(in thousands except %s and per share amounts, rounding differences may exist) | 2016 | 2017 | 2018 | |||||||||||||||||||||||||||||
FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | |||||||||||||||||||||||||
Segment revenue: | ||||||||||||||||||||||||||||||||
Wealth Management (1) | $ | 316,546 | $ | 82,667 | $ | 85,296 | $ | 86,809 | $ | 93,848 | $ | 348,620 | $ | 92,082 | $ | 92,015 | ||||||||||||||||
Tax Preparation (2) | 139,365 | 99,708 | 53,866 | 3,362 | 4,001 | 160,937 | 113,883 | 65,833 | ||||||||||||||||||||||||
Total | $ | 455,911 | $ | 182,375 | $ | 139,162 | $ | 90,171 | $ | 97,849 | $ | 509,557 | $ | 205,965 | $ | 157,848 | ||||||||||||||||
Segment income (loss): (3) | ||||||||||||||||||||||||||||||||
Wealth Management (1) | $ | 46,296 | $ | 11,853 | $ | 12,406 | $ | 12,425 | $ | 14,232 | $ | 50,916 | $ | 13,075 | $ | 12,954 | ||||||||||||||||
Tax Preparation (2) | 66,897 | 53,133 | 36,515 | (6,238 | ) | (10,489 | ) | 72,921 | 58,806 | 44,121 | ||||||||||||||||||||||
Total | $ | 113,193 | $ | 64,986 | $ | 48,921 | $ | 6,187 | $ | 3,743 | $ | 123,837 | $ | 71,881 | $ | 57,075 | ||||||||||||||||
Segment income (loss) % of revenue: | ||||||||||||||||||||||||||||||||
Wealth Management (1) | 15 | % | 14 | % | 15 | % | 14 | % | 15 | % | 15 | % | 14 | % | 14 | % | ||||||||||||||||
Tax Preparation (2) | 48 | % | 53 | % | 68 | % | (186 | )% | (262 | )% | 45 | % | 52 | % | 67 | % | ||||||||||||||||
Total | 25 | % | 36 | % | 35 | % | 7 | % | 4 | % | 24 | % | 35 | % | 36 | % | ||||||||||||||||
Unallocated corporate operating expenses (3) | $ | 18,999 | $ | 6,773 | $ | 6,463 | $ | 4,587 | $ | 5,084 | $ | 22,907 | $ | 5,541 | $ | 4,238 | ||||||||||||||||
Adjusted EBITDA | $ | 94,194 | $ | 58,213 | $ | 42,458 | $ | 1,600 | $ | (1,341 | ) | $ | 100,930 | $ | 66,340 | $ | 52,837 | |||||||||||||||
Other unallocated operating expenses: (3) | ||||||||||||||||||||||||||||||||
Stock-based compensation (4) | $ | 14,128 | $ | 2,565 | $ | 2,737 | $ | 3,132 | $ | 3,219 | $ | 11,653 | $ | 2,958 | $ | 4,033 | ||||||||||||||||
Acquisition-related costs | 391 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Depreciation | 4,545 | 1,134 | 1,059 | 1,023 | 921 | 4,137 | 2,002 | 1,124 | ||||||||||||||||||||||||
Amortization of acquired intangible assets (4) | 34,143 | 8,336 | 8,336 | 8,665 | 8,665 | 34,002 | 8,357 | 8,855 | ||||||||||||||||||||||||
Restructuring | 3,870 | 2,289 | 331 | 106 | 375 | 3,101 | 289 | 2 | ||||||||||||||||||||||||
Operating income (loss) | $ | 37,117 | $ | 43,889 | $ | 29,995 | $ | (11,326 | ) | $ | (14,521 | ) | $ | 48,037 | $ | 52,734 | $ | 38,823 | ||||||||||||||
Unallocated other income/loss: (3) | ||||||||||||||||||||||||||||||||
Interest income | $ | (81 | ) | $ | (20 | ) | $ | (25 | ) | $ | (31 | ) | $ | (34 | ) | $ | (110 | ) | $ | (40 | ) | $ | (58 | ) | ||||||||
Interest expense (5) | 32,424 | 6,436 | 5,529 | 4,781 | 4,465 | 21,211 | 4,181 | 3,847 | ||||||||||||||||||||||||
Amortization of debt issuance costs (5) | 1,840 | 387 | 327 | 177 | 198 | 1,089 | 203 | 284 | ||||||||||||||||||||||||
Accretion of debt discounts (5) | 4,690 | 1,085 | 755 | 53 | 54 | 1,947 | 47 | 40 | ||||||||||||||||||||||||
