[October 22, 2014] |
|
Tyler Technologies Reports Earnings for Third Quarter 2014
PLANO, Texas --(Business Wire)--
Tyler Technologies, Inc. (NYSE: TYL) today announced financial results
for the third quarter ended September 30, 2014.
Third Quarter Financial Highlights:
-
Total revenue was $128.7 million in the third quarter of 2014, up 20.2
percent from $107.0 million in the third quarter of 2013.
-
Recurring software revenue from maintenance and subscriptions was
$77.4 million for the quarter, an increase of 20.0 percent compared to
the third quarter of 2013, and comprised 60.2 percent of third quarter
2014 revenue.
-
Royalty revenue from Microsoft Dynamics® AX, which is
included in software licenses and royalties, was $906,000 compared to
$1.0 million for the third quarter of 2013.
-
Operating income for the quarter was $26.7 million, an increase of
49.8 percent from the third quarter of 2013.
-
Net income for the quarter was $17.0 million, or $0.48 per diluted
share, up 53.9 percent compared to $11.0 million, or $0.32 per diluted
share, for the third quarter of 2013.
-
Cash flow from operations for the quarter was $66.3 million, a 57.4
percent increase compared to $42.1 million for the third quarter of
2013.
-
Non-GAAP operating income for the quarter was $32.4 million, up 40.3
percent from $23.1 million for the third quarter of 2013.
-
Adjusted EBITDA for the quarter was $34.3 million, up 41.7 percent
compared to $24.2 million for the third quarter of 2013.
-
Non-GAAP net income for the quarter was $21.0 million, or $0.59 per
diluted share, up 42.8 percent compared to $14.7 million, or $0.42 per
diluted share, for the third quarter of 2013.
-
Total backlog was $674.0 million at September 30, 2014, up 24.6
percent from $541.0 million at September 30, 2013. Software-related
backlog (excluding appraisal services) was $634.3 million, an increase
of 22.6 percent compared to $517.6 million at September 30, 2013.
"Tyler achieved exceptional results for the third quarter, with our
second consecutive quarter of revenue growth greater than 20 percent and
non-GAAP net income growth greater than 40 percent," said John S. Marr
Jr., Tyler's president and chief executive officer. "All of our
software-related revenue lines delivered double-digit growth, including
26 percent growth in software license and royalty revenues and 49
percent growth in subscriptions. Our results for the quarter also
reflect a high degree of operating leverage, as our non-GAAP gross
margin expanded by 160 basis points and our non-GAAP operating margin
grew 350 basis points to 25.1 percent.
"Our record earnings have also generated record cash flow thus far in
2014. For the third quarter, Tyler's cash flow from operations of $66.3
million actually exceeded our full-year 2013 cash flow from operations.
We ended the quarter with cash of more than $157 million, and the
strength of our balance sheet positions us well to take advantage of
future growth opportunities.
"Tyler followed our record bookings in the second quarter of this year
with another very good quarter for new contract signings, which
illustrates our strong competitive position and resulting high win
rates. Excluding the eFileTexas contract signed in last year's third
quarter, our bookings rose nearly 5 percent for the quarter, and 22
percent for the trailing 12 months. New contract signings were solid
across product lines and in both our on-premises and cloud-based
offerings.
"We have a sharp focus on executing at a high level with respect to
sales, implementations and client support to continue to build on our
considerable strengths in the market. With the results achieved in the
first three quarters of 2014, combined with our continued positive
outlook for the fourth quarter, we have again revised upward our revenue
and earnings guidance," Mr. Marr concluded.
Guidance for 2014
As of October 22, 2014, Tyler Technologies is providing the following
full-year 2014 guidance:
-
Total revenues are expected to be in the range of $489 million to $494
million.
-
Diluted earnings per share are expected to be approximately $1.63 to
$1.69.
-
Non-GAAP diluted earnings per share are expected to be approximately
$2.06 to $2.12.
