Document
2019Q3FALSE--12-31000106887500010688752019-01-012019-09-30xbrli:shares00010688752019-10-30iso4217:USD00010688752019-09-3000010688752018-12-31iso4217:USDxbrli:shares0001068875us-gaap:FinancialServiceMember2019-07-012019-09-300001068875us-gaap:FinancialServiceMember2018-07-012018-09-300001068875us-gaap:FinancialServiceMember2019-01-012019-09-300001068875us-gaap:FinancialServiceMember2018-01-012018-09-300001068875bcor:TaxPreparationServicesMember2019-07-012019-09-300001068875bcor:TaxPreparationServicesMember2018-07-012018-09-300001068875bcor:TaxPreparationServicesMember2019-01-012019-09-300001068875bcor:TaxPreparationServicesMember2018-01-012018-09-3000010688752019-07-012019-09-3000010688752018-07-012018-09-3000010688752018-01-012018-09-300001068875us-gaap:CommonStockMember2018-12-310001068875us-gaap:AdditionalPaidInCapitalMember2018-12-310001068875us-gaap:RetainedEarningsMember2018-12-310001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001068875us-gaap:TreasuryStockCommonMember2018-12-310001068875us-gaap:CommonStockMember2019-01-012019-03-310001068875us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-3100010688752019-01-012019-03-310001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310001068875us-gaap:RetainedEarningsMember2019-01-0100010688752019-01-010001068875us-gaap:RetainedEarningsMember2019-01-012019-03-3100010688752019-03-310001068875us-gaap:CommonStockMember2019-03-310001068875us-gaap:AdditionalPaidInCapitalMember2019-03-310001068875us-gaap:RetainedEarningsMember2019-03-310001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310001068875us-gaap:TreasuryStockCommonMember2019-03-310001068875us-gaap:CommonStockMember2019-04-012019-06-300001068875us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-3000010688752019-04-012019-06-300001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001068875us-gaap:RetainedEarningsMember2019-04-012019-06-3000010688752019-06-300001068875us-gaap:CommonStockMember2019-06-300001068875us-gaap:AdditionalPaidInCapitalMember2019-06-300001068875us-gaap:RetainedEarningsMember2019-06-300001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001068875us-gaap:TreasuryStockCommonMember2019-06-300001068875us-gaap:CommonStockMember2019-07-012019-09-300001068875us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001068875us-gaap:TreasuryStockCommonMember2019-07-012019-09-300001068875us-gaap:RetainedEarningsMember2019-07-012019-09-300001068875us-gaap:CommonStockMember2019-09-300001068875us-gaap:AdditionalPaidInCapitalMember2019-09-300001068875us-gaap:RetainedEarningsMember2019-09-300001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300001068875us-gaap:TreasuryStockCommonMember2019-09-3000010688752017-12-310001068875us-gaap:CommonStockMember2017-12-310001068875us-gaap:AdditionalPaidInCapitalMember2017-12-310001068875us-gaap:RetainedEarningsMember2017-12-310001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-310001068875us-gaap:CommonStockMember2018-01-012018-03-310001068875us-gaap:AdditionalPaidInCapitalMember2018-01-012018-03-3100010688752018-01-012018-03-310001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-03-310001068875us-gaap:RetainedEarningsMember2018-01-0100010688752018-01-010001068875us-gaap:RetainedEarningsMember2018-01-012018-03-3100010688752018-03-310001068875us-gaap:CommonStockMember2018-03-310001068875us-gaap:AdditionalPaidInCapitalMember2018-03-310001068875us-gaap:RetainedEarningsMember2018-03-310001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-03-310001068875us-gaap:CommonStockMember2018-04-012018-06-300001068875us-gaap:AdditionalPaidInCapitalMember2018-04-012018-06-3000010688752018-04-012018-06-300001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-04-012018-06-300001068875us-gaap:RetainedEarningsMember2018-04-012018-06-3000010688752018-06-300001068875us-gaap:CommonStockMember2018-06-300001068875us-gaap:AdditionalPaidInCapitalMember2018-06-300001068875us-gaap:RetainedEarningsMember2018-06-300001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-06-300001068875us-gaap:CommonStockMember2018-07-012018-09-300001068875us-gaap:AdditionalPaidInCapitalMember2018-07-012018-09-300001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-07-012018-09-300001068875us-gaap:RetainedEarningsMember2018-07-012018-09-3000010688752018-09-300001068875us-gaap:CommonStockMember2018-09-300001068875us-gaap:AdditionalPaidInCapitalMember2018-09-300001068875us-gaap:RetainedEarningsMember2018-09-300001068875us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-09-30bcor:Segment0001068875bcor:FirstGlobalMember2019-05-062019-05-060001068875bcor:SeniorSecuredCreditFacilityMemberbcor:TermLoanMember2019-05-060001068875bcor:WealthManagementMember2018-12-310001068875bcor:WealthManagementMember2019-01-012019-09-300001068875bcor:WealthManagementMember2019-09-300001068875bcor:TaxPreparationMember2018-12-310001068875bcor:TaxPreparationMember2019-01-012019-09