ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
| Nine Months Ended September 30, | ||||||||
| (In thousands) | 2019 | 2018 | ||||||
| OPERATING ACTIVITIES: | ||||||||
| Net (loss) income | $ | (6,040 | ) | $ | 24,538 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 15,836 | 10,895 | ||||||
| Provision for bad debt | 472 | 455 | ||||||
| Amortization of debt discount and issuance costs | 3,044 | 18 | ||||||
| Stock-based compensation expense | 5,584 | 1,213 | ||||||
| Gain on sale of assets held for sale and other | — | (4,544 | ) | |||||
| Impairment of intangibles | — | 608 | ||||||
| Deferred income taxes | (741 | ) | 706 | |||||
| Other, net | (16 | ) | (134 | ) | ||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 10,185 | 15,674 | ||||||
| Prepaid expenses and other current assets | (8,718 | ) | (6,821 | ) | ||||
| Other long-term assets | (1,443 | ) | 44 | |||||
| Accounts payable | (420 | ) | 796 | |||||
| Accrued compensation and benefits | (2,111 | ) | 2,650 | |||||
| Other accrued expenses and current liabilities | 2,110 | (4,781 | ) | |||||
| Operating lease right-of-use assets and liabilities, net | 188 | — | ||||||
| Deferred revenue | 12,075 | (895 | ) | |||||
| Net cash provided by operating activities | 30,005 | 40,422 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (8,120 | ) | (5,333 | ) | ||||
| Payments for acquisition of developed technology | (473 | ) | (2,738 | ) | ||||
| Payments for acquisition of businesses, net of cash acquired | (709 | ) | (15,950 | ) | ||||
| Proceeds from the sale of assets held for sale and other | — | 6,613 | ||||||
| Other investing activities, net | 16 | — | ||||||
| Net cash used in investing activities | (9,286 | ) | (17,408 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| 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 | — | ||||||
| Proceeds from the exercise of stock options | 1,441 | 1,929 | ||||||
| Payments for issuance costs of convertible senior notes | (1,233 | ) | — | |||||
| Payments for follow-on public offering and initial public offering costs | — | (541 | ) | |||||
| Proceeds from issuance of Class A common stock in follow-on public offering,
net of underwriters' discounts and commissions | — | 135,572 | ||||||
| Other financing activities | (399 | ) | (446 | ) | ||||
| Net cash provided by financing activities | 191,960 | 136,514 | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,065 | ) | (1,354 | ) | ||||
| Net increase in cash, cash equivalents and restricted cash | 211,614 | 158,174 | ||||||
| Cash, cash equivalents and restricted cash at beginning of year | 35,685 | 39,578 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 247,299 | $ | 197,752 | ||||
| Supplemental disclosure of cash flow: | ||||||||
| Interest paid | $ | 385 | $ | 70 | ||||
| Income taxes paid | $ | 7,163 | $ | 5,900 | ||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Finance leases | $ | 588 | $ | 995 | ||||
| Property and equipment in accounts payable, other current liabilities
and other liabilities | $ | 1,827 | $ | 228 | ||||
| Follow-on public offering costs in accounts payable | $ | — | $ | 15 | ||||
| Promissory notes issued and deferred payment obligations for acquisitions | $ | — | $ | 278 | ||||
Financial Results
