GlobeNewswire Inc | Aug 5, 2020 06:30AM EDT

August 05, 2020

DALLAS, Aug. 05, 2020 (GLOBE NEWSWIRE) -- Blucora, Inc. (NASDAQ: BCOR), a provider of data and technology-driven tax software and wealth management solutions that empowers people to improve their financial wellness, today announced financial results for the second quarter ended June30, 2020.

Second Quarter and Tax Season Highlights and Recent Developments

-- TaxAct grows total e-files (consumer + professional) by 1% year-over-year, amid extended tax season (due to COVID-19), with consumer e-files declining 2% and professional e-files growing by 6%. -- Improved several key business metrics for tax season, including unique visitors, retention and conversion rates and net promoter score. -- Tax preparation revenue expected to decline approximately 3% for the full-year 2020 compared to the full-year 2019. Full-year 2019 tax preparation revenue included approximately $14.0 million generated by the discontinued Basic Online SKU and the SimpleTax business, divested in the third quarter of 2019. -- Closed acquisition of HK Financial Services (HKFS) on July 1, 2020, adding a fast-growing, highly profitable RIA to the Companys wealth management business.

In the face of negative impacts of COVID-19 on our financial results, Im pleased that we are operating effectively in this environment, said Chris Walters, Blucoras President and Chief Executive Officer. In tax preparation, we started the season slow and faced challenges from the tax-season extension; however, our in-season refinements improved a number of important business metrics leading to growth in total e-files and new consumer e-files for the first time since tax years 2014 and 2012, respectively. TaxAct significantly increased visitors to its website and increased conversion and retention rates as well as net promoter scores. In wealth management, second quarter results reflect the market and interest rate declines from the prior quarter. Our service to financial professionals has been uninterrupted and improved in many areas. We closed on our acquisition of HKFS after quarter-end, providing us with more opportunities to serve CPA firms and thereby increasing our addressable market while enhancing our growth opportunities.

At the six-month mark in my tenure, we have defined our strategic priorities, addressed skills gaps amongst our leadership team and realigned our business to deliver on our detailed execution plans. While there is much to be done, we feel good about the progress weve made and how it positions the Company for future growth.

Summary Financial Performance: Q2 2020 ($ in millions except per share amounts)

Q2 2020 Q2 2019 ChangeRevenue: Wealth Management $ 115.9 $ 127.8 (9)%Tax Preparation $ 45.2 $ 65.9 (31)%Total Revenue $ 161.1 $ 193.7 (17)%Segment Income: Wealth Management $ 11.7 $ 17.0 (31)%Tax Preparation $ 6.7 $ 41.4 (84)%Total Segment Income $ 18.4 $ 58.3 (68)%Unallocated Corporate-Level General $ (5.8 ) $ (6.2 ) (7)%and Administrative ExpensesGAAP: Operating Income (Loss) $ (4.6 ) $ 28.0 (116)%Net Income Attributable to Blucora, $ 49.6 $ 31.0 60%Inc.Diluted Net Income Per Share $ 1.03 $ 0.62 66%Attributable to Blucora, Inc.Non-GAAP: (1) Adjusted EBITDA $ 12.6 $ 52.1 (76)%Net Income $ 4.5 $ 41.4 (89)%Diluted Net Income per Share $ 0.09 $ 0.83 (89)%

(1) See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below.

Tax Season Update

Tax season begins on the first day that the IRS begins accepting e-files and ends on filing deadline day plus one day. As a result of the coronavirus pandemic, the IRS extended the filing deadline for federal tax returns relating to the 2019 tax year to July 15, 2020. In order to provide comparable prior period data, we have also provided e-file information for the equivalent period in 2019.

Year-to-date period ended July 16,(In thousands, except percentages) 2020 2019 ChangeConsumer (1) 3,113 3,184 (2)%Professional tax preparer 2,036 1,924 6%Total e-files (1) 5,149 5,108 1%

(1) We participate in the Free File Alliance that is part of an IRS partnership that provides free electronic tax filing services to taxpayers meeting certain income-based guidelines. Free File Alliance e-files are included within total e-files and consumer e-files above.

