![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Tyler Technologies Corp | NYSE:TYL | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
8.01 | 1.54% | 528.92 | 528.95 | 517.90 | 521.65 | 152,722 | 21:03:45 |
|
x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
DELAWARE
|
75-2303920
|
(State or other jurisdiction of incorporation
or organization)
|
(I.R.S. employer
identification no.)
|
5101 Tennyson Parkway
Plano, Texas
|
75024
|
(Address of principal executive offices)
|
(Zip code)
|
Title of each class
|
Name of each exchange
on which registered
|
COMMON STOCK, $0.01 PAR VALUE
|
NEW YORK STOCK EXCHANGE
|
Large accelerated filer
|
|
x
|
Accelerated filer
|
|
¨
|
|
|
|
|
|
|
Non-accelerated filer
|
|
¨
(Do not check if a smaller reporting company)
|
Smaller Reporting Company
|
|
¨
|
|
|
|
PAGE
|
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 1B.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
Item 7.
|
||
|
|
|
Item 7A.
|
||
|
|
|
Item 8.
|
||
|
|
|
Item 9.
|
||
|
|
|
Item 9A.
|
||
|
|
|
Item 9B.
|
||
|
|
|
|
|
|
Item 10.
|
||
|
|
|
Item 11.
|
||
|
|
|
Item 12.
|
||
|
|
|
Item 13.
|
||
|
|
|
Item 14.
|
||
|
|
|
|
|
|
|
|
|
Item 15.
|
||
|
|
|
ITEM 1.
|
BUSINESS.
|
•
|
Sales of software licenses and royalties
|
•
|
Subscription-based arrangements
|
•
|
Software services
|
•
|
Maintenance and support
|
•
|
Appraisal services
|
•
|
Financial Management and Education
|
•
|
Courts and Justice
|
•
|
Public Safety
|
•
|
Property Appraisal and Tax
|
•
|
Planning, Regulatory and Maintenance
|
•
|
Land and Vital Records Management
|
•
|
The physical inspection of commercial and residential properties
|
•
|
Data collection and processing
|
•
|
Sophisticated computer analyses for property valuation
|
•
|
Preparation of tax rolls
|
•
|
Community education regarding the assessment process
|
•
|
Arbitration between taxpayers and the assessing jurisdiction
|
•
|
New products and services to complement our existing offerings
|
•
|
Entry into new markets related to local governments
|
•
|
New clients and/or geographic expansion
|
ITEM 1A.
|
RISK FACTORS.
|
•
|
Resource limitations caused by budgetary constraints, which may provide for a termination of executed contracts due to a lack of future funding
|
•
|
Long and complex sales cycles
|
•
|
Contract payments at times being subject to achieving implementation milestones, and we may have differences with clients as to whether milestones have been achieved
|
•
|
Political resistance to the concept of contracting with third-parties to provide IT solutions
|
•
|
Legislative changes affecting a local government’s authority to contract with third-parties
|
•
|
Varying bid procedures and internal processes for bid acceptance
|
•
|
Various other political factors, including changes in governmental administrations and personnel
|
•
|
The attractiveness of our “evergreen” business strategy
|
•
|
The breadth, depth, and quality of our product and service offerings
|
•
|
The ability to modify our offerings to accommodate particular clients’ needs
|
•
|
Technological innovation
|
•
|
Name recognition
|
•
|
Price
|
•
|
Our financial strength and stability
|
•
|
The failure to accurately estimate the resources and time required for an engagement
|
•
|
The failure to effectively manage our clients’ expectations regarding the scope of services delivered for a fixed fee
|
•
|
The failure to timely and satisfactorily complete fixed-price engagements within budget
|
•
|
License agreements include applications that are under development or other undelivered elements
|
•
|
Client contracts require the delivery of services considered essential to the functionality of the software, including significant modifications, customization, or complex interfaces, that could delay product delivery or acceptance
|
•
|
The transaction involves customer acceptance criteria with a right to refund
|
•
|
The transaction involves contingent payment terms or fees
|
•
|
We are required to accept a fixed-fee services contract
|
•
|
We are required to provide extended payment terms
|
•
|
Prospective clients’ contracting decisions are often made in the last few weeks of a quarter
|
•
|
The size of license transactions can vary significantly
|
•
|
Clients may unexpectedly postpone or cancel procurement processes due to changes in strategic priorities, project objectives, budget, or personnel
|
•
|
Client purchasing processes vary significantly and a client’s internal approval, expenditure authorization, and contract negotiation processes can be difficult and time consuming to complete, even after selection of a vendor
|
•
|
The number, timing, and significance of software product enhancements and new software product announcements by us and our competitors may affect purchase decisions
|
•
|
We may have to defer revenues under our revenue recognition policies
|
•
|
Clients may elect subscription-based arrangements, which result in lower software license revenues in the initial year as compared to traditional, on-premise software license arrangements, but generate higher overall subscription-based revenues over the term of the contract
|
•
|
Actual or anticipated fluctuations in our operating results
|
•
|
Announcements of technological innovations, new products, or new contracts by us or our competitors
|
•
|
Developments with respect to patents, copyrights, or other proprietary rights
|
•
|
Conditions and trends in the software and other technology industries
|
•
|
Adoption of new accounting standards affecting the software industry
|
•
|
Changes in financial estimates by securities analysts
|
•
|
General market conditions and other factors
|
ITEM 2.
|
PROPERTIES.
|
ITEM 3.
|
LEGAL PROCEEDINGS.
|
ITEM 4.
|
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
|
ITEM 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
|
|
|
High
|
|
Low
|
||||
2015:
|
First Quarter
|
$
|
125.84
|
|
|
$
|
103.18
|
|
|
Second Quarter
|
133.54
|
|
|
118.05
|
|
||
|
Third Quarter
|
152.91
|
|
|
127.25
|
|
||
|
Fourth Quarter
|
184.01
|
|
|
150.00
|
|
||
|
|
|
|
|
||||
2016
|
First Quarter
|
$
|
172.50
|
|
|
$
|
118.16
|
|
|
Second Quarter
|
168.19
|
|
|
126.70
|
|
||
|
Third Quarter
|
175.77
|
|
|
159.24
|
|
||
|
Fourth Quarter
|
172.24
|
|
|
139.61
|
|
||
|
|
|
|
|
||||
2017:
|
First Quarter (through February 21, 2017)
|
$
|
166.86
|
|
|
$
|
142.75
|
|
|
Number of securities to
be issued upon exercise
of outstanding options,
warrants and rights as of
December 31, 2016
|
|
Weighted average
exercise price of outstanding options,
warrants and rights
|
|
Number of securities remaining available for
future issuance under
equity compensation
plans (excluding securities reflected in initial column
as of December 31, 2016)
|
||||
Plan Category
|
|
|
|
|
|
||||
Equity compensation plans
approved by security
shareholders:
|
|
|
|
|
|
||||
Stock option plan
|
5,155,437
|
|
|
$
|
83.64
|
|
|
2,902,978
|
|
Employee stock purchase plan
|
13,592
|
|
|
121.35
|
|
|
846,727
|
|
|
Equity compensation plans not
approved by security
shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
|
5,169,029
|
|
|
$
|
83.74
|
|
|
3,749,705
|
|
Period
|
|
Total number of shares repurchased
|
|
Additional number of shares authorized that may be repurchased
|
|
Average price paid per share
|
|
Maximum number of shares that may be repurchased under current authorization
|
|||||
Three months ended March 31
|
|
757,000
|
|
|
|
|
$
|
124.75
|
|
|
643,000
|
|
|
Additional authorization by the board of directors
|
|
—
|
|
|
1,500,000
|
|
|
—
|
|
|
2,143,000
|
|
|
Three months ended June 30
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,143,000
|
|
|
Three months ended September 30
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,143,000
|
|
|
October 1 through October 31
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,143,000
|
|
|
November 1 through November 30
|
|
37,000
|
|
|
—
|
|
|
149.53
|
|
|
2,106,000
|
|
|
December 1 through December 31
|
|
88,000
|
|
|
—
|
|
|
144.57
|
|
|
2,018,000
|
|
|
|
|
882,000
|
|
|
1,500,000
|
|
|
$
|
127.75
|
|
|
|
Company / Index
|
12/31/11
|
|
|
12/31/12
|
|
|
12/31/13
|
|
|
12/31/14
|
|
|
12/31/15
|
|
|
12/31/16
|
|
Tyler Technologies, Inc.
