QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of |
(I.R.S. Employer | |
Incorporation or Organization) |
Identification No.) | |
(Address of Principal Executive Offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
Emerging growth company |
Page |
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39 |
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42 |
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42 |
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42 |
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43 |
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44 |
September 30, 2021 (Unaudited) |
December 31, 2020 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ | $ | ||||||
Commissions receivable, net |
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Prepaid expenses |
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Marketable debt securities, available-for-sale |
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Advances and loans, net |
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Other assets |
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Total current assets |
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Property and equipment, net |
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Operating lease right-of-use |
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Marketable debt securities, available-for-sale |
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Assets held in rabbi trust |
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Deferred tax assets, net |
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Goodwill and other intangible assets, net |
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Advances and loans, net |
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Other assets |
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Total assets |
$ | $ | ||||||
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Accounts payable and other liabilities |
$ | $ | ||||||
Deferred compensation and commissions |
||||||||
Income tax payable |
||||||||
Operating lease liabilities |
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Accrued bonuses and other employee related expenses |
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Total current liabilities |
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Deferred compensation and commissions |
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Operating lease liabilities |
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Other liabilities |
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Total liabilities |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, $ |
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Authorized shares – |
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Common stock, $ |
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Authorized shares – |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive income |
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ | $ | ||||||
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Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
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Revenues: |
||||||||||||||||
Real estate brokerage commissions |
$ | $ | $ |
$ |
||||||||||||
Financing fees |
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Other revenues |
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Total revenues |
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Operating expenses: |
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Cost of services |
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Selling, general and administrative |
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Depreciation and amortization |
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Total operating expenses |
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Operating income |
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Other income (expense), net |
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Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Income before provision for income taxes |
||||||||||||||||
Provision for income taxes |
||||||||||||||||
Net income |
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Other comprehensive (loss) income: |
||||||||||||||||
Marketable debt securities, available-for-sale: |
||||||||||||||||
Change in net unrealized gains |
( |
) | ( |
) | ( |
) | ||||||||||
Less: reclassification adjustment for net losses included in other income (expense), net |
||||||||||||||||
Net change, net of tax of $( |
( |
) | ( |
) | ( |
) | ||||||||||
Foreign currency translation gain (loss), net of tax of $ and 2020, respectively |
( |
) | ( |
) | ||||||||||||
Total other comprehensive (loss) income |
( |
) | ( |
) | ( |
) | ||||||||||
Comprehensive income |
$ | $ | $ | $ | ||||||||||||
Earnings per share: |
||||||||||||||||
Basic |
$ | $ | $ | $ | ||||||||||||
Diluted |
$ | $ | $ | $ | ||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
Three Months Ended September 30, 2021 |
||||||||||||||||||||||||||||||||||||
Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Stock Notes Receivable From Employees |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||||||
Balance at June 30, 2021 |
$ | $ | $ |
$ | $ | $ | $ | |||||||||||||||||||||||||||||
Net and comprehensive income (loss) |
— | — | ( |
) | ||||||||||||||||||||||||||||||||
Stock-based award activity |
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Stock-based compensation |
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Issuance of common stock for settlement of deferred stock units |
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Issuance of common stock for vesting of restricted stock units |
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Shares withheld related to net share settlement of stock-based awards |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
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Balance as of September 30, 2021 |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
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Three Months Ended September 30, 2020 |
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Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Stock Notes Receivable From Employees |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||||||
Balance at June 30, 2020 |
$ | |
$ | $ |
$ | |
$ | $ | $ | |||||||||||||||||||||||||||
Net and comprehensive income (loss) |
— | — | ( |
) | ||||||||||||||||||||||||||||||||
Stock-based award activity |
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Stock-based compensation |
||||||||||||||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
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Shares withheld related to net share settlement of stock-based awards |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
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Balance as of September 30, 2020 |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
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Nine Months Ended September 30, 2021 |
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Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Stock Notes Receivable From Employees |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||||||
Balance at December 31, 2020 |
$ | $ | $ |
$ | $ | $ | $ | |||||||||||||||||||||||||||||
Net and comprehensive income (loss) |
— | — | ( |
) | ||||||||||||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||||||
Shares issued pursuant to employee stock purchase plan |
||||||||||||||||||||||||||||||||||||
Issuance of common stock for settlement of deferred stock units |
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Issuance of common stock for vesting of restricted stock units |
||||||||||||||||||||||||||||||||||||
Issuance of common stock for unvested restricted stock awards |
||||||||||||||||||||||||||||||||||||
Issuance of common stock for stock settled deferred consideration |
||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
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|||||||||||||||||||
Balance as of September 30, 2021 |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
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Nine Months Ended September 30, 2020 |
||||||||||||||||||||||||||||||||||||
Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Stock Notes Receivable From Employees |
Retained Earnings |
Accumulated Other Comprehensive Income |
Total |
||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||||||
Balance at December 31, 2019 |
$ | |
$ | $ |
$ | ( |
) |
$ | $ | $ | ||||||||||||||||||||||||||
Cumulative effect of a change in accounting principle, net of tax |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
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Balance at January 1, 2020, as adjusted |
( |
) | ||||||||||||||||||||||||||||||||||
Net and comprehensive income |
— | — | ||||||||||||||||||||||||||||||||||
Stock-based award activity |
||||||||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||||||
Shares issued pursuant to employee stock purchase plan |
||||||||||||||||||||||||||||||||||||
Issuance of common stock for vesting of restricted stock units |
||||||||||||||||||||||||||||||||||||
Issuance of common stock for unvested restricted stock awards |
||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock-based awards |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Reduction of stock notes receivable from employees |
— | — | ||||||||||||||||||||||||||||||||||
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Balance as of September 30, 2020 |
$ | $ | $ | $ | |
$ | $ | $ | ||||||||||||||||||||||||||||
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Nine Months Ended September 30, |
||||||||
2021 | 2020 | |||||||
Cash flows from operating activities |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
||||||||
Depreciation and amortization |
||||||||
Amortization of right-of-use |
||||||||
Credit loss recovery |
||||||||
Stock-based compensation |
||||||||
Deferred taxes, net |
( |
) | ||||||
Unrealized foreign exchange (gains) losses |
( |
) | ||||||
Net realized gains on marketable debt securities, available-for-sale |
( |
) | ( |
) | ||||
Other non-cash items |
||||||||
Changes in operating assets and liabilities: |
||||||||
Commissions receivable |
( |
) | ( |
) | ||||
Prepaid expenses |
||||||||
Advances and loans |
( |
) | ( |
) | ||||
Other assets |
( |
) | ( |
) | ||||
Accounts payable and other liabilities |
( |
) | ||||||
Income tax receivable/payable |
( |
) | ||||||
Accrued bonuses and other employee related expenses |
( |
) | ||||||
Deferred compensation and commissions |
( |
) | ( |
) | ||||
Operating lease liabilities |
( |
) | ( |
) | ||||
Other liabilities |
( |
) | ||||||
|
|
|
|
|||||
Net cash provided by (used in) operating activities |
( |
) | ||||||
|
|
|
|
|||||
Cash flows from investing activities |
||||||||
Acquisition of businesses, net of cash received |
( |
) | ||||||
Purchases of marketable debt securities, available-for-sale |
( |
) | ( |
) | ||||
Proceeds from sales and maturities of marketable debt securities, available-for-sale |
||||||||
Purchases of securities, held-to-maturity |
( |
) | ||||||
Issuances of employee notes receivable |
( |
) | ( |
) | ||||
Payments received on employee notes receivable |
||||||||
Purchase of property and equipment |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Cash flows from financing activities |
||||||||
Taxes paid related to net share settlement of stock-based awards |
( |
) | ( |
) | ||||
Proceeds from issuance of shares pursuant to employee stock purchase plan |
||||||||
Principal payments on notes payable to former stockholders |
( |
) | ||||||
Principal payments on stock appreciation rights liability |
( |
) | ( |
) | ||||
Principal payments on contingent and deferred consideration |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash used in financing activities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Effect of currency exchange rate changes on cash and cash equivalents |
( |
) | ||||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents at beginning of period |
||||||||
|
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|
|||||
Cash and cash equivalents at end of period |
$ | $ | ||||||
|
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|
|||||
Supplemental disclosures of cash flow information |
||||||||
Interest paid during the period |
$ | $ | ||||||
|
|
|
|
|||||
Income taxes paid, net |
$ | $ | ||||||
|
|
|
|
1. |
Description of Business, Basis of Presentation and Recent Accounting Pronouncements |
2. |
Property and Equipment, Net |
September 30, 2021 |
December 31, 2020 |
|||||||
Computer software and hardware equipment |
$ | $ | ||||||
Furniture, fixtures and equipment |
||||||||
Less: accumulated depreciation and amortization |
( |
) | ( |
) | ||||
$ | $ | |||||||
3. |
Operating Leases |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Operating lease cost: |
||||||||||||||||
Lease cost (1) |
$ |
$ |
$ |
$ |
||||||||||||
Variable lease cost (2) |
||||||||||||||||
Sublease income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
$ | $ | $ | $ | |||||||||||||
(1) |
Includes short-term lease cost and ROU asset amortization. |
(2) |
Primarily relates to common area maintenance, property taxes, insurance, utilities and parking. |
September 30, 2021 |
||||
Remainder of 2021 |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
Total future minimum lease payments |
||||
Less imputed interest |
( |
) | ||
Present value of operating lease liabilities |
$ | |||
Nine Months Ended September 30, |
||||||||
2021 |
2020 |
|||||||
Operating cash flow information: |
||||||||
Cash paid for amounts included in the measurement of operating lease liabilities |
$ |
$ |
||||||
Noncash activity: |
||||||||
ROU assets obtained in exchange for operating lease liabilities |
$ | $ | ||||||
Tenant improvements owned by lessor related to ROU assets (1) |
$ | $ |
(1) |
Reclassification from other assets current. |
September 30, 2021 |
December 31, 2020 |
|||||||
Weighted average remaining operating lease term |
||||||||
Weighted average discount rate |
% | % |
4. |
Investments in Marketable Debt Securities, Available for Sale |
September 30, 2021 |
||||||||||||||||||||
Amortized Cost |
Allowance for Credit Losses |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
||||||||||||||||
Short-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ | $ | $ | $ | $ | |||||||||||||||
Corporate debt |
||||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||
Long-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||
U.S. government sponsored entities |
( |
) | ||||||||||||||||||
Corporate debt |
( |
) | ||||||||||||||||||
Asset-backed securities (“ABS”) and other |
( |
) | ||||||||||||||||||
$ |
$ | $ | $ | ( |
) | $ | ||||||||||||||
December 31, 2020 |
