Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Restrictions on cash and cash equivalents

The following is a reconciliation of our cash and restricted cash balances as presented in the consolidated statement of cash flows for the years ended December 31, 2019 and 2018 (in thousands):

	December 31, 2019
	2019		2018
Cash and cash equivalents	$	14,337	$	18,635
Restricted cash	923		376
Cash and cash equivalents, and restricted cash	$	15,260	$	19,011

Impact of adopting the revenue recognition standard

The following tables summarize the impacts of adopting the revenue recognition standard on the Company’s consolidated financial statements:

(in thousands)	Legacy GAAP	Adjustments due to Topic 606	As Reported
Consolidated Statement of Income
Year Ended December 31, 2019
Revenues:
Commissions and agency fees	50,164	(3,798)	46,366
Franchise revenues	33,309	(2,806)	30,503
Expenses:
Employee compensation and benefits	41,838	(123)	41,715
Bad debts	1,817	(1,092)	725
Income taxes	1,758	(454)	1,304
Net income	15,326	(4,944)	10,382
Earnings per share:
Basic	0.36	(0.12)	0.24
Diluted	0.33	(0.11)	0.22

(in thousands)	Legacy GAAP	Adjustments due to Topic 606	As Reported
Consolidated Balance Sheet
December 31, 2019
Assets:
Commissions and agency fees receivable, net	2,241	4,643	6,884
Receivable from franchisees, net	3,880	9,736	13,616
Deferred income taxes, net	15,217	320	15,537
Other assets	156	1,201	1,357
Liabilities:
Accounts payable and accrued expenses	5,138	(105)	5,033
Unearned revenue	515	(515)	—
Contract liabilities	—	22,795	22,795
Liabilities under tax receivable agreement	13,336	23	13,359
Stockholders' Equity(1):
Accumulated Deficit	(21,427)	(2,384)	(23,811)
Non-controlling interests	(18,152)	(3,848)	(22,000)
Total equity	(24,768)	(6,239)	(31,007)