Third Quarter and Full Year 2020 Outlook

($ in millions except per share amounts) 3Q 2020 Full Year 2020Wealth Management Revenue (1) $133.5 - $530.0 - $541.0 $138.5TaxAct Revenue $36.5 - $39.0 $203.0 - $206.0Total Revenue $170.0 - $733.0 - $747.0 $177.5Wealth Management Segment Income (1) $15.0 - $16.5 $65.5 - $69.5TaxAct Segment Income $14.0 - $15.0 $46.5 - $48.0Unallocated Corporate-Level General and $6.5 - $7.5 $24.5 - $26.0Administrative ExpensesGAAP: Net Loss (1) ($28.0) ? ($343.5) ? ($22.0) ($334.0)Net Loss per share (1) ($0.58) ? ($7.09) ? ($0.46) ($6.92)Non-GAAP: Adjusted EBITDA (1)(2) $21.5 - $25.0 $86.0 - $93.0Non-GAAP Net Income (1)(2) $7.5 - $11.5 $40.5 - $48.0Non-GAAP Net Income per share (1)(2) $0.15 - $0.23 $0.83 - $0.98

-- Includes HKFS results from July 1, 2020 to December 31, 2020. -- See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below.

Conference Call and Webcast

A conference call and live webcast will be held today at 8:30a.m. Eastern Time during which the Company will further discuss the second quarter, its outlook for full year 2020, its tax season update, and other business matters. We will also provide the prepared remarks for the conference call along with supplemental financial information to our results on the Investor Relations section of the Blucora corporate website at www.blucora.com prior to the call. The supplemental financial information has also been filed with the SEC on Form 8-K. A replay of the call will be available on our website.

About Blucora

Blucora, Inc. (NASDAQ: BCOR) is on the forefront of financial technology, a provider of data and technology-driven solutions that empowers people to improve their financial wellness. Blucora operates in two segments including (i) wealth management, through its Avantax Wealth Management business (formerly operating under the HD Vest and 1st Global brands), the largest U.S. tax-focused independent broker-dealer, with $69 billion in total client assets as of June30, 2020, and (ii) tax preparation, through its TaxAct business, a market leader in tax preparation software with approximately 3 million consumer and 20,000 professional users in 2020. With integrated tax focused software and wealth management, Blucora is uniquely positioned to assist our customers in achieving better long-term outcomes via holistic, tax-advantaged solutions. For more information on Blucora, visit www.blucora.com.

Source: Blucora

Blucora Contact:Bill Michalek (972) 870-6463VP, Investor Relations

This release 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. When used in this release, terms such as believes, estimates, should, could, would, plans, expects, intends, anticipates, may, forecasts, future, will, projects, predicts, potential, continues, target, outlook and similar expressions and variations as they relate to the Company or its management are intended to identify forward-looking statements. Actual results may differ significantly from managements expectations due to various risks and uncertainties including, but not limited to: the impact of the coronavirus outbreak on our results of operations and our business, including the impact of the resulting economic and market disruption, the extension of tax filing deadlines and other related relief; our ability to effectively implement our future business plans and growth strategy; our ability to effectively compete within our industry; our ability to attract and retain financial professionals, qualified employees, clients, and customers, as well as our ability to provide strong customer/client service; our ability to close, finance, and realize all of the anticipated benefits of our acquisitions, as well as our ability to integrate the operations of recently acquired businesses, and the potential impact of such acquisitions on our existing indebtedness and leverage; 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; downgrade of the Companys credit ratings; our ability to generate strong investment performance for our clients and the impact of the financial markets on our clients portfolios; the impact of new or changing legislation and regulations (or interpretations thereof) on our business, including our ability to successfully address and comply with such legislation and regulations (or interpretations thereof) and increased costs, reductions of revenue, and potential fines, penalties or disgorgement to which we may be subject as a result thereof; risks, burdens, and costs, including fines, penalties or disgorgement, associated with our business being subjected to regulatory inquiries, investigations or initiatives; risks associated with legal proceedings, including litigation and regulatory proceedings; our ability to manage leadership and employee transitions, including costs and time burdens on management and our board of directors related thereto; political and economic conditions and events that directly or indirectly impact the wealth management and tax preparation industries; 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; the compromising of confidentiality, availability or integrity of information, including cyberattacks; our expectations concerning the revenues we generate from fees associated with the financial products that we distribute; risks related to goodwill and other intangible asset impairment; our ability to develop, establish, and maintain strong brands; 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, industry associations, and licensing partners, and our expectations regarding and reliance on the products, tools, platforms, systems, and services provided by these third parties; our beliefs and expectations regarding the seasonality of our business; our assessments and estimates that determine our effective tax rate; and our ability to protect our intellectual property and the impact of any claim that we have infringed on the intellectual property rights of others. A more detailed description of these and certain other factors that could affect actual results is included in the Companys filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as may be required by law.

