8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 6, 2010

VERISK ANALYTICS, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-34480	26-2994223
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

545 Washington Boulevard, Jersey City, NJ	07310
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (201) 469-2000

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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))

Item 2.02 Results of Operations and Financial Condition.

On May 6, 2010, Verisk Analytics, Inc. (the “Registrant”) issued a press release announcing its financial results for the quarter ended March 31, 2010. A copy of the press release is annexed as Exhibit 99.1 and incorporated by reference herein. All information in the press release is furnished but not filed.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release, dated May 6, 2010.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	VERISK ANALYTICS, INC.
Date: May 6, 2010	By:	/s/ Kenneth E. Thompson
		Name:	Kenneth E. Thompson
		Title:	Senior Vice President, General Counsel and Corporate Secretary

EX-99.1

Exhibit 99.1

Release:     Immediate

Contact:

Media	Investor Relations
Rich Tauberman	Eva Huston
MWW Group (for Verisk Analytics)	Head of Investor Relations
202-585-2282	Verisk Analytics, Inc.
rtauberman@mww.com	201-469-2142
	eva.huston@verisk.com

Verisk Analytics, Inc. Reports First-Quarter 2010 Financial Results

Delivers 12.4% revenue growth and $0.33 adjusted EPS

JERSEY CITY, N.J., May 6, 2010 (GLOBE NEWSWIRE) — Verisk Analytics, Inc. (NASDAQ:VRSK), a leading source of information about risk, today announced results for the first quarter ended March 31, 2010:

First-Quarter 2010 Financial Highlights

See Tables 4 and 5 for a reconciliation of non-GAAP financial measures to the relevant GAAP measures.

• Diluted GAAP earnings per share (“diluted GAAP EPS”) were $0.29 for the first-quarter 2010 and diluted adjusted earnings per share (“diluted adjusted EPS”) were $0.33, an increase of 13.8% versus the same period in 2009.

• Total revenues increased 12.4% for first-quarter 2010, driven by 21.9% growth in Decision Analytics revenues. Risk Assessment revenues grew 3.9% for the quarter, matching the growth rate in 2009 despite weaker premiums for our property/casualty insurance customers. Excluding the impact of recent acquisitions, total revenues grew 11.8% for the first quarter.

• Adjusted EBITDA increased 14.8% to $123.6 million for first-quarter 2010 and adjusted net income increased 17.7% to $62.0 million. Net income for the first quarter ended March 31, 2010 was $55.4 million.

• The company announced the authorization by the Board of Directors of a $150 million share repurchase program to be executed at management’s discretion. The program is intended to limit shareholder dilution from option grants and other employee benefit plans.

Frank J. Coyne, chairman, president, and CEO, said, “As we enter 2010, we continue to deliver growth and profitability, demonstrating the value of our solutions to all of our customers.”

“Decision Analytics continues to deliver significant growth over a strong showing in 2009. Our mortgage analytics services continue to grow nicely in 2010, even after a robust 2009, and reduced levels of mortgage originations. Our integration of Strategic Analytics is proceeding well and we have seen the power of combining Strategic Analytics’ capabilities with our other solutions. And we remain enthusiastic about the continued strong performance of insurance-facing services, such as our loss quantification solutions, which grew by double digits from both existing services, as well as through our new solutions, such as contents estimation and geographic expansion.”

1

“Even with premium declines for our property/casualty customers, Risk Assessment continues to show steady growth, illustrating that our customers recognize our solutions as an integral part of managing their businesses through both good and bad times,” Mr. Coyne added.

“We are pleased to deliver revenue growth near the high end of the long-term organic growth target we set at the IPO, while also delivering strong EBITDA and adjusted net income growth. We continue to evaluate M&A opportunities and are optimistic we can find attractive businesses to add to our portfolio,” concluded Mr. Coyne.