|
100
|
|
|
160.88
|
|
|
339.19
|
|
|
363.47
|
|
|
578.94
|
|
|
474.16
|
|
S&P 500 Stock Index
|
100
|
|
|
116.00
|
|
|
153.57
|
|
|
174.60
|
|
|
177.01
|
|
|
198.18
|
|
S&P 600 Information Technology Index
|
100
|
|
|
112.02
|
|
|
162.33
|
|
|
183.91
|
|
|
192.46
|
|
|
257.61
|
|
|
FOR THE YEARS ENDED DECEMBER 31,
|
||||||||||||||||||
|
2016
|
|
2015 (b)
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
STATEMENT OF OPERATIONS DATA:
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
756,043
|
|
|
$
|
591,022
|
|
|
$
|
493,101
|
|
|
$
|
416,643
|
|
|
$
|
363,304
|
|
Cost and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenues
|
400,692
|
|
|
313,835
|
|
|
259,730
|
|
|
223,440
|
|
|
195,602
|
|
|||||
Selling, general and administrative expenses
|
167,161
|
|
|
133,317
|
|
|
108,260
|
|
|
98,289
|
|
|
86,706
|
|
|||||
Research and development expense
|
43,154
|
|
|
29,922
|
|
|
25,743
|
|
|
23,269
|
|
|
20,140
|
|
|||||
Amortization of customer and trade name intangibles
|
13,731
|
|
|
5,905
|
|
|
4,546
|
|
|
4,517
|
|
|
4,279
|
|
|||||
Operating income
|
131,305
|
|
|
108,043
|
|
|
94,822
|
|
|
67,128
|
|
|
56,577
|
|
|||||
Other (expenses) income, net
|
(1,998
|
)
|
|
381
|
|
|
(355
|
)
|
|
(1,309
|
)
|
|
(2,709
|
)
|
|||||
Income before income taxes
|
129,307
|
|
|
108,424
|
|
|
94,467
|
|
|
65,819
|
|
|
53,868
|
|
|||||
Income tax provision (a)
|
19,450
|
|
|
43,555
|
|
|
35,527
|
|
|
26,718
|
|
|
20,874
|
|
|||||
Net income
|
109,857
|
|
|
64,869
|
|
|
58,940
|
|
|
39,101
|
|
|
32,994
|
|
|||||
Net earnings per diluted share
|
$
|
2.82
|
|
|
$
|
1.77
|
|
|
$
|
1.66
|
|
|
$
|
1.13
|
|
|
$
|
1.00
|
|
Weighted average diluted shares (a)
|
38,961
|
|
|
36,552
|
|
|
35,401
|
|
|
34,590
|
|
|
32,916
|
|
|||||
STATEMENT OF CASH FLOWS DATA:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows provided by operating activities (a)
|
$
|
191,859
|
|
|
$
|
134,327
|
|
|
$
|
142,839
|
|
|
$
|
94,297
|
|
|
$
|
67,432
|
|
Cash flows used by investing activities
|
(50,720
|
)
|
|
(398,459
|
)
|
|
(11,555
|
)
|
|
(25,658
|
)
|
|
(34,736
|
)
|
|||||
Cash flows (used) provided by financing activities (a)
|
(138,075
|
)
|
|
91,052
|
|
|
(3,993
|
)
|
|
3,831
|
|
|
(27,616
|
)
|
|||||
BALANCE SHEET DATA:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
1,357,945
|
|
|
$
|
1,356,570
|
|
|
$
|
569,812
|
|
|
$
|
444,488
|
|
|
$
|
338,666
|
|
Revolving line of credit
|
10,000
|
|
|
66,000
|
|
|
—
|
|
|
—
|
|
|
18,000
|
|
|||||
Shareholders' equity
|
915,525
|
|
|
858,857
|
|
|
336,973
|
|
|
246,319
|
|
|
145,299
|
|
ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
|
•
|
The standard eliminates additional paid in capital ("APIC") pools and requires excess tax benefits and tax deficiencies to be recorded in the income statement as a discrete item when the awards vest or are settled. The adoption of this guidance on a prospective basis resulted in the recognition of excess tax benefits in our provision for income taxes.
|
•
|
The standard requires excess tax benefits to be recognized regardless of whether the benefit reduces taxes payable. The adoption of this guidance is applied on a modified retrospective basis; however, it did not have an impact on our retained earnings as of January 1, 2016, as we had previously recognized all our excess tax benefits.
|
•
|
As permitted, we have elected to continue to estimate forfeitures expected to occur to determine the amount of stock-based compensation cost to be recognized in each period. As such, the guidance relating to forfeitures did not have an impact on our retained earnings as of January 1, 2016.
|
•
|
The new guidance changes the calculation of common stock equivalents for earnings per share purposes.
|
•
|
As permitted, we elected to apply the statement of cash flows guidance that cash flows related to excess tax benefits be presented as an operating activity retrospectively.
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||
|
March 31, 2016
|
|
June 30, 2016
|
|
September 30, 2016
|
||||||||||||||||||
(In thousands, except per share amounts)
|
As Reported
|
|
As Adjusted
|
|
As Reported
|
|
As Adjusted
|
|
As Reported
|
|
As Adjusted
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income statements:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax provision
|
$
|
10,495
|
|
|
$
|
9,350
|
|
|
$
|
11,323
|
|
|
$
|
5,188
|
|
|
$
|
14,155
|
|
|
$
|
989
|
|
Net income
|
$
|
17,079
|
|
|
$
|
18,224
|
|
|
$
|
18,872
|
|
|
$
|
25,007
|
|
|
$
|
22,264
|
|
|
$
|
35,430
|
|
Basic earnings per common share
|
$
|
0.47
|
|
|
$
|
0.50
|
|
|
$
|
0.52
|
|
|
$
|
0.69
|
|
|
$
|
0.61
|
|
|
$
|
0.97
|
|
Diluted earnings per common share
|
$
|
0.44
|
|
|
$
|
0.47
|
|
|
$
|
0.49
|
|
|
$
|
0.65
|
|
|
$
|
0.58
|
|
|
$
|
0.91
|
|
Diluted weighted average common shares outstanding
|
38,557
|
|
|
39,071
|
|
|
38,196
|
|
|
38,738
|
|
|
38,506
|
|
|
39,062
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Statement of cash flows:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by operating activities
|
$
|
40,270
|
|
|
$
|
41,321
|
|
|
$
|
13,877
|
|
|
$
|
19,520
|
|
|
$
|
67,091
|
|
|
$
|
79,213
|
|
Net cash (used) provided by financing activities
|
$
|
(15,860
|
)
|
|
$
|
(16,911
|
)
|
|
$
|
5,668
|
|
|
$
|
25
|
|
|
$
|
(77,973
|
)
|
|
$
|
(90,095
|
)
|
•
|
A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and
|
•
|
A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.