-300001068875bcor:TaxPreparationMember2019-09-300001068875us-gaap:AccountingStandardsUpdate201602Member2019-01-010001068875bcor:FirstGlobalMember2019-05-060001068875bcor:FirstGlobalMemberbcor:AdvisorRelationshipsMember2019-05-062019-05-060001068875bcor:FirstGlobalMemberbcor:AdvisorRelationshipsMember2019-09-300001068875us-gaap:DevelopedTechnologyRightsMemberbcor:FirstGlobalMember2019-05-062019-05-060001068875us-gaap:DevelopedTechnologyRightsMemberbcor:FirstGlobalMember2019-09-300001068875bcor:FirstGlobalMemberus-gaap:AboveMarketLeasesMember2019-05-062019-05-060001068875bcor:FirstGlobalMemberus-gaap:AboveMarketLeasesMember2019-09-300001068875us-gaap:TradeNamesMemberbcor:FirstGlobalMember2019-05-062019-05-060001068875us-gaap:TradeNamesMemberbcor:FirstGlobalMember2019-09-300001068875bcor:FirstGlobalMemberbcor:TrainingMaterialsMember2019-05-062019-05-060001068875bcor:FirstGlobalMemberbcor:TrainingMaterialsMember2019-09-300001068875bcor:SponsorRelationshipsMemberbcor:FirstGlobalMember2019-05-062019-05-060001068875bcor:SponsorRelationshipsMemberbcor:FirstGlobalMember2019-09-3000010688752019-05-062019-05-060001068875bcor:FirstGlobalMember2019-07-012019-09-300001068875bcor:FirstGlobalMember2019-01-012019-09-300001068875bcor:FirstGlobalMember2019-09-300001068875bcor:FirstGlobalMember2018-07-012018-09-300001068875bcor:FirstGlobalMember2018-01-012018-09-300001068875bcor:WealthManagementMemberus-gaap:OperatingSegmentsMember2019-07-012019-09-300001068875bcor:WealthManagementMemberus-gaap:OperatingSegmentsMember2018-07-012018-09-300001068875bcor:WealthManagementMemberus-gaap:OperatingSegmentsMember2019-01-012019-09-300001068875bcor:WealthManagementMemberus-gaap:OperatingSegmentsMember2018-01-012018-09-300001068875bcor:TaxPreparationMemberus-gaap:OperatingSegmentsMember2019-07-012019-09-300001068875bcor:TaxPreparationMemberus-gaap:OperatingSegmentsMember2018-07-012018-09-300001068875bcor:TaxPreparationMemberus-gaap:OperatingSegmentsMember2019-01-012019-09-300001068875bcor:TaxPreparationMemberus-gaap:OperatingSegmentsMember2018-01-012018-09-300001068875us-gaap:CorporateNonSegmentMember2019-07-012019-09-300001068875us-gaap:CorporateNonSegmentMember2018-07-012018-09-300001068875us-gaap:CorporateNonSegmentMember2019-01-012019-09-300001068875us-gaap:CorporateNonSegmentMember2018-01-012018-09-300001068875us-gaap:MaterialReconcilingItemsMember2019-07-012019-09-300001068875us-gaap:MaterialReconcilingItemsMember2018-07-012018-09-300001068875us-gaap:MaterialReconcilingItemsMember2019-01-012019-09-300001068875us-gaap:MaterialReconcilingItemsMember2018-01-012018-09-300001068875bcor:WealthManagementMemberbcor:CommissionMember2019-07-012019-09-300001068875bcor:WealthManagementMemberbcor:CommissionMember2018-07-012018-09-300001068875bcor:WealthManagementMemberbcor:CommissionMember2019-01-012019-09-300001068875bcor:WealthManagementMemberbcor:CommissionMember2018-01-012018-09-300001068875bcor:AdvisoryMemberbcor:WealthManagementMember2019-07-012019-09-300001068875bcor:AdvisoryMemberbcor:WealthManagementMember2018-07-012018-09-300001068875bcor:AdvisoryMemberbcor:WealthManagementMember2019-01-012019-09-300001068875bcor:AdvisoryMemberbcor:WealthManagementMember2018-01-012018-09-300001068875bcor:AssetbasedMemberbcor:WealthManagementMember2019-07-012019-09-300001068875bcor:AssetbasedMemberbcor:WealthManagementMember2018-07-012018-09-300001068875bcor:AssetbasedMemberbcor:WealthManagementMember2019-01-012019-09-300001068875bcor:AssetbasedMemberbcor:WealthManagementMember2018-01-012018-09-300001068875bcor:WealthManagementMemberbcor:TransactionandFeeMember2019-07-012019-09-300001068875bcor:WealthManagementMemberbcor:TransactionandFeeMember2018-07-012018-09-300001068875bcor:WealthManagementMemberbcor:TransactionandFeeMember2019-01-012019-09-300001068875bcor:WealthManagementMemberbcor:TransactionandFeeMember2018-01-012018-09-300001068875bcor:WealthManagementMember2019-07-012019-09-300001068875bcor:WealthManagementMember2018-07-012018-09-300001068875bcor:WealthManagementMember2018-01-012018-09-300001068875bcor:ConsumerMemberbcor:TaxPreparationMember2019-07-012019-09-300001068875bcor:ConsumerMemberbcor:TaxPreparationMember2018-07-012018-09-300001068875bcor:ConsumerMemberbcor:TaxPreparationMember2019-01-012019-09-300001068875bcor:ConsumerMemberbcor:TaxPreparationMember2018-01-012018-09-300001068875bcor:TaxPreparationMemberbcor:ProfessionalMember2019-07-012019-09-300001068875bcor:TaxPreparationMemberbcor:ProfessionalMember2018-07-012018-09-300001068875bcor:TaxPreparationMemberbcor:ProfessionalMember2019-01-012019-09-300001068875bcor:TaxPreparationMemberbcor:ProfessionalMember2018-01-012018-09-300001068875bcor:TaxPreparationMember2019-07-012019-09-300001068875bcor:TaxPreparationMember2018-07-012018-09-300001068875bcor:TaxPreparationMember2018-01-012018-09-300001068875bcor:WealthManagementMemberbcor:CommissionMemberus-gaap:TransferredAtPointInTimeMember2019-07-012019-09-300