-
Pretax non-cash, share-based compensation expense is expected to be
approximately $15.0 million.
-
The effective tax rate is expected to be between approximately 37.0
percent and 39.0 percent.
-
Capital expenditures are expected to be between $10.5 million and
$11.0 million, and total depreciation and amortization expense is
expected to be between $14.5 million and $15.0 million, including
approximately $6.5 million of amortization of acquisition intangibles.
Conference Call
Tyler Technologies will hold a conference call on Thursday, October 23,
at 10:00 a.m. ET to discuss the company's results. The company is
offering participants the opportunity to register in advance for the
conference through the following link: http://dpregister.com/10053644.
Registered participants will receive an email with a calendar reminder
and a dial-in number and PIN that will allow them immediate access to
the call.
Participants who do not wish to pre-register for the call may dial in
using 877-270-2148 (U.S. callers) or 412-902-6510 (international
callers), and ask for the "Tyler Technologies" call. A replay will be
available two hours after completion of the call through October 30,
2014. To access the replay, please dial 877-344-7529 (U.S. callers) or
412-317-0088 (international callers) and reference passcode 10053644.
The live webcast and archived replay can also be accessed at www.tylertech.com.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) is a leading provider of end-to-end
information management solutions and services for local governments.
Tyler partners with clients to empower the public sector - cities,
counties, schools and other government entities - to become more
efficient, more accessible and more responsive to the needs of citizens.
Tyler's client base includes more than 11,000 local government offices
in all 50 states, Canada, the Caribbean, the United Kingdom and other
international locations. Forbes named Tyler one of "America's Best Small
Companies" eight times and the company has been included four times on
the Barron's 400 Index, a measure of the most promising companies in
America. More information about Plano-based Tyler Technologies can be
found at www.tylertech.com.
Non-GAAP Financial Measures
Tyler Technologies has provided in this press release financial measures
that have not been prepared in accordance with generally accepted
accounting principles (GAAP) and are therefore considered non-GAAP
financial measures. This information includes non-GAAP gross profit,
non-GAAP gross margin, non-GAAP operating income, non-GAAP operating
margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA
and adjusted EBITDA. We use these non-GAAP financial measures internally
in analyzing our financial results and believe they are useful to
investors, as a supplement to GAAP measures, in evaluating Tyler's
ongoing operational performance. Tyler believes the use of these
non-GAAP financial measures provides an additional tool for investors to
use in evaluating ongoing operating results and trends and in comparing
our financial results with other companies in our industry, many of
which present similar non-GAAP financial measures. Non-GAAP financial
measures discussed above exclude share-based compensation expense,
employer portion of payroll taxes on employee stock transactions, and
expenses associated with amortization of intangibles arising from
business combinations. We use these measures and believe they are useful
to investors because they provide additional insight in comparing
results from period to period.
Non-GAAP financial measures should be considered in addition to, and not
as a substitute for, or superior to, financial information prepared in
accordance with GAAP. The non-GAAP measures used by Tyler Technologies
may be different from non-GAAP measures used by other companies.
Investors are encouraged to review the reconciliation of these non-GAAP
measures to their most directly comparable GAAP financial measures,
which has been provided in the financial statement tables included below
in this press release.
Forward-looking Statements
This document contains "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 that are not historical in nature and
typically address future or anticipated events, trends, expectations or
beliefs with respect to our financial condition, results of operations
or business. Forward-looking statements often contain words such as
"believes," "expects," "anticipates," "foresees," "forecasts,"
"estimates," "plans," "intends," "continues," "may," "will," "should,"
"projects," "might," "could" or other similar words or phrases.