|
|
Percentage of Total Revenues
Years Ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Revenues:
|
|
|
|
|
|
|||
Software licenses and royalties
|
9.8
|
%
|
|
10.0
|
%
|
|
10.0
|
%
|
Subscriptions
|
18.9
|
|
|
18.9
|
|
|
17.8
|
|
Software services
|
23.1
|
|
|
23.7
|
|
|
23.1
|
|
Maintenance
|
42.7
|
|
|
41.6
|
|
|
43.1
|
|
Appraisal services
|
3.5
|
|
|
4.2
|
|
|
4.4
|
|
Hardware and other
|
2.0
|
|
|
1.6
|
|
|
1.6
|
|
Total revenues
|
100.0
|
|
|
100.0
|
|
|
100.0
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
Cost of software licenses, royalties and
acquired software
|
3.3
|
|
|
1.0
|
|
|
0.8
|
|
Cost of software services, maintenance
and subscriptions
|
46.2
|
|
|
48.2
|
|
|
47.9
|
|
Cost of appraisal services
|
2.2
|
|
|
2.7
|
|
|
2.9
|
|
Cost of hardware and other
|
1.3
|
|
|
1.1
|
|
|
1.1
|
|
Selling, general and administrative expenses
|
22.1
|
|
|
22.6
|
|
|
22.0
|
|
Research and development expense
|
5.7
|
|
|
5.1
|
|
|
5.2
|
|
Amortization of customer and trade name
intangibles
|
1.8
|
|
|
1.0
|
|
|
0.9
|
|
Operating income
|
17.4
|
|
|
18.3
|
|
|
19.2
|
|
Other (expense) income, net
|
(0.3
|
)
|
|
0.1
|
|
|
(0.1
|
)
|
Income before income taxes
|
17.1
|
|
|
18.4
|
|
|
19.1
|
|
Income tax provision
|
2.6
|
|
|
7.4
|
|
|
7.2
|
|
Net income
|
14.5
|
%
|
|
11.0
|
%
|
|
11.9
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
ES
|
|
$
|
68,844
|
|
|
$
|
54,376
|
|
|
$
|
14,468
|
|
|
27
|
%
|
A&T
|
|
5,462
|
|
|
4,632
|
|
|
830
|
|
|
18
|
|
|||
Total software licenses and royalties revenue
|
|
$
|
74,306
|
|
|
$
|
59,008
|
|
|
$
|
15,298
|
|
|
26
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
ES
|
|
$
|
135,516
|
|
|
$
|
107,090
|
|
|
$
|
28,426
|
|
|
27
|
%
|
A&T
|
|
7,188
|
|
|
4,843
|
|
|
2,345
|
|
|
48
|
|
|||
Total subscriptions revenue
|
|
$
|
142,704
|
|
|
$
|
111,933
|
|
|
$
|
30,771
|
|
|
27
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
ES
|
|
$
|
158,478
|
|
|
$
|
129,068
|
|
|
$
|
29,410
|
|
|
23
|
%
|
A&T
|
|
16,326
|
|
|
10,784
|
|
|
5,542
|
|
|
51
|
|
|||
Total software services revenue
|
|
$
|
174,804
|
|
|
$
|
139,852
|
|
|
$
|
34,952
|
|
|
25
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
ES
|
|
$
|
304,380
|
|
|
$
|
227,586
|
|
|
$
|
76,794
|
|
|
34
|
%
|
A&T
|
|
18,589
|
|
|
17,951
|
|
|
638
|
|
|
4
|
|
|||
Total maintenance revenue
|
|
$
|
322,969
|
|
|
$
|
245,537
|
|
|
$
|
77,432
|
|
|
32
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
ES
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
A&T
|
|
26,287
|
|
|
25,065
|
|
|
1,222
|
|
|
5
|
|
|||
Total appraisal services revenue
|
|
$
|
26,287
|
|
|
$
|
25,065
|
|
|
$
|
1,222
|
|
|
5
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
Software licenses and royalties
|
|
$
|
2,964
|
|
|
$
|
1,632
|
|
|
$
|
1,332
|
|
|
82
|
%
|
Acquired software
|
|
22,235
|
|
|
4,440
|
|
|
17,795
|
|
|
N/M
|
|
|||
Software services, maintenance and subscriptions
|
|
348,939
|
|
|
285,340
|
|
|
63,599
|
|
|
22
|
|
|||
Appraisal services
|
|
16,411
|
|
|
15,922
|
|
|
489
|
|
|
3
|
|
|||
Hardware and other
|
|
10,143
|
|
|
6,501
|
|
|
3,642
|
|
|
56
|
|
|||
Total cost of revenues
|
|
$
|
400,692
|
|
|
$
|
313,835
|
|
|
$
|
86,857
|
|
|
28
|
%
|
Gross margin percentage
|
|
2016
|
|
2015
|
|
Change
|
|||
Software licenses, royalties and acquired software
|
|
66.1
|
%
|
|
89.7
|
%
|
|
(23.6
|
)%
|
Software services, maintenance and subscriptions
|
|
45.5
|
|
|
42.6
|
|
|
2.9
|
|
Appraisal services
|
|
37.6
|
|
|
36.5
|
|
|
1.1
|
|
Hardware and other
|
|
32.3
|
|
|
32.5
|
|
|
(0.2
|
)
|
Overall gross margin
|
|
47.0
|
%
|
|
46.9
|
%
|
|
0.1
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
Selling, general and administrative expenses
|
|
$
|
167,161
|
|
|
$
|
133,317
|
|
|
$
|
33,844
|
|
|
25
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
Research and development expense
|
|
$
|
43,154
|
|
|
$
|
29,922
|
|
|
$
|
13,232
|
|
|
44
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
Amortization of customer and trade name intangibles
|
|
$
|
13,731
|
|
|
$
|
5,905
|
|
|
$
|
7,826
|
|
|
133
|
%
|
2017
|
$
|
13,808
|
|
2018
|
13,658
|
|
|
2019
|
12,395
|
|
|
2020
|
11,241
|
|
|
2021
|
11,121
|
|
|
|
|
|
Change
|
||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
$
|
|
%
|
||||||
Other (expense) income, net
|
|
$
|
(1,998
|
)
|
|
$
|
381
|
|
|
$
|
(2,379
|
)
|
|
N/M
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
Income tax provision
|
|
$
|
19,450
|
|
|
$
|
43,555
|
|
|
$
|
(24,105
|
)
|
|
(55
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Effective income tax rate
|
|
15.0
|
%
|
|
40.2
|
%
|
|
|
|
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
ES
|
|
$
|
54,376
|
|
|
$
|
46,047
|
|
|
$
|
8,329
|
|
|
18
|
%
|
A&T
|
|
4,632
|
|
|
3,018
|
|
|
1,614
|
|
|
53
|
|
|||
Total software licenses and royalties revenue
|
|
$
|
59,008
|
|
|
$
|
49,065
|
|
|
$
|
9,943
|
|
|
20
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
ES
|
|
$
|
107,090
|
|
|
$
|
84,322
|
|
|
$
|
22,768
|
|
|
27
|
%
|
A&T
|
|
4,843
|
|
|
3,526
|
|
|
1,317
|
|
|
37
|
|
|||
Total subscriptions revenue
|
|
$
|
111,933
|
|
|
$
|
87,848
|
|
|
$
|
24,085
|
|
|
27
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
ES
|
|
$
|
129,068
|
|
|
$
|
104,146
|
|
|
$
|
24,922
|
|
|
24
|
%
|
A&T
|
|
10,784
|
|
|
9,675
|
|
|
1,109
|
|
|
11
|
|
|||
Total software services revenue
|
|
$
|
139,852
|
|
|
$
|
113,821
|
|
|
$
|
26,031
|
|
|
23
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
ES
|
|
$
|
227,586
|
|
|
$
|
195,881
|
|
|
$
|
31,705
|
|
|
16
|
%
|
A&T
|
|
17,951
|
|
|
16,815
|
|
|
1,136
|
|
|
7
|
|
|||
Total maintenance revenue
|
|
$
|
245,537
|
|
|
$
|
212,696
|
|
|
$
|
32,841
|
|
|
15
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
ES
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
A&T
|
|
25,065
|
|
|
21,802
|
|
|
3,263
|
|
|
15
|
|
|||
Total appraisal services revenue
|
|
$
|
25,065
|
|
|
$
|
21,802
|
|
|
$
|
3,263
|
|
|
15
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
Software licenses and royalties
|
|
$
|
1,632
|
|
|
$
|
1,900
|
|
|
$
|
(268
|
)
|
|
(14
|
)%
|
Acquired software
|
|
4,440
|
|
|
1,858
|
|
|
2,582
|
|
|
139
|
|
|||
Software services, maintenance and subscriptions
|
|
285,340
|
|
|
236,363
|
|
|
48,977
|
|
|
21
|
|
|||
Appraisal services
|
|
15,922
|
|
|
14,284
|
|
|
1,638
|
|
|
11
|
|
|||
Hardware and other
|
|
6,501
|
|
|
5,325
|
|
|
1,176
|
|
|
22
|
|
|||
Total cost of revenues
|
|
$
|
313,835
|
|
|
$
|
259,730
|
|
|
$
|
54,105
|
|
|
21
|
%
|
Gross margin percentage
|
|
2015
|
|
2014
|
|
Change
|
|||
Software licenses, royalties and acquired software
|
|
89.7
|
%
|
|
92.3
|
%
|
|
(2.6
|
)%
|
Software services, maintenance and subscriptions
|
|
42.6
|
|
|
43.0
|
|
|
(0.4
|
)
|
Appraisal services
|
|
36.5
|
|
|
34.5
|
|
|
2.0
|
|
Hardware and other
|
|
32.5
|
|
|
32.3
|
|
|
0.2
|
|
Overall gross margin
|
|
46.9
|
%
|
|
47.3
|
%
|
|
(0.4
|
)%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
Selling, general and administrative expenses
|
|
$
|
133,317
|
|
|
$
|
108,260
|
|
|
$
|
25,057
|
|
|
23
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
Research and development expense
|
|
$
|
29,922
|
|
|
$
|
25,743
|
|
|
$
|
4,179
|
|
|
16
|
%
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
Amortization of customer and trade name intangibles
|
|
$
|
5,905
|
|
|
$
|
4,546
|
|
|
$
|
1,359
|
|
|
30
|
%
|
|
|
|
|
Change
|
||||||||||
($ in thousands)
|
|
2015
|
|
2014
|
|
$
|
|
%
|
||||||
Other income (expense), net
|
|
$
|
381
|
|
|
$
|
(355
|
)
|
|
$
|
736
|
|
|
N/M
|
|
|
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
Income tax provision
|
|
$
|
43,555
|
|
|
$
|
35,527
|
|
|
$
|
8,028
|
|
|
23
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Effective income tax rate
|
|
40.2
|
%
|
|
37.6
|
%
|
|
|
|
|
($ in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Cash flows provided (used) by:
|
|
|
|
|
|
|
||||||
Operating activities
|
|
$
|
191,859
|
|
|
$
|
134,327
|
|
|
$
|
142,839
|
|
Investing activities
|
|
(50,720
|
)
|
|
(398,459
|
)
|
|
(11,555
|
)
|
|||
Financing activities
|
|
(138,075
|
)
|
|
91,052
|
|
|
(3,993
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
$
|
3,064
|
|
|
$
|
(173,080
|
)
|
|
$
|
127,291
|
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
Thereafter
|
|
Total
|
||||||||||||||
Revolving line of credit
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,000
|
|
Lease obligations
|
5,177
|
|
|
4,221
|
|
|
3,556
|
|
|
3,273
|
|
|
2,059
|
|
|
601
|
|
|
18,887
|
|
|||||||
Total future payment obligations
|
$
|
5,177
|
|
|
$
|
4,221
|
|
|
$
|
3,556
|
|
|
$
|
13,273
|
|
|
$
|
2,059
|
|
|
$
|
601
|
|
|
$
|
28,887
|
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
|
ITEM 9A.