Loss on debt extinguishment and modification expense (6) | 1,036 | 1,780 | 17,801 | 183 | 681 | 20,445 | 776 | 758 | ||||||||||||||||||||||||
Other (income) loss, net | (128 | ) | 40 | (187 | ) | 78 | 38 | (31 | ) | 61 | (2,112 | ) | ||||||||||||||||||||
Total | $ | 39,781 | $ | 9,708 | $ | 24,200 | $ | 5,241 | $ | 5,402 | $ | 44,551 | $ | 5,228 | $ | 2,759 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (2,664 | ) | $ | 34,181 | $ | 5,795 | $ | (16,567 | ) | $ | (19,923 | ) | $ | 3,486 | $ | 47,506 | $ | 36,064 | |||||||||||||
Income tax (benefit) expense: (3) | ||||||||||||||||||||||||||||||||
Cash | $ | 2,517 | $ | 311 | $ | (626 | ) | $ | (58 | ) | $ | 1,336 | $ | 963 | $ | 565 | $ | 325 | ||||||||||||||
Non-cash (7) | (3,802 | ) | 3,160 | 2,941 | 224 | (33,178 | ) | (26,853 | ) | 1,398 | 582 | |||||||||||||||||||||
Total | $ | (1,285 | ) | $ | 3,471 | $ | 2,315 | $ | 166 | $ | (31,842 | ) | $ | (25,890 | ) | $ | 1,963 | $ | 907 | |||||||||||||
GAAP income (loss) from continuing operations (8) | $ | (1,379 | ) | $ | 30,710 | $ | 3,480 | $ | (16,733 | ) | $ | 11,919 | $ | 29,376 | $ | 45,543 | $ | 35,157 | ||||||||||||||
GAAP income (loss) from continuing operations per share - diluted | $ | (0.05 | ) | $ | 0.67 | $ | 0.07 | $ | (0.37 | ) | $ | 0.21 | $ | 0.57 | $ | 0.93 | $ | 0.71 | ||||||||||||||
GAAP discontinued operations, net of income taxes (9) | $ | (63,121 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
GAAP impact of noncontrolling interests (8) | (658 | ) | (126 | ) | (176 | ) | (164 | ) | (1,871 | ) | (2,337 | ) | (205 | ) | (222 | ) | ||||||||||||||||
GAAP net income (loss) attributable to Blucora, Inc. | $ | (65,158 | ) | $ | 30,584 | $ | 3,304 | $ | (16,897 | ) | $ | 10,048 | $ | 27,039 | $ | 45,338 | $ | 34,935 | ||||||||||||||
Non-GAAP net income (loss) | $ | 45,096 | $ | 47,407 | $ | 32,947 | $ | (5,534 | ) | $ | (5,672 | ) | $ | 69,148 | $ | 58,232 | $ | 47,726 | ||||||||||||||
Non-GAAP net income (loss) per share - diluted | $ | 1.06 | (10) | $ | 1.04 | $ | 0.70 | $ | (0.12 | ) | $ | (0.12 | ) | $ | 1.46 | (11 | ) | $ | 1.20 | $ | 0.97 | |||||||||||
Outstanding Shares | 41,845 | 42,635 | 44,681 | 46,077 | 46,366 | 46,366 | 46,828 | 47,493 | ||||||||||||||||||||||||
Basic shares - GAAP | 41,494 | 42,145 | 43,644 | 45,459 | 46,231 | 44,370 | 46,641 | 47,221 | ||||||||||||||||||||||||
Diluted shares - GAAP | 41,494 | 45,428 | 46,937 | 45,459 | 48,406 | 47,211 | 48,665 | 49,434 |
(1) | On October 14, 2015, we announced the acquisition of HD Vest, which closed on December 31, 2015. As part of our announcement, we also stated our plans to divest the Search and Content and E-Commerce businesses in order to focus more strategically on the technology-enabled financial solutions market. The pro forma information represents the combination of HD Vest, TaxAct, and corporate expenses as if the acquisition closed on January 1, 2014. The Company believes that this presentation most accurately reflects the financial performance of the Company on a go-forward basis. |
(2) | As a highly seasonal business, almost all of the Tax Preparation revenue is generated in the first four months of the calendar year. |
