Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

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

	Years ended December 31,
	2023		2022		2021
Current
Federal	$	35,434	$	35,365	$	15,623
State	8,999		19,788		8,399
	44,433		55,153		24,022
Deferred
Federal	(3,638)		(11,552)		3,878
State	(8,806)		(2,726)		3,793
	(12,444)		(14,278)		7,671
Total provision for income taxes	$	31,989	$	40,875	$	31,693

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:

	Years ended December 31,
	2023		2022		2021
Tax provision at U.S. federal statutory rates	21.0	%	21.0	%	21.0	%
State income taxes net of federal benefit	11.6		12.1		12.9
Non-deductible permanent items	2.5		0.9		4.0
Variable interest entities	(2.1)		(1.1)		(1.3)
Stock-based compensation	2.8		(0.3)		(1.0)
Change in valuation allowance	(2.6)		4.4		—
Gain on sale of investment	8.5		1.2		(2.1)
NOL adjustment	0.2		0.5		(0.1)
Undistributed dividend	(11.5)		7.2		8.0
Spin-off transaction	3.0		—		—
Other	2.1		1.2		(0.3)
Effective income tax rate	35.5	%	47.1	%	41.1	%

Schedule of Components of Deferred Tax Assets (Liabilities)

Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2023 and 2022, are shown below (in thousands).

	2023		2022
Deferred tax assets
State taxes	$	2,831	$	2,489
Accrued expenses	1,747		670
Allowance for bad debts	1,718		853
Investment in other entities	1,355		2,145
Net operating loss carryforward	7,551		9,383
Lease liability	10,897		6,470
Unrealized gain	1,284		8,971
Stock options	663		1,011
Other	—		2
Deferred tax assets before valuation allowance	28,046		31,994
Valuation allowance	(5,904)		(8,292)
Net deferred tax assets	22,142		23,702
Deferred tax liabilities
Property and equipment	(329)		(1,840)
Acquired intangible assets	(15,301)		(21,268)
Right-of-use assets	(9,936)		(5,632)
Debt issuance cost	(648)		(725)
Undistributed dividend	—		(8,454)
Deferred tax liabilities	(26,214)		(37,919)
Net deferred tax liabilities	$	(4,072)	$	(14,217)