Similarly, statements that describe our business strategy, outlook,
objectives, plans, intentions or goals also are forward-looking
statements. We believe there is a reasonable basis for our
forward-looking statements, but they are inherently subject to risks and
uncertainties and actual results could differ materially from the
expectations and beliefs reflected in the forward-looking statements. We
presently consider the following to be among the important factors that
could cause actual results to differ materially from our expectations
and beliefs: (1) changes in the budgets or regulatory environments of
our customers, primarily local and state governments, that could
negatively impact information technology spending; (2) our ability to
protect client information from security breaches and provide
uninterrupted operations of data centers; (3) material portions of our
business require the Internet infrastructure to be adequately
maintained; (4) our ability to achieve our financial forecasts due to
various factors, including project delays by our customers, reductions
in transaction size, fewer transactions, delays in delivery of new
products or releases or a decline in our renewal rates for service
agreements; (5) general economic, political and market conditions; (6)
technological and market risks associated with the development of new
products or services or of new versions of existing or acquired products
or services; (7) our ability to achieve growth or operational synergies
through the integration of acquired businesses, while avoiding
unanticipated costs and disruptions to existing operations; (8)
competition in the industry in which we conduct business and the impact
of competition on pricing, customer retention and pressure for new
products or services; (9) the ability to attract and retain qualified
personnel and dealing with the loss or retirement of key members of
management or other key personnel; and (10) costs of compliance and any
failure to comply with government and stock exchange regulations. A
detailed discussion of these factors and other risks that affect our
business are described in our filings with the Securities and Exchange
Commission, including the detailed "Risk Factors" contained in our most
recent annual report on Form 10-K. We expressly disclaim any obligation
to publicly update or revise our forward-looking statements.
TYLER TECHNOLOGIES, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
(Amounts in thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software licenses and royalties
|
|
|
$
|
13,226
|
|
|
$
|
10,495
|
|
|
|
$
|
36,541
|
|
|
$
|
29,415
|
Subscriptions
|
|
|
|
22,694
|
|
|
|
15,214
|
|
|
|
|
64,135
|
|
|
|
42,550
|
Software services
|
|
|
|
31,159
|
|
|
|
24,860
|
|
|
|
|
85,594
|
|
|
|
69,406
|
Maintenance
|
|
|
|
54,713
|
|
|
|
49,291
|
|
|
|
|
156,904
|
|
|
|
141,980
|
Appraisal services
|
|
|
|
5,802
|
|
|
|
5,207
|
|
|
|
|
16,097
|
|
|
|
15,854
|
Hardware and other
|
|
|
|
1,070
|
|
|
|
1,954
|
|
|
|
|
6,390
|
|
|
|
6,703
|
Total revenues
|
|
|
|
128,664
|
|
|
|
107,021
|
|
|
|
|
365,661
|
|
|
|
305,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software licenses and royalties