||||||||||||||||||||
Amortized Cost |
Allowance for Credit Losses |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
||||||||||||||||
Short-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ |
$ | $ | $ | ( |
) | $ | |||||||||||||
U.S. government sponsored entities |
||||||||||||||||||||
Corporate debt |
( |
) | ||||||||||||||||||
$ | $ | $ | $ | ( |
) | $ | ||||||||||||||
Long-term investments: |
||||||||||||||||||||
U.S. treasuries |
$ | $ | $ | $ | $ | |||||||||||||||
U.S. government sponsored entities |
||||||||||||||||||||
Corporate debt |
( |
) | ||||||||||||||||||
ABS and other |
( |
) | ||||||||||||||||||
$ | $ | $ | $ | ( |
) | $ | ||||||||||||||
September 30, 2021 | ||||||||||||||||||||||||
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||
Fair Value |
Gross Unrealized Losses |
Fair Value |
Gross Unrealized Losses |
Fair Value |
Gross Unrealized Losses |
|||||||||||||||||||
U.S. treasuries |
$ |
$ | ( |
) | $ | $ | $ | $ | ( |
) | ||||||||||||||
U.S. government sponsored entities |
( |
) | ( |
) | ||||||||||||||||||||
Corporate debt |
( |
) | ( |
) | ||||||||||||||||||||
ABS and other |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | |||||||||||||
December 31, 2020 |
||||||||||||||||||||||||
Less than 12 months |
12 months or greater |
Total |
||||||||||||||||||||||
Fair Value |
Gross Unrealized Losses |
Fair Value |
Gross Unrealized Losses |
Fair Value |
Gross Unrealized Losses |
|||||||||||||||||||
U.S. treasuries |
$ | $ | ( |
) | $ | $ | $ | $ | ( |
) | ||||||||||||||
Corporate debt |
( |
) | ( |
) | ||||||||||||||||||||
ABS and other |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | |||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Gross realized gains (1) |
$ | $ | $ | $ | ||||||||||||
Gross realized losses (1) |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
(1) |
Recorded in other income (expense), net in the condensed consolidated statements of net and comprehensive income. The cost basis of securities sold were determined based on the specific identification method. |
September 30, 2021 |
December 31, 2020 |
|||||||||||||||
Amortized Cost |
Fair Value |
Amortized Cost |
Fair Value |
|||||||||||||
Due in one year or less |
$ | $ | $ | $ | ||||||||||||
Due after one year through five years |
||||||||||||||||
Due after five years through ten years |
||||||||||||||||
Due after ten years |
||||||||||||||||
$ | $ | $ | $ | |||||||||||||
Weighted average contractual maturity |
5. |
Acquisitions, Goodwill and Other Intangible Assets |
September 30, 2021 |
December 31, 2020 |
|||||||||||||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Net Book Value |
Gross Carrying Amount |
Accumulated Amortization |
Net Book Value |
|||||||||||||||||||
Goodwill and intangible assets: |
||||||||||||||||||||||||
Goodwill |
$ | $ | — | $ | $ | $ | — | $ | ||||||||||||||||
Intangible assets (1) |
( |
) | ( |
) | ||||||||||||||||||||
$ | $ | ( |
) | $ | $ | $ | ( |
) | $ | |||||||||||||||
(1) |
Total weighted average amortization period was |
Nine Months Ended September 30, |
||||||||
2021 |
2020 |
|||||||
Beginning balance |
$ | $ | ||||||
Additions from acquisitions (1) |
||||||||
Impairment losses |
||||||||
Ending balance |
$ | $ | ||||||
(1) |
The 2021 addition represents a measurement period adjustment. |
September 30, 2021 |
||||
Remainder of 2021 |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
$ | ||||
6. |
Selected Balance Sheet Data |
Advances and Loans |
Commissions Receivable |
Total |
||||||||||
Beginning balance as of January 1, 2021 |
$ | $ | $ |
|||||||||
Credit loss (recovery) |
( |
) | ||||||||||
Write-offs |
( |
) | ( |
) | ||||||||
Ending balance as of September 30, 2021 |
$ | $ | $ | |||||||||
Advances and Loans |
Commissions Receivable |
Total | ||||||||||
Beginning balance as of January 1, 2020 |
$ | $ | (1) |
$ | ||||||||
Credit loss expense |
||||||||||||
Write-offs |
( |
) | ( |
) | ||||||||
Ending balance as of September 30, 2020 |
$ | $ | $ | |||||||||
Current |
Non-Current |
|||||||||||||||
September 30, 2021 |
December 31, 2020 |
September 30, 2021 |
December 31, 2020 |
|||||||||||||
Mortgage servicing rights (“MSRs”), net of amortization |
$ | $ | $ | $ | ||||||||||||
Security deposits |
||||||||||||||||
Employee notes receivable (1) |
||||||||||||||||
Securities, held-to-maturity |
||||||||||||||||
Customer trust accounts and other |
||||||||||||||||
$ | $ | $ | $ | |||||||||||||
(1) |
Reduction of accrued bonuses and other employee related expenses in settlement of employee notes receivable were $ |
Nine Months Ended September 30, |
||||||||
2021 |
2020 |
|||||||
Beginning balance |
$ | $ | ||||||
Additions |
||||||||
Amortization |
( |
) | ( |
) | ||||
Ending balance |
$ | $ | ||||||
Current | Non-Current |
|||||||||||||||
September 30, 2021 |
December 31, 2020 |
September 30, 2021 |
December 31, 2020 |
|||||||||||||
Stock appreciation rights (“SARs”) liability (1) |
$ | $ | $ | $ | ||||||||||||
Commissions payable to investment sales and financing professionals |
||||||||||||||||
Deferred compensation liability (1) |
||||||||||||||||
Other |
||||||||||||||||
$ | $ | $ | $ | |||||||||||||
(1) |
The SARs and deferred compensation liability become subject to payout as a result of a participant no longer being considered a service provider. As a result of the retirement of certain participants, estimated amounts to be paid to the participants within the next twelve months have been classified as current. |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
(Decrease) increase in the carrying value of the assets held in the rabbi trust (1) |
$ | ( |
) | $ | $ | $ | ||||||||||
(Decrease) increase in the net carrying value of the deferred compensation obligation (2) |
$ | ( |
) | $ | $ | $ | ||||||||||
(1) |
Recorded in other income (expense), net in the condensed consolidated statements of net and comprehensive income. |
(2) |
Recorded in selling, general and administrative expense in the condensed consolidated statements of net and comprehensive income. |
Non-Current |
||||||||
September 30, 2021 |
December 31, 2020 |
|||||||
Deferred consideration (1) (2) |
$ | $ | ||||||
Contingent consideration (1) (2) |
||||||||
Other |
||||||||
$ | $ | |||||||
(1) |
The current portions of deferred consideration in the amounts of $ |
(2) |
Includes a measurement period adjustment and a reduction in deferred consideration settled in stock made during the nine months ended September 30, 2021, which represents a noncash investing activity. See Note 5 – “Acquisitions, Goodwill and Other Intangible Assets” for additional information. |
7. |
Related-Party Transactions |
8. |
Fair Value Measurements |
• | Level 1: |
• | Level 2: |
• | Level 3: |
September 30, 2021 |
December 31, 2020 |
|||||||||||||||||||||||||||||||
Fair Value |
Level 1 |
Level 2 |
Level 3 |
Fair Value |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||
Assets held in rabbi trust |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Cash equivalents (1) : |
||||||||||||||||||||||||||||||||
Commercial paper |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Money market funds |
||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
Marketable debt securities, available-for-sale: |
||||||||||||||||||||||||||||||||
Short-term investments: |
||||||||||||||||||||||||||||||||
U.S. treasuries |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
U.S. government sponsored entities |
||||||||||||||||||||||||||||||||
Corporate debt |
||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
Long-term investments: |
||||||||||||||||||||||||||||||||
U.S. treasuries |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
U.S. government sponsored entities |
||||||||||||||||||||||||||||||||
Corporate debt |
||||||||||||||||||||||||||||||||
ABS and other |
||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||
Contingent consideration |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Deferred consideration |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Deferred compensation liability |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
(1) |
Included in cash and cash equivalents on the accompanying condensed consolidated balance sheets. |
Nine Months Ended September 30, |
||||||||
2021 |
2020 |
|||||||
Beginning balance |
$ |
$ |
||||||
Contingent consideration in connection with acquisitions (1) |
( |
) | ||||||
Change in fair value of contingent consideration |
||||||||
Payments of contingent consideration |
( |
) | ( |
) | ||||
Ending balance |
$ | $ | ||||||
(1) |
Contingent consideration in connection with acquisitions represents a noncash investing activity. Nine months ended September 30, 2021 relates to a measurement period adjustment. See Note 5 – “Acquisitions, Goodwill and Other Intangible Assets” for additional information. |
Fair Value at September 30, 2021 |
Valuation Technique | Unobservable inputs | Range (Weighted Average) (1) |
|||||||||||||
Contingent consideration |
$ | Discounted cash flow | Expected life of cash flows | |||||||||||||
Discount rate | ||||||||||||||||
Probability of achievement | ||||||||||||||||
Fair Value at December 31, 2020 |
Valuation Technique | Unobservable inputs | Range (Weighted Average) (1) |
|||||||||||||
Contingent consideration |
$ | Discounted cash flow | Expected life of cash flows | |||||||||||||
Discount rate | ||||||||||||||||
Probability of achievement |
(1) |
Unobservable inputs were weighted by the relative fair value of the instruments. |
Fair Value at September 30, 2021 |
Valuation Technique |
Unobservable inputs |
Range (Weighted Average) (1) |
|||||||||||||
MSRs |
$ | Discounted cash flow | Constant prepayment rates | |||||||||||||
Constant default rate | % ( |
|||||||||||||||
Loss severity | ||||||||||||||||
Discount rate | ||||||||||||||||
Fair Value at December 31, 2020 |
Valuation Technique | Unobservable inputs | Range (Weighted Average) (1) |
|||||||||||||
MSRs |
$ | Discounted cash flow | Constant prepayment rates | |||||||||||||
Constant default rate | % ( |
|||||||||||||||
Loss severity | ||||||||||||||||
Discount rate |
(1) |
Weighted average is based on the |
9. |
Stockholders’ Equity |
10. |
Stock-Based Compensation Plans |
RSA Grants to Non-employee Directors |
RSU Grants to Employees |
RSU Grants to Independent Contractors |
Total |
Weighted- Average Grant Date Fair Value Per Share |
||||||||||||||||
Nonvested shares at December 31, 2020 (1) |
$ | |
||||||||||||||||||
Granted |
$ | |||||||||||||||||||
Vested |
( |
) | ( |
) | ( |
) | ( |
) | $ | |||||||||||
Transferred |
( |
) | $ | |||||||||||||||||
Forfeited/canceled |
( |
) | ( |
) | ( |
) | $ | |||||||||||||
Nonvested shares at September 30, 2021 (1) |
$ | |||||||||||||||||||
Unrecognized stock-based compensation expense as of September 30, 2021 (2) |
$ | $ | $ | $ | ||||||||||||||||
Weighted average remaining vesting period (years) as of September 30, 2021 |
||||||||||||||||||||
(1) |
Nonvested RSUs will be settled through the issuance of new shares of common stock. |
(2) |
The total unrecognized compensation expense is expected to be recognized over a weighted-average period of approximately |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
ESPP |
$ | $ | $ | $ | ||||||||||||
RSAs – non-employee directors |
||||||||||||||||
RSUs – employees |
||||||||||||||||
RSUs – independent contractors |
||||||||||||||||
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||
11. |
Income Taxes |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||||||||||||||||||
Amount |
Rate |
Amount |
Rate |
Amount |
Rate |
Amount |
Rate |
|||||||||||||||||||||||||
Income tax expense at the federal statutory rate |
$ | % | $ | |
|
% | $ | |
% | $ | |
% | ||||||||||||||||||||
State income tax expense, net of federal benefit |
% | % | % | % | ||||||||||||||||||||||||||||
(Windfall) shortfall tax benefits, net related to stock-based compensation |
( |
) | ( |
)% | % | ( |
) | ( |
)% | % | ||||||||||||||||||||||
Change in valuation allowance |
% | % | % | % | ||||||||||||||||||||||||||||
Permanent and other items (1) |
% | ( |
) | ( |
)% | % | ( |
) | ||||||||||||||||||||||||
$ |
|
% | $ |
% | $ |
% | $ |
% | ||||||||||||||||||||||||
(1) |
Permanent items relate principally to compensation charges, qualified transportation fringe benefits and meals and entertainment. |
12. |
Earnings per Share |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Numerator (Basic and Diluted): |
||||||||||||||||
Net income |
$ | |
$ | $ | |
$ | |
|||||||||
Change in value for stock settled consideration |
( |
) | ||||||||||||||
Adjusted net income |
$ | $ | $ | $ | ||||||||||||
Denominator: |
||||||||||||||||
Basic |
||||||||||||||||
Weighted average common shares issued and outstanding |
||||||||||||||||
Deduct: Unvested RSAs (1) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Add: Fully vested DSUs (2) |
||||||||||||||||
Weighted average common shares outstanding |
||||||||||||||||
Basic earnings per common share |
$ | $ | $ | $ | ||||||||||||
Diluted |
||||||||||||||||
Weighted average common shares outstanding from above |
||||||||||||||||
Add: Dilutive effect of RSUs, RSAs & ESPP |
||||||||||||||||
Add: Contingently issuable shares (3) |
||||||||||||||||
Weighted average common shares outstanding |
||||||||||||||||
Diluted earnings per common share |
$ | $ | $ | $ | ||||||||||||
Antidilutive shares excluded from diluted earnings per common share (4) |
||||||||||||||||
(1) |
RSAs were issued and outstanding to the non-employee directors and have a |
(2) |
Shares are included in weighted average common shares outstanding as the shares are fully vested but have not yet been delivered. See Note 10 – “Stock-Based Compensation Plans” for additional information. |
(3) |
Relates to contingently issuable stock settled consideration. |
(4) |
Primarily pertaining to RSU grants to the Company’s employees and independent contractors. |
13. |
Commitments and Contingencies |
• | Properties priced less than $1 million; |
• | Private client market: |
• | Middle market: |
• | Larger transaction market: |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||||||||||||||
Real Estate Brokerage |
Number | Volume | Revenues | Number | Volume | Revenues | Number | Volume | Revenues | |||||||||||||||||||||||||||
(in millions) | (in thousands) | (in millions) | (in thousands) | (in millions) | (in thousands) | |||||||||||||||||||||||||||||||
<$1 million |
267 | $ | 183 | $ | 7,419 | 241 | $ | 156 | $ | 6,290 | 26 | $ | 27 | $ | 1,129 | |||||||||||||||||||||
Private client market ($1 - <$10 million) |
1,894 | 6,296 | 183,033 | 1,168 | 3,592 | 97,856 | 726 | 2,704 | 85,177 | |||||||||||||||||||||||||||
Middle market ($10 - <$20 million) |
136 | 1,940 | 35,353 | 70 | 945 | 17,643 | 66 | 995 | 17,710 | |||||||||||||||||||||||||||
Larger transaction market ( ³ $20 million) |
159 | 8,088 | 73,954 | 48 | 2,302 | 19,055 | 111 | 5,786 | 54,899 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
2,456 | $ | 16,507 | $ | 299,759 | 1,527 | $ | 6,995 | $ | 140,844 | 929 | $ | 9,512 | $ | 158,915 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||||||||||||||