|
CONTROLS AND PROCEDURES.
|
ITEM 9B.
|
OTHER INFORMATION.
|
|
|
Headings in Proxy Statement
|
|
|
|
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE.
|
|
“Tyler Management” and “Corporate Governance Principles and Board Matters”
|
|
|
|
ITEM 11. EXECUTIVE COMPENSATION.
|
|
“Executive Compensation”
|
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
|
|
“Security Ownership of Certain Beneficial Owners and Management”
|
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
|
|
"Executive Compensation" and
“Certain Relationships and Related Transactions”
|
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.
|
|
|
The information required under this item may be found under the section captioned “Proposals For Consideration – Proposal Two – Ratification of Our Independent Auditors for Fiscal Year 2017” in our Proxy Statement and is incorporated herein by reference.
|
(a)
|
|
(1
|
)
|
|
The financial statements are filed as part of this Annual Report.
|
|
|
|
|
|
|
|
|
Page
|
|
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
(2
|
)
|
|
Financial statement schedules:
|
|
|
|
|
|
|
There are no financial statement schedules filed as part of this Annual Report, since the required information is included in the financial statements, including the notes thereto, or the circumstances requiring inclusion of such schedules are not present.
|
|
|
|
|
|
(3
|
)
|
|
Exhibits
|
|
|
|
|
|
|
Certain of the exhibits to this Annual Report are hereby incorporated by reference, as specified:
|
|
|
Exhibit
Number
|
|
Description
|
3.1
|
|
Restated Certificate of Incorporation of Tyler Three, as amended through May 14, 1990, and Certificate of Designation of Series A Junior Participating Preferred Stock (filed as Exhibit 3.1 to our Form 10-Q for the quarter ended June 30, 1990, and incorporated by reference herein).
|
3.2
|
|
Certificate of Amendment to the Restated Certificate of Incorporation (filed as Exhibit 3.1 to our Form 8-K, dated February 19, 1998, and incorporated by reference herein).
|
3.3
|
|
Amended and Restated By-Laws of Tyler Corporation, dated October 20, 2015 (filed as Exhibit 3.3 to our Form 10-Q for the quarter ended September 30, 2015, and incorporated by reference herein).
|
3.4
|
|
Certificate of Amendment dated May 19, 1999 to the Restated Certificate of Incorporation (filed as Exhibit 3.4 to our Form 10-K for the year ended December 31, 2000, and incorporated by reference herein).
|
4.1
|
|
Specimen of Common Stock Certificate (filed as Exhibit 4.1 to our registration statement no. 33-33505 and incorporated by reference herein).
|
4.2
|
|
Credit Agreement dated November 16, 2015, among Tyler Technologies, Inc. and Wells Fargo Bank, N. A. as Administrative Agent and other lenders party hereto (filed as Exhibit 10.1 to our Form 8-K dated November 16, 2015, and incorporated by reference herein).
|
4.3
|
|
Agreement and Plan of Merger, dated as of September 30, 2015, by and among Tyler Technologies, Inc., Brinston Acquisition, LLC, New World Systems Corporation, and Larry D. Leinweber, as the Principal Shareholder identified therein and the Shareholders’ Representative identified therein. (filed as Exhibit 2.1 to our Form 8-K, dated October 1, 2015, and incorporated by reference herein).
|
10.2
|
|
Tyler Technologies, Inc. 2010 Stock Option Plan effective as of May 13, 2010 (filed as Exhibit 4.1 to our registration statement no. 333-168499 and incorporated by reference herein).
|
10.3
|
|
Employment and Non-Competition Agreement between Tyler Technologies, Inc. and John S. Marr Jr. dated February 5, 2013 (filed as Exhibit 10.3 to our Form 10-K for the year ended December 31, 2012 and incorporated by reference herein).
|
Exhibit
Number
|
|
Description
|
10.4
|
|
Employment and Non-Competition Agreement between Tyler Technologies, Inc. and Dustin R. Womble dated February 5, 2013 (filed as Exhibit 10.4 to our Form 10-K for the year ended December 31, 2012 and incorporated by reference herein).
|
10.5
|
|
Employment and Non-Competition Agreement between Tyler Technologies, Inc. and Brian K. Miller dated February 5, 2013 (filed as Exhibit 10.5 to our Form 10-K for the year ended December 31, 2012 and incorporated by reference herein).
|
10.6
|
|
Employment and Non-Competition Agreement between Tyler Technologies, Inc. and H. Lynn Moore dated February 5, 2013 (filed as Exhibit 10.6 to our Form 10-K for the year ended December 31, 2012 and incorporated by reference herein).
|
10.7
|
|
Employee Stock Purchase Plan (filed as Exhibit 10.1 to our registration statement 333-182318 dated June 25, 2012 and incorporated by reference herein).
|
*23
|
|
Consent of Independent Registered Public Accounting Firm.
|
*31.1
|
|
Rule 13a-14(a) Certification by Principal Executive Officer.
|
*31.2
|
|
Rule 13a-14(a) Certification by Principal Financial Officer.
|
*32
|
|
Section 1350 Certification of Principal Executive Officer and Principal Financial Officer.
|
*101
|
|
Instance Document
|
*101
|
|
Schema Document
|
*101
|
|
Calculation Linkbase Document
|
*101
|
|
Labels Linkbase Document
|
*101
|
|
Definition Linkbase Document
|
*101
|
|
Presentation Linkbase Document
|
|
|
|
*
|
— Filed herewith.
|
|
|
TYLER TECHNOLOGIES, INC.
|
||
Date: February 22, 2017
|
|
By:
|
|
/s/ John S. Marr
|
|
|
|
|
John S. Marr
|
|
|
|
|
Chief Executive Officer and Chairman of the Board
|
|
|
|
|
(principal executive officer)
|
Date: February 22, 2017
|
|
By:
|
|
/s/ John S. Marr
|
|
|
|
|
John S. Marr
|
|
|
|
|
Chief Executive Officer and Chairman of the Board
|
|
|
|
|
Director
|
|
|
|
|
(principal executive officer)
|
Date: February 22, 2017
|
|
By:
|
|
/s/ Brian K. Miller
|
|
|
|
|
Brian K. Miller
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
(principal financial officer)
|
Date: February 22, 2017
|
|
By:
|
|
/s/ W. Michael Smith
|
|
|
|
|
W. Michael Smith
|
|
|
|
|
Chief Accounting Officer
|
|
|
|
|
(principal accounting officer)
|
Date: February 22, 2017
|
|
By:
|
|
/s/ Donald R. Brattain
|
|
|
|
|
Donald R. Brattain
|
|
|
|
|
Director
|
Date: February 22, 2017
|
|
By:
|
|
/s/ Glenn A. Carter
|
|
|
|
|
Glenn A. Carter
|
|
|
|
|
Director
|
Date: February 22, 2017
|
|
By:
|
|
/s/ Brenda A. Cline
|
|
|
|
|
Brenda A. Cline
|
|
|
|
|
Director
|
Date: February 22, 2017
|
|
By:
|
|
/s/ J. Luther King
|
|
|
|
|
J. Luther King
|
|
|
|
|
Director
|
Date: February 22, 2017
|
|
By:
|
|
/s/ Larry D. Leinweber
|
|
|
|
|
Larry D. Leinweber
|
|
|
|
|
Director
|
Date: February 22, 2017
|
|
By:
|
|
/s/ Daniel M. Pope
|
|
|
|
|
Daniel M. Pope
|
|
|
|
|
Director
|
Date: February 22, 2017
|
|
By:
|
|
/s/ Dustin R.Womble
|
|
|
|
|
Dustin R. Womble
|
|
|
|
|