Summary of Results for First Quarter

Table 1

	Three Months Ended
	March 31,
					Change
	2010		2009		%
	(in thousands, except per share amounts)
Revenues	$	276,154	$	245,751		12.4	%
EBITDA	$	123,647	$	104,908		17.9	%
Adjusted EBITDA	$	123,647	$	107,741		14.8	%
Net income	$	55,375	$	44,915		23.3	%
Adjusted net income	$	62,046	$	52,705		17.7	%
Diluted GAAP EPS	$	0.29	$	0.25		16.0	%
Diluted adjusted EPS	$	0.33	$	0.29		13.8	%

Revenues

Overall, revenues grew 12.4% for the quarter ended March 31, 2010. Excluding the impact of recent acquisitions (TierMed, Enabl-u, and Strategic Analytics), revenues grew 11.8% for the quarter, led by the 20.6% organic growth of Decision Analytics.

Table 2A

	Three Months Ended
	March 31,
					Change
	2010		2009		%
	(in thousands)
Decision Analytics revenues by category:
Fraud identification and detection solutions	$	78,795	$	63,842		23.4	%
Loss prediction solutions		36,928		30,953		19.3	%
Loss quantification solutions		25,853		21,390		20.9	%
Total Decision Analytics	$	141,576	$	116,185		21.9	%

2

Within the Decision Analytics segment, revenues grew 21.9% for the quarter ended March 31, 2010 and 20.6% excluding recent acquisitions. During the quarter, organic revenue growth was led by a 22.9% increase in the company’s fraud identification solutions revenues, as growth in mortgage fraud analytics and other fraud detection solutions continued, even with a larger revenue base.

Loss prediction solutions revenues grew at 19.3% for the quarter and 16.0% organically, as Verisk saw strong growth from both weather and climate risk predictive modeling and healthcare analytics and continued growth from its catastrophe modeling solutions. In the first quarter of 2010, D2Hawkeye and AER became a part of the reported organic growth, as they have now been owned in both the reported and comparable periods.

Loss quantification solutions revenues grew 20.9% for first-quarter 2010, with contributions from existing solutions as well as newer solutions and markets.

Table 2B

	Three Months Ended
	March 31,
					Change
	2010		2009		%
	(in thousands)
Risk Assessment revenues by category:
Industry standard insurance programs	$	88,044	$	85,147		3.4	%
Property-specific rating and underwriting information		33,959		32,001		6.1	%
Statistical agency and data services		7,179		7,058		1.7	%
Actuarial services		5,396		5,360		0.7	%
Total Risk Assessment	$	134,578	$	129,566		3.9	%

Within the Risk Assessment segment, revenues grew 3.9% in the first quarter ended March 31, 2010 as customers continue to value the company’s solutions despite the industry-wide property/casualty premium decline of 4.0% in commercial lines for the 2008 period, which influences the company’s 2010 invoices. Property-specific rating and underwriting information benefited from increased transaction volumes in the first-quarter 2010.

Cost of Revenues

Cost of revenues increased 6.9% in the quarter ended March 31, 2010, and 5.7% excluding the impact of recent acquisitions. The increase in cost of revenues was due to third-party data costs related primarily to the company’s mortgage fraud analytics solutions, as well as increases in salary and benefits. The cost of revenues for Risk Assessment declined slightly because of decreased salary and benefits, in part related to staff support in property-specific rating and underwriting information.

Selling, General and Administrative

Selling, general and administrative expense grew 12.6% in first-quarter 2010, and 11.6%, excluding the impact of recent acquisitions. The increase was largely related to increased salary and benefits, primarily due to increased incentive compensation related to IPO stock option grants.

EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA grew 17.9% and 14.8%, respectively, in the first quarter ended March 31, 2010. EBITDA and Adjusted EBITDA are now consistent for first-quarter 2010 as the primary adjustments of ESOP allocation expense and IPO-related costs are zero for the current period.

3

The Adjusted EBITDA margin was 44.8% for first-quarter 2010, an increase from the Adjusted EBITDA margin of 43.8% in the same period in 2009. The improved margin reflects decreased salary and benefits as a percentage of revenue versus 2009, which was partially offset by incremental data and consulting costs, primarily related to the growth in transactions in mortgage solutions.