Real Estate Brokerage |
Number | Volume | Revenues | Number | Volume | Revenues | Number | Volume | Revenues | |||||||||||||||||||||||||||
(in millions) | (in thousands) | (in millions) | (in thousands) | (in millions) | (in thousands) | |||||||||||||||||||||||||||||||
<$1 million |
791 | $ | 532 | $ | 21,175 | 649 | $ | 410 | $ | 16,550 | 142 | $ | 122 | $ | 4,625 | |||||||||||||||||||||
Private client market ($1 - <$10 million) |
4,861 | 15,639 | 446,592 | 3,203 | 10,207 | 282,937 | 1,658 | 5,432 | 163,655 | |||||||||||||||||||||||||||
Middle market ($10 - <$20 million) |
370 | 5,141 | 97,699 | 204 | 2,785 | 51,902 | 166 | 2,356 | 45,797 | |||||||||||||||||||||||||||
Larger transaction market ( ³ $20 million) |
352 | 17,619 | 149,992 | 161 | 7,459 | 64,655 | 191 | 10,160 | 85,337 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
6,374 | $ | 38,931 | $ | 715,458 | 4,217 | $ | 20,861 | $ | 416,044 | 2,157 | $ | 18,070 | $ | 299,414 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
Real Estate Brokerage |
2021 | 2020 | 2021 | 2020 | ||||||||||||
Average Number of Investment Sales Professionals |
1,909 | 1,917 | 1,934 | 1,911 | ||||||||||||
Average Number of Transactions per Investment Sales Professional |
1.29 | 0.80 | 3.30 | 2.21 | ||||||||||||
Average Commission per Transaction |
$ | 122,052 | $ | 92,236 | $ | 112,246 | $ | 98,659 | ||||||||
Average Commission Rate |
1.82 | % | 2.01 | % | 1.84 | % | 1.99 | % | ||||||||
Average Transaction Size (in thousands) |
$ | 6,721 | $ | 4,581 | $ | 6,108 | $ | 4,947 | ||||||||
Total Number of Transactions |
2,456 | 1,527 | 6,374 | 4,217 | ||||||||||||
Total Sales Volume (in millions) |
$ | 16,507 | $ | 6,995 | $ | 38,931 | $ | 20,861 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
Financing (1) |
2021 |
2020 |
2021 |
2020 |
||||||||||||
Average Number of Financing Professionals |
86 |
82 |
86 |
86 |
||||||||||||
Average Number of Transactions per Financing Professional |
6.98 |
5.39 |
20.67 |
15.13 |
||||||||||||
Average Fee per Transaction |
$ |
42,319 |
$ |
33,531 |
$ |
36,126 |
$ |
31,607 |
||||||||
Average Fee Rate |
0.77 |
% |
0.88 |
% |
0.82 |
% |
0.89 |
% | ||||||||
Average Transaction Size (in thousands) |
$ |
5,503 |
$ |
3,828 |
$ |
4,390 |
$ |
3,533 |
||||||||
Total Number of Transactions |
600 |
442 |
1,778 |
1,301 |
||||||||||||
Total Financing Volume (in millions) |
$ |
3,302 |
$ |
1,692 |
$ |
7,806 |
$ |
4,597 |
(1) |
Operating metrics exclude certain financing fees not directly associated to transactions. |
Three Months Ended September 30, 2021 |
Percentage of Revenue |
Three Months Ended September 30, 2020 |
Percentage of Revenue |
Change | ||||||||||||||||||||
Dollar | Percentage | |||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Real estate brokerage commissions |
$ | 299,759 | 90.2 | % | $ | 140,844 | 88.8 | % | $ | 158,915 | 112.8 | % | ||||||||||||
Financing fees |
29,391 | 8.8 | 15,620 | 9.9 | 13,771 | 88.2 | % | |||||||||||||||||
Other revenues |
3,233 | 1.0 | 2,111 | 1.3 | 1,122 | 53.2 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues |
332,383 | 100.0 | 158,575 | 100.0 | 173,808 | 109.6 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Cost of services |
219,194 | 65.9 | 99,707 | 62.9 | 119,487 | 119.8 | % | |||||||||||||||||
Selling, general and administrative |
64,673 | 19.5 | 49,722 | 31.4 | 14,951 | 30.1 | % | |||||||||||||||||
Depreciation and amortization |
2,850 | 0.9 | 2,606 | 1.6 | 244 | 9.4 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total operating expenses |
286,717 | 86.3 | 152,035 | 95.9 | 134,682 | 88.6 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating income |
45,666 | 13.7 | 6,540 | 4.1 | 39,126 | nm |
(2) | |||||||||||||||||
Other income (expense), net |
323 | 0.1 | 1,615 | 1.0 | (1,292 | ) | (80.0 | )% | ||||||||||||||||
Interest expense |
(144 | ) | 0.0 | (199 | ) | (0.1 | ) | 55 | (27.6 | )% | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income before provision for income taxes |
45,845 | 13.8 | 7,956 | 5.0 | 37,889 | nm |
(2) | |||||||||||||||||
Provision for income taxes |
11,921 | 3.6 | 1,916 | 1.2 | 10,005 | nm |
(2) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income |
$ | 33,924 | 10.2 | % | $ | 6,040 | 3.8 | % | $ | 27,884 | nm |
(2) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Adjusted EBITDA (1) |
$ | 50,985 | 15.3 | % | $ | 12,229 | 7.7 | % | $ | 38,756 | nm |
(2) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) |
Adjusted EBITDA is not a measurement of our financial performance under U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered as an alternative to net income, operating income or any other measures derived in accordance with U.S. GAAP. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, see “Non-GAAP Financial Measure.” |
(2) |
Not meaningful |
Nine Months Ended September 30, 2021 |
Percentage of |
Nine Months Ended |
Percentage of |
Change | ||||||||||||||||||||
Revenue | September 30, 2020 | Revenue | Dollar | Percentage | ||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Real estate brokerage commissions |
$ | 715,458 | 89.3 | % | $ | 416,044 | 89.1 | % | $ | 299,414 | 72.0 | % | ||||||||||||
Financing fees |
75,448 | 9.4 | 43,674 | 9.4 | 31,774 | 72.8 | % | |||||||||||||||||
Other revenues |
10,400 | 1.3 | 6,974 | 1.5 | 3,426 | 49.1 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues |
801,306 | 100.0 | 466,692 | 100.0 | 334,614 | 71.7 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Cost of services |
506,882 | 63.3 | 287,207 | 61.5 | 219,675 | 76.5 | % | |||||||||||||||||
Selling, general and administrative |
178,147 | 22.2 | 148,101 | 31.7 | 30,046 | 20.3 | % | |||||||||||||||||
Depreciation and amortization |
8,806 | 1.1 | 7,822 | 1.8 | 984 | 12.6 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total operating expenses |
693,835 | 86.6 | 443,130 | 95.0 | 250,705 | 56.6 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating income |
107,471 | 13.4 | 23,562 | 5.0 | 83,909 | nm |
(2) | |||||||||||||||||
Other income (expense), net |
2,737 | 0.3 | 4,224 | 0.9 | (1,487 | ) | (35.2 | )% | ||||||||||||||||
Interest expense |
(436 | ) | (0.1 | ) | (695 | ) | (0.1 | ) | 259 | (37.3 | )% | |||||||||||||
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Income before provision for income taxes |
109,772 | 13.6 | 27,091 | 5.8 | 82,681 | nm |
(2) | |||||||||||||||||
Provision for income taxes |
29,304 | 3.7 | 7,875 | 1.7 | 21,429 | nm |
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Net income |
$ | 80,468 | 9.9 | % | $ | 19,216 | 4.1 | % | $ | 61,252 | nm |
(2) | ||||||||||||
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Adjusted EBITDA (1) |
$ | 124,790 | 15.6 | % | $ | 38,757 | 8.3 | % | $ | 86,033 | nm |
(2) | ||||||||||||
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(1) |
Adjusted EBITDA is not a measurement of our financial performance under U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered as an alternative to net income, operating income or any other measures derived in accordance with U.S. GAAP. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, see “Non-GAAP Financial Measure.” |
(2) |
Not meaningful |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income |
$ | 33,924 | $ | 6,040 | $ | 80,468 | $ | 19,216 | ||||||||
Adjustments: |
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Interest income and other (1) |
(503 | ) | (889 | ) | (1,470 | ) | (4,090 | ) | ||||||||
Interest expense |
144 | 199 | 436 | 695 | ||||||||||||
Provision for income taxes |
11,921 | 1,916 | 29,304 | 7,875 | ||||||||||||
Depreciation and amortization |
2,850 | 2,606 | 8,806 | 7,822 | ||||||||||||
Stock-based compensation |
2,703 | 2,383 | 7,653 | 7,551 | ||||||||||||
Non-cash MSR activity (2) |
(54 | ) | (26 | ) | (407 | ) | (312 | ) | ||||||||
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Adjusted EBITDA (3) |
$ | 50,985 | $ | 12,229 | $ | 124,790 | $ | 38,757 | ||||||||
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(1) |
Other includes net realized gains (losses) on marketable debt securities, available-for-sale. |
(2) |
Non-cash MSR activity includes the assumption of servicing obligations. |
(3) |
The increase in Adjusted EBITDA for the three and nine months ended September 30, 2021, compared to the same period in 2020 is primarily due to an increase in total revenues and a lower proportion of operating expenses compared to total revenues. |
Nine Months Ended September 30, |
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2021 | 2020 | |||||||
Net cash provided by (used in) operating activities |
$ | 99,593 | $ | (28,266 | ) | |||
Net cash used in investing activities |
(55,782 | ) | (21,381 | ) | ||||
Net cash used in financing activities |
(6,081 | ) | (9,819 | ) | ||||
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Effect of currency exchange rate changes on cash and cash equivalents |
125 | (92 | ) | |||||
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Net increase (decrease) in cash and cash equivalents |
37,855 | (59,558 | ) | |||||
Cash and cash equivalents at beginning of period |
243,152 | 232,670 | ||||||
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Cash and cash equivalents at end of period |
$ | 281,007 | $ | 173,112 | ||||
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Change in Interest Rates |
Approximate Change in Fair Value of Investments Increase (Decrease) |
|||
2% Decrease |
$ | 2,604 | ||
1% Decrease |
$ | 1,788 | ||
1% Increase |
$ | (3,299 | ) | |
2% Increase |
$ | (6,597 | ) |
Exhibit No. | Description | |
31.1* | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2* | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1** | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) under the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101* | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Net and Comprehensive Income, (iii) Condensed Consolidated Statements of Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and including detailed tags. | |
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* |
Filed herewith. |
** |
Furnished, not filed. |
Marcus & Millichap, Inc | ||||||||
Date: | November 5, 2021 |
By: | /s/ Hessam Nadji | |||||
Hessam Nadji President and Chief Executive Officer (Principal Executive Officer) | ||||||||
Date: | November 5, 2021 |
By: | /s/ Steven F. DeGennaro | |||||
Steven F. DeGennaro Chief Financial Officer (Principal Financial Officer) |
Exhibit 31.1
Certification of Chief Executive Officer of Marcus & Millichap, Inc. pursuant to
Rule 13a-14(a) under the Exchange Act,
as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Hessam Nadji, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of Marcus & Millichap, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: November 5, 2021 | /s/ Hessam Nadji | |||||
Hessam Nadji President and Chief Executive Officer |
Exhibit 31.2
Certification of Chief Financial Officer of Marcus & Millichap, Inc. pursuant to
Rule 13a-14(a) under the Exchange Act,
as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Steven F. DeGennaro, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of Marcus & Millichap, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: November 5, 2021 | /s/ Steven F. DeGennaro | |||||
Steven F. DeGennaro Chief Financial Officer |
Exhibit 32.1
Certifications of Chief Executive Officer and Chief Financial Officer of Marcus & Millichap, Inc. Pursuant to
Rule 13a-14(b) under the Exchange Act and 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the quarterly report of Marcus & Millichap, Inc. on Form 10-Q for the period ended September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the Report), we, Hessam Nadji, President and Chief Executive Officer of the Company, and Steven F. DeGennaro, Chief Financial Officer of the Company, certify, to the best of our knowledge, pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | November 5, 2021 |
/s/ Hessam Nadji | ||||||
Hessam Nadji President and Chief Executive Officer (Principal Executive Officer) | ||||||||
Date: | November 5, 2021 |
/s/ Steven F. DeGennaro | ||||||
Steven F. DeGennaro Chief Financial Officer (Principal Financial Officer) |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Amortized cost, current | $ 116,852 | $ 158,148 |
Allowance for credit losses, current | 0 | 0 |
Amortized cost, noncurrent | 128,788 | 45,181 |
Allowance for credit losses, noncurrent | $ 0 | $ 0 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 39,666,785 | 39,401,976 |
Common stock, shares outstanding | 39,666,785 | 39,401,976 |
CONDENSED CONSOLIDATED STATEMENTS OF NET AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Statement [Abstract] | ||||
Marketable debt securities, available-for-sale, net change, tax | $ (75) | $ (7) | $ (239) | $ 246 |
Foreign currency translation (loss) gain, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Description of Business, Basis of Presentation and Recent Accounting Pronouncements |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 | |||
Accounting Policies [Abstract] | |||
Description of Business, Basis of Presentation and Recent Accounting Pronouncements |
