| *Amounts include stock-based compensation expense as follows (in thousands): | ||||||||||||
| (Unaudited) | ||||||||||||
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, | |||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||
| Cost of revenue – software | $ | 7 | $ | 8 | $ | 31 | $ | 350 | ||||
| Research and development | 410 | 2,045 | 740 | 12,540 | ||||||||
| Sales and marketing | 595 | 1,533 | 910 | 7,693 | ||||||||
| General and administrative | 1,114 | 4,393 | 1,658 | 26,698 | ||||||||
| Total stock-based compensation expense | $ | 2,126 | $ | 7,979 | $ | 3,339 | $ | 47,281 | ||||
| Altair Engineering Inc. and Subsidiaries | ||||||
| Consolidated Statements of Cash Flows | ||||||
| (Unaudited) | ||||||
|
Twelve Months Ended
December 31, | ||||||
| (In thousands) | 2018 | 2017 | ||||
| OPERATING ACTIVITIES: | ||||||
| Net income (loss) | $ | 13,715 | $ | (99,407) | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
| Depreciation and amortization | 14,734 | 11,747 | ||||
| Provision for bad debt | 394 | 610 | ||||
| Stock-based compensation expense | 3,339 | 47,281 | ||||
| Gain on sale of assets held for sale and other | (4,503) | (244) | ||||
| Impairment of intangible assets | 608 | — | ||||
| Deferred income taxes | 763 | 52,571 | ||||
| Other, net | (183) | 542 | ||||
| Changes in assets and liabilities: | ||||||
| Accounts receivable | (1,394) | (10,397) | ||||
| Prepaid expenses and other current assets | 204 | 1,559 | ||||
| Other long-term assets | (1,660) | (11,288) | ||||
| Accounts payable | 1,647 | (1,087) | ||||
| Accrued compensation and benefits | 5,678 | 2,060 | ||||
| Other accrued expenses and current liabilities | (6,667) | 6,207 | ||||
| Deferred revenue | 9,555 | 15,937 | ||||
| Net cash provided by operating activities | 36,230 | 16,091 | ||||
| INVESTING ACTIVITIES: | ||||||
| Payments for acquisition of businesses, net of cash acquired | (203,438) | (15,582) | ||||
| Capital expenditures | (6,659) | (7,522) | ||||
| Proceeds from sale of assets held for sale and other | 6,614 | 446 | ||||
| Payments for acquisition of developed technology | (2,727) | (2,120) | ||||
| Other investing activities, net | — | (73) | ||||
| Net cash used in investing activities | (206,210) | (24,851) | ||||
| FINANCING ACTIVITIES: | ||||||
| Proceeds from issuance of Class A common stock in follow-on public offering,
net of underwriters' discounts and commissions | 135,572 | — | ||||
| Borrowings under revolving commitment | 37,041 | 126,832 | ||||
| Payments on revolving commitment | (6,091) | (154,187) | ||||
| Proceeds form issuance of common stock | 2,077 | 1,792 | ||||
| Payments for follow-on public offering and IPO offering costs | (556) | (4,644) | ||||
| Principal payments on long-term debt | (126) | (59,869) | ||||
| Payments for redemption of common stock | (119) | (1,045) | ||||
| Proceeds from issuance of Class A common stock in initial public
offering, net of underwriters' commissions | — | 119,268 | ||||
| Proceeds from issuance of debt | — | 1,541 | ||||
| Other financing activities | (268) | (130) | ||||
| Net cash provided by financing activities | 167,530 | 29,558 | ||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,443) | 1,641 | ||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (3,893) | 22,439 | ||||
| Cash, cash equivalents and restricted cash at beginning of year | 39,578 | 17,139 | ||||
| Cash, cash equivalents and restricted cash at end of period | $ | 35,685 | $ | 39,578 | ||
| Supplemental disclosure of cash flow: | ||||||
| Interest paid | $ | 223 | $ | 2,092 | ||
| Income taxes paid | $ | 6,735 | $ | 5,893 | ||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||
| Issuance of common stock in connection with acquisitions | $ | 8,681 | $ | 8,712 | ||
| Promissory notes issued and deferred payment obligations for acquisitions | $ | 1,729 | $ | 12,352 | ||
| Capital leases | $ | 895 | $ | 124 | ||
| Property and equipment in accounts payable | $ | 330 | $ | 582 | ||
| Issuance of common stock with put rights | $ | - | $ | 2,352 | ||
| Initial public offering costs in other long-term assets | $ | - | $ | 186 | ||