Table 3A

	Three Months Ended
	March 31,
							Change
	2010			2009			%
	(in thousands)
EBITDA	$	123,647		$	104,908			17.9	%
plus: ESOP allocation expense		—			2,633
plus: IPO-related costs		—			200
Adjusted EBITDA	$	123,647		$	107,741			14.8	%
EBITDA margin		44.8	%		42.7	%
Adjusted EBITDA margin		44.8	%		43.8	%

Adjusted EBITDA grew 27.8% for Decision Analytics and 5.3% for Risk Assessment for the quarter ended March 31, 2010 as shown in Table 3B. For first-quarter 2010, EBITDA and Adjusted EBITDA margins were 48.7% for Risk Assessment and 41.1% for Decision Analytics. Expansion of Decision Analytics margin was driven by operating leverage. The Risk Assessment margin benefited from topline growth for first-quarter 2010 while not impacted by annual salary and equity compensation increases that occur annually in the second quarter. Additionally, lower pension expenses provided a benefit in the quarter.

Table 3B

	Three Months Ended
	March 31,
							Change
	2010			2009			%
	(in thousands)
Segment EBITDA:
Risk Assessment	$	65,496		$	60,599			8.1	%
EBITDA margin		48.7	%		46.8	%
Decision Analytics	$	58,151		$	44,309			31.2	%
EBITDA margin		41.1	%		38.1	%
Total EBITDA	$	123,647		$	104,908			17.9	%
EBITDA margin		44.8	%		42.7	%
Adjusted segment EBITDA:
Risk Assessment	$	65,496		$	62,224			5.3	%
Adjusted EBITDA margin		48.7	%		48.0	%
Decision Analytics	$	58,151		$	45,517			27.8	%
Adjusted EBITDA margin		41.1	%		39.2	%
Total adjusted EBITDA	$	123,647		$	107,741			14.8	%
Adjusted EBITDA margin		44.8	%		43.8	%

4

Net Income and Adjusted Net Income

Net income increased 23.3% in first-quarter 2010, reflecting the growth in our business. Adjusted net income grew 17.7% in first-quarter 2010. Included in the adjustment to net income was a $2.4 million noncash charge related to recently enacted changes in the tax treatment for the Medicare Part D subsidy. The income tax effect on amortization of intangibles is calculated at 41.0%, our effective rate excluding the impact of the Medicare tax subsidy discussed above.

The table below sets forth a reconciliation of net income to adjusted net income and adjusted EPS based on our historical results:

Table 4

	Three Months Ended
	March 31,
							Change
	2010			2009			%
	(in thousands, except per share amounts)
Net income	$	55,375		$	44,915			23.3	%
plus: Amortization of intangibles		7,304			8,510
plus: Reduction in Medicare subsidy tax benefit		2,362			—
plus: ESOP allocation expense		—			2,633
plus: IPO-related costs		—			200
less: Income tax effect on amortization of intangibles		(2,995	)		(3,553	)
Adjusted net income	$	62,046		$	52,705			17.7	%
Basic adjusted EPS	$	0.34		$	0.30			13.3	%
Diluted adjusted EPS	$	0.33		$	0.29			13.8	%
Weighted average shares outstanding
Basic		180,053,550			173,938,000
Diluted		189,454,756			180,604,450

Net Cash Provided by Operating Activities and Capital Expenditures

Net cash provided by operating activities was $137.2 million and increased $1.8 million for the quarter ended March 31, 2010 compared with first-quarter 2009. The growth was primarily a result of an $18.1 million increase due to the improved profitability of the business and a $5.4 million decrease in tax payments. This was offset largely by a $21.8 million increase in working capital related to accelerated timing of certain customer payments that were received in fourth-quarter 2009, while they were received in the first quarter in 2009, as well as timing of other operating payments.

