*Amounts include stock-based compensation expense as follows (in thousands): | ||||||
(Unaudited) | ||||||
Three Months Ended
March 31, | ||||||
2019 | 2018 | |||||
Cost of revenue – software | $ | 64 | $ | 8 | ||
Research and development | 358 | 47 | ||||
Sales and marketing | 462 | 41 | ||||
General and administrative | 328 | 120 | ||||
Total stock-based compensation expense | $ | 1,212 | $ | 216 | ||
Altair Engineering Inc. and Subsidiaries | |||||||||
Consolidated Statements of Cash Flows | |||||||||
(Unaudited) | |||||||||
Three Months Ended
March 31, | |||||||||
(In thousands) | 2019 | 2018 | |||||||
OPERATING ACTIVITIES: | |||||||||
Net income | $ | 13,019 | $ | 24,684 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 5,194 | 3,543 | |||||||
Provision for bad debt | 120 | 65 | |||||||
Stock-based compensation expense | 1,212 | 216 | |||||||
Deferred income taxes | (654 | ) | 271 | ||||||
Other, net | 4 | (7 | ) | ||||||
Changes in assets and liabilities: | |||||||||
Accounts receivable | 7,678 | 4,492 | |||||||
Prepaid expenses and other current assets | (5,755 | ) | (1,091 | ) | |||||
Other long-term assets | (1,516 | ) | 116 | ||||||
Accounts payable | (1,792 | ) | 510 | ||||||
Accrued compensation and benefits | (2,815 | ) | (1,560 | ) | |||||
Other accrued expenses and current liabilities | 4,093 | (3,545 | ) | ||||||
Operating lease right-of-use assets and liabilities, net | 286 | - | |||||||
Deferred revenue | 6,241 | (1,005 | ) | ||||||
Net cash provided by operating activities | 25,315 | 26,689 | |||||||
INVESTING ACTIVITIES: | |||||||||
Capital expenditures | (4,583 | ) | (1,684 | ) | |||||
Payments for acquisition of developed technology | (344 | ) | (353 | ) | |||||
Payments for acquisition of businesses, net of cash acquired | — | (1,199 | ) | ||||||
Other investing activities, net | 2 | 23 | |||||||
Net cash used in investing activities | (4,925 | ) | (3,213 | ) | |||||
FINANCING ACTIVITIES: | |||||||||
Payments on revolving commitment | (68,395 | ) | — | ||||||
Borrowings under revolving commitment | 52,289 | — | |||||||
Proceeds from the exercise of stock options | 458 | 302 | |||||||
Payments for initial public offering costs | — | (186 | ) | ||||||
Other financing activities | (119 | ) | (111 | ) | |||||
Net cash (used in) provided by financing activities | (15,767 | ) | 5 | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (176 | ) | 495 | ||||||
Net increase in cash, cash equivalents and restricted cash | 4,447 | 23,976 | |||||||
Cash, cash equivalents and restricted cash at beginning of year | 35,685 | 39,578 | |||||||
Cash, cash equivalents and restricted cash at end of period | $ | 40,132 | $ | 63,554 | |||||
Supplemental disclosure of cash flow: | |||||||||
Interest paid | $ | 225 | $ | 10 | |||||
Income taxes paid | $ | 2,327 | $ | 2,143 | |||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||
Finance leases | $ | 488 | $ | 565 | |||||
Property and equipment in accounts payable | $ | 295 | $ | 736 | |||||