001068875us-gaap:TransferredOverTimeMemberbcor:WealthManagementMemberbcor:CommissionMember2019-07-012019-09-300001068875bcor:WealthManagementMemberbcor:CommissionMemberus-gaap:TransferredAtPointInTimeMember2018-07-012018-09-300001068875us-gaap:TransferredOverTimeMemberbcor:WealthManagementMemberbcor:CommissionMember2018-07-012018-09-300001068875bcor:AdvisoryMemberbcor:WealthManagementMemberus-gaap:TransferredAtPointInTimeMember2019-07-012019-09-300001068875us-gaap:TransferredOverTimeMemberbcor:AdvisoryMemberbcor:WealthManagementMember2019-07-012019-09-300001068875bcor:AdvisoryMemberbcor:WealthManagementMemberus-gaap:TransferredAtPointInTimeMember2018-07-012018-09-300001068875us-gaap:TransferredOverTimeMemberbcor:AdvisoryMemberbcor:WealthManagementMember2018-07-012018-09-300001068875bcor:AssetbasedMemberbcor:WealthManagementMemberus-gaap:TransferredAtPointInTimeMember2019-07-012019-09-300001068875bcor:AssetbasedMemberus-gaap:TransferredOverTimeMemberbcor:WealthManagementMember2019-07-012019-09-300001068875bcor:AssetbasedMemberbcor:WealthManagementMemberus-gaap:TransferredAtPointInTimeMember2018-07-012018-09-300001068875bcor:AssetbasedMemberus-gaap:TransferredOverTimeMemberbcor:WealthManagementMember2018-07-012018-09-300001068875bcor:WealthManagementMemberbcor:TransactionandFeeMemberus-gaap:TransferredAtPointInTimeMember2019-07-012019-09-300001068875us-gaap:TransferredOverTimeMemberbcor:WealthManagementMemberbcor:TransactionandFeeMember2019-07-012019-09-300001068875bcor:WealthManagementMemberbcor:TransactionandFeeMemberus-gaap:TransferredAtPointInTimeMember2018-07-012018-09-300001068875us-gaap:TransferredOverTimeMemberbcor:WealthManagementMemberbcor:TransactionandFeeMember2018-07-012018-09-300001068875bcor:WealthManagementMemberus-gaap:TransferredAtPointInTimeMember2019-07-012019-09-300001068875us-gaap:TransferredOverTimeMemberbcor:WealthManagementMember2019-07-012019-09-300001068875bcor:WealthManagementMemberus-gaap:TransferredAtPointInTimeMember2018-07-012018-09-300001068875us-gaap:TransferredOverTimeMemberbcor:WealthManagementMember2018-07-012018-09-300001068875bcor:WealthManagementMemberbcor:CommissionMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-09-300001068875us-gaap:TransferredOverTimeMemberbcor:WealthManagementMemberbcor:CommissionMember2019-01-012019-09-300001068875bcor:WealthManagementMemberbcor:CommissionMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-09-300001068875us-gaap:TransferredOverTimeMemberbcor:WealthManagementMemberbcor:CommissionMember2018-01-012018-09-300001068875bcor:AdvisoryMemberbcor:WealthManagementMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-09-300001068875us-gaap:TransferredOverTimeMemberbcor:AdvisoryMemberbcor:WealthManagementMember2019-01-012019-09-300001068875bcor:AdvisoryMemberbcor:WealthManagementMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-09-300001068875us-gaap:TransferredOverTimeMemberbcor:AdvisoryMemberbcor:WealthManagementMember2018-01-012018-09-300001068875bcor:AssetbasedMemberbcor:WealthManagementMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-09-300001068875bcor:AssetbasedMemberus-gaap:TransferredOverTimeMemberbcor:WealthManagementMember2019-01-012019-09-300001068875bcor:AssetbasedMemberbcor:WealthManagementMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-09-300001068875bcor:AssetbasedMemberus-gaap:TransferredOverTimeMemberbcor:WealthManagementMember2018-01-012018-09-300001068875bcor:WealthManagementMemberbcor:TransactionandFeeMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-09-300001068875us-gaap:TransferredOverTimeMemberbcor:WealthManagementMemberbcor:TransactionandFeeMember2019-01-012019-09-300001068875bcor:WealthManagementMemberbcor:TransactionandFeeMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-09-300001068875us-gaap:TransferredOverTimeMemberbcor:WealthManagementMemberbcor:TransactionandFeeMember2018-01-012018-09-300001068875bcor:WealthManagementMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-09-300001068875us-gaap:TransferredOverTimeMemberbcor:WealthManagementMember2019-01-012019-09-300001068875bcor:WealthManagementMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-09-300001068875us-gaap:TransferredOverTimeMemberbcor:WealthManagementMember2018-01-012018-09-300001068875bcor:ConsumerMemberbcor:TaxPreparationMemberus-gaap:TransferredAtPointInTimeMember2019-07-012019-09-300001068875bcor:ConsumerMemberus-gaap:TransferredOverTimeMemberbcor:TaxPreparationMember2019-07-012019-09-300001068875bcor:ConsumerMemberbcor:TaxPreparationMemberus-gaap:TransferredAtPointInTimeMember2018-07-012018-09-300001068875bcor:ConsumerMemberus-gaap:TransferredOverTimeMemberbcor:TaxPreparationMember2018-07-012018-09-300001068875bcor:TaxPreparationMemberbcor:ProfessionalMemberus-gaap:TransferredAtPointInTimeMember2019-07-012019-09-300001068875us-gaap:TransferredOverTimeMemberbcor:TaxPreparationMemberbcor:ProfessionalMember2019-07-012019