Capital expenditures were $8.9 million in first-quarter 2010, a decrease of $2.7 million from first-quarter 2009 due to investment in infrastructure in 2009 that did not recur in 2010. Capital expenditures were 3.2% of revenue in first-quarter 2010. Verisk expects capital expenditures to be approximately $43 million for full-year 2010.

Net cash provided by operating activities less capital expenditures represented more than 100% of EBITDA during the quarter, reflecting continued strong cash conversion as well as fees paid in advance for 2010 for some of the company’s services.

5

Share Repurchase Authorization

Verisk announced today that its Board of Directors approved a new $150 million share repurchase authorization of its stock. Under the new program, Verisk may repurchase shares in the open market or as otherwise may be determined by the company, subject to market conditions, business opportunities, and other factors. The company has no obligation to repurchase shares under the program and intends to use this authorization as a means of offsetting dilution from the issuance of shares under employee compensation and benefit plans.

This authorization has no expiration date and may be suspended or terminated at any time. Repurchased shares will be recorded as treasury stock, but will be available for future issuance.

Mr. Coyne noted, “This repurchase program is consistent with our statement to the market about limiting dilution from options. With significant free cash flow and low leverage, our financial capacity gives us the flexibility to continue to execute our growth strategies, including acquisitions, while giving us flexibility to implement a share repurchase program.”

Conference Call

Verisk’s management team will host a live audio webcast on Friday, May 7, 2010, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss the financial results and business highlights. All interested parties are invited to listen to the live event via webcast on the Verisk investor website at http://investor.verisk.com. The discussion is also available through dial-in number 1-877-368-8165 for U.S./Canada participants or 970-315-0262 for international participants.

A replay of the webcast will be available on the Verisk investor website, http://investor.verisk.com, for 30 days and also through the conference call number 1-800-642-1687 for U.S./Canada participants or 706-645-9291 for international participants using Conference ID #70293505.

About Verisk Analytics

Verisk Analytics (NASDAQ:VRSK) is a leading provider of risk assessment solutions to professionals in insurance, healthcare, mortgage, government, and risk management. Using advanced technologies to collect and analyze billions of records, Verisk Analytics draws on vast industry expertise and unique proprietary data sets to provide predictive analytics and decision-support solutions in fraud prevention, actuarial science, insurance coverages, fire protection, catastrophe and weather risk, data management, and many other fields. In the United States and around the world, Verisk Analytics helps customers protect people, property, and financial assets. For more information, visit www.verisk.com.

Forward-Looking Statements

This release contains forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “target,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements.

Other factors that could materially affect actual results, levels of activity, performance, or achievements can be found in Verisk’s quarterly reports on Form 10-Q, annual reports on Form 10-K, and current reports on Form 8-K filed with the Securities and Exchange Commission. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement in this release reflects our current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise.

6

Notes Regarding the Use of Non-GAAP Financial Measures

The company has provided certain non-GAAP financial information as supplemental information regarding its operating results. These measures are not in accordance with, or an alternative for, GAAP and may be different from non-GAAP measures reported by other companies. The company believes that its presentation of non-GAAP measures, such as EBITDA and Adjusted EBITDA, adjusted net income, and adjusted EPS, provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. In addition, the company’s management uses these measures for reviewing the financial results of the company and for budgeting and planning purposes.

EBITDA and Adjusted EBITDA

The table below sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA based on our historical results:

Table 5

	Three Months Ended
	March 31,
						Change
	2010			2009		%
	(in thousands)
Net income	$	55,375		$	44,915		23.3	%
Depreciation and amortization of fixed and intangible assets		17,233			17,705		(2.7	)%
Investment income and realized (gains)/losses on securities, net		(64	)		355		(118.0	)%
Interest expense		8,466			8,154		3.8	%
Provision for income taxes		42,637			33,779		26.2	%
EBITDA	$	123,647		$	104,908		17.9	%
plus: ESOP allocation expense		—			2,633
plus: IPO-related costs		—			200
Adjusted EBITDA	$	123,647		$	107,741		14.8	%

EBITDA and Adjusted EBITDA are financial measures that management uses to evaluate the performance of our segments. The company defines “EBITDA” as net income before investment income, realized (gains)/losses on securities, interest expense, income taxes, depreciation, and amortization. The company defines “Adjusted EBITDA” as EBITDA before ESOP allocation expense, IPO-related costs, and other nonrecurring items.

