allowance of $22.4 million and $15.5 million as of December 31, 2021 and 2020, respectively, has been established against the Company’s deferred tax assets related to loss entities the Company cannot consolidate under the federal consolidation rules, as realization of these assets is uncertain. Valuation allowance increased by $6.8 million in 2021.

	2021		2020
Deferred tax assets
State taxes	$	2,379	$	3,932
Stock options	—		461
Accrued expenses	1,864		3,905
Allowance for bad debts	153		351
Investment in other entities	3,289		702
Net operating loss carryforward	28,992		20,758
Lease liability	4,208		4,979
Unrealized Gain	3,007		—
Other	705		665
Deferred tax assets before valuation allowance	44,597		35,753
Valuation allowance	(22,351)		(15,517)
Net deferred tax assets	22,246		20,236
Deferred tax liabilities
Property and equipment	(777)		(661)
Acquired intangible assets	(23,763)		(24,661)
Stock options	(1,641)		—
Right-of-use assets	(4,117)		(4,888)
Debt issuance cost	(988)		—
481(a) adjustment	(87)		(985)
Deferred tax liabilities	(31,373)		(31,195)
Net deferred liabilities	$	(9,127)	$	(10,959)

Schedule of Effective Income Tax Rate Reconciliation for Provision for Income Taxes

The provision for income taxes differs from the amount computed by applying the federal income tax rate as follows for the years ended December 31:

	Years ended December 31,
	2021		2020		2019
Tax provision at U.S. federal statutory rates	21.0	%	21.0	%	21.0	%
State income taxes net of federal benefit	7.8		7.7		8.1
Non-deductible permanent items	3.7		0.3		3.3
Variable interest entities	(1.3)		(0.2)		(2.7)
Stock-based compensation	(1.0)		0.3		(1.5)
Change in valuation allowance	8.9		3.2		3.2
Investment basis adjustment	(2.1)		—		—
Other	—		(1.0)		0.2
Effective income tax rate	36.9	%	31.3	%	31.6	%