Description of Business Marcus & Millichap, Inc. (the “Company”, “Marcus & Millichap”, or “MMI”), a Delaware corporation, is a brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. As of September 30, 2021, MMI operates 82 offices in the United States and Canada through its wholly-owned subsidiaries, including the operations of Marcus & Millichap Capital Corporation. Reorganization and Initial Public Offering MMI was formed in June 2013 in preparation for Marcus & Millichap Company (“MMC”) to spin-off its majority-owned subsidiary, Marcus & Millichap Real Estate Investment Services, Inc. (“MMREIS”). Prior to the initial public offe ring (“IPO”) of MMI, all of the preferred and common stockholders of MMREIS (including MMC and employees of MMREIS) contributed all of their outstanding shares to MMI, in exchange for new MMI common stock. As a result, MMREIS became a wholly-owned subsidiary of MMI. Thereafter, MMC distributed 80.0% of the shares of MMI common stock to MMC’s shareholders and exchanged the remaining portion of its shares of MMI common stock for cancellation of indebtedness of MMC. MMI completed its IPO in . Basis of Presentation The financial information presented in the accompanying unaudited condensed consolidated financial statements, has been prepared in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements and notes include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the condensed consolidated financial position, results of operations and cash flows for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto, including the Company’s accounting policies for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed on March 1, 2021 with the SEC. The results of the nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021, for other interim periods or for future years. Considerations Related to the COVID-19 PandemicT he Company may continue to experience operational and financial impacts due to the ongoing COVID-19 pandemic. Actual results may differ from the Company’s current estimates and historical trends due to the uncertainty around the economic impact and spread of COVID-19, as well as the impact of vaccine mandates on our workforce. See Note 5 – “Acquisitions, Goodwill and Other Intangible Assets” and Note 8 – “Fair Value Measurements” for further discussions on the potential impacts of COVID-19. Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Concentrations of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash and cash equivalents, investments in marketable debt securities, available-for-sale, non-current) and commissions receivable, net. Cash and cash equivalents are placed with high-credit quality financial institutions and invested in high-credit quality money market funds and commercial paper. Concentrations and ratings of marketable debt securities, available-for-sale To reduce its credit risk, the Company monitors the credit standing of the financial institutions money market funds that represent amounts recorded as cash and cash equivalents. The Company historically has not experienced any significant losses related to cash and cash equivalents. The Company derives its revenues from a broad range of real estate investors, owners, and users in the United States and Canada, none of which individually represents a significant concentration of credit risk. The Company maintains allowances, as needed, for estimated credit losses based on management’s assessment of the likelihood of collection. For the three and nine months ended September 30, 2021 and 2020, no transaction represented 10% or more of total revenues. Further, while one or more transactions may represent 10% or more of commissions receivable at any reporting date, amounts due are typically collected within 10 days of settlement and, therefore, do not expose the Company to significant credit risk. During each of the three and nine months ended September 30, 2021, the Company’s Canadian operations represented 2.2% of total revenues, respectively. During the three and nine months ended September 30, 2020, the Company’s Canadian operations represented 1.50% and 1.9% of total revenues, respectively. During each of the three and nine months ended September 30, 2021 and 2020, no office represented 10% or more of total revenues. Recent Accounting Pronouncements Pending Adoption In March 2020, the FASB issued Accounting Standards Update (“ASU”)
No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting 2020-04”). ASU 2020-04 provides temporary optional exceptions to the guidance in U.S. GAAP on contract modifications to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). ASU 2020-04 is effective for all entities upon issuance and may be applied prospectively to contract modifications through December 31, 2022. The guidance applies to the Company’s Credit Agreement (see Note 13 – “Commitments and Contingencies”), which references LIBOR, and will generally allow it to account for and present a modification as an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. As of September 30, 2021, the Company has not drawn funds from the credit facility. The Company continues to evaluate the impact of this new standard but does not expect ASU 2020-04 to have a material effect on its condensed consolidated financial statements. |
Property and Equipment, Net |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net |
Property and equipment, net consisted of the following (in thousands):
During the nine months ended September 30, 2021 and 2020, the Company wrote-off approximately $2.5 million and $968,000, respectively, of fully depreciated computer software and hardware equipment and furniture, fixtures and equipment. As of September 30, 2021 and 2020, property and equipment additions incurred but not yet paid included in accounts payable and other liabilities were $786,000 and $430,000, respectively. |
Operating Leases |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Leases |
The Company has operating leases for all of its facilities and autos. As of September 30, 2021 and December 31, 2020, operating lease right-of-use million and $126.9 million, respectively, and the related accumulated amortization was $58.0 million and $42.9 million, respectively. The operating lease cost, included in selling, general and administrative expense in the condensed consolidated statement of net and comprehensive income, consisted of the following (in thousands):
Maturities of lease liabilities by year consisted of the following (in thousands):
Supplemental cash flow information and noncash activity related to the operating leases consisted of the following (in thousands):
Other information related to the operating leases consisted of the following:
|
Investments in Marketable Debt Securities, Available for Sale |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Marketable Debt Securities, Available for Sale |
Amortized cost, allowance for credit losses, gross unrealized gains/losses in accumulated other comprehensive income/loss and fair value of marketable debt securities, available-for-sale,
The Company’s investments in marketable debt s e curities, available-for-sale,
Gross realized gains and losses from the sales of the Company’s marketable debt securities, available-for-sale,
The Company invests its excess cash in a diversified portfolio of fixed and variable rate debt securities to meet current and future cash flow needs. All investments are made in accordance with the Company’s approved investment policy. As of September 30, 2021, the portfolio had an average credit rating of AA and weighted term to contractual maturity of 1.9 years, with 37 securities in the portfolio with an unrealized loss aggregating $66,000, or 0.1% of amortized cost, and a weighted average credit rating of AA+. As of September 30, 2021, the Company performed an impairment analysis and determined an allowance for credit losses was not required. The Company determined that it did not have an intent to sell and it was not more likely than not that the Company would be required to sell any security based on its current liquidity position, or to ma i ntain compliance with its investment policy, specifically as it relates to minimum credit ratings. The Company evaluated the securities with an unrealized loss considering severity of loss, credit ratings, specific credit events during the period since acquisition, overall likelihood of default, market sector, potential impact from the current economic environment and a review of an issuer’s and securities’ liquidity and financial strength, as needed. The Company concluded that it would receive all scheduled interest and principal payments. The Company, therefore, determined qualitatively that the unrealized loss was related to changes in interest rates and other market factors and therefore no allowance for credit losses was required. Amortized cost and fair value of marketable debt securities, available-for-sale,
Actual maturities may differ from contractual maturities because certain issuers have the right to prepay certain obligations with or without prepayment penalties. |
Acquisitions, Goodwill and Other Intangible Assets |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, Goodwill and Other Intangible Assets |
During the nine months ended September 30, 2021, the Company recognized measurement period adjustments, including additional cash expected to be received in excess of the provisional amounts that were recognized at the acquisition date for businesses acquired during 2020. Measurement period adjustments reflect new information obtained about facts and circumstances that existed as of the acquisition dates that, if known, would have affected the measurement of the amounts recognized as of the acquisition date. The impact to amortization expense not previously recognized related to these changes in estimates was not material. The goodwill recorded as part of the acquisitions primarily arose from the acquired assembled workforce and brokerage and financing sales platforms. The Company expects all of the goodwill to be tax deductible, with the tax-deductible amount of goodwill related to the contingent and deferred consideration to be determined once the cash payments are made to settle any contingent and deferred consideration. The goodwill resulting from acquisitions is allocated to the Company’s one reporting unit. Goodwill and intangible assets, net consisted of the following (in thousands):
The changes in the carrying amount of goodwill consisted of the following (in thousands):
Estimated amortization expense for intangible assets by year for the next five years and thereafter consisted of the following (in thousands):
The Company evaluates goodwill for impairment annually in the fourth quarter. In addition to the annual impairment evaluation, the Company evaluates at least quarterly whether events or circumstances have occurred in the period subsequent to the annual impairment testing, which indicate that it is more likely than not an impairment loss has occurred. The Company evaluates its intangible assets that have finite useful lives whenever an event or change in circumstances indicates that the carrying value of the asset may not be recoverable. As of September 30, 2021, the Company considered the impact of
COVID-19 pandemic and evaluated its goodwill and intangible assets for impairment testing. The Company estimated the recoverability of the intangible assets by comparing the carrying amount of each asset to the future undiscounted cash flows that the Company expects the asset to generate. The sum of the undiscounted expected future cash flows was greater than the carrying amount of the intangible assets. The Company conclude d that as of September 30, 2021, there was no impairment of its goodwill and intangible assets. |
Selected Balance Sheet Data |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Balance Sheet Data |
Advances and Loans, Net and Commissions Receivable, Net Allowance for credit losses for advances and loans and commissions receivable consisted of the following (in thousands):
(1) Includes cumulative-effect adjustment related to the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses Other Assets Other assets consisted of the following (in thousands):
MSRs The net change in the carrying value of MSRs consisted of the following (in thousands):
The portfolio of loans serviced by the Company aggregated $1.7 billion and $1.6 billion for the periods ended September 30, 2021 and December 31, 2020, respectively. See Note 8 – “Fair Value Measurements” for additional information on MSRs. In connection with MSR activities, the Company holds funds in escrow for the benefit of the lenders. These funds, which totaled $3.1 million and $3.2 million as of September 30, 2021 and December 31, 2020, respectively, and the offsetting obligations are not presented in the Company’s condensed consolidated financial statements as they do not represent assets and liabilities of the Company. Deferred Compensation and Commissions Deferred compensation and commissions consisted of the following (in thousands):
SARs Liability Prior to the IPO, certain employees of the Company were granted SARs under a stock-based compensation program assumed by MMC. In connection with the IPO, the SARs agreements were revised, the MMC liability of $20.0 million for the SARs was frozen as of March 31, 2013 and was transferred to MMI through a capital distribution. The SARs liability will be settled with each participant in ten annual installments in January of each year upon retirement or termination from service, or in full upon consummation of a change in control of the Company. Under the revised agreements, MMI is required to accrue interest on the outstanding balance beginning on January 1, 2014 at a rate based on the 10-year treasury note, plus 2%. The rate resets annually. The rates at January 1, 2021 and 2020 were 2.930% and 3.920%, respectively. MMI recorded interest expense related to this liability of $122,000 and $178,000 for the three months ended September 30, 2021 and 2020, respectively, and $366,000 and $533,000 for the nine months ended September 30, 2021 and 2020, respectively. Estimated payouts within the next twelve months for participants that have separated from service have been classified as current. During the nine months ended September 30, 2021 and 2020, the Company made total payments of $2.2 million and $2.1 million, consisting of principal and accumulated interest, respectively. Commissions Payable Certain investment sales professionals have the ability to earn additional commissions after meeting certain annual revenue thresholds. These commissions are recognized as cost of services in the period in which they are earned as they relate to specific transactions closed. The Company has the ability to defer payment of certain commissions, at its election, for up to three years. Commissions payable that are not expected to be paid within twelve months are classified as long-term. Deferred Compensation Liability A select group of management is eligible to participate in the Marcus & Millichap Deferred Compensation Plan (the “Deferred Compensation Plan”). The Deferred Compensation Plan is a non-qualified deferred compensation plan that is intended to comply with Section 409A of the Internal Revenue Code and permits participants to defer compensation up to the limits set forth in the Deferred Compensation Plan. Amounts are paid out generally when the participant is no longer a service provider; however, an in-service payout election is available to participants. Participants may elect to receive payouts as a lump sum or quarterly over a to fifteen-year period. The Company elected to fund the Deferred Compensation Plan through company owned variable life insurance policies. The Deferred Compensation Plan is managed by a third-party institutional fund manager, and the deferred compensation and investment earnings are held as a Company asset in a ra bbi trust, which is recorded in assets held in rabbi trust in the accompanying condensed consolidated balance sheets. The assets in the trust are restricted unless the Company becomes insolvent, in which case the trust assets are subject to the claims of the Company’s creditors. The Company may also, in its sole and absolute discretion, elect to withdraw at any time a portion of the trust assets by an amount by which the fair market value of the trust assets exceeds 110% of the aggregate deferred compensation liability represented by the participants’ accounts. Estimated payouts within the next twelve months for participants that have separated from service or elected in service payout have been classified as current. During each of the nine months ended September 30, 2021 and 2020, the Company made total payments to participants of $1.2 million, respectively. The assets held in the rabbi trust are carried at the cash surrender value of the variable life insurance policies, which represents its fair value. The net change in the carrying value of the assets held in the rabbi trust and the net change in the carrying value of the deferred compensation liability, each exclusive of additional contributions, distributions and trust expenses consisted of the following (in thousands):