-09-300001068875bcor:TaxPreparationMemberbcor:ProfessionalMemberus-gaap:TransferredAtPointInTimeMember2018-07-012018-09-300001068875us-gaap:TransferredOverTimeMemberbcor:TaxPreparationMemberbcor:ProfessionalMember2018-07-012018-09-300001068875bcor:TaxPreparationMemberus-gaap:TransferredAtPointInTimeMember2019-07-012019-09-300001068875us-gaap:TransferredOverTimeMemberbcor:TaxPreparationMember2019-07-012019-09-300001068875bcor:TaxPreparationMemberus-gaap:TransferredAtPointInTimeMember2018-07-012018-09-300001068875us-gaap:TransferredOverTimeMemberbcor:TaxPreparationMember2018-07-012018-09-300001068875bcor:ConsumerMemberbcor:TaxPreparationMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-09-300001068875bcor:ConsumerMemberus-gaap:TransferredOverTimeMemberbcor:TaxPreparationMember2019-01-012019-09-300001068875bcor:ConsumerMemberbcor:TaxPreparationMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-09-300001068875bcor:ConsumerMemberus-gaap:TransferredOverTimeMemberbcor:TaxPreparationMember2018-01-012018-09-300001068875bcor:TaxPreparationMemberbcor:ProfessionalMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-09-300001068875us-gaap:TransferredOverTimeMemberbcor:TaxPreparationMemberbcor:ProfessionalMember2019-01-012019-09-300001068875bcor:TaxPreparationMemberbcor:ProfessionalMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-09-300001068875us-gaap:TransferredOverTimeMemberbcor:TaxPreparationMemberbcor:ProfessionalMember2018-01-012018-09-300001068875bcor:TaxPreparationMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-09-300001068875us-gaap:TransferredOverTimeMemberbcor:TaxPreparationMember2019-01-012019-09-300001068875bcor:TaxPreparationMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-09-300001068875us-gaap:TransferredOverTimeMemberbcor:TaxPreparationMember2018-01-012018-09-300001068875us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2019-09-300001068875us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2019-09-300001068875us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2019-09-300001068875us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2019-09-300001068875us-gaap:FairValueMeasurementsRecurringMember2019-09-300001068875us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001068875us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001068875us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001068875us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2018-12-310001068875us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2018-12-310001068875us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2018-12-310001068875us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2018-12-310001068875us-gaap:FairValueMeasurementsRecurringMember2018-12-310001068875us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001068875us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001068875us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001068875bcor:SeniorSecuredCreditFacilityMember2019-09-300001068875bcor:SeniorSecuredCreditFacilityMember2018-12-310001068875bcor:SeniorSecuredCreditFacilityMember2017-05-220001068875bcor:SeniorSecuredCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2017-05-220001068875bcor:SeniorSecuredCreditFacilityMemberbcor:TermLoanMember2017-05-220001068875bcor:SeniorSecuredCreditFacilityMemberbcor:TermLoanMember2019-05-062019-05-06xbrli:pure0001068875bcor:SeniorSecuredCreditFacilityMembersrt:MinimumMember2019-01-012019-09-300001068875srt:MaximumMemberbcor:SeniorSecuredCreditFacilityMember2019-01-012019-09-300001068875bcor:SeniorSecuredCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:EurodollarMember2017-11-012017-11-300001068875bcor:SeniorSecuredCreditFacilityMemberus-gaap:BaseRateMemberbcor:TermLoanMember2017-11-012017-11-300001068875bcor:SeniorSecuredCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:EurodollarMembersrt:MinimumMember2019-01-012019-09-300001068875srt:MaximumMemberbcor:SeniorSecuredCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:EurodollarMember2019-01-012019-09-300001068875bcor:SeniorSecuredCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMembersrt:MinimumMember2019-01-012019-09-300001068875srt:MaximumMemberbcor:SeniorSecuredCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMember2019-01-012019-09-3000010688752019-03-012019-03-010001068875us-gaap:TradeNamesMember2019-09-090001068875us-gaap:TradeNamesMember2019-07-012019-09-300001068875us-gaap:TradeNamesMember2019-01-012019-09-300001068875us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberbcor:SimpleTaxSoftwareMember2019-09-040001068875us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberbcor:SimpleTaxSoftwareMember2019-09-042019-09-040001068875us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberbcor:SimpleTaxSoftwareMember2019-09-300001068875us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberbcor:SimpleTaxSoftwareMember2018-12-31