Blucora, Inc.Condensed Consolidated Statements of Operations(Unaudited) (Amounts in thousands, except per share data)

Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019Revenue: Wealthmanagement $ 115,884 $ 127,831 $ 260,873 $ 217,363 services revenueTax preparation 45,238 65,909 163,569 202,145 services revenueTotal revenue 161,122 193,740 424,442 419,508 Operating expenses:Cost of revenue: Wealthmanagement 83,868 87,477 186,210 148,851 services cost ofrevenueTax preparationservices cost of 3,054 3,149 7,067 7,350 revenueTotal cost of 86,922 90,626 193,277 156,201 revenueEngineering and 7,377 7,159 15,892 13,688 technologySales and 40,057 29,256 119,767 84,828 marketingGeneral and 20,200 19,002 44,928 36,079 administrativeAcquisition and 2,824 9,183 8,506 10,980 integrationDepreciation 1,675 1,315 3,471 2,376 Amortization ofother acquired 6,673 9,169 14,421 17,213 intangibleassetsImpairment of ? ? 270,625 ? goodwillTotal operating 165,728 165,710 670,887 321,365 expensesOperating income (4,606 ) 28,030 (246,445 ) 98,143 (loss)Other loss, net (5,288 ) (5,118 ) (11,423 ) (9,076 ) (1)Income (loss)before income (9,894 ) 22,912 (257,868 ) 89,067 taxesIncome taxbenefit 59,539 8,124 (7,981 ) 4,139 (expense)Net income(loss) $ 49,645 $ 31,036 $ (265,849 ) $ 93,206 attributable toBlucora, Inc.Net income(loss) per share attributable toBlucora, Inc.:Basic $ 1.04 $ 0.64 $ (5.55 ) $ 1.93 Diluted $ 1.03 $ 0.62 $ (5.55 ) $ 1.88 Weighted averageshares outstanding:Basic 47,941 48,555 47,884 48,358 Diluted 48,092 49,822 47,884 49,681

(1) Other loss, net consisted of the following (in thousands):

Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019Interest $ 4,840 $ 4,770 $ 10,156 $ 8,546 expenseAmortizationof debt 331 375 644 547 issuancecostsAccretion ofdebt 70 85 138 123 discountsTotalinterest 5,241 5,230 10,938 9,216 expenseInterest (11 ) (149 ) (25 ) (289 ) incomeOther 58 37 510 149 Other loss, $ 5,288 $ 5,118 $ 11,423 $ 9,076 net

Blucora, Inc.Condensed Consolidated Balance Sheets(Unaudited) (Amounts in thousands)