(3) | We do not allocate certain general and administrative costs (including personnel and overhead costs), stock-based compensation, acquisition-related costs, depreciation, amortization of acquired intangible assets, restructuring, other income/loss, or income taxes to the reportable segments. The general and administrative costs are included in "Unallocated corporate operating expenses." |
(4) | Includes stock-based compensation for Blucora share-based award grants to HD Vest employees and amortization of the definite-lived intangible assets identified in the HD Vest acquisition. |
(5) | Excludes interest expense and amortization of debt-related costs associated with the TaxAct 2013 credit facility and HD Vest's previous debt facility, both of which were paid off at the acquisition date, and includes similar expenses associated with the TaxAct - HD Vest 2015 credit facility that was used to finance the HD Vest acquisition. |
(6) | 1Q16 gain on debt extinguishment related to the repurchase of a portion of our previously outstanding Notes below par value, offset by a loss on debt extinguishment related to the prepayment of a portion of the TaxAct - HD Vest 2015 credit facility, which resulted in the acceleration of a portion of the unamortized discount and debt issuance costs. 2Q16, 3Q16, 4Q16, 1Q17, and 2Q17 loss on debt extinguishment related to the prepayment of a portion of the TaxAct - HD Vest 2015 credit facility during each of those quarters. 2Q17 loss on debt extinguishment also related to the redemption of all of the Convertible Senior Notes and pay-off of the remaining TaxAct - HD Vest 2015 credit facility, resulting in the write-off of the remaining unamortized debt discount and issuance costs. |
(7) | Amounts represent the non-cash portion of income taxes from continuing operations. We exclude the non-cash portion of income taxes because of our ability to offset a substantial portion of our cash tax liabilities by using deferred tax assets, which primarily consist of U.S. federal net operating losses. The majority of these net operating losses will expire, if unutilized, between 2020 and 2024. |
(8) | GAAP income (loss) from continuing operations excludes the impact of noncontrolling interests associated with former HD Vest management rollover equity ownership of 4.48%. The impact of noncontrolling interests is recorded separately and after GAAP income (loss) from continuing operations. |
(9) | On October 14, 2015, Blucora announced plans to divest of the Search and Content and E-Commerce businesses. Accordingly, our financial condition, results of operations, and cash flows reflect the Search and Content and E-Commerce businesses as discontinued operations for all periods presented. On August 9, 2016, we closed on an agreement with OpenMail, under which OpenMail acquired substantially all of the assets and assumed certain specified liabilities of the Search and Content business for $45.2 million. On November 17, 2016, we closed on an agreement with YFC, under which YFC acquired the E-Commerce business for $40.5 million. As a result, we recognized a combined loss on sale of discontinued operations before income taxes of $73.8 million in FY 2016. |
(10) | Calculation in FY 2016 used 42,686,000 diluted shares due to non-GAAP net income. |
(11) | Calculation in FY 2017 used 47,211,000 diluted shares due to non-GAAP net income. |
2016 | 2017 | 2018 | |||||||||||||||||||||||||||||
(in thousands except per share amounts, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | |||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||||||||
Net income (loss) attributable to Blucora, Inc. (1) (2) (3) | $ | (65,158 | ) | $ | 30,584 | $ | 3,304 | $ | (16,897 | ) | $ | 10,048 | $ | 27,039 | $ | 45,338 | $ | 34,935 | |||||||||||||
Stock-based compensation | 14,128 | 2,565 | 2,737 | 3,132 | 3,219 | 11,653 | 2,958 | 4,033 | |||||||||||||||||||||||
Depreciation and amortization of acquired intangible assets | 38,688 | 9,470 | 9,395 | 9,688 | 9,586 | 38,139 | 10,359 | 9,979 | |||||||||||||||||||||||
Restructuring | 3,870 | 2,289 | 331 | 106 | 375 | 3,101 | 289 | 2 | |||||||||||||||||||||||
Other loss, net | 39,781 | 9,708 | 24,200 | 5,241 | 5,402 | 44,551 | 5,228 | 2,759 | |||||||||||||||||||||||
Net income attributable to noncontrolling interests | 658 | 126 | 176 | 164 | 1,871 | 2,337 | 205 | 222 | |||||||||||||||||||||||
Income tax expense | (1,285 | ) | 3,471 | 2,315 | 166 | (31,842 | ) | (25,890 | ) | 1,963 | 907 | ||||||||||||||||||||
Discontinued operations, net of income taxes | 63,121 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Acquisition-related costs | 391 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Adjusted EBITDA | $ | 94,194 | $ | 58,213 | $ | 42,458 | $ | 1,600 | $ | (1,341 | ) | $ | 100,930 | $ | 66,340 | $ | 52,837 | ||||||||||||||
Non-GAAP Net Income (Loss) | |||||||||||||||||||||||||||||||
Net income (loss) attributable to Blucora, Inc. (1) (2) (3) | $ | (65,158 | ) | $ | 30,584 | $ | 3,304 | $ | (16,897 | ) | $ | 10,048 | $ | 27,039 | $ | 45,338 | $ | 34,935 | |||||||||||||
Discontinued operations, net of income taxes | 63,121 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation | 14,128 | 2,565 | 2,737 | 3,132 | 3,219 | 11,653 | 2,958 | 4,033 | |||||||||||||||||||||||
Amortization of acquired intangible assets | 34,143 | 8,336 | 8,336 | 8,665 | 8,665 | 34,002 | 8,357 | 8,855 | |||||||||||||||||||||||
Accretion of debt discount on Convertible Senior Notes | 3,666 | 934 | 633 | — | — | 1,567 | — | — | |||||||||||||||||||||||
Accelerated accretion of debt discount on Convertible Senior Notes repurchased | 1,628 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Gain on Convertible Senior Notes repurchased | (7,724 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||
Write-off of debt discount and debt issuance costs on terminated Convertible Senior Notes | — | — | 6,715 | — | — | 6,715 | — | — | |||||||||||||||||||||||
Write-off of debt discount and debt issuance costs on closed TaxAct - HD Vest 2015 credit facility | — | — | 9,593 | — | — | 9,593 | — | — | |||||||||||||||||||||||
Acquisition-related costs | 391 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Restructuring | 3,870 | 2,289 | 331 | 106 | 375 | 3,101 | 289 | 2 | |||||||||||||||||||||||
Impact of noncontrolling interests | 658 | 126 | 176 | 164 | 1,871 | 2,337 | 205 | 222 | |||||||||||||||||||||||
Cash tax impact of adjustments to GAAP net income | 175 | (587 | ) | (1,819 | ) | (928 | ) | 3,328 | (6 | ) | (313 | ) | (903 | ) | |||||||||||||||||
Non-cash income tax (benefit) expense | (3,802 | ) | 3,160 | 2,941 | 224 | (33,178 | ) | (26,853 | ) | 1,398 | 582 | ||||||||||||||||||||
Non-GAAP net income (loss) | $ | 45,096 | $ | 47,407 | $ | 32,947 | $ | (5,534 | ) | $ | (5,672 | ) | $ | 69,148 | $ | 58,232 | $ | 47,726 | |||||||||||||
Non-GAAP net income (loss) per share | $ | 1.06 | $ | 1.04 | $ | 0.70 | $ | (0.12 | ) | $ | (0.12 | ) | $ | 1.46 | $ | 1.20 | $ | 0.97 | |||||||||||||
Diluted shares | 42,686 | 45,428 | 46,937 | 45,459 | 46,231 | 47,211 | 48,665 | 49,434 |
(1) | On October 14, 2015, Blucora announced the acquisition of HD Vest, which closed on December 31, 2015. As part of that announcement, we also stated our plans to divest the Search and Content and E-Commerce businesses in order to focus more strategically on the technology-enabled financial solutions market. The pro forma information represents the combination of HD Vest, TaxAct, and corporate expenses as if the acquisition closed on January 1, 2014. The Company believes that this presentation most accurately reflects the financial performance of the Company on a go-forward basis. |
2016 | 2017 | 2018 | ||||||||||||||||||||||||||||||
(in thousands except ratio, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | ||||||||||||||||||||||||
CASH: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 51,713 | $ | 74,609 | $ | 78,312 | $ | 78,558 | $ | 59,965 | $ | 59,965 | $ | 77,107 | $ | 89,840 | ||||||||||||||||
Available-for-sale investments | 7,101 | 160 | — | — | — | — | — | — | ||||||||||||||||||||||||
$ | 58,814 | $ | 74,769 | $ | 78,312 | $ | 78,558 | $ | 59,965 | $ | 59,965 | $ | 77,107 | $ | 89,840 | |||||||||||||||||
DEBT: | ||||||||||||||||||||||||||||||||
Senior secured credit facility | $ | — | $ | — | $ | 360,000 | $ | 350,000 | $ | 345,000 | $ | 345,000 | $ | 305,000 | $ | 265,000 | ||||||||||||||||
TaxAct - HD Vest 2015 credit facility | 260,000 | 222,000 | — | — | — | — | — | — | ||||||||||||||||||||||||
Convertible Senior Notes | 172,859 | 172,859 | — | — | — | — | — | — | ||||||||||||||||||||||||
Note payable, related party | 3,200 | 3,200 | 3,200 | 3,200 | — | — | — | — | ||||||||||||||||||||||||
$ | 436,059 | $ | 398,059 | $ | 363,200 | $ | 353,200 | $ | 345,000 | $ | 345,000 | $ | 305,000 | $ | 265,000 | |||||||||||||||||
NET DEBT | $ | (377,245 | ) | $ | (323,290 | ) | $ | (284,888 | ) | $ | (274,642 | ) | $ | (285,035 | ) | $ | (285,035 | ) | $ | (227,893 | ) | $ | (175,160 | ) | ||||||||
Last twelve months: | ||||||||||||||||||||||||||||||||
SEGMENT INCOME: | ||||||||||||||||||||||||||||||||
Wealth Management | $ | 46,296 | $ | 47,243 | $ | 49,725 | $ | 50,522 | $ | 50,916 | $ | 50,916 | $ | 52,138 | $ | 52,686 | ||||||||||||||||
Tax Preparation | 66,897 | 72,457 | 79,176 | 77,320 | 72,921 | 72,921 | 78,594 | 86,200 | ||||||||||||||||||||||||
113,193 | 119,700 | 128,901 | 127,842 | 123,837 | 123,837 | 130,732 | 138,886 | |||||||||||||||||||||||||
Unallocated corporate operating expenses | (18,999 | ) | (21,073 | ) | (23,076 | ) | (22,756 | ) | (22,907 | ) | (22,907 | ) | (21,675 | ) | (19,450 | ) | ||||||||||||||||
ADJUSTED EBITDA | $ | 94,194 | $ | 98,627 | $ | 105,825 | $ | 105,086 | $ | 100,930 | $ | 100,930 | $ | 109,057 | $ | 119,436 | ||||||||||||||||
LEVERAGE RATIO | 4.0 | x | 3.3 | x | 2.7 | x | 2.6 | x | 2.8 | x | 2.8 | x | 2.1 | x | 1.5 | x |
2016 | 2017 | 2018 | |||||||||||||||||||||||||||||
(in thousands, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | |||||||||||||||||||||||
Net cash provided by operating activities from continuing operations | $ | 85,970 | $ | 52,900 | $ | 28,236 | $ | (1,906 | ) | $ | (6,384 | ) | $ | 72,846 | $ | 57,450 | $ | 49,107 | |||||||||||||
Purchases of property and equipment | (3,812 | ) | (1,165 | ) | (746 | ) | (1,898 | ) | (1,230 | ) | (5,039 | ) | (940 | ) | (1,662 | ) | |||||||||||||||
Operating free cash flow from continuing operations | $ | 82,158 | $ | 51,735 | $ | 27,490 | $ | (3,804 | ) | $ | (7,614 | ) | $ | 67,807 | $ | 56,510 | $ | 47,445 |
(1) | We define operating free cash flow from continuing operations as net cash provided by operating activities from continuing operations less purchases of property and equipment. We believe operating free cash flow is an important liquidity measure that reflects the cash generated by the continuing businesses, after the purchases of property and equipment, that can then be used for, among other things, strategic acquisitions and investments in the businesses, stock repurchases, and funding ongoing operations. |
2016 | 2017 | 2018 | |||||||||||||||||||||||||||||
(in thousands except %s, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | |||||||||||||||||||||||
Segment revenue | $ | 316,546 | $ | 82,667 | $ | 85,296 | $ | 86,809 | $ | 93,848 | $ | 348,620 | $ | 92,082 | $ | 92,015 | |||||||||||||||
Segment net revenue (1) | $ | 102,550 | $ | 26,793 | $ | 28,394 | $ | 27,591 | $ | 30,639 | $ | 113,417 | $ | 29,259 | $ | 30,125 | |||||||||||||||
Segment income (2) | $ | 46,296 | $ | 11,853 | $ | 12,406 | $ | 12,425 | $ | 14,232 | $ | 50,916 | $ | 13,075 | $ | 12,954 | |||||||||||||||
Segment income % of revenue | 15 | % | 14 | % | 15 | % | 14 | % | 15 | % | 15 | % | 14 | % | 14 | % | |||||||||||||||
Segment income % of net revenue | 45 | % | 44 | % | 44 | % | 45 | % | 46 | % | 45 | % | 45 | % | 43 | % |
(in thousands except %s, rounding differences may exist) | 2016 | 2017 | 2018 | ||||||||||||||||||||||||||||||
Sources of Revenue | Primary Drivers | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | ||||||||||||||||||||||||
Advisor-driven | Commission | - Transactions - Asset levels | $ | 150,125 | $ | 39,595 | $ | 38,154 | $ | 39,432 | $ | 43,060 | $ | 160,241 | $ | 42,870 | $ | 40,384 | |||||||||||||||
Advisory | - Advisory asset levels | 129,417 | 33,576 | 35,914 | 37,588 | 38,616 | 145,694 | 39,301 | 40,058 | ||||||||||||||||||||||||
Other revenue | Asset-based | - Cash balances - Interest rates - Number of accounts - Client asset levels | 22,653 | 5,966 | 6,784 | 6,526 | 7,021 | 26,297 | 7,172 | 7,306 | |||||||||||||||||||||||
Transaction and fee | - Account activity - Number of clients - Number of advisors - Number of accounts | 14,351 | 3,530 | 4,444 | 3,263 | 5,151 | 16,388 | 2,739 | 4,267 | ||||||||||||||||||||||||
Total revenue | $ | 316,546 | $ | 82,667 | $ | 85,296 | $ | 86,809 | $ | 93,848 | $ | 348,620 | $ | 92,082 | $ | 92,015 | |||||||||||||||||
Total recurring revenue (3) | $ | 249,130 | $ | 63,907 | $ | 68,971 | $ | 70,539 | $ | 74,129 | $ | 277,546 | $ | 72,962 | $ | 75,369 | |||||||||||||||||
Recurring revenue rate (3) | 78.7 | % | 77.3 | % | 80.9 | % | 81.3 | % | 79.0 | % | 79.6 | % | 79.2 | % | 81.9 | % |
(in thousands except %s and as otherwise indicated, rounding differences may exist) | 2016 | 2017 | 2018 | ||||||||||||||||||||||||||||
FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | ||||||||||||||||||||||||
Total Client Assets (4) | $ | 38,663,595 | $ | 40,424,515 | $ | 41,427,028 | $ | 42,696,862 | $ | 44,178,710 | $ | 44,178,710 | $ | 44,383,024 | $ | 45,016,993 | |||||||||||||||
Brokerage Assets (5) | $ | 28,266,524 | $ | 29,333,748 | $ | 29,875,740 | $ | 30,712,542 | $ | 31,648,545 | $ | 31,648,545 | $ | 31,665,899 | $ | 32,069,800 | |||||||||||||||
Advisory Assets (6) | $ | 10,397,071 | $ | 11,090,767 | $ | 11,551,288 | $ | 11,984,320 | $ | 12,530,165 | $ | 12,530,165 | $ | 12,717,125 | $ | 12,947,193 | |||||||||||||||
% of total Total Client Assets | 26.9 | % | 27.4 | % | 27.9 | % | 28.1 | % | 28.4 | % | 28.4 | % | 28.7 | % | 28.8 | % | |||||||||||||||
Number of advisors (in ones) | 4,472 | 4,427 | 4,426 | 4,392 | 3,999 | 3,999 | 3,920 | 3,709 | |||||||||||||||||||||||
Adviser-driven revenue per adviser | $ | 16.3 | $ | 16.5 | $ | 16.7 | $ | 17.5 | $ | 20.4 | $ | 20.4 | $ | 21.0 | $ | 21.7 |
(1) | Amount represents segment revenue less advisor commission payout. |
(2) | Excludes expenses associated with non-recurring projects. |
(3) | Recurring revenue consists of trailing commissions, advisory fees, fees from cash sweep programs, and certain transaction and fee revenue. |
(4) | Total client assets replaces the previously used term assets under administration. |
(5) | Brokerage assets represents the difference between total client assets and advisory assets. |
(6) | Advisory assets replaces the previously used term assets under management. |
(in thousands except %s, rounding differences may exist) | U.S. tax seasons ended | Six months ended June 30, | |||||||||||||||
Consumers | April 19, 2018 | April 18, 2017 | % change | 2018 | 2017 | % change | |||||||||||
Online e-files | 3,432 | 3,958 | (13 | )% | 3,483 | 4,034 | (14 | )% | |||||||||
Desktop e-files | 152 | 184 | (17 | )% | 155 | 187 | (17 | )% | |||||||||
Sub-total e-files | 3,584 | 4,142 | (13 | )% | 3,638 | 4,221 | (14 | )% | |||||||||
Free File Alliance e-files (1) | 188 | 164 | 15 | % | 193 | 171 | 13 | % | |||||||||
Total e-files | 3,772 | 4,306 | (12 | )% | 3,831 | 4,392 | (13 | )% |
(in thousands except %s and as otherwise indicated, rounding differences may exist) | U.S. tax seasons ended | Six months ended June 30, | |||||||||||||||
Preparers | April 19, 2018 | April 18, 2017 | % change | 2018 | 2017 | % change | |||||||||||
E-files | 1,763 | 1,717 | 3 | % | 1,833 | 1,786 | 3 | % | |||||||||
Units sold (in ones) | 20,588 | 20,964 | (2 | )% | 20,637 | 20,694 | — | % | |||||||||
E-files per unit sold (in ones) | 85.6 | 81.9 | 5 | % | 88.8 | 86.3 | 3 | % |
(1) | Free File Alliance e-files are provided as part of an IRS partnership that provides free electronic tax filing services to taxpayers meeting certain income-based guidelines. |