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
       
FORM 10-Q
      

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                          to                     
Commission File Number: 000-25131
BLUCORA, INC.
(Exact name of registrant as specified in its charter)

Delaware91-1718107
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
6333 N. State Hwy 161, 4th Floor, Irving, Texas
75038
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (972870-6400

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.0001 per shareBCORNASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. ý Yes o No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ý Yes o No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerýAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ý No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Outstanding at
ClassOctober 30, 2019
Common Stock, Par Value $0.000148,943,206  





TABLE OF CONTENTS
Page
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
Trademarks, Trade Names and Service Marks
This report includes certain trademarks, trade names and service marks of Blucora, Inc. (referred to throughout this report as "Blucora," the "Company," "we," "us," or "our"), including Blucora, Avantax, Avantax Wealth Management, HD Vest, 1st Global and TaxAct. Each one of these trademarks, trade names or service marks is either (i) our registered trademark, (ii) a trademark for which we have a pending application, (iii) a trade name or service mark for which we claim common law rights or (iv) a registered trademark or application for registration which we have been authorized by a third party to use.
Solely for convenience, the trademarks, service marks and trade names included in this report are without the ®, ™, SM or other applicable symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors to these trademarks, service marks and trade names. This report may also include additional trademarks, service marks and trade names of others, which are the property of their respective owners. All trademarks, service marks and trade names included in this report are, to our knowledge, the property of their respective owners.



CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements that involve risks and uncertainties. The statements in this report that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,“believe,“plan,“expect,“future,“intend,“may,“will,“should,“estimate,“predict,“potential,“continue,” and "could" or, in each case, their negative variables and similar expressions identify forward-looking statements, but the absence of these words does not mean that the statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding:
our ability to effectively compete within our industry;
our ability to attract and retain customers, as well as our ability to provide strong customer service;
our ability to realize all of the anticipated benefits of the acquisition of 1st Global, as well as our ability to integrate the operations of 1st Global;
our future capital requirements and the availability of financing, if necessary;
our ability to meet our current and future debt service obligations, including our ability to maintain compliance with our debt covenants;
our ability to generate strong investment performance for our customers and the impact of the financial markets on our customers’ portfolios;
political and economic conditions and events that directly or indirectly impact the wealth management and tax preparation industries;
our ability to attract and retain productive financial advisors;
our ability to respond to rapid technological changes, including our ability to successfully release new products and services or improve upon existing products and services;
our expectations concerning the revenues we generate from fees associated with the financial products that we distribute;
our ability to manage leadership and employee transitions;
risks related to goodwill and other intangible asset impairment;
our ability to comply with regulations (or interpretations thereof) applicable to the wealth management and tax preparation industries, including increased costs associated with or reductions in revenue resulting from new or changing regulations or interpretations of existing regulations;
risks associated with our business being subjected to enhanced regulatory scrutiny;
our expectations concerning the benefits that may be derived from our clearing platform and our investment advisory platform;
risks associated with the use and implementation of information technology and the effect of security breaches, computer viruses and computer hacking attacks;
our ability to comply with laws and regulations regarding privacy and protection of user data;
our ability to maintain our relationships with third party partners, providers, suppliers, vendors, distributors, contractors, financial institutions and licensing partners;
our beliefs and expectations regarding the seasonality of our business;
risks associated with litigation;
our ability to attract and retain qualified employees;
our assessments and estimates that determine our effective tax rate;
the impact of new or changing tax legislation on our business and our ability to attract and retain customers;
our ability to develop, establish and maintain strong brands;
our ability to protect our intellectual property and the impact of any claim that we have infringed on the intellectual property rights of others; and
our ability to effectively integrate companies or assets that we acquire.
Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors, many of which are beyond our control, that may cause our results, levels of activity, performance, achievements, and prospects to be materially different from those expressed or implied by such forward-looking statements. These risks, uncertainties, and other factors include, among others, the risk factors set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, as supplemented by those identified under Part II, Item 1A, "Risk Factors" and elsewhere in this report, as well as in the Company's other filings with the Securities and Exchange Commission. You should not rely on forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. We do not



undertake any obligation to update any forward-looking statement to reflect new information, events, or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect the occurrence of unanticipated events, except as required by law.




PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
BLUCORA, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
September 30,
2019
December 31,
2018
ASSETS
Current assets:
Cash and cash equivalents$97,466  $84,524  
Cash segregated under federal or other regulations1,284  842  
Accounts receivable, net of allowance16,803  15,721  
Commissions receivable20,724  15,562  
Other receivables7,424  7,408  
Prepaid expenses and other current assets, net9,058  7,755  
Total current assets152,759  131,812  
Long-term assets:
Property and equipment, net17,230  12,389  
Right-of-use assets, net10,199  —  
Goodwill, net663,005  548,685  
Other intangible assets, net301,533  294,603  
Other long-term assets9,902  10,236  
Total long-term assets1,001,869  865,913  
Total assets$1,154,628  $997,725  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$12,139  $3,798  
Commissions and advisory fees payable18,871  15,199  
Accrued expenses and other current liabilities39,261  18,980  
Lease liabilities4,163  46  
Deferred revenue7,456  10,257  
Current portion of long-term debt, net1,227    
Total current liabilities83,117  48,280  
Long-term liabilities:
Long-term debt, net381,598  260,390  
Deferred tax liability, net35,225  40,394  
Deferred revenue7,403  8,581  
Lease liabilities6,055  100  
Other long-term liabilities6,384  7,440  
Total long-term liabilities436,665  316,905  
Total liabilities519,782  365,185  
Redeemable noncontrolling interests  24,945  
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, par $0.0001900,000 authorized shares; 48,895 shares issued and 48,334 shares outstanding at September 30, 2019; 48,044 shares issued and outstanding at December 31, 2018
5  5  
Additional paid-in capital1,580,336  1,569,725  
Accumulated deficit(932,505) (961,689) 
Accumulated other comprehensive loss  (272) (446) 
Treasury stock, at cost—561 shares at September 30, 2019
(12,718)   
Total stockholders’ equity634,846  607,595  
Total liabilities and stockholders’ equity$1,154,628  $997,725  
See accompanying notes to Unaudited Condensed Consolidated Financial Statements.
4