June 30, December 31, 2020 2019ASSETS Current assets: Cash and cash equivalents $ 90,081 $ 80,820 Cash segregated under federal or other 1,266 5,630 regulationsAccounts receivable, net of allowance 15,913 16,266 Commissions receivable 15,590 21,176 Other receivables 5,711 2,902 Prepaid expenses and other current assets, net 10,237 12,349 Total current assets 138,798 139,143 Long-term assets: Property and equipment, net 43,793 18,706 Right-of-use assets, net 27,653 10,151 Goodwill, net 391,084 662,375 Other intangible assets, net 275,790 290,211 Deferred tax asset, net 1,613 9,997 Other long-term assets 3,749 6,989 Total long-term assets 743,682 998,429 Total assets $ 882,480 $ 1,137,572 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accounts payable $ 13,689 $ 10,969 Commissions and advisory fees payable 14,695 19,905 Accrued expenses and other current liabilities 35,114 36,144 Deferred revenue?current 4,178 12,014 Lease liabilities?current 1,251 3,272 Current portion of long-term debt, net 1,230 11,228 Total current liabilities 70,157 93,532 Long-term liabilities: Long-term debt, net 381,561 381,485 Deferred revenue?long-term 6,709 7,172 Lease liabilities?long-term 36,407 5,916 Other long-term liabilities 6,785 5,952 Total long-term liabilities 431,462 400,525 Total liabilities 501,619 494,057 Stockholders? equity: Common stock, par $0.0001?900,000 authorizedshares; 49,340 shares issued and 48,034 sharesoutstanding at June30, 2020; 49,059 shares 5 5 issued and 47,753 shares outstanding atDecember31, 2019Additional paid-in capital 1,589,895 1,586,972 Accumulated deficit (1,180,640 ) (914,791 ) Accumulated other comprehensive loss ? (272 ) Treasury stock, at cost?1,306 shares at (28,399 ) (28,399 ) June30, 2020 and December31, 2019Total stockholders? equity 380,861 643,515 Total liabilities and stockholders? equity $ 882,480 $ 1,137,572

Blucora, Inc.Condensed Consolidated Statements of Cash Flows(Unaudited) (Amounts in thousands)

Six months ended June 30, 2020 2019Operating activities: Net income (loss) $ (265,849 ) $ 93,206 Adjustments to reconcile net income (loss) to net cash from operating activities:Stock-based compensation 2,703 6,525 Depreciation and amortization of acquired 19,253 20,185 intangible assetsImpairment of goodwill 270,625 ? Reduction of right-of-use lease assets 3,196 1,977 Deferred income taxes 8,784 4,446 Amortization of debt issuance costs 644 547 Accretion of debt discounts 138 123 Other 1,571 260 Cash provided (used) by changes in operating assets and liabilities:Accounts receivable 184 (3,217 ) Commissions receivable 5,586 847 Other receivables (2,809 ) (661 ) Prepaid expenses and other current assets 1,435 12,258 Other long-term assets 3,162 (355 ) Accounts payable 2,942 (2,995 ) Commissions and advisory fees payable (5,210 ) (663 ) Lease liabilities (2,572 ) (2,066 ) Deferred revenue (8,299 ) (24,760 ) Accrued expenses and other current and long-term (1,110 ) (8,845 ) liabilitiesNet cash provided by operating activities 34,374 96,812 Investing activities: Business acquisition, net of cash acquired ? (164,461 ) Purchases of property and equipment (19,072 ) (2,938 ) Net cash used by investing activities (19,072 ) (167,399 ) Financing activities: Proceeds from credit facilities 55,000 121,499 Payments on credit facilities (65,625 ) ? Payment of redeemable noncontrolling interests ? (24,945 ) Proceeds from stock option exercises 25 3,320 Proceeds from issuance of stock through employee 1,201 1,144 stock purchase planTax payments from shares withheld for equity (1,006 ) (5,160 ) awardsContingent consideration payments for business ? (943 ) acquisitionNet cash provided (used) by financing activities (10,405 ) 94,915 Effect of exchange rate changes on cash, cash ? 58 equivalents, and restricted cashNet increase in cash, cash equivalents, and 4,897 24,386 restricted cashCash, cash equivalents, and restricted cash, 86,450 85,366 beginning of periodCash, cash equivalents, and restricted cash, end $ 91,347 $ 109,752 of period

Blucora, Inc.Segment Information(Unaudited) (Amounts in thousands)

Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019Revenue: Wealth $ 115,884 $ 127,831 $ 260,873 $ 217,363 Management (1)Tax Preparation 45,238 65,909 163,569 202,145 (1)Total revenue 161,122 193,740 424,442 419,508 Operating income:Wealth 11,731 16,979 34,329 28,519 ManagementTax Preparation 6,659 41,368 44,412 120,640 Corporate-level (22,996 ) (30,317 ) (325,186 ) (51,016 ) activity (2)Total operating (4,606 ) 28,030 (246,445 ) 98,143 income (loss)Other loss, net (5,288 ) (5,118 ) (11,423 ) (9,076 ) Income taxbenefit 59,539 8,124 (7,981 ) 4,139 (expense)Net income(loss) $ 49,645 $ 31,036 $ (265,849 ) $ 93,206 attributable toBlucora, Inc.

(1) Revenues by major category within each segment are presented below (in thousands):

Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019Wealth Management: Advisory $ 66,303 $ 61,410 $ 145,060 $ 101,167 Commission 39,836 48,068 90,416 85,228 Asset-based 3,981 13,219 14,560 22,912 Transaction and 5,764 5,134 10,837 8,056 feeTotal Wealth $ 115,884 $ 127,831 $ 260,873 $ 217,363 Management revenueTax Preparation: Consumer $ 44,421 $ 62,686 $ 148,242 $ 186,628 Professional 817 3,223 15,327 15,517 Total TaxPreparation $ 45,238 $ 65,909 $ 163,569 $ 202,145 revenue

(2) Corporate-level activity included the following (in thousands):

Three Months Ended June Six Months Ended June 30, 30, 2020 2019 2020 2019General and $ 5,810 $ 6,221 $ 12,826 $ 13,326 administrative expensesStock-based compensation 3,904 4,082 2,703 6,525 Acquisition and 2,824 9,183 8,506 10,980 integration costsExecutive transition 636 ? 9,820 ? costsHeadquarters relocation 737 ? 1,453 ? costsDepreciation 2,412 1,662 4,832 2,972 Amortization of acquired 6,673 9,169 14,421 17,213 intangible assetsImpairment of goodwill ? ? 270,625 ? Total corporate-level $ 22,996 $ 30,317 $ 325,186 $ 51,016 activity

Blucora, Inc.Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures (1)

Adjusted EBITDA Reconciliation (1)(Unaudited) (Amounts in thousands)

Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019Net income (loss)attributable to $ 49,645 $ 31,036 $ (265,849 ) $ 93,206 Blucora, Inc. (2)Stock-based 3,904 4,082 2,703 6,525 compensationDepreciation andamortization of 9,085 10,831 19,253 20,185 acquiredintangible assetsOther loss, net 5,288 5,118 11,423 9,076 Acquisition and 2,824 9,183 8,506 10,980 integration costsImpairment of ? ? 270,625 ? goodwillExecutive 636 ? 9,820 ? transition costsHeadquarters 737 ? 1,453 ? relocation costsIncome tax (59,539 ) (8,124 ) 7,981 (4,139 ) (benefit) expenseAdjusted EBITDA $ 12,580 $ 52,126 $ 65,915 $ 135,833

Non-GAAP Net Income and Non-GAAP Net Income Per Share Reconciliation (1)(Unaudited) (Amounts in thousands, except per share amounts)

Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019Net income (loss)attributable to $ 49,645 $ 31,036 $ (265,849 ) $ 93,206 Blucora, Inc. (2)Stock-based 3,904 4,082 2,703 6,525 compensationAmortization ofacquired 6,673 9,169 14,421 17,213 intangible assetsAcquisition and 2,824 9,183 8,506 10,980 integration costsImpairment of ? ? 270,625 ? goodwillExecutive 636 ? 9,820 ? transition costsHeadquarters 737 ? 1,453 ? relocation costsCash tax impactof adjustments to (259 ) (771 ) (995 ) (1,182 ) GAAP net incomeNon-cash incometax (benefit) (59,697 ) (11,317 ) 7,340 (8,166 ) expenseNon-GAAP net $ 4,463 $ 41,382 $ 48,024 $ 118,576 incomePer diluted share:Net income (loss)attributable to $ 1.03 $ 0.62 $ (5.52 ) $ 1.88 Blucora, Inc. (2)(3)Stock-based 0.08 0.08 0.06 0.13 compensationAmortization ofacquired 0.14 0.20 0.30 0.34 intangible assetsAcquisition and 0.06 0.18 0.18 0.22 integration costsImpairment of ? ? 5.62 ? goodwillExecutive 0.01 ? 0.20 ? transition costsHeadquarters 0.02 ? 0.03 ? relocation costsCash tax impactof adjustments to (0.01 ) (0.02 ) (0.02 ) (0.02 ) GAAP net incomeNon-cash incometax (benefit) (1.24 ) (0.23 ) 0.15 (0.16 ) expenseNon-GAAP net $ 0.09 $ 0.83 $ 1.00 $ 2.39 income per shareWeighted averagesharesoutstanding used 48,092 49,822 48,172 49,681 in computing perdiluted shareamounts

Adjusted EBITDA Reconciliation for Forward-Looking Guidance (1)(Amounts in thousands)

Rangesforthethreemonthsending Rangesfortheyearending September 30, 2020 December 31, 2020 Low High Low HighNet lossattributable $ (28,000 ) $ (22,000 ) $ (343,500 ) $ (334,000 ) to Blucora,Inc.Stock-based 4,600 4,500 12,100 11,900 compensationDepreciationandamortization 14,500 12,500 47,800 45,500 of acquiredintangibleassetsOther loss, 12,500 12,200 31,800 31,300 netAcquisition,integration,and other 17,600 17,100 43,300 43,000 nonrecurringcostsImpairment ? ? 270,600 270,600 of goodwillIncome tax 300 700 23,900 24,700 expenseAdjusted $ 21,500 $ 25,000 $ 86,000 $ 93,000 EBITDA

Non-GAAP Net Income Reconciliation for Forward-Looking Guidance (1)(Amounts in thousands, except per share amounts)

Rangesforthethreemonthsending Rangesfortheyearending September 30, 2020 December 31, 2020 Low High Low HighNet lossattributable $ (28,000 ) $ (22,000 ) $ (343,500 ) $ (334,000 ) to Blucora,Inc.Stock-based 4,600 4,500 12,100 11,900 compensationAmortizationof acquired 10,500 8,800 34,700 32,900 intangibleassetsAcquisition,integration,and other 17,600 17,100 43,300 43,000 nonrecurringcostsDebtissuance 4,300 4,300 4,300 4,300 expensesImpairment ? ? 270,600 270,600 of goodwillCash taximpact of (500 ) (400 ) (1,900 ) (1,800 ) adjustmentsto net lossNon-cashincome tax (1,000 ) (800 ) 20,900 21,100 (benefit)expenseNon-GAAP net $ 7,500 $ 11,500 $ 40,500 $ 48,000 incomePer diluted share:Net lossattributable $ (0.57 ) $ (0.45 ) $ (7.00 ) $ (6.83 ) to Blucora,Inc. (4)Stock-based 0.09 0.09 0.25 0.24 compensationAmortizationof acquired 0.21 0.18 0.70 0.68 intangibleassetsAcquisition,integration,and other 0.36 0.35 0.88 0.88 nonrecurringcostsDebtissuance 0.09 0.09 0.09 0.09 expensesImpairment ? ? 5.52 5.53 of goodwillCash taximpact of (0.01 ) (0.01 ) (0.04 ) (0.04 ) adjustmentsto net lossNon-cashincome tax (0.02 ) (0.02 ) 0.43 0.43 (benefit)expenseNon-GAAP netincome per $ 0.15 $ 0.23 $ 0.83 $ 0.98 shareWeightedaveragesharesoutstandingused in 49,384 49,284 49,050 48,900 computingper dilutedshareamounts