Other Liabilities Other liabilities consisted of the following (in thousands):
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Related-Party Transactions |
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Related Party Transactions [Abstract] | |||
Related-Party Transactions |
Shared and Transition Services Certain services are provided to the Company under a Transition Services Agreement (“TSA”) between MMC and the Company. The TSA is intended to provide certain services until the Company acquires these services separately. Under the TSA, the Company incurred net costs (charge-back) during the three months ended September 30, 2021 and 2020 of $(11,000) and $10,000, respectively, and during the nine months ended September 30, 2021 and 2020 of $4,000 and $52,000, respectively. These amounts are included in selling, general and administrative expense in the accompanying condensed consolidated statements of net and comprehensive income. Brokerage and Financing Services with the Subsidiaries of MMC MMC has wholly or majority owned subsidiaries that buy and sell commercial real estate properties. The Company performs certain brokerage and financing services related to transactions of the subsidiaries of MMC. For the three months ended September 30, 2021 and 2020, the Company earned real estate brokerage commissions and financing fees of $603,000 and $225,000, respectively, from transactions with subsidiaries of MMC related to these services. The Company incurred cost of services of $363,000 and $130,000, respectively, related to these revenues. For the nine months ended September 30, 2021 and 2020, the Company earned real estate brokerage commissions and financing fees of $1.4 million and $1.9 million, respectively, from transactions with subsidiaries of MMC related to these services. The Company incurred cost of services of $840,000 and $1.1 million, respectively, related to these revenues. Operating Lease with MMC The Company has an operating lease with MMC for a single-story office building located in Palo Alto, California, which expires on May 31, 2022. The related operating lease cost was $333,000 for each of the three months ended September 30, 2021 and 2020, respectively, and $998,000 for each of the nine months ended September 30, 2021 and 2020, respectively. Operating lease cost is included in selling, general and administrative expense in the accompanying condensed consolidated statements of net and comprehensive income. See Note 3 – “Operating Leases” for additional information. Accounts Payable and Other Liabilities with MMC As of September 30, 2021 and December 31, 2020, accounts payable and other liabilities with MMC totaling $86,000 and $89,000, respectively, remain unpaid and are included in accounts payable and other liabilities in the accompanying condensed consolidated balance sheets. O ther T he Company makes advances to non-executive employees from time-to-time. $66,000 non-current) in the accompanying condensed consolidated balance sheets. See Note 6 – “Selected Balance Sheet Data” for additional information. As of September 30, 2021, George M. Marcus, the Company’s founder and Chairman, beneficially owned approximately 38% of the Company’s issued and outstanding common stock, including shares owned by Phoenix Investments Holdings, LLC and the Marcus Family Foundation II. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
U.S. GAAP defines the fair value of a financial instrument as the amount that would be received from the sale of an asset in an orderly transaction between market participants at the measurement date. The Company is responsible for the determination of fair value and the supporting methodologies and assumptions. The Company uses various pricing sources and third parties to provide and validate the values utilized. The degree of judgment used in measuring the fair value of financial instruments is generally inversely correlated with the level of observable valuation inputs. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Assets recorded at fair value are measured and classified in accordance with a fair value hierarchy consisting of the three “levels” based on the observability of inputs available in the marketplace used to measure the fair values as discussed below:
Recurring Fair Value Measurements The Company values its investments including commercial paper and floating NAV money market funds recorded in cash and cash equivalents, investments in marketable debt securities, available-for-sale, Fair values for investments included in cash and cash equivalents and marketable debt securities, available-for-sale Fair values for assets held in the rabbi trust and related deferred compensation liability were determined based on the cash surrender value of the company owned variable life insurance policies and underlying investments in the trust, and are L e vel 2 and Level 1 measurements, respectively. Contingent consideration in connection with acquisitions, is carried at fair value and determined on a contract-by-contract Assets and liabilities carried at fair value on a recurring basis consisted of the following (in thousands):
There were no transfers in or out of Level 3 during the nine months ended September 30, 2021 and 2020. D uring the nine months ended September 30, 2021, the Company considered current and future interest rates on the probability of achieving EBITDA and other performance targets in its determination of fair value for the contingent consideration. The Company is uncertain as to the extent of the volatility in the unobservable inputs in the foreseeable future. Deferred consideration in connection with acquisitions is carried at fair value and calculated using a discounted cash flow estimate with the only remaining condition on such payments being the passage of time. As of September 30, 2021 and December 31, 2020, contingent and deferred consideration had a maximum undiscounted payment to be settled in cash or stock of $30.3 million and $33.2 million, respectively. Assuming the achievement of the applicable performance criteria and/or service and time requirements, the Company anticipates these payments will be made over the next to six-year period. Changes in fair value are included in selling, general and administrative expense in the condensed consolidated statements of net and comprehensive income. A reconciliation of contingent consideration measured at fair value on a recurring basis consisted of the following (in thousands):
Quantitative information about the valuation technique and significant unobservable inputs used in the valuation of the Company’s Level 3 financial liabilities measured at fair value on a recurring basis consisted of the following (dollars in thousands):
Nonrecurring Fair Value Measurements In accordance with U.S. GAAP, from time to time, the Company measures certain assets at fair value on a nonrecurring basis. The Company reviews the carrying value of MSRs, intangibles, goodwill and other assets for indications of impairment at least annually. When indications of potential impairment are identified, the Company may be required to determine the fair value of those assets and record an adjustment for the carrying amount in excess of the fair value determined. Any fair value determination would be based on valuation approaches, which are appropriate under the circumstances and utilize Level 2 and Level 3 measurements as required. MSRs are recorded at fair value upon acquisition of a servicing contract. The Company has elected the amortization method for the subsequent measurement of MSRs. MSRs are carried at the lower of amortized cost or fair value. MSRs are a Level 3 measurement. The Company’s MSRs do not trade in an active, open market with readily observable prices. The estimated fair value of the Company’s MSRs were developed using a discounted cash flow model that calculates the present value of estimated future net servicing income. The model considers contractual provisions and assumptions of market participants including specified servicing fees, prepayment assumptions, delinquency rates, late charges, other ancillary revenue, costs to service and other economic factors. The Company periodically reassesses and adjusts, when necessary, the underlying inputs and assumptions used to reflect observable market conditions and assumptions that a market participant would consider in valuing an MSR asset. Management uses assumptions in the determination of fair value for MSRs after considering default, severity, prepayment and discount rates related to the specific types and underlying collateral of the various serviced loans, interest rates, refinance rates, and current government and private sector responses on the economic impact of the COVID-19 pandemic. MSRs are carried at the lower of amortized cost or fair value. The fair value of the MSRs approximated the carrying value at September 30, 2021 and December 31, 2020 after consideration of the revisions to the various assumptions. See Note 6 – “Selected Balance Sheet Data – Other Assets – MSRs” for additional information. Quantitative information about the valuation technique and significant unobservable inputs used in the valuation of the Company’s Level 3 financial assets measured at fair value on a nonrecurring basis consisted of the following (dollars in thousands):
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Stockholders' Equity |
9 Months Ended | ||
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Sep. 30, 2021 | |||
Stockholders' Equity Note [Abstract] | |||
Stockholders' Equity |
Common Stock As of September 30, 2021 and December 31, 2020, there were 39,666,785 and 39,401,976 shares of common stock, $0.0001 par value, issued and outstanding, which include unvested restricted stock awards (“RSAs”) issued to non-employee directors, respectively. See Note 12 – “Earnings per Share” for additional information. Preferred Stock The Company has 25,000,000 authorized shares of preferred stock with a par value $0.0001 per share. At September 30, 2021 and December 31, 2020, there were no preferred shares issued or outstanding. Accumulated Other Comprehensive Income/Loss Amounts reclassified from accumulated other comprehensive income/loss include marketable debt securities, available for sale are included as a component of other income (expense), net or selling, general and administrative expense, as applicable, in the condensed consolidated statements of net and comprehensive income. The reclassifications were determined on a specific identification basis. The Company has not p r ovided for U.S. taxes on unremitted earnings of its foreign subsidiary as it is operating at a loss and has no earnings and profits to remit. As a result, deferred taxes were not provided related to the cumulative foreign currency translation adjustments. |
Stock-Based Compensation Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Plans |
2 013 Omnibus Equity Incentive Plan The Company’s board of directors adopted the 2013 Omnibus Equity Incentive Plan (the “2013 Plan”), which became effective upon the Company’s IPO. In February 2017, the board of directors amended and restated the 2013 Plan, which was approved by the Company’s stockholders in May 2017. Grants are made from time to time by the compensation committee of the Company’s board of directors at its discretion, subject to certain restrictions as to the number and value of shares that may be granted to any individual. In addition, non-employee directors receive annual grants under a director compensation policy. As of September 30, 2021, there were 4,672,675 shares available for future grants under the 2013 Plan. Awards Granted and Settled Under the 2013 Plan, the Company has issued RSAs to non-employee directors and restricted stock units (“RSUs”) to employees and independent contractors. RSAs vest over a one-year period from the date of grant, subject to service requirements. RSUs generally vest in equal annual installments over a five-year period from the date of grant or earlier as approved by the compensation committee of the Company’s board of directors. Any unvested awards are canceled upon termination as a service provider. As of September 30, 2021, there were no issued or outstanding options, SARs, performance units or performance share awards under the 2013 Plan. During the nine months ended September 30, 2021, 241,726 shares of RSUs vested and 60,373 shar e s of deferred stock units (“DSUs”) were settled and 88,898 shares of common stock were withheld to pay applicable required employee statutory withholding taxes based on the market value of the shares on the vesting date. The shares withheld for taxes were returned to the share reserve and are available for future issuance in accordance with provisions of the 2013 Plan. Outstanding Awards Activity under the 2013 Plan consisted of the following (dollars in thousands, except weighted average per share data):
Employee Stock Purchase Plan In 2013, the Company adopted the 2013 Employee Stock Purchase Plan (“ESPP”). The ESPP is intended to qualify under Section 423 of the Internal Revenue Code and provides for consecutive, non-overlapping 6-month offering periods. The offering periods generally start on the first trading day on or after May 15 and November 15 of each year. Qualifying employees may purchase shares of the Company stock at a 10% discount based on the lower of the market price at the beginning or end of the offering period, subject to IRS limitations. The Company determined that the ESPP was a compensatory plan and is required to expense the fair value of the awards over each 6-month offering period. The ESPP initially had 366,667 shares of common stock reserved, and 165,242 shares of common stock remain available for issuance as of September 30, 2021. The ESPP provides for annual increases in the number of shares available for issuance under the ESPP, equal to the least of (i) 366,667 shares, (ii) 1% of the outstanding shares on such date, or (iii) an amount determined by the compensation committee of the board of directors. Pursuant to the provisions of the ESPP, the board of directors has determined to not provide for any annual increases to date. At September 30, 2021, total unrecognized compensation cost related to the ESPP was $16,000 and is expected to be recognized over a weighted average period of 0.13 years. SARs and DSUs Prior to the IPO, certain employees were granted SARs. As of March 31, 2013, the outstanding SARs were frozen at the liability amount, and will be paid out to each participant in installments upon retirement or departure under the terms of the revised SARs agreements. To replace beneficial ownership in the SARs, the difference between the book value liability and the fair value of the awards was granted to plan participants in the form of DSUs, which were fully vested upon receipt and will be settled in actual stock at a rate of 20% per year if the participant remains employed by the Company during that period (otherwise all unsettled shares of stock upon termination from service will be settled five years from the termination date, unless otherwise agreed to by the Company). In the event of death or termination of service after reaching the age of 67, 100% of the DSUs will be settled. As of September 30, 2021, 281,193 shares of fully vested DSUs remained to be settled in 2022. Summary of Stock-Based Compensation Components of stock-based compensation are included in selling, general and administrative expense in the condensed consolidated statements of net and comprehensive income and consisted of the following (in thousands):