|
|
|
|
565
|
|
|
|
583
|
|
|
|
|
1,439
|
|
|
|
1,701
|
Acquired software
|
|
|
|
448
|
|
|
|
513
|
|
|
|
|
1,373
|
|
|
|
1,585
|
Software services, maintenance and subscriptions
|
|
|
|
61,428
|
|
|
|
51,786
|
|
|
|
|
174,701
|
|
|
|
147,001
|
Appraisal services
|
|
|
|
3,764
|
|
|
|
3,360
|
|
|
|
|
10,740
|
|
|
|
10,577
|
Hardware and other
|
|
|
|
667
|
|
|
|
1,230
|
|
|
|
|
4,528
|
|
|
|
4,608
|
Total cost of revenues
|
|
|
|
66,872
|
|
|
|
57,472
|
|
|
|
|
192,781
|
|
|
|
165,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
61,792
|
|
|
|
49,549
|
|
|
|
|
172,880
|
|
|
|
140,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
27,344
|
|
|
|
24,581
|
|
|
|
|
80,130
|
|
|
|
72,198
|
Research and development expense
|
|
|
|
6,567
|
|
|
|
5,982
|
|
|
|
|
19,128
|
|
|
|
17,174
|
Amortization of customer and trade name intangibles
|
|
|
|
1,136
|
|
|
|
1,129
|
|
|
|
|
3,393
|
|
|
|
3,388
|
Operating income
|
|
|
|
26,745
|
|
|
|
17,857
|
|
|
|
|
70,229
|
|
|
|
47,676
|
Other expense, net
|
|
|
|
47
|
|
|
|
285
|
|
|
|
|
522
|
|
|
|
919
|
Income before income taxes
|
|
|
|
26,698
|
|
|
|
17,572
|
|
|
|
|
69,707
|
|
|
|
46,757
|
Income tax provision
|
|
|
|
9,698
|
|
|
|
6,523
|
|
|
|
|
26,084
|
|
|
|
18,168
|
Net income
|
|
|
$
|
17,000
|
|
|
$
|
11,049
|
|
|
|
$
|
43,623
|
|
|
$
|
28,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.52
|
|
|
$
|
0.34
|
|
|
|
$
|
1.32
|
|
|
$
|
0.90
|
Diluted
|
|
|
$
|
0.48
|
|
|
$
|
0.32
|
|
|
|
$
|
1.23
|
|
|
$
|
0.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
32,935
|
|
|
|
32,037
|
|
|
|
|
32,947
|
|
|
|
31,825
|
Diluted
|
|
|
|
35,284
|
|
|
|
34,764
|
|
|
|
|
35,339
|
|
|
|
34,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYLER TECHNOLOGIES, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
(Amounts in thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
Reconciliation of non-GAAP gross profit and margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
|
$
|
61,792
|
|
|
|
$
|
49,549
|
|
|
|
|
$
|
172,880
|
|
|
|
$
|
140,436
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Share-based compensation expense included in cost of revenues
|
|
|
|
569
|
|
|
|
|
408
|
|
|
|
|
|
1,595
|
|
|
|
|
1,087
|
|
Add: Amortization of acquired software
|
|
|
|
448
|
|
|
|
|
513
|
|
|
|
|
|
1,373
|
|
|
|
|
1,585
|
|
Non-GAAP gross profit
|
|
|
$
|
62,809
|
|
|
|
$
|
50,470
|
|
|
|
|
$
|
175,848
|
|
|
|
$
|
143,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross margin
|
|
|
|
48.8
|
%
|
|
|
|
47.2
|
%
|
|
|
|
|
48.1
|
%
|
|
|
|
46.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of non-GAAP operating income and margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
|
|
|
$
|
26,745
|
|
|
|
$
|
17,857
|
|
|
|
|
$
|
70,229
|
|
|
|
$
|
47,676
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Share-based compensation expense
|
|
|
|
3,885
|
|
|
|
|
3,061
|
|
|
|
|
|
10,887
|
|
|
|
|
8,539
|
|
Add: Employer portion of payroll tax related to employee stock
transactions
|
|
|
|
144
|
|
|
|
|
510
|
|
|
|
|
|
168
|
|
|
|
|
510
|
|
Add: Amortization of acquired software
|
|
|
|
448
|
|
|
|
|
513
|
|
|
|
|
|
1,373
|
|
|
|
|
1,585
|
|
Add: Amortization of customer and trade name intangibles
