Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

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

	Years ended December 31,
	2022		2021		2020
Current
Federal	$	35,365	$	15,623	$	38,878
State	19,788		8,399		17,070
	55,153		24,022		55,948
Deferred
Federal	(11,552)		3,878		(2,226)
State	(2,726)		3,793		2,622
	(14,278)		7,671		396
Total provision for income taxes	$	40,875	$	31,693	$	56,344

Schedule of Components of Deferred Tax Assets (Liabilities)

Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2022 and 2021, are shown below (in thousands). A valuation allowance of $8.3 million and $4.0 million as of December 31, 2022 and 2021, 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 $4.3 million in 2022.

	2022		2021
Deferred tax assets
State taxes	$	2,489	$	1,706
Accrued expenses	670		1,864
Allowance for bad debts	853		153
Investment in other entities	2,145		3,289
Net operating loss carryforward	9,383		8,841
Lease liability	6,470		4,208
Unrealized gain	8,971		3,007
Stock options	1,011		—
Other	2		—
Deferred tax assets before valuation allowance	31,994		23,068
Valuation allowance	(8,292)		(3,978)
Net deferred tax assets	23,702		19,090
Deferred tax liabilities
Property and equipment	(1,840)		(777)
Acquired intangible assets	(21,268)		(23,763)
Stock options	—		(1,641)
Right-of-use assets	(5,632)		(4,117)
Debt issuance cost	(725)		(988)
Undistributed Dividend	(8,454)		(17,852)
481(a) adjustment	—		(87)
Deferred tax liabilities	(37,919)		(49,225)
Net deferred liabilities	$	(14,217)	$	(30,135)

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,
	2022		2021		2020
Tax provision at U.S. federal statutory rates	21.0	%	21.0	%	21.0	%
State income taxes net of federal benefit	12.1		12.9		9.1
Non-deductible permanent items	0.9		4.0		0.3
Variable interest entities	(1.1)		(1.3)		(0.2)
Stock-based compensation	(0.3)		(1.0)		(0.3)
Change in valuation allowance	4.4		—		0.3
Investment basis adjustment	1.2		(2.1)		—
NOL adjustment	0.5		(0.1)		0.1
Undistributed dividend	7.2		8.0		2.0
Other	1.2		(0.3)		(0.8)
Effective income tax rate	47.1	%	41.1	%	31.5	%