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Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
The Company’s effective tax rate for the three and nine months ended September 30, 2021 was 26.0% and 26.7%, respectively, compared to 24.1% and 29.1%, respectively, for the three and nine months ended September 30, 2020. The Company provides for the effects of income taxes in interim financial statements based on the Company’s estimate of its annual effective tax rate for the full year, which is based on forecasted income by jurisdiction where the Company operates, adjusted for any tax effects of items that relate discretely to the period, if any. The provision for income taxes differs from the amount computed by applying the U.S. federal statutory rate to income before provision for income taxes and consisted of the following (dollars in thousands):
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Earnings per Share |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share |
Basic and diluted earnings per share for the three and nine months ended September 30, 2021 and 2020, respectively consisted of the following (in thousands, except per share data):
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Commitments and Contingencies |
9 Months Ended | ||
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Sep. 30, 2021 | |||
Commitments and Contingencies Disclosure [Abstract] | |||
Commitments and Contingencies |
Credit Agreement On June 18, 2014, the Company entered into a Credit Agreement with Wells Fargo Bank, National Association (the “Bank”), as amended and restated on May 28, 2019, and further, amended on November 27, 2019 and on February 9, 2021 (the “Credit Agreement”). The Credit Agreement provides for a $60.0 million principal amount senior secured revolving credit facility that is guaranteed by all of the Company’s domestic subsidiaries (the “Credit Facility”) and matures on June 1, 2022 . The Company may borrow, repay and reborrow amounts under the Credit Facility until its maturity date, at which time all amounts outstanding under the Credit Facility must be repaid in full. Upon the expiration of the use of the LIBOR as a benchmark, the benchmark will be replaced with the SOFR plus a spread adjustment. Borrowings under the Credit Agreement are available for general corporate purposes and working capital. The Credit Facility includes a $10.0 million sublimit for the issuance of standby letters of credit of which $533,000 was utilized at September 30, 2021. Borrowings under the Credit Facility will bear interest, at the Company’s option, at either (i) a fluctuating rate per annum 2.00% below the Base Rate (defined as the highest of (a) the Bank’s prime rate, (b) one-month LIBOR plus 1.50%, and (c) the federal funds rate plus 1.50%), or (ii) at a fixed rate per annum determined by Bank to be between 0.875% to 1.125% above LIBOR. In connection with the amendments of the Credit Agreement, the Company paid bank fees and other expenses, which are being amortized over the remaining term of the Credit Agreement. The Company pays a commitment fee of up to 0.1% per annum, payable quarterly, based on the amount of unutilized commitments under the Credit Facility. The amortization and commitment fee is included in interest expense in the accompanying condensed conso lidated statements of net and comprehensive income and was $21,000 and $22,000 for the three months ended September 30, 2021 and 2020, respectively, and $65,000 for each of the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, there were no amounts outstanding under the Credit Agreement. The Credit Facility contains customary covenants, including financial and other covenant reporting requirements and events of default. Financial covenants require the Company, on a combined basis with its guarantors, to maintain (i) an EBITDAR Coverage Ratio (as defined in the Credit Agreement) of not less than 1.25:1.0 as of each quarter end, determined on a rolling four-quarter basis, and (ii) total funded debt to EBITDA not greater than 1.5:1.0 as of each quarter end, determined on a rolling four-quarter basis, and also limits investments in foreign entities and certain other loans. The Credit Facility is secured by substantially all assets of the Company, including pledges of 100% of the stock or other equity interest of each subsidiary except for the capital stock of a controlled foreign corporation (as defined in the Internal Revenue Code), in which case no such pledge is required. As of September 30, 2021, the Company was in compliance with all financial and non-financial covenants and has not experienced any limitation in its operations as a result of the covenants. Other In connection with certain agreements with investment sales and financing professionals, the Company may agree to advance amounts to certain such professionals upon reaching certain time and performance goals. Such commitments as of September 30, 2021 aggregated $15.9 million. |
Description of Business, Basis of Presentation and Recent Accounting Pronouncements (Policies) |
9 Months Ended |
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Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Marcus & Millichap, Inc. (the “Company”, “Marcus & Millichap”, or “MMI”), a Delaware corporation, is a brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. As of September 30, 2021, MMI operates 82 offices in the United States and Canada through its wholly-owned subsidiaries, including the operations of Marcus & Millichap Capital Corporation. |
Reorganization and Initial Public Offering | Reorganization and Initial Public Offering MMI was formed in June 2013 in preparation for Marcus & Millichap Company (“MMC”) to
spin-off its majority-owned subsidiary, Marcus & Millichap Real Estate Investment Services, Inc. (“MMREIS”). Prior to the initial public offe ring (“IPO”) of MMI, all of the preferred and common stockholders of MMREIS (including MMC and employees of MMREIS) contributed all of their outstanding shares to MMI, in exchange for new MMI common stock. As a result, MMREIS became a wholly-owned subsidiary of MMI. Thereafter, MMC distributed 80.0% of the shares of MMI common stock to MMC’s shareholders and exchanged the remaining portion of its shares of MMI common stock for cancellation of indebtedness of MMC. MMI completed its IPO in . |
Basis of Presentation | Basis of Presentation The financial information presented in the accompanying unaudited condensed consolidated financial statements, has been prepared in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports on Form
10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements and notes include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the condensed consolidated financial position, results of operations and cash flows for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto, including the Company’s accounting policies for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed on March 1, 2021 with the SEC. The results of the nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021, for other interim periods or for future years. |
Considerations Related to the COVID-19 Pandemic | Considerations Related to the COVID-19 PandemicT he Company may continue to experience operational and financial impacts due to the ongoing COVID-19 pandemic. Actual results may differ from the Company’s current estimates and historical trends due to the uncertainty around the economic impact and spread of COVID-19, as well as the impact of vaccine mandates on our workforce. See Note 5 – “Acquisitions, Goodwill and Other Intangible Assets” and Note 8 – “Fair Value Measurements” for further discussions on the potential impacts of
COVID-19. |
Consolidation | Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash and cash equivalents, investments in marketable debt securities, available-for-sale, non-current) and commissions receivable, net. Cash and cash equivalents are placed with high-credit quality financial institutions and invested in high-credit quality money market funds and commercial paper. Concentrations and ratings of marketable debt securities, available-for-sale To reduce its credit risk, the Company monitors the credit standing of the financial institutions money market funds that represent amounts recorded as cash and cash equivalents. The Company historically has not experienced any significant losses related to cash and cash equivalents. The Company derives its revenues from a broad range of real estate investors, owners, and users in the United States and Canada, none of which individually represents a significant concentration of credit risk. The Company maintains allowances, as needed, for estimated credit losses based on management’s assessment of the likelihood of collection. For the three and nine months ended September 30, 2021 and 2020, no transaction represented 10% or more of total revenues. Further, while one or more transactions may represent 10% or more of commissions receivable at any reporting date, amounts due are typically collected within 10 days of settlement and, therefore, do not expose the Company to significant credit risk. During each of the three and nine months ended September 30, 2021, the Company’s Canadian operations represented 2.2% of total revenues, respectively. During the three and nine months ended September 30, 2020, the Company’s Canadian operations represented 1.50% and 1.9% of total revenues, respectively. During each of the three and nine months ended September 30, 2021 and 2020, no office represented 10% or more of total revenues. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pending Adoption In March 2020, the FASB issued Accounting Standards Update (“ASU”)
No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting 2020-04”). ASU 2020-04 provides temporary optional exceptions to the guidance in U.S. GAAP on contract modifications to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). ASU 2020-04 is effective for all entities upon issuance and may be applied prospectively to contract modifications through December 31, 2022. The guidance applies to the Company’s Credit Agreement (see Note 13 – “Commitments and Contingencies”), which references LIBOR, and will generally allow it to account for and present a modification as an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. As of September 30, 2021, the Company has not drawn funds from the credit facility. The Company continues to evaluate the impact of this new standard but does not expect ASU 2020-04 to have a material effect on its condensed consolidated financial statements. |
Property and Equipment, Net (Tables) |
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands):
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Operating Leases (Tables) |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Lease Cost, Included in Selling, General and Administrative Expense | The operating lease cost, included in selling, general and administrative expense in the condensed consolidated statement of net and comprehensive income, consisted of the following (in thousands):
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Maturities of lease liabilities | Maturities of lease liabilities by year consisted of the following (in thousands):
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Schedule of Supplemental Cash Flow Information and Noncash Activity Related to Operating Leases | Supplemental cash flow information and noncash activity related to the operating leases consisted of the following (in thousands):
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Schedule of Other Information Related to Operating Leases | Other information related to the operating leases consisted of the following:
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Investments in Marketable Debt Securities, Available for Sale (Tables) |
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Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortized Cost, Allowance for Credit Losses, Gross Unrealized Gains/Losses in Accumulated Other Comprehensive Income/Loss and Fair Value of Marketable Securities, Available-for-Sale, by Type of Security | Amortized cost, allowance for credit losses, gross unrealized gains/losses in accumulated other comprehensive income/loss and fair value of marketable debt securities, available-for-sale,
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Available-for-sale Marketable Debt Securities in a Continuous Unrealized Loss Position | The Company’s investments in marketable debt s e curities, available-for-sale,
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Gross Realized Gains and Losses from Sale of Available for Sale Marketable Debt Securities | Gross realized gains and losses from the sales of the Company’s marketable debt securities, available-for-sale,
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Amortized Cost and Fair Value of Marketable Debt Securities, Available-for-Sale, by Contractual Maturity | Amortized cost and fair value of marketable debt securities, available-for-sale,
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Acquisitions, Goodwill and Other Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Goodwill and Intangible Assets, Net | Goodwill and intangible assets, net consisted of the following (in thousands):
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Summary of Changes in Carrying Carrying Amount of Goodwill | The changes in the carrying amount of goodwill consisted of the following (in thousands):
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Schedule of Estimated Amortization Expense for Intangible Assets | Estimated amortization expense for intangible assets by year for the next five years and thereafter consisted of the following (in thousands):
