Financial Engines, Inc.

CIK:0001430592|SEC Filings

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue:
Professional management	$ 120,833	$ 106,908
Platform	6,256	6,894
Other	737	441
Total revenue	127,826	114,243
Costs and expenses:
Cost of revenue	55,067	51,561
Research and development	10,521	10,568
Sales and marketing	20,020	18,672
General and administrative	11,102	12,194
Amortization of intangible assets, including internal use software	4,434	4,163
Total costs and expenses	101,144	97,158
Income from operations	26,682	17,085
Interest income, net	836	67
Other income (expense), net	(59)	(128)
Income before income taxes	27,459	17,024
Income tax expense	9,915	4,385
Net and comprehensive income	$ 17,544	$ 12,639
Dividends declared per share of common stock	$ 0.08	$ 0.07
Net income per share attributable to holders of common stock
Basic	0.28	0.20
Diluted	$ 0.27	$ 0.20
Shares used to compute net income per share attributable to holders of common stock
Basic	63,213	62,445
Diluted	64,506	64,503

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 17,544	$ 12,639
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,321	2,118
Amortization of intangible assets	4,266	4,035
Stock-based compensation	8,443	8,426
Amortization of deferred sales commissions	318	317
Amortization of deferred sales bonus	54	75
Amortization of deferred setup costs	202	259
Amortization of discount on short-term investments	(81)	0
Provision for doubtful accounts	190	217
Deferred taxes	9,094	5,591
Loss on fixed asset disposal	9	123
Changes in operating assets and liabilities:
Accounts receivable	(1,128)	(7,963)
Prepaid expenses	(529)	(1,024)
Other assets	(342)	(1,605)
Accounts payable	1,189	(3,540)
Accrued compensation	(17,983)	(17,146)
Deferred revenue	(834)	(67)
Deferred rent	(358)	163
Other liabilities	(39)	12
Net cash provided by operating activities	22,336	2,630
Cash flows from investing activities:
Purchase of property and equipment	(2,709)	(998)
Capitalization of internal use software	(2,331)	(2,030)
Purchase of short-term investments	(66,491)	0
Net cash used in investing activities	(71,531)	(3,028)
Cash flows from financing activities:
Payments on capital lease obligations	(33)	(34)
Payments related to business combinations	(43)	(1,723)
Net share settlements for minimum tax withholdings	(4,023)	(3,239)
Proceeds from issuance of common stock	5,445	13,241
Cash dividend payments	(4,446)	(4,351)
Net cash (used in) provided by financing activities	(3,100)	3,894
Net (decrease) increase in cash and cash equivalents	(52,295)	3,496
Cash and cash equivalents, beginning of period	224,543	134,246
Cash and cash equivalents, end of period	172,248	137,742
Supplemental cash flows information:
Income taxes paid, net of refunds	208	131
Interest paid	24	13
Non-cash operating, investing and financing activities:
Unpaid purchases of property and equipment	743	440
Purchase of property and equipment under capital lease	26	221
Capitalized stock-based compensation for internal use software	222	180
Dividends declared but not yet paid	$ 5,076	$ 4,396

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 172,248	$ 224,543
Short-term investments	66,571	0
Accounts receivable, net	116,541	115,603
Prepaid expenses	9,688	9,159
Other current assets	6,087	6,169
Total current assets	371,135	355,474
Property and equipment, net	25,663	25,880
Intangible assets, net	196,164	198,045
Goodwill	312,020	312,020
Long-term deferred tax assets	19,505	28,599
Other assets	6,243	6,391
Total assets	930,730	926,409
Current liabilities:
Accounts payable	30,422	29,855
Accrued compensation	10,592	28,575
Deferred revenue	3,372	4,204
Dividend payable	5,076	4,411
Other current liabilities	2,475	2,457
Total current liabilities	51,937	69,502
Long-term deferred rent	10,294	10,720
Other liabilities	418	459
Total liabilities	62,649	80,681
Contingencies (see Note 9)	0	0
Stockholders’ equity:
Preferred stock, $0.0001 par value - 10,000 authorized as of March 31, 2018 and December 31, 2017; None issued or outstanding as of March 31, 2018 and December 31, 2017	0	0
Common stock, $0.0001 par value - 500,000 authorized as of March 31, 2018 and December 31, 2017; 65,168 and 64,725 shares issued and 63,492 and 63,049 shares outstanding as of March 31, 2018 and December 31, 2017, respectively	6	6
Additional paid-in capital	848,381	838,461
Treasury stock, at cost (1,677 shares and 1,677 shares as of March 31, 2018 and December 31, 2017, respectively)	(58,437)	(58,437)
Retained Earnings	78,131	65,698
Total stockholders’ equity	868,081	845,728
Total liabilities and stockholders’ equity	$ 930,730	$ 926,409