Director
|
Date: February 22, 2017
|
|
By:
|
|
/s/ John M. Yeaman
|
|
|
|
|
John M. Yeaman
|
|
|
|
|
Director
|
|
2016
|
|
2015
|
|
2014
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Software licenses and royalties
|
$
|
74,306
|
|
|
$
|
59,008
|
|
|
$
|
49,065
|
|
Subscriptions
|
142,704
|
|
|
111,933
|
|
|
87,848
|
|
|||
Software services
|
174,804
|
|
|
139,852
|
|
|
113,821
|
|
|||
Maintenance
|
322,969
|
|
|
245,537
|
|
|
212,696
|
|
|||
Appraisal services
|
26,287
|
|
|
25,065
|
|
|
21,802
|
|
|||
Hardware and other
|
14,973
|
|
|
9,627
|
|
|
7,869
|
|
|||
Total revenues
|
756,043
|
|
|
591,022
|
|
|
493,101
|
|
|||
|
|
|
|
|
|
||||||
Cost of revenues:
|
|
|
|
|
|
||||||
Software licenses and royalties
|
2,964
|
|
|
1,632
|
|
|
1,900
|
|
|||
Acquired software
|
22,235
|
|
|
4,440
|
|
|
1,858
|
|
|||
Software services, maintenance and subscriptions
|
348,939
|
|
|
285,340
|
|
|
236,363
|
|
|||
Appraisal services
|
16,411
|
|
|
15,922
|
|
|
14,284
|
|
|||
Hardware and other
|
10,143
|
|
|
6,501
|
|
|
5,325
|
|
|||
Total cost of revenues
|
400,692
|
|
|
313,835
|
|
|
259,730
|
|
|||
|
|
|
|
|
|
||||||
Gross profit
|
355,351
|
|
|
277,187
|
|
|
233,371
|
|
|||
|
|
|
|
|
|
||||||
Selling, general and administrative expenses
|
167,161
|
|
|
133,317
|
|
|
108,260
|
|
|||
Research and development expense
|
43,154
|
|
|
29,922
|
|
|
25,743
|
|
|||
Amortization of customer and trade name intangibles
|
13,731
|
|
|
5,905
|
|
|
4,546
|
|
|||
|
|
|
|
|
|
||||||
Operating income
|
131,305
|
|
|
108,043
|
|
|
94,822
|
|
|||
|
|
|
|
|
|
||||||
Other (expense) income, net
|
(1,998
|
)
|
|
381
|
|
|
(355
|
)
|
|||
Income before income taxes
|
129,307
|
|
|
108,424
|
|
|
94,467
|
|
|||
Income tax provision
|
19,450
|
|
|
43,555
|
|
|
35,527
|
|
|||
Net income
|
$
|
109,857
|
|
|
$
|
64,869
|
|
|
$
|
58,940
|
|
|
|
|
|
|
|
||||||
Earnings per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
3.01
|
|
|
$
|
1.90
|
|
|
$
|
1.79
|
|
Diluted
|
$
|
2.82
|
|
|
$
|
1.77
|
|
|
$
|
1.66
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
36,151
|
|
|
$
|
33,087
|
|
Accounts receivable (less allowance for losses of $3,396 in 2016 and $1,640 in 2015)
|
200,334
|
|
|
176,360
|
|
||
Short-term investments
|
20,273
|
|
|
13,423
|
|
||
Prepaid expenses
|
21,039
|
|
|
22,334
|
|
||
Income tax receivable
|
2,895
|
|
|
21,080
|
|
||
Other current assets
|
2,268
|
|
|
1,931
|
|
||
Total current assets
|
282,960
|
|
|
268,215
|
|
||
|
|
|
|
||||
Accounts receivable, long-term
|
2,480
|
|
|
2,777
|
|
||
Property and equipment, net
|
124,268
|
|
|
101,112
|
|
||
Other assets:
|
|
|
|
||||
Goodwill
|
650,237
|
|
|
653,666
|
|
||
Other intangibles, net
|
267,259
|
|
|
295,378
|
|
||
Cost method investment
|
15,000
|
|
|
15,000
|
|
||
Non-current investments and other assets
|
15,741
|
|
|
20,422
|
|
||
|
$
|
1,357,945
|
|
|
$
|
1,356,570
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
7,295
|
|
|
$
|
6,789
|
|
Accrued liabilities
|
55,989
|
|
|
49,156
|
|
||
Deferred revenue
|
298,217
|
|
|
281,627
|
|
||
Total current liabilities
|
361,501
|
|
|
337,572
|
|
||
|
|
|
|
||||
Revolving line of credit
|
10,000
|
|
|
66,000
|
|
||
Deferred revenue, long-term
|
2,140
|
|
|
3,115
|
|
||
Deferred income taxes
|
68,779
|
|
|
91,026
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
||||
|
|
|
|
||||
Shareholders' equity:
|
|
|
|
||||
Preferred stock, $10.00 par value; 1,000,000 shares authorized; none issued
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value; 100,000,000 shares authorized; 48,147,969 shares
issued in 2016 and 2015
|
481
|
|
|
481
|
|
||
Additional paid-in capital
|
556,663
|
|
|
607,755
|
|
||
Accumulated other comprehensive loss, net of tax
|
(46
|
)
|
|
(46
|
)
|
||
Retained earnings
|
435,876
|
|
|
326,019
|
|
||
Treasury stock, at cost; 11,381,733 and 11,373,666 shares in 2016 and 2015, respectively
|
(77,449
|
)
|
|
(75,352
|
)
|
||
Total shareholders' equity
|
915,525
|
|
|
858,857
|
|
||
|
$
|
1,357,945
|
|
|
$
|
1,356,570
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated Other
Comprehensive
Income (Loss)
|
|
Retained
Earnings
|
|
Treasury Stock
|
|
Total
Shareholders'
Equity
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||
Balance at December 31, 2013
|
48,148
|
|
|
$
|
481
|
|
|
$
|
182,176
|
|
|
$
|
(46
|
)
|
|
$
|
202,210
|
|
|
(15,310
|
)
|
|
$
|
(138,502
|
)
|
|
$
|
246,319
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58,940
|
|
|
—
|
|
|
—
|
|
|
58,940
|
|
||||||
Issuance of shares pursuant to stock compensation plan
|
—
|
|
|
—
|
|
|
(17,449
|
)
|
|
—
|
|
|
—
|
|
|
855
|
|
|
32,129
|
|
|
14,680
|
|
||||||
Stock compensation
|
—
|
|
|
—
|
|
|
14,819
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,819
|
|
||||||
Issuance of shares pursuant to employee stock purchase plan
|
—
|
|
|
—
|
|
|
2,235
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
1,909
|
|
|
4,144
|
|
||||||
Federal income tax benefit related to exercise of stock options
|
—
|
|
|
—
|
|
|
19,415
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,415
|
|
||||||
Treasury stock purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(294
|
)
|
|
(22,817
|
)
|
|
(22,817
|
)
|
||||||
Issuance of shares for acquisition
|
—
|
|
|
—
|
|
|
193
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
1,280
|
|
|
1,473
|
|
||||||
Balance at December 31, 2014
|
48,148
|
|
|
481
|
|
|
201,389
|
|
|
(46
|
)
|
|
261,150
|
|
|
(14,679
|
)
|
|
(126,001
|
)
|
|
336,973
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64,869
|
|
|
—
|
|
|
—
|
|
|
64,869
|
|
||||||
Issuance of shares pursuant to stock compensation plan
|
—
|
|
|
—
|
|
|
4,332
|
|
|
—
|
|
|
—
|
|
|
1,118
|
|
|
18,828
|
|
|
23,160
|
|
||||||
Stock compensation
|
—
|
|
|
—
|
|
|
20,182
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,182
|
|
||||||
Issuance of shares pursuant to employee stock purchase plan
|
—
|
|
|
—
|
|
|
3,879
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
792
|
|
|
4,671
|
|
||||||
Federal income tax benefit related to exercise of stock options
|
—
|
|
|
—
|
|
|
45,314
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,314
|
|
||||||
Treasury stock purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(645
|
)
|
|
(645
|
)
|
||||||
Issuance of shares for acquisition
|
—
|
|
|
—
|
|
|
332,659
|
|
|
—
|
|
|
—
|
|
|
2,149
|
|
|
31,674
|
|
|
364,333
|
|
||||||
Balance at December 31, 2015
|
48,148
|
|
|
481
|
|
|
607,755
|
|
|
(46
|
)
|
|
326,019
|
|
|
(11,374
|
)
|
|
(75,352
|
)
|
|
858,857
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
109,857
|
|
|
—
|
|
|
—
|
|
|
109,857
|
|
||||||
Issuance of shares pursuant to stock compensation plan