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Selected Balance Sheet Data (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allowance for Credit Losses for Advances and Loans and Commissions Receivable | Allowance for credit losses for advances and loans and commissions receivable consisted of the following (in thousands):
(1) Includes cumulative-effect adjustment related to the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses |
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Schedule of Other Assets | Other assets consisted of the following (in thousands):
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Summary of Net Change in Carrying Value of MSRs | The net change in the carrying value of MSRs consisted of the following (in thousands):
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Schedule of Deferred Compensation and Commissions | Deferred compensation and commissions consisted of the following (in thousands):
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Summary of Net Change in Carrying Value of Assets Held in Rabbi Trust and Deferred Compensation Liability | The net change in the carrying value of the assets held in the rabbi trust and the net change in the carrying value of the deferred compensation liability, each exclusive of additional contributions, distributions and trust expenses consisted of the following
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Summary of Other Liabilities | Other liabilities consisted of the following (in thousands):
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and liabilities at Fair Value on Recurring Basis | Assets and liabilities carried at fair value on a recurring basis consisted of the following (in thousands):
There were no transfers in or out of Level 3 during the nine months ended September 30, 2021 and 2020. |
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Schedule of Reconciliation of Contingent Consideration Measured at Fair Value on Recurring Basis | A reconciliation of contingent consideration measured at fair value on a recurring basis consisted of the following (in thousands):
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Fair Value Liabilities Measured On Recurring Basis Valuation Techniques | Quantitative information about the valuation technique and significant unobservable inputs used in the valuation of the Company’s Level 3 financial liabilities measured at fair value on a recurring basis consisted of the following (dollars in thousands):
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Fair Value Liabilities Measured On NonRecurring Basis Valuation Techniques | Quantitative information about the valuation technique and significant unobservable inputs used in the valuation of the Company’s Level 3 financial assets measured at fair value on a nonrecurring basis consisted of the following (dollars in thousands):
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Stock-Based Compensation Plans (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share based Compensation Restricted Stock Awards, RSUs, Unrecognized Stock Based Compensation, Weighted Average Grant Date Fair Value per Share and Weighted Average Remaining Vesting Period [Table Text Block] | Activity under the 2013 Plan consisted of the following (dollars in thousands, except weighted average per share data):
|
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Stock-Based Compensation Expense | Components of stock-based compensation are included in selling, general and administrative expense in the condensed consolidated statements of net and comprehensive income and consisted of the following (in thousands):
|
Income Taxes (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Provision for Income Taxes and Income before Provision for Income Taxes | The provision for income taxes differs from the amount computed by applying the U.S. federal statutory rate to income before provision for income taxes and consisted of the following (dollars in thousands):
|
Earnings per Share (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share, Including Antidilutive Securities Excluded from Computation of Earnings Per Share | Basic and diluted earnings per share for the three and nine months ended September 30, 2021 and 2020, respectively consisted of the following (in thousands, except per share data):
|
Property and Equipment, Net - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation and amortization | $ (33,822) | $ (30,937) |
Property and equipment, net | 22,890 | 23,436 |
Computer software and hardware equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 32,766 | 30,955 |
Furniture, fixtures, and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 23,946 | $ 23,418 |
Property and Equipment, Net - Additional Information (Detail) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Property, Plant and Equipment [Abstract] | ||
Fully depreciated computer software and hardware equipment and furniture, fixtures and equipment write-off | $ 2,500,000 | $ 968,000 |
Property and equipment additions incurred but not yet paid | $ 786,000 | $ 430,000 |
Operating Leases - Additional Information (Detail) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 143.3 | $ 126.9 |
Operating lease right-of-use assets, accumulated amortization | $ 58.0 | $ 42.9 |
Operating Leases - Schedule of Operating Lease Cost, Included in Selling, General and Administrative Expense (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Operating lease cost: | ||||
Lease cost | $ 6,549 | $ 6,355 | $ 19,650 | $ 18,959 |
Variable lease cost | 1,355 | 1,485 | 3,996 | 4,096 |
Sublease income | (206) | (50) | (258) | (216) |
Total operating lease cost | $ 7,698 | $ 7,790 | $ 23,388 | $ 22,839 |
Operating Leases - Maturities of lease liabilities (Detail) $ in Thousands |
Sep. 30, 2021
USD ($)
|
---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Remainder of 2021 | $ 5,958 |
2022 | 20,560 |
2023 | 17,256 |
2024 | 14,769 |
2025 | 12,462 |
Thereafter | 15,603 |
Total future minimum lease payments | 86,608 |
Less imputed interest | (5,893) |
Present value of operating lease liabilities | $ 80,715 |
Operating Leases - Schedule of Supplemental Cash Flow Information and Noncash Activity Related to Operating Leases (Detail) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|||
Operating cash flow information: | ||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 17,697 | $ 15,566 | ||
Noncash activity: | ||||
ROU assets obtained in exchange for operating lease liabilities | 18,003 | 7,771 | ||
Tenant improvements owned by lessor related to ROU assets | [1] | $ 1,005 | $ 949 | |
|
Operating Leases - Schedule of Other Information Related to Operating Leases (Detail) |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases, Operating [Abstract] | ||
Weighted average remaining operating lease term | 4 years 8 months 15 days | 4 years 8 months 12 days |
Weighted average discount rate | 2.90% | 3.10% |
Investments in Marketable Debt Securities, Available for Sale - Gross Realized Gains and Losses from Sale of Available for Sale Securities (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains | $ 68 | $ 97 | $ 78 | $ 229 |
Gross realized losses | $ 0 | $ (34) | $ 0 | $ (49) |
Investments in Marketable Debt Securities, Available for Sale - Schedule of Amortized Cost and Fair Value of Marketable Securities, Available-for-Sale, by Contractual Maturity (Detail) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less, Amortized Cost | $ 116,852 | $ 158,148 |
Due after one year through five years, Amortized Cost | 112,288 | 30,604 |
Due after five years through ten years, Amortized Cost | 11,618 | 10,022 |
Due after ten years, Amortized Cost | 4,882 | 4,555 |
Amortized Cost | 245,640 | 203,329 |
Due in one year or less, Fair Value | 116,902 | 158,258 |
Due after one year through five years, Fair Value | 113,167 | 32,041 |
Due after five years through ten years, Fair Value | 12,334 | 11,044 |
Due after ten years, Fair Value | 5,001 | 4,688 |
Total Fair Value | $ 247,404 | $ 206,031 |
Weighted average contractual maturity | 1 year 10 months 24 days | 1 year 7 months 6 days |
Acquisitions, Goodwill and Other Intangible Assets - Additional Information (Detail) |
9 Months Ended |
---|---|
Sep. 30, 2021
USD ($)
Segment
| |
Number of reporting units | Segment | 1 |
Goodwill and Intangible Asset Impairment | $ | $ 0 |
Acquisitions, Goodwill and Other Intangible Assets - Summary of Goodwill and Intangible Assets (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill, gross carrying amount | $ 34,071 | $ 33,375 | ||
Intangible assets, gross carrying amount | 23,974 | 24,745 | ||
Goodwill and intangible assets, gross carrying amount, total | 58,045 | 58,120 | ||
Intangible assets, accumulated amortization | (9,071) | (6,067) | ||
Goodwill, net book value | 34,071 | 33,375 | $ 24,319 | $ 15,072 |
Intangible assets, net book value | 14,903 | 18,678 | ||
Goodwill and intangible assets, net book value | $ 48,974 | $ 52,053 |
Acquisitions, Goodwill and Other Intangible Assets - Summary of Goodwill and Intangible Assets (Parenthetical) (Detail) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Business Combinations [Abstract] | ||
Weighted average amortization intangible assets | 5 years 6 months 10 days | 5 years 6 months 25 days |
Acquisitions, Goodwill and Other Intangible Assets - Summary of Net Change in Carrying Value of Goodwill (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 33,375 | $ 15,072 |
Additions from acquisitions | 696 | 9,247 |
Impairment losses | 0 | 0 |
Ending balance | $ 34,071 | $ 24,319 |
Acquisitions, Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of 2021 | $ 869 | |
2022 | 3,474 | |
2023 | 3,407 | |
2024 | 2,891 | |
2025 | 2,671 | |
Thereafter | 1,591 | |
Total | $ 14,903 | $ 18,678 |
Selected Balance Sheet Data - Schedule of Advances and Loans, Net (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Advances And Loans and Commissions Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | $ 563 | $ 512 |
Credit loss (recovery) expense | 116 | 13 |
Write-offs | (60) | (50) |
Ending balance | 619 | 475 |
Beginning balance | 94 | |
Credit loss (recovery) expense | (91) | 42 |
Write-offs | 0 | 0 |
Ending balance | 3 | 74 |
Beginning balance | 657 | |
Credit loss recovery | 25 | 55 |
Write-offs | (60) | (50) |
Ending balance | $ 622 | 549 |
Accounting Standards Update 2016-13 [Member] | ||
Advances And Loans and Commissions Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 32 | |
Beginning balance | $ 544 |
Selected Balance Sheet Data - Schedule of Other Assets (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Other Assets [Line Items] | ||
Other assets Current | $ 4,436 | $ 4,711 |
Other assets Non-Current | 13,318 | 4,176 |
Mortgage servicing rights, net of amortization [Member] | ||
Other Assets [Line Items] | ||
Other assets Current | 0 | 0 |
Other assets Non-Current | 1,919 | 1,897 |
Security deposits [Member] | ||
Other Assets [Line Items] | ||
Other assets Current | 0 | 0 |
Other assets Non-Current | 1,445 | 1,461 |
Employee Notes Receivable [Member] | ||
Other Assets [Line Items] | ||
Other assets Current | 66 | 185 |
Other assets Non-Current | 0 | 246 |
Customer trust accounts and other [Member] | ||
Other Assets [Line Items] | ||
Other assets Current | 4,370 | 4,526 |
Other assets Non-Current | 454 | 572 |
Held-to-maturity Securities [Member] | ||
Other Assets [Line Items] | ||
Other assets Current | 0 | 0 |
Other assets Non-Current | $ 9,500 | $ 0 |
Selected Balance Sheet Data - Schedule of Other Assets (Parenthetical) (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Other Assets [Line Items] | ||
Reduction of accrued bonuses and other employee related expenses in settlement of employee notes receivable | $ 10 | $ 0 |
Selected Balance Sheet Data - Summary of Net Change in Carrying Value of MSRs (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Beginning balance | $ 1,897 | $ 2,002 |
Additions | 421 | 425 |
Amortization | (399) | (404) |
Ending balance | $ 1,919 | $ 2,023 |
Selected Balance Sheet Data - Components of Deferred Compensation and Commissions (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Deferred Compensation and Commissions [Line Items] | ||
Stock appreciation rights ("SARs") liability, current | $ 2,241 | $ 2,162 |
Commissions payable to investment sales and financing professionals, current | 49,175 | 54,082 |
Deferred compensation liability, current | 1,132 | 1,519 |
Other, current | 520 | 343 |
Deferred compensation and commissions, current | 53,068 | 58,106 |
Stock appreciation rights ("SARs") liability, non-current | 14,796 | 16,671 |
Commissions payable to investment sales and financing professionals, non-current | 17,012 | 15,306 |
Deferred compensation liability, non-current | 6,830 | 6,768 |
Other, non-current | 0 | 0 |
Deferred compensation and commissions, non-current | $ 38,638 | $ 38,745 |
Selected Balance Sheet Data - Summary of Net Change in Carrying Value of Assets Held in Rabbi Trust and Deferred Compensation Liability (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Balance Sheet Related Disclosures [Abstract] | ||||
(Decrease) increase in the carrying value of the assets held in the rabbi trust | $ (59) | $ 434 | $ 932 | $ 170 |
(Decrease) increase in the net carrying value of the deferred compensation obligation | $ (43) | $ 388 | $ 720 | $ 88 |
Selected Balance Sheet Data - Schedule of Other Liabilities (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Other Liabilities [Abstract] | ||
Deferred consideration | $ 5,809 | $ 8,582 |
Contingent consideration | 5,812 | 4,219 |
Other | 1,020 | 1,015 |
Other liabilities | $ 12,641 | $ 13,816 |
Selected Balance Sheet Data - Schedule of Other Liabilities (Parenthetical) (Detail) - Accounts payable and other liabilities [Member] - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Other liabilities [Line Items] | ||
Contingent consideration | $ 2,286 | $ 1,353 |
Deferred consideration current | $ 5,418 | $ 6,666 |
Fair Value Measurements - Schedule of Reconciliation of Contingent Consideration Measured at Fair Value on Recurring Basis (Detail) - Contingent Consideration [Member] - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | $ 5,572 | $ 3,387 |
Contingent consideration in connection with acquisitions | (100) | 1,800 |
Change in fair value of contingent consideration | 3,246 | 134 |
Payments of contingent consideration | (620) | (638) |
Ending balance | $ 8,098 | $ 4,683 |
Fair Value Measurements - Schedule of Fair Value Liabilities Measured On Non-Recurring Basis Valuation Techniques (Parenthetical) (Detail) |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Measurement Input, Constant Prepayment Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of fair value weighted average | 10 | 10 |
Fair Value Measurements - Additional Information (Detail) - USD ($) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value, assets, level 3 transfers, amount | $ 0 | $ 0 | |