7

Although EBITDA and adjusted EBITDA are frequently used by securities analysts, lenders and others in their evaluation of companies, EBITDA and adjusted EBITDA have limitations as analytical tools and should not be considered in isolation, or as a substitute for an analysis of our statement of cash flow reported under GAAP. Management uses EBITDA and Adjusted EBITDA in conjunction with traditional GAAP operating performance measures as part of its overall assessment of company performance. Some of these limitations are as follows:

• EBITDA and Adjusted EBITDA do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments.

• EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirement for, our working capital needs.

• Although depreciation and amortization are noncash charges, the assets being depreciated and amortized often will have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements.

• Other companies in our industry may calculate EBITDA and adjusted EBITDA differently than we do, limiting their usefulness as comparative measures.

Attached Financial Statements

Please refer to the full Form 10-Q filing for the complete financial statements and related notes.

8

VERISK ANALYTICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31, 2010 and December 31, 2009

	2010
	unaudited			2009
	(In thousands, except for share and per share data)
ASSETS
Current assets:
Cash and cash equivalents	$	130,992		$	71,527
Available-for-sale securities		5,546			5,445
Accounts receivable, net		132,896			89,436
Prepaid expenses		21,130			16,155
Deferred income taxes, net		4,405			4,405
Federal and foreign income taxes receivable		—			16,721
Other current assets		20,880			21,656
Total current assets		315,849			225,345
Noncurrent assets:
Fixed assets, net		88,272			89,165
Intangible assets, net		107,248			108,526
Goodwill		494,283			490,829
Deferred income taxes, net		63,948			66,257
State income taxes receivable		4,933			6,536
Other assets		11,146			10,295
Total assets	$	1,085,679		$	996,953
LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)
Current liabilities:
Accounts payable and accrued liabilities	$	78,001		$	101,401
Acquisition related liabilities		544			—
Short-term debt		4,723			66,660
Pension and postretirement benefits, current		5,284			5,284
Fees received in advance		214,295			125,520
Federal and foreign income taxes payable		16,216			—
State and local income taxes payable		6,069			1,414
Total current liabilities		325,132			300,279
Noncurrent liabilities:
Long-term debt		527,076			527,509
Pension benefits		99,327			102,046
Postretirement benefits		24,673			25,108
Other liabilities		81,219			76,960
Total liabilities		1,057,427			1,031,902
Commitments and contingencies
Stockholders’ equity/(deficit):
Verisk Class A common stock, $.001 par value; 1,200,000,000 shares authorized; 125,815,600 shares issued and outstanding as of March 31, 2010 and December 31, 2009		30			30
Verisk Class B (Series 1) common stock, $.001 par value; 400,000,000 shares authorized; 205,637,925 shares issued and 27,118,975 outstanding as of March 31, 2010 and December 31, 2009		50			50
Verisk Class B (Series 2) common stock, $.001 par value; 400,000,000 shares authorized; 205,637,925 shares issued and 27,118,975 outstanding as of March 31, 2010 and December 31, 2009		50			50
Unearned KSOP contributions		(1,241	)		(1,305	)
Additional paid-in capital		659,392			652,573
Treasury stock, at cost, 357,037,900 shares as of March 31, 2010 and December 31, 2009		(683,994	)		(683,994	)
Retained earnings		106,650			51,275
Accumulated other comprehensive loss		(52,685	)		(53,628	)
Total stockholders’ equity/(deficit)		28,252			(34,949	)
Total liabilities and stockholders’ equity/(deficit)	$	1,085,679		$	996,953

9

VERISK ANALYTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For The Three Months Ended March 31, 2010 and 2009

	2010			2009
	(In thousands, except for share and per
	share data)
Revenues	$	276,154		$	245,751
Expenses:
Cost of revenues (exclusive of items shown separately below)		114,993			107,523
Selling, general and administrative		37,514			33,320
Depreciation and amortization of fixed assets		9,929			9,195
Amortization of intangible assets		7,304			8,510
Total expenses		169,740			158,548
Operating income		106,414			87,203
Other income/(expense):
Investment income		32			43
Realized gains/(losses) on securities, net		32			(398	)
Interest expense		(8,466	)		(8,154	)
Total other expense, net		(8,402	)		(8,509	)
Income before income taxes		98,012			78,694
Provision for income taxes		(42,637	)		(33,779	)
Net income	$	55,375		$	44,915
Basic net income per share of Class A and Class B (1):	$	0.31		$	0.26
Diluted net income per share of Class A and Class B (1):	$	0.29		$	0.25
Weighted average shares outstanding:
Basic (1)		180,053,550			173,938,000
Diluted (1)		189,454,756			180,604,450

(1) All share and per share data has been adjusted to reflect a fifty-for-one stock split that occurred in October 2009.

10

VERISK ANALYTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For The Three Months Ended March 31, 2010 and 2009

	2010			2009
	(In thousands)
Cash flows from operating activities:
Net income	$	55,375		$	44,915
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets		9,929			9,195
Amortization of intangible assets		7,304			8,510
Amortization of debt issuance costs		395			—
Allowance for doubtful accounts		105			349
KSOP compensation expense		2,850			5,127
Stock-based compensation		3,886			2,005
Non-cash charges associated with performance based appreciation awards		566			610
Realized (gains)/losses on securities, net		(32	)		398
Deferred income taxes		973			766
Other operating		15			15
Loss on disposal of assets		11			228
Excess tax benefits from exercised stock options		(147	)		(171	)
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable		(42,699	)		(28,219	)
Prepaid expenses and other assets		(4,591	)		(3,637	)
Federal and foreign income taxes		32,937			27,785
State and local income taxes		6,405			(860	)
Accounts payable and accrued liabilities		(25,415	)		(24,060	)
Acquisition related liabilities		—			(300	)
Fees received in advance		88,273			88,692
Other liabilities		1,049			4,045
Net cash provided by operating activities		137,189			135,393
Cash flows from investing activities:
Acquisitions, net of cash acquired of $1,556 and $9,477		(6,227	)		(51,618	)
Proceeds from release of acquisition related escrows		213			—
Escrow funding associated with acquisitions		(1,500	)		(7,000	)
Purchases of available-for-sale securities		(252	)		(365	)
Proceeds from sales and maturities of available-for-sale securities		335			421
Purchases of fixed assets		(7,498	)		(8,359	)
Net cash used in investing activities		(14,929	)		(66,921	)
Cash flows from financing activities:
Redemption of ISO Class A common stock		—			(25,881	)
Repayment of short-term debt, net		(62,945	)		(30,682	)
Excess tax benefits from exercised stock options		147			171
Proceeds from stock options exercised		—			179
Net cash used in financing activities		(62,798	)		(56,213	)
Effect of exchange rate changes		3			(438	)
Increase in cash and cash equivalents		59,465			11,821
Cash and cash equivalents, beginning of period		71,527			33,185
Cash and cash equivalents, end of period	$	130,992		$	45,006
Supplemental disclosures:
Taxes paid	$	616		$	6,034
Interest paid	$	8,228		$	8,178
Non-cash investing and financing activities:
Deferred tax liability established on date of acquisition	$	(732	)	$	(8,744	)
Capital lease obligations	$	575		$	—
Capital expenditures included in accounts payable and accrued liabilities	$	815		$	3,225
Decrease in goodwill due to finalization of acquisition related liabilities	$	—		$	(4,300	)
Increase in goodwill due to acquisition related escrow distributions	$	489		$	—

11