|
—
|
|
|
—
|
|
|
(82,273
|
)
|
|
—
|
|
|
—
|
|
|
827
|
|
|
105,800
|
|
|
23,527
|
|
||||||
Stock compensation
|
—
|
|
|
—
|
|
|
29,747
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,747
|
|
||||||
Issuance of shares pursuant to employee stock purchase plan
|
—
|
|
|
—
|
|
|
1,434
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
4,802
|
|
|
6,236
|
|
||||||
Treasury stock purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(882
|
)
|
|
(112,699
|
)
|
|
(112,699
|
)
|
||||||
Balance at December 31, 2016
|
48,148
|
|
|
$
|
481
|
|
|
$
|
556,663
|
|
|
$
|
(46
|
)
|
|
$
|
435,876
|
|
|
(11,382
|
)
|
|
$
|
(77,449
|
)
|
|
$
|
915,525
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
109,857
|
|
|
$
|
64,869
|
|
|
$
|
58,940
|
|
Adjustments to reconcile net income to cash provided by operations:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
50,301
|
|
|
19,574
|
|
|
14,605
|
|
|||
Share-based compensation expense
|
29,747
|
|
|
20,182
|
|
|
14,819
|
|
|||
Provision for losses - accounts receivable
|
4,484
|
|
|
1,756
|
|
|
1,897
|
|
|||
Deferred income tax benefit
|
(28,939
|
)
|
|
(7,956
|
)
|
|
(3,804
|
)
|
|||
Changes in operating assets and liabilities, exclusive of effects of
acquired companies:
|
|
|
|
|
|
||||||
Accounts receivable
|
(30,227
|
)
|
|
(28,172
|
)
|
|
(8,912
|
)
|
|||
Income tax receivable
|
18,185
|
|
|
24,255
|
|
|
29,117
|
|
|||
Prepaid expenses and other current assets
|
2,229
|
|
|
(3,054
|
)
|
|
(3,696
|
)
|
|||
Accounts payable
|
387
|
|
|
652
|
|
|
1,586
|
|
|||
Accrued liabilities
|
10,717
|
|
|
490
|
|
|
6,326
|
|
|||
Deferred revenue
|
25,118
|
|
|
41,731
|
|
|
31,961
|
|
|||
Net cash provided by operating activities
|
191,859
|
|
|
134,327
|
|
|
142,839
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Cost of acquisitions, net of cash acquired
|
(9,394
|
)
|
|
(339,961
|
)
|
|
(3,242
|
)
|
|||
Purchase of cost method investment
|
—
|
|
|
(15,000
|
)
|
|
—
|
|
|||
Purchase of marketable security investments
|
(20,316
|
)
|
|
(31,907
|
)
|
|
—
|
|
|||
Proceeds from marketable security investments
|
16,837
|
|
|
900
|
|
|
808
|
|
|||
Additions to property and equipment
|
(37,726
|
)
|
|
(12,501
|
)
|
|
(9,343
|
)
|
|||
(Increase) decrease in other
|
(121
|
)
|
|
10
|
|
|
222
|
|
|||
Net cash used by investing activities
|
(50,720
|
)
|
|
(398,459
|
)
|
|
(11,555
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
(Decrease) increase in net borrowings on revolving line of credit
|
(56,000
|
)
|
|
66,000
|
|
|
—
|
|
|||
Purchase of treasury shares
|
(111,838
|
)
|
|
(645
|
)
|
|
(22,817
|
)
|
|||
Contributions from employee stock purchase plan
|
6,236
|
|
|
4,671
|
|
|
4,144
|
|
|||
Proceeds from exercise of stock options
|
23,527
|
|
|
23,160
|
|
|
14,680
|
|
|||
Debt issuance costs
|
—
|
|
|
(2,134
|
)
|
|
—
|
|
|||
Net cash (used) provided by financing activities
|
(138,075
|
)
|
|
91,052
|
|
|
(3,993
|
)
|
|||
|
|
|
|
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
3,064
|
|
|
(173,080
|
)
|
|
127,291
|
|
|||
Cash and cash equivalents at beginning of period
|
33,087
|
|
|
206,167
|
|
|
78,876
|
|
|||
Cash and cash equivalents at end of period
|
$
|
36,151
|
|
|
$
|
33,087
|
|
|
$
|
206,167
|
|
•
|
persuasive evidence of an arrangement exists
|
•
|
delivery has occurred
|
•
|
our fee is fixed or determinable
|
•
|
collectability is probable
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Balance at beginning of year
|
$
|
1,640
|
|
|
$
|
1,725
|
|
|
$
|
1,113
|
|
Provisions for losses - accounts receivable
|
4,484
|
|
|
1,756
|
|
|
1,897
|
|
|||
Collection of accounts previously written off
|
—
|
|
|
153
|
|
|
—
|
|
|||
Deductions for accounts charged off or credits issued
|
(2,728
|
)
|
|
(1,994
|
)
|
|
(1,285
|
)
|
|||
Balance at end of year
|
$
|
3,396
|
|
|
$
|
1,640
|
|
|
$
|
1,725
|
|
•
|
The standard eliminates additional paid in capital ("APIC") pools and requires excess tax benefits and tax deficiencies to be recorded in the income statement as a discrete item when the awards vest or are settled. The adoption of this guidance on a prospective basis resulted in the recognition of excess tax benefits in our provision for income taxes.
|
•
|
The standard requires excess tax benefits to be recognized regardless of whether the benefit reduces taxes payable. The adoption of this guidance is applied on a modified retrospective basis; however, it did not have an impact on our retained earnings as of January 1, 2016, as we had previously recognized all our excess tax benefits.
|
•
|
As permitted, we have elected to continue to estimate forfeitures expected to occur to determine the amount of stock-based compensation cost to be recognized in each period. As such, the guidance relating to forfeitures did not have an impact on our retained earnings as of January 1, 2016.
|
•
|
The new guidance changes the calculation of common stock equivalents for earnings per share purposes.
|
•
|
As permitted, we elected to apply the statement of cash flows guidance that cash flows related to excess tax benefits be presented as an operating activity retrospectively.
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||
|
March 31, 2016
|
|
June 30, 2016
|
|
September 30, 2016
|
||||||||||||||||||
(In thousands, except per share amounts)
|
As Reported
|
|
As Adjusted
|
|
As Reported
|
|
As Adjusted
|
|
As Reported
|
|
As Adjusted
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income statements:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax provision
|
$
|
10,495
|
|
|
$
|
9,350
|
|
|
$
|
11,323
|
|
|
$
|
5,188
|
|
|
$
|
14,155
|
|
|
$
|
989
|
|
Net income
|
$
|
17,079
|
|
|
$
|
18,224
|
|
|
$
|
18,872
|
|
|
$
|
25,007
|
|
|
$
|
22,264
|
|
|
$
|
35,430
|
|
Basic earnings per common share
|
$
|
0.47
|
|
|
$
|
0.50
|
|
|
$
|
0.52
|
|
|
$
|
0.69
|
|
|
$
|
0.61
|
|
|
$
|
0.97
|
|
Diluted earnings per common share
|
$
|
0.44
|
|
|
$
|
0.47
|
|
|
$
|
0.49
|
|
|
$
|
0.65
|
|
|
$
|
0.58
|
|
|
$
|
0.91
|
|
Diluted weighted average common shares outstanding
|
38,557
|
|
|
39,071
|
|
|
38,196
|
|
|
38,738
|
|
|
38,506
|
|
|
39,062
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Statement of cash flows:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by operating activities
|
$
|
40,270
|
|
|
$
|
41,321
|
|
|
$
|
13,877
|
|
|
$
|
19,520
|
|
|
$
|
67,091
|
|
|
$
|
79,213
|
|
Net cash (used) provided by financing activities
|
$
|
(15,860
|
)
|
|
$
|
(16,911
|
)
|
|
$
|
5,668
|
|
|
$
|
25
|
|
|
$
|
(77,973
|
)
|
|
$
|
(90,095
|
)
|
•
|
A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and
|
•
|
A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.
