| *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 | |||||