Notes to Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measure

We define Adjusted EBITDA as net income (loss) attributable to Blucora, Inc., determined in accordance with GAAP, excluding the effects of stock-based compensation, depreciation and amortization of acquired intangible assets, other loss, net, acquisition and integration costs, impairment of goodwill, executive transition costs, headquarters relocation costs, and income tax (benefit) expense. Acquisition and(1) integration costs primarily relate to the acquisition of 1st Global and the acquisition of HKFS. Impairment of goodwill relates to the impairment of our Wealth Management reporting unit goodwill that was recognized in the first quarter of 2020. Executive transition costs relate to the departure of certain executives in the first quarter of 2020. Headquarters relocation costs relate to the ongoing process to move from our Dallas and Irving offices to our new headquarters. We believe that Adjusted EBITDA provides meaningful supplemental information regarding our performance. We use this non-GAAP financial measure for internal management and compensation purposes, when publicly providing guidance on possible future results, and as a means to evaluate period-to-period comparisons. We believe that Adjusted EBITDA is a common measure used by investors and analysts to evaluate our performance, that it provides a more complete understanding of the results of operations and trends affecting our business when viewed together with GAAP results, and that management and investors benefit from referring to this non-GAAP financial measure. Items excluded from Adjusted EBITDA are significant and necessary components to the operations of our business and, therefore, Adjusted EBITDA should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income (loss). Other companies may calculate Adjusted EBITDA differently and, therefore, our Adjusted EBITDA may not be comparable to similarly titled measures of other companies. We define non-GAAP net income as net income (loss) attributable to Blucora, Inc., determined in accordance with GAAP, excluding the effects of stock-based compensation, amortization of acquired intangible assets, acquisition and integration costs, impairment of goodwill, executive transition costs, headquarters relocation costs, the related cash tax impact of those adjustments, and non-cash income tax (benefit) expense. We exclude the non-cash portion of income tax expense 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. We believe that non-GAAP net income and non-GAAP net income per share provide meaningful supplemental information to management, investors, and analysts regarding our performance and the valuation of our business by excluding items in the statement of operations that we do not consider part of our ongoing operations or have not been, or are not expected to be, settled in cash. Additionally, we believe that non-GAAP net income and non-GAAP net income per share are common measures used by investors and analysts to evaluate our performance and the valuation of our business. Non-GAAP net income and non-GAAP net income per share should be evaluated in light of our financial results prepared in accordance with GAAP and should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income (loss) and net income (loss) per share. Other companies may calculate non-GAAP net income and non-GAAP net income per share differently, and, therefore, our non-GAAP net income and non-GAAP net income per share may not be comparable to similarly titled measures of other companies.(2) As presented in the condensed consolidated statements of operations (unaudited). As presented in the condensed consolidated statements of comprehensive income, net loss per share attributable to Blucora, Inc. was $5.55 for the six months ended June 30, 2020 and was calculated based on weighted average shares outstanding of 47,884,000, which excluded the effect of(3) potentially dilutive shares due to the net loss earned for the period. For non-GAAP reconciliation purposes, net loss per share attributable to Blucora, Inc. of $5.52 presented in the table above included the effect of potentially dilutive shares due to non-GAAP net income earned during the period. As presented in the ?Third Quarter and Full Year 2020 Outlook? section of this press release, the range of net loss per share attributable to Blucora, Inc. for the three months ending September 30, 2020 was $0.46 to $0.58, and these amounts were calculated based on weighted average shares outstanding of 48,284,000, which excluded the effect of potentially dilutive shares due to the net loss earned for the period. The range of net loss per share attributable to Blucora, Inc. for the year ending(4) December 31, 2020 was $6.92 to $7.09, and these amounts were calculated based on weighted average shares outstanding of 48,300,000 and 48,450,000, respectively, which excluded the effect of potentially dilutive shares due to the net loss earned for the period. For non-GAAP reconciliation purposes, net loss per share attributable to Blucora, Inc. for all periods presented included the effect of potentially dilutive shares due to non-GAAP net income projected to be earned during these periods.