|
|
Useful
Lives
(years)
|
|
2016
|
|
2015
|
|||||
Land
|
—
|
|
|
$
|
9,958
|
|
|
$
|
8,146
|
|
Building and leasehold improvements
|
5-39
|
|
|
94,924
|
|
|
77,020
|
|
||
Computer equipment and purchased software
|
3-5
|
|
|
55,627
|
|
|
42,245
|
|
||
Furniture and fixtures
|
5
|
|
|
19,897
|
|
|
16,661
|
|
||
Transportation equipment
|
5
|
|
|
447
|
|
|
252
|
|
||
|
|
|
180,853
|
|
|
144,324
|
|
|||
Accumulated depreciation and amortization
|
|
|
(56,585
|
)
|
|
(43,212
|
)
|
|||
Property and equipment, net
|
|
|
$
|
124,268
|
|
|
$
|
101,112
|
|
|
2016
|
|
2015
|
||||
Gross carrying amount of acquisition intangibles:
|
|
|
|
||||
Customer related intangibles
|
$
|
186,231
|
|
|
$
|
181,671
|
|
Acquired software
|
176,096
|
|
|
172,666
|
|
||
Trade name
|
11,065
|
|
|
10,765
|
|
||
Leases acquired
|
3,694
|
|
|
3,694
|
|
||
|
377,086
|
|
|
368,796
|
|
||
Accumulated amortization
|
(109,827
|
)
|
|
(73,418
|
)
|
||
Total intangibles, net
|
$
|
267,259
|
|
|
$
|
295,378
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Weighted
Average
Amortization
Period
|
|
Accumulated Amortization
|
|
Gross
Carrying
Amount
|
|
Weighted
Average
Amortization
Period
|
|
Accumulated Amortization
|
||||||||||
Non-amortizable intangibles:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
$
|
650,237
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
653,666
|
|
|
—
|
|
|
$
|
—
|
|
Amortizable intangibles:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Customer related intangibles
|
186,231
|
|
|
15 years
|
|
|
51,491
|
|
|
181,671
|
|
|
15 years
|
|
|
38,754
|
|
||||
Acquired software
|
176,096
|
|
|
7 years
|
|
|
55,115
|
|
|
172,666
|
|
|
7 years
|
|
|
32,880
|
|
||||
Trade name
|
11,065
|
|
|
12 years
|
|
|
2,740
|
|
|
10,765
|
|
|
12 years
|
|
|
1,747
|
|
||||
Leases acquired
|
3,694
|
|
|
9 years
|
|
|
481
|
|
|
3,694
|
|
|
9 years
|
|
|
37
|
|
|
Enterprise
Software
|
|
Appraisal
and Tax
|
|
Total
|
||||||
Balance as of 12/31/2014
|
$
|
117,585
|
|
|
$
|
6,557
|
|
|
$
|
124,142
|
|
Goodwill acquired during 2015 related to the purchase of NWS
|
527,618
|
|
|
—
|
|
|
527,618
|
|
|||
Goodwill acquired during 2015 related to the purchase of Brazos
|
1,906
|
|
|
—
|
|
|
1,906
|
|
|||
Balance as of 12/31/2015
|
647,109
|
|
|
6,557
|
|
|
653,666
|
|
|||
Goodwill acquired during 2016 related to a small acquisition
|
3,943
|
|
|
—
|
|
|
3,943
|
|
|||
Purchase price adjustments related to NWS acquisition
|
(7,372
|
)
|
|
—
|
|
|
(7,372
|
)
|
|||
Balance as of 12/31/2016
|
$
|
643,680
|
|
|
$
|
6,557
|
|
|
$
|
650,237
|
|
2017
|
$
|
35,120
|
|
2018
|
34,443
|
|
|
2019
|
33,107
|
|
|
2020
|
31,660
|
|
|
2021
|
31,302
|
|
|
2016
|
|
2015
|
||||
Accrued wages, bonuses and commissions
|
$
|
38,996
|
|
|
$
|
32,006
|
|
Other accrued liabilities
|
16,993
|
|
|
17,150
|
|
||
|
$
|
55,989
|
|
|
$
|
49,156
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Federal income tax expense at statutory rate
|
$
|
45,257
|
|
|
$
|
37,949
|
|
|
$
|
33,064
|
|
State income tax, net of federal income tax benefit
|
4,807
|
|
|
3,715
|
|
|
2,867
|
|
|||
Domestic production activities deduction
|
(3,947
|
)
|
|
(466
|
)
|
|
(1,720
|
)
|
|||
Excess tax benefits related to stock option exercises
|
(29,582
|
)
|
|
—
|
|
|
—
|
|
|||
Non-deductible business expenses
|
2,979
|
|
|
2,414
|
|
|
1,485
|
|
|||
Other, net
|
(64
|
)
|
|
(57
|
)
|
|
(169
|
)
|
|||
|
$
|
19,450
|
|
|
$
|
43,555
|
|
|
$
|
35,527
|
|
|
2016
|
|
2015
|
||||
Deferred income tax assets:
|
|
|
|
||||
Operating expenses not currently deductible
|
$
|
18,721
|
|
|
$
|
9,953
|
|
Stock option and other employee benefit plans
|
19,665
|
|
|
13,504
|
|
||
Capital loss and credit carryforward
|
—
|
|
|
179
|
|
||
Total deferred income tax assets
|
38,386
|
|
|
23,636
|
|
||
Deferred income tax liabilities:
|
|
|
|
||||
Intangible assets
|
(103,754
|
)
|
|
(111,653
|
)
|
||
Property and equipment
|
(3,207
|
)
|
|
(2,781
|
)
|
||
Other
|
(204
|
)
|
|
(228
|
)
|
||
Total deferred income tax liabilities
|
(107,165
|
)
|
|
(114,662
|
)
|
||
Net deferred income tax liabilities
|
$
|
(68,779
|
)
|
|
$
|
(91,026
|
)
|
|
Years Ended December 31,
|
|||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|||||||||
Stock option exercises
|
827
|
|
|
$
|
23,527
|
|
|
1,118
|
|
|
$
|
23,160
|
|
|
855
|
|
|
$
|
14,680
|
|
Purchases of common stock
|
(882
|
)
|
|
(112,699
|
)
|
|
(5
|
)
|
|
(645
|
)
|
|
(294
|
)
|
|
(22,817
|
)
|
|||
Employee stock plan purchases
|
47
|
|
|
6,236
|
|
|
43
|
|
|
4,671
|
|
|
53
|
|
|
4,144
|
|
|||
Shares issued for acquisitions
|
—
|
|
|
—
|
|
|
2,149
|
|
|
364,333
|
|
|
17
|
|
|
1,473
|
|
|
Years Ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Expected life (in years)
|
6.0
|
|
|
6.0
|
|
|
6.0
|
|
Expected volatility
|
29.3
|
%
|
|
28.3
|
%
|
|
30.9
|
%
|
Risk-free interest rate
|
1.8
|
%
|
|
1.7
|
%
|
|
1.8
|
%
|
Expected forfeiture rate
|
—
|
%
|
|
1.7
|
%
|
|
3.0
|
%
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Cost of software services, maintenance and subscriptions
|
$
|
6,548
|
|
|
$
|
3,380
|
|
|
$
|
2,177
|
|
Selling, general and administrative expenses
|
23,199
|
|
|
16,802
|
|
|
12,642
|
|
|||
Total share-based compensation expenses
|
29,747
|
|
|
20,182
|
|
|
14,819
|
|
|||
Tax benefit
|
(30,059
|
)
|
|
(5,986
|
)
|
|
(4,237
|
)
|
|||
Net (decrease) increase in net income
|
$
|
(312
|
)
|
|
$
|
14,196
|
|
|
$
|
10,582
|
|
|
Number of
Shares
|
|
Weighted
Average Exercise
Price
|
|
Weighted
Average
Remaining
Contractual Life
(Years)
|
|
Aggregate
Intrinsic Value
|
|||||
Outstanding at December 31, 2013
|
5,720
|
|
|
$
|
34.66
|
|
|
|
|
|
|
|
Granted
|
675
|
|
|
94.15
|
|
|
|
|
|
|
||
Exercised
|
(855
|
)
|
|
17.17
|
|
|
|
|
|
|
||
Forfeited
|
(3
|
)
|
|
37.44
|
|
|
|
|
|
|
||
Outstanding at December 31, 2014
|
5,537
|
|
|
44.61
|
|
|
|
|
|
|
||
Granted
|
747
|
|
|
145.71
|
|
|
|
|
|
|
||
Exercised
|
(1,118
|
)
|
|
20.71
|
|
|
|
|
|
|
||
Forfeited
|
(2
|
)
|
|
19.61
|
|
|
|
|
|
|
||
Outstanding at December 31, 2015
|
5,164
|
|
|
64.43
|
|
|
|
|
|
|||
Granted
|
846
|
|
|
147.25
|
|
|
|
|
|
|||
Exercised
|
(827
|
)
|
|
28.43
|
|
|
|
|
|
|
||
Forfeited
|
(27
|
)
|
|
95.33
|
|
|
|
|
|
|
||
Outstanding at December 31, 2016
|
5,156
|
|
|
83.64
|
|
|
7
|
|
$
|
320,924
|
|
|
Exercisable at December 31, 2016
|
2,311
|
|
|
58.07
|
|
|
6
|
|
$
|
198,460
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Weighted average grant-date fair value of stock options granted
|
$
|
46.89
|
|
|
$
|
45.17
|
|
|
$
|
31.32
|
|
Total intrinsic value of stock options exercised
|
103,703
|
|
|
149,542
|
|
|
69,768
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Numerator for basic and diluted earnings per share:
|
|
|
|
|
|
||||||
Net income
|
$
|
109,857
|
|
|
$
|
64,869
|
|
|
$
|
58,940
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|||
Weighted-average basic common shares outstanding
|
36,448
|
|
|
34,137
|
|
|
33,011
|
|
|||
Assumed conversion of dilutive securities:
|
|
|
|
|
|
||||||
Stock options
|
2,513
|
|
|
2,415
|
|
|
2,390
|
|
|||
Denominator for diluted earnings per share
- Adjusted weighted-average shares
|
38,961
|
|
|
36,552
|
|
|
35,401
|
|
|||
Earnings per common share:
|
|
|
|
|
|
|
|
|
|||
Basic
|
$
|
3.01
|
|
|
$
|
1.90
|
|
|
$
|
1.79
|
|
Diluted
|
$
|
2.82
|
|
|
$
|
1.77
|
|
|
$
|
1.66
|
|
•
|
financial management, education and planning, regulatory and maintenance software solutions;
|
•
|
financial management, municipal courts, and land and vital records management software solutions;
|
•
|
courts and justice and public safety software solutions; and
|
•
|
appraisal and tax software solutions and property appraisal services.