|
|
|
|
1,136
|
|
|
|
|
1,129
|
|
|
|
|
|
3,393
|
|
|
|
|
3,388
|
|
Non-GAAP adjustments subtotal
|
|
|
$
|
5,613
|
|
|
|
$
|
5,213
|
|
|
|
|
$
|
15,821
|
|
|
|
$
|
14,022
|
|
Non-GAAP operating income
|
|
|
$
|
32,358
|
|
|
|
$
|
23,070
|
|
|
|
|
$
|
86,050
|
|
|
|
$
|
61,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating margin
|
|
|
|
25.1
|
%
|
|
|
|
21.6
|
%
|
|
|
|
|
23.5
|
%
|
|
|
|
20.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of non-GAAP net income and earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
$
|
17,000
|
|
|
|
$
|
11,049
|
|
|
|
|
$
|
43,623
|
|
|
|
$
|
28,589
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Total non-GAAP adjustments to operating income
|
|
|
|
5,613
|
|
|
|
|
5,213
|
|
|
|
|
|
15,821
|
|
|
|
|
14,022
|
|
Less: Tax impact related to non-GAAP adjustments
|
|
|
|
(1,661
|
)
|
|
|
|
(1,590
|
)
|
|
|
|
|
(4,686
|
)
|
|
|
|
(4,244
|
)
|
Non-GAAP net income
|
|
|
$
|
20,952
|
|
|
|
$
|
14,672
|
|
|
|
|
$
|
54,758
|
|
|
|
$
|
38,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per diluted share
|
|
|
$
|
0.59
|
|
|
|
$
|
0.42
|
|
|
|
|
$
|
1.55
|
|
|
|
$
|
1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detail of share-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of software services, maintenance and subscriptions
|
|
|
$
|
569
|
|
|
|
$
|
408
|
|
|
|
|
$
|
1,595
|
|
|
|
$
|
1,087
|
|
Selling, general and administrative expenses
|
|
|
|
3,316
|
|
|
|
|
2,653
|
|
|
|
|
|
9,292
|
|
|
|
|
7,452
|
|
Total share-based compensation expense
|
|
|
$
|
3,885
|
|
|
|
$
|
3,061
|
|
|
|
|
$
|
10,887
|
|
|
|
$
|
8,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
$
|
17,000
|
|
|
|
$
|
11,049
|
|
|
|
|
$
|
43,623
|
|
|
|
$
|
28,589
|
|
Amortization of customer and trade name intangibles
|
|
|
|
1,136
|
|
|
|
|
1,129
|
|
|
|
|
|
3,393
|
|
|
|
|
3,388
|
|
Depreciation and other amortization included in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
cost of revenues, SG&A and other expenses
|
|
|
|
2,519
|
|
|
|
|
2,283
|
|
|
|
|
|
7,543
|
|
|
|
|
6,705
|
|
Interest expense included in other expense, net
|
|
|
|
75
|
|
|
|
|
162
|
|
|
|
|
|
362
|
|
|
|
|
536
|
|
Income tax provision
|
|
|
|
9,698
|
|
|
|
|
6,523
|
|
|
|
|
|
26,084
|
|
|
|
|
18,168
|
|
EBITDA
|
|
|
$
|
30,428
|
|
|
|
$
|
21,146
|
|
|
|
|
$
|
81,005
|
|
|
|
$
|
57,386
|
|
Share-based compensation expense
|
|
|
|
3,885
|
|
|
|
|
3,061
|
|
|
|
|
|
10,887
|
|
|
|
|
8,539
|
|
Adjusted EBITDA
|
|
|
$
|
34,313
|
|
|
|
$
|
24,207
|
|
|
|
|
$
|
91,892
|
|
|
|
$
|
65,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYLER TECHNOLOGIES, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
157,431
|
|
|
$
|
78,876
|
Accounts receivable, net
|
|
|
|
111,803
|
|
|
|
106,570
|
Other current assets
|
|
|
|
16,007
|
|
|
|
24,030
|
Deferred income taxes
|
|
|
|
7,759
|
|
|
|
7,759
|
Total current assets
|
|
|
|
293,000
|
|
|
|
217,235
|
|
|
|
|
|
|
|
Accounts receivable, long-term portion
|
|
|
|
1,454
|
|
|
|
588
|
Property and equipment, net
|
|
|
|
66,694
|
|
|
|
64,844
|
Non-current investments available-for-sale
|
|
|
|
-
|
|
|
|
1,288
|
|
|
|
|
|
|
|
Other assets:
|
|
|
|
|
|
|
Goodwill and other intangibles, net