BLUCORA, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share data)
 Three months ended September 30,Nine months ended September 30,
 2019201820192018
Revenue:
Wealth management services revenue$145,428  $91,887  $362,791  $275,984  
Tax preparation services revenue3,588  3,498  205,733  183,214  
Total revenue149,016  95,385  568,524  459,198  
Operating expenses:
Cost of revenue:
Wealth management services cost of revenue102,030  62,313  250,881  187,526  
Tax preparation services cost of revenue1,633  1,370  8,983  8,182  
Amortization of acquired technology      99  
Total cost of revenue103,663  63,683  259,864  195,807  
Engineering and technology8,635  4,246  22,323  14,225  
Sales and marketing19,976  15,675  104,804  94,719  
General and administrative19,642  13,404  55,721  43,895  
Acquisition and integration6,759    17,739    
Depreciation1,470  798  3,846  3,706  
Amortization of other acquired intangible assets10,082  8,271  27,295  25,384  
Impairment of intangible asset50,900    50,900    
Restructuring      291  
Total operating expenses221,127  106,077  542,492  378,027  
Operating income (loss) (72,111) (10,692) 26,032  81,171  
Other loss, net  (2,606) (3,863) (11,682) (11,850) 
Income (loss) before income taxes (74,717) (14,555) 14,350  69,321  
Income tax benefit (expense) 12,331  818  16,470  (2,052) 
Net income (loss) (62,386) (13,737) 30,820  67,269  
Net income attributable to noncontrolling interests    (227)   (654) 
Net income (loss) attributable to Blucora, Inc. $(62,386) $(13,964) $30,820  $66,615  
Net income (loss) per share attributable to Blucora, Inc.: 
Basic$(1.28) $(0.37) $0.64  $1.34  
Diluted$(1.28) $(0.37) $0.62  $1.28  
Weighted average shares outstanding:  
Basic48,652  47,712  48,456  47,191  
Diluted48,652  47,712  49,596  49,292  
Other comprehensive income (loss): 
Net income (loss)$(62,386) $(13,737) $30,820  $67,269  
Foreign currency translation adjustment(64) 102  174  (147) 
Other comprehensive income (loss)(64) 102  174  (147) 
Comprehensive income (loss) (62,450) (13,635) 30,994  67,122  
Comprehensive income (loss) attributable to noncontrolling interests   (227)   (654) 
Comprehensive income (loss) attributable to Blucora, Inc. $(62,450) $(13,862) $30,994  $66,468  
See accompanying notes to Unaudited Condensed Consolidated Financial Statements.
5


BLUCORA, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands, except per share data)