|
|
Enterprise
Software
|
|
Appraisal
and Tax
|
|
Corporate
|
|
Totals
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Software licenses and royalties
|
$
|
68,844
|
|
|
$
|
5,462
|
|
|
$
|
—
|
|
|
$
|
74,306
|
|
Subscriptions
|
135,516
|
|
|
7,188
|
|
|
—
|
|
|
142,704
|
|
||||
Software services
|
158,478
|
|
|
16,326
|
|
|
—
|
|
|
174,804
|
|
||||
Maintenance
|
304,380
|
|
|
18,589
|
|
|
—
|
|
|
322,969
|
|
||||
Appraisal services
|
—
|
|
|
26,287
|
|
|
—
|
|
|
26,287
|
|
||||
Hardware and other
|
11,942
|
|
|
16
|
|
|
3,015
|
|
|
14,973
|
|
||||
Intercompany
|
6,742
|
|
|
—
|
|
|
(6,742
|
)
|
|
—
|
|
||||
Total revenues
|
$
|
685,902
|
|
|
$
|
73,868
|
|
|
$
|
(3,727
|
)
|
|
$
|
756,043
|
|
Depreciation and amortization expense
|
43,962
|
|
|
984
|
|
|
5,355
|
|
|
50,301
|
|
||||
Segment operating income
|
190,817
|
|
|
18,286
|
|
|
(41,832
|
)
|
|
167,271
|
|
||||
Capital expenditures
|
23,843
|
|
|
1,432
|
|
|
11,448
|
|
|
36,723
|
|
||||
Segment assets
|
$
|
295,260
|
|
|
$
|
31,769
|
|
|
$
|
1,030,916
|
|
|
$
|
1,357,945
|
|
|
Enterprise
Software
|
|
Appraisal
and Tax
|
|
Corporate
|
|
Totals
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Software licenses and royalties
|
$
|
54,376
|
|
|
$
|
4,632
|
|
|
$
|
—
|
|
|
$
|
59,008
|
|
Subscriptions
|
107,090
|
|
|
4,843
|
|
|
—
|
|
|
111,933
|
|
||||
Software services
|
129,068
|
|
|
10,784
|
|
|
—
|
|
|
139,852
|
|
||||
Maintenance
|
227,586
|
|
|
17,951
|
|
|
—
|
|
|
245,537
|
|
||||
Appraisal services
|
—
|
|
|
25,065
|
|
|
—
|
|
|
25,065
|
|
||||
Hardware and other
|
6,935
|
|
|
12
|
|
|
2,680
|
|
|
9,627
|
|
||||
Intercompany
|
4,025
|
|
|
—
|
|
|
(4,025
|
)
|
|
—
|
|
||||
Total revenues
|
$
|
529,080
|
|
|
$
|
63,287
|
|
|
$
|
(1,345
|
)
|
|
$
|
591,022
|
|
Depreciation and amortization expense
|
15,413
|
|
|
867
|
|
|
3,294
|
|
|
19,574
|
|
||||
Segment operating income
|
141,401
|
|
|
15,477
|
|
|
(38,490
|
)
|
|
118,388
|
|
||||
Capital expenditures
|
6,112
|
|
|
646
|
|
|
6,746
|
|
|
13,504
|
|
||||
Segment assets
|
$
|
265,877
|
|
|
$
|
22,283
|
|
|
$
|
1,068,410
|
|
|
$
|
1,356,570
|
|
|
Enterprise
Software
|
|
Appraisal
and Tax
|
|
Corporate
|
|
Totals
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Software licenses and royalties
|
$
|
46,047
|
|
|
$
|
3,018
|
|
|
$
|
—
|
|
|
$
|
49,065
|
|
Subscriptions
|
84,322
|
|
|
3,526
|
|
|
—
|
|
|
87,848
|
|
||||
Software services
|
104,146
|
|
|
9,675
|
|
|
—
|
|
|
113,821
|
|
||||
Maintenance
|
195,881
|
|
|
16,815
|
|
|
—
|
|
|
212,696
|
|
||||
Appraisal services
|
—
|
|
|
21,802
|
|
|
—
|
|
|
21,802
|
|
||||
Hardware and other
|
5,398
|
|
|
11
|
|
|
2,460
|
|
|
7,869
|
|
||||
Intercompany
|
2,812
|
|
|
—
|
|
|
(2,812
|
)
|
|
—
|
|
||||
Total revenues
|
$
|
438,606
|
|
|
$
|
54,847
|
|
|
$
|
(352
|
)
|
|
$
|
493,101
|
|
Depreciation and amortization expense
|
11,140
|
|
|
866
|
|
|
2,599
|
|
|
14,605
|
|
||||
Segment operating income
|
114,993
|
|
|
11,603
|
|
|
(25,370
|
)
|
|
101,226
|
|
||||
Capital expenditures
|
3,644
|
|
|
359
|
|
|
5,446
|
|
|
9,449
|
|
||||
Segment assets
|
$
|
170,369
|
|
|
$
|
16,463
|
|
|
$
|
382,980
|
|
|
$
|
569,812
|
|
Reconciliation of reportable segment operating
|
|
Years Ended December 31,
|
||||||||||
income to the Company's consolidated totals:
|
|
2016
|
|
2015
|
|
2014
|
||||||
Total segment operating income
|
|
$
|
167,271
|
|
|
$
|
118,388
|
|
|
$
|
101,226
|
|
Amortization of acquired software
|
|
(22,235
|
)
|
|
(4,440
|
)
|
|
(1,858
|
)
|
|||
Amortization of customer and trade name intangibles
|
|
(13,731
|
)
|
|
(5,905
|
)
|
|
(4,546
|
)
|
|||
Other (expense) income, net
|
|
(1,998
|
)
|
|
381
|
|
|
(355
|
)
|
|||
Income before income taxes
|
|
$
|
129,307
|
|
|
$
|
108,424
|
|
|
$
|
94,467
|
|
|
Quarters Ended
|
||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||||||||||
|
Dec. 31
|
|
Sept. 30
|
|
June 30
|
|
Mar. 31
|
|
Dec. 31(b)
|
|
Sept. 30
|
|
June 30
|
|
Mar. 31
|
||||||||||||||||
Revenues
|
$
|
193,281
|
|
|
$
|
194,497
|
|
|
$
|
188,972
|
|
|
$
|
179,293
|
|
|
$
|
158,916
|
|
|
$
|
150,845
|
|
|
$
|
146,295
|
|
|
$
|
134,966
|
|
Gross profit
|
92,817
|
|
|
93,480
|
|
|
86,936
|
|
|
82,118
|
|
|
73,222
|
|
|
71,833
|
|
|
68,253
|
|
|
63,879
|
|
||||||||
Income before income taxes (a)
|
35,119
|
|
|
36,419
|
|
|
30,195
|
|
|
27,574
|
|
|
19,540
|
|
|
31,744
|
|
|
29,781
|
|
|
27,359
|
|
||||||||
Net income (a)
|
31,196
|
|
|
35,430
|
|
|
25,007
|
|
|
18,224
|
|
|
8,618
|
|
|
20,142
|
|
|
18,836
|
|
|
17,273
|
|
||||||||
Earnings per diluted share
|
$
|
0.80
|
|
|
$
|
0.91
|
|
|
$
|
0.65
|
|
|
$
|
0.47
|
|
|
$
|
0.23
|
|
|
$
|
0.55
|
|
|
$
|
0.52
|
|
|
$
|
0.48
|
|
Shares used in computing diluted
earnings per share (a)
|
38,975
|
|
|
39,062
|
|
|
38,738
|
|
|
39,071
|
|
|
37,864
|
|
|
36,349
|
|
|
36,097
|
|
|
35,895
|
|
(a)
|
During fourth quarter 2016, we adopted ASU No. 2016-09 requiring the recognition of excess tax benefits as a component of income tax expense; these benefits were historically recognized in equity. As the standard required a prospective method of adoption, our fourth quarter 2016 net income includes a
$9.2 million
income tax benefit due to the adoption that did not occur in the comparable prior year periods presented above. The three months ended March 31, June 30, and September 30, 2016, respectively, have been adjusted for the newly adopted standard. Refer to Note 1 "Summary of Significant Accounting Policies" for further discussion of this new accounting standard.
|
(b)
|
Operating results for the three months ended December 31, 2015, include
$5.9 million
for financial advisory, legal, accounting, due diligence, valuation and other expenses necessary to complete the NWS acquisition as well as
$3.5 million
amortization expense related to NWS acquisition intangibles.
|
1 Year Tyler Technologies Chart |
1 Month Tyler Technologies Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions