Tyler Technologies Reports Earnings for Third Quarter 2019

Revenues grow 16.7% as operating cash flows reach new quarterly high

PLANO, Texas–(BUSINESS WIRE)–$TYL #earningsTyler Technologies, Inc. (NYSE: TYL) today announced financial results for the third quarter ended September 30, 2019.

Third Quarter 2019 Financial Highlights:

  • Total revenues were $275.4 million, up 16.7% from $236.1 million for the third quarter of 2018. Organic revenue growth was 8.9%. Non-GAAP total revenues were $277.2 million, up 16.7% from $237.6 million for the third quarter of 2018. Non-GAAP organic revenue growth was 8.3%.
  • Recurring revenues from maintenance and subscriptions were $185.1 million, an increase of 19.5% compared to the third quarter of 2018, and comprised 67.2% of third quarter 2019 revenue.
  • Operating income was $40.1 million, up 6.6% from $37.6 million for the third quarter of 2018. Non-GAAP operating income was $71.0 million, up 10.3% from $64.3 million for the third quarter of 2018.
  • Net income was $40.4 million, or $1.00 per diluted share, up 3.8% compared to $38.9 million, or $0.96 per diluted share, for the third quarter of 2018. Non-GAAP net income was $54.3 million, or $1.35 per diluted share, up 9.3% compared to $49.7 million, or $1.23 per diluted share, for the third quarter of 2018.
  • Cash flows from operations were $130.1 million, up 16.0% compared to $112.1 million for the third quarter of 2018.
  • Adjusted EBITDA was $77.1 million, up 9.3% compared to $70.5 million for the third quarter of 2018.
  • Software subscription arrangements comprised approximately 51% of the total new software contract value in the third quarter, compared to approximately 37% in the third quarter of 2018.
  • Subscription bookings in the third quarter added $10.6 million in annual recurring revenue.
  • Total backlog was $1.41 billion, up 13.9% from $1.24 billion at September 30, 2018. Software-related backlog (excluding appraisal services) was $1.38 billion, up 14.9% from $1.20 billion at September 30, 2018.
  • Effective January 1, 2019, Tyler adopted the requirements of ASU No. 2016-02, Leases (Topic 842), utilizing the modified retrospective method of transition.

“Our execution in the third quarter was solid as we continued to build on a strong first half of the year,” said Lynn Moore, Tyler’s president and chief executive officer. “We achieved double-digit growth over last year in all of our software-related revenue lines, and organic revenue growth continued to accelerate sequentially. Subscription revenue once again led our growth, rising 28.2%, and software license and royalty revenue grew 13.1%. In addition, non-GAAP diluted earnings per share and free cash flow both reached new quarterly highs.

“Bookings in the third quarter were solid at approximately $259 million, up 1.6% over the prior year. For the trailing twelve months, bookings were up 18.9%. We signed a record number of new software contracts this quarter, and for the first nine months of 2019, the total number of new software contracts signed has already surpassed the total signed for the full year of 2018. Bookings and revenue growth in the quarter were both affected by delays in the timing of several federal contracts at MicroPact, as an increasing amount of that business is coming through its partner channel. Several significant deals were signed by partners at the end of the quarter, but the related contracts with MicroPact were not executed until October and will be recognized in the fourth quarter.

“We’re excited about the recently announced strategic collaboration agreement with Amazon Web Services (AWS), which deepens our existing relationship by leveraging the AWS cloud to lay the groundwork for the future of cloud services for the public sector. This agreement provides the framework for development, training and collaboration in order to support next-generation applications that have the scalability, resiliency and security AWS offers. We look forward to working with AWS on accelerating innovation and the development of strategic initiatives.

“We’re also pleased to announce today the acquisition of Courthouse Technologies (CHT), a leading provider of jury management systems. CHT’s software-as-a-service solution serves courts of all sizes across the United States and Canada and complements and elevates Tyler’s existing solutions for courts,” added Moore.

Guidance for 2019

As of October 30, 2019, Tyler Technologies is providing the following guidance for the full year 2019:

  • GAAP total revenues are expected to be in the range of $1.082 billion to $1.095 billion. Non-GAAP total revenues are expected to be in the range of $1.090 billion to $1.103 billion.
  • GAAP diluted earnings per share are expected to be in the range of $3.50 to $3.63 and may vary significantly due to the impact of stock incentive awards on the GAAP effective tax rate, as well as final valuation of acquired intangibles.
  • Non-GAAP diluted earnings per share are expected to be in the range of $5.22 to $5.35.
  • Pretax non-cash, share-based compensation expense is expected to be approximately $62 million.
  • Research and development expense is expected to be in the range of $81 million to $83 million.
  • Fully diluted shares for the year are expected to be in the range of $40 million to $40.5 million shares.
  • GAAP earnings per share assumes an estimated annual effective tax rate of approximately 10% after discrete tax items and includes approximately $27 million of discrete tax benefits related to share-based compensation.
  • The non-GAAP annual effective tax rate is expected to be 24%.
  • Capital expenditures are expected to be in the range of $45 million to $47 million, including approximately $20 million related to real estate and approximately $6 million of capitalized software development costs related to MicroPact. Total depreciation and amortization expense is expected to be approximately $76 million, including approximately $52 million from amortization of acquisition intangibles.

GAAP to non-GAAP guidance reconciliation

Non-GAAP total revenues is derived from adding back the estimated full year impact of write-downs of acquisition-related deferred revenue and amortization of acquired leases of approximately $8 million. Non-GAAP diluted earnings per share excludes the estimated full year impact of non-cash share-based compensation expense and employer portion of payroll tax related to employee stock transactions of approximately $62 million, and amortization of acquired software and intangible assets of approximately $52 million. Additionally, the non-GAAP tax rate of 24% is estimated periodically as described below under “Non-GAAP Financial Measures” and excludes approximately $27 million of estimated discrete tax benefits that are included in the GAAP estimated annual effective tax rate.

Conference Call

Tyler Technologies will hold a conference call on Thursday, October 31, at 10:00 a.m. EDT to discuss the company’s results. The company is offering participants the opportunity to register in advance for the conference through the following link: http://dpregister.com/10134985. Registered participants will receive an email with a calendar reminder and a dial-in number and PIN that will allow them to listen to the call live.

Participants who do not wish to pre-register for the call may dial in using 844-861-5506 (U.S. callers) or 412-317-6587 (international callers) or 866-450-4696 (Canada callers) and ask for the “Tyler Technologies” call. A replay will be available two hours after completion of the call through November 7, 2019. To access the replay, please dial 877-344-7529 (U.S. callers), 412-317-0088 (international callers) and 855-669-9658 (Canada callers) and reference passcode 10134985.

The live webcast and archived replay can also be accessed at https://tylertech.irpass.com/Presentations.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) is the largest and most established provider of integrated software and technology services focused on the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler’s solutions are transforming how clients gain actionable insights that solve problems in their communities. Tyler has more than 21,000 successful installations across 10,000 sites, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. A financially strong company, Tyler has achieved double-digit revenue growth every quarter since 2012. It was also named to Forbes’ “Best Midsize Employers” list in 2018 and recognized twice on its “Most Innovative Growth Companies” list. More information about Tyler Technologies, headquartered in Plano, Texas, can be found at tylertech.com.

Non-GAAP Financial Measures

Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP revenues, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, and adjusted EBITDA. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude write-downs of acquisition-related deferred revenue and acquired leases, share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, and acquisition-related expenses.

Tyler currently uses a non-GAAP tax rate of 24%. This rate is based on Tyler’s estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler’s non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler’s periodic effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler’s estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler’s actual tax liabilities.

Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (2) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (3) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (4) material portions of our business require the Internet infrastructure to be adequately maintained; (5) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (6) general economic, political and market conditions; (7) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (8) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (9) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (10) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.

 

TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

Software licenses and royalties

 

$

25,379

 

 

$

22,444

 

 

$

67,847

 

 

$

67,620

 

Subscriptions

 

75,272

 

 

58,699

 

 

216,022

 

 

160,736

 

Software services

 

54,997

 

 

48,199

 

 

160,841

 

 

144,812

 

Maintenance

 

109,833

 

 

96,215

 

 

316,674

 

 

286,188

 

Appraisal services

 

6,008

 

 

5,544

 

 

17,455

 

 

16,470

 

Hardware and other

 

3,911

 

 

4,966

 

 

18,751

 

 

17,475

 

Total revenues

 

275,400

 

 

236,067

 

 

797,590

 

 

693,301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software licenses and royalties

 

971

 

 

957

 

 

2,680

 

 

2,939

 

Acquired software

 

7,975

 

 

5,897

 

 

22,645

 

 

17,003

 

Software services, maintenance and subscriptions

 

128,545

 

 

111,508

 

 

371,464

 

 

327,080

 

Appraisal services

 

4,096

 

 

3,505

 

 

11,306

 

 

10,854

 

Hardware and other

 

3,096

 

 

2,574

 

 

14,870

 

 

11,718

 

Total cost of revenues

 

144,683

 

 

124,441

 

 

422,965

 

 

369,594

 

 

 

 

 

 

 

 

 

 

Gross profit

 

130,717

 

 

111,626

 

 

374,625

 

 

323,707

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

63,888

 

 

52,605

 

 

187,481

 

 

152,471

 

Research and development expense

 

21,130

 

 

17,050

 

 

60,172

 

 

45,929

 

Amortization of customer and trade name intangibles

 

5,646

 

 

4,386

 

 

15,762

 

 

11,742

 

Operating income

 

40,053

 

 

37,585

 

 

111,210

 

 

113,565

 

Other income, net

 

499

 

 

1,041

 

 

838

 

 

2,198

 

Income before income taxes

 

40,552

 

 

38,626

 

 

112,048

 

 

115,763

 

Income tax provision (benefit)

 

162

 

 

(298

)

 

12,311

 

 

(147

)

Net income

 

$

40,390

 

 

$

38,924

 

 

$

99,737

 

 

$

115,910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Basic

 

$

1.04

 

 

$

1.00

 

 

$

2.58

 

 

$

3.01

 

Diluted

 

$

1.00

 

 

$

0.96

 

 

$

2.49

 

 

$

2.87

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

38,765

 

 

38,761

 

 

38,614

 

 

38,533

 

Diluted

 

40,280

 

 

40,528

 

 

40,015

 

 

40,345

 

 

TYLER TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

Reconciliation of non-GAAP total revenues

 

 

 

 

 

 

 

 

GAAP total revenues

 

$

275,400

 

 

$

236,067

 

 

$

797,590

 

 

$

693,301

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Add: Write-downs of acquisition-related deferred revenue

 

1,698

 

 

1,397

 

 

6,052

 

 

3,048

 

Add: Amortization of acquired leases

 

89

 

 

104

 

 

289

 

 

326

 

Non-GAAP total revenues

 

$

277,187

 

 

$

237,568

 

 

$

803,931

 

 

$

696,675

 

 

 

 

 

 

 

 

 

 

Reconciliation of non-GAAP gross profit and margin

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

130,717

 

 

$

111,626

 

 

$

374,625

 

 

$

323,707

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Add: Write-downs of acquisition-related deferred revenue

 

1,698

 

 

1,397

 

 

6,052

 

 

3,048

 

Add: Amortization of acquired leases

 

89

 

 

104

 

 

289

 

 

326

 

Add: Share-based compensation expense included in cost of revenues

3,612

 

 

3,909

 

 

11,166

 

 

9,640

 

Add: Amortization of acquired software

 

7,975

 

 

5,897

 

 

22,645

 

 

17,003

 

Non-GAAP gross profit

 

$

144,091

 

 

$

122,933

 

 

$

414,777

 

 

$

353,724

 

GAAP gross margin

 

47.5

%

 

47.3

%

 

47.0

%

 

46.7

%

Non-GAAP gross margin

 

52.0

%

 

51.7

%

 

51.6

%

 

50.8

%

 

 

 

 

 

 

 

 

 

Reconciliation of non-GAAP operating income and margin

 

 

 

 

 

 

 

 

GAAP operating income

 

$

40,053

 

 

$

37,585

 

 

$

111,210

 

 

$

113,565

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Add: Write-downs of acquisition-related deferred revenue

 

1,698

 

 

1,397

 

 

6,052

 

 

3,048

 

Add: Amortization of acquired leases

 

89

 

 

104

 

 

289

 

 

326

 

Add: Share-based compensation expense

 

14,887

 

 

14,476

 

 

44,369

 

 

37,966

 

Add: Employer portion of payroll tax related to employee stock transactions

621

 

 

484

 

 

1,052

 

 

1,408

 

Add: Acquisition related costs

 

5

 

 

 

 

945

 

 

 

Add: Amortization of acquired software

 

7,975

 

 

5,897

 

 

22,645

 

 

17,003

 

Add: Amortization of customer and trade name intangibles

 

5,646

 

 

4,386

 

 

15,762

 

 

11,742

 

Non-GAAP adjustments subtotal

 

30,921

 

 

26,744

 

 

$

91,114

 

 

$

71,493

 

Non-GAAP operating income

 

$

70,974

 

 

$

64,329

 

 

$

202,324

 

 

$

185,058

 

GAAP operating margin

 

14.5

%

 

15.9

%

 

13.9

%

 

16.4

%

Non-GAAP operating margin

 

25.6

%

 

27.1

%

 

25.2

%

 

26.6

%

 

TYLER TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

Reconciliation of non-GAAP net income and earnings per share

 

 

 

 

 

 

 

 

GAAP net income

 

$

40,390

 

 

$

38,924

 

 

$

99,737

 

 

$

115,910

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Add: Total non-GAAP adjustments to operating income

 

30,921

 

 

26,744

 

 

91,114

 

 

71,493

 

Less: Tax impact related to non-GAAP adjustments

 

(16,992

)

 

(15,987

)

 

(36,448

)

 

(45,088

)

Non-GAAP net income

 

$

54,319

 

 

$

49,681

 

 

$

154,403

 

 

$

142,315

 

GAAP earnings per diluted share

 

$

1.00

 

 

$

0.96

 

 

$

2.49

 

 

$

2.87

 

Non-GAAP earnings per diluted share

 

$

1.35

 

 

$

1.23

 

 

$

3.86

 

 

$

3.53

 

 

 

 

 

 

 

 

 

 

Detail of share-based compensation expense

 

 

 

 

 

 

 

 

Cost of software services, maintenance and subscriptions

 

$

3,612

 

 

$

3,909

 

 

$

11,166

 

 

$

9,640

 

Selling, general and administrative expenses

 

11,275

 

 

10,567

 

 

33,203

 

 

28,326

 

Total share-based compensation expense

 

$

14,887

 

 

$

14,476

 

 

$

44,369

 

 

$

37,966

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of EBITDA and adjusted EBITDA

 

 

 

 

 

 

 

 

GAAP net income

 

$

40,390

 

 

$

38,924

 

 

$

99,737

 

 

$

115,910

 

Amortization of customer and trade name intangibles

 

5,646

 

 

4,386

 

 

15,762

 

 

11,742

 

Depreciation and amortization included in

 

 

 

 

 

 

 

 

cost of revenues, SG&A and other expenses

 

14,076

 

 

11,466

 

 

40,639

 

 

33,472

 

Interest expense included in other income, net

 

236

 

 

192

 

 

1,409

 

 

570

 

Income tax provision

 

162

 

 

(298

)

 

12,311

 

 

(147

)

EBITDA

 

$

60,510

 

 

$

54,670

 

 

$

169,858

 

 

$

161,547

 

Write-downs of acquisition-related deferred revenue

 

1,698

 

 

1,397

 

 

6,052

 

 

3,048

 

Share-based compensation expense

 

14,887

 

 

14,476

 

 

44,369

 

 

37,966

 

Acquisition related costs

 

5

 

 

 

 

$

945

 

 

$

 

Adjusted EBITDA

 

$

77,100

 

 

$

70,543

 

 

$

221,224

 

 

$

202,561

 

 

TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

(Unaudited)

 

 

 

September 30, 2019

 

December 31, 2018

ASSETS

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

161,438

 

 

$

134,279

 

Accounts receivable, net

 

347,982

 

 

298,912

 

Current investments and other assets

 

60,382

 

 

80,970

 

Income tax receivable

 

4

 

 

4,697

 

Total current assets

 

569,806

 

 

518,858

 

 

 

 

 

 

Accounts receivable, long-term portion

 

20,437

 

 

16,020

 

Operating lease right-of-use assets

 

20,172

 

 

 

Property and equipment, net

 

169,950

 

 

155,177

 

 

 

 

 

 

Other assets:

 

 

 

 

Goodwill

 

826,040

 

 

753,718

 

Other intangibles, net

 

377,580

 

 

276,852

 

Non-current investments and other assets

 

71,104

 

 

70,338

 

 

 

 

 

 

Total assets

 

$

2,055,089

 

 

$

1,790,963

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable and accrued liabilities

 

$

78,841

 

 

$

73,390

 

Current income tax payable

 

 

 

 

Operating lease liabilities

 

6,413

 

 

 

Deferred revenue

 

391,560

 

 

350,512

 

Total current liabilities

 

476,814

 

 

423,902

 

 

 

 

 

 

Revolving line of credit

 

 

 

 

Deferred revenue, long-term

 

241

 

 

424

 

Deferred income taxes

 

40,303

 

 

41,791

 

Operating lease liabilities, long-term

 

18,134

 

 

 

Shareholders’ equity

 

1,519,597

 

 

1,324,846

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

2,055,089

 

 

$

1,790,963

 

 

 

 

 

 

 

TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

40,390

 

 

$

38,924

 

 

$

99,737

 

 

$

115,910

 

Adjustments to reconcile net income to cash

 

 

 

 

 

 

 

 

provided by operations:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

19,803

 

 

15,978

 

 

56,547

 

 

45,627

 

Share-based compensation expense

 

14,887

 

 

14,476

 

 

44,369

 

 

37,966

 

Operating lease right-of-use assets – non cash

 

3,979

 

 

 

 

3,979

 

 

 

Deferred income tax (benefit) expense

 

(2,889

)

 

162

 

 

(10,329

)

 

(5,034

)

Changes in operating assets and liabilities,

 

 

 

 

 

 

 

 

exclusive of effects of acquired companies

 

53,903

 

 

42,583

 

 

(15,776

)

 

(15,116

)

Net cash provided by operating activities

 

130,073

 

 

112,123

 

 

178,527

 

 

179,353

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Additions to property and equipment

 

(4,781

)

 

(8,508

)

 

(28,833

)

 

(23,460

)

Purchase of marketable security investments

 

(17,205

)

 

(17,788

)

 

(27,322

)

 

(92,638

)

Proceeds from marketable security investments

 

17,166

 

 

21,054

 

 

56,854

 

 

60,208

 

Investment in software

 

(1,308

)

 

 

 

(3,540

)

 

 

Cost of acquisitions, net of cash acquired

 

(650

)

 

(10,156

)

 

(199,870

)

 

(167,308

)

(Increase) decrease in other

 

(925

)

 

1,043

 

 

(493

)

 

857

 

Net cash used by investing activities

 

(7,703

)

 

(14,355

)

 

(203,204

)

 

(222,341

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Decrease in net borrowings on revolving line of credit

 

(15,000

)

 

 

 

 

 

 

Purchase of treasury shares

 

 

 

 

 

(17,786

)

 

 

Proceeds from exercise of stock options

 

40,163

 

 

26,219

 

 

62,295

 

 

70,536

 

Contributions from employee stock purchase plan

 

2,718

 

 

2,218

 

 

7,327

 

 

5,978

 

Net cash provided by financing activities

 

27,881

 

 

28,437

 

 

51,836

 

 

76,514

 

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

150,251

 

 

126,205

 

 

27,159

 

 

33,526

 

Cash and cash equivalents at beginning of period

 

11,187

 

 

93,247

 

 

134,279

 

 

185,926

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

161,438

 

 

$

219,452

 

 

$

161,438

 

 

$

219,452

 

Contacts

Brian K. Miller

Executive Vice President & CFO

Tyler Technologies, Inc.

972-713-3720

brian.miller@tylertech.com

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