ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
| Six Months Ended June 30, | ||||||||
| (In thousands) | 2020 | 2019 | ||||||
| OPERATING ACTIVITIES: | ||||||||
| Net (loss) income | $ | (4,193 | ) | $ | 9,899 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 11,293 | 10,468 | ||||||
| Provision for credit loss | 589 | 134 | ||||||
| Amortization of debt discount and issuance costs | 5,342 | 459 | ||||||
| Stock-based compensation expense | 7,705 | 3,292 | ||||||
| Deferred income taxes | (5,961 | ) | (703 | ) | ||||
| Other, net | 3 | (17 | ) | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 23,264 | 10,406 | ||||||
| Prepaid expenses and other current assets | 1,817 | (4,952 | ) | |||||
| Other long-term assets | (960 | ) | (2,300 | ) | ||||
| Accounts payable | (3,841 | ) | (2,187 | ) | ||||
| Accrued compensation and benefits | 497 | (2,455 | ) | |||||
| Other accrued expenses and current liabilities | 131 | 1,887 | ||||||
| Operating lease right-of-use assets and liabilities, net | 30 | 197 | ||||||
| Deferred revenue | (2,315 | ) | 7,740 | |||||
| Net cash provided by operating activities | 33,401 | 31,868 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (2,530 | ) | (6,667 | ) | ||||
| Payments for acquisition of businesses, net of cash acquired | (2,270 | ) | (709 | ) | ||||
| Payments for acquisition of developed technology | (433 | ) | (344 | ) | ||||
| Other investing activities, net | 142 | 16 | ||||||
| Net cash used in investing activities | (5,091 | ) | (7,704 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Proceeds from the exercise of stock options | 477 | 1,270 | ||||||
| Proceeds from issuance of convertible senior notes, net of underwriters'
discount and commissions | — | 223,101 | ||||||
| Payments on revolving commitment | — | (127,941 | ) | |||||
| Borrowings under revolving commitment | — | 96,991 | ||||||
| Payments for issuance costs of convertible senior notes | — | (1,018 | ) | |||||
| Other financing activities | (210 | ) | (259 | ) | ||||
| Net cash provided by financing activities | 267 | 192,144 | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,148 | ) | 187 | |||||
| Net increase in cash, cash equivalents and restricted cash | 27,429 | 216,495 | ||||||
| Cash, cash equivalents and restricted cash at beginning of year | 223,497 | 35,685 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 250,926 | $ | 252,180 | ||||
| Supplemental disclosure of cash flow: | ||||||||
| Interest paid | $ | 306 | $ | 362 | ||||
| Income taxes paid | $ | 9,491 | $ | 4,054 | ||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Finance leases | $ | 100 | $ | 566 | ||||
| Property and equipment in accounts payable, other current liabilities
and other liabilities | $ | 343 | $ | 417 | ||||
| Convertible senior notes issuance costs in accounts payable | — | $ | 216 | |||||