|
|
|
|
160,376
|
|
|
|
159,997
|
Other
|
|
|
|
739
|
|
|
|
536
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
522,263
|
|
|
$
|
444,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
$
|
35,517
|
|
|
$
|
35,372
|
Deferred revenue
|
|
|
|
185,844
|
|
|
|
156,738
|
Total current liabilities
|
|
|
|
221,361
|
|
|
|
192,110
|
|
|
|
|
|
|
|
Deferred income taxes
|
|
|
|
4,911
|
|
|
|
6,059
|
Shareholders' equity
|
|
|
|
295,991
|
|
|
|
246,319
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
522,263
|
|
|
$
|
444,488
|
|
|
|
|
|
|
|
|
|
|
TYLER TECHNOLOGIES, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
17,000
|
|
|
|
$
|
11,049
|
|
|
|
|
$
|
43,623
|
|
|
|
$
|
28,589
|
|
Adjustments to reconcile net income to cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
provided by operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
3,655
|
|
|
|
|
3,412
|
|
|
|
|
|
10,936
|
|
|
|
|
10,093
|
|
Share-based compensation expense
|
|
|
|
3,885
|
|
|
|
|
3,061
|
|
|
|
|
|
10,887
|
|
|
|
|
8,539
|
|
Excess tax benefit from exercise of share-based arrangements
|
|
|
|
(3,511
|
)
|
|
|
|
(7,539
|
)
|
|
|
|
|
(6,717
|
)
|
|
|
|
(13,200
|
)
|
Changes in operating assets and liabilities, exclusive of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
effects of acquired companies
|
|
|
|
45,274
|
|
|
|
|
32,132
|
|
|
|
|
|
36,402
|
|
|
|
|
24,680
|
|
Net cash provided by operating activities
|
|
|
|
66,303
|
|
|
|
|
42,115
|
|
|
|
|
|
95,131
|
|
|
|
|
58,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sales of investments
|
|
|
|
800
|
|
|
|
|
25
|
|
|
|
|
|
808
|
|
|
|
|
50
|
|
Cost of acquisitions, net of cash acquired
|
|
|
|
(3,242
|
)
|
|
|
|
-
|
|
|
|
|
|
(3,242
|
)
|
|
|
|
(181
|
)
|
Additions to property and equipment
|
|
|
|
(1,560
|
)
|
|
|
|
(6,423
|
)
|
|
|
|
|
(8,037
|
)
|
|
|
|
(20,262
|
)
|
(Increase) decrease in other
|
|
|
|
(116
|
)
|
|
|
|
(24
|
)
|
|
|
|
|
219
|
|
|
|
|
271
|
|
Net cash used by investing activities
|
|
|
|
(4,118
|
)
|
|
|
|
(6,422
|
)
|
|
|
|
|
(10,252
|
)
|
|
|
|
(20,122
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of treasury shares
|
|
|
|
(2
|
)
|
|
|
|
-
|
|
|
|
|
|
(22,817
|
)
|
|
|
|
-
|
|
Contributions from employee stock purchase plan
|
|
|
|
1,023
|
|
|
|
|
901
|
|
|
|
|
|
3,037
|
|
|
|
|
2,535
|
|
Proceeds from exercise of stock options
|
|
|
|
2,622
|
|
|
|
|
4,920
|
|
|
|
|
|
6,739
|
|
|
|
|
9,401
|
|
Decrease in net borrowings on revolving line of credit
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(18,000
|
)
|
Excess tax benefit from exercises of share-based arrangements
|
|
|
|
3,511
|
|
|
|
|
7,539
|
|
|
|
|
|
6,717
|
|
|
|
|
13,200
|
|
Net cash provided (used) by financing activities
|
|
|
|
7,154
|
|
|
|
|
13,360
|
|
|
|
|
|
(6,324
|
)
|
|
|
|
7,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
69,339
|
|
|
|
|
49,053
|
|
|
|
|
|
78,555
|
|
|
|
|
45,715
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
88,092
|
|
|
|
|
3,068
|
|
|
|
|
|
78,876
|
|
|
|
|
6,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
157,431
|
|
|
|
$
|
52,121
|
|
|
|
|
$
|
157,431
|
|
|
|
$
|
52,121
|
|
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