Redeemable Noncontrolling InterestsAdditional- paid-in capitalAccumulated deficitAccumulated other comprehensive loss
Common stockTreasury stock
SharesAmountSharesAmountTotal
Balance as of December 31, 2018  $24,945  48,044  $5  $1,569,725  $(961,689) $(446)   $  $607,595  
Common stock issued for stock options and restricted stock units—  211  —  283  —  —  —  —  283  
Other comprehensive income—  —  —  —  —  107  —  —  107  
Stock-based compensation—  —  —  2,443  —  —  —  —  2,443  
Tax payments from shares withheld for equity awards—  —  —  (2,425) —  —  —  —  (2,425) 
Reclassification of mandatorily redeemable noncontrolling interests(22,428) —  —  —  —  —  —  —  —  
Impact of adoption of new leases accounting standard—  —  —  —  (1,636) —  —  —  (1,636) 
Net income  —  —  —  62,170  —  —  —  62,170  
Balance as of March 31, 2019$2,517  48,255  $5  $1,570,026  $(901,155) $(339)   $  $668,537  
Common stock issued for stock options, restricted stock units and employee stock purchase plan—  524  —  4,181  —  —  —  —  4,181  
Other comprehensive income—  —  —  —  —  131  —  —  131  
Stock-based compensation—  —  —  4,082  —  —  —  —  4,082  
Tax payments from shares withheld for equity awards—  —  —  (2,735) —  —  —  —  (2,735) 
Redemption of noncontrolling interests(2,517) —  —  —  —  —  —  —  —  
Net income  —  —  —  31,036  —  —  —  31,036  
Balance as of June 30, 2019$  48,779  $5  $1,575,554  $(870,119) $(208)   $  $705,232  
Common stock issued for stock options and restricted stock units—  116  —  491  —  —  —  —  491  
Other comprehensive loss—  —  —  —  —  (64) —  —  (64) 
Stock-based compensation—  —  —  4,639  —  —  —  —  4,639  
Tax payments from shares withheld for equity awards—  —  —  (348) —  —  —  —  (348) 
Stock repurchases—  —  —  —  —  —  (561) (12,718) (12,718) 
Net loss  —  —  —  (62,386) —  —  —  (62,386) 
Balance as of September 30, 2019$  48,895  $5  $1,580,336  $(932,505) $(272) (561) $(12,718) $634,846  
6


Redeemable Noncontrolling InterestsCommon stockAdditional-paid-in capitalAccumulated deficitAccumulated other comprehensive loss
SharesAmountTotal
Balance as of December 31, 2017  $18,033  46,366  $5  $1,555,560  $(1,014,174) $(4) $541,387  
Common stock issued for stock options, restricted stock units and employee stock purchase plan—  462  —  3,237  —  —  3,237  
Other comprehensive loss—  —  —  —  —  (137) (137) 
Stock-based compensation—  —  —  2,958  —  —  2,958  
Tax payments from shares withheld for equity awards—  —  —  (1,493) —  —  (1,493) 
Impact of adoption of new revenue recognition accounting standard—  —  —  —  1,851  —  1,851  
Net income205  —  —  —  45,341  —  45,341  
Balance as of March 31, 2018$18,238  46,828  $5  $1,560,262  $(966,982) $(141) $593,144  
Common stock issued for stock options and restricted stock units—  665  —  7853  —  —  7,853  
Other comprehensive loss—  —  —  —  —  (112) (112) 
Stock-based compensation—  —  —  4,033  —  —  4,033  
Tax payments from shares withheld for equity awards—  —  —  (2,736) —  —  (2,736) 
Net income222  —  —  —  35,238  —  35,238  
Balance as of June 30, 2018$18,460  47,493  $5  $1,569,412  $(931,744) $(253) 637,420  
Common stock issued for stock options, restricted stock units and employee stock purchase plan—  323  —  2,850  —  —  2,850  
Other comprehensive income—  —  —  —  —  102  102  
Stock-based compensation—  —  —  2,568  —  —  2,568  
Tax payments from shares withheld for equity awards—  —  —  (1,754) —  —  (1,754) 
Net income (loss)227  —  —  —  (13,964) —  (13,964) 
Adjustment of redeemable noncontrolling interests to redemption value3,537  —  —  (3,537) —  —  (3,537) 
Balance as of September 30, 2018$22,224  47,816  $5  $1,569,539  $(945,708) $(151) $623,685  

See accompanying notes to Unaudited Condensed Consolidated Financial Statements.
7


BLUCORA, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 Nine months ended September 30,
 20192018
Operating Activities:
Net income  $30,820  $67,269  
Adjustments to reconcile net income to net cash from operating activities:  
Stock-based compensation11,164  9,559  
Depreciation and amortization of acquired intangible assets32,078  29,539  
Impairment of intangible asset50,900    
Reduction of right-of-use lease assets  3,117  —  
Deferred income taxes(23,343) (1,073) 
Amortization of premium on investments, net, and debt issuance costs  848  659  
Accretion of debt discounts189  125  
Loss on debt extinguishment    1,534  
Gain on sale of a business(3,256)   
Other508    
Cash provided (used) by changes in operating assets and liabilities:
Accounts receivable352  4,636  
Commissions receivable(19) 60  
Other receivables(18) 3,149  
Prepaid expenses and other current assets13,828  1,369  
Other long-term assets497  (902) 
Accounts payable(2,346) (2,255) 
Commissions and advisory fees payable(602)