Contingent and deferred consideration, maximum undiscounted payment | $ 30,300,000 | $ 33,200,000 | |
Recurring [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Earn-out period for contingent and deferred consideration | 6 years | ||
Recurring [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Earn-out period for contingent and deferred consideration | 1 year |
Stockholders' Equity - Additional Information (Detail) - USD ($) |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Equity [Abstract] | ||
Common stock, shares issued | 39,666,785 | 39,401,976 |
Common stock, shares outstanding | 39,666,785 | 39,401,976 |
Common stock share, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Undistributed earnings of foreign subsidiary | $ 0 | $ 0 |
Stock-Based Compensation Plans - 2013 Omnibus Equity Incentive Plan - Award Limitations - Additional Information (Detail) |
9 Months Ended |
---|---|
Sep. 30, 2021
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |
Common stock shares available for grant | shares | 4,672,675 |
Equity incentive plan amendment, shareholder approval date | 2017-05 |
Equity incentive plan amendment, board of directors approval date | 2017-02 |
Stock-Based Compensation Plans - 2013 Omnibus Equity Incentive Plan - Additional Information (Detail) |
9 Months Ended |
---|---|
Sep. 30, 2021
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vested shares | 258,454 |
2013 Omnibus Equity Incentive Plan [Member] | Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares issued under compensation plan | 0 |
Number of shares outstanding under compensation plan | 0 |
2013 Omnibus Equity Incentive Plan [Member] | Restricted Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
2013 Omnibus Equity Incentive Plan [Member] | Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 5 years |
Vested shares | 241,726 |
2013 Omnibus Equity Incentive Plan [Member] | SARs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares issued under compensation plan | 0 |
Number of shares outstanding under compensation plan | 0 |
2013 Omnibus Equity Incentive Plan [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares issued under compensation plan | 0 |
Number of shares outstanding under compensation plan | 0 |
2013 Omnibus Equity Incentive Plan [Member] | Performance Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares issued under compensation plan | 0 |
Number of shares outstanding under compensation plan | 0 |
2013 Omnibus Equity Incentive Plan [Member] | Deferred stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vested shares | 60,373 |
2013 Omnibus Equity Incentive Plan [Member] | Restricted Stock Units and Deferred Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of common stock shares withheld to pay employee statutory withholding taxes | 88,898 |
Stock-Based Compensation Plans - Outstanding Awards Under 2013 Omnibus Equity Incentive Plan (Detail) $ / shares in Units, $ in Thousands |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2021
USD ($)
$ / shares
shares
| ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nonvested shares at beginning | 918,379 | [1] | ||||
Granted | 363,532 | |||||
Vested | (258,454) | |||||
Transferred | 0 | |||||
Forfeited/canceled | (31,815) | |||||
Nonvested shares at ending | 991,642 | [1] | ||||
Unrecognized stock-based compensation expense as of September 30, 2021 | $ | $ 30,854 | [2] | ||||
Weighted average remaining vesting period (years) as of September 30, 2021 | 3 years 6 months 10 days | |||||
Nonvested weighted average grant date fair value per share, beginning balance | $ / shares | $ 33.73 | [1] | ||||
Weighted average grant date fair value per share, Granted | $ / shares | 38.74 | |||||
Weighted average grant date fair value per share, Vested | $ / shares | 31.93 | |||||
Weighted average grant date fair value per share, Transferred | $ / shares | 34.49 | |||||
Weighted average grant date fair value per share, Forfeited/canceled | $ / shares | 33.06 | |||||
Nonvested weighted average grant date fair value per share, ending balance | $ / shares | $ 35.52 | [1] | ||||
Restricted Stock Awards [Member] | Non-Employee Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nonvested shares at beginning | 16,728 | [1] | ||||
Granted | 12,492 | |||||
Vested | (16,728) | |||||
Transferred | 0 | |||||
Forfeited/canceled | 0 | |||||
Nonvested shares at ending | 12,492 | [1] | ||||
Unrecognized stock-based compensation expense as of September 30, 2021 | $ | $ 265 | [2] | ||||
Weighted average remaining vesting period (years) as of September 30, 2021 | 7 months 2 days | |||||
Restricted Stock Units [Member] | Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nonvested shares at beginning | 637,650 | [1] | ||||
Granted | 269,474 | |||||
Vested | (163,758) | |||||
Transferred | (9,057) | |||||
Forfeited/canceled | (25,470) | |||||
Nonvested shares at ending | 708,839 | [1] | ||||
Unrecognized stock-based compensation expense as of September 30, 2021 | $ | $ 22,090 | [2] | ||||
Weighted average remaining vesting period (years) as of September 30, 2021 | 3 years 7 months 6 days | |||||
Restricted Stock Units [Member] | Independent Contractors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nonvested shares at beginning | 264,001 | [1] | ||||
Granted | 81,566 | |||||
Vested | (77,968) | |||||
Transferred | 9,057 | |||||
Forfeited/canceled | (6,345) | |||||
Nonvested shares at ending | 270,311 | [1] | ||||
Unrecognized stock-based compensation expense as of September 30, 2021 | $ | $ 8,499 | [2] | ||||
Weighted average remaining vesting period (years) as of September 30, 2021 | 3 years 5 months 8 days | |||||
|
Stock-Based Compensation Plans - Outstanding Awards Under 2013 Omnibus Equity Incentive Plan (Parenthetical) (Detail) |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unrecognized stock-based compensation expenses recognition period | 3 years 6 months 10 days |
Stock-Based Compensation Plans - Employee Stock Purchase Plan - Additional Information (Detail) |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2021
USD ($)
shares
| ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock shares available for issuance | 4,672,675 | |||
Unrecognized stock-based compensation expense | $ | $ 30,854,000 | [1] | ||
Unrecognized stock-based compensation expenses recognition period | 3 years 6 months 10 days | |||
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
ESPP offering period description | The offering periods generally start on the first trading day on or after May 15 and November 15 of each year. | |||
Length of purchase intervals | 6 months | |||
ESPP discount rate | 10.00% | |||
Initial Common stock reserved | 366,667 | |||
Common stock shares available for issuance | 165,242 | |||
Unrecognized stock-based compensation expense | $ | $ 16,000 | |||
Unrecognized stock-based compensation expenses recognition period | 1 month 17 days | |||
Employee Stock Purchase Plan - Annual Available for Issuance Share Increase [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock available for future issuance authorized annual share increase | 366,667 | |||
Common stock available for future issuance authorized annual percentage increase | 1.00% | |||
ESPP description | The ESPP provides for annual increases in the number of shares available for issuance under the ESPP, equal to the least of (i) 366,667 shares, (ii) 1% of the outstanding shares on such date, or (iii) an amount determined by the compensation committee of the board of directors. | |||
|
Stock-Based Compensation Plans - Amendments to Restricted Stock and SARs - Additional Information (Detail) - Deferred stock units [Member] |
Nov. 05, 2013
shares
|
---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
DSU settlement to common stock percentage | 20.00% |
DSU settlement into actual stock issued term | 5 years |
Employee termination age | 67 years |
Percentage of shares of deferred stock units settled in the event of death or termination after reaching age 67 | 100.00% |
Share Based Compensation Arrangement By Share Based Payment Award Stock Appreciation Rights Offering Date | Mar. 31, 2013 |
Two Thousand And Thirteen Omnibus Equity Award Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fully Vested Deferred Stock Units Remaining Outstanding | 281,193 |
Stock-Based Compensation Plans - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 2,703 | $ 2,383 | $ 7,653 | $ 7,551 |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | 33 | 62 | 107 | 145 |
Restricted Stock Awards [Member] | Non-Employee Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | 114 | 120 | 338 | 493 |
Restricted Stock Units [Member] | Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | 1,731 | 1,413 | 4,932 | 4,583 |
Restricted Stock Units [Member] | Independent Contractors, Subsequent to Adoption of New Standard [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 825 | $ 788 | $ 2,276 | $ 2,330 |
Income Taxes - Components of Provision for Income Taxes and Income before Provision for Income Taxes (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax expense at the federal statutory rate, amount | $ 9,627 | $ 1,671 | $ 23,052 | $ 5,689 |
State income tax expense, net of federal benefit, amount | 2,111 | 453 | 5,157 | 1,403 |
(Windfall) shortfall tax benefits, net related to stock-based compensation, amount | (443) | 130 | (522) | 203 |
Change in valuation allowance, amount | 55 | 134 | 243 | 594 |
Permanent and other items, amount | 571 | (472) | 1,374 | (14) |
Provision for income taxes, amount | $ 11,921 | $ 1,916 | $ 29,304 | $ 7,875 |
Income tax expense at the federal statutory rate, rate | 21.00% | 21.00% | 21.00% | 21.00% |
State income tax expense, net of federal benefit, rate | 4.60% | 5.70% | 4.70% | 5.20% |
(Windfall) shortfall tax benefits, net related to stock-based compensation, rate | (1.00%) | 1.60% | (0.50%) | 0.70% |
Change in valuation allowance, rate | 0.10% | 1.70% | 0.20% | 2.20% |
Permanent and other items, rate | 1.30% | (5.90%) | 1.30% | 0.00% |
Provision for income taxes, rate | 26.00% | 24.10% | 26.70% | 29.10% |
Income Taxes - Additional Information (Detail) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Taxes [Line Items] | ||||
Provision for income taxes, rate | 26.00% | 24.10% | 26.70% | 29.10% |
Earnings per Share - Computation of Basic and Diluted Earnings Per Share, Including Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Numerator (Basic and Diluted): | ||||
Net income | $ 33,924 | $ 6,040 | $ 80,468 | $ 19,216 |
Change in value for stock settled consideration | (2) | 0 | 8 | 0 |
Adjusted net income | $ 33,922 | $ 6,040 | $ 80,476 | $ 19,216 |
Denominator: | ||||
Weighted Average Common Shares Issued and Outstanding | 39,634 | 39,357 | 39,539 | 39,293 |
Deduct: Unvested RSAs | (13) | (18) | (14) | (18) |
Add: Fully vested DSUs | 319 | 342 | 334 | 342 |
Weighted Average Common Shares Outstanding | 39,940 | 39,681 | 39,859 | 39,617 |
Basic earnings per common share | $ 0.85 | $ 0.15 | $ 2.02 | $ 0.49 |
Weighted Average Common Shares Outstanding from above | 39,940 | 39,681 | 39,859 | 39,617 |
Add: Dilutive effect of RSUs, RSAs & ESPP | 188 | 46 | 176 | 59 |
Add: Contingently issuable shares | 113 | 0 | 113 | 0 |
Weighted Average Common Shares Outstanding | 40,241 | 39,727 | 40,148 | 39,676 |
Diluted earnings per common share | $ 0.84 | $ 0.15 | $ 2.00 | $ 0.48 |
Antidilutive shares excluded from diluted earnings per common share | 112 | 696 | 363 | 719 |
Earnings per Share - Computation of Basic and Diluted Earnings Per Share, Including Antidilutive Securities Excluded from Computation of Earnings Per Share (Parenthetical) (Detail) |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Restricted Stock Awards [Member] | 2013 Omnibus Equity Incentive Plan [Member] | |
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |
Vesting period | 1 year |
Commitments and Contingencies - Additional Information Credit Agreement (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Line of Credit Facility [Line Items] | ||||
Senior secured revolving credit facility maximum borrowing capacity | $ 60,000,000.0 | $ 60,000,000.0 | ||
Revolving credit facility maturity date | Jun. 01, 2022 | |||
Date the company entered into a credit Agreement | Jun. 18, 2014 | |||
Credit agreement amended and restated date | May 28, 2019 | |||
Credit agreement date | Nov. 27, 2019 | |||
Standby letters of credit borrowing capacity | 10,000,000.0 | $ 10,000,000.0 | ||
Standby letters of credit, utilized amount | 533,000 | $ 533,000 | ||
Credit facility interest rate description | The Credit Facility includes a $10.0 million sublimit for the issuance of standby letters of credit of which $533,000 was utilized at September 30, 2021. Borrowings under the Credit Facility will bear interest, at the Company’s option, at either (i) a fluctuating rate per annum 2.00% below the Base Rate (defined as the highest of (a) the Bank’s prime rate, (b) one-month LIBOR plus 1.50%, and (c) the federal funds rate plus 1.50%), or (ii) at a fixed rate per annum determined by Bank to be between 0.875% to 1.125% above LIBOR. | |||
LIBOR rate duration period | 1 month | |||
Credit agreement, unused capacity, commitment fee percentage | 0.10% | |||
Interest expense | 144,000 | $ 199,000 | $ 436,000 | $ 695,000 |
Credit agreement, amount outstanding | 0 | $ 0 | ||
Credit facility covenants | (i) an EBITDAR Coverage Ratio (as defined in the Credit Agreement) of not less than 1.25:1.0 as of each quarter end, determined on a rolling four-quarter basis, and (ii) total funded debt to EBITDA not greater than 1.5:1.0 as of each quarter end, determined on a rolling four-quarter basis, and also limits investments in foreign entities and certain other loans. | |||
Minimum EBITDAR coverage ratio | 1.25% | |||
Maximum Total Funded Debt to EBITDA ratio | 1.5:1 | |||
Credit agreement, pledge percentage | 100.00% | |||
Compliance description | As of September 30, 2021, the Company was in compliance with all financial and non-financial covenants and has not experienced any limitation in its operations as a result of the covenants. | |||
Fluctuating rate per annum | 2.00% | |||
LIBOR [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Base spread on variable rate | 1.50% | |||
Federal Funds Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Base spread on variable rate | 1.50% | |||
Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit agreement date | Feb. 09, 2021 | |||
Interest expense | 21,000 | $ 22,000 | $ 65,000 | $ 65,000 |
Credit agreement, amount outstanding | $ 0 | $ 0 | ||
Minimum [Member] | LIBOR [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Base spread on variable rate | 0.875% | |||
Maximum [Member] | LIBOR [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Base spread on variable rate | 1.125% |
Commitments and Contingencies - Additional Information Other (Detail) $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Other commitment amount | $ 15.9 |
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